INDEX

Mpowered Studies
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Mpowered strives to bring you innovative ways to do business. We accomplish this by using the best tools available. Here on the studies page we have provided some interesting infographics, white papers and real-world case studies.

the Internet is Growing, are you? | Infographics
bee employment statistics | infographics

Introduction

As we are all aware Broad-Based Black Economic Empowerment (hereafter B-BBEE) is in a constant process of change; be it points, targets, calculations or even the Codes of Good Practice1 itself. Most companies want to know: "How do we keep up with all these changes?" In this white paper we will discuss some of the main issues companies have when it comes to B-BBEE scoring and the management thereof. This will be done in five parts; firstly: scorecard calculation, secondly: target score determination, thirdly: scenario or "what if" planning, fourthly: implementation of the aforementioned scenarios and lastly: verification preparation. During the discussions we will also be looking at a possible solution to these issues.

B-BBEE Scorecard Calculation

B-BBEE scorecard calculation in today's market is one of the most important marketing tools companies have, as the B-BBEE level of your suppliers affect your own B-BBEE score. For some companies it is so important that their supplier has a good B-BBEE certificate that they would easily go with a more expensive supplier rather than loose B-BBEE points by using a cheaper supplier.

But where do you start? Many companies use a Microsoft Excel based B-BBEE calculator (from basic to advance spreadsheets). This system usually involves 10's to 100's of people sending hordes of spreadsheets to 1 or 2 employees who are constantly consolidating all the information to import it into the calculator.

With B-BBEE scorecard calculations being so tidies, what can you as a company do to make your employees more productive, rather than updating spreadsheets all day? A solution to this frustration would be to have a web-based B-BBEE scorecard calculator which enables users to create scorecards, allows multiple users to input data at the same time into the same scorecard and have real-time score calculation in no-time at all. Another great feature would be to consolidate different divisions' scorecards into one consolidated group scorecard, without the hassle of having to copy all the information into one central scorecard.

Target Score

Many companies have problems when it comes to scoring correctly in the correct areas or elements. It is sometimes important for companies to score well in certain areas as contracts may rely on a certain number of points being scored in a specific area. Some State-owned enterprises for example "do not take into account the points achieved by an entity on the generic scorecard, unless the ownership element has been addressed. In other words, entities that perform very well in all other elements of the broad-based scorecard are not likely to be awarded contracts because they do not score well on the ownership element of the scorecard."1

A possible solution to this issue would be to have some way that, just by entering the target number of points, the system would provide the user with the target spend, target percentage or target number of employees needed to achieve that target score.

Scenario Planning

What would happen to my score if Jacob was promoted to Junior Manager? Or would my Skills Development points increase if I sent Susan on a Management Course? These are just examples of some the many questions companies have regarding their B-BBEE planning.

Most of us would like to believe that B-BBEE initiatives are implemented only for the benefit of previously disadvantaged individuals. But the truth is that no company would contribute to B-BBEE unless they received some benefit out of the transaction (be it the betterment of their level, improving the company's overall service and/or product or getting that important tender). Most companies therefore want to know the impact of a certain decision on their B-BBEE scorecard before the decision is made. This is where scenario planning is essential.

With scenario planning a potential B-BBEE score could be obtained by entering fictitious data or by entering both real and fictitious data and seeing what the overall effect would be to a certain element and / or the overall score.

Implementation Management

Many a director has pondered on the best way to manage the companies B-BBEE strategy in the most effective way. They usually have many B-BBEE specific tasks to be completed before the financial year ends and it is a constant frustration to follow up on all that has been done or not done. A system whereby tasks can be assigned to an individual (with a deadline) and where all completed tasks can be seen at a glance would go a long way to help alleviate the stress of whether tasks are being performed or not.

Verification

The most common question amongst stakeholders, especially when going through verification for the first time, or switching from verification agencies, is: "What documents are required for the verification?" Most verification agencies have an extensive list of required documents, most of which needs to be available on or before the verification. By using a generic list of documents that has been compiled from the lists of different verification agents, most if not all documents could be collected on a daily, weekly or even monthly basis, thereby reducing the time needed to acquire documents just before the onsite visit.

Solution

Although some of the solutions suggested above sounds too good to be true, all of them are available from Mpowered Business Solutions or MBS for short. MBS has an impressive system called the "B-BBEE Toolkit" which provides all of the above mentioned functionality. Currently the B-BBEE Toolkit is available for the current Codes of Good Practice as well as all the sector charters (including most of the sub-sectors). As the revised Codes of Good Practice is not legally binding, a scorecard for this has not been implemented yet, although MBS's Account Managers are available to discuss the revised codes as well as the potential impact they may have on your business. MBS also provides system training and quarterly reviews to companies to ensure that companies are making the most of the BEE Toolkit. They also provide a support line in cases where users are experiencing difficulty using the system.

Conclusion

It is my belief that MBS' B-BBEE Toolkit is one of the most, if not the most, advanced B-BBEE systems currently available in the market. MBS's employees spend many hours per day perfecting the system to ensure quality and correctness. This also means that the BEE Toolkit is always up to date with regards to any changes that may affect any scorecard, calculation, target or point. Another great advantage of using the MBS B-BBEE Toolkit is the fact that it is web-based, therefore being accessible from anywhere where an internet connection is available and any updates are instant. MBS also provides a free 30-day demo which is accessible from their web-site (www.beetoolkit.co.za).

1. Introduction

What is B-BBEE? When do I apply it? Why is B-BBEE so important? How do I calculate my B-BBEE socre? These questions are just some of the many questions a lot of people ask themselves on a daily basis. A lot of people do not know the reasons behind B-BBEE and why it is so important for the South African economy. In this white paper we will be discussing B-BBEE during three main eras as well as different views on B-BBEE as a whole. The three main eras that will be discussed are as follows: firstly: Past, based on a time from Apartheid to before the B-BBEE Act (Government Gazette, No. 53 of 2003), secondly: Present, based on a time from the enactment of the B-BBEE Act (Government Gazette, No. 53 of 2003) to the current Sector Charters, and lastly: Future, looking at the B-BBEE Amendment Bill (Government Gazette, No. 35907 of 23 November 2012) and the proposed Revised B-BBEE Codes of Good Practice (Government Gazette, No. 35754 of 5 October 2012).

2. Past

This era starts in the late 1800's and continues up to 9 January 2004, the day the B-BBEE Act (Government Gazette, No. 53 of 2003) came into law. We discuss this era in two parts, firstly focusing on the "legacy of dispossession and disempowerment that characterized our economic development until 1994" (Department of Health (Kwa-Zulu Natal), n.d.), and secondly the lead up to the enactment of the B-BBEE Act (Government Gazette, No. 53 of 2003).

a. Apartheid

The key aspect(s) of Apartheid was a systematic and purposeful restriction on black South Africans from meaningful participation in the economy. This was achieved by racial segregation, the uprooting of millions of black South Africans from their homes leading to large capital losses, restricting the acquisition of assets and rights to vote and confining them to homeland areas, which consisted of the poorest of living conditions, infrastructure and business opportunities. The above policies resulted in, amongst other things, a "landless black majority with restricted access to skills development" and prohibited them from "generating self-employment and entrepreneurship." (Department of Health (Kwa-Zulu Natal), n.d.) This practice was officially abolished after the 1994 public elections in South Africa.

b. Black Economic Empowerment

The process of Black Economic Empowerment (hereafter BEE - the terms Broad-Based and Narrow-Based were not used at this stage) started to emerge in the mid-1990s, but this "lacked focus and an overarching strategic framework" (Department of Health (Kwa-Zulu Natal), n.d.). Some of the policies/objectives of this era can be summated into the following (Department of Health (Kwa-Zulu Natal), n.d.):

As can be seen from the above, the intentions were not only to redress past imbalances but also economic growth. But many criticisms were labelled against these intentions:

3. Present

The Broad-Based Black Economic Empowerment Act (Government Gazette, No. 53 of 2003) (hereafter referred to as the B-BBEE Act) came into effect on the 9th of January 2004. This era looks at the period after this enactment, specifically looking at the Codes of Good Practice (Government Gazette, No. 29617 of 9 February 2007) as well as the nine sector codes, some of them with sub-sectors, until the end of 2012.

a. B-BBEE Act and Codes of Good Practice

The objectives of the B-BBEE Act (Government Gazette, No. 53 of 2003) were based on the above policies (refer to 2.b.), and as a result of this the Codes of Good Practice (Government Gazette, No. 29617 of 9 February 2007) were enacted to provide the role-players with a standardised manner of achieving Government's objectives.

"Originally, black economic empowerment was ‘narrow', meaning that the ownership and management of enterprises by black persons were imperative. However, the country realised that this approach would simply lead to a select few individuals amassing considerable wealth, but would not have the effect of truly empowering the majority of the previously disadvantaged individuals" (Bruger, 2010).

The Codes of Good Practice (Government Gazette, No. 29617 of 9 February 2007) brought the Narrow-Based Black Economic Empowerment system to a close and introduced the term "Broad-Based Black Economic Empowerment" (hereafter B-BBEE), which saw the creation of seven elements, therefore "broadening" the definition of what is seen as empowerment.

The seven elements were as follows:

Although the Codes of Good Practice was a step in the right direction, it has introduced some major issues:

b. Sector Charters

Up until the end of 2012 nine sector charters have been gazetted under Section 9(1)1 of the B-BBEE Act (Government Gazette, No. 53 of 2003). These are the following (in order of enactment):

Although different targets and scores and the odd additional indicator on the scorecard have been added, the issues with regards to these sectors are the same or even worse as those identified above, especially the language usage which stills created confusion amongst industry leaders.

4. Future

As we are all aware, BEE is in a constant process of change. Changes are made by the enactment of new laws and/or the amendments to existing law. Two amendments or revisions to existing law have come to light in recent times, although they have not been enacted yet, and are discussed in this final era.

a. B-BBEE Amendment Bill

The B-BBEE Amendment Bill was issued on 9 December 2011 for public comment and an explanatory summary published in Government Gazette No. 35907 of 23 November 2012. Some of the proposed changes made to the B-BBEE Act included providing the Minister of Trade and Industry the power to create a B-BBEE Commission with the goal to monitor and evaluate B-BBEE in South Africa as well as to implement offences and penalties1 with regards to fronting practices. Some of the definitions are also broadened and some new definitions added.

b. Revised Codes of Good Practice

The "Revised B-BBEE Codes of Good Practice and the B-BBEE Technical Assistance Guidelines" was issued on 5 October 2012 for public comment in Government Gazette no. 35754 of 5 October 2012. The idea behind the revision is to correct the many "errors2" made in the current legislation, provide better explanations with regards to certain calculations and to lay down stricter requirements with regards to all elements (please note that, as this act is only a proposal, details discussed below may change).

Some of the main suggested changes to the Codes of Good Practice (Government Gazette, No. 29617 of 9 February 2007), that will have the biggest impact on most companies, are the following:

Many persons have commented on the above changes and the Department of Trade and Industry has indicated that all comments will be given thorough consideration, but it is still anybody's guess whether these stipulation will be amended or not.

5. Conclusion

So what is B-BBEE? Regardless of some of the issues discussed above, B-BBEE is meant to redress the issues of the past and to ensure economic growth. This is also why B-BBEE is so important. Davis sums it up nicely by saying: "BBBEE initiatives should be viewed as business opportunities, where organisations cooperate with partners who add value to the business, not a cost to be borne by existing shareholders. BBBEE transactions, which are properly structured and executed, unlock the value of the existing shareholders instead of hindering the economic growth or the value of the entity." (Davis, 03 May 2012)

Why should I therefore apply B-BBEE? . If we do not ensure economic growth by working together as a country, we may eventually be the owners of over-indebtedness and poverty and not the thriving South Africa that we could be. Just like a rainbow needs a start and a finish, it is the middle that makes it work. Let us all therefore take hands and work together as South Africans, regardless of race or gender, to take charge of our Rainbow Nation and make it biggest and best "rainbow" we can.

6. Is there a way in which Mpowered Business Solutions (MBS) can assist our company with achieving our B-BBEE goals?

MBS has a web-based system called the "B-BBEE Toolkit" which provides our clients with a platform to calculate their B-BBEE score on an on-going bases, assists them by providing mechanisms whereby targeted scoring can be calculates and scenario or "what if" planning can be done and managed. Currently the B-BBEE Toolkit is available for the current Codes of Good Practice as well as all the sector charters (including most of the sub-sectors). As the revised Codes of Good Practice is not legally binding yet, a scorecard for this has not yet been implemented, although MBS's Account Managers are available to discuss the revised codes as well as the potential impact they may have on your business. MBS also provides system training and quarterly reviews to companies to ensure that companies are making the most of the BEE Toolkit. They also provide a support line in cases where users are experiencing difficulty using the system. MBS also provides a free 30-day demo which is accessible from their website (www.beetoolkit.co.za).

7. Bibliography

IMPERIAL Logistics

The client

IMPERIAL Logistics is a global logistics and supply chain leader, with operations in over a dozen African countries. The Group consists of over 70 member companies, and employs more than 20 000 people. It provides end-to-end logistics and supply chain management in an efficient, proactive and cost effective manner.

The problem

IMPERIAL Logistics ultimately measures its B-BBEE compliance in a single consolidated Group scorecard. Because of its size, the co-ordination of this scorecard had always been a mammoth task, assuming months of work each year. In order to calculate this score, the transformation department had to manually gather, and consolidate data from it's over 70 decentralised companies. This meant sending out spreadsheets to each company, individually educating users on how to compile their data, then chasing submissions, quality assuring the data, and consolidating it manually. The use of Excel spreadsheets opened the Group up to human error in both the consolidation and calculation of scorecards. The process was subject to human error at each level. More importantly, measurement of Group compliance on an on-going basis was onerous if possible at all. There was no central visibility of contributing scorecards, so Operating Companies were unable to assess their role in achieving he Group score.

The solution

Mpowered recommended the wholesale implementation of our systems throughout the Group. Beetoolkit and Supplier Management accounts were set up for each of the member companies, with users nominated throughout the country. Extensive training was undertaken for users in Johannesburg, Durban and Cape-Town, and scorecards were then created for each Operating Company as users loaded their data directly into the systems. These scorecards were then automatically consolidated into subsidiary group scorecards, 7 divisional scorecards, and finally a single Group scorecard. In some cases, IMPERIAL Logistic's structural complexity was reflected in a consolation structure 5 layers deep. A separate consolidation of the Supplier Management System was then encoded as a check to the Beetoolkit, with the flexibility of including inter-company spend at an OpsCo and divisional level, but excluding it at a Group level for verification. Once the system was operational, on-going monitoring by our support staff enabled iterative management recommendations to process. In measuring the 7 elements of B-BBEE, Ownership, Management and Enterprise Development were set to filter down from the Group, while the remaining elements consolidated up from Operating Companies. In some instances, data was uploaded in bulk by ourselves to ensure accuracy and compliance.

The results

Within months, IMPERIAL Logistics was able to measure the compliance of each of its member companies, with reporting tools allowing them to assess which companies were not compliant. The Group was able to extend an existing incentive structure based on company performance, linking B-BBEE back to specific management performance indicators. In this way, accountability for compliance was made to rest on individual companies, preventing those with poor scorecards to rest on the strength of other performers. Scorecards are now created on a monthly basis with little manual intervention, allowing the transformation department to redirect resources to strategic management. On a Group level, IMPERIAL Logistics is able to gauge the direction of their compliance efforts proactively, by assessing their performance throughout the year and making course adjustments as necessary. In 2012, the Group was assisted in the execution of their BEE Strategy by the systems, maintaining their level 3 status, and increasing their score from 77.69 to 81.73 points.

Murray & Roberts Construction

The client

Murray & Roberts is one of South Africa's leading engineering, contracting and construction services companies, operating in Southern Africa, the Middle East, Southeast Asia, Australasia and North and South America. The construction cluster of the Group is the largest of its operations and consists of 7 divisions ranging from roads and earthworks, to mining and civils. The Group aspires to world class fulfilment in everything it does, and through its core competence in industrial design, delivers major projects and services primarily to the development of emerging economies and nations.

The problem

Following the merger of Murray & Roberts Construction and Concor in 2011, the new cluster faced the challenge of assimilating the two entities' B-BBEE scorecards into a single Group scorecard. The business units comprising the two entities had a range of scorecard levels, and Murray & Roberts Construction sought to retain its level 3 status going forward. At the time, there was no system in place for measuring the compliance of the new entity, and there were concerns about dropping a level.

The solution

We implemented the Beetoolkit and Supplier Management System across the cluster, with users trained in each of the divisions. During implementation, the specific business needs of two merging entities were taken into account, with consultation on accurate data sourcing from two separate ERPs forming an important part of the solution.

The results

During the training process, data integrity issues were identified and addressed, and the first internal Group scorecard of the entity was produced in October 2011. Upon verification a few months later, the new Murray & Roberts Construction achieved a level 3 status, with a score of 75.84 points.
Since then, successive measurement of monthly scorecards has enabled the Group to strategically improve their scorecard throughout the year. Regular data integrity reviews have allowed for early intervention and additional training. In their latest verification, the Group improved their score by over 5 points to achieve an impressive 80.95. With this increase, they are well positioned to aim for a level 2 status in 2013.

Mpowered takes bronze at annual Logistics Achievers Award

On the 20th September, an exclusive gala dinner was held at Montecasino to celebrate the 24th annual Logistics Achiever Award. The purpose of the awards is to "recognize professionalism and excellence in the effective application of strategic, tactical, and operational logistics in Southern Africa."

Finalists for the different categories of awards included Anglo Platinum, Barloworld, IMPERIAL Logistics, Sappi, Transnet & Woolworths. The calibre of entries was lauded by the panel of judges, which comprised representatives of 10 professional institutes and industry associations. Throughout the rigorous judging process, candidates were screened for their commitment and innovation in improving the performance of the Logistics Industry.

Mpowered Business Solutions entered the award in partnership with one of its customers, IMPERIAL Logistics. Together, the companies presented their optimization of preferential procurement during the year, through the implementation of the MBS Supplier Management System, and B-BBEE Scorecard Database (Beagle). The judges found that this endeavor, spanning 65 companies, 7 divisions and 1 group consolidated scorecard, exhibited the precision and excellence indicative of a logistics achiever, and the two companies walked away with a Bronze Award.

We would like to congratulate IMPERIAL Logistics, and the team of dedicated staff at Mpowered Business Solutions for this significant achievement.

Mpowered MD Bruce Rowe, with Sibongile Zikalala, Transformation Director at IMPERIAL Logistics.

IMPERIAL BOOSTS BEE MEASUREMENT FOR BIG BENEFITS

Reflecting its commitment to transformation - and to providing its valued clients with the benefit of 137.5% BBBEE preferential procurement recognition - IMPERIAL Logistics embarked on a project to find the most effective solution to measuring BEE compliance across the entire group.

The challenge

IMPERIAL Logistics is driving continuous transformation improvement as a strategic business imperative, with operating unit managers accountable for achieving transformation targets. The group verifies one consolidated BEE scorecard, but this is based on input from some 70 operating units, which presents challenges. Chief integration officer Cobus Rossouw elaborates: "Each MD must have visibility of their company's actual BEE compliance versus their targets, and it is necessary to measure BEE compliance on a monthly basis, both at an operating unit, division and group level. Consistent measurement and interpretation, data integrity and accuracy of BEE calculations are important to measure operating unit performance, and for scorecard verification."

To ensure the effectiveness of this approach, IMPERIAL Logistics required a robust, sustainable IT system that would have the buy-in of all role players - from executives down to administrators.

The group's complex challenges also included tracking and measuring Preferential Procurement per operating company, matching thousands of supplier BEE scorecards to the relevant spend on each supplier - a process that was further complicated by the fact that many operating companies source products and services from each other.

A tailor-made IT solution

IMPERIAL Logistics investigated the market for specialist BEE IT systems, and found what it was looking for in Mpowered Business Solutions, which enhanced existing BEE IT systems to meet the specific requirements of the group.

"Information on the Ownership and Management Control scorecard elements is now captured once, at an IMPERIAL Logistics company level. The system automatically pushes this information downwards into each divisional and operating unit BEE scorecard, to ensure that the operating companies need only input data relevant to their specific business, and where they could influence the level of BEE compliance. The Mpowered IT system consolidates data from each operating company to automatically produce eight divisional scorecards and one group consolidated scorecard."

Controlling the success of transformation initiatives

Each MD has visibility of their operation's BEE compliance, and can easily assess scenarios, to measure the impact of any BEE initiatives in real time. "MDs can now control the success of their transformation initiatives," Rossouw stresses.

The system enables suppliers to access an IMPERIAL Logistics branded version of Mpowered's BEE scorecard database, where they can load a copy of their verified BEE scorecard certificate. "Suppliers need only load their scorecard certificate once, and it is immediately accessible to all IMPERIAL Logistics finance and procurement departments. Each operating company loads their supplier spend into the Mpowered IT system on a monthly basis, and by using the supplier's VAT number as the unique key, the spend on each supplier is automatically matched to the BEE compliance of that supplier. This process automates the Preferential Procurement calculation for each operating company, while taking into account inter-company spend."

Benefiting from a proactive approach to measuring BEE compliance

The innovative solution implemented by IMPERIAL Logistics is a unique SaaS based IT system that enables the group to successfully manage continuous improvement of its transformation in a decentralized environment.

Rossouw notes that a change in mind-set from executives to administration has resulted in accountability and buy-in to meaningful and sustainable transformation. "The solution provides IMPERIAL Logistics with the ability to identify which companies are behind in target achievement," he adds. "It also provides IMPERIAL Logistics with an enabler to model future scenarios and targets, impacting business strategy. In addition, it is now possible to facilitate collaboration across the group to identify and explore synergies that drive transformation."

The cycle time, and the administration required in preparing for BEE verification, has been greatly reduced. "At the end of the financial year end, the data is readily available, as is the completed BEE scorecard. Most of the evidence required by a BEE verification agency has also already been loaded into the IT system. HR, finance, procurement and transformation specialists can now focus on adding value to the business, rather than being inundated with the administration of collating data and evidence," Rossouw concludes.

The higher EE and PP targets did come into effect !

So, we had communication from the DTI that the revised, higher, targets for Employment Equity and Preferential Procurement would not come into effect as the BEE Codes were to fundamentally change later this year. The DTI retracted the unofficial statement, and the higher targets have come into effect as of 9 February 2012 as planned.

The targets increase significantly, so we recommend assessing the impact of these higher targets on the relevant scorecard elements, and start managing expectations now !

With the Preferential Procurement target for "all BEE spend on all supplier" increasing from 50% to 70% (with a maximum recognition of 12 points), we expect that many companies will see a reduction in their Preferential Procurement scorecards, and we expect the same outcome for the vehicle manufacturers. The German and American vehicle manufacturers measured their last BEE scorecard as at 31 December 2011, so they were not subjected to the higher targets, however, the Japanese vehicle manufacturers tend to have a March year end, so they will see the impact of the higher targets.

We suspect that all the vehicle manufacturers will be impacted by these higher targets, and would, therefore expect them to start exerting increased pressure on their suppliers to increase their BEE compliance before their next scorecard is verified, around May or June 2013. With many component manufacturers having either a December or February year end, time is running out to identify and implement opportunities to increase their compliance for this current financial year-end. If this is the case, we may see the vehicle manufacturers drop a level of compliance, as those that are achieving Level 4 compliance, are only just exceeding the threshold of 65 points.

The "new" BEE Codes and Scorecard.

Earlier this year, we were tasked to assess the impact of the new Codes on a client scorecard. It wasn't pretty, and the result indicated that they would drop around 2 levels of BEE compliance if the new Codes are implemented as suggested. Don't panic though. At this stage, we simply do not know when the DTI will release any information on the proposed changes to the Codes, or, how severe the changes will be. There was talk in the industry that we could expect something towards the end of June 2012, however, unsurprising, nothing was forthcoming.

The principles are clear though, and include:

So, the net effect for a typical MNC component manufacturer ? I see a marginal decrease in recognition on the HR elements, perhaps more significant if the Rand spend target for training is doubled (we doubt it likely), and perhaps more significant for WC and KZN manufacturers. We don't see too much of an impact on the Preferential Procurement scorecard, nor the ED or SED scorecards, depending on the nature of ED and SED support being provided to beneficiaries. If the intentions are correct, that is (EG, real and sustainable economic development of small black owned firms).

So in most instances, with some tweaking to existing initiatives, the drop in points should not be huge at all. The challenges lies in the DTIs intent to change the recognition levels, with recognition of BEE compliance levels being based on much higher total points than what is currently measured. Time for an industry ED and SED initiative ?

Perhaps it is time. Time to introduce an industry specific ED and SED initiative, with the objective of driving true, meaningful and sustainable economic and social development. After all, that is what this country really needs, Codes or no Codes. One that only considers projects or initiatives that meet the requirements of the new Codes, once they we know what they are, of course. We all still seem to be crying out for good, skilled and experienced labour, but I don't think we are really doing anything different from 10 years ago, other than the complaining. I would also like to see a "showcase" on the internet of successful (and of course, real, meaningful and sustainable) projects that have been implemented by component manufacturers, or component / vehicle assemblers (OEMs), to date. Mini-case studies ? But, the catch would be, that those manufacturers that aren't able to identify "suitable" ED and SED initiatives themselves, can contribute to existing initiatives they did not know about, and that are industry specific. Any takers ?

Perhaps the Industry can pull together and address the underlying issues and challenges faced by the industry, with regards to labour related issues, and come up with a clever plan on how the private sector, because the public sector can't, can address the challenges.

The industry recently met with the DTI, and amongst other pressing issues, the level of transformation within the industry was discussed. Their perception is that the industry is not transforming. If we review the BEE compliance of the component manufacturing industry from 2009 to 2012, the "industry scorecard" would indicate the industry is transforming. Whether or not it is true, meaningful and sustainable transformation is very questionable, but from a scorecard perspective, and lets be honest, that is all most stakeholders are interested in, the industry is transforming, or certainly, "complying".

I am sure that we will see the industry come together and create an enabling platform (read, the automotive industry BEE scorecard database at auto.bbbeescorecards.co.za) to track and measure the level of transformation within the industry. I am not sure there will be any intent to measure impact, but certainly compliance. Although, impact would be nice ! We sitting at Mpowered, I concede, without having the hassle of manufacturing and assembling stuff, think it is important that the industry engage in an initiative to measure the extent of, and impact of transformation within the industry. I am sure it will be useful, and insightful to illustrate the positive impact the industry is having on South African economic and social development. Lets do it !