January is now over but did offer us a great insight into things to come. The DTI is making strong moves together with the auditing profession to open BEE Verification to the auditing industry. We announced an updated and vastly improved BEEProcured scorecard database and Procurement Managed Service. The Procurement Managed Service will help our clients take a huge load off their shoulders by appointing us as the procurement managers. We will phone suppliers and gather BEE scorecards from them.
On the consulting side we are helping clients earn the points they require. Our managed service approach has proven to be the ideal long term service for clients who are serious about service and serious about their points.
In this newsletter we have a great tutorial for all who are new to BEE and want to follow the right step every step of the way.
|How to Become BEE Compliant – Step by Step|
You need to become BEE compliant but don’t know how or don’t want to spend hours of unproductive time working on it. Perfect, this tutorial will show you how to become BEE compliant using tried and tested techniques explained in practical business friendly terms.
In summary what are we going to achieve:
We want to help you prepare an internal scorecard so that you can gauge your efforts and requirements. Help you earn the remaining points on the scorecard. Prepare the right documentation to avoid conflicts during your BEE Audit. Submit a finalised BEE Certificate to your customers and gain more business.
The Broad Based scorecard is intended to encourage businesses to promote economic growth amongst the black population. The key here is firstly encourage and secondly promote economic growth. This is done by offering an incentive through additional business. Economic growth ultimately begins with skills development which involves training and development, through Employment Equity and ends with new businesses being developed and thriving.
What do you need!
- Ownership – who are the shareholders of your business. Include if applicable, shareholders name, % shareholding, BEE Status, Gender, Nationality and payment schedule of shares.
- Management & Employment Equity – Complete list of all employees and directors. List should include; Job category, BEE status, gender, nationality and disability status
- Skills Development – List of all training provided for all staff. include type of training, amount, description of training outcome and employees name
- Preferential Procurement – List of all suppliers, spend with supplier and their BEE Status
- Enterprise Development – List of all businesses who were assisted throughout the year. Include; company name, BEE Status, Ownership status, spend and type of contribution.
- Socio-economic Development – List of all charities you contributed to. Include the % of black beneficiaries, the spend and type of contribution.
- Documentation File – Create a file for all of your documentation
Step 1 – Understand the scorecard. You don’t need to be an expert on BEE but it is very important for you to understand what you have done in your business to earn points and what you can do in future to earn additional points. To gather an overview of the BEE Codes of Good Practice read our “5 min crash course to BEE” or attend one of a number BEE training sessions we have on offer.
Use the time you spend gathering your documentation to understand your businesses BEE Status and how each item you gather affects your BEE Scorecard. Please remember the scorecard works through a series of targets and failing to reach some targets will not harm your businesses BEE status substantially.
Step 2 – Where will you be affected? Each element on the BEE scorecard affects different businesses in different ways. Ownership is often required when dealing with larger corporates or government yet others will require a higher score without worrying about the elements that were used. Compare yourself to your competitors and then what your customers require. If you can beat your competitor you most likely will still have a good chance at earning the business.
Step 3 – How can you earn points? Once you know the impact of each aspect on your business it is now time to start earning points.
- Ownership points are earned by selling shares to black people.
- Management points are earned by appointing top managers and directors
- Employment Equity Points are earned by employing junior/middle/senior managers and for smaller businesses black workers
- Skills Development points are earned by training employees through on the job training or formal training
- Preferential Procurement points are earned by purchasing goods and services from other businesses with a good BEE Scorecard
- Enterprise Development points are earned by assisting smaller black owned businesses grow
- Socio-economic Development points are earned by supporting black social causes
Step 4 – Collect documents and start earning points. It is now time for you to gather evidence to substantiate your BEE status. Spending additional time on this step is well worth the effort because any time spent here is saved in gathering the data later on during the final audit.
Step 5 – Calculate an initial BEE Scorecard. Use a good BEE Scorecard calculator. Many are simple spreadsheets or low level applications that build basic detail into the calculation. An incorrect calculation could leave you thinking you will do better than you actually will.
Step 6 – Create a strategy report. Now that you know how many points you have earned you now need to find a way to earn the remaining points. Consider the availability of the points and the cost of each point before embarking on a “points scavenger hunt”. This strategy should include your year end points as well as your future scorecard points.
Step 7 – Earn points based on the strategy. Follow your strategy and implement the items you diligently strategised. During the implementation phase ensure that all of the final decisions make business sense and BEE sense.
Step 8 – Prepare final scorecard rating. Update your scorecard calculation with all of the newly implemented transactions.
Step 9 – Find additional points through a re-check process. If you require additional points find other avenues to do so. In many instances the easy points are not enough. Re-assess your status before moving onto the next stage.
Step 10 – Scorecard Audit. BEE Verification can be extremely stressful. In-particular when the agency has a different interpretation or as is the case so often do not fully understand the impact of their decisions. If you have prepared well then you will have less difficulties. Always remember the regulator who accredited the verification agency must follow certain disciplinary procedures if the service is not appropriate. An appeal is always an option and can be done after the scorecard has been issued.
EconoBEE is a BEE Consultancy. We created the 10 Steps to BEE to help businesses follow a simple yet highly effective approach to become BEE Compliant. Our Complete Managed Service will help you, through a high level in-depth consulting process, achieve your BEE Goals. We will become your “out sourced” BEE Department capable of assisting you in all areas of the BEE Scorecard. Our software tools have been expertly designed to ensure quick service delivery and accuracy every time.
Contact our offices today on 011 483 1190 or firstname.lastname@example.org. More information about EconoBEE is available on our website www.econobee.co.za.
Prepare a strategy for 2011. Measure, update and focus on BEE throughout the year. Create your strategy now and ensure the score your customers require is the scorecard you achieve. Our managed service will help you achieve your long term goals. Contact us.
Exempt Micro Enterprises (EMEs), turnover below R5 million per annum – exempt from BEE more info…
How to be “verification Ready” and earn more points?
Not sure how to get a BEE Scorecard, click here to see a demonstration of how best to produce your own BEE scorecard.
While there is demand for a B-BBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…
01 February 2011
In this issue
- How to Become BEE Compliant – Step by Step
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, Completely 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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