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Vol II/No. 11
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South Africa/Africa region February/March 2012
PERSONAL GROWTH Living and learning together Maximize your potential How to really network Mentorship vs Coaching
Plus: 2012 market forecast New: Profile of an Entrepreneur
Your bi-monthly guide to wealth Click to read more!
Contents
February/March 201 2
27 What to focus on CareerWise when investing offshore 47 Mentorship versus 1 0 Living and Learning 30 A decade of coaching Together - Interview difficulty: fear or hope with author Barbara for SA? 50 The manager as Nussbaum mediator
Coverstory
LifeWise
BusinessWise
1 8 How to maximize 34 The real purpose of networking your potential 20 Make your dash 36 Heading for the stratosphere - Profile of count an Entrepreneur 22 Advertorial 39 The GAP Marketing Turnover Boost Model Part II MoneyWise 24 Markets forecast 43 King III and the role of IT in governance 201 2
Agenda
54 Mabalingwe Nature Reserve 62 Books 66 Events
Regulars: 3 Contents 4 ForeWord 5 Get in touch 7 Contributors 61 Competition 68 Last Word 69 In next edition
WealthWise magazine 3
ForeWord
201 2, your year of personal growth
N
o, 2012 is not the end of the world as manypeoplearestill assuming, thanks to the ancient Mayan culture’s calendar ending on 21 December 2012, supposedly bringing the end of the world. Part true and false, here is the deal if you are into esoteric things (or just curious): it will be an end, but not to the existence of our Planet; it will be the end of the world as we know it and the beginning of a new cycle. There hasn’t been a better year to start a new spiritual evolution and work towards your own transformation, including your financial well being. We have dedicated this February/March issue to the uplifting of your body, mind and soul; the 4 WealthWise magazine
reinventing of yourself in your personal and work/career or business life. Learn about connecting to your authentic self, developing empathy and awakening the African inside you from our amazing interview with Barbara Nussbaum, author of "Personal Growth African Style". Read more about maximizing your potential and giving your life the purpose it needs.
Embracechangeinyourcareer and business by improving the way you communicate and your networking skills ; learn how to mediate and avoid conflicts in the workplace; find out the difference between mentorship and coaching and much more. For the business minds, we
have this issue covered with advice on marketing, networking and our newest section, Profile, showcasing entrepreneurship stories from Africa. Investors will be delighted to read about 2012 market trends and investing offshore. We hope that our publication will inspire you to make every day, longlasting changes to a wealthier future. Wishing you all the best, Denisa Oosthuizen Managing Editor for WealthWise magazine
Get In Touch
Contact us Email: denisa@wealthwisemag.co.za editor@wealthwisemag.co.za Mobile: +27(0)82 819 2820 +27(0)81 326 1579 Skype: denisa.oosthuizen Facebook: WealthWise magazine Twitter: @WealthWisemag LinkedIn: www.linkedin.com/company/wealthwise足magazine
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December/January 2012 Cover
dreamstime.com
photo:
Contributors: Alec Riddle, Kantha Singh, Paul Stewart, Marius Fenwick, Adrian Saville, Andrew Morton, Hendrien van Zyl, Johan Mouton, Denisa Oosthuizen Photos: dreamstime.com and contributor's photos where stated
WealthWise magazine 5
Contributors
Alec Riddle
is a financial planner with Consolidated Financial Planning in Port Elizabeth. Named South Africa’s Financial Planner of the Year in 2009 by the Financial Planning Institute, he has spoken on a variety of financial planning topics in all of the major cities of South Africa. He has given numerous motivational talks about his journey from a jobless, overweight “couch potato” to a successful financial planner and Ironman champion in the 50-plus age
group.
Read Alec's article about maximizing your potential in LifeWise section, page 1 8.
Kantha
Singh
is
a Master Facilitator and Assessor for Workwise Corporate Training Solutions. Kantha has implemented Workwise projects for many large bluechip SA companies (SAA Technical, Konica Minolta, SARS, Anglo American amongst many others) in team leadership and management development and customer service. Kantha is also a specialist facilitator of the Art of Project Management. Read Kantha's article about making your life worthwhile in LifeWise section, page 20.
Paul Stewart is managing
director of Plexus Asset Management. Founded in 1995, the Plexus group of companies is an independent financial services provider that specialises in providing financial planning and investment management solutions and services. Plexus has a strong culture of being research driven, having developed the PlexCrown Fund Ratings (used as the basis for the annual Raging Bull Awards for the unit trust industry) and the Plexus Unit Trust Indices. Read Paul's 2012 forecasts on the markets in MoneyWise section, page 24. WealthWise magazine 7
Contributors
Marius Fenwick
is Chief Operating Officer and Senior Advisor at Mazars Financial Services. Marius is a Certified Financial Planner with an advanced postÂgraduate diploma specialising in investment planning, portfolio structuring and estate planning. He has more than 10 years’ experience in the financial services industry and specialises in structuring international investment portfolios. Read his article that investigates the main focus points when investing offshore in MoneyWise section, page 27.
8 WealthWise magazine
Dr. Adrian Saville
is CIO of Cannon Asset Managers. He holds a Visiting Professorship in Economics and Finance at the Gordon Institute of Business Science. Cannon Asset Managers is a niche investment management company, based on the philosophy and principles of value investing. Read Adrian's opinion on the market developments in MoneyWise section, page 30.
Johan Mouton
is the owner and marketing specialist at Online Systems. He has been involved in marketing research projects, consulting work and developing people for business. He has an Honours degree in marketing and has developed a marketing boost model to help companies increase their turnover by implementing and focusing on adequate marketing strategies. Read Part II of Johan's 18 GAP Marketing Turnover Boost Model in BusinessWise section, page
39.
Contributors
Andrew
Morton
is Managing Consultant at The HR Hub, South Africa’s first HR Service Centre, offering a number of HR products and services under one roof, covering the complete HR spectrum. Read his article about mentorship in CareerWise section, page 47.
Hendrien van Zyl
is learning solutions consultant at Optima training. Her expertise lies in the design and deliver learning solutions in support of strategic business objectives, on time and within budget. She has over 25 years experience in education, training and development, including design, development, facilitation, coaching, and management of training projects in various industries. Read Hendrien's article about mediating interpersonal conflicts in the workplace in CareerWise section, page
50.
WealthWise magazine 9
CoverStory
Living and Learning Together A New Dimension on Personal Growth Interview with Barbara Nussbaum by Denisa Oosthuizen
T
he world as we know it is changing. The past years’ unprecedented global economic crisis, longterm financial debt, environmental disasters and violent protests have threatened the stability of our world’s future, while its current leadership has been highly criticized, most commonly under the labels of greed, individualism, inequality and unfairness. In these times of restraint, South African authors Barbara Nussbaum, Sudhansu Palsule and Velaphi Mkhize have called for a different kind of African leadership, and by extension global leadership – a leadership where cooperativeness, 10 WealthWise magazine
communalism, humanness and the act of caring for each other lead to sustainable growth and development not only on the African continent, but beyond our borders. In an exclusive interview with WealthWise magazine, Barbara Nussbaum, qualified professional in the fields of coaching, leadership and indigenous African knowledge and coauthor of “Personal Growth African Style”, speaks of a new inspirational and visionary leadership and a different kind of personal growth.
WealthWise magazine: How do you define the African style portrayed in the book you co authored, “Personal
Growth African Style”? Barbara Nussbaum: In short, African style is exemplified by communally expressed humanity. All western cultures speak to the golden rule, a rule of individual goodness and morality. The contribution that African style can make is in the realm of collective goodness and collective morality, or what I call the art of living and leveraging group emotional intelligence. WealthWise magazine: “Personal Growth African Style” brings a refreshing approach to leadership thinking lodged in the theory and practice of African humanity. You have described personal
communities,ascoretothis leadership. What inspired you to write the book and what is it about? Barbara Nussbaum: Almost eighteen years after the birth of a new political order in South Africa, there is the promise of a new generation of younger people – free from the baggage of apartheid, yet also running the risk of forgetting the power of history and heritage too easily. This book was inspired by and written for the younger generations who are seeking to make sense of who they are tobecomeinarapidlychanging country, in an increasingly interconnected but complex world.
While on the faculty in a master’s programme at CIDA City Campus in Johannesburg, it was clear that that the students required a strong and practical personal transformation component they could relate to. In inviting our students to reclaim the value of their past, we developed a reflective space and methodology for them to build a different future. While there is a great deal of literature on leadership by African writers, we realized that it was important to link these writings closely to personal reflection and leadership development. Because we celebrate what is great, what is magnificent
about each reader, and what uBuntu and other African values can contribute to the global stage, the book is a book of hope. This is an idealistic book. WealthWise magazine: What practical steps are needed to be implemented, in your opinion, to accommodate the more human,relational,spiritual and ethical face of leadership? Barbara Nussbaum: Better leadership will emerge from the practice self awareness as well as the practice of building on communally expressed humanity. This is Africa’s gift to global
Photo: Together, through peoplecentered leadership and communities, we can make the world a better place to live in
the
power
of
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leadership. In a world that continues to choose to see Africa’s shadow rather than its light, this book takes a stand for the promise of a different kind of world, by reclaiming the group emotional intelligence inherent in uBuntu. In leadership, practical steps result from a more confident and refined consciousness and awareness of our inextricable interconnectedness. A refined consciousness and concern for the wellbeing of all is the foundation of ethical leadership. This is the central message of the book. WealthWisemagazine:You mentionthatthereisagreat need to reinvent the African educational system and that knowledge alone is not sufficient. How do you see the future of education in Africa and what practical teachings could be implemented in schools and universities on the continent to promote the new spiritual paradigms of leadership – solidarity, respect, empathy, caring? Barbara Nussbaum: We stress that knowledge alone won’t humanise the world; our world requires a different way of being in relationship, of igniting communal possibility. “Personal Growth African Style” offers a courageous glimpse for how teaching could change in order to promote a more spiritual paradigm of 12 WealthWise magazine
leadership. Leadership textbooks and curricula worldwide and even in South Africa are typically Eurocentric or western in orientation. This marginalizes the contribution that African wisdom can bring to any leadership curricula. It is unhelpful if African students always have to see themselves through the mental maps of western theory and practice. This is not a good recipe for building up psychological and spiritual selfconfidence. There are initiatives underway though NEPAD and other institutions such as UNISA, UCT, and WITS and GIBS, to promote African values in leadership education, but I believe that the pedagogies themselves in our educational systems could be more Afrocentric. Storytelling, music, dance and dialogue are coretoindigenouslearningand yet, at university level, we are trapped by Eurocentric pedagogies. We need to incorporate African pedagogies, as well as the values of uBuntu, in a broad scale at all levels of our educational system. uBuntu is a most wonderful form of spirituality offering an artful way of being in groups. Beautiful experiential and empowering pedagogies using music and storytelling are right here in our own soils. We don’t need to look to Harvard or Oxford and imitate what they are doing.
Thebook,amongothers,seeks to shift the pedagogy to embrace, on an experiential level, what is good, true and beautiful about being African. But these shifts in mindset and educational programming will take confidence and imagination. We need to draw from the past, but adapt it to the present. We believe “Personal Growth African Style” offers a beginning on which others can build. My personal hope is that that as well as university lecturersandbusinessleaders, secondary school teachers will buy the book and adapt the exercises, however they can, to squeeze them into high school curricula.
"Knowledge alone won’t humanise the world; our world requires a different way of being in relationship, of igniting communal possibility"
Photo: Students are learning the values of uBuntu (www.diverseeducation.com) WealthWise magazine: You also state that education begins with selfdiscovery and self awareness – can you explain why? Barbara Nussbaum: True transformation and powerful leadership springs from the roots of being, from each person’s unique soul calling and identity. To claim and name the most profound aspects of who we are calls for a deep sense of personal awareness and self knowledge. Our writing is an invitation to living with soul and to claiming individual destiny. We reach into soul by focusing on the roots of
our being, celebrating our heritage and by being bold enough to become a larger version of ourselves. Once the selfawareness is well honed and identity well established, living and learning together with more compassion and mutual accountability becomes much easier. WealthWise magazine: You have lectured various students enrolled in the Master’s of Social and Transformation Programme at CIDA City Campus in Johannesburg. In all your interactions with the students, how would you describe their
views on today’s leadership and the interest in African values? Barbara Nussbaum: At CIDA, students were encouraged to reclaim their roots and their heritage and were given the freedom to integrate who they were becoming with their awareness of purpose and destiny. Each person came to a different synthesis of how they integrated African values into their own leadership style. One cannot summarise their views and interest in African values, as there was a diverse group of students from the region, and there is not a single way WealthWise magazine 13
to express African leadership, but a variety of ways. The students discovered their strength and power in their own self–definition as Africans, and then by learning with and from each other. There is no ONE way to define what is African. Africa is a vast and diverse continent, with no fewer than fiftyfour countries and thousands of tribes, ethnic groups, beliefs, customs, rituals and languages. Over time, different definitions of ‘Africa’ and ‘African’ have emerged. The very definition of what Africa means is constantly changing, adapting and assimilating. There is always a tension between tradition and modernity, as elsewhere in the world; tension between essence and adaptation, the old and the new, the particular and the universal, the local and the global, the neat and pure and sometimes reified theoretical analysis of intellectuals and the diversity, complexity and uniqueness of lived experience. Each person needs to work out for himself, for herself, how he or she is African. We found that our students each found their own answers to what being African means for them. This is the important journey for teachers and students in our country.
14 WealthWise magazine
"The very definition of what Africa means is constantly changing, adapting and assimilating. There is always a tension between tradition and modernity, as elsewhere in the world" WealthWise magazine: The world at large is still ignorant of Africa, rather portraying the negative. “The Dark continent” and the “third world country” are still entrenched in the minds of most non African societies. Given the viral exposure of uBuntu philosophy in the past years, how is Africa perceived now internationally, in your opinion? Barbara Nussbaum: I cannot speak about how Africa is perceived
internationally, as there are so many audiences who comment on Africa. What I do know is that we are at a crossroads as a world. We are beginning to recognize the negative impact of unsustainable greed and capitalist models which disempower and disadvantage people, countries and continents. The financial crisis, caused in part by lack of oversight, insufficient regulation and unfettered greed in the industrialized world, has tilled the soil for uBuntu to flourish, IF we choose that route. But, through my eyes, Ubuntu is IN!! In November I was invited to give a keynote address at the anniversary of a company called SBI near Utrecht, Netherlands. The 50th anniversary of their company also marked their decision to develop training products and organizational development processes based on uBuntu. They want to brand their products with uBuntu. The same organization will also be hosting a further gathering of the uBuntu Circle in April, a group of 60 or more individuals and companies who believe that uBuntu must become the future in the Netherlands. During this trip, I learned that Ubuntu circles are forming all over that country; that uBuntu is going to form the basis of
a new political party’s manifesto; and that more and more individuals and companies are committed to making sense of uBuntu and applying it to the business context within the Netherlands. In California, there is a great deal of interest in uBuntu, also emanating from the Occupy Movement – people are wanting fairness and justice and a world in which all can flourish. On a more practical note, increasing numbers of socially conscious people want to adhere to Fair Trade practices and to purchase products which directly support artisans in Africa. One website mentioned was www.worldofgoodinc.com The time is ripe to change negative perceptions of Africa, and for global citizens to develop a soulful communal consciousnesstotransformthe unhelpful patterns in our world – political, psychological and economic. In its ideal form, uBuntu is a pathway to fairness and justice. As South Africans we need to value it, be imaginative with it, as opposed to taking it for granted. WealthWise magazine: We arealreadyatthebeginning of the second decade of the 21st century. The world is confronted with political uprisings, financial systems failures, global debt crisis. Are our civilizations more self centered than in the past?
Is individualism or the collective responsible for the current worldwide situations? Barbara Nussbaum: The impact of the Greek and Italian economies has affected all of Europe in a drastic way and leaders are realizing that they have to be able to get Europe out of its current malaise, by standing together. Worldwide, both in the USA and in Europe, there are pockets of highly conscious people who are seeing the value of uBuntu. They have seen that individualismmixedwithgreed is unsustainable and has led to financial crisis. In preparation for Davos 2012, Archbishop Desmond Tutu made the case for Ubuntu on a global scale: "We can no longer ignore this growing distance between rich and poor. It is time to close the gap. It is time to talk about making real changes so that the world becomes a more equitable place."* We also have greater knowledge and consciousness than ever before about our interconnectedness as people and the impact of our individual decisions on our communities, countries and our world. We are seeing the eclipse of the single hero leader as an agent of change, because the combinedimpactofcomplexity and interconnectedness require different leadership competencies: in particular, how to work in groups, how to cocreate collaboratively and
how to mine the collective wisdom required in meeting the complex challenges we face. Africa and the philosophy of uBuntu have a great deal to contribute in the art of working in groups. “Personal Growth African Style” focuses the reader first on their own greatness as a person, moving towards working cocreatively in groups as an essential leadership skill. The main learning challenge for all of us is about the art of being in a group and the art of commitment to being in a group; the art of showing respect, treasuring harmony and finding the place where all of us learn, share and care. uBuntu is idealistic. However, it is an important way forward, because it allows for flexibility and cocreation in an increasingly complex world. With so much complexity in our world, group wisdom can be harnessed. This is the gift that uBuntu can give the west NOW. Again I will refer here to Desmond Tutu, who at the recent World Economic Forum in Davos, 2012, held his head high as a respected African leader in the world. He said it very dramatically: “No matter how powerful we are, if we are morally hollow, our world will collapse". WealthWise magazine: In conclusion, what are the main challenges facing the new democracy in South Africa? How would you comment on the current African leadership and WealthWise magazine 15
whatcouldbepossiblydone to give African leadership a respected voice on the global scene? Barbara Nussbaum: Professor Njabulo Ndebele, a highly respected public intellectual, has had the courage to name one of the difficulties facing our democracy in South Africa. In a number of his writings, he describes the negative impact of the “culture of concealment”** which typifiesourpoliticallandscape. uBuntu calls for truth and morality for the greater good of all. uBuntu is the essence of what is good and true and magnificent; about what African leadership was under Mandela’s leadership. It cannot and does not flourish when certain areas of our toxic political landscape may lie beyond traditional uBuntu strategies to be rehabilitated. Few political leaders have embodied a way to infuse politics with true uBuntu. That’s why we love Mandela and why he is an icon in the world. One of the insights of Professor Rukuni in his book, “Being Afrikan”***, is that moststatesinAfricahavefailed to transfer the values of uBuntu, from family, clan and village to the level of the nation state. So if one accepts that most political landscapes are more akin to a lion’s den than a cosy 16 WealthWise magazine
precolonial village, it then becomes challenging to adapt uBuntu for national political environments. But it is a challengewehavefacedbefore in the history of our country, and will be a continuous challenge.
fully as possible in the way we lead and govern – in politics, in the public sector and in businesses.
In South Africa, we have been partially successful in making uBuntu part of our national foundation. The Freedom Charter, the Constitution, the Truth and Reconciliation Commission are examples of few important landmarks. But, as long as our politicians become less honourable, uBuntu and dirty politics are like oil and water. They just don’t mix. For political journalist Max Du Preez, “Ubuntucanneverbeaconcept behind which charlatans can hide.”
**Source: http://www.zapiro.com/Spo nsoredby/SAJMZapiro JivingwithMadibaOpening/
African leaders will need to embrace the best of uBuntu and apply it in their own countries not only through good policy, which we do have in South Africa, but in delivery to the poorest of the poor. Once Africa rekindles and reclaims Ubuntu in its leadership, and walks the talk of uBuntu in its truest and purest sense (and this is happening in businesses and nonprofits all over the continent), we will shine in a world which desperately needs these deeply African qualities of leadership. Such values are now being recognized as having universal relevance. The biggest mistake we could make is to not live them as
*Source: http://www.theelders.org/ar ticle/timeclosegap
***Source: http://penguin.bookslive.co. za/blog/2010/09/10/new bymandivambarukuni beingafrikanandleading afrika/ ****Source: http://www.penguinbooks.co .za/book/9780143026389/ Read a review of "Personal Growth African Style" in our Books section, page 62.
Barbara Nussbaum is a thought leader and visionary 足 a gentle but powerful voice for uBuntu, locally and globally.
Photo: Author and leadership expert Barbara Nussbaum is passionate about African values
She co足authored Personal Growth African Style****, published by Penguin South Africa. She writes and speaks about why uBuntu appeals to cutting edge thinkers and paradigm shifters in the west. Barbara is a global citizen, born in Zimbabwe, and now living between California and South Africa. She holds graduate degrees from the London School of Economics and Hahnemann University in Philadelphia USA. Through her close association with the World Business Academy in California, she has been published internationally abouttherelevanceofuBuntuinbusiness since 2003. Some of her articles are hosted on www.barbaranussbaum.com.Sheis an associate of the Center for Conscious Leadership, based in Johannesburg. Contact Barbara at bnussbaum@mweb.co.za.
WealthWise magazine 17
LifeWise
How to Maximize Your Potential by Alec Riddle
W
e could all improve ourselves, our situation and our life, but most fail to do so. Why? It is said that 97% of people on Planet Earth just ask their brain to do what it did yesterday. Albert Einstein once said “The height of stupidity is doing the same thing over and over again, expecting different results.” So how best can we transform ourselves? My personal experiences and my experiences as a Coach and a Financial Planner have taught me that there are a few key areas that one needs to focus upon, to increase the likelihood of being successful.
Mental Contrasting 18 WealthWise magazine
People who practice mental contrasting almost immediately start pursuing their dreams, putting a stop to procrastination (our biggest enemy). Start by imagining what it is you want to achieve, then contrast that with where you are now. The result is that your present situation becomes framed as an obstacle standing in the way of your dreams. When I was getting back into training and chasing my dreams, my perception was that I was doing okay, until a friend sent me a photo of me running in a race. I was shocked, as I looked like Ollie ‘The Burger King’ and this picture was the catalyst to me striving harder, to making more sacrifices.
It is important to see ourselves as we can become and not as we are.
Success Spirals
Accomplishment, no matter how small, is the first step to self improvement and creates confidence, which in turn creates effort and fuels our passion, resulting in more accomplishment. The secret, however, is to start small (but start) and pay attention to incremental improvement, breaking down large and intimidating tasks into manageable bits. It’s also important to build in some achievable accomplishments and reward them as you progress. When people aim to do an event like the Ironman, they
Picture: Keep a journal to focus on your goals, chart your progress and acknowledge change
very often cannot run twenty minutes without stopping. I certainly couldn’t eight years ago. The key is to get started and one small step becomes two, the days become weeks, months and years and, before you know it, an extraordinary transformation may have taken place.
your goals to stone, share your goals with your trusted friends and family and you will increase your chances of success.
Dawson Trotman said “The greatest time wasted is the time getting started” and more often than not, it is the first steps which are the hardest; so focus with all of your might for the first two weeks and then momentum takes over.
If you have done so, it is far harder to turn back or to quit; when the General who ordered his Lieutenant to ‘burn the boats’ on the beaches, before going to war, was asked "why?", his response was that he needed 100% commitment from his army; there had to be no alternative, no thought of surrender if they were to succeed.
Burn the Boats
Keep a Journal
To be successful you need to have a Plan and you need to take action, but more importantly you need to be accountable. So commit
This is paramount to being successful and my journal is always at my side. They say that people who keep a food journal lose twice as much
"It is important to see ourselves as we can become and not as we are" weight as those who don’t. Focus on your goals, chart your progress and acknowledge change. This will encourage you and then your confidence and enthusiasm will grow. Have a daily to do list to focus upon, to help you achieve your goals, but never have more than five items on a To Do List, otherwise it becomes intimidating. It’s also as important to have a ‘Not to do” list, so you can focus upon the things that are distracting you from your Goals. It is key to ask “What’s Important Now” (W.I.N.) and check to see if what you are about to do will move you closer to your goal, or further away? WealthWise magazine 19
LifeWise
Make Your Dash Count by Kantha Singh
W
hat did you do with your dash?
I have recently attended the Voices of Change Leadership broadcast and enjoyed some very thought provokingseminars,delivered by some of the world’s experts on leadership. While I learnt from all the presentations, one in particular made quite an impression on me. In his presentation, Dave Ramsey, founder of EntreLeadership, reminded the audience that at the end of our lives, our tombstones will have “the date of our birth – the date of our death”, and asked us to consider what we did with the dash. How can we make the dash count?
20 WealthWise magazine
How can we maximise the opportunity offered to us in our everyday lives? How can we make the RIP meaningful? The key question that we need to ask is “What legacy do I want to leave behind at the end of my career?” I would like to suggest that we will be able to Rest In Peace once we have implemented the R.I.P.s of leadership.
R - Relationships
Firstly, in order to lead effectively, you need to develop relationships with your team. According to John Maxwell, this is where “you connect with your people”. The most successful leaders understand that relationship building is the foundation of
leadership. According to Maxwell, this is how leaders grow beyond their position and title. He goes on to say that leaders need to LOL (not laugh out loud) but Listen, Observe and Learn in order to develop effective, trusting relationships: • Listen – do this by walking slowly through the crowds and listening to them • Observe – be conscious of where your people are and of what they do, and • Learn – develop an attitude of servitude towards your team members
I - Influence
Leadership is about influence. Once leaders take the time to
develop relationships with theirteams,theydeveloptrust and commitment within the team. Alan Griffiths, MD of Konica Minolta South Africa, in his 10 Leadership Lessons states, “It is important to know what you stand for and believe in, because personal and organisationalvaluesarewhat drive commitment”. Influential leaders understand and accept that they cannot do it alone. “It’s about accepting that leadership is a team sport, so leaders need to do what is best for the team, rather than what is only best for them”. Influential leaders are able to bring about positive change in the behaviour of their teams, which impacts productivity and produces positive business results. The more productive your team is, the more productive you become. As a result, your leadership gains credibility through your productivity (Maxwell).
P - Power
Thirdly leadership is about power. Allleadershippositions start with a position and a title. This position power refers to the capacity that a person has to influence the behaviour of another person, so that they act in accordance with certain wishes.
Leadership power is much more than the use of force, it is about influencing followers to truly WANT to achieve a goal, rather than forcing them to tackle it. An important question that we need to ask ourselves is, “Do I overpower or empower my team?” Jeremie Kubicek, in his article “Sharpen your Axe”, states that “to exercise true and lasting influence, you must empower rather than overpower your team”. According to Kubicek, “empowered teams increase the efficiency and work capacity of their organisations”. Teams with strong and trusting relationships generally produce at higher levels. Great leaders learn how to empower others to achieve while listening,relatingandserving.
" To exercise
trueandlasting influence, you
must empower rather than overpower
your team"
They understand influence and the importance of empowering others. They relinquish certain responsibilities to empower others to achieve more than they could have done for themselves.” By taking the time to develop relationships with your team, you also develop your influence, which allows you to lead using personal power rather than position power. So when the day arrives and it is time to link your date of birth to your date of death with a dash, will you be proud of the legacy that you leave? Will you leave behind a group of people who are better for havingknownyou;peoplewho achieved greatness because you built a lasting and trusting relationship with them, you influenced them to believe in themselves and their potential to be great and you empowered them to be the best that they can be? If you can answer yes to these questions, then you have utilised your dash responsibly and maximised its opportunity you can be proud of both the way that you lived your life and of the legacy that you leave.
WealthWise magazine 21
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month for an employee that either delivers average work, or takes more sick days than theofficehypochondriac.Why not only pay for actual work done, for results, and eliminate the traditional burden of health care, records andpayrollsatthesametime?
Stellar Virtual Assistance, a remote administrative office, wasfoundedin2009,servicing a global market. With an accumulated 10 years experience in the corporate world on an executive level in various fields, we are offering “supplyanddemand”personal assisting for corporate companies and individuals. Virtual assistants have a vested interest in your business. A VA can literally become a partner in your success. The more a VA learns about your business, the more that person can help you reach your goals. Virtual assisting is
not a new concept. Countless successful companies in first world countries make use of Virtual Assistants on a daily basis. Many international clients have appointed us as their ground partner in South Africa. Stellar Virtual Assistance offers a very wide range of services and adds new services, stemming from new (and often outlandish) requeststoitsdailyrepertoire. Business Correspondence, Event Management and Research, as well as Travel Arrangements and Database Management are the most requested services. Gift Research, Party Playlists Compilations and even the reorganising of Hard Drives illustrate that there is simply nothing we cannot do. Contact Stellar Virtual Assistance at +27(0)12 543 9553 or visit www.stellarassistance.co .za.
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MoneyWise
201 2 Market Forecast
-
Outperformance or Wipe-Out? by Paul Stewart
I
t seems that 2011 turned out to be a truly fascinating year. This is especially true if one’s livelihood is derived from managing clients’ investible assets. On reflection, our highlevel 2011 score card at Plexus Asset Management looks pretty good as most factors played out more or less as we had forecast. Was this result dumb luck or genius, I wonder?” The one notable forecast that markedly deviated from Plexus’s expectation was the performance of the South African rand, which was among the weakest currencies in relation to the US dollar over this period. A summary of our 2011 forecasts is as follows: 24 WealthWise magazine
2011 Forecasts • Inflation – rising moderately but will exceed consensus (South African CPI averaged 5,9% for 2011 and 4,6% in 2010)
•
Interest
rates
–
remaining very low in the developed world and small hikes possible in some second tier economies (this view proved to be spot on) • Commodities – will appreciate in value (in USD, the Commodity Research Bureau (CRB) Index actually fell 8,3%, but gold was up 10,1% and Brent crude up 13,1%) • Currencies CAD, AUD, SGD, CHF, ZAR to strengthen vs. USD, EUR (all true except ZAR which fell
18,9% versus USD and 17,2% versus the EUR); USD to outperform EUR (euro depreciated 1,3% vs. the US dollar) • SA bonds – positive real returns (All Bond Index returned 8,8% nominal or 2,9% real)
• SA listed property –
positive but low single digit real returns (SA Property Index returned 8,9% nominal or 3% real) • SA equities – low but positive single digit real returns and we prefer financials (All Share Index returned 2,6% nominal or 3,3% real. Financials delivered 7,4% versus 3,4% and 6,4% for industrials and resources respectively)
Photo: Outperformance or wipeout?
201 2 Forecasts
Looking forward to 2012, I have once again gazed into my crystal ball and made some educated guesses about what the main drivers of the investment world will be, and how asset prices will behave in response to these developments. As a general comment, I believe the economic outcomes for the world are becoming increasingly binary – outperformance or wipeout. The use of new (and increasing) debt levels as a means of addressing the problem of old debt seems... well, absurd. But this is precisely the policy tool that developed world governments (US, UK,
Eurozone and Japan) are using to address their multi pronged problems. These include mountains of national debt, solvency of banks (especially in the Eurozone), deleveraging of consumers and corporate debt and deteriorating demographics. The decision to utilise public funds to restore confidence may yet prove to be sufficient to finally reignite the credit economy and consumer confidence, improve unemployment rates and foster higher GDP growth rates in the G7 nations. If the result is higher growth, this will in turn facilitate higher government tax receipts and gradually
allow budgets to be balanced and debt to be paid down to more normal levels. Conversely, markets may at a point in time – could be 2012 or 2013 – reject these increasingly desperate actions; demand for credit remains muted, European banks are unable to recapitalise fast enough and begin to pop and attempts to stave off deflation fail. In this outcome, all bets are off as to how far into the 2000 andteens the resulting depression may linger. Governments and markets are in a state of “irrational positivity”. The former will continue to push liquidity into markets at any cost and the latter, ever mindful of WealthWise magazine 25
play along because nobody really wants to see ‘game over’ flicker onto the screen. The vested interest of the politics and capital businesses imply that very low interest rates and money printing will prevail until inflation returns. In my mind, notwithstanding the tremendous challenges and risks facing us, a very negative global outcome would not be expected in 2012 provided the state of positivity holds and some gradual economic improvement is observed. Under this base case scenario, a grinding slower growth world with higher inflation rates will prevail. In summary, my 2012 forecasts are: Inflation – will continue to rise at a moderate pace in South Africa and globally and will again exceed market consensus in the year ahead. Inflation protected assets should be accumulated at this time Interest rates – short rates will remain very low in the developed world while small hikes are possible in some second tier economies where growth is good. South Africa will not see a change in short rates in 2012 Commodities – price increases of especially inflation protected assets (oil, precious metals) are likely in 2012, while industrial commoditieswillrecoversome of the ground lost in 2011
26 WealthWise magazine
Currencies – CAD, AUD, SGD, CHF and BRL to continue strengthening vs. USD and EUR. I would expect the ZAR to recover some of the ground it lost in 2011 and trade below ZAR8,00 to the USD level. USD is likely to continue its path of outperformance vs. the EUR Bonds–IexpectSouthAfrican bonds to deliver close to zero percent in real returns. The yield on long bonds will not fall further unless the world implodes. Bond prices will be lowered as small capital losses accrue due to bond yields drifting outward in sympathy with inflation in H2 2012. Foreign demand for SA bonds will fluctuate In terms of global bonds, only highly rated government bonds (US, UK, Germany, Canada, Australia, and Norway) where the yield exceeds the inflation rate (5 to 10 year maturities) should be considered Listed property – After two good years of return from the South African listed property sector, I expect no more than 1% to 2% real returns from this asset class in 2012. Distribution growth will moderate on the back of tight trading conditions and economic headwinds in South Africa South African equities – I expect equities to have a slightly better year in 2012. Interest rates will remain low, valuations in financials and some diversified resources
counters are looking reasonable and the earnings environment should be moderatebutchallenging.The All Share Index could deliver around 3% to 5% in real returns. The one area of risk is in the industrial sector, with a number highly rated and expensivebluechipstocksthat are priced for perfection (SAB Miller, MTN, Shoprite, Naspers, BAT) Global equities are likely to be a mixed bag, with both headwinds(peakearningsand sluggish growth) and tailwinds (very low interest rates). High quality (high dividend yield and low PE) global multi nationals like J&J, Pfizer, IBM and CocaCola should again be on the shopping list, while pricey shares should be avoided. I expect low but positive real returns (in USD) fromglobalequitiesingeneral. Emerging market equities should have a better year in 2012afterthesmacktheytook in 2011. As always, please read these forecasts with a high degree of scepticism. I don’t really have a crystal ball and fortune telling is a mug’s game. They are based upon the data I currently have at my disposal and new information or external events not previously considered may dramatically alter the outcome. I trust you have an excellent 2012 and embrace the changing world we are likely to experience.
MoneyWise
What to Focus on When Investing Offshore by Marius Fenwick
I
nvestors looking for offshore exposure are too focused on topdown issues such as a country’s overall economic and political situation. They forget that even countries with extreme difficulties, like the USA, various European countries and Japan, still have companies producing strong profits. Many investors are consumed withthenegativenewscoming out of developed economies like the USA and Europe. Fund managers, on the other hand, are mostly aware that there is an inverse relationship between equity returns and Gross Domestic Product (GDP). The highest equity returns often come from markets with the lowest GDP and vice versa.
This is because high GDP leads to profitable companies, which leads to increased demand for theirsharesandinflatedprices. It’s important to look at where a company earns its income. Leading Japanese companies sell their products all over the world.
"In an offshore fund, it’s important not to fixate on its geographical spread" The fact that Japan is still recovering from the earthquake and tsunami
earlier last year and has an ageing, frugal population is irrelevant. Japan is probably in as bad a position as the worst European country from a debttoGDP exposure perspective, however, they do have the benefit of their own currency and can print money when required unlike Greece, Italy and Portugal. This takes the focus off Japan even though the country is almost terminally ill from an economic point of view. Various fund managers have identified solid companies in Japan and large amounts of funds are accordingly flowing into the country. Equally, in an offshore fund, it’s important not to fixate on its geographical spread. The fund might have a 60% exposure to the USA, whose WealthWise magazine 27
Photo: In an offshore investment, it is important not to fixate on the location economy is in the doldrums, but only 30% of the overall earnings come from the US market. The fact that many funds are priced in US Dollars is irrelevant. It is purely a pricing currency. A fund that invests in Japan, Europe, China and BRICS (Brazil, Russia, India, China and South Africa) can only report in one currency, quite often USD, and performance of the overall fund will not be materially impacted by currency shifts. The same applies to the Euro and the British pound (GBP). The consensus is that, going forward, growth will emanate from emerging markets. But investors can still invest in bluechip European shares, despite Europe’s economic turmoil, that supplies its goods 28 WealthWise magazine
and services to emerging market countries such as the BRICS and its balance sheet is driven by emerging market demand. Investing offshore continues to be a sound strategy, particularly as there is better value to be found in developed markets than is currently the case on the JSE. However, make sure you’re investing for the right reasons, such as diversification, and with fund managers who focus on companies as opposed to geographical regions. Fear of the Rand devaluing further should only account for around 20% of your decision. In 2008, we learned that the Rand doesn’t only go down. It can appreciate as well, and rapidly. So don’t make
currency your sole reason for taking offshore exposure in your portfolio. One of the other lessons learned post2008 is to be wary of investments that tie you in for a long time, such as certain hedge funds and property funds. If a fund invests in longdated instruments, and the markets tank, you could be stuck. If you need liquidity, and your investment horizon is less than 10 years, be careful. This is not to say that we are advocating switching in and out of funds in response to volatility. When you switch in and out of funds in an effort to time the market, you are more likely to experience substantial losses.
Another lesson for offshore investors is to invest with value managers, who focus on stocks with low valuations. If an asset class is above its longterm average, it’s probably expensive. But if your fund manager invests in value shares, there’s a margin of safety. Diversification between asset classes still remains the ultimate strategy, now more than ever. After 2008, asset classes have changed character and previously uncorrelated assets have become more correlated and previously correlated assets have become uncorrelated. This calls for a different approach than in the past and it is advisable to appoint investment specialists that specialise in strategic asset allocation. There is currently value to be found in offshore commercial property.
However, the problem is occupancy rates. If you invest in commercial property now, you could get a good bargain, but may have to suffer flat or even negative returns for a while. Commercial property only works well if the economy is growing. In conclusion, investors should have an offshore exposure of approximately 30% right now, particularly if they have an investment horizon of more than five years. Stick to the basics, diversify, reduce your expectations for the next five years and don’t change your investment objective. Trust your investment specialist and ride the bad times along with the good. Trying to time the market is the most unreliable strategy and the one most likely to fail.
" Stick to the basics,
diversify,
reduce your
expectations for the next
five years and don’t change your
investment objective"
Photo: Your own offshore paradise WealthWise magazine 29
MoneyWise
A Decade of Difficulty: Fear or Hope for South Africa? by Adrian Saville
S
outh Africa’s economic performance is highly correlated with that of our traditional economic partners, including Britain, Western Europe the US and Japan. Evidence of the extent of this economic interrelatedness follows from the fact that each time Europe has gone into recession in the last two decade, South Africa has followed.
optimism from our traditional trading partners this year. These historically advanced economies remained mired in structural problems that include huge debt mountains intheprivateandpublicsectors; generous social welfare spendingcommitmentsthatare untenable; demographic decay; and fiscal and monetary policies that have proved ineffective in the aftermath of the global financial crisis.
Thus, whilst internal factors – suchasthepoliticallandscape, debatable considerations of nationalisation, currency volatility and stability of electricity supply – will matter to South Africa’s economic performance in 2012, external factors will matter at least as much. Sadly, on the external front, there is not much reason for
We refer to this quagmire of malaise in which the advanced economies find themselves as a PAFTOTY scenario, where the acronym stands for “pissing around for ten or twenty years”. The PAFTOTY scenario borrows from Japan’s experience of the last twenty years, which has seen the economy moribund
30 WealthWise magazine
despite furious stimulatory policy efforts. Amongst others things, Japan’s economic stagnation is explained by the same factors that appear in many other advanced economies today: vast indebtedness, demographic decay and policy inadequacy. At present, 65 percent of the world’s economic footprint is represented by these advanced, but troubled, countries. Thus, as things stand, we are facing a decade or two of “polishing the brass on the Titanic”, effectively going nowhere economically in the advanced world. For those exposed to the South African economy, this is a reason to be worried.
Photo: How will the world economy look like in 2012?
Whilst the economic recovery of the developed world over the last two years has been anaemic, many other economies have seen swift growth. China,IndiaandBrazil – the clear drivers of the emerging economies – grew by 7.5% in 2010 and an estimated further 6.0% in 2011. At this rate of growth, these economies are doubling in size every decade.
economies in 2012, there is a raft of countries which boast excellent fundamentals in six factors which correlate with socioeconomic (rather than economic) welfare.
In this vein, the African economy continues to grow quickly, now having grown faster than Asia in eight of the last ten years. This dynamism in emerging markets gives rise to a second acronym – SINFOOH – which stands for “the sky is not falling on our heads”.
"At present, 65% of the world’s economic footprint is represented by these advanced, but troubled countries"
In spite of the gloomy outlook for many of the advanced
1. A high savings rate. This funds a high rate of
investment in fixed capital that, in turn, translates into economic growth. 2. A favourable and fair demographic structure. If more people are entering the workforce than leaving it, this adds to the nation’s productive capacity and economic welfare. 3. An improvement in the nation’s relative physical health. The state of a population’s wellness, and ongoing improvements in access to healthcare and healthcare infrastructure, lead to further enhancements in socio economic welfare. 4. Rising education levels with improved access to education and the education infrastructure.
WealthWise magazine 31
The more advanced the education a country’s population, the greater its likely rate of economic growth. 5. Improving quality of a country’s institutions and policy, including monetary, fiscal and industrial policy. Transparent policymaking and policy stability contribute as much to improvements in economic welfare as policies themselves. In essence, a transparent and stable policy setting translates into greater investment certainty. 6. Finally, the degree of economic openness. The extent to which the factors of production (goods, services and capital; people and ideas) are able to move freely between nations plays a role in determining growth and
economic performance. There are at least 20 countries which have these factors in abundance, including all five of the BRICS (Brazil, Russia, India, China and South Africa) which represent a combined population of three billion people. But there are others countries, like Peru, Chile, the Philippines, Vietnam, Iraq, Egypt, Nigeria and, most recently, Mongolia that also are able to tick the boxes. What this means is that, with a richness of success factors and proper application, these factors can be processed into rapid socioeconomic advancement. Notably, a region showing signs of improving success factors is subSaharan Africa (SSA). Given this global backdrop, we
Photo: South Africans demand more jobs (hwb.co.za) 32 WealthWise magazine
see some modest tailwinds that have helped the South African economy to achieve reasonable growth in 2011, possibly of the order of 3.0% for the full year. Whilst this is better than many of our advanced counterparts, for South Africa to effectively address the country's structural unemployment problem the economy needs to grow at 10% per annum, far in excess of recent figures and wellabove government’s target of six percent. To move the economy from pedestrian and stale to greater dynamism requires bold policy steps, and vibrant economic partners. The most obvious option in terms of the latter aspect would be for the South African economy to integrate with the SSA region.
In 2000, The Economist ran the nowinfamous cover labelling Africa “The Hopeless Continent”. Since then, however, Africa’s progress has been anything but hopeless. Over the ten years to 2010, Africa’s annual output grew by 4.7%, almost twice as fast as the previous decade and much faster than the global average growth rate of 2.6%. In sum, SSA represents an extraordinary partner to help the South African economy achieve much faster economic growth. The sky is indeed not falling on our heads. Cumulative BRICS growth over past decade totals $12 trillion, equivalent to the size of the US economy. Assuming the same growth rates apply, the BRICS economies would replace Italy ten times or Greece 40 times over the next decade. So what are the implications for South Africa? This country needs to ensure that the six factors listed above are embedded in our society, our economy and our political landscape. We need to be effectively integrated with the rapidlygrowing world economies – not just being among them, but working together with them. We stand on the cusp of 2012 with a new set of policy initiatives launched by the South African government. But in reality we don’t need
new policies. As Demosthenes said 2000 years ago, our three most important needs are “action, action and action”. It is critical that South Africa should avoid slipping into a PAFTOTY state – a risk that we run if we continue toying with policy rather than implementing it.
"For South Africa to effectively address unemployment, the economy needs to grow at 1 0% per annum, far in excess of recent figures and well-above government’s target of 6%"
pipeline, which has one of the highest job multipliers and substantial spillover effects. In this setting, South Africa has an exceptional civil society and a worldclass private sector. So, if I were to be given three wishesforSouthAfricain2012, my list would be simple: “education, education and delivery”. Without education, all else is wasted. We need to start at the very earliest point of education, in the foundation phase, and overhaul the system all the way to Matric. Itmaytake15yearstoachieve, but we will grow a set of world class matriculants who will change the face of South Africa for ever. We have seen countless examples of countries which have used education to rise above their history; countries such as South Korea, Rwanda, Singapore and Vietnam. You may not be able to change your past, but you can change your future.
South Africa has many positives going for it – a successful tourism industry; the homecoming revolution; superb fiscal and monetary policy discipline; vibrant neighbours; and a windfall from the R1 trillion infrastructure spending WealthWise magazine 33
BusinessWise
The Real Purpose of Networking by Denisa Oosthuizen
N
etworking is a highly recommended social tool in business. Business professionals and entrepreneurs network to meet more people, grow their personal network or prospects list and get more business (yes,selling)ormorereferrals. But they’re missing a very important point. People often attend networking events with one question in mind: “what do I gain from this?” or “what’s in it for me?”. Their reasons include getting in contact with other people to randomly collect their business cards and therefore their personal details, delivering their sales pitch or just creating awareness for their company, business, service or product. Some aim to get introduced
34 WealthWise magazine
to other opportunities and maybe meet influential personswhocan“opendoors” for them. Let us honestly admit that we all go through this question in our minds. But before completely dismissing our selfishness in the process of networking, we should acknowledge the role training, coaching or referral programs pose in today’s world and how society promotes networking as the referral heaven (read: more business and more bucks for you). The most successful networkers are not there to sell their stuff, wait for others to pass on them good referrals or collect as many business cards as they can for follow up calls or meetings. They are
networkingtomeetothersand help them first (the rest would follow later). The real selfless purpose of networking is to make other people successful, to create valuable relationships and hence to become yourself moresuccessfulthroughthese relationships. By giving before receiving, you are opening yourself to meaningful relationships. This also shows that you do not network because you need anything from the people you network with. You network because you want to build these valuable relationships before asking or wanting anything from your fellow networkers. Making other persons successful should come genuinely. Since people make time to connect with others,
Networking 101 Join business and community groups that interest you. Consider joining business groups in your industry/field. See what other business people in the same industry or competitors have to say. Join an entrepreneurial network, a coaching or mentoring group. Go study further; enroll in classes on topics of your interest with twofold benefits: learn new skills and meet new people.
Picture: Networking at an event they could spare some time to help others, by sharing free valuable advice drawn from their own experience, making recommendations, offering support and be willing to give something away without expecting much in return. Building a meaningful network requires commitment, patience and willingness to raise a helpful hand. Networking is not about numbers, although a wider network could reach more people, therefore more networking opportunities. Networking should be about reaching out to help the networking community where
you can, returning the favour, providing support and not looking back. In the end, business networking is about cultivating business relationships, not selling or extending your list of customers. Have an honest desire to build business relationship rather than see everyone in the room as a potential customer, while preparing to deliver your sales pitch. Selling is not the focus, but interacting with other business owners in your community and building strong relationships certainly should be.
Stick to a couple of networks and become an active regular member. Don't lose focus by trying to please everyone and every network group out there. Be sincere and interesting. When networking, say what you have to say with meaning. Find a common ground. People open much better when they share common interests – find out what other’s people interests are. Listen. Don’t do all the talking listen carefully to what others have to say (body language included). Collect other people’s information. Once you connected with someone, make sure to get their details or business card and keep in touch/follow up. WealthWise magazine 35
BusinessWise
Heading for the Stratosphere Profile of An Entrepreneur Marco Fonto, Stratum Benefits
M
anaging director of Stratum Benefits, Marco Fonto, founded his company in the face of strong resistancetogapcoverpolicies in the medical insurance sector, because he believed strongly in the value of the product and in the right of society to have access to such cover. Stratum Benefits was launched in 2006 with the specific objective of providing shortfall medical aid that covers the portion of in hospital treatment that is not covered by mainstream medical aid policies. Six years later, the resistance has dissipated and the company is securely established with over 20,000 principal members nationwide.
36 WealthWise magazine
During startup, Fonto was fortunate to secure the backingofgoodunderwriters. Then, with the help of his networkofbrokers,hestarted selling. The cornerstone of Fonto’s sales strategy is a chain of communication that is warm, handson and personal. According to Fonto, medical aid benefits have become so complicated that customers prefer to be guided by a trusted broker. Key to Fonto’s business philosophy is his belief that you should do the right thing. “My word is my bond – I don’t hide behind policy documents. We provide an empathetic service which is rooted in a commitment to doing the right thing,” he says. This includes prompt and reliable service, offering best value products at a fair price, keeping
turnaround times low and always being sensitive to the needs of the customer. He also emphasises the importance of being proactive in sorting out problems. “Don’t argue, say you’resorry,sortitoutquickly, pay it back, don’t stall”. Fonto attributes Stratum’s success to targeting corporate client bases via personal contact with HR managers to reach his target market. Staying ahead with innovative products has also worked for the company. Fonto started with one, then two products, but now offers at least eight differentiated products tailored for a range of requirements. He has also been resilient in coping with adversity. “You have to be prepared to risk everything, every single
" Medical aid
benefits have become so
complicated
that customers prefer to be guided by a
trusted broker" Photo: Marco Fonto provides much needed shortfall medical aid
thing that you have – your car, your home, your savings, all your assets,” he says. There are also ongoing regulatory and compliance issues – the burden is onerous, particularly in the financial services sector. Fonto accepts this as an inevitable part of being in business and is willing to soldier on through it all.
The obstacles became bigger when the business began to grow because he had to upgrade systems and train new staff. “You have to get up to speed very fast and it can be incredibly difficult to keep service levels as good as they were when you were smaller”. Fortunately, at this point, Fonto was able to bring in equity partner Steve Tennant. “Steve has been
great. He provided the capital injection that I needed and he gives me 100% support in how I run the business,” says Fonto. Nevertheless, he adds that Stratum would not be where it is now if they did not invest every penny of their profits into the company. “As long as you want to grow, that is what you have to do. So we don’t indulge in expensive perks or large salaries. And we work very hard, all the time. When you run your own business, you have to be prepared to immerse your life into it. Even when I’m on holiday I’m using the time to think and plan.” Stratum offices are due to open in Cape Town and
Durban and the company now works with over 280 brokers countrywide. Fonto’s next target is to triple Stratum’s principal membership over the next two years. For more information about Marco Fonto and Stratum Benefits, contact Lee Wanless from Trinitas Consulting at +27(0)11 262 2814. Are you a sucesful entrepreneur? Share your story with our readers and inspire others to pursue entrepreneurship! Send your profile or story and a high resolution photo of yourself at editor@wealthwisemag.co .za and watch this space! WealthWise magazine 37
BusinessWise
The 1 8 GAP Marketing Turnover Boost Model Part II
by Johan Mouton
O
n the previous edition we have touched on the important of getting your marketing automated and have the right systems and processes in place in order to boost your marketing efforts. The 18 GAP Marketing Turnover Boost Model does just that. We have identified 18 strategies to drastically improve your marketing efficiencyandresults.Wehave explored the first eight in the previous article, from determining the cost per client to identifying your ideal client. The other 10 strategies are listed as follows: Gap 9: Customer Info. A business is not the capital, buildings, furniture, computers or intellectual
property. A business is their customers.Ifyoudonotbelieve me, then tell your customers not to buy from you. You need to have information on your customers. Gap 10: The Buying and Selling Process. Customers buy. The secret is the business needs to be constantly aware of this cycle. By aligning marketing activities to the buying and selling cycle a business will be able to increase marketing effectiveness. Gap 11: Marketing Matrix. This one factor alone could double your turnover. In essence a matrix is a complex link of common items. In the case of marketing, these items are your products or services. Therefore, it is important to understand the linkages of
your products or services with each other. Gap 12: Making the World a Better Place. Part of a business is the mission and vision of the business. The mission and vision establishes guidelines for decision making and the character of the business. In the vision and mission, it is required to define how the business is making the world a better place. By knowing this and acting on it will motivate staff and inspire people to do business. Gap 13: Continuous Improvement. Without systematic improvement one will not be able to make the major improvements you are looking for in a business. This needs to be part of the daily running of the business. WealthWise magazine 39
Gap 14: Socially Responsible. It is not enough to be only profitable. Business is in a position not to only take from the community but also give back. Social responsibility creates various marketing opportunities. Gap 15: Working on the business. Understanding your business from an outside view gives the business owner a truer picture of reality. This also assists with establishing a business in the right sense of the word. A business is a set of related systems and processes. If the business owner is that systems and processes of the business then in reality it is not a business. The first 15 Gaps are the foundation of your marketing strategies. This foundation needs to be working and in place. The foundation lays out the
structure and processes for all of your marketing efforts.
GAP 1 6: Getting more clients Getting more clients in terms of the model is also a gap. Most businesses focus on getting more clients. Therefore, most businesses are very active in this area. Once your foundation is laid, you will be able to develop client acquisition strategies. These strategies will focus on getting more clients.
GAP 1 7: Clients buy more frequently This is usually a big gap in a business. By closing the gap, you will be able to increase your turnover substantially. There are
various strategies available for businesses to increase the frequency of purchase. Some of the bigger institutions give discounts, coupons and rebates.
GAP 1 8: Clients make bigger purchases
This is also overlooked by most businesses. If your clients start making bigger purchases then the net effect is your turnover will increase. How do you increase the purchase? Bundle products together. This is just one strategy. Another strategy is to upgrade your product or service. For example, a client is interested in a number 5 widget. If the clients purchase the number 10 widget, they get a free magazine.
Figure 1: The four sections of the 18 GAP Marketing Turnover Boost Model
40 WealthWise magazine
The 18 GAP Marketing Turnover Boost Model is based on sound principles and proven marketing strategies. The model comes down to this: By focusing on getting your foundation right, you will be able to develop sound strategies for getting more clients, clients buying more and buying more frequently. I believe that if you focus on working on your business and not in your business, you will be extremely successful. Let us focus now on a couple of exercises and put the 18 GAP Marketing Turnover Boost Model at work.
Exercises
Gap 1: Cost Per Client. It is extremely important to determine the cost to obtain one additional client. This will enable you to develop highly creative marketing strategies that will baffle the competition. Cost per client is fundamental in marketing. This aspects assists with establishing what marketing aspects are working and which are not. Step 1: Complete all the sources from where clients come from. These sources could be marketing activities, referrals, meetings, etc. Step 2: Indicate the number of clients obtain from that source.
Step 3: Complete the cost of that specific source. Step 4: Divide the source cost with the number of clients and fill in cost per client. Step 5: Add the total cost per clients Step 6: Dived the number of sources with the cost per client. See Figure 2 for guidance. Gap 2: Marketing Measurements. For every marketing campaign and marketing activities you require to measure the effectiveness of the campaign. Step 1: List the sources of clients
Figure 2: Determining cost per client in marketing
WealthWise magazine 41
Figure 3: Determining marketing measurements Step 2: Indicate measurement method
the
Step 3: Indicate who will do the measurement Step 4: Indicate feedback is required
when
Step 5: Check success of the various sources See Figure 3 for guidance. Gap 3: Training. There is a lot of power in training.
Most big businesses are using training to develop a competitive advantage. It is important to note that training needs to be formally documented. Also, the training must cover the three aspects of your business (marketing and sales, operations and administration) Step 1: Indicate the type of training Step
2:
Indicate
Figure 4: Determining training measurements
42 WealthWise magazine
the
attendee Step 3: Indicate a follow up date Step 4: Indicate the measurement to be used to determine the improvement See Figure 4 for guidance. Read more similar exercises in the April/May 2012 edition of WealthWise magazine.
BusinessWise
KING III and the Role of IT in Corporate Governance
I
t’s been almost two years since the King III report came into effect and its recommendations have become a benchmark for corporate governance practice in South Africa. While King II helped to entrench the processes and reporting requirements of good governance, companies are now also learning that, to enable a smooth reporting process, they have to get their house in order when it comes to information management. King III draws our attention to this imperative in Chapter 5, Clause 6, which deals with management of information assets: “The board should ensure that information assets are managed effectively.”
"The board should ensure that information assets are managed effectively"
Bennie Kotze, who heads up the Enterprise Content Management (ECM) division at Nokusa Engineering Informatics (NokusaEI), a leading international ECM consulting company with offices in South Africa and Australia, says the following: “Essentially, King III says that an organisation’s information is in itself a company asset.
Thus the company’s directors are accountable for strategically managing and protecting this information asset to extract optimum value, as they should be doing with any other company asset". He explains that this view is the basis of Chapter 5’s focus on information technology (IT). Since IT is the enabler of almost all communication of information in business today, King III emphasises the link between IT and corporate governance. The onus is thus on the company directors to ensure that governance information is supported by efficient and effective records management. “Records are evidence of what you do, the transactions you make WealthWise magazine 43
Photo: Ideally, every business should have an information commitee of senior executives and the decisions you take. Your company records provide a memory for your company and enable a broad reach of transparency,” says Kotze. It all comes down to the basics of having a sound document and records management system in place; this is the bedrock of information management and is fundamental to good business practice.
Morgan Stanley vs Perelman where the New Yorkbased bankcouldnotreliablyproduce the emails that were required for court evidence. In 2005 Morgan Stanley was found to be guilty of obstructing justice and was fined US$1.45 billion to be paid to Perelman. At the time, WTN News commented that the judgement was “a clarion call for revisiting your organisation’s email message retention policies.”
Any inefficiencies in document, content and records management can expose you to potentially costly risks – which is why company directors need to take information management so seriously. Kotze cites the example of
Efficient information management is also a protection against the uncertainty of an unstable world, adds Kotze. For instance, companies worldwide have had to find a way to navigate the rapids of the current economic
44 WealthWise magazine
downturn, most have had to tighten up, consolidate and innovate to stay afloat. All this requires pivotal attention to detail, thus there has to be full sensitivity to what is occurring on the ground. “Detailed information management is fundamental to this process – it can embrace the complexity of minutia and provide a stable and resilient flow of information that will bolster the sustainability of your business". Kotze also cautions that the way in which we are producing information is changing. In the old days structured record systems started with the largest organisations and filtered down to the individual.
Today, with the advance of social media, the reverse is happening: information starts withtheindividualandspreads virtually like wildfire. “It’s become easier to know what your girlfriend of 30 years ago had for supper last night than to find a crucial policy document,” says Kotze. It has become absolutely critical that organisations protect the integrity of their information processes, comply with regulations and ensure the availability and accessibility of information. This brings us back to King III’s recommendations. “Every business should have an information committee of senior executives who audit the information processes and monitor the full lifecycle of information – from creation, to receiving, to retention, to maintaining, to disposal.” Thus, in terms of protecting the information asset, King III instructs that it is the responsibility of the company board to put in place a formal information security management system to ensure the confidentiality, integrity and availability of information, to ensure that company information is adequately protected, and to identify and protect personal and sensitive information according to the relevant laws and regulations. In conclusion, the service provider who supplies an
information management system to a company should be fully cognisant of the governance implications of thistechnology.Boardsshould select a consultant who can; assess their company’s governance functions and compliance requirements, complete a sound needs analysis and advise on the management capabilities and principles that need to be applied, install and implement the appropriate systems, as well as provide the training and support needed for optimum implementation.
" Every business should have an information
committee of
senior executives who audit the
Company directors should be asking themselves whether their repository of information is being managed optimally and should ensure that their technology suppliers fully understand the corporate governance imperative to managetheinformationasset. Bennie Kotze heads up the Enterprise Content Management (ECM) division at Nokusa Engineering Informatics (NokusaEI), a leading international ECM consulting company. Based in South Africa and also operating in Australia, NokusaEI is fully BEE, and consults to more than 170 clients in South Africa and internationally. For more information, contact NokusaEI at +27(0)11 791 1028 or visit www.nokusaei.com.
information
processes and
monitor the full lifecycle of
information – from creation (...) to disposal"
WealthWise magazine 45
CareerWise
Mentorship versus Coaching by Andrew Morton
W
hat is the difference between Mentorship and Coaching?
Mentorship is a trusting relationship between an expert and a staff member within a particular organisation. The staff member (mentee) is selected to grow and develop through expert guidance by the mentor. A Mentorship Programme focuses on onjob experience and also on developing skills for better
performance and leadership. Typical focus areas could include: goalsetting, negotiating, communicating, managing people, handling conflict, assertiveness, time management, delegation, establishing one’s credibility
in a given field and building workplace resilience. Coaching, however, focuses on the attainment of a particular outcome or outcomes as agreedupon between the coach and the client (coachee). Through the coaching process the resources of the client are mobilized in order to achieve the outcome(s) and this processunleashesthetalents, passions, and potential of that client. Coaching is a focused conversation that primarily uses questions and meta questions to get to the heart ofissuesandfacilitateschange and transformation. Coaching is about the transformation of performance, beliefs and values, and meanings and directions.
The (South) African Need for Mentorship In the (South) African context we have many managers and executives who have been appointed to a position, but do not have the experience or knowhow to cope with the daytoday requirements of the job. As more and more experienced executives are getting closer to retirement, it is critical that business finds a vehicle to capture all the years of knowledge and experience before they leave the workforce. Many of these executives have learnt the hard way and know the tricks of the trade (what works and what not). Although these WealthWise magazine 47
Photo: Mentor and mentee executives are not trained coaches, they can assist potential leaders who do not have access to coaching to develop their potential in this area. Wellknown international author Myles Munroe states in his latest book “Passing it On” that success is not measured by the Division or Company you are building but in the Successors you are leaving behind. He reminds us that the greatest act of leadership is mentoring: “The most
48 WealthWise magazine
valuable goal of leadership is not to succeed in the present, but to secure the future. Measure your success by the success of the successors.” Leaving successful successors behind is currently one of (South) Africa’s biggest business risks and one that needs to be addressed as a strategic project by all businesses. Proactive businesses introduce Mentorship Programmes where Mentors are prepared for this very
important role and supported through the mentoring process. History has proven that mentees who participated in a successful Mentorship Programmes are inclined to volunteer to become mentors in future. The reason for this is twofold: Firstly they understand the value of being mentored, and secondly, through mentoring others they get recognition for his/her knowledge and experience.
Benefits of a Mentorship Programme A mentorship programme has various benefits: • Cost effective development of company specific skills; • Less experienced people can become productive quickly; • Costly mistakes can be avoided if mentors point them out proactively; • The organisation enjoys better communication through its different layers; • Healthy networks and friendships are formed which lead to better cooperation; • Good staff can be retained; • Specific target groups can be identified and developed at a fast pace; and • It can help individuals overcome their reluctance to change.
Benefits for mentors include: • Personal satisfaction of being role models; • Status in the company is enhanced, making them more valuable; and • Own skills are strengthened by the process of mentoring others. Benefits for mentees include: • Get a career head start; •Strengthsarerecognisedand affirmed and they are helped to deal with their weaknesses; • Reach higher levels of achievement, which leads to greater confidence and improved selfimage; • Made aware of pitfalls and therefore avoids making mistakes that could hold them back; and • Instead of being focused merely on their own function, they gain a broad perspective of the organisation as a whole.
It has been shown that everyone who makes it big has a Mentor, Coach or both. For more information on mentoring or assistance in implementing a Mentorship Programme, contact Andrew Morton, Managing Consultant at The HR Hub, at +27(0)11 475 8915, email andrew@thehrhub.co.za or visit the website www.thehrhub.co.za.
Mentorship Africa
in
South
www.comensa.org.za www.mentors.co.za www.mentoring4success. co.za www.bwasa.co.za/mento ring
Photo: Want to become a mentor? Join COMENSA, Coaches and Mentors of South Africa (comensa.org.za)
WealthWise magazine 49
CareerWise
The Manager as Mediator
Dealing with Interpersonal Conflict in the Workplace by Hendrien van Zyl
T
he workplace is a productive breeding ground for interpersonal conflict.Conflictcan,however, assist individuals and organisationsinimplementing improvements in the workplace and even have a positive impact on productivity. But, if it goes unresolved, it could have a very negative impact resulting in unhappiness, depression, aggression, emotional and physical withdrawal or even resignations.
On an organisational level the impact is seen in low morale, low productivity, wasted time and resources, lost customers and in some cases and litigation. Many people try to avoid conflict, but conflict should be viewed as a normal and 50 WealthWise magazine
natural part of your work life, stimulating creativity. In this article we will look at a process through which a Manager or Team Leader can mediate conflict between two members of his/her team at work. Are you harbouring feelings of resentment? Are you perhaps familiar with feelings/thoughts similar to: • “Let them fight it out themselves. It’s not my responsibility to sort it out for them.” • "I have better things to do with my time than to babysit these immature people!” •"Well,ifyouignoretheconflict for long enough it eventually goes away?" • “There will always be conflict in a workplace. Just learn to live with it.”
• “Everyone should fight their own battles, and that one is not mine.” and/or • “I don’t like conflict. I’m no good at it in any case.” If you share some of the sentiments expressed in the abovementioned quotations, you might want to reassess the importance of your role as mediator as the Manager of yourteam.Youareresponsible torecogniseandaddressthose issues that may result in conflict in your team and the organisation.
Identify the source of conflict
To manage conflict, you need to establish the origin, which could be from various sources, including: 1. Team members are not
Photo: Conflict in the workplace
clear about their responsibilities. This results in a situation where they disagreeaboutdecisionsmade or actions taken in unclear areas. Susan says John should have done the particular job, but John says it is not on his job description!
2. Competition for limited resources. Every organisation has limited resources available and every Manager and employee is competing for the same pool of limited resources like: • Time • Money • Space • Materials • Supplies; and • Equipment.
This may also include time with the busy Manager, a greater portion of the budget, office space, the new laptop allocated to the department – the list is almost endless. 3. A clash of interest is another very common source of conflict. We have all been in situations where our personal goals are in conflict with what the organisation expects, e.g. sacrificing an important family dinner to meet an important deadline at work or performing some task that is in the long term interest of the employer, but does not necessarily contribute to your personal career development.
Take preventative measures
Preventing workplace through:
conflict in the is possible
1. Open communication 2. Respect 3. Trust 4. Appreciating diversity and competence in interpersonal skills. Investing in the development of effective communication and interpersonal relationship skills is important in any workplace. Despite such initiatives, conflict still occurs in teams, so let’s provide some guidelines on how to mediate the conflict between two team members. WealthWise magazine 51
Work towards three mediation outcomes
Outcome one: Solve businessrelated problems. Stay focused on the future and how to improve performance. Outcome two: Establish constructive communication between parties. Conflict often results in a breakdown in communication and built up emotions. Outcome three: Restore trust in relationships. No mediation conversation can fully achieve this goal. It could, however, help the people involved to start listening to each other with more understanding and empathy – the foundation for effective relationships.
Five steps in the mediation process
In preparation of a mediation conversation, read through the steps described next prior to facilitating the discussion with the parties at the agreed time and place: Step one: Opening. Explain the process and ask for cooperation. Step two: Information sharing. Allow each person to share their perspective of the situation. Summarise 52 WealthWise magazine
what they said to ensure everyone has the same understanding. Step three: Exchange and negotiate. Ask each person to speak directly to the other party. Guide them to start talking about their common goal. Let them share their true feelings and the actual issue of the dispute. Encourage them to look at each other and not at you. Towards the end of this discussion you need to facilitate a transition to an agreement. They need to generate some possible options for an agreement – not you!
" Investing in the development of effective
communication and
interpersonal
relationship skills is important in
any workplace" Step four: Closing. Summarise what happened and together formulate the agreement that has been
reached. Conflict often remains unresolved because people think they have understood the agreement, but then in reality nothing is implemented because there was still some misunderstanding. The agreement should answer the following questions: • Who? • What? • When? • What if? Step five: Followup. At the end of the discussion you need to agree on the date and time that you will be meeting for a followup discussion. At this followup discussion you will check on progress and acknowledge success. This step is often neglected and if parties do not follow through on their mutual agreement, the conflict may only get worse. Even if the conflict is fully resolved by the time of the scheduled follow up meeting, you still need to meet to confirm and allow them to give the positive feedback and acknowledge success. Always be prepared to facilitate another mediation conversation (following the steps described above), in case it becomes clear during the followup discussion that the parties did not keep their respective commitments.
Mediation discussion tips
During the conversation, remind yourself and the other parties that: • They must stay focused on the facts and not allow personal accusations • Every assertion should be backed up by an example • Let them describe what they want from the other person; but also state what they are prepared to give • If they have trouble listening, force them to summarise what the other person said before they respond • Keep the issue and the resolution private – do not discuss it with others • Take responsibility for your part of the problem. You may even ask: “What about the work situation is
contributing to this situation?” • In the case of major conflict situations, this conversation may take up to half a day to conclude – be prepared for this • When the parties get stuck or the situation gets out of hand, you may want to take a break. Emphasise that it is their responsibility to resolve the situation amicably, as adults. Also let them know that if they fail to do so you may be forced to take disciplinary action against both of them. The fact that individuals in organisations have to depend on each other to achieve goals and results means that there are many opportunities for conflict to arise. If the conflict is not addressed you run the risk
of driving the conflict underground and we’ve all experienced this situation: gossip, corridor talk, forming of factions, etc. Whether the conflict is about a specific issue or a so called personalitybased conflict – it has to be resolved. Regardless of how challenging this may seem, this responsibility comes with the job of being a manager. You are responsible for creating a working environment in which your team can thrive and achieve and settling disagreements between team members is simply part of the job. Hendrien Van Zyl is learning solutions consultant at Optima training. For more information visit www.optima.mu.
Picture: Mediation WealthWise magazine 53
Agenda Lifestyle
Mabalingwe Nature Reserve A world of African bush and fun by Denisa Oosthuizen
J
ust 28km out of Bela Bela , less than two hours drive from South Africa’s busiest metropolis of Johannesburg and Pretoria, Mabalingwe Nature Reserve makes for a reviving gateway inthemidstoftheAfricanbush. Far more accessible for Gautengers than the iconic Kruger Park, the malariafree reserve is Africa’s Big 5 territory and surprisingly extensive and rich in bird and animallife,comprisingofmore than 12 500 ha of unspoilt bushveld, splendid views of theWaterbergMountainsand no fewer than six inter connected dams. My travel partner and I were only aware of the reserve’s extensive territory whilst following 54 WealthWise magazine
the map's indications to one of its twelve camps. Although on a smaller scale than Kruger, Mabalingwe Nature Reserve is in itself a mini universe catering for all tastes, from family holiday ers to couples looking for a serene escape and nature lovers. Three decades ago, part of the now vast bushveld of Mabalingwe was home to a maize and game farm, Boschpoort, belonging to Wessels family. Luckily for the thousands of travelers who call Mabalingwe a home away from home, the family started to develop the holiday resort and nature reserve in 1987, expanding to include chalets and lodges and a variety of game: Kudu, Impala, rhino, elephants,
Sable antelope, Tsessebe, buffalo and lions among others. We stayed in Tlou camp’s twin sleeper lodges, not far from the main reception and the restaurant and bar facilities, a good drive from the main gate. These units are stylish and comfortable, with two standard beds, en suite bathroom, separate toilet and a lounge area with television and tea and coffee facilities. The rooms are cozy and private and ideal for a romantic escape in the bushveld. The twin sleeper lodges are not selfcatering and meals are served at the restaurant. Breakfast and dinner are included in the accommodation package, offering peace of mind.
Photo: The entrance to Mabalingwe Nature Reserve The proximity to the main restaurant,bar,poolarea,farm shop, games room and other recreational facilities makes Tlou lodge a good option for both relaxation and fun. The main Tlou Lodge is a luxury ensuite, six sleeper self catering lodge located next to the Tlou Conference Centre and the wedding chapel, ideal for families or groups. Other similar options include six bed selfcatering chalets in Ingwe, Kubu, Phiri and Kwalata camps, consisting of three ensuite bedrooms, fully equipped kitchen and patio and braai facilities. Ingwe and Kwalata camps also have four bed chalets with two bathrooms.
For caravan and camping fans, there is a separate caravan park accessible just minutes after entering the reserve, with a kids’ playground and shop on offer. The liquor store is located here, an enough reason to visit the caravan park area, which was quite busy during schools holiday (if you want peace and quiet, it is best to avoid it during high season and holidays).
duration of their stay.
Once settled in, there is plenty to explore and discover at Mabalingwe. Visitors are given a map, a game drives and activities list plus an entertainment program available during the
The entertainment and games programme is packed with children’s pool games, competitions, bingo and movie nights. If you have children, this is the perfect holiday for them.
We decided in favour of complete relaxation, opting for nature walks, game drives and swimming. For the more active types, there is plenty to go around: paintball, archery, abseiling, puttputt, squash, tennis and volleyball (enough reasons to return to Mabalingwe), all reasonably priced (R50 per person on average).
WealthWise magazine 55
Photo: Twin sleeper lodge in Tlou camp
We spent the first day exploring the bushveld on route to Kalahari Oasis Pub, a famous bar and the relic of a genuine television film set. It is a faraway, popular destination venue which hosts events and private functions on request. A trip to Kalahari Oasis Pub is a must. Don’t miss the chance to have a cold beer in the pub that is probably the most secluded in the country!
Kalahari Oasis Pub is situated next to Kalahari Bush Camp, consisting of just five tents connected with a wooden walkway. Designed for groups and families, the tents are self catering, but luxurious enough for a very 56 WealthWise magazine
comfortable stay, each with twin beds, ensuite bathroom, fridge and coffee/tea station. There is a fully equipped kitchen, splash pool and lapa to share. A more adventurous accommodation option is the Kalahari Tent Camp, with five dome tents, lighting included, but no electricity. Kitchen and ablution facilities are provided. There are also 4x4 stands without any facilities. For ultimate privacy and great bush experience, the fully equipped Pitsi Bush Camp caters for only ten people and has its own splash pool. In our second day at Mabalingwe, we discovered
we are not the only visitors around the lodge, as vervet monkeys and meerkats cheerfully played in the back gardens. After a delicious buffet breakfast at the restaurant, we had a refreshing swim in the cold rock pool with beautiful views over one of the dams. There are no less than six dams at Mabalingwe, beginning from Tlou Lodge up to Tswene, Kubu and Phiri camps, offering splendid views for most visitors. In our third and last day at Mabalingwe, we ended our holiday by touring around these dams and visiting the other camps, some very secluded, but each with its own private pools and entertainment.
Photos: On the way to Kalahari Oasis Pub (above) and the famous bar (below)
WealthWise magazine 57
Game drives at Mabalingwe are a must. Game drives are available from Monday to Sunday, with night drives and bird drives only Tuesday and Saturday nights. Lion feeding and bush cat drives are only scheduled for Sunday and Wednesday mornings. The reserve is also providing walk about drives, horse riding safaris and pensioner game drives. All game drives are highly affordable (R100 per adult on average). We chose a Sunset Drive Special to end our second day, with sundowners included. It was an
enchanting experience and an opportunity to see some of the rare Sable, Nyala and Tsessebe antelopes, a rhino calf and its mother, as well as a chameleon, cleverly spotted on a branch by our young, but very informative guide. We were lucky enough to spot the reserve’s lion residents in the next morning’s bush cat drive. Only available Wednesday and Sundays, after the lion feeding which takes place early at 7am, the bush at drive takes guests to the lion camp on the reserve, a spacious enclosure where six
lions roam freely. This is a wonderful opportunity to get up close and personal with this majestic animals, although a double electrified fence might pose some problems to those who want to take a perfect picture of Simba, the resident white lion. We were lucky to spot three lionesses close to the fence and learn more about their habits and life in the reserve. The lion project is purely educational. After seeing the lions for half an hour, guests continue their morning game drive. This time we have also encountered the reserve’s
Photo: The reserve's white lion, Simba, greets the visitors 58 WealthWise magazine
Photo: View of the dam from the rock pool deck
Photo: Scenic views from the restaurant deck WealthWise magazine 59
rhino antipoaching unit at work, tracking the mother rhino and its calf. Rhino poaching is a serious problem in South Africa and the reserve management has enacted its own patrol unit to make sure all animals are safe from danger. It is a welcome addition to the reserve. On our way back to Tlou camp, we were greeted with unspoilt views of the reserve and its mountains. After a quick lunch at the ladies’ bar, complete with refreshing cocktails, we had a wonderful time at the hot pool and undercover Jacuzzi,
both situated in Ingwe camp, just below the restaurant. It was the perfect time to end our sun bathing before saying goodbye to the lodge, ready to take the scenic drive along the reserve’s dams and return home.
information, contact Mabalingwe Nature Reserve at +27(0)14 736 9000, email info@mabalingwe.co.za or visit www.mabalingwe.co.za.
Mabalingwe Nature Reserve is located 28 km out of Bela Bela, on the R516 road to Rooiberg/Thabazimi Road. Accommodation in Tlou twin sleeper lodges (two people) is R1330 per room per night and includes breakfast and dinner. Drinks are excluded.
WealthWise magazine and Mabalingwe Nature Reserve is offering a wonderful holiday for two – see next page for your chance to win! To enter the competition, subscribe to WealthWise magazine at no cost: http://wealthwisemag.co m/wealthwise/subscribe
For bookings and more
Subscribe and win!
Photo: With secluded camps and unspoilt bush, Mabalingwe Nature Reserve is the perfect getaway
For more travel reviews, go to www.wealthwisemag.com. 60 WealthWise magazine
Books
Barbara Nussbaum, Sudhanshu Palsule and Velaphi Mkhize, Personal Growth African Style Penguin, R260,00
P
ersonal Growth African Style brings a different approach to leadership based on the African humanity values of uBuntu and iSintu. The authors, highly qualified in the fields of coaching, leadership and African beliefs, explore the importance of a communally expressed, inspirational and visionary leadership for a more human world. Inspired by the master’s students enrolled in the Master’s of Social and Transformation Programme at CIDA City Campus in Johannesburg, South Africa, the book focuses on personal 62 WealthWise magazine
growth and expanding one’s selfawareness, introducing the five pillar model of learning framework Being, Becoming, Knowing, Doing, Living and Learning Together. Besides delivering a compelling argument and vision for a new kind of leadership Africa and the world desperately need, the book is in itself a practical guide with a variety of readings, tools and exercises that invite the reader to selfdiscovery and self awareness. Children, students, educators, individuals or groups will find the exercises intriguing and
personal, providing a fascinating journey into the depths of their human beings, their knowledge and values. Personal Growth, African Style isadifferentanduniquewriting on alternative leadership based on the theory and practice of African humanity and a much needed guide to connect to authentic self and drive change in the world. Read an interview with author Barbara Nussbaum on page 10.
Richard Branson, Screw Business as Usual Random House Struik, R215,00
Launched in December last year, Richard Branson’s latest book, “Screw Business as Usual”, has a simple, but tremendously important (and often neglected) message: being in business and doing business for the greater good of humankind. Drawing from projects developed by his nonprofit foundation, Virgin Unite, on social and environmental issues, as well as dozen example of businesses that have radically changed the way they see leadership and sustainability today, the book shares Branson’s vision for a new way of doing business, moving the focus from profit driven organizations to people, communities and the planet. In “Back To Work”, former US president Bill Clinton takes an honest look at the various ways to address the worlds’ current economic challenges and the future of the United States. Structured in two parts, “Where we are” and “What we can do”, the book aims to offer a plan to get America “back into the future
Branson talks about Capitalism 24902 (the number stands for the circumference of the Earth), a new world of capitalism in which every person has the responsibility to protect and serve our global village. With plenty stories, examples and case studies, the global entrepreneur shows how easy is for entrepreneurs, business owners and corporations to do business in a creative and fun way, by solving major problems and helping communities grow worldwide. A wonderful source of ideas and success stories, “Screw Business as Usual” is an essential reading for entrepreneurs who are starting a business or are
looking at expanding their businesses in the 21st century global village. Branson’s latest writing is his most inspiring yet. The international entrepreneur, adventure and icon is best known for its autobiography , “Losing My Virginity” and inspirational business books “Business Stripped Bare”, “Screw It, Let’s Do It” and “Reach for the Skies”.
Bill Clinton, Back to Work Why We Need Smart Government For a Strong Economy Random House Struik, R215,00
WealthWise magazine 63
Clinton also gives a fair and accurate portrait of the state of the economy since Republican Ronald Reagan’s presidency to Obama’s democratic rule, pleading for the need of a strong government and a stronger economy.
business”, by investigating and giving recommendations on how to reduce the country’s debt, increase bank lending and corporate investment, create employment and more businesses and put the emphasis on greener technologies for a better future.
The former president’s view on the preceding three decades of “antigovernment” is wonderfully argumented, as well as the comparisons with America’s past and its worldwide competition represented by faster developing and emerging countries. The book ends with 46 recommendations to confront the financial economic crisis and restore America’s financial stability, balanced growth, shared prosperity and investments in a brighter future.
Max du Preez, The Rough Guide to Nelson Mandela Penguin Books, R124,00
Note: All reviews are compiled and edited by Denisa Oosthuizen, except the review for Max du Preez, The Rough Guide to Nelson Mandela, which was written by Afrika Mdolomba. 64 WealthWise magazine
Although Clinton’s views are directed to his country and its welfare, it is easy to extrapolate to other countries faced with similar problems such as financial debt and high levels of unemployment, which are also predominant in African countries. Clinton has delivered a frank and honest reading, with enough good arguments and examples to intrigue every reader, American or otherwise. The ideas, arguments and processes described in his book could easily find its applicability beyond American borders. Bill Clinton served as the 42nd President of the United States from 1993 to 2001. His previous titles include “Between Hope and History”, “Giving” and “My life”.
Launched in November 2011, “The Rough Guide to Nelson Mandela” adds to a heap of books on one of the world’s most inspirational icon, Nelson Mandela. Max du Preez, a veteran journalist, broadcaster and political commentator and one of South Africa’s foremost historical and political journalists, writes about Mandela’s inspirational life with an objective eye, capturing the political scene of the past decades in South Africa. The reader is introduced to Mandela’s journey from his early days as a young Xhosa boy in rural Eastern Cape, South Africa to his imprisonment as leader of apartheidopposed black party ANC and his triumphant release after 27 years, followed by his elections in 1994, when he became the first black president of SA. The book touches on Mandela’s origins, education, his personal life
and involvement in politics, also providing interesting insights in the lives of key allies of the antiapartheid struggle like Walter Sisulu and Oliver Tambo. Distressed marriages, divorces and breakups are not forgotten either.
behind by Mandela, where he is compared to icons like King Moshoeshoe of the Basotho Nation (now Lesotho). Finally, a list of books and films about Mandela is provided, with some useful websites as well.
In one of the most evocative chapters, Du Preez descriptively writes about life on Robben Island. Isolated from the world, Mandela and his fellow prisoners suffered extreme oppression, facing the harsh working and living conditions.
Detailed information on how to visit important sites like Robben Island, The Nelson Mandela Museum and his family home in Soweto is also provided in the book.
It was there where Mandela encountered constant verbal abuse from white prison warders. Such details, as many others captured in the book, give a full picture of the oppression faced by Mandela and its people. Du Preez also writes about the ordeal Mandela faced when his mother and child passed away while he was in prison.
“The Rough Guide to Nelson Mandela” is a well structured, complete guide with updated insights into the life of a man who opposed an oppressive apartheid system and fought for the liberation of African people. A mustread for all Africans and nonAfricans, Max du Preez’s latest book is a compelling, fascinating read, going beyond the political roots explored in most of du Preez’s literature.
The book closes on the reflections of the legacy left
Photos: Mandela in prison on Robben Island
WealthWise magazine 65
Events
February/March events in South Africa
Photo: Design Indaba Expo 2012 features creative and quality design
Conferences and Expos
Gauteng Homemakers Expo
When: 23 to 26 February Where: CocaCola Dome, Northgate, JHB Now in its 19th year, the popular Homemakers Expo showcases the best in home lifestyle and home improvement, decor and accesories highlights, green trends, tips and inspiration workshops. Visit www.homemakersonline. co.za for more information. 66 WealthWise magazine
HobbyX Johannesburg When: 1 to 4 March Where: CocaCola JHB
Dome,
HobbyX is the largest showcase for creative craft supplies, ideas and projects in Africa. Go to www.hobbyx.co.za to read more.
Design Indaba Expo and Conference 2012 When: 29 February to March 2012 Where: Cape Town ICC
4
Design Indaba is an allin one creative stop for local creative design, including advertising, architecture, craft, décor, film, fashion, graphic design, interior design and more. Explore www.designindaba.com to find out more.
World Conference Exhibition
Africa and
When: 1215 March Where: Sandton Convention Centre, JHB A series of colocated conferences and exhibitions,
Photos: World Africa Conferences (www.terrapinn.com)
including Cards & Payments, Mobile Money, Retail, as well as Power & Electricity and other related topics. See www.terrapinn.com for information.
Corporate Investment Golaganyang Conference
social (CSI)
When: 14 to 15 March Where: Potchefstroom CSI GOLAGANYANG is a two day conference with the aim to provide a platform where corporate organisations, government departments, nonprofit institutions as well as community based organisations from different sectors can be united with the purpose to apply Corporate Social Investment and Social Development funds effectively. For more information visit www.csi golaganyang.co.za.
Decorex Trends Tastes Durban When: 21 to 25 March
&
Where: Durban Centre, Durban
Exhibition
Decorex SA displays the finest in décor and design, kitchen and bathrooms, green living and delicious food. www.decorex.co.za
The Cape Show
Getaway
When: 2325 March Where: Lourensford Estate, Cape Town
Wine
The leading biannualy travel and outdoor show in Africa for twenty years, Getaway Show delights its visitors with interactive and informative exhibits, action and adventure, simulators and a kiddies area. Go to www.getaway.co.za.
My Business Conference & Expo Joburg When: 29 March Where: Gallagher Convention Centre, Johannesburg Brought
by
the
Small Business Chamber (NSBC), the 4th annual My Business Expo welcomes entrepreneurs, small business owners and all those thinking of starting a business. Expect innovative business solutions, new trends, business opportunities and ideas and world class seminars. Visit www.mybizexpo.co.za.
Shows and Events
Dance 2012
Umbrella
When: 17 February March Where: Johannesburg
to
4
Relish in wonderful contemporary dance and writing workshops and watch the best South African choreographers at play. Visit www.danceumbrella.co.za for details or book through www.computicket.com.
National WealthWise magazine 67
Last Word
One Year of WealthWise magazine
H
appy Birthday WealthWise magazine! One year ago, February 2011, our digital publication was born out of an innovative concept of inspiring and educating South Africans (and by extension Africa) to live a wealthier life. Since then, WealthWise magazine has seen eleven editions go live and evolved into a now bi足 monthly publication with over 30.000 readers since its beginnings.
We would like to thank all our readers and clients for supporting WealthWise magazine to enter its second year of publishing.
Denisa Oosthuizen
Publisher WealthWise magazine
68 WealthWise magazine
In next edition
April/May 201 2 Career Special Issue
P
ut your working shoes on for our careerspecialissue!
We discuss everything from employee motivation to monitoring absenteeism and Facebook at the office. Thinking of starting a career as a trader? We have tips, advice and the best books to start with!
Don't miss our next issue, out on 1 0 April! WealthWise magazine 69