Learnership Management System

BEE scoring

Companies do not achieve levels 2 or 3 by mistake or by ticking boxes. BEE is a very time consuming and complex business task. It needs to be implemented with carefully planned methodologies, which is then properly implemented and monitored in a way that makes complete business sense.

Companies that succeed with BEE understand what needs to be done intrinsically and are fully committed to proper implementation. We have prepared various best practices that need to be in place to fully succeed at B-BBEE.

The Right Mindset

B-BBEE is not a singular once off project. It is a long term process that needs to be included in the company’s everyday activities. B-BBEE needs to be seen as an essential process in a company. Not an afterthought, or an irritation.

Ensure that every person involved with earning points (however remote or seemingly distant to the process) fully understands what BEE is and how it affects their component of the business. A “rogue” manager in a branch of the company could ensure that your targets are constantly missed because they are not prepared to meet them.

The Right Team

Appoint one person who is ultimately responsible for BEE – the BEE Champion. This person is usually the CEO/MD and has the authoritative power to invest in the activities that will gain points. That person is the critical link between strategy and implementation by driving and supporting BEE in all aspects of the business.

The secondary team is then made up of “implementers” or “Element Owners”. These are employees who are experts in their respective fields. It is not very surprising that an HR manager is not fully able to grasp the intricate details of Procurement or the financials. Vice versa an accounting or legal orientated person will not be able to fully relate to a company’s training needs nor know how to effectively manage the learning process.

There are seven elements, but sometimes one person can cover two or three elements. The element owners’ job is to implement best practices for the element. It is not to do all the work in that element! Policies for each element must be set up and followed. Policies must be easy to understand and easy to follow.

Policies that are 50 pages long and completely unworkable and unachievable! All staff associated with the element must be able to give positive input and be conversant with the policy. It may be a cliché, but this is the way to get everyone working as a team towards a common goal.

Policies

Set up policies to further support BEE. This becomes the internal message that all staff will be aware of and how BEE affects their job, and how they can contribute to BEE.

As BEE is sometimes seen as an emotional issue this must be handled as well, often via effective change management. Staff must be kept motivated – if they see BEE as a “taking away their jobs” or “giving them jobs” – it will be counterproductive.

Constant Implementation

If the BEE process is managed well you will be able to implement BEE transactions regularly. Many aspects that earn you points are implemented daily. Preferential Procurement is a great example of that – you are purchasing from suppliers every day. You need to understand the impact of each purchasing decision on the scorecard. A key benefit is that you already have a good idea of how many points your supplier base will give you. In addition you will be able to move some spend from lesser compliant suppliers to more compliant suppliers.

Regular Monitoring

From a management viewpoint, BEE must be measured regularly, ie every month. The BEE champion should produce a scorecard every month, just like the financial director produces monthly management accounts. A scorecard calculator is an essential part of this process. Apart from a scorecard calculator helping with current calculations it will also help with scenario planning and future preparation to ensure that the high score is always maintained.

Strategic Planning

Long term strategies must be implemented, be achievable and measurable. For example it is not feasible to improve employment equity or procurement overnight. A long term strategy is needed. This strategy should integrate past results with anticipated future results. Most importantly the strategy should compare what the company wants to achieve with the costs vs budgets allocated and the feasibility of achieving that target.

Strategise at the right time in the BEE Process. BEE is measured retrospectively. The strategies you implement now might only be measured in as much as one and a half years time.