The state of transformation

With the release of the 16th Commission of Employment Equity (EEC) Report by the Minister of Labour we were once again reminded that transformation in the business arena remains a necessity and challenge within the South African business landscape.

In support of transformation, FAnews hosted a round table discussion, sponsored by Insure Group Managers at The Venue in Sandton, to debate and discuss transformation in the industry and to ensure that this topic remains on the public agenda within the industry.

A panel of industry experts and leaders including Alan Hosking (HR Future Magazine), Ian du Toit (Director - Insure Group Managers), Leila Moonda (GM Governance & Transformation - South African Insurance Association (SAIA), Drew Schnehage (Insurance Institute of Gauteng - Transformation Committee Member) and Nobuhle Nkosi (Head of Financial Lines Africa - Allianz Global Corporate & Specialty South Africa - AGCS), discussed and debated topics around proposed themes raised by MC, Bruce Whitfield.

The themes addressed included the progress made with transformation in the industry, why there is a need for transformation within the industry, the benefits of transformation, the challenges facing the industry to implement transformation, how such challenges can be overcome, if enough is being done to ensure skills development within the industry to support transformation and what the practical steps are that players in the industry can take to support transformation within their own businesses.

A word of the wise

Whitfield led the discussion by asking the panel members what their thoughts and opinions are on transformation and why there is a need to discuss it.

“Transformation is a topic that is out there. It has been and continues to be talked about but what is the state of transformation? Is it a sensitive topic?” Asked du Toit.

“In the 12 years since I first joined the short-term insurance industry, I have seen some transformation taking place, but it has been slow and more needs to be done and it needs to be done quicker. In South Africa we are good at putting policies together, but we are generally much weaker at implementation. Our failure, from Government down to business, is in implementation,” said Moonda. 

Schnehage believes there has been change but not enough. "We are talking about it but not doing much. You have to drive transformation. It not only comes down to companies but to individuals too. You cannot just leave transformation up to companies and CEOs; it’s also up to individuals to network and enhance their education,” she said. 

Changing the status quo

“Companies do not always see the value add of transformation. For example, a company CEO may ask, ‘why must I spend R5 million, what am I getting out of it?’ Business is about the bottom-line, the CEO needs to see how transformation will add to that. Once companies identify how transformation brings value to their organisations, then you see true commitment,” said Moonda

“The reality is that transformation is vital to businesses surviving. In a South African context, with the diversity of our population, an organisation’s diversity must match that. Transformation is not just about diversity but about changing the rules of the game,” she continued.

Nkosi says it’s about changing the status quo for transformation to take place. “As much as we want to be accepted we have to accept others. We need a culture of inclusion. Learning to embrace our differences will help us in changing our mindset which will then make it easier to accept change. Diversity should start at senior management level; a diverse executive team is more open to addressing issues of transformation and having robust discussions without any fear of prejudice.” 

“The plans and strategies for transformation are in play, but the disconnect happens with the implementation by business.Companies need to move away from their outdated mindsets to close the generation gap between old school boardrooms and the future thinking of the millennial generation,” echoed Schnehage.

Getting the ball rolling

In order to get transformation going Du Toit said we must be ready to change. “In terms of attracting millennials we need to get more funding and make the industry more attractive to bring in young people and drive transformation. We need to help businesses of all sizes and assist in transformation planning, implementation, monitoring and everything else that goes with this process,” continued Du Toit.

Moonda emphasised that we need to educate and encourage more young people to get into the industry to drive transformation.

Leadership, planning and the intent to do something are the drivers for transformation says Hosking. “Business leaders require transformation of their thinking because, when they start thinking differently, they will in turn do things differently.”

Nkosi believes that in order to get transformation going we need to focus on organisational culture, education and young people. “These are all important aspects to drive transformation. It brings diversity, skills, and different perspectives,” said Nkosi.

Hosking agreed with this by saying that the insurance sector is in need of good quality skills. “Education has to get attention from senior level. Business leaders should seize the opportunity to play a role in giving youngsters skills that will be of value in the workplace.”

“Individuals should educate, uplift and put themselves out there too. For example, an individual should approach management and ask to be uplifted, they should ask to be enhanced and ask for the help. This drives transformation,” said Schnehage.

In closing, Du Toit highlighted that panel members support the notion that transformation makes people uncomfortable so it is important for role players in the industry to address the fears surrounding the process of transformation – because this can be limiting to the process. The panelists were in agreement that the intent to change and transform is a key factor and the basis on which successful transformation should be built. Once the intent to transform has been established, it is important that business find practical ways to implement transformation in ways that really makes a difference.

Editor’s Thoughts:
It was clear from the discussion that the challenge of transformation is a diverse one with many complexities. But, what was very exciting is the fact that a few practical steps were identified that can be focused on and driven by the industry.If you have any questions please comment below, interact with us on Twitter at @fanews_online or email me - myra@fanews.co.za

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