Communication

Communication’s strategic role came into sharp focus as the Group reached out to a fifth continent – South America. Growth and diversification continue at pace with communication firmly in place as the adhesive to keep us cohesive.

Bidvoice remains an important tool. To build unity and a sense of inclusivity, the chief executive’s message and the cover story in the quarterly staff publication are now translated from English into six other languages: Business Mandarin, French, Dutch, Czech, Polish and Spanish (for new colleagues at Deli Meals in Chile).

Print is increasingly complemented by other channels.

Bidvoice goes to Bidvest readers worldwide with over 32 000 printed copies as well as an e-book available on the Bidvest website. Almost 87 000 Bidvest employees are now registered on the Bidvest intranet (up from 2 000 six years ago). That still leaves a shortfall of 20 000 staff. Yet almost everyone has access to a cell phone. SMS and other messaging tools will therefore receive continued attention.

The ‘Business Unusual’ management conference in Dubai was an opportunity to explore social media and mobile technology. New media not only featured on the agenda, practical applications were showcased.

Delegates kept colleagues back home updated on conference topics via blogs. Questions and input from their teams were also posted. Blogging at 25 sites put the ‘Business Unusual’ proposition to work well ahead of face-to-face feedback within local operations.

The communication team continues to monitor developments on Facebook, Twitter, YouTube and similar sites as social interaction linked to mobile tools could become a vital means of tapping staff input.

Unlocking the power of networking emerged as a key theme during the year.

Video conferencing is increasingly adopted by disparate management teams, though language and time-zone constraints impede everyday use.

Additional mechanisms are being explored such as interest groups and forums as networking can formalise Group-wide information sharing. The establishment of FB, marketing, sustainability and other forums will be investigated.

Sharing information across sustainability committees has demonstrated the potential for rolling out industry best practice at much faster pace.

Our Group is made up of leaders, but they don’t all lead in the same things. Tapping the best ideas of all is a key sustainability challenge.

Information gathering for the annual report creates opportunities to share best practice. For instance, the annual sustainability assurance audit creates opportunties to identify possibilities where sustainability initiatives can underpin business strategy and hopefully lead to new and innovative
solutions.

Ideas highlighting commercial opportunities are already communicated across the Group through management and board reports. But growing data streams across all businesses create the potential for a constant flow of new ideas. Bidvest best practice can assure competitive advantage not in one, but in multiple markets.

These possibilities will receive focused attention in the year ahead.

Transformation

Progress to a transformed future was maintained and Bidvest retained its status as a level 3 contributor to broad-based black economic empowerment. Across the Group empowerment scores were maintained or improved.

A step-change is evident within operational businesses. Until recently, their principal challenge was progression from level 4 to level 3. At many businesses those gains have now bedded in and they are preparing for the move to level 2.

One driver was the restructure of Bidvest South Africa into 10 divisions. Accountable managers close to every operation are able to give focused attention to empowerment as a business imperative, ensuring prompt action.

Attitudinal change is another driver. Site visits and feedback indicate that B-BBEE is nowhere viewed as a compliance chore and a matter of achieving the numbers. Empowerment is seen as an opportunity. CSI spend, for example, has become a means of achieving community involvement and building local staff pride.

The principal challenge relates to the representation of senior black staff. Management skills and an industry-specific IQ are learned by gaining experience as opposed to a tertiary institutional process. Despite a concerted effort, many companies have difficulty transforming the upper management tiers. Bidvest managers commit to a long-term career path and may remain in senior positions for several years. Lack of ‘churn’ is good for the business, but slows the effort to fast-track black talent. Employee training and development continue, enabling us to create a strong talent pipeline. The issue has been identified as a strategic challenge requiring long-term programmes.

The board’s mid-year creation of a social and ethics committee will further strengthen transformation. The new body complements the work of the transformation and sustainability committees and will ensure an integrated approach to all areas influencing sustainable business practice.

The major challenge at Group level – with knock-on effects across several divisions – involved the mismatch between the
broad-based guidelines of the DTI’s Codes of Good Practice and the requirements of the Mining Charter, which applies different standards and definitions.

The challenge became an opportunity to develop closer understanding with the mining houses and was successfully resolved.

The issue arose late in the prior period when the share buy-back to enable Dinatla to realise value resulted in a drop in the empowerment consortium’s ownership of Bidvest from 28% to 21%. The Mining Charter demands a minimum of 25% black ownership of all suppliers. For a time, divisional businesses could not tender for new work from the mines.

This prompted a thorough review of Bidvest’s B-BBEE ownership. New calculations and independent verification show that consolidated black ownership stands at 25,77%.

A pleasing aspect of close contact with major resource groups over several weeks was the feedback that mining customers appreciate Bidvest’s proactive and broad- based approach to empowerment.

Transformation wins and retains customers. This insight will inform continued empowerment efforts in the year ahead.

Bidvest Academy

The Academy’s tenth intake (56 candidates) was enrolled in January and February at pre-Academy workshops after a comprehensive act of reinvention. Change to the leadership development programme was shaped by current and future business needs as identified in the newly formed divisions in Bidvest South Africa and Bidvest Food Southern Africa.

The Academy has been streamlined in consultation with Group executives and senior divisional managers.

Content is now assembled into two study blocks rather than three. Each culminates in a weeklong workshop (one in Durban, one in Johannesburg), followed at the end of the course by project presentations to senior executives.

Input comes from a wider range of facilitators, enabling in-depth treatment of subjects. Focus areas are leadership (self and others), strategy, finance, innovation and the global business context. The Academy continues to place emphasis on practical business skills, using case studies and business simulations.

The new-look Academy was well received by participants and senior executives.

In the second half, work began on the design of an executive development programme for senior staff with the potential to take on leadership roles at divisional and Group level. Criteria for entry and identification of candidates for the initial programme were largely complete by year-end.

The initiative – in association with the Gordon Institute of Business Science – will be launched early in the new period.

The programme is a crucial building block that will ensure the base of leadership skills is constantly reinforced at Bidvest. It adds a new, more formal dimension to the mentoring and coaching of high potential managers at operational level.