'We also need to make sure that in preparing for any planned or unplanned successions we are ensuring that the new people coming in are even better than their predecessors as business continues to become more complicated worldwide.'

Including subsidiaries, Towngas employs about 2,300 people and has 90 joint ventures around the region with a headcount of more than 30,000 staff.

Towngas sets a goal each year of adding at least six joint ventures to its stable, creating demand for about 20 new executives or senior-level management staff annually. The employee turnover for the past two years has been less than 5 per cent.

'As we continue to expand our business in China, especially in our coal-related development, it is even more important that we maintain progressive sustainability in our operations,' Ms Law said.

'Our succession planning system was in place before 2000, but a more sophisticated system is required to cope with our massive geographical growth. Any effective succession planning system revolves around making sure successors are at the very least, as good as the people they are replacing.'

Ms Law said to support this core value the company would offer a variety of training programmes to selected people who had been identified as potential leaders and others working for the company.

About 75 per cent of senior management and executives are promoted from within. And Towngas provides specific courses addressing each area of development for fresh university graduates and those with work experience.

'Graduate trainees will go through different programmes than manager trainees. These courses can last from six months to two years and are very comprehensive, not only teaching the skills and qualities required to be an effective leader, but covering a thorough education on our specific industry,' Ms Law said.

'There are three areas used for development: 60 per cent of training is on the job, 20 per cent is from our mentorship programme, and the remainder is from other learning and development courses we offer in-house and abroad. Our key staff throughout the mainland also come to Hong Kong to take part in training exercises.'

Part of the succession planning system includes the homegrown TLC+ Programme, which stands for Towngas Leadership Competency. It focuses on training and developing young managers, and is a voluntary programme available to everyone working at Towngas.

'Our TLC+ Programme is based on three core characteristics - abilities, aspirations and engagement, specifically meaning how committed they are to improving their skills and themselves,' she said.

'The programme is intensive requiring absolute commitment, so it will stretch people to and beyond their limits. And it includes a 360-degree assessment from various parties to provide meaningful feedback to the trainee.'

There is also a tailored executive training programme exclusive to Towngas at the prestigious Tsinghua University in Beijing.

Towngas is conscientious about people nearing retirement, as this is a real part of succession planning. Even after retirement, some former Towngas executives are retained on a consulting basis, allowing them to contribute to the company's sustainable growth.

Ms Law said: 'It is truly about ensuring bench strength and a strong pool of talent. Only through a sound succession planning system are we able to ensure that when we identify our future leaders, they are not only prepared for taking the reins of our company's future, but are ready to commit to a long-term, life-rewarding career.'

Taking over

Towngas is 146 years old and was the third company listed on the Hong Kong stock exchange

The firm employs about 2,300 people but, including 90 joint ventures, the total headcount stands at more than 30,000

Towngas adds at least six new joint ventures annually, creating demand for about 20 executive or senior management staff

Succession planning system revolves around the thorough, effective training of key talent

Value-added retention incentives help ensure sustainability, as exhibited by the less than 5 per cent employee turnover ratio