Highlighting Li & Fung At The Hong Kong Inner Circle

The Inner Circle last Friday in Hong Kong was remarkable for several reasons.  A terrific group of business leader's from a diversity of industries (Cathay Pacific airline; Baker & McKenzie law firm; Swire hotels; Coach; Sprint, Ernst & Young and more) participated in lively interactive discussion about innovation and how to provoke it in order to promote growth and productivity. 

 

One of the most fascinating companies represented is Li & Fung.  They are cited as the world's largest global supply chain business.  Li & Fung is a conglomerate of about 200 different companies, some of them public listed companies in their own right. An interview with William Fung, who leads the huge trading company, was published in December's issue of Harvard Business School alumni bulletin and I was fascinated by his innovative approach to business.  Basically, as he sets forth in the interview, all Li & Fung companies reinvent themselves every three years.  Literally.  They decide, on a three year basis, what business they want to be in and reorganize themselves to do just that.  RIsk takers all, each business' leader is encouraged to take risks and failure is regarded not as shameful, but a learning experience from which everyone benefits.

Sabrina Fung, who leads Trinity, one of the Li & Fung companies and also publicly listed, was one of our Inner Circle guests and she wowed the other leaders around the table with her explanation of just how deeply this reinvention culture is embedded in the DNA of Li & Fung employees.  The concept of treating every third year as a year of true reinvention to the core of a company's business is audacious.  And Li & Fung has the incredible impressive success record to demonstrate how well it can work.

 

Several participants in the Hong Kong Inner Circle have already gotten together to continue the conversation.  Just what I love to hear..