Terence Yap, China Security & Surveillance Technology Inc

As a photographer snaps pictures of Terence Yap for this interview, the chief financial officer of New York Stock Exchange-listed China Security & Surveillance Technology Inc. talks about his own passion for taking pictures. 'I like to capture images,' says the 39-year old Mr. Yap, who is an avid amateur photographer. 'I like to take people's expressions, because every picture tells a story.'

Shenzhen, China-based CSST manufactures and installs surveillance and security equipment -- cameras, alarm systems, thermal-imaging equipment, for example -- for corporate clients in China and Chinese government organizations. It also offers a range of security support services, such as monitoring and training services.

The private security industry is growing fast in China and is already worth tens of billions of dollars by most estimates. CSST's revenue has risen from $32.7 million in 2005 to $580.9 million last year. The company estimates that 2010 will see the top line increase by as much as 30%. Founded in 2001, CSST has also gone through 16 acquisitions in the past five years.

'When I first joined [in 2006,] we were close to 200 people. Now we're close to 4,000,' says Singapore-born Mr. Yap.

He recently spoke to Duncan Mavin in Hong Kong about growth businesses, China, and why Lee Kuan Yew is his management hero. The following interview has been edited:

WSJ: When you run a surveillance business in China, but you are listed in New York, are you concerned about reputational risk?

Mr. Yap: We are not that concerned, because we are in China trying to improve safety standards. We are providing tools, we are helping the government improve safety. After all, the safer the environment the more conducive it is for business, and I guess the market understands that as well. We are not part of the government, we are just a provider like any other enterprise. In terms of shareholders -- they all look at your financial performance.

WSJ: What's the biggest challenge facing CSST now?

Mr. Yap: The thing that keeps us awake at night is really trying to make sure everyone pulls in the same direction. When you do acquisitions, most of the people think 'I'm from company A, or company B.' In 2010, at least 1,200 of our employees will go through a training program that talks about the strategy of our company as a whole. We also do an outward-bounds school. They do something like 30 days of team building. Finance manager, operational manager, sales guys, from different companies and different cities, live together for 30 days. At the end of it, they build an esprit de corps.

WSJ: What else are you dealing with?

Mr. Yap: The other challenge is being a Chinese-listed company in the U.S. How you break out from the mold of being a typical Chinese company? We do our best to try to be as transparent as possible. We try to engage more investors. From 2007 to 2009, I used to travel to the U.S. a lot. Not so good for my family, but it has helped in that when we first got a listing in the U.S. [in October 2007], our trading volume was only about a few hundred shares a day. Now we trade almost a million shares a day.

WSJ: Everyone who is running a business in China talks about the difficulty in hiring the right talent. Is this the same for your industry?

Mr. Yap: I see it getting easier, as the market is evolving, starting to mature. You've got people coming back from overseas studies, returning to China. But it will take time. I remember from my days in the Singaporean army, we had different levels -- manpower, intelligence, operations, logistics. Each of them had their own command chain down the platoon. It's the same mentality. If you don't have the right leaders, your people won't be right at all.

WSJ: Who are your management heroes?

Mr. Yap: This is rather political. I'm a Singaporean, and not many people may agree, but I find Lee Kuan Yew is a good example. He has managed to build a country with no resources at all, even though some of his tactics and strategy you may not agree with.

WSJ: What has been your biggest management learning experience?

Mr. Yap: I'm still learning. When I was in the army, I learned to lead by example. You can lead by fear, but they'll never work for you 100%. If you lead by example, they work more for you. Secondly, speak their language. Meaning, understand how they feel, and then they'll respect you more. I also learned that it's important to hold onto your principles.

Sometimes you make decisions your staff might not understand, because you look at things at a holistic level.