Dimension Data`s management restructuring has been welcomed by analysts, who describe the move as "mildly positive" for the group.
Dimension Data announced yesterday that it was changing its board and management structure to drive the next phase of its development following a period of globalisation and integration.
The board has been trimmed to consist of four executive directors and six non-executive directors, and the group has set up an executive committee in line with a board decision that a new global management structure should drive the business to the next level.
An analyst says the significance of the move has been overstated in the media because "essentially, certainly from the executive perspective, you`ve got pretty much the same faces but in different roles".
However, he says from a corporate governance point of view, the restructuring is positive. Once a non-executive director in the UK is appointed as planned, there will be seven non-executives to four executives, which addresses several concerns about independence and governance.
"In terms of the executive committee, it`s good to see that they`re bringing more international people into the top structure, which is obviously necessary when you`re running an organisation that`s spread across six continents. You can`t run it purely with a bunch of South Africans."
Another analyst says the appointment of regional CEOs also makes sense in terms of management efficiency.
"The management structure was incredibly cumbersome. You had a massive top structure trying to manage all the operations around the world and of course it became too much.
"The fact that they now have regional CEOs who understand their geographical areas should help, plus it clears up the lines of reporting."
One analyst says the changes are not cosmetic, but have been made in response to changes in the organisation.
The creation of a chief operating officer post, filled by Brett Dawson, is good in terms of succession planning, he says.
"I don`t think anyone`s saying that Brett Dawson will be the next CEO designate, but it does create a position where there is some form of succession."
Analysts have also welcomed the statement that the board will evaluate the separation of the chairman and CEO roles.
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