Companies do not achieve levels 2 or 3 by mistake or by ticking boxes. BEE
is a very time consuming and complex business task. It needs to be
implemented with carefully planned methodologies, which is then properly
implemented and monitored in a way that makes complete business sense.
Companies that succeed with BEE understand what needs to be done
intrinsically and are fully committed to proper implementation. We have prepared
various best practices that need to be in place to fully succeed at B-BBEE.
The Right Mindset
B-BBEE is not a singular once off project. It is a long term process that
needs to be included in the company's everyday activities. B-BBEE needs to be
seen as an essential process in a company. Not an afterthought, or an irritation.
Ensure that every person involved with earning points (however remote or
seemingly distant to the process) fully understands what BEE is and how it
affects their component of the business. A "rogue' manager in a branch of the
company could ensure that your targets are constantly missed because they are
not prepared to meet them.
The Right Team
Appoint one person who is ultimately responsible for BEE - the BEE
Champion. This person is usually the CEO/MD and has the authoritative power
to invest in the activities that will gain points. That person is the critical link
between strategy and implementation by driving and supporting BEE in all
aspects of the business.
The secondary team is then made up of "implementers' or "Element
Owners'. These are employees who are experts in their respective fields. It is
not very surprising that an HR manager is not fully able to grasp the intricate
details of Procurement or the financials. Vice versa an accounting or legal
orientated person will not be able to fully relate to a company?s training needs
nor know how to effectively manage the learning process.
There are seven elements, but sometimes one person can cover two or
three elements. The element owners? job is to implement best practices for the
element. It is not to do all the work in that element! Policies for each element
must be set up and followed. Policies must be easy to understand and easy to
follow.
We have seen policies that are 50 pages long and completely unworkable
and unachievable! All staff associated with the element must be able to give
positive input and be conversant with the policy. It may be a cliche, but this is
the way to get everyone working as a team towards a common goal.
Policies
Set up policies to further support BEE. This becomes the internal message
that all staff will be aware of and how BEE affects their job, and how they can
contribute to BEE.
As BEE is sometimes seen as an emotional issue this must be handled as
well, often via effective change management. Staff must be kept motivated - if
they see BEE as a "taking away their jobs' or "giving them jobs' - it will be
counterproductive.
Constant Implementation
If the BEE process is managed well you will be able to implement BEE
transactions regularly. Many aspects that earn you points are implemented daily.
Preferential Procurement is a great example of that - you are purchasing from
suppliers every day. You need to understand the impact of each purchasing
decision on the scorecard. A key benefit is that you already have a good idea of
how many points your supplier base will give you. In addition you will be able to
move some spend from lesser compliant suppliers to more compliant suppliers.
Regular Monitoring
From a management viewpoint, BEE must be measured regularly, ie every
month. The BEE champion should produce a scorecard every month, just like the
financial director produces monthly management accounts. A scorecard calculator
is an essential part of this process. Apart from a scorecard calculator helping
with current calculations it will also help with scenario planning and future
preparation to ensure that the high score is always maintained.
Strategic Planning
Long term strategies must be implemented, be achievable and measurable.
For example it is not feasible to improve employment equity or procurement
overnight. A long term strategy is needed. This strategy should integrate past
results with anticipated future results. Most importantly the strategy should
compare what the company wants to achieve with the costs vs budgets
allocated and the feasibility of achieving that target.
Strategise at the right time in the BEE Process. BEE is measured
retrospectively. The strategies you implement now might only be measured in as
much as one and a half years time.
Apply best practice - contact us on 011 483 1190 and talk to us about our
Managed Service so that we can help you manage your BEE process.
What do you think?
Are companies committed to transformation?
