The 1 May 2015 start date of the Amended Codes was completely overshadowed by the DTI minister announcing that Employee Ownership and Broad Based Ownership schemes would only award 3 points on the Ownership Element. We were very outspoken about this announcement which eventually lead to it being retracted – our articles on the matter are available on our website.
We are very pleased to announce that Keith Levenstein – CEO of EconoBEE has been appointed to the task team appointed by the DTI minister.
|EconoBEE CEO Appointed to DTI Task Team|
Keith Levenstein, CEO of EconoBEE, a BEE advisory firm, has been appointed to the dti task team to examine and report on broad-based BEE schemes.
The task team was established as a consequence of the controversy around ownership notices issued by the minister in May 2015.
Levenstein said there has been concern about Employee Share Option Participation Schemes (ESOPS) and Broad-Based schemes for some time now. “I have been outspoken about some bad schemes and, even though I am often critical of the dti, I like to think I am objective. The minister obviously felt I could add value and I’ve accepted his invitation,” he said.
Levenstein said there is nothing essentially wrong with broad-based schemes per se. “However some have been designed in a way that displays no real ownership. What many people forgot is that a broad-based scheme is firstly an ownership scheme and secondly a broad-based scheme. In some cases companies set up broad-based schemes with no ownership, but they were awarded points. This was wrong.”
“With no actual ownership accruing to the beneficiaries, the scheme has more of the characteristics of a socio-economic development initiative than ownership. Imagine spending a small amount of money on a genuinely good cause, but calling it ownership. This is what is happening.”
Levenstein said that some of the good BEE ownership schemes include…
|Managed Service – Ensuring Future Success|
The Amended Codes is a major change to the BEE environment and as a result needs a major change to the way it gets implemented by companies. The Amended Codes are many magnitudes more difficult than the old codes. Customers are more aware than ever before of their suppliers BEE status. Many customers have even started an internal process to remove low compliant or non-compliant suppliers from their procurement processes.
EconoBEE completely understands the impact of the Amended Codes, but more importantly how to implement it effectively. Our approach to consulting ensures a long term view is always maintained.
Our consultants work predominantly on current data. Using this approach we are able to constantly advise clients on the best way to implement activities. We constantly prompt our clients for information by asking leading, logical questions. In one instance using that approach we assisted a large JSE listed entity improve from an estimated Level 6 to a level 4 within three months due to activities that they did not know they could claim.
In another instance with a large foreign owned business, we identified over R10 million of previously unknown skills development expenditure during a presentation to senior managers explaining BBBEE.
Although sometimes earning additional points is extremely fulfilling, we have also assisted our clients spend their money in a more points efficient manner. We use a cost per point metric which often results in our total consulting cost being absorbed by cost savings while implementing BEE.
Time savings are another considerable benefit to clients. Our large procurement database and call centre agents are able to process over a thousand suppliers per day. Our clients send one email which results in hundreds of hours saved.
Why we achieve success
Perhaps the single most important aspect to our success is our consulting methodology and back end infrastructure. We do not see the job of a consultant as one to assist with a verification at the end. The verification is the last step. Our view is that inorder to achieve success you need to change activities during the year being measured. This means we will spend the vast majority of our time working on a current year to date scorecard. This will show exactly how many points a company has with enough time to implement a new activity. We are able to present this to the board, senior managers and even workers who can implement appropriate activities to earn the desired points during the rest of the year.
Our back end systems compliment this process perfectly. All communication is tracked in a single ticketing system ensuring everyone is on the same page all the time. Our project management system keeps track of any future activity. We are also able to view key pieces of information to pro-actively solve client’s problems early. A report will also be produced showing us which clients have an upcoming year end or if a certificate is expiring, giving us plenty time to implement activities or book an agency.
Our client systems are world class. EconoBEE V4 – our scorecard calculation system allows our consultants and our clients to view the same data simultaneously. BEE Procured – is our BEE scorecard database. Although the database is extremely large, we also have a team of agents who call suppliers, take notes about discussions and reports on this data to clients. It saves a substantial amount of time for clients but also helps them decide on which suppliers to continue supporting, which ones are doing poorly and who is non-responsive.
Our consultants are a team not individuals. This approach allows our consultants to become specialists in their field – strong strategic thinkers, implementation, advise or even excel experts to process data quickly.
Our approach to consulting through Managed Services is an ideal long term solution to BBBEE. Contact us on 011 483 1190 or visit our website for more information.
|EconoServ Expands – Announcing EconoHR|
EconoServ is expanding and we are now applying our successful methodologies and resources to Human Resources.
Our view has always been of a long term nature and of implementing sustainable activities. We have been successful in solving many of our clients BEE problems through our extensive understanding of the BEE industry – we will no doubt add this value to our new venture.
EconoHR is able to assist clients with an HR managed service as well as training sessions. We will be officially launching on 27th August 2015 with a breakfast session at our offices. You are invited to attend.
We have always felt that training is a key component to success. EconoHR will be hosting its first in a series of training courses on the EE act, Basics to Labour law and the Amendments, How to do your EE submissions to DOL, Winning at the CCMA and How to win with dismissals and arbitration.
We have teamed up with an expert in the industry to present the Basics to Labour law and the Amendments course which will cover the legal aspects to the labour relations act, different types of dismissals, the correct procedures and practice for performance and the correct procedures and practice for dismissals. This will be a full day event which will be held at our offices, 435 Rugby Avenue, Ferndale at a cost of R2 500 plus VAT per delegate on 30th September 2015.
Following the Basics to Labour law and the Amendments course we will be hosting a 2 day event on How to win with dismissals and arbitration which will cover all applicable legislation, dismissals in detail, in-depth studies of CCMA cases, Mediation, Arbitration, “Con-Arb” and the detailed workings of the CCMA. This will be a 2 day event which will be held at our offices, 435 Rugby Avenue, Ferndale at a cost of R5 000 plus VAT per delegate on 1st and 2nd October 2015.
A 10% discount will be given should you book for both Basics to Labour law and the Amendments course and How to win with dismissals and arbitration.
Please contact Jarrod on email@example.com or 011 483 1190 to confirm your attendance to our launch breakfast or any of our courses.
Preferential Procurement – Save Time by using the BEE Procured database containing over 70 000 BEE Certificates. Managed Service: Our consultants can phone your suppliers for a BEE certificate – Managed Service.
While there is demand for a B-BBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…
13 August 2015
In this issue
- EconoBEE CEO Appointed to DTI Task Team
- Managed Service – Ensuring Future Success
- EconoBEE Expands – Announcing HR and Enterprise Development
EconoBEE is an expert BEE consultancy. EconoBEE helps businesses Become BEE Compliant, prepare for verification, earn maximum BEE Points and ensure that they achieve the BEE Level they need to get more business.
Our services include BEE Management Systems, Training, EME Pack, Complete Managed Services, consulting and advisory and Procurement Solutions.
As leaders in the industry we are driven to help maintain and develop knowledge in the BEE industry.
Already have a BEE Certificate
Please send it to us and we will include it in our BEE Procured database.
Tel: 011 483 1190
Fax: 011 483 1195
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