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

2. 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

3. 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??

4. When excuses become the truth

5. 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

6. 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

7. 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?

8. 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

9. 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

10. 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?

11. 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

12. 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

13. 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

14. 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.

15. 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?

16. Way Forward