CEO Magazine Vol 17.1 by CEO Global Group

ceo

celebrating excellence in organisations Vol 17 No 1 - 2018

Lifestyle 5 tantalising & trendy wines

Cash is no longer King Card transactions are the real â&#x20AC;&#x2DC;Queen beesâ&#x20AC;&#x2DC;

Technology increasingly influential Strategic priorities must be managed

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People Power drives

Dr Madelise Grobler, Managing Director, Bytes People Solutions

People Solutions

SPACE

“

There is beauty in space, and it is orderly. There is no weather, and there is regularity. It is predictable. Just look at our little Explorer; you can set your clock by it — literally; it is more accurate than your clock. Everything in space obeys the laws of physics. If you know these laws, and obey them, space will treat you kindly. — Wernher von Braun, quoted in ‘Space: Reach for the Stars’

”

99% of our solar system’s mass is the sun.

One million Earths can fit inside the SUN

silent?

All of space is completely silent. Sound waves need a medium to travel through. Since there is no atmosphere in space, space will always be eerily silent.

The Apollo astronauts’ footprints on the moon will probably stay there for at least 100 million years. Since the moon doesn’t have an atmosphere, there’s no wind or water to erode or wash away the Apollo astronauts’ mark on the moon. That means their footprints, roverprints, spaceship prints, and discarded materials will stay preserved on the moon for a very long time.

Halley’s Comet was last seen in the inner Solar System in 1986, it will be visible again from Earth sometime in 2061

Mercury & Venus

are the only two planets in our solar system that do not have any moons.

Taller in Space....

A change to the human body in micro-gravity is that the spine straightens out, as gravity is not pushing you down. In fact, you can be up to as much as 5cm taller in the Space Station.

EDITOR’S

note Chase what’s new

t is with great pride that I take on the position as Editor of CEO Magazine. It’s a new adventure I have wholeheartedly embraced, and as I reflect on my new role, I cannot help but to think of businesses who have found themselves at a similar crossroad – either take on the new challenges all sectors face, or continue to remain stagnant. As technology and innovation has massively infiltrated the business world, nobody has the time to be complacent. Organisations need to welcome these developments and find new ways of utilising them within their companies in order to remain relevant. In this issue we discuss technology, innovation and entrepreneurship, and for good reason. We are living in a fast paced world where ‘new’ trends and developments are shaping future businesses in a positive manner. It’s time to make a decision; either welcome what’s new and all the challenges associated with it, or remain where you are right now – standing still while the world around you is spinning towards excellence at a rapid rate.

Charmain Pieterse

As technology and innovation has massively infiltrated the business world, nobody has the time to be complacent.

CEO 2018 Vol 17.1

INSIGHTS

Mpumi Nhlapo

Willie Vos, CEO of Waterfall Management and Operating Company

When this is combined with rapid advances in industrial-grade connectivity, local businesses are suddenly able to access new applications, platforms and infrastructure literally at the click of a button. Nhlapo believes local technology firms must adapt with agility – working with these platforms (rather than against them) to migrate complex enterprise applications into these new Cloud environments. “Another way to ride the wave of Cloud disruption is to extend and customise Cloud services to suit specific local market needs,” Nhlapo continues. “With this kind of deep specialisation into specific verticals and regions across the continent, ICT firms can effectively move up the value chain and become true strategic partners to their clients.” Further to the above, Nhlapo is adamant that tomorrow’s winning ICT players will be those that apply exponential technologies to local markets, changing their client’s businesses for the better. “For instance, our work with other technology partners at a large client demonstrated the possibilities when we combined big data with high-speed connectivity, Cloud platforms, modern ERP solutions, and connected devices,” Nhlapo emphasises. The client now boasts an optimised operational environment, with everything managed by a central control centre, and exciting new innovations (such as drone and sensor technology) ushering in an entirely new era. However, it’s not just about the technology itself. The resourcing model for ICT firms will also shift further into the digital future. Instead of stacking teams with predominantly permanent staff, the

Taking charge of

In the face of digital disruption, companies need to find smart ways of adopting new technologies, business models and mindsets in order to survive.

“T

his, according to Mpumi Nhlapo, Head: Demand Management at T-Systems SA, is exactly what they advise their clients to do. While being the ones talking about the impact of digitisation on different industries, the irony is that ICT firms are also navigating their way through a major transition. Traditional ways of providing technology solutions become increasingly irrelevant in the modern era. “ICT companies are being asked to reinvent themselves as a number of forces converge, whipping away some of their most stable revenue streams – particularly in the realms of ICT services and desktop support,” states Nhlapo. “Perhaps the biggest factor is the commoditisation of IT services, driven by hyperscale datacentre players, which leverage massive Clouds to provide a vast range of enterprise tech services across the globe.”

Digital Disruption Grow

new model will harness the flexibility of the so-called ‘gig economy’.” *Forbes predicts that by 2020, 50% of the U.S. workforce will be freelancers, in some capacity or another. “The instant gig economy is moving more towards independent professionals that are using mobile platforms and technology to create ecosystems of work they enjoy,” states the article. Nhlapo believes that the trick for tech firms will be to harness the pool of talent (both within the organisation and outside its boundaries), matching key skills for specific needs, composing, rotating and dissolving these ever-changing virtual teams to best serve the client’s needs. “Disruptive technologies are affecting every business, including technology players themselves,” concludes Nhlapo. “It’s only by embarking on ambitious, well-considered transformation strategies that a tech firm can expect to stay relevant over the coming years.” *https://www.forbes.com CEO 2018 Vol 17.1

CONTENTS 10

LEADINGedge

Madelise Grobler, Managing Director of Bytes People Solutions, shares her views on the importance of customer service, understanding the power of correctly applied technology, the importance of people development and interpreting value through the eyes of the customer.

REGULARS 2 Your World Unravelled 3 Editor’s Note 5 Insight 8 Flip Side 18 On Point

PERspective 16 Cyril Ramaphosa facing down your boss He has already brought much hope, as the value of the South African Rand has spurted upwards since the announcement of his success. The real work starts now.

40 What’s Hot or Not

Creativity sparks huge success

70 Simdul Shagaya Entrepreneur embraces Technology & Innovation

INtheKNOW 42 Well selected board critical to an organisation’s success

44 Employment equity reaffirmed

20 Low Card Acceptance at Informal Enterprises Despite High Consumer Demand

The Department of Labour has increased their efforts relating to labour audits & the relevant compliance regulations.

22 Effective cash management in uncertain times

46 The road to ee compliance is paved with dubious intentions

24 Not ticking anyone off? Then you just aren’t trying hard enough!

68 Erica Elk

Never underestimate how critical the composition of a board is to organisational success.

18 Keep your feet on the ground and reach for the stars

28 Two-factor authentication should be a staple

Focus on Excellence

72 In Conversation With

ONpoint

SUPPLYworx

32 Converged Infrastructure and hyper-convergence gains Momentum in SA – But what are the challenges?

30 Securing the mobile enterprise

34 Can businesses afford to use an IT provider who isn’t vendor certified?

31 How do you know when green really means green?

36 Automation - creating the worker of tomorrow

CEO 2018 Vol 17.1

38 3 Steps to satellite network success

Is the failure by 72 JSE listed companies to comply with the provisions laid out in the Employment Equity Act (EE) a blatant lack of respect?

48 Tech Increasingly Influential in 2018 From economic and political instability to regulatory uncertainty, companies have certainly had to carefully manage their strategic priorities during the past year.

GLOBAL Expand your business Horizon

LIFEstyle 50 Powerlifting CA(SA) sets sights on world deadlift record. Mariska Casey shares her joy at discovering a hidden athletic talent late in life.

52 5 wine trends to watch for in 2018 Trendspotting with fine wine merchant Roland Peens.

55 Back to basics for better health

Publisher CEO Global (Pty) Ltd Tel: 0861 CEO MAG Fax: (012) 667 6624 Tel: 012 667 6623 info@ceomag.co.za www.ceomag.co.za Chief Executive Annelize Wepener annelizew@ceomag.co.za Personal Assistant to the Chief Executive Mandie van Niekerk mandien@ceomag.co.za Director: Strategic Development & Editor in Chief Valdi Pereira valdip@ceomag.co.za Director: Corporate & Financial Services Carl Wepener carlw@ceomag.co.za

The power of natural ingredients to fight health issues.

General Manager: Global Services George Wepener georgew@ceomag.co.za

56 Psyched Up to Succeed

General Manager: Global Media Services/ Head of Production Channette Raath channetter@ceomag.co.za

How using a Racing Driverâ&#x20AC;&#x2122;s Mindset can help you win at life.

57 Rooibos is taking centre stage in the global drinks market Tea-lovers from around the world will be celebrating International Tea Day on the 15th of December later this year.

58 Mercedes - AMG 63 S 4Matic+ It the most powerful E-Class Sedan of all times and has the figures to prove it. Not only that, it is also the most intelligent executive sedan available.

Editor Chairmain Pieterse charmainp@ceomag.co.za Editorial team Abigail Moyo abigialm@ceomag.co.za Nhlanhla Skosana nhlanhlas@ceomag.co.za Lakhe Thwala lakhet@ceomag.co.za CEO Class Administrator Nyahsa Rugara nyashar@ceomag.co.za Manager: Corporate Support Raymond Mauelele raymondm@ceomag.co.za

62 VW T Series Kombi Designed to take eight people and with 1200-Litres of luggage it is impressive.

65 Subaru XV all-wheel drive The all-new XV is underpinned by Subaruâ&#x20AC;&#x2122;s Symmetrical AllWheel Drive system and a new 2.0-litre direct injection Boxer engine.

* No article or part of an article may be reproduced or transmitted in any form without the prior written permission of the publisher. The information provided and opinions expressed in this publication are provided in good faith but do not necessarily represent the opinions of the publisher or editor. All reasonable efforts have been made to ensure the accuracy of the information contained in this publication. However, neither the publisher nor the editor can be held legally liable in any way for damages of any kind whatsoever arising directly or indirectly from any facts or information provided or omitted in these pages, or from any statements made in or withheld by this publication.

CEO 2018 Vol 17.1

FLIPSIDE

Big Ticket

Snapping-up Spectacles with Wearable Cam Snap, the company behind Snapchat, has released the second generation of its Spectacles, a wearable video camera that captures short clips that can be synced to a smartphone. It also takes still photos and is designed to be water-resistant. This time round the Spectacles look more like an actual pair of sunglasses and the connectivity between the device and the user’s handset has also been improved.

Gigantic 128.27cm

touchscreen revealed by Microsoft

The firm has revealed a giant 128.27cm touchscreen called the Surface Hub 2, which it says is designed to replace a whiteboard. Four of the massive screens can even be linked together to create one mega tablet. The touchscreen was designed to help remote teams work together more easily. The Surface Hub 2 uses Microsoft Teams, Microsoft Whiteboard, Office 365, Windows 10 and what Microsoft calls ‘the intelligent cloud’.

Forget the snow!

Now too much sun could ruin driverless cars Self-driving cars are still working to master the snow. But it turns out that excessive sun can also pose a problem for the coming wave of robot drivers. The threat comes from solar storms, which can sever the data connection between a vehicle’s global-position system and the satellites that supply location information. However, engineers behind automated vehicles are already taking steps to outsmart the sun.

CEO 2018 Vol 17.1

FLIPSIDE

Google assistant calls

to make appointments Google has shown off a future feature of its voice assistant - the ability to make an appointment by phone for you. The assistant is said to be able to carry on a conversation like a human. When the system, named Google Duplex, is done, it can also give you confirmation notification saying that your appointment has been taken care of. But will people use it? That remains to be seen.

Microchip

may be key to affordable Internet of Things Devices A smart Microchip has been developed by a group of Engineers from the National University of Singapore that can self-start and continue to operate even when the battery runs out of energy. This could possibly help in manufacturing smaller and cheaper Internet of Things (IoT) devices. Batless, as it has been named, allows it to self-start and continue to function under dim light without using any batteries, only a very small on-chip solar cell.

Slow Internet speeds set to become a thing of the past Google is releasing an app in Africa that will help internet users overcome the lack of high-speed connectivity and the cost of data on the continent. This will be in the form of Google Go. The new app reduces the amount of data needed to display search results by 40% and allows previous searches to be accessed offline.

*some of the images were obtained from freepik.com CEO 2018 Vol 17.1

CEO 2018 Vol 17.1

Dr Madelise Grobler, Managing Director, Bytes People Solutions

LEADINGEDGE - Bytes People Solutions

People Power by Valdi Pereira

drives

People Solutions In this edition of CEO magazine we interview Madelise Grobler, the Managing Director of Bytes People Solutions. She shares views on the importance of customer service, understanding the power of correctly applied technology, the importance of people development and interpreting value through the eyes of the customer.

You operate in a field where technological changes can occur rapidly. How do you stay abreast of what you believe the customer is going to need? Ongoing conversations with our customers are key – we try to listen carefully to their needs. In the technology space, a very good solution a year ago may simply no longer be adequate in a customer’s current business environment. It’s vital to innovate and develop relevant solutions quickly. Bytes People Solutions has established a reputation as an organisation with a keen focus on customer service – what is the motivation behind this? We view customer service as the starting point of a journey in which we build a strong relationship with our customers. The skills development and business process outsourcing (BPO) industries are competitive environments. There is often a hesitancy on the part of companies to outsource these services and we need to excel at what we are doing, so that customers do not have a reason to question the value we add to their organisations. We believe that customer service is a critical starting point in this regard because it allows us to have ongoing communication with our customers and to develop an understanding of their expectations. Strong customer service orientation coupled with communication will over time elevate to a point where we

can start to strategically partner with our customers and become a valued business advisor to them. It is this advisory position that we constantly strive for. We are not interested in simply selling products and services to our customers – we want to be a strategic partner to them so that we can build sustainability for them and ourselves. Consequently, we don’t just talk about the ‘Customer being King’, instead we endeavour to deliver on this philosophy because it can be the starting point for many other opportunities. Technology and its application in business has in recent years become a critical executive level issue and many companies now view technology as holding the potential to become a key differentiator in their business. Do you find that you are under pressure to deliver on these changing expectations? In my experience there are two sides to the use of technology in business. On one side, people don’t always have a full appreciation for the positive impact it can have on a business and often underestimate its value. On the other side, you have heavy expectations placed on technology solutions and often, but not always, this leads to unnecessary complications and disappontment. It is also important to remember that technology and its application cannot stand alone. You need to use it in

CEO 2018 Vol 17.1

LEADINGEDGE - Bytes People Solutions

conjunction with a number of solutions. For instance, there is currently a strong focus on digital transformation and you can sometimes, with small interventions, open up digital learning and mobile communication platforms that can have a positive impact on a business. Technology can also allow you to achieve scale. Bytes People Solutions features prominently as a leading provider of Learning Technologies for some of our country’s top universities. We deliver every online assessment on these campuses. The size of the implementation and the level of security required for such projects reflect the capabilities we possess. A university simply cannot afford for student results to go missing or for weak points pertaining to the safekeeping of information. That is the beauty and power of technology when correctly implemented. Technology touches on every facet of almost every industry and when deployed correctly can be the glue that holds organisations together but it is only a differentiator when used correctly in conjunction with other business solutions, processes and people! In the current knowledge and skills based economies the abilities a company’s people possess is often seen as an area of competitive advantage. You have a strong focus on people development in your business. What has been your experience in terms of the benefits companies derive from people development? If you look at our business model you will find a big portion thereof is focused on skills development. Within the skills development space we focus on two areas. In the one area we look at organisations that need IT-skills solutions; anything from relatively basic software packages all the way through to specialised training in fields like Citrix. The other area of skills development is a socio-economic one where we provide learnerships in ICT and various other areas. We assist roughly 2 000 people per year in this area and we’ve been instrumental in developing several ICT qualifications with the Setas. We take unemployed people, with an abundance of talent, energy and eagerness, who are simply unable to find a job and place them in a learnership programme.

We then partner with a range of businesses to provide the learners with further employment opportunities. So yes, skills development is critical and can have a positive impact on companies, individuals and the country. You also have a strong presence in the BPO market and are viewed as a leader in this field. How do you stay ahead in this space? The BPO segment is a large part of our staff complement. Our ability to develop and upskill people in the IT field along with our learnership programmes provide us with a very strong advantage in this space. We operate approximately thirty-five contact centres ranging from government agencies such as the Independent Electoral Commission all the way through to major ICT and entertainment players like Vodacom and MultiChoice. The type of services we offer vary from direct sales, using technology to pre-qualify leads which gives us a very good idea whether a person might be in need of a particular product or service, through to highly technical contact centres for the producers of electronic goods such as Samsung and Huawei. In terms of people, what is the size of Bytes People Solutions? We have over 2 300 people of which approximately 60% are women. There is clearly a strong people investment approach in what you do. How do you pull this through to your own teams? I absolutely believe in continuous learning and ongoing learning, so we have various vehicles within the company to facilitate this. For example we have the Bill Venter Academy, which is our corporate university that is specifically focused on the scarce and future skills that the Altron Group will need. Bytes People Solutions is the Altron Group’s delivery partner in this space. We have an Altron learning portal available where online learning courses are available to staff. I only have one rule here, you can do as many courses as you like but only do

Technology touches on every facet of almost every industry and when deployed correctly can be the glue that holds organisations together but it is only a differentiator when used correctly in conjunction with other business solutions, processes and people!

CEO 2018 Vol 17.1

LEADINGEDGE - Bytes People Solutions

one course at a time. So focus, make it a success and then you can do the rest. We also offer face-to-face learning, with a very strong focus on mentoring and coaching within the company. The reality is that our customers always expect more from us and we need to be geared for constant growth. In fact, I found myself thinking during a recent customer review, “It seems that it’s never good enough”. The challenge in this sector is the better you are, the more is expected of you and service level agreements constantly demand more and more from your people. In many ways it comes back to the importance of customer service. In the past we took over contracts based on acquisitions, which were not really profitable. Slowly but surely providing quality service and value, we were able to open up discussions with our customers around the commercial elements of the relationship. I have found that customers have an appreciation for the fact that, when you are working together, the sustainability of the relationship is a co-responsibility. However, you need to have laid that solid basis first which cannot be achieved without a team that is skilled and committed to achieving results. How do you make sure that you are always adding value to the customer? The industry has a relatively strong set of metrics in place and as an organisation you can see where you feature in relation to your competitors. So there is a level of transparency and constant assessment within the industry that keeps everyone alert to the challenges of service and value delivery. From a business analyst perspective, we are able to analyse exactly where the problem areas are and then utilise technology to address these challenges on behalf of the customer. I think in our sector this is so often the challenge for people – sorting through the unnecessary elements and identifying the real issue. There is so much information, so many portals and solutions in this field. How do you digest it all and what do you do with it?

To really make sense of it all you need to start with the customer’s needs and then develop solutions from there. This is the only way that you know you are on the path of providing them with the value they deserve. One day when you decide it’s time to move on and take on different business challenges, what type of legacy do you hope to leave behind? I am the type of person that likes to get things done and if possible have some fun along the way. I think most people who have worked with me know me for my sense of urgency and my expectation that everything will be ready by tomorrow! So I think the legacy of leading the pack is of utmost importance. This is a very competitive environment and you need to be ahead at all times. I know I am fairly good at developing a plan and helping people deliver on that plan. Ultimately it translates into a very high performance environment and I know it can at times be tough on people – which is why I always tell my team that while we are here let’s do it three hundred percent and not only one hundred percent. We don’t have to be here forever but while we are let’s do it better than anyone else. To be frank, we are not always better and we don’t always get it right. I think believing you are simply the best all the time can be interpreted as arrogance. I will say though that there is definitely a drive and desire on the part of my team to grow and learn and keep their minds open when things don’t work out as they should. I also believe that bringing new opportunities to your people is critical. If they are busy with new things that challenge them they will be happy with their work environment. Life can be difficult enough at times, so if they can be at work and enjoy what they are doing, although it’s sometimes tough, I know it is the best legacy you can leave behind.

CEO 2018 Vol 17.1

Cyril Ramaphosa Facing Down Your Boss by René Carayol, global keynote speaker, leadership guru, writer, broadcaster and author

You really have to want to be a leader. It’s a huge privilege to have the opportunity to lead others, but it’s always been a difficult role and so it must remain. Leadership has many responsibilities that affect people’s lives and should therefore be taken very seriously.

t is never a good start to focus on the decision-making authority that a new leader will acquire, it must always be about the serious (and usually challenging) responsibilities they will have to deliver against. When the leadership opportunity is to be the next head of state, when you are the Deputy President, reporting to a President that you fundamentally disagree with, then the huge responsibilities simply multiply and are under incredible and sustained public scrutiny. Cyril Ramaphosa has proved over the years that he can lead in a multitude of environments. Ramaphosa is a qualified lawyer, a former trade union boss and anti-apartheid campaigner. Many thought his time had come to be the next President of South Africa when Nelson Mandela gracefully stepped down in 1998. Desire and Energy are Formidable Assets The analysts were convinced that he was Mandela’s first choice to succeed him, and there is some truth in that, but life is rarely that straight forward. He was thoroughly disappointed when he was passed over. It hurt even more when he was not considered for the post of Deputy President. He then threw his hat in the ring to become Minister of Finance, but that didn’t work out either. There are only so many disappointments anyone can take, and he was soon to turn his back on politics and would go on to make his fortune in business. Whilst he had been away the political situation for his party, the African National Congress (ANC), only got worse, and things have started to look extremely bleak. This time around Ramaphosa campaigned vigorously using his quiet ‘behind the scenes’ approach to win the Presidency of the ANC by the skin of his teeth. The party remains deeply polarised, however, every day that passes sees the Head of State, President Zuma, become a little weaker as Ramaphosa becomes a little stronger.

CEO 2018 Vol 17.1

Nothing Starts Without Hope He has already brought much hope, as the value of the South African Rand has spurted upwards since the announcement of his success. The real work starts now. Carayol was recently a guest at a very special South African society wedding in upmarket Johannesburg. The weather had been kind to us, and the sun was bouncing off the glittering dresses and the bright African sartorial elegance. But it was Saturday 13th of January and this prestigious wedding was inadvertently competing with the ANC’s 106-year anniversary celebrations being held in East London over in the Eastern Cape. Oliver Tambo Airport was unusually jam packed first thing on a Saturday morning. The normal airfare to East London was ramped up from R6,000 to R15,000, as just about anyone with political aspirations made their way to East London to listen to the recently elected President of the ANC, Cyril Ramaphosa, make his first address to the party as leader. Surprisingly, Nkosazana Dlamini-Zuma, Ramaphosa’s chief rival for the ANC presidency, was a guest of honour at this wonderful wedding, and had not made her way to East London – maybe she now realises that her leadership moment has perhaps come and gone. Poor Leadership is Worse than No Leadership South Africa has suffered from indifferent leadership since Nelson Mandela. But at the age of 65, and having made millions in his time in business, is Ramaphosa really the answer? Is he the leader that will heal the divisions, mend the broken economy and take a hard line with the corruption and graft which has become the byword for Zuma’s time in office? Ramaphosa was born in Soweto in 1952. His paternal grandfather walked for three months to get to the mines, where he worked for six months, before having to walk three months back again to get home.

CEO 2018 Vol 17.1

These memories of hardship and hard work are not likely to be forgotten and have helped to forge who he is today. If You’re Not Bold You Will Fail This may just be his perfect opportunity, Ramaphosa is one of few senior government and African National Congress (ANC) officials who have called out the disparaged Gupta family for their influence on big government decisions and deals. He now needs to act, and act fast and assertively, he is already starting to demonstrate that he has the guile and the stomach for what will be a bitter and tenacious fight to clean up both the government and ANC. Whilst the voting of the ANC delivered him his victory, it also delivered the top six elected officials of the ANC. Many of them were Zuma loyalists, he needs to crack this – and soon. Traditionally, the ANC has been run by consensus, not by voting. His reputation for strong and forceful negotiating will be needed again and again. The ANC usually goes for a clear slate by backing a leader who is surrounded by their loyal supporters. This time things are very different, they have clearly gone for a ‘mixed’ slate, knowing full well that the top team’s allegiances may well be split. Ramaphosa has a carefully managed reputation of being charming, charismatic and strong willed with high selfconfidence. He is not known for dramatic statements and actions, as he continues to manage both his persona and image extremely carefully. This is a lesson hard learned from his previous tilt at the top job. He operates brilliantly behind closed doors without fanfare or trumpets. Tellingly, he is the first President of the ANC who does not come from the exiled wing of the ANC leadership. This is a huge and symbolic change from the past. What do You Stand For? They might just be on to something here. He has started well, and everyone needs clear symbols of change, and he took all of the top six of the ANC to visit the Zulu King and then took all of them again to visit the Xhosa King. These are two very influential tribal leaders and was a visible and instructive signal of inclusion. The big question everybody is asking is when will President Zuma go? And will Ramaphosa move to push him out soon? In South Africa there are three ways to get rid of a president; a vote of no confidence, impeachment or resignation. Given that Ramaphosa is a smooth operator, it would make no sense for a fiery and destructive confrontation. If there is one thing we have learnt from recent history in Africa, when the ‘Big Men’ do eventually go, they are soon forgotten. Just think, Dos Santos in Angola, Jammeh in Gambia and of course, Mugabe in Zimbabwe. Whilst it will infuriate many who would want Zuma brought before the law courts, the best way forward might just be to let him go quietly – in

return for going quickly. Ramaphosa will look to provide Zuma with an elegant exit and just let the nation move on positively. When it comes to Africa, we tend to overestimate the short-term impact of key decisions, whilst underestimating the long-term hard work they bring. Just let him go, as with him out of the way, the painstaking hard work and rebuilding can commence. There’s Never a Perfect Moment Sometimes in politics, timing is everything, whilst the ANC is divided and needs strong leadership to get it back on track, the opposition parties are all distracted as well. The Democratic Alliance (DA) is also divided and the leadership is busy taking lumps out of each other, and the Economic Freedom Fighters (EFF), whilst talking up their ability to potentially become the king makers in a tight presidential election, still appear far too raucous and reckless to come anywhere near being close to power. A big question for Ramaphosa is which way to go? In Africa, popular and powerful rhetoric can give the leader all the powerful influence and control they need, but most in South Africa have become fed up with words and now demand tangible action. This always takes so much longer than the effective soundbites. There are a few other supplementary questions that need to be asked:  Can he bring Business and Government together?  Can he bring South Africa into Africa?  Can he heal the vicious divides in the ANC? It is obvious to all where he needs to start, and that’s the sorting of the big systemic issues around corruption. The buzzword in South Africa is ‘State Capture’, which pointedly refers mainly to the Gupta Bothers. They have become billionaires in South Africa on the back of their extremely close and insidious relationship with President Zuma and his family. As an earlier line of defence, the Gupta’s used the now discredited and broken UK PR agency, Bell Pottinger, to create a storm (and a smokescreen) around the other favourite South African buzzwords ‘White Monopoly Capital’. This is a euphemism for the whites still running the country, and having the blacks still serve them. This has led to one of the most powerful criticisms thrown at Ramaphosa. His previous life as a business tycoon, making huge amounts of money, has made it easy for some to question his independence from South Africa’s business barons. This begs the question; does business lead politics or does politics lead business in South Africa? One thing we do know, is that politics leads the economy. The recent wall to wall media coverage can inadvertently make many perhaps feel that the perpetrators of this state corruption are all Black or Indian. The recent Steinhoff business debacle moved the corruption beyond the Blacks and Indians, there is no racial monopoly when it comes to corruption, there are far too many greedy noses of all backgrounds in the trough.

The Prize is Huge If he could even just begin to sort this current mess out, there is so much international and African goodwill readily available, not to mention the mountain of eager international credit ready to come piling into South Africa. It is still a really easy place for multinationals to do business and it may not take that long to have the welcome signs up and for the trade flows to become positive again. But it will not be straight forward – an example of how deep the rot has set it in, is the national flag carrier, South African Airways (SAA). The airline has had a chequered recent history that matches the failings of the South African government. It should be one of the bright stars, if not the leading lights of African aviation. But it has had to be continuously financially supported and bailed out by the government. It has been a visible and disgraceful shambles of management. Aviation is one of the toughest and most unrelenting industries of late, it’s not a place for well-meaning amateurs. The political appointees have had zero experience or expertise in the aviation industry, and as each one has had to be removed another wrongheaded appointment is lined up to deliver even more losses. Last month, the airline received another bailout, of about R2.3 billion, with no stringent conditions attached. The newly appointed CEO comes from Vodacom and is the first permanent appointment since November 2015. Everybody knows that SAA needs to be much smaller, far better run with a much lower cost base, making it fit for purpose. There are many strong businesses still providing backing and support for SAA, but how long can they continue doing this whilst substandard politically appointed CEO’s just take the business backwards and makes South Africa a laughing stock.

Ramaphosa would benefit from bringing a much needed fresh and selfless approach to the leadership of both the ANC, and potentially, South Africa. He should consider the following:  Speaking out, especially when it’s not convenient or safe to do so,  Being his authentic self, and resist playing to the gallery,  Not everything will be perfect, but he must still try without fear of favour,  The old ways are broken, time for a bold new approach and  Think and act beyond ethnicity, race, gender, religion and political persuasion. Zuma’s allies have been rifling through Ramaphosa’s past trying to find some skeletons. All they have found is a few emails to some former girlfriends, which is unpleasant, shameful and of course should have never have happened, but there was nothing there strong enough to bring him down even in today’s turbulent times. Throughout all of this recent mayhem, the judiciary, the media and civil society in South Africa have all stood out against all the turmoil by being independent, strong and vociferous. Ramaphosa may have latched on to something that may just differentiate him from the previous leadership. He has promised to bring free higher education, who knows how he will pay for this, but it is precisely what the increasingly influential younger generation need to hear. Ramaphosa’s opponents should be wary of lumping together the claims that he is under the influence of white minority capital, with his closeness and understanding of the need to have business closely aligned to the necessary transformation of South Africa, because rather than tarnishing the former they may find they are de-legitimising the latter. Maybe something unique is happening in southern Africa, as in both Zimbabwe and Angola autocratic presidents who had been in power for almost four decades lost power in 2017 in very different ways. South Africa also deserves better leadership and demands it now. And in the words of the father of the new South Africa, “The greatest glory in living lies not in never falling, but in rising every time we fall” – Nelson Mandela.

Think Big - Act Small However, business confidence is already growing since Ramaphosa’s appointment – the Rand is getting stronger and the very strong and capable Central Bank team and a strong Treasury team are well equipped for the challenges ahead, but as ever the issue is politics. As we know, leaders need to really want the job and Ramaphosa really wants the job of President of South Africa. He doesn’t need the money and he has fully embraced the vision and values that Nelson Mandela had for South Africa.

About the Author René Carayol is a global keynote speaker, leadership guru, writer, broadcaster and author. A veteran business executive he focuses on inspirational leadership and high performing cultures, bound together with his compelling ‘spike’ philosophy founded on his own board level experience. www.carayol.com rene@carayol.com

It is still a really easy place for multinationals to do business and it may not take that long to have the welcome signs up and for the trade flows to become positive again.

CEO 2018 Vol 17.1

Keep Your

Feet on The Ground and

Reach for the Stars

Director at Samsung South Africa Service, Richard Chetty embodies the famous David Gresham saying, ‘keep your feet on the ground and reach for the stars’. His journey is inspirational and humbling.

n extrovert at heart and someone who enjoys speaking to strangers and making real connections with people, Richard found a niche in his school debating team. After school, he got a job at a market research company, where his personable manner stood him in good stead for the numerous research phone calls he had to make. Richard enrolled in UNISA to study a BComm in Business Management, but fcould not afford the fees and battled to get through his studies. He did manage to study quality management through his company and was promoted to Quality Manager; and in this role helped the company achieve accreditation for ISO 9001. But on his salary, Richard was barely managing to pay his rent. He applied for a job at ABSA bank and was delighted when he was offered a position that paid four times his then salary. Richard excelled in the new company, heading up the sales call centre and serving as head of the Eastgate Trade area in Retail Banking. While at ABSA, Richard gained a certificate in Credit Management and as one of the only people of colour at the bank at the time, headed up the Business Development Forum in an effort to bring about transformation in the organisation. From there, Richard never had to apply for a job again – his journey is all about being head-hunted into ever more senior positions. From ABSA, the Automobile Association called him to head up their sales and service division. It was there that Richard was told he’d reached the ceiling in terms of his qualifications and was given an opportunity to do a special management development programme though Harvard Business School. Soon, Richard was head-hunted again, this time by BMW, where he headed up the customer service division. Anyone who has owned a BMW has Richard’s innovation and vision to thank for the BMW on call service. He so impressed the global management team that Richard was given free reign to create a new role for himself – he chose to create a position of Head of Innovation and Strategy. It was while working at BMW that Richard achieved a certificate in management, his Master’s in Business and attended a Leadership Development Programme at Pretoria University. One of his tasks at BMW was to double the manufacturing capability of the plant in Rosslyn and to understand the process, Richard spent time in Germany and the UK, absorbing as much information he could. He spent time at the Mini

factory, as well as the Rolls Royce manufacturing plant, to learn how to ensure premium quality. Richard was successful in his bid to increase manufacturing capability and in the process created 5 000 new job opportunities. To understand the impact of the factory’s increased capability, Richard spent time with local communities and with Unions, building relationships and negotiating shift planning. Richard had moved into a position of Head of Learning and Development when Jaguar Landrover head-hunted him for their Board of Directors. Once again, this small-town boy proved himself worth his weight in gold as the after-sales and Technical Director, heading up the Kenyan manufacturing plant and being responsible for service throughout Africa. While at Jaguar Landrover, Richard set up the new aluminium paint and body shops and spent his time between South Africa and the UK. Samsung saw the value in Richard with his vast experience, huge talent for growth and innovation. Richard says that his role at Samsung enables him to use all his accumulated knowledge and experience in an exciting arena where he feels he can make a serious difference, not only to the service levels of Samsung, but also to those around him. In just over four years, Richard’s input has pushed Samsung South Africa to the top in terms of best practise and service delivery. He managed to take the cell phone repair process from 21 days to one hour, instituted the service vans offering, along with numerous other innovations that positively impact Samsung user’s service experience. He’s also put together two empowerment programmes: Firstly, The Women Technical Programme, which trains women in engineering. With the programme in its second year, Samsung now employs around 40 women in their technical centres. The other programme, called Boys To Men, helps unemployed young men become valued and positive influences and contributors in their communities. Richard’s advice to young people starting out is, “Never give up. Stay humble and work as hard as you need to get where you want to go.” Richard’s journey is a testament to what can be achieved if you put your head down, appreciate what you have and always keep other’s in mind. He’s a prime example of the quality of people that Samsung strives to employ.

CEO 2018 Vol 17.1

Low Card Acceptance and at

Informal Enterprises Despite High Consumer Demand

Around 96% of transactions are still conducted in cash among South Africa’s 1.5 - million informal enterprises, despite strong interest in digital and card payments by consumers.

ore than 51% of South Africa’s informal enterprises have encountered strong customer interest in paying by card, yet around 90% of them continue to run as cash-only businesses. This is according to Insights into the Informal Economy Report, a Mastercard study released at the company’s Digital Indaba in Cape Town last week. Despite rural and township residents using cards for 60% of their transactions at formal retailers, only four percent of transactions are card based at informal retailers. This is due to these small traders not offering card or mobile acceptance. “Card acceptance is highly attractive for informal traders and is an important next step to increase revenue, but lack of access to formal banking tools and understanding of available payment options limits their opportunity for

CEO 2018 Vol 17.1

growth,” says Gabriël Swanepoel, Vice President of Product Development and Innovation at Mastercard South Africa. Conducted by Genesis Analytics on behalf of Mastercard, the study looks at understanding trends in payment instrument usage – from cash to card - and estimates the opportunity for cash displacement in the informal sector. Exposed to the costs and risks of cash South Africa has around 1.5 - million informal enterprises generating turnover of around R75 - billion a year. Absorbing 12% of the country’s labour force, they provide a valuable source of employment and income for some of the country’s most financially vulnerable. Ninety-six percent of transactions at informal retailers are still concluded using

South Africa has around 1.5 - million informal enterprises generating turnover of around R75 - billion a year.

 Evasion of tax payments;  A relatively high percentage (45%) of consumers receive salary payments in cash. In addition, misconceptions persist about the high cost of card usage, particularly for low value payments, and some consumers remain reluctant to use cards for small transactions.

cash, exposing them to high cash handling and transaction costs, lost sales when customers don’t have cash or exact change to pay, and the threat of crime. The study identified six major reasons why cash still rules the informal economy:  The perceived costs of accepting mobile and digital payments;  A lack of knowledge and awareness about the solutions available for card acceptance and the benefits of going cashless;  Lack of formal banking facilities;  A belief that cash makes it simpler to budget accurately when handling small amounts of money;

Smartphones to unlock digital acceptance in informal sector The use of smartphones amongst informal enterprises and their customers was found to be relatively high, driven by the decline in the cost of smartphones and the strong demand for digital messaging services and social media platforms. Fifty-nine percent of merchants and 69% of consumers interviewed have smartphones. Yet none of the merchants in the sample were using smartphone-based card acceptance solutions. When asked if they would consider using these solutions, they expressed great interest if the economics made sense. Twenty-two percent said they would be interested in using a QR-code solution, 44% said they would be interested in mobile payments apps, and 40% said they would be interested in a point of sale (POS) or mobile POS card acceptance solution. The study finds that merchants who introduced card acceptance reported an average increase in turnover of 50%, while those that introduced mobile payment acceptance via Quick Response (QR) codes saw their revenues climb by 10%. Educating merchants about the benefits of digital and card payments as well as the low-cost options available for digital payments acceptance are central to shifting billions of rand in transactions from cash to digital channels. “The latest wave of mobile and digital innovations will help grow financial inclusion among informal merchants that play a critical role in South Africa’s economy,” says Swanepoel. “Together with partners like Spazapp and iKhokha, we are working to significantly boost card payment and card acceptance at micro, small and medium enterprises in informal settlements.”

CEO 2018 Vol 17.1

Effective cash management

in uncertain times

South African businesses are facing enormous uncertainty. The South African Business Confidence Index of the Bureau of Economic Research (BER) at the University of Stellenbosch reflects this. The BCI hit an all-time low in the second quarter of 2017.

hen discussing succession planning most focus on current socio-economic and political uncertainty, which puts a lot of pressure on business in general, and on SMMEs in particular. In such an environment, cash-flow becomes critical to ensure business survival, and even more so for SMMEs than for larger businesses. Should a supplier not pay on time, it could have a substantial negative impact - on for instance the ability to pay salaries. Feeling the pressure In the current business climate, two aspects stand out. One being a company in a favourable cash position monthon-month, where it is still making good revenue, but not re-investing that cash. Due to the uncertainty, it tends to ‘sit’ on surplus cash, waiting to see what happens in the market, before making any investment decisions. The other aspect we see is that some companies who historically have had good cash reserves are feeling the pressure of the state of the economy and are now drawing down on them. Either way, the ability to maximise returns on reserves is a critical requirement, particularly for small businesses. In uncertain times there tends to be a focus on cutting costs as opposed to maximizing operational cash which can enhance the bottom-line. What could business owners do under the circumstances? Investing cash with a bank that offers great returns and thereby enhancing ‘passive’ income would be a very good option, with virtually no market risk. The capital is guaranteed as opposed to investing in equities where there is always a certain amount of

CEO 2018 Vol 17.1

risk. They could also look to a bank that can provide them with professional and personalised service – for example a private banker. In a small business where the owner is often doing sales, operations, marketing and finance, a personalised banking service can free up time and therefore assist the owner to do what they do best - managing and growing their businesses. Rate transparency Business owners must understand how their banks quote on various cash investment rates for an example; nominal and effective rates; one bank might quote an annual effective rate, another a monthly rate; yet another might quote a specific yield. Companies could ask their bank to quote on all of them, so they are able to compare like-for-like. It is also critical to understand how the product will meet business owners’ liquidity requirements, and determine the appropriate period of the investment. It is important to be able to access cash when needed, while at the same time maximising return. This means finding a balance between short-and medium-term. Removing the hassle factor Time remains a critical factor in any business. A bank should make cash investments as simple as possible. Nowadays, with online banking services, it should not be necessary for a business owner to go to a bank branch in person. Personalised service with the support of online banking, helps to remove the hassle factor. A dedicated banker will be able to guide a client through the process. When business owners are looking for a bank to ‘park’ their cash investments, the service component should be the very first thing on their minds.

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CEO 2018 Vol 17.1

NOT TICKING ANYONE

OFF?

By Adam Gifford

THEN YOU JUST AREN’T TRYING HARD ENOUGH! When was the last time you really offended someone at work? If you are a leader and your answer was ‘never’, you may want to rethink your job title. After all, American statesman and retired fourstar general in the US Army Colin Powell had a point when he said, “being responsible sometimes means pissing people off.”

f course, we’re not saying that if you’re a jerk, you’ll do great things. Quite the contrary. But we are suggesting the flip side of that equation – that if you’re never willing to make unpopular choices, there is the possibility you won’t do anything transformative in your career. Because let’s face it, most meaningful achievements probably required a fight to get there. The mark of a visionary leader is someone who’s not swayed off track when thumbs-up go swiftly south. Trying to remain popular can all too often stand in the way of being effective. If you want to leave a legacy, you have to be willing to take the heat. Otherwise, you’ll never shape anything that can outlast the fads. It’s the difference between taking people where they ought to go as compared to where they believe they want to go.

CEO 2018 Vol 17.1

The majority doesn’t have the best track record Let’s face it, the majority is often complacent. Looking down the halls of human history, many of our finest moments were forged in spite of the crowds and status quo. If it were a matter of conformance, the world would still be flat; women would still be unable to vote; and South Africa may have started a post-apartheid civil war. Liberation movements and step changes in business may be carried out by many, but they’re almost always captained by the few. It takes a Joan of Arc and a Steve Jobs to go out swinging before others follow. If you’re too busy trying to get everyone to like your ideas, you’ll probably end up cornering your product into a stalemate, or to the point of being impotent and ineffective. The more impact you have, the more alone you’re likely to feel, because leadership requires a consistent stride in front. On the flip side, leadership is also the ability to take people on the journey with you, even if it wasn’t the place

they thought they should go. This requires tough decisions, including confronting those who need to be confronted. Doing so will quickly differentiate your ‘supporters’ from those who are committed to a strategy and getting it done. ‘Supporters’ stand on the sidelines cheering whilst the committed ones do all of the work. Support is quicksand to organisational reform and far more insidious than dissent. Know the conflict you’re working with Opposition is not a bad thing. Ticking people off is to be expected, if you want to leave a compelling footprint. But when dissension knocks on your door, you need to know what kind of conflict you’re working with, and how best to tip the tension towards your greater advantage. Within any organisation, bruised egos and brittle-boned loyalties to “the way it’s always been done” are dangerous contenders. They’re loud; they’re disruptive, and you have to handle them with care. Often times, the best way to handle them is to graciously ignore the bark, since the bite is bearable, and just keep going. But on the other hand, some conflict is your company’s secret sauce – and you’d be rewarded by paying attention to it. You need to be able to ask the question, is this particular head but a handbrake or an opportunity? If it’s the latter, use all of your EQ and resources available to transform these differences

of opinion into creative tension that fuels the organisation forward. A good leader understands that there actually is an “I” in team. But, at the same time, the team only works best when divergent skills and personalities are given room to operate collaboratively, in a way that works best for them. Turn your resistance into opportunity In his HBR article, writer and Innovations Editor Philip Auerswald writes about how even the underdog can push back the onslaught of incumbent resistance and come out on top, by making the competition the enemy and your cause the venerable hero. As Auerswald put it, “The more disruptive your innovation, the more your success needs to look like the creation of a political movement.” Thankyou is a social enterprise that understands this concept pretty well. “We wanted to tackle a huge global problem (lack of clean water) with a huge global product, and the product to get us there was bottled water,” says Daniel Flynn, its co-founder. “We felt the link was very important for customers: buying water and funding water, and buying food and funding food, and so on.” Ahead of a big meeting with Australian chainstore 7-Eleven, Thankyou went public and asked fans to jump onto 7-Eleven’s wall and tell them that if they stocked Thankyou water, they’d buy it. The gamble worked and Thankyou water was on 7-Eleven shelves within weeks. But to win over the bigger retail giants with similar food and body care products would take far more daring actions. In their six-minute video on YouTube, they told fans that they wanted to present to Coles and Woolies. It was viewed 80 000 in two weeks. They also convinced donors to fund two helicopters to fly around Coles and Woolworths’ head offices carrying a ten thousand square foot sign which read: “Dear Coles / Woolworths, Thankyou for changing the world! (if you say yes)”. The rest, as they say, is history with the startup having raised $2.5 million to give 150 000 people access to water, and 190 000 access to hygiene and sanitation, as well as 12.1 million days’ worth of food aid in 16 countries in six and a half years. Good leaders understand that ideas wait for no one, and when they come, it’s our job to pull them down into reality. As designer Charlie Wollberg says, “If you don’t bring that idea to life, it’ll go out and inspire someone else. Because even if people like to wait, the ideas don’t like to.” Get comfortable with being uncomfortable In a constant world of disruptive overhaul, we need to sidle up to friction and get comfortable with critique. Ticking people off is not something to aim for, but it’s often a vital part of moving forward – and will help reveal who you’re moving forward with. The point is to accept that it’s going to be a part of where you’re headed. After all, if you’re not ticking anyone off – perhaps you should be!

CEO 2018 Vol 17.1

PRETTY. DEADLY. When Chinese Lanterns, also known as Sky Lanterns, are released from beaches, they are often mistaken foremergency distress flares. NSRI volunteers then launch rescue boats and spend hours looking for people in difficulty.

Chinese Lanterns are also harmful to the environment and are a fire hazard.

Insurance  Cyber Choosing the right cyber insurance provider Green  Going How Do you Know When Green Really Means Green

 IT Provider

Can businesses afford to use an IT provider who isn’t vendor certified?

CEO 2018 Vol 17.1

Two-factor

AUTHENTICATION should be a staple

CEO 2018 Vol 17.1

The tools for two-factor authentication have been available for about a decade and in an era of increasing cyber crime, fraud and identity theft, thus two layers of authentication at the very least should be a staple for security. But it is not. While some are already graduating to multi-factor authentication, an alarming number of companies rely on single factor authentication such as passwords exclusively.

“C

ybercriminals are always cultivating new methods for accessing bank accounts, company information systems and other online services,” says Lipsky Raseasala, an IT security consultant at Securicom, a leader in managed IT security solutions. Motivated by financial gain, hackers are and will continue to find ways to get their hands on peoples’ credentials to gain access to user accounts and company systems. It’s how they make their money. Companies need to move away from relying on passwords only for authorizing user access to their IT systems. Two-factor authentication for verifying user credentials has been around for more than ten years. It’s that extra layer of authentication or verification to prove who users say they are in order to access accounts and other resources. Single factor authentication can be a password, where most cases you need to enter the identity (username) and then the password to gain access. Second factor authentication involves an extra, identifying link to the person that belongs to that person alone, such as a body part, like an eye or finger print, or a device like a smartphone, laptop or hard tokens (a hardware security device used to authorize a user). According to Raseasala, larger companies have added two-factor authentication to verify users accessing IT resources, especially for employees working remotely who require access to the servers via SSL (secure socket layer) VPN (virtual private network). Adding a second factor of authentication or verification adds an extra layer of security that makes it more difficult to gain unauthorized access. However, small and medium sized businesses are lagging behind, leaving their IT systems vulnerable. “The unauthorized access of systems using usernames and passwords is now commonplace,” says Raseasala. Major breaches have occurred in organizations that use only single factor authentication, where the credentials of a single user have been utilized to access company systems. “As hackers hone their methods of attack, breaches are also happening within organizations that have implemented two-factor authentication. Hackers for instance are creating malware that is designed specifically to target tokens such as soft tokens popular on smartphones. “Where unauthorized exposure of company resources would place a business at risk, such as for organizations that process and store sensitive information such as personal information, additional controls need to be incorporated to monitor and continuously authenticate users while they are accessing those resources,” he explains, adding that layers such as device recognition, IP reputation, PKI certificates, geo-location, geofencing, group entitlements, access histories and behavioural biometrics can be added to check credentials and authenticate users. This is referred to as multi-factor authentication, something you have, something you know and something you are. “Multi-factor authentication is certainly the way forward. However, any additional layers or controls that are added need to be integrated mindfully so as not to hamper productivity,” continues Raseasala It is also important to note that no two companies have the same access and security requirements. One size certainly does not fit all when it comes to allowing users’ access to information resources. “If you are in doubt, consult with qualified, outsourced IT security providers who will be able to assess your security requirements and advise on a two-factor or multi-factor authentication process that will allow you to effectively manage risk and user productivity at the same time,” concludes Raseasala.

CEO 2018 Vol 17.1

Securing the mobile enterprise

The use of personal mobile devices in the workplace has skyrocketed, creating unprecedented threats to information security. Organisations that are geared up to meet these risks can reap tremendous gains in productivity and competitive advantage.

o says Lauren Wain, General Manager at Credence Security, who explains that staff members want to access work files from the same smart phones they use to update their social media, text their friends, and do their online banking. “The benefits are clear: Accessing company data information from smart devices enables workers to be more accurate, efficient and flexible,” says Wain. However, as undeniable as the benefits are, so are the risks. “Just think about how easy it is to lose a smartphone. These can be left in a cab, at an airport or in a restaurant. Once lost, the device is a total liability, containing a host of proprietary company information, work contacts, personal messages and customer data – all of which is now at risk of getting into the wrong hands.” And losing a device isn’t the only danger, she says. “Mobile phones, tablets and wearables, can also expose businesses to data loss as a result of malicious software such as viruses, worms and Trojans.” Then there’s the threat of social engineering. “Most people totally overshare on social networking, and employees can easily divulge sensitive company information purely by accident, or should they fall prey to clever cyber criminals. Cloud applications are also a danger, as they blur the lines between control and ownership of data. The dangers are endless,” states Wain.

CEO 2018 Vol 17.1

The first thing a business needs to do is update the governance model to include mobile information-sharing rules and regulations, and clearly define the objectives for managing mobility risks. “Formulate a mobile device policy that sets out the rules, policies and procedures governing the use of mobile devices within the work environment. This needs to include personal devices that attach to the corporate network, as well as any company issued devices,” she says. Policies should cover areas such as device and infrastructure security, roles and responsibilities, security assessments, training, and what to do in the event of a lost or stolen device. “Also, ensure that all devices that plug in to the company network have some good AV installed, as this will protect against the usual malware, spyware, viruses and the associated attacks,” Wain comments. Certain products on the market feature anti-spam capabilities too, and firewalls to guard against any unwanted or suspicious connections by intercepting incoming and outgoing connections based on pre-set rules, and blocking or allowing them as necessary.” Wain adds that it is also a good idea to set automatic updates to ensure all the bases are covered. “It is useless to have a good anti malware solution if it is left to get outdated, and procedures can be set to make sure updates happen as they are made available.”

How do you know when

GREEN REALLY

MEANS GREEN? By John J Coetzee, CEO, Green Worx Cleaning Solutions.

It is no secret that ‘going Green’ is a growing trend with many positive effects. However, how do you know when green really means green? There are many products and energy saving ‘tips’ that don’t actually benefit a green environment all that much.

“I

t is pivotal to do your homework,” states Coetzee Make sure that the products you are buying are made of products that, once broken down, create organic nutrients that can be released safely back into the environment. There are many different, easy ways that everyone can adjust in their daily lives in order to live a greener lifestyle. How? Consider finding ways to save energy and water. Cutting back on when you use hot water and how much of that water you use are both very productive ways of living green with a direct positive impact on nature and energy conservation. Cut one minute off of your shower each day or fill the bath tub just a little less. Another way of cutting water is to ensure that the cleaning products you use meet the Green Star Eco Profile. This, in turn, will bolster businesses Green Building Council of South Africa (GBCSA) rating making them cleaner, greener and smarter. Another way to make sure you are living your best green life is to ensure that the products you are buying are not tested on animals. No product is truly green if creatures were harmed in the development or manufacturing of the products. Products should also not contain any harsh chemicals that could be damaging to animals, as well as to humans, in any way. According to a study done by Annie Mckee on the cleaning products used in hospitals, it was found that 80% of janitors considered their work not just a job but a calling with true worth – as they are cleaning and sterilising the environment where people came to heal. How they took care to fully invest their energy into this calling was to take pride in only using products that were completely safe and beneficial in sterilising the sensitive environment that they worked in. Taking pride in a clean and sterile environment promotes health and happiness. Using these products offer extreme benefits to the environment as well, resulting in healthier surroundings as there is no chemical run off into the water systems or air pollution through volatile organic compounds (VOCs). “The key benefits are that harmful chemical compounds are not released into the atmosphere or into our water systems, and workers, families and pets are not exposed to toxic fumes and chemicals. Make sure what you are using is truly green - the benefits will be self-evident,” concludes Coetzee.

CEO 2018 Vol 17.1

Converged infrastructure &

hyper-convergence gains momentum in SA â&#x20AC;&#x201C; but what are the challenges? by Nick Wonfor, Enterprise Account Manager at Commvault South Africa.

Converged infrastructure and hyper-convergence is gaining traction among business IT departments wishing to enable digital transformation while under the constant pressure of increasingly tightening budgets. However, transitioning to converged infrastructure can be fraught with challenges from implementing a strategy and execution plan, to planning for data integration and change management.

usinesses are already grappling with leveraging the advantages of trends such as Big Data and hybrid environments. Making the change to a converged infrastructure only adds to the pressure faced by CIOs and IT managers as issues such as divisiveness and lack of consensus on objectives arise. To achieve harmony, organisations need to focus on creating an environment in which consensus and productivity can flourish by addressing common pitfalls before they can occur. Nick Wonfor, Enterprise Account Manager at Commvault, says that for the transition to converged infrastructure to be successful, organisations need to be thinking ahead. “Successful convergence begins with a business’s home teams,” says Nick. Before embarking on this journey, businesses have to consider developing crossfunctional alignment on objectives for convergence, cost

There are many perceived benefits of a converged infrastructure driving its demand, such as having a secure on-premises solution combined with the agility and economy of a cloud solution. considerations of new investments and setting a long-range vision for their converged environment. It’s also imperative that teams understand and agree on how convergence fits into the bigger picture of adding business value to the organisation,” says Wonfor. There are many perceived benefits of a converged infrastructure driving its demand, such as having a secure on-premises solution combined with the agility and economy of a cloud solution. However, Wonfor notes that success in executing an enterprise-level initiative lies in the alignment of the entire leadership team. “Often, CEOs underestimate the importance of clear communication and an alignment of vision, and the result can lead to ineffective strategies. Before an organisation takes a step toward convergence they need to ensure that all members of the team, from Executives to the IT department, can clearly articulate what their vision of a converged infrastructure is, so as to avoid missed objectives,” advises Wonfor. The impact on the business’s value is another component which needs to be factored in from the start, according to Wonfor. Initiatives such as moving to a converged, or hyperconverged infrastructure, needs to have the backing of faith in

the business value of such a move, which in turn needs to be clearly communicated to the enterprise at large. “The link between business strategy and the business value to be found in converged infrastructure, such as enabling digital transformation, improving customer experience and strengthening a cloud investment, must be defined and shared. This drives adoption internally, while promoting alignment with business strategy,” explains Wonfor. With the constant drive to reduce IT spend, costs of converged infrastructure implementation is another factor to take into account. A McKinsey study found that on average, large IT projects run a 45% over budget and 7% over time, while delivering 56% less value than predicted. Wonfor adds that the key to preventing this common occurrence and stay within budget, a team needs to relate to the vision of a converged infrastructure, and be motivated to realise this vision with minimal cost impact. Keen and inclusive leadership which encourages unity and cohesion can go a long way to motivating staff to share and uphold an organisation’s vision. However, even with a motivated team and a shared vision, executing a converged infrastructure initiative still has its challenges in moving from vision to reality. “Solid project management is a must,” says Wonfor, “Adhering to shorter delivery life cycles to prevent waste, putting in place rigorous processes for managing engineering requirements and change requests, and a stable project scope are some of the essentials of a successful technology initiative.” To ensure deadlines and deliverables are met, project staffing must also be carefully planned. Ideally, IT staff committed to implementing a converged infrastructure should not be redeployed to other areas of business, no matter how ‘pressing’, so that delivery cycles are maintained and deadlines adhered to. Considering the importance of data as a valuable business asset today, many organisations are embracing a cloud strategy to lower data storage and management costs while extracting maximum value from their data. With the role of data on a business’s cloud strategy, it’s important to keep data management solutions and the way in which they mesh with - and support - a converged infrastructure alongside myriad cloud and VM environments, at the top of mind. “Effective leadership makes all the difference between a harmonious converged infrastructure strategy implementation, and one fraught with difficulties and delays,” concludes Wonfor. Proper alignment between all teams involved in the execution, and clearly defined objectives and vision will go a long way to maintaining enthusiasm, staying on track with deadlines and reaping the full rewards of convergence.

Can businesses afford to use an IT provider

who isn’t vendor certified? by Andre Muzerie, Oracle Business Practice Head -Africa, Wipro Limited.

In today’s digitally dominated business landscape, an organisation’s technology solutions are critical to its daily functionality, profitability and competitiveness. It is now more important than ever to ensure a business’s technology stack functions optimally for maximum efficiency, effectiveness and return. It is vital that organisations have solutions which are properly specified, planned and implemented by IT partners who know exactly what they are doing.

he surest way of measuring an IT partner’s knowledge with a particular technology is to assess their level of vendor certification. More than just a piece of paper, vendor certification stands as evidence that a service provider has in-depth knowledge regarding a specific product and solution. Up to date expertise Technology is evolving at a rapid pace, and organisations need to keep up. Vendor certification requires that a provider undergoes rigorous annual training, as well as supplementary training when updates or changes are introduced, in order to maintain their vendor certification level. This means that organisations who enlist the services of vendor certified providers can rest assured that their solution is deployed by a provider who is both experienced and abreast of the vendor’s most current technology. Assured Speed and accuracy Amidst a challenging economic environment, it is imperative that solutions are deployed correctly the first time. This calls for a highly effective and certified IT provider. These providers are equipped to understand customer problems and requirements, while taking into consideration the customer’s unique processes and structures. When implementing an IT solution, speed to deploy and accuracy are critical. Cloud solutions in particular, with their own set of integration complexities, require fast implementation with little to no room for error. Adjustments cost businesses time and money

CEO 2018 Vol 17.1

The surest way of measuring an IT partner’s knowledge with a particular technology is to assess their level of vendor certification.

which they can ill afford – and shouldn’t have to. Often, service providers understand the products they offer in theory, but when it comes to deployment it may transpire that general and theoretical knowledge does not necessarily equip them for real-life implementations. IT Providers typically have to roll out at least one actual solution for a customer as part of their grading in order to qualify for a certification - giving proof of the provider’s experience with deployments and “going live”. Investment in talent The necessary vendor training for certification typically requires significant capital and human resource investment. This training can take several weeks to complete. The costs associated with training are often high, particularly where training takes place overseas. When IT companies significantly invest in vendor certification, it demonstrates a commitment to vendors and the services that are delivered to the end user customer. Vendor backing Depending on the level of certification, certified IT providers usually have the support and backing of their vendors. Although certification provides a measure of assurance in terms of the solution, customers have different needs with varying levels of complexity. A certified partner may understand the intricacies of the solution offered, yet still encounter previously unknown difficulties. In these instances, having 24-hour vendor support proves crucial, and allows the provider to deliver on deployment speed and accuracy. Higher levels of certification also allow providers some leverage in terms of customisation. The higher the certification, the more influence a provider has on vendor solution design and strategies. Vendors usually provide higher level certified IT providers with dedicated resources, and often provide insight into product development. Given that these providers exhibit sound knowledge and experience of the vendor’s range of products and solutions their suggestions are usually taken in earnest. This is beneficial for larger organisations who may have unique customisation requirements. Many businesses opt for a service provider with the most cost effective solutions – not taking into account the high costs should the deployment fail - or take longer than necessary due to inexperience. The question that these organisations should be asking is: can I afford the risk of choosing an IT provider who is not sufficiently skilled, with the certification to prove it?

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Automation creating the worker of tomorrow by Andrew Hoseck – Chief Operating Officer at In2IT Technologies.

Job Simulator is a virtual reality game set in the future, where machines have replaced all human jobs. In this game, players can relive the “glory days” when people did regular work, such as being a chef, or working a 9-5, caffeinefueled desk job. If research is to be believed, we are in the midst of a massive workforce transformation, and the world envisioned in Job Simulator isn’t too far off.

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o beneficiate and export its commodity assets, countries throughout the continent need efficient transport and logistics environments. In the area of smart ports in particular, there are opportunities to combine business process reengineering with the introduction of smarter technology across the total facility: such as geolocation/geofencing; connected objects and devices; cloud-based services; mobility services; and big data analytics. With technology at the heart of the thinking, it becomes possible for ports to achieve:  Higher productivity levels;  Reduced operational costs;

Any job where productivity, efficiency or quality is constrained by the ability of a human to perform that task is a natural target for automation. Faced with stiff competition from other ports and alternative inland options and being a notoriously capitalintensive business, port operators place a heavy emphasis on cost control. This is a high-stakes game; as the efficiency of a nation’s ports has billowing effects for the country’s entire economy.

   

Improved levels of security; Higher safety standards; Increased service levels; Improved asset utilisation.

Ever-present challenges With limited ability and the financial implications to expand geographically and political pressure to lessen their environmental impact, ports are continually striving to generate better efficiencies and higher productivity. They require technology that caters for the ‘just in time’ nature of land-to-sea logistics, which helps to helps reduce dwell time and congestion, minimises damage and theft and ensures strong security and protection of national borders.

Connected devices, analytics, and mobility: a powerful blend Trusted outsourcing partners can demystify much of the complexity around new technology - working with ports to define the best solutions to address specific challenges, showing how technology has transformed other ports’ operations, and ultimately delivering and managing the services. For example, a port operator could pull together real-time information from various players in the ecosystem: truck drivers, hauliers, parking space operators, port road management and vessel tracking systems. By integrating this data into smart analytics platforms, it can inform the scheduling of trucks entering, off-loading, on-loading containers, and exiting the port. In fact, there are endless opportunities available by combining three related technology trends: connected devices, analytics and mobility. Every vehicle, device or asset in the port is connected with wireless technology, beaming information into an analytics platform, which then distributes useful information to any mobile device. This confluence of technology not only enables smoother operations, but helps port operators to fluidly integrate into external partner environments: such as shippers, carriers, agents/forwarders, trucking and rail companies, customs and government bodies. However, the truly transformative advantages of these new technologies go beyond faster reaction times and optimising logistics schedules. They lay the foundation for the future of predictive analytics, machinelearning and automation. With embedded sensors on vehicles and assets recording every movement in the port, patterns start to develop and the port’s operations can be automatically adjusted based on past experiences, and expected activity within the port. Eventually, through machine-learning, a port’s operations can be fully optimised - ensuring an efficient port management capability, and helping importers and exporters to deliver their services as quickly and competitively as possible.

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satellite 3 network success steps to

by Dr Dawie de Wet, CEO of Q-KON.

Network architects and solution design engineers mostly consider satellite networks as the final option â&#x20AC;&#x201C; only to be used when fibre, microwave or wireless networks cannot meet user needs. While this might be true for many applications, this approach might very well lead to implementation of solutions which are not optimal for the specific application.

Why Satellite?

If the answer to this question is â&#x20AC;&#x153;because nothing else is availableâ&#x20AC;? then, in all likelihood, the final outcome of the satellite solution and user service will be poor and disappointing. The reason for this is simple: Satellite cannot be a replacement for fibre, microwave or wireless. It is an alternative connectivity solution, not a replacement technology.

Fibre networks are mostly comprised of high capacity point-to-point links, whereas satellite networks are large-area point-to-multipoint distribution networks. To use satellite as a replacement for fibre will be almost as effective and efficient as it would be to use fibre to replace satellite for the DStv service in Africa.

Satellite technology should be used in line with its core strength, i.e. high reliability, distribution or aggregation of data over large areas to large number of end points. Typical scenarios are DStv distribution, ATM data networks, point-of-sale solutions and some niche broadband services.

he reason why network architects might not consider satellite as a prime connectivity option might very well be because they have not had a good experience, or alternatively, might not be fully informed about the technology. Because satellite is a niche solution, it is also seldom included in mainstream discussions and even very influential industry events might not have satellite as part of the workshop topics to be discussed. Here are some guidelines around designing effective satellite network solutions and unlocking the business benefits of using satellite:

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Business Models Design to fit

Eskimos have 50 different words for snow, and in the same way, satellite networks are a very specialised field. Although they are normally considered a “one-size-fits-all” type of solution, very different architectures are possible within the domain of satellite network design, with each servicing a very specific business need, from back-up services for high-capacity branch networks to primary packet data networks for ATM points.

To ensure sustainable business success, the satellite network must be designed for the specific user application. Even if the specific customer sites form part of a general service provider network, the design must still be able to ensure a functional match of these specific sites to user needs.

It is exactly this specific network design element that makes implementation of successful solutions on satellite networks challenging, to say the least. Often, large telco’s and service providers are reluctant to implement “customer specials”, either because their business processes can’t accommodate special projects, or they lack the third level satellite network engineering capabilities. In these cases, providers sadly push for implementation of the “standard solution” leading to a poor functional fit with the requirements and ultimately poor network performance.

The possible business models for satellite networks are very powerful and can be leveraged to almost match any business case requirement. For example, satellite networks can enable full-time dedicated contracts per site, or “on-demand” services or even “pay-per-use” options. To define, support and operate these business models requires dynamic and agile organisations.

Using specialist billing and provisioning platforms linked to very customer-centric service models, it is very possible to provide data access services at cost points below 3G or any other alternative connectivity medium. In these scenarios, organisations are then enabled by means of using satellite access networks with high availability, more flexible implementation at any location and at lower cost points.

Starting by making sure the solution is suited for satellite networks, then completing a very focussed and specific design integrated with a customer centric provisioning and billing structure is essential to successfully implementing satellite networks as reliable and costeffective data access networks.

On this basis, satellite networks will continue to enable businesses to unlock new horizons, bring connectivity to challenging environments and lower operating costs in other large-scale networks.

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As our a alw ys ld hou views s nder nu be take ent advisem

what’sHOTorNOT

We share brief perspectives with you on items that we think are worthy of your consideration. *some of the images were obtained from freepik.com

Alexa – more than just a nifty gadget

GPS Makeover The GPS may have lost some of its appeal thanks to solutions such as Google Maps. But this has all changed thanks to the Naydy Head-up Display GPS. It is the world’s first device for your car that lets you look forward while staying connected. Its Augmented Reality display projects all the information you need as a transparent image over the road ahead and you can answer calls at the same time. www.navdy.com

Privatise open WiFi Organisations spend millions on IT security. So why risk being hacked while out of the office? This is what makes the GLiNet Mini Router such a nifty solution. It converts dubious wired networks at hotels or WiFi at cafes to your own private, secure WiFi. All routers integrate four methods to access the Internet: cable; wireless; USB modem and tethering; with optional OpenVPN applications. This allows users to avoid hackers, browse securely and unblock blocked websites. www.gl-inet.com

The Amazon Echo Show brings Amazon’s voice control system, Alexa, to life. It is the ultimate hands-free tool and it now comes with a screen. The Amazon Echo show will undoubtedly make the lives of African business leaders easier by offering them a virtual assistant to help sort out their busy schedules, keep up to date with news, set reminders, the list really does go on and on. www.amazon.com Misplaced items? Find it quickly using your smartphone with the help of TrackR Pixel. TrackR Pixel provides an easy way to find misplaced items using your smartphone. The tracker itself is a small, lightweight Bluetooth tracker that rings and lights up so you can find anything, even in the dark. No more time wasted searching for items means more time to get work done. https://store.thetrackr.com

Business leaders often spend time in noisy places such as airports and need some quiet time to really focus. That is why the Bose QuietComfort 35 Wireless Noise Cancelling Headphones are so popular. These headphones are specifically designed with noise cancelling technology to cut out any ambient noise. The headphones are also wireless so you don’t have to deal with that pesky cord getting in the way. Vol 17.1 www.bose.com

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Noise . . . Delete!

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Well selected board critical to an

organisation’s success “Never underestimate how critical the composition of a board is to organisational success,” says Parmi Natesan, a Chartered Accountant CA(SA) and Executive Director at the Institute of Directors in Southern Africa. Natesan shares some of the competencies that Directors need to perform their duties well.

t has been a very good year for Parmi Natesan. She was recently selected as one of Destiny magazine’s “Power of 40 Awards 2017” nominees. The award celebrates powerful, successful young achievers under the age of 40 on the African continent who are bringing innovative ideas that are impacting the lives of people in Africa. In 2017, Natesan also received the Rising Star Alumni Award from the Nelson Mandela University. Besides the affirmation of a job well done that an award brings, Natesan acknowledges that her family are her strongest supporters and this motivates her further. “My two children (aged 11 and 9) are so proud every time they see me in the newspaper or getting an award.” she enthuses. I think it’s great for children to see that hard work pays off. I hope it motivates them to be the best they can be. “I am grateful to my husband, Suren, for supporting me in my career. It’s not always easy. Sometimes you feel pulled in two directions, but with organising, a good support structure

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and fortunately flexibility in my working hours, it is possible to have it all.” Professionally, Natesan’s main focus is promoting corporate governance and upholding the credibility of directorship as a profession. While the Institute of Directors in Southern Africa (IoDSA) is well known for its role in the King Reports, possibly less apparent is the professional body’s efforts to increase the number of competent directors, which it does through its Chartered Director and Certified Director designations. Natesan cautions: “Board composition probably has the greatest single impact on the future success of an organisation – it is worth getting right.” To get this right, the IoDSA has developed a Director Competency Framework which contains the functional, personal and social competencies necessary for Directors. Encouragingly, transformation is happening at board level. Nearly a third (32.3%) of directorships in Johannesburg Stock Exchange (JSE) and AltX-listed businesses are now black. This

is the finding of 2017 JSE Research conducted by the South African Institute of Chartered Accountants. We still have some work to do on gender diversity stats at board level, however. Directors are required to provide an example of ethical and effective leadership. Leaders by their very nature carry the people that report to them along with them. And the ethos of an organisation is set by the people at the top. Natesan’s conversation is peppered with phrases such as ‘directors’ duties’. When it comes down to the nuts and bolts of what this means exactly, she is happy to oblige with an explanation. “Directors have a fiduciary duty, or duty of trust to perform their functions in good faith, in the best interest of the company, with a duty of care, skills and diligence. In South Africa, Directors’ duties are primarily contained in the common law. “Some of these duties have been codified in the Companies Act and are also covered in the King Reports and Codes, of which the latest is King IV.” Be mindful of outcomes of decisions Natesan hastens to add that Directors’ duties should not prevent them from taking the bold decisions that are often necessary to drive growth and increase profits. “Business is ultimately about taking risk in order to gain reward. Equally, it is accepted that Directors may take decisions that turn out to be wrong or result in loss. In these instances, “Directors have a defence, which is commonly known as the Business Judgement Rule, to be able to demonstrate that they took reasonable steps to

Board composition probably has the greatest single impact on the future success of an organisation – it is worth getting right. become informed, and took a decision that they believed was in the best interests of the company at the time.” The outcomes-based approach of King IV, which was released in November 2016, represents a significant improvement in corporate governance in South Africa. “If the principles of King IV are achieved, the benefits are an ethical culture, good performance, effective control and legitimacy,” says Natesan. “This moves organisations away from a detailed tick-box compliance approach towards more mindful application – promoting corporate governance as integral to running an organisation and delivering positive outcomes.” Natesan applauds government’s undertaking to issue a board appointment framework for State Owned Enterprises as part of an inclusive growth action plan. She says, “Effective corporate governance improves organisational performance over the long-term and contributes to reversing the perception of corruption in the country.” At the end of another challenging week devoted to good corporate governance, Natesan sets aside space in her diary to relax with family and friends, zumba dance fitness classes, and creative pursuits. Her philosophy is definitely ‘glass half full’.

CEO 2018 Vol 17.1

Employment

Equity

Reaffirmed by Scott Barrett, Managing Director at NOVA Human Capital Solutions.

In a drive to push the Employment Equity (EE) mandate aimed at increasing transformation in local business, the Department of Labour has increased their efforts relating to labour audits and the relevant compliance regulations.

mployment Equity is aimed at promoting fairness in the labour market and, as such, labour inspectors have been tasked with evaluating EE plans to assess whether the plan complies with legislation and drives transformation. Department of Labour; Chief Director, Statutory & Advocacy Services, Advocate Fikiswa Mncanca said: “We have been talking about transformation and nothing seems to be happening. Transformation should not just end in paper. Also, the transformation should not happen just because the Department of Labour is conducting national Director General Reviews”. According to Mncanca, “The department ‘has arrived’ to enforce compliance with EE legislation”. The impact on your business Failure to adhere to Employment Equity could land you in hot water. With a massive shift in focus and resources, you can expect to face significant fines and time in court as the Department of Labour pushes its transformation agenda. Companies, as first-time offenders, may be subject to a fine of R1 500 000 or two percent of the employer’s annual

CEO 2018 Vol 17.1

turnover. If the employer is a second-time offender, then the fine may be the greater one of R1 800 000 or four percent of the employer’s annual turnover. Repeat offenders will face even harsher penalties. The Department of Labour’s Inspection and Enforcement Services (IES) branch has announced it is taking six companies to court for various offences, including: their failure to prepare employment equity plans as per the provisions of Section 20 (1) of the Employment Equity Act; and reporting to the Director-General on plans that do not exist, which amounts to misrepresentation. The six companies referred for prosecution are Gooderson; Clientele Legal; Clientele Life; Mazor Aluminium; Mazor Steel; and Spanjaard Limited. The companies are to be referred for breach of Section 20 of EE legislation. Who should report on Employment Equity? Not all companies in South Africa are bound to the Employment Equity Act. Rather, EE is aimed at all employers deemed as designated by the Department of Labour who

With a massive shift in focus and resources, you can expect to face significant fines and time in court as the Department of Labour pushes its transformation agenda.

›

An employer with less than 150 employees must submit its first report within 12 months and thereafter every year on the first day of October or before 15 January if they are reporting online. › An employer with more than 150 employees must submit the first report within six months and thereafter every year on the first day of October or before 15 January if they are reporting online. It is advisable to ensure that the online submission is done before the year-end period to guarantee that the deadline of 15 January each year is not missed. must report their EE status and are required to comply according to legislation. As per the Department of Labour’s standards, a designated employer is an employer with 50 or more employees or one which has a total annual turnover per the following industry sectors: › › › › › › ›

Agriculture R 6.00m Mining and Quarrying R 22.50m Manufacturing R 30.00m Electricity, gas and water R 30.00m Construction R 15.00m Retail and motor trade and repair services R 45.00m Wholesale trade, commercial agents and allied services R 75.00m › Catering, accommodation and other trade R 15.00m › Transport, storage and communications R 30.00m › Finance and Business services R 30.00m › Community, special and personal services R 15.00m In cases where previously designated employers do not meet the requirements for EE, they will have to de-register from the Employment Equity Public Register portal using an EEA14 document as provided by the Department of Labour. When should a designated employer report? Designated employers are required to report to the Department of Labour based on certain criteria:

What does the reporting process entail? The process requires that designated employers report on the following criteria: › Company demographics › Employee remuneration › Employee personal details including sex, race, gender and disability › Permanent and temporary staff per annum › Skills development › Terminations › Promotions This information is then used to establish the company’s equity targets and goals each year, as well as to compile the employment equity plan, which the employer is required to submit to the Director-General. The reporting process will also require an employer to display evidence of equal pay for work of equal value. What you will need to be able to submit a report In order to submit a sufficiently detailed report, employers will need to include the following information: › Proper job descriptions which are graded; › Current workforce demographics and › Workplace skills plans and training reports. This will allow the Department of Labour to set realistic Employment Equity goals for each company and help drive transformation and equality in South Africa.

CEO 2018 Vol 17.1

THE ROAD

TO EE COMPLIANCE IS PAVED WITH

DUBIOUS

INTENTIONS

by Roxanne Da Mata Goncalves, Director at Strata-G Labour Solutions

Is the failure by 72 JSE listed companies to comply with the provisions laid out in the Employment Equity Act (EE) a blatant lack of respect, as Deputy Minister of Labour Nkosi Phathekile Holomisa posits, or is it more complex than that?

egislation focuses on two requirements when establishing whether a business is required to report on Employment Equity or not: the first is the number of heads in the business (50 employees or more) and the second is annual turnover thresholds, which differ from one sector to the next and are stipulated in Schedule 4 of the EE Act. Our experience suggests that many companies simply comply with the EE Act to avoid being fined – up to 10% of annual turnover – rather than out of any heartfelt belief in the process. This is further evidenced by the greatest areas of noncompliance identified by the Department of Labour after inspecting approximately 227 000 businesses. They include:  Lack of communication strategies to inform employees of the EE Act and failure to keep records as required;

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 Assigned EE Managers are junior staff who do not have the necessary authority or resources to execute their mandate;  Lack of properly constituted consultative forums at workplaces;  Employers preparing EE plans that are not informed by a proper audit and analysis and  Employment equity plans prepared do not comply with requirements of the legislation. To conduct a successful employment equity exercise, consultative forums need to be properly constituted. Ideally, employers should involve a representative from each designated group (based on race, gender, disability and occupational level) in the consultative process. This, however, doesn’t often happen because employers don’t want to disrupt the business operationally. In these instances, the role of representative from designated groups is often doubled-up. Practically speaking, what does this mean? Perhaps a Senior Manager is nominated to represent both his or her occupational level as well as racial demographic. This can lead to situations where decisions are made in favour of certain designated groups, with some taking preference over others. Notably, businesses do not invest enough importance – and therefore resources and time – in the process. As such, they will set aside an hour to communicate an entire piece of

legislation to every level of employee. They want to complete a complex process as quickly as possible. Another issue that hinders transformation in companies is the lack of top management’s involvement in the employment equity consultative process. If the people who are ultimately tasked with implementing the business strategy are not present during the consultative process, how can the employment equity committee make any short- or longterm commitments around the appointment, promotion or upliftment of staff? In addition, as pointed out by the Department of Labour, businesses tend to appoint junior staff as Employment Equity Managers (section 24 Managers), who do not necessarily have the authority or resources to execute their mandate. Some do not understand the role properly and think the exercise ends once a report has been submitted, which is not the point of the exercise at all. The reason for appointing an employment equity manager is to ensure that the entire organisation is aware of the plan and educated about the process of implementing the plan. So, if the senior people responsible for appointing staff are not made aware of the plan and its objectives, they will appoint whomever they see fit, instead of appointing people from a specific designated group and ultimately ignoring the affirmative action measures put in place by the Employment Equity Committee. In many instances, Employment Equity Managers, who do not have a deep understanding of the legislation, hire flyby-night consultants who don’t understand the legislation or proper reporting processes either. This lack of understanding – or even interest perhaps – on all fronts, combined with the idea that employment equity is just an exercise that needs to be conducted superficially, will not result in lasting and meaningful change for South Africa’s economy. There definitely seems to be deep-seated resentment towards employment equity and transformation. This, I believe, can be attributed to it being a time-consuming and expensive exercise that goes against the belief systems of many entrepreneurs and business owners. Ultimately, businesses want to generate income and make a profit and the transformation process hits them directly on the bottom line. In addition to spending up to four percent of their nett profit after tax on donations and then meeting up to

a six percent payroll target for skills development, the successful implementation of employment equity requirements becomes a sometimes-insurmountable burden to shoulder. This is especially true for businesses at JSE level, which have a responsibility to generate profit for the shareholders and are under pressure to meet various needs of other stakeholders. And, it seems like a certain echelon of businesses feel they are above the law and, obviously, government is not taking kindly to it. This is troubling, especially given that many medium-sized businesses in the country try hard to comply. Sadly, many of them are receiving terrible advice and they need to do their homework before enlisting the services of consultants. A true transformation or employment equity specialist will not only understand the legislation, but will know how to practically apply the legislation, whether from an employment equity or a skills development perspective. In companies’ defence, some elements of the legislation are vague. Government needs to do more than embark on roadshows and conduct workshops to provide clarity. A more proactive approach and direct impact will be more helpful than allowing certain decisions to be made by the employer without guidance. Transformation has become so slow, it’s almost stagnant. What could have been history in the making and the formation of a true democracy seems to have run out of steam. There does need to be repercussions for the companies that ignore South Africa’s legislation. Yes, they must meet the needs of various stakeholders and they need to stick to what they are good at. However, ignorance about employment equity will not fly as an excuse not to do it. Companies need to commit to the process. If they are under-resourced or lack the pertinent knowledge, they need to outsource to reputable experts. Implemented correctly, there are benefits to complying with the legislation. In the past six months alone, six of our clients have received R10m in skills development funding, thanks to its financial initiative and compliance exercises. Ultimately, companies should not be complying because they are compelled to by government or because they want to make money out of the process. They should do it for the benefits to the business, for being obliged to look at the organisation as a whole and to leave no man behind.

CEO 2018 Vol 17.1

Tech Increasingly

Influential in

2018

From economic and political instability to regulatory uncertainty, companies have certainly had to carefully manage their strategic priorities during the past year. Gys Kappers, CEO of Wyzetalk, examines what they can expect from 2018.

CEO 2018 Vol 17.1

“T

he business environment is never without its challenges. Yet, even amidst these, there are opportunities to be found. We have seen how the gap between executives and technology has narrowed. And while there is still a general lack of designing proper implementation plans, this provides a platform for growth into the new year,” says Kappers. He believes that even though this consolidation [between software and technology platforms] will continue, the need to appoint a Chief Experience Officer (CXO) is there. This person and team will become responsible for the overall experience the company has internally and externally for those that “touch” its products and services – a vital element of the digital world. Bespoke approach “One of the ways this will be done is through personalisation, he continues. “This presents businesses with arguably one of the biggest opportunities for internal management in 2018. Machine-learning (or AI) will become more prevalent and create a more customised experience for internal and external stakeholders.” Using the data and analysis coming from multiple productivity and HR systems, companies can now be more influential in how they engage with employees. This, in turn, will impact the customer relationship as well with people looking for more simplicity in solutions that cater for their specific requirements. This creates an enabling environment where employee engagement (and performance) can be measured much more effectively than in the past. A real-time analysis helps the process of continual improvement through carefully designed interventions based on accurate statistics.

Using the data and analysis coming from multiple productivity and HR systems, companies can now be more influential in how they engage with employees. Increasing flexibility “By using machine-learning, companies will take much of the administrative burden from employees, leaving them with more time to focus on their core deliverables,” explains Kappers. “And, by becoming more efficient, have more time to spend away from the office environment. This is where South African companies are waking up to the possibilities of doing business from any mobile device and at any time.”

The reality of doing business and living in a digital-rich environment, means the way we communicate is also changing. Kappers says this is putting the focus on generating more ‘snackable’ content and using systems that not only listen to what employees are saying, but also fast-track responses to be more reflective of a real-time environment. “These digital approaches are finally creating a communications parity for everyone in the organisation – from the hyper-connected head office worker to the employees at the coalface and remote region,” says Kappers. “But even though more people are using smart devices, there needs to be more cost-effective (if not free) ubiquitous access to all. This will help address issues of education, literacy, and skills development and is vital before we can say smart apps are consumed on an equal level by all South Africans.” Collaborative environment Achieving this communications parity is also necessary for true collaboration to happen. And this does not have to be viewed as a technology-only solution, but one that reflects an evolving company culture that is more embracing of doing things differently. “From this, we will see mobile technology being used to bring multiple systems together, making it easier for employees to manage their work life with productivity tools like leave processing, e-learning, wellness, logistics, and other elements,” Kloppers continues. It will lead to the automation of many HR systems.” Working in an environment focused on continuous improvement, a different approach to training and developing employees will be adopted. This changing workplace is all about organising teams of multi-skilled people and companies need to put the human element at the core of their strategic development. Everything digital “In South Africa, we are at the cusp of truly entering the Fourth Industrial Revolution where automation and data exchange across technologies will become commonplace,” Klopper exudes. “But before that happens, decision-makers need to think beyond legacy systems and embrace digital solutions that take their organisations to the next level of innovation.” Kappers says that while much of this will change the fundamentals of how organisations think about their target market, it will result in a more knowledgeable organisation that knows more about all their stakeholders and design systems around that. “Given how digital has become a part of our professional and personal lives, companies will be more open to adopt elements of each to create an enabling environment for its workforce that puts people at its centre,” he concludes.

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Powerlifting CA(SA) by Samantha Barnes

sets sights on world deadlift record

Mariska Casey is a mere 1.48 metres tall and weighs just 47 kilograms. The most athletic thing she had done until three years ago was compete in a 60-metre sprint when she was in grade 1. This University of Johannesburg lecturer, Chartered Accountant [CA(SA)] and Registered Auditor shares her joy at discovering a hidden athletic talent late in life.

“I

got into powerlifting in 2014, thanks to my husband Patrick. I was impressed with the change in him healthwise, especially losing weight, so I decided to join him in the sport,” says Casey. I attended my first gym session in May 2014 at 35 years of age.” Imagine Mariska’s surprise when she competed in her first powerlifting competition in September that year and earned the top spot in the open division in her category. “I didn’t expect that result,” she states. “I had no idea I was that strong!” Mariska has since earned national colours in powerlifting and competes at world championship level. Although she jokes about the green and gold Protea blazer not fitting her because they don’t make it in her size, representing her country is a huge honour. It helps that as a CA(SA) Mariska is used to setting goals and putting in the effort to make big dreams come true. “It takes seven years to qualify as a CA(SA). Four years of hard slog in order to graduate from university with an accounting degree and then three years as a trainee working for a firm. “This requires many nights burning the midnight oil to get through the volume of work besides studying for exams. It is a huge relief when you qualify because you sometimes wonder if you are going to succeed.” Besides being a Senior Lecturer in the Department of Accounting at the University of Johannesburg, Mariska is on the Limpopo Provincial Government Audit committee. She is thankful for ‘the huge turnarounds’ in some departments including the Limpopo Department of Education. “This is the result of a coordinated effort, which includes leadership from the National and Provincial Treasury,” she says. Mariska is also researching turnaround strategies for government departments and state-owned enterprises (SOEs) in distress.

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When she takes a breather from her professional life, Mariska remarks that the people she meets socially express surprise that the diminutive CA(SA) is a champion powerlifter. She hastens to explain that lifting doesn’t build bulk. Her muscles have just become more refined. Healthy food choices She has also become more conscious of good nutritional habits. She uses competitions as milestones to reach specific weight goals. “Protein is important for strength athletes to build muscle strength,” Casey explains. “Lifters usually go by the rule that when you are in doubt about what to eat, have protein. But the aroma of hot chips, hamburgers, pizzas and pies from the student centre can be a temptation. But you have to be more careful what you eat after 35 years of age, as your metabolism slows down,” she says. Globetrotter Powerlifting has taken Mariska all over the world. In 2015, just a year into the sport, she competed in the Classic World Women’s Championships in Salo, Finland and came ninth in place. In 2016 she achieved the 11th spot in the World Women’s Classic Championships in Killeen, United States. She also came first in the World Women’s RAW Benchpress Championships held in South Africa. So what drives her to develop her inner athlete? “I call discovering my hidden talent ‘my ‘little lucky packet’ and it is so amazing representing your country alongside the best in the world,” Caseysays. She currently holds the South African Open deadlift record for women in the 47kg category of 133 kilograms. She is aiming for the World deadlift record of 150 kilograms. While Mariska’s best is currently 135kilograms, she is not letting this deter her.

A deadlift is a weight training exercise in which a loaded bar is lifted off the ground to hip level, and then thrown to the ground. Very dramatic and not easy! “The golden rule to avoid injury is to ensure that you lift with the right technique,” says Casey. I am blessed to be training with a great coach, Rodney Anthony, who is also a former lifter. He is pedantic about lifting with the right technique before increasing the weight on the bar. “It is also important as an athlete to listen to your body. If a muscle starts to pull or feel tight, then it may be a good idea to stop training and rest for a day or so. It is also important for athletes older than 40 to keep their mind-set right and get enough sleep, which is vitally important for recovery.” She runs several mornings a week to improve her overall fitness and it also offers another important benefit for powerlifters. “Lifters tend to use fast twitching muscles to lift heavy weights,” she continues. “Sprinting teaches you how to generate as much power as quickly as possible. Long-distance running may however, be counterproductive for heavy lifting as it uses more slow twitching muscles.” For those of us who may not have heard of the term ‘fasttwitch’ muscles, they are the most powerful and are activated when the body nears maximum exertion. By contrast, during aerobic exercise such as distance running, ‘slow-twitch’ muscles are the first to contract. “The great thing about being a strength athlete is the huge benefits that you can carry over to other sports,” she emphasises. “I also love mountain biking, jiu-jitsu, kayaking and ballet. I have noticed powerlifting builds confidence and it enhances my ability to compete in other sports.” Whether powerlifting, running, on a date with her husband or lecturing university students, Casey considers herself blessed. She believes in the power of Philippians 4:13, ‘I can do all this through Him who gives me strength’.

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5to watch for in 2018 wine trends

The South African wine industry is experiencing one of its most exciting phases in history. Overall wine quality has increased dramatically over the last five years, international recognition is at an all-time high and the consumer is now spoilt for choice, with a wealth of new producers, varieties and styles.

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hough winery input costs have risen and the continued drought may mean a significant drop in yield, the battered Rand has helped exports and aid profitability. South African wine offers tremendous value locally and abroad, but premium South African wines are surging in price, widening the gap to everyday beverage wines. So what are some of the trends emerging in 2018? We speak to Roland Peens, Director of Wine Cellar – fine wine merchants - about his five top trends and predictions for the Nectar of the Gods…

Blanc can be rather watery however, offering less excitement than other varieties. But, older vines, lower yields and more authentic winemaking can make for serious, long aging versions. Bloemendal Suider Terras Sauvignon Blanc 2015 is arguably SA’s best, produced from a 35-year-old heritage block, high up in Durbanville. It is powerful, richly textured and has the structure to age a decade or even two. At R500 it is also SA’s most expensive. 2017 is also quickly being regarded as the best vintage of Sauvignon Blanc in the last decade, so expect your favourite Savie to have an extra gear this year.

1. Premium Rosé Rosé could not be more trendy and the growth of the Premium Rosé category continues around the world. It has, however, taken some time in South Africa as we have had to shake off the semi-sweet, poor quality, bright pink image. Rosé can be a by-product of red wine making in order to make reds more concentrated. It can also be a blend of left-over red and white wines. The category of premium Rosé is of course quality focused and when done well, Rosé can offer the freshness of fine white and depth of a light red. The South of France is famous for its Rosé from Bandol and Provence, some of which can age for decades. Serious Rosé is gaining popularity in South Africa and more producers are figuring out how to produce and market exciting wines. The talk of the town is the Jean Roi Cap Provincial Rosé 2016 from L’Ormarins. It’s a blend of various varieties including a large Cinsaut component from the Swartland. Light salmon in colour, there is lovely depth of florals, citrus, and a savoury and textured finish. Well worth its R300 price tag!

3. Drought will affect prices Three years of drought in the Western Cape is going to severely impact yields in 2018 as water quotas are slashed and the vine struggle to keep up production. This will not only decrease volumes but also push up costs in years to come. Expect entry level wines to become more expensive as stocks are diminished and the drought continues. Economically and politically this is a major concern as large volume wineries operate at marginal profitability levels.

2. Sauvignon Blanc is back Sauvignon Blanc has been hurdled by Chardonnay and Chenin Blanc as the leading white varieties over the last decade in South Africa. Usually offering a crisp acidity, tropical flavours as well as green pepper notes, South African Sauvignon

4. Buy the great vintages En Primeur As entry-level wines will be affected by the drought, SA’s premium wines will also be affected, but in a different way. Lower yields and smaller berries make for more concentrated and perhaps better quality wines. Farming and production costs will however continue to push SA’s premium wines up faster than inflation. With relatively small volumes for South Africa’s top wines, especially gaining huge international following, demand will be bigger than supply. The model of ‘En primeur’ or buying pre-release, will become more popular for the highly-demanded great vintages. Buying pre-release not only allows you to secure your purchase early, but also speculate on the price if you think it may appreciate on release. As the quality of the fine 2017 vintage gets realised, expect there to be strong demand to buy 2017 ‘En primeur’ already in 2018.

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5. Online Retail Boom A: South Africa is still behind in online retail with mature markets like the US or UK buying five times more of all goods online than SA. As the internet gets faster, transactions more secure and eCommerce more efficient, expect to buy more of your wine online. It is great to peruse the bottles on a shelf, but expect lower prices online, more information, no lugging of heavy wine boxes, shopping in your nighty and of course, no parking issues… Q: What are your predictions for our industry and on how South African wine will fair internationally in future? A: Like many other South African industries, wine will continue to struggle in South Africa on a number of levels. Employing around 250 000 people and contributing to one to two percent of GDP, it’s an important industry that is battling profitability, inequality, skills shortages and now drought. With little government support and competition from a number of countries, we will have to improve our marketing and efficiency in order to keep our foothold in the international market. South African consumers still have it easy however as supply still exceeds demand. South Africa offers arguably the best value wines in the world and spectacular quality at all price points. On your next trip to Europe this should be evident as you try to buy a nice bottle in a restaurant under R300. Q: As a merchant, you have seen consumers’ tastes change over the years. What has been most notable to you? A: Consumers are, for the first time, open to experimenting with new varieties, styles and flavours. The world is bigger than Chardonnay, Sauvignon Blanc and Merlot and there are a lot more exciting wines out there today than 10 years ago. Another big change is that consumers want to know the back story behind the wine; where is it made, how is it made and who are the characters behind the wine. These questions are similar to the revolution happening in cheese, beer, coffee, meat and many artisanal products in South Africa. It’s an exciting time. We want wine to be authentic, sustainable and delicious. Q: How do you see the future of wine investment? A: This is happening on two levels. Well-stored vintage SA wines are reaching new heights in terms of rarity and prices. Meerlust Red 1978 went for an astonishing record price of R16 000 per bottle on the Nederburg Auction this year! Unfortunately dodgy bottles stored in your grandfather’s cupboard don’t count! Secondly, recently released premium wines are appreciating year-on-year at astonishing levels, well above inflation. Not only are new vintages climbing in price, but fine reds of five to eight years of age are becoming seriously sought-after and therefore more expensive. For the first time there are wine investors speculating on new releases. This is good news for the industry, but bad news for collectors hoping to pick up bargain lots.

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Q: We heard about some exciting new developments through the grapevine, what’s next for Wine Cellar? A: Online is set to gain more traction in South Africa and we are hoping to offer our wine selection to a larger audience, especially at the every day wine level. We also see big potential in investing in fine SA wines, with an exciting offering coming up in that space shortly!

BACK TO BASICS FOR

BETTER HEALTH Modern lifestyles are a curious – and unhealthy - mixture of “stop” and “go”: most of us spend the long hours of our working days sitting, sedentary behaviour that’s considered so bad for our health that it’s been dubbed “the new smoking”; but on the other hand, we juggle busy work, family and social lives, struggle to find time for our hobbies and physical activities, and often don’t get enough sleep. To make things worse, many of us eat unhealthy diets, and smoking and alcohol consumption are ways of coping for many people.

hile all of this takes a toll on our wellbeing, there is one way that we can mitigate the health risks modern lifestyles pose, and that’s by incorporating more natural ingredients and supplements into our diets. “Consumers are realising that natural ingredients are far more beneficial and don’t have harmful sideeffects, as prescription drugs” says Bruce Dennison, President of the Health Products Association of South Africa (HPASA), which has been at the forefront of the natural health products, nutritional dietary supplements and complementary and alternative medicines (CAMs) industries for almost 40 years. The growth of the vitamins and dietary supplements market in South Africa is 76,6% from 2011 to 2016 according to a Euromonitor report. Vanessa de Ascencao, nutritional consultant and a member of the HPASA, cites as one example adaptogen herbs – natural substances that help the adrenal system regulate hormones and manage stress, such as ashwagandha, ginseng and astragalus. “Adaptogen herbs have been around for centuries but they’ve recently gained popularity as they help the body fight fatigue, stabilise blood sugar and boost the production of key hormones,” she explains. Adoptogen herbs are now found in many supplements available in South Africa. For many people, that general feeling of exhaustion stems from a lack of B vitamins. This deficiency can cause further ailments such as muscle weakness, joint pain and shortness of breath. “B vitamins are vital in supporting processes like nutrient conversion, cell repair and certain forms of energy production,” explains De Ascencao. She advises using a B-vitamin supplement in a sublingual spray, which is administered under the tongue. Another health-promoting natural ingredient is the “superfood” spirulina, with nutrient-rich blue-green algae that has ten times more beta-carotene than carrots; a three-gram serving provides more antioxidant activity than five servings of fruits and vegetables. Spirulina helps to balance blood sugar and protect our cells from damage, and its anti-inflammatory properties reduce joint pain. CEO 2018 Vol 17.1

Psyched Up to Succeed

How Using a Racing Driver’s Mindset Can Help You Win at Life

Whether you’re giving a big presentation or find yourself in an important job interview, zoning into the same high-performance mindset as a racing driver could be the key to succeeding in highpressure situations.

his is one of the findings of new research that seeks to uncover the secrets of racing drivers’ brains. The study, commissioned by Ford, concludes that simple brain training techniques can help everyone reach peak performance both on and off the circuit. Researchers from Ford and King’s College London used EEG (electroencephalography) headsets to analyse the brain activity of professional racing drivers as they took on a racing simulator. Drivers included five-time FIA World Rally Championship winner Sébastian Ogier and three-time FIA World Touring Car Championship winner Andy Priaulx – racers who both know how to succeed under pressure. Everyday drivers were then monitored performing the same task – crucially, some had performed mental preparation exercises in the lead-up to the activity, and some had not. “The study data revealed that when travelling at high speed and in a state of high focus, racing drivers’ brains performed up to 40% better when it comes to ignoring distractions than yours or mine,” said Dr Elias Mouchlianitis, Neuroscience Researcher at King’s College London. “The interesting thing we found, however, was that when normal

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people performed some simple mental exercises, they were also able to reach this higher level of performance.” Simple breathing and meditation exercises, plus a visualisation technique that uses keywords to describe the task ahead, saw normal drivers improve their focus and performance by as much as 50%. “When things get tough and the pressure’s on, that’s when you need to get in this zone, and the good guys, the successful racing drivers, are able to do that whether that’s on the track or off it,” said Priaulx. “Racing drivers aren’t necessarily born with this skill; our experiment showed that simple mental training ahead of a task can help anyone to improve focus and ignore distractions, making them more successful at the task in hand,” Mouchlianitis explains. Based on the research, Ford is now developing an EEGequipped racing helmet for its professional drivers, where brain activity data can be transmitted back to the team during a race alongside other in-car car telemetry. While physical attributes such as hydration and heart rate are already monitored, Ford believes that understanding the driver’s mental state during a race – and making decisions accordingly – is the next frontier in performance.

ROOIBOS

IS TAKING CENTRE STAGE IN THE GLOBAL DRINKS MARKET Tea-lovers from around the world celebrate International Tea Day on the 15th of December each year.

ext to water, tea is the most widely consumed beverage in the world and can be enjoyed anywhere, anytime. In fact, on any given day around two billion people sip on the brew. Homegrown rooibos tea, known for its abundant health benefits, is a firm favourite among South Africans and tea connoisseurs the world-over. It can be enjoyed in a myriad of ways - hot or cold and is becoming very popular in wine, gin, vodka, cider and cocktails, and is used as a flavour enhancer in yoghurt, ice creams, syrups, sauces, foods and more. It is also considered an essential ingredient in beauty products and can be found in age-defying skin creams, cosmetics, shampoos, soaps and fragrances, and comes in countless still and sparkling iced tea varieties. According to Ernest du Toit, a Director of the SA Rooibos Council, rooibos tea, which is exclusively grown in the Cederberg region, is becoming one of the fastest-growing beverages in the drinks market globally. “Worldwide consumption of rooibos is at around 15 000 tons per annum and the growing demand for the product has pushed exports up to more than 7 000 tons per year,” he notes. “If both export and local volumes were sold and enjoyed as pure rooibos, it would equate to roughly six billion cups of rooibos tea per annum.” South Africa exports rooibos tea to over 30 countries, including Germany, the Netherlands, Japan, UK and US. Germany still remains by far the biggest importer of rooibos tea, at 31%, with the Netherlands at 16% and Japan at 15%. Du Toit highlights that the new-found appreciation of fine tea, has led to a rush in establishing smart tea bars and tea shops, which are popping up on every street corner and has also resulted in a renewed interest in-and a growing demand for rooibos. “Tea is becoming the new coffee of the 21st century,” he remarks. “Tea-lovers are no longer content with indifferent

mass-market tea. They are graduating to higher-quality tea bags and choice loose leaves, and tea companies are responding by offering an ever-wider variety of teas. Packers, sellers, exporters, along with people who sell tea-making equipment and publish books and blogs on tea are benefiting from the tea-revolution. Given the passion for, and the variety and expertise that already exists for wine, beer, coffee and even bottled water, it was inevitable that tea would be next on the list. And, wherever you look, rooibos seems to be taking centre stage.” Whether you’ll be throwing a bash or celebrating International Tea Day solo, try this deliciously decadent rooibos liqueur recipe – ideal for execs wanting to unwind after a day’s work: ROOIBOS LIQUEUR Ingredients  750ml Brandy  2 cloves  2 sticks of cinnamon  750ml strong, hot Rooibos  600g white sugar (750ml)  25ml honey Method  Add cloves and cinnamon to the brandy, shake the bottle and allow it to infuse overnight.  Heat sugar and Rooibos tea over moderate heat until sugar has dissolved.  Boil uncovered for 20 minutes.  Remove from heat and stir in honey.  Remove cloves and cinnamon from the brandy.  Add the brandy to the tea syrup and mix well.  Pour into sterilized bottles and seal.

CEO 2018 Vol 17.1

by Carl Wepener

Mercedes-AMG E 63 S 4MATIC+:

The Mercedes - AMG 63 S 4Matic+ is the most powerful E-Class Sedan of all times and has the figures to prove it. Not only that, it is also the most intelligent executive sedan available.

he brand is also setting new benchmarks in this market segment with its innovative technologies. The intelligent drive strategy raises the limits of the performance sedanâ&#x20AC;&#x2122;s vehicle dynamics to a completely new level. Delivering superior acceleration, the 4.0 litre twin-turbo V8 engine generates up to 450 kW. This makes it the most powerful engine Mercedes-AMG has ever installed in an E-Class. At the same time it is even more efficient thanks to a cylinder deactivation system fitted as standard, and thus sets the benchmark in its segment. By accelerating from 0 to 100km/h in 3.4 seconds, the new executive sedan also achieves a new best time in its class. The latest generation of the E 63 S 4MATIC+ sees Mercedes-AMG introducing a number of new developments that redefine the performance sedan. Innovative powertrain engineering and maximum performance are combined with distinctive design, exclusive equipment and the latest infotainment features for comprehensive, connected multimedia applications.

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The Connected, Luxury & Sporty Performance Icon

“The new E 63 models represent the biggest step forward we’ve ever taken from one generation to the next,” explains Tobias Moers, Chairman of the Board of Management of Mercedes-AMG GmbH. Vehicle dynamics were especially important to us. At the start of the development process, we opted for a fully variable all-wheel drive system which, when combined with the advanced performance of the 4.0-litre twin-turbo V8 engine, reaffirms our brand’s “Driving Performance” claim. The E 63 is a beast and yet it is easily controlled. I expected to find a harsh drive with no ride comfort but during our test I was pleasantly surprised to find such a refined ride. Of course putting the E 63 through its paces at Kayalami was pure pleasure and both the E 63 with its V8 engine and the E 43 with its six cylinder engine performing above expectations. The class leading technology ensures a sporty and thrilling ride and yet you feel safe at all times. Race mode is much more fun now and you are thrown back against your seat when the 4Matic just propels the E 63 forward and it looks like it is going to take off as the nose lifts when pulling away. It is really a case of “now you see me, now you don’t,” that is how fast this lovely machine is. Add to that the powerful sound track and you are thrilled to the

soul. We also did some drifting with all technical wizardries switched off to feel how the E 63 responds and then did a run where all was switched on. Only then do you get a feel of the dynamics of the technical advances made. The AMG SPEEDSHIFT MCT (Multi Clutch Technology) nine-speed sports transmission is combined with a wet start-off clutch for the first time. This enables more agile response times to be achieved and gives much faster response times for gearing up or down. I could not achieve the same figures in manual mode and thus left the changes to the automatic gearbox. Another highlight is the completely new AMG Performance 4MATIC+ all-wheel drive system. It combines the advantages of various drive configurations. Torque distribution on the front and rear axles, which is fully variable for the first time, ensures optimum traction right up to the physical limit in all road conditions. Additional struts: reinforced bodywork structure The new performance saloons have a rigid bodywork structure, which forms the foundation for maximum vehicle dynamics, comfortable handling even on poor stretches of road, and a solid feeling of quality. There are also four struts to additionally reinforce the bodyshell: The two front struts are even stiffer than on the E 43 4MATIC, whereas only the Mercedes-AMG E 63 S 4MATIC+ has the two rear struts.

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The expressive exterior design, featuring a new radiator grille and coupé-style inset bonnet, underlines the performance figures. The E 63 S 4MATIC+ offers a completely new level of sportiness and comfort on long journeys. Mercedes me connect As with all Mercedes-Benz passenger cars, the E 63 S 4MATIC+ comes standard with the latest Mercedes me connect package of innovative services, products and lifestyle offers. The system as installed is already much more advanced in the area of making it much more user friendly for everyday use. Mercedes me connect includes access to your vehicle via smartphone. The personalised homepage covers individual topics relevant to the customer, whether entertainment, travel or lifestyle. Registering with Mercedes me connect gives customers access to exclusive lifeenhancing offers including the class-leading Mercedes-Benz PremiumDrive maintenance plan. Connected to the car via internet Further services available on the new E-Class, the Masterpiece of Intelligence. The Remote Online (free to use for the first three years) allows drivers to connect to their vehicle from anywhere and at any time via “mercedes.me” to retrieve vehicle data and remotely activate various vehicle functions. With the new Mercedes me app, this also works with iOS and Android.

The standard Remote Online services include: > Parked Vehicle Locator – allows the vehicle position to be determined, for example, if the vehicle was parked in an unfamiliar city. This makes it possible to conveniently find the vehicle within a range of 1.5 kilometres with the help of a smartphone. > Vehicle Tracker – enables the latest position of a moving vehicle to be pinpointed via GPS. The driver has a display in the vehicle and can deactivate the service at any time with a toll-free call to the Customer Assistance Centre. > Geofencing – shows where the vehicle is in an area previously defined on the map and informs the owner if the car leaves or enters this area - like the Vehicle Tracker. > Remote door locking and unlocking – allows opening or closing the vehicle doors remotely, for example, if the driver forgets to lock the vehicle. Remote Retrieval of Vehicle Status – vehicle data such as fuel level, range and more can be accessed from home or while on the road. A stipulation in the terms and conditions when purchasing a new Mercedes-Benz passenger car is that customers need to register for Mercedes me connect to activate the class-leading PremiumDrive six years/100 000 km maintenance contract, a value-add at no additional cost.

Technical data at a glance: Mercedes-AMG E 63 S 4MATIC+ Engine 4.0-litre V8 with twin turbochargers and direct injection Displacement 3982 cc Output 450 kW at 5750–6500 r/min Peak torque 850 Nm at 2500–4500 r/min Drive system AMG Performance 4MATIC+ permanent all-wheel drive with variable torque distribution and drift mode Transmission AMG SPEEDSHIFT MCT 9-speed sports transmission Combined fuel consumption 9.1–8.8 l/100 km Combined CO2 emissions 207 g/km Weight (DIN/EC) 1880*/1955 kg** Acceleration 0–100 km/h 3.4 sec Top speed 250 km/h*** *DIN kerb weight, not including driver; **EC kerb weight, including driver (75 kg); ***electronically limited (300 km/h with AMG Driver’s package)

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Pricing: Mercedes-AMG E 63 S 4MATIC+ R1 868 400 Hot on the heels of the new Mercedes AMG E 63 S+, is the Mercedes-AMG. The E 43 4MATIC with the 3.0-litre V6 biturbo engine on board and it represents the most powerful variant of the Mercedes-AMG 43 range. With two new turbochargers and corresponding software applications, the charged six-cylinder engine delivers an output of 295 kW. As ever, the standard-specification AMG Performance 4MATIC four-wheel drive combines optimum traction with high agility on the E 43 4MATIC, thanks to rear-biased torque distribution with a front-to-rear ratio of 31:69 percent. The 9G-TRONIC automatic transmission with shorter shift times, the retuned sports suspension based on the AIR BODY CONTROL air suspension and the more direct steering ratio also provide for signature AMG Driving Performance. Both the Mercedes AMG E 63 S 4MATIC+ and the Mercedes AMG E 43 4MATIC is leaders in their segment and although the emphasis is on racing and sportiness it is still seen as and proven to be an excellent executive premium class vehicle. Mercedes has again moved the benchmarks much higher for the segment and I look forward to seeing the ongoing competition and challenges that lie ahead.

The data at a glance: Mercedes-AMG E 43 4MATIC Engine V6 biturbo Displacement 2996 cc Output 295 kW at 6100 r/min Peak torque 520 Nm at 2500-5000 r/min Fuel consumption, combined 8.3 l/100 km CO2 emissions, combined 192 g/km Kerb weight (according to DIN/EC) 1765 kg*/1840 kg** Acceleration 0-100 km/h 4.6 sec Top speed 250 km/h*** * Ready-to-drive condition (fuel tank 90 % full, without driver and luggage); ** ready-to-drive condition (fuel tank 90% full, with driver (68kg) and luggage (7kg); *** electronically limited

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by Carl Wepener

VW Kombi T Series

imposing and practical

I requested VW South Africa to give me a VW T Series Kombi for travelling into Mpumalanga as we wanted to travel in comfort, with loads of space and to be able to enjoy the Kruger Park. Add to that I am very nostalgic about the VW Kombiâ&#x20AC;&#x2122;s of yesteryear as I have grown up with them, then you will understand that for me it was sort of a trip down memory lane. My first experience of our VW Kombi from several years ago, was that of eating, sleeping and waiting for a mechanic to come and fix our Kombi which was notorious for its bearing failure to end any long trip rather suddenly. Also, we loved to change the seats around to face each other and have spent many a pleasant hour travelling and entertaining friends like that. I was hoping to do the same on this trip - except for the failed bearings part, of course.

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e left Pretoria with the strikingly appealing looking Kombi and it took us a good 6 hours to complete the 300km. Nothing to do with the Kombi, it is just that we stopped, enjoyed our surroundings and then continued on our way. This was our modus operandi for the whole week that we were travelling. The business side of the Kombi impressed me as well. Designed to take eight people and with 1200-Litres of luggage is impressive indeed. Our fuel consumption for 300 km was 7.9l per 100kms and although most of it was on the highway, we did have a fairly strong side wind. Visibility all around is excellent and those big side mirrors are a blessing. Front seat support is very good and I found even after most of the day behind the steering wheel, I was relaxed. Passengers on the back seats were just as pleased with the comfort. Airflow throughout was excellent and temperatures could be set to your liking and the blinds on the sides made

sure you were never too hot. Steering position is also great for the tall and the short and I was impressed with the turning circle and also with the road holding abilities of the VW Kombi. What most impressed me is how quiet the VW Kombi was and that it easily went up and downhill without having to push the pedal down. Gear changes were smooth and the cruise control kept us within the speed limits without a worry. What truly amazed me about the speed control is the fact you can set it from 20km per hour and that was just great in the Kruger Park where we used it all of the time. By the way, our fuel consumption during our drives in the Kruger Park came down to 6.4l per 100km. I had one or two gripes with the VW Kombi and that is the fact that there was no cup holders in the 2nd and 3rd rows. The other gripe was that it was not easy for me to take out the seats but it can be folded in various ways to create more space or to turn the Kombi into a van. Thus my memories of seats facing each other and having a relaxing time inside while watching animals did not become a reality. But what did make up for it is the fact that we saw animals much easier than anybody else. Loading and getting in and out is made easier with the big tailgate and of course the sliding doors on both sides of the Kombi. Standard features included an eight-speaker Radio/CD/MP3 player with excellent sound throughout the cabin, electric front windows, electric side mirrors, and multi-function on-board computer. The step illumination lights for the sliding doors and the front doors ensured we did not have a mishap when getting out of the Kombi. There is a reverse camera which is essential and also warning beeps and screen to warn you about any possible obstacles. I loved the optional Park Distance Control (PDC) and the 360 degree camera that saved me from scratching the sides. VW sold around 23 400 Kombiâ&#x20AC;&#x2122;s in South Africa in 11 years and 2 million units worldwide. Since Kombiâ&#x20AC;&#x2122;s were manufactured in South Africa in 1955 a total of 280 000 have been sold. Type 2 was one of the first models to be produced in Uitenhage. The production of the T-Series in South Africa ended in 2002. The Kombi comes with a choice of engines with the power output of 75kW and 103kW. The 103kW is equipped with either six-speed manual gearbox or seven-speed DSG gearbox. Occupant safety has always been a cornerstone of the T-Series model range and you will find such features as Electronic Stabilisation Programme (ESP), driver and passenger front airbags and electric seatbelt tensioners and all sixthgeneration derivatives are equipped with the Multi-Collision Braking System fitted as standard. The Kombi and Caravelle are also equipped with the Fatigue Detection system.

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The T-Series model range is structured to equally appeal to all people and comes standard with a raft of safety and convenience features such as ABS, ESP, Hill Hold Control, Electric Windows (optional with the Pick Up), Composition Audio Radio with LCD screen, Bluetooth and a Climatic manual air conditioning system, electrically adjustable side mirrors, body coloured bumpers and height adjustable driver seat. The Kombi and Caravelle derivatives have also been rationalised through Trendline, Comfortline and Highline equipment lines. The Kombi is offered in two equipment lines, namely Trendline and Comfortline. The number of seats in the back of the Kombi can be varied according to need. All bench seats can be taken out without tools. In addition, all bench and individual seat backs can be folded down as a sandwich onto the seat cushion. Depending on position, it can also be folded down and rolled forward. The passenger compartment’s individual seats also have an Easy Entry function. This means, the backs can be tipped forward to make access to the seats in the rear easier. The individual seats with Easy Entry function are available both for the left and the right side of the vehicle – an innovation in the T6 segment. Standard features on the Kombi include electric windows, electrically adjustable and heated side mirrors, rubber floor covering in the cab and passenger area and roller sun blinds integrated into the passenger compartment side panels, the whole floor is carpeted, semi-automatic ‘Climatic’ climate control system with roof air circulation, two armrests, lumbar support and height adjustment for both the driver’s and front passenger’s seats, Composition ‘Colour’ radio with SD card slot, a USB socket and a Bluetooth hands-free facility. All-new infotainment systems The T6 benefits from a substantial upgrade in infotainment. Every derivative is equipped with touchscreen infotainment as standard. The new generation systems come in three levels of specification and two different display sizes: 5 and 6.33-inches.

Composition Colour radio system with touchscreen is also standard on Kombi Comfortline. This feature-packed 5-inch touchscreen CD/Radio system includes Bluetooth connection for hands-free calling. It is also equipped with an AUX-in connection, SD card slot, MP3-compatible CD player and a USB connection. TDI with 103kW The four-cylinder 103kW common rail turbodiesel engine develops a maximum torque of 340 Newton metres from 1 750 rpm. It reaches its top speed at 172 km/h. The 103kW engine can be coupled with 6-speed manual or 7-speed DSG transmissions. It is on offer with the Panel Van, Crew Bus and Kombi. Optional features The T6 model range can be customised with a wide range of convenience and comfort optional features. The optional features offered with Kombi are 16 and 17-inch alloy wheels; parking distance control with rear view camera; ‘Discover Media’ Navigation system; towbar (only available with Kombi Comfortline); LED headlights and taillights; multifunction display and leather steering with rest assist (Fatigue Detection); as well as the light and sight package (coming/leaving home function, automatic headlamp activation, rain sensor). Service and Warranty Kombi and Caravelle models come standard with a three year/120 000km manufacturer warranty and five year/60 000 km Automotion Maintenance Plan. Transporter models are offered with a standard two year/unlimited km manufacturer warranty and three year/60 000km Automotion Maintenance Plan. All models have a 12 year anti-corrosion warranty and 15 000km service intervals. I have enjoyed my time in the VW Kombi and it is still one of my all-time favourites. It may seem expensive but what else is there? Even a Toyota Fortuner owner came to have a look and was seriously considering trading his Fortuner for a VW Kombi.

Retail Prices (VAT and emissions tax included – only on passenger derivatives) Kombi 2.0 TDI Kombi Trendline 75kW 2.0 TDI Kombi Trendline DSG 103kW 2.0 TDI Kombi Comfortline 103kW 2.0 TDI Kombi Comfortline DSG 103kW 2.0 TDI Kombi Comfortline LWB DSG 103kW

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R481 800 R513 300 R566 400 R583 900 R591 900

Subaru XV all-wheel drive:

A Splendid vehicle by Carl Wepener

The fiery red Subaru really got my attention as a good looking, premium crossover vehicle but also well-built and modern looking. Add to that the list of specifications and technical wizardry and you have a serious contender in the hatch-back cross over sector.

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he all-new XV is the definitive choice of crossover in the market with SUV capability within a contemporary and compact body design underpinned by Subaru’s Symmetrical All-Wheel Drive system and a new 2.0-litre direct injection Boxer engine. It’s a fun and rugged yet sporty design, offering versatility in both urban areas and the countryside. Previously only a feature of larger Subaru vehicles, the new XV now comes standard with X-Mode, a system that enhances the crossover’s off-road ability at the touch of a button. The new Subaru XV also offers a suite of world-class safety and hazard avoidance features, including the EyeSight® Driver Assistance system on the 2.0i-S ES model. Add the CVT gearbox and you have a really smooth power delivery from the word go. Although it is not fast nor quick it is really a superb technologically advanced and well-built vehicle. Power delivery from the flat-four engine is 115 kW and 196 Nm. The CVT also has a seven-speed manual mode box that can also be shifted by the paddles behind the steering wheel. I used it to get a bit more power and speed when needed. Fuel efficiency has never been a strong point and the XV claims 7.3 L/100 km. My average for town and highway driving was a pleasant surprise at 8.5 litres per 100km. My only quibble was with the small luggage compartment being 330 litres up to 1 220 litres. I found it extremely inadequate loading my two grandchildren with all their bags and toys. The sill is also too high making it awkward for dogs to jump in. As the first SUV-Crossover iteration of Subaru’s new DYNAMIC x SOLID design philosophy, the new XV strikes a bold impression. Overall length and width has been increased with the result that it is lower and wider with a sporty stance. The Subaru hexagonal grille and the hawk-eye headlights continue the design tradition that is carried across all new models. From the side, the shoulder and belt lines carry through to the rear to create a contemporary and more modern feel.

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In contrast to this and an XV signature is the inclusion of the black-tone design elements in the form of cladding and bumper components that don’t just give the XV a more rugged appearance, but also protect the bodywork from scuffs and scrapes especially when going off-road. Pronounced wheel arches under which a new signature wheel design sits, leave no doubt as to the XV’s cheeky character and its unique all-terrain ability. An important selling point of the XV is its wheel designs and the new car features either 17-inch or 18-inch unique alloy combinations. To complete the adventurous façade, all XV’s in South Africa come with a shark fin antenna, roof spoiler and roof rails for further practicality. There’s an improved harmony in the design that has the added benefit of improved aerodynamics overall. As mentioned, the build quality is very good and thus the ride quality is smooth and I must say the XV is very surefooted on all surfaces. With its 220mm clearance it goes over most gravel road obstacles and even some really uneven and holed areas. It’s off-road X mode sets it apart from its contenders as they do not have a real off-road mode. The difference when using this feature only adds to the confidence in this amazing vehicle. It also has descent control which is always helpful. The new interior design of the XV is a leap forward in design, ergonomics and functionality. The new cabin has been awarded a Top 10 Best Interior Design award by WardsAuto, an organisation that judges interior design annually. This is the first time in the history of Subaru that this rating has been received. Continuing the Dynamic X Solid design language, the interior layout flows from the central stack to focus on the driver and passengers. Panels are finished in mixes of black and silver throughout the cabin including the switchgear, steering design and door inserts. It’s a fresh approach to design for Subaru and

specific to the XV, the adventurous spirit is communicated through the use of orange stitching throughout the cabin from the seats to the steering wheel, gear lever and centre stack. Entering, the eye is immediately drawn to the new eight-inch Infotainment StarLink LCD screen (available on the ES model) which allows access to a host of connectivity and media options and applications. SatNav is one of these applications, loaded with TomTom navigation software and functionality too. It’s a large, clear screen that is touch, swipe, pinch and pull-controlled, making it easy-to-use and very intuitive, much like most Smartphones. Apple CarPlay and Android Auto are standard while Google Now or Siri Eyes Free allows the driver to direct functions using their voice. The tilt/telescopicallyadjustable leather wheel itself features the audio, cruise control and mobile phone controls. There are a number of one touch functions throughout the cabin, notably the electric windows, which feature one touch open and close on all windows as well as the keyless entry push-button start system that allows you to keep the keys on your person whilst still being able to operate the functions required. Also available on the ES model is a slide/ tilt-adjustable sunroof. Through improvements in noise reduction, seat design and airflow, the new XV is an all-round, more refined ride with comfort levels significantly enhanced. The seats are an all-new design with improved seat ventilation and back support. The air-conditioning system too has improved airflow around the cabin for a more consistent cabin temperature and a more effective defroster.

Ride comfort is also very good with good support from the seats. I found the interior to be very calming and not cluttered with all of the important systems right where you want it. I loved the front eye sight safety pack cameras for distance control and accident warning really excellent and especially the reverse camera for rear traffic assist that ensures that you see vehicles coming from the sides. Add turning headlights, high beam assist, blind spot assist, adaptive cruise control and especially pre-collision braking and you have one fine capable and safe vehicle. To prove it, the XV scored the highest point’s ever in the New Car Assessment Crash test. The technical aspects and the systems fitted to the XV really impressed me. The infotainment system is superb as it is clear, fast and is easy to use. The system is both Android and Apple capable and smartphone integration is used for navigation. The new XV is now available in South in two derivatives:  Standard Spec Subaru XV 2.0i CVT for R385 000.  Premium Spec Subaru XV 2.0i-S ES CVT for R439 000. The Subaru XV is sold with a five-year/150 000km warranty and three-yaer/75 000km maintenance plan. I believe there are very few brands in this sector that can touch the XV when it comes to value for money or for specifications, reliability and then for its all-road abilities. Now if only the boot space problem can be sorted, I believe it will be a best seller. The Subaru XV is a good contender for the 2017/18 Wesbank COTY awards.

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A f r i c a ’ s

M o s t

I n f l u e n t i a l

WOMEN B u s i n e s s

a n d

G o v e r n m e n t

Erica Elk, Executive Director at Cape Craft + Design Institute (CCDI)

i n

Creativity

sparks huge success by Charmain Pieterse

Any creative soul will know that it is not as easy to make your passion and inherent talent your career. There are thousands of graduates out there who have pursued their passion with the goal to practise within this field, but inevitably have to do a career U-turn just to make an adequate living. Many would say this is living in the so called ‘real world’ – your passion and talent often has to give way to a job that pays the bills.

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2018/2019 F

air enough, in a tough economy we often don’t have a choice where our careers take us, but the true creative will not be able to suppress the need to create. These are strong-willed characters who not only pursue their passion, they make it part of their lives, because it’s not a job, it’s a carefully crafted career driven by determination and perseverance. These are people like Erica Elk, a 2015 finalist at the Most Influential Women in Business awards. “I attend classes, have acquired a post-graduate diploma, held my first solo exhibition and annually participate in group shows,” explains Elk. “This journey feeds my creative energy and has given me additional insights, which I put back into my work of facilitating dynamic possibilities and opportunities for the art, craft and design sector.” Elk is the Executive Director at Cape Craft + Design Institute (CCDI) which provides business, product and market support services to over 5 000 creative enterprises (who collectively sustain jobs and income for

Association in 2013. Her take on what makes her stand out is the fact that she is an artist, activist, entrepreneur and development worker. “From my student activist days to a different type of activism in the craft and design sector, I grasp opportunities to lead, defend, transform and develop, based on sound values and a sense of justice,” she exclaims. “I am a people’s person and am part of, and also represent, a cultural collective, not just myself. I have proudly participated in a decade of development to adopt a more integrated approach – viewing ‘craft and design’ as synergistic, mutually inclusive and part of a broader creative sector.” We were intrigued to discover her leadership style, considering her drive to upskill those working for her. She also appears to have a natural sense for leading others to pursue and achieve their own greatness. “I lead with a sense of humour and an inherent respect for other people’s talents and self-worth, giving them the space to discover what

“Together with a growing team of dedicated staff we have built the organisation; its methodologies and services are now widely recognised as pioneering in creative entrepreneur development” an estimated 14 000 people). “Together with a growing team of dedicated staff we have built the organisation; its methodologies and services are now widely recognised as pioneering in creative entrepreneur development,” she highlights. “Our innovative programmes develop the capacity and confidence of creative entrepreneurs to build their own businesses and navigate their way to success.” It’s very clear that Elk has a strong business sense and drive, and she has managed to successfully combine this with her creative talent. Going one step further, she also helps others to pursue their own entrepreneurial ability, which is my no means an easy feat. Helping others achieve success is what business is truly about, and she has made it her mission to combine all these above factors to achieve her own success, which is indeed impressive. This is what makes her stand out from the rest, having achieved numerous awards, such as Regional Social Entrepreneur of the Year, Business Women’s

these might be,” she notes. “I allow people time to think, space to speak, and empower them in the knowledge that I value their contribution.” It is clear that Elk’s work is so integrated into her life and is almost exclusively about social responsibility, giving back and transformation. She is living her dream and is an excellent example of what it takes to achieve success. Looking ahead, Elk adds that their work is increasingly focussing on inspiring the next generation of problem solvers, lateral thinkers, innovators and value creators. “In the way we function we are building an ethical and respectful culture; modelling socially responsible behaviour and encouraging entrepreneurs to do business ethically,” she concludes. “As an employer and institution, we have excellent governance systems, and very good staff performance management. In all of these ways we act as a role model for the (Arts and Culture) sector.”

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2018/19

Simdul Shagaya, Founder of DealDey.com. and previous CEO of Konga.com

Two words resonate well with businesses throughout the world; technology and innovation. Why? Because technology has infiltrated every aspect of everyone’s lives, and businesses cannot afford not to take advantage of technological developments in an inventive way to stay relevant and ahead of the rest. That is why you always read about technology and innovation, and the success achieved by organisations is usually due to embracing these ongoing developments.

Entrepreneur embraces

Technology & Innovation by Charmain Pieterse

owever, what we are perhaps lacking in the face of this technology driven world are entrepreneurs who passionately pursue the development of their own products or companies using technology innovatively. It’s there for the taking; it’s time for individuals to take a chance and develop their own futures by turning to others who serve as inspiring examples - entrepreneurs who achieved overwhelming success. One such example is a truly unique individual who isn’t afraid to take chances and has proven that technology, innovation and entrepreneurship are key to achieving success beyond expectation. In fact, his own success has surprised him, but it has also driven him to achieve more

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and do more. This fascinating man is Simdul Shagaya, Founder and previous CEO of Konga.com and DealDey.com. As a Nigerian, Shagaya is betting big that Africa is poised to be the next frontier for online retail. “We are the custodians of the dreams of the middle class of Africa,” he says as he talks about his fast growing e-commerce company, Konga.com, which he founded in July 2012. “Konga, through hard work, innovation and an allconsuming desire to better the lives of this society through technology, leads the field in Nigeria today in Gross Merchandise Value (GMV).” Shagaya, whose corporate Africa stints include Google, Lucent Technologies and Rand Merchant Bank in South Africa,

ceo b u i l d i n g

c e l e b r a t i n g

e x c e l l e n c e

i n

o r g a n i s a t i o n s

n a t i o n s

launched e-Motion Advertising in November 2005, a Lagos based integrated marketing and communications agency. In March 2011, the serial entrepreneur then founded Dealdey (Africa’s answer to Groupon), which grew to be Nigeria’s leading daily deals site. He then went on to spot a gap in his native country. “Nigeria is a market with deep mobile penetration and fast growing access to the internet,” he exclaimed. Konga is a spin-off from Dealdey, and according to experts, analysts, businessmen and even internet users, Shagaya’s biggest achievement is the creation of Konga. com. It was initially financed by Shagaya himself, but two months later, investors from all over the world started to approach the company. According to Shagaya, to succeed, one must know how to deal with challenges, especially in the African continent. “There is a dearth of skills on our continent

“Konga, through hard work, innovation and an all-consuming desire to better the lives of this society through technology, leads the field in Nigeria today in Gross Merchandise Value (GMV).” because we haven’t invested in anything that we should have an education, and even healthcare,” he continues. “So the human capital quality here is not what it should be. So finding good people is the toughest part.” His primary goal with Konga was to aggregate the youngest and fastest growing market that was dispersed,

under-served and that retailers were simply failing to reach. “Konga is a word that is found across the numerous ethnic groups on the continent,” Shagaya explains. “To the Yoruba’s of Nigeria, it means a ‘water well’. Something that everyone uses . . . everyday, and everyday consumers in Nigeria and across West Africa started to log onto Konga.com for products that they were otherwise purchasing in physical retail stores.” Often referred to as the Nigerian tech entrepreneur, Shagaya stepped down as CEO of Konga in 2016 to assume the role of the Chairman of the company’s Board of Directors. However, his passion hasn’t dwindled. “I love technology and I like the idea of building new things,” he emphatically concludes. “At Konga we think technology will be hugely redemptive for Africa and will unleash the already existing entrepreneurial energy of this part of the world.”

Beating your Competition Shagaya offers the following three tips regarding competitors: 1. Give people better value meaning convincing them over time that the deals/values we give them they can’t find anywhere else. 2. Customer service – that is treating every customer like they are your only customer. 3. Our competitors are only doing service business; we go and get those deals from restaurants, for example. We are taking it one step further to do something with high quality products from various parts of the world. (Dealdey) Sources: www.forbes.com; www.afrika-news.com; http:// feeds.feedburner.com and http://ventureburn.com

CEO 2018 Vol 17.1

InConversationWith

Stacey Brewer “Education is not the filling of a pail, but the lighting of a fire.” This is SPARK School’s personal quote and represents what they stand for. It’s a powerful quote indeed, but if you meet the co-founder and CEO of SPARK Schools, Stacey Brewer, you will begin to understand why everything regarding these schools is driven by a fiery passion to teach and educate. Brewer launched this independent network in 2012 and has been involved in its evolution and growth ever since. There are currently 15 SPARK Schools in South Africa; 14 in Gauteng and one in the Western Cape, with more planned for 2019, including the first high school. What makes SPARK Schools unique? The schools use a blended learning model with adaptive software and individualised learning to increase student achievement and rely on a hybrid funding model, having attracted funding from both non-profit foundations focused on high impact philanthropy and from for-profit impact investors.

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What inspired the development of SPARK Schools? While doping my MBA at GIBS, I saw how we spend the greatest proportion of our budget and GDP on education and yet we are ranked at the bottom of the world. I also noticed the emergence of low fee private schools, where parents were voting with their feet and choosing to send their children to fee paying schools as opposed to free government schools. I then did my thesis on a sustainable financial model for low fee private schools. Did anyone inspire the educational system you decided to follow? During my MBA, I spent some time looking at models across Africa, India and the US. We got a lot of inspiration from Rocketship Education in the USA. They pioneered blended learning, which allows us to achieve our mission of providing high quality education at an affordable cost. The blended learning model is technology that is integrated into the learning process. As such we have a lab rotation in our foundation phase and a flex model in our intermediate phase. How do you decide where the schools should be? We like to place our schools in transition zones where we are able to attract a diverse student base. Our schools are ideally placed between an affluent and a previously disadvantaged area. Where do you see SPARK Schools in five years? We aim to be operating at least 36 schools across the country and I hope to see many more schools having started to provide more choice to our families across South Africa. We hear that you are opening a high school in 2019. Can you tell us a bit about that? We are launching our first high school in the Randburg area. Our oldest children are in Grade 7 this year at Ferndale and we will now be able to follow their progress into high school. What is the biggest challenge facing South Africa when it comes to education? It is very complicated but I would say the number one problem is that we have very low expectations for our children and we do not believe that they can achieve.

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