Governance guidelines for small business

Directors’ Sentiment Index™

- the Fourth Edition

THE SMALL BUSINESS EDITION

Better directors. Better boards. Better business.� July | Aug | Sep 2019

DIRECTORSHIP

The annual IoDSA Reputation Survey

Small businesses need to be resilient

Making room for millennialsS O U T H A F R I C A

www.iodsa.co.za

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02 From the IoDSA by Parmi Natesan

03 CGN launches two new papers

04 Meet the new IoDSA leadership

07 Small businesses need to be resilient by Lynette Dicey

10 SME Profiles Elise Sormani

Marilyn Radebe Motäelisi Silindane Neeraj Mannie Robert Manson

15 Governance in SMEs: Guidelines for small business by Lynette Dicey

17 Making room for millennials by Samantha du Chenne

20 Directors' Sentiment IndexTM – the Fourth Edition

26 Successful unsustainable business models by Robert Louw

27 CEOs, are you leading by example? by Regine le Roux

28 IoDSA Reputation Survey

30 The Role of the Company Secretary is Underrated by Matodzi Ratshimbilani

31 Corporate governance and King IV must be woven into the fabric of organisations by Judy Gounden

32 Disruption: Will your business land on its feet? by Joan van der Westhuizen

33 Are South African board of directors prepared enough for boards? by Eugenia Kula-Ameyaw

34 Corporate South Africa can - and should - contribute to building an ethical state by Cynthia Schoeman

35 Sustaining the Risk Climate in South Africa by Dr Anushka Bogdanov

36 How Corporate Value is eroded by Chris Adonis

37 Chartered Directors

38 IoDSA Events

40 Travel – How to pack for any trip in just a carry-on suitcase by Lauren Steele

43 Wine: The price – from sod to table by Jeremy Sampson

CONTENTS

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Publisher: Richard Lendrum Editor: Parmi Natesan Managing Editor: Debbie Bassa debbie@thefuture.co.za Layout: Nadette Voogd Production Manager: Mabel Ramafoko

Directorship is published by Future Publishing (Pty) Ltd. Opinions expressed in Directorship are not necessarily those of the publishers. Permission to re-publish any article or image or part thereof must be obtained in writing from the pub-lisher. © Future Publishing

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S mall and Medium Enterprises (SMEs) play a key role in driving economic growth

and development in South Africa and make up a critical component of an inclusive economy.

According to a baseline study of Small Businesses in South Africa, the SME sector employs 47% of South Africa’s workforce and contributes more than 20% to the country’s gross domestic product (GDP) and pays about 6% of corporate taxes.

In th is edition of Directorship we focus on the SME sector, addressing some of the challenges faced by small and medium-sized business owners.

SMEs encourage innovation and diversification in business and are an important contributor to reducing unemployment in the country. There has never been a greater need in South Africa for small- and medium-sized businesses and more entrepreneurs both to grow the economy and create much needed employment opportunities.

Despite this, there is a perception that the South African economy does little to support SME growth and development. SMEs are also often burdened with many challenges including limited access to funding, lack of access to markets, inadequate

skills and resources, lack of recognition by corporate companies and government as well as high regulatory compliance requirements.

Many small and medium-sized businesses generally make the mistake of assuming that the King IV code of corporate governance simply does not apply to them. Although the phrase ‘corporate governance’ may lead people to believe that its only applicable to only large bureaucratic businesses, this couldn’t be further from the truth. One of the keystones of good governance is ethical and effective leadership, which applies as much to small business as it does to larger organisations. In an article on governance guidelines for small business, we unpack some key insights from IoDSA facilitator, Ralph Patmore around this topic, and look at how SMEs can adopt better governance practices in their enterprises.

The case for younger people taking up leadership positions, and in particular, at board level, is becoming increasingly more important. This is especially true as organisations strive to develop diverse teams of leaders and board members to represent all levels of stakeholders within a business. Age has become as important as gender and race when it comes to leadership diversity. Millennials often have a deeper understanding of what

is and isn’t relevant than their older counterparts – valuable insights which foster the ideas that will enhance the sustainability of business in a climate that is changing at an alarming rate. In the article entitled, Making room for millennials, we look at what organisations can learn from millennials. We also feature insights from Sherma Malan on how the IoDSA is positioning and preparing millennials for the boardroom.

We recently published the fourth iteration of the South African Directors’ Sentiment Index™. The survey is undertaken annually by the Institute in order to better understand the sentiment of directors around the state of business, economic, governance and directorship conditions in South Africa as well the challenges they are facing.

The latest results and trends seem to indicate that South African directors are positive about governance practices and that board members do have a large influence and ability to set the tone. We will continue to monitor director sentiment raised through this report with an aim to improving and ensuring that we are providing the assistance directors need in the governance and directorship space.

Parmi NatesanChief Executive Officer

The Small Business Edition

From the IoDSA

Non-Executive Directors

Ntuthuko Bhengu, Sana-Ullah Bray,

Zeona Jacobs, Felicia Msiza,

Muhammad Seedat (Chair),

Louisa Stephens (Lead Independent

Director), Eileen Wilton

Executive Management

Parmi Natesan (Chief Executive

Officer)

Zandi Madikiza (Executive:

Finance & Operations)

Vikeshni Vandayar (Executive:

Governance & Corporate Services)

Sherma Malan (Executive:

Certifications & Member Services)

Offices

Johannesburg

info@iodsa.co.za

(011) 035 3000

www.iodsa.co.za

Cape Town

iodwestcape@iodsa.co.za

Durban

iodkzn@iodsa.co.za

S O U T H A F R I C A

Connect with the IoDSA on social media

@The_IoDSA#DirectorshipMag

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@iod_southernafrica

Institute of Directors in Southern Africa

@parminatesan

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Corporate Governance Network launches two new papers

Governance news

The Corporate Governance Network (CGN), a forum of the Institute of Directors in Southern Africa (IoDSA) sponsored by PWC, has launched

two new papers: Key issues for governing bodies to consider and Mentorship for governing body members.

Key issues for governing bodies to consider looks at the current key issues that Southern African governing body members should be considering. The issues are grouped into three themes. “Looking within” identifies four issues that relate to optimising the performance of the governing body. Because the governing body is considered to be one of the organisation’s strategic assets, its composition is necessarily of critical importance. It should be assessed in terms of the organisation’s current and future needs. Other important issues are director independence, talent management and skills, and a deeper focus on oversight of corporate culture.

At the launch event, Richard Chambers, President and CEO of the Institute of Internal Auditors, said that corporate culture was the

800-pound elephant in the room. Chambers was speaking at a panel discussion hosted by the CGN to present both papers to members. “Culture runs through every corporate scandal,” he said.

The second theme of this paper, "Navigating the changing environment", examines two issues relating to the fast-paced business environment characterised by disruption and innovation. In this context, long-term value creation and sustainability are obviously both critical and challenging.

The final theme, “Rebuilding trust”, acknowledges the negative impact that ongoing corruption in both the public and private sectors have had on stakeholder confidence. Governing bodies can play a key role in helping organisations to recover. Key issues highlighted in this section are ethics, stakeholder communications and crisis management, fostering trust between the governing body and management, and remuneration.

Mentorship for governing body members addresses the role that mentorship

can play in helping new members to acquire the skills they need in today’s highly dynamic and complex business environment as quickly as possible. The crux of the challenge is that new governing body members need a different range of skills to those that made them successful in their working life.

Speaking at the launch panel discussion, Simo Lushaba said that mentorship had a critical role to play in making directors more effective, and in nurturing the next generation of corporate leaders. He highlighted the fact that mentorship allowed experienced governing body members to pass down their insights, thus allowing new members to avoid having to make the same mistakes.

“Mentorship should be part of the board’s processes, not left up to individuals,” he said.

The paper identifies areas in which mentorship may be especially beneficial, and also offers guidance on how to select both mentors and mentees. It also deals with the question of managing and evaluating the mentorship process.

4People

A fter eight years at the IoDSA, Parmi Natesan has stepped into the role of Chief Executive Officer of the organisation. It’s a post well-suited to her excellent

management skills. Not only is she quick to adapt to any situation, she says one of her strengths is her ability to fit a great deal into a day, a useful attribute considering the demands of her new position coupled with her family responsibilities as a wife and mother of two.

Parmi initially joined the IoDSA as a Senior Governance Specialist and later as the Executive responsible for the Centre for Corporate Governance. She is a qualified chartered accountant (CA(SA)) in addition to being one of SA’s leading corporate governance specialists. In this latter role, she has written a number of papers and articles on the subject, and has been a speaker at various events and conferences. She has also served as an Executive Director on the Board of the IoDSA for the past four years, while at the same holding board positions at PPS Holdings Trust and Alviva Holdings as a non-executive director.

While she sees her appointment as CEO as a huge honour, it’s equally a significant responsibility and one that she doesn’t take lightly. “It took me some time to come forward and accept the role, because I needed to be certain that I would be able to dedicate myself fully to the time and energy it requires,” she reveals, adding that as a perfectionist, she is not one to do things by halves.

While her career is a defining factor in her life – indeed her goal is to be an example to women that they really can successfully balance career and family – for her, work and family life have become seamlessly integrated. “I don’t see my working hours as set – I am able to work wherever I am and my mind tends to be engaged on work much of the time. In fact, my best ideas come to me late at night,” she says. “However, I have made sure that my time is structured so that I am able to be there for my family when they need me,” she informs.

She’s excited to take her place at the helm of the IoDSA. “My background has always been as a governance specialist; and in this role I will have the profile and the influence to really make a difference in areas that I am passionate about, including ethical and effective leadership and directorship,” she notes.

Her career with the IoDSA has enabled her to be active in many areas of governance – she represents the organisation on a number of forums and committees, including the King Committee of South Africa, the Integrated Reporting Committee of South Africa, the Anti-intimidation and Ethical

Practices Forum, the 30% Club (which advocates for gender diversity on boards) and the Global Network of Director Institutes.

Going forward, Parmi’s vision is to drive the objectives of good corporate governance and further professionalise directorship. Her approach to leadership is one that drives progress. She reveals that her focus will be on developing the IoDSA team to meet its objectives. “We need to be very clear on why we exist, what we want to achieve and how we will go about achieving this. It’s all about the vision and purpose and that’s what I intend driving throughout the organisation. Ultimately, I aim to leave the IoDSA bigger, better and more impactful than it is now,” she enthuses.

Meet the new IoDSA leadership

Parmi NatesanChief Executive Officer

“We need to be very clear on why we exist, what we want to achieve and how we will go about achieving this.”

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"Given the plethora of corporate failures that have occurred in recent years an organisation such as the IoDSA is more relevant than ever."

ChairMuhammad Seedat

M uhammad Seedat is the newly elected chairman of the board of the IoDSA. An accountant by profession, Seedat has been a member of the IoDSA board for the past six years.

He was the youngest ever individual to be elected to the board of the IoDSA, and in 2017, was elected Lead Independent Director. At the age of 36 he is the youngest ever board chair of the IoDSA.

However, despite his relative youth, Seedat has extensive board and director experience. He has previously chaired the IoDSA’s Remuneration Committee and served on the Audit and Risk Committee. In addition, he has in the past acted as the Lead Independent Non-Executive director of KZN Cricket and served as the Vice President at the Durban Chamber of Commerce and Industry. He was also Deputy Chair of the SAIPA board.

In 2009 Seedat founded professional services firm, Smartrac which offers financial and risk advisory services as well as brand building and management services.

The six years he has spent on the board of the IoDSA, the last two as the Lead Independent Director, have provided him with a holistic view of the organisation, its strategic plan and what it needs to do to remain relevant and sustainable in the future.

“Given the plethora of corporate failures that have occurred in recent years an organisation such as the IoDSA is more relevant than ever,” he says.

He believes there is an urgent and growing need for the IoDSA to guide companies in terms of corporate governance practices. To achieve this it needs to grow its membership base and grow its reputation as leaders in corporate governance.

“Not only do we need to be more visible but also need to ensure we remain relevant, offering practical solutions to businesses in their various stages of evolution. Added to this we need to expand our reach into both the public and mid-tier sector, including both SMEs and family businesses given their importance to our struggling economy.”

Seedat maintains that the IoDSA’s most important mandate is to teach businesses how to use corporate governance as a tool to grow their business rather than a tick box exercise.

He sees his most important priority as building on the solid base left by his predecessor. “As chairman I hope to leave the IoDSA in a better place and space than when I arrived, and to keep building on its strengths.”

As such he has already implemented discussions around his successor because, as he says, boards shouldn’t leave succession planning to the last minute. Together with newly appointed IoDSA CEO, Parmi Natesan, Seedat intends to take the organisation to the next level in a sustainable way.

6People

L ouisa Stephens, the IoDSA’s newly appointed Lead Independent Director believes leaders must play an ethical and honourable role in the South African business landscape. South Africa is currently in a

leadership crisis and upholding a code of conduct is vital to rebuild credibility after corporate scandals the likes of Steinhoff and Tongaat Hulett, she says.

Collaboration between professional bodies is key, she insists. “There is a definite need for professionals and industry bodies to collaborate and come to a shared understanding of what it means to act in the best interests of both the public and the organisation.”

Collaboration, networking and mentorship have been pivotal for Stephens in terms of her own career. She began her university career studying actuarial science, but after a few vacation internships in the field realised she wasn’t heading in the right direction and moved to the accounting stream. Once qualified, Stephens worked as an investment banker at Rand Merchant Bank, where she was exposed to non-executive directorships. Her interest was sparked through representing RMB on investee committees’ companies. She also worked as General Manager of the Investment and Finance Divisions of Nozala Investments and as Chief Investment Officer of Circle Capital Ventures; in addition to serving on several investee companies as a representative of the investment holding companies.

In 2013, she stepped away from the corporate world, subsequently taking on various non-executive directorship roles, including positions on the boards of Multichoice Group and Multichoice SA, African Bank and African Bank Limited, as well as Royal Bafokeng Platinum Limited. Her first big opportunity, however, came about through a vacancy posted by the IoDSA.

“It’s crucial to establish quality relationships with fellow directors. SA has a small professional world, particularly in the specialised disciplines,” she says, adding that her willingness to show commitment and diligence have directed her career opportunities as fellow professionals are always happy to open doors for those who will go the extra mile.

Stephens says she has learnt more through her network of directors and mentors than she has learnt through books – quite an admission from somebody who is a qualified CA(SA), as well as being a chartered director and an independent financial trader.

She points out that in today’s digital climate, mentors have a particularly important role. “It’s imperative that we include young directors on our boards, as they have a greater understanding of digital innovation – without which many companies would be disadvantaged. That said, these young people are expected to mature more quickly than one had to in the past, which is where mentorship comes in. It is the older directors who can guide the younger ones in terms of creating a global view and arguing their ideas without alienating the rest of the board.

The role of lead independent director is a great privilege, she says, and one that she didn’t expect in such a short period of time. It’s also a large responsibility. “We are already on the path to digitising the IoDSA and making the organisation more

accessible to younger directors who communicate on social media platforms,” she reveals.

A further mandate of hers is to get young directors to consider the role of non-executive director in order to understand the importance of guiding organisations that are struggling with governance and to identify companies that require volunteer time to elevate and educate their directors, she concludes.

"There is a definite need for professionals and industry bodies to collaborate and come to a shared understanding of what it means to act in the best interests of both the public and the organisation."

Lead Independent DirectorLouisa Stephens

SMEs

Small businesses

Lynette Dicey

There has never been a greater need in South Africa for small- and medium-sized businesses and more entrepreneurs both to grow the economy and create much needed jobs. Yet, small businesses face a myriad of challenges ranging from increased levels of competition in a shrinking market, bureaucratic regulatory hurdles, cash flow constraints, and petty theft and fraud, amongst many others.

need to beresilient

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S outh Africa continues to slip in global competitiveness and ease of doing business rankings. The World Bank’s 2019 Doing Business

Report ranks South Africa in 82nd position out of 190 countries. In 2006 it was ranked in 28th position in this same report.

The World Bank’s ranking focuses on 10 criteria: the ease of starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. In 2011 the ranking removed a criterion around the ease of hiring and firing – an area where South Africa ranks poorly – but despite this, South Africa continues to slip in global competitiveness and ease of going business.

The World Economic Forum’s Competitiveness Report for 2018-2019, released in late 2018, gave the country a similarly poor rating, ranking the country 67 out of 140 countries.

A challenging economic climate puts pressure on smaller businesses

The current economic climate is one of the biggest challenges facing most small and medium sized businesses, threatening their sustainability. It’s certainly the biggest challenge facing technology group, Gendac Holdings, says Group CEO, Corne van Biljon. “Large, long-term opportunities are waning in lieu of smaller, short-term opportunities that puts pressure on the bottom line,” he says, adding that resilience in these circumstances is of the utmost importance.

The group has adapted by optimising all its processes which has allowed it to run even smaller projects profitably, has diversified its portfolio by adding cloud ERP solutions so that it can offer its services to small and medium enterprises. Recognising that human resources are its most valuable asset, the group has focused on retaining critical talent. “Now more than ever we depend on our people to fight through this downward cycle,” says Van Biljon.

During upward business cycles, companies spend on technology to expand and grow, he explains, while

downward cycles sees them spending on technology to better optimise their businesses. “In the current business environment, we’ve had to adapt to much longer sales cycles, almost double what they used to be. And in order to retain a healthy sales pipeline, we’ve had to put much more energy and focus on sales and marketing.”

MarketingWith more limited resources than larger corporates, marketing can be a significant challenge to small businesses. “As a business to business service provider our biggest challenges is to get exposure to and grab the attention of key decision makers,” says Kobus le Roux, owner of Le Roux Consulting, a project and programme management company. “We have found it challenging to bridge the gap between the traditional and new mediums of connecting with customers and grabbing their attention. We get a lot of leads via our content strategy on social media, for example, but those tech-savvy decision makers who embrace social media typically only make up 20% of our customer base. The remaining 80% are more traditional in their approach to social media and often don’t even have a LinkedIn profile.”

Regulatory hurdlesThe South African government doesn’t fully understand the challenges facing small businesses but instead talks glibly about the need for job creation rather than small business creation, of which the by-product will be job creation. Small businesses are the employers of the future, says Muhammad Seedat, newly elected IoDSA Board chair. Small businesses, however, are faced with the same level of regulation as larger, corporate businesses. The cost of complying with this regulation can be crippling, threatening the business’s sustainability.

“The South African Revenue Service (SARS) can be a nightmare for a small company to deal with. Similarly, registering a business or applying for a VAT number can take a long time,” points out Seedat. “Until government eases these requirements that status quo is unlikely to change.”

Cash flow pressuresMost corporates run on a credit cycle paying their suppliers anything between 90 and 120 days, and sometimes even longer. “It can sometimes take up to six months for cash to turn over in a small business which puts enormous pressure on cash flow,” says Seedat. “In a recessionary environment small businesses that have one big customer are particularly vulnerable in instances of non-payment, or should the contract be cancelled.”

Late payments are the biggest challenge currently facing family-owned outsourced business solutions providers, FullServe Group. Co-owner Fundi Mazibuko says late payments not only impact cash flow negatively but also result in potential job losses. “We spend a lot of time chasing outstanding invoices and this reduces business productivity.”

She says that in the current economic climate margins are small, yet clients insist on further driving prices down and then take a long time to pay. “We still want to get work from them in future so it’s hard to be tough on them. The burden of late payments is definitely worse for small businesses than for a large company with the resources to continue operating,” says Mazibuko.

Challenges facing SMEs• Challenging economic climate• Marketing• Regulatory hurdles• Cash flow pressures• Human resources challenges• Little alignment between skills and

ideas• Mindset around failure• Access to finance

SMEs

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Human resources challengesLabour is a challenge shared by many small businesses. As a country South Africa has a reputation for inflexible labour laws and strong unions, which doesn’t make it easy to hire, or fire, staff.

“Employing skilled people is becoming harder and harder in the current environment,” says Seedat, “and it’s even harder to retrench given that there is a strong expectation on the employer to provide ongoing employment.”

As a result of this smaller businesses are looking to mechanise where possible. “Smaller businesses would have a greater appetite to hire staff if it was easier to fire them. But because it’s so hard to get rid of staff they try to avoid hiring if at all possible,” says Seedat.

Little alignment between skills and ideasAs few as 15% of start-up businesses in South Africa are successful, with the failure rate of SMEs in the first three years particularly high. This is despite a plethora of organisations providing support to entrepreneurs. One of the reasons for this high rate of failure is a lack of entrepreneurial skills and a lack of alignment between skills and ideas. “If the business owner doesn’t have the required business management skills and a solid business model, the business is doomed to failure,” says Seedat.

Changing the mindset around failureUnlike the United States where business failures don’t doom the entrepreneur – and where failure is in fact even celebrated – in South Africa a business failure is frowned on. “We need a total paradigm shift around business failure,” insists Seedat. “Instead of viewing failure as the end of the road we need to view

every failure as one step closer to a business success. Entrepreneurs need to have sufficient confidence and belief in themselves to see an idea through, and to try something different when one idea doesn’t work out, rather than giving up.”

Access to financeWhile access to finance is an issue for some small businesses, the reality is that it’s usually not a deal-breaker, says Seedat. “There has never been a better time to start a business given all the available functionality and there is much a small business owner can do with little or no finance. If the business is premised on a good business idea with a sound strategy underpinning it and the business model is financeable, access to finance is less likely to be an issue. The caveat, however, is that the business must be run by individuals with adequate skills and knowledge, or it won’t be sustainable in the long-term.

Islands of opportunityAmidst the chaos of the economic downturn there continue to be islands of opportunity, insists Le Roux. “Our business is in the construction industry and our customer base consists of mid to large construction companies. As a result of larger companies feeling the pinch and going into business rescue, more existing opportunities are being channelled to our customer base,” he reports.

He says the business is trying to stay vigilant in order to be able to able to pivot and move fast to access opportunities. “This is certainly the advantage a small business has over many larger, bureaucratic giants,” says Le Roux.

Seedat agrees that there are opportunities for small businesses, despite a challenging economic landscape. “There has never been a better time to operate a small business in South Africa. Smaller businesses have the benefit of being more agile and flexible, with the ability to quickly introduce innovations which allow them to compete with much bigger and more established competitors.”

"There has never been a better time to operate a small business in South Africa. Smaller businesses have the benefit of being more agile and flexible, with the ability to quickly introduce innovations which allow them to compete with much bigger and more established competitors.”

10SME Profiles

Founder & Executive DirectorWeAllShareRoots

What led you to starting your business? What made you choose the product?When I arrived in South Africa in 2014, I fell in love with the local creativity and arts and crafts. At the same time, I felt the need to build something useful for the local communities in the townships. This is how I decided to launch my brand of handbags and have them produced in disadvantaged areas. I chose some relatively easy-to-manufacture designs, so that I could work with a large network of previously unemployed seamstresses. And as I was initially targeting the European markets, I went for high quality materials.

Tell us about some of the struggles you have encountered as an entrepreneur and how you overcame them.As a foreigner, I had no connections to find reliable providers, seamstresses or retailers. I made lots of contacts, visits and trials in order to establish a trustful and long-lasting network of high-quality suppliers and partners. Also, as I had decided to work with local communities in the townships, I had to discover a new world to me, understand its rules and ways to proceed, but also make sure that I was moving in a safe environment. Being an entrepreneur is also being confronted with a rollercoaster of emotions and keeping on with faith and motivation. Some days you receive amazing news and make huge progress business-wise, and on other days everything seems to fall apart. It is important to keep a cool head and respond each situation one by one and not become overwhelmed.

How does governance play a role in small business?In such a small organisation like mine, governance is mainly a question of respecting the rules; taking the right decisions through official resolutions, having shareholders meetings (we’re only two shareholders), respecting agendas and audits. I also invested from the very beginning in having the right accounting and reporting tools. I have learned from my previous experiences in bigger groups that transparency, clarity and accuracy are essential for healthy and long-lasting businesses.

What value do you get from your IoDSA membership?As a recent member of IoDSA, I have not yet explored all the benefits, but I do enjoy reading the regular publications. It is always enlightening to read about governance, other entrepreneurial and professional experiences and possible networking events.

What advice would you impart to fellow members on growing or starting a business?To be organised and focused. When you build a company from scratch, you need to be involved in every aspect, from supply to sales, not forgetting admin and accounting and even IT. It can sometimes look as an impossible mountain to climb, but actually step by step you can achieve much more than you could imagine at first.

ELISE SORMANI

Directorship had the opportunity to speak to a few of our SME members who have started unique, pioneering businesses in various sectors, to share some of their insights.

"When you build a company from scratch, you need to be involved in every aspect..."

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What led you to starting your business? A previous client required data analysis skills and indicated that he was sure that I would know just what to do, but I would need to register a company in order for them to pay for my services. My consulting career started as a SAP consultant; therefore it just made sense to offer SAP implementation and support services. We have since diversified into custom applications development, Oracle, IT managed services, server, data recovery, database and back-up support.

Tell us about some of the struggles you have encountered as an entrepreneur and how you overcame them. I did independent contracting for far too long and this prevented the business from growing, as the client became too attached to the individual and didn’t want any other consultant. The downside to this is that it doesn’t offer the owner the flexibility to seek and grow new business. I finally decided to take the plunge and fully commit to developing the business. On one of our very first assignments I priced too low. We weren’t profitable at all, but the experience and references were priceless. I will not do it again, though. I also agreed to do additional work without a purchase order from a client and simply didn’t have the energy to engage in the contract’s management process. Moral of the story: never do any of these two. I have experienced labour-related issues and learned to enlist the appropriate service providers, especially in areas where I am not a specialist. I got too excited about being awarded a contract and didn’t ensure that the amount and hours in the quote matched the purchase order and contract. I ended up doing the additional hours, as stipulated in the contract, as a sign of goodwill and to maintain good relations.

How does governance play a role in small business? Governance is key for a small business, especially if you want to do business with the public sector. All public sector opportunities require you to have a valid tax clearance and the latest CSD report. In order to get a favorable CSD report you need to be tax compliant, i.e. pay your PAYE, VAT and Income Taxes when they are due. Depending on the industry you are in or your area of specialty, there may be additional requirements such as accreditations and certifications. A good accounting and payroll system is an absolute must as these assist with tax reconciliations and financial statements. As you grow, there is also a requirement for audited financial statements. It is hard to maintain internal controls and governance at times, because in a small business, one person is more likely fulfilling many roles.

What value do you get from your IoDSA membership? Access to networking opportunities, updates on relevant governance legislature, notifications of non-executive director positions and access to training.

What advice would you impart to fellow members on growing or starting a business? Have the right mindset. Growing a sustainable business takes time and unless the owner(s) are passionate and clear about why they are operating the business and what they hope to achieve with it, it will not be sustainable and successful. Have clear and measurable targets on an annual and quarterly basis. Master yourself as the owner. This will assist you to honestly identify what you are good at, where you need assistance, as well as what you should start doing more of and what you should start doing less of.

"A good accounting and payroll system is an absolute must."

MARILYNRADEBE

Chief Executive Officer - Soma Solutions

12SME Profiles

MOTŠELISISILINDANE

Founder, SwaaVWhat led you to starting your business? What made you choose the product?The company I was working for at the time could no longer afford to pay us, so I resigned. I started working as a research consultant for a number of international organisations. After leading a big piece of research, I went on holiday to Nigeria, which is where I got the inspiration to do what I do; we are an image consulting company specialising in bespoke garments for men. I had gone to the market with my host where I saw many beautiful fabrics and had a dress made for me which fitted me perfectly. I have unusually long arms so when I buy clothes, they always come short at the arms. I realized that there may be people out there that have the same challenge as me. So, on my return from my holiday I signed up to train as a colour and style image consultant. I started this business because when I put on the dress that was made for me, and with me in mind, I was thrilled and my confidence was elevated. This was a feeling I wanted to share with everyone, perhaps even with the world.

Tell us about some of the struggles you have encountered as an entrepreneur and how you overcame them.There are a number of challenges that I am experiencing at the moment with the current economic climate. Clothes are considered a luxury not a necessity, with people buying less this means less orders which affects finances of the company. In order to try and overcome these challenges I am currently employing social media to advertise in order to get access to a different clientele, that I would have otherwise not considered. I am also introducing new products under the Swaav umbrella. I have also opened another company called Vevuka Investments that produces on a mass scale e.g. Uniforms, PPE and general supply.

How does governance play a role in small business?Before I joined the IoDSA, I knew nothing about governance. Since joining I am learning and seeing a broader perspective around being a business owner. As an entrepreneur doing things all on my own, I never considered that governance is something that needs to be a part of my business. Sure, I have mentors, who are important to my growth which also impacts on the business, however they are not formally part of my company. I have been considering appointing one or two people as my board of directors and the IoDSA is helping me to think more broadly about my growing business. Having a board not only gives the company structure it also helps me to be accountable and reflect seriously on the decisions that I make regarding the growth of the company, which essentially speaks to running a business properly. I think governance is very important to small businesses. Being a small business does not absolve a company

from having a formal structure that creates a platform for accountability and ensuring growth in the business.

What value do you get from your IoDSA membership?I am being exposed to better ways of running my business. One day I would like to develop the business to a large company with board members that will further enhance the impact of our work. I have not been able to do the courses as yet, however the networking sessions and other functions, have helped in broadening my perspective on how I can better run my affairs and improve my skills and confidence. This is what will help me to better grow the business and contribute positively to the economy of the country.

What advice would you impart to fellow members on growing or starting a business?It is very important to know yourself. Over and above that I think it’s important to really love and enjoy the business you are involved in. These are the ingredients one will need to weather the storms.

"It’s important to really love and enjoy the business you are involved in."

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NEERAJ MANNIEDirector - Munch Innovation (Pty) Ltd

What led you to starting your business? What made you choose the product? I am fairly well-experienced in the waste industry and knowing some of the challenges being faced globally with the management of waste, I have been considering playing an active role in supporting stakeholders to create sustainable solutions. Having given up the corporate sector, I embarked on finding my next best business opportunity and was introduced to Georgina de Kock who had developed the edible Munch Bowl. Having reviewed the product and undertaken my own assessment to gauge its potential in the market, I was really excited by the immense potential of the product to be an alternative to the current plastic/polystyrene containers which are a growing waste problem. Not only does it reduce plastic waste, but it is a wholly owned South African innovation with endless possibilities to develop additional green value chain products. The opportunity to grow our manufacturing sector and stimulate jobs in the manufacturing sector was another attraction. The timing to enter the market and scale the business was critical; if we were to be successful, the market had to have a real need for the product. It is a niche product with a limited competitor base, making the business opportunity even more appealing. The ability to embrace design and innovation as a means to develop new products plays a fundamental role to stay ahead of the curve.

Tell us about some of the struggles you have encountered as an entrepreneur and how you overcame them. Being an entrepreneur is not for the feint hearted, it requires persistent resilience, commitment and an incredible amount of passion to get the business off the starting blocks. High barriers to entry in the retail sector make it difficult for entrepreneurs to get their products into the market and too many cumbersome rules and conditions make it almost impossible to operate in that space. There is often not enough belief in or transition to new global trends and thinking in the local South African market around product innovation. Access to funding is a challenge especially due to the various requirements of different investors. The timeline to provide feedback on the funding outcome is fairly lengthy and these challenges can result in the failure of a start-up right at the beginning. Entrepreneurs want to contribute to the economy and create job opportunities but when faced with these roadblocks, how will they ever make a meaningful contribution to the economic landscape? Intimidation and arrogance by big business and investors often rears its head when SME owners try to pitch or secure procurement of their product or service. My approach has been to embrace these challenges and keep forging ahead as I don’t want to be sidetracked or derailed by these struggles. I have remained committed to my cause to build a successful business.

How does governance play a role in small business? It is extremely critical that from the very onset that as a business owner you embrace governance. This for me personally is the golden ticket in running an ethical and transparent business. It forms the platform on which you develop the business culture. The issue of poor governance rears its head regularly in business in South Africa, and as leaders you don’t want to be viewed in a negative light. Good governance provides the framework on which a business should be able to operate and navigate its journey.

What value do you get from your IoDSA membership? The IoDSA provides value in providing access to an entire network of members and fellow leaders to engage with. The knowledge sharing and exchange of wisdom and lessons learnt through networking sessions, the training and certification programmes and the special events held regularly provide me with tools that I can use in business daily and also help me become a better director and leader for others to learn from.

What advice would you impart to fellow members on growing or starting a business?Focus is key if you are going to get it right. Don’t ever take your eye of the ball; that is where you could easily loose commitment. Stay committed even if the journey seems tough and tiring, you didn’t decide to do this just to give up. Just keep persevering. Personally, taking inspiration from other success stories has played a big part in me wanting to take up a business. You might doubt yourself on some days but don’t let it deter you, it is part of the journey and lessons you will learn daily.

"Stay committed even if the journey seems tough and tiring"

14SME Profiles

What led you to starting your business? What made you choose the product?After being in the corporate environment for over 15 years, working for blue chip multinationals there came a time when I decided that I wanted to create my own legacy and build something that I could call my own. Working in the corporate sector, where l go above and beyond the call of duty to deliver exceptional customer service to my customers, I discovered my passion for customer centricity. l felt a burning desire to create something that would stretch me and allow me to continuously improve and create my own rules in delighting and creating memorable experiences for my customers. This is what led to the creation of Alimama Spaces (www.alimamaspaces.com), and the founding vision, which my team and I live by daily. The disruption happening within the traditional property rental, and more importantly the hotel and travel spaces indicated that the time was right to utilise digital platforms like Airbnb and booking.com to provide short-term rentals and leverage existing properties. Three years on, it has turned out to be the best decision l have ever made, with my property portfolio growing exponentially, and more importantly increasing my customer base daily. My team hosts almost 500 people per month across the listings.

Tell us about some of the struggles you have encountered as an entrepreneur and how you overcame them.When starting a business, business owners often assume their knowledge is sufficient, when in reality it can be quite limited. As my business grew, l realised that l needed help and, l had to trust people to execute on my behalf. Getting the right people that I could trust, who shared the same vision and had the right attitude was a major challenge. Strategic challenges include deciding on the pace of business growth and in which areas to invest in properties. Fortunately, due to Alimama Spaces’ business model, it does not have the cash flow challenges that most SMEs experience. The business model is designed in such way that the overheads are as low as possible, and customers pay upfront for all the spaces provided. Struggles for SMEs are real, which is what makes entrepreneurship exciting, challenging, and more importantly, fulfilling. What has helped me in managing these struggles is my attitude and commitment to learning, not only academically, but also from other entrepreneurs and business leaders in the corporate sector where l work. SMEs need to support one another as we have the capacity to drive economic growth and create employment. I had no idea three years ago, in 2017, that l would have 11 full-time staff; in the next three years these numbers could double or even triple. That is the impact that SMEs can have on the economy.

How does governance play a role in small business?As a founder of the business, l am the Chief Governance Officer, CFO, CEO, Chief Ethical Officer, HRO, and many more, not on paper, but based on the business decisions that l make. Even though l am not involved in the day-to-day running of the business, the governance structures that l have put in place assist the team to make sound decisions in the operation of the business. Interestingly, staff members watch their leaders, and they learn from them too, so I must lead by example and provide governance structures within the business for the team to follow. My previous experience working for multinationals has taught and assisted me to be a better leader. No matter how small a business is, the governance thereof is very important.

What value do you get from your IoDSA membership?I have been a member of IoDSA since 2010, due to seniority of the roles that l have held at previous employers, and current role that of Group Executive - Business Solutions at Imperial Logistics SA. This membership has been invaluable for me, due to the strategic role that IoDSA plays in building better directors. This has prompted me to pursue the Certified Director certification, which l will be completing before the end of 2019.

What advice would you impart to fellow members on growing or starting a business?1. Stop the analysis paralysis, get moving, and start. The robots

will never all be green simultaneously.2. Start an enterprise based on something that you are passionate

about; you will never work a day in your life if you do that.3. Accept that there will be challenges, struggles, tears, and

sweat along the way.4. Make it fun for you and your staff. and5. “Stay hungry and stay foolish” (Steve Jobs) by investing in

yourself through education, reading, and associating yourself with people that make you a better person.

"Accept that there will be challenges, struggles, tears, and sweat along the way."

ROBERT MANSONFounder - Alimama Spaces

Group Executive - Business Solutions: Imperial Logistics SA

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The mistake many small and medium-sized businesses make is assuming that the King IV code of corporate governance simply doesn’t apply to them.

Governance in SMEs:Guidelines for small business

Lynette Dicey

Certainly, it’s understandable that the very phrase ‘corporate governance’ implies that the codes only apply to large, bureaucratic businesses,

says Ralph Patmore, a facilitator at the Institute of Directors (IoDSA). However, given that corporate governance is about effective leadership, it applies as much to SMEs as it does to larger organisations.

In fact, says Vikeshni Vandayar,

Executive: Governance and Corporate Services at IoDSA, non-listed and SME businesses should aspire to follow sound governance principles and practices as much as their larger counterparts.

“The IoDSA recommends that SMEs consider applying sound corporate governance to their businesses from the outset as the long-term benefits include greater sustainability and even stakeholder confidence for that time when

the business grows, requires funding and investment, or chooses to list,” says Vandayar.

King IV, which came into effect in 2017, aimed to make the report more user friendly and in the process reduced the 75 practices to just 16 principles in order to make it more accessible to different types of organisations, combating the challenges faced by non-profit and SMEs in terms of interpreting and adapting the codes.

SMEs

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“SMEs should view the recommended practices behind each of the 16 principles as guidelines and only implement those that are appropriate to their businesses,” advises Patmore. “The outcome will be a well-managed business given that the results of better governance practices are an ethical culture, good performance, effective controls and, ultimately, greater legitimacy for the business.”

Critically, he says, the 16 principles included in the King IV Report should not be a tick boxing exercise. “A governance framework should be implemented in a way that is both proportionate and realistic given that corporate governance is not an end in itself but rather a way of adding value, providing continuity and ensuring a business is more sustainable in the long term. It’s about applying governance principles in a pragmatic and flexible manner taking the individual circumstances of each business into consideration. Essentially, each business needs to decide for itself which corporate governance measures/practices are most appropriate given the evolutionary stage in which it finds itself.”

Many SMEs, however, find it difficult to implement appropriate governance structures in their business. The most typical challenges include the following:

1. An independent boardBest practice recommends that boards should consist of a majority of non-executive directors to ensure a balance of power and a degree of independence and objectivity, and that key role players of shareholder, board of directors and management are distinguished. Most SMEs, however, tend to have overlapping roles: shareholders are both directors and executive management, which jeopardises the ability to be objective.

The challenge for these owner-managed SMEs, is to distinguish between key role-players required of a good governance structure and the ability to afford an independent non-executive director. “We recommend substance over form,” says Vandayar. “SMEs who have the ability

and the funds to appoint non-executive directors should do so, and ensure that they have appropriate agreements in place with any non-executive directors appointed. Owner-managed SMEs that are not in a position to appoint a non-executive director because of the cost implications should consider getting objective external independent advice from professionals not involved in the day to day management of the business when it comes to making substantive business decisions.”

2. Ethical leadership and corporate citizenshipA sound corporate governance framework is based on an ethical foundation characterised by integrity, competence, responsibility, accountability, fairness and transparency and this too applies as much to a SME as it does to a large corporate entity. As a business grows, so too does its risks, and financial institutions are unlikely to consider funding unless the organisation has a sound governance framework structure in place.

“As soon as a sole trader starts growing the business and employing more people, the business should introduce policies and procedures relating to conduct. Industry codes of good conduct can be a good starting point when developing your specific business’s code of conduct,” suggests Vandayar.

3. Strategy developmentThe majority of owner-managed SMEs battle to develop an appropriate and viable strategic vision and plan for their businesses and, ironically, this is one of the primary reasons for business failure. Every business, irrespective of its size, should have a business plan in place which aligns to the strategic vision and objectives of the organisation. This plan should be reviewed regularly and updated as the business grows.

4. Oversight structuresThe King IV Report recommends the establishment of board support

structures such as an audit committee, a company secretary, and risk, nomination, remuneration and social and ethics committees. The aim of these support structures is to reduce the workload of the board and in the case of a company secretary, to provide guidance to directors on their duties and responsibilities.

The reality, however, is that many small owner-managed SMEs are unable to form separate committees due to the number of directors on the board. If there are no board committees in place, then the board should ensure it provides sufficient time during its meetings to address all areas of oversight. And in the absence of a company secretary, the board should invite experts in various fields to help it remain up to date with governance issues.

Ultimately, SMEs with a strong corporate governance structure are not only more likely to be operational and sustainable beyond that first critical year of operation, but are also more likely to attract investment to fund their future growth.

“Given that corporate governance is about effective leadership, it applies as much to SMEs as it does to larger organisations.”

How SMEs can comply with good governance1. Appoint an independent, non-

executive director to provide an objective opinion, or obtain independent professional advice for substantive business decisions.

2. Introduce policies and procedures relating to how the organisation should be governed by management or staff as well as codes of conduct and ethics (which are important to set the values and culture that is wanted in the organisation as early as possible).

3. Have a business plan in place which aligns to the strategic vision and objectives of the organisation. This plan should be regularly reviewed and updated as the business grows.

4. Ensure sufficient attention is paid to oversight and risk, irrespective of the size of the business.

SMEs

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Making room for

While it ’s certainly not a new issue, the case for younger people in leadership positions is becoming increasingly important – particularly as more and more successful businesses develop diverse teams of leaders and board members to represent all stakeholders. As such, age has become as important as gender and race when it comes to diversity, not only in the workplace but also at a leadership level.

By Samantha du Chenne

millennials

Board diversity

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"Millennials often have a deeper understanding of what is and isn’t relevant than their older counterparts – valuable insights which foster the ideas that will enhance the sustainability of business in a climate that is changing at an alarming rate."

The real value of age diversity Millennials are the missing perspective in the boardroom, says William K. Bacic, Managing Partner at Deloitte LLP. He maintains that millennials must be part of the consideration set when looking at the makeup of boards and corporate governance.

Generational diversity, he argues, is just as important as race and gender when it comes to board composition and leaving this group out at the boardroom table is a mistake for business, posing risks for the organisation, regardless of the industry in which they operate. It’s therefore crucial for boards to seek the perspectives of younger directors to get their views – after all, this is the generation that is redefining the business world, he says.

While race and gender parity have been an imperative in terms of board composition for some time, the focus is also turning to age, for a variety of reasons, says Parmi Natesan, CEO of the IoDSA.

One of the major reasons companies on a worldwide scale are looking to attract millennials to their workplaces, and groom them for positions in leadership, is their ability to see things differently. In a challenging and competitive global economy, innovation is a key to differentiation.

“New business models have revolutionised the business landscape – Airbnb and Uber being the most obvious examples,” she says. “These companies are almost always conceptualised by young, dynamic entrepreneurs who are willing to challenge the status quo and are not held back by traditional ways of thinking,” she says.

In the modern business climate, relevance is key. Quite simply, companies that can’t prove their relevance in the lives of their customers don’t survive. Millennials often have a deeper understanding of what is and isn’t relevant than their older counterparts –

valuable insights which foster the ideas that will enhance the sustainability of business in a climate that is changing at an alarming rate.

“Adaptability is a vital lesson we can learn from the millennial generation,” says Joanne Bushell, MD of global workspace provider, IWG. “It’s essential to learn to adapt and survive as a modern business, understanding that very soon, these young employees will be the ones making the decisions.”

She argues that this generation is perhaps more successful than their age and experience levels should allow for. “There is so much opportunity for learning on both sides – millennials and baby boomers. Ultimately, if we do not learn and adapt, we may just wake up too late and find we are no longer relevant,” Bushell warns.

Bacic adds that a millennial perspective at board level is instrumental in helping the organisation to understand the world through the lens of the millennial, which in turn helps them to effectively target the right markets and create emotional connections with consumers.

From an HR perspective, he argues that younger board members can assist organisations to understand what attracts millennials to work in certain companies and what job satisfaction means to them; ultimately helping a company to strengthen its talent pipeline and succession plan.

“Stakeholder engagement is a critical component of governance, and as such boards’ composition should be representative,” adds Natesan. “Boards should look at their composition in terms of how this aligns to the diversity and demographics of the stakeholders it serves; as this ultimately plays a role in the effectiveness of the board,” she says.

She adds that while King IV does not make a direct link between the composition of a board and how this impacts its ability to connect and engage

with its stakeholders, it is strongly implied. “If stakeholders are so vital to an organisation’s ability to survive, then boards should be composed and equipped to engage with all material stakeholders and understand their needs,” she says.

Now is the time Too many directors and board members see the inclusion of a younger generation as a challenge that has yet to come. It’s a view that can ultimately harm the performance of a board – the challenge of attracting younger board members should be seen as an immediate priority.

One of the most pressing reasons for this is millennials’ natural grasp of technology. In the digital age, technology has become a great enabler, and as digital natives born with an inherent acceptance of the power of technology, millennials have the ability to harness and embrace the innovation that technology can bring to the business world. As such, they are a valuable asset when it comes to driving the digital transformation of an organisation.

The world is getting youngerSA is young country – an additional reason why it’s so important to attract young leaders and board members into business. “According to the most recent census, over half of SA is under 35 years old,” says Natesan. “As a result, the business world is getting younger in SA and boards will better serve their stakeholders and create effective strategies if they are made up – to some degree – of members who understand and are part of this new and changing world.”

In a world that is getting younger, statistics from a survey conducted reports that in SA, only 9% of directors are under the age of 35, with 18% between 35 and 44. Moreover the average age of chairpersons and non-executive directors at 325 JSE listed companies has stayed constant at over 55 for two years, this according to a

Board diversity

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How the IoDSA is positioning and preparing millennials for the boardroomSherma Malan CFP®, Executive: Certification and Member Services at IoDSA

While boardrooms in South Africa may not reflect true generational diversity yet, the IoDSA decided to expand its member base a few years ago to include younger, less experienced individuals. The minimum criteria for full membership with the IoDSA is to be employed as a senior manager or higher, which excludes the younger millennial generation to a large degree. With this in mind, the IoDSA launched its Future Leader member category to provide a space for these individuals and to provide them with opportunities to groom their skills for when a future directorship opportunity may arise. The member benefits associated with this category are developed specifically to support these members in their current and future career goals, equipping them with the tools required to continue their journey towards directorship. One such a benefit is a heavily subsidised Toastmasters Speechcraft programme. This tailor-made programme consists of a five-session experiential workshop in which participants are exposed to preparing speeches and to receiving and providing valuable and constructive feedback – all critical skills for directors. The impact that this programme has on the participants is profound, based on feedback from the attendees:

“It increased my confidence a lot because it gave me opportunities to be proud of my accomplishments and I knew I could be listened to.” Boitumelo Seshabela

“Other than the content of the course and the challenges of every week, I loved the personal stories that came out of it. It made me realize that every person has something to say, to contribute positively to the world around us.” Hettie Fowlds

Another initiative that the IoDSA offers for aspiring directors is the Certified Director® designation. This designation is aimed at people that have little or no directorship experience, and signals to the marketplace that individuals who attained the designation have the knowledge to serve as a director. To earn the designation, the individual is put through a series of training programmes that are designed to equip the candidate with the necessary governance knowledge to take up directorship positions with confidence. Assessment for this designation takes the format of Multiple Choice Questions for each of the training programmes as well as a summative examination at the end of the series of training programmes. In order to apply for this designation, the candidate must be, at a minimum, a full member of the IoDSA.

For more information on the Future leader category, contact membership@iodsa.co.za and for Certified Director get in touch at certification@iodsa.co.za.

poll done by PwC. These statistics show that South African organisations have a way to go when it comes to including younger people on their boards and in positions of leadership.

The role of mentorshipIt can be argued that to foster the development of young leaders, the older generation must be prepared to invest in the younger. A survey undertaken by the Harvard Business Review revealed that the majority of the world’s top business leaders were guided by a more experienced mentor throughout their careers.

Reinforcing the case for mentorship, a recent report produced by PwC advises boards to appoint millennial directors. One of the most significant reasons for this, says the report, is that millennials are at the heart of current trends and risks, which help to make – and keep – business relevant. That said, PwC acknowledges that there is some resistance to the idea.

Lack of experience is one of the factors driving this resistance, and while older board members acknowledge the value of millennials in terms of their digital know-how, many suggest that they should serve on mirror boards to gain the relevant experience, suggests the PwC report.

According to PwC’s recommendations, the experience gap can be bridged by mentorship between younger millennial generation directors and their older counterparts, including training that would help young directors to understand their roles and responsibilities.

Ultimately, organisations and their boards can only benefit through the attraction and development of younger leaders and board members, to build a diverse network of individuals who have the collective experience to represent all material stakeholders.

What organisations can learn from millennial directors • Better attraction and retention

processes• Flexible workday structuring • More effective performance review

systems • Career planning and advancement • Development• Remuneration, recognition and

reward • Technology advancements

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Directors’ Sentiment Index™- the Fourth Edition

Directors Sentiment

The IoDSA recently published the fourth iteration of the South African Directors’ Sentiment Index™. The survey is undertaken annually by the Institute in order to better understand the sentiment of directors around the state of business, economic, governance and directorship conditions in South Africa as well the challenges they are facing.

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A ccording to Vikeshni Vandayar, Executive: Governance and Corporate Services at the IoDSA,

the overall sentiment around economic and business conditions in South Africa remains more negative than positive, with a noticeable increase in negative sentiment from last year. Whereas the overall sentiment around governance and directorship conditions remain more positive than negative, albeit a small decrease in positive sentiment this year.

“Feedback is measured through an online questionnaire using both quantitative and qualitative data (to a limited extent). The survey is distributed to both IoDSA and non-IoDSA members. This year the survey included questions to assess overall awareness of the report, its

usefulness and allowed respondents to provide feedback”, Vandayar explains.

“We were delighted to learn that the report is found to be very useful (mean score of 3.6 out of 5) by respondents, however there is some work to be done to increase awareness of the report to non-IoDSA members. The qualitative feedback received in this year’s survey has been included in the report and the feedback will be considered by the IoDSA in future editions”, Vandayar adds.

Julie Dixon, Manager: Forums and Research at the IoDSA feels “the study provides valuable indicators of the challenges that are most affecting directors in the execution of their duties. Furthermore, as raised by some of respondents, it allows them to compare

their sentiment or concerns on various economic, business, governance and directorship factors to that of their peer.”

The findings of the 2019 report reflect the views of a total of 475 South African directors comprising of 333 (70%) IoDSA members and 142 (30%) non-IoDSA members. The demographic of the overall sample has not changed substantially from previous years, albeit there were more male respondents over 55 years of age in this year’s sample.

When comparing feedback from IoDSA members with non-IoDSA members, some interesting insights can be gleaned.

“Around Economic and Business conditions they share similar sentiment, however, when it comes to Governance and Directorship the trend continues with IoDSA members being a lot more positive and seeing the benefit of good corporate governance versus non-IoDSA members. Non-IoDSA members feel the lack of understanding of King IV is more of a

"the overall sentiment around

governance and directorship

conditions remain more positive ”

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• The Public Sector found Corruption and the lack of strategic leadership at executive level as major factors impacting business.

• The Non-Profit sector rated Compliance with an over-regulated environment as its top business impediment.

• Younger respondents (aged 25-34) differed significantly from the other age groups, citing Difficulty in obtaining funding or credit as their main business challenge.

• Unethical behaviour, which has always been a challenge for Public

sector, has for the first time ranked as the top governance challenge for the SMME sector.

• Both Non-Profit and Public Sectors noted the Inability to attract and retain skilled employees is an impediment to their business.

• The Private Sector viewed BBBEE and Competitiveness in the markets as more of challenge than social and political unrest.

• South African directors feel most positive that boards have the ability and influence to set the tone of ethical conduct through their ethical leadership.

Directors Sentiment

Top 5 factors influencing a director’s willingness to serve on a board

Directors’ Sentiment Index™ Key observations

challenge in their industry compared to the lack of sustainable thinking. In addition, they saw governance as being too time consuming and cumbersome as more of a challenge than the lack of understanding the overall benefits”, reports Vandayar.

According to Julie Dixon, from the 2019 results, directors are most concerned with the following under each of the areas assessed:• Economic – Skilled labour and labour

demands in South Africa. Economic uncertainty is the top economic challenge impacting both business and industry in which directors operate.

• Business – Efficiency and sufficiency of infrastructure in South Africa and the level of red of tape and its impact on business. Poor economic conditions and poor consumer confidence is the top business challenge impacting both business and industry in which directors operate.

• Governance – Overall board composition diversity and balance. Lack of sustainable thinking is the top governance challenge impacting their business and ethical behavior is the top governance challenge impacting the industry in which directors operate.

• Directorship – Fair remuneration for directors and suitability of skills,

experience and independence of individuals serving on boards. Ethical behavior is the top factor influencing a director’s willingness to serve on a board or not.

Factors influencing the willingness to serve on a boardWhen asked about director sentiment around serving on a board Vandayar further explains, “South African directors continue to strongly believe that continuous professional development has a positive impact on board performance, and they are most concerned currently around the suitability of skills, experience and independence of individuals serving on boards. 71% of respondents stated that ethical behavior was the number one factor that would influence their willingness to serve on a board. This together with company reputation and competence of existing/fellow board members continue to be in the top three factors that influence South African directors’ decisions to serve on a particular board.”

Interestingly, non-IoDSA members place more emphasis on their own experience and competence than the company’s reputation and competence of fellow

board members, versus IoDSA members who perceive the competence of fellow members and independence to be more influencing factors.

Are South African directors embracing governance?According to Vandayar, since the inception of the Index, South African directors have felt more positive than negative around governance conditions in South Africa. South African directors continue to feel that the application of good governance practices add value to businesses.

“This year we saw South African directors feeling more positive towards the board adequately setting the tone of ethical conduct through their ethical leadership. The latest results and trends seem to indicate that South African directors are positive that governance practices can improve and that board members do have a large influence and ability to set the tone,” adds Vandayar.

We will continue to monitor director sentiment raised through this report with an aim to improving and ensuring that we are providing the assistance directors need in the governance and directorship space.

S O U T H A F R I C A

24Sponsored

Businesses have increasingly come to recognise the value for their own organisationFlexible working is close to celebrating its 30th birthday. Advances in technology and societal trends mean it has been a possibility for workers for decades. Yet, while this is not new, the last 10 years have seen working flexibly become widely accepted, and even demanded in South Africa and worldwide. From top-down policy changes, to the war for talent, employers have been motivated to offer more flexible working opportunities to their employees. And yet, this has not been a one-way journey.

People power driving changeUndoubtedly one of the biggest drivers in flexible working and flexible workspaces has been technology. The internet, mobile phones and portable laptops began the trend for remote working as early as the 90s. In the last 10 years, however, improving internet speeds and better-quality video conferencing facilities mean offsite employees can communicate with colleagues face to face while miles apart.

With 5G on the horizon, the rollout of fibre in places in South Africa, plus futuristic tech like robotics and augmented reality entering the common workplace, soon it really will be like your colleagues on the other side of the world are in the room with you.

It’s not just new technologies that have helped the rise of flexible working. Employees are increasingly demanding the option from their bosses. While the gap between men and women in the workforce has narrowed considerably, caring responsibilities still largely sit with women. Based on data from 83 countries analysed by the UN, women do more than double the unpaid household chores (and care work) than men do – today still.

Men will on average do 16 hours of unpaid work a week, including childcare, laundry and cleaning. This compares with 26 hours of unpaid work a week performed by women1. However, society at large is calling for ways to close the gender employment gap even further. Flexible working is one possible solution, allowing those with caring responsibilities to

better balance work and home life. Smart businesses are introducing policies to help this section of society by opening-up the possibility of flexible working.

Workers have been further supported in the call for flexibility by a global competition for talent. As the world continues to move towards a skills-based economy, businesses are in competition to attract and retain the best people for the job.

Why we increasingly want to work flexiblyOf course, there are trends that are influencing the drive for people to want to work flexibly too. For one, there is a growing push for people to seek out better work-life balance. As the impacts of stress and burnout on our mental health become better understood people are looking for employment that matches their desire for professional and personal balance and wellness. With commuting often called out to be one of the most stressful parts of people’s day, many are looking for opportunities to work from home, or an office in a more convenient location.

Another trend influencing the desire

How flexible working has changed in the last 10 years

25

1 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/articles/womenshouldertheresponsibilityofunpaidwork/2016-11-102 https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Organization/Our%20Insights/Delivering%20through%20diversity/Delivering-through-diversity_full-report.ashx3 https://www.oxfordeconomics.com/my-oxford/projects/264283

to work away from the main office in city centres is the increasing cost of living. Rent in a city can be considerably more than suburban living. Add on travel costs and you can see why many are choosing to work in locations outside of metropolitan centres.

Business benefitsThe last 10 years has empowered more employees to push for flexible working practices, but this alone isn’t behind the huge growth we have seen. A real driver of change has been the awakening by businesses in seeing the commercial benefit of flexible workspaces.

A survey by global flexible workspace provider, IWG plc, found that employers increasingly recognise the benefits to their business from offering flexible working strategies to their employees. Nine in 10 (89 percent) believe it helps their business grow, 87 percent see it as increasing their competitiveness and 82 percent say it improves productivity.

It’s not just the hard rands and cents that businesses are responding to, though. It pays to be good. Flexible working attracts diverse workforces, which has been shown to have commercial benefits. Companies in the top-quartile for gender diversity on executive teams are 21 percent more likely to outperform on profitability and 27 percent more likely to have superior value creation 2.

Likewise, attracting and retaining the best talent is directly aligned to a business’ success. Figures from an Oxford Economics report has shown that it can cost up to £30,000 to replace an individual employee3 . Yet, 80 percent of business leaders say that flexible working helps them retain top talent and two in three (64 percent) are now offering flexible working to aid recruitment strategies.

Flexible working todayIWG’s Global Workspace Survey found that today 70 percent of employees are working at least one day a week somewhere other than the office. More than half (53 percent) of employees work remotely for half of the week or more, whilst one in 10 (11 percent) work outside of their company’s main office location five times a week.

This isn’t something that is the preserve of small or start up businesses either. The world’s most successful companies including Etihad Airways, Diesel, GSK, Mastercard, Microsoft, Oracle and Uber are already adopting a flexible workspace approach.

While flexible working as a concept is much older than 10 years, what the last decade has demonstrated is an increasing acceptance of this way of working. Society has evolved since 2009 and employees feel more empowered to demand working practices that suit them.

Yet, this is not an example of people power changing business. Instead, forward thinking organisations recognise the commercial benefits of flexible working. Those same organisations are also alert to the benefits of being a supportive employer providing appropriate work-life balance.

What the last 10 years has really proven

is that flexible working and workspaces are not a flash in the pan. If anything, we expect this to become the normal course of business.

View our flexible work solutions www.iwgplc.com/OurCompanies/Regus

About IWG IWG is the global operator of leading workspace providers. Our companies help more than 2.5 million people and their businesses to work more productively. We do so by providing a choice of professional, inspiring and collaborative workspaces, communities and services.

Digitalisation and new technologies are transforming the world of work. People want the personal productivity benefits of living and working how and where they want. Businesses want the financial and strategic benefits. Our customers are start-ups, small and medium-sized enterprises, and large multinationals. With unique business goals, people and aspirations. They want workspaces and communities to match their needs. They want choice.

Through our companies we provide that choice, and serve the whole world of work: Regus, Spaces, No18, Basepoint, Open Office and Signature. We create personal, financial and strategic value for businesses of every size. From some of the most exciting companies and well-known organisations on the planet, to individuals and the next generation of industry leaders. All of them harness the power of flexible working to increase their productivity, efficiency, agility and market proximity.

We’re reaching a tipping point. The workspace revolution is coming.

For more information please visit: www.iwgplc.com/

www.facebook.com/RegusGlobal www.linkedin.com/company/iwg-plc

Contact details:Press Office Email: go@gocontentlab.co.zaTel: 082 574 2308

26

Successful unsustainable business models

Column

It may seem like an oxymoron that a business model that is short-lived can be successful. Most people in the innovation space aim for business models that are sustainable, scalable and

side-step disruptive threats. I want to show you another way: how you can embrace the ephemeral to get what your business really needs. What if a business model is designed to serve one single objective of huge strategic importance?

Here are three real-world examples of how temporary business models can enable global success.

When Airbnb started up, back in the day when it was crazy to stay in the house of a foreigner you met online, Airbnb needed money. The company could not afford to demonstrate their experiment until the market believed in it. They needed money to generate revenue, but no one would fund them unless they showed they were making money.

After first racking up serious credit card debt, Airbnb's founders set up a temporary business. They used their online marketing skills to sell cereal. Yes, they repackaged and rebranded cereal. The idea was originally for a promotion: they would send complimentary boxes of cereal to Airbnb hosts to offer guests. This idea morphed into a $40,000 business. They charged $40 per box of limited-edition cereal (for the 2008 US election) and sold 1000 boxes. It was totally unsustainable and exactly what they needed to keep going.

Besides financial objectives, temporary business models can also be used to achieve learning objectives. Consider, for example, Tesla Motors' first business model. The company used the intellectual property of Lotus Cars and AC Propulsion to create its

first car, the Tesla Roadster. Thanks to these partners, Tesla could get major parts for their first car and defer some development costs, like safety testing costs. At the same time the pre-orders for the car created the cash flow for the company to develop key capabilities, like manufacturing capabilities.

This business model was completely unscalable, but it facilitated learning. Tesla's temporary structure enabled them to overcome the learning curve of making electric cars.

The last example of a temporary business model is Nike's We Run campaign. From one perspective it looks like global races sponsored by a shoe company. From another perspective, We Run is an unscalable and unsustainable business that serves the sole objective of engaging customers.

In 2012, Nike arranged a We Run event in Johannesburg. The entire experience was designed by Nike: the race entry fee included a cool Nike shirt for runners to wear in the hot sun; the company arranged a route through Sandton and Alexandra, with the aim to inspire more people to run in public spaces.

It was not to sustainable for Nike to give a free shirt with every race ticket. Yet, the company did achieve the objective of engaging existing and prospective customers. Seven years later I still see people running in public with those Nike shirts from 2012 and I bet that short-lived venture is still benefiting sales today.

These examples show unsustainable and unscalable business models can indeed serve strategic objectives. Perhaps the reason is simply that some strategic objectives are temporary and therefore the business models that achieve them effectively can also be temporary.

“...Unsustainable and unscalable business models can indeed serve strategic objectives."

Robert Louw, Director of Innovation at Prefrontal Constructs

27

Without proper leadership, it would be impossible for an organisation to build and nurture its reputation. When measuring organisations’

reputations, leadership and corporate governance play a fundamental part in how the organisation is being perceived. Strong leadership with a powerhouse team by their side, are two of the most important contributors impacting an organisation’s reputation.

Reputation Matters has a unique tool, the Repudometer® which not only quantifies companies’ stakeholder health but also provides an overall reputation score for organisations.. Managing Director, Regine le Roux mentions that leaders could increase their own reputation score by implementing the following five tips:

1. Values matter: Values refer to a set of non-negotiable standards that everyone in the organisation needs to abide by. It needs to form part of the organisation’s strategic intent. It is particularly important that the leader sets the example. The values that you share in the business world need to resonate with the values in your private capacity. It is important that everyone within the organisation shares the same set of values. Values help to attract like-minded people to work for the organisation as well as companies you want to do business with. For example, when our company has a difficult situation to deal with, we use our values to guide us. The outcomes from these discussions may often lead us to walk away from a certain project or business lead; however, we prioritise our values above profit to make sure that we lead by example and choose organisations that resonate with us.

2. Listening matters: There is a lot of literature on the topic of listening. It is true that

instead of really listening, people are often thinking about how to respond to what the other person is saying. We’ve picked up during focus group sessions that many employees yearn for a listening ear. We get a wealth of information from the focus group sessions that we host because we listen attentively. Our clients who do take their reputations seriously and want to take it to the next level are not scared to share their Repudometer® results with all their stakeholders. Sharing these results illustrate the fact that the organisation not only heard its stakeholders, but they are truly listening. By doing so they take accountability to act on recommendations and also show that they really value the inputs received by all the participants.

3. Recognition matters: Leadership is a team sport. To build respect as a leader, you need to appreciate and respect your team. It is important to give credit where credit is due. When the team does well, everyone does well.

4. Fun matters: It’s important not to lose your sense of humour; having fun as a team is vital. Try and connect with your team by doing something outside of work every month or so. It does wonders for team morale and productivity, mentions le Roux.

5. Creating more leaders matter: Leaders need to cultivate more leaders and at the same time continuously improve and develop themselves. Leaders should provide teams with opportunities to grow and develop while also stretching them to their full potential.

“By growing your team and cultivating the necessary skills that you as a leader need, will have a direct impact on your organisation’s reputation. Leaders need to take a stand and be the voice of not only their workforce but also their community by addressing pressing social issues,” concludes le Roux.

CEO’s, are you leading

by example?

Column

“The function of leadership is to produce more leaders, not more followers,” ~ Ralph Nadar"

Regine le Roux, Managing Director, Reputation Matters

28Reputation Survey

IoDSA Reputation SurveyThis is the fifth consecutive year that the IoDSA has engaged with Reputation Matters to conduct its annual reputation survey, taking stock of stakeholders’ views and feedback. Measuring the IoDSA’s reputation helps to gauge the overall health of our reputation and stakeholder relationships, in order to remain the premier organisation for top-level management in Southern Africa with international credibility.

The Repudometer®, Reputation Matters’ reputation measurement tool, was used to obtain the results. Five core dimensions were measured, namely Corporate Management; Corporate Capital; Corporate Positioning; Corporate Performance and Corporate Dialogue. The

same model is used each year in order to draw comparisons and conclusions pertaining to stakeholders’ perceptions, preferences and needs.

The stakeholder groups who formed part of this year’s study were employees, members, non-members and past members. We received an excellent response rate from members, garnering a 4,7% margin of error and yielding statistically representative results. The employees as well as the non-members had good response rates and we can regard their feedback as being statistically representative. As with previous Repudometer studies, the past members’ surveys yielded low response rates, and even after extending the survey, the responses gathered were not statistically representative. However, the feedback from past members highlighted trends and insights which will be used to guide the strategy and business plan going forward.

The IoDSA’s reputation score for 2019 is 82% which is considered an excellent reputation score. The element that scored the highest was Business Results at 88%, which means that stakeholders believe that the organisation is honest and open about financial matters and there is continuous growth at the IoDSA. As with the 2018 findings, all of the Repudometer elements scored well, with only two elements dipping under the 80% bracket. Consistent with the 2018 findings, the lowest scoring element was External Dialogue (71%) which measures external communication to all stakeholders, including members. The element that dropped the most since 2018 is CSI (5% drop since 2018), and refers specifically to the IoDSA having a valuable impact on society.

The IoDSA’s results were also compared to other membership-based organisations that Reputation Matters conducted studies with, and we are proud to have scored 3% more than the average of all previous studies for membership organisations.

This year’s overall reputation score for the IoDSA dropped by 2% to 82% since 2018. Although this score is still considered as a healthy, excellent reputation score, it is a reminder to focus on the lower scoring elements in order to develop our respective strategies to take all of our stakeholders’ perceptions to the next level.

The main dimensions impacting the IoDSA’s reputation positively are: Corporate Management (85%), namely Strategic Intent and Operational Governance; and Corporate Performance (84%), namely Business Results and Value Offering. This is consistent with the 2018 findings.

Corporate Management (85%)Corporate Managemnet was the highest scoring dimension and focusses on how the IoDSA is run and managed. It comprises two elements namely Strategic Intent and Operational Governance. Both Strategic Intent (87%) and Operational Governance (82%) scored well, maintaining the same results as in 2018. The IoDSA’s reputation is positively impacted by these elements. The Strategic Intent element measured whether the IoDSA is aligned to its core function of building better directors, better boards and better business. Operational Governance measured leadership, management and policies within the organisation.

Corporate Performance (84%)Consistent with the 2018 findings, Corporate Performance was the second highest scoring dimension in 2019. Business Results and Value Offering are the two elements that constitute Corporate Performance. The Business Results element scored 88% again, reflecting a consistently excellent result across all four years. Stakeholders perceive that the IoDSA is open and honest and consistent growth is taking place each year. The Value Offering decreased slightly (2%) since 2018 but still has very healthy score, indicating that stakeholders feel that the IoDSA’s membership is good value for money. Although Business Results was the highest scoring individual element, 30% of members indicated that they don’t know if the financial reporting is clear and ethical, but they would like to know. We encourage our members to give suggestions on how we can keep you more informed about financial reporting.

Corporate Capital (83%)When looking at the IoDSA’s people and the tools they use, we consider two elements within the Corporate Capital dimension, namely Human Capital (85%) and Operational Capability (81%). Both elements scored well, however, the results reflect marginal declines from the previous years. IoDSA employees are perceived to be well informed about the industry and work they do and they understand their roles. From an operational viewpoint, the results indicate that the IoDSA is known for its innovativeness, well informed about the new developments in the industry and aims to deliver efficient and effective services.

Corporate Dialogue (79%)When investigating the Corporate Dialogue dimension, both Internal Dialogue and External Dialogue elements were considered. The External Dialogue element scored the lowest at 71% indicating that more should be done to communicate externally with

29

members and the public about the IoDSA, its membership benefits, mandate and position on pertinent issues. The biggest need pertaining to External Dialogue is that the IoDSA should speak up about unethical boards and be the voice of the industry. On the other hand, Internal Dialogue scored a very healthy score of 87%, indicating that employee morale, team cohesion, and effective internal communication platforms are in place and work well.

In addition to the reputation elements, we also surveyed specific member-related topics. The three most popular benefits that members voted for were: Networking Opportunities; Director Development; and Updates on Acts and Regulations. These were consistently voted the most popular benefits across all the stakeholder groups. Online training was the highest scoring additional benefit as voted for by all the stakeholders. The IoDSA was described as ‘Professional’, ‘Excellent’, ‘Reputable’ and ‘Sustainable’ with more than 70% of past members and non-members indicating that they would consider re-joining/ joining the IoDSA.

Corporate Positioning (78%)Partnerships and social community projects are investigated in the Corporate Positioning dimension under two elements, namely Strategic Alliances and Corporate Social Investment (CSI). Strategic Alliances scored 80% and refers to the partnerships that help the IoDSA reach our vision and goal. CSI scored 76%, with a 5% decline since 2018. Although these results show that stakeholders are satisfied and approve of the CSI projects that the IoDSA is involved with, they would like to know more about the sustainable impact that the CSI initiatives have on society. Strategic Alliances scored a healthy 80%, however the stakeholders indicated that they were unsure whether or not these partnerships help the IoDSA reach their goal. These insights are very valuable and will form part of the new communication strategy and plan of 2020.

Compared to the average score of all previous Repudometer®

studies conducted (76%), the IoDSA has again achieved well above average with the 2019 score exceeding the average score with 6%. The IoDSA has consistently scored a good and healthy reputation amongst all of its stakeholders. The IoDSA’s core focus and unique selling proposition of training, networking and creating better directors, were highlighted amongst all of the stakeholders when they indicated that it is the main thing that the IoDSA is doing well. The results are very similar to the 2018 findings, and the leadership team will focus on the elements that have dipped since 2018 in order to improve the overall reputation score for 2020. The IoDSA leadership team appreciates everyone’s time and valuable feedback and will take the research recommendations forward to continue working towards our vision of building better directors, better boards, and better business. Watch this space for new developments in 2020!

ALL

2015 2016 2017 2018 2019

Strategic Intent 91% 89% 88% 88% 87%

Operational Governance 84% 87% 86% 86% 82%

Human Capital 84% 86% 88% 86% 85%

Operational Capability 87% 84% 85% 84% 81%

Strategic Alliances 77% 83% 81% 82% 80%

CSI 74% 80% 80% 81% 76%

Business Results 90% 93% 90% 90% 88%

Value Offering 75% 86% 81% 82% 80%

Internal Dialogue 82% 88% 91% 88% 87%

External Dialogue 83% 72% 77% 72% 71%

TOTAL 83% 85% 85% 84% 82%

30Opinion

T he role of company secretaries or board secretaries in both public and private sector companies has received less attention,

notwithstanding the fact that the role of the company secretary if performed as contemplated in the Companies Act and the general body of corporate governance is a significant one.

It appears that in most cases company secretaries are reduced to minute takers and record keepers of the board. This is an important role of a company secretary in terms of the law, however it is a secondary role when compared to the principal role of a company secretary which in terms of section 88 of the Companies Act includes providing directors of the company with guidance as to their duties, responsibilities and powers. Most importantly, the role of the company secretary in terms of section 88(2)(b) is making directors of the company aware of any relevant law that affects the company and their responsibilities.

The nomenclature of secretary for this

role seems to worsen the position. Many an inexperienced director on hearing that the designation of what is essentially a legal advisor of the directors often adopts the attitude that the company secretary is a junior employee of the company for whom no high regard or attention should be given. This is indeed a grave error as the Companies Act and the law in general expects the so-called company secretary to act as the most senior legal counsel in the company and is expected to give legal advice and corporate governance guidance to the apex of the leadership of the company; the directors.

Before the advent of the 2008 Companies Act, the audit committee of a company was treated in the same manner as any committee of the board which only executed its responsibilities at the behest of the board of directors and without inherent decision-makingpowers. In line with international practice, the 2008 Companies Act enhanced the role and standing of the audit committee by creating it as a statutory committee

In the face of widespread malfeasance, barefaced disregard of the law governing both private and state-owned companies, the debate on the role and liabilities of directors has dominated public discourse in the recent past.

Matodzi Ratshimbilani, Director, TGR Attorneys

The Role of the Company Secretary is Underrated

"Most importantly, the role of the company secretary in terms

of section 88(2)(b) is making directors of the company aware of any relevant law

that affects the company and their

responsibilities."

which is answerable to the shareholders and not the directors for whom it is intended to serve as a watch-dog. There is a lesson to be learnt from the way the 2008 Companies Act treats audit committees, which can be applied to the role of company secretaries. Given the importance of the role that company secretaries are expected to play in relation to the conduct of directors it seems that the structural repositioning of company secretaries is long overdue. The position of company secretary should be placed independently from the board in the same manner as the audit committee to ensure that it assumes the powers and the independence concomitant with its legal responsibilities.

This reclassification of the role of a company secretary can be done in a similar manner as the auditing profession has done with respect to the role of internal auditors and the elevation of chief audit executives in many companies. This will go a long way strengthen governance in the public and private sectors.

31Opinion

Corporate governance and King IV must be woven into the fabric of organisationsJudy Gounden, IoDSA member

“C orporate governance is essentially about effective leadership”, according to the 2009 King 111 report. This holds true in many aspects when one considers that the leadership of the organisation is ultimately

responsible for the manner in which it behaves towards and for the people, communities and surroundings that it represents.

The South African business environment is experiencing an ever-increasing spate of failures in governance measures with the Steinhoff debarcle topping the charts. This trend includes an alarming decay of governance in parastatals and government departments, where there seems to exist systemic greed for personal financial gain. Whilst greed cannot be curtailed easily, a wider collective of individuals must be held accountable for and lead by example. To this end, the principles of King IV, should be shared at all levels in the organisation and form part of general management meetings and not only board level discussions. King IV must become the language and vocabulary of every day business life, hence woven into the fabric of the organisation at all levels.

The question we must all ask is, what can we do to curb this and how will we as directors lead the way? A starting point is to refer to ethics, defined as “considering what is good for self and the other”, according to King IV. All businesses are governed by a set of core values that a business subscribes to, lives by and is entrenched in the minds and hearts of its employees.

Many organisations promote at least 5 of the 6 pillars as their core values and therefore subscribe to ethical standards of operating in some way or form. These values must however translate into tangible behaviours that individuals can understand, appreciate and stand by on a daily basis.

A good example is that of General Electric’s actions and behaviours as an expression of their core values. Their 8 values were distilled into 4 themes and tangible behaviours were matched to these themes. Each behaviour is action orientated. These are overall corporate behaviours which govern the

organisation as shown in figure 1.So to can the principles of King IV be tailored and developed for

each individual organisation that will resonate with the business and its people, incorporating their core values and translating these into actions for each business.

It is of utmost importance that the concepts and principles of King IV are made available to the wider public in various forums as an opportunity for change leadership and raising the standards of ethics. The perception of King IV being seen as a legal compliance document must be changed with speed in South Africa.

Judy Gounden is an Executive Director with 22 years of in-depth technical, practical, business leadership and transformation experience in the Building and Construction, Building Materials Retail, Pulp and Paper, Energy and Hydrocarbon and Mining industries.

Value of IoDSA membership: “I joined the IoDSA as a member in 2018, when I was appointed as a director. I have had an incredible learning experience by completing the Part 1- 4 series where I gained extensive knowledge on corporate governance and King IV, as I was not exposed to this previously and only now feel fully confident in fulfilling my fiduciary duties as a director.

According to King IV, ethics is characterised by 6 pillars, namely:1. Integrity2. Competence3. Responsibility4. Accountability5. Fairness6. Transparency

Values Actions

Imagination at work

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imagine

solve

build

lead

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TEAMWORKCOMMITTED

We put imagination to work for our customers, people and communities

We help solve some of the world's toughest problems

We are a performance culture that builds markets, people and shareholder value

We are a meritocracy that leads through learninbg, inclusiveness and change

ALWAYS WITH UNYIELDING INTEGRITY

32Opinion

A lot has been said and written about

the fourth industrial revolution since McKinsey first published their research in the McKinsey Quarterly of May 20131. But

what does this mean in practical terms and how does this affect talent and human capital processes in organisations? At a recent South African Reward Association WorldatWork feedback session key delegates who attended the conference in Florida, USA presented the latest global trends. The key take-away from this was: The fast pace of disruption will require agile organisations. Like the proverbial dropped cat, organisations will have to be flexible to a changing environment or face severe and crippling challenges.

Herein lies the rub: How does one bring the concept of agility together with a relatively inflexible South African

legislative framework, current state organisation structures and human capital functions and existing investment in large ERP systems? Senior managers have traditionally seen human capital processes as a necessary cost and baulk at the idea that business processes will change, systems customization will be required and budgets for talent will increase. It is obvious that throwing more people at the problem will not solve the conundrum. Gartner predicted way back in 2006 at their SA conference that the pace of change in a world driven by technology will change everything – from an explosion of devices, digitisation, big data to how people will do their work.

The impact on human capital will be far reaching. We all know that one can change a system overnight (said with tongue in cheek), but to change a culture or an individual’s skills set or mind set is a different matter entirely. As an example of cause and effect: Technology is changing so rapidly that tertiary institutions cannot keep up with their curricula. For some

Disruption:Joan van der Westhuizen, Director, Blue Horizon & IoDSA member

1 James Manyika, Michael Chui, Jacques Bughin, Richard Dobbs, Peter Bisson, Alex Marrs , p.41, McKinsey Quarterly (May 2013), Disruptive Technologies: Advances that will transform life, business, and the global economy

2 WorldatWork Conference & Exhibition, 2019, Florida, USA, South African Reward Association presentation slideshow by Kei Cole.

Will your business land on its feet?

cybersecurity tech professionals, the IT job market is growing 12 times faster than the general job market, thereby causing a crisis in how placements are done2. It is not unlikely that these trends will hit South Africa. Placement of resources will be done on competence, whether the piece of paper accompanies those skills or not. Compensation and reward will require flexible and expanded policies and out-of-the-box thinking. Have you considered the other insidious problem? Your organisation structure, job profiles and grading which is a legislative requirement, the basis for your remuneration and at the heart of each CCMA case? Are your organisation structures and role designs closely aligned to your operational business and your strategies?

The answer lies in the same disruptive technologies that are driving the change – automation of knowledge work. Human Capital methodologies and systems will have to change. As the popular adage goes: “You cannot expect a different result by doing the same thing”. Your organisation structure and role design, coupled with the ancillary processes of grading, compensation and reward, talent acquisition, career development and policy amendments will need to be agile, efficient and business driven – thereby ensuring that your cat has nine lives.

"The fast pace of disruption will require

agile organisations. Like the proverbial

dropped cat, organisations will

have to be flexible to a changing environment

or face severe and crippling challenges."

33

Are South African board of directors prepared enough for boards?Eugenia Kula- Ameyaw (MBA), board director & IoDSA member

T he country is going through a time in which boards are experiencing the unintended consequences of

corporate governance failures such as loss of jobs. Although the cited commissions’ focus on state entities, the private sector is not insusceptible from these challenges. Citing the involvement and the influence of politicians during the state capture commission was not surprising.

This article seeks to identify three areas through which the directors can be empowered to avoid those unfortunate incidents, as some are likely to have huge financial implications and personal liability.

• Ethical conduct – the directors and executive need to be ethical in their dealings. This means the rules must be followed irrespective of who the beneficiary is. The danger is the inability to differentiate between what is right and wrong so that you do not flout corporate governance. The worse scenario is knowing what is right but choosing the move to take a wrong resolution or being suppressed to follow majority against your ethical beliefs.

• Courage to challenge the status quo – the board directors especially if they are new in the board or sector should be able to ask what could be viewed as a ‘stupid question’. There should be an opportunity to challenge the proposal from both executive, fellow directors from various board committees and the chairman of the board. “So, the idea

that you have always dealt with it in a particular way may not necessarily mean that it will still work at this time” cited one director.

• Independent mind – whilst directors are expected to get a buy in of their fellow colleagues, lobby others to support their proposal, the true value add is having an independent mind. There is wisdom for every director to leverage the uniqueness of competency, viewpoint and approach to decision making. If Directors are influenced up to a point that their individual character is suppressed that is a set up for disaster.

These three attributes should be the focus for the empowering of directors, and they should know that these are intertwined. You need to have ethical leaders with independent minds to be able to challenge the status quo. Similarly, the board chair should not suppress independent thinking and allow the board of directors’ freedom to question the prevailing status quo. The actual empowerment should focus on aspirants and new directors, the chair of boards and committees and the ministers of state entities. If all stakeholders were aware of the importance of these attributes and were mature enough to expect these displayed by directors, then some of the emerging issues in our commissions could have been avoided.

Ensuring corporate governance compliance is a collective national, corporate and individual responsibility for

all stakeholders involved. It is my belief that SA directors must willing to learn through preparation instead of learning the hard way.

With the corporate governance challenges prevalent in the State Capture Commission, the Public Investment Corporation (PIC) commission and other cases reported in the media; is it not time to ask whether the directors are empowered enough to deal with such challenges?

Eugenia Kula- Ameyaw (MBA) is a board director who have extensive experience on boards. She has a Board Leadership Certificate from GIBS and has just completed her Doctorate in Business Leadership

(DBL) Studies focusing on corporate governance.

"You need to have ethical leaders with

independent minds to be able to challenge the

status quo. Similarly, the board chair

should not suppress independent thinking and allow the board of directors’ freedom to

question the prevailing status quo."

Opinion

34Opinion

Corporate South Africa can – and should – contribute to building an ethical stateCynthia Schoeman, Managing Director, Ethics Monitoring & Management Services & IoDSA member

In his June 2019 SONA President Ramaphosa emphasised the commitment to “building an ethical state”. While we can be distracted by questioning to what degree this is his or the government’s commitment, it is more productive to consider this statement in the context of the theme for the 2019 SONA: “Let's grow South Africa together as we celebrate 25 years of freedom”. The key question that derives from this relates to ethical progress. From a high moral base 25 years ago, have we as a country progressed or regressed?

O ur country’s transition to a constitutional democracy represented a massive moral shift

which should have signified the unfolding of a wonderful story: the triumph of ethics and its positive cascading effect. However, the various Commissions of Inquiry set up by the President in 2018 to uncover malfeasance and the abuse of State resources continue to paint a very different picture.

What is noteworthy in the evidence that has emerged from the Commissions of Inquiry – notably from the State Capture Commission – is that private companies have also played a destructive role in the plunder, whether in being party to the corruption or, in the case of some professional services, in facilitating corruption.

The underlying issue is not only a failure of ethics but, more importantly, an abuse of the ethics of power. The power and authority vested in a leader is ethical when it is used for the benefit of all stakeholders (such as citizens) and it promotes and protects their development and wellbeing. But when leadership power is used tor self-enrichment and self-interest, it amounts to an abuse of power. And for all the leaders’ illicit gains, the cost is largely borne by those who can least afford it, whether via the absence of textbooks provided timeously, effective medical care at State hospitals, or the provision of clean water. (Let’s not even mention electricity!)

What is clear is that immediate and bold corrective action is required by both the State and the private sector. While the President’s new term of office brings with it a commitment to addressing corruption, real change rests on a much wider circle of influence.

So, this begs the question: what are corporates actually doing?

Organisations should recognise that ethics includes speaking up for what is right every time and all the time. Silence never solves breaches of ethics. In light of the widespread linkages between the public and private sector in perpetuating malfeasance, claiming that the present state of affairs falls exclusively on government’s shoulders is neither a sound excuse nor plausible reason. Put simply, there is an ethical obligation on every single corporate in South Africa to make a contribution to building an ethical state.

Corruption, as a particular problem, can be reduced by business. The fact that corruption rests on two parties – the person offering the bribe or facilitating the ‘commission’ and the person accepting the bribe – means that it can be stopped if one party refuses to participate. This warrants that ethics is explicitly recognised by corporates as a strategic goal or core value. In the absence of ethics enjoying such high-profile recognition, it risks being overridden by operational or other demands.

Organisations can also make a noteworthy contribution to promoting the country’s ethical

Cynthia Schoeman, MD of Ethics Monitoring & Management Services, is also an author and lecturer with almost 20 years’ experience in workplace ethics.

IoDSA membership value: Membership of the IoDSA provides excellent opportunities to learn about current governance issues and to reinforce my professional network.Twitter: @ethicsmonitor

progress by increasing the level of ethical awareness among their employees and stakeholders. They have a captive audience among whom they can make an investment for good. This is best done by building a better understanding of the concomitant responsibilities of ethics so as to foster more ethical choices and behaviour and, ultimately, a greater commitment to personal and workplace ethics.

The benefits for the organisation are obvious, not least in terms of a stronger ethical culture and strengthened stakeholder relationships and confidence. The real gain, however, is far greater. The C3 effect applies where there is a triple benefit for every employee or stakeholder who is ethically positively influenced: for the company, for the person’s community and, with each person’s contribution, for the country.

In pursuit of ethical progress, we cannot succumb to ethical inertia. Now is the time to remember the strength and resilience of the many activists who fought for our country’s freedom. Their legacy warrants that we too find the courage and commitment to stand up for what’s ethical, even if it carries a cost. Now is the time for Corporate South Africa to stand up and be an ethics activist.

3535Opinion

Sustaining the Risk Climate in South Africa

Dr Anushka Bogdanov, Managing Director, Risk Insights & IoDSA member

According to the World Economic Forum’s 2008-2018 annual Global Risk Reports investors have a different view when it comes to the risk of their investments.

T he environment, social and governance (“ESG”) risks have overtaken the economic and

geopolitical risk. Looking at a credit rating, stock price movement or beta coefficient is simply not enough for millennial investors, they are now questioning how sustainable their investments are and therefore, participating in investments that are aligned to their values – Outcome-based Investments.

In September 2015, the United States Environmental Protection Agency (EPA) found that Volkswagen had installed software in the diesel engines to activate certain emissions controls during laboratory testing. The software caused the nitrogen oxide (NOX) levels to meet regulatory standards but outside of the laboratory these same engines emitted up to 40 times more NOX than permitted. Shareholder and customers reaction became evident as the share price dropped by 23% in less than 24 hours after the news broke.

The banking and mining sectors have a very high contribution to South Africa’s GDP. With that said, meaning it is very difficult to implement sustainable investing or ESG especially in the mining sector. And with an exponential growth of ESG implementation globally in the past 10 years, it is just a matter of time before SA is pressured to start implementing ESG. When it comes to investigating environmental issues, the initial focus is on the forces of industrialisation where mining/manufacturing/construction firms are accused of releasing various forms of pollutants into the environment. Naturally, the banking sector is always out of the suspicion list as it does not produce anything hazardous to the environment. Banks are linked to environmental degradation through their

financing activities with these mining/manufacturing/construction firms that directly pollute the land, air and water through contested production process. Going forward, banks’ risk appetite and tolerance levels will include not only Expected Loss (EL) but ESG ratings as well.

With MSCI and FTSE Russell being the only two major companies currently providing ESG research in South Africa and with the pressure pilling up on South Africa’s institution, South Africa’s largest insurer Old Mutual has already taken a step into ESG implementation by teaming up with MSCI to launch the Old Mutual MSCI Emerging Markets ESG Index Feeder Fund.

According to Old Mutual, the fund aims to achieve long-term capital growth by primarily gaining exposure to the MSCI Emerging Markets ESG Leaders Index, a free float adjusted market capitalisation weighted index designed to measure the equity market performance of companies with high environmental, social and governance (ESG) performance relative to their sector peers across emerging markets worldwide.

ESG also comes with major challenges, transparency in governance and access to high quality, trusted and validated data is one of the biggest challenges that will come along with ESG implementation. Major institutions and companies that provide ESG research are based in the developed countries and the ratings they provide to South African companies might not be relevant since South Africa does not have the same conditions in which the research/rating are based on.

Recent scandals in one of South Africa’s Mutual Banks has been a wakeup call for South Africa in terms of corruption and share price collapse in some of South Africa’s prominent corporates. This has raised concerns over governance and sustainable

institutions that are built to last. Let’s face it. ESG (Environmental, Social

and Governance) risk is here, lawsuits will outnumber proxy votes in the years to come. It’s about time we choose the planet and people over profits to create sustainable outcomes.

Dr Anushka Bogdanov has 26 years of International Risk Management experience, she also has a PhD degree in International Financial Management from the London Business School and boasts an Honours and Master’s Degrees in Business Administration from Buckinghamshire University in London.

IoDSA membership value: IoDSA keeps me abreast with all new corporate governance practices both locally and internationally.

"ESG also comes with major challenges,

transparency in governance and access to high quality, trusted

and validated data is one of the biggest challenges that will

come along with ESG implementation."

36Opinion

How Corporate Value is erodedChris Adonis, IoDSA member

C orporate value is added when there is residual income as expressed in the formula: EVA = NOPAT – Finance

charges, where: EVA = Economic Value Added, NOPAT = Net Operating Profits after Tax, and Finance charges = weighted average cost of capital x capital employed. Companies strive to maximize Economic Value however their efforts may not be sufficient as there are areas where oversight can be more focused to ensure value erosion is not a consequence.

1. Root cause analysisAt board meetings executives do not sufficiently ask why? Matters are being presented, but sometimes natural skepticism prevents directors from asking “Why, why, why?” Until root causes are correctly identified, recommendations are inept. Out of eight possible reasons for not drilling down enough, I state one, as: “Lack of subject matter knowledge or insight into the process.”

2. Structure to follow strategyOrganisations use existing structures to pursue strategy. Once a strategy is agreed on, then only the best-fit structure to enable goal achievement is designed. Structures that have been set, should be re-evaluated should the strategies change, as they tend to remain and only cloud the overall organisation, if they do not serve a distinct purpose. Out of four possible reasons for rigid structures, I list one, as: “A belief that strategy change doesn’t require structures to be changed.”

3. TransparencyIn several board meetings and in preparing board packs, I observed that the correct information is being presented, but not transparently. The skills of the board members should not be tested to identify the crux of the matter. Matters should be presented to harness the board members’ experience and direction effectively. By being opaque, management many a time seeks to erode value and the board becomes part of such exercise. Out of four possible reasons, I state one why transparency is lacking, as: “Vested interests.”

4. Long-term viewWhen approaching a fork or challenge, management needs to adequately analyze the situation, present it objectively and the board members should assess or obtain third party consultation to ensure long-term value addition. Quick fixes may bring short-term value but may erode long-term value. Out of four possible reasons for a lack of long-term view, I state one, as: “Lack of market intelligence, industry trends, understanding economic environment.”

5. Inept ProcessesThe board sets direction, risk appetite and tolerance, but management operates the business within given frameworks. Not all people think alike and expect the same results. It is management’s duty to create sleek processes that are optimum to all stakeholders of the process but contain relevant controls ensuring effective operations which do not directly or indirectly erode value. Out of five possible reasons leading to inept processes, I list one, as:

6. Lack of initiativeMany employees lack the urge to invent, change matters and come up with new initiatives. Traditionally dead wood is tolerated. The way employee benefits are structured, should encourage continuous innovation, and management should embrace a regular staff turnover to ensure fresh ideas are being obtained. Assessing all employees and their ability as team workers, objectively, will enable value enhancement as opposed to erosion thereof. Value erosion, especially if management protects it and prevents board members from “seeing” this, is an evil to all stakeholders. A silent death.

Chris Adonis qualified as a CA (SA) in 1983 and is a Fellow of the Chartered Institute of Management Accountants. He qualified as CIA in 1991 and completed the program in Strategic Management at the US Business School in 1994. He works for Qatar Solar Technologies where he endeavors to enhance corporate governance.

IoDSA membership value: I am kept abreast of changes in laws and compliance requirements.

37Chartered Directors (SA)

Congratulations to these recently qualified Chartered Directors (SA)

Iain Hamilton Johan ThomasMark Vella

Thandi ThankgeI wanted to become a Chartered Director... so as to enhance my expertise as a Director, as well as contribute meaningfully to the highest standards of corporate governance in South Africa.

Alexander Sean O'ConnellMmashela NongSharon CarsonTrust ChikwiriZiphozihle ZajijiWalter LeonhardtJames FraserRaju OokaNicholas BattersbyToni BeukesMessan Adorgloh

Congratulations to the following IoDSA members who have been selected as SAICA’s Top 35 under 35 Finalists for 2019

Hiten Keshave CA(SA), MBA | Chief Financial Officer – PRP Solutions

As an individual, Hiten’s motto in life is “Impact people’s lives and business positively for future sustainability”. His outlook and approach in his day-to-day life is to create value and bring meaningful change in everything he does. His recent achievements from development of sustainable businesses, influencing communities and individuals positively, authentic servant leadership style and innovative business ventures distinguishes him as a leader of the future.

Luyanda Gidini CA(SA) | Acting Chief Financial Officer – Metropolitan Trading Company

Acting Chief Financial Officer, Metropolitan Trading Company - a wholly owned subsidiary of the City of Johannesburg Municipality (City). Luyanda also serves as an Acting Executive Director on the MTC Board of Directors. He is a qualified CA (SA) as accredited by SAICA and has a professional membership with the IoDSA. He was recently appointed as the Chairperson of the Audit Committee at the Equal Education National Council (EE). He serves on the Audit Committee of the Black Business Council and is the General Secretary and board member of the Association for the Advancement of Black Accountants of Southern Africa.

Congratulations to IoDSA fellow Mokadi Max Mathye on his election as National President of COMENSA, the SAQA-recognised non-statutory professional body for coaching and mentoring in South Africa.

Congratulations to IoDSA President Dr Reuel Khoza on his recent appointment as chairman of Assupol Holdings and the PIC.

38Events

Women's Day celebrations at the IoDSA

39

40Travel

Five ways to avoid the luggage-carousel waiting game, according to frequent business travellers.

L ast year, nearly 29 million “mishandled” bags didn’t show up at the correct baggage claim carousel, according

to air transport IT provider Sita, which monitors global baggage handling. And passengers left waiting for those bags spent an average of 36 hours wondering when they’d be reunited with their luggage. But let’s be honest, you don’t have 36 hours to waste. That’s why many frequent flyers and business travellers opt for a carry-on-only travel regimen. In fact, the most common piece of travel advice we get from company founders and CEOs? “Carry-on only.”

Or in the words of Shake Shack CEO Randy Garutti: “Never check a bag. Ever. For any reason. Nothing good happens.”

Sure, that works for overnight trips—but what about week-long, or even month-long travel commitments? Where there’s an overhead cabin space, there’s a way. “No matter how long I will be gone, I will only take carry-on,” Lynne Biggar, chief marketing and communications officer for Visa, says.

We tapped our network of CEOs,

founders, and business owners who have been around the world a time or two to get their best advice, smartest tips, and most trusted travel products so that you’ll never have to check your luggage again.

PACK LIGHTER AND TIGHTERYou’ve probably heard that rolling up your clothes helps to maximise space in your carry-on. But what about wrinkles? You don’t have to sacrifice folding your button-downs to keep them crisp; you just have to change your measurements. “To fit more in your bag, fold your clothes clean and tight to the size of your suitcase, not the size of your usual fold,” Bethany C. Meyers, founder and CEO of be.come fitness, says. “The more you can fold your clothes to meet the edges of your bag, the more you’ll fit!”

And to really keep the wrinkles away, take a hint from brand consultant Ana Andjelic. “I am probably the only one who is doing this, but I wrap my clothes in tissue paper when packing,” she says. “It keeps them from wrinkling and getting all bunched up even if I am flying for 14 hours to Japan.” Plastic dry-

cleaner bags work equally well and are a great way to reuse the single-use wrapping.

GET OFF ON THE RIGHT FOOT(WEAR)For in-flight comfort, start-up investor and adviser Fran Hauser swears by Allbirds merino wool runners. “These truly are the world’s most comfortable shoes and make running through the airport a breeze,” she says.

But if you want to pack light, make sure you wear a pair to the airport that can-do double duty at meetings, lunches, and other appointments on the road. (Doesn’t matter what size you wear; shoes take up valuable suitcase space.) “I recommend easy slide-on/slide-off shoes like Rothy’s,” says Suzie Welsh, founder and CEO of Binto, a personalised vitamin supplement company focused on women’s health. Bonus: Rothy’s stylishly versatile recycled-plastic flats are machine washable.

PICK A COLOURPacking light means looking for items in your closet that naturally work together. “I pick a colour theme when packing clothes,”

Lauren Steele

How to pack for any trip in just a carry-on suitcase

41

CEO'sRecommendedReads

24 October 2019

After Dawn:Hope After State Capture

Presented by Mr Mcebisi Jonas

P armi Natesan has the pleasure of inviting you to the 3rd edition of CEO Recommended Reads, this

time featuring Mcebisi Jonas’s “After Dawn: Hope After State Capture”

Mcebisi Jonas is one of four Presidential Investment Envoys, appointed by President Cyril Ramaphosa to attract USD100-billion to South Africa over the next five years. He also holds various non-executive board positions in listed

and non-listed companies and chairman designate of MTN.

Jonas previously served as Deputy Minister of Finance and as a Member of Parliament from 2014 to 2017, during this time he helped to steer South Africa’s economy through one of the country’s most difficult post-democratic periods. He also served as Chairperson and Non-Executive Director of the Public Investment Corporation, the state-

owned pension fund manager and one of Africa’s largest investment managers.

After Dawn dispassionately explains South Africa’s current political-economic crisis, drawing on Jonas’s wealth of political and governance experience and insight. The book makes a vital contribution to our future trajectory by proposing practical, and implementable solutions. The book is a bestseller in South Africa.

Event Details

Iva Pawling, CEO of fashion brand Richer Poorer, says. “If everything can match, I don’t have to plan outfits, and I need fewer pairs of shoes.”

BYO BOTTLESNo, you don’t have to choose between using hotel shampoo or your new bottle of Prose. “I get creative about the way I pack toiletries,” says Hauser. “For example, I use a contact lens case (with two

compartments) to store facial cleanser and moisturizer. This takes up much less space than two big bottles, and one case can get you through a few days.”

8Greens founder James Russell recommends Muji containers for making your own mini toiletries. “I decant into any of the amazing selection of containers sold by Muji. Buy any larger bulky ones—like deodorant and moisturizer—upon arrival.”

FIND THE BAG THAT’S RIGHT FOR YOURegardless of how savvy you are about colour schemes and shoe selection, the most crucial component of being a successful carry-on traveller is having the right suitcase, along with an under-the-seat handbag that can carry more.

Source: https://www.fastcompany.com/90394943/how-to-pack-for-any-trip-in-just-a-carry-on-suitcase

Bookings: Contact: Tanyia Mangiagalli

events@iodsa.co.za or 011 035 3034

Books will be on sale at the venue

at the cost of R297.00

Venue: 144 Katherine Street, Grayston Ridge Office Park,

Block B, 1st Floor, Sandown, Sandton, 2196

Cost: IoDSA Subscription paying members fee: FREE

All others: R250.00

Thursday, 24 October 2019

Registration: 15h30 - 16h00

Proceedings: 16h00 - 19h00

42

What is Speechcraft?Speechcraft is a program to develop your public speaking ability and so much more. Course coordinators are accomplished Toastmasters who present the fundamentals of public speaking and effective communication in a relaxed atmosphere.

Learn by doingIn Speechcraft, you will learn through practice and by studying the professionally prepared materials provided. Through participation you will become an experienced and poised presenter. Your Toastmaster mentors will help you prepare for your short presentations.

Fortunately, public speaking is a skill that can be learned. In just a few short

sessions, you may not get rid of the butterflies in your stomach, but you’ll certainly have them flying in formation!

How will Speechcraft help you?Speechcraft will help you communicate more effectively at work, home and socially. You will learn to organise and present your ideas logically and convincingly. In doing so you will develop the self-confidence you need to handle any speaking situation with ease.

On the job, you will be able to work

more effectively with your employer, associates, subordinates, and clients. Conversation at home with your family, or socially with your friends, will become more relaxed and enjoyable.

You will...• Be provided with a professionally

designed manual and support materials• Obtain instruction from experienced

Toastmasters• Practice impromptu and prepared

speaking; and speech evaluation

Learn about how to engage your audience and maintain contact using voice; gestures; body language; speech structures and techniques.

Member benefit

Is fear of public speaking standing in the way of your success? You can conquer that fear, painlessly and enjoyably by attending an internationally recognised Speechcraft program conducted by Toastmasters International at the Institute of Directors.

“The IoDSA Toastmasters SpeechCraft Programme helped me understand the vital fundamentals that can help differentiate you from the average public speaker.”

~ Hiten Keshave

“The IoDSA Toastmasters SpeechCraft Programme provided me with tools to better my public speaking and oral communication skills. It also taught me valuable evaluation skills.”

~ Charmel Flemming

“The IoDSA Toastmasters SpeechCraft Programme helped me to shift from a shy and soft-spoken individual; to an audible, animated and assured leader.”

~ Mikaeel de Main“The Toastmasters SpeechCraft course was a very positive experience, with encouraging facilitators and a good comradery amongst participants. It’s helped me better prepare and present for subsequent board meetings.”

~ Jonathan Cotterell

Speechcraft at The Institute of Directors

43

Wine: The price – from sod to table

Wine

H ow much are you prepared to pay for anything? The reason I’m asking is that I have been sensitized in the last 48 hours to the question by Uber, where depending on the time of day or night, prices may vary by over 100%. How much are

you prepared to pay for your favourite bottle of wine whether at home or in a restaurant? Remember the markup in a restaurant probably starts at 200%, whilst in a hotel the average will be around 300%.

There is much debate amongst wine producers about how much to charge. But let’s first take a step back and consider the journey from sod to table. Just think about the time and energy that goes into checking out the soil, literally the lie of the land, preparing it, buying and planting the vines, irrigation (where necessary), trellising, tending and pruning and then four to five years later hoping the chosen cultivar is in fashion and the fruit suitable to make wine out of. All through this journey Mother Nature plays a sometimes-unpredictable role. If that is not enough of a challenge, the fruit then needs to be processed, put into bottles for pretty much immediate drinking – I think I first saw 2019 available in a wine shop in April - or tanks, vats whatever. So-called fine wines might go into anything from concrete to French oak, toasted to specifications and left for several years before being brought to market. Despite this timeline, I have heard it often said, “Oh this wine is too young, it needs a couple more years”. Cash flow challenges often result in wine being released for sale earlier rather than later. And there will be those who will buy a few cases and try a bottle every three to six months or so until they reckon it is at its optimal point and needs drinking. Remember wine, like many things in life, can live past its sell by date. If you are not sure when to open a special bottle, and I have done this, call up the relevant wine estate and ask their advice.

Now when you run any business, cash flow and making a profit, yes in that order, are crucial. From my broad-brush description from turning the first sod to pouring a glass of drinkable wine, you will have a sense that wine is not a quick win, nor for the faint-hearted, nor for those without deep pockets. Little or no return will be made in the first five years of the investment, and only after seven to ten will it become really serious, but not guaranteed. But of course, that is only part of the story as global warming makes its presence felt, with some areas such as the Swartland experiencing a drop in grape production of 40 – 50%.

In South Africa many wine producers have flocked to the cooler climes of Elgin from the increasing temperatures of Stellenbosch, Paarl and Franschhoek. Whilst the climate of Sutherland is attractive, another threat posed by climate change, and one of the many things that keeps a farmer awake at night is an increase in the number of fires that can decimate all the hard work and investment in minutes. A recent headline in a UK newspaper intoned: ’European winemakers sniff out new ways to survive climate change’s growing threat’. One answer being to plant different grapes and change planting techniques. In 2017 grape production in Spain was down 60%. All this will obviously push up prices.

All the above really sets the scene for an evening I spent at The Old Mutual Trophy Wine Show conducted by wine guru Michael Fridjohn. Two things struck me, first the quality of all the wines I tasted – and remember that you can taste more by using a spittoon than by sipping and drinking – and secondly how the prices were rising but affordable. Of the nearly 200 stunners on show, prices* ranged from R360 (Spier Signature Collection, a Chardonnay Pinot Noir 2019 and a

Sauvignon Blanc 2019) to R4350 (Delaire Graaf Estate Terraced Block Reserve Chardonnay 2017), with the average price around the R1250 – R1500 bracket. Many wine producers are increasingly exporting their top end wines, this is helped by two major factors: 1) they are very attractive pricewise to international buyers and 2) the image of South African wine improves. An added bonus for international restauranteurs is the opportunity to add obscene markups to South African wines to align them with the price points of other international wines. If you are having difficulty ensuring you can still get hold of your favourite local wine, as this may be getting increasingly difficult, check out if they have a wine club you can join, guaranteeing you are not left disappointed.

The late economist Tony Twine loved his red wine and was always on the lookout for a bargain. Wine producers sometimes have a problem at the end of the year if they still have a surplus in their vats, with the new vintage about to arrive. As a result, it is often bottled and only labelled when an order comes in. Tony had discovered a bottle store in the southern suburbs of Johannesburg that would pile them high and sell them cheap; cases of the stuff sitting on the floor in the middle of the shop. You could never tell too much from whatever label had been concocted, and often it was in some eastern European language. Unless you had an expert palate, you would find it difficult to pin down the exact source of the wine. But on occasion the closure was not screw cap, but a cork, with the name of the estate writ large. It was great fun with often surprisingly good results.

Everyone loves a bargain, whether perceived or real.

By Jeremy Sampson Fellow of the IoDSAjdrsampson@gmail.com

"From my broad-brush description from turning the first sod to

pouring a glass of drinkable wine, you will have a sense that wine is

not a quick win..."

44

Benefit What it is Frequency Description

Contemporary Gazette Complimentary legislative e-publication Legal updates and summaries in a searchable format with key amendments/ highlights of SA legislation

getAbstract Complimentary access to a library of business book summaries Five-page summaries of the latest business books of your choice

Directorship magazine Complimentary hard-copy and e-publication IoDSA magazine edited by Angela Cherrington

Governance Alerts Complimentary governance alerts • Alert containing guidance on governance topics or themes

E-mag Complimentary electronic newsletter Accessed by over 8000 members

Member induction sessions Information sharing session Free 3 hour session on "Introduction to Governance” included

Events and networking Networking with other business professionals

• Complimentary attendance to the annual cocktails, member inductions and forum events (SDF, CGN, ACF, REMCO) and the AGM

• Subsidised rates for members 20% off advertised price on all other events

Director Development Programmes

Range of presentations, workshops and courses Subsidised rates for members off the advertised price

Chartered & Certified Director

Assesses and credits mastery, while enhancing skills of directors Skills evaluation against the Director Competency Framework

Advisory and Board Appraisals Board services Subsidised rates for members off the advertised price

CV search NED portal NED portal

Advertising Promotional platform Subsidised for members of the IoDSA to promote your business or services through our publications

Business Directory A portal for active IoDSA membersTo share their business information or service offerings with other IoDSA members therefore allowing active engagement and opportunities among IoDSA members.

Toastmasters International

This tailor-made Speechcraft programme is a five-session experiential workshop in which you learn to prepare speeches and to provide valuable and constructive feedback.

You will study and practice these skills in a friendly, safe environment with the assistance of an experienced, knowledgeable and supportive team. Available to Future leader and Individual members only.

The below benefits apply to full Membership only (not applicable to Associate Membership category):

NED vacancies Complimentary access to available board level positions

Be the first to know about available board positions 4/5 advertised positions are filled by IoDSA members

Automobile Association (AA)

Roadside assistance, technical services, fuel, vehicle and travel tips

10% member discount for access to accident assistance, emergency medical assistance and motor-related legal services

AVIS Hassle-free vehicle reservation and collection

• Preferred membership• 4% member discount with a dedicated help desk No queuing, no

paperwork

Europcar Conveniently located car rental and hire

• At least 10% member discount on the best available rate of the day and chauffeur services

• Free weekend upgrades No queuing; no paperwork

Legacy Lifestyle Gold Membership

Complimentary gold membership with Legacy Lifestyle Rewards for purchasing luxury and niche lifestyle products

Mercedes Benz Guaranteed benefit on your next purchase 3% member discount on NEW vehicle purchases

BMW Guaranteed benefit on your next purchase A guaranteed minimum discount of 8% on your next purchase of a new BMW and other service offerings

Tsogo Sun Leading hotel group’s Platinum status

• Automatic platinum status which is usually achieved after R20 000 spend

• 10% Accommodation discount at Luxury and Full Service hotels• 5% Accommodation discount at Select Service hotels• 15% Food and Beverage discount at Tsogo Sun hotel owned

restaurants and bars

Membership BenefitsOur value proposition for members

If you require more information on how to access your benefits, please contact membership@iodsa.co.za

365

X4

X4

2/

±2-3

365

365

365

365

365

365

365

Better directors. Better boards. Better business www.iodsa.co.za

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Included in your annual subscriptions you get:

Benefit What it is Frequency Description

Contemporary Gazette Complimentary legislative e-publication

Legal updates and summaries in a searchable format with key amendments/ highlights of SA legislation

getAbstract Complimentary access to a libraryof business book summaries

Five-page summaries of the latest business books of your choice

The Corporate Report Complimentary e-publication Governance magazine containing articles by leading governance experts

Directorship magazine Complimentary hard-copy and e-publication

IoDSA magazine

Governance Matters Complimentary governance newsletter

• Newsletter containing guidance on governance topics or themes• Each edition includes standard items such as the latest legal updates

a�ecting directors and recent IoDSA articles

E-mag Complimentary electronic newsletter

Accessed by over 6 700 members

Member induction sessions

Information sharing session Free 3 hour session on “Introduction to Governance” included

Events and networking Networking with other business professionals

• Complimentary attendance to the annual cocktails, member inductions and forum events (SDF, CGN, ACF, REMCO) and the AGM

• Subsidised rates for members 20% o� advertised price on all other events

Director Development Programmes

Range of presentations, workshops and courses

Subsidised rates for members approx. 20% o� advertised price

Chartered Director Assesses and credits mastery, while enhancing skills of directors

Skills evaluation against the Director Competency Framework

Advisory and Board Appraisals

Board services Subsidised rates for members approx. 20% o� advertised price

NED vacancies Complimentary access to available board level positions

Be the first to know about available board positions 4/5 advertised positions are filled by IoDSA members

CV search NED portal Allows for companies to search the IoDSA membership for non-executive candidates

Advertising Promotional platform 20% member discount to promote your business or services through our publications

Sector focus Assists with assessing economic performance of sector

20% discount on economic sectoral analysis and forecasting service through Econometrix

Automobile Association (AA)

Roadside assistance, technicalservices, fuel, vehicle and travel tips

10% member discount for access to accident assistance, emergency medical assistance and motor-related legal services

AVIS Hassle-free vehicle reservation and collection

• Preferred membership • 4% member discount with a dedicated help desk• No queuing, no paperwork

Europcar Conveniently located car rental and hire

• At least 10% member discount on the best available rate of the day and chau�eur services

• Free weekend upgrades• No queuing; no paperwork

Legacy Lifestyle Gold Membership

Complimentary gold membershipwith Legacy Lifestyle

Rewards for purchasing luxury and niche lifestyle products

Mercedes Benz Guaranteed benefit on your next purchase

• 3% member discount on NEW vehicle purchases • Complimentary premium drive package valued at R60 000

Tsogo Sun Leading hotel group’s Platinum status

• Automatic platinum status which is usually achieved after R20 000 spend• 15% member discount on accommodation, food, beverage,

entertainment and events

365

x4

x4

Membership Benefits Our value proposition for members

365

365

365

365

365

365

Better directors. Better boards. Better business www.iodsa.co.za

x4

± 2-3

3653/

2/

x4MonthlyOn-going Annual

subscription Quarterly

Key:

365 ± 2-3 Approx. 2-3 per month3653/ 3 per annum 2/ Bi-monthly

If you require more information on how to access your benefits,please contact membership@iodsa.co.za

21

Included in your annual subscriptions you get:

Benefit What it is Frequency Description

Contemporary Gazette Complimentary legislative e-publication

Legal updates and summaries in a searchable format with key amendments/ highlights of SA legislation

getAbstract Complimentary access to a libraryof business book summaries

Five-page summaries of the latest business books of your choice

The Corporate Report Complimentary e-publication Governance magazine containing articles by leading governance experts

Directorship magazine Complimentary hard-copy and e-publication

IoDSA magazine

Governance Matters Complimentary governance newsletter

• Newsletter containing guidance on governance topics or themes• Each edition includes standard items such as the latest legal updates

a�ecting directors and recent IoDSA articles

E-mag Complimentary electronic newsletter

Accessed by over 6 700 members

Member induction sessions

Information sharing session Free 3 hour session on “Introduction to Governance” included

Events and networking Networking with other business professionals

• Complimentary attendance to the annual cocktails, member inductions and forum events (SDF, CGN, ACF, REMCO) and the AGM

• Subsidised rates for members 20% o� advertised price on all other events

Director Development Programmes

Range of presentations, workshops and courses

Subsidised rates for members approx. 20% o� advertised price

Chartered Director Assesses and credits mastery, while enhancing skills of directors

Skills evaluation against the Director Competency Framework

Advisory and Board Appraisals

Board services Subsidised rates for members approx. 20% o� advertised price

NED vacancies Complimentary access to available board level positions

Be the first to know about available board positions 4/5 advertised positions are filled by IoDSA members

CV search NED portal Allows for companies to search the IoDSA membership for non-executive candidates

Advertising Promotional platform 20% member discount to promote your business or services through our publications

Sector focus Assists with assessing economic performance of sector

20% discount on economic sectoral analysis and forecasting service through Econometrix

Automobile Association (AA)

Roadside assistance, technicalservices, fuel, vehicle and travel tips

10% member discount for access to accident assistance, emergency medical assistance and motor-related legal services

AVIS Hassle-free vehicle reservation and collection

• Preferred membership • 4% member discount with a dedicated help desk• No queuing, no paperwork

Europcar Conveniently located car rental and hire

• At least 10% member discount on the best available rate of the day and chau�eur services

• Free weekend upgrades• No queuing; no paperwork

Legacy Lifestyle Gold Membership

Complimentary gold membershipwith Legacy Lifestyle

Rewards for purchasing luxury and niche lifestyle products

Mercedes Benz Guaranteed benefit on your next purchase

• 3% member discount on NEW vehicle purchases • Complimentary premium drive package valued at R60 000

Tsogo Sun Leading hotel group’s Platinum status

• Automatic platinum status which is usually achieved after R20 000 spend• 15% member discount on accommodation, food, beverage,

entertainment and events

365

x4

x4

Membership Benefits Our value proposition for members

365

365

365

365

365

365

Better directors. Better boards. Better business www.iodsa.co.za

x4

± 2-3

3653/

2/

x4MonthlyOn-going Annual

subscription Quarterly

Key:

365 ± 2-3 Approx. 2-3 per month3653/ 3 per annum 2/ Bi-monthly

If you require more information on how to access your benefits,please contact membership@iodsa.co.za

Membership BenefitsOur value proposition for members

Benefit What it is Frequency Description

Contemporary Gazette Complimentary legislative e-publication Legal updates and summaries in a searchable format with key amendments/ highlights of SA legislation

getAbstract Complimentary access to a library of business book summaries Five-page summaries of the latest business books of your choice

The Corporate Report Complimentary e-publication Governance magazine containing articles by leading governance experts

Directorship magazine Complimentary hard-copy and e-publication IoDSA magazine edited by Angela Cherrington

Governance Alerts Complimentary governance alerts • Alert containing guidance on governance topics or themes

E-mag Complimentary electronic newsletter Accessed by over 8000 members

Member induction sessions Information sharing session

Events and networking Networking with other business professionals

• Complimentary attendance to the annual cocktails, member inductions and forum events (SDF, CGN, ACF, REMCO) and the AGM

• Subsidised rates for members 20% off advertised price on all other events

Director Development Programmes

Range of presentations, workshops and courses Subsidised rates for members off the advertised price

Chartered Director Assesses and credits mastery, while enhancing skills of directors Skills evaluation against the Director Competency Framework

Advisory and Board Appraisals Board services Subsidised rates for members off the advertised price

CV search NED portal NED portal

Advertising Promotional platform Subsidised for members of the IoDSA to promote your business or services through our publications

Business Directory A portal for active IoDSA membersTo share their business information or service offerings with other IoDSA members therefore allowing active engagement and opportunities among IoDSA members.

The below benefits apply to full Membership only (not applicable to Associate Membership category):

NED vacancies Complimentary access to available board level positions

Be the first to know about available board positions 4/5 advertised positions are filled by IoDSA members

Sector focus Assists with assessing economic performance of sector

20% discount on economic sectoral analysis and forecasting service through Econometrix

Automobile Association (AA)

Roadside assistance, technical services, fuel, vehicle and travel tips

10% member discount for access to accident assistance, emergency medical assistance and motor-related legal services

AVIS Hassle-free vehicle reservation and collection

• Preferred membership• 4% member discount with a dedicated help desk No queuing, no

paperwork

Europcar Conveniently located car rental and hire

• At least 10% member discount on the best available rate of the day and chauffeur services

• Free weekend upgrades No queuing; no paperwork

Legacy Lifestyle Gold Membership

Complimentary gold membership with Legacy Lifestyle Rewards for purchasing luxury and niche lifestyle products

Mercedes Benz Guaranteed benefit on your next purchase 3% member discount on NEW vehicle purchases

BMW Guaranteed benefit on your next purchase A guaranteed minimum discount of 8% on your next purchase of a new BMW and other service offerings

Tsogo Sun Leading hotel group’s Platinum status

• Automatic platinum status which is usually achieved after R20 000 spend

• 10% Accommodation discount at Luxury and Full Service hotels• 5% Accommodation discount at Select Service hotels• 15% Food and Beverage discount at Tsogo Sun hotel owned

restaurants and bars

If you require more information on how to access your benefits, please contact membership@iodsa.co.za

365

3653/X4

Learn about the IoDSA and how to make use of your benefits

2/

±2-3

365

365

365

365

365

365

365

X4 ±2-3 2/

2/

3

The King IV appThe King IV Report app gives you easy access to the entire King IV Report on Governance in South Africa, 2016 including the sector supplements. Search functionality makes access to governance best practice easier. Also included in the app are the relevant acts, codes and guidelines referred to in King IV as well as historical King reports, namely King I, II and III. No more carrying around text books to know what the roles and responsibilities of governing bodies are. Every person tasked with governance duties should have this app.

Benefits of downloading the App:• Offline access to King IV Report

• Easy navigation through King IV Report

• Interactive key word search

• View and download related legislation, guides and codes as well as historical King reports

• View and download Practice Notes

Android – Only available on the Galaxy Apps store with the pictured icon and not on the Google Play store

IOS – Available on the App Store

Here is a link to the app online (FYI):https://itunes.apple.com/za/app/king-iv-report/id1145317905?mt=8

21

Included in your annual subscriptions you get:

Benefit What it is Frequency Description

Contemporary Gazette Complimentary legislative e-publication

Legal updates and summaries in a searchable format with key amendments/ highlights of SA legislation

getAbstract Complimentary access to a libraryof business book summaries

Five-page summaries of the latest business books of your choice

The Corporate Report Complimentary e-publication Governance magazine containing articles by leading governance experts

Directorship magazine Complimentary hard-copy and e-publication

IoDSA magazine

Governance Matters Complimentary governance newsletter

• Newsletter containing guidance on governance topics or themes• Each edition includes standard items such as the latest legal updates

a�ecting directors and recent IoDSA articles

E-mag Complimentary electronic newsletter

Accessed by over 6 700 members

Member induction sessions

Information sharing session Free 3 hour session on “Introduction to Governance” included

Events and networking Networking with other business professionals

• Complimentary attendance to the annual cocktails, member inductions and forum events (SDF, CGN, ACF, REMCO) and the AGM

• Subsidised rates for members 20% o� advertised price on all other events

Director Development Programmes

Range of presentations, workshops and courses

Subsidised rates for members approx. 20% o� advertised price

Chartered Director Assesses and credits mastery, while enhancing skills of directors

Skills evaluation against the Director Competency Framework

Advisory and Board Appraisals

Board services Subsidised rates for members approx. 20% o� advertised price

NED vacancies Complimentary access to available board level positions

Be the first to know about available board positions 4/5 advertised positions are filled by IoDSA members

CV search NED portal Allows for companies to search the IoDSA membership for non-executive candidates

Advertising Promotional platform 20% member discount to promote your business or services through our publications

Sector focus Assists with assessing economic performance of sector

20% discount on economic sectoral analysis and forecasting service through Econometrix

Automobile Association (AA)

Roadside assistance, technicalservices, fuel, vehicle and travel tips

10% member discount for access to accident assistance, emergency medical assistance and motor-related legal services

AVIS Hassle-free vehicle reservation and collection

• Preferred membership • 4% member discount with a dedicated help desk• No queuing, no paperwork

Europcar Conveniently located car rental and hire

• At least 10% member discount on the best available rate of the day and chau�eur services

• Free weekend upgrades• No queuing; no paperwork

Legacy Lifestyle Gold Membership

Complimentary gold membershipwith Legacy Lifestyle

Rewards for purchasing luxury and niche lifestyle products

Mercedes Benz Guaranteed benefit on your next purchase

• 3% member discount on NEW vehicle purchases • Complimentary premium drive package valued at R60 000

Tsogo Sun Leading hotel group’s Platinum status

• Automatic platinum status which is usually achieved after R20 000 spend• 15% member discount on accommodation, food, beverage,

entertainment and events

365

x4

x4

Membership Benefits Our value proposition for members

365

365

365

365

365

365

Better directors. Better boards. Better business www.iodsa.co.za

x4

± 2-3

3653/

2/

x4MonthlyOn-going Annual

subscription Quarterly

Key:

365 ± 2-3 Approx. 2-3 per month3653/ 3 per annum 2/ Bi-monthly

If you require more information on how to access your benefits,please contact membership@iodsa.co.za

21

Included in your annual subscriptions you get:

Benefit What it is Frequency Description

Contemporary Gazette Complimentary legislative e-publication

Legal updates and summaries in a searchable format with key amendments/ highlights of SA legislation

getAbstract Complimentary access to a libraryof business book summaries

Five-page summaries of the latest business books of your choice

The Corporate Report Complimentary e-publication Governance magazine containing articles by leading governance experts

Directorship magazine Complimentary hard-copy and e-publication

IoDSA magazine

Governance Matters Complimentary governance newsletter

• Newsletter containing guidance on governance topics or themes• Each edition includes standard items such as the latest legal updates

a�ecting directors and recent IoDSA articles

E-mag Complimentary electronic newsletter

Accessed by over 6 700 members

Member induction sessions

Information sharing session Free 3 hour session on “Introduction to Governance” included

Events and networking Networking with other business professionals

• Complimentary attendance to the annual cocktails, member inductions and forum events (SDF, CGN, ACF, REMCO) and the AGM

• Subsidised rates for members 20% o� advertised price on all other events

Director Development Programmes

Range of presentations, workshops and courses

Subsidised rates for members approx. 20% o� advertised price

Chartered Director Assesses and credits mastery, while enhancing skills of directors

Skills evaluation against the Director Competency Framework

Advisory and Board Appraisals

Board services Subsidised rates for members approx. 20% o� advertised price

NED vacancies Complimentary access to available board level positions

Be the first to know about available board positions 4/5 advertised positions are filled by IoDSA members

CV search NED portal Allows for companies to search the IoDSA membership for non-executive candidates

Advertising Promotional platform 20% member discount to promote your business or services through our publications

Sector focus Assists with assessing economic performance of sector

20% discount on economic sectoral analysis and forecasting service through Econometrix

Automobile Association (AA)

Roadside assistance, technicalservices, fuel, vehicle and travel tips

10% member discount for access to accident assistance, emergency medical assistance and motor-related legal services

AVIS Hassle-free vehicle reservation and collection

• Preferred membership • 4% member discount with a dedicated help desk• No queuing, no paperwork

Europcar Conveniently located car rental and hire

• At least 10% member discount on the best available rate of the day and chau�eur services

• Free weekend upgrades• No queuing; no paperwork

Legacy Lifestyle Gold Membership

Complimentary gold membershipwith Legacy Lifestyle

Rewards for purchasing luxury and niche lifestyle products

Mercedes Benz Guaranteed benefit on your next purchase

• 3% member discount on NEW vehicle purchases • Complimentary premium drive package valued at R60 000

Tsogo Sun Leading hotel group’s Platinum status

• Automatic platinum status which is usually achieved after R20 000 spend• 15% member discount on accommodation, food, beverage,

entertainment and events

365

x4

x4

Membership Benefits Our value proposition for members

365

365

365

365

365

365

Better directors. Better boards. Better business www.iodsa.co.za

x4

± 2-3

3653/

2/

x4MonthlyOn-going Annual

subscription Quarterly

Key:

365 ± 2-3 Approx. 2-3 per month3653/ 3 per annum 2/ Bi-monthly

If you require more information on how to access your benefits,please contact membership@iodsa.co.za

Membership BenefitsOur value proposition for members

Benefit What it is Frequency Description

Contemporary Gazette Complimentary legislative e-publication Legal updates and summaries in a searchable format with key amendments/ highlights of SA legislation

getAbstract Complimentary access to a library of business book summaries Five-page summaries of the latest business books of your choice

The Corporate Report Complimentary e-publication Governance magazine containing articles by leading governance experts

Directorship magazine Complimentary hard-copy and e-publication IoDSA magazine edited by Angela Cherrington

Governance Alerts Complimentary governance alerts • Alert containing guidance on governance topics or themes

E-mag Complimentary electronic newsletter Accessed by over 8000 members

Member induction sessions Information sharing session

Events and networking Networking with other business professionals

• Complimentary attendance to the annual cocktails, member inductions and forum events (SDF, CGN, ACF, REMCO) and the AGM

• Subsidised rates for members 20% off advertised price on all other events

Director Development Programmes

Range of presentations, workshops and courses Subsidised rates for members off the advertised price

Chartered Director Assesses and credits mastery, while enhancing skills of directors Skills evaluation against the Director Competency Framework

Advisory and Board Appraisals Board services Subsidised rates for members off the advertised price

CV search NED portal NED portal

Advertising Promotional platform Subsidised for members of the IoDSA to promote your business or services through our publications

Business Directory A portal for active IoDSA membersTo share their business information or service offerings with other IoDSA members therefore allowing active engagement and opportunities among IoDSA members.

The below benefits apply to full Membership only (not applicable to Associate Membership category):

NED vacancies Complimentary access to available board level positions

Be the first to know about available board positions 4/5 advertised positions are filled by IoDSA members

Sector focus Assists with assessing economic performance of sector

20% discount on economic sectoral analysis and forecasting service through Econometrix

Automobile Association (AA)

Roadside assistance, technical services, fuel, vehicle and travel tips

10% member discount for access to accident assistance, emergency medical assistance and motor-related legal services

AVIS Hassle-free vehicle reservation and collection

• Preferred membership• 4% member discount with a dedicated help desk No queuing, no

paperwork

Europcar Conveniently located car rental and hire

• At least 10% member discount on the best available rate of the day and chauffeur services

• Free weekend upgrades No queuing; no paperwork

Legacy Lifestyle Gold Membership

Complimentary gold membership with Legacy Lifestyle Rewards for purchasing luxury and niche lifestyle products

Mercedes Benz Guaranteed benefit on your next purchase 3% member discount on NEW vehicle purchases

BMW Guaranteed benefit on your next purchase A guaranteed minimum discount of 8% on your next purchase of a new BMW and other service offerings

Tsogo Sun Leading hotel group’s Platinum status

• Automatic platinum status which is usually achieved after R20 000 spend

• 10% Accommodation discount at Luxury and Full Service hotels• 5% Accommodation discount at Select Service hotels• 15% Food and Beverage discount at Tsogo Sun hotel owned

restaurants and bars

If you require more information on how to access your benefits, please contact membership@iodsa.co.za

365

3653/X4

Learn about the IoDSA and how to make use of your benefits

2/

±2-3

365

365

365

365

365

365

365

X4 ±2-3 2/

309 Florida Road, Morningside, DBN139 Greenway Avenue, Greenside, JHB087 720 1280 / 031 521 0698info@etconsult.co.zawww.etconsult.co.za

TURNINGCOMPLIANCE into SUSTAINABLESUCCESS…

TURNINGCOMPLIANCE into SUSTAINABLESUCCESS…FOR YOUR BUSINESSAND OUR COUNTRYFOR YOUR BUSINESSAND OUR COUNTRY

We are changing the perception of B-BBEE and focusing on the success and growth opportunities found in implementing sustainable B-BBEE strategies.

Find out how you can move from tick box exercises to actual impact that creates growth for you and your community.