BEEverified.pngIt has come as a shock to many companies that the DTi plans to have the new codes of good practise published any day now, under which organisations have a 12-month transitional period to align themselves and ensure compliance to these codes.  Purchasing Index (PI) is concerned that many organisations are unaware of the impact the change will have, and what is needed to maintain their BBBEE positions, in this month’s SmartProcurement

Q) Will this have an impact on your business?
91%* of respondents indicated that the revision in these codes would result in a drop in their current BEE score.

Q) Do customers or consumers really care about your BEE score?
51%* of respondents indicated that their customers required them to have a BEE level of three, or higher, and a drop in their score will influence the way clients perceive their business.

(*KPMG’s seventh, annual, Black Economic Empowerment survey, 2013)

This is important to my business, what do I need to do next?

As organisations begin to realise the significant impact this will have on their BEE score, and the overall performance of the business, they are grappling with the next fundamental question… What can I do to meet these challenges?

How does your organisation get the data together to quickly identify gaps and opportunities in the current score, and make the changes it needs to improve its BEE performance? This is complex – as much of the information is fragmented – hosted in silo systems, excel spreadsheets, etc., in various areas of the business.

What do I do once I have a consolidated view of this? BEE reports are generally issued in a static format, and at a high level (showing overall performance of the organisation across each pillar). What companies need is a way to interactively drill down on this and look at the performance at a more granular level, such as business unit/department (BU/D), to address some of the gaps in performance, and to then put a targeted strategy in place for addressing these.

What if the new scores are implemented in the current proposed form? Can you do on-the-fly ‘what if’ analysis to understand the impact various scenarios may have in improving the companies BEE score? (i.e. hiring a certain number of BEE suitable candidates, making better use of BO supplier businesses, etc.)

When seeking a solution to these challenges, organisations need to identify suitable analytics solutions that assist in empowering people to drive the change needed within their companies; to ensure sustained levels of BBBEE performance:

  • Know your (BBBEE) status at all times – by BU, division, subsidiary company, etc.
  • Be able to perform ‘what if’ analysis to build your transformation strategy (both now and for future code revisions!)
  • Be able to set targets and achieve goals in each of the pillars by division, etc.
  • Deploy personnel to more value-added activities (rather than spending weeks trying to put all the information together, retrospectively).

PI provides transformation analytics through its TransformationTrak solution. For more information on this dynamic service, please contact Joshua Low on joshua@pibenchmark.co.za