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Solutions

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Broad Based B-BBEE in South Africa lies at the core of the NPI Governance Consulting offering. Our Service offering is unique/tailored to the Client’s needs and includes:

  • Strategic Transformation Planning and Implementation
  • Verification Scorecard Management and Support
  • Support for Multinational Clients
  • Specialized Consulting Services

B-BBEE SCORECARD ELEMENTS

Strategic Transformation Planning and Implementation

Our B-BBEE strategic interventions align measurable outcomes, competitive advantages and socio-economic objectives in a manner that is both value-adding to the client’s business and integrated into its overall strategic plan. New business opportunities are sometimes hidden in data sources that extend beyond the client’s data warehouse. NPI Governance Consulting mines these opportunities by exploring both structured and unstructured data within and beyond the enterprise.  Our preferred approach is to facilitate a forward-thinking view (3 to 5 years) of the Organization’s transformation expectations; as reflected in their B-BBEE scorecard and work back to current state culminating in an annual action plan.

strategic tranformation

Verification Scorecard Management

Working very closely with our clients and verification agencies, NPI Governance Consulting has earned an excellent track record of ensuring that the verification process runs smoothly. We secure the highest possible B-BBEE Contributor status.

We prepare the organization for Verification. This includes:

  • Identifying the team within the organization that is responsible for successfully obtaining a Verification Status.
  • Educating the team on the requirements across all deemed measures for verification.
  • Advising on the optimum approach for the organization across all measures and the expected level of B-BBEE attainment.
  • We facilitate an internal process of data collection within the organizations, leading to the preparation of a verification file for submission to the Verification Agency.
  •  Ensuring that transparent and professional data on B-BBEE compliance is presented to the verification agency.

Sound execution and strategy are inseparable for success. We implement solutions that achieve both.

Support for Multinational Clients

Whilst adhering to international social responsibility obligations, B-BBEE presents its own unique challenges. For this reason, multinational groups operating in South Africa for the first time, often experience some difficulty in adjusting their businesses to the required B-BBEE compliance status.

Having worked with multinationals since 1999, NPI Governance Consulting has a solid understanding of the challenges they are faced with. Our role includes B-BBEE compliance education as well as aligning good corporate governance and business objectives with the government’s requirements.

OWNERSHIP SOLUTIONS

Ownership forms an integral part of the B-BBEE scorecard. When the sub-minimum requirement is not met, it can result in a discount of at least one B-BBEE point and possible non-compliance status.

Our bespoke ownership solutions offering encompasses project design, implementation, management, activation and fulfilment leading up to verification. These include:

  • Equity equivalent programme management and administration
  • Employee share scheme ownership programme (ESOP)
  • Fund administration and management
  • Broad-based ownership participation schemes (BBOPS) administration and management

MANAGEMENT CONTROL SOLUTIONS

This concerns the extent of management control exercised by black people within an organization. We ensure that our clients are aligned to this crucial element. Based on assessment outcomes and a thorough needs analysis, we research, recruit and select qualified, experienced multi-industry candidates. Full service compliance deliverables include the following:

  • Employment equity consulting and reporting
  • Employment equity plan development
  • EE committee establishment
  • EE training
  • Legal and regulatory compliance
  • Recruitment consulting policies and procedures
  • Sourcing and head-hunting board participation candidates

SKILLS DEVELOPMENT

The Skills Development element measures the extent to which employers carry out the initiatives designed to develop the competencies of Black employees and Black people internally and externally. In line with the Skills Development Act 97 of 1998, NPI espouses the following:

Creative_Workflow_Diagramm

  • Workplace skills planning, development and implementation
  • Annual training report submission
  • Quarterly skills reporting
  • Skills audit coordination
  • Skills committee establishment
  • Skills committee training 
  • Learnership sourcing and implementation
  • Disabilities integration and advisory
  • SETA registration and administration process management

ENTERPRISE AND SUPPLIER DEVELOPMENT SOLUTIONS

This element measures the extent to which enterprises carry out enterprise development initiatives intended to assist and accelerate the growth and sustainability of black enterprises. 1 % of Net Profit After Tax is committed to Economic Development spend.

We assist with:

  • ED advisory
  • SMME beneficiary identification
  • SMME project planning and development
  • SMME Accelerator Program
  • ED Fund management

SUPPLIER DEVELOPMENT

This element measures the extent to which entities buy good services from Empowering suppliers, with strong B-BBEE recognition levels. 2% of Net Profit After Tax is committed to Supplier Development spend.

  • Data collection of suppliers’ B-BBEE certificates and analysis
  • Documentation inspection in line with verification guidelines
  • Identification, vetting and implementation of outsourced suppliers
  • Procurement advisory
  • SMME beneficiary identification
  • SMME project planning and development
  • Supplier development management
  • SD Fund management
  • SME support

ESD Product Offering

  • Innovation management and product development strategies
  • Strategic business formulation and commercialisation of ideas
  • Fundraising, bid management and advisory services for SMEs
  • Business development services:
    • Business plans
    • Business profiles
    • Sales and marketing advisory and training
    • Financial management advisory and training
    • Monitoring, evaluation and reporting

SOCIO-ECONOMIC DEVELOPMENT

This element measures the extent to which entities carry out initiatives that contribute towards Socio Economic or Sector Specific initiatives that promote access to the economy for Black people.

1 % of Net Profit After Tax is committed to SED spend.

We assist with:

  • SED advisory
  • SED beneficiary identification
  • SED project planning and development
  • SED Fund management

SPECIALISED CONSULTING SERVICES

Supply Chain Management

The purpose of this solution is to provide the client with insights into their procurement patterns.  To assess the BEE Scorecard for Supplier Development, we need access to an organisation’s entire Supply Chain. In conjunction with assessing the BEE score on Supplier Development, we are often able to identify opportunities to improve the management of the supply chain and potential cost savings.

NPI works closely with your team to understand the existing procurement processes and identify gaps to tailor our reporting to the client’s needs.  This includes but is not limited to:

  1. Analysis of ad-hoc purchasing and regulated procurement spend,
  2. Classifying suppliers in terms of type of spend, industry and organisational structure,
  3. Where required, we develop a vendor taxonomy for integration into the client’s systems,
  4. Generate reports on Procurement efficiencies,
  5. Generate departmental/category specific B-BBEE procurement reports,
  6. Trend analysis with a year-on-year comparison.

The benefits of our solutions are real and measurable.  Fundamentally, clients are able to exercise more control over their procurement and operations as a result of the increased transparency.  More specifically, this translates into:

  • Effective database management and/or consolidation,
  • Enhanced procurement efficiencies,
  • Curbing maverick spending,
  • Vendor consolidation for a streamlined registry,
  • Vendor grading,
  • Strategic supplier sourcing for enhanced B-BBEE recognition,
  • High impact management reporting,
  • Relevant benchmarking and performance measurement,
  • Targeted procurement policy measures for more measurable outcomes.

Business Accelerator Program

To improve on their Economic Development and Supplier Development score, organizations require a business accelerator program for SMME’S that have the potential to grow. We provide this service together with our affiliate company Manama Growth Capital (MGC).

 

Who are we looking for?

True Entrepreneurs are a rare breed, we are looking for the rare breed. The nature of the business is important but is not super ceded by the quality of the entrepreneur. We firstly look for good entrepreneurs who have already established businesses and secondly, for a business that can grow into a substantial asset for the stakeholders.

How will we assist?

Our hands-on team of experts will do a GAP analysis of the company. We will establish what the status of the business is and what needs to be addressed to manifest a detailed short-term strategy with action plans. In due course, medium and longer-term strategy and plans will be established. MGC also offer a platform of services that includes Payroll, HR, Legal and Accounting support.

Common Purpose; Common Fate

We Create Value in organizations by introducing a common purpose; common fate approach to key stakeholders in seeking ultimately to serve the customer. 

Establishing common purpose in a company is actually very simple. It is rooted in the natural economic law that supply exists to serve demand. The purpose of a company is to serve its customers. It is the purpose of the entire collective, to align to this common purpose which will unleash the full potential of the company and become the ultimate empowering tool for everyone involved.

Common fate is closely linked to common purpose, for without common purpose, common fate would not make sense. Broadly, it means common accountability and sharing in the fortunes or misfortunes of a company. In a specific and more tangible sense it’s reflected in rewards such as shareholder returns, employee pay, and government revenue or tax.

Our work is focused on creating an organisation where we establish a common purpose; common fate approach between stakeholders to serve a market. We teach organizations to combine and use explicit information (fact and data-our Contribution Accounting Methodology CAM) with tacit information (people’s beliefs, values, hunches, guesses, and concerns- our Contribution approach) to create an organization where capital and labour are fully engaged in serving the needs of customers, leading to sustainable and intrinsic value being created for the broader stakeholder group as opposed to only the shareholder.

Our Contribution Accounting Methodology (CAM) is unique in that it is the only financial statement that measures both Contribution and Reward for key stakeholders in the organization.  We go back to the basics of economics and teach people how wealth is created and legitimately shared with those who created it.

Our consulting approach underpinned by our common purpose; common fate principles is about helping organizations grow through implementing the five strategic pillars in maximising wealth creation and optimal wealth distribution:

Maximum Wealth Creation

  • Sell the most you can
  • Get a better price
  • Reduce outside costs

Optimum Wealth Distribution

  • Meet legitimate expectations of all stakeholders
  • Encourage continued contribution.

In summary we provide:

  • An understanding of how to measure the wealth created in an organization and how this wealth is distributed to those who created it.
  • An understanding of the principles of common purpose and common fate and how to apply them in an organization.

As defined by the King IV Corporate Codes of behaviour our approach fully supports a stakeholder inclusive approach.

TESTIMONIALS

CASE STUDY

21 Mar
The challenge The codes of good practice allow foreign multinational companies that do business in South Africa some flexibility in...
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