Dr Poobie Pillay- Group Transformation & Procurement Executive 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

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

Who is responsible? 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

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 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 I am youth owned 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 I am BWO I am youth owned I am 100% BO Aveng must help me set up my business

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 I am BWO I am youth owned I am 100% BO Aveng must help me set up my business

Way Forward