How much impact should companies be making to rebuild the economy and what do BEE solutions of great impact look like in this context? Look to business performance and skills specialist Gestalt for compelling answers.
There is significant new value on the Black Economic Empowerment (BEE) table that can be realised in South Africa if all transformation programmes were to be tied back to the bottom line.
Companies can eradicate wastage and maximise economic and social impact, which as a rule, tends to result naturally in the unlocking of cost savings. Any expense that is made purely to gain BEE points with no real business benefit is a wastage.
This begs the question, “If a company can invest less in transformation and skills development to reach and impact more people, with more relevance, how much value is being left on the table if businesses operating in South Africa were to invest at their current levels – but were to do it correctly?”
Cases in point for partnering with Gestalt for BEE impact
Consider the case of a mid-sized technology company with an investment of R3.74mn into its BEE Programme. In restructuring the programme with consultant Gestalt, the entity secured 82% of its total Skills Development points from just 15% of this spend.
This, in turn, enabled the company to make an even bigger difference as it could reach more people, with more relevant skills development, through the balance of its budget.
By way of a second example, an entity in the Industrial sector moved from being a Level 8 to a Level 2 BEE Contributor by unlocking 70% of its points through just 28% of its skills budget and a few cost-effective strategic interventions.
Such cases indicate the commonality of a fundamental error in how companies are applying the BEE Codes and as a result, inherent wastage. There is therefore an opportunity to make a far greater contribution, through transformation programmes, to rebalance and reboot the economy.
Category B skills programmes are anything but Plan B
Businesses should seriously consider the importance of Category B courses in annual skills development programmes, particularly as skills development comprises the highest levels of spend on the BEE scorecard.
Bert van Zyl, Group Sales Manager at Gestalt explained that the focus needs to fall on ensuring that employees are learning the right skills, and not merely just gaining generic skills.
He added, “We customise programmes for clients, applying both our understanding of transformation levels, the legal requirements within the Codes and the complexity in the training. It is possible to unlock so much more potential within your people and drop your scorecard level at the same time.”
Gestalt has many examples of cases in which it is proven that there is no ‘either-or’ but rather a real win-win through investing in employees and communities through relevant training as well as leadership and people development.
For example, bespoke managerial development programmes (Category B Programme) were developed by Gestalt in partnership with a long-standing university in the country. These programmes are particularly popular with companies looking at ways to develop the skills and competence of their management teams across the board.
Comparatively in the case of a renowned multinational operating in the Automotive sector, Gestalt localised the company’s overseas skills development programmes and secured local accreditation for this course material. Over 40 suppliers were reached through this Category B Programme that included key local Project Management course content, which was core to making the training applicable to candidates’ jobs.
Gestalt has developed more than 450 leveraged Category B and C training programmes. As such, the firm adds credibility and viability to the case of approaching skills development with relevance. We believe them when they say, “There is great good – socially, economically and commercially – that emerges from doing BEE the right way.”
About Gestalt
Gestalt has delivered profitable growth through applying original B-BBEE strategies for 24 years. The firm exists to help businesses unravel the complexities of transformation and skills development. It designs sustainable business growth and transformation strategies in the spirit and the letter of BEE to better companies and its beneficiaries. More than a consultancy, it is an end-to-end partner that unlocks business growth and shareholder value through BEE. Learn more at www.gestaltconsult.com.
