HR Excellence in the Eastern Cape - SABPP

SABPP EVENT PAPERHR Excellence in theEastern CapePublished: August 2012

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEIntroduction ........................................................................................................................ 3The speakers ....................................................................................................................... 3Key themes ......................................................................................................................... 4Service delivery is key to economic and human development in the Eastern Cape. Theperformance levels required to produce this service delivery come from employees whoare willing to deliver. A motivated workforce is the result of good leadership whichcreates a positive organisational climate. ............................................................................. 4The public and private sectors are interconnected and must each perform and eachcontribute to the other ............................................................................................................ 6HR competency, leadership and passion are critical to organisation performance ........... 6Skills development cannot be done in isolated islands, it takes cooperation and publicspiritedness to build human capital. ...................................................................................... 8One of HR’s important roles is to bridge work and society – it’s not only about thebusiness, it’s about the province ........................................................................................... 9Group work feedback ........................................................................................................... 9Major challenges for growth, inclusion and development in E Cape ....................................... 9How to address these challenges and achieve HR Excellence in the Province .................... 10The way forward ............................................................................................................. 12ABOUT THE SABPP ............................................................................................................. 13SABPP © 2012 www.sabpp.co.za2

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEIntroductionThe SABPP held a provincial summit in Port Elizabeth on August 16th 2012 to explore the issue of whatwould contribute to HR Excellence in the Eastern Cape. A series of speakers from both the private andpublic sectors in the province addressed a variety of topics. Breakaway groups of delegates discussedaspirations for the HR contribution to the future of the province and then volunteers came forward for anE Cape committee, to take this further. This paper integrates the proceedings of the day, as a resourcebase for this committee.The speakersProfessor Dave Berry, Director of the School of Industrial Psychology and HR, NMMU, andcommittee member of the Nelson Mandela Bay HR Forum chaired the day and welcomed thedelegates on behalf of the Board.Marius Meyer, CEO of the SABPP, outlined the new SABPP strategy HR Voice and the challengesfacing HR internationally and in South Africa.Cathy Albertyn, HR Director of Coca Cola SABCO, described their journey towards HR Excellence ina multi-national, very mult-cultural company based in Port Elizabeth.Advocate Jongumuzi Bomvu, General Manager, Corporate Services, at the Eastern Cape ProvincialTreasury, some of his personal views on what it would take to achieve HR Excellence in theTreasury.Zuko Mapoma, Executive Manager: Corporate Services, Coega Development Corporation,described the wide spread of development support services provided by the CDC and some of theHR and HRD related activities of the corporation.Mzwandile Gogwana, Director: Corporate Servicees, Amatola Water, described the leadership andHR support strategy followed to achieve service delivery and the ultimate award of Blue Dropstatus.Penny Abbott, Head of the HR Research Initiative at the SABPP, presented the results of herdoctoral research into HRM and the South African socio-economic context, and the conclusionthat HR practitioners must play the role of social activist.Tonny Masha, Human Capital Development Specialist, Fort Hare Solutions at the University of FortHare, provided a provincial overview of HR and HRD related topics before facilitating theinteractive session on Growth, Inclusion and Development.Professor Paul Poisat of NMMU presented lessons from Eastern Cape organisations that areachieving HR Excellence and applied those lessons to achieving HR Excellence in the province as awhole.Marius Meyer concluded the day by presenting the national HR competency model recentlylaunched by the SABPP.SABPP © 2012 www.sabpp.co.za3

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEKey themesService delivery is key to economic and human development in the Eastern Cape.The performance levels required to produce this service delivery come fromemployees who are willing to deliver. A motivated workforce is the result of goodleadership which creates a positive organisational climate.Cathy described the SABCO leadership model, which has as its dimensions personal mastery, ability totransform, ability to take the business to the breakthrough point, and leadership on global sustainability.She mentioned that Coca Cola and SABCO need “Green” managers. In response to her CFO asking her“what do we as managers need to do for our people”, she developed the SABCO HR creed, which spell outthat each employee has the right to:A job profile, what is expected of youA People Plan – your 5 performance objectives and 7 soft skills requiredA Development plan – 3 development actions (not only training courses)Coaching and Mentoring - each manager is expected to use a coaching and mentoring styleCareer Path – for those who want it. The company respects those who don’t want to advance, buttries to find ways to keep people excited in their jobsHonest feedbackFair compensationSafe work environmentExciting work – geared to each individual’s need for excitementRespect for the whole person – recognising that people have multiple roles in life.Jongumuzi outlined many challenges which affect the efficiency and effectiveness within the public sectorat provincial level in the Eastern Cape. The work culture would require a lot of leadership to become morepositive, and the labour relations structures are not very functional in helping to build a positive culture. Ifperformance management is not carried out in a disciplined way, poor performance cannot be isolatedand dealt with, but neither can good performers be recognised and rewarded.Zomvu mentioned that at the Coega Development Corporation, there is a Balanced Scorecard for eachindividual and that accountability is strictly ensured – no performance score is accepted without aportfolio of evidence which is subjected to independent audit. A considerable amount of work has beendone on building ethics, and a recent dismissal for fraud had been widely publicised by the Corporation asa message. There is a flat organisation structure of 3 levels, and they use a dual career path salarystructure to reward specialists. Their employee turnover is a low 4.9%, and their sickness ratio is a low1.1%, which they attribute to their wellness programmes. They pay a lot of attention to staff developmentand 22.8% of staff are studying formally at tertiary level. Despite this, he feels that staff morale is notwhere it should be, which demonstrates that the creation of a positive organisation climate takes a lot ofleadership and a lot of work. CDC HR function plans more work on career development, an EVP, anddiversifying competencies through internal deployments and secondments.Mzandile considered the role of leadership and pointed out that workplace justice and efficiency workreciprocally – there can be no service delivery in a hostile administration / political environment. ServiceSABPP © 2012 www.sabpp.co.za4

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEdelivery is achieved through employees who work willingly and effectively. Relationships in the workplaceare key to results, but in today’s pressurised work environment, teams do not have the leisure to work outrelationships in the traditional way, so norms, values and rules have to be brought in – that is the role ofleaders, supported by HR. At Amatola Water, there are 450 employees. The organisation is led by a verywell qualified Board, which takes a vigorous and challenging role – when managers present to the Board,they know they must be very well prepared with their facts. The Management Committee (Manco) ofAmatola Water conducts visible leadership and engagement – they meet quarterly with all middlemanagers, and also conduct quarterly site visits where the CEO and the whole Manco visit sites onrotation and talk directly to employees. There is a vibrant local labour forum, which deals with peopleissues, and is seen as central to service delivery. Skills development is considered to be the cornerstone ofthe organisations’s productive capacity – all employees signed a performance agreement which includestheir development plan. The organisation spends 5% of payroll on training and development. CDC hasparticipated in the Best Companies to Work For survey for 3 years, using the feedback each year toimplement improvements, and they hope to achieve a high ranking shortly. They are busy rolling out theirValues exercise by asking each employee to tell the company what they understand by each value. Inaddition, they have given each employee a set of Green, Yellow and Red cards which they use to tell eachother (peer and managers) when they are living or not living the values.Paul analysed leading organisations in the Eastern Cape and pointed out that the drivers of excellence inthese organisations include: an organisation climate conducive to success (a compelling sense of purpose);values based management philosophies; being a sought after employer which offers challenging work;good talent management and employees know that the organisation supports their development;constant innovation; and a large investment in training and development. He applied these insights to theprovince and listed the following as essential to underpin any drive toward excellence in the province:Political leadershipEthics and governanceEducation and trainingJob creation and dealing with unemploymentReducing bureaucracy to facilitate SMME development and service delivery.He outlined many infrastructure and industrial development projects planned for the province (includingwind farms, PetroSA, a dairy plant, a Chinese truck manufacturer, continuing investment by automanufacturers, and the possible development of Karoo fracking) and pointed out that the time frame forthe National Development Plan is 20 years. The key to achieving the Plan is capable and willing leadershipwhich implements a people based approach to development.SABPP © 2012 www.sabpp.co.za5

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEThe public and private sectors are interconnected and must each perform andeach contribute to the otherCathy gave an example of the PESTEL environmental strategic scan, using issues from local headlines inthe recent past:PoliticalEconomicSocialTechnologicalEnvironmentalLegalMunicipal disputes, corruption, party electionsUnemployment, cost and availability of energy, roads infrastructure, municipalaudits, poor service deliveryUrbanisation, foreign expatriates, education, mentally disabled services, healthservices, less crime, not an aspirant locationElectronics skills needed for production operators, E Cape last on infrastructureprojects list, Generation Y expectationsDrought, floods, water shortages, emissions legislationNational laws on contract labour, municipal regulationsTonny, in introducing the group discussion session, quoted Nelson Mandela that the future of South Africawill be determined largely by its human education and development. He noted that there is currently aproblem of disengagement – people are not seeing interconnections and how each person mustcontribute.Paul pointed out that “a central leadership role must be assumed by organisations with the potential toserve as catalysts for institutional and policy changes”. These should include local government;universities; business chambers and other business organisations; Coega Development Corporation; andprofessional bodies such as the SABPP.HR competency, leadership and passion are critical to organisation performanceMarius talked in his presentation about the need for HR standards. Other professions have standardisedways of doing things, all companies have to report their financials in a standardised way, so why is HRdone so differently in each company? The SABPP will be launching a set of HR standards for South Africaso serve as a basis for improving people management practices, to enable value to be added to businessesin a standardised way. He also showed how, although organisations are ready for disasters such as floodand earthquake, they are not ready to cope with human capital risk, which is in fact the biggest risk thatorganisations, whether private or public sector, face.. His research has shown that HR, in particulartraining and development, is a scarce skill.Cathy said that achieving Excellence has to start with believing that you can do it, Excellence is a virtue, itcomes from the soul. HR Excellence is based on principles, systems, tools and metrics, is concerned withaction, the customer and innovation, and is about people, simplicity and being hands on. SABCO followsSABPP © 2012 www.sabpp.co.za6

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEthe Dave Ulrich approach and Cathy described the outside-in concept, stating that the value that HR candeliver is defined by the receiver, not by HR, but that HR has to influence others to learn to define whatthey need. She described how so much of the HR work is unseen and unappreciated (until something goeswrong) – on payroll and building good IR, no-one wants to know. This means that HR people need to havea community of their own, a safe place to support each other. SABCO’s HR function has developed itsown blueprint of how to be perceived as adding value – this involves:Connecting to the line manager. This does not mean one meeting, it means building a relationshipto understand the manager, what he values, what he has to deliver, and how he wants to workwith HR (some managers want a close relationship, others don’t).Structure HR to deliver. Fill HR vacancies first, not last, because if HR doesn’t have the rightresources, it cannot deliver.Talk to colleagues, find out what the issues in the workplace are.Deliver on their agenda, don’t use your HR agenda, and HR speak.If you do all this, your agenda will happen.Keep it simple (managers want to “read it and run with it”)Repeat for success and sustainability – focus, don’t have too many ideas at once, leave a legacyfor the next incumbent to build on.She said that HR needs to sit next to the CEO, to influence the quality of leadership, have a say in who getspromoted so that the ROI on leadership development is maximized. HR’s own leadership, image andpresence is critical, you must have legitimacy when you have the seat in the right place, you must beallowed to step into your colleagues’ spaces, interacting with them on their agenda.Zomvu noted that the HR function at CDC has become more aligned recently to the business strategy andfocuses more on the organisation’s business objectives. He said that the HR function was the custodian ofCDC values.Mzwandile described the HR function as a service and staff function in that people management must beperformed by all managers, whilst the role of HR is policy initiation and development, advice, service andcontrol – ensuring impartiality, fairness and consistency.Marius described how the SABPP has drawn on many years of research around HR roles and competenciesto come up, together with thinking partners such as Nedbank, Sasol and SAB, with a modern, integratedcompetency model that can be used for the whole profession. Although further consultation and moredetailed development still remains to be done, this new model will give the basis for more focused skillsdevelopment and continuing professional development, as well as guiding universities in producing wellskilled HR graduates. Jonathan Jansen was quoted as saying “make competence a respectable wordagain”, and this must apply to HR. When the SABPP certifies an HR professional, organisations shouldknow what they are going to get.The model is reproduced below.SABPP © 2012 www.sabpp.co.za7

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPE.Paul mentioned that HR is often helpless prey between competing predators, and needs to take charge ofits destiny. “Excellence” implies superior service, better than competitors, and HR Excellence should alsobe able to demonstrate internally that HR can make a valuable contribution to organisational success.HR’s primary role is as a business performance consultant to managers.Dave, in his closing remarks, stated that the HR people in the province had not known enough about thework of the SABPP and what it could offer to improve the standard of HR work.Skills development cannot be done in isolated islands, it takes cooperation andpublic spiritedness to build human capital.Marius noted that there have been changes recently to the skills development system and challenged thedelegates to familiarise themselves with the new NQF Act and make it work. The SABPP, from end August,will no longer be an ETQA, but an AQP (Assessment Quality Partner) in the new QCTO system. Tonnynoted that the Medium Term Strategy Framework introduced by the Minister of Finance, has as its toppriority the strengthening of the skills base of the country.Jongumuzi pointed out that public sector rules about advertising all positions openly can cause problemswhen graduate trainees have finished their training and the organisation would like to absorb them.Zuko outlined the role of Coega Development Corporation, through its Human Capital Solutions arm, toresearch skills requirements for projects in the province; to maintain a job seekers’ database to draw fromfor projects; and to recruit and develop the skills required for projects. Because it is a knowledge-basedorganisation, specialising in project management skills, it has to do a lot of skills development, but alsosuffers from the general shortage of such skills in South Africa. It has a very large intake of interns (121 for260 permanent staff), and has exceeded Employment Equity targets in HDI and female representation.Mzwandile explained that, with 450 employees, CDC has 76 graduates on traineeships, which is a veryhigh ratio. They have an Artisan Development Programme, where through RPL they take artisan aidesthrough to trade tests. In 2012 they qualified 26 people. They are trying to implement a Learning Academyfor water operators, which is a critically scarce skill, both for themselves and in cooperation with otherWater Boards. They have accredited their training but are now trying to get funding, having obtained aSABPP © 2012 www.sabpp.co.za8

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEsmall grant from the SETA and some money from the Department of Water Affairs, but now need muchmore money.One of HR’s important roles is to bridge work and society – it’s not only about thebusiness, it’s about the provinceCathy pointed out that the E Cape unemployment situation gave HR an opportunity to invest in socialprojects, and she linked this to Generation Y needs to make a contribution to society, to work oncommunity projects. Part of SABCO’s HR Dashboard of performance metrics is Sustainability, and underthat section SABCO carried out external audits of worker rights and its CSI.Penny demonstrated, based on her research, that organisations cannot achieve their objectives if theyisolate themselves from their context. Poor socio-economic conditions affect people badly, and they bringthese problems to work with them, adversely affecting many aspects of the organization, whether it ispublic or private sector. There are many opportunities for businesses to involve themselves strategicallyin improving socio-economic conditions, and HR should be the social activists to exercise leadership withintheir organisations.Group work feedbackMajor challenges for growth, inclusion and development in E CapeGroup A Group B Group CPoverty – gap between rich andpoor is getting biggerEducation system needs to bere-developedUnemploymentYouth unemployment,particularly in rural areasFET colleges are in the wrongplace: more are needed inevery districtThe supply and demand forlabour are not aligned (skillsshortages)No relationship betweenindustry and the universities –we need graduates with moreSkills need to be uplifted –technicians, artisans, weldersneed to be available locallyBetter communicationplatforms and networking as towhere the people are for jobsBrain drain to other provincesGetting labour and timingready for future demandE Cape economyPoor social conditionsPoverty – people coming frompoor background thereforetheir focus at work is divertedHIV/AIDSSABPP © 2012 www.sabpp.co.za9

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEpractical skillsInadequate service delivery,example transport, and poordistribution of governmentservicesCorruption and inefficiency inthe public sector, which createsa poor image for the E Cape).Dismissals should happenwhere people are found guilty,and people should be educatedon the consequences of theiractionsGovernment is not fullyaddressing people’s needsSocietal factors (drugs,HIV/AIDS) is affectingproductivity in the workplaceCultural differences need to beaddressed(workplace experience)Municipal services – vacantland not being usedNot enough upward mobilityfor young professionals whichresults in skills lost to ourprovinceWork ethics (students mustlearn, workers must work)Transport infrastructurePolitical instabilityHow to address these challenges and achieve HR Excellence in the ProvinceGroup A Group B Group CStrengthen the connectionbetween HR and CEOs,influence them to see theholistic view and the benefitsof developing employees,rather than short termprofitabilityRevive educational systems toaddress skills upliftment –training centres and FETSplaced closer to poor areas.Develop FETs that work, withprivate/public partnershipsIncrease apprenticeshipprogrammes and learnerships,set targets for disadvantagedstudentsCounselling on societal factorsJob creationBetter communication andnetworkingJob creation to improveretention strategiesCommunity and schoolingprogrammesMobilise people to get involvedin volunteer programmesSABPP © 2012 www.sabpp.co.za10

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEAlleviation of povertyInvolvement of communities(getting government to providemarkets for local communities)Use villages as the location forNGO’s, CBO’s, cooperatives, tocreate jobs for rural people,supplying local prisons,hospitals and schoolsProvide food packed withvitamins to improve nutritionCorporate HR mentoring,coaching to school principalsand other education andcommunity projectsExpand CSIBuild principle of 67 minutesvolunteering into organisationsand communitiesImprove link betweenindustries and universities toreduce expectations gap, andensure exposure to theworkplace for studentsMore internships andlearnershipsMore Proudly SA products intolocal marketsReview employee benefits totry to bridge the earnings gapProactive planning of labourmarket needs and buy-in fromcompanies to supportworkplace experience withflexible conditionsMore flexibility with LRA toopen up options but not exploitemployeesAssurance of continuedmunicipal supportTarget specific development forstudents – set up technicalschools and stream into areaswhere jobs are availableDiscipline health workersSABPP © 2012 www.sabpp.co.za11

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEThe way forwardIt was agreed that an Eastern Cape local Committee of the SABPP will be formed, based around theexisting 6 committee members of the NMB HR Forum. Additional volunteers to represent other parts ofthe province came forward, being:John Meecham from the University of Fort Hareand Benedict Matsoso from Labour Vision.The liaison person for the NMB HR Forum is Professor Dave Berry of NMMU.The delegates also nominated Adv Bomvu and Mzwandile Gogwana, who were contacted to confirmwhether they are willing to serve. Mzwandile has accepted, while Adv Bomvu has not yet had time torespond. Previous to the Summit, Alfie Wagner from ETD Consulting, had also volunteered.The volunteers for the Committee will now meet to consider the outputs of the Summit and determinenext steps.SABPP © 2012 www.sabpp.co.za12

SABPP EVENT PAPERHR EXCELLENCE IN EASTERN CAPEABOUT THE SABPPMission: To establish, direct and sustain a high level of professionalism and ethical conduct in humanresources and people practices.The SABPP links the achievement of quality to equity and the fostering of innovation and diversity.Our values:OBJECTIVITY | FAIRNESS | CONSISTENCY | INTEGRITYOur strategy – HR VOICEEnquiries about this paper can be made to marius@sabpp.co.za, penny@sabpp.co.za, or members of theEastern Cape committee who volunteered at the Summit.Not yet registered with the SA Boardfor People Practices (SABPP)?Join now by applying for professional registration.Email: professional@sabpp.co.zaSABPP © 2012 www.sabpp.co.za13