The Black Management Forum (BMF) said top business management in South Africa was broadly responsible for determining the content and pace of transformation‚ and “gate keeping” by top management was identified as “a serious impediment to transformation”.
The BMF on Wednesday launched the Transformation Barometer — a research study done in partnership with Deloitte — on the state of transformation in the country.
It also said it was developing a “Transformation Masterplan”.
The research‚ which looked at key sectors of the economy — manufacturing‚ mining‚ financial services and agriculture — “was informed by the slow pace of transformation in the country”‚ the BMF said.
“For instance‚ in 2012‚ the JSE released a study that showed that black investors hold 9% of the top 100 companies. Meanwhile in March 2015‚ the government through the Presidency and Department of Trade and Industry stated that black ownership of the South African economy is around 3%.
“The Transformation Barometer research was done to inform the development of a Transformation Masterplan‚ and is a diagnosis of the key challenges to South Africa’s socio economic transformation.
“The Transformation Masterplan will contain policy recommendations‚ incentives and general measures to fast-track socio economic transformation.
“Once completed‚ the BMF will lobby government‚ the private sector and other stakeholders for the adoption and implementation of key policy proposals contained in the Transformation Masterplan.”
Among the key findings the research found that significant progress had been made in socio-economic transformation.
Regarding income‚ the research found that the poorest of the country’s citizens had declined significantly during the period 2001-2012. “This is corroborated by Oxfam’s research in 2014 that found that the South African fiscus played a direct role in reducing poverty.”
However‚ income inequality continued to be one of the highest in the world with a Gini co-efficient of 0.63. “Between 1996-2012‚ the number of South Africans living under the poverty line increased by 1.6 million.
“Given the history of South Africa‚ transformation continues to be a contested and emotive issue‚” the BMF said. “The research found that there is widespread malicious compliance.”
Companies half-heartedly complied‚ not because they believed it was an important imperative‚ it said.
“There is an entrenched belief especially amongst minorities‚ that redress is a form of reverse racism. The Transformation Barometer argues that whilst penalties for non-compliance have a role to play‚ it is important to approach transformation as a moral imperative. This is part of nation building and building a fair and equitable society.”
The research identified education as fundamental to the transformation project. It‚ however notes‚ with concern the woeful performance of the country’s education system as a whole.
“The research states that although education has been broadened and accessed by more people‚ quality remains a critical challenge. It observes that South Africa’s allocation of 6% of GDP (gross domestic product) to education is higher than other emerging countries (World Bank‚ 2012).
“Yet‚ the literacy rate of 88.7% is low compared to developed countries and only India is lower amongst the BRICS countries.”
The barometer also found that there was a correlation between employment levels and education. Unemployment amongst graduates of all groups tended to be lower than the national average.
“At the heart of the theme is the acknowledgement of the centrality of the human agency in the transformation agenda‚ particularly top management. However‚ this needs to be looked at in the broader context of institutional structures that might serve to stifle transformation‚” the BMF said.
The research found that top management broadly was responsible for determining the content and pace of transformation. “Gate keeping by top management has been recognised as a serious impediment.”
The Transformation Barometer acknowledges that this was not only the responsibility of black or white top management‚ but “a combination of human agency and the institutional structures and cultures‚ and nepotism have also been identified as challenges that demands attention.”
Gate keeping by top management impedes transformation: BMF
The Black Management Forum (BMF) said top business management in South Africa was broadly responsible for determining the content and pace of transformation‚ and “gate keeping” by top management was identified as “a serious impediment to transformation”.
The BMF on Wednesday launched the Transformation Barometer — a research study done in partnership with Deloitte — on the state of transformation in the country.
It also said it was developing a “Transformation Masterplan”.
The research‚ which looked at key sectors of the economy — manufacturing‚ mining‚ financial services and agriculture — “was informed by the slow pace of transformation in the country”‚ the BMF said.
“For instance‚ in 2012‚ the JSE released a study that showed that black investors hold 9% of the top 100 companies. Meanwhile in March 2015‚ the government through the Presidency and Department of Trade and Industry stated that black ownership of the South African economy is around 3%.
“The Transformation Barometer research was done to inform the development of a Transformation Masterplan‚ and is a diagnosis of the key challenges to South Africa’s socio economic transformation.
“The Transformation Masterplan will contain policy recommendations‚ incentives and general measures to fast-track socio economic transformation.
“Once completed‚ the BMF will lobby government‚ the private sector and other stakeholders for the adoption and implementation of key policy proposals contained in the Transformation Masterplan.”
Among the key findings the research found that significant progress had been made in socio-economic transformation.
Regarding income‚ the research found that the poorest of the country’s citizens had declined significantly during the period 2001-2012. “This is corroborated by Oxfam’s research in 2014 that found that the South African fiscus played a direct role in reducing poverty.”
However‚ income inequality continued to be one of the highest in the world with a Gini co-efficient of 0.63. “Between 1996-2012‚ the number of South Africans living under the poverty line increased by 1.6 million.
“Given the history of South Africa‚ transformation continues to be a contested and emotive issue‚” the BMF said. “The research found that there is widespread malicious compliance.”
Companies half-heartedly complied‚ not because they believed it was an important imperative‚ it said.
“There is an entrenched belief especially amongst minorities‚ that redress is a form of reverse racism. The Transformation Barometer argues that whilst penalties for non-compliance have a role to play‚ it is important to approach transformation as a moral imperative. This is part of nation building and building a fair and equitable society.”
The research identified education as fundamental to the transformation project. It‚ however notes‚ with concern the woeful performance of the country’s education system as a whole.
“The research states that although education has been broadened and accessed by more people‚ quality remains a critical challenge. It observes that South Africa’s allocation of 6% of GDP (gross domestic product) to education is higher than other emerging countries (World Bank‚ 2012).
“Yet‚ the literacy rate of 88.7% is low compared to developed countries and only India is lower amongst the BRICS countries.”
The barometer also found that there was a correlation between employment levels and education. Unemployment amongst graduates of all groups tended to be lower than the national average.
“At the heart of the theme is the acknowledgement of the centrality of the human agency in the transformation agenda‚ particularly top management. However‚ this needs to be looked at in the broader context of institutional structures that might serve to stifle transformation‚” the BMF said.
The research found that top management broadly was responsible for determining the content and pace of transformation. “Gate keeping by top management has been recognised as a serious impediment.”
The Transformation Barometer acknowledges that this was not only the responsibility of black or white top management‚ but “a combination of human agency and the institutional structures and cultures‚ and nepotism have also been identified as challenges that demands attention.”
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