Family-owned businesses make up a significant portion of all businesses registered and operating in South Africa. In fact, family-owned businesses are today recognised as vital participants in, and contributors to, the country’s economy. Unlike other businesses, family-owned businesses face their own set of unique challenges. As families and family-owned businesses develop and grow, personal relationships between family members often start to become more complex, more difficult and in some cases, more fragmented. As a result of these dynamics, fewer than half of all family-owned businesses are able to survive a generational change in ownership, and a very small percentage prove sustainable beyond the third generation. According to Michelle Geraghty, Business Development Head at FNB Business Advisory, the majority of family-owned businesses fail by not planning for succession and other events including family conflicts, divorce and transition of leadership. However, Geraghty argues that does not need to be the case, and that a family-owned business has the potential to go from strength to strength through generations, provided that appropriate governance frameworks to manage the family dynamic are adopted and agreed to by all the family members. “A family business constitution is the ideal way of managing the family dynamic within a business and ensuring that relationships are protected while the best interests of the business are advanced,” says Geraghty. She describes a family constitution as a written document that exists alongside and must be aligned with the other business governance frameworks, such as a shareholder agreement or memorandum of incorporation, as it sets out the rights, values, responsibilities and rules that apply to all family members as stakeholders of the business whether active or passive. Geraghty explains, “that a family business constitution does not need to be complicated and can be tailored to the evolving requirements of the family-owned business as the family grows and new spouses, partners and generations are added.” Geraghty advises family-owned businesses to introduce a family constitution as early as possible, when the family and business structure are as uncomplicated as possible, and decisions regarding the guidelines or rules to be included in the framework can be made objectively. But she points out that a constitution can be established at any point in a business’ history and doing so can avoid significant conflict down the line. “In our experience at FNB, while some of the decisions that need to be made when setting up a constitution can be uncomfortable, especially for a long-standing business, the relatively minor pain of making those choices now pales in comparison to the potentially massive, and possibly business destroying, conflict that a family constitution can help prevent in the future,” says Geraghty. Geraghty adds that conflict avoidance is not the only reason for, or benefit of, a family business constitution. “In addition to setting out plans and structures to deal with situations that could arise during the course of business, the family constitution can be a highly effective recruitment, remuneration, compensation, retirement and succession planning vehicle, and it is an excellent way of maintaining certainty within the business in the event of a family event or tragedy, like the severe illness, injury, divorce or even death of a family member who is a shareholder.”
September 2022
Finding your business flow makes quality and speed feel effortless
By Nkululeko Nombika, Business Operations Director, Sage Africa, Middle East and Australia-Pacific You have probably experienced the feeling of being ‘in the zone’. Perhaps it comes to you when you’re running, working on a piece of art or getting engrossed in the analysis of a spreadsheet. You get into a flow and only realise it when you lose your sense of time. Difficult things become effortless, you’re performing at your best, and every action and decision flows seamlessly from the last. Your business, too, can find this sort of flow. It’s a state where your team is empowered to achieve peak performance, and your business benefits from higher output and quality. Good business flow describes a company’s ability to consistently and steadily provide value to its customers. Flow is disrupted when everyone appears busy, but nothing is getting done. Business flow comes from building a talented team that collaborates effectively. But even if your business only hires the best, impediments like manual processes, disjointed systems, and multiple data sources can create anxiety and frustration in your teams. Getting your process and data flow right will facilitate team fluidity and take performance to the next level. Process flow Streamlining and automating processes within your business is one of the best ways to achieve flow. By using cloud technology, you can connect your people to one another and to their work to get things done faster. Business process automation (BPA) removes manual, repetitive processes and gives time back to your people so they can work on higher-value tasks. For example, instead of your team sending emails back and forth or having to follow up with their managers for approvals, BPA pushes documents and approvals through a workflow, notifying and reminding people when their input is needed. Cloud solutions capture and track every action, providing valuable, auditable data that you can use to identify issues and make informed decisions – any time, anywhere. Integrating processes also dramatically improve team productivity, frees them up to focus on more important tasks, and enables the entire business to flow forward seamlessly. Data flow A well-organised information flow can reduce costs, improve customer service, and make processes more efficient. Yet sharing information between the multiple systems in most businesses is challenging, often requiring the information to be entered multiple times in different ways, duplicating efforts, and increasing the risk of error. Monitoring data streams, opening up silos, and removing barriers unlocks competitive advantages and drives innovation by sharing ideas and information, transferring knowledge, and supporting collaboration. The challenge comes when making data available throughout business flows and functions without comprising security or compliance. That’s where cloud financial, HR, payroll and ERP systems come into play. They not only remove barriers to sharing information but also provide the ability to control access and maintain an audit trail for integrated, automated reporting. A modern cloud platform can give your business a single, real-time view of manufacturing, supply chain, CRM, HR, and warehouse management. Moreover, the ability to customise workflows reduces risk and improves the employee experience by reducing errors caused by insufficient or incorrect information. High-level planning and decision-making also become faster and easier. That’s because each person can access the data they need to inform their job. Don’t lose the flow When your organisation is not optimised for flow, work gets passed between busy team members who are exhausted from the effects of context switching, excessive meetings, rework, and an inability to focus. This has a significant impact on both quality and speed of delivery. Automating repetitive, low value activities can free your team’s time to focus on what matters, helping them to find their flow and enabling your business to thrive.
Artistry… Re-energising Sandton for a new generation
The rule of three applies in meaningful ways to so many areas of everyday life as far back as the three wise men. In nature, land, sea and air are a triad to be reckoned with. Earth, Wind and Fire are Motown icons. Even in the composition of a beautiful photograph, the rule of thirds is the secret weapon. And, so it is with the collaboration between two South African brands that consciously choose to partner with other best-in-class brands. Award-winning musician, J’Something has partnered with hotel and apartment network, BlackBrick to conceptualise Artistry. The trilogy approach applies to all aspects of their brand-new venture; from an operations perspective Artistry, will benefit from the expertise and experience of seasoned music and entertainment entrepreneur, Ricardo Da Costa (the man behind The Ivy and Altitude Beach). Artistry – where a night out on the town will be a full cultural immersion in one building – is set to ignite the entertainment scene in Sandton in early 2023. New kid on the Sandton block Artistry is a three-level experience which will take guests on a journey from the rooftop restaurant, then on to the middle level for live music and theatre performances and, finally, to the street-level lounge bar for an unforgettable after party. The perfect trilogy operating in one eco-system and igniting all the senses. J’Something expands on the inspiration behind Artistry: “Everything we do is inspired by the classics, the things that have managed to stand the test of time; from the food to the drinks, the interior and the architecture, we keep it real by only adding the essential parts to our spaces.” The Rooftop will include an eatery, bar, pool and outdoor cinema. This is the meeting place, the spot where friends gather to celebrate life and the philosophy of living freely over pre-dinner drinks and great flavourful food that people can relate to whilst enjoying the surrounding city views. The menu will take a purist approach to classics like steak and potatoes or fish and chips, pizzas, burgers – but all will be prepared with finesse. The 100-seater Theatre is intended as the birthplace of original ideas and will be home to a variety of performances ranging from unplugged music and theatrical performances to comedy shows, movie premieres and unique curated talks. So, what happens once Artistry guests have eaten their favourites from a menu filled with classic dishes and watched an exceptional performance, but they are not ready to call it a night? It’s time to listen to really good vinyl set from some of SA’s pioneering DJ crew at the AfterParty Bar which is filled with delicious monsters and opens onto a planted terrace. The perfect spot to sip on a selection of classic cocktails over conversations dissecting the thought-provoking performance in the Theatre or just shooting the breeze. Essentially guests at the AfterParty level of Artistry can set the tone for the way they want to end a night on the town. Location, location, location Key to the concept is of course the location of Artistry. BlackBrick is a place where people can live and work freely between cities with the flexibility of long or short apartment and hotel stays. The on-site hotel element means guests at Artistry also have the option of staying over to really make a night of it, alleviating the hassle of nominating a designated driver or using a ridesharing app to head home! From an economic perspective, this development could be the catalyst for the rebirth of Sandton not just as a business node, but as a cultural node too attracting a new generation of South Africans and visitors from around the globe. Artistry is a major cultural investment following the financial investment of buyers into the BlackBrick Sandton development in excess of R500-million over the last three years, making this the best-selling development in Sandton. The new creative partnership is an extension of the BlackBrick ethos. This would be the alchemy of Artistry. The Artistry brand and concept creates a platform for the intersection of big business and small business. Sandton has historically been very corporate, but Artistry signifies the integration of lifestyle and leisure in a world where the lines between personal space and working space have been blurred in the wake of the Covid pandemic. Few things remain unchanged and Joburg is starting to re-energise but it is no longer a corporate suited culture. The key to the future success of Sandton will be emerging as a city that is alive 24/7 similar to New York or Amsterdam. Projects like Artistry anchor this hope. Stop, collaborate and listen… Food and hospitality are in his DNA and speaking from a cultural perspective, J‘Something believes this is a platform for growth across all the creative industries: “BlackBrick and myself have come together as creative minds on this project. The name Artistry really does explain a lot about what we are trying to achieve. This is not meant to be a trendy nightspot for a set period of time, it is intended to become a way of life. The Artistry philosophy even extends to the furniture which features mostly recycled pieces. Things that have stood the test of time will be given the stamp of Artistry.” For more information visit the Artistry website on http://thisisartistry.co.za/ Get Social: Keep up to date with the latest news from Artistry via Instagram and Facebookon @artistryjhb ABOUT BLACKBRICK: …
Accountability at work – in the Age of Entitlement
he genesis of the Two “E’s” started some generations ago — Entitlement and Expectation. One might (still) blame the Millennials but somehow, these culture mindsets have found and wound their way from wider generational shifts in attitudes and action to a place where they simply don’t belong: the office. Fresh-out-of-uni earners and first-time employees are stepping through the door and onto career rungs with the misguided belief that simply showing up is enough: that you “deserve” the perks without the work; the promotion without the performance. But, the brutal truth is that when it comes to real success for employees, leaders and companies, the only “E” that is welcome and warranted is how you “Earn” it. “The only thing Entitlement and Expectation are earning is a bad rap,” says Kerry Morris, CEO of specialist recruitment agency, The Tower Group. Reported as a regular HR headache amongst industry players, Morris says that employees – specifically from a younger cohort – enter the job market with an attitude of entitlement that perpetuates a difficult, ineffective and unhealthy work culture for leaders to manage, and for team members alike, to learn from. This idea of “you owe me” results in employees expecting to receive something (or everything) in return for putting little, less, or nothing in. The attitude of Expectation starts as early as learners arriving to their internship and expecting a free lunch on the job, or expecting their facilitator to spoon feed the assignment. Before long, Entitlement and Expectation replace sound work ethic and integrity. “For as long as it is accepted in industry, ‘Entitlement’ will become the norm – and it’s not okay anymore,” says Morris. According to Morris, a company’s culture should be a level playing field where employees and leaders seek to be accountable before being entitled. “This me-me-me mindset creates obstruction and conflict amongst leaders and employees, amongst employees and employees, and ultimately becomes the demise of the company’s common goal; our leaders and employees need to adopt an emotional intelligence that sees them owning their roles and their responsibilities; owning their follow-throughs, their decisions, their triumphs and their failures. Essentially this is how you scale a business, and too often it is overlooked,” says Morris When it comes to harnessing an accountable work culture, who’s responsible? In a Gallupdata survey reported by Monday.com, 25% of leaders believe that 10% to 20% of their workers avoid accountability, while 84% of employees blamed the behaviour of their leaders as the single most important factor influencing accountability in their organisations – so just where does the responsibility of …
ProfitShare Partners, a National sponsor of NSBC Awards
The National Small Business Chamber’s (NSBC) annual South African Small Business Awards is known as a “springboard to enhanced business success” for putting small business owners and entrepreneurs in the spotlight; and celebrating the most successful of these while bringing recognition to all entrants. This year, ProfitShare Partners – the Fintech company that is disrupting the SME funding landscape in South Africa – is thrilled to be a sponsor of the event, that will culminate in a memorable awards evening on 17 November 2022. In 2019, ProfitShare Partners itself won this prestigious award. Says Andrew Maren, founder and CEO of ProfitShare Partners and serial entrepreneur himself: “We’ve long admired the work the NCBC does in the sector, especially in giving small to medium size businesses the opportunity of being part of its impressive 156 000-strong network. “Like the NSBC, ProfitShare Partners recognises the vital impact small businesses have on the South African economy at every level, and we feel it is important for organisations like ourselves to show up for NSBC members with solutions to sourcing capital to build and grow small businesses in our country.” Commitment to small business The NSBC is Africa’s leading SME organisation and the fastest growing organisation of its kind in the world, committed to helping business owners and entrepreneurs become tomorrow’s business legends. The organisation provides an array of robust benefits for its members, and is dedicated to being their voice and support, to ensure that their business thrives. Because PSP’s business model doesn’t require financials, security or even a track record, SMEs with a signed order from a corporate for their products or services can apply online for assistance and get a response within days. “We understand what it takes to start and run a successful business and we’ve worked with hundreds of SMEs and can now boast a zero percent performance failure rate and speedy access to capital via our fully digital online process,” Maren says. “Scores of our clients have achieved a 1000% increase in turnover within a 12-month period,” he notes, adding that PSP’s focus is mainly on clients in the corporate supply chain of large companies or government entities.” ProfitShare Partners looks forward to being a part of the South African Small Business Awards and getting to know the entrepreneurs and business owners making a difference to the economy. Entries are open now and close on 30 September 2022. “We hope many of the businesses we’ve dealt with will enter and we’d like to meet many of those we don’t yet know,” Maren says. “Regardless of whether you take first prize or not, just doing what you do for a living makes you a winner.”