1. Dr Poobie Pillay- Group Transformation & Procurement Executive
Aveng- ESD Implementation
Dr Poobie Pillay- Group Transformation & Procurement Executive

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Way Forward