Regiments Handbook 2017

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REGIMENTS HANDBOOK Version 1.0 (May 2017)

CAPITAL MARKETS | STRATEGY ADVISORY | FUND MANAGEMENT | SECURITIES | REAL ESTATE | PRIVATE EQUITY


THE REGIMENTS HANDBOOK

Overview • The Regiments Handbook (Handbook) contains the company’s processes across all business units

Purpose • The Handbook serves as an operating manual to ensure the standardisation of business processes and create a professional, high performing organisation. • The Handbook will aid in the onboarding of new joiners to the firm as a reference to all processes.

Scope • The Handbook covers key processes across all business units and explains specific functions, i.e. HR functions, finance functions and compliance functions

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Benefits • Improvement initiatives can be highlighted and opportunities implemented

Version control • Each business unit has provided input for the Handbook. Content will be updated and released on a biannual basis; i.e. May and November. • Regiments will use an electronic copy for referral purposes


TABLE OF CONTENTS

STRATEGY ADVISORY ____________ 5 CAPITAL MARKETS ____________ 25 REAL ESTATE ____________ 31 PRIVATE EQUITY ____________ 45 FUND MANAGEMENT ____________ 55 SECURITIES ____________ 63 HUMAN RESOURCES ____________ 71 FACILITIES & IT ____________ 89 FINANCE ____________ 97 BD & MARKETING ____________ 127

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REGIMENTS STRATEGY ADVISORY 5


REGIMENTS STRATEGY ADVISORY

Regiments Strategy Advisory provides strategic advisory services to public and private sector clients, and internally within our group. We work collaboratively with our client partners to deliver sustainable value add solutions, enabling our clients to achieve their strategic objectives and accelerate their performance.

• Opportunity identification and management of the innovation pipeline • Advisory services to Regiments • Private Equity on infrastructure acquisitions • Business hand over upon successful completion of incubation

OUR OFFERING

Business improvement

Our service offering is organised into three distinct units with distinct offerings:

• • • •

Strategy and Implementation • Strategy Review and Development • Organisation Structure Review • Capital Programmes Review & Development

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Business Incubation

Documentation of processes & procedures Management of KPI Dashboards Management of action & error logs Identification and implementation of improvement initiatives


REGIMENTS STRATEGY ADVISORY

Proposals ADV_01

Resources

Overview

• Request for Proposal • Sources of RFP’s (panels, subscriptions, word of mouth) • Business Development BU

Government entities and large corporations release a Request For Proposal (RFP) when they need to buy products or services. The RFP is a formal document outlining the needs of the service or product required. The Business development division together with Regiments Strategy then submits a proposal to bid for the mandate. The purpose of the proposal is to outline how Regiments will meet the needs of the client and for the client to see in what ways the Regiment’s approach will better the competitor’s.

Overall fit into Regiments Value chain An effective, well written proposal is what essentially brings in business to Regiments, which in turn generates revenue for the entire company.

Definitions • BD - Business Development • RFP - Request for proposal • BU - Business Unit

The proposal process cab be broken up in two stages: 1. Pre-writing – This involves the Business development (BD) Business Unit, which involves sourcing a new project and knowing when RFP’s are out. 2. Writing the Proposal – This mainly involves the Strategy team and it has to do with putting together the proposal once the RFP has been received.

Timelines A project team and a project lead should be established within a day of receiving the RFP. All important dates and deadlines must be made clear within a day of the RFP being received so that the deadlines can be met. The time taken to complete the technical response to the RFP is project dependent.

Sourcing the RFP Tender

Understanding the RFP

Delegation of Authority

Company Documents and Company Profile

Techncal Response to the RFP

Feedback

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REGIMENTS STRATEGY ADVISORY

Stage

Step

Description

Owner

Timeline

Sourcing

1

BD to search for new tenders

• BD is required to identify when new tenders are out. This is done by subscribing to various magazines, being part of certain panels, by word of mouth and by networking. • BD will then obtain the RFP and share it with the Advisory team. This will outline the work needed to be done in terms of content and which BU’s are required to fulfill the mandate

BD

Ad hoc

Understanding the RFP

2

Briefing session

• Once the RFP has been received, the organization who put out the RFP holds a briefing session. This session details the purpose of the RFP and clarifies any questions regarding the mandate.

BD

24 hours

3

Signing the RFP Document

• The RFP document needs to be read and thoroughly understood before being signed. The RFP document will require signatures from the directors. The RFP needs to be understood thoroughly before starting the response to the RFP.

BD BU

24 hours

Delegation of Authority

4

Roles and Responsibilities to complete the RFP

• Within a day of the briefing session, a project team and project lead are established. • Sections to complete the RFP response are divided. • Due dates and deadlines are noted so that deadlines are met

BU

24 hours

Company documents

5

All relevant documents regarding Regiments are obtained

• All company documents and director’s ID’s are provided. • The Company documents include tax certificates, legal documents etc.

BD

24 hours

Company Profile

6

Provide a detailed company description

• The company profile includes a description of Regiments, guiding principles & values, Business model, Break down of all Business Units and Contacts.

BD

48 hours

• The framework for the company description is standard for all RFP’s and it should be updated when there are any changes Technical Response to the RFP

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Introduction

• The introduction outlines and characterises the industry of the company putting out the RFP. • Background information of the industry needs to be provided. • History should relate to the organisation and their current situation.

BU

Project Dependent

8

Understanding the Scope of work

• Regiment’s understanding and explanation of the issues based on the RFP provided. This section details and outlines the requirements of the RFP.

BU

Project Dependent

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Regiment’s Methodology

• Based on the Regiment’s understanding of the problems being faced, this section describes the methodologies to successfully execute the project scope.

BU

Project Dependent


REGIMENTS STRATEGY ADVISORY

Stage

Feedback

Step

Description

Owner

Timeline

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Projected Total Cost

• Break down of the costing structure for each phase of the project.

BU

Project Dependent

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Roles and Responsibilities

• Team to be assigned to the project. It provides a description of their qualifications, expertise and experience. The section outlines what the role of each team member will be for the project.

BU

Project Dependent

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Relevant Experience

• Overview of relevant competence and experience of Regiment’s. This gives a high level understanding of the issues previous companies faced and how Regiment’s successfully solved these issues.

BU

Project Dependent

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Conclusion

• Provides a summary of what is understood by the RFP and a summary of the proposed solution

BU

Project Dependent

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Follow up

• A follow up is done after the RFP is submitted. This identifies if Regiment’s obtains the tender or not and next steps

BD

Within 2 weeks of submitting the RFP

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REGIMENTS STRATEGY ADVISORY

Project Management Framework ADV_02 Overview The project management framework provides a structure on how projects should be undertaken, starting from the initiation phase. The purpose of having a framework adds structure to the project and outlines what needs to be done, the deliverables and who needs to carry out the tasks. The framework allows the team to fully understand the project goals so that their time is dedicated to specific tasks, which will increase the project efficiency. This streamlined method ensures that project deadlines are met and that the Advisory team adds value.

Timelines The project management framework is followed from the initiation phase to the closeout phase. The length of each project phase is dependent on the project.

Resources • • • • • • • •

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Project Charter Template Meeting Agenda Template Deliverables List Project Quote Template Project Risk Management Template Project Budget Template Project Schedule Gantt Project Dashboard Template

Overall fit into Regiments Value chain Having project management framework allows the team to understand the current situation, the end goal and the steps needed to achieve it. The framework offers a structured manner to achieve the end goal so that the process is efficient. A well executed project generates revenue for Regiments.

Definitions • • • •

BD - Work Breakdown Structure RFP - Business Development BU - Business Unit Project Charter - A document that provides a description of roles and responsibilities, outlines the project objectives, identifies the main stakeholders, and defines the authority of the project manager.


REGIMENTS STRATEGY ADVISORY

Stage

Step

Initiation

Description Inputs

Owner

Timeline

Input • Document from client detailing problem to be solved • Approval from BU head/Executive member/Partner to proceed with the project

1

Problem Definition

• What is the problem that is being solved • How do we address the problem • Viable options to implement solution • Risks associated with each option • Impact of each option

BU

2

Scope

• Scope and requirements are confirmed • Outputs to solved for agreed solution

BU

3

Schedule

• A high level plan detailing milestones with related dates

BU

4

Project Team

• Identify project sponsor • Assign project manager • Assign team members

BU

5

Project Charter

• Project charter to be compiled • Project charter initiates a project exists and gives the project manager authority to action items on the project

BU

6

Approval to Proceed

• Project charter to be approved by Project sponsor, project manager, executive and partner

Sponsor Manager Partner

Outputs

Oututs • Signed project charter • Draft schedule • List of team members

Planning

Inputs

Input • Project charter • Document from client detailing problem to be solved

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Work Breakdown Structure

• A work breakdown structure is a key project deliverable that organizes the work into manageable sections.

BU

8

Deliverables

• From the WBS, detailed deliverables will be identified • Team members are assigned deliverables

Project Manager

9

Final Schedule

• Detailed plan linking deliverables to milestone dates , completion dates and responsible persons. • Project reporting will be tracked against the plan

Project Manager

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Project Organogram

• Identify detailed list of deliverables to satisfy solution generation

BU

11

Communication

• Create detailed communication plan • The communication plan will indicate communication networks

BU

12

Support

• The support required from other departments • Type of support and time to be indicated

BU

13

Budget

• The budget provides a cost of the services rendered and should be reported weekly

BU

14

Risks

• Risks to completing the project at the stipulated date and potential cost overruns are identified with mitigating solutions

BU

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REGIMENTS STRATEGY ADVISORY

Stage

Step 15

Description Approval to Proceed

• Schedule, deliverables and communication to be approved

Outputs

Outputs • • • • • •

Implementation

Inputs

Project Manager

Project schedule Details of work packages Details of deliverables Project budget Detailed Communication plan Risks mitigation framework

Input • • • •

Project plan List of deliverables Work packages Communication plan

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Build/ Develop Solution

• Development of solution begins • Detailed analysis and development of strategy for client

BU

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Reporting: 1.Client 2. Internal

• Reporting to the client on a weekly basis on progress and issues • Weekly reporting internally to project stakeholders

Project Manager

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Meetings

• Meetings with client to be structured and agenda provided • Daily internal meetings on progress between team members

Project Manager

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Ongoing planning/ deviation Management

• Deviation management represents the cycle between planning and implementation

BU

20

Change control/ scope management

• Impact due to scope change to be managed (time and cost impact)

BU

21

Solution finalisation

• Generate solution into documentation for presentation and handover to client

BU

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End User Documentation

• Create training material for client training • Create case study of project for internal records

BU

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Training material

• Create training material for client training • Create case study of project for internal records

BU

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Approval to proceed

• Scope and requirements are confirmed • Outputs to solved for agreed solution

Project Manager

Outputs

Outputs • • • •

Handover

Inputs

Client deliverables in final format Training material Case study Approval to proceed signed document

Input • • • •

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Owner

Client deliverables in final format Training material Case study Approval to proceed signed document

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Present solution to client

• Create PPT deck with solution • provide extracts of training material on PPT

BU

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Train client

• Train client on the use of tool

BU

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Handover pack

• Prepare a hard copy of documents to be handed over to client • Prepare a soft copy of documents to be handed over to client

BU

Timeline


REGIMENTS STRATEGY ADVISORY

Stage

Step 28

Description Approval to proceed

• Client has excepted solution • Handover pack given to client • Training complete

Outputs

Outputs • • • •

Close-out

Inputs

Owner

Timeline

Project Manager

Handover pack CD with all documents Hard copies of solutions Training or user manuals of tools

Input • • • •

Handover pack CD with all documents Hard copies of solutions Training or user manuals of tools

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Client sign-off

• Client has signed off that the project is complete and is satisfied with the solution

Client

30

Client satisfaction survey

• Client satisfactory survey completed by Business development

BD

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Approval to close project

• Client sign off document • Business development satisfactory survey done

Project Manager Client BD

Outputs

Outputs • Completion versus LOI document signed off with client • Client satisfactory survey • Team performance appraisal completed and documented • Close out meeting with leadership • Post project impact evaluation date • Close out dinner with client

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REGIMENTS STRATEGY ADVISORY

Department Review Process ADV_03

Resources

Overview

• Process flow template • Procedure Template • Process documentation template

Following the changes to the Regiment’s structure, a new strategy and operating model has been defined.

Overall fit into Regiments Value chain

As part of the Regiments Strategy, each department is required to undergo a review process. This is done by defining the core functions and processes of the department. The idea is to streamline all business processes and in doing so to find improvement opportunities based on the Standard Operating Procedure Before resource requirements can be defined, the procedures to support the process flows need to be understood.

The documentation of BU processes across all departments will streamline the processes into the new Regiments Strategy. This will allow the BI Team to identify what is being done and how it can be improved in order to make the process more efficient.

Definitions • BU - Business Unit • BI - Business Improvement

Timelines The time taken from designing the content of a BU process to the time it gets signed off is 4 weeks. The process is run for multiple BU processes at a given time so that all the processes can be documented efficiently. The Department Review process has five stages : 1. Content Design 2. Draft Report 3. Report Review 4. Updated Review 5. Sign-off

Define business processes

• Business units to define current business processes and core functions

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Document process flows

Define procedures

• Once business • Once process processes are flows have been defined, advisory documented, team with BU BU resources to resources will document the document process procedures flows where required • Advisory team will review procedures and suggested edits where appropriate

Agree resource requirements

• Once processes, flows and procedures have been agreed, BU head along with Advisory team will finalise resource requirements


REGIMENTS STRATEGY ADVISORY

Stage

Step Description

Owner

Timeline

Define Business Processes

1

• • • •

BU resource to list all department processes Advisory team to review against Regiments Strategy Finalise department core functions If some processes overlap, they can be grouped into one process document, using “swim lanes” in the process flow diagrams

BU

1 week

Document Process flows

2

• • • •

Detail process flows to support core functions Review with BU head and senior management Incorporate changed and finalise process flows Based on the processes defined, the BI team will map out the process flows for the BU processes. This will be done by having a working session with the BU. Once the content is received, the BI Team will document the process flow in the standard Regiments format.

BI

1 week

Define Procedures

3

• • • •

Document procedures for required steps in process flows Review procedures with BU head and senior management Finalise procedures The BU will define the procedures and a description of each flow in the process • The BI team will then edit the procedures and implement them into the Regiments format • The BI Team will create a draft handbook

BU BI

1 week

Agree on Resource Requirements

4

• Create resource requirements based on above • Review with BU head and senior management • Finalise resource requirements

BU BI

1 week

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REGIMENTS STRATEGY ADVISORY

KPI Management ADV_04

Overall fit into Regiments Value chain

Overview

Efficient KPI Management and constant monitoring of KPI’s ensures that deliverables are met and that goals are achieved.

A Key Performance Indicator (KPI) is a type of measurement used to determine how well an organisation is meeting its goals and deliverables. KPI’s give a quantifiable indication of the success of an organisation. The measurement criteria is dependent on the type of project and on what is being measured. It is essential to choose the correct KPI’s for business performance. The KPI’s should relate to the company as a whole in terms of:

The KPI Management process allows any issues to be solved so that the desired outputs can be achieved. Meeting deliverables and project deadlines impacts positively on the entire business and generates revenue for Regiments.

Definitions • KPI - Key Performance Indicators • BU - Business Unit • BI - Business Improvement

• Organisational vision and strategy • Organisational objectives • Critical success factors

Timelines Once the KPI’s are defined for a given project, targets and goals are set and these goals are monitored on a weekly basis. KPI management runs for the duration of the project. Determine KPI’s

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How are they measured?

Set Targets Baseline

Monitor and Adjust


REGIMENTS STRATEGY ADVISORY

Stage

Step

Description

Owner

Timeline

Determine KPI’s

1

Determine a list of KPI’s that should be measured

• Engage with the Business to determine the KPI’S. • KPI’s are determined taking into account: • Volume • Errors • Productivity (efficiency) • Core objectives, critical success factors

BU

Project dependent

How are they measured

2

Determine quantifiable criteria on how the KPI’s should be measured

• KPI’s are measured differently, depending on the BU and the project.

BU

Throughout the project

Set targets Baseline

3

Set weekly targets

• Based on the KPI criteria, weekly targets and daily targets are set. These targets are then monitored. • The targets set are dependent on the project and the end goals. • E.g. For a sales division, a KPI would be set to sell X amount of products for that week. This would be monitored and then adjusted dependent on the outcome. This can then go into further detail of products sold per employee and tasks per employee, which would ensure the correct use of resources

BU

Throughout the project

Monitor and Adjust

4

Monitor the progress in achieving the targets

• After monitoring the targets after a period of time, trends can be seen. The targets are then revised and adjusted dependent on the results seen. • When a target is at a maximum, new targets are set. • A loop occurs where the process goes back to step 2. The loop ends once the project is complete. • This part of the process gives rise to improvement opportunities

BU

Throughout the project

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REGIMENTS STRATEGY ADVISORY

Action Log Management ADV_05 Overview The principle behind the action log management process is that after every meeting, problem solving session or working session there are always actions that come out of what has been discussed. A way forward and steps to achieve the goals typically come out of the meetings or problem solving session. Often, the actions that come out of the sessions are not monitored, which results in them not being completed on time or even forgotten about. The purpose of the action log management process is to track the progress of any actions until completion so that deadlines can be met and value is added. The process assists with understanding the current situation, the end goal and the steps needed to achieve the end goal. The actions are tracked on an Excel spreadsheet which outlines: • • • • •

The action A description of the action Who’s responsible When is it due An update from the previous week

Overview The improvement initiative process ties in with the department review process. Once the department has been reviewed and fully understood, the Business Improvement team can analyse what’s being done and how efficient the existing processes are. This gives the BI team an indication on possible improvements can be made. The improvements are then monitored to see how effective they are and adjusted when necessary. Opportunities identified will be implemented based on: • • • •

Ease of implementation Expected Impact Cost associated with implementation Timelines

Timelines The improvement initiatives are derived once the business processes have been reviewed. The improvements that are implemented are monitored on a weekly basis and updated accordingly .

Timelines

Resources

The actions are entered into the action log management spreadsheet within 24 hours after being discussed at a meeting or problem solving session. The actions are then monitored on a weekly basis until complete.

• Action log management template

• The process is driven by the Business Improvement team • The BI team is required to identify possible improvement opportunities • The BU is required to implement any changes based on the recommendations made by the BI team • The BI team will monitor the effectiveness of these changes.

Overall fit into Regiments Value chain

Overall fit into Regiments Value chain

Efficient action log management and constant monitoring of actions ensures that changes are made and that all value gained in a meeting or problem solving session is recorded. This allows desired deliverables to be achieved, which impacts positively on the entire business and allows Regiments to add value.

This process identifies possible improvement opportunities so that processes are carried out at their optimum level. If processes are carried out effectively by each BU then this increases the efficiency of the entire business.

Resources

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Improvement Initiative Approach ADV_06


REGIMENTS STRATEGY ADVISORY

Definitions • BI - Business Improvement • BU - Business Unit

Review of opportunities

Stage

Select opportunities to implement

Create tactical implementation plans

Monitor and adjust where needed

Implementation

Step Description

Owner

Review of opportunities

1

Review all opportunities identified and assess which are practical to implement • Assess following criteria: • Ease of implementation • Cost • Timeline • Resources required • Expected impact

BI

Select opportunities to implement

2

Based on review, select which opportunities are going to be implemented in: • Short term • Medium term • Long term Based on opportunities selected, create metrics to measure impact

BI

Create tactical implementation plans

3

For each opportunity selected, create a tactical implementation plan detailing: • Timelines • Milestones • Roles and responsibilities • Tasks • Risks and mitigation

BI

Implementation

4

• Implementation of the initiative including communication plan to effected staff

BI

Monitor and Adjust where needed

5

• Monitor impact of implementation and adjust solution where required On a weekly basis to realise maximum impact

BI

Timeline

On a weekly basis

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REGIMENTS STRATEGY ADVISORY

Business Incubator Process ADV_07

The objective of the gates is to; ensure quality of execution, evaluate business rationale and approve the project plan and resources.

Overview

Timelines

As one of the mechanisms for Regiments to promote the core values of Entrepreneurship and Innovation, the Business Incubator stream aims to identify and manage the creation of new assets. The Business Incubator process deals with a project from the idea phase, until it becomes a commercialised project. The process uses the “Stage-Gate” process as a framework. The Stages are where project activities are conducted and the gates are where business evaluations and decisions are made.

The time taken to complete the process is project dependent. Each project is dependent on a number of factors; the time taken to complete the research, availability of funding and the resources available.

Resources • Project Management Book of Knowledge (PMBOK) • Sources of Funding • Investment committee approval • Gate-ways at the end of each stage of the project

The Business Incubator process can be broken up into a few stages: • • • • • •

Idea Generation Innovation pipeline management Commercial Viability Assessment Identifying sources of funding Commercialising the Project Transition to private equity

Overall fit into Regiments Value chain The Business Incubator process allows the team to identify opportunities, develop the ideas identified and create a new asset for Regiments.

There are various checks done at the end of each project stage (gates) to ensure that deliverables are met at that stage and to constantly check the feasibility and viability at each project phase. These “gate-ways” give an indication on whether to continue, do more research or abandon the project.

Customer & Market Input

Trend Analysis

Project Phase

Tasks

Innovation Expert & Technology Input

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Outputs/ Gateway

Need Interviews Customer Sampling

Ideation

  

Innovation pipeline Management Idea generation Research environment

Ideation workshops with technology and market expert participation

A number of Project Ideas

The new asset creates business for the Private Equity Division. The process promotes the Regiments values of Entrepreneurship and Innovation.

Scoping

 

Evaluation of ideas High level Viability Potential Business opportunity

Piloting and testing with potential customers

Market Research

Building a Business Case

 

Detailed evaluation Market and technical research Project definition and justification

Testing and Validation

Development

  

Detailed product design Funding Potential investors

 

Testing for any issues Product Handover

Technology platforms, project management, coaching and workshop moderation

Chosen topic for a potential project

Detailed project plan Approved Feasibility Review

Funding Secured Customers identified

Handover process with Private Equity

Launch Feedback Monitoring

Product Launch

   

Commercialise Monitor Market Introduction Close Project


REGIMENTS STRATEGY ADVISORY

Stage Ideation

Scoping

Building a business case

Development

Testing and Validation

Step 1

2

3

4

5

Description

Owner

Innovation Pipeline Management

• This is the pre-work phase. It is designed to generate new ideas and identify a potential business opportunity. The aim is to foster a research environment. • This phase incorporates multiple brainstorming sessions

BI

Criteria

• Research is done based on what the company wants, company values, company strategy and is able to pursue with the available resources and relevant experience.

BI

Gateway

• Ideas for potential projects

BI

First level review

• Quick, inexpensive preliminary investigation and scoping of the potential projects identified in the idea generation phase. This phase is predominantly desk research and involves market research and a high level viability. Based on the viability of the ideas researched, an idea is chosen, captured and presented to a panel (typically the CEO’s and CFO) for approval.

BI

Second level review

• Depending on the outcome of the first level review, the panel may require more information on the topic and additional research will be carried out. • The research is carried out until the panel has enough information to make a decision on whether to carry on with the project or not.

Review Panel

Gateway

• Chosen topic for a potential project

Review Panel

Creation of a Business Case

• A detailed investigation of the chosen idea. This involves both market and technical research leading to a Business Case, including product and project definition, project justification, and the proposed plan for development.

BI

Criteria

• • • •

Gateway

• A detailed project plan should be developed • Feasibility review, which needs to be approved by the investment committee

Investment Committee

Detailed product design

• The actual detailed design and development of the new product and the design of the operations or production process required for eventual full scale production.

BI

Gateway

• • • •

BI

Product validation

• Tests or trials in the marketplace, lab, and plant to verify and validate the proposed new product, brand/ marketing plan and production/ operations. • Any bugs or issues are identified. The product is tested by potential customers and feedback is provided. Any improvements are made.

Timeline

Cost Benefit Analysis Risk Assessment Commercial Viability Assessment Payback Period

Funding should be secured Customer base should be identified Suppliers identified A prototype should be developed

BI

21


REGIMENTS STRATEGY ADVISORY

Stage

Product Launch

22

Step

6

Description

Owner

Handover

• The project is then handed over to Private Equity. Private Equity will commercialise the project and develop it as a business

Private Equity

Gateway

• Completed, improved and tested product • Handover process with Private Equity

Private Equity

Commercialization

• Beginning of full-scale operations or production, marketing, and selling. • Monitor market introduction

Private Equity

Timeline


REGIMENTS STRATEGY ADVISORY

Weekly Performance Review ADV_08

The sessions begin at 8:30AM every morning (can be adapted depending on the agreement of the manger).

Overview

Resources

The performance reviews outline the deliverables for the week and assists with any issues in order to achieve them. The progress is monitored daily so that deadlines can be met.

Timelines The daily check in takes 15 minutes and it happens from Monday to Thursday. On Friday’s an individual 30 minute close-out is held with each team member.

Monday Kick-off

Stage

• Weekly Performance Review template • Monthly Review report

Overall fit into Regiments Value chain Strategy Advisory is a BU of Regiments and their success impacts on the overall success of Regiments.

Tuesday - Thursday Morning sessions

Friday check-out session

Description

Owner

Timeline

Weekly Monday Kick-off

• • • •

Tasks for the week are outline Granulate the tasks The entire team is involved Check-out email sent to the manager at the end of the day

Division Manager BU Employees

30 minutes

Tuesday to Thursday check-in sessions

• • • •

A review on the previous day’s work and the progress Granulate tasks for the day Provide any assistance where needed in meeting deadlines Check-out email sent to the manager at the end of each day

Division Manager BU Employees

15 minutes each day

Friday check-out session

• An individual performance review is done with each team member based on what was achieved that week and why deadlines were not met, if any • This is seen as a mentorship stage • The weekly performance online questionnaire is filled out (scores are agreed on by employee and manager). The questionaires track the yearly performance and trends can be identified • Check-out email sent to the manager at the end of the day • The manager within each stream of the BU needs to compile these emails and sent them to the head of the BU at the end of each week

Division Manager BU Employees

20 minutes per team member

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REGIMENTS CAPITAL MARKETS 25


REGIMENTS CAPITAL MARKETS

Regiments financial advisory offers an integrated suite of financial advisory services in the investment banking space covering capital market advisory and risk and quantitative analytics. Our principal advisory services cover treasury matters, derivative products, fund raising, assisting clients in preparing their funding plans, and in developing their balance sheet optimisation strategy. We deliver these services to clients who include municipalities and state-owned companies (SOCs). At present we do not have any private-sector clients. Except in instances where only our advisory services are required, we charge the bulk of our fees in the form of success fee. This aligns our interests with those of our clients, ensuring that our clients derive maximum value from our service offering. In addition to our clients, our key stakeholders include employees, financiers, business development partners, suppliers of IT infrastructure, and research and database platforms. 26

The majority of our business is derived from the public sector and in some instances this can have the effect of lengthening lead-times of securing contracts. We are nevertheless committed to working closely with all our clients to ensure that their needs are met and expectations exceeded. We pride ourselves on our long and entrenched client relationships, and work tirelessly to provide superior quality services. We aim to remain accessible to our clients at all times. Apart from the company-wide business development effort, client engagement is managed primarily by the head of the business unit during one-on-one meetings with finance officers and teams from client institutions. We believe that our success based fee structure is the bedrock of the long term client relationships that we enjoy, as this demonstrates the fact that we share in the benefits that we help create – as opposed to tapping into the constrained financial budgets of our clients.


REGIMENTS CAPITAL MARKETS

To Be Updated

27


REGIMENTS CAPITAL MARKETS

Stage

Step 1 2 3 4 5 6 7 8 9 10 11 12

28

Description

Owner

Timeline


REGIMENTS CAPITAL MARKETS

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REGIMENTS REAL ESTATE 31


REGIMENTS REAL ESTATE

Regiments’ real estate business unit has grown significantly from its initial mandate of developing the group’s new headquarters to realising further development opportunities. We provide a development management service to Regiments Investment Company as well as external clients. Our major developments include Regiments’ new headquarters at 35 Ferguson Road in Illovo, and Kgoro Central, a multi-phase mixed-use development in the heart of Sandton.

Environmental sustainability is an important design principle that we embed in all of our projects. As a minimum we ensure that all of our projects are energy efficient, use green sources of energy (solar, natural gas and tri-generation), and have a water management strategy that includes rain water harvesting as well recycling of building waste. We build from the ground up and from start to finish.

Revenue for the unit is derived through a development management fee, charged as a percentage of the total development cost of each project. We also earn building management fees. Potential additional revenue streams include commission earned on sales and leases that we conclude on any new projects, development management advisory, and facilities management post the development phase.

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Real Estate Development

Investment Banking Real Estate Advisory

Real Estate Development Fund


REGIMENTS REAL ESTATE

Sales and Administration RE_01

Overall fit into Regiments Value chain

Overview

An effective sales and administration process is essential when dealing with clients so that they invest in Regiments Real Estate, which will generate an income for the business.

The purpose of the Sales Standard Operating Procedure (SOP) is to provide clear procedural steps, timelines and owners for the sales process so that, in practice, the process is efficient and the client has a high quality and seamless experience.

Timelines A sale can take up to two weeks from the time of interest shown to the sale being made. The documentation and contracts take up to 30 days for processing and approval.

Definitions • Expression of interest (EOI): A document expressing the clients interest in purchasing a property within a development • Reservation: an expression of interest that results in unit/s of property being allocated to a potential buyer.

Resources • Expression of interest form • Letter of Congratulation • Sales Contract

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REGIMENTS REAL ESTATE

Stage Potential Buyer

Contracting

Step

Description

Timeline

Expression of Interest (EOI)

• Once a client has expressed interest in purchasing a property, the salesperson must populate and submit an Expression of Interest document to the Admin team for compilation of a contract. The administrator must populate a Letter of Congratulations and Sales contract file this letter.

Sales person

1 day

2

Reservations

• A reservation is an expression of interest that results in a unit of property being allocated to a potential buyer without an EOI document being completed. Reservations that do not turn into OTP’s within five days must be escalated to the HOD and relevant salesperson. The salesperson must then contact the potential buyer to determine if he/she is still interested in the property.

Admin

5 days

3

Preparation of the contract

• The contract must be prepared by the administrator. The contract must be converted to PDF and sent to the buyer for signing. This signing must be done in 7 days in either hard or soft copy. Signed contract is checked by DM back office for completeness. The contract must then be signed by the seller within 2 days. Once signed by the seller, the contract must be loaded into AMPS. A copy is sent to the bank/bond originator and Regiments contract storage mailbox. The PDF must be stored on Regiments file server and the hardcopy must be filed in safe.

Admin

2 days

4

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Owner

1

• The contract must be checked for errors by the Sales Manager and the Head of RE.

5

Deposit

• A letter of congratulations will be sent to the client requesting deposits to be furnished within 7 days. Admin staff must forward contracts to the relevant banks chosen by the client on the EOI. The deposit must be paid by the buyer and proof of payment received by Regiments.

7 days

6

Bond / Bank guarantee

• Admin to check status of Bond application. Admin to check if bank guarantee has been received by the client

Admin

30 days

7

Preparation of Legal Documentation

• (Follow up) Documentation must be prepared by conveyancers.

Legal

30 days


REGIMENTS REAL ESTATE

Procurement RE_02 Overview The purpose of the Procurement Standard Operating Procedure (SOP) is to allow Real Estate to procure services within Regiments Real Estate procurement process. The process ensures that: • Services are procured according to Regiments procurement policy. • Services are procured in a fair, equitable, transparent, competitive and cost effective manner. • Economic transformation i.e. BBBEE objectives are met. Market procurement standards and practices are adhered to by providing clear procedural steps, timelines. • Services are procured with consideration to performance, quality and safety.

Timelines The process is event driven and timelines differ depending on the scope of the project.

Resources • • • •

Commercial and retail lease agreements Project Feasibility Service provider proposal Purchase requisition

• • • •

Supplier Database Letter of Intent Letters of Intent and Appointment Service Level Agreements and Industry Contracts (e.g. FIDIC, JBCC, NEC) • Industry Bodies (e.g. CIDB, SAPOA, SAIBPP, etc.) • Services providers (professional team, service providers and contractors)

Overall fit into Regiments Value chain Procurement is support function to Real Estate value chain (i.e. design, development, construction and property management). Services provided include: • • • • •

Procurement Strategy Service provider sourcing Tendering Contracting Contract Management

Definitions • Beneficial occupation: decision making powers which can be passed by way of resolution signed by Regiments Directors • BBBEE: Broad Based Black Economic Empowerment is governed by the Broad Based Black Economic Empowerment Act 53 of 2003 • Procurement Committee: Committee consisting of members from different Business Units chaired by Regiments Director • Quotation: Fee proposal for services containing specifications • Proposal document: Document with concept, implementation and fee proposal

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REGIMENTS REAL ESTATE

36


REGIMENTS REAL ESTATE

Stage Procurement

Step

Description

Owner

Timeline

1

Request for service provider

• Requestor to issue requisition for required services

End user

1 day

2

Prepare and issue brief

• The brief should consist of an information pack informing the service provider of required experience, BBBEE targets, quantities as well as provide specifications. If require additional input into brief may issue a Request for Information to the market

End user & Procurement

1 week

3

Source service provider

• Check the database for a suitable service provider • Through f a media search, referrals, industry bodies or a tender

Procurement

1 week

4

Invite service providers to provide a proposal

• The proposal/ quote should provide information on scope, deliverables, cost, experience/expertise, industry accreditation and BEE status

Procurement

1 week

5

Proposal/ quote pricing

• If the proposal/quote is more than R1million then submit the recommendation to the procurement committee to adjudicate and select the service provider

Procurement and/or Procurement Committee

6

Notify service provider

• Notify service provider by way of written communication that they are the preferred bidder

Procurement

1 day

7

Prepare the letter of Appointment/contract

• Prepare the first draft of the contract/ letter of appointment in line with industry contracting standards

Procurement

1 month

8

Negotiate appointment

• Negotiate contract terms e.g. cost, scope, timelines, penalties, special conditions

End user and Procurement

2 months

9

Draft Contract/ Letter of appointment

• Draft final terms and conditions, performance management measures, disputes procedure and termination procedures

End use, Legal and Procurement

1 week

10

Contract Management

• Manage performance and payments. Performance is measured against quality, time and costs

End user and Procurement

Ongoing

37


REGIMENTS REAL ESTATE

Performance Management RE_03

Timelines

Overview

The performance management differs depending on the size of the project. Some of the processes within performance management have set timelines.

Performance management is an ongoing process in which a manager and employee agree on: • • • •

Resources

what must be done, plan how to do it share feedback, and assess performance.

• Payments are made by the finance administrator and released by the finance manager • Performance Template – found in the appendix

It is an interactive process of goal-setting, communication, observation and evaluation to support, retain and develop exceptional employees for organizational success. This includes: • Setting of clear expectations (goals) • Tracking progress towards achievement • Regular two-way communication about performance throughout the cycle • Setting of milestones and making adjustments (when necessary) • Documenting discussions Promoting ownership

Company sets objectives

Business unit sets objectives

Individual sets expectations and objectives

Overall fit into Regiments Value chain The performance management covers all projects within Real Estate at Regiments to ensure efficiency of the project.

Definitions • BU : Business Unit

Bi-weekly performance and discussion

Quarter 1 performance and checks

Mid-year review

Quarter 3 performance and checks

Final Review

Effect Effect increases/ increases/ bonuses bonuses

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REGIMENTS REAL ESTATE

Stage

Step Description

Owner

Timeline

Company Strategic Planning Process

1

• Leadership team breakaway to set company strategic objectives for the year. • Takes place during January/February each year.

Leadership Team

2 Months

Business Unit Sets Objectives

2

• Business Units Heads cascade the company objectives into divisional objectives.

BU

Individual Objectives Setting

3

• Each employee sets own commitments for the year based on divisional objectives. • Employee prepares own expectations planner for discussion with the manager. • Employee and manager discuss and agree on the expectations from both parties and agree on the commitments for the year. • Both parties sign off the commitments for the year. • Performance Objectives Template used.

Employee

Bi- Weekly Performance Discussions

4

• Regular status checks against plan for the preceding 1 week. • Set new tasks for the upcoming week. • Opportunity for coaching. Address concerns/barriers to success and any other issues. • Records of these discussions are kept. • Weekly Status Report Template used.

Manager

Twice a week

1st Quarter Performance Checks

5

• Both parties rate performance for the quarter. • Opportunity to coach for performance improvement. • Opportunity to recognise, re-enforce and reward excellent performance. • Records of these checks are kept • Quarterly Performance Check Template used

Manager Employee

3 Months

Midyear Reviews

6

• Both parties rate performance for the first six months of the year. • Opportunity to formalise performance improvement plan (PIP), if required. • Opportunity to recognise, re-enforce and reward excellent performance. • Records of these reviews are kept • Performance Review Template used

Manager Employee

6 Months

3rd Quarter Performance Checks

7

• Both parties rate performance for the 3rd Quarter. • Opportunity to start poor work performance process, if required. • Opportunity to recognise, re-enforce and reward excellent performance. • Records of these checks are kept • Quarterly Performance Check Template used

Manager Employee

9 Months

Final Review

8

• Both parties rate performance for the year. • Where there are differences in the self and manager rating, both parties meet to close the gap. Business Unit Head discusses divisional ratings with partners to address any anomalies (e.g. spread of ratings in the division looking at justification for very high scores and very low scores). • Ratings are adjusted where appropriate. All employees’ performance ratings are now considered final. • Partners and Business Unit Heads finalise increase and bonus allocations according to a set criteria in the Short Term Incentives Scheme Policy. • Manager meets with employee to review the employees’ performance and inform the employee of their overall performance rating, annual increase and bonus award. Employee and manager also use this meeting as an opportunity to highlight development ambitions for the coming year. • Partners plot the succession matrix and recommend development. • Performance Review Template

Manager Employee

Yearly

Effect Increases and Bonuses

9

• HR implements the increases and bonuses as agreed in step 8. • HR issues letters advising employees of their increase and bonus.

HR

Yearly

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REGIMENTS REAL ESTATE

Development Management RE_04

Overall fit into Regiments Value chain

Overview

This procedure covers the development management of all real estate developments undertaken by Regiments Real Estate.

The purpose of Development Management Standard Operating Procedure (SOP) is to provide clear procedural steps, timelines and also to ensure that all procurement are made with consideration to performance, costing, quality and safety.

Timelines The development management process differs depending on the size of the project. Some of the processes within the development management procedure have set timelines.

Resources • • • • • •

40

Commercial and retail lease agreements Project Feasibility Supplier Database Letter of Intent Letter of Appointment Service Level Agreements

It spans from the conceptualisation of a development to property management of a new development.

Definitions • BU : Business Unit • Beneficial occupation: decision making powers which can be passed by way of resolution signed by Regiments Directors • Practical completion: Broad Based Black Economic Empowerment is governed by the Broad Based Black Economic Empowerment Act 53 of 2003 • Leasing agreement: Committee consisting of Regiments from different Business Units chaired by Regiments Director • Facilities management : Fee proposal for services containing specifications • Property management: Document with concept, implementation and fee proposal


REGIMENTS REAL ESTATE

Stage Initiation and Concept Design

Feasibility/ Approval

Procurement

Construction

Step

Description

Owner

Timeline

1

Market and demographic Analysis

A request to be issued to Procurement by way of: • Email • Minuted request in meeting

End User

1 day

2

Identify professional team and appoint on risk

• Brief professional team • Document management and workflow

Head RRE/Inv Team

2 days

3

Statutory and property rights analysis

• Zoning, title deed and SG diagram analysis

Proc

5 days

4

Concept

• Concept design revision and design selection • Value engineer concept • Green building principles and life cycle engineering • SWOT analysis • Engineering input

Proc

5

Tenanting

• Formalise Tenant mix • Risk analysis (Market/Letting/Nodal, Construction) • Presentation to tenant

6

Feasibility

• Analysis and refinement • Investment criteria analysis • Internal approval of feasibility

End User/ Proc

5 days

7

Request quotes/ proposals

• Feasibility/ budget presentation to Tenant • Deal/ forum approval

Proc

7 days

8

Funding

• Development due diligence • Finalise land purchase and sale agreements • Marketing and leasing strategy • Finance approval • Legal interface/ development agreement

End user/ Proc/ Specialist

3 days

9

Professional appointments

• Appointment of professional team (signed PROCSA agreements) • Detailed development programme

Proc Comm

1 day

10

Town Planning and Property Analysis

• Town planning interface and appointment • Site Development Plan (SDP) submission • Traffic Impact Assessment • Environmental Impact Assessment • Geotechnical investigation

End User/ Proc

5 days

11

Design and plans

• • • •

Proc

1 to 15 days

12

Compliance

• Document Management and workflow • Confirm insurance compliance

13

Tender

• Prepare tender documents • Documentation and procurement coordination • Tender requirements: • Construction Methodolody • Health and Safety Methodology

Proc/ End User

Ongoing

14

Contractor Appointment

• • • • •

15

Site Establishment

• Insurance coordination • Site handover and kick-off meeting

Detail design and refinement Space Planning and interior design Engineering and services interface Building plan submission

Evaluation and adjudication Tender selection Appointment of contract Sign contract (JBCC, FIDIC, NEC) Construction guarantees

41


REGIMENTS REAL ESTATE

Development management

Close out

16

Contract Management

• • • • •

17

Tenant Management

• Attend letting meetings

18

Handover

• Beneficial Occupation for Tenants • Practical completion • Snagging/ defects inspections

19

Property Management

42

Site meetings Document management and workflow Contractor management OHS monitoring Financial management and claim evaluation

• Final completion • Handover manuals and training to developer • Handover to property/facilities management • Final account evaluation and approval

20

Tenants

• Relations • Lease Administration • Leasing management

21

Building

• Manage soft/hard services • Facilities management • Utilities management


REGIMENTS REAL ESTATE

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REGIMENTS PRIVATE EQUITY 45


REGIMENTS PRIVATE EQUITY

Regiments’ Private Equity unit is responsible for: • Regiments Principal Investments – adding value to current investments, sourcing and evaluating new opportunities for investment using Regiments’ own balance sheet. • Strategic acquisitions – providing corporate finance advice and implementation services to Regiments for transactions which grow Regiments’ core business capabilities. • Property asset investment and management – investment evaluation and implementation, post-acquisition and development performance monitoring, management and governance. • Private equity fund – in a new direction, we are currently raising a fund, simultaneously sourcing investment opportunities and building post-acquisition performance monitoring, management and governance capabilities Regiments Principal Investments / Private Equity unit aims to identify investment opportunities where we can contribute to the value uplift of investee companies through competencies, relationships or initiatives resident in Regiments. 46

We participate in the strategic planning processes of companies and on their boards of directors We seek investment opportunities for Principal Investments with attractive growth potential that generate revenue and with the potential to stimulate wider socio-economic development on a large scale. We invest both money and intellectual property, adding value through our experience and expertise, and with an eye to bringing about significant transformation. We invest where Regiments is sought out as a shareholder. Private equity clients will include pension funds, asset managers, high net worth individuals and international investors. Other key stakeholders with whom we maintain relationships include development funding institutions and financiers, such as the Development Bank of Southern Africa and the Public Investment Corporation. Our clients expect that their funds will be well-invested and securely managed to produce maximum financial returns. We strive to prioritise good corporate governance, robust investment and post-investment processes and clear lines of communication and encourage proactive feedback from all stakeholders.


REGIMENTS PRIVATE EQUITY

The Deal Process

Resources

Overview

• Partners and Senior Executives for the sourcing of deals • Business Development for deal sourcing • Regiments Capital Group Company Profile • Investors so that the deal can take place • Financial Models to Evaluate the investment

The Regiments Capital Principal Investments business unit has a very clear deal process in theory. The majority of the process (from Sourcing to Due Diligence) attempts to answer sets of questions about the target company and investigates whether it would be a good investment for Regiments Capital. The deal process is broken up into three stages: • Pre-Investment • Investment • Post Investment The pre-investment stage deals with the sourcing of possible projects and identifying of possible investors. This phase is the building blocks of the investment process, which makes it the most important. The investment process deals with the negotiations and the terms and conditions Regiments is willing to agree upon so that the deal can take place. This stage ensures adherence and agreement from both parties. The post investment phase is used to monitor the deal that took place and identify opportunities to add value. During this phase, the Private Equity team constantly looks to increase business value by monitoring and then improving the performance of the investment.

Timelines

Overall fit into Regiments Value chain The Principal Investments strategy is to actively pursue investment opportunities within three core segments: 1. “Value Creation“ - focus on strategic investments that support the existing Regiments Capital business or expands our service offering 2. “Value acceleration” - focus on businesses that are game changers within their industries and can deliver rapid growth 3. “Value capture” - focus on opportunistic investments that provide arbitrage opportunities with guaranteed returns and very little risk or potential transactions that have high alpha (risk weighted return vs benchmark/expectation)

Definitions • RPI : Regiments Capital Principal Investments • PE : Private Equity • BD : Business Development

The length of the Deal Process is dependent on the size of the investment and varies accordingly.

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REGIMENTS PRIVATE EQUITY

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The Deal Process – Pre Investment PE_01

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REGIMENTS PRIVATE EQUITY

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REGIMENTS PRIVATE EQUITY

The Deal Process – During Investment PE_02

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REGIMENTS PRIVATE EQUITY

The Deal Process – Post Investment PE_03

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Risk Management Process PE_04 Risks Pre-deal or reputational risk

Risk Management • The Fund will backed by Regiments, a reputable financial services company with a sound track record The Fund will invest in businesses that:

Investment risk: poor investment decision

Have a history of profitability (3-5 years) Show good growth potential Have strong management teams Fund will implement robust governance and deal assessment processes to minimise the risk of making a poor decision • Investment committee independent of Manco will approve investments presented. • • • •

The Fund will:

Investment risk: return expectations not met

• • • • •

Provide financial and business development support to portfolio companies Ensure adequate diversification by not over-investing in a single sector Ensure adequate diversification by not over-investing in a single investment Conduct careful due diligences on target companies Implement appropriate governance and oversight processes

The Fund will:

Operational risk

• • • •

Invest in the sectors of the economy that are currently under-funded Create awareness of The Fund through branding and marketing Have as many deal sources as possible Have exit plans that will be put in place which will identify the most appropriate times and mechanisms to facilitate a successful and lucrative investment exit • Put succession plans in place

51


REGIMENTS PRIVATE EQUITY

Corporate Governance Principles PE_05 Corporate Governance Principles1 1. Discipline – commitment by company’s senior management to adhere to behaviour that is universally recognised and accepted as correct and proper. 2. Transparency – ease with which outsider is able to make meaningful analysis of company’s actions, economic fundamentals and nonfinancial aspects pertinent to that business. 3. Independence - extent to which mechanisms in place to minimise or avoid potential conflicts of interest that may exist. 4. Accountability - individuals or groups in company, who make decisions on specific issues, need to be accountable for their decisions and actions. 5. Behaviour - pertains to behaviour that allows for corrective action and for penalising mismanagement. 6. Fairness - systems that exist must be balanced in taking into account all stakeholders that have an interest in company. 7. Social responsibility - awareness of and response to social issues, placing high priority on ethical standards.

Corporate Governance Structures 1. Board of directors – will include majority of independent persons with broad based business experience Executive Directors are responsible for operational management and strategic direction of The Fund will also be represented on Board. 2. Nominations – nominations committee will be established to ensure that Board of Directors are ‘fit and proper’ to assume their responsibilities. 3. Audit and remuneration - audit and remuneration committees will attend to issues arising regarding accounting reporting, valuations and issues of reward and recognition.

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4. Investment committee - IC (Investment Committee) will be established to include Manco and Limited Partner Investors with clear mandate to prepare investment framework against which potential investments are assessed. 5. Business sustainability principle - Regiments subscribes to creation of addressing current needs, without jeopardising resources for use by future generations as espoused by investor and will apply these principles to ensure investments are environmentally and socially relevant. 6. Risk management principle - trustees will be responsible for instituting appropriate risk policies and monitoring procedures. 7. BEE deals - IC’s specific criteria for BEE deals such as transparency, equity, entitlement to Board representation, integrity and compliance are key indicators to identify, approach, invest and monitor such investments.


REGIMENTS PRIVATE EQUITY

53


54


REGIMENTS FUND MANAGEMENT 55


REGIMENTS FUND MANAGEMENT

Regiments’ Fund Management business (‘Funds’) is South Africa’s leading asset-liability manager of debt redemption funds. We manage over R11.3 billion in assets against more than R13.9 billion in liabilities through our tailored liability-driven investment (LDI) offerings in debt redemption and the pension fund space. These products are targeted primarily at clients in the public sector such as large municipalities and state-owned companies (SOCs). Our revenue is derived from fund management, for which we are compensated through management fees as well as outperformance fees linked to our ability to deliver value to our clients. Most of our products is built on our liability-driven investment philosophy, which enables us to better manage our clients’ funds so they can meet their future obligations. Our main product solutions are:

56

• Debt redemption: A liability-plus solution that assists public sector clients in managing and repaying large debt arrangements on time. • Pension liability-plus: Defined benefit funds are particularly amenable to liability-driven investment solutions. Our liability-plus pension solution integrates all of the investment and modelling steps in a pension fund. • Post-retirement medical aid (PRMA): Postretirement health benefits are paid out to pension members after retirement. Our PRMA solution manages these liabilities. • ALBI-plus solution: This solution applies some of the techniques from liability-plus to asset-only management in order to produce superior riskadjusted returns.


REGIMENTS FUND MANAGEMENT

Investment Process FM_01

Resources

Overview

• Front Office • Risk Management Team • Research and Development Team

Our investment process focuses around two frameworks, one strategic and one tactical.

Overall fit into Regiments Value chain

Our strategic focus allows us to take longer term views within our risk budgeting framework, while our tactical process allows us to take individual trading positions within a formalised framework.

The risk process addresses the client’s risk appetite, and then generates a targeted level of outperformance, making it unique.

The strategic process occurs before (ex ante) the investment decisions.

The tactical investment process allows for agility within a formalised structure, which is unique and is a benefit to the client.

Later, after investments have realised performance (ex post), this performance is then attributed back to the risk budgets.

The investment process is tailored to the client, thus adding value to them.

At a high level, attribution works as follows:

Definitions

• Actual return on assets: The actual return is compared to the budgeted return. Adjustments can then be made for the next cycle. • Actual risk budget utilised: This measures the actual risk taken against each factor. This is continually measured and adjustments are made.

• ex ante : Based on forecasts, before investment decisions • ex post : Based on actual results

This process is applied to each risk factor the portfolio is exposed to. • The risk budgeting framework, at a high level, works as follows: • Risks are defined: As listed earlier, these risks include: interest rate parallel and curve, liquidity, ASM, credit and leverage. • Risk budgets are set: For each factor, risk capital is assigned. • Risk limits are determined: Based on the risk budgets, appropriate risk limits are determined. This scales the degree of risk taken against each factor. • Required return determined: Based on the risk budget and risk limits for each factor, a required return is determined.

Timelines The timelines for the process is dependent on the performance of the markets.

57


REGIMENTS FUND MANAGEMENT

Trade Research and Factor Analysis (ex ante)

Execution and Monitoring (on going)

Trade Review (ex post)

Market view Document the market view and determine which risk factors are mispriced.

Review Input regarding a particular trade is solicited from each committee member

Execute Execute the trade after consensus and document the levels

Look back Review the trade and analyse the reasons for success or failure

Trade details Determine the time-frame and expected profit and risk levels.

Approval Trade is approved, rejected or sent back for further analysis

Monitor On-going monitoring of the trade

Feed back Feed the results of the look back into the system for constant improvement

Exit strategy Determine the exit criteria including stop losses and profit take levels

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Peer Review


REGIMENTS FUND MANAGEMENT

Portfolio Construction FM_02

Resources

Overview

• Risk attribution model: Used for Risk budgeting and performance attribution. • Proprietary fixed income analytics: Used for pricing and risk measurement. • CPI forecast model: Used for positioning based upon our forecast of consumer price inflation. • ZAR currency model: Used for determining under/over valuation in the Rand.

When constructing a portfolio we begin with the particular benchmark. We first consider the minimum risk position – that would be the portfolio positioning that best approximates the specified benchmark. We then look at strategic deviations from that benchmark. Deviations from the benchmark constitute a source of risk to portfolio. As a result, these deviations require a commensurate level of return, and need to be managed within the framework and tracking errors as set out in the mandate. We consider each strategic deviation in terms of risk factors within our risk budgeting framework. Each position (or deviation from the benchmark) exposes the portfolio to one or more risk factors. The team would then need to consider these risk factor exposures in light of the expected outperformance of taking the position, together with the mandated risk limits and tracking errors.

Overall fit into Regiments Value chain Our strategic and tactical process both have a risk and return feed-back processes which force adherence to the philosophy. We also have both the well-tested infrastructure and the proven experience, which has resulted in consistent outperformance.

Definitions • Front Office : trading and execution • Back Office : confirmations and settlements • Middle office : risk and profit/loss

The above process is executed at the time of entering the strategic position. Once we have entered a particular position, our performance is then attributed back to the risk factor exposures. This is called performance attribution.

Timelines All positions are monitored on a daily basis by both the front office and middle office. We manage both a front office and middle office risk book which is run independently and reconciled each day. We then have a third source of valuation reconciliation with our outsourced back office. Front, middle and back office valuations are reconciled on a daily basis. We also attribute our performance on a daily basis to the monitored risk factors.

59


REGIMENTS FUND MANAGEMENT

Stage Stock Selection

Step

Description

1

Stock selection decisions

• As a fixed-income manager we do not begin with a large universe of possible instruments and then screen them to determine a buy and sell list. We feel this bottom-up approach may work for equities funds but is not directly applicable to fixed-income or bond mandates. • We take a more top down approach to selection, we believe that this more effective in fixed income management. This happens within our risk budgeting process. We consider the risk factors facing our portfolio, we then determine which risks factors have the best return expectations. That informs our strategic view.

2

Filtering the process

As discussed above we find that filtering, in general, is not the most applicable method in determining our investment universe. When dealing with credit bonds however, a certain amount of filtering can be done. This involves various steps discussed below: • Consider the full list of credit bonds listed on BESA (Bond Exchange of South Africa) • Remove all issuers which do not have the required investment rating. • Remove all bonds which are not sufficiently liquid for the size of investment we wish to make. • Remove all bonds that do not meet the tenor requirements on the investment we wish to make. • Sort the bonds by credit spread. • Determine if any of the remaining bonds are offered in the market at present. In practice one is left with a very small list of available credit. When performing this exercise one generally is left with only the large liquid issuers, making the process somewhat redundant. It does have value to perform this process from time to time in case certain issuers have recently become more liquid and others less.

Portfolio Construction

3

Risk Factors

The risk factors considered for a fixed-income or bond mandate are; • Time Value This provides a measure of profit or loss arising from passage of time. It measures the interest accrued in the asset portfolio above the JIBAR curve. • Yield Curve (Spread, Duration and Convexity) As interest rates change, and the yield curve changes in line with the underlying interest rates, the corresponding effect generates a profit or loss in the portfolio. We attribute yield curve movements to parallel and curve movements. • Asset Swap Margin In portfolios containing both bonds and swap-market instruments, or portfolios priced with reference to the swap market, we measure and attribute the value attributable to the spread between bonds and the swap market. An appropriate way to measure the spread is to calculate the spread on an Asset Swap between a given bond and the swap market. • Credit Spread This measures the profit or loss generated by change of credit spreads, the spreads between credit yields and the underlying benchmark government bond. • Liquidity The risk that the portfolio is not able to liquidate assets efficiently in order to meet obligations. • Execution Execution measures the profit or loss generated by the entry price of a trade to the midmarket levels on the day of the trade, thus measuring the value-add due to execution.

4

Security Weighting

When weighting an individual security or issuer we begin by considering the mandate limits. These may be imposed directly in the mandate or by legislation. These outline the maximum position we would be able to take given the current positioning of the portfolio. Our own risk budgeting framework also imposes limits on the size of an individual security or position. These limits are defined by the individual risk factors that a particular position may expose to the portfolio to. These two limit sets thus define the maximum size (and by extension weighting) of a particular security. Once we have the maximum size, the process then becomes determining the optimal position size for that security or basket. In determining the optimal position size we again follow our risk budgeting process as outlined. We consider the impact to our tracking error and the expected return by exposing the portfolio to one or more risk factors. We consider the level of risk against each factor and determine the position size accordingly in order yield the best riskadjusted return within our mandated and risk budgeted limits.

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REGIMENTS FUND MANAGEMENT

5

Sector Allocation

In a fixed-income mandate our benchmark is usually determined either by the bond curve or the swap curve. This implies that a large percentage of our assets are made up of government bonds or bank swaps. The time when sector allocations become applicable is when dealing with credit bonds. Where we do have corporate bonds, we ensure that they are from a spread of industries and sectors. We use our risk budgeting framework to ensure that we do not have an over concentration of any single issuer or sector

Use of Derivatives

6

Executing and monitoring derivatives

For OTC trades (derivatives) the process is as follows: • The front office initiates the trade with the counterparty • The back office is responsible for the administration underlying the trade such as sending and receiving a contract to the counterparty. • The back office also captures and administers the trade. • Our middle office receives the trade information from the front office and reconciles this with the information and contracts received from the back office. In addition to this our front office runs an independent risk system to our middle office. On a daily basis the two systems are reconciled and any differences are dealt with.

7

Monitor

Derivatives are monitored on a daily basis by both the front office and middle office. We monitor interest rate derivatives (swaps and FRAs) in terms of their interest rate risk along with their counterparty credit exposure. We manage both a front office and middle office risk book which is run independently by both teams and reconciled each day. We then have a third source of valuation reconciliation with our outsourced back office. Front, middle and back office valuations are reconciled on a daily basis. We also attribute our performance on a daily basis to the monitored risk factors. The Execution, confirmation and reconciliation process is illustrated below:

Brokers (listed trades) Front Office (trading and execution ) Counterparties (OTC trades)

Middle Office (risk and profit/loss)

Back Office (confirmations and settlements)

JSE

61


62


REGIMENTS SECURITIES 63


REGIMENTS SECURITIES

Regiments Securities is an independent institutional brokerage, providing fixed income and money market brokerage services to Regiments Fund Managers and the Debt Capital Markets (DCM) division. Our financial products include bonds, forward rate agreements (FRAs), repurchase agreements (repos) and swaps. Our fee structure provides incentive to close client orders at the best possible market price, which reassures our clients that our interests remain aligned with theirs, providing the base for a longterm, mutually beneficial relationship. We are registered with the JSE, a key external stakeholder for the business, with whom our compliance function works together to ensure a transparent and effectively regulated trading environment.

64

Operations Manual SEC_01 Head of Department: • • • •

Oversight of all operations. Oversight of compliance. Cost control. Reporting to EXCO.

Traders: • • • • • •

Morning report. Client trading. Managing Repo’s. Market updates. Auction results. FRA and SWAP settlements

Settlement Officers, supported by Traders • Brokers notes • Settlement reports • Bank statements


REGIMENTS SECURITIES

• • • • • • • • • • • •

BDA P&L spreadsheet Deal booking Trading spreadsheets Settlement issues Daily capital adequacy and compliance report Deal Confirmations Marked to Market reports Zero curve reports Filing Periodic review of client information (Annually). Inform Stock Broker of Record/Compliance Officer of changes to client accounts and of new accounts (Stock Broker of Record/Compliance Officer to sign PAHDIM).

• Compliance training. • FICA training. • On boarding of new counterparties (KYC and Filing). • Capital adequacy. • Liaison with the JSE. • Reporting to the FIC. • Compliance with opening of client accounts. • Periodically reviewing record keeping register. • Maintaining JSE folder on server, keeping it up to date. • Annual FICA audit.

Compliance Officer, supported by Money Laundering Officer and Stockbroker of Record. • • • • • • •

Ensuring JSE compliance. Ensuring FSB FICA compliance. Filing of FICA documentation. Filing of resolutions. Filing of attendance registers (training). Filing – general. Compliance meetings.

Stage Document Checklist and approval of documents

Step

Description

Owner

Timeline

1

Introduction of new client

• Introduction of new client to Regiments Securities by registered dealers

Registered Dealers

Ad hoc

2

Details of new compliance officer

• Registered dealer notifies Regiments Securities Legal and Compliance in writing of the details of the new clients Compliance officer.

Registered Dealer

Ad hoc

3

FICA Checklist

• Regiments Securities Legal and Compliance writes to the new client requesting documentation as per FICA checklist for Regiments Securities.

Securities Legal and Compliance

Ad hoc

4

Certified Copies of requested documentation

• New clients Compliance Officer responds in writing with what they require from Regiments Securities as well as certified copies of requested documentation.

Compliance Officer

Ad hoc

5

Ensuring correct documentation is received

• Regiments Securities dealer who introduces the client is responsible for liaising with Regiments Legal and Compliance to ensure that the new client receives certified documents from Regiments Securities.

Securities dealer

Ad hoc

6

Written approval of documents

• Upon receipt of documents, Regiments Securities will receive written notification from Regiments Legal and compliance that documents have been received.

Securities Legal and Compliance

Ad hoc

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REGIMENTS SECURITIES

Confirming P&L in BDA SEC_03 STEP 1 OPEN BDA THIS ICON IS ON THE TASKBAR

STEP 2 ENTER LOGIN DETAILS, USER: FFSJB5 PASSWORD: SECURITY, THEN PRESS ENTER

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REGIMENTS SECURITIES

STEP 3 UNDER COMMAND, ENTER 1, THEN PRESS ENTER

STEP 4 UNDER “PATH” ENTER 11, AND UNDER “COMMAND” ENTER AFINH, THEN PRESS ENTER

67


REGIMENTS SECURITIES

STEP 5 PRESS ENTER ON “FFS”

STEP 6 YOU CAN NOW ENTER THE STOCK ACCOUNT NUMBER (42069 OR 42101) PRESS F5 TO SEE IF ACCOUNT IS SQUARE.

68


REGIMENTS SECURITIES

AFTER PRESSING F5 YOU SHOULD SEE THE BELOW SCREEN (THIS SCREEN IS CONFIRMATION THAT THE ACCOUNT IS SQUARE)

69


70


REGIMENTS HUMAN RESOURCES 71


REGIMENTS HUMAN RESOURCES

Regiments prides itself in its diverse, driven culture. We value superior intellectual capital and recognise and reward innovation and high performance. In return, we prioritise our employees’ satisfaction and well-being and support their ongoing learning and professional development. In this way, we aim to promote a stable, effective and entrepreneurial workforce. We employ a combination of permanent employees and contract workers, which allows us to meet variable client demand and offer specialised professional skills, while carefully managing our staff costs. At year end, Regiments employed 76% permanent employees and 24% contractors. With the reorganisation of the strategy advisory business, we will move to a lower proportion of contractors, which – while still enabling us to remain costefficient – will enhance our staff cohesiveness and further entrench the Regiments culture.

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REGIMENTS HUMAN RESOURCES

Recruitment HR_01

Resources

Overview

• The BU’s notify HR when there is a need for a potential employee • HR are required to search for the candidates • The BU has the final say on who to hire • Recruitment authorization form • Interview guide to score candidates

HR deals with the recruitment of all candidates, for all the BUs across Regiments. It is the duty of HR to make sure that all the stakeholders are informed at every stage of the process.

Overall fit into Regiments Value chain

The Recruitment process covers the following activities:

HR helps identify potential employees who will uphold the Regiments values, culture and be an asset to Regiments in the future.

Identifying candidates Arranging the interviews Setting up the employment contract

Definitions

The Recruitment process is a rigorous process, which allows the best possible candidates to be selected in terms of qualifications, experience, expertise and BEE criteria.

• BU : Business Unit

Timelines The process takes three weeks from the point of the first interview to making the offer to the candidate. There are no set timelines for identifying experienced candidates and it is dependent on the Business need. Graduates will be recruited on a yearly basis for the Graduate Programme. Continue searching for candidates via the recruitment methods

Hiring Hiring manager manager gets gets personnel personnel request request approved approved

Recruitment Recruitment

Job description received from the Hiring manager

Recruitment Recruitment sources sources

Receive and send CV’s to the Hiring manager

Possible Possible candidates candidates found? found?

No

Yes

Notify the candidate and provide feedback

Notify the candidate and provide feedback

No Behavioural Interview

Interview Interview Process Process

Requirements Requirements met? met?

Notify the candidate and provide feedback No

No Yes

Case study Interview

Requirements Requirements met? met?

Yes

Panel Interview

Requirements Requirements met? met? Yes

Background Background checks checks clear clear No

Notify the candidate

Yes

Yes Offer Offer

Accepted Accepted offer offer

On On Boarding Boarding

No Give the offer to the next suitable candidate

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REGIMENTS HUMAN RESOURCES

Stage Determining the exact need

Recruitment Sources

Step

Description

Owner

1

Identify the need for a candidate

• The BU should notify HR when there is a need for an employee

BU

2

Consult the recruitment policy and procedure

• Have a Job Template • Requisition form which will include all relevant information, to aid in the recruitment process. • Hiring manager submits this to HR • This will ‘start’ the process with HR and Hiring Manager • Timelines are set on engagement (if the role/ appointment has been authorized by All relevant stakeholders)

BU

3

Obtain approval to recruit

• Make sure the job description is updated and submit the recruitment authorisation form

HR

4

Decide on recruitment Sources and methods

There are a number of recruitment sources. These include: • Referral from internal employees • Prospective candidates ‘cold-calling’ reception to submit CVs • Unsolicited CVs • Recruitment agencies

Timeline Ad hoc

HR then screens the CV’s sent through and makes a shortlist based on the BU’s need. 1. Limited number of shotgun interviews, with unsolicited ‘applicants’ • Building a ‘Strong” impressive Pipeline (create a database) • Where we keep details of future recruits into regiments. • These can be Used, as and when a role because available (before advertising, approaching agencies) • Future candidate relationship management (occasionally check on them, invite them to Regiments events etc.) 2. BU’s need to Create/ keep updated Job Descriptions for all their current roles. The interview process

5

Keep all the stakeholders involved throughout the process

• Once all the CV’s have been screened all the candidates need to be notified whether successful or not. • The candidates who do not make it past screening will be notified via email and the other will be notified of next steps by means of a phone call from the head of HR. • After every stage of the process, it is imperative that the candidates are informed of their status whether successful or not.

HR

Throughout the interview process

6

Discuss the interview process with the HR manager

• Depending on the position being applied for, the HR manager will decide on how many interviews need to be done and what types of interviews need to be done.

BU HR

2 days

BU

10 days

Invite the candidate for interviews

The offer

7

8

74

• The first interview is a behavioral interview. The purpose is for Regiments to get to know the candidate and vice versa. The interview test certain competencies in terms of teamwork, values and dealing with situations under pressure. • The second and third interviews are both case study interviews. • The final interview is a panel interview which is specific to the BU.

Reference checks

• Reference checks are done before the candidate is made the offer.

HR

2 days

Contract

• HR draws up the contract and makes the offer to the candidate. The candidate has a week to consider the offer.

HR

1 Week

If the offer is not accepted

• If the offer is not taken then the next best candidate is given the offer. • The final round candidates who are not successful will only be informed once all the offers have been accepted.

HR

2 Weeks


REGIMENTS HUMAN RESOURCES

On Boarding HR_02

Resources

Overview

• The employment contract • Regiment’s Broker • Company Assets (Stationary

HR deals with the on boarding of all new employees at Regiments. It is the duty of HR to make sure that all new employees feel comfortable in the new environment so that they can adapt to the Regiments culture.

Laptop, Phone , 3G card (on request by the BU), Remote control for the boom at the parking basement , Access card for Regiments Offices)

The On boarding process assists the new employee with:

Overall fit into Regiments Value chain

• The employee contract • Medical aid • Company Assets which the employee will use at Regiments • The Induction Process

The on boarding process allows new employees to settle into the Regiments environment and adapt to the Regiments culture. This will assist them in understanding the Regiments values and performing at their best for the benefit of Regiments.

Timelines

Definitions

The process takes places over the first week of employment.

Yes

Employee Contract

• BU : Business Unit

Provide HR with confirmation Provident Fund Registration with the Regiments Broker

Medical Aid?

No

Company Assets

Register for Medical Aid with the Regiments Broker

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REGIMENTS HUMAN RESOURCES

Stage Administrative On Boarding

Step

Description

Owner

Timeline

1

The employment Contract

• Upon receipt of the Employment Agreement / Contract by Human Resources, the on-boarding process must start. The Employment Contract must be accompanied by the following documents: 1. Signed Employment contract 2. Certified ID Copy 3. Certified Copies of Qualifications 4. Employee Personal Details form to be completed

HR

1 Week

2

Medical Aid

• The employee needs to join Discovery through Regiments, however if the employee is a dependent on a spouse’s medical aid he/she will provide HR with a Confirmation of Membership.

HR Broker

48 Hours

When joining Discovery, the employee will have to meet with Duncan from Serala (Regiments Broker), concerning the medical aid options and the benefits. The forms should be completed and supporting documents should be attached to the forms when the employee is joining Discovery: 1. Medical Aid Application forms 2. ID Copy 3. Confirmation of Membership with an end date from the previous medical aid scheme 4. Proof of Banking Details Contact Details: • Duncan Barker 011 447 9927/083 414 9939 duncan@serala.co.za • Thabile Komane 011 447 9927 thabile@serala.co.za

Induction Process

76

3

Provident Fund

• The employee needs to join a Provident fund; HR will arrange a meeting with Gary from Sela group (Regiments Broker), the employee will choose whatever percentage he/she is comfortable with. Employees are allowed to change the contribution once a year. HR will send out a communication when it is time. Forms to be completed: 1. Provident fund application forms (Completed and signed by the employee) 2. ID Copy Contact details of Regiments service providers are: • Gary Stein 011 483 4800/083 444 7000 garys@selabrokers.com • Cammy Pillay 011 483 4800 cammyp@selabrokers.com

HR Broker

48 Hours

4

Company Assets

• Company Assets to be given to the employee provided by HR (HR to liaise with IT) and Facilities (Gemina Mokori & Walter Mnisi). The following assets need to be ready on the employee’s 1st day at Regiments; 1. Hire Pack (Stationary) 2. Laptop 3. Phone 4. 3G card (on request by the BU) 5. Remote control for the boom at the parking basement 6. Access card for Regiments Offices.

HR

24 Hours

5

Regiments Presentation

• An overview of Regiments, the Regiments values and culture

HR

30 Minutes

6

BU Presentation

• Each BU gives a presentation about themselves. Giving a more detailed view of what they do. Job description from a BU representative.

BU

15 Minutes

7

Graduate Programme overview

• An overview of the Graduate Programme. The presentation highlights technical requirements, business etiquette, timelines and outlines The Regiment’s Way document. Graduates are also assigned a mentor. This part of the induction process is only applicable to candidates on the Graduate Programme.

HR

2 Hours


REGIMENTS HUMAN RESOURCES

Learning and Development HR_03

Learning and Development Service Providers

Overview

We ensure that all our service providers whether for formal or informal training are accredited. This helps us to ensure that the learning material quality as well as style of teaching meets the minimum set standards and best practices of teaching. We pride ourselves in partnering with renowned learning centres like GIBS for both formal and informal learning.

The Learning and Development Process works closely with the Regiments Way Document. The process does not have any specific process flows, however, this document provides a description of the procedures. Through Learning and Development (L&D) we strive to ensure that our people are continuously developing and thereby keeping aligned to industry and business trends. This does not only contribute towards delivering quality solutions and services to our clients but also provides our people with a learning platform to better themselves and enhance their personal brands through learning. Continuously developing our employees accelerates the business and HR strategy of creating a high performance organisation. As a result we want to provide a consistent Learning and Development (L&D) experience and set out standard procedures for all our employees to follow, thereby ensuring professional engagements, clear expectations and creating a fair and consistent process to be used by all. We believe that we will only be successful by surrounding ourselves with great people and it is expected that our people will partner with us in owning and driving their professional development. As part of the Regiments Way, we will have monthly Learning & Development Fridays and encourage you to maximise on this opportunity. Attendance for all programs on offer depends on the employee’s application, except for the Regiments 101 and the biannual induction which is compulsory for all new joiners. It is expected that our employees will spend a minimum of 7 – 10 days per annum on formal training. This program has been developed with the aim to act in collaboration and shared purpose for a deliberate, engaging, high quality and sustainable learning and development experience. The following Regiments Way Learning and Development standards have been developed with focus on the various L&D touch points.

Programs All our learning programs are aligned to the business strategy which is informed by individual needs and market trends. The learning and development calendar collates different learning initiatives such as; Regiments Capital basic competencies, behavioural training, culture training, G2G alumni and different developmental training programs for Managers as well as industry forums and conferences to name but just a few. The calendar will be published every year 21 days after the submissions of PDPs, this will enable employees to align their learning interventions to their PDPs and also plan in advance. The calendar will be updated once every quarter to accommodate changes and developments affecting both the business and individuals. Regular communication will be adopted to keep the programs alive and the organisation informed.

Coaching and Mentoring It is expected that all senior employees will either coach or mentor other employees. Senior managers are to be accredited as a mentor or coach by attending one of the relevant coaching and/or mentoring programs. Coaching opportunities to our staff will be made available to senior managers through the coaching panel, to address specific developmental areas and /or career guidance. To ensure access to the coaching panel is used at the best interest of the program, Line Managers have to submit a coaching need to HR to ensure the best suited candidate is nominated.

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REGIMENTS HUMAN RESOURCES

Training Methods With the aim to establish diverse thinking and to continuously groom this, we pursue differentiated learning in our organisation and therefore adopt different learning methods ranging from classroom setup, e-learning, on the job learning, mentoring & coaching, group business case problem solving and planned reading. This not only captures our diverse audience but also helps to develop our people holistically.

Knowledge Management Our knowledge management aims at capitalising on knowledge sharing forums such as Imbizo, the Regiments Academy and inviting industry experts to present on topical themes at least 3 times a year.

Applicability This guideline is applicable to all Regiments Capital permanent and fixed term employees. The set conditions and applicability shall be assessed on a case by case basis and can be amended as per the employer’s discretion. • Exclusion is drawn on employees on a fixed term contract for a period of a year or less when it comes to funding of formal education. • Details on Funding for Learning and Development can be found in The Regiments Way Document.

An online library has been established to foster and cultivate a culture of reading. Everyone has access to interesting articles and/or books which will be shared every 2nd Friday and it is expected that people will share insights on this platform.

Payroll HR_04

The G2G alumni will present at the academy once a quarter on lessons learnt from their journal workshop.

HR deals with the administration in terms of payroll for all the employees across all BUs at Regiments.

Communication Since learning and development is a partnership, we expect co-ownership and co-communication. The learning and development calendar serves as the main communication tool as it outlines courses scheduled for the whole calendar year. Every month a Learning and Development News Flash is communicated to ensure upcoming learning programs, industry forums and conferences are kept top of mind.

Budget As a minimum Regiments budgets 1% of annual payroll for all L&D initiatives. In order to ensure clear responsibility and accountability for internal programs, should the minimum number of attendants is not met then the program will either be cancelled or postponed.

78

However if the number is not met due to late cancellation or no shows, then the cost will be billed to the respective department.

Overview

The Payroll process covers the following activities: • Registering and updating employees information on the Sage system • Payroll for employees • Payment for external parties (Done by Finance)

Timelines • Regiments Employees are paid on the 25th of each month • A new employee will be registered by the 25th of the month onto the Sage system • Any changes to a registered account can be completed within a day • Employees intending to leave Regiments will be removed from the sage system within a day • External parties or service providers payments are done ad hoc

Resources • Sage HR and Payroll self-service system • The Finance Business Unit


REGIMENTS HUMAN RESOURCES

Overall fit into Regiments Value chain The payroll system assures that employee salaries and payments to external parties are submitted on time and that the correct employee details are used and updated for all BU’s.

Definitions • BU : Business Unit

Stage Monthly Payroll Process

Step

Description

Owner

Timeline

1

Preparation and sorting of the data

• Collect and sort the input documents • Verify the payroll system dates

HR

Monthly

2

Modify existing information

• Modify the employee information on the system with regards to medical aid changes, provident fund changes, salary changes and internal transfers

HR

Monthly

3

New employee information

• Load new employee’s details on the payroll system

HR

Monthly

4

Input any changes

• Check that all changes have been process on the payroll system

HR

Monthly

5

Employee resignations

• Process any employee resignations and update it on the system

HR

Monthly

6

Print draft slips

• Print draft pay slips and check that all the information is updated

HR

Monthly

7

Payroll reports for all companies

• Bank Transfer Report • Monthly Analysis Report • Transaction Listing Report

HR

Monthly

8

Pay employees

• Employees are paid on the 25th of each month

Finance

9

Pay external parties

• External parties are paid for their goods and services when necessary (as agreed upon in the contract)

Finance

Ad hoc

10

Back-up the information

• All information of payments made should be recorded and final payments should be updated

HR

Monthly

11

Print period-end reports

• Reports are printed at the end of each month once final payments have been agreed upon

HR

Monthly

12

Start the new processing period

• The new processing period starts once all payments have been made for the previous month

HR

Monthly

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REGIMENTS HUMAN RESOURCES

Leave Process HR_05

Resources

Overview

• Sage HR and Payroll self-service system • The employment contract • Medical Certificate

HR deals with the administration in terms of leave for all the employees across all BUs at Regiments.

Overall fit into Regiments Value chain

The Leave process covers the following activities:

The leave process ensures that all leave is correctly noted and record is kept of it. The annual and family responsibility leave is recorded 2 weeks before so that the BU’s can plan the teams responsibilities and work allocation.

• Procedure with regards to annual leave, sick leave and family responsibility leave • Registering and updating employees leave on the Sage system • Leave Approval

This avoids projects getting delayed so that deliverables can be met. The leave process ensures that employees’ do not take more leave than is due to the.

Timelines • Annual Leave and Family Responsibility leave should be applied for two weeks in advance • Employees should notify their line manager on the day if they will be absent (sick leave) • Sick leave should be entered into the Sage system once the employee returns to work

Sick Leave

Definitions • BU : Business Unit

Proof and confirmation when you return to work

Notify your line manager on the day

Input on Sage

No

Yes Type of Leave

Annual Leave

Apply

Approved?

Record on Sage

No

Family Responsibility

80

Apply

Approved?

Yes

Record on Sage

Check that leave is recorded correctly on Sage


REGIMENTS HUMAN RESOURCES

Stage Sick Leave

Annual Leave

Family Responsibility

Step

Description

Owner

Timeline

1

Notification

• Employees should notify their line manager the day they will be absent with valid reason of being ill

Employee

On the day

2

Confirm

• When the employee returns to work, the employee should produce a doctor’s letter (sick for more than a day) or explanation if they are only sick for one day (line manager’s discretion)

Line Manager

Return to work

3

Input

• The sick leave should be entered into the sage system, the day the employee returns to work

Employee

Return to work

4

Updated

• The sage system should be checked and updated by HR so that the leave is correctly recorded.

HR

Within 24 hours of the employee returning

5

Check

• At the end of each month, employees should check that their leave is recorded correctly on their pay slips. This should be adjusted if necessary

Employee

Monthly

1

Apply

• Employees should apply for leave on the Sage System, two weeks before they require the leave

Employee

2 weeks before intended leave date

2

Approval

• The line manager then receives a notification and approves or declines the leave within reason

Line Manager

Within 48 hours of application

3

Record

• HR ensures that the leave is correctly recorded on the Sage System and records are kept.

HR

Within 24 hours of approval

4

Check

• At the end of each month, employees should check that their leave is recorded correctly on their pay slips. This should be adjusted if necessary

Employee

Monthly

1

Apply

• The line manager then receives a notification and approves or declines the leave within reason

Employee

2 weeks before intended leave date

2

Approval

• HR ensures that the leave is correctly recorded on the Sage System and records are kept.

Line Manager

Within 48 hours of application

3

Record

• At the end of each month, employees should check that their leave is recorded correctly on their pay slips. This should be adjusted if necessary

HR

Within 24 hours of approval

4

Check

• At the end of each month, employees should check that their leave is recorded correctly on their pay slips. This should be adjusted if necessary

Employee

Monthly

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REGIMENTS HUMAN RESOURCES

Performance Management HR_06

Timelines

Overview

The performance management differs depending on the size of the project. Some of the processes within performance management have set timelines.

Performance management is an ongoing process in which a manager and employee agree on: • • • •

Resources

what must be done, plan how to do it share feedback, and assess performance.

• Payments are made by the finance administrator and released by the finance manager • Performance Template – found in the appendix

It is an interactive process of goal-setting, communication, observation and evaluation to support, retain and develop exceptional employees for organizational success. This includes: • Setting of clear expectations (goals) • Tracking progress towards achievement • Regular two-way communication about performance throughout the cycle • Setting of milestones and making adjustments (when necessary) • Documenting discussions Promoting ownership

Company sets objectives

Business unit sets objectives

Individual sets expectations and objectives

Overall fit into Regiments Value chain The performance management covers all projects within Real Estate at Regiments to ensure efficiency of the project.

Definitions • Business Unit

Bi-weekly performance and discussion

Quarter 1 performance and checks

Mid-year review

Quarter 3 performance and checks

Final Review

Effect Effect increases/ increases/ bonuses bonuses

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REGIMENTS HUMAN RESOURCES

Stage

Step Description

Owner

Timeline

Company Strategic Planning Process

1

• Leadership team breakaway to set company strategic objectives for the year. • Takes place during January/February each year.

Leadership Team

2 Months

Business Unit Sets Objectives

2

• Business Units Heads cascade the company objectives into divisional objectives.

BU

Individual Objectives Setting

3

• Each employee sets own commitments for the year based on divisional objectives. • Employee prepares own expectations planner for discussion with the manager. • Employee and manager discuss and agree on the expectations from both parties and agree on the commitments for the year. • Both parties sign off the commitments for the year. • Performance Objectives Template used.

Employee

Bi- Weekly Performance Discussions

4

• Regular status checks against plan for the preceding 1 week. • Set new tasks for the upcoming week. • Opportunity for coaching. Address concerns/barriers to success and any other issues. • Records of these discussions are kept. • Weekly Status Report Template used.

Manager

Twice a week

1st Quarter Performance Checks

5

• Both parties rate performance for the quarter. • Opportunity to coach for performance improvement. • Opportunity to recognise, re-enforce and reward excellent performance. • Records of these checks are kept • Quarterly Performance Check Template used

Manager Employee

3 Months

Midyear Reviews

6

• Both parties rate performance for the first six months of the year. • Opportunity to formalise performance improvement plan (PIP), if required. • Opportunity to recognise, re-enforce and reward excellent performance. • Records of these reviews are kept • Performance Review Template used

Manager Employee

6 Months

3rd Quarter Performance Checks

7

• Both parties rate performance for the 3rd Quarter. • Opportunity to start poor work performance process, if required. • Opportunity to recognise, re-enforce and reward excellent performance. • Records of these checks are kept • Quarterly Performance Check Template used

Manager Employee

9 Months

Final Review

8

• Both parties rate performance for the year. • Where there are differences in the self and manager rating, both parties meet to close the gap. Business Unit Head discusses divisional ratings with partners to address any anomalies (e.g. spread of ratings in the division looking at justification for very high scores and very low scores). • Ratings are adjusted where appropriate. All employees’ performance ratings are now considered final. • Partners and Business Unit Heads finalise increase and bonus allocations according to a set criteria in the Short Term Incentives Scheme Policy. • Manager meets with employee to review the employees’ performance and inform the employee of their overall performance rating, annual increase and bonus award. Employee and manager also use this meeting as an opportunity to highlight development ambitions for the coming year. • Partners plot the succession matrix and recommend development. • Performance Review Template

Manager Employee

Yearly

Effect Increases and Bonuses

9

• HR implements the increases and bonuses as agreed in step 8. • HR issues letters advising employees of their increase and bonus

HR

Yearly

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REGIMENTS HUMAN RESOURCES

Self Development Planning Template Developmental Opportunity

How You Would Describe the Gap

Give an Example

Obstacles to Achieving My Development Goals

84

Next Steps

How Others Will Support Me

What I’ll Do to Overcome the Obstacles


REGIMENTS HUMAN RESOURCES

Bi-Weekly Status Report Template Employee’s Name Bi-Weekly Status Report For Period Ending dd/mm/YYYY Accomplished this Period 1. (Task) 2. (Task) 3. (Task)

Planned for next Period 1. (Task) 2. (Task) 3. (Task)

Issues / Risks 1. One 2. Two 3. Three

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REGIMENTS HUMAN RESOURCES

Performance Objectives Template PERFORMANCE OBJECTIVES FOR PERIOD: 2011/12 Financial Year Employee Name: Division: Perspective & Weighting

Manager Name: Date:

Objective

Weighting Measure

Timeline

Manager

Signature:

Date:

Employee

Signature:

Date:

Delivering Results (Financial)

Business Development

Client/Customer Focus

Internal Processes

People, Learning & Growth Signed by:

Performance Objectives Template PERFORMANCE OBJECTIVES FOR PERIOD: 2011/12 Financial Year Employee Name: Division: Perspective & Weighting

Manager Name: Date:

Objective

Weighting Measure

Timeline

Manager

Signature:

Date:

Employee

Signature:

Date:

Delivering Results (Financial)

Business Development

Client/Customer Focus

Internal Processes

People, Learning & Growth Signed by:

86


REGIMENTS HUMAN RESOURCES

Quarterly performance check template QUARTERLY PERFORMANCE CHECK TEMPLATE – EMPOYEE Employee name: Division: Accomplishments for next period ending

Project for next period ending

Project status Project 1 Milestones

Plan

Actual

Status

Notes

Project 2

Project 3

87


88


REGIMENTS FACILITIES & IT 89


REGIMENTS FACILITIES & IT

Regiments prides itself in providing a comfortable work environment for their employees to ensure that the employees perform at their best. In order for Regiments to do this, all the facilities have to be up to date, technologically advanced and fully functioning. The facilities team is responsible for ensuring that all facilities are fully functioning so that employees can produce the desired outputs. The Facilities Team is responsible for the replacement, repair and maintenance for all facilities. The IT responsibilities are outsourced to Seth Consulting. Seth Consulting works together with facilities to ensure that any IT faults are resolved, which in turn ensures employee satisfaction.

90

Seth Consulting deals with the installing of new software, fixing any IT related faults and Internet connections.


REGIMENTS FACILITIES & IT

Facilities Management FAC_01

Overall fit into Regiments Value chain

Overview

Well maintained, fully functioning facilities are required for all the Regiments BU’s to Function efficiently.

Facilities supplies, repairs and maintains all facilities at 35 Ferguson for all the BUs across Regiments.

Timelines

Definitions • BU : Business Unit

The time required to repair or replace an item is dependent on the extent of the damage, other repairs already logged on the system and availability from the supplier.

Resources • The employees are required to log their fault when necessary • Fault logging form • Data collection spreadsheet of the faults reported

91


REGIMENTS FACILITIES & IT

Stage Log the fault

Repair

Replace

Maintenance

92

Step

Description

Owner

Timeline

1

BU to Log the fault

• The Regiments employees need to log the fault by emailing facilities about the problem. Facilities then records the fault and arranges the issues according to priority. Keeping track of the fault allows facilities to identify faults that keep reoccurring.

BU/Staff

48 hours

2

Type of fault

• The fault is then categorized as repair, replacement or maintenance issue.

Facilities

48 hours

3

Feedback needs to be provided to the BU

• Facilities needs to provide feedback to the BU of the type of fault and the time needed to be fixed or replaced.

Facilities

48 hours

4

Warranty

• First check for the warranty of the product • If the warranty has not expired then send the item to the supplier to get repaired

Facilities

24 hours

5

3rd Party

• If the warranty has expired, identify a third party to repair the item.

Facilities

24 hours

6

Quote

• Get quotes from at least three maintenance companies to repair the item.

Facilities

1 week

7

Repair

• Select a maintenance company based on price to quality ratio and repair the item.

Facilities Head

1 week

8

Payments

• Speak to finance to approve invoices once the employee and facilities are satisfied with the item • Sign and close off

Finance

1 week

9

BEE Supplier

• Identify BEE Suppliers for items that need to be replaced • Compare at least three suppliers

Facilities

1 week

10

Approval

• Once the suppliers have been compared and quotes have been received, get approval from Head of Department.

Facilities Head

1 week

11

Purchase

• Purchase the products once approved and submit the invoices to finance.

Facilities Finance

2 weeks

12

Store Documents

• Store all necessary warranty documents and note down what was bought and who the supplier was.

Facilities

24 hours

13

Identify Items

• Identify the items that need to be maintained at certain intervals within the year.

Facilities

Ad hoc

14

Timeline

• Create a timeline and set realistic dates for completion

Facilities

Ad hoc

15

Set Dates

• Notify the supplier of these dates and make appointments for those dates

Facilities Supplier

Ad hoc


REGIMENTS FACILITIES & IT

IT Management FAC_02

Resources

Overview

• The employees are required to log their fault when necessary • Seth Consulting • IT Security Policy • Printer Codes

IT is responsible for setting up employee laptops/ desktops, solving any issues with the laptops/ desktops and installing software required by the Regiments staff.

Timelines The time required to fix a general software problem is 24 hours. The time required to repair or replace a hardware issue is dependent on the extent of the damage, other repairs already logged on the system and availability from the supplier.

Software

Fault Logging

Type of Fault

Overall fit into Regiments Value chain Well maintained, up to date, fully functioning technology is required for all the Regiments BU’s to function at an optimum level.

Definitions • BU : Business Unit

Feedback on the fault

Sign-off

Other (Batteries, cables etc)

Approval to purchase

Sign-off

Feedback on the fault

Sign-off

Request for a new laptop

Approval

Hardware

No Laptop older than 3 years Yes

Purchasing of new products

Allocating items

Security Policy

Setting up the laptop

Licensing Updates

93


REGIMENTS FACILITIES & IT

Stage Fault Logging

Purchasing of new products

94

Step

Description

Owner

Timeline

1

BU to Log the fault

• The Regiments employees need to log the fault by emailing Seth Consulting and Facilities about the problem. Facilities then records the fault and arranges the issues according to priority. Keeping track of the fault allows facilities to identify faults that keep reoccurring. • The idea is to formalise the process and avoid staff going directly to Seth Consulting because faults are not recorded then.

BU/Staff

48 hours

2

Type of fault

• The fault is then categorised as a software or hardware fault

Seth Consulting

24 hours

3

Software

• Seth Consulting then emails the BU with feedback on the fault • The fault is then signed-off by an agreement between the BU and Seth Consulting if the problem is solved

Seth Consulting

24 hours

4

Hardware

• If the laptop is not older than 3 years then Seth Consulting needs to find possible solutions to the problem • The fault is signed-off and monitored once the BU is satisfied • If the laptop is older than 3 years and has constantly been giving the same fault, a request is sent to facilities for a new laptop. • Head of Department is then required to approve the request • Other, less expensive types of hardware such as batteries, cables etc. are replaced when necessary

Seth Consulting

48 hours

Facilities

5

New Products

• New products are purchased for a new employee and when a product needs to be replaced because it does not properly function • A week’s notice needs to be given to facilities to purchase the product

Facilities

1 week

6

Allocating items

• The items purchased need to be allocated to the employee on the Sage system • The employee then signs for the products • This allows for a record of where the items are and in the event of a resignation, there is a record of what needs to be returned

Facilities

48 hours

7

IT Security Policy

• Seth Consulting will set up the employees’ laptop. This will include setting up the email, printer codes and all software required • The printer codes minimise paper wastage

Seth Consulting

24 hours

8

Setting up the laptop

• Seth Consulting will set up the employees’ laptop. This will include setting up the email, printer codes and all software required • The printer codes minimise paper wastage

Seth Consulting

24 hours

9

Licensing Updates

• Seth consulting needs to be aware of any licensing updates and they need to notify the BU’s to schedule the updates

Seth Consulting

Ad hoc


REGIMENTS FACILITIES & IT

95


96


REGIMENTS FINANCE 97


REGIMENTS FINANCE

Finance is an Internal department within Regiments that deals with the financial services for all Business Units across the organisation. Finance ensures that all Business units comply externally with regulations from financial institutions and internally in terms of contracts with external parties. Finance is responsible for all the day to day transactional accounting for the business. This includes the tracking of all transactions and the management of any government reporting. Finance is also responsible for management of the organization’s cash flow and ensuring there are enough funds available to meet the day to day payments. This area also encompasses the credit and collections policies for the company’s customers, to ensure the organization is paid on time, and that there is a payment policy for the company’s suppliers.

98

Finance works with managers to prepare the organisation’s budgets and forecasts, and to report back on the progress against these throughout the year. This information can be used to plan staffing levels, asset purchases and expansions and cash needs, before they become necessary.


REGIMENTS FINANCE

Audit Process FIN_01

Resources

Overview

• Chief financial Officer • Group financial manager • Group management accountant

Audit refers to the annual task of the Finance Department creating the financial statements for Regiments Group and engaging with the auditors to provide sign off. The reason for completing annual financial statements are: • to satisfy statutory requirements • to provide to investors detailing the financials of the organisation • for use when engaging in funding activities • to provide comfort with partners the organisation may engage with

Overall fit into Regiments Value chain The financial statements are for the Regiments Group, and finance complies consolidated financial statements.

Definitions • GFM – Group financial manager • GMA – Group management accountant

Timelines Financial statements are filed annually, the task in completely and liaising with auditors takes approximately 2-3 moths.

99


REGIMENTS FINANCE

Stage

100

Step

Owner

Timeline

1

Consolidate information

Description • GMA consolidates information required to complete the FS

GMA

2 weeks after year end

2

Complete FS

• GMA drafts financial statements

GMA

3

Review of FS

• GFM reviews FS

GFM

1 month after year end

4

Submit to auditors for review

• Once GFM has reviewed FS, they are sent to the auditors to review

GFM

1 month after year end

5

Provide Support to auditors

• Auditors review FS and select sample for review. Auditors typically on-site to finalise

Finance team and auditors

2-3 months after year end

6

Update financials

• Update financials with any agreed changes with the auditors

GMA

7

Finalise FS with auditors

• Finalise statements with auditors

CFO and auditors

8

Submit for directors approval

• Directors to review FS and suggest any changes required

Directors

9

Changes needed

• If changes are needed, FS to be updated.

GMA and GFM

10

Directors sign off

• Once changes made, directors to sign off FS

Directors

11

Auditors approval

• Once directors have signed off FS, auditors provide Audit opinion and sign off financials.

Auditors


REGIMENTS FINANCE

Payroll FIN_02 Overview The payroll process involves the payment of staff salaries on a monthly basis, as well as statutory payments. Prior to salary payment, finances has to ensure all staff details for payment are correctly including: • • • • • •

Bank details Medical aid changes Provident fund deductions Overtime Travel claims Bonus payments

Statutory payments include • Payment of UIF • Payment of PAYE Mid year and at year end, IRP-5 forms are created, and distributed to employees at financial year end. Finance also attends to payslip queries from the business this can include: • When there are medical aid changes • Changes to CTC resulting in changes in pay • Increases in tax • Bonus payment and taxation of bonus

Timelines The process is completed by 25th of each month (or earlier should this fall on a weekend).

Resources • Group management accountant is responsible for salary payments and this is released by group financial manager. • HR is responsible for administrative changes

Overall fit into Regiments Value chain Finance pays salaries for the entire organisation.

Definitions • • • • •

CFO – Chief financial officer GFM – Group financial manager GMA – Group management accountant SARS – South African Revenues Services CTC – Cost to company

101


REGIMENTS FINANCE

102


REGIMENTS FINANCE

Stage Salary payment

Queries

UIF and PAYE

Step

Description

Owner

Timeline

1

HR records and updates employee changes

Monthly employee changes include: • Medical aid changes • Provident fund changes • Increase to CTC

HR

Ad hoc through the month

2

Update payroll file with changes

• As changes are received, update payroll file with all changes

HR

3

Update sage with all monthly changes and payments

Once off update of sage is done including: • Medical aid changes • Provident fund changes • Increases to CTC • Banking details • Travel claims • Overtime • Bonus amount • Lunch deductions Opportunity for improvement: • Payroll officer to do these tasks

HR

2 days before pay day

4

Upload file to bank

• Upload payment amounts from Sage to the banking system

GMA

2 days before pay day

5

Review file and release

• GFM reviews file and releases for payment

GFM

1 day before pay day

6

Bank pays

• Bank makes payment • Opportunity for improvement: • Use Sage pay where 1 total amount is transferred to Sage, and Sage makes all salary payments

Bank

Pay day

7

Synchronise Sage and ESS

• Sage and ESS are synchronised and payslips are available on Sage

HR

On pay day

8

Run payroll report and book GL entries on Evolution

• Run payroll report and book GL entries on Evolution

GMA

Day after pay day

9

Recon GL entries and bank

• Reconcile monthly salary payments • Opportunity for improvement • Currently done annually, should be done monthly.

GMA

Annually

10

Receive query from staff

• Staff send queries on pay

HR

Ad hoc

11

Review query

• Finance to review the query

HR

Ad hoc

12

Query resolved

If there is no issue, finance explains to staff payslip changes. Common queries relate to: • Changes to CTC • Taxation on bonus • Changes in medical aid • Opportunity for improvement: • Develop 1 pager “Understanding your pay slip” to pre-empt queries received.

HR

Varies

13

Update payroll

• If there was an error on the payslip, the payment file will be updated and rectified in the next payment cycle. Very rare

HR

Ad hoc

14

UIF Declaration done online

• UIF payment for the month is generated when doing the monthly UIF declaration online

GMA

Monthly

15

File PAYE for month

• Submit PAYE details for the month on e-filing

GMA

Monthly

16

Make UIF and PAYE payments

• Generate payments for UIF and PAYE

GMA payment officer

Monthly

103


REGIMENTS FINANCE

Treasury Function FIN_03

Timelines

Overview

• Bank accounts are checked daily • Cash is moved to the investment account as and when needed on an ad hoc basis • The 3 month cash flow projection is reviewed weekly • Cash is moved from the investment account before each payment cycle (twice a month) if there is a need for extra cash to satisfy payment requirements of that cycle

Cash management refers to how finance manages Regiments’ cash in the bank, to ensure the following: • The best possible interest is received on our cash in the bank • The business is liquid and able to meet the payment requirement This is done by: • Checking bank accounts daily • Moving surplus cash to the investment account as and when needed • Creating a 3 month cash flow projection to manage receivables and payables • Moving cash from the investment account before each payment cycle if there is a need for extra cash to satisfy payment requirements of that cycle

104

Resources • Group financial manager completes this task

Overall fit into Regiments Value chain Finance manages all cash across the Regiments Group.

Definitions • • • •

CFO – Chief financial officer GFM – Group financial manager GMA – Group management accountant SARS – South African Revenues Services


REGIMENTS FINANCE

105


REGIMENTS FINANCE

Stage Transfer to invest account

Transfer from invest account

Cash forecast

106

Step

Description

Owner

Timeline

1a

Review bank account

• On a daily basis the bank account is reviewed to see what the current cash balances are

GFM

Daily

1b

Surplus cash?

• On review of the bank accounts there may be surplus cash from cash received in

GFM

Daily

1c

Is cash required?

• Although there may be a surplus cash, this might be needed for a payment in the near future, and transferring to the investment account is not possible. • Area for improvement: GFM needs insight into cash flow of payables for 2-3 month horizon, to understand if cash can be moved or not. • Proposed: committee of GFM, and partners meet weekly to discuss surplus cash

GFM

Proposed weekly

1d

Transfer to investment account

• If there is surplus cash, that is not required in short term horizon, GFM to transfer to investment account to earn better interest on the cash in the bank

GFM

When needed

2a

Review bank account prior to payment

• Before each payment cycle, the group financial manager has to review the bank account against the value of the payments needed to be made, to ensure there is enough cash in the account to cover the payment requirements

GFM

Twice a month on each payment cycle

2b

Sufficient cash

2c

Transfer from investment account

• If there is not sufficient cash, the GFM will transfer from the investment account

GFM

When needed

3a

Compile 3 month forecast of receivables and payables

• The GFM will compile a 3 month cash flow forecast for review with partners

GFM

Weekly

3b

Review with exco

3c

Action needed?

• Depending on the receivables outstanding, it may be deemed necessary to follow up on the outstanding amounts. This lies with the business and partners to follow up, and not a finance responsibility

Exco / partners

3d

Follow up on receivables


REGIMENTS FINANCE

Compliance FIN_04 Overview Finance is responsible for ensuring the organisation is meeting its compliance requirements, and that Regiments is complying with the statutory requirements across these regulatory bodies: • • • • •

SARS FSB JSE The Banks Stats SA

Finance also provides compliance reports to the Business Units as required. Finance drives compliance internally for all the Business units, is knowledgeable throughout the process and does the final compliance checks to avoid any instances of non-compliance. Finance monitors compliance internally where Regiments has contracts with external parties (e.g. Funders). The contracts contain structures and elements within them that need to be constantly monitored to avoid a breach of the contract.

Stage Compliance

Step

This allows finance to be aware of any transactions going on and the implications of these transactions. Finance works with all the BU’s and trains them in terms of contract management to minimise the risk component of a contract breach.

Timelines • • • • •

SARS – Monthly and Annually FSB – monthly JSE – daily The Banks – annually Stats SA – Quarterly and Annually

Resources • Group financial manager completes this task

Overall fit into Regiments Value chain Finance manages compliance requirements across the Regiments Group.

Definitions • • • • •

SARS – South African Revenue Services FSB – Financial Services Board SE – Johannesburg Stock exchange Stats SA – Statistics South Africa BU – Business Unit

Description

Owner

Timeline

1

Collate information

• The finance administrator (?) collates the information for the compliance reporting. • Opportunity for improvement: Collating of information occurs when filing is required, should be moved to a month task, therefore it is not as onerous a task further down the line. Embed into BAU.

Finance staff

Currently done as part of the compliance process, should be done monthly

2

Compile reports

• Based on reporting requirements, compile compliance report.

Finance staff

Based on timeline for various compliance requirements

3

Review report

• Group financial manager reviews the report complied.

GFM

4

Submit

• Once report has been reviewed, it is submitted to the various bodies.

GFM?

107


REGIMENTS FINANCE

Procurement FIN_05

Overall fit into Regiments Value chain

Overview

All goods and services over a stipulated amount (R100K) has to be approved within the procurement policy.

The Procurement Process ensures that goods and services are procured within budget and within the supplier preference parameters as defined by the organisation. The process ensures that costs over a certain value are justified so that funds are not unnecessarily wasted.

Timelines This is an ad hoc process as and we a procurement event occurs.

Resources • It is the business unit’s responsibility to complete to procurement proposal, which finance will review and approve. • The cost justification template

108

Definitions • BU – Business Unit


REGIMENTS FINANCE

Stage Procurement Process

Step

Description

Owner

Timeline

1

Business Unit identifies goods / services to procure

• The identification of goods and services sits within each BU

BUs

Ad hoc

2

BU drafts procurement proposal

• The BU drafts a proposal in the cost justification template, for the procurement activity following the procurement policy guidelines (see appendix)

BUs

Ad hoc

3

Finance reviews proposal

• BU will submit proposal to finance for review. The procurement committee reviews the proposal

BUs

Ad hoc

4

Is it within procurement policy?

• Finance will review the proposal against the procurement guidelines

Finance

Within a week of receipt

5

Finances approves

• If the proposal is within the guidelines finance will approve the request

Finance

Within a week of receipt

6

Finance rejects

• If the proposal is not within the guidelines finance will reject the request and provide reasons for why it was rejected

Finance

Within a week of receipt

7

Motivation for reason outside policy?

• If the proposal falls outside the procurement policy, there may be reasons for this, and a motivation can be given by the BUs. If there is no motivation, the proposal will need to be re-done.

Exco

Within 2 weeks of receipt

8

Exco / partner approval

• Even if the proposal has been approved by finance, certain procurement activities will require partner review. • If the proposal was rejected by finance as it falls outside procurement policy, but motivation is provided, partners will review this motivation

Exco

Within 2 weeks of receipt

9

Partner review

• Exco / partners will review the proposal

Exco / partners

Within 2 weeks of receipt

10

Approved

• Either by the finance department, or where necessary at exco level – the procurement activity is approved and the BU can engage with the supplier for the goods / services.

Finance / partners

Within 2 weeks of receipt

109


REGIMENTS FINANCE

Payment FIN_06 Overview Finance makes payments for staff claims as well as supplier invoices, for all the BUs across Regiments. The Expenditure and Payment process covers the following activities: • Approval of invoices • Payment of invoices and staff claims • Responding to queries surrounding payments

Timelines Payments are made over 2 payments cycles per month. There are also ad hoc payments that are done for urgent invoices needing payment, or when a payment was missed in a payment cycle.

Resources Payments are made by the finance administrator and released by the finance manager.

Overall fit into Regiments Value chain Finance covers the payment process for all payments across the Regiments Business Units. Finance also makes all payments for staff claims.

Definitions • BU - Business Unit • POP - Proof of payment

110


Invoice approval

Purchase approval

REGIMENTS FINANCE

1.BU engages with finance for approval to purchase

2.Finance reviews request

5. Receive invoice for approval for payment

6a. Invoice approved at right DOA?

4c. Procurement Process

7a. In budget?

13a. Enter into supplier spreadsheet

Yes

13b. Enter into claims spreadsheet

10.Exception process

9. Reject payment approval

14. Manually enter into payment system Evolution

15. Enter into Bank

11b. Receive claims for payment

16a. Beneficiary loaded on system?

No

Yes

16b. Enter beneficiary details

17. Load payment amount 18. Release payments

21. Save down all POP

19.Second release check 20. Payment made

No

22. Payment cycle complete

Query process

8. Approve for payment

Yes

No

12. Record in log book

4b.Approve for purchase

No

Yes

No

6b. Request approval at correct DOA

23. Receive query from BU / staff member

4a. Procurement Activity?

Yes

No

3b. Deny approval, BU to modify request

11a. Receive invoices for payment

Payment process

3a. In Budget?

Payment details correct? Yes

25. Was payment made?

24. Review bank

Yes

25b. Send POP

29. END

No

26a. Was payment request received? 26b Ad hoc payment

Yes

No

27. Inform no payment request received

28. Payment process

111


REGIMENTS FINANCE

Stage Purchase approval

Invoice approval

Payment process

112

Step

Description

Owner

Timeline

1

BU Engage with finance for approval

• The Business unit requesting approval must submit procurement request to finance

BU

Ad hoc

2

Finance reviews request

• Finance will review the request from the BU to determine:

Procurement committee

Within a day of receipt

3

Is amount within budget?

• Is the request within the Budget allocation for the BU

Finance

Within a day of receipt

4

Is this a procurement activity for approval

• Does the request fall into the requirement for a procurement process

Finance

Within a day of receipt

5

Receive invoice for payment approval

• Some invoices will not require purchase approval, and finance will receive with appropriate BU approval for payment

Finance

Ad hoc

6

Invoice approved at right DOA

• Based on the amount, invoices will need to be approved at the correct level and if not, will be rejected for payment

Finance

Within a day of receipt

7

Is the amount within budget

• Finance will review the approved payment request to ensure it is within the BU budget

Finance

Within a day of receipt

8

Approve for payment

• Finance will approve and send to finance administrator for payment

Finance

Within a day of receipt

9

Reject

• If the invoice falls outside the department’s budget, finance will reject

Finance

Within a day of receipt

10

Exception process

• If invoice is rejected, this will be dealt with as an exception process to agree at partner level course of action

Finance

Ad hoc

11

Receive invoices and claims for payment

• Finance officer will receive invoices and staff claims for payment

Finance

Ad hoc

12

Record in log book

• Finance administrator logs all invoices and claims received in the log book as and when received

Finance

On receipt

13

Enter into payment system Evolution

• On payment cycle, all payment details are entered into the payment system evolution

Finance

Weekly

14

Enter into bank

• On payment cycle, all payment details are entered into the bank • Area for improvement: Upload batch payments

Finance

Weekly

15

Enter beneficiary details

• If beneficiary details are not in the bank, finance administrator will enter into the system

Finance

Weekly

16

Load payment amounts

• Finance administrator loads payment amounts for each payment

Finance

Weekly

17

Release payments

• Once all details are entered, finance administrator will release all payment at once

Finance

Weekly

18

Second check

• Head of finance reviews all payment details before releasing for payment

Finance

Weekly

19

Payment made

• System makes all payments

Finance

Weekly

20

Save down all POP

• Finance administrator saves down all proof of payments should a query be received on a payment • Area for improvement: Remove this step, by including POP details on all beneficiaries, who will then receive POP after payment

Finance

Weekly

21

Payment cycle complete

Finance

Weekly

22

Receive query from BU / staff member

BU / staff

Ad hoc

• Payment query received for investigation • Area for improvement: Staff member to check POP sent before querying. If a BU query (esp real estate) – set up an inbox for all POPs and BU to check inbox prior to querying with finance.


REGIMENTS FINANCE

23

Review bank

• Review bank to see if payment was made

Finance

Ad hoc

24

Payment made?

• If payment was made, send POP

Finance

Ad hoc

25

Request received?

• If request was received, but payment not made, an ad hoc payment cycle will be run to pay the amount

Finance

Ad hoc

26

Not received

• If no payment request was received, inform and wait to receive

Finance

Ad hoc

27

Payment process

• Once missing request is received, follow standard payment process

Finance

Ad hoc

28

END

• Process finished

Finance

Ad hoc

113


REGIMENTS FINANCE

Fixed Asset Management FIN_07

Timelines

Overview

• Fixed asset management depreciation is done monthly • A floor walk is carried out monthly to inspect state of the fixed assets • Fixed asset replacement or repair is done as an ad hoc activity based on the need

Facilities and Finance manage all the fixed assets of Regiments, i.e all the physical goods within the building (but not the building itself). This is to ensure that the business is run within the cost parameters set for fixed assets, and that the business is provided the assets they require to carry out their business activities. Facilities arranges for repair and replacement of fixed assets and maintains the fixed asset register. Fixed assets are depreciated according to accounting standards.

Resources Facilities.

Overall fit into Regiments Value chain Finance and Facilities manage all fixed assets across the organisation.

Definitions • FAR – Fixed asset register

114


REGIMENTS FINANCE

Stage Asset purchase

Asset delivery

Step

Description

Owner

Timeline

1

BU identifies requirement for fixed asset

• Outside of large purchase activities (i.e. furnishing new building, which sits outside of BU) fixed asset requirements are identified by BUs

BUs

Ad hoc

2

Send to finance for review and budget

• BU to send details to finance of the asset for purchase and also to get the budget from finance

BUs

Ad hoc

3

Finance approves

• Finance will review the request and approve or reject. Finance will also determine if exco approval is needed

Facilities

Within a week of receipt of request

4

Exco approval?

• Certain fixed assets need to be reviewed and approved by exco

Exco

Varies

5

Exco reviews

• Exco will review cost as well as proposed options

Exco

Varies

6

Exco approves

Exco

Varies

7

Procurement

• If request is approved, standard procurement process is followed by the BU and approved by finance

BUs

Varies

8

End

• Once procurement process is finished, asset has been ordered

9

Asset is delivered

• Facilities takes receipt of asset

Facilities

At time of delivery

10

Facilities tags asset and records of FAR

• All assets are tagged with a barcode and recorded on the fixed asset register

Facilities

At time of delivery

115


REGIMENTS FINANCE

Budgeting and Forecasting FIN_08

Resources

Overview

CFO, CFM and GMA are responsible for budgeting and forecasting.

Budgeting and forecasting refers to the setting and monitoring of the business units’ budgets. This is done to ensure the business is financially sound, tracking to the strategy and any misalignment to strategy is addressed. Every Business Unit will have a Budgeting manual and each BU is accountable for their own budget.

Timelines • Budgets are set annually, and are monitored monthly • Forecasting is done monthly

116

Overall fit into Regiments Value chain All business units are involved in budgeting and forecasting.

Definitions • • • • •

CFO – Chief financial officer GFM – Group financial manager GMA – Group management accountant SARS – South African Revenues Services CTC – Cost to company


REGIMENTS FINANCE

Stage Budget setting

Budget review and forecasting

Step

Description

Owner

Timeline

1

Strategy session

• In October each year the annual strategy session is held to discuss following years strategy

Exco and BU heads

October

2

Create budget

• Following the strategy session finance will assist the BU heads in formulation of budget for coming financial year

Finance BU heads

January

3

Review budget

• Once budgets are completed they are reviewed at exco level

Exco

January

4

Make changes

• Changes are made where required

BU heads and finance

January

5

Finalise budget

• Once signed off budget is finalised for the financial year

BU heads and exco

February

6

Review budget

• Monthly finance will review each BU budget

Finance GMA

Monthly

7

Forecasting

• After 3 months in the new financial year, finance will forecast for the rest of the year based on the first quarter results

GMA

Monthly

8

Management reporting

• The budgeting and forecasting forms part of the monthly management reporting (see separate procedure)

GMA

Monthly

9

Action plan

• From the budget and forecasting, if there are variances, actions may need to be taken. Finance will provide opinion on where changes can be made, but it rests with the BU heads to implement where needed

BU heads

Ad hoc

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REGIMENTS FINANCE

Management Accounting FIN_09

Definitions

Overview

• CFO – Chief financial officer • GFM – Group financial manager • GMA – Group management accountant

Month end closure refers to the process of capturing all financial related information into the system to ensure items are reflected in the appropriate period. This involves: • • • • • •

Capturing invoices Completing cash book reconciliation Posting depreciation GL entries Valuation of assets Accruals Ad hoc general ledger entries

The month end closure is a financial accounting process. Management accounting refers to the review of GL entries for the month, to ensure all items have been captured and classified correctly. Management accounting also involves consolidation of financials at group level. Management reporting provides exco and the BU heads with a monthly report detailing the financial position and monthly activity of each BU. This gives the business a monthly view with which they can make decisions. The report details: • • • •

Costs Revenue Budget Areas for attention.

Timelines The process is completed monthly by mid-month of the following month.

Resources Chief financial Officer, group management accountant, book keeper and finance officer.

Overall fit into Regiments Value chain Management accounting and reporting is done across the entire organisation.

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REGIMENTS FINANCE

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REGIMENTS FINANCE

Stage Month end closure

Management accounting

Management Reporting

120

Step

Description

1

Capture all invoices on the system

2

Book all GL entries

3

Asset valuation

4

Depreciation booked

5

Owner

Timeline

• All entries for the month need to be posted to evolution • Area for opportunity: automate the booking of invoices, as this is all already on excel as part of the payment process

Book keeper and financial accountant

Business day 1-2

Review to ensure all entries for the month are posted

• Prior to submitting for review ensure all entries for the month are posted

Book keeper and financial accountant

Business day 2

6

Run reporting from Evolution

GMA

Business day 3

7

Export to excel

• Report is run from Evolution and reviewed to ensure items have been classified correctly

8

Review entries

9

Updates required?

• If updates are required, inform team to make changes and to reclassify

GMA

Business day 3

10

Reclassify

• Make changes

Book keeper

Business day 3

11

Complete month end closure on system

• Once updates are made, month end closure is complete

GMA

Business day 3

12

Run reporting from Evolution

• Once all entries have been posted, report is run from Evolution and exported to excel

GMA

Business day 4

13

Export to excel

14

Reform consolidation in Business Suite

• Consolidation is done in Business Suite • Area for improvement: All accounting to be done in Evolution, including classification • Area for improvement: accounting to be done at entity level, and not at group level. Consolidation will then be on reporting, rather than accounting level

GMA

Business day 4

15

Update classification in business suite and evolution

• If updates are needed, these are posted to Business suite, but must also be updated in Evolution

GMA

Business day 4

16

Management accounts updated for the month

• Process is complete for management accounting

GMA

Business day 4

17

Create monthly management report

GMA creates the monthly report with commentary on the numbers, including: • Ratios • Cash flow • Financial • Assets • Areas to improve • etc

GMA

Business day 5

18

Review with BU heads

• Once report is complete, GMA will review with BU head and make changes if necessary

GMA and BU heads

Business day 6-8

19

Review with CFO

• Once report has been reviewed with BU heads, CFO will review

CFO

Business day 9

20

Make changes if required

• If changes are needed, GMA will update

GMA

Business day 9

21

Circulate report to BU heads and exco

• Once signed off by CFO, GMA will circulate to BU heads and exco.

GMA

Business day 10


REGIMENTS FINANCE

Financial Accounting FIN_10

1. Cash book

Overview

• Cash movements for the month, that relate to that period as an income or expense • Cash movement for the month, which have been accrued for as a payable or receivable from a prior period (these do not get booked to the Income Statement, but are rather off-set again the accrual – Debtor/Creditor on the balance sheet.)

Financial accounting is done for each period end (month). Financial accounting is important to give the business a financial view of each entity, and the organisation as a whole. General ledger entries that are booked, feed into the Group Management Accounting process. It is therefore critical GLs are booked to the correct entity, for the correct period and the correct chart of account, to avoid re-classification later.

Timelines All General Ledger entries are due for completion within a week following month end. To keep up to date with entries, cashbook items should be booked weekly in line with the weekly payment cycle.

Resources Each BU is a separate entity, and expenses and income should be allocated to the appropriate entity. • Funds • Securities • Capital Markets • Properties • Private Equity • Business Development • Finance • HR • Marketing and Communications • Facilities • Legal and Compliance • Directors BU The different entities incur different expenses and have different sources of revenue. It is therefore important to understand the operations and functions within each BU to enable the Financial Accountant to book and classify ledger entries correctly.

Process There are 3 components to be booked for each period. It is important the GL is booked to the period to which is relates:

2.Payables • Expenses due to be paid in the period, but are not yet paid, are accrued for as a current liability on the balance sheet, and booked as an expense for that period. Eg PAYE, UIF, Provident fund contributions, Medical Aid • Debit orders are also accrued for as a payable. 3.Receivables • Invoices that have been raised for the period, but payment not yet received are accrued for as a receivable on the balance sheet, and as an income for that period.

Income Income is different across various BUS, common income classifications are: • • • • • • •

Project revenue (Advisory, DCM) Management fees received (Funds) Interest Received - External Rental Income (Properties) Dividends received (Private Equity) Finance income Profit on Disposal

It is also important the revenue earned from a project is booked to the relevant project to allow for accurate project accounting.

Expenses • It is important that the expense incurred is booked to the entity that is relates to, even though it has been paid out of the group account. • When booking payments, financial accountant should look to the requisition to determine the classification of the expense, as the bank statement often does not provide enough detail.

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REGIMENTS FINANCE

VAT • For invoices that have VAT applied, the VAT is booked separately. • There are some expenses where VAT cannot be claimed back, these invoices should have the entire amount booked as the expense. (See SARS guideline). Examples of expenses: Staff expenditure • Salaries • Bonuses • Leave pay • Recruitment Fees • Staff training • Subscription - Professional Bodies • Staff examination fees • Temporary employees • Staff Gifts • Golf Subscription • Office related expenses • Telephone costs Office Expenses • Rental Office Equipment • Printing and Stationery • Postage • Cleaning Expenses • Water and electricity • Rates and Taxes • Security Cost • Rental Office Buildings • Electrical Supplies • Food & Beverages • Rates & taxes • Repairs and Maintenance • Fuel Expenses • Security costs • Furniture Expenses • Computer Equipment • Office Equipment Staff expenditure • Salaries • Bonuses • Leave pay • Recruitment Fees • Staff training • Subscription - Professional Bodies • Staff examination fees • Temporary employees • Staff Gifts • Golf Subscription

122

Office related expenses • Telephone costs • Office Expenses • Rental Office Equipment • Printing and Stationery • Postage • Cleaning Expenses • Water and electricity • Rates and Taxes • Security Cost • Rental Office Buildings • Electrical Supplies • Food & Beverages • Rates & taxes • Repairs and Maintenance • Fuel Expenses • Security costs • Furniture Expenses • Computer Equipment • Office Equipment

Assets • Anything over R50,000 is capitalised as an asset. It is then depreciated on a monthly basis (straight line basis) and added to the Fixed Asset Register. • Anything under R50,000 is booked as an expense to which it relates to. Examples of Assets are: • Property • Software • Signage • Investment Funds • Cash • Equipment

Liabilities • Liabilities include any expenses incurred for the period, which have not been paid. These are accrued as a payable • Loans also classified as a liability with the interest as an expense.


REGIMENTS FINANCE

Appendix Name of employee

Designation & Department

Amount Required By when (date) BU Head For (reason)

Question: 1

Why is this cost unavoidable

2 3

Are there any alternative options to achieve the purpose that this cost achieves? What are the direct benefits incurred through this cost

4

Are there any indirect benefits that stem from this cost

5

Who will benefit

6

By when will they realise the benefits

7

Provide timeline of how the cost will be utilized

8

Will the cost lead to any other follow up cost

9

Will this cost lead to savings on any existing cost

10

Is this cost one time or recurring

11

If recurring, when

12

Is this cost one-off, or part of a bigger cost estimate? If so, provide details Were competitive quotes obtained? If yes, Please provide. If no, why What is the BEE status of the recommended service provider?

13 14

Answer

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REGIMENTS FINANCE

Procurement Committee All supporting documentation received

YES

NO

RECOMMENDED

NOT RECOMMENDED

Comments

Procurement Committee

Comments

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REGIMENTS FINANCE

125


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REGIMENTS BD & MARKETING 127


REGIMENTS BD & MARKETING

The purpose of Marketing and Communications is to enhance brand equity, to build brand awareness and to position the company as a Thought Leader. It aims to achieve this through: • Building brand awareness among internal and external stakeholders; • Creating positive brand associations through single minded messages to reinforce what we stand for; and • Positioning the company as a Thought Leader amongst its target audience The outcome of these marketing tactics will result in: • Generating revenue by enabling Origination and Coverage Department (O&C) REAP Tactics; • Increase market share in support of O&C goals and objectives; and • Affect consumer behaviour in driving preference to purchase

128

Marketing and Communications (Marcomms) serves as the brand custodian ensuring that all marketing collateral is aligned to our corporate identity. Any and all developments of marketing collateral in the form of profiles, brochures, gifts, books, pens, banners, apparel, advertising, public relations, media, corporate social investments, sponsorships etc. is developed by Marcomms. In addition, in a collaborative effort, Marcomms will ensure brand standards are defined and published for organisation wide use. These standards are set out in this manual. Brand practices are further set out in a Brand Manual readily available to the organisation guiding users on various aspects of our brand .i.e. our logo, colour usage, our font, our visual identity and how this can be applied creatively. Marcomms also defines the various brand experiences in the form of experiential marketing. The Marketing Department works closely with the Regiments Way Document, which contains principles of marketing standards.


REGIMENTS BD & MARKETING

Marketing and communications MKT_01 Overview The purpose of the marketing and communications processes it to provide results-oriented advertising, public relations, and marketing communications designed to meet our client’s objectives. This is done by providing strong marketing concepts and excelling at customer service, deriving maximum value to clients and partners. The Marketing and communications division contains nine processes. The processes include: • • • • • • • • •

Direct Marketing Brand and Business Collateral Media plans and Communication Online Events Brand Architecture Enabling Business Development Enabling Human Resources Design & Creative

Timelines The duration of the campaign management process is project dependent.

Resources • The Regiments Way Document • Sales and Business Development

Overall fit into Regiments Value chain Marketing and Communications provides visionary brand leadership and builds & monitors the image, reputation and value of the Regiments brand across all BU’s.

Definitions • BD - Business Development • O&C - Origination and Coverage Department • BU - Business Unit

The processes all fit into the campaign management framework and the Regiments Way document.

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REGIMENTS BD & MARKETING

Campaign Management MKT_02

Planning the Campaign Campaign Need

Campaign Proposal

Prioritisation

Proposal Approved

Campaign Scheduled

& Scheduling Schedule with: • All relevant stakeholders • SBUs and Support Functions

Agree with all Stakeholders: • Objectives • Budget • Estimate ROMI1

Developing the Brief Approval of Mkt Comms Plan

Develop Marketing Communication Plan

Briefings

Brief

Brainstorming

[Agency if included]

[Agency if included]

[Agency if included]

• Important check of [Agency’s] understanding of brief • Forms the basis of Creative Development

Includes: • Campaign proposal • Target audience insight • Differentiation • Features and Benefits • Previous lessons

• Explore the best approach to target market • Consider all media and tactics

Creative Development Develop Creative Concept (Rationale)

Creative Concept / Approach

Creative Concept/Approach Approval

Engagement with Internal support units

Regiments Channels Booked

130

Application of Creative to Campaign elements

Creative Execution Approval

Suggested visuals, Tone and Manner etc

A written description of the creative concept and or the creative approach

Media Booked

Develop Creative Execution

Approval of Media Plan

Media Plan

Develop

Approval of Creative

Media Plan

Internal Media Brief

Approval by [Agency], and Head of BD, Marketing & Comms

Develop Specialist Marketing Elements

Final Creative Approval

Refinement of Creative Includes CI / Compliance, Legal and Regiments and SBU Brand Technical Approval


REGIMENTS BD & MARKETING

Production Production

Production Specifications

Briefings

Approval of costs

Production Costs

Production of Campaign material

Approval of Material

Distribution / Flighting / Evaluation Flighting of Ad Material Distribution of printed material

Evaluation of Campaign

Campaign Evaluation

1

Source of Marketing Strategy [inputs] Facts

•Regiments and SBUs business strategies strategic themes, priorities and 3 year plans • Services and product strategies •Regiments competitor facts

Monitoring of Campaign

Distribution and Flighting of Campaign Material [within Regiments]

2

3

•Understand Regiments and SBU business strategies

•Set Regiments and SBU marketing approach and guiding principles

•Understand Regiments and SBUs markets and clients

•Set Regiments and SBU specific marketing and communication strategies

Develop Marketing Intelligence and Insights

– Size and growth – Mindsets and attitudes generally

– Advertising media strategies

– Etc.

– Advertising expenditures •Client needs, profiles and trends research •Regiments brand marketing performance tracking

•Understand competitive environments and impact on the Regiments and SBU brands

Supply of Material

Regiments Channels (Internal Media) Includes: • In office materials • Regiments Brand website • Message on hold

Monitoring the campaign material by all concerned

– Market positioning and client ratings

– Advertising look, feel and messaging

Advertising Material to Media Owners

Develop Marketing Strategy and Initiatives Plans

•Identify and prioritise marketing initiatives at both Regiments and SBU levels

•Create detailed marketing plans of selected and prioritised initiatives with budgets

4

Develop Marketing Campaign Plan (Implementation)

•Develop marketing and communication campaigns of selected initiatives – Above the line – Below the line – Direct marketing – Leveraging of sponsorships – Regiments sponsorship management •Support business development and sales drives in all channels

•Create client specific marketing and communication drives

•Operational marketing - all creatives and production design and supplier •Create product/service level management campaigns

131


1st Floor, 35 Ferguson Road, Illovo 2196, Sandton, South Africa Postnet Suite 25, Private Bag X11, Birnam Park, 2015 +27 11 595 0700 info@regiments.co.za

www.regiments.co.za


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