The Transitional Period

The transitional period was due to expire one year after the codes were issued, i.e. 9th February 2008. The minister has extended the transitional period for another 6 months.

During the transitional period a measured entity has the right to decide to use either the transitional calculation or the applicable scorecard – generic or QSE. (See paragraph 11 of Code 000, statement 000 and paragraph 1.4 of Statement 800, Code 800 of the codes of good practice).

How does it work?

If a generic company chooses to use the transitional scorecard, it is allowed to calculate its ownership and management scores as per the usual method given in the codes, and multiply that score by 1.92. A generic can potentially earn 23 points from ownership and 11 points from management – a theoretical maximum of 34 points. If it earns no extra points, or chooses to earn no further points, it can multiply those points by 1.92 to achieve 65.28 points – ie achieve level 4 status.

On the other hand a QSE can potentially earn 28 points on ownership and 27 on management. If it chooses to apply the transitional scorecard it can multiply its score by 1.18, to achieve 64.9 points. If we round this up to 65, it will also be level 4 status.

Commentary:

1) The measured entity can elect to use the transitional scorecard – this cannot be forced onto you by  your supplier or government.

2) The only entities who would logically choose this scorecard would be black or substantially black owned and managed companies – else your score would be very low.

3) An entity would probably want to use this scorecard if it is very difficult to calculate the rest of its scorecard. There is probably a link between the date of accreditation of verification agencies and the extension of this transitional period.

4) This extension does not imply that an entity has to or does not have to produce a scorecard. If your customer wants a scorecard you can choose which one to supply him.

You may also like...