Page 11 - Sphere No.25 (Aug 2009)

SPHERE 9
EXTRACT FROM DR VICTOR LI’S CONVOCATION ADDRESS
Dr Victor Li gave his Convocation Address,
entitled “Traditional Values in Business”.
“FROM THE TIME I started working in the Cheung
Kong Group to now, I have witnessed growth which
many commentators have described as exponential.
The Group has grown from a local property devel-
opment company in the early 70s to a multinational
with operations spanning property development,
retail, infrastructure, energy, telecommunications,
ports and life sciences in 54 countries, with more
than 240,000 staff.
Currently, we are developing well over 200 million
square feet of property worldwide; our terminals look
after 13 per cent of global container throughput; and
our health and beauty stores make us the largest re-
tailer of this industry in the world. We are also one
of the largest foreign investors in Canada, the United
Kingdom, Australia and Italy . . . the list goes on, but I
won’t bore you with any further details.
For many years, magazines and newspapers love to
ask us whether there is a formula for the success of the
Cheung Kong Group. To this question, my answer is: I
would be crazy to even pretend that there is a single formula. However, I do know several things that would
reduce the chances of success. As an engineer, I like to express my answers in point form:
Point 1
It is very difficult to improve yourself or your company if you consider yourself very successful already.We tend
to stop learning when we are too satisfied with ourselves. I have a favourite Chinese saying from Confucius:
「三人行，必有我師焉：擇其善者而從之，其不善者而改之。」 Roughly translated, when three people walk
together, one of them has something he/she can teach you. There are always lessons to be learnt from the peo-
ple around you – learn what to do and what not to do from their virtues and their vices. As long as you do not
consider yourself successful, the learning process never stops – never stop walking the path of knowledge.
Point 2
It is difficult to succeed or to maintain your fruits of success if you do not look long term. Do not get me
wrong – be it long or short term, profit is always good. But short-term profit is almost too much fun, too many
people like it – as a result, the scene is usually crowded and competition is keen. On the other hand, long-term
investment needs patience and hard work. The process involves several up and down cycles and is usually less
exciting. As a result, most people do not enjoy it as much and the competition scene is less crowded – won-
derful news for those who prefer the longer process. Unfortunately, today a lot of public companies have to
do quarterly reports. Analysts focus on short-term profit so they can advise clients who prefer short-term
gains. If the boards of these companies do not have the backing of one or two major long-term shareholders,
the senior management of these companies may have no choice other than to focus on short-term profit. This
is even better news for those who have the luxury of focusing on long-term projects.
Point 3
It is difficult to succeed if you forget what your grandparents/parents taught you when you were a little kid:
honour, responsibility, integrity, honesty and sincerity – all the traditional values. Today, when we talk about
the “global village”, most people concentrate on the word “global”; I tend to focus on the word “village”. In the
small corporate village we live in today, when almost all the key players practically know each other, reputa-
tion becomes more important than ever. When one villager acts irresponsibly or not honorably, his partners,
shareholders, colleagues and customers will remember for a long time. A successful villager must be a good
villager at the same time, or else his good fortune will be short lived. The Cheung Kong Group operates in
54 countries. I do not pretend to know all their local customs. Sincerity is my door-opener to friends and
partners around the world. I certainly would not leave home without it.
So there it is, I do not have any single formula for success; but if you do not consider yourself success-
ful, focus on the long-term, and remember what your grandparents teach you about honour, integrity,
responsibility and sincerity, your chances of success will be better, and you will be a more reputable vil-
lager in this global village.”