Career Advice Successful High flyers’ story

Hong Kong managing director for Daikin, Duncan Ip puts faith in his staff and the company reaps the rewards

Library shelves are full of books on management theory and leadership, but for Duncan Ip, running a successful business comes down to a couple of fundamentals.

One is to make the company feel like a family, his take on the corporate philosophy of people-centred management. The other is to let his 130-strong team participate and initiate – not just follow orders and procedures – thereby encouraging them to take opportunities and make their dreams come true.

“I’m a very simple man and believe that if staff are happy, the business will do well,” says the Hong Kong managing director for Japanese air-conditioning firm Daikin. “I want people to have drive and self-motivation and the belief that they can suggest something and then see it happen.”

This mindset, he notes, has an impact on organisational efficiency, team spirit, and interaction with clients. By letting individuals test themselves and assume new responsibilities, it instils self-confidence and creates a stronger sense of belonging.

“We saw that recently at a one-day thank-you event staff organised for dealers,” he says. “There were around 2,800 there for a barbecue, games and other entertainment, and I think everyone felt part of the family.”

As the fourth of six children, Ip grew up in and around San Po Kong where he became aware how hard it had been for his father, a graduate of Guangzhou’s prestigious Zhongshan University, to earn a living from part-time accounting jobs after migrating to Hong Kong in the 1950s.

Ip enjoyed his time at local schools and, to earn pocket money as a teenager, took a HK$10-a-day summer job working a machine in a nearby sheet metal factory. His classmates did the same and, following another norm for the times, in 1980 he began a two-year higher diploma in textile machinery and technology at Hong Kong Polytechnic. It taught how to fix sewing machines and everything else used for factory production, but even then there were clear signs the local garment industry was in decline.

Ip admits he chose the course without sufficient thought or guidance – and without the benefit of today’s kind of internship to show where it might lead.

“I was stupid. I completed the course, but hated it from the very first day,” he says. “So, when I started looking for a job, I was ready to take anything so long as it wasn’t related to textiles.”

That turned out to be a junior role with a small family firm in Sheung Wan selling office furniture and partitions imported from Finland. The experience proved to be interesting, instructive and low-paid.

“I didn’t know how to sell; I had to teach myself,” Ip says. “Nowadays, we offer a lot of training courses, but I bought one of the senior salesmen lunch, got some basic advice, and took it from there.”

Having committed to contributing all of his HK$1,000-a-month salary to family expenses, he got by on commission payments alone and soon learned that hard work and higher sales made all the difference. Fortunately, the day-to-day requirement of phone calls, client visits and follow-ups came quite naturally.

“I liked communicating with people, persuading them, explaining things, and getting ideas across. I had the mentality of a salesman. But in those days, I was also quite hot-tempered. If I saw something I thought was unfair, I would shout about it, even minor things, and that led to being fired from my first two jobs.”

The second was with Arnhold & Co, a trading company specialising in building products, where good results didn’t bring promotion.

The third was with Jebsen, mainly selling water pumps, until he he opted to join Daikin in 1991 as assistant sales manager handling new products and systems for a brand then little known outside Japan. The attraction was the chance to work for an organisation with a different management style in a sector which offered real potential and, initially at least, would let him draw on good contacts with local property developers and contractors.

Within five years, Ip had risen to deputy general manager and was establishing the firm’s network in mainland China from a three-day-a-week base in Guangzhou. A subsequent stint from 2005 to 2015 saw him setting up further offices in Beijing, Shanghai and Wuhan, creating an effective framework for a much expanded sales force.

“In most cases, I was starting from zero, so I learned a lot, in particular that every corner of China thinks and operates differently,” he says. “But in those 10 years, sales turnover in my territory increased 15 times and headcount went from around 60 to 500-plus today.”

In his current role, the key objectives include giving more support to the dealer network, ensuring reliability, and maintaining the drive to replace older units with more energy-efficient models. This obviously ties in with the company’s own education campaigns on conserving resources and persuading people to use less air conditioning, but to better effect. Usually, it is a matter of choosing the correct temperature setting plus considering humidity, comfort and air quality.

“With these strategies, we have been able to achieve growth even in difficult economic times,” he says. “The company is now number one in Hong Kong and around the world.”

Away from the office, Ip has always liked all kinds of team sports for the excitement and competition, but also for some of the broader lessons to be learned.

“When you face up to the prospect of losing and overcome it, that makes people stronger,” he says. “Also, in a team environment,  like seeing how individuals bring the best out of themselves and come together for a common good.”

 

WORLDLY WISDOM

Duncan Ip’s advice for those starting out

Do your research  “It is not always easy to make the right career choice. First, you have to understand what is on the table, so when I talk to students I make a point of mentioning the types of jobs we have and what they involve.”

Follow your path  “In general, I believe that everyone should be allowed to have their own dream and to find their own direction in life.”

Be brave  “In a first job, don’t be afraid to speak out or of making mistakes. Employers should give staff the confidence to contribute and make sure they aren’t worried about negative feedback when voicing an opinion.”

Reflect  “Before joining a company, candidates should think carefully about its core values and basic philosophy, not just its size, brands or marketing campaigns.”

Talk  “In any kind of business, good communication is very important because problems can easily result from misunderstandings. Therefore, knowing how to deliver a message is a key skill.”

 


This article appeared in the Classified Post print edition as Conditioned for success.