CEO leadership will drive South Africa forward

For many years, South African SOEs have been viewed as organs of the state and were somehow different to other companies. However, let’s look at the performances of Eskom, Transnet and the distress experienced by the South African Post Office. It is becoming clear that these companies are experiencing the same problems as all companies.

If South Africa wants to realise the growth envisioned in the National Development Plan, we need strong leadership in key organisations.

Abysmal service delivery

South Africa suffers from “abysmal” levels of service delivery, primarily due to cadre deployment and having people in charge who are unskilled or unqualified for their positions, Business Leadership South Africa CEO, Busi Mavuso told Business Tech.

She said this needs to change, adding that having skilled, professional leaders in government isn’t a nice to have, it’s something mandated in the Consitution.

“It’s a constitutional prerequisite that public administration must maintain a high level of professionalism,” she said.

“The way to develop an efficient and professional civil service is to appoint people with integrity who are suitably qualified for their roles.”

The article points out that Mavuso reflected on a promise made by President Cyril Ramaphosa in July, where he vowed to hold ministers and deputy ministers to account if they had not addressed, met and executed the priority areas that had been set for them.

Key meetings

The article adds that Mavuso said that Ramaphosa would be meeting them over the next six months and would not “accept any excuses or explanations”.

“Such a clean-up at the top levels of Government goes hand in hand with the work to professionalise the entire public service – an ambitious but very worthwhile project given the abysmal state of service delivery in large parts of the country,” Mavuso said.

However, transforming South Africa’s governance structures is a much bigger task than simply moving people around – particularly when considering the collapse of local government and the immense damage already done.

Starting at the top

The article adds that Mavuso said that starting at the top will make a significant difference.

“If there is no accountability at the top levels of leadership, particularly for not fulfilling mandates, it will be impossible to raise the standards in the tiers of leadership that fall under them.”

The article points out that Mavuso said that the professionalization of government should be a key priority, noting that without competent leaders and workers, all of the government’s projects are doomed to fail.

Using the National Health Insurance (NHI) scheme as an example, the CEO said that even if the scheme were fit for purpose – which it is not – it would still end in failure if standards throughout public healthcare were not met.

“The key is accountability. If leaders at the top are held accountable for not performing the functions and duties they’re supposed to, the galvanising effect at lower levels will be remarkable,” she said.

“Over the years, the government has made numerous attempts to address the problem. None have been seen through.”

She said that BLSA is pushing for several solutions to the problem, including:

• Performance-based assessments;
• Minimum competencies for municipal officials;
• Ongoing skills training;
• Alignment of accounting, procurement and governance systems to international best practices and private sector regulations;
• Strong performance management procedures.
• “All these measures align with the professionalisation framework’s goals of curbing systemic corruption in the public sector across all spheres of government and where the recruitment of public servants is based on competence and ethical disposition, as opposed to unethical personal and political interests,” she said.

Innovation is important

If one looks at the current performance of SOEs, it is apparent that they are struggling to address the challenges that will allow them to keep up-to-date with trends that are currently driving the business operating environment.

This requires significant innovation:

• Value each other’s ideas. The article points out that, in your team, create a culture where everyone is unafraid of throwing in ideas no matter how unconventional it may seem. It should feel like everybody’s opinion is equally valued regardless of positions held in the organisation. An environment like this boosts confidence of each individual to come up with even more brilliant ideas;
• Promote diversity. The article adds that, if you’re looking at building a team to work on a specific project, try as much as possible to include a diverse set of individuals. This may be in terms of skills, experience, personality, or even seniority. Differences allows each member to learn from the other. Don’t worry about opinions clashing. Divergency in ideas, so long as done in a civil manner, results to creative output;
• Set bounded freedom. The article points out that this may be counter-intuitive, but sometimes, being too traditional in the way you do things hinders members from achieving their maximum productivity. As every individual has his or her own ways of accomplishing a goal, why not allow them the leeway to do their tasks in whatever they feel works best for them? Think of this, an atmosphere of freedom opens up doors for innovation. This, of course, doesn’t save them from deadlines and targets. In order to challenge their creativity, you still have to set a specific goal for them to reach;
• Encourage continuous learning. The article adds that, in fostering an environment of creative-thinkers, you have to encourage your team to take the time, effort, and corresponding risks to learn new skills. Cliche as it may sound, but getting out of your comfort zone and trying out things you’ve never done before opens your world up to a pool of new and exciting ideas; and
• Encourage a collaborative environment. The article points out that being by oneself doesn’t foster creativity. Having teammates to work around with does. It motivates constructive criticisms, enables the polishing of ideas, and encourages new learning. In connection with continuous learning, why not take some time off of work to try out new activities with the whole team? Check out some unique activities around Singapore like Team Music, a one-of-a-kind music-oriented corporate team building.

Strong leadership is key

This is not a political post or a criticism of Government; it is an honest assessment of what needs to be achieved in order to fast-track economic growth.

For too long, the business sector has been looking at what needs to happen in an ideal operating environment instead of dealing with the elephant in the room. Companies need strong leadership candidates who are both inspired and able to make tough decisions that may not be popular with pragmatists.

Phahlani Mkhombo is the MD of Genesis Corporate Solutions and is a Senior Business Rescue Practitioner.