South African Business Integrator - SABI - Issue 1 - June 2015 - August 2015

South African Business Integrator Issue 1

S A B I

South African Business Integrator ALIGNING BUSINESS WITH GOVERNMENT June/August 2015

June/August 2015

The right to strike The impact of xenophobia Coaching for success SA’s green economy

www.sabimag.co.za

Cover story

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Productivity SA – Increasing productivity to grow SA’s economy Current Affairs I Economic Development I Business Integration SABI June August 2015 Issue.indd 61

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COVER STORY

Improving productivity Productivity SA’s aim is to increase productivity levels to help the economy to grow.

It does this by leading and inspiring a competitive and productive South Africa.

PRODUCTIVITY SA is a Schedule 3A Public Entity and its governance board includes representatives from labour, government and business.

Productivity SA’s mandate is primarily to enhance the productive capacity of South Africa by meeting the following objectives: Promoting a culture of productivity in workplaces; developing relevant productivity competencies; facilitating and evaluating productivity improvement and competitiveness in workplaces; maintaining a database of productivity and competitiveness systems, as well as publicising these systems; and undertaking productivity-related research and support initiatives aimed at preventing job losses.

Our vision is to lead and inspire a competitive and productive South Africa. Our mission is to improve productivity by diagnosing, advising, implementing, monitoring and evaluating solutions aimed at improving South Africa’s competitiveness. Our core organisational values include service excellence through the implementation of relevant solutions; market leadership through creative and innovative solutions, working together as a team to achieve common goals, and partnering with stakeholders pursuing solutions to South Africa’s productivity challenge.

The company utilises its programmes, such as Turnaround Solutions, Workplace Challenge, and Productivity Organisational Solutions to attain its objectives.

Job Saving The mandate of the Turnaround Solutions department of Productivity SA is to decrease the impact of job

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losses and/or retain jobs by sustaining companies.

The Declaration of the Presidential Jobs summit (October 1998) outlines a Social Plan that aims to avoid job losses and employment decline wherever possible, and seeks to actively manage retrenchments and to ameliorate their effects on individuals and local economics when large job losses are unavoidable.

The programme is intended to provide technical assistance to different organisations and companies to increase productivity, profitability and service, as well as to save and retain the current jobs.

As a proactive solution, Productivity SA identifies companies’ not in distress and establishes collaborative structures between management and employees, called Future Forums. Productivity SA capacitates Future Forums to establish early warning systems (EWS) and manage their problems proactively.

Implementing improvement principles The Workplace Challenge (WPC) programme is aimed at helping stable manufacturing, mining, agriculture, forestry, and service businesses in South Africa to improve their competitiveness.

The WPC is a joint initiative of the Department of Trade and Industry (dti) and the National Economic Development Labour Council (Nedlac). This initiative, which focuses on best operating practices, world-class competitiveness, and workplace relations, is managed

by Productivity SA. The Workplace Challenge is a 24-month programme that aims to add value to the South African economy.

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COVER STORY

Since 1995, the programme has helped more than 250 companies, employing more than 50 000 people.

The WPC actively encourages and supports change in the workplace to improve company performance, productivity and job creation. It also promotes four characteristics of world-class South African companies: • Leadership practices that foster teamwork, participation, continuous learning and flexibility by involving those on the shop-floor in the improvement of company performance.

• The simultaneous improvement of quality, speed, cost, delivery and morale (QCDM).

• Facilitating sharing lessons that companies learned • It exposes small companies to world-class competitiveness principles in a way that they could not otherwise afford by involving them in a cluster with large companies.

Productivity skills and competencies The Productivity Organisational Solutions department of Productivity SA runs various training modules and workshops, such as the Business Performance Improvement Workshop (BPIW) to enhance productivity skills and competencies. The BPIW is an action learning solution developed to assist Small and Micro Enterprises (SMEs) and cooperatives to implement systems and procedures that will result in waste elimination, increased sales, reduced operational costs through speed and quality improvement, maximised profits, and an early warning system (EWS) to detect distress prior to its arrival.

The objectives of the BPIW are to improve profitability, growth and employment creation within these sectors.

Provision of productivity knowledge Productivity SA produces an annual statistics booklet.

The productivity statistics report is a useful decision making tool for policy makers, economists, sociologists, business analysts, academics and labour unions. An understanding of the importance of these statistics makes their application more appropriate for the effectiveness of companies in the private sector and government at large.

These statistics have also assisted companies to be more innovative and continuously improve their production processes. Government departments continue to benefit by way of improvements in service delivery.

gauging how well available resources are employed to generate well-distributed wealth (tangible and intangible).

All South Africans (not only workers in the formal sector) are central to this process.

A productive economy The challenge remains for South Africa and Productivity SA to work to improve the country’s productivity. Longterm international statistical trends show a strong correlation between national productivity and the level of employment. The more productive an economy is, the more competitive it is in global markets, often causing unemployment rates to fall.

The more productive an enterprise is, the more income it can generate and allocate to new investments and creating new jobs. Therefore, productivity is not only a vital indicator of where to invest and create more jobs, but also the source of funds for creating new jobs and redeploying people. n

Interesting facts • • • • • • • • • •

Tripartite organisation made up of government, labour, and business Government subsidised programmes to assist the public and private sectors, and labour to improve productivity levels The only official productivity organisation in South Africa Turnaround solutions have saved over 160 000 jobs since inception Saved more than 450 companies from closing SMME development and training Value chain competitiveness and workplace challenge to improve competitiveness Productivity SA partners with the IMD to publish the world competitiveness report Productivity SA produces the annual productivity statistics report October has been declared national productivity month

Productivity awards Productivity SA offers productivity awards that support and enhance productivity. The awards’ objectives are to promote productivity within the industry, to raise awareness about the potential role of productivity in economic growth and development, to promote Productivity SA programmes and outcome-based solutions that assist ailing companies, and to increase South Africa’s competitiveness.

The awards’ concepts are based on developing productive capacity in a broader social context, and

Gauteng T + 27 011 848 5300 E info@productivitysa.co.za Cape Town T + 27 021 910 1591 E info_cape@productivitysa.co.za Durban T + 27 031 268 9770 E info_durban@productivitysa.co.za W www.productivitysa.co.za

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Contents Improving productivity .................................................................. 2

■ FEATURES Coaching for success ................................................................10 The right to strike ........................................................................12 Localising like a pro ....................................................................14 SA’s green economy ..................................................................16 Keeping the lights on .................................................................19

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■ COVER STORY

Troubled waters – a high risk to business.............................20 The impact of xenophobia on brand SA ................................24

■ MARKETING & COMMUNICATION Mobile business ..........................................................................28 The power of social media marketing.....................................32 Making the most of direct marketing ......................................35

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■ HUMAN RESOURCES Stolen hours – what’s the cost to the economy?................36 Making better HR decisions .....................................................40

■ FINANCE & BANKING Protecting your personal information .....................................42 Household savings impact economic growth ......................44

■ ECONOMY

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Economic outlook – what the analysts expect .....................46

■ ENTREPRENEURS SME confidence levels ..............................................................48 Avoid making foolish business mistakes ...............................50

■ VENUE REVIEW The River Club revamped..........................................................54

■ ADVERTORIALS Keeping the fraudsters at bay ..................................................22

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Specialised fencing for Africa ..................................................26 Collaboration for socio-economic development ..................30 Securing SA’s energy resources .............................................38 The voetstoots debate ...............................................................52

■ BOOK REVIEW Business books reviewed .........................................................56

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South African Business Integrator

S A B I

South African Business Integrator

Issue 1

ALIGNING BUSINESS WITH GOVERNMENT June/August 2015

PUBLISHER

MEDIA XPOSE

June/August 2015

Excellence in exposure

The right to strike The impact of xenophobia Coaching for success SA’s green economy

www.sabimag.co.za

Cover story

www.sabimag.co.za

Productivity SA – Increasing productivity to grow SA’s economy Current Affairs I Economic Development I Business Integration

Cover Credit: Productivity SA, Bongani Coka, CEO

Tel: +27 21 424 3625 | Fax: +27 86 516 7277 PO Box 15165, Vlaeberg, 8018 EDITOR Emma Dawson editor@sabimag.co.za EDITORIAL CONTRIBUTORS Ben Bierman Christie Koorts Christo Botes David Hunter Ian Henderson Johan Louw John Beale Kalyani Pillay Maarten Ackerman René Grobler Rich Mkhondo CONTENT MANAGER Melanie Taylor artwork@mediaxpose.co.za DESIGN AND LAYOUT CDC Design carla@cdcdesign.co.za PROJECT MANAGER Elroy van Heerden elroy@sabimag.co.za

Pictures Shutterstock

ADVERTISING SALES CONSULTANTS Saleem Ismail saleem@sabimag.co.za Micheal Makhawu micheal@sabimag.co.za Nicole Emin nicole@sabimag.co.za CHIEF FINANCIAL OFFICER Shaun Mays shaun@mediaxpose.co.za

SABI @SABImagazine

Scan here to access our website: www.sabimag.co.za

ACCOUNTS ASSISTANT Melany Smith accounts1@mediaxpose.co.za DISTRIBUTION/SUBSCRIPTIONS A-eeshah Davids distribution@mediaxpose.co.za

PRINTED BY Paarl Media Paarl www.paarlmedia.co.za

S A B I 6

South African Business Integrator ALIGNING BUSINESS WITH GOVERNMENT

Disclaimer: The views expressed in this publication are not necessarily those of the publisher or its agents. While every effort has been made to ensure the accuracy of the information published, the publisher does not accept responsibility for any error or omission contained herein.

Consequently, no person connected with the publication of this journal will be liable for any loss or damage sustained by any reader as a result of action following statements or opinions expressed herein. The publisher will give consideration to all material submitted, but does not take responsibility for damage or its safe return.

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EDITOR’S L E T T E R

Cells of the economic body

“

Economic depression cannot be cured by legislative action or executive pronouncement.

Economic wounds must be healed by the action of the cells of the economic body – the producers and consumers themselves.”

Herbert Hoover

THE much-anticipated launch edition of SA BUSINESS INTEGRATOR is finally out. It’s taken months in the planning but we hope you agree it’s worth it.

The primary focus of this magazine is to synchronise business information and cultures, and align strategies and goals between the public and private sectors in South Africa. SA BUSINESS INTEGRATOR’S overarching aim is to inform and educate industry leaders about business objectives, strategic planning, current affairs, good management practices and governance, sound financial management practices and, ultimately, to bridge the gap of transformation and transparency between the public and private sectors.

Our hope is that businesses will use this publication as a platform to share business-to-business information, innovations, services and advice with our readers. Of equal importance is providing advertisers with a medium through which they can confidently reach precisely the category of readers likely to be interested in and therefore likely to purchase their products or services.

There’s an economic thread running through this launch edition, which can be summed up in a quote by the 31st President of the US, Herbert Hoover: ‘Economic depression cannot be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body – the producers and consumers themselves.’ While South Africa continues to contend with its power crisis, a weakening currency, trade disputes, volatile global markets, minimal household credit growth, and a depressing job market, the economic outlook remains persistently bleak. However, the general consensus is that things will get better, but probably not before they get worse.

So, fasten your seatbelts (if you haven’t done so already), implement a sound strategy and make it stick. Everything has a cycle and this, too, shall pass. Your most effective course of action is to take a proactive position based on long-term goals. Offer outstanding products and consistently excellent customer service.

There’s a lot of good in this beautiful country that we need to protect and nurture, as well as a challenging but exciting opportunity for change.

I’d love to hear from you. Drop me a line, send me your news and feel free to engage with me about content you’d like to read, information and opinions you’d like to share, and topics you’d like covered. The SA BUSINESS INTEGRATOR team is at your service!

We love creating magazines and hope you enjoy this read.

editor@sabimag.co.za

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FEATURE

Coaching for success

By Emma Dawson

It makes sense that coaching for success is becoming more common in boardrooms around the globe. If you consider sports teams, there’s no world championship side that doesn’t use coaching as a fundamental aspect to its success. It’s not because their athletes aren’t talented, they are. It’s because a coach helps individuals to see a bigger picture, the team, and focus their efforts on what really matters to become great. Businesses need similar assistance to stay ahead of the pack.

WITH ever-more demanding business environments executives are hard pushed to devote the time and energy to their own development as leaders. In fact, most struggle to fulfil the responsibilities of their positions, let alone being able to reflect on their experiences or to implement change to satisfy best management practices.

Executive coaches develop a one-on-one relationship with C-Suite executives and senior level managers. They focus on personal and professional development and assist executives to deal with the issues they wish to work through. Additionally, coaching uses objective feedback models to drive executives’ thought processes towards reaching their goals.

The benefits of coaching Executive coaching has many benefits and is used for executives who are transitioning or being promoted and need to prepare for a new role or different area of responsibility. In addition to this, once identified, highly-

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talented individuals will also benefit from coaching to accelerate their potential.

Organisational change can also be very disruptive to personnel, and coaching is proven to assist in this instance. In fact, it can be said that executive coaching is one of the most important methods for improving the skills of leaders and directors. It’s also proven that executive coaching offers a return on investment as well as a positive impact on organisations’ bottom lines.

Executive development is a critical aspect of all organisations and often one that is most overlooked.

Why employ a coach?

Most high performers (senior managers and C-Suite executives), generally from large corporates and SMEs, are busy, engaged individuals who fly through performance reviews. They earn big salaries and have spent a long time in the corporate environment. They ooze credibility, have strong track records and vast expertise – their futures are mapped out for them.

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FEATURE

However, talking to the owner of a leading executive coaching business, it’s evident in his experience that these leaders often have a sense that they’re doing time – their careers are moulded by the company they work for and by their company’s needs and organigram. It’s often the case that little thought is given to whether the role they’re employed to do is satisfying or of meaning to them. Their jobs have high output and responsibility and, in this fast-paced environment, it’s easy for executives to lose meaning, purpose and gratification. They begin to disconnect with what they’re doing. They resign their identity to the company’s organigram, structure and requirements.

Added to this, most of these executives have complicated lives that need financing – kids in private schools, and even multiple homes and cars – all of which make it difficult to even consider change or following dreams.

Some of the most successful coaching experiences come to those who feel ‘off track’ – either through careers that are moulded by the organisations they work for, or by the politics of an organisation, or changes within the company that leave them feeling less engaged but with little or no time to adapt their circumstances. Maybe these individuals are ready to do something different but are not sure what that is? They may even be looking for change or have important goals they want to reach but don’t know how to go about attaining these. Executive coaching focuses on helping individuals to go from where they are now to where they want to be.

According to the International Coach Federation (ICF), the benefits of coaching include: • Increased productivity: Professional coaching maximises potential and, therefore, unlocks latent sources of productivity. Statistics show that work performance improves by 70%, business management improves by 61%, time management improves by 57%, and team effectiveness improves by 51%.

• Positive people: Building the self-confidence of employees to face challenges is critical in meeting organisational demands. Statistics reveal that, through coaching, self-confidence improves by 80%, relationships improve by 73%, communication skills improve by 72%, and there’s an improvement in life/ work balance of 67%.

• Return on investment: Coaching generates learning and clarity for forward action with a commitment to measureable outcomes. The vast majority of companies (86%) say that, at least, they made their investment back.

The ICF maintains that professional coaching bring many wonderful benefits – fresh perspectives on personal challenges, enhanced decision-making skills, great interpersonal effectiveness, and increased confidence.

And, the list doesn’t end there. Those who undertake coaching can also expect appreciable improvement in productivity, satisfaction with life and work, and the attainment of relevant goals.

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The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it.”

Theodore Roosevelt

The competence of the coach is an important factor in determining coaching’s success. Coaches should have a philosophy of coaching for sustainable change and their coaching commitment should be transformational rather than transactional.

Be mindful when appointing a coach The ICF also warns that when looking to hire a coach, keep the following in mind: • Educate yourself about coaching. Thousands of articles have been written about coaching in the past few years.

• Know your objectives for working with a coach.

• Interview three coaches before you decide on one.

Ask each about his or her experience, qualifications and skills. Also ask for at least two references.

• Remember, coaching is an important relationship.

Make sure a connection exists between you and the coach you choose.

Why choose an ICF accredited coach?

ICF’s credential programme’s mission is to protect and serve consumers of coaching services, to measure and certify the competence of coaches, and to inspire pursuit of continuous development.

Additionally, a coach accredited by the ICF has completed stringent education and experience requirements, and has demonstrated a strong commitment to excellence in coaching.

A word of warning – if you’re considering hiring a coach, be diligent about asking whether he or she has been specifically trained in coaching skills and currently holds, or in the process of acquiring, an ICF Credential.

Don’t be misled into thinking someone is a competent coach because he or she has other professional credentials or sets high fees.

Most organisations believe that when an individual reaches executive or senior status that they should inherently be able to act under pressure, inspire and implement ideas, keep their skills sharp and current, and have all the answers. In reality, they can eventually get there on their own but engaging a qualified executive coach exponentially increases the time it takes for the executive to get there, as well as the ability for the executive and the company to sustain the change. n

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FEATURE

The right to strike While most people support the rights of workers to strike and bargain collectively, it’s imperative that South Africa’s wage negotiations are resolved as quickly as possible, and preferably before strike action takes place. EMMA DAWSON talks to MAARTEN ACKERMAN from Citadel about the impact of strike action on South Africa’s economy.

STRIKES result in a loss of income and very often even jobs, and the longer they continue the more income and potential jobs are lost. Workers cannot afford to go without pay for too long, businesses need to remain productive, and major economic disruption needs to be avoided at all costs.

The term ‘strike season’ is a little misleading as wage negotiations and strike action isn’t confined to any particular time of the year, but rather based on the financial year end of trade unions’ clients. ‘We can anticipate which sectors are likely to undertake wage negotiations, which may lead to possible strike action based on the sector’s last period of negotiations,’ says Maarten Ackerman, Advisory Partner and Investment Strategist at Citadel. ‘Trade unions generally attempt to negotiate wage deals for a few years, which are usually based on when wage agreements need reviewing,’ he adds.

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The job of a trade union is to represent workers/labour, and to ensure that workers get a fair deal – strike action is a last resort and only undertaken when unions feel an offer isn’t fair. ‘There’s a lot of negative sentiment about trade unions, not just in South Africa but also around the world,’ Ackerman points out. ‘When workers strike, many trade union members lose income and, depending on the length of the strike, this has a major impact on income and spending, the social wellbeing of strikers’ families, on the businesses where workers’ normally spend their money, on transport, on taxes paid and collected by goverment, and on production and exports, all of which weighs heavily on the economy.

‘Last year, as a direct result of the protracted platinum mine and other strikes, South Africa only generated 1.5% growth compared to global economic growth of slightly more than 3%. For South Africa, growth below 2% is recessionary and puts us in a very vulnerable position,’

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Ackerman maintains. With growth below 2% we cannot resolve our structural issues, reduce poverty, create jobs or help government to balance its budget.

In addition to the five-month strike by mine workers, last year also saw two more months of strikes affecting post office workers and the motor vehicle sector. ‘By the end of the seven months of striking we’d lost seven million production days,’ Ackerman points out. ‘This is the highest number of lost production days we’ve seen on record. In the past, numbers have steadily been increasing but last year saw a massive spike. It’s these missing production days that lead to our economic shortfall,’ he adds.

‘And, if last year’s strikes didn’t hit us hard enough, 2015 has seen the return of mass power outages, further weakening the economy and compounding our growth deficit from last year.’

Are strikes worth it? ‘If you look at the miners’ strike of 2014, for the workers the answer is probably no, when comparing the increase they received to the wages lost over the strike period. However, the trade unions will argue that they’re happy with the deal – it sets a precedent for future generations and wage negotiations.

While the increase may not compensate for the losses over the short-term, the fundamental principle of winning is important for the future from a trade union perspective,’ Ackerman suggests.

While we may feel that South Africa is really hard hit by strike action, Ackerman points out that strike activity is as strong in the US and Europe than it is in South Africa.

We’re also less aware of how other countries fair in terms of strike action because their strikes seldom feature on the media’s front pages. ‘Sadly we have a devastating history of violent strikes in South Africa, which only compounds the misery they cause. It’s not that we strike, but the social tension that gets these stories onto the front pages,’ Ackerman comments.

Another differentiator between South Africa’s strikes and those in the US, for example, are that they have very different regulations relating to their strikes and, in particular, the duration allowed for a strike to continue.

The protracted and unproductive strikes we experience in South Africa are almost unique,’ Ackerman explains.

‘Our government is all too aware of the impact these strike have on factors such as our workforce, economy, currency, interest rates, and foreign investment,’ Ackerman confirms.

And, talking of foreign investment, our strikes are not helping in this regard, leading to negative foreign investor sentiments. This is highlighted by South Africa being last in the cue for Foreign Direct Investments (FDI)

when compared to other BRICS nations and some in sub-Saharan Africa. Over the past few years, Nigeria outweighed South Africa by attracting much more foreign investment as a percentage of GDP. This is also reflected in the latest AT Kearney FDI Confidence Index where South Africa dropped from 13th place to below 25th.

‘In the eyes of foreign investors, we’re struggling with a lack of labour flexibility, government inefficiency and corruption, as well as logistical issues around electricity and water supply. Adding to this negative sentiment is the amount of red tape applied to these issues,’ Ackerman maintains.

There is much positive talk coming from government, such as the National Development Plan that aims to eliminate poverty and reduce inequality by 2030, discussions around changing labour reforms and, directly relating to legislation around strike action, Cyril Ramaphosa’s wish to give labour the option of a confidential vote (to prevent intimidation) as to whether or not they want to strike. On the other hand, conflicting noises – land reform and nationalisation, for example – are not adding to foreign investor confidence.

‘It’s a fine line for government to walk,’ says Ackerman.

‘However, no matter how we look at it, stalling South Africa’s economy through prolonged and unproductive strike action has a far reaching impact on South Africa as a brand, and as a whole. ‘There’s pain on both sides, especially when there are unrealistic expectations to begin with. It’s the disappointment that causes the pain. If negotiations are realistic to begin with then both parties benefit. I believe it’s all about how relations between labour and businesses are managed,’ Ackerman concludes. n

Maarten Ackerman, Advisory Partner and Investment Strategist, Citadel

Citadel is a specialist wealth manager with over 20 years’ experience in providing bespoke solutions for high net worth individuals. Through character-rich engagement and building strong relationships based on mutual respect and trust, Citadel enables its clients to explore the true potential of their hard-earned money. The best fiduciary, risk and asset management expertise is used to strategise, implement and manage a financial roadmap for its clients and their family.

Visit www.citadel.co.za for more information. @Citadel SA

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FEATURE

Localising like a pro

By Ian Henderson, chairman, CTO and co-founder of Rubric

If you’re thinking of setting up shop in a foreign country, the question needs to be asked – have you thought about adapting your products and marketing for local consumption (aka localisation)?

IF you think that your product doesn’t need localising, or that it speaks for itself (after all, everyone in the world understands English), you may be wholly unprepared for the adventure of going global.

If, on the other hand, you’re fully aware of the importance of localising products, support and marketing to succeed in new markets, read on – but know that you may still need help, as the Localisation Maturity Model (LMM) shows.

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Localisation maturity model

The LMM was created in 2006 by Common Sense Advisory, a US-based market research firm, in adaptation of the software industry’s Capability Maturity Model. It remains a classic reference model of localisation best practices, as demonstrated by successful projects.

The LMM helps C-level executives appraise and improve a company’s ability to localise. Armed with LMM templates, they can greatly improve their chances of

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FEATURE

producing high-quality localisation outputs, within budget, at scale and on time – every time.

The model describes five positive stages of maturity, while recognising that different departments or key individuals may be at different stages of maturity within an organisation. We would add a sixth, negative stage, where companies or parts of it are so in denial about the need for localisation as to be in minus territory.

How do you rate?

Where does your company fall on the continuum?

• Reactive – ad hoc response to business demands for multicultural support, few defined processes, and lots of individual heroics.

• Repeatable – basic project management processes are in place, external translation resources and engineering resources are used.

• Managed – documentation, standardisation, integration and centralisation of localisation projects.

• Optimised – increasingly scientific approach (detailed process, quality, and efficiency metrics), use of localisation- and language-centric tools.

• Transparent – internalisation of localisation as a natural part of code and content life cycles, business planning, quality management, customer interaction and employee experience, and continuous process improvement.

“

If you think that your product doesn’t need localising, or that it speaks for itself, you may be wholly unprepared for the adventure of going global.”

localisation is part of a World Cup event, it is unlikely to be a one-off and should be part of the ongoing corporate thought process – for example, manuals and websites will have to be updated constantly from now on.

But at the repeatable stage, things can still be pretty disorganised – somewhat decentralised, with elements of reactivity. At this stage, companies begin to realise a need for a managed approach to impose some level of standardisation in development and design across the business to streamline web and software localisation.

However, a managed approach is easy enough if you’re managing four language projects, but not if the task is 40.

At the optimised stage, processes and procedures take on increasing importance.

As localisation becomes an everyday reality for multinationals, the last stage, transparency, comes into play.

Where to now?

Now that you know the company as a whole scores 1.5, while some individuals are ahead of the curve at 3.5 and others in negative territory, where do you begin?

The answer is: not in any one place but everywhere at once. The model’s language makes it clear that localisation is neither an engineering issue nor a question of marketing – it is the entire company’s problem. Merely translating your website into German won’t help if the sales team or customer service desk gets a call from a German customer and cannot answer it.

In other words, localisation is a strategic issue.

Companies have to ask themselves why they want to go international and, accordingly, what practicalities will influence the form and extent of localisation they can best manage. n

Growing pains Each step along the continuum is progress but comes with costly lessons. A company in the reactive stage is building a C-level understanding of the problem but may lose a contract or two first. This may not be the worst thing for its reputation in a new market. What if it had won? Where are the local-language product manuals and training materials? What about sales and support staff conversancy with the target language?

In the reactive stage, localisation is a series of hurdles rather than competitive opportunities. The ideal is to move on quickly from it to a repeatable posture. Unless

Ian Henderson, Chairman, CTO and Co-Founder of Rubric

Rubric provides language services that helps companies speak directly to the hearts of their customers. It specialises in document translation, DTP of translated content and localisation of software and websites, delivered in more than 100 languages through an extensive network of independent translation professionals and software engineers.

Rubric’s headquarters are in Edinburgh, Scotland, with offices in San Jose (CA), Danbury (CT) and Cape Town (South Africa). For more information, visit https://rubric.com/za.

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FEATURE

SA’s green economy South Africa’s green economy – what is it all about and why is it so important?

EMMA DAWSON reports.

AS natural resources dwindle and environmental risks and ecological scarcities escalate, international attention continues to mount around the fundamental importance of achieving inclusive growth and enhancing social equity. And, as the prevalence of global environmental crises continue, our generation not only faces the challenges these disasters pose but also an opportunity for change.

South Africa has long considered the green economy as one of the key tools for transitioning to a low-carbon, resource-efficient and sustainable economy with a potential to create jobs across many sectors.

‘As a responsible global citizen, the South African government has set short-, medium- and long-term goals towards achieving an environmentally sustainable, climatechange resilient, low-carbon economy and just society,’ comments Albi Moise, spokesman for the Department of Environmental Affairs.

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South Africa’s vision relating to the green economy is outlined in the National Strategy for Sustainable Development and Action Plan, the Green Economy Strategy, the New Growth Path, the National Development Plan, and the National Climate Change Response Policy, all of which outline the green economy as one of the key priority areas.

Championing transition ‘In May 2010, the South African government hosted a Green Economy Summit to set the stage for the formulation of a Green Economy Plan. Under the summit’s overarching theme, ‘towards a resource efficient, lowcarbon and pro-employment growth path’, the country made the decision to champion the transition to a green economy,’ Moise points out.

‘Through the Green Economy Strategy we identified

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FEATURE

eight pillars for intervention – green building and the built environment; sustainable transport and infrastructure; clean energy and energy efficiency; resource conservation and management; sustainable waste management and practices; agriculture, food production and forestry; water management; sustainable consumption and production,’ Moise explains.

South Africa has made great strides in the implementation of these eight pillars. ‘Our Renewable Energy Independent Power Producer programme presents a significant opportunity to reduce the carbon intensity of South Africa’s electricity provision and has considerable potential to hasten the transition to a lower carbon economy. By May 2012, we approved an investment of approximately R73-million for 19 wind, solar and hydropower projects to boast our clean energy, and the government has rolled out approximately 400 000 solar water heaters in the country with the view to promoting energy efficiency,’ he adds.

Putting its money where its mouth is, the Department of Environmental Affairs moved to a green building that, among other elements, scores highly for its efficient energy consumption, use of environmentally-friendly materials, a precedent setting energy consumption mechanism that has not yet been implemented elsewhere in the construction sector, efficient and state-of-theart water saving devices, on-site grey-water treatment works, emissions reduction systems, and a solar energy innovation system. The building received a 6 Green Star SA rating, the first for a South African government building, from the Independent Green Building Council of South Africa (GBCSA).

In November 2011, South Africa announced its Green Economy Accord – a social pact between government, labour unions, private sector and civil society – to advance the country’s New Growth Path with the aim to create 300 000 new green jobs by 2020. These initiatives demonstrate a strong political will and government commitment to foster a transition to a more inclusive and sustainable path of growth and development.

Investing in green initiatives Furthermore, in 2012, government established the National Green Fund with an allocation of R1.1-billion to provide catalytic finance to facilitate investment in green initiatives – this includes funding green economy project initiation and development, research and development, and capacity building initiatives.

‘Great impact is being realised with respect to waste management where an increase in collection and recycling of over eight million kilograms of waste has been achieved through demonstration projects.

Additionally, over 30 000 hectares of conservation area has been protected with landowners becoming keenly involved.’

Green skills training opportunities are also being achieved in most projects, with at least 6 300 individuals directly trained as a result of Green Fund projects.

“

As global environmental crises continue, our generation faces the challenges they pose, as well as an opportunity for change”

‘Green skills training is expected to increase substantially through replication and scale-up of the portfolio. In terms of technological innovation, the portfolio has seen the development of prototypes in renewable energy and information technology application areas,’ Moise claims.

Further evidence of government’s inroads into establishing a strong green economy was the introduction, in 2013, of the Department of Environmental Affairs’ zero emission electric vehicles, known as Green Cars. Considered a ground breaking pioneering initiative for the South African automobile market, these cars are powered by solar energy from a high-tech assembly of solar tracking panels housed at the Department of Environmental Affairs rather than from the national grid.

‘South Africa has made a leap towards the attainment of a sustainable transport system through the development and systematic integrated public transport system, such the Gautrain and the Bus Rapid System (BRT). This integrated approach considered the interrelationship between transport, the environment, the economy and society. Carbon emissions from Gautrain are considerably lower per passenger transported than for private vehicles, notwithstanding the higher speeds and the benefit of avoiding traffic incident,’ Moise enthuses.

Regarding the management of natural resources, the department of Environmental Affairs has contributed to 412 559 work opportunities and 130 038 full-time equivalent jobs through various initiatives implemented by Working for Water, Working on Fire and Environmental Protection, and the Infrastructure Programme. These programmes target individuals from previously disadvantaged backgrounds with a focus on women (55%), youth (60%) and people living with disabilities (2%).

‘By adopting an integrated approach on the interaction of stocks and flows across sectors, the South African green economy focuses on the sustainable management of natural resources, and on achieving higher growth with a more sustainable, equitable and resilient economy in which natural resources are preserved through more efficient use. The green economy approach supports both growth and low-carbon development by reducing emissions and conserving stocks in the short-term to profit from their healthier state in the future,’ Moise concludes. n

Department of Environmental Affairs W www.environment.gov.za

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FEATURE

Keeping the lights on With no imminent end in sight, load shedding is currently cited as one the biggest constraints to doing business in South Africa. However, it is possible to overcome the obstacles load shedding poses.

PEGGY DRODSKIE, acting CEO of the SA Chamber Commerce and Industry, maintains that the key here is planning.

Businesses should make allowances for planned load shedding, provided they are given ample warning by Eskom.

‘One of the most important factors for business is continuity and to know when electricity is on. If they know the power will be off they can arrange for staff to take leave or come in another time,’ Drodskie comments.

She also stresses that business can mitigate the impact of load shedding – or even reduce the need for it – by being more energy-efficient.

‘Generally speaking, what we advise is to reduce electricity use for as long as possible.’

Practical tips include limiting the use of air conditioners and heaters, switching off lights in warehouses or offices that are not being used, and switching off computers, fax machines, printers and other equipment that are not in use after hours. Some companies are even staggering their working hours, with some staff coming in earlier while others leave later to reduce the pressure on equipment.’

While generators are also an option to ensure manufacturing runs smoothly, these may prove too costly to purchase and run for many small businesses. Drodskie adds that green energy alternatives, such as solar panels, are also pricey, but could benefit business in the long run.

‘LED lighting is a less costly alternative. It may be expensive to replace an entire system but businesses can gradually introduce it by replacing defective bulbs with this form of lighting,’ she advises.

Dawie Buys, Insurance Risks Manager at the South African Insurance Association (SAIA), says businesses need to introduce a ‘loss prevention programme’ to counter load shedding.

Furthermore, a number of insurance products can help cushion the blow, including for: • Machinery breakdown, which includes cover for damage caused by power surges

• Loss of profits following machinery breakdown • Deterioration of stock or stock damage.

The SAIA also has a few tips that could limit the impact of power outages: • Unplug equipment and appliances not in use during load shedding to minimise the chances of damage occurring when the power is restored.

• Regularly test alarm systems.

• Advise security companies to inspect your business premises on a regular basis.

• Install power congestion isolators on your business premises to minimise or prevent damage to computers, freezers and fridges.

• Ensure that electric fencing and gates continue to work during blackouts, or request more regular patrols and checks from your security company.

• Install backup batteries and maintain them regularly.

Eskom’s advice is for businesses to familiarise themselves with the load shedding schedule for their area to minimise the impact of blackouts. The schedule is available at http:// loadshedding.eskom.co.za for direct Eskom customers, or from local municipalities.

Here are some more tips from the power utility: • Business can ensure that they have sufficient alternative energy in the form of backup generators, for example, for the times when the power is off.

• Businesses should have contingency plans in place to deal with operational requirements during periods of load shedding – this includes plans for security, plant failure, production, and process interruption.

• Businesses can become more energy efficient by simply switching off what is not needed when it is not needed, better matching equipment to usage, changing to more efficient motors, pumps or air conditioners, use of solar heating and low-energy lighting.

• Businesses may also consider shifting production time to between 22:00 and 06:00 – the period least impacted by load shedding. n

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2015/05/26 10:14 AM

FEATURE

Troubled waters At the current pace, demand for water will increase by 55% globally by 2050, projects the Organisation for Economic Cooperation and Development.

THE demand for an increase in water requirements will mainly come from manufacturing (+400%), electricity (+140%) and domestic use (+130%).

In fact, the World Bank has cited a 40% global shortfall between forecast demand and available supply of water by 2030. Add to this competition from agriculture to feed growing populations and the gap between supply and demand results in very challenging consequences.

This means that water has moved to the top of the global business risk agenda – according to the World Economic Forum’s Global Risks Report 2015. With business sharing water with communities, industry, farmers and other users, securing the right quality and quantity of water at the right time is set to become a serious production and reputational issue.

PricewaterhouseCoopers (PwC)’s COLLABORATION: PRESERVING WATER THROUGH PARTNERING THAT WORKS report explores the risks for business associated with water and how to collaborate with stakeholders to achieve a common goal – to share water successfully.

The risks for business from having too much or too little water, water that’s too dirty or too expensive are increasing.

Used to cool, heat and/or clean, or used as an ingredient, it’s also a critical factor in the supply chain and can cause disruption in storage, damaging stock and imposing detrimental impacts on distribution.

Jayne Mammatt, Partner in Charge of PwC’s Sustainability and Integrated Reporting Department, says: ‘Continued effective water management is becoming more complex and costly for business. Identifying and managing the potential material risks in direct operations and in the supply chain is an important step to managing the bottom line and avoiding sudden costs.

‘Ultimately, securing water will come down to effective collaboration with other users in the water basin and when stakeholders come together, even with the best intentions to work together, they often have huge differing perspectives and demands. PwC recognises the complexities of collaboration and is able to offer an independent perspective.’

More than oil or talent, water is increasingly the most problematic of resources because of inconsistency of

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supply, quality, pollution, drought and flooding. According to PwC’s annual CEO survey, 46% of CEOs agree that resource scarcity and climate change will transform their business in the next five years.

South Africa is a semi-arid and water-scarce country with a mean annual rainfall of 450mm (compared with a world average of 860mm) and only 9% of that rainfall is being converted to river runoff. Water resources are unevenly spread across the country: 21% of the country, mainly the arid west, receives less than 200mm per year and 65% of the country, less than 500mm per year. In addition, evaporation rates can be extremely high; for example, in the northwest of the country, evaporation losses can exceed 2 750mm. This places significant pressure on water supply for agriculture and human consumption as high evaporation rates reduce levels of run-off and availability of surface water.

Of the economic sectors in South Africa, the agricultural sector is by far the largest water consumer. The sector is heavily reliant on irrigation – only 12% of South Africa’s land is considered suitable for growing rain-fed crops and even a smaller portion of land (3%) is considered fertile.

Water is not only vital for food production and domestic use; it is an integral element of the industrial, mining and power generation sectors which use about 10% of South Africa’s fresh water. Most of South Africa’s electricity supply is dependent on water-intensive coal-fired power stations, which use substantial amounts of water for cooling.

As the country experiences continued population and economic growth, South Africa is approaching full utilisation of available water resources as an ever increasing demand for water resources will eventually outstrip supply.

The decline in water quality due to urban and industrial effluent discharge into river systems, poorly maintained waste water treatment works, salinity from irrigation return flows, acid mine drainage, and inadequate facilities poses another water challenge for South Africa.

Mammatt concludes: ‘Water has a place on the risk agenda for every business – either as a direct operational issue or in the supply chain. Not only is production at stake, reputation and licence to operate are, too, so the decisions around water have far-reaching consequences.’ n Source: PricewaterhouseCoopers – www.pwc.com

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ADVERTORIAL

Keeping the fraudsters at bay The Pelta™ 2D security code from Traceability Solutions helps governments to recover and manage taxes and ensures that citizens receive valid and authentic products and documentation.

How can this be achieved?

A unique two-dimensional (2D) Pelta™ security code is printed on all legitimate documentation and products.

This 2D code is encrypted with proprietary data and two layers of information that cannot be copied.

The first layer of data is publicly accessed and read using standard bar code readers or smartphones equipped with a camera and conventional reading application. The second layer of information is hidden and invisible to the standard reader. This second layer of information is impossible for counterfeiters and fraudsters to copy. The hidden information is used to authenticate the document or product’s validity.

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Photo credit: Traceability Solutions

THE South African economy, government and businesses are losing billions of rands per annum because of tax cheats, evaders and fraudsters robbing government of due taxes. Government has to make cuts or provide minimal and insufficient funding to vital services and welfare programmes. As a result, law-abiding citizens are suffering from the lack of services and/or funding.

Some of the specific issues that drain the pool of money available to government includes: • The increasing influx of fake and counterfeit goods; • Illicit trade in goods such as cigarettes and alcohol; • Fraudulent legal documents, readily available and used; • The prevalence of organised crime.

A solution is available to government officials to help increase tax revenue. The Pelta™ solution expands and increases the tax base, captures additional revenue, helps to increase compliance of tax payers, and ensures that citizens receive valid and authentic government issued documentation.

This Pelta™ solution has been implemented for other governments to help recover and manage taxes in terms of income tax, duties, VAT, vehicle possession tax, property tax, excise tax on fuel, tax on new vehicles, payroll tax, corruption control anywhere in the supply chain, border control and immigration control, tax stamps, identity documentation and any other documents needing to be authenticated, and for brand protection and client loyalty programmes.

When performing checks on items suspected of being fake or counterfeit, the 2D code is scanned with a scanner or smartphone. If the item is fake, the application on the smartphone or scanner will indicate this. Further investigation can take place allowing for confiscation of fake or stolen goods. Geolocation of the scanned codes allow law enforcement or brand owners to get to locations of the fake or stolen goods to take action. ■

Traceability Solutions South Africa T +27 011 704 4744 W www.tracesol.co.za

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SABI June August 2015 Issue.indd 22

2015/05/26 10:15 AM

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FEATURE

The impact of to brand South Africa

By Rich Mkhondo

Improving our country’s brand and reputation has to be all encompassing.

To a degree, our actions as citizens are dictating foreign policy and foreign direct investment, tourism and other economic development imperatives.

THE ‘Tweeterrati’ and ‘WhatsApp’ enthusiasts have been hard at work disseminating memes about our country’s embarrassing xenophobic savagery. One of those I received came from a friend in North Carolina, United States, and featured Zimbabwean President Robert Gabriel Mugabe taking a dig at our country saying, ‘South Africans will kick down a statue of a dead white man but won’t attempt to slap a live one. Yet they can stone to death a black man simply because he is a foreigner.’

That even a blatantly homophobic and effective demagogue such as Uncle Bob can afford to look down on us illustrates how we are moving away from being children of Nelson Mandela – the man of peace who restored pride in a country ashamed of its past.

Once again we will soon become ashamed of our past as we are slowly becoming the laughing stock of the world and are ashamed and embarrassed of the present characterised by xenophobic barbarism.

We are peevish and intolerant against our own African brothers and sisters. We are gradually sinking into hypernationalist paranoia and self-righteousness. While we remain a democracy envied the world over, we seem intent on striking out at the democratic values that have enabled us to survive against the odds, and even to thrive.

The stereotypes are nasty: They are stealing our jobs.

They are drug dealers. They take our women. They force our local shops out of business with cut-rate prices.

In the ‘Us and Them’ syndrome, the generalisations that contribute to a rising tide of xenophobia that is directed

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mainly at other Africans is sickening and starkly at odds with the post-apartheid image of our country that has become known as a ‘rainbow nation’ and, since 1994, opened arms open to people of every race, ethnicity and nationality.

We are facing a new form of racism that is far different from the racism that reached a climax in the 1990s and led to the violence that helped end apartheid. We’re not talking about the obvious racists with their intolerant religious creeds and constitutionalised racism. These new racists brand themselves as the marginalised fringe with no serious political power or societal influence.

Instead, we’re talking about an overt epidemic called xenophobia. The type of racism that declares segregation to be a thing of the past but still believes in and ‘Us and Them’ syndrome with murderous consequences.

Though xenophobia is common worldwide, ours seems especially virulent.

It is impossible to underestimate quite how much the rest of the African continent is slowly turning against us, slowly turning to dislike our overbearing sense of entitlement, arrogance, whingeing and imperialist tendencies.

While everyone has condemned the wanton killings and destruction of property and assets, most of them belonging to black immigrants, the question is what is xenophobia doing to brand South Africa and prospects of foreign direct investment (FDI)?

The truth is xenophobia is hurting South Africa, the brand. We cannot divorce the business and image of the brand from the look of the brand. At the moment we look

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FEATURE

like a nation of savages with thugs running amok with machetes hacking fellow Africans. The pictures of the slaughter of Emmanuel Sithole were shown repeatedly across the world as if South Africa is in flames. The pictures of the wanton destruction of property belonging to immigrants are also being shown as an illustration of how we hate other Africans.

As for Foreign Direct Investment, the two – the look of the brand and the business – are intrinsically linked for a very good reason: a consumer, this time an investor or tourist, buys into a trusted product, South Africa, that can ‘do the job’. Moreover, he or she buys into a set of values that can deliver against the aspirations for a better life. At the moment we are not a ‘South Africa that belongs to all’ as aspired to by the Freedom Charter, but a nation whose soul is slowly fading.

Foreigners’ stereotypical images are maddeningly difficult to dislodge. Branding and marketing a country is a complex business, especially when the exercise stretches beyond boosting tourism and into the realms of branding foreign policy, diplomacy and international relations and foreign direct investment.

Many people who wish to argue that the idea that something as complex as a national identity can be sold in the same way as soap powder are incorrect. In this context, the word ‘branding’ is about modifying people’s perceptions of us as a rainbow nation. Let us not forget that there are now 200 nations in the UN; countries all have to fight for a share of voice.

The point is we live in an information age. When our leaders and ministers make a speech directed at a domestic audience to stop the attacks on foreigners, the world sees it instantly. Pictures of a dying and dead Sithole were seen across the world and are etched in the minds of potential investors and tourists.

In this environment it’s no longer for the British Prime Minister, US President, President of the Federal Republic of Nigeria, German Chancellor or Namibian President to tell their citizens what their view of South Africa should be – these citizens are forming a view themselves based on media consumption.

While it is difficult to put a rand value to how much xenophobia is damaging South Africa, the brand, there is no doubt that there is a real link between the brand valuation and business valuation of our country as a country in which to do business and to visit. The intangible value of our country as a brand is our goodwill and, at the moment, we are seen as lacking in this regard.

We live in a branded world. Everything is branded – from soap to sport, from the connectivity of a country to its politicians. To brand a country is a natural progression – a bigger, more complex challenge. But branding a country is not only about pride, but profit too. There are

more countries than ever in competition. Families decide on where to take a holiday based on the reputation of a country. They are not going to visit or invest in a country whose citizens display xenophobic tendencies.

For example, my family and I will never take a holiday in xenophobic Russia.

After all, most often the objectives for branding a country are economic, increasing tourism and increasing investment both internally and inbound. This in turn brings with it increases in employment, opportunities for regeneration, and growth in gross domestic product.

The truth is migration and immigration are a widespread phenomenon in the modern-day world and involves all nations, either as countries of departure, of transit, or of arrival. It affects millions of human beings.

Among those particularly affected are the most vulnerable of foreigners: undocumented immigrants, refugees, asylum seekers, those displaced by continuing violent conflicts in many parts of the world, and the victims – mostly women and children – of the terrible crime of despotic leadership in our continent.

South Africa as a brand is increasingly important in the world where nations compete for a share of the global markets. After all, a brand is a promise or, more accurately, it is a promise that must be kept if it is to be successful.

Positively branding our country is about amplification, not fabrication and displaying signs of savagery. It is about identifying and magnifying what is relevant, credible, and distinctive and motivating this to potential investors and tourists.

Improving our country’s brand and reputation has to be all encompassing. To a degree, our actions as citizens are dictating foreign policy and foreign direct investment, tourism and other economic development imperatives.

Our country’s global brand leadership will not thrive on compromise, but requires the head and the heart to work in harmony. As citizens we are also responsible for communicating that we’re a force for good and capable of putting aside self-interest and xenophobic tendencies.

Please, let us spare brand South Africa. n

Rich Mkhondo, The Media and Writers Firm

Rich Mkhondo runs The Media and Writers Firm, a content development and reputation management hub.

Visit www.mediaandwritersfirm.com or email rich.mkhondo@mediaandwritersfirm.com.

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2015/05/26 10:17 AM

ADVERTORIAL

Photo credit: Gordian Fence SA

Specialised Fencing for Africa Gordian Fence SA specialises in major turnkey fencing projects for government, parastatals, large corporations and major property developers.

HAVING been involved in the industry for more than 25 years, Gordian Fence SA is one of the largest and most well respected fencing contractors in South Africa.

We operate in the commercial and industrial sectors and are based in the Western and Eastern Cape.

We were the first company in Africa to install a bowed fence system, which was carried out at Odendaalsrus Prison in 2002. We have also completed a bowed fence outside South Africa’s borders at the Elizabeth Nepemba Juvenile Centre in Namibia. This system has become a nationally accepted specification for all prisons.

We are one of the largest installers of fully integrated high security fencing systems in the Western Cape and have installed in excess of 20km of bowed fencing at various prisons in South Africa.

There are no real ‘standard fence’ systems so the majority of our contracts are for custom manufactured products and, in these cases, we are more than happy to assist customers to decide on a specification and design that meets their budgets, security, and aesthetic requirements.

Gordian Fence is 100% female owned and a Level 1 Broad-Based Black Economic Empowerment contributor.

everything that we do, and we believe that our customers deserve the highest level of quality to support their business success.

Health and safety at Gordian is not a matter taken lightly, in fact our staff’s health and safety is of the utmost importance and we strive to provide and maintain a safe, healthy working environment. We ensure this by providing information, instructions, training and supervision, and by fulfilling our legal responsibilities.

Services Although our primary focus has been on security fencing, we’ve expanded our knowledge to include other items our clients require for their installations. These are usually undertaken as part of a large contract and include, but are not limited to bowed high security fencing, swing and sliding gates (manually operated or motorised), traffic booms and turnstiles, electrified fencing, intercom systems, CCTV, minor building works including guardhouses and control rooms, perimeter lighting, civil works, crash barrier fences, steel palisade fencing, steel bar fencing, and steel cages. n

Quality In 2007, we obtained our ISO 9001:2000 certification.

At Gordian, quality is the key word that runs through our organisation. Since our accreditation, we’ve maintained our ISO certification thanks to our proven quality track record. Our total commitment to quality underpins

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Gordian Fence SA (Pty) Ltd T +27 021 905 0355 E info@gordian.co.za W www.gordian.co.za

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SABI June August 2015 Issue.indd 26

2015/05/26 10:18 AM

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MARKETING & COMMUNICATION

Mobile business Mobile is the future of engagement and reach in media for South Africa and marketers need to start taking it as seriously as television in the media mix.

JOHN BEALE, Managing Director: Cape Town, MEC Nota Bene, explains why.

MANY of us are aware of the huge impact mobile phones have on our lives. Sit at a table for dinner, walk through a mall or have a look at people standing in a queue. We spend a vast amount of time with these devices in our hands.

So much so, that South Africa is exactly the inverse in terms of how the population accesses the internet, with two thirds of our access being via mobile phone, and a third on desktop. Over 19 million people use their mobile phones to access the internet in SA (Vodacom and MTN financial reports 2015), and that number is growing by 500 000 people per month. We have to ask the question, why? The answer is simple; the majority of South Africans cannot, and probably will not have the ability to purchase a desktop (PC) or laptop, which means that the mobile phone is their first point of internet access.

This fundamentally shifts the way you approach the digital marketing sphere. Many of us who joined Facebook many years ago are used to how it looks on our PCs.

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However, 86% of Facebook’s 12-million South African daily users access it exclusively via mobile phone. The 93% of the five million South African Twitter users do the same. We have some of the highest mobile phone vs desktop/laptop ratios in the world.

We are also spending more time on our phones while doing other things (including driving). The mobile phone gives a significantly improved engagement experience when integrating properly with other media. This phenomenon is called multi-screening. Watching TV or listening to radio while having a phone in hand.

“

The secret to mobile activation is integration, not interruption.”

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MARKETING & COMMUNICATION

Business’ need to ensure that they are taking this into account, and that the most popular website that all consumers go to when they are searching for something is Google. It is the first stop to your brand website – it is rare for users to type in the direct link if the product is not known.

The QR code was supposed to do this in a digital way but the process is cumbersome, and often people don’t know what to do with it, which app to download or if they even know they need to download one at all. Steer clear of these in advertising.

The mobile phone has broken down the barriers to ubiquitous price parity when it comes to shopping.

Comparing prices while you’re in Makro or Game is now possible and, according to Google Data, 60% of South Africans are doing this in store. Check the review on the TV set while you’re in store, googling ingredients on ready-made foods, and even using the phone to heighten the packaging experience with apps such as Blippar or Layar.

What is becoming increasingly apparent is that consumers are being bombarded with more and more messages each day. Don’t be fooled into thinking that spam SMS you receive for a funeral policy or mobile contract is what mobile is about. Two critical factors that differentiate mobile from other channels is its ability to be hyper-relevant and contextual. Location data, knowing where consumers are and what they are doing when they are there (checking in at the airport for a trip to Cape Town), and Facebook can target you with the right message about car rental, things to do in Cape Town, or hotel stays. Being contextual in the mobile environment drives up response rates and also adds value to the consumer, which is the number one rule. Add value, don’t push messaging.

So the application (app) was born, adding value in many forms through functional benefit (Vodacom app, FNB banking app, SuperSport app) and it has allowed users to engage deeper with the brand, and for brands to gather huge amounts of data about the consumer to facilitate hyper targeting. Push-based messaging through applications at the right time can be incredibly impactful if

executed correctly. Imagine the Vodacom app sending a notification when your contract is up for renewal, allowing you to upgrade through the app and get your phone delivered to your location.

We need to start taking mobile seriously and embed the mobile experience/route to purchase within the channel mix. What does this mean? Think about how your consumer uses their phone along the channel touchpoint process. Facebook and YouTube stats about South Africa show that we consume shorter bits of content during mornings and midday (our most active times on our phones in South Africa), and then the largest spike to mobile activity from 19:00 to 22:00 (Milward Brown SA Multiscreen study 2014). We’re more receptive to longer messages at this time as we can lean back (especially with tablet use) and immerse ourselves.

The secret to mobile activation is integration, not interruption. Understand what your consumer naturally does on his or her phone during the day and integrate in to that behaviour to really make it seamless.

Mobile is THE future of engagement and reach in media for South Africa, and marketers need to start taking it as seriously as television in the media mix. n

W www.mecglobal.com T @MecNOtabene E John.Beale@notabene.co.za

John Beale, Managing Director: Cape Town, MEC Nota Bene

An operating brand of the GroupM stable, MEC Nota Bene is an agency focused on integrated communication in channel strategy, planning and buying. MEC Nota Bene puts content and digital at the centre of the strategic process, without independent digital departments. Digital and data form a central part of the integration, both before and after, but most notably during campaigns in order to optimise against client’s core business goal. With a strong South African presence in both Johannesburg and Cape Town, the company has remained at the forefront of innovative media solutions for South Africa’s best loved brands.

Agency rating in the SA Market: 89 media specialist working as an integrated communication team; SA Billing: R3.2-billion; Ranked number four Media Agency in South Africa in RECMA 2013; First communication channel agency in South Africa – focus on strategy; First media agency to integrate activation team within agency, MEC Access; Actively involved in the media industry in SA: AMF Director, Board of SAARF, Judge of Loeries, Bookmarks, FM Adfocus, Lecture AAA; Powered by GroupM, the no.1 media buyer globally and in SA (globally purchase 32% of time and space and represent 36% of the market in South Africa)

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SABI June August 2015 Issue.indd 29

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2015/05/26 10:41 AM

ADVERTORIAL

Collaboration for socio-economic development REDISA’s successful implementation of a circular economy is an example of what’s possible when the public and private sectors collaborate.

ACCORDING to Stacey Davidson, director at REDISA (Recycling and Economic Initiative of South Africa), the circular economy, where we use the same commodity over and over again, is the only way to ensure responsible consumption of resources.

‘Job creation and small business development are a major part of our business plan, and our five-year target is to create 10 000 jobs and 200 business entities that collect, store and recycle waste tyres. One of the ways we can fast-track this process is by creating circular economies,’ Davidson explains.

‘The reality is that most businesses do not consider the waste that comes from their products or operations as their problem, and few factor the cost of recovering and recycling this waste into their cost of manufacturing, which is in turn costing the environment dearly,’ she adds.

‘We firmly believe that looking at the use of consumer products further than the end of their accepted lifecycle and reintroducing them back into the economy will go a long way towards reducing our reliance on fossil fuels for new product development. In South Africa, we have millions of waste tyres lying in dumps and stockpiles, or scattered across the country in residential, industrial and rural areas. Almost 10-million waste tyres are added to this number every year.’

Tyres are designed to be tough and nearly indestructible, which is good when they are in use but a problem when they reach the end of their working life.

While some waste tyres make their way to recycling facilities via formal and informal networks of collectors, many are burned for their scrap metal content, releasing toxic fumes and liquids in the process.

The REDISA Plan was developed to address the waste tyre problem in a manner that stimulates job creation and entrepreneurial development. As REDISA gains momentum, used tyres will grow in value.

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Looking at waste differently The gradual increase of waste generated in South Africa is leading to an increasingly polluted environment in which South Africans, particularly those in the informal sector, are forced to live.

‘This challenge has left the country with no other option other than to seek measures to divert waste away from landfills to other waste management options such as the reuse, recycling and recovery of products, as well as energy generation,’ Davidson maintains.

For example in the tyre industry, it means reusing, repairing, refurbishing and recycling existing materials and products. In other words, what used to be regarded as ‘waste’ can be turned into a resource and reintroduced into the economy.

‘At this stage, the tyre industry is the only industry in South Africa where waste is being dealt with in an integrated, coordinated way. What’s more, the REDISA system is the only one in the world that has 99.9% industry compliance with one waste management plan (99.9% of tyre manufacturers and importers are registered with REDISA and pay R2.30/kg to outsource their tyre recovery and recycling liability to us),’ Davidson claims.

‘By involving all stakeholders, government and private sector, the REDISA tyre industry circular economy model is working: tyre manufacturers and importers are taking responsibility for their waste without losing sight of focusing on their core business; unemployed people are finding gainful employment, SMMEs are being developed and supported by the REDISA Plan, and the environmental disaster that waste tyres represent is being economically and effectively addressed.’

Without legislation by the Department of Environmental Affairs implementing the REDISA Plan would never have been possible, and the success would never have happened.

‘While the circular economy is growing, it is happening at a slow pace. If the circular economy is to become more widespread, we must look at all industries to see how through innovation and cooperation we can double our efforts,’ says Davidson.

‘The results are evident. Through REDISA’s collaboration with government on the one hand, and tyre manufacturers and importers on the other, in two years we’ve helped to create over 1 900 new jobs and start 170 small businesses, simply by seeing used tyres differently.’

In the near future, REDISA is looking at rolling out the model used for tyres to alleviate the general waste problem in the country. n

REDISA W www.redisa.org.za

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2015/05/26 10:19 AM

ADVERTORIAL

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MARKETING & COMMUNICATION

The power of social media marketing

By Emma Dawson

Are you confused or overwhelmed by social media? As liking, commenting, sharing, retweeting, connections and followers have become the social currency of our time, you need to know what you’re doing.

WHEN planning your online marketing strategy, your website comes first – in other words, it’s all about driving traffic to your site.

At every touch point – whether using Facebook, Twitter, YouTube or LinkedIn, to name but a few – your aim is to use to use these social media tools as a means of getting your message out and driving traffic back to the one place where you have all the control – your website.

While social media has an important role to play in your marketing strategy, some platforms will be more beneficial to your operations and marketing plans than others.

You need to consider how you, or your brand or product, want to ‘seen’, and careful consideration should be given to the tone of your posts, tweets, messages or uploads in keeping with your brand’s personality. Remember: Once posted there’s not taking it back! Your brand reputation is paramount and people can block or unfollow you or, worse still, post negative comments on your platforms, just as easily as they choose to follow you in the first place.

Once you know what you want to achieve, you can then consider which platforms best meet your needs.

The potential for businesses of any size to reach their prospective and existing customers is enormous. The bottom line here isn’t just about profits, it’s about building

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networks and creating online communities to drive consumer loyalty and brand awareness, and traffic to your website.

It’s no good simply creating a profile – if you’re not active on your chosen platform(s) you may as well not be there at all. And using social media well, is just as important. Social media marketing is a two-way street. It’s not about push marketing but rather about crowd sourcing (enlisting the services of a number of people, either paid or unpaid, typically via the Internet) and promoting yourself as an ‘influencer’ – the more influential you are on social media, the better your reputation is. Search engines like Google also factor social media influence into PageRank.

What does this mean for your business? Engaging with social media influencers allows you to increase brand awareness, create brand advocates, increase online reputation, and increase PageRank.

PageRank is an algorithm used by Google Search to rank websites in search engine results and determines where your company’s website appears (preferably on the first page) of Google search results. The underlying assumption is that more important website are likely to receive more links from other websites (ie social media platforms).

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MARKETING & COMMUNICATION

LinkedIn If you simply want to network with colleagues and business associates then LinkedIn is the most popular of the professional networking sites. LinkedIn is excellent for finding people, getting introduced, finding jobs or employees, showcasing an online CV, and collaborating with, or recommending your associates – in a nutshell, it’s about helping others while becoming better known yourself.

Launched in 2003, LinkedIn is a B2B social networking site. During the first quarter of 2015, LinkedIn had 364-million active users in 200+ countries. Traditionally viewed as a place to put your resume and search for a job, LinkedIn has grown into a powerful networking site.

It’s highly recommended that you take time each week to maintain your profile and keep it updated. Think of your company profile page like a resume for your business.

While Facebook is widely known for creating a relaxed social space that encourages interaction between you, your family and friends, LinkedIn strives to create credible professional networks between users.

Facebook However, from a business point of view, Facebook also has a place (top spot, in fact) for business marketing on social media platforms.

Created in February 2004, Facebook is rated as the most used social networking site in the world with 1.44-billion active monthly global users. The latest figures for South Africa reveal that 11.8-million people are active on Facebook, attracting equal numbers of male and female users.

Over the years, Facebook has gone well beyond person-to-person networking and now allows businesses and brands to engage with current and potential customers on an individual level. While Facebook demands a heightened level of personalisation from corporates and business owners looking to engage in this space, it also offers opportunities to create niche communities, and secure new business or members through Facebook advertising. Another plus is that Facebook activity contributes to your Search Engine Optimisation (SEO) efforts (which leads back to your website’s ranking).

YouTube YouTube, a video sharing platform, is one of the world’s most vibrant social networks with more than a billion active monthly users.

In South Africa, YouTube ranks second only to Facebook with 7.2-million users. It’s said that a picture speaks 1 000 words, so what does that say for the power of video? YouTube is a video sharing social media site with impressive stats – viewers watch hundreds of millions of hours of video every day and generate billions of views. It’s also claimed that a staggering 300 hours of videos are uploaded to YouTube every minute!

As a business owner, using videos to demonstrate products or equipment, to tell a story, share television advertising, or impart advice can add great impact to an online marketing plan.

Twitter Ranked the third most popular social media platform in South Africa with 6.6-million users, on a global scale Twitter holds its own with 302-million active users. A staggering 500-million Tweets are sent per day, the platform supports 33 languages, and 80% of users are on mobile devices. Twitter provides a plethora of data and information and, significantly, generates 2.1-billion search engine queries every day.

Twitter is the most popular microblogging platform and allows users to compile messages of up to 140-characters known as ‘tweets’, which can be organised using hashtags (#). Hashtags are used to categorise topics and, unlike Facebook, users ‘follow’ each other – if someone on Twitter follows you, you can follow them back. This makes it much easier to build a following although not as strategically as with Facebook or LinkedIn. Twitter is all about creating a personality, which you do by tweeting thoughts, ideas, your activities, and replying to other people’s tweets and starting discussions. The networking comes in when those following you retweet your posts. The aim is to provide content that people will retweet – it’s this retweeting that will quickly reward you with exponential reach! Twitter is also a powerful tool for driving traffic to your site and for getting noticed by search engines.

Blogging Also worth a mention is blogging, which has been around for quite some time. A blog is simply a website that operates in the same way as a journal. Although dedicated blog sites exist, and are popular, some companies choose to incorporate their blogs into their company websites. This is an effective way to generate regular, new content for your website and to drive traffic to your site by posting your blogs on your social media platforms.

Since blogging’s emergence in the early 1990s, there’s been a steady rise in the number of industry thought leaders (those perceived to have innovative ideas).

Marketers use blogs to provide useful resources and educational information about their products for their customers. While an age of full-time professional bloggers has emerged, marketers can leverage blogging as an opportunity to showcase insights and expertise that isn’t suited to shorter-form platforms (Facebook and Twitter, for example).

Social media directly impacts your business’s search engine optimisation efforts and, as it is one of the many factors search engines take into account when indexing content across the web, it’s important to make use of these platforms to impact your company’s ranking with the major search engines. n

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2015/05/26 10:20 AM

MARKETING & COMMUNICATION

Making the most of direct marketing There are few business practices that annoy consumers more than direct marketing but retails have a lot to benefit if they do it right. SABI speaks to CHRISTIE KOORTS, who researched this topic for his MBA at the University of Stellenbosch.

SABI: What were the key findings of your research?

Koorts: Consumers want to control how their personal and behavioural information is gathered and used by businesses for relationship marketing purposes.

Consumers feel that it is important for them to be able to choose what they share, who they share it with, and how their information is used. Businesses would do well to consider how they empower consumers to this end, and recognise that different consumers have different expectations and needs.

SABI: Do the findings relate only to retailers?

Koorts: Many of the practical examples the research participants mentioned related to a broad interpretation of retail. In other words, retail products or services across multiple industries employ loyalty programme tactics that are relevant in the minds of these consumers.

SABI: How can retailers give consumers maximum control over their personal information?

Koorts: A first step is to provide consumers with the means to opt in or out of the gathering of their information.

More advanced practices could include providing consumers with access to their personal profiles to update their preferences as they choose and to select which essential information they wish to share. There are opportunities for businesses to innovate in this area to make it convenient for consumers to engage on their terms, such as via digital channels.

SABI: What are the common likes and dislikes of consumers?

Koorts: The research participants expect personalised marketing – products and services in return for sharing their personal information. They also expect better offers and increased shopping convenience. The majority dislike telephone marketing tactics as this was viewed as an intrusive practice. Participants also voiced their annoyance at receiving too much marketing material that doesn’t relate to their interests.

SABI: Did respondents give examples of where they rejected a product because of questionable or undesirable marketing methods?

Koorts: One obvious concern was that the research participants were being contacted or approached by a

business on the basis of their personal information, even though they have not bought anything from the business in question or shared information with that business.

SABI: Did respondents give examples of marketing methods they preferred?

Koorts: Participants indicated preferences for either digital communication via e-mail and SMS or face-toface engagement in a service setting. Other modes of communication such as telephonic marketing communication were clearly undesirable by contrast.

SABI: What are the most important lessons you think marketers can learn from this research?

Koorts: Consumers’ personal information offers retailers a competitive advantage by providing them with insight into consumer preferences, needs and attitudes. However, the degree to which consumers are comfortable with the gathering and use their personal information is critically important as these views and sentiments may aid or harm retailers’ efforts to establish and nurture consumer relationships. What consumers think and feel about the use of their personal information has become far more important than legal compliance alone.

SABI: If you had to devise a marketing strategy, how would you acquire and use consumers’ personal information?

Koorts: I would try to put as much power into the hands of consumers as possible. If consumers enjoy the products and services of a particular business they will be more inclined to engage and volunteer sharing their personal information to receive even better offerings. Providing them with the digital means to engage, create and update their personal profiles and to include their interests and preferences allows businesses to cocreate marketing and product strategies based on evolving consumer wants and needs. n

Christie Koorts, top MBA student at the University of Stellenbosch in 2014

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SABI June August 2015 Issue.indd 35

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HUMAN RESOURCES

Stolen hours – what’s the cost to the economy?

By David Hunter, divisional MD, Bytes Systems Integration Workforce Management Division

According to Occupational Care South Africa (OCSA) and Statistics SA, absenteeism costs South Africa between R12- and R16-billion per year.

OCSA adds that of the 15% of staff who may be absent on any given day, only one in three are actually physically ill, and that 40% of sick notes are issued without a diagnosis.

ANALYSIS carried out by a large South African retailer revealed that overtime hours, over a 12-month period, equalled its absentee hours. Furthermore, a recent survey conducted by US-based Mercer Inc, found that 36% of payroll costs are associated with employee absence. This number represents direct costs to pay absent employees, as well as indirect costs such as lost productivity, hiring replacement workers and

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paying overtime. The same study determined that unplanned absences – sick time, late arrival, early departure and extended breaks – account for as much as 6% of payroll. In fact, according to the Mercer survey, incidental unplanned absences account for an average of 21% of net lost productivity per day.

Undeniably, the costs of employee absence to your organisation are excessive, real and measureable.

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HUMAN RESOURCES

Absenteeism affects productivity in many different ways. Apart from adding to the workload of others it also disrupts their work patterns. This leads to increased stress levels and damages staff morale. The result is a reduction in the quality of work output and, worst of all, it adds mandatory overtime to the overall costs.

But there is good news. Absenteeism, together with the burden of managing its risks and its effects on productivity, can be controlled. What an organisation needs is a solution that helps managers get ahead of the game – automatically alerting managers when employees are approaching defined attendance policy limits. The right solution should also empower the employees to stay on top of their own attendance records by using employee self-service tools to track their annual and sick leave balances.

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Absenteeism, together with the burden of managing its risks and its effects on productivity, can be controlled.”

The benefits of implementing a solution such as this includes: • Control over the effects of employee absence by gaining real-time visibility into time off trends and planned annual leave. Active steps can be taken to reduce the impact that absence has on the staff.

• Absence related processes can be administered by integrating the solution to timekeeping and HR systems.

• Attendance policies can be enforced consistently throughout the organisation. Employees will know they are being treated fairly and equitably.

• Companies can plan effectively with insight into planned time off across the organisation, and thereby minimise overtime costs.

Having the systems in place to put a stop to ‘stolen hours’ allows your management team to regain control, and enables your organisation to reclaim its productivity and profitability. All of this can be achieved with a

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The right solution should also empower the employees to stay on top of their own attendance records.”

workforce management software solution that focuses on absenteeism and cuts operational costs, keeps you compliant and increasing your efficiency levels.

Bytes Systems Integration Workforce Management Division has partnered with Kronos, a global leader in workforce management, which has evolved workforce management into workforce optimisation by empowering organisations to effectively manage their workforce and bridging the three main stakeholders, OPS, HR and IT. More than 30-million people use Kronos solutions daily.

Its 20 000 customers, including more than half of the Fortune 1000 companies, span more than 100 countries.

Kronos’s workforce management system is centralised, integrated, configurable and proven. It is modular in design and includes time and attendance, absence management, forecasting and scheduling, as well as activities and analytics. It manages all aspects of an organisation’s complete workforce lifecycle, and supports the business with key insights into its performance. n

Bytes Systems Integration T +27 011 205 7000 W www.bytes.co.za

David Hunter, Divisional MD, Bytes Systems Integration Workforce Management Division

Bytes Systems Integration (Bytes SI) is a specialist outsource service provider that designs, implements, services and manages customised ICT services and solutions. The company provides a full range of IT infrastructural services, such as service desk, end-user computing, server support, data security, network support services, data centre storage solutions and IT outsourcing, as well as contact centres, biometrics and identity life-cycle management, workforce management and cloud-based solutions. As an end-to-end ICT Solutions Aggregator, Bytes SI maintains extensive leading vendor partnerships to deliver world class technology across the African continent.

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2015/05/26 10:42 AM

ADVERTORIAL

Photo credit: Petroleum Agency SA

Securing SA’s energy resources Readers may be surprised to learn that South Africa is a producer of both oil and gas and that local and international exploration companies are actively exploring for oil and gas in our country.

GAS production began in 1992 from gas fields south of Mossel Bay and continues to this day, while modest oil production began in 1997. The gas is piped onshore to a gas-to-liquids plant where it is used in the manufacture of synthetic diesel and other petrochemical products, while oil is sold on the open international market.

The enormous importance to any country of finding and producing indigenous oil and gas resources is obvious in today’s global energy economy, while the financial and technical risks associated with exploration for further reserves are extremely high. Consequently, the activities of oil and gas production, as well as exploration, need to be regulated to ensure the optimal exploitation of resources and the efficient expenditure of effort in searching for new deposits. Of course, exploration and production activities cannot be carried out to the detriment of a county’s natural and cultural heritage and a safe and healthy environment must be maintained. As such, many countries across the globe have dedicated state-owned organisations responsible for this task, and South Africa is no exception.

Petroleum Agency SA is a state-owned company with responsibilities prescribed through the Mineral and Petroleum Resources Development Act. The Agency, based in Cape Town, employs over 70 people who range from draughtsmen, petroleum geologists and environmental specialists to contract lawyers. The company is responsible for evaluating our resources, attracting explorers in the oil and gas sector, facilitating the licensing process, monitoring their exploration and production activities, and archiving data produced from these activities. Over the past few years, the Agency has managed to attract a large number of well qualified international and local exploration companies. These range from three of the five largest international oil companies to small local companies. Even under the current economic climate with oil prices weakening substantially, our operators have retained their interest in South Africa.

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Operations are underway both onshore and offshore, under production rights, exploration rights and a number of technical cooperation permits. There are also exploration rights in the process of renewal, and applications for rights under consideration or in the process of being finalised. These companies are exploring for conventional oil and gas offshore, while onshore efforts are largely concentrated on unconventional hydrocarbon resources such as coal bed methane, biogenic gas and shale gas.

Besides seeing to its mandated tasks, Petroleum Agency SA is also concerned with developing the required skills to serve the developing upstream oil and gas industry in South Africa. The Agency has run a three-year internship programme since 2003, which is now MQA accredited. Young graduates entering the programme are supported through a combination of further study and practical experience that equips them to enter the industry as capable and confident contributors.

The Agency also supports many students at South African universities through data supply for research, technical input and assistance. Oil and gas explorers in South Africa are required to contribute to the Upstream Training Trust. Funds from this trust are deployed in the development of specialist skills in natural sciences, engineering and technology.

Finding further oil and gas in South Africa will contribute to the energy security of our country and thus directly to the prosperity of our people. Petroleum Agency SA is well aware of the importance of its mandate and of its vision of ‘a vibrant sustainable upstream industry in South Africa’. n

Petroleum Agency SA T +27 021 938 3500 W www.petroleumagencysa.com

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2015/05/26 10:22 AM

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2015/05/26 10:22 AM

HUMAN RESOURCES

Making better HR decisions A report published by KPMG International reveals that 82% of organisations expect to begin or increase use of analytics in the HR function in the next three years. While these figures show a modest increase over 2012’s results, doubts still remain about HR’s strategic value.

ALL organisations, whether large or small, gather data about their employees. Whether this data is used effectively for decision making at C-Suite level depends on a variety of factors, including the level of maturity of the human resources (HR) function. The level of sophistication in the South African business environment is disparate.

At one end of the spectrum is a proliferation of companies with basic data capturing ability, allowing the HR departments to track simple data such as employee numbers, address data and contact information. These are typically kept in low-tech environments such as spreadsheets. At the other end of the scale are highly sophisticated HR environments that have systems, processes and strategies to enable a deep level of analysis.

Human resources data should be the cornerstone of decision making for all HR departments across South Africa. Now is the time for C-level executives and HR leaders to embrace the use of this data to track employee turnover, revenue, leave days and other HR-related matters or risk missing opportunities to retain staff and identify key areas of focus.

Nhlamu Dlomu, Head of People & Change for KPMG in South Africa says, ‘Mature organisations demand advanced levels of delivery from their HR departments.

These are trendsetting and forward thinking organisations that require their HR function to be agile and responsive to business needs. These organisations have a desire and capability to use data and analysis effectively to make meaningful decisions around the HR requirements of the business.

‘In less mature organisations, the capability for deep analysis may not be present. However, that does not mean that no analysis should be undertaken. Depending on the kind of data on hand, HR departments can still deliver insights to the business that will drive effective decision making.’

These are some of the themes that emerged from the report compiled by KPMG International Evidence-Based HR: THE BRIDGE BETWEEN YOUR PEOPLE AND DELIVERING

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HUMAN RESOURCES

BUSINESS STRATEGY, which tracks how organisations across the global are using data to substantiate their HR decision making.

According to the survey conducted by the Economist Intelligence Unit on behalf of KPMG, an overwhelming majority of respondents (82%) expect their organisation to either begin or increase the use of Big Data and advanced analytics (evidence-based HR) over the next three years. Yet, more than half of survey respondents (55%) remain sceptical about the potential of evidencebased HR to make a real difference to the HR function,

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Human resources data should be the cornerstone of decision making.”

even as CEOs grapple with regulators, customer requirements, talent, and the demands of the workforce.

Compared to KPMG’s 2012 report, RETHINKING HR IN A CHANGING WORLD, there has been a modest increase (from 15 to 23%) in respondents who say their organisation’s HR function excels at providing insightful and predictive analytics, but it is still far from satisfactory.

‘We’ve never before had such a rich variety of data available for the HR practitioner to prove without a doubt that their decisions can be backed up, as opposed to relying on instinct and best practice,’ comments Mark Spears, KPMG’s Global Head of People & Change and a Partner in the UK firm. ‘For the first time in my 30 years’ experience in this space, HR can demonstrate that its activities and processes have a direct impact on the delivery of business objectives.’

Evidence-based HR still embryonic Evidence-based HR uses data, analysis and research to understand the connection between people management practices and business outcomes such as profitability, customer satisfaction and quality.

However, according to the survey there are still considerable bumps in the road towards widespread acceptance of this approach. One major roadblock may be the credibility of the HR function. Nearly one in three (30%) non-HR executives believe that the HR function does not play a sufficiently strong role in meeting the organisation’s strategic objectives, a view shared by only 8% within the HR function.

Yet, despite this large gap in perception, there is still a strong view among non-HR executives that HR can become more value driven. 49% of respondents agree that HR leaders are able to clearly demonstrate tangible correlations between people management initiatives and business outcomes.

‘Becoming evidence-based requires an effort of will and a sufficiently changed mental model. Many successful organisations are the ones where C-level executives invest and work alongside HR to connect a company’s people strategy to positively impact business performance. While this approach is not yet widespread, with the right skills and support, it is just a matter of time.

Companies and HR practitioners must respond urgently to avoid losing ground and stay ahead of the competition,’ Spears insists.

Other findings from the study include more than one third (35%) of respondents have either not yet applied advanced analytics or Big Data tools to improve the efficiency of the HR function or don’t know whether they do or not; over three quarters of respondents (76%) expect the increasing use of data-driven insights in the HR function to positively impact profitability over the next three years; and corporate culture is cited as the single largest obstacle to the use of evidence in people management (32%), followed by lack of skills and resources (30%), and the quality of the data (29%). n Source: KPMG, www.kpmg.com

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FINANCE & BANKING

Protecting your personal information When bank customers’ personal details are compromised, this information may be used to perpetrate crime with far-reaching consequences.

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Photo credit: SABRIC

ON behalf of the banking industry, the South African Banking Risk Information Centre (SABRIC) has emphasised the importance of bank customers protecting their personal information. The theft of bank customers’ personal information is of concern and remains a challenge to the banking industry. ‘When bank customers’ personal details are compromised, this information may be used to perpetrate crime with far-reaching consequences,’ explains SABRIC’s CEO, Kalyani Pillay.

Personal information does not only include identity documents and driving licenses but also extends to information such as salary slips, utility bills (water and electricity accounts), as well as bank statements.

When criminals get their hands on documents containing personal information, they are able to gather personal details about their victims that, in turn, enables them to impersonate bank customers and either take over their facilities or fraudulently apply for credit. They often supplement the information gathered from compromised documentation or databases by perusing the social media profiles of their victims and, in so doing, gain a holistic profile of their victim with sufficient information to answer any questions correctly that relate to the person they’re impersonating, without being detected. Necessary documentation is also professionally forged to pass the requirements put in place by banks to ensure that they know their customers. These crimes are often perpetrated by organised crime syndicates.

To minimise the risk of having personal information stolen, bank customers are advised to adhere to the following tips: • Don’t carry unnecessary personal information in your wallet or purse, or leave it in your car.

• Don’t disclose personal information, such as passwords and PINs, when asked to do so by anyone via telephone, fax or email.

• Don’t write down PINs and passwords, and avoid obvious choices like birth dates and first names.

• Don’t use internet cafes or unsecure terminals (hotels, conference centres, etc) to do your banking.

• When destroying personal information, either shred or burn it (do not tear or put it in a garbage or recycling bag).

SABRIC’s CEO, Kalyani Pillay

• If you receive a call from an unknown individual requesting personal information, rather offer to call them back to verify that the number they have given you does, in fact, belong to the correct company. Ask them to give you the personal information that they need to confirm, instead of volunteering the details yourself.

• Be selective with the type of information you share on social media sites and constantly revise and check your privacy settings.

• Do not respond to, or believe, SMS or email messages that tell you that you have won a prize or inherited money.

• Don’t leave bank statements or other sensitive information in your inbox. Rather save these to another file on your computer and protect it with a password. n

SABRIC T +27 011 847 3134 W www.sabric.co.za

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2015/05/26 10:23 AM

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2015/05/26 10:23 AM

FINANCE & BANKING

Do household savings impact SA’s economic growth?

According to the National Development Plan (NDP), the South African economy needs to grow by 5.4% or more to create enough jobs to redress inequality and resolve the country’s stubbornly high unemployment rate. To reach and sustain this target, South Africa needs to find investment that amounts to at least 25% of GDP.

‘INVESTMENT is the best fuel for inclusive, sustainable economic growth in this country, and investment spending has only one source of funding – saving,’ explains Prof Adrian Saville from the Gordon Institute of Business Science (GIBS).

Many South Africans could be forgiven for thinking they have no role to play here, with the assumption being that this growth needs to be predominantly generated by the corporate sector. The macroeconomic effects of non-saving is just one of the areas being researched by Investec, in collaboration with GIBS. South Africa’s prolonged savings crisis has resulted in National Treasury’s implementation of the new taxfree savings account – an initiative aimed at fostering a savings culture among a population widely reliant on debt to fund consumption spending. ‘With pension fund reform appearing to be on the back burner for now, time really is of the essence for South Africans hoping to prepare sufficiently for retirement,’ maintains René Grobler, Head of Investec Cash Investments. But the repercussions for improved household savings levels go well beyond the individual and, ultimately, could impact the entire economy.

Where does the buck stop?

South Africa’s public sector is a large dis-saver, explained by this country’s persistent national budget deficit. Add to this the fact that the government’s development objectives mean that budget surpluses are unlikely, it’s clear that the public sector won’t be a contributor to South Africa’s saving any time in the foreseeable future.

This leaves the private sector, made up of households and firms, to contribute to domestic saving. According

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to Saville, the business sector is already saving to its full extent, so the onus is on South African households where a massive opportunity exists. ‘We need an investment rate equal to at least 25% of GDP if we are to achieve sustained higher economic growth. Yet, as things stand, the South African economy’s saving rate is 10% shy of this number. Currently, households contribute nothing to aggregate saving so, if we are to close down that deficit by finding the missing 10%, it’s households we need to target,’ he explains.

Culture change is the silver bullet For South Africa’s lower income earners the notion of saving is perhaps not a priority because of a perceived inability to afford a particular standard of living. Interestingly however, other developing markets have managed to overcome this. While there are other contributing economic factors such as an individual’s level of income, their employment record and even the number of children they have, the ongoing Investec-GIBS research suggests one of the biggest explanations for the level of saving across countries is determined by the culture of saving.

‘Low-income economies such as Bangladesh have achieved high savings rates. This is in stark contrast to South Africa’s household sector, which is one of spending.

We only need to look to the extent to which micro-lenders thrive in our economy to give us an indication of our culture of spending,’ Saville points out.

According to Grobler, a clear savings goal and using a product that is easy to understand are critical elements in staying motivated. ‘Being a good saver really takes discipline. To stay on track and not get swayed by impulse

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FINANCE & BANKING

purchases and non-essential spending, you need to remind yourself of why you’re saving in the first place.’

Saville adds, ‘The first act of saving encourages the second, eventually creating a behavioural bias as we begin to see this accumulation of funds. People then get into the habit of wanting to preserve, protect and build their savings, which translates into household wealth across all income groups.’

Time alone will tell if National Treasury’s tax-free savings plan will provide the nudge South Africans clearly need.

‘The important thing is that it’s a step in the right direction.

We need more initiatives like the tax-free savings account but it’s a positive start and our hope is that clients will exercise the restraint required to leave their investment for the full term to reap the most benefit,’ Grobler insists.

As one of the first banks to offer a tax-free savings account from March 1, Investec Cash Investments has already seen an optimistic take-up of the new account. ■

Investec Cash Investments T 086000 0 TAX (086000 0 829) E taxfree@investec.co.za

René Grobler, Head of Investec Cash Investments

Investec Cash Investments falls under Specialist Banking and offers cash solutions to individuals, small businesses and financial intermediaries. Clients can choose from a range of cash products with guaranteed capital and highly competitive annual returns, ranging up to 9.2%*. These savings and cash investment products offer capital preservation, a high level of security and exceptional returns with various levels of accessibility. There are no fees attached.

Launched on March 1, 2015, in response to National Treasury’s tax-free savings initiative, the Investec Tax Free Fixed Deposit offers a 12-month fixed deposit of R30 000 at a compelling interest rate of 7.66%* with no monthly fees and 100% capital guaranteed. *The rate quoted is the annual effective rate as of May 22, 2015. This is an indicative rate only and will be confirmed at the time of dealing and is subject to change.

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ECONOMY

Economic outlook While the current economic climate is hindered by the power crisis, a weakening currency, trade wars, and increasingly volatile global markets, businesses can’t function without economic forecasting.

‘These two factors are extremely important in a consumer-driven market. Further to this, there remain significant downside risks from slower global growth, lower commodity prices, power cuts and large capital outflows. The tax rate increases will also start to have an impact on consumer pockets at a time when oil and food price inflation are turning,’ he maintains.

The good news…

‘THE only function of economic forecasting is to make astrology look respectable,’ economist, John Kenneth Galbraith, is quoted for saying. That certainly seems to be the case in the current economic climate and the myriad variables it contents with – the power crisis, a weakening currency, trade wars, and increasingly volatile global markets. Nevertheless, business can’t function without casting its gaze into the future. With that in mind, SABI’s contributing editor takes a look at what the experts anticipate…

The bad news…

In February 2015, Finance Minister, Nhlanhla Nene, said he expects the economy to grow by 2% this year, adjusting his previous forecast in October 2014, of 2.5%.

This was in line with projections from the International Monetary Fund (IMF), which estimates that economic growth was 1.5% in 2014.

The outlook is even worse according to Saijil Singh, lead analyst at international credit insurer, Coface. He expects the economy to grow by 1.9% this year, and dip to 1.7% in 2016. This he bases on electricity shortages and sluggish global trade. ‘The electricity shortages and moderate global trade activity are doing us no favours, and this is clearly reflected in the decline in the PMI (Purchasing Managers Index) in the first quarter of 2015,’ Singh told SABI. He adds that household credit growth is minimal, coupled with a depressing job market.

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Things will get better… but not before they get worse.

That’s the most optimistic prognosis from Coface’s Singh.

‘Optimistically, things will get better… everything has a cycle. However, we are not projecting any improvement for the remainder of the year,’ he notes.

Business leader Peggy Drodskie, acting CEO of the SA Chamber of Commerce & Industry (SACCI), is equally gloomy but believes there is a silver lining.

‘Imagine consumer demand was still as robust as it was pre-2008’s recession? That would have been disastrous given the shaky status of our energy grid. There’s no way manufacturing would keep up with the demand for consumer products at that rate,’ she insists. ‘It’s a blessing in disguise.’

Confidence levels among small and medium enterprises (SMEs) are also on the up. SME owners showed an average confidence level of 81% that their businesses will grow in the next 12 months, according to the latest Business Partners Limited SME Index (BPLSI).

‘Despite tough trading and economic conditions, this is the highest average confidence level recorded since the inaugural BPLSI in the second quarter of 2012, and proves that local business owners remain optimistic in the face of strong adversity,’ says Ben Bierman, CFO of Business Partners Limited. Bierman attributes the confidence partly to tax relief announced in the 2015 budget.

However, perhaps the most ringing endorsement of South Africa’s economy comes from global investment giant, Goldman Sachs. CEO and Chairman, Lloyd Blankfein, recently gave a flattering assessment at the Gordon Institute of Business Science (GIBS) in Johannesburg. ‘In my mind, South Africa is, overall, a “spectacular success”. The prevailing conditions could be a boon, rather than a curse,’ he points out. ‘When GDP is so low it gives the opportunity for a higher growth rate.

Added to this, the fact that not everyone has participated in the economy is a driver of growth as people are admitted into the productive economy,’ he said. n Soucres: Moneyweb.co.za, Businesstech.co.za, Sacci.org.za, Bizcommunity.com

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ENTREPRENEURS

Poor economic conditions impact SMEs confidence levels SMEs have conveyed an average confidence level of 53% that the South African economy will be conducive for business growth in 2015 – a 2% point quarter-on-quarter and year-on-year decrease.

Local small and medium enterprise (SME) owners continue to be apprehensive about the regulatory and economic challenges facing the sector and country as a whole. This is according to the fourth quarter 2014 Business Partners Limited Sme Index (BPLSI), which measures attitudes and confidence levels among local SME owners.

SMEs conveyed an average confidence level of 53% that the South African economy will be conducive for business growth in 2015 – a 2% point quarter-on-quarter (q/q) and year-on-year (y/y) decrease.

Ben Bierman, the CFO of Business Partners Limited (Business/Partners), says that the current issues facing the economy, such as the slow economic growth, rand volatility and load shedding, are impacting business owners’ confidence levels. ‘Business owners continue to operate in a tough environment and, while they are resilient by nature, recent developments continue to erode their confidence. When surveyed on the factors that impacted their confidence levels, corruption within Government and political instability were also listed as significant factors.’

In addition, the latest BPLSI revealed a 2% point q/q and 1% point y/y increase in SMEs average confidence levels (40%) that the current labour laws are conductive to the growth of SA businesses. Bierman says that while there is a slight increase in confidence levels, this remains an area of concern for SMEs. Respondents in the BPLSI listed regulatory requirements as not favouring SMEs and that more should be done to review these to aid business well-being and growth. ‘Government should seek to implement less onerous labour laws for SMEs with a turnover of less than R2-million per month or exempt SMEs from complying with the full ambit of current labour laws. For example, small business could be excluded from current collective bargaining outcomes that are usually controlled by big

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business. SMEs are not represented at the bargaining table but are then compelled to pay a minimum wage which they often can’t afford.’

SMEs’ average confidence level that Government is doing enough to foster SME development in South Africa was measured at 34% – a 3% point y/y increase.

‘Government seeks to drive entrepreneurship and has already put measures in place, such as the introduction of a dedicated ministry. We are confident we will continue to see commitment to this sector given small business was identified as one of Government’s nine strategic priorities to be pursued this year,’ Bierman adds.

When surveyed on how confident SMEs were that the Ministry of Small Business Development will aid SMEs, an average confidence level of 43% was recorded. This is a decrease of three percentage points from the third quarter (46%), and down six percentage points from the second quarter (49%) of 2014. ‘Renewed optimism was evident in the SME sector following the creation of the ministry, and it is likely that business owners were hopeful the results and actions would be immediate, but processes need to be put in place as it is a newly established department.

We expect small business will start to see some impact from the ministry during the year, especially as the department was allocated R3.5-billion in the 2015 Budget for mentoring and training support of small business.’

Aid and support for entrepreneurs – both financially and non-financially – also continue to be focal points for SMEs, says Bierman. ‘Funding was listed by respondents as the number one form of assistance from Government that would most benefit and grow their business.’

SME owners surveyed reported an average rating of 82% when asked how important access to SME specific information, resources and support are for the development and growth of a business – up three percentage points q/q and y/y. Access to a mentor to advise on the

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Graphic Credit: Business Partners Limited

ENTREPRENEURS

development and growth of a business also ranked high with an average importance level of 80% (up two percentage points q/q and four percentage points y/y).

‘Non-financial support is invaluable to business owners as it is needed to keep their businesses running, turning profits and creating jobs.’

To bridge the gap between industry-specific skills and the information needed to run a successful business, Business/Partners recently launched its Entrepreneurs Growth Centre, a facility providing free support. ‘The response from entrepreneurs has been overwhelming and highlights just how much more needs to be done to support entrepreneurs in South Africa,’ concludes Bierman. n

Ben Bierman, CFO of Business Partners Limited (Business/Partners)

Business Partners Limited is a specialist risk finance company for formal small and medium enterprises (SMEs) in South Africa, and selected African countries. The company actively supports entrepreneurial growth by providing financing, specialist sectoral knowledge and added-value services for viable small and medium businesses.

Visit www.businesspartners.co.za for more information.

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ENTREPRENEURS

Avoid making foolish business mistakes

Starting a business is a daunting task, and growing the business or even just keeping it afloat can be even more overwhelming. Many new businesses do not survive this initial phase due to the business owner making mistakes during the first few fragile years of operation.

CHRISTO BOTES, spokesperson for the 2015 Sanlam/Business Partners Entrepreneur of the Year® competition, explains that while some mistakes can sometimes be fatal to a business, they also teach entrepreneurs very important lessons.

Christo maintains that growing a business takes time, patience and practice, and entrepreneurs should aim for consistent and profitable growth, which is sometimes a struggle in the early years. ‘Growing a business takes more than just a great idea. During the business’ growth stage entrepreneurs are bound to face challenges where

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they may stumble, but this is the nature of venturing into new territories. Often we see new businesses with great growth potential falling short because of costly, and sometimes avoidable, mistakes.’

Christo points to some hurdles entrepreneurs fall victim to when growing their business, and he provides tips on how to avoid these: • The need for speed: While it is advisable to enter the market as early as possible after noticing a gap, and to leap at opportunities that present themselves, rushing your market research and

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ENTREPRENEURS

•

income, as well as potentially wasting savings in the lead up to the launch. If you are uncertain about specific processes, rather seek guidance from a business expert or organisation such as the Business Partners Limited’s Entrepreneurs Growth Centre.

Being an expert in everything: Emerging entrepreneurs are always under pressure when it comes to resources and time, and therefore aim to achieve as much as possible in the shortest time. This is the most common pitfall of entrepreneurs and small business owners in that they may find it difficult to hand over certain tasks.

Entrepreneurs should rather seek advice from fellow partners (if applicable), as well as industry colleagues and experts. It is important to ask for help on areas you aren’t certain about as this will avoid having to rectify mistakes that might cost more than what you would have spent had you hired experts and advisors from the beginning.

Successful entrepreneurs are those that put their trust in, and delegate responsibilities to, people who have knowledge in their respective fields and responsibilities.

• Not understanding technology: Technology is here to stay and the internet, social media and other digital platforms have not only made business move at a much faster pace than before, but also offer the opportunities to maximise business revenues. Entrepreneurs who understand the role that technology plays in business processes, from operational to executive levels, will appreciate the amount of investment, both time and capital, that needs to be spent to reap the rewards.

Christo remarks that it is not easy to grow a new business and therefore a few small mistakes are expected.

‘However, there are methods that will assist entrepreneurs to not repeat the same mistakes. If you do your research and surround yourself with information and experienced people, it becomes easier for you to make better, more informed decisions,’ Christo concludes. n not planning sufficiently for your venture can be detrimental to your business. Rather take a step back, analyse the pros and cons and do the necessary due diligence.

Remember that concepts take time to develop, and investing enough time and resources in building the business, marketing and distribution plans will ensure you reap great rewards in the long term.

• Procrastination: Although rushing business growth may be harmful, waiting for the ‘perfect’ time may prove more detrimental to your business. By delaying the process, you run the risk of losing out on potential

Christo Botes, Spokesperson for the 2015 Sanlam/ Business Partners Entrepreneur of the Year

The Sanlam/Business Partners Entrepreneur of the Year® awards aims to honour, benefit and uplift South African SMEs. Now in its 27th year, the competition celebrates excellence in entrepreneurship and serves as an inspiration to others to succeed in the world of business. Visit www.eoy.co.za for more information.

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ADVERTORIAL

The voetstoots debate How to avoid confusing ‘as is’ or ‘voetstoots’ is explained here by Johan Louw, director and senior consultant at Johan Louw & Associates.

IT appears that certain people in industry, and even certain service providers in Occupational Health & Safety, still confuse the issue of ‘as is’ or ‘voetstoots’ with what is stipulated and intended with regard to sub-section (4) of section 10: Duties of manufacturers and others of the Occupational Health & Safety Act (No. 85, 1993) – OHS Act. This section refers to importers, manufacturers, designers, sellers and suppliers. The purpose of this article is to discuss the concept of ‘sell’, and all further references are in relation to the aforementioned Act. Section 10(4) is one of the only three agreements contemplated in section 41: This Act not affected by agreements that can affect one’s legal obligations in terms of the said Act. In other words, a specific legal requirement is no longer applicable. The specific legal requirements being affected by the agreement as contemplated in section 10(4), are sections 10(1) which is in relation to articles, and 10(3) which is in relation to substances, that stipulate that no person is entitled to sell it, unless it is ‘safe when properly used and it complies with the requirements of the Act’.

That is why section 22: Sale of certain things prohibited, is subject to an agreement being entered into in terms of section 10(4). In fact, sections 10(1) and 10(3) should also have been subject to section 10(4), which is not the case. In other words, a seller who has entered into such an agreement is alleviated from the duties imposed on such person, as contemplated in sections 10(1), 10(3) and 22.

However, that does not apply to a person who has installed or erected plant or machinery as that does not fall within the context of articles to which section 10(4) specifically refers.

The issue of ‘as is’ is an agreement under Common Law that the parties in question enter into, whereas that

which is stipulated in section 10(4) is an agreement or a letter of undertaking in terms of legislation that the relevant parties enter into. The main difference between these two types of agreements is that the ‘as is’ agreement is intended to protect the seller from civil litigation, whereas the agreement, in terms of section 10(4), is there to avoid criminal prosecution.

Furthermore, an ‘as is’ agreement is primarily aimed at protecting the seller from potential financial implications with the understanding that the word ‘sell’ implies the dictionary meaning, which is the exchange of money or kind. An agreement, as contemplated in section 10(4), is aimed at protecting the seller, which includes donations, leases, supplies, etc, from health and safety implications that the aforesaid might have on the recipient.

An agreement, as contemplated in section 10(4), must include the following minimum requirements: • That the recipient will ensure that the article, plant or machine will be safe when properly used.

• That the recipient will ensure that the article, plant or machine will comply with the requirements of the OHS Act, 1993 prior to use.

An ‘as is’ agreement will normally not include the abovementioned aspects and therefore it will not protect the seller from potential financial implications that the transaction might have. That is primarily why an ‘as is’ agreement does not affect the stipulation of section 22 since it is not one of the agreements contemplated to in section 41. However, should an ‘as is’ agreement include the abovementioned aspects, which is highly recommended, then it would, under the OHS Act, still be deemed a letter of undertaking and not an ‘as is’ agreement. n

Johan Louw is a director and senior consultant at Johan Louw & Associates. He has a B Ing (Mech) from the University of Pretoria and an MSc (Ergonomics) from Loughborough University of Technology in the UK.

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VENUE REVIEW

River Club welcoming reception.

The River Club revamped

Photo credit: The River Club

Once something of a grand lady, the historic River Club in Observatory, Cape Town, had fallen into decay. Now, under new ownership, the sizeable property has a fresh new conference offering and lots to come back for time and again.

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River Club’s Limpopo side lounge and bar.

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VENUE REVIEW

River Club Zambezi & Kei1 offers a breakaway area alongside the conference room.

changing rooms, Pro Shop and 27 refitted weather-cover bays make for a more pleasant golfing experience, while monthly membership starts from R230 per month. Aside from the driving range and Mashie Course, The River Club has tongues wagging with its irresistible hole-in-one prize.

Premium balls are sold for a shot at the prize of a brand new Audi A1.

The new resident restaurant and pub, Slug & Lettuce, feeds The River Club’s energy by day and night.

Conference groups keen to linger at the end of the day have a space to socialise – and may return with their families. Small children will love the new River Rascals Kids Club (supervised childcare free to golf club members and restaurant patrons), and older children can sign up for SNAG (Starting New at Golf) – a programme that teaches golf basics to anyone keen to learn. n

NOTE

ED’S

AT The River Club, new owners, Jody Aufrichtig and Nick Ferguson, have done with conferencing and golf what they did with retail and office space at previous projects, such as Cape Town’s Old Biscuit Mill and The Woodstock Exchange.

Says Ferguson, ‘The River Club is a singular property and we wanted to reflect its history while offering a contemporary and accessible new space for conferences and events.’

Interior decorators, Pam Shaw and Siobhan Becker from Shaw and Becker Interiors, took their cue from the natural textures and light surrounding The River Club, resulting in a subtle and soothing collection of rooms, each with their own special set of features that range from a pool and outdoor terrace to private bars and grand spaces.

Centrally located, just fifteen minutes from the central city, airport and southern suburbs, The River Club is an easily accessible conference venue with ample secure parking.

Capable of hosting anything from a boardroom meeting to a multi-tiered conferencing event, The River Club’s eight rooms can be arranged to fit requirements.

Launches, weddings, exhibitions and gatherings can all be created with the conferencing team’s guidance. The River Club’s catering crew are experienced with everything from canapé platters to banquets for up to 350 people, and are always mindful of dietary preferences.

While The River Club has moved its conference offering upscale, prices remain competitive. All rooms are fitted with the latest AV and wireless technology, and the surrounding golf facilities afford instant breakaway or team-building activities. The comfortable Klipdrift VIP Golf Lounge is another space that businesses and conference organisers can utilise for meetings with a difference.

The 90 bay golf driving range, putting facilities and chipping green, as well as the nine-hole and 27 par Mashie Course, have been retained and have also benefited from the reinvestment. The newly refreshed

I’ve recently attended a number of business functions at the newly revamped and centrally located River Club. The facilities are superb, the staff are professional and helpful, parking is easy and plentiful, and the catering also gets my thumbs up.

River Club T +27 021 448 6117 E info@riverclub.co.za W www.riverclub.co.za

River Club’s Orange Deck overlooking the pool.

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BOOK REVIEW

Social Media and Employment Law SOCIAL MEDIA AND EMPLOYMENT LAW thoroughly analyses the intersection between social media and workplace law. The rapid growth of social media has led to the development of legal issues that have not arisen in the workplace before. Judges, CCMA commissioners, human resource practitioners and lawyers now have to grapple with novel concepts and conundrums.

SOCIAL MEDIA AND EMPLOYMENT LAW provides real-life examples, useful templates and guidelines on social media in the workplace for HR practitioners. For employers and trade unionists, there are also clear guidelines and examples. For CCMA commissioners and bargaining council panellists, there is a wealth of case law, gathered from various jurisdictions and discussed simply and clearly, to guide them through this new territory.

Corporate Governance in South Africa CORPORATE GOVERNANCE IN SOUTH AFRICA addresses the changes in the corporate governance landscape in South Africa brought about by the Companies Act 71 of 2008 and the King Report on Governance for South Africa (King III), both of which have increased the corporate governance responsibilities of boards of directors in South Africa. The book also places the South African corporate governance framework in an international context.

CORPORATE GOVERNANCE IN SOUTH AFRICA covers the corporate governance framework in South Africa, a comparison with various international corporate governance frameworks, and contemporary governance issues. It also offers an implementation guide. Examples of failed corporate governance practices, both local and international, are provided throughout the book to illustrate the importance of effective practices by companies.

Financial Reporting for Directors in South Africa FINANCIAL REPORTING FOR DIRECTORS IN SOUTH AFRICA offers company directors, members of audit committees, company secretaries, financial managers and other interested parties a practical and comprehensive understanding of the drive for financial reporting requirements in South Africa, and the legal and Stock Exchange requirements for financial reporting.

This book is destined to become an indispensable guide to the major issues and debates around financial reporting in South Africa. It provides clear and lucid explanations of directors’ legal responsibilities in terms of financial reporting, as well as those areas on which they should focus in respect of accounting standards. It also discusses the various types of financial reports companies may be required to produce, and, since financial statements are often required to be audited, it looks at what an audit is, when an audit is necessary, how to prepare for an audit and what to expect of auditors.

A Guide to the Protection of Personal Information Act The Protection of Personal Information Act (POPI) has introduced a comprehensive set of principles that will govern the collection, use, storage, transfer, sharing and destruction of personal information. The reach of the Act is wide as it will apply to all businesses and the State.

A GUIDE TO THE PROTECTION OF PERSONAL INFORMATION ACT provides clear and practical advice on how to interpret POPI and how to apply it in any organisation.

The book analyses POPI principles, introduces rules of thumb and checklists explaining the practical application of the Act, and answers frequently asked questions. The POPI Act is included in the book for ease of reference. This is a comprehensive and practical guide to understanding and applying this complex area of the law, and incorporates the latest case law and significant amendments to the Labour Relations Act, the Basic Conditions of Employment Act and the Employment Equity Act.

To order, call +27 021 659 2300, or visit www.jutalaw.co.za 56

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