Dr Poobie Pillay- Group Transformation & Procurement Executive Aveng- Road to Transformation Dr Poobie Pillay- Group Transformation & Procurement Executive

The 4 year journey True transformation or ‘buying points’ – the mistakes we made by outsourcing Sustainable transformation The internal Procurement and HR decision makers consultation process Accountability or excuses Overcoming the stereotypes Lack of knowledge or head in sand syndrome Overcoming fears in the organisation Entrenching accountability

Some frequent responses to Communications I don’t know I cant find They don’t exist It will cost more Why should I It will effect our competitors as well poor quality Its not my job It wont affect the company! Aveng Does not need a scorecard??

When excuses become the truth

The early period The roadmap started with: Improving buyer competencies (95% could not interpret a scorecard) Provided training across the group on the requirements of the revised codes- met with resistance Agreed 3 year strategies aligned to the revised codes Management understanding of legislation EE legislation and practices SD practices Improve line management knowledge on transformation (over 90% had not read the charter) Moved ownership of transformation from corporate to Business Transformation KPI’s entrenched and linked to Bonus

The learnings from year 1 Lack of communication from management to the rest of the business Lack of alignment to KPI’s No ownership, hence no accountability Creating a sense of urgency: Compulsory transformation strategy session for all senior and middle management supported by the board

Leadership Support Is it necessary? Should it be visible? Where is the transformation role positioned? What ‘’clout’’ does the transformation role have? How to dispel myths around transformation?

Transformation Conference with a twist The transformation team deliberately set out to: Create a sense of awareness of the business imperative using the previous years poor performance, including lack of bonus and increases Remove the misconceptions around EE and SD by focussing on white opportunities as opposed to white exclusion Tackled ESD from a perspective of opportunities for white owned suppliers as opposed to white owned exclusion Diversity training Tackled EE and SD from a point of legislation- where does it say it excludes whites

Transformation Conference with a twist BBBEE spend from all Empowering suppliers that are QSE based on the BBBEE Procurement Recognition levels as % of TMPS 3 15% Did you know that you can score all points in this category with White Owned QSE’s

Transformation Conference with a twist BBBEE spend from all EMEs based on the BBBEE Procurement Recognition levels as % of TMPS 4 15% Did you know that you can achieve all points in this category by spending with White Owned EME’s?

Transformation Conference with a twist Indicator Description Weighting Points Compliance Target Senior Management Black senior management as a % of all such employees 2 60% Black female senior management as a % of all such employees 1 30% Middle Management Black middle management as a % of all such employees 75% Black female middle management as a % of all such employees. 38% The codes allows 40% of Senior managers to be white It allows 70% of senior management to be white woman

The Conference Tactics The tactics employed were simply: Deal with the stereotype that Black people are responsible to drive transformation Correct Misinformation around the BBBEE/ EE/ SD/ ESD Remove the black/ white discussion and move to the business imperative for all employees Highlight how they were sabotaging their own futures in the organisation Had white males discuss the need for diversity and gender transformation Had each MD introduce the conference speakers to show leadership support Had CEO and board approval

The Conference Outcomes The comments ranged as follow’s: Eye opening / inspirational/ the best they ever attended/ highlighted the prejudice that was propagated by a lack of understanding Set the record straight that BBBEE was not about excluding whites Better than the Aveng Leadership conference???? Created a new sense of urgency for the organisation to do the right thing Changed thinking and removed entrenched fears amongst white colleagues The topic of race, prejudice, racism, intolerance was brought into the open in a constructive manner

The changing role of transformation Transformation managers and their ability to influence change- should this reside in HR? How does a transformation manager in HR change supply chain practices? How does the transformation manager change HR and Supply chain thinking and strategy? Aveng has moved to Transformation impacting business at all levels- HR and Supply chain contact us to assist in formulating functional strategy to ensure they meet transformation targets.

EE and SD challenges Stereotypes/ prejudice/ lack of knowledge versus DoL penalties- does the business understand the difference? SD for BBBEE points or employee development- which is more sustainable? Does the culture support the growth of Black Employees? Are there unnecessary hurdles for employees? If the sector was scoring highly on Skills development, why was it not reflecting on EE performance?

Way Forward