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
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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
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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
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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
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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
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Deliverables
• From the WBS, detailed deliverables will be identified • Team members are assigned deliverables
Project Manager
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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
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Communication
• Create detailed communication plan • The communication plan will indicate communication networks
BU
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Support
• The support required from other departments • Type of support and time to be indicated
BU
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Budget
• The budget provides a cost of the services rendered and should be reported weekly
BU
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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
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Change control/ scope management
• Impact due to scope change to be managed (time and cost impact)
BU
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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
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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
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• • • •
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
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• 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
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REGIMENTS STRATEGY ADVISORY
Stage
Product Launch
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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
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REGIMENTS CAPITAL MARKETS
Stage
Step 1 2 3 4 5 6 7 8 9 10 11 12
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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
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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
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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 • • • • • •
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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
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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
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Property Management
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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
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Tenants
• Relations • Lease Administration • Leasing management
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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
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
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
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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
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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:
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• 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.
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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.
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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
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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.
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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
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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.
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REGIMENTS SECURITIES
AFTER PRESSING F5 YOU SHOULD SEE THE BELOW SCREEN (THIS SCREEN IS CONFIRMATION THAT THE ACCOUNT IS SQUARE)
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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
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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
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• 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
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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.
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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
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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
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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:
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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
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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.
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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
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REGIMENTS FACILITIES & IT
Stage Log the fault
Repair
Replace
Maintenance
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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
117
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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Stage Month end closure
Management accounting
Management Reporting
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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
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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 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
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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
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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
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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