How South African Businesses Design and Execute Transformation Initiatives

188 Pages·2017·1.55 MB·English

by  Heather Prinsloo

How South African Businesses Design and
Execute Transformation Initiatives:
Implications for Coaching

A Research Report submitted by
Heather Prinsloo

Wits Business School
February 2017

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ABSTRACT
The body of knowledge on transformation is growing and previous researchers have
set a foundation by focusing on different aspects of B-BBEE and legislative redress.
Scientific research on coaching as a tool to facilitate legislative redress is emerging.
The objective of the research was to add to the emerging body of knowledge and
uncover how South African businesses approach transformation, what processes and
resources they use and what best practices are applied and if opportunities existed to
introduce new concepts and frameworks, such as Coaching.
The study used qualitative research methodology. Semi-structured interviews were
conducted with two employees in four different organisations, four technical
signatories in two verification agencies and four B-BBEE consultants. The
organisations who participated in the research qualified as level, one, two and three
contributors to B-BBEE. It was assumed that the B-BBEE level would indicate the
extent of transformation in the organisations.
Transformation in South Africa remains a contentious issue for business and
employee responses to redress range from positive to negative. Organisations have
been slow to respond to the people aspects of transformation. From the research, it
was evident that organisations, verification agencies and consultants interchanged B-
BBEE and transformation, implying that in South Africa, the concepts were similar, if
not the same. Organisations’ responses to B-BBEE were still very reactive and at the
time of the interviews, the respondents all expressed varying levels of concern to the
gazetting of the amended B-BBEE Codes of Good Practice. The view held, was that
the amended codes would require organisations to take a more strategic view of
transformation. Only one of the four organisations interviewed confirmed that they had
a transformation strategy. As for the other organisations, the strategies could be
described as emerging
Best practice is beginning to emerge and on some elements of the scorecard,
improvements can be seen as organisations adapt approaches to yield a return on
investment. Coaching as a resource to facilitate transformation was approached with
caution even though the respondents recognised that third party interventions were
necessary. The research builds a case for coaching as a tool to embed learning and
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development as organisations shift from a tactical response to B-BBEE to a more
progressive or authentic goal.

Keywords: Coaching, Transformation, Broad-based Black Economic Empowerment,
B-BBEE, Employment Equity, Transformation Strategy, Legislation, Policies and
Procedures, Culture and Diversity, Organizational Development
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DECLARATION

I, Heather Prinsloo, declare that this research report is my own work except as
indicated in the references and acknowledgments. It is submitted in partial fulfilment
of the requirements for the degree of Master of Management (Business and Executive
Coaching) in the University of the Witwatersrand, Johannesburg. It has not been
submitted before for any degree or examination in this or any other university.

____________________________________
Heather Prinsloo

Signed at ____________________________

On the _____________ day of ___________________ 2017

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ACKNOWLEDGEMENTS
This research would not have been possible without the support, encouragement and
motivation of the following;
• My Supervisor, Hugh Myres, for his enduring patience, insight and advice.
• To my children, Jason and Faye, who graciously gave me the space, time and
love and support to pursue my studies.
• Members of my cohort for who shared the journey with me. Special thanks to
Mxolisi and Phyllis for your encouraging motivation and support.
• A huge thank you to the Companies who so willingly participated in the
research. Without your assistance, this research would not have been possible.
I wish to express to you all, my most sincere appreciation.
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Contents
ABSTRACT ........................................................................................ ii
DECLARATION ................................................................................. iv
ACKNOWLEDGEMENTS .................................................................. v
LIST OF TABLES ............................................................................... x
LIST OF FIGURES ............................................................................ xi
1 CHAPTER 1: INTRODUCTION ................................................. 1
1.1 PURPOSE OF THE STUDY..................................................................................... 1
1.2 CONTEXT OF THE STUDY ..................................................................................... 1
1.3 PROBLEM STATEMENT ........................................................................................ 3
1.3.1 MAIN PROBLEM ................................................................................................................ 3
1.3.2 SUB-PROBLEMS ............................................................................................................... 3
1.4 SIGNIFICANCE OF THE STUDY .............................................................................. 3
1.5 DELIMITATIONS OF THE STUDY ............................................................................. 5
1.6 DEFINITION OF TERMS ........................................................................................ 5
1.7 ASSUMPTIONS ................................................................................................... 6
2 CHAPTER 2: LITERATURE REVIEW ....................................... 7
2.1 INTRODUCTION .................................................................................................. 7
2.2 CONTEXT OF TRANSFORMATION IN SOUTH AFRICA. .............................................. 8
2.2.1 BROAD-BASED BLACK ECONOMIC EMPOWERMENT (B-BBEE) ......................................... 11
2.2.2 REACTION TOWARD REDRESS ......................................................................................... 13
2.2.3 EMPLOYMENT EQUITY AND DIVERSITY ............................................................................. 17
2.3 ORGANISATIONAL STRATEGY ............................................................................ 18
2.3.1 CORPORATE STRATEGY ................................................................................................. 19
2.3.2 HUMAN RESOURCE MANAGEMENT STRATEGY ................................................................. 20
2.4 EXECUTION TO EFFECT TRANSFORMATION ......................................................... 21
2.4.1 STRATEGY PROCESSES .................................................................................................. 22
2.4.2 ORGANISATIONAL DEVELOPMENT AND CHANGE ............................................................... 23
2.5 RESOURCES TO EFFECT TRANSFORMATION ....................................................... 26
2.5.1 TALENT MANAGEMENT ................................................................................................... 26
2.5.2 CULTURE AND DIVERSITY MANAGEMENT ......................................................................... 27
2.5.3 TALENT AND SKILLS DEVELOPMENT ................................................................................ 29
2.5.4 MENTORING AND COMMUNITIES OF PRACTICE ................................................................. 31
2.6 THE POTENTIAL FOR COACHING AS A RESOURCE TO FACILITATE TRANSFORMATION
...................................................................................................................... 32
2.7 CONCLUSION OF LITERATURE REVIEW ............................................................... 36
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3 CHAPTER 3: RESEARCH METHODOLOGY ......................... 38
3.1 RESEARCH PARADIGM ...................................................................................... 38
3.2 RESEARCH DESIGN .......................................................................................... 38
3.2.1 DATA COLLECTION ......................................................................................................... 39
3.3 POPULATION AND SAMPLE ................................................................................. 40
3.3.1 POPULATION .................................................................................................................. 40
3.3.2 SAMPLE AND SAMPLING METHOD ..................................................................................... 40
3.4 THE RESEARCH INSTRUMENT ............................................................................ 41
3.5 PROCEDURE FOR DATA COLLECTION .................................................................. 42
3.6 DATA ANALYSIS AND INTERPRETATION ............................................................... 42
3.7 LIMITATIONS OF THE STUDY ............................................................................... 43
3.8 VALIDITY AND RELIABILITY ................................................................................. 43
3.8.1 EXTERNAL VALIDITY ........................................................................................................ 44
3.8.2 INTERNAL VALIDITY ......................................................................................................... 44
3.8.3 RELIABILITY ................................................................................................................... 45
3.8.4 ETHICS .......................................................................................................................... 45
4 CHAPTER 4 PRESENTATION OF RESULTS ........................ 46
4.1 INTRODUCTION ................................................................................................ 46
4.2 CASE STUDY 1:................................................................................................ 50
4.2.1 TRANSFORMATION STRATEGY......................................................................................... 50
4.2.2 LEGISLATION, POLICIES AND PROCESSES ........................................................................ 51
4.2.3 TALENT MANAGEMENT IN TRANSFORMATION ................................................................... 52
4.2.4 CULTURE AND DIVERSITY ............................................................................................... 56
4.2.5 ORGANISATIONAL VIEW ON TRANSFORMATION ................................................................ 57
4.4 CASE STUDY 2:................................................................................................ 61
4.4.1 TRANSFORMATION STRATEGY......................................................................................... 61
4.4.2 LEGISLATION, POLICIES AND PROCESSES ........................................................................ 62
4.4.3 TALENT MANAGEMENT IN TRANSFORMATION ................................................................... 63
4.4.4 CULTURE AND DIVERSITY ............................................................................................... 67
4.4.5 CHANGE MANAGEMENT .................................................................................................. 68
4.4.6 ORGANISATION VIEW ON TRANSFORMATION .................................................................... 69
4.5 CASE STUDY 3:................................................................................................ 71
4.5.1 TRANSFORMATION STRATEGY......................................................................................... 71
4.5.2 LEGISLATION, POLICIES AND PROCESSES ........................................................................ 72
4.5.3 TALENT MANAGEMENT IN TRANSFORMATION ................................................................... 73
4.5.4 CULTURE AND DIVERSITY ............................................................................................... 77
4.5.5 CHANGE MANAGEMENT .................................................................................................. 78
4.5.6 ORGANISATION VIEW ON TRANSFORMATION .................................................................... 78
4.5.7 RELATIONSHIP WITH VERIFICATION AGENCY AND CONSULTANTS ...................................... 80
4.7 CASE STUDY 4:................................................................................................ 82
4.7.1 TRANSFORMATION STRATEGY......................................................................................... 82
4.7.2 LEGISLATION, POLICIES AND PROCESSES ........................................................................ 83
4.7.3 TALENT MANAGEMENT IN TRANSFORMATION ................................................................... 84
4.7.4 CULTURE AND DIVERSITY ............................................................................................... 89
4.7.5 CHANGE MANAGEMENT .................................................................................................. 90
4.7.6 ORGANISATION VIEW ON TRANSFORMATION .................................................................... 91
4.8 VERIFICATION AGENCIES .................................................................................. 92
4.8.1 TRANSFORMATION STRATEGY......................................................................................... 93
4.8.2 LEGISLATION, POLICIES AND PROCESSES ........................................................................ 94
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4.8.3 TALENT MANAGEMENT IN TRANSFORMATION ................................................................... 96
4.8.4 CULTURE AND DIVERSITY ............................................................................................. 101
4.8.5 CHANGE MANAGEMENT ................................................................................................ 102
4.8.6 VERIFICATION AGENCY VIEW ON TRANSFORMATION ...................................................... 103
4.9 TRANSFORMATION CONSULTING FIRMS ........................................................... 106
4.9.1 TRANSFORMATION STRATEGY....................................................................................... 106
4.9.2 LEGISLATION, POLICIES AND PROCESSES ...................................................................... 107
4.9.3 TALENT MANAGEMENT IN TRANSFORMATION ................................................................. 109
4.9.4 CULTURE AND DIVERSITY ............................................................................................. 113
4.9.5 CHANGE MANAGEMENT ................................................................................................ 114
4.9.6 CONSULTANTS VIEW ON TRANSFORMATION ................................................................... 115
5 CHAPTER 5 DISCUSSION OF RESULTS ............................ 118
5.1 INTRODUCTION .............................................................................................. 118
5.2 TRANSFORMATION AND B-BBEE ..................................................................... 121
5.3 VIEW ON TRANSFORMATION ............................................................................ 123
5.4 LEGISLATION, POLICIES AND PROCESSES ........................................................ 124
5.5 STRATEGY ..................................................................................................... 126
5.6 HUMAN RESOURCE MANAGEMENT STRATEGY .................................................. 128
5.7 TALENT MANAGEMENT ................................................................................... 129
5.8 ROLE AND RESPONSIBILITIES IN TRANSFORMATION ........................................... 130
5.9 LEADERSHIP .................................................................................................. 130
5.10 EMPLOYMENT EQUITY .................................................................................... 132
5.11 RECRUITMENT AND RETENTION ....................................................................... 134
5.12 TALENT AND SKILLS DEVELOPMENT ................................................................. 136
5.13 SKILLS DEVELOPMENT .................................................................................... 137
5.14 TALENT DEVELOPMENT .................................................................................. 140
5.15 CULTURE AND DIVERSITY ............................................................................... 142
5.16 CHANGE MANAGEMENT .................................................................................. 145
5.17 COACHING ..................................................................................................... 147
5.18 CONCLUSION OF DISCUSSION ......................................................................... 148
6 CHAPTER 6 CONCLUSION AND RECOMMENDATIONS ... 149
6.1 EMERGENCE OF BEST PRACTICE FROM THE FINDINGS ....................................... 149
6.1.1 STRATEGY ................................................................................................................... 149
6.1.2 EMPLOYMENT EQUITY .................................................................................................. 149
6.1.3 SKILLS DEVELOPMENT.................................................................................................. 150
6.1.4 LEADERSHIP ................................................................................................................ 150
6.1.5 OTHER ........................................................................................................................ 151
6.2 TRANSFORMATION ......................................................................................... 151
6.3 RECOMMENDATIONS ...................................................................................... 152
6.4 IMPLICATIONS FOR STAKEHOLDERS ................................................................. 154
6.4.1 LEADERS IN ORGANISATIONS ........................................................................................ 154
6.4.2 IMPLICATIONS FOR HUMAN RESOURCES ........................................................................ 155
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6.4.3 IMPLICATION FOR POLICY MAKERS ................................................................................ 157
6.4.4 IMPLICATION FOR CONSULTANTS AND VERIFICATION AGENCIES ...................................... 158
6.4.5 IMPLICATIONS FOR COACHING ....................................................................................... 159
6.5 SUGGESTIONS FOR FURTHER RESEARCH .......................................................... 159
REFERENCES ............................................................................... 161
ADDENDUM ................................................................................... 171
ADDENDUM 1: ACRONYMS ......................................................................................... 171
ADDENDUM 2: SEMI STRUCTURED INTERVIEW QUESTIONS ........................................... 172
ADDENDUM 3: CONSENT LETTER ............................................................................... 174

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LIST OF TABLES
Table 1.1: Legislation that facilitates Transformation ................................................. 2
Table 2.1: Elements and Purpose of Generic Codes of Good Practice (2007) .......... 9
Table 2.2: Comparative Elements of the B-BBEE Scorecard ................................... 10
Table 2.3: B-BBEE Level Qualifying Criteria ............................................................ 10
Table 3.1: Profile of respondents ............................................................................. 41
Table 4.1: Profiles of Sample ................................................................................... 48
Table 4.2: Key Themes ............................................................................................ 49
Table 5.1: B-BBEE Generic Scorecard Performance (2007) .................................. 119
Table 5.2: B-BBEE Sector Specific Scorecard Performance (2007) ...................... 120
Table 5.3: Management Control and Employment Equity Scorecards ................... 132
Table 5.4: Skills Development Scorecards ............................................................. 137

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