ASA February 2018

FEBRUARY 2018
PRISCILLAH
MABELANE
+ STAYING AUTHENTIC AND
REMAINING TRUE TO HER
VALUE SYSTEM
ENTREPRENEURSHIP & FLEXIBILITY
THE BIG TRADE-OFF
FOR WOMEN
THE IMPORTANCE OF
MENTORING
6 MYTHBUSTERS
ON NOCLAR
NOCLAR may still be relatively
new, but have you already been a
victim of a myth or two?
February 2018 accountancysa.org.za 1
42155_SPW_F&T_Print (273x210).indd 1 2017/10/12 3:35 P
2 accountancysa.co.za February 2018
IN THIS ISSUE
CONTENTS UPFRONT
6 UPDATES
Environmental, local, economic and political
news updates
FEBRUARY 2018
FEATURES
THIS MONTH’S FOCUS: 14 SHAPING TOMORROW’S WORKERS
FOR A FAST-CHANGING WORLD
Interdisciplinary and holistic education are
indispensible
ENTREPRE-
16 THE GOOD, THE BAD AND THE
UGLY
necdotal observations on corporate
A
governace
NEURSHIP
18 SHE’S ALL ENERGY

Pholoso Masilela shares more about her
career highlights at Shell
ANALYSIS
50 CPD: 6 Mythbusters of NOCLAR
53 CPD: Digital Financial Reporting for XBRL
55 CPD: Presenting Financial Performance

Reporting
REGULARS
35 VIEWPOINT
46 ADVICE: Instilling Resilience
58 THOUGHT LEADERSHIP: Importance of

mentoring
58 INDULGE: Motoring
62 INDULGE: Gadgets
66 INDULGE: Lifestyle
24 ARE YOU SUITED FOR A START-UP?
26 ENTREPRENEURSHIP FLEXIBILITY
28 THE CHALLENGES OF CORPORATE
ENTREPRENEURSHIP
32 THE DARK SIDE OF ENTREPRENEURSHIP
THE HOPE FACTORY

SAICA Enterprise Development and eight entrepreneur profiles
PAGE 34
ON THE COVER
For the new CEO of BP South Africa, integrity and remaining true
to her value system keep the first woman to head a multinational
oil company in South Africa grounded
PAGE 10

EDITORIAL
THE VALUE OF VALUES
EDITOR
Today there is probably more talk about ethics and values in business than Gerinda Engelbrecht
ever before. As you face challenges in business and decision-making it’s ART DIRECTOR
important to do some self-reflection and ask if ethically you’re making the Ashley van der Merwe
right decision. ASSISTANT EDITOR
Lynn Grala
Values should be at the core of every business (and employee). It is what PUBLICATIONS ADMINISTRATOR
you stand for, your philosophy and reason for being. Values help to steer your Palesa Khobane
business, employees and management in the right direction. COPY EDITOR
Sarie Moolman
Ethics and values are the cornerstone of the profession and it’s what ILLUSTRATOR
distinguishes CAs(SA) from other professionals. As a responsible leader you Liézel Els
have a duty to act in the best interest of the public at all times – and this is SOCIAL MEDIA
James Sibia
only possible if you have high moral fibre ingrained.
WEBSITE ADMINITRATORS
The fundamental principles to comply with are: André van der Merwe and Marcelle Blignaut
• Integrity: Be truthful, straightforward and honest in all your business

relationships.
PUBLISHER
Willi Coates
• Objectivity: Don’t allow bias, conflict of interest or undue influence to
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Email mattk@saica.co.za
These values and principles are something that our cover profile of the
month, Priscillah Mabelane (CEO of BP Southern Africa), also believes in. ADVERTISING SALES
Michelle Baker
She says in the article that she has built her career success on authenticity, Cell +27 73 137 1231
courage and old-fashioned diligence. For her these values are crucial and so Email michelle.baker@mediamarx.co.za
deeply ingrained in her that she will not work for any company that is not
aligned with her value system. She also believes that agility and resilience
are important characteristics for CAs(SA). SUBSCIPTIONS
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You will also notice that Accountancy SA not only looks different but is
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smartphone or tablet in a responsive format.
Please send us your thoughts and feedback on gerindae@saica.co.za.
GERINDA ENGELBRECHT
EDITOR
4 accountancysa.org.za February 2018

WWW.ACCOUNTANCYSA.ORG.ZA
WHAT’S HAPPENING
ON OUR WEBSITE
THIS MONTH?
ODWA BAIC SA
MHLWANA APPOINTS
CA(SA) BATANDWA
APPOINTED CFO MDYESHA CA(SA)
FOR DENEL AS NEW CFO
http://bit.ly/2mTF0gI http://bit.ly/2DwHhYV
TOURVEST
APPOINTS NEW FINANCIAL SAICA UPCOMING
CHIEF EXECUTIVE REPORTING EVENTS
Tourvest appoints Sean Should our confidence Have a look at all of SAICAs
Joubert CA(SA) as new in financial reporting be upcoming events and
Chief Executive shaken? booking information
http://bit.ly/2mOFHqU http://bit.ly/2rpMa14 http://bit.ly/2rCeeKe
FIND YOUR FAVOURITE

EXPERTS ONLINE
BUSINESS ADVISOR PUBLIC SPEAKING TRAINER WEALTH ADVISOR PERSONAL FINANCE ADVISOR LEARNING & DEVELOPMENT
Kevin Phillips CA(SA) Dineshrie Pillay CA(SA) Mike Lledo CA(SA) Giselle Willows CA(SA) PROFESSIONAL
http://bit.ly/KP_02_18 http://bit.ly/DP_02_18 http://bit.ly/ML_02_18 http://bit.ly/GW_02_18 Paolo Giuricich CA(SA)
http://bit.ly/PG_02_18

UPFRONT | UPDATES
BEST CAREER
ADVICE IN A
SENTENCE
Before being the pivotal CEO to Burberry’s return to soon left realising she did not want to be somebody that she’s
popularity, Angela Ahrendts faced her own career struggles. not. She left them with the words, ‘I want to be the best
Not everyone believed that she had what it takes to be version of myself.’
considered ‘CEO material’. Borrowing from Shakespeare, Ahrendts sums up in a
The worst career advice she said she’s ever received was sentence: ‘So, I just think that to thyself be true.’
from a human resources manager who said she needed to Today she’s the first female on Apple CEO Tim Cook’s
make changes ‘like not talking so emotionally with her hands’. executive team.
Thereafter she met with the recommended coach, but she
Source: Inc.
LOOKING AT
CHINA’S ECONOMY
China’s economic growth figure of 6,9% beat Beijing’s official annual growth target of
2Bn
ADULTS
GLOBALLY
6,5%. Although the data may please investors, others are more sceptical and say growth is
much weaker.
Analyst also predict that as Beijing works to reduce debt that has increased in recent years DO NOT HAVE A
and increase the quality of the air through strict anti-pollution measures, this may have a BANK ACCOUNT
negative impact on 2018’s growth. OR ACCESS TO FORMAL
Source: BBC
FINANCIAL SERVICES
APPLE, TAX
AND BIG PROMISES
Owing to the new US tax laws, companies such as Apple will no longer be able to keep
profits outside the US border, and Apple is said to be bringing back $38 billlion into the US
95M
NEW JOBS
MAY BE CREATED THROUGH
of money that has been kept overseas.
DIGITAL FINANCE
Apple has also promised to create 20 000 more jobs and invest $30 billion in US facilities. IN THE
Currently Apple employs about 123 000 employees of which 84 000 are based in the US. DEVELOPING WORLD
With tech ‘addiction’ a topic of rising concern recently, many say this is a great time
for Apple to launch a phone that encourages users to use it ‘more thoughtfully, more
deliberately − and a lot less’.
BY 2025
Sources: CNN International & New York Times Source: McKinsey Global Inst.

UPFRONT | UPDATES
SOFT SKILLS
IN DEMAND
Technology is here to stay so all jobs are likely going to require some
technical skills. But despite the demand for technical skills, soft skills such
as management, leadership and strategy are just as crucial.
In a survey from LinkedIn of over 2 000 business leaders, data showed
that soft skills most in demand are leadership, communication,
collaboration, and time management. In fact, 57% of them said these soft
skills are more important than hard skills.
STEINHOFF HANDS
OVER 15 YEARS OF
FINANCIAL RECORDS
Steinhoff has agreed to allow the Federation of Unions of South Africa
(Fedusa) and the Public Servants Association (PSA) access to financials
dating as far back as 2002.
AFRICA’S
They had requested to inspect the financial records to gain more insight
before making a decision on laying criminal charges against the retail RICHEST MAN
group, following the fallout from Steinhoff’s accounting scandal in
December last year. Aliko Dangote from Nigeria founded and
chairs Dangote Cement, the continent’s
Initially Steinhoff decided to only make partial information available to the largest cement producer. He owns about
unions, as they are not direct shareholders. 90% of publicly-traded Dangote Cement
Maepa is of the view that the unions are indeed entitled to the through a holding company.
information in terms of the Companies Act and that, given that Steinhoff Dangote Cement produces 44 million
is handing over the information, they will not have to seek action from the metric tons annually and plan to increase
courts. its output 33% by 2020.
Source: Fin24
Source: Africanews
DID YOU
KNOW? $ 2,1Bn THE AMOUNT OF
MONEY IN PRESIDENT
TRUMP’S
Research has revealed that microwaves across the EU generate as much
greenhouse gases as nearly seven million cars. Scientists arrived at the
figure after studying the broad environmental impact of microwaves,
taking account of their manufacture, use, and end-of-life disposal. BUDGET UNDER DISPUTE
However, microwaves’ electricity consumption also has a significant
impact on the environment. Each year more microwaves are sold than any CRITICS SAY IT IS AN EXAMPLE OF
other type of oven in the EU with annual sales expected to reach €135 ‘DOUBLE COUNTING’ USING THE
million by the end of the decade. SAME POT OF MONEY TO OFFSET
BOTH TAX CUTS AND SPENDING
Source: TIME

UPFRONT | UPDATES
NB: MAKE SAICA wishes to ensure that all its members and
associates are familiar with and understand their
responsibilities with respect to the NOCLAR provisions
YOUR
as contained in sections 225 and 360 of the SAICA
Code. All members and associates are required to
make a declaration to this effect as part of their annual
NOCLAR
CPD declaration by 15 February 2018.
Information with respect to NOCLAR is available on the
SAICA website at this link
DECLARATION
SAICA INQUIRY REAL ESTATE

INTO MEMBERS IN EASTERN
EUROPE REMAINS
EMPLOYED BY ATTRACTIVE TO
KPMG DEVELOPERS
In November 2017, SAICA convened what is now known as
the ‘Ntsebeza Inquiry’ with the aim that it should investigate, Despite volatile politics, prices across the
independently, allegations that some of its members who region have surged as money pours into real
were/are employed by KPMG, had allegedly engaged in estate at a rate unseen since 2007, before the
conduct in contravention of the SAICA Code of Professional global financial crisis led to recessions across
Conduct. This followed the emergence of claims relating to the continent.
unethical and unprofessional conduct in relation to audit work Real-estate investment last year was probably
carried out by KPMG for both public and private sector clients close to the 2016 level of €12.2 billion,
and the South African Revenue Service. according to property consultancy Colliers
On Saturday, 20 January 2018, the Ntsebeza Inq iry provided International.
an updated progress report in the form of a press release, Source: Bloomberg
which can be accessed here
THINK ABOUT
YOUR CLOTHING
FOOTPRINT
95% 7 000
OF THE
CLOTHES
THE NUMBER OF
Besides the fact that decomposing clothes release
THAT GET DUMPED
LITRES OF
WATER
methane, a harmful greenhouse gas, synthetic
fabrics like polyester and lycra can take hundreds
of years to biodegrade. Other materials like leather
ON LANDFILLS
takes about 25 to 40 years, thread between three to COULD BE DONATED TO IT TAKES TO MAKE A SINGLE
four months and cotton about one to five months.
LOCAL CHARITIES OR
PAIR OF JEANS
Source: News 24 RECYCLED

UPFRONT | UPDATES
KPMG APPOINTS
PROFESSOR
WISEMAN NKUHLU
Audit firm KPMG has announced the appointment of Professor
Wiseman Nkuhlu as chairperson of the board in order to strengthen the
governance and leadership of the firm.
Wiseman Nkuhlu is the Chancellor of the University of Pretoria. He
served as an economic advisor for President Thabo Mbeki and chaired
the Development Bank of Southern Africa Transformation team. Nkhulu
was the first black chartered accountant in South Africa.
2017: ONE OF THE FIRST ANNUAL

HOTTEST YEARS NATIONAL
ON RECORD ROOIBOS DAY
With the aim to raise aware on the teas
medicinal value, on 16 January South Africa
2017 is ranking as the second-warmest year by NASA and the third-
celebrated the first annual National Rooibos
warmest by the National Oceanic and Atmospheric Administration.
Day. Research shows that rooibos can help
The six hottest years since records began in 1880 started in 2010,
prevent cancer, protect the liver against disease,
with the hottest year remaining 2016. This is driven by human activities
boost the immune system, relieve allergies and
through carbon emission.
treat many other disorders.
Source: CNN International
SA WINE’S MOST
CHALLENGING
YEAR EVER
This year is the most challenging the South African wine industry has
ever faced, according to Francois Viljoen, head of viticulture at VinPro.
Viljoen expects 2018 will bring one of the smallest crops in more
than a decade, mainly due to the impact of the prevailing drought in
the Western Cape. He pointed out that the wine industry in Europe
and California in the US was also impacted by weather conditions.
Source: Fin24

STAYING
AUTHENTIC
For the new CEO of BP South Africa integrity and
remaining true to her value system keeps the first
woman to head a multinational oil company in
South Africa grounded
Words Tracy Burrows

Photos Theana Breugem

COVER STORY | STAYING AUTHENTIC
Chartered Accountant Priscillah ‘I was really fortunate there,’ she recalls.

Mabelane, who has recently been ‘When I joined Ernst & Young, there
MABELANE BELIEVES appointed as the CEO of BP Southern were hardly any black role models
AGILITY AND RESILIENCE Africa, has built her career success on for me, but there were a number of
authenticity, courage and old-fashioned directors and managers who took a
ARE IMPORTANT diligence. These values are crucial, she keen interest in my career, challenging
CHARACTERISTICS FOR says, and so deeply ingrained in her that me and giving me opportunities to grow.’
CAs(SA), THE C-SUITE she will not work for any company that The diligence and precision she acquired
is not aligned with her value system.
AS A WHOLE, AND THE through long hours spent helping in her
But on top of this, Mabelane believes father’s accounting office stood her in
BUSINESSES THEY WORK agility and resilience are important good stead in the early years. ‘Having
FOR. THESE WILL BE THE characteristics for CAs(SA), the C-suite had the practice of being a typist –
KEY TO PROGRESS AND as a whole, and the businesses they where you could not afford to make any
ENSURING STAKEHOLDER work for. These will be the key to mistakes, I had become diligent. I used
progress and ensuring stakeholder value to work very long hours. Some of the
VALUE AND ECONOMIC and economic growth for the country in pressure was probably coming from
GROWTH FOR THE COUNTRY difficult economic times, she says. my own ambitious nature, and I pushed
IN DIFFICULT ECONOMIC ‘At BPSA, it’s a huge agenda that I myself.’
TIMES, SHE SAYS will be driving in these challenging Mabelane started at the bottom,
times, and it’s very exciting to be which she believes was a valuable
working to continuously give back to and humbling experience, and went
our shareholders and stakeholders,’ on to rise through the ranks at Ernst
she says. She believes her accounting & Young, Liberty, as CFO at Airports
training and experience has prepared Company of South Africa, and in various
her well for the role. management roles at Eskom. ‘I grew at
Eskom, where I started as an accountant
for the distribution business, and got
RISING THROUGH THE promoted every two years into roles
RANKS including financial management and
general management. There, I worked
As soon as she began assisting in her on complex and exciting projects and
father’s bookkeeping office at age 11, so gained deeper experience. I was
Mabelane realised she had an affinity for supported appropriately and I just
numbers. blossomed,’ she recalls.
‘Back then, in the village of Mabocha,
outside Burgersfort in Limpopo, there BRINGING CA(SA) SKILLS TO
were hardly any chartered accountants
in small villages and townships. The very
THE CEO ROLE
term “chartered accountant” sounded
very profound to me, and I fell in love with Mabelane joined BP as CFO six years
it. At an early age, I knew I wanted to ago and was formally appointed as the
become a chartered accountant,’ she says. multinational’s Southern Africa CEO with
effect from September 2017.
Mabelane’s parents were highly
supportive, raising their children on a Newly back in the country after
foundation of integrity and authenticity completing a business management
with the conviction that there was course at Harvard, Mabelane reflects on
nothing they could not do. The affinity how her chartered accounting training
for numbers saw both Mabelane and her has prepared her for this role.
sister going on to become CAs(SA). ‘For me, being a CA is such a key
Through a combination of her own drive enabler, because as an accountant
and ambition, and the support of her you are given an opportunity to truly
family and colleagues, Mabelane went understand business. In all the roles
on to excel at university and into her I occupied while I was in finance
accounting career. – particularly around performance
management – it was never only about
Passing her junior degree cum the numbers. The numbers are just
laude at the University of the North the output of the business drivers. I’ve
and completing her honours at the always been very interested in ensuring
University of Natal, Mabelane did her I play a holistic role and more general
articles at the then Ernst & Young’s in management in strategy formulation,
Pietermaritzburg. enabling businesses and running

COVER STORY | STAYING AUTHENTIC
portfolios such as IT, which are critical conducive environment for that. And
for any business leader,’ she says. I’ve seen that – every time people are
‘In addition, because of the ethical
VALUING THE able to make really brilliant, intelligent
approach of the CA environment, you ACCOUNTING PROFESSION mistakes and grow out of them, that’s
are able to get honest feedback because MEANS INVESTING IN IT how they become better and that’s how
the expectations around what you’re you create an enduring capability going
supposed to do and deliver are very AND IN YOURSELF. YOU forward.
clear.’ NEED TO PUSH YOURSELF TO ‘If there’s anything that’s part of my
Believing that the accounting CONTINUOUSLY GROW growth agenda, it’s learning to let go,’
profession is ‘one of the most dynamic she admits. ‘So I don’t micro-manage
professions’, Mabelane urges CAs(SA) people; I don’t manage time – I manage
to value it. ‘Valuing it means investing well as expanding its partnerships output. It doesn’t come easy, since I’m
in it and investing in yourself. You need in Southern Africa. ‘In this new era, very driven, and at times I want things
to push yourself to continuously grow. despite the short-term challenges, we done “the Priscillah way”.’’
The tough and structured programme are long-term focused. We are investing
in a refinery to ensure we can respond Having pushed herself for over 20
that CAs(SA) follow helps, by giving years, Mabelane is now moving to
you a systematic, progressive growth to the supply and demand dynamics we
see in the market, we are growing the achieve more balance in her life, working
path. At times we look at growth from smarter, delegating more responsibility
a technical or commercial perspective, retail business, and we have strategic
partnerships that give us an opportunity and allocating more time to family and
but we also need to consider where the personal growth.
future is going and be able to adapt to to differentiate ourselves and leverage
new skills sets that are required,’ she growth.’ One area she aims to focus on more in
says. Mabelane’s immediate goal is to ensure future is empowerment programmes.
the business remains resilient. ‘What ‘I’ve been very fortunate to be in senior
‘Then there is the fundamental growth roles in organisations, which gives
around leadership. Typically, accountants gives me confidence is that I have a
capable team to be able to respond to me an opportunity to enable people
tend to be very performance driven to grow through coaching, supporting
and hard on outcomes, which are short term challenges. I also believe
we have proud South African people and creating the environment for the
good attributes to have. But we have growth. At BP specifically, we have
to balance that with the soft skills and who are very capable that will also
continuously challenge and help us always driven meaningful contribution
shape ourselves to become better and particularly focusing on the needs
leaders who are able to challenge weather the storm. The good thing
about South Africa is that we can talk of the country. I was quite instrumental
and become examples. This country in ensuring we have a trust to focus on
requires more leaders who do more about these things in a transparent way.
We still have a number of institutions skills development with an emphasis
than criticise, and rather contribute on science, maths and technology, and
appropriately and become an integral that are still working well. We need
to focus on those. But we need to I will continue to passionately support
part of the solution.’ and sponsor that,’ she says.
play a role in shaping the dialogues
and through this, and continuous ‘I also care deeply about the people
LEADING PROGRESS persistence, I believe we will make of this country. I’m blessed and God
progress,’ she says. has given me the wisdom as well as
Conceding that South Africa faces the opportunity to be here; people
challenges, Mabelane is gearing up have been generous in giving me the
to contribute to finding solutions and GROWING CAPACITY opportunity to grow. So I have a huge
driving growth for her company’s responsibility to give back.’
stakeholders and the country as a In addition to driving growth for BP
whole. stakeholders, Mabelane is committed This giving back includes serving as
to increasing her contribution to skills a coach and mentor, giving talks at
‘We’re a young democracy and we’ve development and empowerment. schools and supporting orphanages.
achieved a lot, but we need to keep This commitment to growth starts Importantly for Mabelane, it also
driving progress.’ Admittedly, the South with entrusting her team with critical includes her commitment to her close-
African economy is challenged, so workloads. ‘I don’t work the excessive knit and extended family. ‘I spend a lot
business needs to position itself to hours I did when I was younger and of time with my parents, siblings and
remain resilient,’ she says. ‘We are in an more energised. Now I work smarter, our extended younger generation, and
advantaged position as both BP and the and importantly, I orchestrate delivery it’s something I will never compromise
industry, whereby we have a great deal through my team. Diversity and on, because that’s how I reenergise
of capability and global experience. The inclusion within the team means we all myself. I also create my own time for
question will be how do we then bring come with different attributes that we reflection, to go to church every Sunday
those experiences and continue to help can harness for maximum value.’ without feeling guilty that I have to be
government to shape policy frameworks in the office,’ she says. ‘Going forward,
and work with them to drive growth?’ Over the years, she has learnt that it is
I will focus more on social imperatives
important to strike a balance and avoid
Mabelane notes that BP, with a 90-year and meaningful contributions.’
becoming excessively controlling, she
history in South Africa, is investing says. ‘You need to trust and take a risk
in local growth and development, as on people, and you need to create a

AT THE END OF THE DAY,
THE MOST IMPORTANT
THINGS ARE INTEGRITY,
RESPECT, AUTHENTICITY,
AND THE COURAGE AS
AN INDIVIDUAL TO
BE ABLE TO SPEAK
UP IF YOU BELIEVE
SOMETHING IS WRONG
View a personal interview with Priscillah here

FEATURE | SHAPING TOMORROW’S WORKERS
SHAPING
TOMORROW’S
WORKERS
FAST-CHANGING
FOR A
WORLD
IN TRUTH, WE KNOW
EMBARRASSINGLY
LITTLE ABOUT
TOMORROW’S JOBS.
INTERDISCIPLINARY
AND HOLISTIC
EDUCATION AND
RESEARCH ARE
INDISPENSABLE AS THE In many industries and countries, enforce short-term fiscal planning on
WORKPLACE COMBINES the most in-demand occupations education programmes, but measuring
or specialties did not exist 10 years social skills is not as easy as calculating
COGNITIVE SKILLS ago, and the pace of change will only STEM competences.
WITH TEAMWORK AND accelerate. On average, by 2020, more Much attention is devoted to high-
DEBATE WITH FOCUS than a third of the desired core skill sets
of most occupations will be made up of
calibre education and research, and
for good reason, but demand trends
ON ADAPTABILITY, skills not considered crucial to the job suggest that human factors may be
REPLACING SILO today. In essence, technical skills must more essential than normally assumed.
be supplemented with strong social and
THINKING WITH A collaboration skills.
For example, health, nonstop improving
of skills and entertainment may
FLEXIBLE APPROACH Education and research are increasingly prove to be the growth sectors of the
THAT APPLIES out of touch with demand for these future – and the main job providers.
skills. The tendency to focus on Human maintenance will grow almost
KNOWLEDGE FROM cognitive skills, including the ‘STEM’ exponentially, steered by demographics
MULTIPLE SECTORS topics of science, technology, and a growing proportion of elderly
engineering and mathematics, cannot citizens.
THAT AT FIRST preclude the productivity benefit of soft Human improvement, the ability
APPEARANCES MAY skills, including applying knowledge to try new technologies, should
NOT SEEM RELEVANT. and finding opportunities offered by
technology. In recent decades most
not be overlooked, because the
higher productivity promised by
countries have fallen into the trap of new technology blossoms only if
overextending cost-benefit analyses humans have the skill to manage that
Words while training students to solve
Joergen Oerstroem Moeller technology. Entertainment will also be
yesterday’s problems. Governments

FEATURE | SHAPING TOMORROW’S WORKERS
Modern workplaces constantly means certain that, despite the race for
challenge the notion of ‘This is how top spots on international-ranking lists,
we have always done it’. Autonomy, Asia will be best served by universities
mastery and purpose are rarely in the mould of Europe and the United
practised in education or in research, States.
THE TENDENCY TO FOCUS yet these are indispensable for coping Interdisciplinary, holistic education
ON COGNITIVE SKILLS, with change. The new workplace and research call for a new paradigm.
requires trust among leaders and staff
INCLUDING THE ‘STEM’ alike. The key is sharing knowledge,
Technology opens many windows,
but human skills determine how it
TOPICS OF SCIENCE, allowing technology, research and is used. Instead of digging deeper
TECHNOLOGY, ENGINEERING innovation to fulfil potential. Sharing to understand a narrow discipline,
takes place only if individuals feel that
AND MATHEMATICS, they operate in a reciprocal system.
individuals can grasp interactions.
CANNOT PRECLUDE THE Societies must understand that what
Colleges must catch up. Amid worked well until a few decades ago, in
PRODUCTIVITY BENEFIT OF chatter about the impact of artificial education, research or business alike,
SOFT SKILLS, INCLUDING intelligence, quantum computing and may not work anymore. Universities
APPLYING KNOWLEDGE AND the Internet of Things, the transition must play a more direct role in forging
from the industrial to the technological societies and interact more with
FINDING OPPORTUNITIES age includes moving from narrow government, business and society.
OFFERED BY TECHNOLOGY disciplines and specific approaches, So far universities have welcomed
delivering reproducible scientific interdisciplinary and holistic thinking,
results, to options and the possibility but within limits – via special courses or
of comparing different options, which a small subset to existing curricula. This
entails searching for solutions across is better than nothing, but still reflects
a growth sector, owing to shorter work disciplines. Waiting for results must an industrial-age response. Barriers
lives and longer retirements. Today’s give way to a focus on asking the right among disciplines must be torn down,
elderly are more active than previous questions. and students must give thought to how
generations’, and they demand health This is a shift from more than 200 their skills can be applied in any area.
care, entertainment, social networks years of deduction to induction as the Among the lessons for educators and
and communication. foundation of education and research. workplaces: focusing on the ability
For students to learn to adapt requires Formerly deduction was the preferred to use knowledge and how to adapt,
motivation and self-confidence via method, which required forming a questioning cost-benefit analyses
autonomy, mastery and purpose. theory and, from there, working to based on fiscal results here and
Autonomy means that students solve a problem and seek an answer. now, engaging in long-term thinking,
learn how to learn, to perform and Today, however, big data, quantum emphasising the need to meet
to do research on their own without computing and artificial intelligence human needs rather than materialistic
seeking instructions or guidance. In the enable complex systems that may demands, providing feedback to
industrial world, guidance was normal, require emphasis on correlations, education and research on how to
because those societies were not interactions and interrelationships interact with other human beings while
evolving very fast. The ‘We used to do without the need for theories as such. resisting the trend of dehumanisation,
it this way’ approach was useful for the More than one best solution may be and relying on a combination of
previous era, but is obstructionist today. possible, and the end goal should be individualism, creativity and teamwork
systems and language models that to develop societies.
Students today must prepare to work adapt themselves. This is induction.
for situations with no paradigms.
Mastery requires an individual to feel European universities use two basic AUTHOR l Joergen Oerstroem
in control of a subject or craft, ready to models to confront this massive Moeller is an adjunct professor at the
renew his/her abilities to win respect change. The Anglo-American model Singapore Management University and
and acquiescence from others when is the analytic pattern of moving from Copenhagen Business School
canvassing for new paradigms. Purpose the parts to the whole, assuming that
demands understanding of what must the whole is the sum of its parts. The
be done, why and how. Enterprises Continental model prefers to move
must communicate purpose to their from the whole to the parts and then
staffs and expect two-way feedback: from parts to the whole, in a cyclical
employees must show initiative, process to understand a system. © 2017 YALEGLOBAL ONLINE. A VERSION
informing managers of improvements Asia’s universities, apart from the top OF THIS ARTICLE WAS ORIGINALLY
and new methods, while managers layer, are relatively new, so Asia has the PUBLISHED BY YALEGLOBAL ONLINE,
must inform their staffs about chance to start from scratch in forging HTTP://YALEGLOBAL.YALE.EDU
objectives while keeping an open mind. its own university model. It is by no

FEATURE | CORPORATE GOVERNANCE
THE GOOD
THE BAD AND THE UGLY

I WAS RECENTLY
ASKED TO SHARE
A FEW THOUGHTS I am involved in a research project THE BAD
on the definitive links of corporate
AND MY ANECDOTAL governance and behaviour with the CEO The Joker is no stranger to Batman
OBSERVATIONS of a company in the industrial fishing followers. He is a skilled and innovative
ON CORPORATE industry in southern Africa. As we are
interviewing chairmen, non-executive
man, a chemical engineer by profession.
He is flamboyant with a larger than life
GOVERNANCE AT A directors, CEOs, institutional investors personality who likes to dress up and be
COCKTAIL FUNCTION and others on the topic, interesting the centre of attention. (Some corporate
behavioural aspects and character
IN WINDHOEK. traits are surfacing, either serving good
and political leaders immediately come
to mind, don’t they?) Unfortunately,
SERVING ON BOARDS governance, undermining it or quite he uses his abilities for all the wrong
HAS PROVIDED ME simply, paying lip service. The research
results will hopefully over time add to a
reasons, cooking up lethal concoctions
to serve his own ego, his need for
WITH MORE THAN JUST body of knowledge to assist companies attention, his greed and his relentless
ACTIVE AND PASSIVE and their boards in governing companies pursuit of power.
effectively and ethically. What I am
OBSERVATIONS, hearing in these discussions is certainly The ‘Bad’ of corporate governance
CERTAINLY ALSO confirming what I have personally is unfettered power. There are many
examples of leaders and companies
LIFELONG LESSONS experienced.
that believe they can act above the
AND MOST DEFINITELY Friday nights are more akin to movies law, with no regard for ethics and
than cocktail functions where corporate their role as corporate citizens. These
SCARS governance is discussed, so I decided companies are often lead by flamboyant
on a movie theme for my talk. On the or arrogant leaders, some of whom
back of all the recent bad governance make derogatory remarks about what
stories in the press and the ‘bad’ ways they refer to as stupid or unnecessary
in which corporate governance is used, corporate governance rules that stifle
abused or ignored, reminded me of one growing the bottom line.
of my father’s favourite Western movies
− The Good, The Bad and The Ugly. The corporate world, in the public and
Being more of a superhero fan myself private sectors, unfortunately has many
and considering that my target audience examples of leaders and companies
Words Linda de Beer is mostly likely from my generation and that are fundamentally dishonest and
not my father’s, I adapted the theme to flawed, driven by greed and power, in
incorporate Batman. hindsight even called the ‘Mad‘. Some

FEATURE | CORPORATE GOVERNANCE
companies blatantly chase their greed underlying activities are fundamentally sustainable communities that will be
and power desires by exploiting the poor, flawed, crooked or dishonest. around long after the finite resources
disregarding the rights of communities The ‘Ugly’ of corporate governance is have been extracted, protect the
and showing no respect for the of much greater concern that the ‘Bad’. environment by harnessing solar power
environment. At least with the ‘Bad’ we know where and recycling, and taking a keen interest
The ‘Bad’ can only be overcome by we stand, but with the ‘Ugly’ everything in influencing policy and political will for
ensuring that we do not write our looks fine – companies win reporting the greater good.
governance rules and practices in any awards, have best-performing share Such companies are an inspiration and are
such way that a single person have prices, are in the top-listed companies poster children for good governance, often
undue power, irrespective of how good, and their CEOs and CFOs are applauded without even measuring themselves,
ethical and honest the current leadership and win accolades. However, the house per se, against formalised corporate
is. Even honest leaders can become of cards eventually falls over by the sheer governance rules. These companies
power struck and if not, there is no weight of the lie. and their leaders are inspirational and
guarantee that the generation after them Unfortunately, it is almost impossible to contagious, and good people cannot help
will have the same moral compass. Also, set rules and codes to govern against but to want to be part of it.
when such a power grab occurs, we greed and the worst of human nature.
should not shy away from addressing
the matter and taking ruthless corrective
However, it is important not to disregard IN CONCLUSION
early warning flags that will always arise
action. It is said that the only thing in these instances, and act upon them. Hard-core Batman fans will know that
necessary for the triumph of evil is for
Batman is not a superhero, as he has no
good men to do nothing.
THE GOOD super powers. He is a just an ordinary
person like you and me who wants to
THE UGLY The ‘Good’ in Batman is, of course, do good by doing things selflessly. In
Batman. These are companies led by order to do that he has equipped himself
If you followed the Batman films, you will people who honestly want to grow and with the necessary skills and tools to
be well acquainted with Harvey Dent − expand in the interest of all stakeholders serve this purpose. He fights lots of little
he was a good guy, the District Attorney, – shareholders, employees and the battles and does lots of little good deeds
who went bad when one half of his face communities in which they operate every day to slowly move things in the
was severely burned while he was trying – while respecting the environment, right direction.
to do good. That is why Harvey Dent is the legal system and human rights. This is good news for all of us because
known as Two Face – a pretty side and an These leaders mostly do not see the it means that one ordinary person can
unattractive, repulsive side. need to be in the limelight and they make a difference!
Some corporate leaders also have want the company, its people and its
two faces or two sides to them and achievements to get the due attention,
AUTHOR l Linda de Beer CA(SA),
do either right or wrong depending not them as individuals.
CD(SA) is a member of the King
on what is good for them at the time. There are many such good news Committee. She serves as an
These are often the ones that window- stories in our region, where companies independent director on a number
dress governance, ticking boxes that go beyond what is usually done by of boards and provides corporate
gives a false sense of comfort that all for example mining companies that governance advice to numerous
is well while the business model or the build houses for their workers, create companies in South Africa and Namibia

INFORM | PROFILE
ENERGY
SHE’S ALL
ENERGY On her return to South Africa in
December 2015, Pholoso instinctively
knew that she wanted to continue
working within the energy sector and
joined Shell South Africa.
its citizens. South Africa can only be
as great as its people. The people that
lead it, grow it and change it. They are
what drives me to make a difference.
What difference are you already
Highlights of her career at Shell thus making? As a founder of a non-profit
far include leading the award-winning organisation, the BPSF, which funds
finance business capability-building students aspiring to obtain professional
team and winning Shell’s Woman in qualifications, I believe I am making a
Empowerment Award at the 2017 Shell difference by educating today’s youth
Excellence Awards. and creating tomorrow’s leaders. By
What is your current job title empowering these students to obtain
and name of the company you’re professional qualifications we are
working for? Finance Advisor not only helping address the growing
Controller – Shell Downstream South youth unemployment rate but also
Africa (Pty) Ltd closing the skills gap for currently and
previously disadvantaged persons.
Describe yourself in three words
What do you believe is holding
AFTER HER ARTICLES Devoted. Daring. Divine.
South Africa back from reaching
AT PWC SUNNINGHILL, What city do you live in? And its economic potential? I believe
what do you love most about it? the biggest barrier to South Africa
PHOLOSO MASILELA Johannesburg; its future-mindedness reaching its economic potential is the
GRABBED THE and the energy of its diverse private sector’s limited contribution
inhabitants. From its history as the City
OPPORTUNITY OF A of Gold to its metropolitan and high-
to the growing economy and the
burden this places on the state. The
SECONDMENT IN rise buildings, I think there’s no better lack of investment from the private
place for a young professional to thrive!
LONDON WITHIN THE sector results in obstacles such as
How has being a CA(SA) assisted lack of infrastructure and monopolistic
ENERGY DEPARTMENT you in achieving what you have domination in critical sectors like
AT EY LLP. HER so far? The CA(SA) designation has power, telecommunications and
transport, which results in a high-cost
ROLE WAS THAT OF allowed me to be and surround myself
with thought leaders. Passionate economy,
ASSISTANT MANAGER professionals that are more than just How did international experience
WITH A CLIENT bean counters. It has allowed me advance your career? Living in
to engage with people from various London was an amazing career
PORTFOLIO OF SEVERAL sectors and in various positions within experience. It not only pulled me out
ENERGY COMPANIES, organisations. But most of all it has of my comfort zone but pushed me to
taught me that when hard work and
HER PRIMARY dedication are not enough, the passion
be technically competent in areas I had
never dreamed of working in. Being
CLIENT BEING BP I have for the work I do and the CA(SA) able to service LSE and NYSE clients
PLC (A FTSE 100 designation will get me through. and true multinationals allowed me
the opportunity to learn at the highest
COMPANY) What drives your passion to make
a difference in South Africa? People. level in a city known as one of the
As a company’s best assets are its world most diverse cities, with more
employees, a country’s best assets are than 300 languages spoken and 50
>
Y

INFORM | PROFILE
non-indigenous communities. It also Best piece of advice you ever marathon last year and a 32-kilometre
allowed me to manage and lead teams received? ‘Do something you are race this year. Hopefully a few full
from diverse backgrounds and grow passionate about, do something you and ultra-marathons will follow, and
my people skills, which is invaluable in love. If you are doing something you Comrades will go next!!
any career. are passionate about, you are just
What words do you live by? God, naturally going to succeed, and a lot of
love and loyalty. other things will happen that you don’t
need to worry about’ – CEO General
What is the greatest challenge Motors, Mary Bara
you’ve experienced and how did
you overcome it? The greatest What is one change every person
challenge I’ve experienced was the can make to make South Africa a
loss of my sister while completing my better continent? Treat everybody the
undergraduate degree. I did however way they would like their grandmother
know that she would want me to to be treated. With love and respect.
continue to preserver and work harder What do you do to relax? Run. I
than I did before. I did. And I dedicated started with 5 kilometres and 10
both that degree and the next to her. kilometres but I did my first half-

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FOCUS | ENTREPRENEURSHIP
BE THAT
INCREDIBLE
ENTREPRENEUR
Any entrepreneur will tell you that this enviable
title may allow you to get out an 8 – 5 job, but
you’ll have to roll up your sleeves a few extra
times, lose some sleep, take risks, and perhaps
even experience a couple of failures along the
way before it pays off. But they’ll also add that
it’s fulfilling, completely worth it and they’ll
definitely do it again. A few highly successful
entrepreneurs advise and discuss whether
you’ll be suitable for a start-up right to the
challenges of corporate entrepreneurship.
Illustration Liézel Els

Jeffrey Bussgang explains how

to assess your fit, find the right
company, and make the leap
ARE YOU
SUITEDFOR A
START-UP?
Words Jeffrey Bussgang Illustration Liézel Els
IDEA IN When I finished business school, I had a company has potential for success
BRIEF two job offers. The first was from the

Boston Consulting Group, where I’d
worked before my MBA programme
and is the right fit for you?
ASSESSING YOUR FIT

− the obvious choice for a young
professional in search of a stable, To work at a start-up, you’ll need to do
lucrative career. The second was from a three things you might not have learned
IF YOU MAKE THE Series A-stage venture-backed start-up in school or in jobs at larger companies:
START-UP LEAP with only 30 employees that wanted manage uncertainty, push the limits,
to transform the Internet into a secure
IN A STRATEGIC business environment − a much riskier
and think like an owner.
WAY − ASSESSING bet. I accepted the second offer and •
Manage uncertainty. Start-ups
represent giant experiments. Every
YOUR FIT, PICKING THE never looked back.
initiative is new. One hypothesis
RIGHT COMPANY AND In the years since, I’ve worked for three after another is being tested. Titles,
EFFECTIVELY SELLING start-ups and, as a venture capitalist, functional boundaries, roles and
invested in more than a hundred. I’ve responsibilities are often fluid.
YOURSELF − YOU’LL learned a lot not just about how to Anyone working for a start-up has
BE REWARDED WITH found a company − raising money, to be comfortable with large doses
A TYPE OF PERSONAL finding initial customers, hiring a of ambiguity and uncertainty.
team − but also about what it takes to
AND PROFESSIONAL join a start-up and help build it into a • ush the limits. My father was
P
FULFILMENT THAT’S successful organisation. an entrepreneur, and I remember
that whenever he was confronted
INCREASINGLY Relative to established organisations, with an obstacle − having to stand
HARD TO FIND IN start-ups can be hard to figure out. in a long line at a popular museum,
BIG, TRADITIONAL What are the jobs to be done? The best for example − he would look for
entry points? How can you tell whether
ORGANISATIONS a way around it, not by cutting in

line but by testing assumptions. and are pursuing a clear market. In mutual connections, or friends of
This tendency to actively question the highway stage you’re speeding friends, who might put you in touch
rather than passively settle is key to down a straight open road. You’re with these people. Through those
success at a start-up. improving operations incrementally various networks and databases
•
Think like an owner. Working while executing, scaling up and you should be able to identify an
at a start-up, you’re expected to iterating. ’in’.
become emotionally invested. The •
Pick a winner. This step – choosing •
Articulate how you can
sense of mission and adventure a company that you think will be contribute. Start-ups run lean, so
is greater than at a traditional a huge success and therefore they’re willing to take on only those
organisation, and your efforts provide you with tremendous people who can drive their success
are clearly and directly linked growth opportunities – is the and have a point of view on their
to the value and success of the hardest to get right. Even the most business. Before meeting with
enterprise. You must therefore be experienced investors in the world management, do your homework.
someone who can care deeply are wrong more than half the time. Try the product or service
about not just your own work but How can an outsider identify the yourself and analyse the business
all aspects of your company. likely winners in a given domain, model; then develop ideas for
market and stage? Do your own improvements and present them in
PICKING THE RIGHT due diligence, using the simple your interview.
criteria that we venture capitalists
COMPANY employ:
Finally − and this is something few
people do well − come bearing gifts.
If you feel that you’re right for a o Is the founding team Yes, you’re the one looking for a job.
start-up, you next have to choose the compelling? Can its members But you can flip the relationship by
right company for you. My advice is articulate a vision that inspires immediately offering help − expertise,
to approach this important decision you and others around them? advice, contacts − with no expectation
methodically, in four steps. o Is the market in which the of reciprocity. Ask, ‘How can I help?
company is operating huge What are you challenged with?’
•
Pick a domain. First, find a field
you’re passionate about. This − that is, greater than $1 If you make the start-up leap in
means asking yourself a series of billion in revenue potential? Is a strategic way − assessing your
questions: ‘Do I prefer a business it experiencing some kind of fit, picking the right company and
that focuses on consumers or disruption that might lead to effectively selling yourself − you’ll
on businesses? What kind of opportunity for a new entrant? be rewarded with a type of personal
customers would I like to serve? o Are the unit economics − and professional fulfilment that’s
Which brands do I admire the the ratio of net revenue to increasingly hard to find in big,
most? What are my favourite costs for each customer or traditional organisations.
websites, apps or subjects to read product unit − attractive? Can
about?’ the company articulate and
•
Pick a city. Not everyone can compare the lifetime value AUTHOR l Jeffrey Bussgang is a
relocate anywhere for work. But for and acquisition cost of each senior lecturer in the Entrepreneurial
those who do have that flexibility, I customer? Management Unit at Harvard Business
recommend thinking very carefully School and a general partner at
about where you’d like to live. SELLING YOURSELF Flybridge Capital Partners
If you’re not currently based in
an entrepreneurial hub such as The next challenge is to position
Silicon Valley, New York, Boston, yourself so that the start-ups on your
Los Angeles, Tel Aviv or Berlin, you list want to hire you. You’ll need to do
should consider moving to one. two things well:
•
Pick a stage. When describing the • rrange a warm introduction.
A
various stages of a start-up, I often Many start-ups are full of people
use a road-building metaphor. In with large social networks. It is
the jungle stage you have no idea your job to identify key players at
where the paths are. Many use the companies you’re interested
the term ‘pre-product/market fit’ to in and find ways to connect
characterise this nascent period. with them. Websites such as
In the dirt road stage, the path is Crunchbase and Mattermark list NOTE
bumpy and winding, but it’s there, valuable information about start-
and the goal is to move down ups, including their key executives.
© 2017 HARVARD BUSINESS SCHOOL
it as quickly as possible. You’ve
PUBLISHING CORP
LinkedIn searches can help you
developed a well-defined product find other employees. Then look for

ENTREPRENEURSHIP
FLEXIBILITY
THE BIG TRADE-OFF FOR WOMEN
Entrepreneurship is hard work. Initially, you won’t have

the flexibility you crave, but remember why you’re
doing it in the first place
One of the biggest reasons why ‘Flexibility is one of the drivers of actually gives them more time to spend
women leave the corporate world to becoming an entrepreneur. However, with their families. Many would-be
start their own businesses is the idea without adequate support structures entrepreneurs find it difficult to strike that
of having more flexibility to manage in place to manage the administration balance between work and their personal
family and household responsibilities. and the financial side of the business lives. Changing gender stereotypes of
In ’The Hidden Factors: SA Women in and assist with family commitments, who does what in a family and women
Business’ research report carried out flexibility is eroded and entrepreneurs overcoming their own reluctance to
by the Sage Foundation and Living feel overwhelmed. Corporate provides ask for help are key changes that could
Facts, 59% of respondents indicated a more structured environment – with encourage female entrepreneurship,’ says
they had bought into the promises both business support internally and Joanne van der Walt, Sage Foundation
of self-employment: being paid to do a more defined line between work Programme Manager for Africa.
what they love; to work when they time and home time, allowing women Those who have found the sweet
want; and to use their skills to build to better manage their roles and spot between entrepreneurial success
their own businesses rather than responsibilities,’ says Marylou Kneale, and flexibility say the secret is time
someone else’s. founder of Living Facts. management and prioritisation.
The idea of being able to cheer her son But those who stuck it out and put in They offer the following advice to women
on at his football game or to attend a the long hours in the first crucial years who are considering venturing out on
networking breakfast on a Tuesday – of business development say the hard their own:
because she wanted to – appealed to work is worth it. Once their businesses
were thriving, they eventually got their • Focus on your core business and
many female entrepreneurs. delegate the rest. If someone else
flexibility back and so much more:
But the research also found that when financial independence, a sense of can do something better and cheaper
it comes to entrepreneurship, time is in purpose, and an important role in than you could do it yourself,
short supply – at least in the beginning. growing South Africa’s economy and outsource it.
In fact, 19% of women returned to empowering other women. • Buy time by automating as many
corporate life because a nine-to-five job business processes as possible such
gave them more flexibility than self- ‘Many women don’t realise how much
time goes into starting and running as billing and accounts receivable.
employment. Streamline payments and accounting
a business and often a corporate job

IDEA IN
BRIEF
THE WOMEN WHO
HAVE FOUND
THE SWEET
SPOT BETWEEN
ENTREPRENEURIAL
SUCCESS AND
FLEXIBILITY SAY
THE SECRET IS TIME
MANAGEMENT AND
PRIORITISATION.
• FOCUS ON YOUR
CORE BUSINESS
AND DELEGATE THE
REST.
• BUY TIME BY
AUTOMATING AS
MANY BUSINESS
PROCESSES AS
POSSIBLE SUCH
AS BILLING AND
ACCOUNTS
RECEIVABLE.
processes with reliable, secure with other parents; ask your partner
online solutions. to hang up the washing or cook • DON’T BE AFRAID
• Don’t be afraid to ask for help. dinner this week. Everyone wants to TO ASK FOR HELP.
Lean on your support network see you succeed. Let them help you
to help manage the household do that.
responsibilities. Arrange a carpool
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February 2018 accountancy.co.za 27

THE CHALLENGE OF
CORPORATE
ENTREPRENEURSHIP
To large companies, creating new businesses is the challenge of the day. Because
of maturing technologies and ageing product portfolios, a new imperative is clear:
Companies must create, develop, and sustain innovative new businesses
Words Coenie Middel; Illustration Liézel Els
Innovation. It seems like everyone is no back end – there is no organisational a systemic and widely distributed
talking about it these days. And rightly system/method for effectively capability. Yet how many companies
so, but the realities with innovation is screening ideas, aligning them with the have actually achieved that? The
that 80% of innovation projects never business strategy, allocating funding sad truth is this: most organisations
reach the market. and management resources, and today still have absolutely no model,
The innovation process from idea to guiding a mixed portfolio of concepts/ no practical notion, of how to drive
market is full of pitfalls and inefficiencies. opportunities through the pipeline innovation.
Stage-Gate founder Robert Cooper toward commercialisation. Most companies have no clue of how
shows that for every seven new product Then you have the companies that to build a corporate innovation system
ideas about four enter development, 1,5 have no clear strategy. Without a that seamlessly integrates leadership
are launched, and only one succeeds. clear strategy you have no focus for commitment, creates internal support,
A study of Stevens and Burley gives innovation. Companies also struggle inspiration, infrastructure, prioritisation,
even more disastrous ratios. Their study with issues that impact innovation, for processes, tools, talent development,
shows it takes 3 000 raw ideas to come instance culture, uncertainty, the lack cultural mechanisms and values; they
up with one successful product. of support, processes and tools, lack wouldn’t even know where to start. It is
The biggest challenge to innovation of market insights, politics, the fear of not the lack of willingness to innovate
is not how to generate new ideas failure and insufficient skills, and the that is missing, it’s the how.
and opportunities. It’s how to make wrong teams. So, invariably, what we For innovation to succeed it has to
innovation a deeply embedded capability find is that the whole innovation effort be woven into the everyday fabric
in the organisation. I have witnessed eventually loses momentum and fails. of the company just like any other
various company initiatives over time, And all those enthusiastic innovators organisational capability, such as
some of them focusing on idea creation inside and outside the company become quality, or supply chain management,
and the so-called creating ‘a culture of cynical and discouraged as they watch or customer service. In other words,
innovation’ – so they launch some kind their ideas go nowhere; sound familiar? for innovation to really work, and to be
of ideation initiative with a lot of hoopla The real challenge, therefore, is to sustainable, it has to become a way of
and they get a whole bunch of ideas. turn innovation from a buzzword into life for the organisation.
But then they hit a wall because there is

IDEA IN
BRIEF
IT IS BELIEVED THAT
What we are seeing when working • The impact In the long run, you 80% OF INNOVATION
with clients is that customers lack the cannot survive indefinitely by PROJECTS FAIL.
imagination to envisage innovative producing existing products at a
products that address their emerging − lower cost. Innovation budgets are FOR INNOVATION TO
or even existing − needs or desires. For cut. SUCCEED IT HAS TO
example, participants in focus groups What is innovation, then? Innovation is: BE WOVEN INTO THE
typically opt for product innovations that
feature only minor changes from the • The conversion of a new idea into EVERYDAY FABRIC
current version. When these products revenues and profits (Lafley & OF THE COMPANY
hit the market, they often fizzle out Charan) JUST LIKE ANY OTHER
because small improvements aren’t
enough to alter customers’ entrenched
• The process that turns an idea ORGANISATIONAL
into value for the customer and
buying habits. results in sustainable profit for the
CAPABILITY. IN
enterprise (Carlson & Wilmot) OTHER WORDS, FOR
INNOVATION AND • The creation of a viable new INNOVATION TO REALLY
OPERATIONAL EXCELLENCE offering (Larry Keeley) WORK, AND TO BE
• A product, process or service new SUSTAINABLE, IT HAS TO
Companies often confuse innovation
with operational excellence.
to the firm, not only new to the BECOME A WAY OF LIFE
world or marketplace (Hobday)
Operational excellence is:
FOR THE ORGANISATION.
• Promising ideas that are
• The theory A philosophy of the transformed into powerful new
IT SEEMS THESE DAYS
workplace where problem-solving, ways to create value and wealth COMPANIES OFTEN
teamwork and leadership results in (Coenie Middel) CONFUSE INNOVATION
ongoing improvement. We are also seeing in the market that WITH OPERATIONAL
• The reality Trying to do things companies encourage employees to EXCELLENCE.
better and cheaper. ‘think outside the box’ as a way of

getting beyond predictable product • Check fit: Checking if your idea, • Product system – How you create
extensions. ‘Give free rein to your technology, customer issue or complementary products and
creative impulses,’ they are told, ‘and business challenge fits your services
try to imagine products that respond personal and corporate priorities. Four types of innovation are focused on
in truly innovative ways to customer • Create conditions: Organising the more customer-facing elements of an
needs.’ But more often than not this right moment, the right team, the enterprise and its business system:
kind of brainstorming yields a flurry of right pace and the right funding for
ideas that, while appealing, are just • Service – How you support and
your innovation initiative. amplify the value of your offering
too far out given the company’s brand
image or capabilities. They are quickly • Discover: Discovering trends, • Channel – How you deliver your
discarded or if they make it to market, markets, technologies and offerings to customers and users
simply flop. customer insights.
• Brand – How you represent your
Many businesses also focus on • Create business model: Creating a offerings and business
customer-led innovation instead viable business model.
• Customer engagement – How you
of customer-centred innovation. • Select technology: Identifying and foster compelling interactions
Customer-led innovation are reactive selecting the right technology to
and too self-consciously explicit about deliver your new product, service, First, analyse the present offerings
putting the customer first. Customer- process or experience. in the industry in which you want to
centred innovation, on the other hand, innovate. And then ideate with the help
• Check freedom to operate: of various innovation techniques and
is grounded in a deeply empathetic
Checking if you do not infringe try to innovate among as many types
understanding of customer needs and
the intellectual property rights of as possible for each new offering.
wants but also grant the organisation
others. Experience has shown that with real
the freedom to make unexpected and
often unasked-for leaps forward that • Experiment: Carrying out a breakthrough innovations, at least five
will lead to long-term success. systematic research or test of the ten types can be checked off.
which validates the adoption and Remember the front end of innovation
So how can companies hit the
attractiveness of your new product, starts with an idea, a technology, a
innovation sweet spot − far enough
service, process or experience. problem or a business issue and ends
from existing products to attract real
interest but close enough to fall within • Create new business case: with a well-founded new business case.
a company’s existing positioning and Creating a well-founded convincing There are no old roads to new
capabilities? Companies need to adopt business case for your new destinations.
a proven innovation methodology product, service, process or
like FORTH. FORTH is a globally experience.
renowned innovation methodology Various research studies have been
rooted in design thinking developed AUTHOR l Coenie Middel CA(SA),
conducted and Larry Keeley and his RA, is founder of Middel & Partners.
in the Netherlands and was adopted colleagues structured innovation into
by various international companies In 2016 Coenie was awarded one of
10 types by analysing nearly 2 000 the most “Inspiring Accountants in the
over a decade. Through a structured examples of the then best innovations.1
facilitated process, in only 15 weeks an World”.
internal team of the company delivers They found that four types of innovation
3−5 innovative solutions tested with are focused on the innermost workings
real customers and validated business of an enterprise and its business
cases. Recently it was scientifically systems:
proven that FORTH increases the • Profit model – How you make
efficiency of the innovation process as money
it leads to more ideas being actually
• Network – How you connect with
launched in the market compared to
others to make money
commonly used stage-gate processes.
• Structure − How you organise and
A proven innovation methodology
align your talents and assets
will address the following elements
required for success: • Process – How you use signature or
superior methods to do your work
• Ideate: Generating and choosing
original relevant ideas for a product, Two types of innovation are focused on NOTE
service, process or experience. an enterprise’s core product or service: 1 Larry Keeley, Helen Walters, Ryan Pikkel and
Brian Quinn, Ten Types of Innovation: The
• Focus: Defining your innovation • Product performance – How you Discipline of Building Breakthroughs, Heboker,
centre of interest, including all the develop distinguishing features and NJ: Wiley, 2013.
boundary conditions. functionality

THE DARK SIDE OF

ENTREPRENEURSHIP
THE EMOTIONAL
ROLLER-COASTER
The entrepreneurial success stories that come out of Silicon Valley could give the
man in the street the impression that it’s easy to build a company, raise capital and
successfully exit your venture where after you move onto the next conquest. The
reality is basically the opposite though
Words Trevor Gosling, Illustration Liézel Els
Ideas are easy, and everyone has an emotional roller-coaster! Examples Celebrate your victories and don’t let
them. Without execution, ideas of this are the high you’re on when your mind wonder too much onto the
are just thoughts in your head that your product is finally ready for launch, next milestone rather keeping in mind
never see the light of day. So, with which quickly translates to a low as you that if you continue to execute on the
execution being everything, why is realise now you need to start selling short-term goals your vision will come
it so difficult to accomplish the end and figure out if there really is a market together.
goal? It’s because, more than anything, out there. Or the high you get after And hey, if you’ve put in the work,
entrepreneurship is a game of mental you’ve raised funding and then realise shown patience and tried everything
toughness that tests a person on every now you need to start hitting targets possible to make your venture succeed
level. otherwise you’re in a world of pain and it doesn’t, don’t take it personally
Personally, I’ve always worked with the with your investors. Or even the high – there’s far more to you than just your
mindset of breaking my end goal into you get when you hit your quarterly business.
achievable short-term goals knowing target only to realise you need to show
that as those milestones are achieved, 50% growth for the following quarter.
so the complete picture for the After six years of entrepreneurship, a AUTHOR l Trevor Gosling CA(SA) is
business will take shape. However, I’ve few pivots, a number of funding raises Co-founder & CEO of Lulalend. Trevor
also found that achieving those short- and a successful exit, I’ve come to was also a 2015 Top 35 Finalist.
term goals is met by short-lived highs realise that managing the mental side
and followed by gut-wrenching lows of execution is the most important.
as a new reality sets in. Kind of like

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FOCUS | THE HOPE FACTORY
HOW SAICA
IS HELPING
SMALL BUSINESSES
Words Emuron Plaatjies
Some researchers and observers When one speaks to entrepreneurs and Africa through providing entrepreneurs
are saying that although the rise in enquire about their challenges, those with holistic mentorship and business
entrepreneurial activity is encouraging, below are some of the most commonly development services; facilitating
it is still not sufficient. We are not as mentioned: access to funding and new markets;
entrepreneurial as we need to be. We • Lack of funding and positively influencing corporate and
are still operating well below what we government policies towards the growth
are capable of and what our economy • Lack of management skills and of small black businesses.
needs. We are also lagging behind the business knowledge
Personal development, business skills
rest of the Western world. • Inadequate support structures mastery and financial skills development
Small businesses are said to be the • Access to markets are critical elements of THF’s enterprise
key to South Africa’s unemployment development and mentoring model.
• Corporate and government
problem. It is estimated that SMEs Financial skills transfer and financial skills
bureaucracy
employ about 60% of South Africa’s development is therefore an important
labour force. Entrepreneurs therefore expect aspect of THF.
incubators and accelerators to assist
GDP growth rates in South Africa has THF firmly believes that small businesses
them in breaking down the above
not lived up to its potential for the last have a better chance at success when
barriers.
10 years. There’s been a steady decline the entrepreneur is equipped with
in our GDP growth and expected financial knowledge, financial awareness
GDP growth rates are constantly THE HOPE FACTORY and is assisted by financial and business
revised downwards. GDP growth can experts.
be boosted significantly by nurturing The Hope Factory (THF), powered by
entrepreneurs. the South African Institute of Chartered THE ROLE OF THE
Accountants (SAICA), is an established
Incubators and accelerators can be very
enterprise development not-for-profit CHARTERED ACCOUNTANT
instrumental in nurturing entrepreneurs.
company. It plays an important and
Effective and efficient incubators can Entrepreneurs tend to focus on the
active role in transforming the South
help small businesses grow from operations of the business, on producing
African economy by advancing the
survivalist enterprises to sustainable, and selling. Transactions are often not
sustainable growth of entrepreneurial
growing businesses that could reduce recorded and accounting is placed on the
black businesses.
unemployment significantly and, grow back burner. Entrepreneurs only approach
the economy and contribute to the THF’s mission is to foster a greater their accountants or bookkeepers for
fiscus. entrepreneurial ecosystem in South tax clearance certificates or financial

South Africa is experiencing an entrepreneurial

renaissance. South Africans from all walks of life are
taking risks and joining the hustle
IDEA IN
BRIEF
THE HOPE FACTORY
OFFERS CUSTOMISED
ENTERPRISE
AND SUPPLIER
DEVELOPMENT
SOLUTIONS TO SUIT
YOUR COMPANY’S
B-BBEE STRATEGY.
ITS INNOVATIVE
SOLUTIONS MAXIMISE
YOUR RETURN ON
INVESTMENT AND
WILL EARN YOU VITAL
B-BBEE POINTS ON YOUR
SCORECARD.
IT ALSO OFFERS
statements on a very ad hoc basis when bookkeeping. We assist entrepreneurs
they deem it necessary. to articulate their strategies, draft their
SOCIO-ECONOMIC
business plans and most importantly DEVELOPMENT
Most entrepreneurs either neglect
financial management or is ignorant financial management. We bridge SOLUTIONS THROUGH
about the importance thereof. the gap between funding institutions PROGRAMMES AIMED AT
and small businesses. We help SMEs
Entrepreneurs tend to know their
identify their funding needs and START-UP BUSINESSES.
businesses but don’t know their
numbers. Most informal business requirements. We assist them with PARTNER WITH THE
using appropriate finance products
owners and entrepreneurs do not
and suitable capital structures for their HOPE FACTORY TODAY
possess the financial knowledge and
skills required to master their numbers. business. AND LET’S BUILD
Financial management is a critical and We help small businesses to be more HOPE IN OUR NATION
crucial function in every business, no forward looking and more strategic in THROUGH HIGH-IMPACT
matter how big or small. Business is their approach. We help them frame
finance. their challenges differently and come
SME DEVELOPMENT.
CAs(SA) are consistently recognised up with solutions together. A small
globally as leading finance professionals. business with a well-defined strategy
They run and manage some of the is able to focus more long term and is
biggest businesses in South Africa and likely to be more sustainable. skills. If we apply ourselves to the need
even abroad. With a business plan that’s articulated of small businesses in South Africa and
properly, it’s easier to approach combine our skills with entrepreneurial
CAs(SA) therefore play a crucial role in flair we can reduce the small business
business development and business customers and funders. We therefore
enable them to get closer to markets. failure rate.
leadership in South Africa. And they
can play an even bigger and more When small businesses and CAs(SA)
impactful role with small business and work together, we break down many
assisting small businesses with financial challenges that entrepreneurs typically
AUTHOR l Emuron Plaatjies CA(SA)
management and strategic management face.
MMFI is co-founder of of Rubele
of their businesses. As CAs(SA), we have a significant role Consulting, a Hope Factory ambassador
CAs(SA) assist small business with so to play in small business development. and Financial Management Consultant
much more than tax, accounting and Our training and education equips us to the Incubated entrepreneurs.
with vital business and problem-solving

ENTREPRENEUR
PROFILES
INDUSTRY/SECTOR: Accounting and taxation

What we do: Our business provides a range of services with a specific focus on SMEs
and start-up companies. We specialise in accounting and taxation services
OPERATIONAL AREAS: Nationwide

What is your company’s X-Factor? We are obsessed with client satisfaction in that we
strive to produce a high-quality result for each client by applying a decent work ethic and
a result-driven approach to our dealings
The greatest challenge you experienced as an entrepreneur? To strike a balance
between building a trusted brand and turning every opportunity into sales so as to grow
WISEDUBE the business
CONSULTING SERVICES How has The Hope Factory assisted you? The Hope Factory has created a platform to
interact with various entrepreneurs and this has increased my business network
MPUMELELO DUBE
INDUSTRY/SECTOR: Construction
What we do: Our core business is construction project management and construction
management. Other business offerings include general building and maintenance, civil
works, and product supply
OPERATIONAL AREAS: Gauteng, Limpopo, Free State, Mpumalanga

What is your company’s X-Factor? Excellence in the delivery of quality services and
solutions on time and within budget through the knowledge, experience and exposure
to industry. We strive to be ‘good stewards’ by contributing and applying professional
practices
MAPONYA MAGEBE The greatest challenge you experienced as an entrepreneur? Market penetration
PROJECTS (PTY) LTD and access to the market
How has The Hope Factory assisted you? In rebranding the company to reposition it
THOBELA MAPONYA

View personal videos of all the Entrepreneurs by

clicking the video link next to each profile
INDUSTRY/SECTOR: Construction (professional services)

What we do: We are architectural service providers, professional architects who
research, consult and manage projects in master planning for new developments and
the design of buildings, landscapes and interiors
OPERATIONAL AREAS: Gauteng and Eastern Cape

What is your company’s X-Factor? Business integrity, upliftment and mentorship,
collaboration, design creativity, superior project delivery, and client satisfaction
The greatest challenge you experienced as an entrepreneur? Cashflow management
in an industry where late payment has become prevalent and largely discounted. This
led me to quickly understand that your business needs to be diversified to ensure
multiple income streams in order to survive
How has The Hope Factory assisted you? The Hope Factory has taught me better
management tools and a way of seeing my business from a financial perspective. The
NZUZA ARCHITECTS
financial boot camps have allowed me to step out of my business − to start working
NOMPUMELELO on how I can start working more on my business rather than in it. I am becoming an
NZUZA entrepreneur rather than self-employed
INDUSTRY/SECTOR: Manufacturing
What we do: We manufacture quality products for ethnic natural hair, including
moisturiser, sealer, clay cleanser, conditioner and hair oil
OPERATIONAL AREAS: Gauteng

What is your company’s X-Factor? Our amazing products are made from 100%
indigenous oils and nourish, soften and hydrate natural hair
The greatest challenge you experienced as an entrepreneur? Financial assistance
HAIRTURAL
How has The Hope Factory assisted you? It has assisted with making the company
BOTLHALE TSHETLO aware and compliant with all regulations (financial, labour, etc)

INDUSTRY/SECTOR: Insurance
What we do: We are an insurance brokerage with our primary focus on short-term
insurance intermediary and advice services, particularly personal, motor and household,
commercial, corporate, and municipal insurance. We also do niche market products like
medical malpractice, public liability, professional indemnity, construction guarantees,
and goods in transit
OPERATIONAL AREAS: Nationwide

What is your company’s X-Factor? Demystifying the myth around insurance. We
take time to educate our clients about insurance products and also try to tailor-make it
according to their needs. We also try to service clients in their home language
The greatest challenge you experienced as an entrepreneur? Not having access to
the market
MARARA RISK How has The Hope Factory assisted you? It has helped me learn more about my area
SOLUTIONS of business, especially the financial aspect of the business entrepreneur rather than
THANDO SADIKI self-employed
INDUSTRY/SECTOR: Carpentry manufacturing

What we do: We specialise in the manufacturing of office furniture, shop fittings and
kitchen installations. We do interior design and offer space solutions for various clients
through carpentry methods
OPERATIONAL AREAS: Gauteng and Mpumalanga

What is your company’s X-Factor? We provide our clients with the highest quality
at minimal cost by ensuring our product offerings are aesthetically pleasing. Our team
believes in creating convenience and lasting relationships with our customers by
providing an unforgettable customer service experience that continues to exist long
after the sale of a product
The greatest challenge you experienced as an entrepreneur? Breaking into new
market segments (the intended target market), especially when the business is still in
the start-up phase and you do not have credible references and experience. After the
start-up phase one of the toughest challenges is obtaining clients that will keep the
business afloat and sustainable
How has The Hope Factory assisted you? In various ways, particularly financial
management. As entrepreneurs we often think we need more money or funding but
forget the importance of financial management. The Hope Factory helped imparted
BALISTROM FURNITURE vital knowledge on how to manage money in business as entrepreneurs through
SOLUTIONS implementing fluent financial systems and making sure that one closely monitors
every cent
THAPELO SENOAMADI

INDUSTRY/SECTOR: Construction and building maintenance

What we do: We specialise in the installation and maintenance of ceiling and drywall
for residential households, commercial buildings and businesses, as well construction
companies
OPERATIONAL AREAS: Gauteng and surrounding areas

What is your company’s X-Factor? We are ISO-9001/2008 audited and are stringent
in meeting and exceeding clients’ requirements at the first attempt. We always go the
extra mile to ensure that our clients’ belongings and property are well taken care of
The greatest challenge you experienced as an entrepreneur? Securing competent,
long-serving supervising and sales employees. Accessing high-volume markets such as
malls and hospitals
How has The Hope Factory assisted you? By introducing me to a lot of business
concepts I was unfamiliar with. I learned how creating, implementing and sustaining
BRIMSTONE CEILINGS
systems can help improve and prepare a small business for growth. Today we are
& PROJECTS CC ISO-9001/2008 registered. Also, keeping proper accounting records and analysing
BRIAN MOLOANTOA accounting reports
INDUSTRY/SECTOR: Information and communication technology

What we do: We build custom information-processing solutions for corporate
companies and SMEs. We also map business and workflow processes and manage IT
governance risk and compliance issues
What is your company’s X-Factor? We build custom information-processing solutions
that are specific to an organisation’s workflow processes and business rules. Our mobile
app solutions are platform independent and scale well across mobile platforms such as
Windows Mobile, iOS and Android. We use the best-of-breed resources to ensure that
we deliver solutions built for you within time and budget
The greatest challenge you experienced as an entrepreneur? Not having proper
access to markets and competing against companies who have saturated the industry
CATIN SYSTEMS over time
(PTY) LTD How has The Hope Factory assisted you? The financial boot camp was by far the
most intuitive and impactful. It assisted us to better understand and manage finance
BYRON CATIN

ADVICE | VIEWPOINTS
ENTREPRENEURS
DESERVE
TO RETIRE
While entrepreneurs may be exceptional in building a small
or large business, that expertise, tenacity and personality
do not guarantee them a successful retirement
Wealth Advisor Research shows that between 70% and 80% of small businesses in South
MIKE LLEDO CA(SA) Africa fail and fewer than 50% survive beyond five years.
Mike Lledo is an Independent
Financial Services Consultant But entrepreneurship is not just about start-ups. Richemont, Nike,
Volkswagen, Oracle, Facebook and Walmart are household names. While
publicly traded, they are still classified as family-owned businesses with
generations of entrepreneurs. And the stories of failures in these well-
established companies abound. VW’s emissions scandal cost them an
estimated $30 billion. The Samsung 7s went up in flames. And then the
world changes.
Uber becomes the biggest taxi company without owning a vehicle. Airbnb
becomes the biggest ‘hotel’ group, but without a single hotel. Tesla
changes the car industry and creates a spin-off of a whole new generation
of entrepreneurs.
So how does this fit into a personal financial plan? Building and protecting
the right assets is critical.
IN SUMMARY Broadly, it’s been motivated that we have four different types of assets in a
financial planning framework.
• Intellectual: This is the ability to generate income through one’s IQ,
Understand your financial planning EQ, expertise, experience, innovative abilities, leadership skills, and
framework and objectives for each class of
asset.
in fact physical capacity. These are the intangibles that can generate
cash flows and tangible assets. Some numbers suggest that the
Don’t confuse or ‘bet the house’ on your lifetime value of a young professional can be R60 million plus. You’re
business or personal assets and neglect your biggest asset, especially in the early years. Apart from a healthy
your retirement. lifestyle, these can also be protected with anything from dread disease
Protect your business assets and personal to income protection, and disability and life insurance solutions.
wealth with appropriate assurance for when • Business: These are the cash flows one generates as an employee and
‘business or life happens’. shareholder and ultimately a capital value on full or partial exit from
Invest the wealth from business assets the business. Until these assets are converted into retirement capital,
prudently whether for business growth or they are subject to the challenges of business risk. But these are just a
building personal or retirement assets. component of building sustainable and real value.
Evaluate the legal structures, estate • Personal: These are our homes, cars, furniture, artwork and an
planning, tax planning and cash flow assortment of toys. They are normally depreciating assets with high
planning options available to you. costs of maintenance, even though we like to argue otherwise.
Generally, they also don’t generate earnings to retire on if we are going
Seek professional financial advice in these
to continue living in them, driving them, or just admiring them.
areas and don’t forget to protect yourself
from yourself. • Retirement: These are the assets or investments that need to be
structured, protected and balanced in a proper financial plan to fund the
And start early. expected or aspirational lifestyle on retirement.

ADVICE | VIEWPOINTS
ELIMINATING
CRUTCH
WORDS
We have been guilty of using these in our conversations
and speeches. It helps us to get through a stressful public
engagement, but to our audience, we might be perceived
as being unprepared, incompetent and lacking confidence
Public Speaking Trainer
COMMON CRUTCH WORDS DINESHRIE PILLAY CA(SA)
Business Owner and Public Speaking Trainer
Filler crutch words include ‘Um’ and ‘Ah’ which don’t really mean anything.
Emphasis crutch words – where you overuse the same word in a conversation,
examples: ‘actually,’ ‘really,’ ‘literally,’ and ‘consequently.’
Personal favourites: You might have a word that you often use: ‘perfect,’
‘awesome,’ ‘super,’ ‘excellent,’ are some commonly used.
Unnecessary adverbs: These are words that have a place in writing and
conversation but are frequently overused: ‘basically,’ ‘definitely,’ ‘very’ ‘absolutely,’
‘seriously’ and ‘obviously’ are the common offenders.
Hedging phrases: These are words that you might use to join two sentences
as you drag out saying the word out loud: ‘maybe,’ ‘well,’ ‘I suppose,’ and
‘nevertheless.’
WHY DO WE USE CRUTCH WORDS? Growing up, we have been conditioned
to respond immediately, so when we are thinking of something to say, we feel
MORE
compelled to fill the uncomfortable silence. Words like ‘Um’ and ‘Ah’ are also used
to hold the conversational floor. Certain crutch words could also be common to a
TIPS
certain age group – ‘Like’ being a commonly used word.
HOW TO ELIMINATE CRUTCH WORDS Awareness is the first step to elimination.
Record yourself speak for an unbroken period of at least five minutes. Write
down all the crutch words you used. Make a concerted effort to avoid, reduce and IMPROVE SCRIPT Write for the ear and
ultimately eliminate from your conversation. not the eye!
Focus on quality of speech over quality. You tend to have more crutch words when
you repeat points.
COMMA = 1 PAUSE Pause between
Plan your speech in advance. Practice to fluently deliver the opening and closing words; else you’ll confuse your audience.
part of your speech – know that section word-for-word.
Connect emotionally to what you are saying and focus on delivering that message PERIOD = 2 PAUSES At the end of a
to your audience. When you focus on the words and on its delivery, you are less sentence, pause twice as long.
likely to use crutch words.
If you are lost in thought – refrain from using a crutch word, your audience will not DOUBLE UNDERLINE KEY WORDS,
notice – unless you say so! PHRASES, TECHNICAL JARGON To
Most people fear silence in conversations. Silence is good, it allows people a understand where to slow down and
reduces crutch words.
chance to digest what you have said and can also be used effectively for emphasis
of words. Silence also gives you as a speaker a chance to catch your breath and
composure. CRUTCH WORDS (VERBAL VIRUSES) can
dilute your leadership credibility; reduce
Slow down the pace. You are less likely to use a crutch word when you speak and ultimately eliminate from its use.
slowly and with purpose.

ADVICE | VIEWPOINTS
BUILDING AN
ENTREPRENEURIAL
CULTURE
Last year this time I wrote that you should take an
entrepreneurial view of your organisation and start
experimenting and breaking stuff. Why? Because if you
don’t foster a culture of entrepreneurship and innovation,
Business Advisor you’re going to get left behind.
KEVIN PHILLIPS CA(SA)
CEO of IDU Group
If you thought 2017 was fast-paced and disruptive, hold onto your seats as
we enter 2018. Virtually every major industry is going to be shaken up by
technology and what it enables. Not for its own sake, though, but because
customers demand it.
Start-ups know this and are building their businesses from the ground up to
harness things such as cloud computing, automation, artificial intelligence and
mobility.
They’re also not asking their people to do stupid, mundane tasks, and are
instead freeing them up to be more strategic, creative and customer-focused.
So how do you build a culture of entrepreneurship and innovation? Well, first,
you don’t have to be an entrepreneur yourself. Nor does everyone in your
business. But what you do need to do is enable a culture that is open to
ideas. From anyone. Even ideas that, at first glance, seem to be wild, because
you never know where they can lead you.
Take the invention of Post-it notes by 3M employees. In 1968 an employee
invented the adhesive, but didn’t really have a use for glue that wasn’t
very sticky. It was six years later, in 1974, that another employee made the
connection and realised the glue could be used to create a reusable sticky
TIPS note.
Compare this to Kodak, who sat on its employee’s invention of the digital
camera and, according to some versions of the story, the foundation
The only stupid questions or ideas are the technology of the mobile phone, to avoid cannibalising its existing business.
ones that don’t get asked or shared. This squashing of ideas ended up in Chapter 11 bankruptcy protection by
2012.
It doesn’t have to be perfect at first. Ideas I often write about compiling your budgets with input from the coalface.
in progress are valuable too, especially if Getting the input from the people at the sharp end of the spending and
others can make them stronger.
making money builds transparency, buy-in and alignment. Of course it also
allows you to tap into insights on the ground that you simply would not have
Go wide, and get people talking to each access to from behind your desk.
other. You never know when and where
the lightbulb insight that saves you Think of building your entrepreneurial culture in the same way. Ideas can
money, makes you money, or helps you come from anywhere: the new hire who brings a fresh pair of eyes, the junior
work better is going to come from. who lives the same millennial culture your clients do, the receptionist who
sees how irritated people get with paper-based processes, and the call centre
agent who actually speaks to your customers every day.

ADVICE | VIEWPOINTS
TAX-FREE
SAVINGS
We are coming to the end of the third tax year in which
tax-free savings (TFSAs) have been punted, after their
introduction on 1 March 2015. If you are already making
use of this vehicle, great. If not, and you are getting
annoyed that you are always being told about it come Personal finance advisor
February, perhaps listen up this time. They are worth it GIZELLE WILLOWS PhD, CA(SA)
is an Associate Professor at the University of
Cape Town
You should all be saving, and you should all be saving at least R33 000 a year.
All this vehicle is telling you to do is to ‘ringfence’ that R33 000 as a tax-free
saving. That does not mean you have to go invest the money in a complex fund
that makes no sense to you. You can invest in just about anything (kind of).
The most popular are cash accounts (which, as you should know by now, I’m
not a fan of), but you can also invest in unit trusts, ETFs, life insurance policies,
you name it. You merely need to approach the holder of these accounts and say,
‘Please, can I open a TFSA with you’ and they should be more than willing to
talk you through the process. The easiest way is to go to your current banker or
investment house and see what TFSAs they have and pick one.
The potential saving is very attractive. If you invest R33 000 a year for 10 years
in an instrument that earns you a return of 10% per year (as an example), you
would accumulate roughly R580 000. Your total contributions would only be
R330 000 though (R33 000 x 10 years). That means you have made a capital
gain of R250 000, but no tax will be payable because you’ve invested in a TFSA.
In comparison, if this investment had not been in a TFSA and you withdrew that
full amount, you would use up your full R40 000 annual CGT exemption and be
taxed on the remaining R210 000. With an inclusion rate of 60% and a tax rate
of 35% (let’s say), that would amount to tax payable of roughly R44 100.
Maybe that does not seem like a big enough saving for the effort, but given that
it really is no effort at all, I am telling you that it is worth it. Every year I pick a
different account in which to ‘ringfence’ my tax-free savings, so I am probably
creating more effort for myself than I need to, but even with this approach, it
has been seamless every time.
IN SHORT
Furthermore, remember that the R33 000 limit is per person (with a total
lifetime limit of R500 000). Therefore, you could open these accounts for your With the 2017/18 tax year coming to an
children. Want to save for their education? Why not do so tax free and have end, it is the perfect time to consider your
future investment decisions and how best
slightly more at the end of the day?
to do your tax planning. Tax free savings
accounts (TFSAs) are National Treasury’s
Please note that the author of this article is not a certified financial adviser in terms of the way of trying to incentivise you to save
Financial Advisory and Intermediary Services Act 37 of 2002. ASA and the author cannot be held more. And there aren’t any tricks to it. It is
liable for any loss (including indirect and consequential loss) arising from your reliance on the incentivised savings that everyone can use
opinions given in this article. Should you nevertheless elect to rely on this article, you do so at
your own risk and agree to indemnify ASA and the author from any loss or damage that you may
and benefit from.
suffer as a result.

ADVICE | VIEWPOINTS
AN ENTREPRENEURIAL
APPROACH TO
LEARNING
The learning journey to a CA(SA) is clear. Training contracts
have abundant learning opportunities and professional
environments provide role-based learning opportunities.
Entrepreneurial learning is self-driven and determined on
immediate skill requirements to sustain business
Learning & Development Professional

As the professional journey evolves, the ‘formal’ learning opportunities
PAOLO GIURICICH CA(SA) become fewer and a ‘self-driven’ learning approach is imperative. Self-
is founder and owner of Smart EQ
driven learning is work-environment and context dependent and plays a
pivotal role in learning effectiveness.
Emotional intelligence (EQ) was singled out as being an explicit skill by the
WEF, but in my view, many of the priority skills are principally grounded in
EQ and EQ is pervasive to all learning.
Professionals learn differently, in the fast-paced and digitised business
context. Taking charge of your learning in this evolved world requires a
refreshed outlook on ‘how’ and ‘what’ learning is crafted. The bygone era
of the formal training course/workshop has changed.
Modern learning tenets (the ‘how’ of learning) therefore requires differing
approaches. These include: flexible and informal learning; continuous and
autonomous learning; relevant and relatable content; instant and intelligent
content and delivery media; and community driven and co-created
learning, culminating in ‘right and bite-sized, brief and beautiful’ learning.
The ‘what’ of learning is driven by the work environment of the
professional. Role-based employees traditionally pick from a menu of
learning options available and through discussion with a performance
PRIORITY SKILLS manager, select learning events and conclude a learning plan. For an
entrepreneur, this luxury is non-existent. An entrepreneur will find learning
opportunities, based on critical needs, just in time.
As a professional in 2018, have you Professionals’ ability to develop their EQ supersedes technical ability, and
considered your own development? In
now needs to focus on creating a bespoke ‘learning matrix’ in line with
January 2016, the World Economic Forum
(WEF) published a roadmap of the 10 skills
their development aspirations. A learning matrix is a multidimensional
needed to thrive in the Fourth Industrial individual and organisational co-created learning journey that is future-
Revolution by the year 2020. In order of oriented to 2020 skills and will be used to support future careers and
priority, these skills are complex problem- immediate needs.
solving; critical thinking; creativity; people The learning matrix should include: social consciousness and ethical
management; coordinating with others;
pervasiveness; personal brand development; cultural integration
emotional intelligence; judgement and
decision-making; service orientation; and adaptation; business ecosystem navigation and systems theory
negotiation; and cognitive flexibility. understanding; leadership capability; and relationship and network
rejuvenation. These areas will ensure relevancy as professionals as we
Taking ownership for your continued move forward. The learning matrix should be fluid and flexible to your
development without a structured learning needs through the year, as the underlying context changes.
professional environment will be critical to
How can we create magic for our own learning agility and propel ourselves
your success and growth trajectory this year
and beyond.
into the workplace of the future, beyond formal CPD? What will your
learning matrix for 2018 look like?

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ADVICE | INSTILLING RESILIENCE
INSTILLING
RESILIENCE
If you think of the heroes in movies or books, they often have a lot in
common. They might be brave or willing to take risks. They may have special
skills or different ideas to everyone else, but it is clear that one of the most
important characteristics they share is resilience
Words FR (Rhys) Robinson
Resilience is the ability to bounce back socio-political upheaval through the

in the face of adversity – to rebound, years. And yet, due to their resilience,
to recover quickly and to keep going, they always bounce back as the
while learning. That’s what heroes heroes!
do, whether it’s Frodo the hobbit in
FROM MY OWN EXPERIENCE, Lord of the Rings, Katniss Everdeen
WHAT DOES BUSINESS
in The Hunger Games or Tim Robbins’
I THINK THE BEST THING character, Andy Dufresne, in The RESILIENCE LOOK LIKE?
YOU CAN DO TO BUILD A Shawshank Redemption.
RESILIENT BUSINESS IS TO I believe that businesses that survive
PwC, in its DNA Profiler® Survey,
describes a resilient organisation as
HIRE RESILIENT PEOPLE AND the test of time do so for the same
follows: ‘Flexible enough to adapt
TO CONSCIOUSLY WORK ON reason – they are resilient. Companies
quickly to external market shifts, this
like Ford, Coca-Cola, Sasol and
HELPING YOUR EMPLOYEES TO Woolworths have seen their fair share
organisation remains steadfastly
DEVELOP RESILIENCE focused on and aligned behind a
of challenging markets, economies in
coherent business strategy.’
recession, sector-specific demands and

ADVICE | INSTILLING RESILIENCE
The company goes on to explain that plan-do-check-act. Essentially a critical

resilient organisations are forward- thinking map, this speaks to Toyota’s
looking and self-correcting. They philosophy of ‘building people before
anticipate changes routinely and work building cars’.
to address them proactively. When By focusing on teaching employees to
things go wrong, resilient organisations WE OFTEN TALK ABOUT HOW plan, implement the plan, measure the
respond immediately, thoroughly and
constructively. Resilient businesses
CHANGE IS INEVITABLE, BUT result, and adapt accordingly, Toyota is
THAT DOESN’T MEAN HUMAN actually instilling resilience. Whether
are ‘always scanning the horizon for a plan succeeds or fails, the PDCA
the next competitive battle or market BEINGS HAVE BECOME ANY cycle is still valid, and the next action
innovation’. LESS AVERSE TO IT. PEOPLE is simply to start the process over
SEEK OUT STABILITY, AND again. When failures occur, employees
HOW TO GO ABOUT IT’S IMPORTANT TO GET THE can bounce back and look to create a
new or modified plan with the aim to
BUILDING RESILIENCE BALANCE RIGHT IN BUILDING succeed.
From my own experience, I think RESILIENT COMPANIES. That brings me back to my first point
the best thing you can do to build a – the best way to create a resilient
resilient business is to hire resilient business is to focus on developing
people and to consciously work on resilient people.
helping your employees to develop THE FOUNDATIONS THAT
In closing, I have two questions for
resilience. For us, this means hiring UNDERPIN RESILIENCE you to consider: What are you doing
people who view setbacks as to create a culture of resilience within
temporary and failure as part of the We often talk about how change is your organisation? And are you looking
learning and growth process. It also inevitable, but that doesn’t mean for resilience when hiring new talent?
means cultivating an environment human beings have become any less
in which failure is not the end of the averse to it. People seek out stability,
world. and it’s important to get the balance AUTHOR l FR (Rhys) Robinson PhD is
By teaching people that it’s completely right in building resilient companies. Executive Director, Infinitus Reporting
normal to fail on occasion but to ‘fail There needs to be stability at a basic Solutions (Pty) Ltd
fast’, learn and then to pick themselves level – establishing processes and
up and move on, businesses systems; automating where possible
encourage employee resilience. This in and sensible; and focusing on
turn fuels organisational resilience. accountability and transparency. At the
In striving for resilience − which I’d same time, it’s important to retain a
call the cousin of sustainability − it’s degree of flexibility – to allow for fluid
also important for organisations to be processes and adaptation to changing
constantly aware of potential changes. conditions.
This allows them to pre-empt them and As examples, you might consider your
to steer adjustments quickly, efficiently HR systems or financial reporting
and in the best interests of the processes. In both, there are elements
business. At the most basic level, this that can be easily systemised and
could mean adjusting inventory based tested solutions available to help
on seasonal demand forecasting. optimise efficiency and minimise
At a higher level, it is the ability to human error. On the other hand, both
foresee industry shifts and to take also need to be equipped to deal with
advantage of them. One example is the exceptions that don’t fit the mould, and
Naspers decision in the 1990s to split to evolve as your business grows to
M-Net into two companies to create deal with new challenges.
MultiChoice, which would manage
subscribers and ultimately go on to
offer multi-channel digital subscription
CLOSING THE LOOP
TV services.
Based on the above, one could say
Resilient businesses don’t respond that at the heart of resilience is a
to change or challenge with fear and culture of learning and of continuous
inertia. Instead, they choose to adapt improvement. Toyota, a famously
and elevate by finding a silver lining to resilient company, encapsulates this
flourish, through a continued focus. approach by using the PDCA model –

ADVICE | THOUGHT LEADERSHIP
THE IMPORTANCE OF
MENTORING
Mentoring allows organisations to adapt to rapid changes. Learning takes
place in real time and translates into an improvement in work performance.
Organisations then have the advantage of continuously delivering at a level
that meets the organisational goals on a sustained basis
Words Nickolette Assy
A reality imposed by the fast pace of often directly involved in training and
change, both within the organisation development) and mentee (the person
and that imposed by the external who receives mentoring). The mentoring
environment, is that organisations process can be more informal than
cannot rely purely on formal structures performance coaching or meetings can
HAVING A MENTOR CAN HELP for the continuous development of its take place as and when the mentored
TO STRETCH YOUR THINKING people. In the daily interactions between individual needs guidance or support.
AS YOU ARE PROVIDED WITH manager and direct reports, between The focus is often on personal and
ANOTHER PERSPECTIVE OTHER colleagues, and in interactions that career development and not always on
happen cross-functionally, there are improving current performance.
THAN YOUR OWN, AS WELL AS many opportunities for managing the
THE BENEFIT OF YOUR MENTOR’S impact of change on the job. These days,
TRANSFER OF SKILLS
VISION AND UNDERSTANDING change demands that we learn and
adapt quickly.
AND KNOWLEDGE, WHICH A key component of mentoring is the
COMES FROM THEIR transfer of skills. No business can afford
WHAT IS MENTORING? not to have some form of mentoring
PERSONAL EXPERIENCE AND in place, either formally or informally. It
UNDERSTANDING Mentoring is an ongoing relationship plays an important part in the bottom
between the mentor (the manager is line of any business. By being mentored

ADVICE | THOUGHT LEADERSHIP
you can learn valuable and important CAs(SA) for continued professional creates an environment for support,
business skills, such as best business development (CPD). Mentoring can open and honest communication,
practice and life skills from your mentor. contribute a great deal to the personal trust and confidentiality.
This can save time and money for the development of an individual and it can • Clarifying roles and expectations of
business as mistakes are not repeated. ultimately contribute to building great mentor and mentee.
Having a mentor can help to stretch teams. How often have you said: ‘I will
never forget what he or she taught me.’ • Setting up clear boundaries for the
your thinking as you are provided with relationship between mentor and
another perspective other than your mentee is about establishing what
own, as well as the benefit of your ADVANCE YOUR CAREER each party has agreed to do and
mentor’s vision and understanding and what each party will not do. This can
knowledge, which comes from their To advance your career it is imperative be done in a formal or informal way.
personal experience and understanding. to have a mentor. A mentor can help
Mentors also make great ‘sounding to keep your career on track and keep Set clear goals. Work on priorities when
boards’ as you can test your ideas you accountable for your growth and setting goals.
and discuss your point of view with progress. Personally, I believe it is a
an interested listener in a safe and career-limiting move if you do not have BENEFITS OF MENTORING
confidential environment. an informal or formal mentor guiding
you in your career. I have a mentor Learning takes place in real time and is
SUCCESSION PLANNING and coach that I see monthly to keep not dependent on fixed dates or time
my coaching practice real. I have been spent in training rooms. The learning is
REQUIRES MENTORING coaching professionally for 15 years and relevant. It increases self-confidence,
that has only been possible through the self-reliance, self-development and
Many organisations have good ongoing support and guidance I receive. self-motivation. Mentoring can develop
intentions for the continued existence of My favourite saying is: ‘A doctor also the manager’s skill of delegating and
their business and talk about succession needs a doctor.’ motivating. Development for both
planning, but very few organisations
mentor and mentee is ongoing and
have such plans in place.
HOW TO BECOME A flexible. It builds capacity for talent and
This means that talented and top leadership.
position holders need to: MENTOR
• Transfer their skills by teaching You can become a mentor if you are a AUTHOR l Nickolette Assy
another person should they decide master of your craft or your profession MPhil (Coaching) (USB) is an executive
to leave or move on in the system and you can provide guidance to coach and founder of Nickolette &
or department, so the business can others by sharing your knowledge in Associates, Coaching and Mentoring
continue without any production or a professional manner. Mentors often
knowledge lost. enjoy what they do and would like to
• Write down or capture information share with others.
on paper or on a computer. In our There are primarily two kinds of
new digital world it is easy to share mentors: a mentor with context and
with many people at a time. This a mentor who is content specific. As
means that when people have left a coach I mentor other coaches and
and moved position, we still have leaders on how to manage themselves
the information on the functions and others in the work place.
and flow of the job or work function
in place, or in writing somewhere in There are workshops that you can
the business. attend that will guide you and provide
you with a framework to mentor in a
Succession planning is necessary to step-by-step way.
sustain a successful business and
cannot be done without mentoring.
THE MENTORING PROCESS
MENTORING BUILDS Choose a mentor in your organisation
RELATIONSHIPS or in your field and set up formal and
informal meetings with your mentor so
Mentoring can take place between staff that you can expand and master your
members too, and not only between profession.
managers and direct reports. Mentoring
The mentoring process comprises three
can build healthy and authentic
essential steps:
relationships, as well as good practice,
especially for professional practice as • Building and establishing a
relationship with a mentor. It

RECOMMEND | NOCLAR
MYTHBUSTERS
ON NOCLAR
The amendments to the IRBA
Code of Professional Conduct for
Registered Auditors (IRBA Code)
relating to Non-compliance with
Laws and Regulations (NOCLAR)
may still be relatively new, but have
you already been a victim of a myth
or two?
Words Saadiya Adam
It happens to all of us. A standard or to be myths. The recent amendments

legislative amendment is released to the IRBA Code, based on the
and before you’ve had the opportunity International Ethics Standards Board for
to digest the complete text, you are Accountants (IESBA) Code of Ethics,
pulled into a conversation in which have been no exception. This article
WHILE CORRIDOR you are asked for your opinions and an intends to dispel a few of those myths.
CONVERSATIONS ARE ONE OF analysis of the consequences of the
THE EFFECTIVE WAYS TO LEARN amendment. You present and defend
MYTH 1: NOCLAR IS NOT
your views with a few key messages
AND SHARE WITH COLLEAGUES from one conversation to the next, and NEW FOR SOUTH AFRICA
AND KEEP UP TO DATE soon you have ‘learnt’ several ‘facts’.
WITH THE EVER-CHANGING While corridor conversations are one of
According to recent media reports,
South African entities, both private and
ENVIRONMENT, OCCASIONALLY the effective ways to learn and share
public, have been associated with non-
THESE ‘LEARNT FACTS’ TURN with colleagues and keep up to date
compliance with laws and regulations.
with the ever-changing environment,
OUT TO BE MYTHS occasionally these ‘learnt facts’ turn out
Additionally, the reporting of certain

RECOMMEND | NOCLAR
non-compliance is well embedded in MYTH 2: THE response to the NOCLAR. This

South African legislation, for example includes:
the requirement in section 45 of the
NOCLAR PROVISIONS
o Disclosing the matter to an
Auditing Profession Act 26 of 2005 (APA) CONSIDERATIONS ARE appropriate authority even
regarding reportable irregularities (RI). ONLY REQUIRED FOR AUDIT when there is no legal or
However, the NOCLAR amendments
set out some new responsibilities
ENGAGEMENTS regulatory requirement to do
so, and/or
for registered auditors (RAs) when
encountering non-compliance or An RA’s responsibility to NOCLAR o Withdrawing from the
suspected non-compliance. extends to all professional services, engagement and the
which include engagements other than professional relationship,
The NOCLAR provisions set out a the audit of financial statements. where permitted by law or
framework for RAs on what actions regulation
to take when they become aware The framework is considered under the
of a suspected non-compliance. following categories: • Documentation, including all
These include any act of omission or • Audit of Financial Statements, and considerations
commission, intentional or unintentional, • Professional Services Other than There are circumstances when the RA
committed by a client, including by Audits of Financial Statements will make disclosure to the appropriate
management, those charged with authority immediately. But this is only
governance, or by others working for Each category has different approaches in exceptional circumstances, when the
or under the direction of the client, and considerations. RA becomes aware of actual or intended
which is contrary to prevailing laws and While RAs may find their experiences conduct, that the RA has reason to
regulations. with the RI requirements helpful, they believe would constitute an imminent
While this article’s primary focus is on should be cognisant of the specific breach of a law or regulation that would
the RAs, professional accountants (who requirements and considerations under cause substantial harm to investors,
include chartered accountants) will have the NOCLAR provisions, as these differ creditors, employees or the general
similar considerations, in response to from the RI requirements. public.
NOCLAR, when rendering professional
services or within their employing MYTH 3: REPORTING IS MYTH 4: REPORTING A
organisations. This is new for the
accounting profession in South Africa. ALWAYS REQUIRED UNDER REPORTABLE IRREGULARITY
The NOCLAR provisions share some
THE NOCLAR PROVISIONS NEGATES THE NOCLAR
similarities with RI responsibilities and PROVISIONS
other legislative requirements where The RI reporting requirement has
the RA is required to report directly to allowed RAs to become familiar with The RA must firstly comply with
a regulator. The NOCLAR provisions do a reporting framework. However, local law or regulation, which in this
envisage the possible existence of local reporting is only one consideration instance is the APA. However, Section
laws that govern how the RA addresses of the NOCLAR provisions, and not 225 of the IRBA Code contains other
non-compliance. the necessary default position. The provisions that would still apply, if not
NOCLAR provisions have a response already required or prohibited by law or
An RA is required to comply with framework that may include a reporting regulation.
jurisdictional laws and regulations. consideration.
Additionally, an RA needs to be aware Examples of the NOCLAR response
of any differences between the The robust NOCLAR response framework that may still need to be
NOCLAR provisions and local legislative framework includes the following: complied with are:
requirements, and then comply with • Become aware of NOCLAR • Provisions addressing the escalation
the more stringent requirement and • Obtain an understanding of the of the matter within the entity
guidance, unless prohibited by law or matter
regulation. • In the case of an audit of
• Address the matter group financial statements,
Simply dismissing the NOCLAR communication with the relevant
provisions as nothing new may lead • Communication with different
RA involved in the group audit
to inadequate planning, training individuals, for instance within the
and documentation on the part of firm • Advising management or those
the RA. There could then be a risk charged with governance to
• Consideration whether further
that a NOCLAR is not responded take appropriate action, if they
action is required in the public
to adequately, which would be a haven’t already done so, to
interest after management’s
contravention of the IRBA Code.
>

RECOMMEND | NOCLAR
MYTH 5: NOCLAR WILL In producing the NOCLAR amendments,

the IESBA and IRBA were responding
COMMUNICATION WITH LEAD TO A LOSS OF CLIENT to a need for guidance on what actions
A CLIENT ON THE NOCLAR TRUST an RA should take in the public interest
when they become aware of a NOCLAR
PROVISIONS IS VITAL. The NOCLAR provisions should not or suspected NOCLAR. The success of
INVESTING IN SHARING change the RA’s relationship with clients this initiative will be dependent on the
INFORMATION AND or the outlook on the engagement. The positive contribution of all parties and
RA does not approach an engagement the proper application of the framework.
CONVERSATIONS ON THE looking for potential NOCLAR, but rather All parties will agree that there is no
NOCLAR PROVISIONS considers his obligations when he/she myth in that.
WILL HELP FACILITATE THE encounters a NOCLAR or suspected
RAs and others are encouraged to
NOCLAR.
PROCESS OF RESPONDING refer to additional guidance that has
An RA is always expected to use been released on this subject, and this
TO A NOCLAR OR professional judgement while includes the IRBA Frequently Asked
SUSPECTED NOCLAR, IF performing all professional services and Questions on NOCLAR available on the
REQUIRED TO IN THE FUTURE professional scepticism in assurance IRBA website link below.
engagements. Thus, the RA’s outlook
https://www.irba.co.za/guidance-for-ras/
should not change, and the relationship
technical-guidance-for-ras/ethics:-the-
of trust should not be drastically altered.
rules-and-the-code/noclar
Additionally, while the NOCLAR
rectify, remediate or mitigate
provisions may allow for the RA
the consequences of the AUTHOR l Saadiya Adam CA(SA)
to report directly to an appropriate
non-compliance; to deter the is Professional Manager: Ethics,
authority, this is usually within a
commission of the non-compliance, Independent Regulatory Board for
framework that includes sufficient
where it has not yet occurred; Auditors (IRBA)
consultation with the client. This,
or to disclose the matter to an
however, does not necessarily put the
appropriate authority, where
client and the RA at odds with each
required by law or regulation or
other.
where considered necessary in the
public interest, and Communication with a client on the
NOCLAR provisions is vital. Investing in
• Determination of the need for
sharing information and conversations
further action (including withdrawal
on the NOCLAR provisions will help
from the client relationship) in
facilitate the process of responding to
appropriate circumstances
a NOCLAR or suspected NOCLAR, if
Complying with section 45 of the required to in the future.
APA, and its specific timelines, may
result in the RA partially discharging
some obligations that are required
MYTH 6: THE NOCLAR
by the NOCLAR provisions. This will PROVISIONS ARE
not need to be repeated, but the RA BURDENSOME AND
will be required to document their
consideration of both the RI and the
INVOLVES MORE WORK,
NOCLAR provisions. TIME AND COSTS FOR
Though an RA may have reported an RI THE RA
to the IRBA, the RA must still respond
to NOCLAR or suspected NOCLAR, The default answer is the NOCLAR
including the consideration of reporting provisions are not necessarily
the NOCLAR or suspected NOCLAR burdensome as not every engagement
to an appropriate authority. Also, it will include a consideration of the
is possible that an RA may report an NOCLAR response framework.
RI to the IRBA and determine that Yes, additional documentation, training,
additional disclosure of the matter to an and more time may be required,
appropriate authority is an appropriate but this is not unlike any other new
course of action. requirements in standards or legislation.

RECOMMEND | CIPC
DIGITAL
FINANCIAL
REPORTING
FOR XBRL
The information age we are living in has drastically changed our lives. Many of
us were born in a time when the Internet, smartphones and social media were
unimaginable. The speed of development and benefits of technology had surpassed
the imagination of all who lived before the change of the century. In the same way,
digital financial reporting is revolutionising the business world. This is how the CIPC
envisages that technology can be used to the eventual benefit of all in South Africa.
Words Hennie Viljoen
The Companies and Intellectual REASONS FOR XBRL

Property Commission of South Africa
(CIPC) has launched a programme XBRL as technology standard for
in 2016 to introduce digital financial reporting is gaining momentum
reporting via the technology standard worldwide. It has been proven in
of eXtensible Business Reporting various countries that the benefits IT HAS BEEN PROVEN IN
Language (XBRL). The scope of XBRL of XBRL outweigh the status quo of VARIOUS COUNTRIES THAT
applies to the submission of audited or legacy mechanisms of reporting for
independently reviewed annual financial both filers and consumers of financial
THE BENEFITS OF XBRL
statements (AFSs) by a sub-set of or business data. OUTWEIGH THE STATUS QUO
around 100 000 qualifying entities out
In the case of the CIPC, the following OF LEGACY MECHANISMS
of a total of around 1,8 million entities
registered with the CIPC. were main drivers for change: OF REPORTING FOR BOTH
The commission has mandated • Improved efficiency for dealing FILERS AND CONSUMERS
submission of AFSs for qualifying with high volumes of reports − OF FINANCIAL OR BUSINESS
manual analysis of large numbers
entities via XBRL as from 1 July 2018
of AFSs will be replaced by
DATA
and a notice in this regard has been
published on the CIPC website. automated analysis and validation
of reporting criteria.
>

RECOMMEND | CIPC
• Improved regulatory effectiveness place for compiling of AFS data in portal for uploading of AFSs via XBRL
− analysis on consolidated XBRL format, according to the CIPC’s and the client-side software used by
statements per industry via published taxonomy. the companies for producing AFSs in
business intelligence (BI) To assist reporting entities in their XBRL format.
technology will replace the efforts to obtain client-side software, Pilot companies can use any valid set
limitations of manual sample the CIPC has established a software of statements of any previous year,
analysis on individual statements service provider (SSP) panel. A number because submissions during the pilot
only. XBRL therefore enables of SSPs have been assessed in terms phase will only be used for testing and
improved ‘big picture’ insight into of the software solutions and services will be discarded from the CIPC system
businesses in South Africa. they can provide to reporting entities before live roll-out of XBRL.
• By implementing XBRL, the to ensure minimum compliance to the The CIPC published a list of pilot
CIPC paves the way for eventual CIPC’s technical XBRL requirements. companies on the website. Companies
standard business reporting (SBR) A list of recommended SSPs has been not part of the official list are welcome
in South Africa where various published on the CIPC’s website. to participate on a voluntary basis.
regulators can share data − the Reporting entities are encouraged to
principle of ‘report-once-share- As from 1 July 2018, all qualifying
engage with the recommended SSPs entities will be required to submit
many’. This will eliminate the need for information on the various solutions,
for businesses to report different their latest available approved/audited
services and license/costing options statements on the first date of
formats of financial statements to offered by them.
multiple regulators. submission applicable to them. The first
date for XBRL submission for every
• Potential data-sharing with private
investment companies will assist
MINIMUM REQUIREMENTS entity is determined by the anniversary
date of their date of incorporation.
with better investment advice and The calculation of the first date of
A number of business-related
decision-making. Sharing data with submission of a particular entity is
documents have been published on the
other government agencies can different for close corporations and
CIPC’s website (for example Frequently
even be used for economic policy companies. The exact regulations that
Asked Questions and Filers Guidelines)
formulation. The economy as a apply to every entity to calculate their
aimed at explaining various aspects
whole can therefore be impacted particular first date of submission, and
and requirements of the programme.
in a positive way. the applicable financial year for first
Technical documents and the
prescribed taxonomy are also published submissions, have been published on
BEST-PRACTICE STANDARDS on the CIPC website (www.cipc.co.za) the CIPC website.
under the ‘XBRL Programme’ menu.
The CIPC’s reporting requirements via These documents include, but is not THE WAY FORWARD FOR
XBRL will be based on the International limited to:
Financial Reporting Standard (IFRS) QUALIFYING ENTITIES
pertaining to the format of AFSs. • The entities required to comply
Best-practice standards, both from an to the XBRL mechanism of It is recommended that entities
accounting and technology perspective, submission regulated by the CIPC familiarise
will therefore be combined. themselves with all the aspects of
• The exact reporting requirements
the programme via information on the
in terms of statements,
website in order to ensure compliance
PROGRESS OF THE disclosures, mandatory data
by 1 July 2018.
elements and validation rules
PROGRAMME Queries can also be directed to
• Technical requirements (for
XBRL@cipc.co.za.
The programme is currently in the example the prescribed taxonomy
development phase of the technical and relevant tagging rules when
reporting platform. This will entail a using the taxonomy) AUTHOR l Hennie Viljoen – XBRL
web portal on the CIPCs website for Programme Manager
uploading of XBRL data files. Progress PILOT TESTING AND
is on track according to planned
timelines and deliverables.
ROLL-OUT
The CIPC selected and notified around
CLIENT-SIDE SOFTWARE 100 top JSE-listed companies to be part
of a pilot test phase starting in February
Every reporting entity will be required 2018. The purpose of pilot testing is to
to have XBRL-capable software in test functionality of both the CIPC’s

RECOMMEND | FINANCIAL STATEMENTS
PRESENTING
FINANCIAL
PERFORMANCE
INFORMATION
Financial statements of public sector entities that are
similar in nature, have the same or similar users, and
apply the Standards of GRAP would present information
in the same way. Right?
Words Elizna van der Westhuizen
The Accounting Standards Board On the other hand, preparers indicated

(ASB) recently undertook research on they experience several difficulties,
the presentation of information in the including:
statement of financial performance. This • Applying some requirements of the
results from feedback from stakeholders Standards THE ASB FOUND THERE
that the current requirements may
• Keeping up-to-date with
ARE A NUMBER OF
need to be re-considered and diversity
with how information is presented in amendments to the Standards, and ISSUES WITH THE WAY
practice. Being unaware of guidance on IN WHICH INFORMATION
The ASB found there are a number implementing and applying existing IS PRESENTED IN THE
of issues with the way in which Standards This is not surprising, given STATEMENT OF FINANCIAL
information is presented in the the wide-ranging legislative environment
that public sector entities operate in, PERFORMANCE. THE
statement of financial performance. The
presentation did not comply with the the pace at which financial management PRESENTATION DID
Standards, and the quality of information reforms are introduced, and the limited NOT COMPLY WITH THE
resources available in the public sector.
was found to be poor and not useful. STANDARDS, AND THE
The reduced comparability between As a result of the project, the ASB QUALITY OF INFORMATION
financial statements because of the will take a number of steps to assist
issues identified and the poor quality of preparers with how information should WAS FOUND TO BE POOR
information provided are challenges that be presented to comply with the AND NOT USEFUL
users face. requirements of the Standards while still
meeting users’ information needs.
>
RECOMMEND | FINANCIAL STATEMENTS
The ASB will publish a research paper Uncertainties about presenting a example ‘taxation’ where entities
outlining the complete results of the comparison of budget and actual are exempt from income tax.
research on the ASB website. Some information. Preparers are unsure • Identical items are presented
prevalent issues are outlined below. about the format in which to present separately.
a comparison of budget and actual
information required by the Standards, • Template accounting policies and
ADDITIONAL GUIDANCE and often include the same information accounting policies that are not
more than once. This detracts from applicable are included. Users are
The ASB will provide additional guidance unable to understand the nature of
the user’s ability to understand the
as a result of the project. the transactions an entity enters
information presented in the financial
Analysing expenditure by nature statements. As part of the research into and how they are recognised
or function. Most preparers do not paper, the ASB will provide guidance and measured in the financial
present an analysis of expenditure on how the comparison of budget and statements.
by either nature or function in a way actual information and any additional • Insufficient disclosure is made
that meets the requirements of the information, when necessary, should be of management’s significant
Standards. There is a misconception of presented in the financial statements. judgements and key sources of
the meaning of analysing expenditure by estimation uncertainty.
Presentation of reserves to provide
nature or function. For example, items
useful information to users. The The ASB has a current project to
such as ‘repairs and maintenance’, ‘grant
research done by the ASB found that develop guidance on ‘The Application of
expenditure’, ‘contracted services’, and
preparers are inclined to present Materiality in the Financial Statements’
‘project expenditure’ are often included
reserves not required by the Standards which would address these issues.
as items analysed by nature.
in the statement of changes in net
The private sector has also Informing preparers of changes to
assets. To comply with the Standards,
acknowledged having difficulty with the Standards. To assist preparers
all items of revenue and expenditure
the classification of expenditure, with the difficulty they face to keep
are first recognised in the statement
and consequently the International up to date with amendments to the
of financial performance so that the
Accounting Standards Board (IASB) is Standards, the secretariat of the ASB
reserve is created, or increased, or
currently looking at ways to improve will annually publish a summary of
decreased from accumulated surplus or
the International Financial Reporting changes in the reporting framework that
deficit.
Standards. become effective in a particular year. The
When done correctly, the research first version, Changes to the Reporting
Locally, the Secretariat of the ASB found additional reserves are valuable Framework from 2017/18 to 2018/19, has
issued a frequently asked question to enable users to make decisions and been published and can be accessed on
(FAQ) on presentation of repairs and hold entities accountable, particularly the ASB website: http://www.asb.co.za/
maintenance early in 2017. As a result of where capital grants are received in
the research, the FAQ was expanded to advance of a project commencement or
deal with the analysis of all expenditure. where funds are ring-fenced for specific CONCLUSION
The expanded FAQ also explains what purposes.
each method of analysing expenditure Given the interest noted in the results
Entities should continue with this of the project, the ASB is confident that
– nature or function - means, with
practice when it provides meaningful the research paper will be valuable to
examples provided from the research.
information to users. Care should stakeholders. The results of the research
Recognition and disclosure of be taken, however, that only those and additional guidance included in the
services received in kind. Public reserves necessary for external users’ research paper will assist preparers to
sector entities frequently receive goods understanding are presented in the apply the Standards, while meeting
and services in kind from other public financial statements, or when required users’ information needs. Stakeholders
sector entities, the private sector, and by legislation. will be informed once the research
international donors. Services in kind paper has been published on the ASB
Issues identified with the quality
are, however, often not recognised in website, towards the middle of 2018.
of information. A number of issues
the financial statements when required
related to the quality of information in
by the Standards. Preparers find it
the financial statements were identified,
difficult to measure the benefit they AUTHOR l Elizna van der Westhuizen
for example:
have received and don’t always disclose CA(SA), Standard Setter, Accounting
to the users information about the • Immaterial items are presented Standards Board
nature and type of services received separately in the financial
in kind. The secretariat of the ASB has statements. This clutters financial
updated an existing FAQ to make the statements so that users are unable
requirements of the Standards clear, to determine what information is
and included examples of the items important.
that could be recognised, as well as the • Separate line items are included
disclosure required for recognised and for items that are not relevant, for
unrecognised services in-kind.

SPECIAL REPORT | BUDGET 2018
“The future belongs to

those who believe in the
beauty of their dreams”
Eleanor Roosevelt
when looking to the future, SKILLS are AT THE HEART OF A HEALTHY ECONOMY.
Accountants, auditors, financial planners, wealth managers – their skills keep the South African economy ticking
over and safeguard its reputation for the benefit of all citizens.
Fasset ensures that finance and accounting professionals are trained to anticipate the unexpected; that those
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relied on by South Africans to dispense responsible financial advice have the knowledge and acumen to do so.
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facebook.com/fasset.org • 086 101 0001 • fassetcallcentre@fasset.org.za • www.fasset.org.za
February2018
February 2018 accountancysa.org.za
accountancysa.org.za 57
57
INDULGE: MOTORING
ROLLS-ROYCE
DAWN This new convertible from Rolls-Royce
slots in above the Ghost and the Wraith
but below the Phantom. It is not a
roof up the vehicle has a distinctive
coupé look, with the roof down it looks
longer and the roof cover is covered
replacement of the outgoing Drophead with wood. This makes you feel like
but a new model all-together. you’re about to board a yacht.
The look of the car is similar to that of When you open the huge ‘suicide
the Ghost and the Wraith with its now doors’ (doors that are hinged at the rear)
ANY ROLLS-ROYCE IS signature headlights and huge chrome you are welcomed to the lush interior.
EXPECTED TO BE PERFECT IN grill that is topped with the Spirit of
Ecstasy. As you approach the car, you
The soft leather and thick pile carpets
make you feel like royalty. The vehicle
EVERY WAY AND THE ALL- realise just how long the Dawn is, even is so luxurious that I felt I was doing
NEW DAWN SURELY DOES though it is only a two-door vehicle. something wrong entering with my
The door handles are just below the shoes on.
LIVE UP TO THIS EXPECTATION rear-view mirrors. The rear end is simple Entry to the rear seats is a breeze
− OR DOES IT? with clean lines and rather plain rear thanks to the large doors and the
lights with chrome surrounds. With the touch button that pushes the front seat

INDULGE: MOTORING
ENGINE
6,6L V12
POWER
420 KW
TORQUE
820 N.M
0–100 KM/H
5,0 SECONDS
PRICE
POA
forward. This is a pure four-seater with at the touch of a button and in keeping but depress the accelerator and you are
individual seats for all four passengers. with Rolls-Royce tradition, there is an carefully surged into the soft seats as
The seats are more comfortable than umbrella fitted inside each door. To me, you see the scenery fly past.
any car, plane or lounge suite I have the best feature was the automatic door On the whole, the Rolls-Royce Dawn
ever sat in, apart from other Rolls- closing, as these are ‘suicide doors’ lives up to expectations and has been
Royces. The soft leather steering wheel and it’s very difficult to close the doors crafted to be the best in every way
and oodles of wood continue the luxury unless you get out. Well, now all you possible. Once you have driven a Rolls-
look and feel. need to do is press a button on the Royce, there is no going back!
That said, Rolls-Royce have not corner of the dashboard and the doors
forgotten that we are in the 21st close.
century, as this vehicle has all the toys At this stage many may say that this AUTHOR l Torque Talk is a member of
expected of modern cars − like park is a soft, luxurious vehicle with no real SAGMJ
distance with cameras, an infotainment grunt … Well, you would be mistaken.
system, etc. There is also an i-Drive- This vehicle may be the pinnacle of
type system to control everything in luxury, but it also has plenty of grunt.
the car. The roof is raised and lowered The 6,6-litre V12 motor is whisper-silent,

INDULGE: MOTORING
HONDA
TYPE R
CIVIC
The current Type R pushes the limits the racing design. This front fender
when it comes to the looks department, bulges out to expose a vent just in front
though. Initially you notice the rather of the door and at the top it has shark-
large rear spoiler, which is more like like gills: all of this to keep the Bremo
a wing than a spoiler. This is a dual racing brakes cool.
spoiler, with the lower one at the base Up front the white headlight surrounds
of the rear windscreen. As you start to and high gloss black in the centre of the
look carefully at the car you notice the bumper and front spoiler lend the car
quad tail pipes, rear diffuser, and central
ALTHOUGH THIS CAR HAS rear fog light. This completes the racing
some sophistication. Overall the Civic
Type R looks like it is more at home on
BEEN ON OUR ROADS FOR A car look from the rear, which is what the track than on the road.
most drivers will see of this car. When
WHILE NOW, THE FIRST EVER you move around the car, you see the Although the car is a four door, the
TURBO-CHARGED CIVIC TYPE low stance and bulging low-profile tyres rear door handles are just behind the
rear window glass, giving the car a
R STILL TURNS HEADS and bulging rear fender, which is only
outdone by the front fender. This fender somewhat two-door coupé look. Open
shows just how far Honda has taken the doors (which do feel solid) and you

INDULGE: MOTORING
ENGINE
2,0L 4 CYLINDER TURBO
POWER
228 KW
TORQUE
400 N.M
0–100 KM/H
5,7 SECONDS
PRICE
FROM R615 900
are welcomed by track-grade bucket These ultimately meet as they turn red, vehicle practical. That said, the best part
seats covered in red suede with some indicating that you are about to redline of the car is pushing it to its limits, as it
black accents. When you slip into the and it’s time to change up gears. screams as it passes 5 000 rpm on its
snug seats, your hand automatically As this car is all about the speed, there way to the 7 500 rpm red line.
falls to the round aluminium-covered is an R+ button. This should only be This car is all fun and I will miss having
gearshift. As you get comfy behind pressed when the road is smooth or if it in my driveway. If you want a car out
the steering wheel, you notice the you’re planning to enter the track. The of the ordinary and you enjoy white-
red centre line on the top section of reason is that the steering stiffens, but knuckle thrills, this one has to be on
the wheel. The dashboard has a large so does the suspension, as the motor your list.
rev counter in front of the driver and a goes into race mode. In fact, in R+
digital speedometer in the top section mode the car becomes so stiff that you
of the dashboard, ensuring you can can feel every bump and stone in the AUTHOR l Torque Talk is a member of
always keep an eye on your speed. In road. SAGMJ
keeping with the racing car look and
feel, as you drive the car and speed up On the whole this Civic Type R has
through the rev range, lights come on taken the Civic back to Honda’s racing
above either side of the speed read-out. heritage while managing to keep the

INDULGE: GADGETS
5 GADGETS
It’s a new year, which means that you probably have
a new set of fitness goals. Achieving those goals
can, however, be difficult at times.
Fortunately, technology can make things a little
TO ACHIEVE YOUR easier, allowing you to monitor your progress, keep
FITNESS
track of your workouts, and even distract you from
the fact that you’re forcing your body into levels of
activity it probably hasn’t seen since high school.
GOALS
With that in mind, here’s a selection of gadgets as
seen on PriceCheck that’ll help make 2018 the year
you rock your fitness goals.
AUTHOR l Brendon Petersen is the Tech Editor for
PriceCheck
MOOV GARMIN
NOW INDEX SMART SCALE
PERSONAL COACH AND
WORKOUT TRACKER You might wonder what a scale is doing in an article about
fitness goals rather than one on weight loss. If so, we’re
here to inform you that the scales of today have moved on
Right now, there are plenty of fitness and activity somewhat from the humble version you used to have lying
trackers on the market. With many of them offering around in the family bathroom.
similar features and coming in at a similar price point, The Garmin Index Smart Scale gives you detailed body
it can be difficult to know which one to choose. composition measurements, including weight, body mass
That said, we have a serious spot for the Moov Now. index, body fat, muscle mass, and bone mass. It’s also
Not only does it track things like movement, a variety compatible with other Garmin devices, meaning you can get a
of workouts, and sleep, it also comes with audio near-complete picture of your health and fitness.
coaching capabilities. That means you won’t be left lost
and confused every time you try a new workout.
Oh, it doesn’t hurt that it looks ridiculously cool either.

INDULGE: GADGETS
LIFEBEAM
HAT AND HEART RATE MONITOR
If you’re starting to make progress in your fitness journey, but
aren’t quite ready to commit to a sports watch, the Lifebeam
Hat and Heart Rate Monitor may be the ideal option for you. The
hat can take precise measurements of your heart rate, steps,
and calories and send them to your fitness app of choice.
The fact that it looks like any other cap also makes it ideal
for safety-conscious South Africans eager not to flash more
valuable tracking devices to potential thieves.
GARMIN FENIX 5
Look, if you’re trying to build fitness from a relatively low level, then the
Fenix 5 probably isn’t for you. If, however, you’re looking to take your
outdoor activities to the next level, you’d be hard pressed to beat it.
Part multi-sport watch and part smart watch, it can guide you through
even the toughest of trails while delivering notifications from your
smartphone to your wrist. Capable of delivering a host of performance
metrics, it also features serious battery power, meaning you won’t be let
down mid-activity.
APPLE WATCH
SERIES 3
When it comes to out and out smart watches, Apple’s led the pack for
some time now. In part, that’s because the Cupertino-based giant’s
recognised the value of health and fitness data. The Apple Watch Series 3
takes this understanding to a new level.
While South Africans can’t yet get their hands on the version of the watch
that comes with a built-in SIM card (allowing users to really break free from
their phones), they can still benefit from built-in GPS, a heart rate monitor,
and a slew of apps designed to help with their health and fitness journeys.

ADVERTORIAL: VAN RYN’S
BRANDY
A DRINK FOR OUR
RAINBOW NATION
Brandy is often associated with Afrikaans culture, rugby and
braaivleis, but the drink also has a deep history in Xhosa, Zulu
and Swazi cultures. Food anthropologist Anna Trapido looked at
the spiritual side of brandy, as it is used in many cultural rituals.
Walk into any shebeen and ask for a ‘watch’ and everyone will know that you want Klipdrift
Export, which has a picture of a time piece on the label. Ask for a ‘g-string’ in Soweto and
you’ll be served a Klipdrift Premium with raffia around it.
While brandy may have different nicknames at your local watering hole, brandy’s role in
the spiritual realm is serious and solemn. While most ethnic and linguistic groups confine
its use to marriage-related lobola rituals, in Xhosa-speaking communities, the proudly
South African drink is commonly considered essential for almost all rites of passage.
From welcoming back initiates to celebrating an engagement or simply offering up a
WIN!
small prayer to the ancestors to asking the ancestors for help during a job interview - all
brands of brandy can be associated with ritual communication with the ancestors. Brandy
‘intambo’- which loosely translates from isiXhosa as the brandy bottle with ropes, such as
Richelieu International, is an essential element. While any brandy will do, some if not all
believe that brandy intambo must be present.
When using brandy to communicate with the ancestors a small amount of brandy is Three lucky readers
poured onto the earth before the remaining liquid is shared respectfully among the can each win a hamper
assembled community. The small amount that is absorbed into the soil is considered a gift consisting of a bottle
to the ancestors. In isiZulu this is known as ukuphahla - a prayer to the ancestors, while in of one of the world’s
isisXhosa it is called ukunqula. most awarded potstill
According to Trapido this solemn ritual is not about getting drunk, nor for entertainment, brandies, the Van Ryn’s
rather a dignified ritual used to invite the ancestors and to open communication with 12 Year Old Distiller’s
them. This ritual is mostly associated with age specific life changing events. Reserve and two brandy
Inkaba birth rituals require brandy to be poured over the burial site of a baby’s placenta and balloons to the value of
umbilical cord. And when the initiates arrive back, Izibazanas – the mothers of the initiates R900.
will come dancing out of their homes carrying brandy against their breasts to welcome Send an email with your
back their sons. name, surname and
One thing is sure though, it’s not just the ancestors who respect South African brandy, membership number to
new modern styles of brandy have made it big internationally – such as the Worldwide journal@saica.co.za with
Brandy Trophy for Klipdrift Premium at the 2016 World Brandy Awards and a Gold brandy in the subject
Outstanding award for Van Ryn’s 20 Year Old at the 2017 International Wine and Spirit line before 28 February
Competition in London. to qualify.

INDULGE: LIFESTYLE
SO MUCH MORE THAN
JUST A G&T
ClemenGold Gin’s stylish packaging renders gift wrapping obsolete and
leaves you with more time to perhaps sample this handcrafted gin infused
with South Africa’s favourite mandarin.
ClemenGold Gin treats gin aficionados to a smooth Classic Cape Dry style
gin with subtle hints of citrus. Nine botanicals – sundried ClemenGold and
orange peel, cinnamon, honey, ground almond, juniper berries, angelica
and orris root, and coriander – are used when distilling this handcrafted
gin.
Available online from R350 a bottle at www.clemengoldgin.co.za or
www.yuppiechef.com and at selected retail outlets.
WIN! YOUR OWN

TASTE EXPERIENCE
Celebrate your next big business deal with a leisurely glass of G&T or a
fancy cocktail. WIN a ClemenGold Gin hamper worth R500, including a
bottle of hand-crafted gin, dried ClemenGold rings and a Summah 100%
cotton hand towel.
Simply send an email with your name, surname and membership number
to journal@saica.co.za with taste experience in the subject line before 28
February 2018.
HANDCRAFTED
TO PERFECTION
You don’t need a celebration
to enjoy a glass of Méthode
Cap Classique (MCC), and the
latest offering from L’Ormarins is
perfectly suited to any occasion.
A FESTIVAL OF CHEESE
With the dominant varietal being
Pinot Noir which contributes to
its delicate salmon colour, the
L’Ormarins Brut Classique Rosé
Visitors to the 17th South African Cheese Festival can once again expect a NV is this season’s best choice
truly unique experience of cheese and more. Come taste a dazzling variety when you next serve MCC to
of cheeses, pair your favourites with wine and the finest local produce, and your friends or family.
relax with family and friends.
This is a hand-crafted wine,
The award-winning SA Cheese Festival, the biggest outdoor culinary event, which delivers a constant stream
takes place over three days from Friday, 27 April (Freedom Day) to Sunday, of fine bubbles with delicious
29 April 2018 at Sandringham, home of the SA Cheese Festival. aromas of raspberry and
Entertainment includes outstanding music, presentations by celebrity strawberries.
chefs and artisan cheese makers, as well as fun activities for kids and Available directly from the
teens such as a cheese carving competition. Tasting Room at R120 per bottle,
Tickets are available at Computicket (online and in Shoprite and Checkers or select specialist wine stores
stores) at R180 per person per day. No tickets will be sold at the gates. nationwide.

INDULGE: LIFESTYLE
DID YOU SAY The jewel of the Adriatic Sea, Croatia, is home to more than 1 200 islands, but travel
UBER
between them has long been dictated by expensive yacht charters and sluggish
public ferries. In 2018, that’s set to change, now that UberBOAT, from the popular
ride-sharing app, has launched on-demand transfers and private tours along the
Dalmatian Coast. Hit the high seas in the direction of Šolta, a hilly isle a mere nine
BOAT?
nautical miles from Split (the second-largest city in Croatia).
Source: http://www.travelandleisure.com/trip-ideas/best-places-to-travel-in-2018?xid=timehp-popular#grand-anse-beach
ALWAYS ON TIME THE OMEGA

AND IN STYLE ‘PYEONGCHANG 2018’
The Rolex Pearlmaster is their crowing
jewellery watch. Featuring the softly
curved lines of the Pearlmaster design,
COLLECTION
it is characterised by uniquely rich details
and exquisite gem settings of diamonds,
sapphires or rubies and available in 18 ct
yellow, white or Everose gold made by
IN 2018, OMEGA WILL FULFIL ITS ROLE AS
Rolex it its own foundry. OFFICIAL TIMEKEEPER OF THE OLYMPIC
GAMES FOR THE 28TH TIME IN HISTORY
As the winter edition reaches PyeongChang in South Korea, OMEGA
is celebrating with a collection of new watches designed to inspire the
winner in us all. This 43,5-mm watch captures the colours of the South
Korean flag with a polished blue ceramic dial and unidirectional bezel,
blended with red rubber for the first 15 minutes. This theme is continued
through the blue and red rubber strap.
$23 500
WHAT YOU’LL PAY
PER NIGHT
AT THE APARTMENT AT THE
HOTEL CONNAUGHT
IN LONDON BRAIN FUEL
Want to excel in the boardroom? Pack a sardine sandwich for lunch!
It offers a private butler and menus
This sustainable swimmer is packed with EPA and DHA, supercharged
designed by Michelin-starred chef
omega-3 fatty acids that bolster communication among brain cells and
Helene Darroze. It has a wrap-around
help regulate neurotransmitters responsible for mental focus.
balcony overlooking London’s incredibly
posh Mayfair area. Source: www.shape.com

INDULGE: LIFESTYLE
FULL-BLOWN
SUMMER FLAVOUR
Take a journey to Nederburg for a breathtaking blend of the traditional and
the contemporary. An ideal destination for families with children, they now
also boast a sturdy climbing frame, situated on the front lawn of the historical
manor house that houses The Red Table restaurant.
Sit back, relax and enjoy top-notch wine and food while indulging in pure
country hospitality. During the summer months, between 16:00 and 20:00
(until 30 March 2018), this country-style eatery will be offering a scrumptious
selection of Spanish-style tapas which pairs great with their wines - lìke
pictured here the lamb skewer with Nederburg The Winemaster Cabernet
Savignon.
A LIFETIME OF
STYLISH
MEETINGS
A Louis Vuitton bag is an investment– something you’ll use (and enjoy
forever). This beautiful business bag from 7 Days a Week is an innovative
city bag with the iconic style for which Louis Vuitton is known. Incredibly
versatile, it is perfect for both business and causal use and can fit a 15”
laptop. The two exterior pockets give you instant access to your daily
essentials. Available at Louis Vuitton stores from R22 000.
THE WORLD’S
BEST HOTEL
According to the readers of Travel+Leisure, Nihi Sumba Island in Indonesia
is the best hotel in the world.
This is not an escape from everyday life. It is the return to a life well lived.
Where rugged luxury meets unregulated freedom. A place to connect
with something larger than oneself. A haven for the adventurer, for the
wanderer. The endlessly passionate and curious. Arrive with an open heart
and leave changed forever. This is vacation with a purpose. A destination
with meaning. This is Nihi Sumba Island.
At Nihi Sumba Island, they build itineraries that transcend a traditional
vacation experience. They foster creativity and passion in their guests,
helping them unplug from their hyper connected lives and reconnect with
earth and community. Each experience is singular, custom. Made to fit each
guest differently.

RECRUITMENT: CLASSIFIEDS
LEGISLATION REQUIRES YOUR VAT REGISTRATION NUMBER FOR INVOICING

PURPOSES. FOR CLASSIFIED ADVERTISEMENT INFORMATION:
CONTACT US ON TEL: 011 621 6696. ALL ADVERTISEMENTS TO BE SUBMITTED

TO: ACCOUNTANCY SA, PO BOX 59875, KENGRAY, 2100, FAX 011 621 6807 E-MAIL:
CLASSIFIEDS@SAICA.CO.ZA
PARTNER ROTATION
APPOINTMENTS
Do you value your independence? 2017 audit
TAX MANAGER partner rotation problematic? Call me Marius
Neg CTC on 0828873496 for solutions.
An audit firm based in Johannesburg is
currently looking for a Tax Manager holding WE BUY
a CA(SA) / HDip Tax. or equivalent finance Accounting, auditing and tax practices or
qualification. Minimum of 5 years practical blocks of fees. Contact Pieter at 0823320646 or
tax experience. This role involves tax advisory pieterw@bvgroup.co.za if you are interested
and compliance. Must have a grounded in selling.
understanding of tax principles and solid strong
management experience. Good at meeting PRACTICE IN HERMANUS
deadlines and solving problems. Knowledge Well established three partner practice in
of MS Office, E-filing and GreatSoft. Email: Hermanus, Western Cape, seeks a suitably
auditstaffrecruitment@gmail.com qualified Chartered Accountant to manage
Audit division. Partnership prospects after
BIG 4 AUDIT MANAGER initial probation period.
Sal RNeg Email trevor@hermanus.co.za
Audit Firm seeking a Qualified CA(SA) with
minimum 2yrs “Big 4” manager experience. KEEN TO PURCHASE
Email: auditstaffrecruitment@gmail.com We are keen to purchase an accounting or
auditing practice in Gauteng/Paarl/Western
Cape. We have done this before and are
PARTPARTNERSHIPS & PRACTICES prepared to pay fair value. For a confidential
discussion contact Joe on 0828548269.
ARE YOU INTERESTED IN A MERGER?
Should you be interested in merging with a
long established and extremely successful
accounting and auditing firm in South Africa,
which is JSE accredited and internationally
affiliated, then there is no doubt that this
could be mutually beneficial to both practices.
Let us explore the possibility. Call Marius on
0828873496 now.
ARE YOU INTERESTED IN SELLING?

In the world of accounting and auditing, a well
established, JSE accredited and internationally
affiliated CA firm is looking to acquire your
accounting or auditing practice in Gauteng,
Cape Town, Bloemfontein or Durban. Should
you be interested in selling, please give Marius
a call on 0828873496.

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leader and take initiative. Manage the accounts department financial services to support the FD with monthly reporting, analysis of experience in the financial services industry with a focus on strategy /
and implement accounting procedures which are effective and new business opportunities, revenue forecasting, plus ensuring review finance / risk. Small firm. CA(SA) / CFA or similar. Strong academic
operational. jann@thepc.co.za and improvement to internal controls. Will suit hands-on individual who background essential. melanie.smit@thepc.co.za
copes well under pressure. saskia.goldberg@thepc.co.za
SENIOR FINANCIAL CONTROLLER – EE PREF Investments / Advisory
R900K – R800K + perf bonus. CA(SA) with 4-6 yrs relevant Recent CAs HEAD OF FINANCE AND CONTROL – EE PREF
commercial exp for highly regarded investment holding company. FINANCIAL MANAGER – EE PREF
Take charge of financial reporting, budgets and forecast preparation R1.3M – R1.1M + bonus. Investment banking senior management
and ensure adherence to IFRS. Manage financial risks and cash Market related. Seeking recently qualified CA(SA) with 0-1 yrs post role; best suited to a decisive, confident communicator, able to
flow while driving business efficiencies and evaluating cost reduction qualification exp. Strong analytical, reconciliation and report writing manage a team consisting of product controllers plus operational
initiatives. Will suit analytical and deadline orientated individual. skills. Assume responsibility for the management of the financial and financial managers. CA(SA) with at least 7 yrs investment / FX
rick@thepc.co.za department. Must have at least intermediate proficiency in MS Office, exp and exposure to managing a team. lori@thepc.co.za
Pastel, Pilot and Caseware. melanie.smit@thepc.co.za
TECHNICAL ACCOUNTING SPECIALIST – EE PREF PRODUCT CONTROLLER
PROJECT ACCOUNTANT – RETAIL BANKING – EE PREF
R750K – R650K excl bonus. CA(SA) with 1-3 yrs exp, ideally R750K – R630K + bonus. B.Bus Science / CA(SA) with very
gained in technical division of a large audit practice for prestigious R600K + bonus. Newly qualified CA(SA) with strong communication strong quants / analytical skills and about 1-3 yrs treasury
institution. Assist with critical IFRS implementation plus provide skills and academic track record for industry leader in financial product control exp. Interesting opportunity
technical accounting opinions on complex transactions to services. Provide financial support to several business units including to work on the money market, financial
several specialist business units. Assist in editing of AFS at the preparation and analysis of critical management reports. Ad products and preferential shares’ control
year-end and recommend changes. Network at executive level. hoc projects including competitor analysis and business process desk. Fast paced and exciting environment.
rick@thepc.co.za enhancement will ensure constant challenges. joan@thepc.co.za lori@thepc.co.za
For all our positions please visit our website: www.thepc.co.za | 011-244-5380
SANAS Accredited BBBEE Verification Agency

BVA059
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BEE Ratings & Ex-IRBA BEE auditor CPG Consulting)
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FEBRUARY 2018

53 CPD: Digital Financial Reporting for XBRL

55 CPD: Presenting Financial Performance

46 ADVICE: Instilling Resilience

58 THOUGHT LEADERSHIP: Importance of

THE HOPE FACTORY

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• Integrity: Be truthful, straightforward and honest in all your business

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http://bit.ly/2mOFHqU http://bit.ly/2rpMa14 http://bit.ly/2rCeeKe

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SAICA INQUIRY REAL ESTATE

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Chartered Accountant Priscillah ‘I was really fortunate there,’ she recalls.

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View a personal interview with Priscillah here

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THE BAD AND THE UGLY

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The most comprehensive, f lexible and self-maintainable consolidation,

Proudly brought to you by w w w. i n f i n i t u s r e p o r t i n g . c o m www.finnivo.com

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Illustration Liézel Els

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Jeffrey Bussgang explains how

BRIEF two job offers. The first was from the

ASSESSING YOUR FIT

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Entrepreneurship is hard work. Initially, you won’t have

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Are you XBRL ready?

CaseWare, a trusted and tested end to end XBRL imbedded solution

Compliance Tag your CaseWare has been used

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Words Coenie Middel; Illustration Liézel Els

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THE DARK SIDE OF

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TAX YEAR END:

From paying your people on time, to keeping the taxman happy.

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Words Emuron Plaatjies

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INDUSTRY/SECTOR: Accounting and taxation