Caring Every Drop of Water on the Land of China

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Caring Every Drop of Water on the Land of China
法国马赛KEDGE商学院-韩国高丽大学-香港理工大学EA-DBA项目学员,联合水务有限公司副总裁,分管供水业务。

刘猛

联合水务有限公司副总裁


“Water” business, from 3 to 830 employees over 13 years


WhichMBA: Could you please tell us what United Water is?

Liu Meng, VP of United Water: United Water is an investor and operator in China’s water market. Our main business is to provide water supply and waste water treatment services to urban residents and industrial parks in the Chinese Mainland. We gain profit from long-term operation in a franchising model.

     

At present, United Water is running projects of water supply and waste water treatment in nine cities of eight provinces: Suqian of Jiangsu, Tongxiang of Zhejiang, Ruichang of Jiangxi, Suizhou and Xianning of Hubei, Sanmenxia of Henan, Yuncheng of Shanxi, Huhhot of Inner Mongolia, and Yinchuan of Ningxia.


WhichMBA: What are the stages of development that United Water has gone through?

Liu Meng: United Water was founded by Mr. Yu Weijing, with himself being our President and Chairman in Beijing in 2003. I joined the founding team together with Chenqiao, who is now in charge of waste water treatment. The company started with just three of us. In the last 13 years, United Water has grown into a company with 13 projects and 830 employees.



The development of the company can be divided into three stages.


The first stage is the startup period. The company was established from scratch with no brand recognition. We invested in the first project in Suqian in 2004 and the project was finally in operation four years later.


The second stage is the rapid growth period. With the first project in operation, we were determined to expand to other cities. Meanwhile, we also invested in some waste water treatment projects. This stage witnessed the fast expansion of the business.


Now we are in the third stage. We plan to use the Suqian subsidiary to launch IPO in China’s A Share Market in three years. We have some very strong international strategic partners such as one of our shareholders, Infinite, which is an Israeli Fund investing mainly in the Chinese market as well as IFC, the renowned financial investment institution affiliated to the World Bank. Any investment project by IFC could be almost audit-free due to its high standards of project selection.


Cherishing water resources and taking corporate social responsibilities


WhichMBA: Could you share with us the principles and practices of corporate social responsibilities of United Water?

Liu Meng: Take the education sector as an example. Mr. Yu Weijing, our President is deeply related to Shanghai Jiaotong University. He himself graduated from Jiaotong University and is also one of the first MBA participants of Antai College of Economics and Management since the MBA program was launched. He greatly values the idea of financially supporting the Alma Mater.



Therefore, United Water sponsors the United Water scholarship, financing 14 outstanding students from various schools of SJTU every year. Our scholarship volume for each individual student is the highest of all the scholarships in SJTU. In addition, Mr. Yu donated over 2 million RMB for the renovation of the monument enshrining the motto of SJTU “When you drink water, never shall you forget its source.” He was awarded as “outstanding alumnus” of SJTU last year.


Our business by nature is very close to the society. Operating the water supply and waste water treatment projects well is our best effort on social responsibility. We should be responsible for the livelihood of the citizens.


We are also practicing CSR in other ways that are good to the public. For instance in Suqian, we offer five cubic meters of water for free to the households in poverty. What’s more, during the project construction, we pave the roads surrounding the site for the convenience of the neighboring residents.


WhichMBA: China’s water resource distribution is very unbalanced. What do you think could be the solution to the water supply issue in China?

Liu Meng: Environment protection is a very broad concept. It involves not only the safe and high-quality water supply, but also the waste water treatment with higher collection rates and treatment standards. At present, there are 106 indexes in the national drinking water standard, which is much higher than that of the EU. Take Jiangsu as an example, the provincial government requires us to further process water by the end of 2017 so that our water is qualified for drinking without further treatment after it leaves the factory. Now 60% of our water supplied in Suqian is qualified and we will achieve 100% by the end of next year.


DBA is a journey to explore the answer to business questions


WhichMBA: Why did you decide to sign up the DBA program? Is it because there are still many goals to be achieved and visions to be realized?

Liu Meng: Yes. I took the MBA program before and now I have started with DBA. I think MBA courses are mainly for the improvement of managerial capabilities such as financial skills and human resources knowledge etc. However, it is more important to be able to make long term development plans or critical decisions for the business when you are at a higher position in the company. It is essential to find solutions for the business to achieve sustainable development and to build to last. DBA program allows you to have targeted and selective learning, instead of knowledge indoctrination. With the guidance of professors, you will have to identify your own research field of interest and ultimately come up with some answers through massive reading and mentoring by the supervisor. The whole journey would be not only valuable to you as an individual, but also to the company as you will have more thorough understanding of the business development.


WhichMBA: You have been reading extensively and taking many seminars while still working. How is DBA study changing your life?

Liu Meng: I really enjoy putting what I have learned into practice. As the vice president of the company, I can easily apply any new concept I have learned. For example, I have used many managerial tools from the MBA program in the business to see if they work. I would be very happy if I could come up with some new ideas and ways about corporate culture to promote the sustainable development of the business. It is great to apply the knowledge. Of course, you will have to be in the right position before you could practice and make a difference.


Quick Q&A:

1.What does study mean to you?

It means elevation and addressing problems.


2.What is the biggest appeal of EA-DBA to you?

The Euro-Asia Doctorate of Business Administration (EA-DBA) is an international program with the collaboration of three top schools: Kedge Business School, Korea University Business School and Hong Kong Polytechnic University’s Faculty of Business. The biggest appeal to me is that I will be able to attend classes, experience their different cultures as well as to be inspired by the faculty of the three schools.


3.Who do you admire the most?

In the world of business, I admire Ren Zhengfei of Huawei. His business is the only Chinese company to be awed and respected by the rest of world. In addition, he is doing business in the real economy and I think the development of a country should be based on a sound real economy. So I really admire Huawei.


4.What do your friends think of you?

They think that I am sincere and straightforward.


5.What kind of employees do you appreciate?

I appreciate employees who are able to see the problem and try to solve it instead of being nagging. We have plenty of problems already, so it’s time to find solutions.


6.In your professional life, what do you think is the stage where progresses are hard to make?

I think the most difficult part is the transition from doing everything yourself to leading others to achieve a bigger goal.


7.Then how did you make it?

The transition was really hard. You have to empower your subordinates and tolerate their mistakes. It is quite often for you to take over the task again when they make mistakes. You have to change this habit of micro-management if you want to focus on something bigger. The time and energy of an individual is limited, therefore, you cannot afford to do everything by yourself.

 

8.What do you think are your strengths?

Accountability, boldness and decisiveness.


9.What do you think are your weaknesses?

Being too emotional sometimes. Our chairman often reminds me not to be too emotional. Rules and principles are of equal importance in the business management.


10.How to be a great leader in today’s society?

A great leader should have strategic vision and be able to empower the subordinates with tolerance to their mistakes. In addition, he/she should be a good mentor to answer their questions and provide guidance to their growth. More importantly, a great leader should lead by examples.


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