Transcript Document

No of Employees
Transformation strategy, a business case
1700’s
Time
Your Customer
“who is going to be your customer in the next 5 – 10 years”. Leading on from this, you
need to answer “what action needs to be taken that will help you understand this future
customer and what they value?”
Robin Woolley
Page 1
Transformation strategy, the process
The roles in the guiding
BEE team:
–
–
–
–
–
–
project manager
boundary spanner
gate keeper
sponsor
champion.
functional roles
Hearts
BEE Info
BEE Strategy
Minds
BEE team
Employee dialogue
Strategic actions
Scorecard
30 day review
Robin Woolley
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7Ps for business model analysis & design
What beliefs guide us?
What do we offer,
what is our
“difference,” and why
does it matter?
PHILOSOPHIES
PRODUCTS
POSITIONING
PURPOSE
Who do we
employ and how
do we manage
them?
Who is our customer
and how do we want to
be perceived?
PEOPLE
Why do we exist?
PARTNERS
PROCESSES
Who will help us
reach our goals,
and how do we manage
these relationships?
What do we do
and how do we do it?
Your Business
Given the purpose and nature of your business, “what actions can
you conceive that will enable transformation?” “given who I am,
Robin Woolley
how can I help transformation?”
Source: Tony Manning
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Transformation strategy, the First Principles
VALUE
PHILOSOPHIES
PRODUCTS
POSITIONING
FOCUS
PURPOSE
PEOPLE
PARTNERS
PROCESSES
COSTS
COMPETITIVENESS
Robin Woolley
Source: Tony Manning
Page 4
Transformation strategy , an example……
“This is a very simple business.
When we complicate it we really
mess things up.”
Roberto Goizueta, Chairman Coca-Cola Company 1981-1997
ACCEPTABILITY
To be the
drink of choice
AFFORDABILITY
AVAILABILITY
Robin Woolley
Source: Tony Manning
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Social Investment Weight 10%
GOALS
•Involving the full organisation
•Strategic investment
ACTIONS
1.
x3
2.
x3
3.
x3
•Collaboration and Partnerships
PURPOSE
•Exposing your brand to future clients
•Building future employees / suppliers
Scorecard % EBIT, target 1%
GOALS
ACTIONS
GOALS
ACTIONS
1.
x3
1.
x3
2.
x3
2.
x3
3.
X3
3.
x3
•Health, education, poverty alleviation, community development
•Black beneficiaries
--- Cost to company
•Capture a paper trail
Robin Woolley
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Enterprise Development: weight 10%
GOALS
•Supplier support - development
•Strategic investment – related value
offerings
•Retention strategy
•Courtship? – joint venturing
•Collaboration
Scorecard:
ACTIONS
1.
x3
2.
x3
3.
x3
PURPOSE
GOALS
ACTIONS
GOALS
ACTIONS
1.
x3
1.
x3
2.
x3
2.
x3
3.
X3
3.
x3
% EBIT target 1%
•Both non-monetary and monetary investment
•Capture a paper trail
Robin Woolley
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Procurement
Action
Resulting category
Discretionary / non-discretionary
Build an explanatory table
Size: Micro, S,M,L
White – intent to change
Key suppliers
Obviously white
Group large suppliers,
they are self regulating
Apply different criterion for
small and micro enterprises
Monitor & hold accountable
Find alternative supply
White – no intent to change
BEE
credentials
Audit
Enterprise development targets?
Support mechanisms
Collect ratings
Robin Woolley
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Skills development & Learnerships - weight 20%
GOALS
•Strategic investment
ACTIONS
1.
x3
2.
x3
3.
x3
•Workplace skills plan
•Mentoring
PURPOSE
•Building future owners?
Scorecard
GOALS
% payroll – target 3%
ACTIONS
GOALS
ACTIONS
1.
x3
1.
x3
2.
x3
2.
x3
3.
X3
3.
x3
•Includes quantifiable on the job training
•Black beneficiaries
--- Cost to company
•Capture a paper trail
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Ownership options
• Organic:
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–
–
–
GOALS
Employee share options
Employee owned trusts
Warehousing
Direct shareholding
• Mixed:
– Direct shareholding
– Attracting talent
• Merger / Acquisition:[74 % risks?]
ACTIONS
1.
x3
2.
x3
3.
x3
PURPOSE
GOALS
ACTIONS
GOALS
ACTIONS
1.
x3
1.
x3
2.
x3
2.
x3
3.
X3
3.
x3
– BEE Group
– Collectives
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BEE Partner Selection
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Context of BEE partner selection
• Develop a clear Strategy
• Generally looking for political connections
– ex-MP, ex-Ministers, ex-DGs etc
• Define specific role for Partner
• Manage selection process in-house. [vs dating agency]
• Sign contracts
• Create break-up clause.
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Issues in choosing BEE partner (1)
• What is the track record of the BEE Partner?
– Look at individuals – skills and available?
– Look at team
– Review previous transactions and understand reasons for
success/failure
• What specific skills are in the BEE Partner?
– compatible with your needs?
– Are the needs around lobbying or direct operational involvement?
– Are there specialist skills - accessible?
• What is the chemistry between BEE partner and yourself like?
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Issues in choosing BEE partner (2)
• What other businesses is BEE partner involved in
– Are these businesses compatible with your own?
– Do the businesses demonstrate sound business
acumen?
– Do these businesses require a great deal of attention?
– Is BEE partner lead player in its other businesses?
– What is the relative value of other businesses
compared to yours?
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Cautionary tales
• Interrogate BEE partner dominated by individual without
proper succession planning or professional support
– BEEG dependant on individual personalities show
weak business model and unsustainable.
• Treat aggressive targets for new business flows with
caution
• Someone in the organisation must accept responsibility
for successful BEE transaction.
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• The Step by Step Toolkit
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Step by Step Plan - BEE-TOOLKIT
Planning & Strategic Phase:
1. Define your BEE objective.
2. Align your business strategy with your BEE
strategy.
2. Reach consensus on:
– Which companies / departments have to be
included in the BEE-transaction?
– Should employees or outside shareholders be
involved with the transaction?
3. Develop and implement corporate
governance principles to accommodate a
BEE shareholder.
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Step by Step - Toolkit
4. strategy to cover all the elements of the score
card.
5. Do realistic valuations of the entities that form
part of the BEE transaction.
6. consultation with employees in order to avoid
perceptions.
7. Compile a business plan in order to arrange
finance.
8. Lodge the BEE transaction with different financial
institutions and assist the BEE partners with the
application for finance.
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Step By Step Plan - BEE-TOOLKIT
Implementation Phase:
10.Draft appropriate shareholders agreements, employment
contracts, trust deeds etc.
11.Start with the implementation of the transaction and the
elements on the score card against a set of benchmarks.
Appoint a BEE Project Leader.
12. Use the new BEE status in order to increase the market
share by way of strategic and media announcements.
Monitoring Phase:
13. Update the BEE strategy and score card on a continuous
basis.
14. Subject your company to an independent rating?
Robin Woolley
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