tsebo solutions group - amcham

Tsebo Solutions Group Company BBBEE Overview

“Leading Corporate South Africa in Social

Transformation” 6 April 2016

Tsebo Solutions Group – The company behind the best companies in Africa

7 April 2016 | Slide 2 Tsebo BEE Level 1

Our People Are Not Our Most Important Asset, They Are Our ONLY Asset

Investment in sponsoring 150 managers on post-graduate MBA/ MAP studies

Culture of Personal Recognition down to unit level

Massive community-based supplier development

programmes in rural areas

Industry leader in development of disabled staff (2.3% of workforce)

Vibrant company Foundation that supports communities

Leader in corporate SA on BEE – first large corporate to

receive Level 1 on new codes

Largest skills developer in the industry – 35,000 staff trained – last 3 years


We have Achieved Level One On The Amended BEE Codes (2015)

500 learnerships, focused heavily on disabled and youth

Specific programmes for unemployed candidates, upskilling them for formal employment

A huge sustained focus on employment and upskilling of disabled individuals

Management mentoring programmes for middle and senior managers to upskill black junior managers through on the job training

Complete restructuring of the Group shareholding, bringing in local women's Trust that is grassroots owned

Implementation of a massive supplier development programme for qses and emes to enable them to become competitive suppliers to us in the next 12 months on key commodities such as protein, fresh produce and dairy

Significant increases in spend and resource focused on induction, training and development of existing suppliers, to enable them to scale up

Redeploying the Tsebo foundation as a vehicle for support emerging small suppliers (100% funded by the Tsebo group).


… And Changed Many Lives Along The Way

Structured Career Progression

We offer a fully-fledged career in Facilities

Management where people operate “in the core” of the business and encouraged to

rise

Skills development Tsebo scored 80% of maximum on the BEE Skills Development

scorecard.

Increased Job Security

Tsebo have the scale to move staff and managers between contracts, thus minimising the risk of them being retrenched

Remuneration All staff receive industry salaries and full benefits

packages (provident, medical aid, life cover, bonuses)

5 former Barclays tea ladies are now

floor managers

Former CRES receptionist now Snr

FM on a large site

Filing clerk developed to

Finance Manager

Helpdesk operator climbed to snr FM

on medium site

5/15 disabled learners promoted to supervisor/jnr

managers

Logistics labourer now a floor manager at

Towers North

Sandton portfolio Manager was admin

clerk 2 years ago


Lessons we have learned


Get and stay granular and frequent 1.

Absolute visible leadership commitment 2.

Form a tight team with BEE consultants & rating agency 3.

Close all the loopholes 4.

FORECAST VS ACHIEVED

Levels Element Weighting Tsebo

Level 1

100%

Ownership 23 22.33

Level 2

85%-99%

Mgt Control 10 7.64

Level 3

75-85%

Emp Equity 15 8.91

Level 4

65-75%

Pref

Procurement

20 18.56

Level 5

55-65%

Skills

Development

15 9.87

Level 6

45-55%

Ent

Development

15 15

Level 7

40-45%

Socio-Eco

Development

5 5

103 85.4%

Level 2

OLD CODES

Levels Element Weighting Tsebo

Level 1

+100%

Ownership 25 23

Level 2

95-100%

Mgt Control and

Emp equity

19 13

Level 3

90-95%

Skills

Development

25 15

Level 4

80-90%

Ent & Supplier

Development

44 17

Level 5

75-80%

Socio-Eco

Development

5 5

Level 6

70-75%

Level 7

55-70%

118 73% Level 5

NEW CODES

If We Had Done Nothing!

23

15

18

34

5

95% Level 2

TSEBO TARGET

25

15

20

40

5

100% Level 1

TSEBO ACHIEVED


THE TSEBO SCORECARD UNPACKED

INDICATOR PTS TARGETS %

ACHIEVED POINTS

ACHIEVED

VOTING RIGHTS

Exercisable voting rights in the hands of black people 4 20% + 1

vote 83.21% 4.00

Exercisable voting rights in the hands of black women 2 10% 37.97% 2.00

ECONOMIC INTEREST

Economic interest in the entity to which black people are entitled 4 25% 54.43% 4.00

Economic interest black women in the enterprise 2 10% 37.19% 2.00

Economic interest of black natural people: 1. Black designated groups; 2. Black participants in employee ownership schemes; 3. Black people in broadbased ownership scheme; 4. Black participants in co-operative's

3 3% 34.19% 3.00

New entrants 2 2% 37.69% 2.00

Net value 8 Refer to Annexe

C 54.43% 8.00

TOTAL OWNERSHIP 25

OWNERSHIP TSEBO SCORECARD • Tsebo is more than 51% black-owned

making us a Black-owned company

• Tsebo is more than 30% black women-owned making us ALSO a Black women-owned company

• Tsebo’s ownership includes broad-based groups and new entrants giving us full points for Ownership

• Value of TRUE black economic interest after DEBT




ACHIEVED POINTS

ACHIEVED

BOARD PARTICIPATION

Exercisable voting rights of black board members 2 50% 60.00% 2.00

Exercisable voting rights of black female board members 1 25% 40.00% 1.00

Black Executive directors as a percentage 2 50% 50.00% 2.00

Black Female Executive directors 1 25% 0.00% 0.00

OTHER EXECUTIVE MANAGEMENT

Black Executive management 2 60% 40.00% 1.33

Black Female Executive management 1 30% 17.14% 0.57

SENIOR MANAGEMENT

Black employees in Senior Management 2 60% 26.5% 0.53

Black Female employees in Senior Management 1 30% 24.0% 0.24

MIDDLE MANAGEMENT

Black employees in Middle Management 2 75% 54% 1.08

Black Female employees in Middle Management 1 38% 39% 0.39

JUNIOR MANAGEMENT

Black employees in Junior Management 1 88% 81% 0.81

Black Female employees in Junior Management 1 44% 68% 1.00

EMPLOYEES WITH DIABILITIES

Black employees with disabilities 2 2% 63% 1.25

TOTAL – MANAGEMENT CONTROL 19

TSEBO SCORECARD Representation of the FULL Tsebo Board Executive Directorship of the Tsebo Board Senior executives Senior management Middle management Junior management Disabled people

MANAGEMENT CONTROL




ACHIEVED POINTS

ACHIEVED

SKILLS DEVELOPMENT EXPENDITURE OF ANY PROGRAMMES IN THE LEARNING PROGRAM MATRIX FOR BLACK PEOPLE AS A PERCENTAGE OF LEVIABLE AMOUNT

Skills development expenditure for black people 8 6% 39.3% 3.15

Skills development expenditure for black people employees with disabilities

4 0.30% 72% 2.87

LEARNERSHIP,APPRENTICESHIPS AND INTERNSHIPS

Number of black people participating in learnerships, apprenticeships and internships as a percentage of total employees

4 2.5% 95.5% 3.82

Number of black unemployed people participating in training specified in the learning programme matrix as a percentage on numbers on employees

4 2.5% 45.5% 1.82

BONUS

Number of black people absorbed by the measured and industry entity as the end of the learnerships programme

5 100% 100% 5.00

TOTAL SKILLS DEVELOPMENT 25

TSEBO SCORECARD • Tsebo has an in-house Academy

that provides a world-class skills training

• Total people trained last year 15,000 (95% black, 70% female)

• 500 learnerships, focused heavily on disabled and youth

• GIBS Middle management

Programme …………………………………………………………. • GIBS Senior Leadership

Programme

• Every person trained has been employed in the business

SKILLS DEVELOPMENT




ACHIEVED POINTS

ACHIEVED

PREFERENTIAL PROCUREMENT

B-BBEE Procurement spend from all empowering suppliers 5 80% 102.54% 5.00

B-BBEE Procurement spend from all empowering suppliers that are qualifying small enterprises

3 15% 24.81% 3.00

B-BBEE Procurement spend from all exempted micro-enterprises 4 15% 11.79% 3.15

B-BBEE Procurement spend from all empowering suppliers that are at least 51% black owned

9 40% 40.03% 9.00

B-BBEE Procurement spend from all empowering suppliers that are at least 30% black women owned

4 12% 13.47% 4.00

BONUS POINTS

B-BBEE Procurement spend from designated group suppliers that are at least 51% black owned

2 2% 0.00% 0.00

SUPPLIER DEVELOPMENT

Annual value of all suppliers development contribution made by the measured entity 10

2% of NPAT (or indicative

profit

2.74% 10.00

ENTERPRISE DEVELOPMENT

Annual value on Enterprise development contribution and sector specific programmes 5

1% of NPAT (or indicative

profit)

1.44% 5.00

BONUS POINTS

Bonus point on graduation of one or more Enterprise development beneficiaries to graduate to the supplier development level

1 0.00% 0.00% 1.00

Bonus point for creating one or more jobs directly as a result of supplier development and Enterprise development initiatives by measured entity

1 0.00% 0.00% 1.00

TOTAL – ENTERPRISE AND SUPPLIER DEVELOPMENT 44

TSEBO SCORECARD • Due to “multiplier effect”

• Strong support for small

businesses

• Strong support for Empowered Black Companies

• Tsebo Supplier Excellence

programme to build black supplier skills, technology and responsiveness

• Director grassroots support

for fledgling businesses

ENTERPRISE AND SUPPLIER DEVELOPMENT


How to manage it


• Use a monthly forecasting process, aligned to management accounts

• Top-level Monthly Steercom, reporting to the Board

• High level of personal financial incentive



• Every operational steercom

• Every board meeting

• Every management meeting agenda

• Every managers KPI



• Use both together to plots the “gaps to close”

• Include both in the preparation for every decision

• Gain their commitment to every actions BEFORE implementing



• Map business and HR processes to look for gaps

• Close these gaps with policy and discipline

• Report everything to Exco / Board

The 5th Principle – Balancing Quantitative with Qualitative

Deep understanding of

operating within African

societies

Our genuine love of our continent

with its diversity of

traditions, cultures, geographies

and religions means we

understand how to provide

authentic, sustainable

community upliftment, skills

transfer, job creation, local

procurement that makes a real

impact on peoples lives

Ingrained commercial and

Operating DNA that reflects

country Best-in-Class

Operational delivery standards by

industry, health and safety, financial

management procedures,

transparency, tax management,

labour management, ethics

procedures, training and skills

building, use of technology delivering

to global best practice

CULTURE PLANNING


Tsebo Solutions Group Company BBBEE Overview

“Leading Corporate South Africa in Social

Transformation” 6 April 2016

tsebo solutions group - amcham

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