Transformation has potential to grow the South African economy

Corporate South Africa's Failure to bring sufficient creativity to transformation resulted in empowerment legislation. While this has, in some cases, turned transformation into a numbers game, it also holds the potential to grow the South African economy.

Mpho Nkeli, Executive Director Human Resources & BEE, at Alexander Forbes defines transformation as, "Bigger than just BEE. Its about transforming the way you do business. Transforming the whole outlook of your company. Transforming our economy such that it includes and delivers to our whole society".

Nkeli believes that, "Since corporate environments reflect society. You can help change society by changing your corporate environment."

The aim of transformation, narrowly, was to address the racial economic imbalances of the past. Transformation was initially encouraged by government in the hope that everyone would embrace it. This did not happen. As a result, it was codified, legislated and is now enforced.

Nkeli argues that, "Companies are very entrepreneurial and innovative. All have the ability to find creative solutions to transformation within their own organisations."

In Nkelis experience, however, "Most companies struggle with transformation because they are simply not interested."

In short, the spirit of transformation was not quite what it was meant to be.

The result was empowerment legislation.

Nkeli concedes that, "While the current route to transformation is therefore coercive and bureaucratic, and might kill innovation, codification can lead to habit - and habit can become a way of life."

"Later this will develop into companies wanting to do transformation well, and eventually, companies wanting to do it better than other companies. This is where excellence comes in."

In short, Nkeli argues, "Legislation might grudgingly force companies into transformation. Once they see how it works, however, a virtuous cycle is set in place."

At Alexander Forbes, Nkeli continues, "A lot of our transformation began in compliance mode. After a while, we moved from compliance to commitment. So much so, that we sold part of the business to black entrepreneurs when we created NBC."

"NBC is now our biggest competition. What started out as legislative incentive lead to the creation of a new company, real black empowerment and an expansion in the South African, and African, employee benefits industry."

"This has contributed enormously to economic growth in South Africa. This is what we mean by transformation."

"These early experiences with enterprise development, as opposed to just BEE, taught us the value of real transformation - of ourselves, our industry, economy and society."

"Now, years later, the whole county is getting on to the enterprise development band wagon. This is great. Its the hardest to get right but has the greatest potential to transform our economy."