A successful leader─ Li Ka-shing

http://www.runsky.com/homepage/dl/spec/2004/usa4/guo/userobject1ai551511.html

A successful leader─ Li Ka-shing

Chairman of Hutchinson Whampoa, Ltd
By Shawn (Mu, Lifeng)

In China, almost everybody knows about Mr. Li Ka-shing, who

built a fast-growing business and an excellent reputation through his
determination and his ability to become one of Hong Kong’s most
famous entrepreneurs within a few decades. However, appreciate
more his outlook on life. He once said, “We are all climbing the same
mountain; that is to say, we are faced with the same environment. In
a hundred or a thousand years, it will be the same mountain or
environment, but the people will be different. If we bear in mind that
life is only a short journey, we will want to spend a little more time
and do a little more, hoping to sow good seeds in this world.” Mr. Li’s
philosophy is his greatest capital for successful business ventures.

1. The biography of Li Ka-shing

Seventy years ago in Chaozhou, Guangdong, Mr. Li was born into
a well-educated family which instilled in him early on a respect for education and a wish to gain
more knowledge. In 1940, when he was 12 years old, his father Mr. Li Yunjing decided to move
the whole family to Hong Kong. Though by doing so they could avoid the wartime turbulence in
the mainland, the senior Mr. Li, in poor health, found it difficult to settle in a new place and
passed away in 1943. This meant that when Mr Li Ka-shing was only 15, he had to shoulder the
responsibility of supporting his mother and younger siblings. He first worked for a firm
manufacturing watchstrap, then became a salesman of plastic products. Because of his hard
work, he was soon promoted to manager and, later, general manager. In 1950, with his own
savings, he set up a plastics factory named “Cheung Kong” on Hong Kong Island, thus beginning
his illustrious career in the business world. In 1957, accurately foreseeing a growth in demand,
he established Cheung Kong Industrial Company Limited, specializing in plastic flowers and
toys. In the following year, he made his first venture into the real estate business and, by the age
of 30, had made a name for himself in Hong Kong as a successful businessman. Today, Mr. Li
controls four publicly listed companies, namely, Cheung Kong (Holdings) Limited, Hutchison
Whampoa Limited, Cheung Kong Infrastructure Holdings Limited, and Hongkong Electric
Holdings Limited, with a combined market capitalization of approximately HK$450 billion. Based
in Hong Kong, the Group has major investments and operations in over 24 countries around the
world, including the United States, Canada, United Kingdom, Germany and France. Businesses
encompass such diverse areas as property development and investment holdings, estate
management and real estate agency, securities investment, hotels, container terminals, retail,
manufacturing, telecommunications, infrastructure projects and materials, transportation and
energy.

2. the qualifications of Li Ka-shing

Mr. Li is truly one of the foremost leaders in the world of business. There are some
qualifications and achievement make him a successful leader. First, he is a hard working man,
his constant striving to better himself, his grasp of opportunities, and his clear understanding of
the latest situation. Second, Mr. Li's career in business started at the grass-roots level. He first
worked in a watch company and, two years later, moved to a hardware and plastic products
manufacturer as a salesman, becoming its general manager after two years. In 1950, at the age
of 22, he set up his own business, Cheung Kong Plastics Company. Within a short period of
seven years, Mr. Li rose to become the owner of a manufacturing company. Apart from his
endurance and innovative spirit, his intelligence and wisdom had played an important role in his
success. Even though he could not continue his formal education, he had never given up his

1
quest for new knowledge. He managed to find time for self-study. He said, 'Although I was a
humble person at that time, I had confidence in myself. I knew I could do things better than other
people because I had not given up my studies'. Today, at over 70 years of age, Mr. Li has not
put away his books. He continues to learn new things every day. He has a broad range of
interests, reading books on, for example, information technology, economics, philosophy and
history. He feels he must allow some time for studying before going to bed, and has often fallen
asleep with his books. I am sure our graduates here have shared this experience. Mr. Li made
time in his busy schedule to continue learning, to gain more knowledge and wisdom. Third, Mr. Li
is a fine example for anyone with great aspiration, and has given heart to anyone persevering in
the long journey to realize his vision. Fourth, Mr. Li has a huge public-spirited character. To
young people aspiring to great heights, Mr. Li is an excellent role model.

3. the challenges of Li Ka-shing overcame

In 1997, Asian financial crisis happened. Though bruised by the Asian financial crisis, Li's
companies have avoided critical wounds. As he tells it, "We were always prepared for the worst."
Having diversified into infrastructure and utilities overseas, Li argues that his total portfolio of
businesses "will yield stable income no matter how bad the economy gets" in Hong Kong.
In Li’s empire, most securities analysts are just as high on its growth prospects. Cheung Kong,
Li's flagship property developer, owns half of Hutchison Whampoa, a conglomerate that runs all
those port operations, mobile-phone services around the world, toll roads and bridges in
mainland China, and much more. Goldman Sachs terms Hutchison "Li's juggernaut" for creating
value and "the most liquid company in Hong Kong" (with an estimated $5 billion in cash). Li is
also known for his conservative accounting: Hutchison has a debt-to-equity ratio of only 30%.
Clearly, Li has taken a personal hit. Since the middle of 1997 the stocks of his companies have
fallen about 20%. "Like other Asians, the value of my assets has dropped," says he, "but the
most important thing is to have a quality company and a good business." Li, in fact, has invested
$167 million of his own money in shares of Cheung Kong since October 1997 and now owns
about 35% of it. His estimated personal net worth totals at least $6 billion. "I never calculate my
wealth deliberately, but you can say that all my investments have been extremely conservative,"
Li explains. "I do not have any personal debt. That's why I sleep so well."

4. Li Ka-shing’ s leadership style

Li Ka-shing is the world's most successful Chinese entrepreneur. As a most successful leader,
there are lots of success experiences about his leadership. But I think apart from other
leadership style, the transformation style is most important. On the different stage of his
company’s growing, his innovation is widespread. He always change the old way although it
seems health and success. Nothing can stop him from innovation and change the old rules.
Mr. Li entered business as a teenager, selling plastic goods, until at twenty-two, he started his
own plastics company, Cheung Kong, specializing in plastic flowers. He entered the real estate
market in the 1960s, and, by 1979, only the colonial government owned more real estate in Hong
Kong than Mr. Li. What makes Li distinctive, though, is that he has plowed returns from Hong
Kong real estate into international businesses. Those long-term investments, started around a
decade ago, are reaching the payback stage. As he puts it, "The coming three to four years are
very important for Hutchison because many projects outside Hong Kong are nearly mature." He
means they are reaching a critical mass, not a stately mature growth rate. Big as Hutchison is in
Hong Kong, already about 30% of its profits come from elsewhere. Most of the company's
growth in the next few years will come from offshore activities. He eventually built a
conglomerate encompassing Canada, Britain, parts of the US, and South America, extending
into media, hotels, shipping, oil, and grocery stores. Under his continuous innovation and
expansion of his business, the empire had become one of the ten richest people in the world.
Having weathered the Asian financial storm, Li does not intend to sit back and relax. Instead
he’s sharply transforming his focus on his global businesses. Says he: "My change at Hutchison
will not be reduced."

2
5. The lessons learned from Li Ka-shing: Become A Change Leader
(1) Successful leaders are emotionally and intellectually oriented to the future-not wedded to
the past. They have a hunger to take responsibility, to innovate, and to initiate. They are
not content with merely taking care of what’s already there. They want to move forward to
create something new. Li Ka-shing is he embrace change. He might be disappointed, but
he never gives up. He maintains his innovation without stop. He faces the challenges
bravely and overcome it. He wish to have work that is different from what he is currently
doing, he did make a change, a great change. Mr Li's career in business started at the
grass-roots level. He first worked in a watch company and, two years later, moved to a
hardware and plastic products manufacturer as a salesman, becoming its general
manager after two years. In 1950, at the age of 22, he set up his own business, Cheung
Kong Plastics Company. Within a short period of seven years, Mr Li rose to become the
owner of a manufacturing company. Apart from his endurance, intelligence and wisdom,
his innovative spirit had played an important role in his success.

(2) Learning never stops. Even though Mr. Li could not continue his formal education, he had
never given up his quest for new knowledge. He managed to find time for self-study. He
said, 'Although I was a humble person at that time, I had confidence in myself. I knew I
could do things better than other people because I had not given up my studi es'. Today, at
over 70 years of age, Mr Li has not put away his books. He continues to learn new things
every day. He has a broad range of interests, reading books on, for example, information
technology, economics, philosophy and history. He feels he must allow some time for
studying before going to bed, and has often fallen asleep with his books. I am sure our
graduates here have shared this experience. Mr. Li made time in his busy schedule to
continue learning, to gain more knowledge and wisdom.

(3) A good leader is unselfish generosity. Mr. Li controls a business enterprise with
investments all over the world, but it is his unselfish generosity which inspires our
admiration. He said, 'My life will be more meaningful if I can plant some seeds which will
be fruitful for my fellow human beings'. He not only holds this belief but also puts it in
action. He said 'My success in business enabled me to have more resources at my
command. I can do more for society and our people'. He is particularly supportive of
education and medical services, giving generously to these causes. His total donations to
these two areas so far have exceeded HK$2.8 billion. Countless organizations have
received donations from Mr Li.

Mr Li's success in business and personal integrity have made him a well known Chinese in
Hong Kong, the Mainland, and indeed all over the world. He has been the recipient of a number
of honorary degrees from local and overseas universities, was praised as a model Chinese and
was chosen as Entrepreneur of the Millennium. He is regarded as one of the most influential
leaders in contemporary society.

Reference:
1. Leadership secrets of the world’s most successful CEOs. ERIC YAVERBAUM
HD57.7.Y38 2004.
2. C:\Documents and Settings\mu\My Documents\usa\leadership\barry\biography - Li Ka
Shing_files\
3. http://www.time.com/time/asia/covers/501040223/li.html
4. http://en.wikipedia.org/wiki/Li_Ka_Shing