BEE in IT: Clashes ahead?

A recent black economic empowerment (BEE) event highlighted the complexities involved in identifying and addressing cultural "clashes" within company workforces, as well as practical challenges facing IT companies in their bid to comply with the ICT charter on BEE.

Aimed at assisting delegates to develop and implement transformation strategies in the ICT sector, September`s "How to BEE in IT" one-day workshop in Gauteng was hosted by ITWeb in association with Sondeza Transformation Holdings.

Brian Rainier, MD of Brainier Capital & Consulting, discussed practical aspects of implementing BEE strategies and deals. He said one of the most important considerations when choosing a BEE partner is ensuring a cultural fit, adding: "If at any stage you are not comfortable with your BEE partner, no matter what benefits are down the line, I would advise you against continuing."

Terence Sibiya, responsible for the IT and telecommunications practice of executive search and leadership services firm Heidrick and Struggles, expanded on the difficulties involved in finding and retaining skilled black executives.

Sibiya said there is high demand for "C-class" skills (CEO, CFO and the like) in the ICT sector and these are in short supply. By definition, he said, the sector is a rapidly changing environment. "This makes the shortage of skills even worse." Demand continues to climb and companies offer ever more lucrative incentives for black executives to join their teams, encouraging job-hopping, which exacerbates the problem as sought-after candidates migrate from company to company.

Further aggravating matters, he said, is the fact that the sector has recently gone through "tumultuous times", which means it isn`t always easy for companies to adequately remunerate the high-level individuals they would like to attract and retain.

Sibiya pointed out that management styles of white and black executives differ "significantly", with black executives going for a far more consultative approach than the majority of their white counterparts.

His company finds itself increasingly drawn into conducting leadership effectiveness analysis in order to uncover the underlying reasons for mixed-race management teams` struggle to implement defined strategies. He cited an example of "a deal that was much celebrated, but the dynamics in the boardroom were disastrous".

If at any stage you are not comfortable with your BEE partner, no matter what benefits are down the line, I would advise you against continuing.

Brian Rainier, MD, Brainier Capital & Consulting

He added that it is becoming imperative for executive-level recruitment firms to understand where different members of the board "are coming from" in terms of their various leadership styles. The efforts of many black executives are derailed due to "very weak" support systems. "It`s very lonely out there," commented Sibiya.

On the positive side, he believes there is a growing pool of middle management black employees who can be groomed to take over executive positions in the years ahead. Their success, however, depends heavily on the commitment of local companies to provide effective mentoring programmes.

"More and more companies are seeing the need to spend time and money on bringing younger guys in and building them up. The issue of mentorship is becoming more and more important."

It`s very lonely out there.

Terence Sibiya, IT and telecommunications practice, Heidrick and Struggles

Urmila Bhoola, executive director of human resources organisation The Resolve Group, opened her presentation on employment equity-related issues by emphasising that "your people are your business".

"The aim of the Employment Equity Act is to create a workplace where stereotypes are irrelevant, where all that is relevant is a person`s ability to do his or her job well," she said.

"We have had five years of employment equity and most fears the process raised have proved unfounded. There have, however, been concerns about how slow the process has been."

Merely eliminating discrimination, said Bhoola, is not enough to create a level playing field. The conditions of the Act should be seen as the "minimum requirement" in terms of sustainable transformation. "The Act is one visible way of creating change by achieving equitable representation of previously disadvantaged individuals and white women."

Research shows that effective employment equity has a positive impact on the bottom line, but gender issues and the need to include disabled people in staff are still being largely ignored, added Bhoola. She urged management teams to take a good look at their employees across the enterprise, identify barriers to transformation and work at systematically removing these.

The aim of the Employment Equity Act is to create a workplace where stereotypes are irrelevant, where all that is relevant is a person`s ability to do his or her job well.

Urmila Bhoola, executive director, The Resolve Group

Dali Mpofu, chairman of the ICT empowerment charter working group, injected a positive note as he brought delegates up to speed on changes incorporated into the fourth draft of the charter.

He said the fact that the conference was entitled "How to BEE in IT" showed how attitudes had changed towards transformation in the ICT sector. "[It] indicates where we are as a country. Ten years ago it would have been 'Whether to BEE or Not`."

Speaking after the event, Kumaran Padayachee, CEO of Spartan Technology Rentals, said all companies in the ICT sector must proactively institute mechanisms and programmes for implementation of the ICT charter and stop offering excuses aimed at stalling its finalisation, particularly as "all the major contentious issues have been adequately addressed".

He added that the transformation goals and targets contained in the ICT charter are "realistic and achievable".

"The time for excuses is over. All industry stakeholders need to initiate implementation of the cornerstones of the ICT charter with immediate effect," stated Padayachee.