SA Business Integrator - September 2018 to February 2019 by Media Xpose - South African Business Integrator

South African Business Integrator

Issue 8

A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N September 2018/February 2019

September 2018/February 2019

Young entrepreneurs will play a key role in NDP success

New hope for SMME development

Informal economy: Promoting health and safety www.sabusinessintegrator.co.za

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SARS audits â&#x20AC;&#x201C;

how to survive COVER STORY

CITADEL:

Five financial tips for savvy female entrepreneurs Current Affairs I Economic Development I Business Integration SABI Vol 8 Issue.indd 115

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Commercial provides insurance solutions that protect our clients’ businesses from an array of risks, no matter the size of the business, commercial property or body corporate. Our commercial insurance products are designed to meet the unique requirements of our clients’ commercial operations. THE MAIN RISKS COVERED INCLUDE: Buildings Stock Plant and Machinery Business Interruption Oﬃce Contents Goods in Transit Liability Business All Risks Theft Money Glass Fidelity Guarantee Electronic Equipment Motor SECTIONAL TITLE / BODY CORPORATE OFFERS THE FOLLOWING: Buildings Property Owner’s Liability Business All Risks PROPERTY CLASSIC COVERS THE FOLLOWING: Buildings Property Owner’s Liability

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Vongai Machonisa Regional Manager: Inland Work: +27 11 780 2121 Email: Vongai.Machonisa@lionsure.com SABI Vol 8 Issue.indd 1

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Editor’s L E TT E R

Collaboration: Successful entrepreneurship is built on the basis of collaborative support from already successful entrepreneurs and corporates. No business or entity can operate successful without the support of other businesses. Citadel Philanthropy Foundation celebrate five years of successful operation with the support of individual and corporate donors which is a non-profit organization, acting as a conduit between donors and deserving charities and organizations that are having a meaningful impact on the communities they serve. According to Jean de Villiers, Citadel head of Philanthropy, the foundation was born out of the desire to approach philanthropy in a more structured and thoughtful manner, ensuring the sustainability of charitable projects and their affects. Hence the already great support from individuals and corporates, there is just not enough money available. For more information on the benefits of becoming a donor, read more on page 10 or alternatively visit their website www.citadel.co.za While entrepreneurship is the answer to unemployment and poverty elimination, entrepreneurs need to understand their biggest challenges and find solutions to eradicate failure. According to the National Development Plan, entrepreneurs should deliver 90% of jobs by 2030. However, what is the answer to this? Job creation requires successful entrepreneurs. I would suggest that skills development and basic needs are vital for sustainable growth. Entrepreneurs should understand their markets, theirs challenges and should be able to work closely with strategic partners and government to ensure successful business growth. According to Simon Leps, CEO of XPRS Capital Africa, it is not easy for business owners to predict future financial challenges and irregularities that may negatively impact a business’s operating costs, and even profitable companies are at risk of going bust if they fail to plan for unforeseen cash flow problems. Read more on page 44. Let’s hope that 2019 will bring new hope for entrepreneurs with the support from government and corporate organizations. I trust that you will enjoy reading this edition of SA Business Integrator. SA Business Integrator would like to wish you, our reader, a successful year end and a prosperous 2019. Look out for our next edition due out first week in March 2019. Regards, Elroy van Heerden editor@sabusinessintegrator.co.za

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A person who sees a problem is a human being; a person who finds a solution is visionary; and the person who goes out and does something about it is an entrepreneur. – Naveen Jain

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Contents Cover Story: CITADEL: Five financial tips for savvy female entrepreneurs................................................................. 8

Profile: College of Business and Economics – University of Johannesburg.................................................... 64

Milestone: Citadel Philanthropy Foundation celebrates fifth birthday...........................................................10

Information Technology: Power shifts in data ownership is revolutionising the Internet and cybersecurity............................................................................. 66

Artificial Intelligence: Creating new value for energy providers.................................................................12 Brand Recognition: Nederburg in the lead.....................15 Interview: Young entrepreneurs will play a key role in NDP success......................................................19 Company Profile: ECOAN Engineering and ECOAN Aviation & Technology..............................................................22 Advertorial: AVI Afrique Summit........................................ 30 Digital Automation: SA will lose 5.7 million jobs if not digitally ready in seven years............................. 34 Advertorial: Aspire Consulting Engineers....................... 36 Enterprise Resource Planning: Why SME’s are implementing ERP solutions, how to do it yourself................................................................ 38

Profile: Khumisi Kganare: K&K Attorneys on the legal frontline – innovative, creative and competitive.................70 Opinion: Infrastructure Investment: Mobilising US-Africa pension funds to invest in African infrastructure..............................................................................72 Leadership-Construction: Changes in the country’s leadership could bode well for the future of the construction industry................................................................75 Leadership: Lead your ‘self’ and others will follow....................................................................................78 Office Design: Dong justice to office design...................82 Payroll Software Technology: Does payroll software threaten data security............................................ 86

Entrepreneurial Growth: New hope for SMME development...............................................................................41

Recycling: Local PET bottle recycling at full capacity...................................................................................... 88

Finance: Why profit and turnover can be misleading for SME’s.............................................................. 44

IT Recycling: Simplify recycling by making the right choices....................................................................... 90

Finance: New Twin Peaks model: The Big Bang of SA’s financial industry...............................47

Remuneration: Pay is not pay without perspective.......92

Franchising: Exploring franchising to scale SMME’s...................................................................... 50 Health and Safety: Informal economy: Promoting health and safety...................................................52

Profile: African Container Projects.................................... 96 Skills Development: SA employers urged to make workplace learning part of business strategy.................. 100 Transport Networking: Transport and Industry 4.0.............................................................................. 102

Health and Safety: The Good, the Bad, the Annoying?........................................................................... 56

Tax Audits: SARS audits – how to survive....................106

Human Resources: Duck! Here comes another acronym!..................................................................... 58

Terms and Conditions: Six reasons why Terms & Conditions are critical to your business........................108

Opinion: Higher Education: Career GPS – Keeping your career on track............................................ 60

Women in Construction: A view from the top: South African women in roofing..................................................... 110

47 82

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South African Business Integrator

Publisher

Issue 8

A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N September 2018/February 2019

September 2018/February 2019

Media XPOSE

excellence in exposure

Young entrepreneurs

Tel: +27 21 424 3625 | Fax: +27 86 516 7277 PO Box 15165, Vlaeberg, 8018

will play a key role in NDP success

Editor Elroy van Heerden editor@sabusinessintegrator.co.za

New hope for SMME development

Sub-Editor Tessa O’Hara tessa.ohara@gmail.com

SARS audits –

Informal economy: Promoting health and safety

how to survive COVER STORY

www.sabusinessintegrator.co.za

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CITADEL:

Five financial tips for savvy female entrepreneurs Current Affairs I Economic Development I Business Integration

Photography: Citadel Investment Services

Content Manager Melanie Taylor artwork@mediaxpose.co.za Editorial Contributors Alison Reid Anelisa Mti Anne-Marie D’Alton Arlene Leggat Bendeta Gordon Craig Raath Dr. Andy Schmulow Dr. K Wilson Dr. N. Naicker Dr.Roze Phillips Frank Knight George Diab Gugu Mjadu

Harry van Huyssteen Heinrich van der Vyver Jacob de Coning Jennifer Rees Lindi Engelbrecht Melusi Maposa Natasha Wilkinson Njombo Lekula Richard Rayne Simon Leps Wale Arewa Zone Feni

Project Manager Rashiedah Wyngaardt rashiedah@sabusinessintegrator.co.za Marketing & Communications Manager Sarina Afonso sarina@mediaxpose.co.za Design & Layout CDC Design carla@cdcdesign.co.za

Pictures: 123rf.com

South African Business Integrator @SA_Business_Mag

Advertising Sales Rashiedah Wyngaardt rashiedah@sabusinessintegrator.co.za Yasmeen Ryklief advertising2@sabusinessintegrator.co.za Chief Financial Officer Shaun Mays shaun@mediaxpose.co.za Distribution/Subscriptions Maurisha Niewenhuys distribution@mediaxpose.co.za Reception Kyla van Heerden receptionist@mediaxpose.co.za

South African Business Integrator A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N

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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BY MANTIS

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COVER STORY: CITADEL

Five financial tips for savvy female entrepreneurs By Anelisa Mti, Advisory Partner, Citadel

Casting off the security of a nine-to-five job to kick-start your own business can be both enormously challenging and rewarding, especially for aspiring female entrepreneurs making their way in traditionally male-dominated fields. Itâ&#x20AC;&#x2122;s therefore encouraging to see more and more women taking the leap and pursuing their ambitions than ever before, says Citadel Advisory Partner, Anelisa Mti.

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COVER STORY: CITADEL Pointing to the 2016/17 Global Entrepreneurship Monitor (GEM) report, she notes, for example, that for every 10 male entrepreneurs in South Africa, there were an estimated seven female entrepreneurs, demonstrating a gradual closing of the gender gap. ‘Small and medium enterprises play an absolutely vital role in driving job creation and economic growth, so it’s really positive to see an increasing number of women seizing the opportunity to capitalise on their ideas and run their own companies.’ She adds, however, that many female business owners continue to cite difficulty in accessing funding or financial support as their primary barrier to success. “It’s therefore absolutely critical to seek expert advice in putting together a comprehensive business plan that will attract investors, as well as advice in successfully managing your personal finances while your business becomes profitable.” Mti also offers five practical financial planning tips for those women looking to stake out on their own:

1. Get your business strategy in place A sound business strategy outlined through a detailed business plan is your best tool for drawing potential investors into supporting your business, says Mti. This should include the key differentiators or selling points for your product, your target audience and marketing plans, extensive competitor research and a practical financial model outlining projected income and expenses. Obtaining objective advice and input on your business strategy is key to ensuring that your business plans adequately address investors’ questions or concerns. You should also make sure to check in regularly with a financial professional to avoid making emotional or ill-advised decisions while you get your business off the ground.

2. Keep your personal and business expenses separate ‘Make sure to keep paying yourself an income, but avoid counting your business profits as your income. This will help you to better differentiate and keep a record of your personal and business expenses, and also prevent you from placing unnecessary financial pressure on your business,’ Mti observes. Once your business is turning a profit, use the surplus to create a business emergency fund to protect against cash flow constraints or other unexpected events that may arise. This should cover at least three to six months operational expenses.

If you do not have enough equity to fund your business operations initially, you could look at taking out a business loan instead. ‘Remember that you will also need to keep saving towards your other financial goals such as retirement, even once your business has taken off. Avoid looking at your business as your retirement plan, because if you are not able to eventually sell the business as you expect, you could land up with an underfunded retirement.’

4. Get creative in managing your cash flow Managing cash flow can be one of the biggest challenges for small start-ups, but there are a number of ways that you can work around any liquidity constraints. One of the simplest options is to apply for an overdraft facility on your business bank account, which would enable you to keep covering your expenses while you await payment. Be wary of spending too much on credit, however, and check that you understand the additional banking charges or fees that may apply. ‘Other options could include offering a discount for early payments, or asking for a 50% deposit before beginning the work and the remainder to be paid on delivery.’

5. Invest in financial protection ‘As a breadwinner, you need to ensure that you have sufficient insurance cover in place should anything happen to you, especially if you have a family or dependents. This will include disability, critical illness and life cover,’ emphasises Mti. ‘As a business owner, you will also need to consider short-term insurance on your home and vehicle, as well as business assurance such as key man assurance or business overheads cover to help cover business expenses should something happen to you or a key employee’” ‘If you have a business partner, you should also discuss putting a buy and sell policy in place to ensure that you are able to buy each other’s share of the business out should something happen to either of you to prevent any future conflicts.’ Citadel Financial Protection will ensure that, in the event of any unfortunate circumstances, you are supported through, amongst other things, income reparation, debt settlement and estate planning benefits. n

3. Keep investing towards your retirement ‘You may need to put some of your own capital into your business at first, but avoid investing all your savings into your business – you may have a great idea, but many start-ups fail,’ cautions Mti.

Citadel W www.citadel.co.za

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MILESTONE

Citadel Philanthropy Foundation celebrates fifth birthday Citadel is proud this year to celebrate the fifth birthday of the Citadel Philanthropy Foundation (CPF), the private donor-advice fund created in 2013 which oversees the financial management of donations to improve the lives of South Africans. The first of its kind in South Africa, the CPF is a nonprofit foundation which acts as a conduit between donors and deserving charities and organisations that are having a meaningful impact on the communities they serve. Citadel Head of Philanthropy, Jean de Villiers, notes that the foundation was born out of the desire to approach philanthropy in a more structured and thoughtful manner, ensuring the sustainability of charitable projects and their effects. ‘There is such a big need in our country, that even with so many individuals and companies who want to help, there is not enough money available. Creating sustainable change means that we need to maximise the social benefits of any contributions, which often requires a more strategic approach than simply giving ad hoc donations,’ he says. ‘The foundation then aims to apply business principles to the way the non-profit sector works, making sure that donors have the opportunity to create a legacy through giving money and targeting investments that will make a real difference.’

The foundation’s footprints CPF’s focus lies on the four pillars of education, health, entrepreneurship and the environment. Donors can select beneficiaries from the foundation’s own list of trusted charities or to elect other programmes that they feel individually passionate about. The foundation currently supports some 60 beneficiaries ranging from the Cape Leopard Trust to investigative journalism organisations, amaBhungane and Scorpio. De Villiers mentions that he personally is particularly passionate about driving education initiatives in the country, especially for children from underprivileged and poor communities. He points to the recent Progress in International Reading Literacy Study (PIRLS) which found that 78% of grade four learners were unable to read for meaning and scored South Africa as the lowest out of 50 countries for literacy. ‘Lack of education lies behind most of the issues we face in South Africa, such as crime, unemployment, poverty and many of our health issues. Education is vital, and our

education system urgently needs to improve, or else we won’t be able to solve our social problems.’ CFP therefore recently collaborated with Partners for Possibility, an organisation that pairs business leaders with school principals to help improve education outcomes. Throughout March 2018 Citadel Philanthropy and Partners for Possibility hosted a series of informative events around South Africa creating awareness around the initiative and the role that individuals, corporations, parents and teachers can play in creating an education system that truly serves the children of this country. ‘Schools play a vital role in the lives of each young South African, but the journey extends beyond just “hitting the books”. Mentorship, nurturing leadership abilities and imparting life development skills are all equally important,’ De Villiers comments.

The benefits of partnering with CPF De Villiers notes that one of the main advantages for donors of giving via the CPF lies in ensuring good governance. ‘The knowledge that there is an experienced financial house looking after the funds and ensuring that both the foundation and any beneficiaries adhere to strict rules and regulations offers donors comfort and ease of mind,’ he says. For corporate donors, the CPF represents a costeffective alternative to setting up and covering the administrative and personnel costs of a traditional foundation. It is also able to offer strategic advice for structuring socio-economic development spending as well as issue B-BBEE points. Both individuals and corporate donors who partner with CPF receive assistance in identifying and selecting programmes that speak to their wishes, with the foundation performing the necessary due diligence on any preferred beneficiaries and advising on any potential risks. The foundation also offers strategic funding plans, capital management and administrative services, as well as assisting beneficiaries themselves with financial management where necessary. n www.citadel.co.za

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ARTIFICIAL INTELLIGENCE

Creating new value for energy providers By Melusi Maposa, Managing Director for Accenture Utilities in South Africa

Energy providers are no longer on their own in the quest to keep pace with consumers’ “instant everything” expectations. Artificial intelligence (AI) is poised to change the customer service paradigm. Energy consumers’ expectations have become liquid, flowing like water across the experiences they have with all their providers in multiple industries. They want their needs met and their questions answered instantly, preferably while simultaneously doing other tasks. For their part, energy providers appreciate speed too. They want to drive efficiency and accuracy at a lower cost, without impacting customer experience. Traditionally, consumers’ and providers’ goals have been at odds. That’s now changing thanks to the latest developments in digital technologies, including digital agents, powered by AI.

Defining artificial intelligence Artificial intelligence is a loosely applied term that covers a broad range of technologies at varying levels of maturity, from chatbots to virtual and digital assistants. Chatbots

are at the lower end of the scale - chatbots follow a script and provide responses to specific inquiries, carrying out many of the functions of a mobile app or website. They are highly cost effective and can be deployed quickly across multiple platforms and interactions. Consumers, however, want to engage by voice, and that means doing so in their own language through natural language processing with the support of additional intelligence from algorithms, machine learning or deep learning. A consumer asking why his or her year-end bill is so high, for instance, might trigger a process in billing inquiry and the release of some data about the consumer’s energy profile versus actual consumption, possibly accompanied by a recommendation for how to reduce energy consumption or change the terms of the contract. Recognizing a voice or a visual image brings us into the realm of AI. Digital assistants employing AI are fuelled by analytics but are also able to learn and train themselves.

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ARTIFICIAL INTELLIGENCE They can recognise not just faces and voices but also human emotions and facial expressions. An energy provider faced with a high volume of repetitive inquiries requiring simple manual intervention may decide to automate these steps, by adding robotization. The benefits to energy providers of introducing digital agents can be significant, including cost saving, revenue generation and improved customer satisfaction. Accenture’s latest New Energy Consumer research confirms that energy consumers have a big appetite for digital agents; a large majority (88%) of consumers said they are ready to use a digital agent. The key factors influencing adoption are that the digital agent be easy to use (59%), available on a 24/7 basis (57%) and able to resolve requests quickly (57%). And, while the research showed that consumers are receptive to using digital channels for many purposes, they are even more receptive to using digital agents, with 76% saying they would use such agents for learning about new products and services, 74% for changing their personal information, and 74% for receiving or paying bills. Consumers were also interested in using digital agents to activate or deactivate a service, report or get information about an outage, and sign up for new products and services (68% for all three).

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The benefits to energy providers of introducing digital agents can be significant, including cost saving, revenue generation and improved customer satisfaction.’

Delivering value for energy providers Energy providers’ interest in digital agents is also high. In Accenture’s 2017 Technology Vision survey of utility executives, 37% of respondents indicated they will be investing extensively in embedded AI-related technologies over the next three years. And leading energy providers have begun to integrate digital agents into their service offerings. Energy producers in other countries (such as EDF Energy in the UK) use Amazon’s Alexa as a service channel, helping consumers in areas such as account balance inquiries, learning next payment dates and submitting meter readings. When consumers install the EDF Energy “Skill” on their Alexa-enabled device, they can manage their energy accounts by using just their voice. The solution delivers an easy, fast interface that is available 24/7, meeting all three of consumers’ top adoption factors. Digital agents present energy providers with an opportunity to forge digital connections with their customers and, in the process, open doors to potential new revenue sources. Basic transactions, such as billing, balance inquiries and conveying information about new products are particularly well-suited to service by digital agents.

As digital agents become more sophisticated and easier to use, they will lend themselves to more complex transactions and create new ways for energy providers to lower costs, increase loyalty and generate new revenues.

Launching the AI journey Energy providers exploring digital options should: 1. Gather knowledge - Providers should familiarize themselves with how digital agents – ranging from simple chatbots to highly sophisticated digital concierges – are being used today, not just in the utility industry but in other sectors such as online retailing. It is important to know not just what is happening now but what is likely to happen tomorrow, such as digital agents with self-learning capabilities that leverage customer data to offer tailored services or make personalized suggestions in real time. 2. Provide personality - Experience from early adopters has shown that giving a digital agent a personality is critical. Personality, tone of voice and the styling of the interface are all elements that require thinking and testing with the target audience. 3. Run pilots - To create interactions that are as efficient and painless as possible, run pilots alongside experienced human agents so that they can train the digital agents, handle more complicated scenarios and fine-tune before large-scale implementation. 4. Determine best applications - Digital agents should be positioned as a leading tool within the overall customer experience. A service design process helps in understanding the customer experience across different channels and in identifying high-potential areas for the use of digital agents. 5. Ensure seamlessness - Confirming that simple interactions and tasks are completed seamlessly is critical. The digital agent should be integrated smoothly into the application landscape and into mobile and web services. Automation and digital agent technologies are moving fast and can, we believe, have a major impact on how energy providers connect with their customers. Providers that act now to integrate digital agents into the customer experience can address rising customer expectations while creating a foundation for future service offerings. n

Melusi Maposa, Managing Director for Accenture Utilities in South Africa

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BRAND RECOGNITION

Nederburg in the lead Nederburg has done it again! The Paarl winery again features in the esteemed ‘World’s Most Admired Wine Brands’ top 50 list by Drinks International, a UK-based publication, for a third consecutive year. And in 41st position, Nederburg is the highest placed of the three South African wineries featured on this year’s list. The judging panel comprised a broad spectrum of global wine professionals, including commercial buyers, importers, wine professionals, masters of wine, journalists and wine educators. Last year, Nederburg was the only South African winery to appear in this globally-recognised ranking, and in 2016, the first time the winery was featured, it shared the honour with one other South African wine brand. According to the organisers, to make it into the international line-up of the top 50 wine brands, demands consistent or improving quality; a reflection of region or country of origin; a responsiveness to the needs and tastes of target audiences; excellent marketing and packaging and a strong appeal to a wide demographic. In the company of other famous brands

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BRAND RECOGNITION This achievement puts Nederburg in the company of several of the world’s famous names in wine, including Spain’s Torres, Chile’s Concha Y Toro, the USA’s Robert Mondavi, Argentina’s Trapiche, Australia’s Penfolds, Italy’s Antinori and French icons Chateau Margaux, Chateau Lafite, Chateau D’Yquem and Chateau Latour. ‘Nederburg’s success as one of South Africa’s most pedigreed names in wine is built on a rich history and tradition of winemaking excellence spanning more than 200 years, and driven by zeal, innovation and sense of ongoing discovery,’ says Robyn Bradshaw, global marketing spokesperson for the brand. ‘Being highlighted in this prestigious international list of top global wine brands for a third time in a row is a great privilege and honour. Such high-level affirmation for Nederburg is a huge boost as we build the brand’s global presence and profile to retain its relevance, appeal and popularity amongst a wide spectrum of wine consumers. Refreshing new global campaign and new-look packaging ‘Over the past few years, we’ve taken Nederburg to the next level with a refreshing new global communications campaign and new-look packaging intended to reach and better relate to new wine consumers worldwide, while strengthening ties with existing brand supporters in a captivatingly sensorial and evocative way, seeking to ignite curiosity. This, together with our alignment with procycling via our sponsorship of Team Dimension Data for Qhubeka, has helped us tremendously to build presence and secure listings in strategic international markets,’ says Bradshaw.

‘We are especially proud of our viticulture and winemaking teams who work tirelessly to satisfy a worldwide demand for Nederburg’s delicious wines. They are all united in their passion, patience and precision to maintain Nederburg’s name as the byword in South African wine excellence. New wine growing areas are being explored, new vines are being planted, exciting new blends are being trialled, new wood regimes are being pursued and techniques adapted.’ Distributed in more than 80 countries globally The winery’s multi-tiered range of wines is distributed in around 80 countries around the world, proudly representing the South African wine category. It was one of the first South African wine brands to enter the international market and has been selling in Germany for over 30 years. ‘The world continues to take note of Nederburg. Just recently, the 2013 vintage of our Two Centuries Cabernet Sauvignon was awarded the coveted Warren Winiarski Trophy for the best Cabernet Sauvignon at the 2017 International Wine & Spirit Competition (IWSC), judged alongside equivalents from various wine producing countries. The 2014 vintage of the same wine was selected as the “Red Wine of the Year” in the 2018 edition of Platter’s By Diners Club South African Wine Guide, considered the most authoritative guide to South African wine. ‘These are some of the accolades we’re very proud of. There are others too, such as the 2017 Decanter World Wine Awards platinum award for the best South African Chenin blanc priced at over £15, achieved by Nederburg’s Heritage Heroes, The Anchorman Chenin Blanc 2016,’ Bradshaw explains. ‘This wine commemorates Nederburg’s founder, Philippus Wolvaart, who bought the farm in Paarl in 1791 and planted Chenin blanc, amongst other varietals.’ n www.nederburg.co.za

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INTERVIEW

Young entrepreneurs will play a key role in NDP success SA Business Integrator spoke to Gugu Mjadu, spokesperson for the Entrepreneur of the year® competition sponsored by Sanlam and BUSINESS/PARTNERS, about entrepreneurship as an answer to SA’s employment challenge. South Africa has high levels of unemployment and has struggled to create jobs even during periods of relatively high economic growth, says Mjadu. ‘We had what economists refer to as “jobless growth”. Statistics South Africa (Stats SA) recorded an unemployment rate of 26.7% for the fourth quarter of 2017 and this figure is even higher at 38.6% if you concentrate on young people aged 15 to 34 years. It is a crisis that needs to be addressed,’ she adds. As a solution, the National Development Plan, with its target of decreasing the unemployment rate to 6% by 2030, calls for a concerted effort to stimulate entrepreneurship as the source of job creation in the country. Mjadu believes this is a valid strategy considering entrepreneurs currently employ about 40-60% of the employed population. ‘It is also valid because we have seen how some of the world’s successful economies, for example, the United States, has over the years used entrepreneurship to stimulate its growth. The key is to ensure that the country is stable and that entrepreneurs are provided with support.’

Harnessing young entrepreneurial talent in South Africa Mjadu believes South Africa must begin harnessing young entrepreneurial talent from toddler level and the following are some of the ways we can do this. At dinner tables, families should have discussions about current affairs (more business than politics: local, regional and international) as this will go a long way towards creating an understanding business and the economic environment. To encourage a savings culture, we need to encourage our children to save part of their pocket money. This skill will be useful in aiding the accumulation of capital for starting and growing a business, as well as in managing cash flow in a business. As parents we should encourage our children to read, come up with ideas and to ask as many questions as they want, and we would inspire them to seek the answers which can then be discussed as a family.

Guge Mjadu, Spokesperson for the “2018 Entrepreneur of the Year” competition

As a country we should focus a lot more effort to providing entrepreneurship education in our schools and encourage young people to come up with solutions the country is facing and/or innovate new products. Most importantly, we need to create a conducive entrepreneurial eco-system where young entrepreneurs can receive the information, advice, technical assistance and finance they require to start and/or expand their businesses.

2018 Entrepreneur of the Year® competition a key platform for local, aspiring entrepreneurs Many research studies, including the Global Entrepreneurship Monitor, have over the years highlighted how aspiring entrepreneurs are inspired by successful entrepreneurs. It is believed that by celebrating successful entrepreneurs you contribute towards increasing a country’s total entrepreneurial activity as you present examples that confirm that entrepreneurship is a viable career path. As such, competitions such as the Entrepreneur of the Year® competition are important for the inspiring more people to start their businesses and contribute to job creation in the country. Entrepreneurial competitions are also important for existing entrepreneurs as they validate their entrepreneurial journeys. They also provide entrepreneurs with the opportunity to expand their network, apart from the opportunity to learn from fellow entrepreneurial entrants, entrepreneurs can engage with credible business experts and mentors involved in the competition and can draw on their business knowledge and insight. ‘Entrepreneurs are often so involved in the operations of the business, that they don’t realise the true success of the business and what it may be worth. This downplayed perception of success can hinder a business’s growth path and prevent it from capitalising on potential opportunities. Such competitions therefore offer the necessary push for entrepreneurs to analyse their own business’ worth, value and capabilities,’ says Mjadu. n

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COMPANY PROFILE: ECOAN ENGINEERING & ECOAN AVIATION & TECHNOLOGY

ECOAN Engineering Formed in 2014, ECOAN Engineering is one of the fastest growing engineering and technical services providers based in Gauteng. The company started its operations by providing services primarily to the rail sectors. ECOAN Engineering is a 100% female and blackowned company with over 80% black representation at management level. The company believe strongly in staff development and growing its team of employees. Specialising in providing technical and design services, engineering expertise, infrastructure and procurement services, key clients include Transnet and PRASA. ECOANâ&#x20AC;&#x2122;s footprint covers Gauteng, the Free State, Kwazulu-Natal and the Western Cape.

The companyâ&#x20AC;&#x2122;s vision is to be a leading technical engineering services provider in the rail, aviation, mining and power utility sectors through strategic positioning of the company at the forefront of new developments within the industries. ECOAN strives to provide peace of mind to its customers through not only meeting their requirements but exceeding those requirements whilst providing value for its shareholders and creating an ideal environment for its employees.

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COMPANY PROFILE: ECOAN ENGINEERING & ECOAN AVIATION & TECHNOLOGY

ECOAN objectives • Treat all our customers and suppliers as partners • Ensure sustainable growth and development of the company’’ • Ensure that the employees are kept abreast of the technological advances in the industry • Continue to train and develop employees to ensure that they have the necessary skills to continue to grow the company. • Create an environment where employees can thrive. • Maintain an excellent industrial relations environment in the company.

ECOAN values ECOAN Engineering has the following values in place that drive the culture of the organization: • integrity • honesty • accountability • trust • customer focus • safety • sustainability • professionalism

The company prides itself on its product and industry knowledge, good relationships with key players in the industry and its technological know-how. ECOAN Engineering specialise in the following: • Locomotive and coach repairs • Locomotive parts: compressors, exhausters, blowers,

pumps, fans, inverters, electric motors, doors and associated components • Arch chutes • Gear cases • Aviation services, with a focus on signalling systems: communication, navigation and surveillance system design, coverage planning and site selection, radio frequency planning • Engineering design services • Infrastructure and installation of engineering equipment • Procurement and supply of engineering components • Machining of copper and associated parts

ECOAN Engineering organisation structure per function and services area

Rotating Machines

Doors

Coaches and Locomotives

Machining and Manufacturing

Aviation Services

Engineering and Design

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COMPANY PROFILE: ECOAN ENGINEERING & ECOAN AVIATION & TECHNOLOGY

ECOAN Engineering has streamlined its operational requirements to ensure that its customers receive a seamless and satisfactory services. The company’s team has 80 years’ combined experience in their respective and diverse areas of expertise. This ensures maximum customer satisfaction in each of its divisions.

Partnerships and collaboration

Safety, health, environmental ECOAN Engineering recognises the importance of the safety and health of its employees and clients as well as the environment. All company operations are governed by a Safety, Health and Environmental Plan.

ECOAN Engineering believes that it has a critical role to play in uplifting the community. In association with its partners, it has positioned itself to ensure that it continues to play a role in providing training and employment opportunities targeted at community groups, especially the youth and women.

Quality

Products

Quality management is central to ECOAN Engineering’s work and its operations adhere to the highest quality standards to ensure customer satisfaction and the safety of end users.

ECOAN Engineering uses highly advanced production techniques, thereby enabling the company to produce a wide range of railway products, for example: • Windows and windscreens

Where applicable, from time to time ECOAN Engineering will outsource projects to its strategic partners who complement its competencies to ensure that the quality of its services and products is not compromised.

Social responsibility

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COMPANY PROFILE: ECOAN ENGINEERING & ECOAN AVIATION & TECHNOLOGY • Handles • Gear cases • Pressurizing fans • Monsoons • Seats • Slack adjustors • AC, DC, rewind and refurbishments

ECOAN Aviation & Technology ECOAN Technology (Pty) Ltd is a world-technology leader in terms of designing and building missioncritical information systems for the defence and security, aerospace and transportation industries. The company has an impressive network of 22 000 highlevel researchers and engineers who constantly ensure that the company delivers cutting-edge solutions for its clients. ECOAN Technology is a South African registered company which has been in existence for over three years and employs 56 people in two major locations based in Johannesburg. The company is 100% black womenowned and is B-BEEE level 1. ECOAN Technology is fully committed to investing in and contributing to building a local South African air traffic management, defence and transportation industry within the BEE framework policy of the country. In South Africa, ECOAN Technology strives to be the supplier of choice for air traffic management and navigational services systems and is a partner of choice in the defence industry due to several successful projects. The company also shares its state-of-the-art technology with its customers. In the transportation domain, ECOAN Technology has rapidly progressed into a key partner offering costeffective turnkey services in collection and rail signalling.

ECOAN Engineering & Technical Services Aviation ECOAN Engineering & Technical Services Aviation is all about solving problems in a way that creates real value for its customers. Its offering includes world-class forwardthinking technology products and custom solutions for the aviation, communications, defence end electronic contract manufacturing markets. ECOAN Engineering & Technical Services provides technical services for the following products: Electrical: • 20KVA up to 180 KVA generators, automatic switch gear, airport ground • Lighting, power distribution, approach lighting, automatic transfer • Switches, programmable controllers Communication: • VCCS, Radios VHF, UHF, HF, VSAT, SatCom, voice/ data recorders • ATIS and DATIS

Infrastructure: • Fibre optic, radio link, microwave link, ethernet network Navigation: • ILS, DME, (C/D) VOR, NDB, TACAN, DF Surveillance: • PSR/SSR/PAR, multi-lateration, ADS-B/X, meteorological systems, WAM With five interdependent but self-sufficient business units focusing on separate markets, ECOAN Engineering & Technical Services has the unique depth of expertise and scope to allow its customers to grow and thrive. These key units include: • Air Traffic Management • Communication Solutions • Defence • Electronic Manufacturing • Strategic Projects Group

AIR TRAFFIC MANAGEMENT Up-to-date, reliable air traffic management requires a service provider with a demonstrable track record in solutions development and implementation. ECOAN provide a vast range of radar, aircraft navigation, instrument landing, runway lighting and voice communication products and services. Its customers include both military and civilian airports and aerodromes in Southern and East Africa. Key focus areas include: • Radar projects • Radom projects • Airport systems • Ground-based air navigation • Air traffic management communication and recording systems • Specialised fibre optic systems • Maintenance support The Air Traffic Management business unit offers a full service from project management, system engineering, product upgrades, software development, installation, integration and commissioning, to logistics and maintenance support. The unit’s comprehensive maintenance support package is designed and managed to provide its clients with complete and cost-effective system ownership. This starts at the product lifecycle design phase and continues right up to the equipment disposal phase. During the product life cycle, logistic engineering services include: • Integrated logistic support programme planning (ILSPP) • Logistics support analysis (LSA) activity which results in logistics support analysis record (LSAR) and the formulation of a logistics support plan, and • Enhanced life cycle support. The Air Traffic Management business unit’s full logistics and systems management offering means strict

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COMPANY PROFILE: ECOAN ENGINEERING & ECOAN AVIATION & TECHNOLOGY quality assurance and project management, as well as management in the critical areas of supply chain, systems and obsolescence. It also develops support and special to-type test equipment for own and original equipment manufacturer (OEM) products. Its vast product repair facilities include O to I and D levels, as well as hardware and software engineering proficiency, technical assistance and product improvement programmes.

Site surveys Clients can rely on ECOAN to execute a full site survey to identify optimal locations to establish the full range of air traffic management product requirements.

Documentation The company also has the capability to convert original equipment manufacturer (OEM) documentation to satisfy clients’ specific requirements. This means it can provide clients with an integrated management solution with the flexibility to amend, update and produce documentation.

Configuration management To ensure performance consistency, the company applies full capability configuration management. Skilled configuration management makes it easier to identify potential issues, to manage changes, and to monitor product lifecycle performance against the same baseline.

Operating systems With combined development experience of more than three decades, ECOAN’s in-house software team is skilled in all derivatives of Windows plus AVR and PIC embedded systems. Software language skills include C, C++, HTML, SQL and Java. The Air Traffic Management business unit’s vast software experience includes: • Radar software scan conversion systems • Radar software plot extraction systems • Radar display systems • Navigational systems interfacing and status display systems • Radio control and remote radio management systems Specific areas of expertise include: • Low-level hardware communication and interfacing • TCP/IP network-based applications • Database applications • Interface design and control • Customised user interfaces • System engineering

COMMUNICATION SOLUTIONS Enterprise Solutions & Professional Services In a highly competitive telecommunications market ECOAN take seriously its responsibility to meet clients’

specific business requirements timeously and efficiently. Through its partners, it can provide a comprehensive enterprise communication product and business support service in Sub-Saharan Africa.

True value-added distributor As a true value-added distributor, ECOAN provide a full service, from pre- to post-sales support. This includes: • Solution design • Channel management • Training • Lead generation • Online information and management facilities ECOAN’s offering covers unified communications, recording, networking, and mobility solutions. The company also has its own dedicated, in-house Professional Services Group, which falls within the Communication Solutions business unit. This means, regardless of business size, ECOAN has the capacity to move at the speed and size its clients require. The company provide turnkey solutions, servicing large enterprises, network operators and services providers with end-to-end equipment supply needs, as well as rollout and support requirements.

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COMPANY PROFILE: ECOAN ENGINEERING & ECOAN AVIATION & TECHNOLOGY

STRATEGIC PROJECTS This business unit addresses local and international opportunities that arise from within ECOAN Engineering & Technical Services, and from its partners in the marketplace. The Strategic Projects Group (SPG) investigates new opportunities that can be leveraged using ECOAN Engineering & Technical Services Aviation’s core capabilities and experience. SPG creates potential for ECOAN Engineering & Technical Services Aviation to expand in existing markets and enter new markets.

project management expertise and a comprehensive suite of full turnkey manufacturing services. Its solutions address the entire product lifecycle, including design, engineering, manufacturing, logistics, post manufacturing and aftermarket services. n

One-stop business partner Whatever product, solution or service requirement clients may have, SPG can provide: • Technology, product, solution and service innovation • Business model innovation • Business incubation • Operations support, and • Practical solutions that make business and consumer sense. With a solid foundation in local and global technology space, a world-class electronic manufacturing facility and access to key resources, SPG’s core competencies include: • Business development • Electronic design • RF design • Mechanical design • Electronic Manufacturing, and • Technology integration

DEFENCE Defence manufacturing and design solutions require an exceptionally high level of quality and security. ECOAN’s Defence business unit has the proven capability to develop, supply and support systems for harsh environments and conditions. It provides advanced electronic identification, tactical communication and avionics products and systems for system integrators, platform suppliers and end-users.

ELECTRONIC MANUFACTURING In an increasingly competitive marketplace, responding swiftly with innovative new products is crucial. ECOAN’s world-class facilities offer advanced design capability,

HEAD OFFICE 512 Hole in One Avenue Ruimsig, Roodepoort, 1724 T +27 (0)11 029 7780 /4/8 M +27 (0)83 785 9507 E cathyru.ecoan@icloud.com

MECHANICAL WORKSHOP ELECTRICAL WORKSHOP Sanlam Business Park – Unit D3 110 Albertina Sisulu Road Masjien Road, Strydom Park, Roodepoort Randburg, 2169 1724 T +27 (0)11 029 7780 /81/84 T +27 (0)11 029 7787 M +27 (0)83 785 9507 M +27 (0)83 785 9507 E cathyru.ecoan@icloud.com E cathyru.ecoan@icloud.com

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ECOAN Engineering is a 100% Female and Black-owned Company with over 80% black representation at management level. We believe strongly in staﬀ development and growing our own team’ with regards to employees.

OBJECTIVES

• Treat all our customers and suppliers as partners. • Ensure sustainable growth and development of the company. • Ensure that the employees are kept abreast of the technological advances in the industry. VISION • Continue to train and develop employees to ensure that they To be a leading Technical and Engineering Service Provider have the necessary skills to continue to grow the company. with a diﬀerence, Rail, Aviation, Mining and Power utility • Creating an environment where employees can thrive. sector through strategic positioning of the company • Maintaining an excellent industrial relations environment in the

at the forefront of new developments within the Industries.

MISSION STATEMENT ECOAN Engineering PTY LTD SA fully intends to continue with its commitment to expanding the parameters of the composite industry. The company shall continue to lead the industry along the path of quality and dedication to excellence.

STRENGTH

Production and Industry Knowledge Good relationships with Key Players in the Industry Technological know how

PRODUCT OUTLINE: Repair and Refurbish Sliding door - Outside sliding and pocket spares (Including spares) Repair and Refurbish Door Gears - Outside Slider and Pocker and Spares Plastic Door Handles and Door Rubber seals Computer Numerical Control Machines (CNC) products

VALUES COAN Engineering has got the following values that drive the • culture of the organization: VAL • Integrity and Honesty E Accountability • Trust • Customer Focus • Safety • Sustainability • Professionalism

Windows / Windscreens Handles Gear Cases Pressurizing Fans Monsoons Seats Slack Adjustor Ac, Dc, Rewind and Refurbishment

ECOAN ENGINEERING Rotating Machine

Doors

Coaches and Locomotives

HEAD OFFICE 512 HOLE IN ONE AVENUE RUIMSIG ROODEPOORT 1724 OFFICE: +27 11 029 7780 / 4 / 8 CELL: +27 83 785 9507 EMAIL: CATHYRU.ECOAN@ICLOUD.COM CATHYRU@ECOANENGINEERING.COM CATHY RU

Machining and Manufacturing

Aviation Services

Engineering and Design

ELECTRICAL & MECHANICAL WORKSHOP

110 ALBERTINA SISULU RD, TECHNICON INDUSTRIAL PARK, ROODEPORT 1724 (OPPOSIT ROODEPOORT HOME AFFAIRS)

OFFICE: +27 11 029 7780 / 4 / 8 CELL: +27 83 785 9507

EMAIL: CATHYRU.ECOAN@ICLOUD.COM CATHYRU@ECOANENGINEERING.COM

Founder & Managing Director.

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ADVERTORIAL: AVI AFRIQUE SUMMIT

Are we fully embracing digital innovation in the aviation industry? Digital aviation is becoming an increasingly important topic as we move into an era of unprecedented technological innovation as well as a rise in global air passenger traffic. In 2018, this number rose by 6.5%, bringing the total number of passengers to a staggering 4.36 billion. According to the Digital Aviation Research and Technology Centre (DARTeC), digital aviation - which includes everything from unmanned traffic management to developing the next generation of air traffic control in an environment of steadily increasing air traffic density and ‘on-demand’ requests – should be a top priority and addressed collaboratively

by airports as well as aerospace and air traffic management companies. With the pace of air travel growth already causing strain across the sector and passenger numbers expected to increase by close to 50% by 2050, solutions other than expansion of airport capacity and ground infrastructure need to be found. Responsible for 10% of the world’s airspace, Air Traffic and Navigation Services SOC Limited (ATNS)

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ADVERTORIAL: AVI AFRIQUE SUMMIT

is committed to joining this digital revolution and encourages the innovative collaboration needed to propel this new age of aviation forward. Hosted by ATNS, this year’s 7th annual AVI AFRIQUE Summit promises to provide excellent insight into how far we’ve come as an industry and how far we still need to go. Under the theme, ‘Breaking barriers in the aviation industry through innovation’, a host of acclaimed speakers from all areas of the aviation industry will take part in various presentations and panel discussions. The Summit seeks to explore how the industry deals with the emergence of incidental and real-life barriers that may lead to a need for realignment and restructuring – from an air navigation services provider or civil authority perspective. Some of the key topics to be explored at the Summit include the potential for collaboration between African air navigation service providers as well as the rapidly emerging threat of cyber-attacks and the impact of digital advancements on safety. While great strides have been made by putting recommended standards and practices in place to encourage and promote innovation within the aviation fraternity, the industry needs to employ continuous innovative ways to evolve with the changing times, while remaining inherently safety-conscious. This Summit, to be held on 23 and 24 October at the Council for Scientific and Industrial Research (CSIR) in Pretoria, is free to attend and looks to once again bring together thought leaders, decision makers and aviation delegates from across Africa. It is the perfect opportunity to rub shoulders with Africa’s aviation elite and to gain insight into how digital advancements can play a part in readying the aviation industry for the future. Register for free at www.aviafrique.co.za to get aboard the leading aviation Summit in Africa. n

Air Traffic and Navigation Services SOC Limited (ATNS) T 0860 2867 26 W www.atns.com

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DIGITAL AUTOMATION

SA will lose 5.7 million jobs if not digitally ready in seven years By Dr. Roze Phillips

With 35% of all jobs in South Africa (almost 5.7 million jobs) currently at risk of total digital automation within a mere seven years, the country could see a crippling effect compounded by a fragile economy and growing unemployment. Dr Roze Phillips, Post Graduate Diploma in Futures Studies alumnus from the University of Stellenbosch Business School (USB) and Managing Director for Accenture Consulting in Africa, says that the country needs to act now to ensure that humans and machines can work together in the future. ‘Our research shows that if South Africa can double the pace at which its workforce acquires skills relevant for human-machine collaboration, it can reduce the number of jobs at risk from 3.5 million (20%) in 2025 to just 2.5 million,’ she says. ‘With the threat of automation growing, South Africa is less prepared than other countries and needs to give its workforce skills to participate in the digital economy. In a country with a staggering 27.7% unemployment and jobless youths making up 75% of unemployment, the future looks bleak.’ Dr Phillips says job transition is not new. In the pursuit of higher productivity at lower cost options, jobs have for many years been shed. ‘In recent times, many manufacturing and standard business process intensive jobs were outsourced to countries where labour was cheaper. Those jobs rarely made it back to home soil but at least outsource recipient countries benefitted from the employment opportunities created there. Today, the same phenomenon occurs. But now, the search for labour arbitrage is no longer between physical geographies; today, jobs are lost to the digital world and will, probably, never be done by humans again.’ She says that in a country like South Africa where poverty remains, rates of unemployment are high and social security questionable, it’s vital for the country to upskill its people to collaborate with machines to enhance their own productivity, not job losses. ‘Machines do not consume things and whilst they can replace human work, they do not drive purchasing behaviour or contribute to GDP. Society will regress if humans can’t work, earn and spend. South Africa needs to learn how to “run with machines”.’

Which jobs in South Africa are the most at risk? Book keeping, accounting and auditing clerks have the highest risk of automation says Dr Phillips. It’s not just manual labour jobs. Her company, Accenture, researched various job categories drawn from Stats SA to gain insight into human-like (analytical, leadership, social intelligence, creative) and machine-like activities (routine work, transactions, manual labour) considering the type of work, skills and tasks, the recent skills evolution in jobs, degree of work automation, work supply demographics and productive structure. ‘The results clearly show that occupations that allocate more time to human-like activities have a lower probability of automation while workers involved in occupations such as production, office administration, tellers, cashiers, farming, food preparation, accounting, auditing, insurance claims and policing processing clerks, construction, mining, transportation, installation and maintenance are at highest risk,’ says Dr Phillips. Both white- and blue-collar jobs are at risk. The more predictable and repetitive the activities that make up the tasks, the more likely it is to be replicated by machines

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DIGITAL AUTOMATION or automated. The safest jobs are those that require influencing and advising people, teaching, programming, real-time discussions, negotiating and cooperating with co-workers. Dr Phillips says that although the research seems to paint a gloomy picture, the opportunity for South Africa is considerable. ‘Digital technology will usher in a new economic era, exposing new sources of value and growth, increasing efficiency and driving competitiveness. For South Africa to rise to the challenge the country needs to recalibrate its economy and its workforce for digital, creating entirely new products, services and markets. And the time to do that is now,’ she adds.

Which skills are critical to learn? In the digital economy work will no longer be restricted to one employer, job or team. People will need to constantly learn new skills remain relevant. Accenture has identified six skills that are critical to securing a job and ultimately retaining it. 1. Learn to Earn - Foundation skills are critical; literacy, numeracy and digital literacy as well as basic employability skills such as conduct and work protocols (time management, listening, and negotiation). 2. Build Tech Know How - The ability to use digital devices and share data, working effectively alongside machine intelligence, understanding how technology and data are built, manipulated and applied. 3. Apply WeQ - Social and relationship building will gain greater importance with teamwork, collaboration, communication, social and emotional intelligence and ability to manage others as key drivers. 4. Create and Solve - Problem solving will require thinking unconventionally, gathering ideas from diverse sources an applying design thinking, critical thinking, reason and logic to assess and analyse problems, and entrepreneurial mindset. 5. Cultivate a Growth Mindset - The foundation blocks for personal resilience and ability to cope with and adapt to change will require skills such as the ability to cultivate curiosity, openness, a growth mindset and the capacity of lifelong learning, underpinned by cognitive functions such as flexibility. 6. Specialise for Work - Specialised work skills will no longer be static or fixed in the digital economy and will need to continuously change based on context, industry, market demand and type of work.

“

In the digital economy work will no longer be restricted to one employer, job or team. People will need to constantly learn new skills remain relevant’

automation being used, as well as the size, sector and existing skills levels of an organisation. Accenture has developed a guideline which organisations can access to assist them in this process. Reskill at the top of the house - Businesses need new leadership skills to lead that are responsive, responsible and response-able. By engaging with employees and stakeholders, cross-collaboration with other industry experts such as academics, businesses and create learning opportunities for their staff to seamlessly join them on the journey. Keep building on what you have - Rapid reskilling can ensure that you keep your workforce but constantly change the way they do their jobs with innovative learning methods, enhancing digital capabilities to meet the challenging expectations of clients, service delivery and production. Change the mindset of ‘learning as a way of life’ - Shifting from point-specific training to lifelong learning makes workers and organisations nimbler and organisations more adaptable to volatile markets. Use digital to learn digital - Digital learning methods such as virtual reality and augmented reality technology can provide realistic simulations to help workers master new tasks, so they can work with smart machinery. The same technology can be used to help reinforce correct procedures on the shop floor, monitoring how employees execute tasks and coaching them to do it the best way. Create a more flexible workforce model - Rigid, formal job structures do not support the speed and agility demands needed in the face of digital innovation. Redefining and co-creating employment opportunities through more responsive role-based and gig-like work is a reality. These opportunities need to be available to both full-timers and freelancers. n

What leaders need to do today for tomorrow Leaders will have the opportunity to reshape their organisations and society at large for the better if they accelerate reskilling people. But it needs to happen at an accelerated speed. Prioritize skills for development - Selecting skills training will depend on the type of machine intelligence

Dr. Roze Phillips, Managing Director for Accenture Consulting in Africa

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ADVERTORIAL: ASPIRE CONSULTING ENGINEERS

Zeenat Ghoor and working with SWANS For over a decade, passion, enthusiasm, discipline and skill have driven Zeenat Ghoor as an entrepreneur and business executive. Her company, Aspire Consulting Engineers (Pty) Ltd, provides structural and civil engineering services to the public and private sector and shows no signs of slowing down, whatever the market conditions. Describing it as a ‘proudly South African company’, Aspire delivers engineering solutions in the residential, commercial and industrial space. The scope includes not only civil and structural engineering, but transport and planning expertise. A significant 99% of Aspire’s work is in the private sector. An almost fanatical commitment to excellence, and the employment of creative and lateral thinking aimed at deriving the most appropriate, cost-effective and practical solutions is what sets her company apart from the competition. This is achieved by Zeenat’s policy of employing SWANS: • People who are Smart • People who are hard-Working • People who are Ambitious, and • People who are Nice.

Today the company has offices in Johannesburg and Durban with a satellite office in East London. While the majority of Aspire’s clients are South Africa-based, Ghoor wasn’t afraid to branch into work in Malawi and Botswana when the opportunity arose recently. ‘Repeat business and word-of-mouth is critical in our industry and Aspire Consulting Engineers has been privileged to be associated with a client base that continuously feeds us work. Key areas of expertise are commercial buildings, residential high-rise buildings, petrol filling stations and industrial facilities. Though operating as a 100% black-owned female enterprise, Ghoor is firm that BEE is not the core selling point (though such transformation is to be celebrated). ‘I have seen BEE lead individuals to assume your company is less competent because of your empowerment credentials. I realise it is not about me, it is about them,’ says Ghoor, referring to the challenges still persistent in the market when it comes to perceptions of black, womenowned companies. She acknowledges that there is debate about women in engineering, particularly at a time when there are so many women entering the industry. ‘Women have the innate ability to create and this makes them skilled at delivering in an industry that celebrates creation – buildings, bridges, services reticulation, platforms and access to life’s basic resources.’ Every entrepreneur worth their salt realises that business often has humble beginnings. Aspire was no different. Today, R200 million over three years is the ideal project size for Aspire and the type of deal-size the company thrives on. In addition to the consulting services, Aspire also offers project management to private clients and is hands-on in the construction space. Aspire Consulting Engineers remains positive about the future and about the potential for growth and development it can add to this exciting space. n

Aspire Consulting Engineers T +27 (0)11 262 2783/85 E info@aspireconsulting.joburg

V F

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ENTERPRISE RESOURCE PLANNING

Why SMEs are implementing ERP solutions, how to do it yourself By Heinrich van der Vyver

While Business Operating Systems (BOS) or Enterprise Resource Planning (ERP) systems as they used to be called, were once viewed as a business solution only for large corporations, research shows that SMEs are starting to think differently. A properly implemented BOS strategy allows SMEs to run as the smaller company they are, while effectively levelling the playing field and allowing them to compete alongside bigger companies. In a survey conducted recently with over 300 respondents in SMEs, it was found that 77% of them have already implemented a BOS solution. Indeed, for those SMEs that have not yet implemented ERP, the top reason they stated that would make them do so is because it supports explosive growth (39%), and the sudden availability of low cost options (39%).

9 Reasons why SMEs implement a BOS strategy 1. Manage growth - The main driver for BOS being implemented in SMEs is the need to manage growth expectations. With the economy slowly recovering,

SMEs are aware that unsupported growth on the back of patchwork systems could result in business-failure. 2. Reduce costs - More than that, BOS is a source of cost savings and operational improvements. Once the BOS solution is implemented it allows SMEs to keep track of their growth, spot bottlenecks, view profit and loss and manage inventory, all the while running a smoother, more efficient operation and managing their staff better. 3. Be easier to do business with - If SMEs want to grow, they need to go face-to-face with their competition and establish themselves as industry leaders among their target markets. One way to do this is to improve their standing among customers. SMEs are also feeling the pressure to become easier to do business with and to improve their overall customer experience. BOS helps SMEs run their businesses more tightly and so provide their customers with accurate information, and meaningful customer service.

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ENTERPRISE RESOURCE PLANNING 4. Multi-location - As SMEs grow, they often add additional operating locations. BOS allows these organisations to communicate effectively with each other and gives decision-makers visibility into the daily operations of these geographically diverse locations. 5. Gain managerial insight - The saying goes, ‘you cannot manage what you can’t measure’ and in the case of SMEs this is especially true. Without visibility into the business it is impossible to correct course or identify the places where the business is underperforming. With BOS, adverse events (bottlenecks in production, staff productivity, stock shortages, etc.) are discovered quicker, allowing management to respond before the negative impact. 6. Integrated rather than multiple points - Since BOS is meant to be an organisational system of record; SMEs prefer an integrated system (all-in-one) rather than a patchwork add-on solution. However, it is important for BOS to be able to integrate with other systems - e.g. import bank statements for accounting. 7. Ease and speed of implementation - Growing businesses can’t afford lengthy downtime during BOS implementation. You need the systems in place quickly, but heed caution not to cut corners. Since BOS is the foundation on which the organisation will be built, that ground needs to be stable, even while being implemented quickly. 8. Access to BOS from mobile devices - Cloud hosting makes this possible for any internet-enabled device. 9. Automated alerts - BOS notifies decision-makers about events that will affect the business as soon as they happen. If a manager is acting on outdated information, the plans are wildly inappropriate for the current situation. Spot and stop issues before they become issues. These considerations extend beyond mere total cost of ownership and should be carefully considered when selecting an ERP.

9 Steps to BOS implementation success Implementing any new system requires a fair amount of change management, planning and an acceptance of the fact that it will disrupt the business, even if only for a short while as the team adjusts to the new system. Being prepared for this process will guarantee success. Here’s how. 1. Be aware of the cost and time constraints - Even though cost-effective BOS solutions are available, implementing one should be seen as a separate project with its own costs and timeframe. 2. Benchmark current operations to get a baseline of performance to measure progress against Understand and define your current and future state processes before deploying new software. As much as possible, try to use the configuration settings and templates provided by the software provider to tailor the business logic to match your preferred business processes.

3. S et business, process, and technology standards - BOS helps to enforce standards that ensure everyone in the business is using best practices, and that the organisation is running as efficiently as possible. 4. Get senior management buy-in - Lack of senior management support would lead to abandonment of the project, or unenthusiastic integration of the system into the business. Discuss the BOS strategy and benefits of implementation clearly. 5. Use a BOS agent or consultants for the BOS implementation - Most SMEs believe this is a pricier option than doing it themselves; however, this is not the case in the long run. Not only will the business agent manage the system implementation, but they will also review business operational flow and could spot areas of vulnerability that have gone unnoticed, and are eroding business growth. 6. Test end-user acceptance - End-user resistance is often encountered due to a common fear most people have of new technology. The best way to deal with this is to clearly communicate the change through the entire organisation, and keep staff involved in the design and UAT process. 7. Assign a job role or group dedicated to data management - Data is only as useful as it is accurate. Incomplete or outdated data leads to process failure, poor performance, and low productivity. Measure the benefits from the BOS 8. implementation - SMEs are almost twice as likely to properly measure the ongoing performance affected by BOS. You need to make sure this process was worthwhile. Based on your benchmark figures before installation, and once the teething problems have settled, the benefits should be clear pretty quickly. Teach and keep on doing so after 9. implementation - Once implemented, invest time in training your existing team, and include BOS training as part of your induction programme for new staff members. If updates are included with your BOS solution, make sure your team is trained on the new functionality. n www.quickeasysoftware.com

Heinrich van der Vyver, Managing Director for Quickeasy Software

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ENTREPRENEURIAL GROWTH

New hope for SMME development By Lindi Engelbrecht

Entrepreneurship has long been touted by government as the answer to unemployment. The basic idea: create businesses and businesses will create jobs. This is exactly what the National Development Plan (NDP) stipulates, that Small, Medium and Micro Enterprises (SMMEs) should deliver 90% of the new jobs required to eliminate poverty and radically reduce unemployment by 2030. But, to deliver profits for the entrepreneur, and jobs for the nation, first you need to start a business, then you must keep it alive, then you must grow it. Anybody that has attempted any one of these three phases will testify that this is no easy task. Statistically the odds are stacked against you. According to the 2016 SMME Insights Survey conducted by the South African Institute of Chartered Accountants (SAICA), only two in ten SMMEs make it past two years.

SMMEs need to thrive, not just survive In life and in business “success” is a relative term. In the SMME arena “success” is often, on the way to achieving a dream, seen as the absence of utter failure. A more

realistic assessment of the initial set of objectives is survival rather than success. To be of true benefit to the entrepreneur, and to the nation’s aim of reducing unemployment, however, SMMEs need to thrive, not just survive. While the nature of the entrepreneur is optimistic and typically focused on the end goal, a counter intuitive approach to SMME “success” could involve defining the most likely steps to failure. Then, the obvious modus operandi is to avoid these pitfalls at all costs. The specific causes of business failure are varied yet there seem to be a few common themes: • Lack of market research • Inadequate funding • Poor cash flow management • Lack of leadership • Poor risk analysis By understanding the biggest challenges facing SMMEs, SAICA has been able to work closely with strategic partners and government in an ongoing process

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ENTREPRENEURIAL GROWTH of finding solutions to the struggles SMMEs face. In SAICA’s acclaimed SMME survey, small and medium sized businesses have told us of the greatest obstacles that get in their way. They are: • Too much red tape from both government and big business. • Employment laws that make hiring dangerous. • The lack of tax incentives to grow or to employ. • Slow payment from government and big business. • The difficulty in raising growth capital. New business ventures are innately risky, and risk cannot be eradicated. However, SMMEs can avoid some risk and government and big business can alter the environment in which SMMEs operate so they are more likely to succeed and to create GDP growth and jobs. This process of internal reflection to avoid the risk of failure, and a concerted effort to create conditions that suit SMMEs would give them the best possible chance of success. By implementing the strategies below, government would be giving SMMEs a fighting chance to take their business beyond just their first two years, and of meaningfully impacting employment. • Penalising government departments, State-Owned Enterprises (SOEs), municipalities and big business that don’t pay SMMEs within 30 days or rewarding those that do. • Decreasing and simplifying the red tape required to run a small business. It has been done in other fastgrowing, developing economies both in Africa and abroad. • Re-examining the relationship between SMMEs and labour. Allowing SMMEs to grow and reduce their labour requirement more flexibly, thus encouraging labour-intensive rather than capital-intensive growth paths. • Introducing tax relief for start-ups and tax incentives for SMMEs who grow, employ and create jobs. Lindie Engelbrecht, Executive Director of Members and Global Alliances at SAICA agrees: ‘SMMEs stand ready to grow and to create jobs. They just need to be enabled to do so. All we need to do is pay them on time, take away red tape, relax employment laws for them and create a stimulatory tax environment under which they are rewarded and incentivised for growth and employment.’

South African

South African tor Business Integra

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Issue 6

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September 2017

South African

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Myers Attorneys:

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Issue 8 September 2018/Febru ary 2019

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: Clay bricks ers

Informal economy: Promoting health and safety

‘SAICA’s enterprise development will also grow South Africa’s entrepreneurial ecosystem through advancing the sustainable growth of small Black businesses (as defined by the BEE codes). Through this we want to provide a full suite of affordable business services for the SMME market so that businesses and their funders will be able to operate with the assurance that the accounts and records produced are of a standard and quality that can sustain them,’ Engelbrecht concludes. The entrepreneurial road will never be easy. It is a path requiring courage, confidence and a tolerance for (calculated) risk. Yet, in this atmosphere of social, economic and political change there is hope that the fetters constraining entrepreneurial development will be considerably reduced. This will serve as a catalyst for renewed economic growth and the reduction of unemployment. The SMME “cause” is one for the benefit of all. SAICA, through its members, is determined to facilitate the rally. n

AT I ON PUBLIC

Young entrepreneurs New hope for SMM E development

“

SMMEs can avoid some risk and government and big business can alter the environment in which SMMEs operate so they are more likely to succeed and to create GDP growth and jobs’

tips for savv Five financial neurs female entrepre

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ss Integr lopment I Busine

I Economic Deve Current Affairs

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FINANCE

Why profit and turnover can be misleading for SMEs By Simon Leps, CEO of XPRS Capital Africa

It’s not easy for business owners to predict future financial challenges and irregularities that may negatively impact a business’s operating costs, and even profitable companies are at risk of going bust if they fail to plan for unforeseen cash flow problems. This is according to Simon Leps, CEO of XPRS Capital Africa, a specialist business funding provider geared towards rapidly vetting and approving short-term business funding. He says that it is key for small and medium enterprise (SME) owners to understand that the future health of their business depends on whether they always have capital available to keep operating. ‘It is a common mistake, particularly in the first few years of an expanding SME’s existence, to believe that the business is doing well solely because it is growing its turnover and profits. However, if new clients fail to pay in the stipulated timeframe, or if all capital is tied up in

assets, the business owner may be unable to pay the bills despite the company being profitable. ‘Similarly, if a new business’s operating costs are substantially more than originally expected, turnover may be growing but profits and cash flow could be diminishing.’ Leps explains that while both turnover and profit are good indicators, they are just two of the many crucial factors that all business owners need to monitor carefully. He urges SME owners to not be distracted by these two metrics at times of increased business confidence. ‘The Rand Merchant Bank (RMB)1 Business Confidence Index shows that business confidence in

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FINANCE South Africa rose by 11 percentage points in the first quarter of this year following President Cyril Ramaphosa’s election as leader of the ruling African National Congress in December of 2017. ‘Although the mood is far more optimistic, and businesses might be willing to expand and take on more risk, not much has actually changed. We are still dealing with high inflation, low growth, higher taxes and increased fuel prices. Business owners need to invest carefully so that they are positioned to take advantage of the expected growth while still being able to slow things down in the case that the growth in the economy does not materialise as expected,’ says Leps. Leps adds that in this environment business owners need to ensure that they have enough cash in the business to keep it operating. ‘Bills need to be settled, and employees and creditors need to be paid every month. Additionally, an emergency reserve should always be available in case equipment unexpectedly breaks, temporary staff needs to be employed at short notice, or a key supplier suddenly needs to be replaced. In any of these cases, not having cash on hand will halt a company in its tracks, regardless of its profit and turnover figures. Owners need to be able to focus on both the macro and micro issues at their companies so that they have a clear 360-degree view and are able to plan for things that they see coming as well as for unforeseen issues.”

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Leps explains that it is also vital for SMEs to be able to access credit quickly and affordably when they need to maintain cash flow levels. ‘There are many funding options available to SMEs today. Making sure that the business maintains good credit scores, overall cash flow and debt will help the owner to get the credit they need to solve temporary cash flow challenges. It also works in the SMEs favour to have up-to-date audited financials and to keep track of other non-financial aspects that prove to potential lenders that the business is being run responsibly.’ ‘Cash flow is the lifeblood of any organisation, and understanding the relationship between profit, turnover and cash can mean the difference between an SME’s survival or failure,’ Leps concludes. n www.xprscapital.co.za

Simon Leps, CEO for XPRS Capital Africa

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FINANCE

New Twin Peaks model: The Big Bang of SAâ&#x20AC;&#x2122;s financial industry By Dr. Andy Schmulow, Senior Advisor at Datta Burton & Associates

On 1 April, a new regulatory model called Twin Peaks was implemented in South Africa. This will have a dramatic impact on the countryâ&#x20AC;&#x2122;s future financial regulatory landscape.

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FINANCE Many companies may not be aware that this model will have authority over every South African firm or business that offers a financial product or service. Dr Andy Schmulow, Senior Advisor to Datta Burton & Associates, says that the good news for consumers is that this will potentially create one of the most progressive and extensive consumer protection regimes in the world. The Twin Peaks model, which was first adopted in Australia two decades ago, was so named because of the two peak regulatory authorities it creates. One peak, termed the “system stability” regulator, is charged solely with creating and enforcing prudential regulations, designed to prevent a financial crisis. During the global financial crisis, the strength of Australia’s financial system was attributed to this regulatory model. The second peak is responsible for deterring misconduct and protecting consumers of financial products and services. Consequently, this model creates clear and unequivocal goals that are separated between the two peaks. This is a core feature of Twin Peaks: a model that recognises that the two peaks can have contradictory goals, and then creates the peaks as separate, but equal.

Consumers come first In South Africa, the first peak will be called the Prudential Authority and the second peak will be named the Financial Sector Conduct Authority. Both commenced operations on 1 April 2018. It is important for financial institutions to understand that this regulatory model abolishes the notion of multiple regulators – one each for banks, insurers, medical aid schemes, etc - and by implication, additional regulatory burdens with different interpretations from different regulators of regulations that are similar across various sectors. ‘For consumers, this will create, ideationally at least, one of the most progressive and extensive consumer protection regimes in the world,’ says Dr Schmulow, on the model’s implementation in South Africa. Dr Schmulow is an internationally recognised authority on financial regulatory architecture, and, Twin Peaks. He is also a member of the expert panel advising the South African National Treasury on Twin Peaks legislation. For the industry, this implies that the following must now assume roles equal to that of preventing financial crises: • Consumer protection • Treating customers fairly • Serving customers well • Addressing customer claims timeously • Conducting business ethically • Contributing to the goals of increasing financial inclusion and financial literacy (without undermining the market).

Empowering regulators What is less well-known is that these reforms will also introduce a new regulatory enforcement approach.

No longer will enforcement be conducted in relation to alleged breaches of specific provisions. Instead, enforcement will focus on outcomes. Those outcomes are often expressed in the new legislation in high-level terminology that defies precise interpretation. This gives the regulator an inherent advantage. Further, outcomes present a subtle shift in favour of how easily the regulator can win prosecutions; no longer must the regulator prove a breach took place, it can merely demonstrate that a group of consumers were disadvantaged. From a regulatory perspective, Twin Peaks will result in the empowerment of regulators in South Africa. In preparing to undertake this journey across a transformed regulatory landscape, financial products and services providers will need to understand not just the regulatory mechanics of the two new pieces of legislation that create Twin Peaks, but also the fine print. This calls for an understanding of the new legislation at an expert level to comply with the law.

Twin Peaks business seminars Fortunately for SA’s financial institutions, Datta Burton & Associates has partnered with Dr Schmulow, who is also a member of a panel of experts advising the South African National Treasury on the draft Conduct of Financial Institutions Act (COFI). COFI will be the principal piece of consumer protection legislation and complements the Financial Sector Regulation Act of 2017. After the confidentiality provisions surrounding COFI are lifted, Dr Schmulow will be leading Datta Burton & Associates in informing companies on how best to adapt. Informative business breakfasts will be held on 19 April and 3 May at WITS Business School for those who would like to learn the ins and outs and potential pitfalls of Twin Peaks. Seats are limited, so email sherina.januk@dbassociates.consulting or contact her on 079 871 9535 to make a booking. n www.dbassociates.consulting

Dr. Andy Schmulow, Senior Advisor at Datta Burton & Associates

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FRANCHISING

Exploring franchising to scale SMMEs By Bendeta Gordon

There are many ways to skin a cat, they say. For SMMEs this does not hold true when they need capital to grow. Though many SMME owners are willing to grow and create jobs, they aren’t spoilt for choice where the financing of growth is concerned. But all is not lost, according to Bendeta Gordon, chartered accountant [CA(SA)] and founder of Franchize Directions. ‘There is a way to finance growth which SMMEs have under-utilised, but which is proving to be a viable way for them to increase market share at low risk levels. We have

been researching and tracking franchising for more than 20 years and, over the period, franchising has consistently proven itself to be a great business expansion mechanism that reduces the business risks associated with growth and which also stimulates the economy and creates jobs,’ says Gordon.

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FRANCHISING

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With competition rife in many markets, franchising is a great way to make sure that a differentiated SMME grows at a pace and risk it can afford, while at the same time blocking potential copycat competitors.

Franchisee, franchisor…what is the difference?

Franchising is a way in which a company wishing to expand its reach, issues a licence to another party for a fee and then allows the other party to operate independently – but under strict business rules – using its products, brand name and business system. The franchiser is the original business owner and originator and the franchisee essentially replicates the original business model. While franchising as a model has many advantages for the franchisee, there are plenty of advantages for the franchisor, such as: 1. Access to capital Franchising allows a business to grow faster than it might conventionally, as the franchisee provides both the fixed and the working capital required for this expansion. Franchisors provide business rules, training, monitoring and assume the role of innovator and marketer for the total franchise group – for which franchisees reward them. 2. Franchisees are motivated managers Franchises are only awarded to people who have the required capital and who will make good managers. Because they have a financial interest in the business they are more likely to act in the best interest of the business. The better they manage, the more successful they are and for the franchisee, who is rewarded with a share of turnover in the form of a franchise fee. 3. Speed of growth With competition rife in many markets, franchising is a great way to make sure that a differentiated SMME grows at a pace and risk it can afford, while at the same time blocking potential copycat competitors. For a franchisor the faster they can establish a network of quality franchisees, the faster their growth, and the better their chances are of competing at scale with much bigger brands. 4. Supervision bliss The franchisor is not involved in the day-to-day running of each franchisee and they need not worry about supervision of staff or what the franchisee – who normally might be an employee – does on a day-to-day basis. This frees the franchisor to concentrate on the franchise brand and improving and growing the total operations. 5. Easier penetration into smaller hard to reach markets Owning a franchise also means that the business can

easily be expanded into markets and areas that are sometimes overlooked due to their location. In this case the franchisor finds a local business person to be the franchisee and this personal touch or network often makes all the difference. 6. Reduced risk Being a franchisor is less risky as much of the capital employed to fuel growth has been invested by willing franchisees. The risks associated with hiring staff, leasing buildings, and the establishment of the business all lies with the franchisee. The main risk the franchisor has is the brand being tarnished by poorly performing franchisees, which is why franchisee management and monitoring is so crucial.

What is required for a business to use franchising as a growth tool? For a company to become a franchisor, it should have the capacity and the willingness to take on the responsibility of creating and monitoring business rules, of innovation and marketing and of creating a competitive supply chain. They also must understand that the business requires the skill and willingness to mentor and support third party franchisees as the business grows. The following are some of the criteria which should be in place for a business to have franchises: • The market for the business’s products and/or services must be substantial and be sustainable over the long term. • The product or service must be differentiated meaningfully to its customer base. • The business model for the marketing and sale of products or services should: o have operated for at least one full year o demonstrate profitability, and o operate with efficient and effective systems of operation. • The brand should be distinguishable and be registered as a trade name together with the trademarks. • The franchise unit should still be profitable after factoring in franchise fees. Though eight out of 10 franchisees succeed, there are some who do not make it. Reasons for individual franchises failing are usually associated with poor management, poor location, or poor levels of working capital. These shortcomings can be prevented or managed by the franchisor in most cases. The scaling of SMME businesses using franchising is a real possibility for ambitious SMME owners who either can’t accumulate the required capital at the scale or speed that the opportunity requires, or by those who simply want to grow at lower risk levels. Either way, the concept provides the SMME marketplace with a way to overcome one of their biggest obstacles to growth. The consequent and knock-on benefits to GDP growth and job creation and poverty reduction are obvious. n

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Health and Safety

Informal economy: Promoting health and safety Authors: Dr N Naicker, Dr K Wilson from NIOH

Over 60% of workers earn their living through informal work[1]. The International Labour organisation (ILO) recently released a report that indicated that approximately two billion people make up the informal economy globally. The informal economy is represented in every country; however, it occurs predominantly in low to middle income countries such as South Africa. Of the two billion informal workers 58.1% are women. This distribution varies across the world, however in Africa the majority of informal workers are women[1]. What is the informal economy? There is no straight forward definition of the informal economy, especially since it covers a variety of activities, initiatives and people. It includes casual and contract workers along with those who are self-employed. Types of workers who fall into the informal economy include agricultural workers, construction workers, domestic workers, home based workers, manufacturing workers, street vendors, transportation workers and waste pickers. The ILO has expanded the definition to include all work and workers that are not regulated or protected by the state i.e. insecure work such as: 1. Informal self-employment along with: • employers running informal enterprises • own-account workers in informal enterprises • c ontributing family workers (in informal and formal enterprises) • members of informal producers’ cooperatives e.g. subsistence farming 2. Informal wage employment, i.e. employees hired without social protection contributions by formal or informal enterprises such as paid domestic workers by

households. Certain types of wage work are more likely than others to be informal. These include: • employees of informal enterprises • casual or day labourers • temporary or part-time workers • paid domestic workers • contract workers • unregistered or undeclared workers • industrial outworkers (cottage industries, homeworkers) [2,3]

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Health and Safety

Impact on health of the informal worker Workers generally enter the informal economy not out of choice, but because of poverty and the lack of opportunities within the formal economy. Research has shown that poverty and other social factors, including gender, education, housing; health care infrastructure as well as political, economic, environmental and cultural factors are associated with health. [4]. In addition, work that is insecure or where the working environment is not controlled and protected by regulations and laws such as the Basic Conditions of Employment Act or the Health and Safety Act is often unrestricted and as such can be hazardous and detrimental to workers’ well-being, including physical and mental health. Workers in the informal economy have little control over their work environment and virtually no training or access to occupational health and safety, resulting in a higher health risk profile [5]. Although research is limited, studies have shown that the negative impact on health in these workers is higher compared to formal economy workers. Informal workers like waste pickers are faced with multiple hazards. Waste pickers seek a livelihood from landfills by recovering waste (collecting, sorting, recycling and selling waste material). In doing this they are exposed to biological, physical, chemical, ergonomic and psychosocial hazards that are intensified by the lack of effective mechanisms to ensure access to personal protective equipment and health services. [6] Waste pickers have reported a significantly higher prevalence of work-related respiratory problems, neurologic symptoms, musculoskeletal injuries, hearing problems, dermatological symptoms and physical injuries. [7]. Cottage industry or home-based workers face a wide range of pollutants and exposure is often high due to lack of knowledge about the impact of the work on their health. The health impact may also extend to family members (particularly children and the elderly) due to the lack of adequate separation of work and living spaces. Cottage industries that involve spray-painting, recycling batteries, welding, and hairdressing, involve the use of highly toxic metals such as lead and have been associated with a range of detrimental effects on health, including reductions in intelligence quotient scores, hyperactivity, shortened concentration spans and aggressive or

violent behavior [8]. This will ultimately effect educational achievements, future employment prospects and lead to the continuation of poverty and inequality. With the current trend of outsourcing, more formal workers are becoming informal contract workers. Anxiety and depression was found to be higher in informal workers compared to formal economy workers, women in particular where at higher risk [9]. These are just a few examples of the health implications in this very heterogeneous sector.

Looking ahead The NIOH is committed to furthering the knowledge base in this area and has this initiated several projects to advance the research agenda and provide an evidence base for policy makers to reasonably improve the health and safety of these workers. In addition, occupational health and safety awareness campaigns have been held to protect and promote health in South Africa. n

References 1. International Labour organisation. 2018. Women and men in the informal economy. A statistical picture (Third edition). International Labour office. Geneva. 2. International Labour Organisation. 2002. Status in employment is used to delineate two key aspects of labour contractual arrangements: the allocation of authority over the work process and the outcome of the work done; and the allocation of economic risks involved. 3. Marth Alter Chen. 2012. The Informal Economy: Definitions, Theories and Policies. WIEGO working paper No. 1. 4. Halfon N, Larson K, Russ S. 2010. Why social determinants? Healthc Q. 14:9–20. [PubMed] 5. Alfers L and Rogan M. 2015. Health risks and informal employment in South Africa: does formality protect health? Int J Occup Environ Health. 21(3): 207-215 6. Lenis BV, López AYL, and Cuadros UYM. 2012. Health and informal work conditions among recyclers in the rural area of Medellin, Colombia Rev Saude Publica. 46(5): 866-874. 7. Cointreau S. 2006. Occupational and Environmental Health Issues of Solid Waste Management. The World Bank group, Urban Papers. 8. Teare J. Kootbodien, Naicker N, Mathee A. 2015. The extent, nature and environmental health implications of cottage industries. Int J Environ Res Public Health. 12(2): 1894–1901. 9. Ludimir AB and Lewis G. Is there a gender difference on the association between informal work and common mental disorders? Soc Psychiatry Psychiatr Epidemiology. 2005; 40(8): 622-627.

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HEALTH & SAFETY

The Good, the Bad, the Annoying? By Jacob de Coning, Senior Consultant at JvR Safety

What is the first thing that comes to mind when you think of safety in the workplace? If you work in an industrial environment you probably thought of signs, rules and paperwork â&#x20AC;Ś lots of paperwork. In the service sector you may have thought of the dangers of incorrect posture, staring at a screen for too many hours or sitting at your desk. Sitting is the new smoking you know! Regardless of the industry, this is not a topic that typically gets people excited. Considering the recent Listeriosis outbreak in South Africa, workplace safety is a topic that can become very important, very quickly. Admittedly, many companies do take safety seriously and this focus has indeed paid off. From mining to manufacturing, fatalities have mostly been dropping since 19941. However, many companies lament the fact that they are seeing a diminishing return from their safety efforts.

Why are incidents still happening? This leaves us with a fundamental question. If companies are investing so heavily in this area, why are incidents still happening? This is surely a question worth answering and most of us can agree that companies should be able to pursue their goal without harming people. Yet the curious case remains that people are often disengaged and, quite frankly, annoyed with the topic. Somewhere, through all the efforts to improve safety, we have forgotten about the very thing we are trying to protect â&#x20AC;&#x201C; the person. We attempt to engineer and regulate every possible

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HEALTH & SAFETY interaction a person may have with risks in their environment. While important, this approach has had an unintended consequence in that people have become so used to risks they are lulled into a false sense of security.

Reducing the need to think Through our over-emphasis on engineering and regulatory approaches to safety, we have reduced the need for a person to think about what they are doing. More frightening still, some companies seem to prefer it this way. We have heard from employees across different industries that they are not involved in planning their work or making work-related decisions. As some employees put it: ‘We get paid to work, not to think.’ However, once an incident happens you are almost guaranteed to hear the ubiquitous ‘why didn’t you think?’ response. Possibly because that is exactly what we are training people to do. It makes sense to control and remove risks where possible – hence the critical role of safety engineering. It also makes sense to learn from best practice and entrench these as guidelines that different companies can follow. On top of this, it REALLY makes sense not to disregard a tool that has been refined over several million years to efficiently handle input, adjust to its surroundings and which conveniently as a self-preservation drive built right in. Hint: It’s the brain…

“

Through our over-emphasis on engineering and regulatory approaches to safety, we have reduced the need for a person to think about what they are doing’

“

Somewhere, through all the efforts to improve safety, we have forgotten about the very thing we are trying to protect – the person.’

be involved in every minute part of the business, however, they do want to have an input into the work they are doing. This notion is backed up by research supporting the idea that employees are more engaged when they have a sense of autonomy and agency, which contributes to a sense of ownership2,3. 2. Involve individuals in planning their tasks. Individuals like to know that what they are doing contributes to a larger whole. Involving a team in planning their work greatly improves the odds of them being committed to the goal4. On a practical note, proper planning can assist workers to complete their tasks in a more efficient manner 3. Use questions more than “telling”. Most safety conversations involve telling adults how to do their work, or what not to do. Moving from a “telling” mindset to using questions not only involves the person more, but ties into the structure of their brain to keep their attention. Through using questions employees are immediately more engaged and it improves the chances of them thinking through their tasks, rather than just listening passively. People want to do great work, to perform well on difficult challenges5. Perhaps it is time to involve them in one of the most difficult challenges faced by the industrial world; reaching our goals and continuing the march of progress without losing people along the way. n www.jvrafricagroup.co.za

It is quite ironic that at the time when we are placing ever more sensors and learning algorithms into machines to better enable them to deal with their environments; we are suppressing those same qualities in human beings. Granted, humans are not always the easiest things to work with, but the same goes for microwaves and we have learnt to work effectively with them.

Simple ways to promote safe behaviour 1. A llow people to think and make decisions. We have found that employees understand that they cannot

Jacob de Coning, Senior Consultant at JvR Safety

References: 1. Mckay, D. SA mining laments rise in number of employee fatalities in 2017. Miningmx.com. [Online] 2017. 2. Freaks, D. Motivating Employees Has Everything To Do With Giving Them Feelings Of Ownership. Forbes.com. [Online] 2014. 3. Schawbel, D. How Companies Can Benefit From Inclusion. Forbes.com. [Online] 2012. 4. Newport, C. Professor. How to love your Job. s.l. : Tiny Leaps, 1 March 2018. 5. Whitehurst, J. Decisions Are More Effective when More People Are Involved from the Start. Harvard Business Review. [Online] 2016.

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HUMAN RESOURCES

Duck! Here comes another acronym! By Craig Raath, Executive Director at 21st Century

There have been several buzzwords trending in the human resources space over the years, all with the explicit outcome of holding onto employees and ensuring that your organisation is a cool place to work. In my time I have seen the buzzwords (and related strategies) progress from “Retention” to “Attraction and Retention” to “Engagement” to “Employee Value Proposition” (EVP) and now “Employee Experience” (EX). But isn’t EX just another way of saying EVP? And isn’t that the same as Employee Engagement? Someone, pass me a thesaurus! So, what is EX? “Employee Experience is the sum of the various perceptions employees have about their interactions with the organisation in which they work” - Tracy Maylett & Matthew Wride So, isn’t that Employee Life-Cycle (ELC)? Well, apparently not – ELC is part of the broader EX concept. The key difference here is that ELC has a beginning and an end, from recruitment to exit and all the HR parts in the middle. EX is much more than EVP, ELC, the table tennis table by the kitchen, the company bar and dress-down Fridays. Then, if EVP is the sum of all the offerings provided by an organisation in return for the value an employee brings to the organisation and Employee Engagement is the result of a well thought out and compelling EVP, then where does EX fit? Confused yet? An effective EX strategy ensures that employees are engaged at each stage of the employment lifecycle. For example: recruitment, onboarding, career growth opportunities, reward initiatives, performance processes and perhaps, exit. Disengagement at any point in the ELC leads to a poorer EX. If your aim is to run a successful business with happy employees and clients, then you had better understand what it is that your employees want. Today. So how do you create a winning employee operating environment? There are several tools out there that allow

you to test EX, EVP, engagement, satisfaction and culture. Choose what works best for you, but understanding your people is a leadership challenge that should be a standing agenda item at every Exco meeting. The client is king and customer service is our top priority? Richard Branson perhaps says it best: ‘Look after your staff and they’ll look after your customers. It’s that simple.’ I love my job, not because I am obsessed with HR, reward, organisational development or consulting. That’s what my organisation does and although I am exceptionally proud to represent it in doing so, I love my job because I love the way I feel when I am at work or doing my job. It is a combination of interacting with my colleagues, the environment, the flexibility, the values, the growth, the impact we make, the innovative thinking, the laughs, the

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HUMAN RESOURCES

exciting future prospects and yes, the company bar. Do we have a formal EX strategy? Well no, but we are small enough to not need one. We can still look each other in the eye and see that the light is on. We are flexible enough to cater for different personalities, cultures, life experience and still give all our employees a home where we have a common purpose and shared values. I acknowledge that many organisations need a more formal approach and a leadership driven strategy to ensure that it provides an environment that encourages a great EX. Having said that though, whichever acronym you prefer to use in your organisation, letâ&#x20AC;&#x2122;s not overcomplicate things. Letâ&#x20AC;&#x2122;s simply ensure that our organisations are a Cool Place to Work (CPTW). n www.21century.co.za

Craig Raath, Executive Director at 21st Century

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OPINION: HIGHER EDUCATION

Career GPS Keeping your career on track By Alison Reid

In a world that has become more complex, individualistic and saturated with information, how does the modern manager best make use of resources to achieve their career goals? The recommendation is that you learn to use a career GPS, rather than just learn to drive a car – an analogy that works.

For much of human history, people have followed vocations or been ‘matched’ to the right job. With a growing emphasis on the evolving potential of human beings, jobs became seen as ways that individuals could continuously develop and become something more in a life-long process. There has also been a shift from the perception that an organisation owns and therefore manages and develops careers, to the individual owning and developing their own careers. In this sense an organisation ‘leases’ your time and energy in a formal and psychological contract but doesn’t own it.

In a business context that is relatively unchanging, where jobs last a lifetime and a job description defines a person’s career, the ‘car analogy’ works. You get a specific type of car, a manual describing how it works, and training on how to drive it. That’s certainly necessary at certain points of your career, but in a changing, uncertain, complex and cocreative situation, the GPS analogy is more helpful. A GPS (Global Positioning System) uses satellites as reference points to calculate position. In the case of careers, the reference points would be your desired future, current reality and the best route to get there (in terms of management education resources).

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OPINION: HIGHER EDUCATION If a manager knows how to use their own unique GPS reference points, they can match the vehicle (education resources) to the terrain they are in. The GPS navigation skills they develop through the process are life-long skills.

What are the navigation skills needed to operate your career-GPS? Programme the destination: This involves clarifying what you would have if you achieved your career goals as personally meaningful outcomes. Some useful questions would be: ‘What will I have when I’ve achieved this?’; ‘What contribution do I want to make through my lifelong career?’ and ‘If I could design a career that made me happy, productive and creative, what would it look like?’ Programme your departure point: Assessing your current reality requires you to ask tough questions about where you are now in relation to the future you aspire to. Reflecting on things that are important and meaningful to you are part of this reality, for example personality preferences, values, etc. Another part is being realistic about your capabilities, from technical skills, to management and leadership abilities. Because you can over- or under-estimate your own abilities, it’s useful to use a 360-degree process to get the input of others around you who work closely with you. Plan and resource your journey: Once you have a destination and departure point, you can make choices about the best route to use and what management education resources will best suit your journey. In your career, the following resources may help you plan this management education journey: • Management education programmes teach functional knowledge and skills that help you to learn the specifics of a technical area of management, e.g. finance for non-financial managers or project management skills. • Senior education programmes teach an integrated management capability that can help you to step out of a functional management comfort zone and step into general management or senior management roles, e.g. general management, strategy or executive education courses. • Executive or senior management interventions facilitate your ability to personally deal with complexity and leadership skills or decisions in ways that are specific to your individual context, e.g. executive coaching or facilitated leadership interventions. • Real-time expert advice on decisions, role responsibilities or political dynamics specific to your role, company or industry are useful. Seek a mentor who in your opinion displays the expertise or experience in that area.

“

The skills of navigating your career according to your personal reference points over the course of your life are important and help you to make strategic choices about the ‘vehicles’ or interventions that will most help you.

• Read about validated best practice in a specific area of business or management in books or journal articles, e.g. “Relevant human capital strategies for emerging markets”. • Scan the environment and keep abreast of the broader business context from peer groups of respected, valued individuals who can offer opinions on an issue of common interest from a diverse perspective. The skills of navigating your career according to your personal reference points over the course of your life are important and help you to make strategic choices about the ‘vehicles’ or interventions that will most help you. Select an army of resources from programmes, coaches, mentors, peer groups, communities of practice, and formal skills that are the best resource for your journey right now. Choose your resources wisely in relation to your chosen GPS destination - your personal reference point for the life-long career contribution you want to make. n

Alison Reid, Associate Director: Personal and Applied Learning at the Gordon Institute of Business

Alison Reid is the Associate Director: Personal and Applied Learning, Personal and Applied Learning at the Gordon Institute of Business Science and is a business coach and facilitator

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College of Business and Economics (CBE) School of Public Management, Governance and Public Policy (SPMGP)

The Centre for Public Management and Governance in the SPMGP offers an innovative HEQCaccredited distance education Higher Certificate in Local Governance and Management (HCLGM) Do you want to improve municipal management and governance in South Africa? Get a qualification in Local Governance and Management in the School of Public Management, Governance and Public Policy at the University of Johannesburg and pursue a career as a skilled professional in a municipality, provincial government, public sector or community organisation. The qualification equips learners with the interdisciplinary knowledge, skills and attitudes to successfully cope with the competition, demands and the challenges where state, market and civilian’s interact in the shaping of governance and society. The programme contributes to the development of management skills of political executives, strategic executive managers (senior, middle and line managers) and other role-players contributing to the development of improved service delivery in his/her organisation and the overall public and municipal sector. ACCREDITATION: This local governance capacitybuilding programme was developed by the Centre for Public Management and Governance in the SPMGP and is fully accredited by SAQA at NQF Level 5 with 120 credits. TARGET AUDIENCE: Matriculants, municipal councilors and municipal officials who need to expand or update their knowledge and skills in the field of local governance, in order to improve the quality of municipal decisions and actions aimed at the delivery of local government services. PROGRAMME GOALS AND ENVISAGED OUTCOMES: • Improved knowledge and understanding of the context and dynamics of general developmental local governance in South Africa; • Improved personal development within the context of a public service ethos and access to more advanced education and training opportunities, and the strengthening of local government professionalism; • Acquiring/enhancing advanced competencies in different areas of local governance to improve the quality of local government services delivery;

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• Professionalization of local government and management; and • Improved marketability and employability of learners especially within the operational functioning of local government in South Africa, but also in other public sector agencies and in the private sector. DURATION: One (1) academic year: February to November ENTRY REQUIREMENTS: Successful completion of the Grade 12 Senior Certificate or National Senior Certificate (NSC/Matric). PRESENTATION AND SCHEDULING: The medium of instruction for the programme is English, and all course materials will be provided in English. The seven modules are presented monthly by distance education over 2 semesters, through an integrated combination of interactive study material consisting of lectures, learning and reading material followed by individual formative self-evaluation tasks and activities, summative assignments a self-study programme in preparation for an examination in selected modules at the end of the year. REGISTRATION: Students can only apply and register for this course online. No hardcopy or emailed applications will be accepted whatsoever. If a municipality wishes to enroll their students, either the Skills Coordinator, or the individual student(s) need to follow the online application and registration procedures. If a municipality requires an invoice for students, please send the request directly to Miss J Mathekganye, jmathekganye@uj.ac.za and include all student names and student numbers.

APPLICATION DATES: 15 October 2018 – 15 January 2019. REGISTRATION DATES: 15 January 2019 – 15 February 2019. For a student to register for their year modules, a minimum positive balance of R4500.00 must appear in the student account. If a municipality is paying for a student, they need to ensure that this minimum amount is paid before registration closes 15 February as there will be no late registration opportunities whatsoever. Students who have not applied online by 15 January, and who haven’t registered themselves by 15 February will not be allowed to receive study material. Module

Cost

Module 1 Regulatory and Institutional Framework for Local Government

R3 500

Module 2 Municipal Policymaking and Analysis

R3 500

Module 3 Integrated Development Planning for Municipalities

R3 500

Module 4 Local Economic Development Strategies for Municipalities

R3 500

Module 5 Municipal Project Management

R3 500

Module 6 Municipal Financial Management

R3 500

Module 7 Municipal Human Resources Management

R3 500

The above fee therefore includes all costs but excludes IT and registration fees. VAT is not payable on tuition costs of higher education institutions.

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2018-08_UJ CBE_SA Bus SABI Vol 8 Issue.indd 63 Integrator Full page ad_v01_repro.indd 1

2018/08/07 19:19 2018/08/27 11:55 PM

PROFILE: CBE

College of Business and Economics, University of Johannesburg The University of Johannesburg (UJ), College of Business and Economics (CBE) launched in July 2017, is an integrated mega-entity that will lead the African continent into a new era of academic and professional knowledge production and professional expertise CBE’s aim is to elevate commerce professions in South Africa and the African continent. It was formed by combining the innovative strengths of the historical Faculty of Economic and Financial Sciences, and Faculty of Management. Attention was given to providing a balanced perspective aligned with, and within reasonable reach of, the UJ strategic intent towards global excellence and stature by 2025.The CBE comprises six schools which serve an estimated 20 000 full-time students and a further 7 000 parttime continuing education students, totalling about 40% of UJ student enrolment. UJ has established itself as an institution of global excellence and world-class stature, while providing accessible higher education. The scale and accessibility of the UJ CBE highlights the university as a newgeneration university-of-choice anchored in Africa, seeking continuously to deliver its strengths in serving Pan-African ideals, among which is its footprint in management education. ‘In lending a hand to the country and continent, the CBE will remain fleet of foot, responding efficiently and effectively to the changing needs of society and the economy,’ says Professor Daneel Van Lill, Executive Dean: College of Business and Economics, University of Johannesburg.

Johannesburg Business School (JBS), one of the largest business schools in Africa Core to the CBE is its Johannesburg Business School (JBS), which is one of the largest business schools in Africa. Under the leadership of its Senior Director, Prof Lyal White, workshops, forums, executive education and formal degrees are skilfully designed to develop and equip effective, ethical, impactful and enterprising African leaders and managers. Within the strong research and academic foundation of the University of Johannesburg, the JBS embraces new technologies as well as innovative teaching and

Professor Daneel Van Lill, Executive Dean: College of Business and Economics, University of Johannesburg

learning methods to advance visionary and critical thinking. The JBS is committed to developing successful African leaders and managers with a focus on context and building on international networks and research collaborations to become the leading school of African management thinking and academic rigour.

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PROFILE: CBE CBE School of Accounting produces more than a fifth of all African candidate-chartered accountants The transformation of chartered accounting in South Africa is being driven from the CBE School of Accounting (SoA), headed by its Senior Director, Prof Amanda Dempsey. UJ is annually produces the biggest number (more than a fifth) of all successful African candidatechartered accountants in the country. The school's programmes are accredited by major national and international industry bodies, including SAICA, CIMA, ACCA, CISI, AAT and IEDC.

CBE School of Consumer Intelligence and Applied Information Systems at the forefront of setting business and consumer trends Insight into markets facilitated by contextual knowledge and employment of information technology is the unique offering of the CBE School of Consumer Intelligence and Applied Information Systems (SCIIS), headed by its Director, Prof Mercy Mpinganjira, strives to be at the forefront of analysing, predicting and setting business and consumer trends. The SCIIS already offers a benchmark Honours programme in Marketing Management in South Africa and has strong industry partnerships with national and multi-national organisations. In 2017 the school received the Digital Empowerment Award at the Bluemagnet Achievement Award Ceremony for the school’s commitment to digital empowerment.

CBE School of Public Management, Governance and Public Policy builds on best practices, improves governance and management capacity The CBE School of Public Management, Governance and Public Policy (SPMGP) collaborates with a wide range of role players in African and South African developmental government processes. The SPMGP, headed by its Director, Prof Christelle Auriacombe, has achieved national and international recognition as one of the most successful higher education and training institutions to build on best practices and to improve governance and management capacity. The school provides customised professional development programmes in the public, private and voluntary sectors.

CBE School of Tourism and Hospitality ranked number one in hospitality and leisure studies in SA and Africa The CBE School of Tourism and Hospitality (STH), is ranked 20th in the world, a remarkable climb of 14 places from last year’s global ranking of 34 and ranked number one in hospitality and leisure studies in South Africa and Africa. The school is headed by its Director, Dr Diane Abrahams. Underpinning the mind-set of all the staff at CBE is the theme of connectedness, of productive and active interdisciplinary connections within the college and UJ, as well as a vast set of continental and international connections to ensure that, globally, the UJ College of Business and Economics is top of mind and top of class.

The CBE School of Economics is ranked fifth in SA for economics. The CBE School of Economics is a leader in the fields of competition and regulation economics, industrial policy, local economic development and financial economics. The SoE hosts the SARChI Chair in Industrial Policy, the UN IDEP programme, CCRED (the research centre of competition and regulation economics) and CENLED (the centre for local economic development). The SoE, headed by its Director, Prof Hardus van Zyl, is ranked fifth in South Africa by the RePec academic rating system for economics. South African

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INFORMATION TECHNOLOGY

Power shifts in data ownership is revolutionising the Internet and cybersecurity Information is one of the most valuable commodities. Every day, 2.5 quintillion bytes of data is created and either has a direct monetary value or can be mined for business intelligence to get a competitive edge. Data is the lifeblood of any organisation. Without the Internet and connectivity, business survival and economic growth is impossible. The original intent of the Internet was the unrestricted flow of information in an open and shared network owned by the community. Data ownership was intended to reside with its creators in a decentralised model, free from monopolistic or centralised control. However, large corporations quickly realised the value of tracking, storing, organising and monetising information for use in centralised services. Although not owned by a single entity, large corporations and data giants like Google support some of the most critical components of

the Internet, such as search engines, web hosting, cloud computing and email services.

The case for decentralisation As the reliance on the Internet deepens, so does the sharing of sensitive data and the need for greater privacy, data security and integrity. One proposed solution is a fully decentralised Internet independent of centralised control. This can be achieved with Blockchain technology

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INFORMATION TECHNOLOGY – a decentralised and distributed ledger system that facilitates and verifies secure peer-to-peer data exchanges. The biggest issues facing the Internet, such as net neutrality, privacy and security, pertain to issues of structure. Under a centralised model, access and convenience is offered to users at the expense of data ownership and privacy. While many service providers offer to store and safeguard data, security can’t be guaranteed. Servers can fail, networks can be hacked, and privacy rights can be violated. Decentralisation enables data and vital services to be owned by users and powered by a network of independent computers. This creates a setting much more resilient to hacks and failures as encrypted data can only be released and accessed through private keys. Decentralisation also breaks down the centralised barriers to business. With reliable high-speed Internet connectivity from Nashua, any business can access better, faster and cheaper services. Here’s how decentralised models can revolutionise the Internet and cybersecurity.

Decentralised web A truly decentralised Internet is possible with Blockchain technology. Ethereum is a platform on which apps can be built and run without fraud, censorship or third-party interference. User information is encrypted and stored on the Blockchain which prevents service providers from hoarding and mining user data.

Decentralised web hosting With only one target to hit, cybercriminals can quite easily shut down a website hosted on a centralised system. On Blockchain-based platforms, thousands of nodes or computers are employed to each serve a part

“

of the website. This makes targeted attacks much harder and reduces hosting costs. It speeds up user access to websites by bringing cached content closer to site visitors. Self-executing smart contracts can also be used to manage resources and payments while users also can rent out idle network and computing resources.

Decentralised data storage Blockchain enables users to use applications while retaining ownership of their data. By storing data on a decentralised and distributed network, the data is broken up, encrypted and stored across the Blockchain network. To access information, users need a private key to download the data from several locations at once. This not only speeds up the file access speeds but makes it increasingly difficult for cybercriminals to gain access.

Decentralised search engines Google controls up to 95% of searches. The engine tracks search activities and has access to personal user information. Decentralised search engines store encrypted user data across a network as opposed to in a central location where it remains vulnerable. They also use open and transparent search ranking factors. This will level the playing field for businesses and content creators.

Decentralised social media Social media platforms add significant connectivity value but at the cost of user privacy and data ownership. Decentralised social media channels will give back to users the ownership of data and reward users who choose to share information. The full potential of a distributed economy is still unwritten but innovative solutions by emerging Blockchain innovators have already proven that the sky is the limit. n

Decentralisation enables data and vital services to be owned by users and powered by a network of independent computers. This creates a setting much more resilient to hacks and failures as encrypted data can only be released and accessed through private keys.’

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We belive small is the new big, sustainable is the new growth and trust is the new competitive advantage â&#x20AC;&#x153;commercial legal services providerâ&#x20AC;? The Willows Office Park, Block 4, 1st Floor

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PROFILE: Kganare & Khumalo Inc.

K&K Attorneys on the legal frontline – innovative, creative and competitive From the dusty streets of Itsoseng (a township in the North-West province), Khumisi Kganare refused to take the back seat and let the status quo determine his future professional business endeavours.

Specialising in Commercial Law as well as Competition Law (anti-trust), Information and Communications Technology Law and Intellectual Property Law, areas regarded as cutting-edge in the legal fraternity, Kganare was admitted to the legal profession as an attorney in 2007 and is now the co-founder and director at Kganare and Khumalo Incorporated Attorneys (K&K), a small commercial law firm with offices in the Gauteng and North West provinces. Kganare and his partner, Madoda Khumalo, co-founded K&K in 2012 and started operating in 2013. The directors of the firm have extensive experience across a range of legal practice areas with a combined experience of over 10 years since admission as attorneys of the High Court. ‘Primarily, our vision is to offer specialist expertise, personalized service, as well as strategic and creative advice to clients. K&K provides a comprehensive law service founded on legal expertise and built around clients’ needs and expectations’, says Kganare. Kganare has participated in the Integrated Bar Project internship (100 law students placed at top law firms in South Africa); Practical Legal Training in Johannesburg; European Commission Competition Law Summer School at the Downing College, Cambridge University in the United Kingdom; United States of America Federal Trade Commission Certificate on Identification and Proof of Agreements under the US Anti-Trust Laws; and the Law Society of South Africa’s Commercial Law Programme (in partnership with the Irish Rule of Law International). In 2015, Kganare was appointed as a member of the Law Society of South Africa’s Digital LEADers Committee. In 2016, he was appointed as an independent adjudicator for the Wireless Application Service Providers’ Association. In 2017 he was invited by the World Intellectual Property Organization (WIPO) to join WIPO GREEN Experts Database. Kganare still serves in these capacities.

Khumisi Kganare, Associate Attorney and Co-Founder at K&K Attorneys

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PROFILE: Kganare & Khumalo Inc. Experienced in both public and private sectors It has always been K&K’s strategy to gather experience in both public and private sectors so that they are able to advise clients of the technicalities and dynamics in both these environments. As a result, Kganare spent considerable time in both environments prior the establishment of K&K. Being a boutique firm assisted K&K in going back to the fundamentals: finding a niche in which they have value to add and areas in which they are experts, building long-term relationships with clients, making reasonable commitments to clients and following through. ‘Being a small firm is one of our great strengths at the moment as clients can easily get in touch with us. We are flexible and are able to react quickly to changing market conditions. We are faster, agile and react quickly to avoid or minimise risk for our clients. We believe that small is the new big, sustainable is the new growth and trust is the new competitive advantage,’ explains Kganare. ‘We are forced to be innovative, creative and different so that we stay competitive in the provision of legal services. We are often on the frontline and systems at our firm can be changed as needed immediately to keep ahead of the game. We have come to realise that the gap of confidence between small companies and big ones is growing and that clients simply do not trust companies anymore, they trust the actual people on the frontline’, adds Kganare.

Involved in cases locally and internationally ‘We are experts in our fields, despite our size, as a result of our involvement with a number of top institutions in the country and global companies,’ says Kganare. K&K offers specialist legal support in the area of Commercial Law, which includes Commercial Transactions and Litigation; Due Diligence; Company Secretarial Services (i.e. Corporate Governance); Competition Law and Anti-Trust (i.e. cartels, exemptions, enforcement, abuse of dominance, mergers & acquisitions, etc.); Information and Communications Technology (ICT) Law; Intellectual Property Law (i.e. trademarks, domain names; copyright protection; trade secrets, infringements, etc.) and Energy Law, to mention a few. K&K is able to undertake legal work across South Africa as well as around the globe. ‘We were involved in a number of significant matters in South Africa and internationally,’ adds Kganare. In Europe, Kganare and Khumalo have assisted on various high-profile cases with one of Ireland’s top fullservice commercial law firms, headquartered in Dublin. Cases include everything from a commercial transaction leading to the sale of shares in one of the energy companies in Ireland; research and a memorandum of advice on the impact of Groundless Threats Provisions

for Ireland in respect of Intellectual Property (from a United Kingdom perspective); on a significant business sale transaction where a 5-Star hotel and golf resort was eventually sold for an estimated €30-million; to a case involving litigation and dispute resolution in preparation for and attendance of an international arbitration and preparation of memorandum of advice at the conclusion of the five day arbitration regarding a commercial dispute about a commission agreement. In South Africa, Kganare has been involved in the investigation and analysis of 22 acquisitions and merger notifications. He was and still is involved in some of the major cartel and exemption cases in South Africa (which also attracted media coverage owing to their magnitude).

A young and dynamic firm with young and talented people ‘We harness quality work, combined with reasonable fees, two important aspects we believe create value and could form the basis for establishing a growing base of loyal and long-standing clients,’ says Kganare. ‘K&K is a firm with low overheads, reliable owners, a small number of committed employees, personal client relationships and sustainable business models that drive reasonable profit; attributes we believe are a great opportunity of our time. Our firm requires fewer resources to operate and allows us to offer reasonable fees, thereby passing financial benefit back to clients one way or another,’ he adds. ‘We are a young and dynamic firm offering young and talented people a conducive environment to grow both as attorneys and related professionals. We inspire highly talented workers to join us. One of our primary objectives is to create a high-performance workplace where people will choose to work and give unreservedly of their energies, as well as feel a sense of personal achievement, satisfaction, individual purpose and security. At K&K there is synergy between personal missions, work challenges and organisational achievement, enabling us to stay unrivalled amongst our peers,’ Kganare ends. n

Kganare & Khumalo Incorporated Attorneys T +27 (0)11 039 2018 M +27 (0)72 760 5057 E kganarek@kkinc.co.za W www.kkinc.co.za

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OPINION: INFRASTRUCTURE INVESTMENT

Mobilising US-Africa pension funds to invest in African infrastructure By Anne-Marie D’Alton

Highly attractive infrastructure and private equity investment opportunities abound in Africa, but foreign pension funds’ willingness to invest in the region will depend on a more stable political and regulatory environment, and the availability of local peers to collaborate and co-invest in projects. This was one of the key take-outs from the US-Africa Pension Funds Trustees Roundtables Conference In Johannesburg, hosted by the National Association of Securities Professionals (NASP) and USAID as part of their “Mobilizing Institutional Investors to Develop Africa’s Infrastructure” (MiDA) programme. Organised in partnership with the Association for Black Securities and Investment Professionals (ABSIP), the Batseta Council of Retirement Funds for South Africa and the Institute of Retirement Funds Africa (IRFA), the day focussed on exploring investment outlooks and opportunities in African infrastructure and private equity, as well as views and experiences related to diversity and financial inclusion. Attended by 75 pension fund trustees, executives and investment professionals from across Southern Africa and the United States, the event saw participants actively engage in sharing findings, successes and concerns for achieving the best possible outcomes for retirees. Martin Kuscus, Chairman of the Board of the Mineworker’s Provident Fund, stated that the day represented a welcome opportunity to exchange views with representatives from the United States as both the world’s biggest economy and a country with highly developed capital markets. ‘South Africa is one of the leading economies on the African continent, so from our perspective it is encouraging to hear that the world would like Africa to succeed. It has also been useful for calibrating our thinking with global best practice, and to gain a sense of context from foreign investors in understanding where they may be risk averse to investing on the continent,’ he said. For example, US delegates seemed to agree that while Africa holds a wealth of long-term investment opportunities, many asset allocators prefer to invest in regions they are familiar with and need some sense of comfort of the security of investments. Participants

indicated that while Africa offered a favourable risk/return investment profile, political instability, the ability to perform a comprehensive due diligence and potential illiquidity remained some of the key risks. Delegates commented that the day was extremely useful in facilitating information sharing between the two regions, and that it was particularly beneficial for US delegates to gain a more detailed understanding of the challenges, benefits, risks and realistic returns of investments in African infrastructure and private equity. Charles Burbridge, Executive Director of the Chicago Teachers’ Pension Fund, explained that while African infrastructure investments represented similar levels of risk to infrastructure investments in the United States, US pension trustees and executives would prefer to partner with another pension fund or investment agency with indepth regional experience and political understanding to help de-risk investments. ‘Considering the potential for returns in consumer driven economies, and in terms of the age of its citizenry, we see huge long-term investment opportunities in Africa,’ he said. ‘But as investors you tend to manage to what you know and fear the unknown, and while today has shifted more of the world into the known, we would also look at what partners are available with boots on the ground that can do the necessary due diligence.’ Delegates also shared common experiences in implementing diversity and inclusion initiatives. While many agreed that the dearth of experienced black asset managers continued to represent a challenge, diversity and financial inclusion policies and initiatives offered the advantage of enabling funds to support the incubation of new firms and strategies and the diversification of manager types for the next generation of asset managers. Donna Sims Wilson, Chair of the National Association of Securities Personnel (NASP), said: ‘This gathering was an excellent experience for our members seeking

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OPINION: INFRASTRUCTURE INVESTMENT

to engage with industry peers in Africa to further our understanding of the opportunities in the region. We look forward to more exchanges with investors on the ground with similar investment philosophies, and that will ultimately lead to U.S. investors doing more business in Africa and opportunities for co-investments.’ CEO of Batseta, Anne-Marie D’Alton added: ‘The day has really been about leveraging the collective wisdom and expertise of like-minded local and global pension funds, participating complementary organisations and industry service providers. It marked the first step in building sustainable and strategic relationships. Institutional investors are the main suppliers of capital within the alternative investment space. Emerging market economies have much to offer and we welcome the opportunity to explore areas of future collaboration.’ MiDA and the associated organizations - ABSIP, BATSETA, IRFA, Standard Bank and BNY Mellon - have agreed to further the new partnership to pursue actions around three focus areas: 1. Facilitating trustee to trustee engagement to explore investment outlooks and key trends in African infrastructure and private equity, as well as to share experiences and best practices on board governance and financial inclusion

2. Facilitating meetings between trustees and service providers to connect with some of the best and most diverse products, asset managers and service providers in African and off-shore markets, and 3. Fostering relationships and exchanges among respective members and clients in Africa and the United States, leading to a second joint event in 2019 in South Africa, then releasing publications on lessons learned from these exchanges and offering thought leadership on ensuing solutions. n

Anne-Marie D’Alton, CEO for Batseta

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LEADERSHIP: CONSTRUCTION

Changes in the country’s leadership could bode well for the future of the construction industry By Njombo Lekula, Managing Director, PPC SA cement division Will this have significant bearing for the construction industry? In my view the answer is in the affirmative. The industry is poised to benefit in the medium to long term. The construction industry is generally a good indicator of economic performance. According to PWC’s report, SA Construction 3RD edition (2017), the industry is a significant contributor to employment and economic growth. Last year it contributed an average of 3.9% to national GDP. Following completion of 2010 Soccer World Cup projects, the industry slumped as major government infrastructure projects either dried up or slowed down. In fact, in the past few years we have seen a shift in

The country is currently experiencing a palpable positive mood since the recent changes in government. While it is too early for the new leadership to have introduced any meaningful economic changes, they are sending encouraging signals to the market.

cement consumption patterns. Demand has been driven by small projects and individual household consumption as opposed to big infrastructure projects which mainly required bulk supply. As a consequence of the shift in demand, cement companies have had to adjust their business models to cater for this new reality. In addition, the South African economy has in the past few years been experiencing recessionary pressures and negative growth. As a result the industry performance has been sluggish. The changes in government and the commitment by new leaders to focus on growing the economy present an opportunity to boost the industry. Investor confidence is said to be very high, the highest it’s been since 2009.

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LEADERSHIP: CONSTRUCTION The President and Minister of Finance, respectively, in the State of the Nation Address (SONA) and the Budget Speech, committed the government to uproot corruption and create a conducive economic environment. In his speech President Ramaphosa was emphatic when he said: ‘We are determined to build a society defined by decency and integrity, (one) that does not tolerate plunder of public resources, nor the theft by corporate criminals of the hard-earned savings of ordinary people.’ In economic terms, the current government leadership is committed to creating a positive economic environment that will attract higher levels of investment. Admittedly, the Budget will restrain government spending which may result in an initial contraction in the economy. Increased taxes and levies will, in the short term, affect people’s disposable income and ability to spend as they otherwise would, constraining demand for our products, mainly cement in our case. In my view, this period will not last long, especially if the leadership delivers on the pronounced commitments. A conducive economic environment is not only positive for our industry, but raises the general level of economic activity. It heightens the possibility that firms will make positive investment decisions, including putting their money in fixed assets. Despite the budget being contractionary, a significant portion has been earmarked for investment expenditure as opposed to consumption. To this end, the Minister of Finance in his budget presentation said: ‘Government recognises the need to shift spending away from consumption towards higher investment’. The industry stands to benefit from this. A cursory look at the budget shows that close to R50 billion is earmarked for infrastructure-related spending including on schools, industrial and public infrastructure. Speedy implementation of these projects, and the removal of corrupt practices, will make a significant positive difference. One of the key messages in the State of the Nation Address (SONA) was about job creation for the youth. Ramaphosa stated that ‘at the centre of our national agenda in 2018 is the creation of jobs, especially for the youth’.

What does this mean for the industry? The construction industry is labour intensive and thus well placed to absorb large numbers of youth. We must be an active partner and contributor to this national agenda. For example, bursary programmes at companies like ours, PPC, should be expanded to cover more youth so that when the time to absorb them into our businesses arrives, they can hit the ground running and become productive immediately. The industry must actively participate in the proposed Jobs Summit and help shape the conversation, especially given the industry’s labour absorption capacity. In addition we need to support government’s drive to expand tertiary education beyond the university system by providing meaningful alternatives such as artisan training. Through its world-class Technical Skills Academy (TSA), located in

North-West, PPC has the capability to develop artisanal skills required for the cement industry and beyond. Used efficiently the TSA can make a meaningful contribution to skills development such as plumbers, electricians to the benefit of the broader community. The government seeks to re-industrialise our economy on a scale and pace that will draw millions of job seekers into the economy. In South Africa’s context, infrastructure investment and re-industrialisation will contribute to economic growth and generate the much needed employment. The construction industry will benefit directly from this. With more people working, it also increases the pool of households that are able to invest in fixed assets.

Support locally manufactured products This brings me to the importance of supporting locally manufactured products, as touched on by President Ramaphosa. Over the years several industries, including the cement industry, have increasingly faced unfair competition from imported inferior goods that are essentially “dumped” in our country. While we welcome competition, unfair competitive behaviour has a negative impact on our economy particularly on job security. We welcome the President’s indication that government is committed to protecting the local manufacturing sector. To expedite infrastructure project delivery, President Ramaphosa announced that he will assemble a team to oversee the implementation of new projects, particularly water projects, health facilities and road maintenance. The industry, as a significant economic contributor and a direct beneficiary, should avail its expertise and actively participate in the conversation. We cannot afford to be by-standers who wait for the government to propose solutions for us. As a beneficiary of government infrastructure spend, and a positive economic environment, there is also an opportunity for the industry to fully transform and become an active participant in building an inclusive economy. This we should do through such measures as procurement policies, skills development programmes and genuine partnerships with communities. We continue to demonstrate our commitment to extending “Our strength beyond the bag” to achieve genuine transformation which seeks to bring into the formal economy those who were previously excluded. Given all the positive commitments, and the confidence many investors have expressed, I am of the view that in the medium to long-term, the construction industry is poised for growth, and will benefit from the current changes. n www.ppc.co.za

Njombo Lekula, Managing Director at PPC SA, Cement Division

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The Formwork Experts. SABI Vol 8 Issue.indd 77

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LEADERSHIP

Lead your ‘self’ and others will follow At its most basic level, leadership involves getting others to follow you. Winning their hearts and minds is one thing but leading them in the right direction is another. In the world of politics, the reputation of a leader depends upon your own personal political ideology. In small or medium-sized businesses there is a more objective method of determining great leadership; the income statement is the ultimate unbiased measure. Generally, good leaders get consistently good results, bad ones don’t. George Diab started his professional life as a chartered accountant [CA(SA)]. He had little idea that he would

By George Diab

eventually become an entrepreneur in the fashion industry and a leadership advisor. As a tax specialist in the corporate world, Diab had to look the part. This meant finding the perfect suit. His efforts proved futile. He then decided that if his perfect suit did not yet exist he would create it. He simultaneously noted that his fashion frustrations must be shared by others in the business world and this premise was the basis upon which Diab co-founded Tailor Me – a business which sells bespoke tailored suits. Some entrepreneurs favour the approach of burning all bridges when starting a business. The idea is that by leaving no possible means of retreat you force yourself

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LEADERSHIP

to succeed. Diab preferred to test the waters rather than burning all bridges. He started the business and tested the market prior to quitting his full-time job. As a CA(SA), Diab already had an expert understanding of the quantitative side of running a business. He realised, however, that he did not yet have the leadership skills he needed to successfully scale his business. This led him to join the NeuroLeadership Institute (NLI) – a research company that transforms leadership effectiveness through neuroscience. He is now the Head of Solutions Delivery at the institute. In the Small and Medium Enterprise (SME) world, leadership is of even greater significance than it is in big business. Start-ups by nature are fledglings which need to be nurtured. Big businesses can withstand bouts of less than stellar leadership. Small ones can’t. One bad decision could mean the end. Since by definition entrepreneurs do not have a leader, they must lead themselves. Being your own boss means setting your own rules. And while setting your own rules is easy, following them may not be.

‘If we focus on understanding the “self” better, rather than trying to fix others, we can become good leaders driving positive change,’ says Diab. An understanding of ‘self’ is even more necessary for entrepreneurs. The wise advice, ‘know thy self’ encourages entrepreneurs to discover their strengths, weaknesses and motivation and to use this knowledge in leading themselves and others. There are a variety of leadership styles ranging from the permissive to the authoritarian. Diab’s leadership advice favours the former approach and may leave control freaks and micro-managers alike squirming. ‘Employees should not be managed, they have to be unleashed. Give them the opportunity to excel and they will. That is just human ingenuity. With the right guidance, with the right overriding purpose statement and correct values, people will surpass expectation,’ he says. It is comforting for entrepreneurs to realise that being a leader does not mean you need to know everything or even pretend to. Just as heads of state benefit from advisors, so too can business leaders. The leader’s role is then to decide which advice to take and which advice to discard. Developing an open and curious mind is a prerequisite for great leadership. This is a sentiment echoed by the work of the NLI. ‘At NLI we teach that human potential is infinite! If you have a growth mind-set, effort is the path to mastery!’ says Diab. Being consciously and constantly curious supports the notion of self-improvement. It also sets an example for others and is thus a powerful leadership tool. This curiosity relates to a leader’s ability to seek advice. Diab points out: ‘It is not easy out there and you can get down on yourself quite quickly. Receiving advice from a person who has walked that journey before you is very powerful.’ Often entrepreneurs fail not because the idea is bad but because they run out of money. It is therefore crucial they seek financial advice from someone who is properly equipped to help them in making financial decisions. Many of the instructional manuals on leadership focus on techniques to get others to follow you. Some are backed by research done by behavioural psychologists and there is undeniably some value to some of these tools. Yet, the best place to start with leadership is with your ‘self’. Therein lies a leader’s success in becoming someone worthy of being followed. n

George Diab, Head of Solutions Deliver at the NeuroLeadership Institute (NLI)

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ADVERTORIAL: CIGFARO ADVERTORIAL

The Chartered Institute of Government Finance, Audit and Risk Officers (CIGFARO) CIGFARO is the recognised professional body for finance, audit, risk management, performance management and related professionals in the public sector

he institute was founded in 1929 and is dedicated to establishing and maintaining high standards of professionalism among practitioners by providing a framework for them to collectively enhance and maintain sustainable financial management and good governance in the management of public finances. CIGFARO is the South African Qualifications Authority (SAQA) recognised professional body for financial management in the public sector. Core services and functions Cigfaro strives to: 1. To further the interests of the Public Sector in the financial and related professions by: • Advising institutions, commissions and other bodies and persons • The training and advancing of knowledge of members of the institute • The promotion of the interests of the profession of public finance officers and related professions; 2. To promote the interests of finance and related professionals in the public sector and to protect the interests of the public through the strict enforcement of the Code of Conduct by embracing the following objectives: • Developing and registering appropriate qualifications • Registering qualifying professionals as its members • The constant renewing of members' registrations • Assessing and promoting programmes at institutions of higher learning • Regulating activities within the public sector’s finance profession and related professions via the Code of Conduct and a disciplinary procedure

• Monitoring and tracking the continuing professional development of members • Developing and implementing a practical guideline, process enhancements and best practices; and • Making submissions pertaining to legislation and/or proposed legislation to sector departments as and when requested; 3. To consider, where necessary, research and comment on existing and proposed pieces of legislation affecting the public sector in the Republic; 4. To co-operate with any other professional body that is aimed at improving and enhancing public finance and governance, both in the Republic and internationally; 5. To advise the national and provincial government, related institutions and other recognised national associations on matters affecting the public sector; 6. To provide opportunities and platforms for an exchange of views, knowledge and best practices amongst members; and 7. To undertake research into public sector finance and governance in order to promote efficiency and enhance the available core body of knowledge. CIGFARO's advisory functions CIGFARO furthers the interests of the public sector in the financial and related professions by advising institutions, commissions and other bodies and persons. They advise the national and provincial governments, related institutions and other recognised national associations on matters affecting the public sector. Training for their members Training is provided on all aspects of local government with a focus on finance,

auditing and risk issues. They are currently rolling out training on the Municipal Standard Chart of Accounts (MSCOA). Their conferences also assist with regard to the continuous professional development (CPD) of their staff. These conferences and training courses take place on a national and provincial basis. The President of CIGFARO, Krish Kumar, says the goals for the institute during his tenure, which he hopes will add value to CIGFARO and their members, include the following key strategic issues: 1. Help public entities survive the current economic climate through economic growth, improved productivity, better collection rates, value for money and return on investment; 2. Assist in reducing the rate of rural-urban migration; 3. Enhance financial sustainability and viability 4. Commit to the triple bottom line—the assessment of all projects in terms of economic, social and environmental issues; 5. Ensure a balance in expenditure—social, economic, environmental and rehabilitative; 6. Optimise the use of technology and innovation; 7. Develop the skills and capacity of finance practitioners in the public sector; 8. Ensure maximisation of service delivery and provide cost-effective services; 9. Benchmark and ensure value for money is going to be one of the key focuses of his term as CIGFARO President. “Whilst I appreciate that the National Treasury is working on this, I believe that CIGFARO and CFOs have an important role to play in driving and implementing this,” he concludes.

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OFFICE DESIGN

Doing justice to office design Kuba Granicki, Alessio Lacovig and Mike Rassmann, the three partners behind Johannesburg-based Architects of Justice, discuss the workplaces of the future, determining a client’s needs and adding value in office design. One of the most important first conversations the architects will have with a potential client looking to design an office space is about finding out what the client is looking for. ‘We try to understand their business, but firstly need to find out if the client understands their own business as it stands now, and in the long term. When someone says to us, “My sales team has eight people”, that’s great, but will your sales team always have eight people?’ explains Granicki. The client needs to envision how they want their business to look in five and 10 years’ time, how their staff will use the office space, how much time they spend in the office and what has failed in their current office space. ‘All these things play a part, not only in understanding the staff contingent, but in understanding the

departments and how they interact and what their corporate culture is,’ says Rassmann. ‘We try to discover what has been failing in their current office space that we’re now being called in to address. That’s the primary need, but once we are on the job, we start to identify secondary needs that the building can tackle,’ adds Granicki.

Helping clients make their design ideas real Architects of Justice will work with a client to figure out what it is the client wants. ‘I think where we add value is that the clients know how their businesses run, but we figure out how they will work best within a spatial framework,’ says Rassmann.

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‘There are the specifics of the project which have to be included, the non-negotiables, then there’s the stuff that a client would like to try and incorporate into the project, and finally there are the things that they dream about, but which they don’t think are achievable. We ask our clients to list all of these. We then try and include all of list one, most of list two and as much of list three as we can into a project. That’s our stance on all architecture, not just commercial projects,’ he adds. A lot of Architects of Justice’s clients just know that they are not happy, and they need a change, explains Lacovig. ‘From there you must dig it all up – is it growth, do you just need a new look, or are you changing your business structure? ‘We had a client who had an idea that his space needed to be changed. Mike Rassmann ran with the spatial planning and we just had to meet his expectations. Then recently, we had another client whose corporate image was outdated, and he told us to just “go for it”. That is great as you get to do whatever you want, but you know that you need to smash their expectations. So essentially a project like this is more difficult as you set the expectations for yourself as well – only we know when it’s good enough,’ he adds. Then you get clients who want exactly what they have in mind, which can be difficult to manage. ‘Sometimes you have to try and convince a client otherwise. We are taught at university that we know

better than the client, that as architects we have the solutions, so sometimes listening instead of just giving the solution is better because then you get to the solution much quicker and work together. It’s a win-win situation for all,’ Lacovig explains.

The workspace of the future In the modern workplace you are no longer as tied to the office as you were in the past. There are systems that can give you information and let you do your work from anywhere in the world. International companies with offices all over the world are delivering a service 24 hours a day. ‘These sorts of global accelerations are the things that are affecting the workplace, but in my opinion, the workplace is the slowest to adapt to them, and once it does, it’s already evolving again,’ says Granicki. Rassmann believes that there will be workplaces where employees go to because they want the human connection; to exchange ideas face-to-face. ‘Look at the library; you don’t have to go there to get a book these days, but people go there to study and read because it’s quiet. Maybe the office space is going to be something like that. Yes, you can work at home but maybe home can’t give you the fancy coffee machine and all those things you need. It’s not about your desk anymore, it’s more about the environment that you are in,’ he explains.

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And workspaces around the world can differ too. For example, in Asian companies, employees expect to be able to have a good stretch before work starts to get them through the day. In South Africa, for instance, coworking spaces in Cape Town have taken off in a big way, but in Johannesburg they haven’t. ‘In Cape Town, it’s at the point where the guys who own the co-working space check to see if they like your business before letting you in. Johannesburg, on the other hand, is still empty enough that if you can pay, you can stay. So, there are very different work cultures going on across South Africa,’ says Rassmann. The three Architect of Justice partners have also seen changes in office furniture. Technology around building desks has changed, for example, retractable desks where you can sit or stand. This all comes from a better understanding of ergonomics and what is healthy for the body. Desk designs are now more geared towards making the workspace look more like an individual office while still part of an open-plan environment. ‘The modular aspect of furniture design is not something new; modulation is something that all designers, whether it’s industrial or architects, have pursued as the ultimate solution, but this solution doesn’t really exist yet,’ says Lacovig. ‘Offices haven’t quite got to that multi-purpose space yet, such as a classroom, where desks can be arranged into a cluster for group work, or individually for exams. Offices aren’t there yet; cables have kept us from getting to that point,’ Rassmann adds. Ideally, designing the ultimate workspace is about creating a multitude of different spaces where people can choose which environment suits them best. ‘That’s what Google has got right; you can climb into a pod with your laptop away from everyone else,’ Rassmann adds. Designing commercial office space is very different to residential work because the architect has to deal with multiple elements and are making assumptions about the user. However, with residential projects the architect has

more specifics to work with which they have received directly from the client.

The evolution of the workspace According to Architects of Justice, the office space has changed dramatically and is continuing to evolve. Companies need to be fluid to be able to move with the market, and so does the office space. ‘With the trend of people working from home, spaces like the study are disappearing. Your office is becoming the dining room table, your bed or a coffee shop. Your office is a bag and a laptop, and you can literally fold it open and fold it shut. We are seeing this played out in offices spaces as well,’ says Rassmann. ‘Currently we are proposing offices for a medical company and they want us to include a number of hot desks; they don’t want designated spaces for people because the staff will come and go as they please. Due to the nature of work of staff in many businesses today, they do not have to sit at the same place all the time. They just need somewhere to sit, plug-in and work.’ However, at the end of the day people still need a space to work in. ‘Ergonomically speaking, a person is a person; you need somewhere to sit, somewhere to stand and somewhere to put your things, so those smaller elements of an office space don’t change,’ says Lacovig. ‘The change is how that office space is defined. Is it an amalgamation of lots of desks or is it a flexible environment to allow you to have a meeting here, a conference call there, a boardroom table in that space? The furniture is a big part of that as well.’ Google is a prime example of new office trends. They feed you, they take care of your washing, they have people to take care of your every need. When you are at Google they get the best out of you because they make you comfortable in your work environment. Locally, the new Discovery Place in Sandton is attempting something similar. It offers different canteens on ground level which are accessible to the public so that

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OFFICE DESIGN many offices and created zones, almost like you’d see in open-plan offices. Glass partitions have been used which help to deal with the acoustics, theft and lighting, yet the transparency remains and different departments each have their own place,’ says Granicki. ‘Transparency is key, but that doesn’t mean that openplan will work for every office environment. In terms of the evolution of the office, it went from everybody having their own office, to cubicles, then open-plan, and now I think you are going to see a mix of all of the above.’

Adding value to a client’s workspace

“

Google is a prime example of new office trends. They feed you, they take care of your washing, they have people to take care of your every need. When you are at Google they get the best out of you because they make you comfortable in your work environment.’

employees can meet people there who are not from the building. They also have retail outlets in the building, so as an employee of Discovery, it’s very convenient as they don’t have to leave their office environment. ‘I think that a lot of other companies want to claim that they are like Google, but they haven’t restructured their entire company to work that way. A third of the staff that come to us these days ask us if they can work flexitime or remotely,’ says Lacovig. Smaller businesses that don’t have the resources of companies like Google or Discovery can locate themselves close to these amenities or share their space with other smaller entities. ‘What we have seen a lot of lately are co-working spaces. If you are a smaller company of four or five people, one of these becomes very viable for you. You get all your meeting rooms, all your desks – often as part of a fully furnished package – a canteen, maybe a barista making coffee for you and your clients, and you are sharing it with a bunch of other small companies who you have an opportunity to network with. I think this is the next big thing,’ says Granicki.

Acoustics and partitions Open-plan offices these days feature more meeting pods which create acoustic separations. ‘Open-plan is cool, but people are now a lot more aware about acoustics and partitions. In our own offices, on the directive of transparency, we have removed the

In South Africa there is a lot more awareness around electricity costs and environmental considerations. These days employees want natural light. They also don’t necessarily want to be in an air-conditioned space. Employees want more quality out of their workspace and offices need to provide that. One of Architects of Justice’s recent projects, Rubela Park, was geared around tailoring the building to have a very engineering-based look. AOJ used industrial, exposed services, but designed with flexibility in mind so that if another tenant wanted to change it in the future, they could without having to gut the building. ‘On an office project we are currently working on, the client has asked for full-height drywall partitioning with glass at the top. In terms of future flexibility, we are being very mindful of the need for power supply and cabling and are working this into the project from the start. In terms of finishing, we have selected certain spaces in the office which need to have a bit more of a “wow” factor, such as the reception and meetings rooms, and have spruced these areas up a little more. Although these areas are designed specifically to impress visitors, the staff lounge, and staff kitchen area have also received more money in the budget to ensure that the staff areas are not bland,’ Rassmann explains. For both flexibility and longevity, the choice of materials is also very important. Areas of high and low traffic need to be correctly identified and specified for. So, with all the above to take into consideration, how does AOJ balance current trends in design with incorporating a tenant’s future needs? ‘The obvious question to ask is, what is the expected growth of the company, along with the expected lease period? From there we can discern the client’s needs and desires, and then design the spaces according to the information we have received. Trends come and go, as do tenants, so architects need to ensure that a workspace is flexible enough to evolve, not only in terms of trends, but also as the company inhabiting the building changes,’ Rassmann concluded. n

Architects of Justice E studio@architectsofjustice.com W www.architectsofjustice.com

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PAYROLL SOFTWARE TECHNOLOGY

Does payroll software threaten data security? By Arlene Leggat, Director

Technology is changing and so is payroll software. While the advancements in payroll systems come with several benefits, these systems could also be exposing employers and their employees to online security threats, says Arlene Leggat, Director at the South African Payroll Association (SAPA). ‘In the past, human resources and payroll personnel would be the ones processing everything from timesheets to leave forms. If an employee’s banking details changed, they would need to notify the appropriate payroll administrator to make sure their salary makes its way to the correct bank account. The next generation of payroll software has made it possible for employees to manage many of these tasks themselves,’ says Leggat.

More sensitive information transferred electronically Tasks that usually required paper trails and approvals, such as travelling allowances and overtime claims, can now be processed online, which leads to an increased amount of personal information being shared via web portals. ‘As a payroll company or a payroll department, you will have a lot of employee-related personal information at

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PAYROLL SOFTWARE TECHNOLOGY (Protection of Personal Information Act). This legislation sets conditions for how personal information can lawfully be processed; it has been signed by the President and is now the law. ‘Companies are responsible for making sure they are complying with this Act. It’s not only companies in the financial services and healthcare sectors which need to understand their rights and responsibilities regarding personal information processing. Any company that uses online payroll processing has to make sure they are protecting their people from harm as well as protecting their right to privacy,’ says Leggat. International companies have an extra set of privacy concerns to deal with on top of the POPI Act. The GDPR (General Data Protection Regulation) was adopted by the European Parliament in early 2016 and while many of the stipulations are similar, a business will need to comply with both acts if they are transferring personnel and payroll data across borders. ‘A company in South Africa may be outsourcing their payroll function to their European counterpart. In this case, they would need to comply with both the GDPR and POPIA legislation. They are different flavours of data protection laws, but it could be necessary for you to tweak your Payroll processing strategy so that you have a global view and comply with what is common among them,’ explains Leggat.

Be future-ready People are already wary of sharing their personal information, cell phone numbers, credit card numbers and addresses online. Having a future- ready payroll software solution can make your business more efficient, but it’s an employer’s responsibility to make sure that their employees are comfortable using it as well. ‘Companies need to take data protection seriously and their staff needs to know that their privacy is a top concern if you want widespread uptake in these systems,’ concludes Leggat. n www.sapayroll.co.za

your fingertips. The more open and accessible your payroll system is, the more attention you need to be paying to things like firewalls, internet security, cyber threats and general information technology safety,’ says Leggat.

Employers legally obliged to protect employees’ privacy Employers now also have a legal obligation to protect their employees’ information thanks to the POPIA

Arlene Leggat, Director at the South African Payroll Association (SAPA)

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RECYCLING

Local PET bottle recycling at full capacity Demand for plastic bottles is at an all-time high in the Western Cape region. Because of this the local recycling capacity in the Western Cape is at maximum production and is unable to process the additional influx of bottles. As a nation facing the impact of drought in many of our provinces, South Africa has come to rely upon plastics to assist us in dealing with the accompanying water shortages and has trusted our robust recycling industry to get us through the crisis responsibly. With the increase in consumption of bottled water in Cape Town, the volume of bottles needing to be recycled is threatening to overwhelm local recycling capacity. To prevent Polyethylene Terephthalate (PET) bottles needlessly ending up landfills, three companies have joined forces to overcome the challenge. Oasis Water, recycling experts Extrupet, and the South African PET Recycling Company (PETCO) are currently transporting 15 metric tons of baled bottles to the Extrupet facility in Gauteng for processing. This is to overcome the challenge and prevent these additional bottles being sent to landfill. Chandru Wadhwani, Joint Managing Director of Extrupet (Pty) Ltd and PETCO board member, says: ‘For me the pressing driver here is to ensure that the extra volume of PET bottles that have found their way to the Western Cape on the back of the water crisis, finds a home in a recycled product.’ ‘Just by way of scale, when we load 15 metric tons on the truck sponsored by Oasis Water, half a million bottles will now be recycled that otherwise wouldn’t have been. This for me is the ultimate value of the initiative and companies like Oasis Water need to be commended they set the perfect example of what extended producer responsibility entails. But for the support of companies like Oasis Water, these bottles would ultimately be landfilled or worse, end up in the oceans,’ Wadhwani adds. Group Director of Oasis Water, Naas du Preez, says: ‘With the influx of bottled water into Cape Town we believe, as a responsible brand, that we must also assist and be depended upon to take care of the environment and have thus sponsored the transport as a sign of goodwill. ‘We are also challenging fellow bottlers and players in the industry to do the same and assist with keeping recycling responsible.’ For the time being, PETCO is monitoring the situation closely to determine whether additional transportation will be needed to ease the burden on the Western Cape recycling capacity and encourages other companies to

offer financial support should additional transport become necessary. PETCO has made massive strides in increasing SA recycling rates in recent years, resulting in a PET bottle recycling rate of 55% in 2016- that means more than 90 000 tons of PET or two billion bottles being recycled each year. PETCO CEO Cheri Scholtz says this effectively means that we are currently recycling more than half of all postconsumer PET bottles in the market and more bottles are being recycled than those going into landfill. ‘Through the remarkable network of people, companies and organisations we work with, we created more than 60 000 income opportunities for small and microcollectors, changing their lives and those of their families in immeasurable ways and injected almost R900-million into the economy to date,’ she says. PETCO’s contracted recycling partner Extrupet, has a fibre producing plant in Milnerton in Cape Town and a Bottle-2-Bottle plant in Wadeville, Johannesburg, where recycled PET plastic bottles are used to manufacture new bottles for many food grade applications. The bottles are also recycled into a myriad new and useful product such as polyester fibre for duvets and pillows, jeans and t-shirts, and reusable shopping bags. This process has made South Africa a self-sufficient manufacturer of polyester fibre, no longer reliant on imports. n

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I N T E R N A T I O N A L LY RENOWNED T E C H N O LO G Y OUR PRODUCT RANGE INCLUDES SOLUTIONS AND S Y S T E M S F O R T E C H N I C A L WAT E R U T I L I S AT I O N I N SUB SAHARA AFRICA

REVERSE OSMOSIS MEMBRANES ULTRAFILTRATION MEMBRANES FRP PRESSURE VESSELS ENERGY RECOVERY DEVICES FLEXIBLE PIPE COUPLINGS FIBREGLASS BAG AND CARTRIDGE HOUSINGS WASTE WATER SCREENING SYSTEMS HYDRO-MECHANICAL EQUIPMENT COARSE AND FINE SCREENING EQUIPMENT DEBRIS HANDLING SYSTEMS HIGH PRESSURE MULTISTAGE CENTRIFUGAL PUMPS

“ ”

WATER PRODU CTS F OR TH E FU TU RE

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+27 10 140 3773 w w w. v o v a n i . c o . z a

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IT RECYCLING

Simplify recycling by making the right choices By Wale Arewa

IT recycling and disposal legislation is complicated enough, there is no reason to make matters worse by making the wrong choices. An alarming number of IT recycling companies are not providing a bona fide service, and this could leave businesses liable. There are several basic requirements and information one should request before partnering with any IT recycling company. An increasing number of government regulations, industry standards and internal risk mitigation policies require organisations to sanitise storage media prior to disposal or reuse.

There are numerous destruction options that guarantee privacy and ensure a companyâ&#x20AC;&#x2122;s reputation will not be compromised. Whether data destruction is done through software erasure, hard drive shredding or degaussing, a certificate of data destruction must be provided to validate the quality of service.

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IT RECYCLING A Certificate of Data Destruction is an assurance that every possible measure was taken to safely and securely eradicate and destroy all data compliant with Government and industry regulations. Xperien CEO Wale Arewa says computers, phones and other digital devices needn’t be discarded; they can be optimised through reuse, repair or resale. ‘Refurbishment is good for both consumers and the environment,’ he adds. ‘However, one needs to ensure refurbished systems are ISO certified and audited. Certified Refurbished System (CRS) is an industry standard that gives consumers piece of mind knowing that they have purchased from an accredited reseller with good aftersales service.’ The Protection of Personal Information Act 2013 (PoPI 2013) affects every company and is arguably the most important element of the recycling and disposal process. It enforces companies to introduce strict measures and guidelines that will safeguard the processing, usage and handling of sensitive information. It also places a strict onus on businesses when it comes to handling personal information about their clients, staff and customers.

Furthermore, one could request Environmental Management System (EMS) ISO 14001:2004 accreditation for refurbishment and redistribution of redundant IT assets and equipment. It is a global series of EMS standards that were developed for organisations to incorporate environmental aspects into operations and product standards. ISO 14000 is a set of voluntary environmental management standards, guides and technical reports, which specifically focuses on corporate environmental management systems, operating practices, products, and services. BSI is another requirement, it is amongst the most respected and reputable management systems certification bodies in the world and accredited by around 20 local and international bodies. BSI is an accreditation that confirms that the IT recycler operates a Quality Management System (QMS) that complies with requirements of ISO 9001:2015 for the Collection and Disposal of IT assets and equipment. Arewa says proper accreditation means being assessed against internationally recognised standards. ‘BSI certification means the recycling company truly operates to the highest levels of quality and service. With more than a million organisations certified to it globally, ISO 9001 is the most widely recognised standard in the world,’ he says. Although not a legal requirement, reputable IT recycling companies should provide an asset report with a detailed breakdown of equipment collected. Secure reverse logistics with a chain of custody should be provided for each item containing a hard drive and daily trend reporting must be included so that undesirable trends can be identified before they become critical. ‘Asset disposal service providers should offer a secure chain of custody for the assets, have a call centre to schedule hardware collection, provide packaging and secure transportation. It should also provide onsite data elimination, mobile hard drive destruction and issue data destruction and IT asset disposal compliance certificates,’ says Arewa. ‘They should also offer asset buybacks and provide trend reporting with a detailed audit trail. If your service provider can deliver all this with clear and transparent charges, you are on the right track,’ he concludes. n www.xperien.com

Wale Arewa, CEO for Xperien

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REMUNERATION

Pay is not pay without perspective By Zone Feni

‘Perspectives present a new and unique viewpoint on existing problems, fundamental concepts, or prevalent notions on a specific topic, propose and support a new hypothesis, or discuss the implications of a newly implemented innovation.’- Kakoli Majumde. When it comes to pay, what is fair and ideal for one employee can be frowned upon by another. Different needs and expectations prevail across different individuals, based on age group, job type and even job level, to name a few. It is therefore necessary that employers explore different perspectives when strategising on their pay structure and philosophy. In remuneration, there are numerous boxes an employer ought to check to avoid the much-dreaded strikes, to keep employees happy and motivated, and to ensure a healthy turnover. The boxes range from legislation, the overall organisation strategy, pay philosophy, the financial position of the organisation, CPI, national market or peer industry pay practices and trends, trade union demands or previous agreements, and the current wage or salary structure of the organisation, to name a few. Whilst all these factors are valid and pertinent in the decisions of pay, there is enormous benefit and influence for organisations that choose to delve deeper than the

norm and aim for the gold standard by practicing and exploiting an Employee Value Proposition (EVP) that is relevant for different job levels, age groups/generational profile, global trends, etc. The curable Catch-22 in defining remuneration based on the latter gold standard lies in the balancing act of ultimately forging a pay philosophy that drives the overall business strategy of the organisation. An interesting perspective in addition to the employer’s check boxes lies in the understanding of human needs at a basic level. Perhaps organisations can borrow this understanding from Maslow’s Hierarchy of Needs as an example of a framework when formulating their pay philosophy, and notwithstanding the evolution of human needs with time. The following table can serve as the starting point to distinguish different employee levels based on their basic human needs and job levels, and how reward can be viewed and defined from those perspectives:

Employment Equity Levels

Paterson Level

Maslow’s Hierarchy of Needs

Top management/Senior management

E/F

Self-actualisation needs

Thinking, learning, decision making, values, beliefs, fulfilment, helping others.

Professionally qualified, experienced specialists and mid-management

Esteem

Hope, joy, curiosity, happiness, accepting Self.

Skilled technical and C academically qualified workers, junior management, supervisors, foremen, superintendents

Social Belonging

Relationships with others, communications with others, support systems, being part of community, feeling loved by others.

Semi-skilled and discretionary decision making

Safety & Security needs

Personal security, Financial security, Job Security, Health and well-being, Safety needs against accidents/illness and their adverse impacts

Unskilled and defined decision making

Physiological needs

Food, water, sleep, warmth, Breathing/oxygen, intake of food and fluids, elimination of wastes, movement.

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REMUNERATION

Physiological needs - unskilled and defined decision making/Paterson A-band employees Immediate and physiological needs such as food, water and a roof above oneâ&#x20AC;&#x2122;s head are the reality for employees who fall under this category. Although these employees perform unskilled labour, their contribution to the organisation is still critical at the operational level. At this level, organisations should work very closely rather than at odds with organised labour to ensure that remuneration is set at a level which is consistent with market or best practice, but also to ensure that it responds to the very basic human needs of their workers. As an example, field labourers in agricultural, rural environments are usually compensated in the form of benefits such as food rations, housing facilities, and uniform and educational subsidies for their children. These are of higher importance to the labourers than their basic pay, which can be a lower cost to the employer in some cases. Safety and security needs - semi-skilled and discretionary decision making/Paterson B- band employees Security in different forms is important for workers in this category. Security in the form of a stable income, formal work contracts and benefits which build a further sense of security like medical aid, retirement benefits, safe working conditions and fair working hours play a vital role for semiskilled workers. In industries such as manufacturing, mining and production, these workers usually make up the largest numbers in the overall organisation population and can therefore potentially destabilise business progress if their

basic needs are not met, through financial and nonfinancial security. Social belonging needs - skilled technical and academically qualified workers, junior management, supervisors, foremen, superintendents/Paterson C-band employees Social belonging and collaboration are mostly synonymous with this group of employees who have completed formal higher education and training in a specific field which has contributed to their sense of identity and belonging. The advent of the digital/artificial intelligence era, coupled with the entrance of graduate millennials in the workplace who fit well into this category, has caused more and more organisations to revise their rhetoric and employment offering from rigid and traditional to agile, accommodating, non-hierarchical and innovative to keep up with these â&#x20AC;&#x153;cool kidsâ&#x20AC;?. At this level where physiological and security needs are already fulfilled, the priorities start shifting from pay alone to more philosophical needs. Self- esteem - professionally qualified, experienced specialists and mid-management/Paterson D-band employees Our middle managers, professionals and experienced specialists who fill this grouping tend to value things like recognition, awards, development and status. In fulfilling the self-esteem needs required at this level, a critical balance for employers is to reward these drivers of organisation strategy (be it monetary or non-monetary), in a way that encourages pride and competency in the work they do, in a well-managed performancebased pay system with well-defined career progression

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REMUNERATION opportunities. At this level, pay is not enough of a factor to attract or retain an employee. Self-actualisation needs - top management, senior management/Paterson E &F-band employees A challenging career opportunity, achievement, advancement and enough leeway to influence and introduce new ideas and change, all play a vital role in the fulfilment of self-actualisation needs for many an executive and CEO of an organisation. As the architects of the business strategy and revenue growth, as well as the accounting officers where risk is concerned, the EVP and pay for execs and CEOs goes beyond their skill level and outputs, but should consider things like fiduciary duties, long-term incentives for retention, higher variable pay in proportion to guaranteed pay to promote high performance, and a healthy wage gap which should be viewed in conjunction with other measures of internal equity. In summary, perspective is different and is dependent on whose shoes one is standing in. An acknowledgement of varied perspectives allows us to explore and exhaust all the possible ways to pay employees with the aim to attract, motivate, develop and retain them until they retire. Whilst exploring perspectives may prove a challenge to apply in environments where pay forms part of a legislative process, the ability for employers to succeed in doing so will depend on their agility and appetite for change.

Whilst Maslow’s Hierarchy of Needs outlines basic human needs at different levels, this is not cast in stone and the premise should not be to box employees but rather to view pay from different perspectives. Beyond the employer’s checkboxes and Maslow’s Hierarchy of Needs, the ultimate aim for organisations is to ensure internal and external equity, a strong link between organisation strategy and employee performance, and consideration of the global trends and environment. n www.21century.co.za

Zone Feni, Executive Director at 21st Century

BOOST your career and promotion with Postgraduate Studies at the UJ’s Department of Industrial Psychology and People Management Is one of your dreams to pursue postgraduate studies at the Master’s or Doctorate level in order to enhance your professional competence, your contribution to your clients, and your career? The Department has a comprehensive offering at the undergraduate and postgraduate levels, both in traditional university qualifications and professional development opportunities. Our respective programmes and qualifications are linked to form interconnected career paths. Our comprehensive offering comprises four major programmes: Industrial Psychology, Human Resource Management, Leadership and Continuing Education Programmes. All our postgraduate programmes require a research component. We have numerous offerings on both Master’s and PhD levels. The Department excels in research by concentrating on a select number of research focus areas. These are: Globalisation, Human Resources and Talent Management; Governance and Professional Ethics; Reward, Remuneration and Performance; Psychological assessment in cross-cultural context; Leadership Excellence; Work Identity; Human Capital Metrics and Analytics; Women in the Workplace; Entrepreneurial Leadership in Emerging Economies; Organisational Leadership Challenges in Emerging Economies; and Work and Organisational Well-Being (WoW). If you are interested in becoming a winner in undertaking postgraduate studies, your first point of contact for enquiries would be: • Industrial Psychology (coursework and a minor dissertation – only presented on a full time basis) (Email: elmariest@uj.ac.za) • Leadership in Performance and Change (coursework and a minor dissertation) (name to be changed to: Strategic Human Resource Management) (Email: amandaf@uj.ac.za) • Leadership in Emerging Economies (coursework and a minor dissertation) (Email: amandaf@uj.ac.za) • Personal and Professional Leadership (coursework and a minor dissertation) (Email: amandaf@uj.ac.za) • Human Resource Management/Human Resource Development (research based) (Email: amandaf@uj.ac.za) • Employment Relations (research based) (Email: amandaf@uj.ac.za)

College of Business and Economics Department of Industrial Psychology and People Management

BOOST your career and promotion_UJ 2018.indd 2 SABI Vol 8 Issue.indd 94

Important note: You must have completed and passed a module in Research Methodology at Honours or Masters’ degree level in the past five years with a 60% score. Online applications only. Application Closing date: before 30 September each year. Please visit the UJ website (www.uj.ac.za) for online procedures.

The FutureReimagined

2018/08/21 8:59 AM 2018/08/27 11:56 PM

Mark Nel â&#x20AC;˘ 064 513 2706 â&#x20AC;˘ info@africancontainerprojects.com

must assed earch urs or level years core.

only. date: mber year. he UJ ac.za) dures.

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PROFILE: AFRICAN CONTAINER PROJECTS

African Container Projects African Container Projects was established in January 2017. Owner, Mark Nel, realised that the industry unfortunately had some villains who were taking clientsâ&#x20AC;&#x2122; money and not providing the finished product, and that not all the markets were catered for. With this in mind, the company has endeavoured to provide customers with a reliable, value-for-money service that provides a high standard of workmanship. African Container Projectsâ&#x20AC;&#x2122; first customer was Nkukhu Box, a take-away/fast food franchise housed in converted shipping containers. Nkukhu Box had been the victim of a container conversion company that had taken the money and run. ACP invested its own capital to manufacture the container shops and gain the trust of the Nkuhku Box owners. This business relationship has blossomed with 11 stores now opened, four on-site and four in production in the factory.

African Container Projects then decided to venture into the container housing market with the aim of providing affordable housing for lower income families. A one-bedroomed concept unit was manufactured in a joint venture with Counter Act Developments, and the JV company named Counter Act Container Concepts marketing these units. Two- and three-bedroomed units are also in planning. Various local government and banking groups have been invited to view the unit and it has been greeted with great enthusiasm by all who have seen it.

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PROFILE: AFRICAN CONTAINER PROJECTS

African Container Projects is now collaborating with several private individuals to create concepts that will assist young entrepreneurs to enter the business world using shipping containers for their trading spaces. The companyâ&#x20AC;&#x2122;s aim is to become the largest home builder in Africa, using shipping containers to achieve this goal. Shipping containers offer flexibility when it comes to the design and manufacture of housing units, offering modular designs that are easily expanded on. The difference in cost-to-build using containers versus brick and mortar ensures that the units are competitively priced and the time to build is 40 to 50% faster than

traditional methods. Shipping containers are robust and can withstand the African climate extremely well. The containers are also an ideal solution to help alleviate the housing shortage in South Africa. n

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Zwannda has 12 years’ experience in various disciplines within the Electrical Industry. He has worked in the telecommunication, control and instrumentation, project design, project management, and construction disciplines. He also headed Electricity Customer Service for the City of Cape Town. In addition, he has spent about eight years in a senior management role within the Regional Electricity Distributor. Zwannda is a Registered Professional Project Manager and also a Professional Electrical Engineer.

DIRECTOR ZWANNDA RAMADWA

ABOUT IPMS

VISION

SERVICE/PRODUCT OFFERING

the African continent.

disciplines, with particular emphasis on the Electricity sector.

To be recognised as a leader in development solutions within

MISSION

Through focus, competence and character, build a formidable engineering services and technology company in the short to medium term.

STRATEGY

To leverage our expertise and skills within the electricity supply industry, creating value for the company and its customers, thereby growing market credibility.

VALUES

The key focus areas are in the Engineering/Technology

This includes the entire end-to-end infrastructure development and maintenance of electricity assets from the Low

Voltage(LV) to High Voltage(HV) networks. Our expertise

expands to complete turnkey, i.e. design, construction and commissioning, of related assets. In addition to this, we

have well developed capability in the key areas of human

and organizational development as well as leadership and managerial support.

Our products include:

• design of electrical networks (substation, lines and electrification)

Integrity - We believe in being honest, ethical and transparent

• programme and project management, including site

Respect - Relationships form the cornerstone of all our

• construction of electrical networks (substations and lines)

high trust, mutual co-operation and synergy.

• engineering/technology consulting

and seek to conduct business with a win-win mindset.

interactions and we endeavor to foster an environment of Quality - We are committed to produce work of the highest standard and to meet customer expectation consistently.

Capacity Building - Through striving to fulfill the needs of our customers as well as remaining sensitive to the

environment around us, we are committed to making the world a better place.

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supervision

• maintenance of electrical networks and assets

• total human development, with particular emphasis on technical and relational (leadership, etc) training

• project management consulting – management systems,

processes and standards development, risk management,

change management, turnaround management and output/ service delivery solutions.

2018/08/27 11:56 PM

Over the last 16 years, I have been given opportunities to facilitate, catalyse and advise, and in some cases lead and manage strategic focuses of organizations. Today, the collective efforts of Executing Authorities, Members of Boards of Directors and the Executive Management of various organizations whom I have directly or indirectly interacted with have empowered me to be a valuable strategist, a social and economic development policy performance management champion, and a manager, decision maker and leader in my own right. As far back as 2005 I have had opportunities to interact and understand the workings at Board of Directors level and also to afford me to develop capacity to facilitate strategic relationship building and relationship objectives management amongst the different institutional stakeholders.

FAQ

WHAT IS PROJECT MANAGEMENT WITHIN IPMS? Project management is planning, leading, organizing,

HOW CAN PROJECT MANAGEMENT REDUCE MY COMPANY’S RISK?

a project’s specific requirements - with maximum efficiency

approach, project management improves an organization’s

executing and controlling a broad range of activities to meet and quality. This is particularly important when projects consist of complex, deadline-driven, interdependent

processes, or when they involve multiple organizations.

WHAT DO IPMS PROJECT MANAGERS DO?

IPMS professionals build detailed project roadmaps, coordinate activities and communications, and ensure that

By planning proactively and engaging a highly structured ability to get things done on time, within budget and

with accuracy. Skillful project management can help companies anticipate and avoid potential pitfalls by

employing specific risk-management strategies, and

mitigate problems that do crop up by facilitating effective decision-making.

not make decisions; rather, they facilitate best decision-making

SHOULDN’T OUR OWN MANAGERS BE ABLE TO RUN PROJECTS?

project stays on track via both technical and interpersonal skills.

skills and are tasked solely with guiding the project.

carefully made plans are carried out by all players. They do practices as an objective third party, and then ensure the

WHEN SHOULD I CONSIDER USING AN PROJECT MANAGEMENT SERVICE LIKE IPMS? Companies use external resources for many reasons.

Some don’t have in-house expertise or have too many

projects for existing staff to handle. Others wish to focus on

core competencies instead of on planning, coordination and

project execution. Some firms are faced with difficult decisions or turbulent third-party relationships that require help from an objective facilitator. Finally, many companies want to learn

project management best practices, to establish a template for continuing success.

Yes - if employees have specific project management

In practice, project management is often an add-on to an employee’s regular responsibilities, or assigned based on availability. An effective project manager

focuses on project process: facilitating decision-making as an objective “third party,” building detailed project

roadmaps, coordinating activities and communications, and ensuring that carefully made plans are carried out

by all participants. Project managers must have honed

organizational and interpersonal skills, and be as immune as possible to internal political pressures in order to act effectively among multiple individuals and teams.

Zwannda Ramadwa (MBA,BSc Elec Eng, Pr Eng, MComPM, MScPM, Pr PM, MPSA ) Zwannda Ramadwa (MBA,BSc Elec Eng, Pr Eng, MComPM, MScPM, Pr PM, MPSA ) Project Manager Practitioner (Practice No. 17383921) Project Manager Practitioner (Practice No. 17383921) Polokwane Tel: +27 15 590 3780 • Gauteng Tel: +27 11 039 7273 • Cape Town Tel: +27 21 826 7638 Polokwane Tel: +27 15 590 3780 • Gauteng Tel: +27 11 039 7273 • Cape Town Tel: +27 21 826 7638 KZN Tel: 031 7656364 6364• Eastern • Eastern Cape 8347 KZN Tel: 031 765 Cape Tel:Tel: 043043 726726 8347 Mobile +278282318 318 5462 • Fax 86 693 or 590 0153781 590 3781 Mobile +27 5462 • Fax +27+27 86 693 78957895 or 015 Email zwannda@intergratedpm.com • Website www.intergratedpm.com Email info@intergratedpm.com • Website www.intergratedpm.com

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SKILLS DEVELOPMENT

SA employers urged to make workplace learning part of business strategy By Richard Rayne, CEO of iLearn

A renaissance in workplace learning has arrived and more employers need to start seeing its value to grow the business’s talent pool and boost its bottom-line. According to a research study conducted by auditing firm Deloitte, headlined: “The exponential importance of learning: Learning in the Flow of Work”; workplace learning is a business, economic and social imperative. The report finds that learning and development is the fastest growing headcount growth in the HR function. ‘The learning curve is the earning curve”, the report states, and also redefines a career as a series of developmental experiences, leading to growth, not always promotion. Richard Rayne, CEO of iLearn, is a leading South African learning solutions business that offers accredited and non-accredited learning programmes, as well as digital learning solutions. Rayne stresses the importance of fast-tracking workplace learning to upskill and develop staff in areas where the organisation needs it most.

Identify skills gaps and create learning pathways He says iLearn offers a personalised approach to learning that supports interactive learning. The organisation helps companies identify skills gaps and create learning pathways that encourage continuous employee learning, which aids both career development and business growth. ‘If skills gaps exist in key sectors in this country and employers know they do, then learning while you work is absolutely necessary and needs to be part of

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the business strategy. It’s one good way of producing employees who are skilled and properly equipped to do what the job requires and so much more,’ he says. Ticking the on-the-job learning box can easily be achieved if employers remain open to introducing their employees to workplace learning programmes like learnerships or short courses. A learnership is a vocational training programme that links structured learning and work experience to obtain a registered qualification. It combines workplace practice into a qualification registered by the National Qualifications Framework (NQF). And since skills development has become a priority element of an organisation’s BBBEE scorecard, companies can use learnerships, not just for talent development and management, but also to boost BBBEE levels.

Learnerships empowers, develops employees ‘The advantage of a learnership is multifaceted; it empowers and develops employees in multiple areas and in turn the employers benefit too. If your workforce is made up of skilled individuals who work hard and smart, the business will grow. If the business grows and does well, it will be able to compete effectively; which is necessary to boost economic growth and exactly what we need in South Africa,’ Rayne says. n www.ilearn.co.za

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“Let us help you to achieve your future” SABI Vol 8 Issue.indd 101

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TRANSPORT NETWORKING

Transport and Industry 4.0 By Harry van Huyssteen, Custodian: Transport Forum

Over 11 years ago the Transport Forum was born. Since its inception it has grown into one of the most formidable platforms for networking and content provision within the transport sector. For a complimentary attendance, the Special Interest Group (SIG) attracts just over 1 300 attendees annually and sees more than 6 000 unique visitors to the website, www.transportsig.com, monthly. The monthly Special Interest Group sessions under the Transport Forum see key industry role players such as government, at all levels, state owned enterprises, private business, industry business management, regulatory bodies, research institutions as well as ICT solution providers attending. Collaboration and communication unite these entities to bring out superior solutions to create a more efficient and competitive transport sector. Through experience we have learnt that a recipe for failure is maintaining a closed system. Sharing information through networking is the answer to take the industry forward; this can be seen through just a few examples of many over the past 10 years. Traditionally, IT served up great tools to solve complex challenges. Trajectories for satellites could be calculated and big budgets could be done in shorter times. About 20 years ago, “client server” technology commenced, distributing processing power to more people. More

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recently. “cloud computing” and the “Internet of Things” have made it possible to share information and resources more easily.

Companies need to advance the customer experience into the digital space Today, we are in the 4th Industrial Revolution and technology is a part of us. Companies are no longer able to compete competitively unless they advance the customer experience into the digital space. A simple example is that today products are not being bought on a “touch and feel” basis, but rather through a digital experience on an intelligent mobile device. From the comfort of the home, at any time, broadband and wireless technology have further expanded this experience to ensure optimum engagement in the buying process. Big data has made it possible to tailor-make product offerings to suit customer preference. With the utilization

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TRANSPORT NETWORKING of stock management through smart inventory, distribution became decentralized opening international online stores to local markets and giving the customer more choice. This can lead to local suppliers becoming uncompetitive, but in the same breath local suppliers can be savvy and expand globally as well. From bi-modal transport to multi-modal to inter-modal, we now see companies moving into synchro-modal platforms, with the latter referring to the relationship between integrated transport and the environment. With the help of technology skilled people are becoming better aligned to business goals, processes and structures. Effective control is possible where context is brought in, for example, geofencing which takes the physical location of activities and related tools used in the work environment.

Industry 4.0 has shifted the focus At the Special Interest Group held on 5 July, Kameshini Pather, principle engineer at TFR, said that Industry 4.0 has shifted the focus to include the entire supply chain in the planning and execution process. From raw materials right through to sales, the goal you want to achieve can be brought into the equation by looking at the original scope and configuration of the business; considering the “capabilities” of money and tools, skills and expertise and context. Nic Cloete-Hopkins, Academic Lead at WTCSE, referred to the fact that today’s digitization, soon will become “personalization” and we can even start talking about Industry 5.0. This will include co-operation between man and machine; human intelligence complemented by cognitive computing. “Society 5” will become reality where a new value system will be created through people being connected to all sorts of information and knowledge. Social issues (e.g. ageing society and regional depopulation) will be overcome and information overflow will be brought under control with humans being able to analyse huge amounts of information. The possibilities for humans will expand into using robots, autonomous vehicles and such like. Logistics specialist at Arup, Gerard de Villiers, alluded to the 2030 National Development Plan which would aim to lower transport and logistics costs, provide remedies to address spatial divides, and create adequate warehousing and logistics facilities. He also indicated instituting efficient procedures for customs and border posts as well as the support and development of freight corridors which are vital components of our national economy. Big data empowering Artificial Intelligence (AI) is a key driver for Industry 4.0. Sensors, people and vehicle movements, search engine data and people analysing challenges, to name a few, are some of the data feeders into the AI world of smart analytics. Clearly, the world is changing around us, and our authorities must plan to better align themselves to this as well as to facilitate trade and to grow our economy. There are good things happening, such as the Draft Rail Policy aimed at allowing for competition on national infrastructure,

the single transport economic regulator (STER) to level the playing field and to enhance accessibility, and Transnet SOC being open to dialogue and aligning for Industry 4.0. The establishment of transport authorities to bring about integrated, predictive and reliable transport is another positive initiative in the pipeline. What could business do to develop our economy and hence grow our businesses? Perhaps we should have a look at four of the imperatives for innovation and some suggestions accordingly: • Quick to market – consider predictive delivery management, proximity marketing, making use of apps to create a presence on smart devices which have become the new window for shopping. • Effective in what you do – systems integration, enabling staff by exposing them to relevant information and training, better operational and financial management by making processes and moving vehicles/inventory visible, and making use of shared resources and infrastructure. • Disruption of the competition’s solutions, and your own, to become obsolete – co-opetition and research and awareness of what the competition is doing, be a good copycat but do not stay there, improve on it. • Getting even closer to the customer – tap into artificial intelligence to obtain more data on the customer: trends, demographics, preferences, etc; making use of facial recognition software to flag dedicated customers or even criminals and effective CRM management through integrated solutions. A wise thing to do is to support the chartered and professional bodies. A collective voice in advocacy for effective regulation and infrastructure provision by government is crucial for the improvement of our economy. The South African technological turn-around times might be a bit slower than the rest of the world, but nothing stops us preparing for the future and helping government to make the right decisions. Subscribe to portals that will ensure that you are kept up-to-date with the latest developments in your space, and that of your competition. Most importantly, attend the free Transport Forum events and tap into the highly informative knowledge centre found in the downloads feature on www.transportsig.com. n www.transportsig.com

Harry van Huyssteen, Custodian at Transport Forum

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RETAIL MOTOR RETAIL MOTOR INDUSTRY INDUSTRY ORGANISATION ORGANISATION CODE OF CONDUCT CODE OF CONDUCT AS ACCREDITED MEMBERS OF THE RETAIL MOTOR INDUSTRY ORGANISATION, WE PLEDGE TO: AS ACCREDITED MEMBERS OF THE RETAIL MOTOR INDUSTRY ORGANISATION, WE PLEDGE TO:

Annual Renewal

Provide our quality products and services at a fair and reasonable price to our consumers. Provide quality products and services at a fair and reasonable price to both consumers. Honour the letter and spirit of any guarantee accompanying the sale of theseboth products and services. Honour the letter and spirit of any guarantee accompanying the sale of these products and services.

VISION The RMI is the proactive, relevant, retail and associated motor industry organisation VISION recognised as the lead voice serving The RMI is both the proactive, relevant, retail the daily needs of its members, and for its and associated motor industry organisation key role in enabling motor traders deliver recognised both as the lead voicetoserving top class service to motoring customers in the daily needs of its members, and for its Southern Africa. key role in enabling motor traders to deliver top class service to motoring customers in Southern Africa.IS BETTER BUSINESS BELONGING

BELONGING IS BETTER BUSINESS CODE OF CONDUCT Accredited Members of the Retail Motor IndustryOF Organisation pledge to: CODE CONDUCT • Provide quality products services Accredited Members of theand Retail Motor at a fair and reasonable price. Industry Organisation pledge to: Honour quality both theproducts letter and theservices spirit of •• Provide and any guarantee accompanying at a fair and reasonable price. the sale of these products and services. • Honour both the letter and the spirit of any guarantee accompanying the sale

VALUES of these products and services. Integrity, Unity, Adaptability and Accountability VALUES

This certificate remains the property of the Retail Motor Industry Organisation.

Integrity, Unity, Adaptability ACCREDITATIONS and Accountability • An RMI Consumer Code has been set up and is communicated to each and ACCREDITATIONS every member. • An RMI Consumer Code has been set • up Constant engagement with the SABS and is communicated to each and and NRCS concerning quality of safety every member. of automotive parts andwith equipment. • Constant engagement the SABS • and Co-authors of the South African NRCS concerning quality ofAutomotive safety Industry Code,parts published in terms of the of automotive and equipment. Consumer of Protection and designed to • Co-authors the SouthAct African Automotive provide the motoring publicinwith definitive Industry Code, published terms of the consumer protection. Consumer Protection Act and designed to

This certificate remains the property of the Retail Motor Industry Organisation.

CONSUMER FOCUS consumer protection.

Annual Renewal

In the event of a complaint or dispute between ourselves and a customer that cannot be settled at management level, our customer will be able to take the matter to the appropriate Complaints Committee of the RMI. In the event of a complaint or dispute between ourselves and a customer that cannot be settled at management level, our customer will be able to take the matter to the appropriate Complaints Committee of the RMI.

provide the motoring public with definitive

RETAIL MOTOR INDUSTRY ORGANISATION Tel: +27 11 886-6300 | Website: www.rmi.org.za Retail Motor INDUSTRY Industry Organisation - RMI RETAIL MOTOR ORGANISATION Tel: www.facebook.com/retailmotorindustry +27 11 886-6300 | Website: www.rmi.org.za @AutomobilSA Retail Motor Industry Organisation - RMI www.facebook.com/retailmotorindustry @AutomobilSA

RMI offers alternate consumer dispute resolution and mediation CONSUMER FOCUS in all six of its regional offices. RMI offers alternate consumer dispute resolution and mediation in all six of its RMI investigates regional offices. ±6 500 complaints every year, resolving 95% of them. RMI investigates has a code of and self RMI ±6good 500 conduct, complaints every regulates standards through associational year, resolving 95% of them. accreditation criteria. RMI has a code of good conduct, and self regulates standards through associational accreditation criteria.

DO BUSINESS WITH RMI - ACCREDITED MEMBERS FOR MOTORING PEACE OF MIND. DO BUSINESS WITH RMI - ACCREDITED MEMBERS FOR MOTORING PEACE OF MIND. RMI.indd 1

2017/03/09 12:34 PM

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E X PAT R I AT E TA X S E R V I C E S COMPREHENSIVE TAX COMPLIANCE SOLUTIONS FOR SOUTH AFRICANS ABROAD

OUR EXPATRIATE TAX SERVICES INCLUDE:

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SARS compliance check , status update and first-time accurate expatriate tax filings that meets SARS obligation

Double Taxation Agreement Legal Assistance (DTA)

Retrospective tax correction, including SARS VDP process

Encashment of South African policies

Financial Emigration Process through SARS and SARB

Assistance in opening blocked asset accounts/non-resident accounts

Transferring of funds offshore as part of Financial Emigration

Securing and aquiring SARS Tax Clearance Certificates

For more information contact Claudia Aires Apicella Cell: 082 332 4079 claudia@tax consulting.co.za

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TAX AUDITS

SARS audits â&#x20AC;&#x201C; how to survive By Natasha Wilkinson, Attorney at Tax Consulting SA

The recent developments at the South African Revenue Service (SARS) promise to cause a shake-up for many unsuspecting taxpayers. They are short on budget and the general perception is that there has been a lapse in taxpayer morale. The SARS audit teams will undoubtedly start in earnest with the targeting of taxpayers to see how additional tax revenue, penalties and interest can be collected. As a firm that includes specialist tax attorneys, Tax Consulting SA has a front row seat in seeing the mistakes made by taxpayers who do not engage with SARS correctly. The price is either an unnecessary or drawn out tax audit process which puts your life on hold, even if you are squeaky clean; or if you are caught, a very large tax bill. Here are some of the most important aspects to consider.

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Your calculation is probably wrong Your unpaid taxes are not your main problem. If you are caught not paying income taxes on R100 000 earned five years ago and your tax rate was 40%, the tax on this is R40 000 (R100 000 x 40%). However, SARS is also obligated to impose the applicable understatement penalty percentage in accordance with the table in

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TAX AUDITS section 223 of the Tax Administration Act (TAA), No 28 of 2011, which could be as much as 200%. Section 89(2) of the Income Tax Act (IT Act), No. 58 of 1962 computes interest at the prescribed annual rate (currently 10.25%), which means where SARS raises an additional tax assessment, you should expect an initial tax bill of R140 500 (R40 000 tax + R80 000 understatement penalty + R20 500 interest for 5 years), which will continue to increase until you have paid the outstanding tax. Importantly, a taxpayer may also face other types of penalties or interest and this is confirmed by the wording of section 213(1) of the TAA, resulting in possibly even a bigger tax bill, depending on the circumstances. An example is a percentage based penalty of 10%. The penalties imposed can sometimes be reduced or completely remitted, depending on the facts. You will always do better negotiating this upfront before the assessment is finalised and by correctly engaging with SARS. The Tax Court is the last place you want to argue the remission of penalties. There are many cases where the Tax Court has instead increased the penalty and cases where the penalty was waived are rare.

Must-know items to ensure you are protected Where SARS starts the audit incorrectly, such as sending an incorrect notice, you can stop the process in its tracks by addressing this through the correct legal procedure. SARS is obligated to keep you updated, under law, on the progress of an audit. Where they have started an audit and not kept you updated every 90 days, tax law gives the advantage to the taxpayer. We have used this many times to terminate an audit process. Know your rights; there are checks and balances which protect taxpayer rights. Should SARS want to conduct an audit, verification or inspection, section 42 of the TAA places the onus on them to ensure that they keep the taxpayer informed of the status of the audit while it is being conducted, and when it is finished. This requires SARS to provide a taxpayer with a report which sets out the stage of completion of the audit. Section 42 also requires that SARS inform the taxpayer, within a period of 21 business days, of the outcome of the audit or criminal investigation; including if the audit was inconclusive. In the outcome of the audit, SARS is also required to state the grounds for the proposed assessment it intends issuing against the taxpayer. SARS must share their findings with you before raising an additional tax

“ SABI Vol 8 Issue.indd 107

The best defence possible is that you come clean with your taxes before you are audited’

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SARS is obligated to keep you updated, under law, on the progress of an audit. Where they have started an audit and not kept you updated every 90 days, tax law gives the advantage to the taxpayer.’

assessment. Section 42 of the TAA compels them to give you their findings within 21 business days of the audit or criminal investigation being concluded. Luckily for the unsuspecting taxpayer, section 42 allows a taxpayer the opportunity to respond to SARS and to the facts or conclusions set out by SARS in the outcome of the audit. This is particularly useful where the findings are factually or legally incorrect and may even prevent an assessment being raised incorrectly. Also, even after the tax assessment has been raised, the taxpayer has extensive rights during the processes of asking for “reasons” for the assessment (Rule 6 of the Rules promulgated under section 103 of the TAA), “objection” (Rule 7), as well as the “appeal” and “alternative dispute resolution” processes (Rule 10 and Part C of the Rules, respectively).

Come clean before you are audited The best defence possible is that you come clean with your taxes before you are audited. Once the audit has started you are prevented from claiming the relief under section 227 of the TAA for coming clean. The key requirement is that you need to approach SARS correctly on your non-compliance and this always ensures a much better outcome under law, as well as allowing you to sleep better at night. n www.taxconsulting.co.za

Natasha Wilkinson, Attorney at Tax Consulting SA

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TERMS & CONDITIONS

Six reasons why Terms & Conditions are critical to your business By Frank Knight CEO of Debtsource

Terms and conditions are often overlooked or not drafted in detail when entering into a business agreement with potential customers. You would think that all entrepreneurs and business owners would insist on signing proper agreements and read the agreements that cross their desk. In most instances, this is not the case. Frank Knight, CEO of Debtsource â&#x20AC;&#x201C; a specialist B2B credit management company - highlights six basics that business owners should consider when concluding B2B credit agreements with clients. Of the thousands of credit agreements (credit

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application forms) that we audit for our customers every month, only about 40% require no changes, meaning that a staggering 60% of crucial credit agreements involving literally billions of Rands in trade credit transactions have some contractual defect.

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TERMS & CONDITIONS

These include agreements that are not signed by a director or an accredited member of the debtor’s company; clauses that are not legible; pages that are not initialled; critical clauses that have been deleted and the agreement being signed in the incorrect company name. It turns out that many entrepreneurs are not really ‘details’ people and prefer to ‘look at the bigger picture’ rather than being concerned with details about terms and conditions. This, of course, can have catastrophic repercussions when deals go wrong as courts are almost always only interested in whether the terms were indeed crossed, before they become enforceable. 1. In South Africa, every page of an agreement must be initialled. If the client has not initialled a page, there’s a good chance that the clauses on that page won’t be enforceable. 2. The terms and conditions that you print on your statement or the back of your invoice are useless. The person accepting delivery for your goods is not authorised to commit to your terms and conditions and their signing of the invoice to accept delivery of the goods should by no means be interpreted as you having enforceable terms. Similarly, terms and conditions which are housed on a website

somewhere will not be enforceable if you try the ‘you agree to our terms hosted at www…’ approach. 3. Only directors of companies, or those specifically authorised by the directors, can commit their company to your terms and conditions. It is pointless for anyone else to sign your agreements or credit application. 4. The purpose of an agreement is not to make it as short as possible. The purpose is to include all the required clauses that you may need when things go wrong. Some business owners feel guilty for asking their customers to sign a detailed document and edit out critical components to make the document look less onerous and offensive. At the other end of the spectrum, there is no need to ask your client to sign a document the size of a telephone directory. For normal trade credit transactions, you shouldn’t need more than 25 clauses in your document (but bear in mind this is often industry dependent.) 5. You must retain a legible copy of the signed agreement, even if it’s not the original. Ideally these agreements need to be scanned and safely retained. Often ongoing clients will not be asked to sign a further agreement for years, meaning that you may have to rely on a document that was signed a long time ago when a dispute arises. Mislaying the document, or not being able to clearly read the clauses of the document may cause further disputes. 6. Business owners (or a responsible person) should look through every new agreement which their sales force sign before starting the trading relationship with their new client. The stereotype sales person is typically not ‘details oriented’ and if they have omitted key information or added wrong information, trouble will ensue. It is best to check the document at the outset and resolve any issues before the trading relationship begins. Millions of Rands are wasted in legal costs and protracted court battles because of agreements not being diligently managed. Spending time and money upfront to ensure you have a solid agreement and then applying diligence to the signed document is an investment you will never regret. n

Frank Knight CEO of Debtsource

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Women in Construction The Institute for Timber Construction South Africa (ITC-SA), South Africa’s professional body and regulator of the engineered timber structure industry, spotlights three of its female members who share their experiences as women in construction.

A view from the top: South African women in roofing By Jennifer Rees

While the construction sector in South Africa provides a significant number of jobs and plenty of opportunity for entrepreneurial activities, representation of women across all strata in the sector is lacking. According to the National Home Builders Registration Council’s (NHBRC) Women Empowerment Programme website: ‘Participation by women in the construction industry remains low. Support for women-owned construction businesses is now a matter of urgency.’1 Even so, and thanks to empowerment programmes such as the NHBRC’s, women are entering – and making it – in the South African construction sector. The timber roof truss industry is no exception. The Institute for Timber Construction South Africa (ITC-SA), the SAQA-accredited professional body for the engineered timber construction sector, sheds light on three of its female members, what their respective journeys have been in the trade and how they have experienced working in a traditionally male-dominated industry.

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Jewel Kreutzfeldt, National Engineering Manager, MiTek Industries SA Kreutzfeldt, an Engineering Member of the ITC-SA, studied civil engineering at Witwatersrand Technikon and has worked in the roofing industry for the past 27 years. With an engineering background, Kreutzfeldt has an affinity for complexity: ‘I love to solve problems relating to intricate roofs and to work out how to best frame them,’ she says. But her entry into the sector did not come without its own difficulties. ‘In the beginning of my career, a particular challenge I faced was having to prove to contractors that I knew what I was talking about. Many of them had been in the industry for longer than I had and loved to tell me so. As a woman in a traditionally male environment, earning their respect took some time,’ she says, adding, ‘but having been in the game for so long, people now know who I am at MiTek and I don’t need to prove myself. I enjoy a great deal of respect from my customers and the people with whom I work.’

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Susan Hair, Roof Designer, Mustbuild, George Hair has been in the roofing industry for 30 years. ‘I was employed to do the invoices, but this only took the morning to complete, so I watched the designers at work and started doing quotes as well,’ says Hair, whose passion for her work has to do with ‘the variety; the quotes, design and site visits. No two buildings are the same and I enjoy working on the design of a complex roof that really makes you think. I love what I do, and this carries over to the people I meet.’ ‘Construction has always been a male dominated arena, but if a woman is good at what she does and works hard, she will go far. While the scales of gender balance do need redressing, everyone ultimately must start from the bottom, but in my experience, women need to be more tactical about this; they need to make sure they are in the right place and business for themselves, then work their way up.’

Eldré Ludick, Owner, Trussco Ludick, owner of Blazecor 48 CC trading as Trussco, has been active in the roofing industry since 1997. She joined her then-husband, who was already in the construction sector, to start a building material supply company in Maser. ‘There was a demand for roofing in Lesotho, so I decided to start a roof factory as an add-on service to our building materials supply company,’ she remarks. ‘It was never my ambition to be in the construction industry, but I saw a business opportunity and took advantage of it.’ At the time of starting the business in Lesotho, there were not many women in the industry which was challenging for Ludick when it came to employee management and the day-to-day running of her business. ‘As a woman, it was uniquely challenging to earn the respect of my employees, so I had to draw a fine line between leadership and understanding; on being firm, but fair,’ she says. ‘In the beginning, building relationships with our suppliers and financial institutions was difficult, because the primary assumption at the time was that women were not career-driven, especially in the construction sector. However, I’ve built solid relationships with my suppliers and clients and have earned my place in the construction sector,’ she adds.

Other challenges Ludick has faced over the years have included accessing qualified artisans, especially because her business is in a rural area. ‘But we’ve established good relationships with local roof erectors that have the necessary training and have proven themselves highly capable; we’re happy to report that we’ve relied on the same team for the past four years,’ she says. For Ludick, being a woman in construction also has its benefits. ‘As a woman, I’ve always been motivated to go the extra mile to prove myself and to be taken seriously in the construction sector, and the extra mile can teach you a lot about yourself. In the early years, I adopted an aggressive approach towards business, but learned quickly that a fair, encouraging and caring approach was far more productive,’ she notes. While Ludick’s is a success story, she maintains that there is still much to be done to make the local construction sector more diverse and balanced. ‘Educational institutions have a great opportunity on their hands to market and shape the possibilities for women in construction, and financial institutions can benefit from making financial assistance more accessible to female entrepreneurs,’ she adds.

Women’s Day – every day Inaugurated more than 60 years ago to honour the more than 20 000 women who protested the extension of Pass Laws in South Africa to members of their sex2, today, Women’s Day – and Women’s Month by extension – has been culturally propagated in South Africa to highlight not only the importance and standing of women across all sectors and strata of society, but the many opportunities within arm’s reach to balance the scales of gender equality. The ITC-SA recognises the complex and often trying situations faced by women for equal participation in the construction sector and is thus proud to shed light on the stories of three of its valued female members, not only to celebrate them, but to help light the way to success for future female participants in the timber roof truss sector. n

References: 1. Women Empowerment Programme. National Home Builders Registration Council. http://www.nhbrc.org.za/wep/ Accessed: 9 May 2017. 2. ‘Women’s Month’. South African Government. http://www.gov.za/ speeches/womens-month-2016-4-dec-2015-1510 Accessed: 9 May 2017.

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If it’s not Inval®, it’s not Invincible Invincible Valves (Pty) Ltd T +27 (0) 11 822 1777 | E enquiries@invalve.co.za | W www.invalve.co.za

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Although we are proud to be SA’s original printer company, as business needs have evolved, so have we. That’s why today Nashua oﬀers a complete range of solutions that make sense for every aspect of your business. Giving us even more opportunities to save you time, save you money and put you ﬁrst. Contact us today for more information. 011 232 8000 solutions@nashua.co.za www.nashua.co.za

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