John Chan, organising committee chairman for the Hong Kong Management Association (HKMA) Quality Award, said successful companies were being defined not just by sales volume and market share but by commitment to quality management.

'Quality management is an investment that facilitates long-term business development and generates goodwill for the company,' Mr Chan said.

'A forward-looking leadership capable of mapping out strategic plans is crucial to successful management. A company's sensitivity to market changes, a high level of customer service and strong human resources and process management also play essential roles.'

Mr Chan said the annual Quality Award encouraged participating companies to improve their efficiency.

'The award is an opportunity to get advice from quality experts,' he said. 'Shortlisted applicants get a detailed feedback report, based on the award criteria, that describes their strengths and points out areas for improvement.'

Simply entering, however, has benefits for the applicant.

'Gathering data and analysing processes for the final submission helps the applicant company identify its strengths and weaknesses. The whole process brings management and staff together.'

Modelled on the world-famous Malcolm Baldrige National Quality Award in the United States, the HKMA Quality Award has a firmly established reputation among Hong Kong's business community. The Hong Kong award was introduced in 1991.

The criteria for judging applicants are leadership, strategic planning, customer and market focus, measurement, analysis and knowledge management, human resources, process management and business results.

Besides demonstrating strong leadership and social responsibility, this year's award applicants have shown a commitment to continuous on-the-job training and to acknowledging staff contributions.

T.Y. Lee, director of the Technology Support Centre at The University of Hong Kong and chairman of the Quality Award board of examiners, said that in the past the list of winners would be dominated by private companies, but in recent years there had been clear signs that the public sector was making headway in their quality management.

Mr Chan said quality management was not the exclusive privilege of big companies in the private sector. It was also a key driver with public sector organisations and small to medium-sized enterprises (SMEs).

He said sowing the seeds of quality management in SMEs ensured that when the firms matured and grew in size the concept of quality management would have been well rooted in the companies.

The gold prize winner this year is Manfield Coatings, while silver prizes go to Hong Kong's Judiciary Administration and SGS Hong Kong.

The bronze prize winners are ACE Style Intimate Apparel, Chun Wo Holdings, Exel Hong Kong, Kuehne & Nagel (Asia Pacific) Management and Savills Property Management.

Cliff Cheung, senior quality assurance manager with Hang Seng Bank and a member of the board of examiners, said competition was keen in a challenging market and that companies knew that survival and growth depended on how well they managed quality standards and how much value they could add to their services.

The HKMA has introduced a special award in recognition of SMEs' contributions to the Hong Kong economy. Objective Solutions and Prince of Peace (Hong Kong) are the winners.