EMBA annual dinner 大發現

去年九月開學，今晚才知城大的校長是誰；

Volunteer做Mentor，今晚才有機會和Mentee見面；

MSN聊天室的傾慕者,今晚竟是head table席上客；

Candace原來可以用紅酒當胭脂；

Grace那條珍珠頸鍊，令我一見難忘；

Daniel新車的 Back seat 好比商務客艙!

Incremental Cash Flow

20年前學習PHYSICS，已知道磁懸浮原理，上週在上海第一次乘坐我國的磁懸浮列車!

磁浮火車是利用磁力使火車懸浮於路軌之上。上海的磁浮火車被稱為 MagLev，即 Magnetically Levitated train 的簡寫，穿梭於上海市中心和浦東國際機場之間，整個旅程30KM只需8分鐘，最高速為431KM/h！

當列車達到最高速時，很多遊客都在照相，我也不例外！

磁懸浮列車技術已經有幾十時年，由於實施成本太高，一直不能普及應用。上海的MagLev是全球第一條商用的磁懸浮列車，是德國人的傑作，造價100億，還有高昂的維修費用！

個人使用經驗，覺得它不如日本的新干線和香港的機場快線，從蒲東機場要走路10分鐘才到車站，等車要15分鐘，行車時間雖然只有8分鐘，下車還要走2-3分鐘到Taxi站等Taxi，全程所需的時間和直接在機場坐Taxi差不多，要是有行李，MagLev也實在太不方便。

據我觀察人流的狀況，如果要用Incremental Cash Flow 來 justify 這個項目投資，100年也無法收回成本，一定不可能通過，上海人不是很精明的嗎？

MagLev確是風風光光的虧著在營運，因為這個是一個政治項目，張獻中國的現代化，滿足上海人要面子的一慣作風，Project Decision 不是 Incremental cash flow 就能作決定，實際要考慮的dimensions太多了。

IT Implementation vs Organization Restructure

The IT development in recent decade created lot of challenges to organization behavior.

Microsoft word processor took away the job of typists. Email stole jobs from office assistants and postmen. Accounting software replaced roles of book keepers. ERP system kicked out production planners. Adoption of new technology changes our work environment and organization structure.

As a software vendor, we come across lot of conflicting situations among IT department and users. Implementing a new IT system means more than rolling out a new system to users but changing their work habit and reassignment of roles and responsibilities. Resistant to change is a normal reaction.

Based on our experience, IT project failure could be a technical issue but in most cases, it is a people issues.

My first web class

Internet is changing the world.

Yahoo portal is my main page. Google is my default search. MSN is my primary online network. Skype is my second direct line. Blogger is my online journal. They are my daily applications. Without them, I feel like handicap.

With a frequent travel schedule, I missed a few EMBA classes before. Yesterday, Henry offered to set up a web class for me while I was in Beijing. How cool!!!

We used the MSN voice feature first. However, I was not satisfied with the sound quality. Then, we switched to Skype and it was perfect. With a web cam, a free internet web class was set up.

Well, of course it was not the same as "in" the class. The picture quality was not so good. Professor was a moving object that the web cam could not catch him all the time. I could only hear LPs' discussion but did not know who was talking. The worse part was I could not participate in those discussions.

After all, it was an interesting experience. At least, I have a brief idea about what was going on in the first class and the progress of the R-trip.

BTW, it's fun to hear some gossips during the class. haha...

精讀班

教授開班時把課程目標定為：

﹣ 完成課程後，同學能分析上市公司的年報，並懂得如何尋找值得投資的公司。

﹣ 如何用distress analysis來避免type 1 error。

老板經常希望能上一個給Executive的Financial Analysis精讀班，讓他能很快的掌握一些基本的財務分析，一心以為這給課程的Notes可以幫到他，今天看同學們的反應，相信不大可能！

應同學們的要求，我當上了臨時Miss，把當年剛入行做Audit 給non-accounting background同事的Concept Training加上一些課堂上的內容，給同學開了一個考試前精讀班，感覺非常有趣！

雖然不知道對他們有多大幫助，但很想大家花了時間來學習，能真正的學到一些東西，盡力而為罷！

講了三小時，雖然有點累，同學一句：「難怪英皇補習甘惦，原來精讀班甘有用！」，把我逗得哈哈大笑，果然是高材生，考試時他一定能掌握教授的要求！

Qualified accountant

Qualified accountant is only a title for those who can pass the professional exam. Most of them dun know how to "window dressing" or "cook" the book. They are not necessarily able to understand every financial statement from different industries.

Given a snap shot of a financial statement, without any information about the industry and the company, it is almost impossible to form any analytical opinion. However, Professor seems enjoy playing with his professional knowledge to confuse LPs.

Any financial statement is business oriented. Different industries have different risk items in their financial statements. For example inventories for manufacturing industry, accounts receivable for trading business, re-valuation reserve for property developers, goodwill for IT industry.... Cashflow is critical for any business.

Different industries also have different valuation methods. Asset backing method is mostly adopted for real estate business. Different industries adopt different P/E as a norm. High P/E for high growth business or industries......

Accounting is a business tool. It is business oriented. "Windor dressing" techniques are highly customized.

Type 2 error

Being a CPA, I have never taken any proper accounting related course. I only studied for professional exam. My professional knowledge and experience were gained from PwC by investing my most precious 5 years. After all, I learned that the published financial statements provided the least information for investment decision.

Today, I had my first proper accounting class. Professor Yip gave me a new perspective about how to review a financial statement. You can smell something by checking the thickness of the report, any photos (irrelevant information), any change of comparative figures, any change of auditor or independent director. Sounds .... did I waste 5 years in PcW?

He emphaized how to avoid type 1 error (total loss) by reviewing the financial statement. He also suggested that we should not make any investment if the expected gain is less than 100%... what? yes....100% in 1 year.

If we follow his approach, we will only make type 2 error (miss a good opportunty). What an accountant investment approach!!!

臨時加插的歷史課

EMBA 有一個傳統，每一科完成後都會和教授吃飯，這科是Operation Management，教授是曾淵滄，飯局在九龍塘會。

曾教授在股壇名氣不少，很多同學每天都拜讀他的股評專欄，平時上課，大家總是向他要“Number”，今天晚上的謝師宴，以為是一個2007股價走勢的講座，出奇不異，原來是中史，地理的補習班。

什麼五代十國，五胡亂華，炎王子孫，鄭和下西洋，李世民原來不是漢人，李白是俄羅斯人，西施是越南妹，曾教授是曾子後人，是曾特首的阿叔，原來曾特首也是曾總理的阿叔， 聽得我一頭暮水！

博學的郭同學當上了助教，同樣有本領穿梭於五千年中華文化的時空中。臨時加插的這堂歷史課，讓我手足無措，一度以為自己誤闖周星星的腦震盪工作間！

求學不是求分數

今天又做了一個Group Project，各組的題目一樣，present 的內容大同小異，同組同學和我都是在香港教育制度培育出來的，對於如何「求分」有相同的見解，就像考試捉題目一樣，要知道教授的絕學是什麼，把他的東西發揚光大，應用在各方各面，一般都能取悅他，拿到不錯的分數，這個Sushi Project想爆頭，想出了一招半式，不知道那條Critical Path會否為我們帶來Critical Result!

現在讀書，求學不是求分數，但是難改故有的思維!

Linear Programming

Linear Programming is an optimization technique. Giving a set of constraints, you can work out the optimal result mathematically and systematically. It is a scientific way to maximize resource allocation.

I am thinking how to set up a model for the PM problem of my company.

Constraints:
List of project on hand
HR requirement for each project
Number of available staff and their respective cost

Minimize:
Minimize the staff cost to deliver the existing projects on hand

Well, still dun know how to set up the solver?

Analytic Hierarchy Process (AHP)

AHP is the concept of multi-criteria decision making and a decision support technique with the following steps:

Step 1: Developing the AHP Hierarchy
Step 2: Making Judgments about the Criteria and the Decision Alternatives
Step 3: Deriving the Priority from Pair wise Comparison Matrix
Step 4: Measuring the Consistency of the Decision Maker’s Judgments
Step 5: Synthesis -- Construction of an Overall Priority

We have adopted this method on a case study for the decision making of office relocation. It is an interesting model. I will keep a copy of the excel model and will make use of it later for my company. :-)

慾窮千里目，更上一層樓

剛上完了Marketing最後的一課，對自己的表現不大滿意，看來在以後的課目要更加努力，要不就浪費太多時間和金錢！

周南教授的教學非常哲理，學了一大堆「虛、實」，「天時、地利、人緣」，「多就是少，少就是多」，「時勢造英雄，英雄造時勢」，還有「“提錢”通知」，「好好“煙酒”」，他把西方的市場學理論，用了中國人的文化、歷史和哲學作了另類演繹，對我來說，還是挺受落的，反正那些理論以前已經學過。

反而，在整個課程中，從各個learning partners的presentation中得到不少inspiration，各行各業，原來都有一個成功的「必煞技」，不知我們用對了沒有？

可能真的想「慾窮千里目」，就要「更上一層樓」！

善用無用，方為有用

市場學，越學越「玄」。 Interesting and inspiring!

少即是多 Less is more

善用無用，方為有用

無往不利 to go everywhere and make profits
無孔不入 to get in by every opening (crack)
無所不在 to stop at nothing
無微不至 Without any detail not taken care of
無時無刻 at no time, all the times
無為而治 managing by without the manager

攻心為上，攻城為下

“夫用兵之道，攻心為上，攻城為下，心戰為上，兵戰為下.” 【蜀志】

A Beautiful Mind

I learned Prisoner's dilemma from Dr Poon at my first year in the CUHK. He used Nash Equilibrium to explain a lot of market outcomes. I was amazed and liked him a lot. Despite his mathematical approach and grade killer attitude, I took a few more courses taught by him.

Today Dr Hung introduced this games theory in the class. From the face of most of the learning partners, I could tell that they could not follow.

Dr Hung gave me new insight about the "value of guanxi" in Nash Equilibrium. Nash Equilibrium is a lose-lose outcome. Investing in Guanxi may be able to stabilize the win-win outcome by building on going positive expectation.

Tonight Pearl TV showed movie "A beautiful mind". The story was about John Nash. What a co-incident? I watched the movie a few years ago but I did not remember that I had learnt his theory. When I watched it again tonight, I felt I'm so close to this Nobel Prize Winner.

Competitive Analysis

The professor seems picked a good book and a good focus for the EMBA class. I guess he can't be too "econ" to teach a class full of executives.

Porter's Approach was introduced in the class with Six Forces. How are the forces of my company?

1. Threat of new Entrants
- Possible entry barrier: Brand, Technology (not too strong)

2. Rivalry among existing firms
- A few major players but many small players
- High industry growth

3. Threat of substitute products or services
- Substitute exist such as ERP, Workflow

4. Bargaining power of buyers
- Large

5. Bargaining power of suppliers
- Self developed

6. Complements
- Scanners, server, ...

It seems that we are at a quite competitive industry.

Presentation

Each of the learning partners are assigned a presentation topic at the beginning of the course. The presentation order is based the aphibatical order of our last name. Mine was scheduled on the last day of the class.

Today, my partner and I presented the topic about Cultural Gap. I am so glad to partner with someone who has strong sales background. He added lot of creative elements into the presentation including video, sounds effect and graphics. I am also impressed by his commitment and work passion.

It is a good feeling to work with quality people. : )

Type A people

When talked about executiive stress, Professor Leung told us a research result about Heart Attack. The research result found out that Type A people had higher chance of having Heart Attack.

Am I type A?
- Impatient
- Aggressive, competitive, hostile

I guess not. :-) but I better to remind my Type A friends.

Experience sharing

One of the main reason for me to pay a premium for EMBA instead of MBA is for experience sharing from other learning partners. In the first group exercise, the team worked until 2am at my club house. But, it was fun. I learned some insider news of other learning partners company, such as problems of a well known organization famous at excellence management, why the top management of a media company being replaced, ...

Organization ---> complex
human beings -----> complicated

Leadership

We talked about Executive Role and Leadership. In the class, everyone is having an executive role or being a leader in certain areas. However, not every leader have leadership.

Leadership may be trained or in-born. It is about personality or character but not a role. Leadership may have the following elements:
- Uplifting
- Visionary
- Charismatic
- Inspiration
- Intellectual stimulation
- Individualized consideration

I think I am only a good executive but not having much leadership. Although I believe leadership is more in-born than trained, I still hope to learn having more leadership elements in the class. :-)

How can we create a culture of leadership at our company? We need more people with leadership to achieve our vision.