ceo
celebrating excellence in organisations Vol 15 No 5 - 2016
PEO Online A Friend of the Learning Institutions
Customer Service The New Strategic Differentiator
Mercedes Benz E-Class Mercedes Benz E-Class
Energy
Nico Oosthuizen, CEO, Ontario Energy Holdings
Sparking
Investment
REWORKING ORGANISATIONS
CUSTOMER EXPERIENCE
PERFORMANCE ENERGY USB delivers well matched speaker solutions that are aligned to the conference outcome.
EXPERIENCE
KEY STRATEGIES
MENTALIST
BEHAVIOURAL DYNAMICS
FIT FOR PURPOSE
CUSTOMER EXPERIENCE
CHANGE INFLUENCE INCLUSIVE INNOVATION
Often an entire line-up of speakers is chosen from the USB stable due to the cohesiveness of this bureau. The wow factor of speakers, mcs and entertainers knowing each other and working together to achieve your conference objective is magical.
DISRUPTIVE
HIGH PERFORMANCE
Unique Speaker Bureau is often the bureau of choice when it comes to sourcing select talent for your event. Unique Speaker Bureau’s collaborative team of keynote speakers, MCs and program directors (facilitators) are carefully chosen for their presentation content, professionalism, expertise, experience, depth and collaboration. The aim is to give invaluable exchange in abundance to every client, resulting in successful events. USB speakers are local and international professionals, with a proven track records the world over.
GLOBAL TRENDS FUTURE FIT
USB speakers have solid speaker & MC credentials; we rely on repeat business and deliver excellence constantly
POLITICAL LANDSCAPE
CODE
PERFORMANCE
DIFFERENTIATOR
NEW WORKPLACE
For a truly impactful event that leaves everyone inspired, committed and motivated, call USB experts today on +27 11 465 4410 Alternatively, contact: Paul@uniquespeakerbureau.com I +27 83 268 6057 www.uniquespeakerbureau.com
EL Niño
an 1876 El Niño created a drought that killed 18 million people in China and India
Pacific Ocean
More than 30
million people
people are reportedly said to be affected by
El Nino in South Africa with
with maize output having dropped by
30% in South Africa alone El Nino
El Niño is a climate cycle in the Pacific Ocean with a global impact on weather patterns. The cycle begins when warm water in the western tropical Pacific Ocean shifts eastward along the equator toward the coast of South America. In Southern Africa, the typical patterns of vegetation condition are severe drought-related vegetation stress in El Nino years. 2016 is an El Niño year and South Africa is drought stricken.
La Nina 50% of the earth
Both and have the ability to change the climate across more than and are the most powerful earth phenomena.
2015 was the planet’s
hottest in modern times according to US scientists
El Nino
is the cause To a certain extent of deadly extreme weather
on at least five continents
According to SA Weather Service the 1997-98
El Nino was the strongest on record, but not all of South Africa received below-normal rainfall
EDITORSNOTE
EDITOR’S note
S
Who is taking
the Lead
ome much has been written and said about the political turbulence that has dominated South African society during the last year that we are starting to come full circle.
Who didn’t do what and why stills remains unclear, no matter what assertions have been made in the press. Even more intriguing are the unanswered questions around where the responsible individuals were at decision making time and when, if ever, they expected the chickens to come home to roost. Whether we like to know it or not, this type of ‘hands-off’ approach projects a very cavalier attitude that doesn’t sit very well with the rest of the world. As a nation we have developed the habit of cocking a snoot at convention and while this has worked for us on occasion, it’s unlikely to help us in the current global environment. Probably the most pressing concern is to continue attracting foreign investment. The reality is that investors like stability, security and the knowledge that they are going to be achieving solid returns. As some parts of the developed world run out of steam and need to pause in order to regather momentum, we should be presenting ourselves as a viable investment destination. Notwithstanding everything that has transpired in recent times it can still be done. The challenge is to find those South Africans that can take a long hard look in the mirror, accept their own imperfections and be humble enough to drive the country forward. We desperately need these people and quickly.
Probably the most pressing concern is to continue attracting foreign investment.
Valdi Pereira CEO 2016 Vol 15.5
03
PRETTY. DEADLY. When Chinese Lanterns, also known as Sky Lanterns, are released from beaches, they are often mistaken foremergency distress flares. NSRI volunteers then launch rescue boats and spend hours looking for people in difficulty.
Chinese Lanterns are also harmful to the environment and are a fire hazard.
INSIGHTS
Matthew Lee
Matthew Lee, Regional Manager, Africa at SUSE,
So why the sudden interest in OS for the enterprise? For one, the nature of development has changed significantly. Some suggest that the growing consumerisation of technology has played an important part in this where people are expecting more from their technology. This means developing solutions to cater for these requirements needs to happen much faster than before. Open source lends itself perfectly to such a pressured environment and has agility and flexibility at its core. By providing businesses with such an enabling platform, it makes sense for them to expand their OS footprint and have more customised solutions catering for very specific needs both internal as well as external. This OS development is not limited to only creating apps. Instead, today it extends to core mission-critical processes and platforms inside the organisation. As part of this, the business needs to ensure that it works with a partner that has the necessary OS skills in place to provide effective integration between solutions across OS databases, an open management system, open customer relationship management, and even an open cloud. When it comes to OS, the fastest-growing system remains Linux. In many instances, it is the de facto standard when it comes to private and public sector entities across industries. Again, the flexibility of the development environment means it can be customised as is needed. Even Microsoft has indicated that SQL Server 2016 will be supported on Linux in the coming months indicative of the shift that has taken place in the industry. It therefore makes sense to embrace a nimble OS environment so business can grow more cost-efficiently than
Enterprise OS
vital for business Open source (OS) software is no longer the exclusive domain of back-end IT systems. It is permeating every facet of business in the competitive rush to embrace digital. However, the shift to a more OS-centric environment needs to have clear focus if it is to be effective.
T
he enterprise OS environment of today is a far cry from a purely open community-based approach. Certification has become an indispensable component to selecting the right delivery partner. In fact, businesses often make the mistake of not seeing OS as another critical organisational component. It has to have the same approach as any other partner-based system.
Focus on Matthew Lee
in the past. So when making the move to OS, there are a few important things to consider. Firstly, interoperability with other operating environments needs to be at the core. This not only makes consolidation that much easier, but it is an ideal choice for heterogeneous environments. Also consider the level of support that is provided by the partner. Scalability also has to form part of any IT strategy. Having an environment that can scale according to the growth of the business adds a great deal to future-proofing the OS investment. And of course security; fortunately, when it comes to OS software, security forms the backbone of the approach. So consider the effectiveness of OS and the flexibility that it provides the organisation. The future growth potential and efficiency benefits make perfect business sense.
CEO 2016 Vol 15.5
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CONTEN STATEyourCASE
62
57
MERCEDES BENZ GLE
18 PEO Online A Friend of the Learning Institutions
MERCEDES BENZ E-Class
10 THE LEADINGEDGE 08
Nico Oosthuizen, Chief Executive Officer and a founding member of Ontario Energy Holdings shares his perspectives on the potential of the energy sector, the importance of moving forward as a country and the importance of creating shareholder value.
REGULARS 2 Your World Unravelled 3 Editor’s Note 5 Insights 8 Flip Side 14 On Point
THE FLIP SIDE
34 What’s Hot or Not Unaged Angus Angus Upton is the young, vibrant and newly appointed global brand ambassador for the Distell signal malt portfolio.
LIFE STYLE
65 50
SPOTLIGHT
14 ONPOINT ‘Going with your gut’ is great for intuitive leadership and direction for your business, but when it comes to financial decisionmaking when steering your business, making sure that you have thoroughly thought through all the implications of a big decision greatly increases your chances of it being the right one.
48 Spotlight 72 In Conversation With
LIFEstyle 57 Mercedes Benz E-Class A Modern Masterpiece
60 Reunion Island A Hidden Treasure, blessed by Nature
62 Mercedes Benz GLE 250 d Touring Perfection
65 Strassbergers Shoes
34
Strassbergers’ Legendary ‘Treads’
WHAT’S HOT OR NOT
NTS
GLOBAL Expand your business Horizon Publisher CEO Global (Pty) Ltd Tel: 0861 CEO MAG Fax: (012) 667 6624 Tel: 012 667 6623 info@ceomag.co.za www.ceomag.co.za Chief Executive Annelize Wepener annelizew@ceomag.co.za
Focus on Excellence
Director: Strategic Development & Editor in Chief Valdi Pereira valdip@ceomag.co.za
68 Kate Kibarah
Director: Corporate & Financial Services Carl Wepener carlw@ceomag.co.za
A Self Made Individual
Manager: Office of the Chief Executive Nadine Aylward nadinea@ceomag.co.za
70 Dr Richard Maponya
General Manager: Global Services George Wepener georgew@ceomag.co.za
The Township Business Revolutionary
General Manager: Global Media Services/ Head of Production Channette Raath channetter@ceomag.co.za
SUPPLYworx
Junior Designer Niel Viljoen nielv@gmail.com
22 Executive Graphic Images Technologies Don’t Let Your Merchandise out Of Your Sight, Even When It’s Left the Warehouse
Manager: Business Development – SADC South Neville Mukoma nevillem@ceomag.co.za Danny Kabongo dannyk@ceomag.co.za Journalist Andrew Ngozo andrewn@ceomag.co.za
24 LRMG Management Group Customer Service – The New Strategic Differentiator
Team Leader: Continental Programmes Pule Mahodi pulem@ceomag.co.za
26 Engineering Council of South Africa
Continental Project Administrators Sylvia Houinsou sylviah@ceomag.co.za
Women in Engineering - The Leadership Challenge
Rumbi Chanda rumbic@ceomag.co.za
28 Centre for Mechanised Mining Systems Mining Mechanisation is Urgent
Manager: Corporate Support Raymond Mauelele raymondm@ceomag.co.za Client Development Administrators Winston Williams winstonw@ceomag.co.za
29 KPMG
Client Liaison Officer Cobus Kramer cobusk@ceomag.co.za
Procurement in Africa: Billions Lost In Value
Receptionist Wilheminah Nchwe wilheminahn@ceomag.co.za
30 Paragon Interiors Office Design Trends for 2016
Office Assistant Minah Mahlangu minahm@ceomag.co.za
32 National Business Initiative
Security Guard George Mbana
Managing Energy Costs a Key Factor in Business Sustainability
INtheKNOW
42 Yardstick for Growth
36 Teambuilding for the Start-Up
44 Strategies to Resolve Conflict in the Workplace
All you need to know
38 Career Survival Kit You may need it
40 Corporate Sustainability Genuine Concern for the Environment or Reputation Management?
Measure of Success
Orson Welles would be proud
46 Tomorrow’s Technology, Today
* No article or part of an article may be reproduced or transmitted in any form without the prior written permission of the publisher. The information provided and opinions expressed in this publication are provided in good faith but do not necessarily represent the opinions of the publisher or editor. All reasonable efforts have been made to ensure the accuracy of the information contained in this publication. However, neither the publisher nor the editor can be held legally liable in any way for damages of any kind whatsoever arising directly or indirectly from any facts or information provided or omitted in these pages, or from any statements made in or withheld by this publication.
Look Ahead
47 Build Your Business One Block at a Time Patience Required CEO 2016 Vol 15.5
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FLIPSIDE
It is estimated that there are over billion bicycles in the world – twice the number of automobiles. Whilst just about everyone knows about the Dutch infatuation with this two wheeled form of locomotion, it is worth noting that China has >500,000,000 bicycles clogging its streets and countryside – far more than any other nation. It kind of makes you wonder who the real beneficiaries of Mao’s industrial revolution were.
Up
Pedal
Tat-tale US soldiers, who happen to be lovers of skin art have reason to rejoice. An update to army regulation 670-1 means there are no longer limits to the size and number of tattoos soldiers can have on their arms and legs. Good news, we think. Just to keep everything on the up and up racist, derogatory and sexist tattoos remain outlawed.
With the buying power of millennials slowly gathering momentum their social habits and spending are becoming increasingly important to big business. One early and interesting indicator is their propensity to consume non-alcoholic beer. While there are no definitive studies available in this regard, it would seem that in some European cities demand for non-alcoholic beer is growing strongly amongst millennials. Could this socially acceptable beverage bring an end to the disorder often associated with a night on the town? Don’t bet on it.
Sobering 08
CEO 2016 Vol 15.5
FLIPSIDE
Future Imperfect Research by the Pew Research Centre reveals that Italy has the highest level of car ownership at 89%. They just shade Americans who come in at 88%. Germany tops the list of motorcycle owners with 80% of respondents owning a bike. Draw your own conclusions regarding the links between affluence, personal mobility and the growing middle class in Africa.
Hazardous Stuff Last year the United States recorded 38,851 unintentional poisoning deaths. The most vulnerable groups in this respect are the very young and the elderly. The leading cause for these poisonings – for children accessibility to poisons is often key while for the elderly the inability to read labels plays an important role. The proposed solution: better packaging, the inclusion of bittering agents and more prominent labelling.
simple
Keeping it
What do Spain, Bosnia and Herzegovina, Kosovo and San Marino have in common? None of their national anthems have lyrics. Good or bad, one thing is for sure, the harmonisations of their national anthems will always move with the times – even if their politics don’t.
CEO 2016 Vol 15.5
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Sparking Energy by Valdi Pereira
In this edition of CEO magazine we speak to Nico Oosthuizen, Chief Executive Officer and a founding member of Ontario Energy Holdings. He shares his perspectives on the potential of the energy sector, the importance of moving forward as a country and the importance of creating shareholder value. Nico Oosthuizen, Chief Executive Officer, Ontario Energy Holdings
LEADINGEDGE - Ontario Energy Holdings
What does listing on the JSE mean for Ontario Energy’s current and future prospects? The listing is in many ways a coming of age for our investment cycle. There is tremendous growth potential within our investments across the oil, gas and mining sector. We want to unlock these prospects and the listing will provide us with the opportunity to achieve this. Our renewable energy segment of the business will grow 300% over the next year and to realise this growth, there will be significant capital requirements. Our listing will help with the demands we will face to finance this growth. The fact that we are three times oversubscribed is an indication that our vision and strategy resonates with the investor community. There is a realisation that we need to lower our dependence on coal generated electricity and we are certainly seeing that investors are alert to opportunities that can help change the way we generate energy in South Africa. Your mode of operation is to keep your operations lithe and nimble thus having the ability to respond rapidly to ever changing market conditions. How exactly is this done? In recent years we have seen new entrants and even existing competitors within various sectors, disrupt each other’s business models. The mining sector has not been immune to these changes.
One can argue that for too long mining companies have held onto a traditional head office model where executive decision making is a highly centralised.
money in raising safety standards and improving the living conditions of their workers. Investments in these areas of a mining operation can have a direct positive impact on production and in the long run benefits everyone. What are Ontario Energy’s key ingredients to unlocking and managing business opportunities in tumultuous political and economic environments? Right now there is broad consensus that we need to reignite economic growth in South Africa. Government, labour and business are rallying around this need and one can certainly see that the there is a positive sentiment developing around the efforts we have put in place to avert a ratings downgrade. That being said, we need to realise that this sentiment will be short lived if we don’t match it with concrete steps aimed at addressing the growth challenges we have.
Investment One can argue that for too long mining companies have held onto a traditional head office model where executive decision making is a highly centralised. There is ample evidence reflecting the need to re-evaluate this approach - particularly in light of the need to focus on growth and the creation of shareholder value – which is important for listed entities. It is our belief that executives must be close to operations to make sure that everyone involved in the operation is focused on the pursuit of maximising efficiencies and controlling costs. The future will show a centralised model in this sector is no longer ideal, companies will be far better off investing
Electricity supply remains a constraint, particularly if we are to invest in infrastructure development, which will be an important component of our economic recovery. As a company we are poised to assist in addressing this challenge, which is an important consideration because we can play an essential role in helping the production and manufacturing sectors create economic value. Political and economic tumult are not uniquely South African, there are potentially big changes sweeping the globe. In this environment, remaining focused on our goal of creating value in terms of shareholder wealth and opportunities for our employees, is going to be very important.
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LEADINGEDGE - Ontario Energy Holdings
It is therefore our responsibility to ensure we manage and lead our company in a way that allows it to constantly create value because this is an important differentiator in uncertain times. How is Ontario Energy not just a mining and exploration company? Ontario has three divisions and our strategy revolves around the short, medium and long-term future of the country. In the short-term our options for energy generation are limited and producing energy from coal is the route to follow. Looking into the future our renewable division is focused on the solar generation of electricity and the storage of energy. Our oil and gas division is working on bringing these commodities into our energy mix on a more sustainable basis in the future. Presently our oil and gas division supplies diesel to thousands of farmers in South Africa making sure that there is strategic reserves during the crucial harvesting periods of the various soft commodities.
in the manufacture of solar photovoltaic and in the cellphone industry for the making of screens. There are powerful synergies that can be explored in our greenfield projects and in the future we will be working towards unlocking these. Vis-à -vis mining resources in Africa, do you think Africa has reached its peak? What more can be done to maximise on mining to make Africa an economic powerhouse? There are still great opportunities in the mining space but to make the most of these we need to do things differently. African economies can benefit from local beneficiation. This is something that has been on the radar for a long time but the progress we have made does not match the continent’s ambitions in this regard. Instead of exporting jobs and associated economic opportunities to other parts of the world, Africa needs to start adding vital production processes to maximise the local economic contribution of mining resources.
The fact that we are three times oversubscribed is an indication that our vision and strategy resonates with the investor community. Can you share some detail about the greenfield projects you are working on? South Africa is one of the world’s top three countries with respect to solar power generation potential. We have around 2500 hours of sunshine per year and this provides us with an important advantage. Our national Integrated Resource Plan seeks to double our electricity capacity from a mixture of energy sources, mainly coal, gas, nuclear and renewables. We are particularly excited by the potential of renewable energy because we think it is a pragmatic and sustainable alternative. We are part of the contractors who are currently building a 1GW solar plant. We already possess significant experience in this field as we are involved in the commercial operation of a 75 MW photovoltaic (PV) plant in the Northern Cape and within the company have the ability to provide products and services for large scale power plants in the PV industry. We are planning to build a similar plants in Zambia and Chile. We are confident of achieving success because we have solutions that have been specifically adapted for African weather and business requirements. Our mine in Mica is producing a 99.99% pure product and we plan to beneficiate it to the level where we make polycrystalline silicon, which is used as a raw material
12
CEO 2016 Vol 15.5
We also need to appreciate that we are at a critical juncture with respect to both skills development and skills loss in the mining sector. Many of our seasoned professionals are currently aged between 55 and 75 years of age. These professional are rapidly exiting the system and we need find mechanisms to retain them as long as possible and transfer the skills they have to a new generation of mining professionals. At Ontario we have put our own systems in place to counter this challenge because we know that one mistake in a mining operation can cost millions of rand. Skilled mining professionals not only provide you with much needed technical competence, they also contribute to ensuring that work is conducted in a safe and responsible manner. What factors are critical to you before venturing into a new market? Financial fundamentals are always important. One has to ask if the investment in a product or service is justified when you consider the risks that are prevalent in a particular market. If we believe we can manage or mitigate certain risks while producing attractive shareholder value it will warrant further investigation. We are focused on the huge potential of the energy sector, so new ventures are weighed against the potential application it has in the sector and its longevity in the marketplace.
CEO 2016 Vol 15.5
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ONPOINT
“Big match” temperament is a pre-requisite for entrepreneurship by Louw Barnardt, MD of Outsourced CFO
As an entrepreneur you have to make big decisions on a daily basis that impact on various aspects of your company. ‘Going with your gut’ is great for intuitive leadership and direction for your business, but when it comes to financial decisionmaking when steering your business, making sure that you have thoroughly thought through all the implications of a big decision greatly increases your chances of it being the right one.
P
utting money into the business and taking money out of your business are, however, not ‘gut feel’ decisions. Taking financial leadership around these two issues will set you apart from the entrepreneurial rat race. Here are some key insights that might help you make the right financial decisions for your business. 1. Funding Your Company: Every business needs funds to operate. Let’s have a look at the ways in which to allocate capital into your business and the considerations to keep in mind.
You can inject funds into your business in three ways: - Dipping into your personal savings - Borrowing money to put into the company - Getting a funding partner
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CEO 2016 Vol 15.5
i) Putting your own savings in When putting in your own money, the main consideration is the expected return on the investment. Because it is your own money, simply leaving it in the bank can earn five or six per cent interest. You can also invest it on the JSE, with a long term expected return of 12-15%. But if you take into account the risk of investing the money in your own business as well as the effort of managing it, entrepreneurs generally have an expected return in excess of 25%. You need to be confident that your business can yield a suitable return. Do you put in the money as equity (share capital) or do you loan it to the company? In almost all cases the answer would be to structure it as a loan. The money you loan to the company can be taken out again without paying any tax thereon, and interest paid is deductible for tax in the company. To take out share capital, you will need to declare a dividend at 15% dividends tax, making this a more expensive exercise. You can also not charge any interest on equity invested.
ONPOINT
When taking on a partner, take the time to set up a detailed Memorandum of Incorporation and shareholders agreement stipulating all the details of how your relationships to the company will work. This can save you a lot of pain when it comes to one of you exiting the company. On the financial side also consider the cost of having them on board – the actual salary or interest to be paid for their involvement with the company, as well as the long term effect of the percentage given up in return for the funds they bring on board. 2. Taking money out of your company Congratulations – you have made a healthy profit! Now the question begs – do I pay the owners bigger salaries, or do I declare dividends? The answer lies in the tax implications. i) Dividends Dividends are currently taxed at 15% of after tax profit. A simple example to illustrate the actual cost: A company makes R100 profit. It pays R28 in companies’ tax (28% companies’ tax rate) and is left with R72 in after tax profit. On this, 15% dividends tax is charged (R72 x 15% = R10,80), leaving the owner with R61,20. The total tax paid on the R100 profit is R38,80, an effective tax rate of 38,8%. ii) Borrowing money for the company The first question here is can the funds be borrowed at a reasonable rate? It is no secret that there is not a long line of lenders offering loans to young companies. When investigating taking out a business loan, consider the following: 1. What securities are required? 2. What are the repayment terms? 3. What are the penalty clauses for early repayment? When a suitable borrower has been found, make sure that the loan is structured as a loan to the company instead of to the owner. This way, interest paid can be deducted for tax purposes. iii) Getting a funding partner When bringing a funding partner on board, the nonfinancial implications are the major considerations. Will they be actively involved in management of the company, or will they just supply funds for a fixed return? Do they have the right personality and skill set for the role they intend on playing?
ii) Salaries The tax rate on salaries is based on the bracket that the receiver falls in. The only tax bracket in which salaries are taxed higher than the above combination of companies and dividends tax (38,8%), is the highest one of 40%. To reach this bracket, you would have to earn R673,101 annually (R56,092 per month). Normal Rates of Tax Payable by Natural Persons for the year ended 28 February 2016
Taxable Income
Rates of Tax
R0 - R174 550
+ 18% of each R1
R174 551 - R272 700
R31 419 + 25% of the amount above R174 550
R272 701 - R377 450
R55 957 + 30% of the amount above R272 700
R377 451 - R528 000
R87 382 + 35% of the amount above R377 450
R528 001 - R673 100
R140 074 + 38% of the amount above R528 000
R673 101 and above
R195 212 + 40% of the amount above R673 100
The conclusion that can be drawn from this is that it is cheaper for tax purposes to increase owner salaries up to a point where they earn R56,092 per month or more, than it is to pay out after tax profit as dividends.
CEO 2016 Vol 15.5
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Joburg is carrying forward the legacy of 1976 Forty years in the history of a nation is a short period. This is especially true when the events you recollect after four decades had such a profound, irreversible impact on the course of history. In South Africa there were a number of such seminal events in the past 11 decades. •
The decision by the newly formed Union of South Africa not to include the black African majority in its political settlement with Britain
•
The subsequent formation of the African National Congress.
•
The adoption of the Freedom Charter in 1955.
•
The Treason Trials and Rivonia Trial that sent our top leadership to prison or into exile.
•
The eventual democratic transition of 1994 and the introduction of democratic local governance over the next decade.
But few events could rival the 1976 Soweto Uprising in its magnitude and impact on the direction of an entire country. What was perceived by the government of the day to be localised resistance against the use of Afrikaans as a medium of instruction in schools – turned out to be the expression of a much wider, more fundamental resistance against an entire system that denied the majority of South Africans the right to be free and equal citizens in the land of their birth. 1976 was a pivotal year in our history. It galvanised the youth of that time to demonstrate their rejection of the regime in the most public way possible at the time – by taking to the streets of Soweto. It inspired the next generation – and the following one – to never retreat against oppression and to continue the fight till the entire country and all its citizens were liberated.
CITY OF FIRSTS
responsibility to continue this legacy in our actions and our initiatives. As a municipality, we have taken conscious decisions that we can best honour this legacy by investing in the future of the current generation. Unlike many doomsayers the City of Johannesburg does not see its youth as part of “a lost generation.” Where others see “problems” – Joburg sees “opportunities.” Where others voice concern – Joburg raises its voice to mobilise the youth. Where others step back – we step forward and take action. An example of our pro-active approach can be found in the Vulindlel’ eJozi programme. As the name indicates it is opening doors to opportunity for many young Joburgers who find themselves exiting the secondary education system without the requisite skills to either continue their studies or find meaningful employment. So we are offering young people the necessary training and support to re-write their matric and get higher marks in critical subjects that are required for entering the job market. We focus on vocational training and the acquisition of skills in the ICT environment. And we then partner with the private sector to identify job opportunities and match their skills needs with the young people who have been placed on the Joburg database. Within the first year after its launch Vulindlel’ eJozi has already registered close on 130 000 young people and is the fastest-growing youth development programme of its kind in South Africa.
In that sense we are all children of 1976.
Closely connected to this is our partnership with some of the world’s top tech giants to make educational material available online through the system of Massive Online Open Universities – or MOOVs. Joburg’s prudent investment in high-speed broadband fibre has, thus, not only brought material benefits to large and small business who have access to fast e-connections – but also to thousands of young people who can now walk into public libraries and community centres to listen to lectures, download study material and acquire internationally-recognised qualifications in a growing number of fields.
Soweto – and greater Johannesburg – are the two geographical places most closely associated with the events of 1976. We carry this historical identification with pride. But we are equally conscious of our
These – and other Joburg initiatives – are especially close to our hearts because they offer us a direct link back to June 1976 and our fortieth commemoration of these events. Access to the digital environment has become
This generation currently find itself in leadership positions – not only in national and local government, but also as CEOs or senior executives in business, as thought-leaders in the media, as the standard bearers of civil society in churches and community organisations.
JOBURG - A WORLD CLASS AFRICAN CITY
as much a fundamental human right in 2016, as access to proper high school education was 40 years ago – a reality now also recognised by the United Nations.
- In new ways of delivering basic services through Jozi@ Work which sees communities as partners rather than recipients of services;
Education remains at the front and centre of our struggle and the children of 1976 now have the opportunity to pass this legacy to a next generation.
- In the Corridors of Freedom which seek to create a more cohesive Jozi through inclusive spatial development;
In recent months two of the most prominent ratings agencies – Moody’s and Fitch – announced their decisions to maintain and upgrade the City of Johannesburg’s investment ratings. The decisions were, no doubt, made in recognition of our record of prudent financial management and the high standards of corporate governance we apply.
- In the city’s record budget of close on R55-billion – double the size of the allocations when the current administration took office five years ago;
But, their reasoning goes beyond the here and the now. It looks at Johannesburg and it sees a City that is truly investing in its future. This is evidenced - In new infrastructure through the R100-billion allocation over a ten year period;
- In investment in skills development and training through programmes such as Vulindlel’ eJozi and MOOVs that offer hope and opportunity for the next generation. There is a new economic democracy on the rise in Johannesburg. We are well and truly on our way to become the ‘world-class African City of the future. The legacy of Soweto 1976 is carried forward in a united and growing Johannesburg of 2016.
CITY OF FIRSTS
Yet Another Upgrade This time from Moody’s Ratings Agency Moody's has upgraded Joburg both on the Global Scale Rating and the National Scale Rating by four notches. We moved from Ba3 to Baa2 and from A2 to Aa1 respectively. This great move follows a recent upgrade by Fitch Ratings Agency. From a City known for its prudent financial management, Joburg municipality was adjudged worthy of an upgrade in this latest fiscal management reviews by Moody's. We achieved this despite an economic slowdown in the last three years. We are a City least dependent on national government grants. Yet, last year, we pushed ourselves to become the largest per capita infrastructure spender in government, after national government itself. "The City maintained its good liquidity position despite funding 30% of (its R100 billion) capital expenditure from own sources".
Well, it's not us. It's Moody's! Executive Mayor Parks Tau www.joburg.org.za @CityofJoburgZA CityofJohannesburg
STATEYOURCASE - Dikunyo Resources
A Friend of the
Learning
Institutions by Andrew Ngozo
In a world that is increasingly driven by the need to learn on the go, anywhere, companies can ill afford to keep sending employees or stakeholders [away] to long refresher courses for extended periods of time lest they risk losing revenue. Faced with this quagmire? Enter Perfecting Educational Output (Pty) Ltd (PEO) a subsidiary company of Nano Solutions and Technologies, a South African black owned company that provides connectivity and platforms for e-learning solely because they understand the value of being able to study or better yourself anywhere, anytime at your own pace.
A
ccording to Sharon Tshabalala, the executive chairperson and chief executive officer of Nano Solutions and Technologies, PEO specialises in developing and teaching language literacy courses. She explains: “These are accessed on-line through a software application known as the Learning Management System (LMS). To date, with the help of a reputable institution we have developed language literacy courses for all the 11 South African official languages, three foreign African languages, one European language and one Asian language.” A New but Popular Phenomenon Because this is [literally] a new phenomenon in South Africa, the course was launched and piloted in two local languages namely isiZulu and Setswana but the company, also known as PEO Online, will be activating all the other languages on offer towards the end of the year or in early 2017. Tshabalala states that their LMS’s main functionality is online Course Content Delivery, Student Registration and Administration, Study Progress Monitoring, Skills Gap Analysis, Record Keeping and Reporting. “LMSs are becoming extremely popular with colleges and universities for their effectiveness in augmenting campus courses by delivering online courses. We, however, cannot turn a blind eye on the growing trend of our children being digitally active,” she elaborates adding that it is always advisable to capture the youth in their ‘playground’ which is the cyberspace.
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Sharon Tshabalala, Executive Chair & CEO, Nano Solutions & Technology, the parent company of PEO Online
Since PEO Online is not an educational institution but a reputable provider of an e-learning platform, Tshabalala maintains that they are uncompromisingly entering into partnerships with various institutions to make their courses accessible to all people despite their locations. “We regard our platform as a friend of the learning institutions and don’t see any of them as our competition at all. We believe that we can work together with one another in order to perfect the country’s educational output while ensuring that South Africa has the best of the next generation of problem solvers,” she notes. Tshabalala concludes thus: “We are also partners with various organisations. Our partners are quite unique in the sense that they are businesses who recognise the value of continuously training their employees, clients and various stakeholders about their products and services or even internal controls and compliances. However they are faced with the inconvenience of taking them away from their jobs and affecting their work productivity. Our platform allows the flexibility to learn at one’s pace, own convenience and measure their progress along the way by taking assessments designed to suit various audiences.”
Perfecting Educational Output (PEO)
W hy sacrifice
s t a f f training and productivity... While you can achieve the best of both.
Learning Management S y s t e m s , Perfect Educational Output (PEO) Making it easier for corporate to continue training its staff with minimal disruption on their work
Visit us: www.peoonline.net for more information
THIS ADVERT IS NOT ABOUT THE PLANTS. Well…it is. But mainly it’s about our dedicated fieldworkers who work tirelessly to protect southern Africa’s environmental surroundings and who need your support. Visit www.ewt.org.za to find out how you can help to protect another precious resource – our people.
in Africa Procurement Billions Lost In Value Sustainability Business Moving into the realm of mission critical
Mining Mechanisation is urgent
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Don’t Let Your Merchandise out Of Your Sight,
Even When It’s Left the
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Warehouse by Laurence Smith, Executive Graphic Images Technologies
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Until recently, warehouses were seen as a separate entity in the overall supply chain; merely a repository for merchandise storage before it was moved onto its final destination. Now retailers and other businesses have realised that by integrating the warehouse and freight transport into the greater supply chain, they can reap the benefits of enhanced inventory management, better loss prevention and shrinkage protection.
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hen it comes to transporting merchandise between warehouse and retail destination, merely tracking the movement of trucks is no longer enough, and companies are having to rely on armed escorts and the implementation of smarter security technology to get their freight to its destination. Despite additional security measures, there are still syndicates that outsmart these technologies and additional measures while in transit. In addition to merchandise being at risk during transport, these goods are also vulnerable in the warehouses while waiting for collection. Securing the goods inside and outside the warehouse The main risks in warehousing and freight transport are theft, loss and mishandled goods. However, the transportation of goods continues to be one of the most critical areas of vulnerability. While systems can be placed both in the vehicle and the warehouse exit and entry points, their effectiveness depends on the implementation and strict controlling measures to ensure the integrity of the system. Inside the warehouse environment security can be enhanced through the use of Ultra-High Definition (UHD or ‘4K’) IP cameras, which offer better resolution and more detail. Because of the high video resolution of these 4k cameras, fewer of them are required to monitor a larger area, which means fewer cameras to manage, fewer network points and less of a drain on bandwidth and storage. This is largely due to the fact that these cameras are capable of adaptive video streaming, which allows for recording of the video at 4k resolution but allows for viewing at resolutions that meet the viewer’s requirements. These cameras have even evolved to the point where it’s now possible to use them for visual monitoring and verification of merchandise. For example, in a warehouse where goods are picked from the shelves and placed in a cage ready
for transport collection, by using a 4K camera, an operator can visually ascertain whether the correct number of crates or boxes were loaded from the warehouse. Keep your eyes on the goods at all times with remote live CCTV monitoring Using these 4K cameras and the associated video recorder management applications it is possible to monitor the merchandise all the way from the warehouse, until it reaches its end destination. Each situation is different but, for example, by utilising closed body trucks the freight is not as exposed to the risk of theft. A closed body truck can be monitored, using a mobile DVR and cameras which can monitor what is going on inside the truck, as well as provide visual verification that the correct goods were loaded into and off the truck. Such a mobile video recording and transmission system also ensures that the load is secure during its journey as an alarm is sent to the control centre with video verification in the event that the load bay door is opened. Once the goods have reached their destination, footage from the mobile DVR’s cameras could be used to conduct an external visual inspection to make sure that the load doors are still sealed (this verifies integrity of load). A main gate interlocking system could also be implemented here whereby access is given to the control centre operator (not the guard at the gate) and the driver vehicle and guard would be recorded as they enter and exit the premises. While this can be time consuming, it enables the goods to be tracked along every meter of the journey with visual verification of any intrusion or collusion between parties. Where bandwidth availability is an issue, the same technology that is used for cash-in-transit vans could also have application in freight transport. Such a system is effective in its simplicity as it enables remote monitoring of the vehicle making use of GSM networks with bandwidth requirements as low as 8kpbs. Using cellular and wireless technology, live video is streamed (and recorded) from vehicles to a remote control centre. Despite the fact that warehouse and freight security has long been overlooked, it’s undeniably important to focus more attention on the integrity of the supply chain at this point. By securing the goods in transport and storage in a simple, visual way, retailers will be able to see the positive impact on security, in the elimination of theft, loss and damage of valuable goods.
Despite additional security measures, there are still syndicates that outsmart these technologies and additional measures while in transit. CEO 2016 Vol 15.5
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Customer service the new strategic
differentiator
Consumers have never been smarter than they are today. They have more information to help them make purchasing decisions than ever before and they have become accustomed to, and expect, regular interaction with companies.
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echnology has enabled people to connect with the world and this has shifted the power base from the companies to customers,” says Natalie Maroun, Managing Director of the LRMG Management Group. “In the past if customers had a bad experience their ability to ‘tell-itforward’ was only as powerful as the amount of people they knew. Today social media platforms create an environment for people to talk anywhere, anytime.
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“Even if your company has the greatest PR and marketing, these still only put forward the brand promise. The real moment of truth lies in how customers experience your brand promise and how they talk-it- forward,” Maroun explains. Companies world-wide are beginning to understand the changes in consumer behaviour. Customer service interactions are increasingly seen as opportunities for engaging more with customers to gain better customer insights and leverage service propositions for revenue growth. Maroun says that even in an emerging market like South Africa, companies are starting to make this shift. “The SA companies we work with are starting to see customer service not only as important enough to need a defined strategy, they are also mobilising their organisations around these strategies.
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“This did not happen five years ago,” she stresses. “Although there were customer service strategies in the past, these, like the company’s brand promise and PR and marketing strategies, were isolated from the business operation. What we are seeing now is the need and wisdom of having a coherent strategy that integrates all of these components. In fact, a defined customer service strategy in an integrated environment is the new agenda for companies to successfully win and retain customers,” says Maroun. Looking at key trends that are shaping this new integrated customer service agenda, Maroun highlights the following:
A defined customer service strategy in an integrated environment is the new agenda for companies to successfully win and retain customers. Leverage service for revenue growth Best customer service practices need regular engagement with the customer and take advantage of every customer contact. In the past, customer service focused on dealing with, closing and moving on to the next customer as quickly as possible. “Today’s customers want service beyond the first interaction and we have found that there is a cause and effect relationship between market share, revenue growth and profit, and customer loyalty.” Customer loyalty, she explains, is achieved by creating total customer satisfaction and this is driven by three variables: Firstly the value created for and experienced by the customer which, if successful, leads to the second variable – customers who are brand advocates or brand evangelists, as she puts it. The last variable in the customer satisfaction quest is the capability of leaders to lead a customer-centric strategy. “When you have all three variables in line you have customer loyalty, and this is the Holy Grail in the equation. This is what drives revenue and growth and therefore market share.” Innovate the customer interface: “Customer service has actually gone backwards in areas where we have taken away human interaction for the sake of expedience. She uses the example of telephonic auto queues that lead customers through a maze of options only to find, as a last resort, the option of speaking to a human. “Customer self-service and self-resolution are critical, but they need to be easy and responsive and the technology
should not cut out human interaction completely. There still needs be a high ‘touch’ element in order to connect with the customer,” says Maroun. Integrate customer touch points This leads to the issue of touch points in the value chain. Companies need to take advantage of every point of customer contact and, in order to maximise the value of every interaction, distinct silos of customer touch points need to be abolished. “The biggest frustration for customers is inconsistencies between departments. Customers are not interested in how organisations are run, they are interested in their experience. The ahead-of-thegame players are the businesses who are integrating the management of all contact channels”. Drive customer-centricity Customer service relies on one of the largest untapped resources companies have – customer feedback and proprietary customer data, says Maroun. “Customer data is the key to everything however organisations often have so much data that it becomes difficult to discern what is important and what is not. “Organisations need to realise it is not about the amount of data, but the critical and specific data that tells them about their customers’ experience. The survey rhythm often gets it wrong because it gives no feedback to the customer. Feedback is part of harmonising the value chain, the customer needs to feel heard and to do that there needs to be some form of response or action taken following a survey.” Another recommendation from Maroun is to employ or empower a strong chief service officer—someone with advanced strategic capabilities who works closely with peers in marketing, sales, and technology. “These executives can establish a cross-functional, end-to-end perspective on customer processes playing a central coordinating role as the ‘voice of the customer’,” she adds. Mastering the basics of customer service remains the key for customer service organisations that are struggling with poor service and inefficient processes. The challenge lies in putting these changes in place while simultaneously maintaining activities that will truly create value for the organisation, Maroun points out. “Performance is no longer measured solely by cost-toserve. Companies need to ask whether their operation and value chain represent the sentiment of their business. And of course none of this is possible or practical unless customer service is an integral part of an organisation’s value chain,” she concludes.
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Women in Engineering the Leadership Challenge by Thandiwe Nkambule, Pr Eng; Electrical and Electric Engineering
Women are globally underrepresented in leadership positions. In South Africa, if one looks at the statistics of professional engineers registered with the Engineering Council of South Africa (ECSA) and the number of engineering graduates from different institutions of higher learning, men are overrepresented. This has an impact on the number of women that are available and will be available in the near future to take up leadership roles in the engineering profession in our country.
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omen are also underrepresented in leadership positions of the JSE-listed companies and state-owned enterprises in general. According to the Business Women’s Association of South Africa (BWASA) Women in Leadership census of 2012, although women constitute more than 50% of the population, they make up only 44% of the working population in South Africa. They constitute 21% of all executive managers, 17.1% of all directors, only 3.6 % of all CEOs; and 5.5 % of all chairpersons of listed companies and state-owned enterprises in South Africa.
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Over the past 11 years I have seen increasingly more women enter the field of engineering than ever before. It is encouraging that many companies are embracing transformation at a management level; however the pace is still gradual. Women are making a lot more effort to accommodate other women in the workplace and this includes hiring more women and promoting them into management positions. Unfortunately, there are some companies, albeit only a few, where men occupy the director and executive manager positions, with no women represented at senior levels, thus making it harder for women to move up the corporate ladder.
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At the same time, government is trying to push the women empowerment agenda, although this is not being heard by everyone. According to Nkambule from ECSA, ECSA can create a platform where on the agenda is the issue of women advancement in the profession and how rapid change in this regard can be encouraged and achieved. In 2008, the Department of Labour published a report on engineering professionals which showed that in 1997 women constituted 4.44% of managers with engineering qualifications. This number grew to 14.47% by 2005. This positive trend was partially due to more countries passing legislation that is driving
the transformation agenda, as well as efforts undertaken by various parties to ensure that more doors are opened to women and that the glass ceiling is finally broken. Thankfully, South Africa does not fare badly when compared to other countries regarding women in leadership positions, and particularly engineering. The global trend is positive, with a large number of women climbing higher up the corporate ladder. In a study undertaken by ECSA last year in the 31 March 2013 financial year, it was revealed that more than 10% of the total number of engineers registered with ECSA are women. ECSA also revealed that the number of female candidate engineering professionals had risen by 9% and that the number of female professional engineers is currently sitting on 4%. When I started my engineering career, it was with AngloPlat as an intern, where I spent a year learning the ropes, we were the initial group of women to work underground at that time. However the experience gained from that was unimaginable. The one incident that stands out for me was when we were asked to carry 25kg of cement to the other side of the mine. For the men, this was an easy task; however for us women it was extremely difficult to carry 25kg! But we had to come up with a plan to overcome this obstacle and that is how I have approached my life going forward – always find ways to overcome challenges no matter what the situation is. Throughout the years I have noticed that young people that are entering this profession do not understand what the profession is about. They are not aware of the different disciplines that are part of the profession, especially those that come from disadvantaged backgrounds. It is our duty to educate the youth about making informed decisions about the career path they chose. Mentoring young and upcoming engineers is important as it also helps to move candidate engineers to positions of professional engineers much faster without losing them in the future because of misinformed career choices. It also helps to ensure that they have an informed person to talk to about their future plans. For me, engineers like Allison Lawless and Ayanda Noah have made my decision to continue striving to make a difference as an engineer, that much easier. These are women who have been in the field for years and who have proven that women are as capable as their male counterparts. In conclusion, I believe that women can add enormous value to the profession by holding leadership positions. This is something that can change over time with companies and government working together to push the same agenda, to create an environment that is conducive for women to become leaders.
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Mining Mechanisation is
Urgent
South African mining must mechanise and research has a crucial role to play in helping industry to get there. The country urgently needs to build a new cohort of mining researchers and there is no better place to do it than the Wits School of Mining Engineering, the largest English-speaking mining school in the world, which houses the Centre for Mechanised Mining Systems (CMMS).
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his is according to Dr Declan Vogt, the newly appointed Director of the CMMS, who says that South Africa has allowed some segments of its mining industry to deteriorate. “We have seen a tremendous drop in productivity and that is making us uncompetitive. We are now under enormous pressure to become more productive.” At the same time, there has been a decline in the quality and quantity of mining research, beginning in the 1990s when mining companies began to experience economic pressure due to the drop in the gold price and research became seen as an unnecessary overhead. In addition, political transformation meant that companies could invest offshore, in countries with easily accessible reserves, and did not need to conduct the research necessary to drill for deeper deposits in South Africa. As a result, there is an urgent need for mining research in South Africa, particularly around mechanisation, and Vogt sees the CMMS as the starting place for where mining research in South Africa is set to go. “Now is the time and this is the place,” he says. He says that in addition to conducting research, the CMMS has an important role to play in training middle managers. This is because, whereas senior executives of mining companies understand the benefits of mechanisation, and operators
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undergo training that can be tailored towards mechanisation, the middle managers are used to working on sites with large numbers of people rather than capital intensive machinery and can find it difficult to adapt. This is one of the reasons why the CMMS is taking a systems approach. They recognise that most attempts to introduce mechanised mining have been systems failures and that it is important to take into account human behaviour when introducing changes. Vogt says that one of his biggest challenges as the newly appointed Director of the CMMS will be to ensure that the Centre demonstrates its value and attracts more funding by meeting the needs of its sponsors, which include mining powerhouses such as Anglo American, Anglo Platinum and Impala Platinum. “We have got to sell them on looking at systems and redesigning operations. At the moment they are redesigning manual processes, and this does have value, but where they will really see benefits is if they take a clean sheet,” says Vogt. His chances of realising the mechanised mining vision are good since most major mining companies announced at the beginning of the year that the future was mechanisation and affirmed their commitment to the process. “They are really getting the urgency,” he says.
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Procurement in Africa: Billions lost in value
The impact of ineffective procurement in Africa is estimated at a staggering USD 31.5 billion - or USD 24.9 billion for Sub-Saharan Africa alone - in terms of value leakage. With strong growth aspirations in infrastructure, finance, energy, mining and other sectors, the role of procurement in an organisation is becoming increasingly strategic says KPMG.
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owever, according to KPMG’s Power of Procurement 2.0 Survey 73% of C-level executives do not believe procurement adds real value. Dr Dinesh Kumar, Associate Director at KPMG and regional country leader for supply chain and procurement practices says; “This is a significant threat as today companies are still focused on traditional cost optimisation initiatives, rather than value-add. Procurement professionals must start to view the business within which they procure as a key broader cost-driver for the company. There are six key business challenges that can impact procurement, but can also be aided if procurement is done correctly, including; cost management, compliance, transparency, efficiency, global integration and people.” The contradictory opinion is possibly as a result of procurement organisations that are struggling with basic issues on the delivery front such as low use of technology, inadequate skills and non-compliance. These issues are more evident in the public sector, though also still exist to different extremities in the private sector. Taking a deeper look at each of these three elements individually; Low use of technology Procurement technologies have evolved significantly in the last 20 years. What started out with E-procurement has evolved into a sophisticated technology landscape that enables suppliers and customers to partner strategically. Comments Kumar: “There is no doubt that the use of appropriate systems and technology will be a competitive differentiator. However, the lack of executive support and insufficient training are some of the major reasons why African organisations struggle to adopt technology and
achieve operational efficiency. For instance, 56% of the organisations do not use tracking tools, and approximately 66% do not track supplier performance.” Inadequate Skills There is lack of appropriate procurement skills in Africa. Some key skills such as analytics are not adequately incorporated in educational programmes and 51% of organisations believe their lack of qualified personnel poses a ‘moderate to severe’ risk. One of the reasons for this is that procurement is not seen as the career of choice. Compliance Foreign investments are increasing in Africa. To realise return on these investments, one of the major focus areas is on governance, risk and compliance – and decreasing uncertainty. Contributing factors to this uncertainty include organisations being involved in irregular expenditure, fraudulent activities and corruption – and 40% of the organisations are unable to monitor procurement compliance. “By combining global and African people, best practices, content and tools – towards achieving the best strategic results for our clients - the PCoE has designed our delivery model for rapid and thorough deployment of solutions to African organisations to understand their core issues and to create a sustainable model for value creation and realisation. There is, however, still a long road for procurement organisations, in both public and private sector, to travel to achieve significant and sustainable maturity and curtail the value leakage, and through the PCoE initiative, we look forward to assisting African organisations on this journey,” concludes Kumar.
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Office Design Trends for
2016
As we approach the end of the year amidst fears of a global economic slowdown, businesses are likely to have one word top of mind: costs. The one place that affects a company’s two biggest costs, people and real estate, is the office. So what do we have to look forward to for office design in 2016? Spending Wisely The good news is 2016 won’t be about cutting costs but spending money wisely. In the past office design projects seemed to take the form of either extreme cost cutting or extreme spending. After years of trying to replicate the Google office, common sense is finally prevailing over quirky, underutilised, budget-consuming white elephants. Instead, we are witnessing the making of a far more practical ‘grown up’ office, says Lucy le Roux, marketing manager for interior design firm Paragon Interiors. “While keeping costs low is still important, CEO’s are placing a greater emphasis on the value of staff. Cost-effective shared communal spaces for employees feature high on new design spaces. This does not necessarily mean installing a ping pong table in the middle of an open plan area, but creating spaces that are designed with multiple activities in mind making work places more fun and interactive.” “For example, a canteen that incorporates long tables for informal meetings and project discussions with hot desking for mobile workers and easy access to power points and wireless. These spaces will be designed near outdoor function areas and boardrooms to allow for events and staff briefing sessions. The canteen for the 1 hour lunch break is a thing of the past,” says le Roux. When implementing these types of spaces importance will be placed on durable yet inexpensive finishes. This means specifying local equivalents of imported base finishes, such as floor and ceiling finishes, to assist with keeping the cost of the project low. Having plush cut-pile
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carpeting in a general office space is no longer deemed a clever use of the material, and is better suited to client interface areas instead, where the cost of this finish is justified. Budgets will need to be stretched and there will be more creative use of every-day finishes and furniture. Smarter Open Plan “Whilst the emphasis on open plan will remain, it will be recognised that this will not suit all job functions and that the roll-out of seas of desks is not always conducive to cost savings and productivity. Much more thought will go into the needs of the individual and the tasks they perform. This will contribute to a combination of individual and shared offices,” says Jenny Seddon, design director at Paragon Interiors. Collaborating remains important but is not haphazard as it was before. Design aims to meet off-the-cuff meeting requirements in a comfortable, yet practical area, in close proximity. There is an understanding that the open plan needs to be a space where people can perform tasks, without distraction, but also with staff having easier access to one another. There is a new respect for colleagues and a renewed understanding and adherence to office etiquette. “Areas for private phone calls are vital as are focus rooms where staff have the chance to break from the office hubbub to focus on a task that needs their full concentration. These rooms have more than one function. They will be slightly larger where small teams will work for short periods, such as brainstorming,” says Seddon.
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Inspired Design Though the notion of the over-creative Google office has taken a back seat, office design still requires a sense of originality. Staff retention is a growing focus with companies looking to use the working environment as a way to attract and retain good employees. Accessories such as interesting lighting and wall coverings or the clever use of typography on surfaces will be key to personalising individual companies. Bespoke graphics and methods of custom designing, weaving, printing, laser cutting and 3D modelling are all on the rise and are becoming more affordable and popular. “Sourcing accessories, furniture and art from local designers is also growing in popularity. South African artisans and designers are designing for a cutting edge and contemporary market, using the most modern methods of assembling, with contemporary lines and materials. These locally produced items are ideal for contextualising the office space as a proudly South African company or division,” says Ms Seddon. As the modern employer-employee relationship shifts to one of partnership, office design is adapting to also allow staff more expression of their own identity at work. The use of white boards, chalk boards and pin boards are increasingly common to provide space for staff members to have an outlet for expressing their ideas. Finding ways to make staff more productive and comfortable is also becoming increasingly important. As a result office design is moving toward a homelier look and feel, with furnishings resembling those of a residential setting rather than the hard, serious ‘fit for purpose’ office. Fabrics in modern day corporate design are steering away from the true colour ways of corporate identities, and instead make way for colours that evoke the ‘happy transmitters’ in our brains. Softer finishes, edges and lines create environments that are inviting and comforting for the office worker. Furnishings and facilities such as sofas in pause areas and plug sets at alternate work destinations allow us to ‘feel at home’ while at the office.
Having plush cut-pile carpeting in a general office space is no longer deemed a clever use of the material, and is better suited to client interface areas instead. Bringing the outside in Colours will be influenced by the sea - Mediterranean blues, turquoises, through to olive greens, palm greens, dusty mint and touches of orange and rust with soft, serene neutrals, pale pinks, flamingo pink and flesh coloured tones. There will still be neutral greys and charcoals and a bold mixing of strong colours with soft pastels. Seddon says materials such as timbers and metals are still in line with the trends – keeping the finishes natural and exposed as opposed to hidden behind a thick layer of paint, stain or lacquer. This allows staff to experience and enjoy the material as nature intended, with the warmth or coolness that it embodies. “Materials will include clouded and tinted glass, gauzy fabrics as well as chalky florals and textures like rough suede and leather. There will be a continuation of the use and combination of warm metallic materials, such as burnished gold and bronze. We will also see wicker or rattan returning to indoor areas, accompanied by rustic woods and the sustained use of bamboo and creative recycling will gain in popularity.” “The trend is to move away from the boring and expected striped chenille or the dotty equivalent and introduce solid colour blocking in interesting textures and weaves. The 1980’s polyester-based fabrics, whilst still hardy and durable, are being left behind to allow for more natural fabrics such as 100% wools, which are able to be upholstered along the softer curved lines of the inviting modern day office,” says Seddon.
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Managing Energy Costs a Key Factor in
Business Sustainability
£8.6-million UK government injection to support energy efficiency improvement in SA’s private sector
The NERSA-approved hikes in energy costs between 1 April 2013 and 31 March 2018 will represent at least a 47% increase in the electricity costs for businesses over the five year period, with an additional increase due in 2015 following the recent approval of the regulatory clearing account for Eskom. Managing business sustainability on the back of these annual electricity tariff increases along with the current threats to energy security and the fluctuating fuel price is a critical balancing act for South African companies.
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espite the considerable potential to reduce operational costs through the more efficient management of energy, many companies are still not proactively identifying opportunities that will immediately enhance energy efficiency. “Many low hanging fruits that would alleviate the pressure of energy price hikes and supply constraints while redirecting the savings back into the business for deployment elsewhere are being left hanging on the tree,” explains Val Geen, Head of Energy at the National Business Initiative (NBI) which is responsible for the implementation of the Private Sector Energy Efficiency programme (PSEE). In June 2013, the NBI was awarded £8.6-million (more than R150-million) by the UK Government through its Department for International Development (DFID) to implement the PSEE as a countrywide programme of support for energy efficiency improvement in the private sector. The programme is supported by the South African Department of Energy and technical support is provided by the Carbon Trust, leveraging its experience of similar programmes in the UK. The NBI is a voluntary coalition of
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South African and multinational companies committed to working towards sustainable growth and development in South Africa. The subsidised services offered by the PSEE are aimed at assisting companies of all sizes – from small right through to large entities - to improve energy efficiency, save costs and enhance long-term business competitiveness and sustainability. These services are provided by experienced third-party consultancies with competencies in energy strategy, green buildings, HVAC, pumps, motors, lighting, compressed air and industrial processes, contracted by the PSEE and overseen by a team of professional programme managers and account managers. The following PSEE services are available to qualifying companies: 2500 small companies with energy spend of less than R750 000 p.a. will be able to access advice offered by technical experts over a toll free phone line, referrals to tools, publications and other relevant information on the PSEE website, and attendance of workshops in the various
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regions. There is no cost for these services as they are fully subsidised through the PSEE. Over 1000 medium-size companies with annual energy spend between R750 000 and R45 million will be assisted with fully subsidised direct support including site surveys, energy audits and face-to-face engagement to identify energy saving opportunities and develop an implementation plan. Additional possibilities include follow-up support to prioritise and develop a business case for the implementation of energy efficiency projects, and exploring the finance and technology options available. The costs for these services are 100% subsidised through the PSEE. Around 60 large companies with annual energy spend of more than R45-million per annum will be supported through 60% subsidised, holistic strategic energy management engagements to help improve operational energy efficiency and assist in the development of a comprehensive energy and carbon strategy. In addition, specific programmes of support can be tailored in accordance with organisational requirements. This support will help prepare companies for future mandatory reporting requirements from government such as the submission of energy management plans and demonstrating implementation against the energy saving opportunities identified. “More than 200 companies have already signed up for the PSEE’s services. Interestingly, even though some
of the participating companies have had a significant focus on energy efficiency over a number of years prior to signing up with the PSEE, further saving opportunities have been identified through their participation in the PSEE programme,” says Geen. Industry bodies and professional associations have also taken to engaging their membership base to participate in the programme. “We are also very excited by the growing interest from industry associations to see this programme as a value add to their members,” says Geen. The likes of the Chemical and Allied Industries’ Association (CAIA), Plastics South Africa, the South African Chamber of Business (SACCI), and the Steel and Engineering Industries Federation of South Africa (SEIFSA), amongst others, have engaged their members to participate in the programme. “Energy audits at two medium-sized SEIFSA member companies have already identified immediate savings of at least R86 000 per annum without any capital investment whatsoever at one company, while at the second a once-off capital investment of R1.3 million will translate into ongoing annual savings of at least R720 000, recouping the outlay in less than two years, where after its significant savings each and every year could be ploughed straight back to the bottom line,” explains Geen. Given the industry’s energy intensive nature it makes perfect sense to find ways of using energy more efficiently and cost effectively. A number of large companies and government entities participating in the programme are partnering with the NBI in introducing and facilitating the uptake of the PSEE through their supply chains and customers. These include Woolworths, eThekwini municipality, First Rand Bank, Eskom, Absa and Mercantile Bank, with more coming on board soon. As part of this initiative, Woolworths has already engaged 113 of its own suppliers to participate in energy audits, fully paid for by the PSEE programme. Achieving greater levels of energy efficiency is a vital driver of business and indeed South Africa’s economy, but it does not need to be a cumbersome or burdensome undertaking. With rapidly escalating energy costs and security of supply challenges, it should be seen as an opportunity and treated as a company-wide initiative that will provide longterm financial and reputational benefits. It starts with the CEO and top leadership committing to energy efficiency and its importance to business profitability and sustainability as well as the environment. “By coming on board with the PSEE, participating companies will have access to subsidised, professional consultants to assist with the establishment of energy consumption baselines, implementation plans, data gathering and benchmarking against global best practices, that will combine to create a sustainable business environment that places energy efficiency at its core, and most crucially, much of which can be achieved without any capital investment upfront,” concludes Geen.
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what’sHOTorNOT
As our a alw ys ld hou views s nder nu be take ent advisem
We share brief perspectives with you on items that we think are worthy of your consideration.
*some of the images were obtained from freepic.com
Gen?
It was bound to happen, the emergence of a new generation under our noses. Welcome to Gen C – the connected people. First the good news, there is no age discrimination in this group. The bad news? Well, you could find yourself lumped in with people who care deeply about creation, curation, connection, and community. Sound a little geeky to you? Don’t worry it scares us too.
So True
According to Gartner many CEOs still fail to discriminate between e-business (electronic sales channels and marketing) and true digital business — which blurs the boundaries between the physical and digital worlds, resulting in the transformation of products and services. We concur completely, there is still much that needs to be done and companies that don’t get a move on will expire.
Banking Like Never Before According to the International Monetary Fund in little over a decade the number of ATMs worldwide has climbed from just over 15 per 100 000 adults to more than 40 in 2015. Cashless society? We don’t think so.
Directions Please
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It is kind of hard to believe that when venture capitalist Ed Tuck was trying to raise funds for Magellan way back in the 1980s, no one really believed in the power of the GPS and the transformation it would bring. Today it is almost ubiquitous and available on all sorts of gadgets. It’s a little bizarre then to read the results of an Australian survey that suggests Gen Y (the tech generation) drivers are the most likely to get lost while driving.
Contact Details Tel: 011 018 5500 Fax: 011 018 5587 Website: www.nda.org.za
Teambuilding by Lisa Meier
for the Start-Up
Everything worth doing requires work. And every worthwhile startup is time-consuming. Although you may be the one to envision its concept, you may lack the required skills to launch every aspect of your new venture and morph it into a robust company. By dividing the work among trusted partners with the necessary skill sets, you will allow yourself to gain insightful ideas off your colleagues and accomplish much more than you could by yourself.
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ome people, including many investors, think that the ideal start up team has a coder, a salesperson, a designer, and an accountant. The coder builds the site, the salesperson brings in the business, the designer makes things visually appealing to consumers, and the accountant keeps the bills paid and hopefully, the lights on. Even if you are capable of wearing every hat in your company, there is not enough time in the day for you to wear them all at once and get your company off the ground in short order. Trust me, I’ve put this one to the test. So, if you can’t convince someone to come on board and get behind your idea and fill one or more of these roles, what should you do? Outsource and network I don’t know about you, but the idea of outsourcing always sounded expensive and hiring a company to take on one or more roles that I was unable to do myself never seemed within my budget. That said, I’ve tried to keep an open mind and looked into outsourcing anyway. Apparently, there’s a right way and a wrong way, and you can learn from my experience. Outsourcing the Wrong Way Before working on my current software platform, I interviewed several custom web development firms (whom, for obvious reasons, I’ll call “the dudes”) who provided me with quotes that I knew were insanely overpriced. I felt like the housewife in a 1950’s film trying to buy a new car from the salesman who thinks she’s a simpleminded little lady. While I attempted to inform the dudes that I had some coding experience already and understood what was needed to achieve my plan, they wanted to sell me something they’d patch together that I neither wanted nor fit my company’s objective. After interviewing three different firms, only one of whom who asked deep questions about what I was looking to build, I decided that I couldn’t afford to pay the dudes for some “custom” product that they wanted to square-peg-round-hole offer me. Instead, I would need to come up with a better plan to get my platform up and running. I decided that the best way to move forward was to go see an action film and get my mind off of things.
Networking as a Means to Outsourcing I enjoy watching film on opening nights even though they usually come with the customary long queue. I struck-up a conversation with a woman in line who pursuaded me to look into local tech start-up events. The next day, I was registered for one. I had attended business mixers years ago, but these new events were much better. The ones of yesteryear were filled with people swapping business cards listing their all importantsounding professional titles, and conversations about big corporate expansion ideas with companies like Allergan, Mattel, and ConAgra Foods. While I met many very nice professionals aligned with great companies in those settings, I really couldn’t relate to them. I didn’t want a fancy corporate job where I’d have a mind-numbing role. I tried it briefly. It was as if my IQ was dropping - like Edward Norton at the beginning of Fight Club. You walk around in a haze, you forget simple things, you leave your keys in the lock, and you start having conversations that you don’t remember. But I digress. Networking events have improved. Today start-up entrepreneurs are more pay-it-forward minded and seem to better understand the idea that helping others will help themselves and their company grow. I’ve attended many networking events recently and met many people just like me who are looking for customers, team members, and mentors. Networking gives entrepreneurs the chance to meet (and interview) others who can’t wait to help them succeed. For example, I recently met the owner of a human resources management company that not only handles payroll for start-ups, but also provides an online portal for employees enabling them to work remotely, log time, receive payroll statements, host benefits explanations, and company policies. I’ve also met people who were willing to give me advice and introduce me to others who could provide me with information and resources. Building my company and adding team members has not been easy. But networking has allowed me to make some great connections and build enduring, mutually beneficial relationships with other entrepreneurs. Relationships can be the catalyst for success because people do business with those they like and trust. The most rewarding part of being an entrepreneur is to serve others as a resource and to help others succeed.
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Career Survival Kit you may soon need it! get out your
by Mosima Selekisho
INTHEKNOW
Survival of the fattest was sometimes seen during the world’s last economic crisis when banks that were “too big to fail” were bailed out. Survival of the fittest is more likely in the next downturn as businesses and state enterprises assure their future by doing more with less. How close are we to such a crisis and what can executives do to protect their careers? Recession may be closer than we think.
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outh Africa is close to zero growth and many observers believe global crisis is imminent. They identify various triggers – a big Wall Street correction, austerity in Europe leading to social upheaval, negative interest rates taking markets into uncharted territory or a hard landing by the Chinese economy. The end of the commodities Super Cycle has already impacted resources and emerging markets. Anglo American alone is planning to axe 85 000 jobs. Meanwhile, to avoid sovereign debt rerating to junk status, our government is seeking public sector efficiencies and considering the amalgamation of departments (perhaps entire SOEs). Many managers are unprepared for tough times. The 2009 recession was short lived. Effects were most severe among youthful job seekers who found there were simply no vacancies. If another downturn comes it could last longer and managers with a career path stretching back five, 10 or 20 years could find they are in the firing line this time. Clearly, perceptive managers must ask themselves ‘Why should the company keep us on?’ Here are seven ‘items’ that belong in any career survival kit… 1. Energy: display a get-up-and-go attitude. Be prompt, be lively, be alert at every meeting and every interaction with peers and subordinates. 2. ROI: people generate ROI as well as departments. Don’t assume the firm’s investment in your training and career pathing protects you. Demonstrate a return by achieving KPIs and strategic goals. 3. Positive attitudes: Companies shed ‘thorns’ in a downturn. Don’t be an irritant. Be enthusiastic. Don’t be a nay-sayer. Be a solution-provider. 4. Creativity: Be a source of new ideas. Don’t simply throw out ideas at a meeting, develop winning concepts, take ownership and make sure you are associated with successful initiatives. 5. Hard work: Talent alone won’t protect management jobs. Demonstrate value by working hard and smart, and displaying natural ability. 6. Ability to look ahead: Don’t await events, anticipate them. Savings and efficiencies will be focus areas. Don’t wait for top management to explain the obvious. Consider options, make estimates and make a start. Make sure your proactive approach is noticed in the right quarters. 7. Realism: Show you’re alert to new realities and the new normal. Show your eagerness to take on a new role. This may entail greater responsibility and more work as amalgamation and rightsizing take place. You may find the job grows, remuneration doesn’t. Stay positive. Reluctant acceptance strikes a sour note. Attributes like this may not guarantee your career survival, but they will identify you as a potential asset in challenging times. If we avoid recession, you’ve lost nothing. Qualities that are good for career survival are also good for career growth.
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Corporate Sustainability: by Logan Sanchez, CBAC Funding
Genuine Concern for the Environment or Reputation Management?
Most CEOs would concede that in the beginning, sustainability was, first and foremost, a marketing issue. Corporations and business in general saw the potential for a competitive advantage by touting green products and environmentally sound policies. This was the haute couture in which corporations would clothe themselves to enhance marketing and improve public perception.
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oday, however, the trend among top CEOs seems to be one of genuine sustainability pursuits; pursuits that are more than cosmetic. Companies have learned that sustainability can make significant differences in short term and long term value. When a corporation learns that it can achieve growth and return on capital through sustainability, you have their attention. Corporations practising sustainability have seen measurable operational and growth benefits, plus enhanced opportunities in new markets. Another benefit of sustainability policies has been an organic increase in cutting-edge products. A recent McKinsey Global Survey on sustainability shows that: “their companies’ top reasons for addressing sustainability include improving operational efficiency and lowering costs jumped 14 percentage points since last year, to 33 percent. This concern for costs replaces corporate reputation as the most frequently chosen reason; at 32 percent, reputation, is the second most cited reason” This is good news for the environment! Big corporations are the principal users of the world’s natural resources and to see executive interest shift from reputation and image as a primary driver for sustainability efforts, they are acknowledging sustainability’s impact on lowering costs and increasing efficiency. This paradigm shift bodes well for the future of the planet. Room for Improvement—You Bet! Too many companies have an environmental, social, and governance approach that is disconnected from their core strategy. The fact is the majority of companies operate with a splintered, reactive rather than proactive approach to sustainability. Many initiatives remain geared to confirming a company’s green credentials, satisfying regulatory requirements or dealing with emergencies. The issue of sustainability needs to be recognised for what it is … the future of the planet and by default, the future of business. McKinsey’s research suggests that those companies pursuing a sustainability model are capturing significant value. Companies must wake-up to the inescapable fact that they risk not only their reputation but also their profitability by shunning sustainability in a time of diminishing resources and increased regulation. The free market will punish companies that cannot or will not meet the growing demand for sustainable products and services. McKinsey forecasts reveal a clean technology market with a potential to reach $1.6 trillion by 2020. What sane enterprise wouldn’t want a piece of that action? Obviously the opportunities to practice sustainability vary greatly. An accounts receivable factoring firm cannot make an environmental impact equal to that of a mining company or chemical manufacturer.
As “W” Might Say: Sustainability Is Hard There’s no doubt about that. Achieving the full value sustainability has to offer requires considerable effort and that effort must come from the top down. Corporate executives must define the baseline performance and then implement a variety of initiatives to drive improvement. Clearly the best results are achieved by thorough integration of the sustainability mindset throughout the organisation. The rewards of this hard work manifest in 3 key areas: Return on Capital Return on capital improvements can be achieved by addressing energy use and waste. Dow Chemical, for example, has invested less than $2 billion since 1994 to improve overall resource efficiencies. To date, the company reports saving of almost $10 billion from reductions in energy use and improved water conservation in its manufacturing processes. This represents a nearly fivefold return! Growth Companies that pay close attention to the potential impact of trends in environmental regulations can find opportunities for growth. One example is Waste Management. The company practically reinvented itself as an integrated environmental services firm with the addition of waste reduction and waste to energy conversion services achieving significant growth in market share as a result. Some companies find growth in meeting heretofore unmet needs resulting from sustainability trends and still others may employ a philanthropic approach that opens up markets and growth opportunities in developing nations. Risk Risk is the bane of business. Implementing a sustainability model postures a company to avoid potential disruptions arising from climate change; resource scarcity; product and other boycotts, and a host of other risks. Nestlé, for example, initiated a plan in 2009 to promote sustainable cocoa production. The plan has produced 12 million stronger and more productive trees—taught local farmers sustainable and efficient agricultural methods and improved access to health care. With business having so much to gain from implementing sustainable strategies, we are certain to see a marked increase in the adoption of sustainability strategies. The marketplace will punish those who fail to do so.
INTHEKNOW
In the good old days of affordable, constant electricity supply, when fuel cost about the same per litre as milk, manufacturing was the mainstay of our economy. Released from the burden of sanctions and with South Africa dubbed the rainbow nation, manufacturing prospects looked promising. This optimism has lost its gloss, as manufacturing output reflects a steady decline. According to Statistics SA, manufacturing contributed 20% to gross domestic product (GDP) in 1994. Today, manufacturing’s contribution stands at 7%.
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overnment is concerned by this downward trend. “The manufacturing sector is still key to growing the economy and to contributing to Gross Domestic Product,” said former premier of KwaZulu-Natal, Senzo Mchunu, speaking at an Industrial Efficiency Conference held in Durban. South Africa is not faring well in terms of global competiveness either. Investment strategist Magnus Heystek, director of Brenthurst Wealth Management and the author of numerous books, cautions that, in 2015, South Africa ranked 56 out of 144 countries in the World Competitiveness Report, down from 53 in 2014. South Africa has been overtaken by Mauritius, now ranked 39 in the world and up six places from a year ago. We need to offset the large-scale job losses occurring in some sectors. In the year leading up to March 2015, 43 000 jobs were lost. The largest decrease was in manufacturing, with a loss of 16 000 jobs. Economic Development Minister Ebrahim Patel has said that the agricultural sector could create the most jobs, but this has yet to materialise. President Zuma has
conceded that the economy is not growing as fast as is needed to create sufficient jobs. Give Us the Good News As South Africa turns to alternative sources of energy supply, renewables become a growth industry, with more than R100 billion invested in the sector. The industry is addressing challenges affecting the economy and is creating skills. We require more niche industries. Every job created is better than none, and renewables trigger awareness that South Africans can create new industries, rather than flogging a dead horse.
INTHEKNOW
Director of Cape Africa, Yats Gopaul, confirms that the bulk of job creation occurs during the installation stages. “Cape Africa employed in the region of 40 people when we were busy with the Klipheuwel Wind Farm Installation. However, we could not retain all these people. Some have joined developers.” Working in renewables does not necessarily require ‘experts’ from overseas. “Doing the installations is not rocket science as it is made out to be,” explains Gopaul. “A lot more jobs could be created if the developers and the engineering, procurement and manufacturing companies look at employing more local people as opposed to people from Europe who sometimes have very [few] or no qualifications.” Cape Energy is upskilling people. In one installation, it employed 14 people as trainees, all college graduates. These graduates received further training, which included working at height, rope access, working in confined spaces, and health and safety courses. “They worked on the installation of the Klipheuwel Wind Farm in Caledon and gained first-hand experience to accompany their training as electricians and technicians. Some became wind turbine technicians after completing training in Germany,” says Gopaul. Gopaul is not too confident about future prospects for manufacturing. “For some strange reason, as South Africans we are very reactive. We will wait for companies from Europe and China to set up in South Africa and then we would like to participate. Those few that may have ventured out into the industry will see the benefits,” he explains. “As a country we are not short of skills and talent. Look around us and there are numerous inventions created by South Africans. I believe that we can establish manufacturing facilities for almost all of the components required in wind turbines and in solar PV systems.” Generating Energy and Employment AfriCoast Energy owns and develops wind and solar farms. CEO John McGillivray confirms that the renewable-energy
sector is creating employment and skills. “Especially if one considers the entire value chain with regard to renewable energy projects,” he says. “A team will typically be responsible for the development of projects, during which an array of specialist input is required in terms of finance, legal, permits and authorisations, and the design of facilities.” He explains that high targets, set by government in terms of job creation and local content, have been catalytic in the establishment of component manufacturers and the growth of, among others, the construction sector and the transport and logistics sectors. McGillivray emphasises guaranteed, long-term operation of renewable-energy facilities, and significant foreign direct investment into South Africa. Achieving targets for enterprise development is a component of a project’s contribution to socioeconomic development, with development and funding being channelled into rural areas and around small towns. “As long as the policy and processes for the procurement of energy from independent power producers are clear, realistic, transparent and credible, and government effectively enforces the commitments made by power producers in terms of targets, then South Africa can see significant privatesector investment in skills development and job creation through renewable energy.” Making It Happen Coenraad Bezuidenhout, executive director of the Manufacturing Circle, was asked earlier this year how manufacturers belonging to the organisation could overcome challenges. “Thrust fair trade forward through necessary adjustment to tariff and non-tariff barriers. Tie up closer with African regions and key export markets. “Promote preferential procurement for locally manufactured and beneficiated products. There are huge opportunities on the continent that could boost manufacturing,” he says. With many factors influencing manufacturing output, a key objective should be that South Africa raises its status as a manufacturinginvestment destination. It is also up to manufacturers to ensure that they make use of incentives available from the Department of Trade and Industry and other government finance institutions. Sources: africagrowth2015; www.bizcommunyty.com; www.mediatenor.co.za; and www.southafrica.info
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Strategies to Resolve Conflict
in the Workplace One of the most challenging skills faced by managers is the ability to handle and positively resolve internal conflict in the workplace.
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n today’s fast paced business environment resolving conflict amongst employees is crucial in ensuring tasks are performed quickly and effectively,” says Neville De Lucia New Business Development Director at Dale Carnegie South Africa. “The ability to deal with people in the correct way is a skill that is becoming more prominent in the workplace and as a manager it’s essential to be able to resolve conflict and follow due process.” In order to foster a more productive environment, conflict resolution strategies should be implemented depending on the circumstance. Here are 5 common conflict areas found in the work environment and the resolution strategies to help managers manage and resolve conflict: Process conflict Resolving conflict is a process, so determining how much control you have as a manager over the process conflict, is the first step. Identify the root cause of the problem and pin point who can take ownership of the issue so that the resolution is not just on your shoulders, but all involved can take responsibility. Discuss the problem and establish a workable solution and action plan that is agreed upon by all. The owner of the process should follow-through
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on the plan but as the leader, even though you may not be implementing the resolution plan; it is your job to show recognition where necessary. Role conflict When conflict arises due to different roles within an organisation, it’s important for each person to perceive their own role in relation to others who are also involved. Each person will need to take responsibility for their own actions as it pertains to the issue and be prepared to change their perception of their role should the need arise. You won’t receive the desired results if one or more parties are not interested in resolving the situation. All involved will need
When conflict arises due to different roles within an organisation, it’s important for each person to perceive their own role in relation to others who are also involved.
INTHEKNOW
When there are many decision makers working on one project, it is almost natural for each person to have their own opinion on which direction to take.
to be on the same page and will need to show willingness to be flexible in achieving the organisations goals. If you are in the middle of the conflict, it’s imperative for you stay positive and view any role changes in terms of a new opportunity. This indicates the importance of keeping our attitude in check as managers and team leaders. Interpersonal conflict Everyone has their own personal opinion about things, but the problem comes when people believe their opinion is prevalent to everyone else’s. As a manager you cannot always get people to agree, especially when it comes to personal ideas or biases. In a situation where two employees are constantly knocking heads, sit them down individually and ask them to write down three behaviours they could change to help reduce the conflict. In a South African context, there may also be prejudices at play. It is of vital importance that these are managed in a working environment. Take it a step further and get them to write down 5 strengths they recognise in the other person, to simply take the focus off of themselves. For the next three months ensure they are accountable to you until you start to see a difference in their behaviour.
Direction conflict When there are many decision makers working on one project, it is almost natural for each person to have their own opinion on which direction to take. The solution to resolving directional conflict is to get each individual to clarify the discrepancies they have so that it can be described in neutral words. Do this in an informal meeting ensuring each person is friendly and non-confrontational, ultimately resulting in agreement. If there are differences in values, as a leader make the call to always go with the higher value. External conflicts External situations out of your control can easily arise in the workplace, consequently resulting in conflict among employees or among clients. Establish how much control you actually have over the situation and carefully choose which battles are worth fighting, bearing in mind you may still need to liaise with the person in the near future. To resolve the issue, focus on the things you can do rather than complaining about the things you can’t do to change the situation, while maintaining perspective. If things get too out of hand talk to someone you trust and who is able to offer you reputable advice.
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Tomorrow’s Technology,
Today By Lydia Bundred
Independent Cars Mobileye specialises in artificial vision technology for vehicles. The branch based in Israel has designed and is planning to launch a smart vehicle navigation system where the car can interpret and act according to its environment. Though the car won’t be a transformer it will have the ability to safely navigate should the driver let go of the wheel. Its safety features also allow it to engage the breaks if any danger presents itself. The company aims to advance the technology to the point where the car can operate without a driver. Car companies are eager to see the technology in their vehicles but can the same be said for the insurance companies? Out of Body Viewing Real View Medical Holography is changing the medical world. Dennis Gabor, Physics Nobel Prize winner and visionary, is the creator behind this potentially life-saving device. With the use of holography a patient’s heart can be
When the year 2000 approached we all expected an era of flying cars, living in space and futuristic fashion. Though not much has changed in the last decade regarding fashion, space accommodation or hovering vehicles - there has been a change in how we drive, prepare for surgery, see and use glass.
accurately and non-invasively projected in 3D. The hologram will allow surgeons to see the heart before making any incisions. There are a few kinks which the designers are still solving before it can be available commercially, such as poor image quality and interaction limitations, but this is definitely something to look out for. Eye-seeing Belt Khaled Shady, a twenty-two-years-young entrepreneur from Egypt, has made a unique navigation tool for the visually impaired, using a 3D depth camera and ultrasonic technology. The device is worn as a belt and communicates with its wearer via a Bluetooth headset. The prototype has been dubbed; Mubser. Mubser is programed to recognise various obstacles and on recognition it vibrates and announces the object, if known, to its owner. Several prototypes are currently being tested to improve and customise its functioning. More than Glass For those who enjoy technology, green initiatives and tinted windows on demand, Gauzy is for you. Gauzy is a company that specialises in the merging of technology with every day elements in the environment, such as glass. Their newest merger between glass and technology will allow any glass surface to be controlled and changed, much like an LCD television. Glass can go from tinted to clear at the push of a button. Windows can become transparent solar panels that harness sun-power for those wanting more than just a window. In an era where multi-tasking is an asset to the average human it is becoming an essential for one object to fall in suit and be multi-purposed. Why have a watch that only tells time when you can have an entire day planner on your wrist? The question is; what will the next decade bring?
Build Your Business
One Block at a Time “Universally, people have a positive image of LEGO for playing and creating,” says Pete Smith, the owner and a facilitator of Teamgel, a company specialising in corporate problem solving and team building with the use of LEGO. “It’s simple and easy to succeed with, which means it can be used to get people to interact with each other,” he explains. “The secret ingredient in using LEGO,” he shares while gesturing to the box of LEGO, is that “it is a means to get people to work together in a nonthreatening way.”
by Lydia Bundred
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t negates the demographics in society and bridges differences because the playing field is levelled. Smith shares that the power behind the LEGO method is this: “When people play with LEGO in a structured way, there is a shared bond between them and it’s this emotion that lays the foundation for motivating an entire group.” True character emerges as people become engrossed in the activity and a creative, open environment is shaped. Teamgel offers two methodologies, namely: LEGO Serious Fun and LEGO SERIOUS PLAY. LEGO Serious Fun was birthed by Smith as a method of experiential learning. People interact in teams and do three LEGO-structured exercises to evaluate interaction on a team level. He points out: “During these activities, people enter a state of flow and, from a business perspective, this is when people become innovative and creative.” LEGO SERIOUS PLAY is a group problem-solving and decision-making process using LEGO to evoke new ideas. This method is beneficial in change management, diversity management, culture establishment, strategic planning and team building and is one used by corporations such as NASA, Google and Microsoft. One of the benefits of LEGO interaction is that it ensures full participation by all levels of management and allows everyone the chance to voice their perceptions. The focus is on the LEGO models that are built in the sessions so as to make the meaning less personal and more about the interpretation underlying the meaning of the activity, which provides insight into seeing how individuals think. “The idea behind the sessions is not to impart knowledge but to create an environment where people can have light-bulb moments,” says Smith. “The LEGO method plugs into a fundamental understanding of how people operate, that being, if we are a team and we want to do something together, we have to agree on what it is we are going to do and be committed to it,” he emphasises. By combining the individual models into one unified whole, members have a sense of belonging and ownership. The lasting effect is in large part based on how leadership reinforces the principles and feeling of success achieved during these LEGO sessions. For more information on using LEGO bricks seriously, contact Pete on pete@teamgel.co.za or visit www.teamgel.co.za.
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Spotlight
Make Hay while the Sun Shines by Beth Monaghan
When my now business partner convinced me to quit my job with a steady salary to begin our own business, I was excited, ambitious…..and didn’t know what I didn’t know. It’s been almost four years, we’re up to about 20 employees, and are lucky to count a good number of high profile startups, venture capitalists, and Fortune 500 companies as clients. We’ve learned some things: a lot of things.
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here’s no manual for starting, growing and running a business. And even if one existed, I’m certain I would have ignored it. The only lessons I learn well are the ones I learn the hard way. Here are 10 of the best lessons we’ve learned so far: 1. Hire every employee as if they were your first. You will scrutinise your first employee almost as much as you did your spouse. It’s a big step – someone will now be relying on you for a salary. That person must be able to share the load, contribute thoughtful ideas, and live up to your standards. Don’t ever lose sight of this. When you are a small and growing business, every single person matters, and you cannot afford to have dead weight. If you do, take Jack Welch’s advise and find out who it is and get a replacement immediately so you can stay focused on your core business. 2. Focus on your strengths. You probably got into business because you like your business, not because you’re good at accounting, payroll, benefits or building out new space. Know your skills, use them to their fullest, and find other experts to help you with the rest. Don’t let the administrative details distract you from your core business. 3. Be an expert. Why did you get into business in the first place? You probably have a unique point of view on how to do your particular business. Use that to your advantage. No one will hire you because you are the 10th PR firm in town. They will hire you because you specialise in a technique or point of view on how to be successful. 4. Know when a client/customer is ‘worth the investment.’ We all have them….those customers we take because they
will get us to the next level. Maybe it would broaden your sector expertise, or is a brand name that will carry cache. There are certainly times when this makes absolute sense. And there are times when it could be the worst decision you ever made. For every business, the criteria that separate the good from the bad ‘investments’ will be different. Identify yours, write them down, and live by them. 5. Don’t rest on your brand. Once you’ve established your brand with some homerun customers or campaigns, don’t rest easy. You are only as good as your last campaign, and unless you are a household name (and even if you are) you still need to treat every campaign or customer as if they were your first. 6. If you are the business, you have a problem. You will never grow the business if you are the only one who can get things done or to whom customers come for advice. Empower your employees. 7. Mentor. Get used to the idea that no employee will ever work as hard as you do, and don’t resent them for it. You
own the business and at the end of the day, the buck stops with you. However, spend the time to mentor your staff. Give them the opportunity to grow and take charge. The first time you teach them how to do it, it will definitely take longer than if you did it yourself, but by the third time, perhaps you won’t be needed. 8. Stay nimble. Small businesses, like startups, can innovate more quickly than large enterprise organisations, so use that to your advantage. Stay aware of industry trends, learn new best practices and incorporate them into your offerings as fast as you possibly can. 9. Make hay while the sun shines. My business partner would always say this to me when we were overwhelmed with new business opportunities. She’s right. At InkHouse, we call those good problems. Find a way to take advantage of a big pipeline. 10. Go big or go home. This is what we say when we’re looking at an opportunity we’re not sure we can get. If you don’t go for it, you won’t win in. So prepare the best proposal you can, walk into the meeting and act like you own the room, don’t fuss with your clothes, and deliver that pitch like you’ve done it 100 times.
Spotlight
Unaged Angus by Taryn Moir
Angus Upton is the young, vibrant and newly appointed global brand ambassador for the Distell signal malt portfolio. This includes Bunnahabhain, which has been noticed in a big way as it continues to win multiple awards. At the 2016 San Francisco World Spirits Competition held in March where 1,899 entries were judged, Bunnahabhain earned the 2016 Tasting Panel Magazine Distillery of the year. Therefore, the chosen blend of Bunnahabhain and Angus by Distell definitely falls under our spotlight.
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ngus Upton is one of the youngest members of the Scottish Malt Whisky Society’s (SMWS) tasting panel and he has also worked with Royal Lochnagar distillery as a consultant − offering tasting services to independent bottlers and high-valued clients. For the ones that don’t know, the SMWS is an international members club that offers a world collection of signal cask whiskies that are sort after and sometimes rare, to whisky lovers. Each whisky offered by the SMWS is bottled form a single cask at natural strength without the addition of water or colouring. Angus Upton has experience producing his own whiskies and is a connoisseur that explores the excitement, mystery and the intrigue of the rugged beauty of whisky. “Joining such an established whisky producer has been a long-term ambition of mine and I’m honoured to become a member of the team”, says Angus on his new appointment. So in other words, Angus Upton is in the big leagues and wellmatched when paired with and when representing a big timer whisky such as Bunnahabhain. Bunnahabhain forms part of the portfolio of the JSE-listed Distell Group but why is it making so much noise? “Bunnahabhain distillery has sat proudly on the northern shore of Islay (off the west coast of Scotland) for over 125 years, quietly making a distinctly gentle Islay single malt”(Bunnahabhain’s twitter slogan), and loudly winning awards at the San Francisco World Spirits Competition, amongst others. It won the 2016 Tasting Panel Magazine Distillery of the year receiving the award for Best Distillers Single Malt Scotch. In the 2015 Competition, the 25-year-old single malt won a double gold medal. The competition director of the San Francisco World Spirits Competition, Anthony Dias Blue commented that;“We have the industry’s most respected experts serving as judges, and every entry is blind-tasted under highly focused conditions. There is no better way to discern quality and identify trends.” Continuing with awards, Bunnahabhain 25-year-old single malt was declared the Best Islay Single Malt for 2l years and up for overall single malts at the 2015 World Whiskies Awards. Bunnahabhain 18-year-old took the title of Best Islay Single Malt for the 13 to 20 years category at the same competition.
Angus Angus The difference is that these malts are far lighter on the palate then what you would expect from Islay whiskies with heavy peaty and smoky flavours. Bunnahabhain is said to have a singular flavour, rich depth of colour and aroma as natural as when they come out of the cask. Bunnahablain was founded in 1881 and pronounced ‘Bŭ-na-ha-venn’ - I know you’ve been wondering - which means ‘mouth of the river’ in Scots Gaelic and pertains to the Margadale river that flows close by. To put things into perspective and add a little understanding, one would need to appreciate what a Scotch single malt whisky is. A Scotch single malt whisky is a single malt which is made in Scotland and been distilled at a single distillery using a malted grain, it is not always because it comes from a single batch or cask though. To further this, the difference then between a singlemalt and that of a blended whiskey is as follows: formally, a blended whisky is a product that contains a mix of barrel-aged malt and grain whiskies but to state it simply, it is a mixture of two or more whiskies that are bottled and sold as one whisky. Fun fact and on a side note, Scotch whisky is spelt without the ‘e’ and this differentiates it from that of Ireland whiskey shown with the ‘e’ in its spelling, spelt ‘Whiskey’. We can see why both Bunnahbhain and Angus make such a well –suited and excited match!
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Personality
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Capturing the Light Browsing through a portfolio of professional photographer Brenda Biddulph’s work, makes me want to grab a camera and take a photo. Attempting to create a visual moment like the many she has created is not easy.
Brenda established her own photographic business four years after graduating from the National School of Photography in Pretoria. She had gained experience in advertising, corporate photography, weddings, school photography and publications. Today her business, Monsoon Photography, has a faithful following of diverse clients who entrust Brenda and her team with repeat business. Putting a person at ease is an accomplished skill. Even the most senior executive can be a reluctant subject when a camera is pointed in their direction. Monsoon Photography has become a popular name to call among organisations needing photos for annual reports and events. The Monsoon Photography team has the ability to charm a smile out of the most world-weary executive. “We ignite with a jovial professional approach,” says Brenda. Brenda’s special love is vibrant fusion photography and experimenting with her “fascination for light”. The recipe for success behind Monsoon Photography is simple. “Our enjoyment of the profession
and passion for people attract clients to call on our services again and again,” she says. Monsoon Photography works on site and in studio, depending on the client’s requirements. Their studio, situated in the eastern suburbs of Pretoria, is perfect for family portraits and for shooting music videos. The experienced studio and on-line photographers that comprise Monsoon Photography share two things in common: a fascination for light and an eye for detail. With clients as diverse as Deloitte, Sasol and The Land Bank, Monsoon Photography adds a creative and professional touch to whatever the occasion.
Contact 083 452 4530 www.monsoonphotography.co.za
LIFESTYLE
Mercedes Benz E-Class A Modern by Carl Wepener
Masterpiece
The success of any product or brand can only be determined by taking all facets into consideration that make up the whole. To put the new Mercedes Benz E-Class into perspective we need to look at the overall concept of the manufacturer, the products and the service delivery to the clients.
service received whether, visiting for coffee, checking on new developments, servicing or buying a new vehicle is second to none. The staff ensures that the client and prospective clients will want for nothing and that the experience remains memorable. Future Mercedes Benz ‘sites’ will be much more service orientated and sporting online stores.
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Add to that an excellently manufactured modern vehicle that has again raised the benchmark substantially in technology and driving pleasure and you understand why Mercedes Benz
t launches we focus on the brand and the product specifically. The brand normally speaks for itself and the acceptance of the product is very much based on the articles written by the journalists. With the aforementioned in mind it was really an eye opening experience to be invited not only to the launch of the new Mercedes Benz E-Class but also to the opening of the Mercedes Benz dealership in Pinetown’s 10 000 square metre building. The new dealership has cost its owners R125 million and is an environmentally friendly and modern building to further enhance the experience of the client. To walk into the building is a pleasurable experience by itself and the
products are sought after and why the product range will grow from 29 models to 48 models. Mercedes Benz are voted as the coolest motor brand and as per the opening of the dealership, more and more young affluent people are buying the brand. The new Mercedes Benz E-Class looks are very distinct very much like both the S-Class and the C-Class and will not be easily distinguished from a distance, unless you know your cars. The E-Class is at present technically the most advanced Mercedes in the World and probably, if not, the most advanced premium luxury car in the World. I can only describe the 10th generation Mercedes Benz E-Class as the most advanced, functional, efficient, intelligent and safe modern car that oozes a sensual beauty and modern charm. The features are too many to cover in this article but from the exterior design, to the modern metal, leather and wood interior the E-Class welcomes you into its luxurious, virtual presence while enjoying the multitude of technical wizardry such as the high definition displays. There are three displays to choose from being the standard cluster display, the digital display or the advanced 12.3 inch digital display. All essential controls are in easy reach on the steering wheel. Some features such as individual user interface with a cellphone is available for the car and can also function as a digital key. Mercedes will have a completely connected car by the end of 2016 and these connectivity features will be available in E-Class models from 2017. South Africa will be the first Country outside Europe to get this. Safety features are never left in abeyance and intelligent drive is again taken to the next level with remote parking via an App and then there is Pre Safe Impulse Side Protection where a potential side impact is sensed and a bladder in the seat pushes the person out of harm’s way.
Lighting has always played a major role for Mercedes and an option on the new E Class is the Multi beam LED with 3 driving modes being an active lighting function, control shaping the form of lighting and cornering lights with pre-emptive crossing functionality. The E Class has a very advanced Drive Pilot that regulates speed, distance and stopping up to 200kp/h. The Pilot will keep you in the centre of the road while reading road markings. Where markings are unclear the E Class will read the road width, barriers and other structures to determine where it should drive. Although fairly new the pilot system works well but is by no means a system to be left without constant input via the steering from the driver. Standard in all models are Active Park Assistance Parktronic which makes all parking hassle free. The new Smartphone Integration Telephony system in the E Class makes use of the visual cockpit and has wireless charging through NFC with QI for certain makes of phones like the I-phone 7 and Samsung S7. It will also automatically connect audio data hands free through Bluetooth. It can be set up to also read SMS messages and you can dictate messages that will then be sent as SMS messages. Other makes and models will soon follow. Your whole telephony intelligent system can be customised through your steering wheel and you can select a sport display or a classical display. We will have to wait till 2017 for the App to download this functionality. The three powertrains for the E Class have the brand new straight 4 cylinder strengthened aluminium base engines which are both lighter, smaller, more powerful and through single, double, smaller or bigger turbo’s can deliver a higher output. The new 4 cylinder engine is to carry Mercedes Benz into the next decade.
Blurb E 200 four-cylinder 1991cc petrol 135kW Prices from R707 100.00 E220d four-cylinder 1950cc diesel 143kW Prices from R759 100.00 E350d six-cylinder 2987cc diesel 190kW Prices from R 958 300.00 Coming: E250 and E400 4Matic And Mercedes-AMG E 43 Mercedes-AMG E63 S All models are available with the 9G-TRONIC Automatic transmission And vehicles can easily increase in price by R300 000.00 with optional extras. Service and maintenance agreement is 100 000kms over a six year term. The ultimate test of how all this innovation performs on the road is what is essential for deciding what to buy. Although I only drove the E200 and E220d I can say that except for the power factor of the E350d the cars handle very much the same. I was amazed how quiet the 220d was and also how well the E200 performed from start. Gear changes are very smooth even when driving in sport mode. The E Class can be individually set up by the driver for his or her own preferences. Fuel consumption for the E220d came down to 5.4l per 100kms and that of the E200 averaged at 8.1 l per 100kms. Performance of both these models was more than expected with no turbolag and impressive acceleration even when overtaking. Driveability of the new E Class is as expected a pleasure with luxury surrounding you and enough ‘wizardry’ to occupy you and to make your drive an enjoyable experience. Space in front and in the back is more than adequate and I was still amazed at the boot space and of course some extra stowage space under the floor cover as there is no spare tyre due to the E Class being fitted with run flat tyres. Yes, I will definitely replace my 2006 E Class with the new E Class as I have confidence in the brand, their quality and service capability. Furthermore I believe the Mercedes Benz E Class can easily carry me safely, efficiently and in comfort for the next ten years.
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LIFESTYLE
Reunion Island by Taryn Moir
A Hidden Treasure, blessed by Nature The sweeping views of waterfalls that pour off rimmed mountains in beautiful soul-stirring cascades created from the extinct and dormant volcanos will be your backdrop, your 15 km reef is your foreground and you will be tip-toeing, barefoot through vanilla orchids.
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eunion Island seems to be an almost forgotten island which is just a 25 minute flight from Mauritius, an everyday tourist destination. It clouds itself in mystery with its emerald coloured rainforests and the island’s pulsating heart, Piton de la Fournaise – a volcano feeding the land. If you are looking for a beach destination with elements of adventure, food and culture to explore, you have found it and more. Reunions’ 3 calderas form natural amphitheaters and are for the climbing and hiking enthusiast or paraglider to get the heart pumping and lungs gasping in the outdoors, alternatively, there are helicopter charters. There are seemly discontinuous reefs that support many species of coral, exotic fish such as the parrot fish, turtles and marine mammals like humpback wales and dolphins which all create a dance under the see for a snorkeler and scuba-diver to witness. The rich population packs a punch in energetic coastal cities of a French colonised island with a Caribbean feel lifestyle when you notice the yellow parakeets and quant French bistros. There is an Indian influence to add to the exotics and when walking down the bright local markets selling bits and bobs, you will find samosas, colourful sarongs, dragon fruit, baguettes and croissants. There are trendy beach restaurants serving fresh fish, plenty of bakeries and patisseries. It is recommended to stay in the B+B’s around the island, (not only a money saver) but to look forward to the Creole’s (local people) famous home cooked food and relaxing luxury. When looking at price, it is equaling that of its sister island Mauritius but boasts so much more. It is dubbed the ‘Hawaii of the Southern Hemisphere’ and has been granted
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UNCSCO’s (United Nations: Educational, Scientific and Cultural Organization: World Heritage Conservations) projection of its National Park. It is a malaria free zone and most countries do not need a visa to visit. Reunion is the Treasure Island story filling its pages with the adventures on the love for food, wine, black and white beaches, secret waterfalls cascading and the culture of people wrapped in colorful pashminas! A mystery that you need to solve. Things to do for a day in Cape Town under R100! The Hop-On Hop-Off Train Trip along the southern line rail route R 35 Trip can take you through the semi-industrial inner-city areas of Woodstock and Salt River, through to the quirky suburbs of Observatory, Mowbray, Rosebank and Rondebosch. Cape Metrorail Hop off and head to Wale Street to Honest Chocolate Café for coffee and something sweet from R 35. All the chocolate is handmade and organic. There are no preservatives, artificial flavouring or emulsifiers and also dairy free. What: healthy chocolate?! Yes Please!! City Sight Seeing Habour Cruise R40 Hop on again on the Harbour Cruise to see the city from a different view and learn more about Cape Town’s proud nautical history. Addis in Cape: Ethiopian Coffee Ceremony R 35 Get a glimpse into Ethiopian tradition when you take
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part in a mini coffee ceremony. The Ethiopian coffee is brought to you in a traditional Jabena and completed by the burning of frankincense with the small serving of popcorn which is viewed to bring out the taste of the coffee beans. Company Garden Walk – Free It is situated right in the city center of Cape Town and connects places like the parliament house and Iziko Museum. Bring peanuts for the squirrels that come visit and what’s more there is free wifi. Iziko Museum R30 South Africa’s natural and cultural history museum. The exhibits range from 700-million-year-old fossils to insects and fish, dinosaurs and wildlife menageries. Dim Sum at Silk Road R50 Dim sum! Best place for variety is at Silk Road at the Earth Fair Market. Tushita Buddist Centre in Rondebosch - Free Try the meditation classes that gives you a practical overview of meditation. You can attend a drop-in class to familiarise yourself. Labia Theatre R 45 The well-known old movie theatre which oozes charm. It is the oldest independent cinema in South Africa. The theatre also hosts various interesting film festivals. Happy Hour at the Foreign Exhange Bar R25 Sundowners up to beer pong, quiz nights and salsa classes. Happy hour runs from 17h00 to 19h00 where you can pick up a refreshing drink from as little as R25. Live Music at Bay Harbour Market Free Move on to the Bay Harbour with great local live music that you can enjoy for free. It’s open on Fridays from 5pm to 9pm, Saturdays from 9:30am to 4pm and on Sundays from 9:30am to 4pm.
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LIFESTYLE
Mercedes Benz GLE 250 d Touring perfection
by Carl Wepener
Every trip begins with its planning and since I have never had the opportunity to drive the new Mercedes Benz GLE, formerly the ML I really looked forward to this 4000 km trip to Cape Town and back. Yes, I know, it is actually only around 3000 km’s, but not the way Annelize and I travel and that is why I opted for the smallest engine in the range being the 250 d.
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oing to Cape Town we decided to go via Kimberley and left in the wee hours of the morning at 04:00. What luxury, what great lights and then we hit a thunder storm that would even slow down seasoned rally drivers to within the speed limits. The GLE too showed signs of aquaplaning but this got sorted quickly by the off road settings and then the capabilities got further tested by oncoming traffic on a narrow stretch of the road that veered onto my side of the road forcing me to go onto the side of the road which was very muddy. We braced ourselves for some serious business only to find the GLE’s dynamic motion across this terrain was excellent
and never made us feel that we are on the edge of disaster. Driving the rest of the road was very relaxing and the new MercedesBenz GLE’s mastery extends to its interior, where it begins with 12 multifunction buttons on the sports-style 3-spoke steering wheel with perforated grip inserts. Controlling any aspect of the GLE and adjusting the SUV’s 20.3cm COMAND online display is easy and never takes focus off the road. Going through the Karoo we used the automatic climate control which allows you to individually design different temperature zones on either side of the vehicle. Seat position and comfort is second to none and being enveloped in soft nappa leather where the new front seats remember the shape of your body, reconfiguring themselves ergonomically to fit you at the touch of a button makes for really effortless driving and without getting out at the end of the trip feeling stiff and tired. The alarm did go off twice to warn me that I need to stop for coffee and to stretch my legs and one of these stops was in Victoria West where you find the loveliest lamb, game, chicken and pepper steak pies. One is enough because it is packed with meat like the GLE is packed with technology. Meticulous attention to detail in the SUV’s interior not only begins with glistening hand-polished wood, silver chrome rims around the media display, new colour concepts for your appointments and a superb selection of new individualisation packages, from AMG carbon fibre to black piano lacquer trim but is taken through the whole vehicle. Try it with harmonious power - the new GLE’s diesel engine delivered harmonious power and sets the benchmark across the segment, reducing fuel consumption by up to 7 % compared with its previous incarnations and offering outstanding carbon emission figures as low as 140g/km. Although the GLE 250 d was noisier then I thought at idle, it was quiet and had more than enough power for any eventuality. My best fuel consumption was 7.5L per 100km’s but the average was nearer to 7.8L per 100km’s for the whole trip. I do believe that the GLE 350 d will give even better figures and performance although it is fairly more expensive. A sportier design for the Mercedes-Benz GLE in 2016 sees LED daytime lamps gleaming from within the halogen headlamps, a wider, more formidable front bonnet with power domes, a choice between Himalayas grey light - alloy wheels in 19 or 20 inch and a sleek new trim along the tailpipe and is one of the really enjoyable SUV’s that is very capable for whatever the road conditions. It is an excellent tourer and every day vehicle that you know you will enjoy whenever you get behind the steering or in the passenger’s seat. For more info follow the link below http://www.mercedes-suvs.co.za/files/GLE-Class_Speclist_20160301_ePDF.pdf
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Strassbergers’
Legendary ‘Treads’ by Carl Wepener
I grew up in an era when the veldskoen (field shoe), or ‘vellies’, was a well-known item, especially in rural areas and farming communities. The veldskoen also became popular through celebrities like David Kramer and Tolla van der Merwe wearing such shoes. I have also seen many a ‘vellie’ with motorcar tyres used for the soles of these shoes.
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aving had the opportunity to see some modern veld-shoe products, I decided to research the industry and see if, in today’s world, these shoes still exist and flourish or whether modernisation has also made the veldskoen obsolete.
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art of its success is due to the fact that its employees are well trained. Although machines are used during manufacturing, the shoes are still 80% handmade.
Well, I was surprised to find that the veldskoen industry is still with us and is prospering in the town of Clanwilliam. Meeting with Hennie du Plessis from Strassbergers shoes was really a very pleasant experience, as he and his family, namely wife Erna (born a Strassberger) and son JJ, are not only pillars of the Clanwilliam community as a result of their long years of commitment to the community, but are also actively involved in sports training at local schools, in the Council and the business association. Moreover, they have also given shoes to local cultural performers and even a pair of pink ‘vellies’ for a donkey that had to walk through the streets of Cape Town. Not only did Du Plessis take us on an interesting historic pilgrimage back to 1829 when the first shoes were made at the mission in Wupperthal by German missionaries, but he also took us back to when the first factory was started in Africa in Wupperthal in 1834 by missionary Johan Gotlieb
LIFESTYLE
Leipoldt, grandfather of the famous C Louis Leipoldt, who was also a missionary. It was then known as the Wupperthal Institute 1830. The first Strassbergers, two brothers and the sons of missionaries, began to train local people in the shoemaking business. They changed the name to Strassbergers in 1941 and were pivotal to the success of the factory and to its continued long existence and success. Up to the present, the factory has been in the family all the years, except for a short spell between 2006 and early 2013. The factory was moved to Clanwilliam in 1954 and has become a legend and one of the most respected and well-known veldskoen manufacturers in South Africa. Du Plessis became involved in 1970 and took over as Managing Director, also becoming a shareholder of the company. The passionate Du Plessis lives and breathes Strassbergers shoes. As the oldest and one of only a few superior shoemanufacturing companies in Africa, Strassbergers delivers shoes of an extremely high quality. Part of its success is due to the fact that its employees are well trained. Although machines are used during manufacturing, the shoes are still 80% handmade. “We have modernised our factory, as we had to adapt or die – but we have taken care not to lose the personal touch of the handmade item and have ensured that people do not lose their jobs through modernisation,” says Du Plessis. The myth that the veldskoen is just for the veld has been thoroughly trampled on by its durable ‘treads’. Strassbergers produces a large range of shoes, including the famous veldskoen, which, after all these years, is still a bestseller. Then there is a whole range of shoes for men and women, such as labourers’ shoes and boots, sports shoes, casual shoes and hiking boots. What sets all of these shoes apart from any other shoes is not only the fact that they are handmade, but also that they are lovingly made for Africa by South Africans using materials sourced from South Africa. “Our shoes are the only shoes with genuine-leather inner soles. This makes them legendary as regards quality and durability,” says Du Plessis. “Our prices are competitive, with handmade quality that is superior to any machine-made product, and our shoes last much longer, especially because of our ‘we don’t hassle, we pay’ policy. We replace any defective item immediately,” emphasises Du Plessis. In the past three years, only two pairs of shoes have needed to be replaced owing to defective material.
Exclusiveness, superior quality and durability are part and parcel of what you get from the loyal Strassbergers team when you purchase their products. Strassbergers is also proud of the fact that, unlike the rest of the industry, their staff turnover is negligible. Some of the 25 team members have been with Strassbergers for between 16 and 51 years. Even after going on pension, Charlie Evans is still an active member, as all shoe repairs are referred to him in order to provide him with an extra income. The dedicated team, some of whom started with Strassbergers at the age of 16 and have been employed for up to 43 years, come from the local population and are trained in at least two different fields of the shoe-manufacturing trade to ensure that they are qualified to produce quality shoes.
Exclusiveness, superior quality and durability are part and parcel of what you get from the loyal Strassbergers team when you purchase their products. Strassbergers is also proud of the fact that, unlike the rest of the industry, their staff turnover is negligible. Quality and durability are easy words, but then take the case of Gert Smit, a local farmer who bought a pair of boots in 1987 and wore them for 12 years. He brought them back to Strassbergers in 2000, saying that he was tired of wearing them and had tried his best to destroy them, but could not succeed. He said: “Now you can have them. I want a new pair.” Du Plessis emphasises that, although the agricultural sector has always been their strongest market, they also cater for the general public and specific sectors like hiking, golf, and so on. They are also looking at more modern shoes for the general population and at catering for seasonal preferences like suede, which has come back to replace the matt-look shoe. Another exclusive service is that corporate clients are welcome to discuss their specific needs or exclusive shoes that they want, and such shoes are then developed exactly as specified. With the Chinese flooding the market with shoes, it is like a breath of fresh air to find such dedication and patriotism on the part of a small company such as Strassbergers in Clanwilliam. Not only is the company dedicated to growing its brand and providing a decent living for all of its employees, but it is also intent on making its brand the leader in the industry. Moreover, it is committed to ensuring that the African veldskoen, or ‘vellies’, builds on the legend and also moves with the times to ensure that all of Africa’s people can be partners in its quality ‘treads’ – shoes that do not stand back for anything, because they are of the best quality and are delivered by the best people in Africa.
A f r i c a ’ s
M o s t
I n f l u e n t i a l
WOMEN i n
B u s i n e s s
a n d
G o v e r n m e n t
While growing up, Kate Kibarah was an obese child and was constantly heckled by her peers through primary and secondary schools. This painful experience drove her to read various books and research widely on remedies for her weight problem. Despite being admitted to study law at the University of Nairobi, Kenya she opted for a degree in clinical nutrition. “While on campus, I began practising what I was learning in class and it bore fruit. Finally, I began losing weight,” says Kibarah.
S A self made
Individual by Andrew Ngozo
Kate Kibarah
CEO of Kate Organics Limited
oon, many people were asking the CEO of Kate Organics Limited for weight loss tips and from this grew a consultancy business – Kate’s Organics. “This job basically involves training people on how to live a full life by adopting healthy lifestyle habits such as eating the right kinds of food, exercising and avoiding stress,” she says. Kibarah advocates organic foods since they are free from toxic substances. “These crops are grown without chemical fertilisers or pesticides,” she explains. Since 2010, she has expanded the business. Aside from conducting training on healthy living, she also processes and sells organic products, which include organic honey, aloe vera natural juice, green tea and moringa leaf powder. These products can be found in all leading supermarket chains across Kenya as well as in Uganda and Tanzania. “The demand for the products is overwhelming. In fact, I cannot meet all market needs at the moment,” she says. Go For It! As a result, she is now ploughing back profits into the business. “I want to increase the number of organic farmers who grow crops used to make products
2015/2016 such as aloe vera. I also want to expand the production Kibarah considers herself as a self-made industry leader. and processing capacity of the enterprise.” Based on her “For me industry leadership is defined by one’s ability experience, Kibarah encourages all entrepreneurs interested to know market trends, customer tastes and the market in organic products to go for it. “It’s worth the investment as niche for different products and services. My excellence in more and more people are now embracing them due to their this regard has resulted in me being a recognised brand health benefits.” ambassador for the sector in our country and beyond,” she Kibarah says that consistent use of the Kate’s Organics notes. Kibarah further illustrates that she is an individual brand in the healthy living trainings she conducts and on whose primary benchmark is “customer satisfaction and the nutritional products she sells have also boosted sales. “All compliance with stringent quality control and operating people I talk to can easily identify the products and buy them standards set by the Kenyan government and the organic since they trust their source.” Honesty, she notes, is therefore certification bodies”. central to a successful business. “If you say your products are Further to the above, she states that another of her key organic, then they should be 100% that. Don’t take shortcuts. personal objectives is to help vulnerable individuals in society When customers sense or discover that they are being lied to, by providing a safety net for them. “I was once in the same you will lose them.” position and it touches my heart deeply knowing that the But sincerity, notes Kibarah, also entails having a healthy only need to bridge the gap is to assist and empower the working relationship with other players in the market. “If my vulnerable and give them hope in difficult times,” she reveals. customers are looking for organic products that I don’t have, I am always If you say your products are organic, then they willing to recommend those from should be 100% that. Don’t take shortcuts. When other companies.” She adds: “I also let customers know that my products customers sense or discover that they are being lied are not an end [unto] to themselves. to, you will lose them. They complement healthy lifestyle choices like exercising, drinking lots of water, eating vegetables and avoiding Like many individuals who started from scratch, she says she processed or fatty foods.” is a firm believer in teaching the whole village to fish rather than to give them fish. She says: “Working together with an More Still Needs To Be Done identified home, orphanage or group, we try and see if we can Amidst a flurry of industry recognition awards in her find ways to assist them to develop something that will help home country and on the continent, which include Africa’s create sustainable means of income generation.” Most Influential Woman in Business and Government Award Another goal, she concludes, is to make the different in 2013, Kibarah says that a lot more still needs to be done. groups self-sustainable even as they wait for well-wishers to “Awareness on organic food is still low. Most people can’t tell come and assist them. “Some of these homes have graduates the difference between them and other products. This needs or diploma holders whom I employ as casual employees to be addressed to create more demand for the products. I when there are openings. Educated young adults who are plan to take up organic farming and grow crops for the local of age and need employment when their time to leave the and export market,” she says. She also wants to set up a base home nears are referred to my associates in the network when for Kate’s Organics in South Africa and Nigeria. I cannot take them on or my hands are full,” she points out.
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2015/16
Dr Richard Maponya, Chairman of the Maponya Group
After more than 65 years in business, any one individual would be tempted to think that an industry pioneer would be taking the back seat; watching the younger generations take the baton forward. But that is far from the truth for retail and wholesale guru Dr Richard Maponya, Chairman of the Maponya Group, a formidable person who is well known in South Africa and beyond for revolutionising the township retail and wholesale space as we know it today.
Additional Source: www.thepresidency.gov.za
The Township
Business Revolutionary by Andrew Ngozo
P
erhaps the first point of departure should be to state that Dr Maponya is the man who built a world class mall in Soweto. “This changed the lives of more than five million South Africans and continues to do so up to this day. The mall has become a catalyst for all the malls in South African townships,” he says of what he regards as one of the greatest highlights of his career. He adds that the success of that first big project only served to spur him on vis-à-vis township economic development. Dr Maponya went on to develop over 100 factories, office parks and malls in South Africa. It appears that Dr Maponya had found his life calling in the entrepreneurial world in an era when township developments were rare. He went on to break new ground; developing two world class dealerships for Toyota and Volkswagen. Again,
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these were the first of their kind in modern day South Africa. He states: “I went on to venture into [yet] another successful new venture. This entailed poultry farming- supplying eggs to over 25 hospitals and retail stores in the greater Pretoria area.” Fighting Poverty and Unemployment Success is not for the self, he explains. “It is for the communities in which we live and for the benefit of humanity. As such, I believe in the axiom that says: ‘teach a man how to fish and he will have food for the rest of his life rather than give him fish and he goes hungry after the meal’. Selflessly, I share, from time to time, my legacy of having started from zero and building a sustainable business.” Dr Maponya elaborates that he is constantly encouraging people to be hands on, relentlessly training them on the philosophy of waking up every day and using one’s hands to create job opportunities in order
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to prevent poverty and unemployment. He notes: “This is critical because developing one person has a knock on effect in the development of others.” Even after more than 65 years as an active businessman, Dr Maponya directly influences the bottom line of all his ventures. He says this is done by being always on the lookout for new business and being mindful of the need for innovation in current operations in a fast moving and dynamic business world. Inevitably, if done right, this leads to efficient cost management and better margins. He adds that indirectly, he influences the bottom line as well. “Constant mentoring management is key for that is one certain way to make one’s business units profitable,” he points out. With such a successful business track record, it would do one well, then, to follow Dr Maponya’s words of advice
A Tycoon’s Humble Beginnings Born Richard John Pelwana Maponya in the then Northern Transvaal (Limpopo) in 1926, Dr Maponya was trained as a teacher. He started working in the 1950s at a clothing company seeking an educated black person to sell garments to miners and rural people. He proved an adept buyer of material that would appeal to black people. Just by touching a piece of fabric, he says, he could tell whether it was from Britain, Germany or Italy, etc. The department’s white manager took a liking to Dr Maponya, but told him: “You can’t become a general manager because you can’t oversee white people – there’s a glass ceiling over your head.” However, the manager gave him soiled clothing and cloth samples, which he sold in his spare time, allowing him to build up capital.
He adds that the success of that first big project only served to spur him on vis-à-vis township economic development. en-route to success. He says that the fundamental ingredients include setting achievable targets that are agreeable to all role players; constantly monitoring performance against actual targets, supporting the team whenever needed to achieve their own set targets as well as [always] rewarding people for achieving or exceeding targets. In addition, last, but not least, a leader needs to personally engage and communicate with their personnel. At Dr Maponya’s ripe ‘old’ age, wouldn’t retirement be the obvious thing? The answer, according to him, is an emphatic ‘o’ for there is a lot that still needs to be done for the people of South Africa. He maintains: “I am busy building an institution; the Richard Maponya Institute for Skills and Entrepreneurship, to train people and award skills related qualifications. The institution will target school leavers who want to pursue entrepreneurial activity. It is [already] registered and ready to do business. This will enable young people to find employment instead of waiting on the government for a handout.” With this institute, Dr Maponya’s ultimate goal is to “reduce unemployment and empower the society”.
Dr Maponya attracted buyers for his clothing, using a ’paywhile-you-wear’ scheme, that was unusual at the time. When his patron retired in 1956, his supply of second-hand clothing ended and he resigned. When he engaged himself in business around 1956, Maponya was living in Soweto. He wanted to open Soweto’s first retail clothing store, but was denied a licence. In 1957, he went for legal advice to Nelson Mandela and Oliver Tambo, who then ran Johannesburg’s first black law firm, but they were unable to help as their own conditions were too restrictive. Fortunately, the apartheid-era bureaucrats did give him a licence to sell foodstuffs, which were to form the kernel of his fortune. He became a member of Johannesburg African Chamber of Commerce in the mid-1950s when it was formed and finally become its president. In the early 60s the Johannesburg African Chamber of Commerce under Maponya initiated the drive to unite small businessmen nationally. This initiative led to the formation of National African Chamber of Commerce (NACOC) in 1964 of which Dr Maponya became the founding president. And thus the journey to revolutionise the South African township economic space started.
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InConversationWith What occupies your time outside work? Entertaining guests for dinner parties and weekend brunches; cooking; gardening; visiting wine farms for lunch and wine tastings; traveling up the coast with my fiancé and friends; spending loads of time with the family; trail running, mountain hikes, yoga; Saturday courses (I recently completed my Interior Design and Decor course) and drawing. Favourite food? Probably leaning towards French – Asian fusion.
JD
Jade Allen Equipped with over twelve years’ experience in communications, marketing and events, Jade Allen, Managing Director of Red Carpet Concepts has represented a plethora of leading South African and international bespoke and blue chip accounts from luxury brands, food and wine, hospitality, fashion and beauty to humanitarian, CSR, property and health sector enterprises, accumulating a wealth of knowledge across the board.
What is the number of employees in your organisation? Currently four permanent and one freelance, however we are looking to hire What does a typical working day entail? A mix of team and client meetings, press release writing and dissemination, liaison with influential press, site meetings with third party event suppliers and stakeholders, social media activities, photography and videography on occasion, website updates, design of marketing material and a whole lot more.
Favourite music? Pink Floyd, The Doors, Jimmy Hendricks, The Producers, Purity Ring, Santagold, café style lounge music, deep house for a bit of a party vibe. What was your dream job as a child? An interior designer for sure. What led you to your current career path? After double majoring on scholarship at UCT, studying English Literature and the Performing Arts I moved to New York and Aspen Colorado for a gap year. Upon my return I dabbled around in various jobs whilst acting and modelling, until I landed a great position as Group Communications Manager with Gatsby International Hotels based at the Lanzerac in Stellenbosch. From there I worked for a few other PR agencies before starting up my own. Three words to describe your leadership style? Enthusiastic, uplifting and responsive Businessperson you most admire? Sir Richard Branson What’s the best decision you ever took? Starting up my company What advice would you give to someone aspiring to your position? Hire a business coach. Stabilise the company’s foundations before you grow it. Document all accessible measurements in order to continuously benchmark. Stay inspired. Set dreams and goals to work towards, without written down goals you’ll plateau. Take accountability. Share your wins with the team. What do you know for sure? I know I will achieve my goals and fulfil my dreams.
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