Aveng ESD Implementation Dr Poobie Pillay Group Transformation
Aveng- ESD Implementation Dr Poobie Pillay- Group Transformation & Procurement Executive
Key drivers of ESD • What is ESD and why is this a necessary transformation imperative? • Who is responsible and accountable for ESD within an organisation? • The Aveng Journey on ESD • Performance from the outset • Procurement Decision Makers • Legislation • Turning legislation into sustainable actions • Accountability / KPI’s • The current situation 2
Why is ESD Necessary? • ESD focusses on 3 specific areas, all of which are considered priority elements of the BBBEE scorecard: • Enterprise Development • Supplier Development • Preferential Procurement • Key focus on creating a new generation of emerging business aimed at reducing unemployment (NOTE- NOT Black owned only) • Skills transfer • Lower dependency on social welfare • Greater contribution to taxes • The highest percentage of points within the scorecard • Change the ownership landscape to reflect the demographics of SA 3
Who is responsible? • • • 4 The early conversations internally Measured performance- sustainable to ticking boxes Outsourcing key activities Corporate versus individual business units Procurement officials versus transformation officials
The Aveng Journey • Early conversations with business leadership and procurement officials: • Codes • Roles • Spend Analysis- what was our existing position • Accountability linked to bonus • Decision making capabilities and authority • Authentic transformation or points scoring • How to convert legislation into substantive action • Working committees • Role of transformation in effecting procurement change 5
Some key initiatives on PP • How do we successfully introduce SMME’s into Supply chain? • Keeping initial improvements simple- focusing on price quality and deliveries • Do your suppliers know what you require and how did we engage? • Focus on customer service • Creating platforms to show case to entire business, facilitating the meeting of decision makers internally Then improve technical and management skills • Focus on core competencies- from HR to Finance, to Procurement to Legal, Safety etc to create more well rounded entrepreneurs • 6 Track revenue improvements and service delivery
Some General Comments • The rural entrepreneur with a lack of basic business understanding - our 3 day ‘anything goes workshop’ has resulted in a number of local business being engaged by Aveng. • Internal support from colleagues- who to use and why- the importance of a good facilitator • The upcoming challenge of fronting- why is this a concern- are Black companies also fronting • The pitfalls of success- how to prevent the emerging business from falling into this trap 7
ED/SD Challenges • The early constraints • Whose responsibility is the training and development of emerging businesses? • Are Black Emerging businesses expecting too much? • What did we first encounter? • How did we overcome the internal and external bridges in communication Ú I am BWO • I am youth owned • I am 100% BO • Aveng must help me set up my business 8
Using Internal Capabilities • The early constraints • 18% of 150 interviews showed fronting practices by both white and black owned companies • The majority of suppliers exhibited a sense of entitlement without understanding our business • A number of suppliers did not understand their own core business Ú I am BWO • I am youth owned • I am 100% BO • Aveng must help me set up my business 9
Way Forward
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