Ben VenterChairman: BANKSETA Council & Conference Session Chair
6 October 2004
09h15 – 10h00 Pravin Gordhan10h00 – 10h45 Sizwe Nxasana (by Amanda Singleton)10h45 – 11h15 Refreshments11h15 – 12h00 Danisa Baloyi12h00 – 12h45 Charles Okeahalam12h45 – 13h45 Lunch13h45 – 14h45 Ulrich Teichler14h45 – 15h30 Nicholas Biekpe15h30 – 16h00 Refreshments16h00 – 17h30 Peter Senge (Video Conference) 17h30 Cocktail Party
LEADING THE WAY IN TRANSFORMATION: THE SARS SUCCESS STORY!
Pravin GordhanCommissioner: SA Revenue Service
The 2nd BANKSETA International Conference
2004
Presentation by
PRAVIN GORDHAN
Commissioner of SARS
to
SARS MandateThe SARS Mandate
The organisation is tasked to efficiently and effectively collect -
• all national taxes, duties and levies imposed in different pieces of taxation legislation
• all revenue that may be collected in terms of any other legislation, as is agreed between SARS and the organ of State or Institution
SARS is also responsible for the control over the import, export, manufacture, movement, storage or use of certain goods
The organisation is also responsible to the provide advice to the Ministers of Finance and Trade and Industry to on all revenue and customs matters
The Economy
1984-1993
Growth a mere 1% a year
Investment shrinks 2,9% a year
Inflation averages 14,3%
Deficit up to 9.3% in 1993
Fin account net outflows of R46,1 bn
Investment boycott
1994-2003
Growth around 3% a year
Investment expands 4.7% a year
Inflation down to <6%
Deficit down to around 3%
Fin account, net inflows of R169,6 bn
Unprecedented ratings upgrades
Basic needs and social services
1.6 million houses built
700 new primary health clinics built
Electricity to 4 million homes
4.5 million children benefit from primary school nutrition programme
Grant beneficiaries increased: 2.9 million to 7.4 million
SARS Profile
The SARS profile
Collects approximately 90% of the government’s revenue, in excess of R300 billion in direct and indirect taxation
Administers 22 tax types
Deals with over 5 million taxpayers/ taxpaying entities
Operates from over 100 sites nationwide
Employs over 14 000 staff
Administration costs <1.5% of revenue collected (developed countries 2%; developing countries 4-5%)
1,7 MillionImport
transactions
1,4 MillionExport
transactions
3 000Bonded
Warehouses
3 000Rebate
Manufacturers
14 000 SARS Employees
136 000Registered
Traders/Operators
1 451Manufacturers of
excisable products & 4 licensed distributors
1,4 MillionSACU Movements
SARS VOLUMETRICS
4 MillionIndividual taxpayers
1,3millionCorporate Taxpayers
536 281Vat vendors
274 764PAYE Employers
REVENUE PERFORMANCE
R 'billion 1998/9 1999/0 2000/1 2001/2 2002/3 2003/4
Target 179.2 193.9 213.6 236.8 268.5 310.0
Collections 184.8 201.4 220.3 252.3 282.2 302.4
Above/under target 5.6 7.5 6.7 15.5 13.7 (7.6)
Total additional collections (10 year period) 50.4
SARS Performance
Stable tax regime
Fiscal stability
Increased revenue yield (exceeding revenue targets)
Significant tax relief (R73 billion)
Broadening the tax base
Improved service
OUR LEGACY11 separate departments within the Department of Finance.
Declining performance against revenue targets
Unwieldy organisation structures, many layers of management
Procedures were highly bureaucratic, manual and clerical in nature
Weak and outdated physical infrastructure
Wholly inadequate technology infrastructure – disparate line of business systems
Low staff morale with minimal representivity, limited career opportunities and lower than market related remuneration
Prevalence of internal fraud and corruption
OUR LEGACY…The SA ClimateThe South African compliance climate reflected
Low tax literacy vs high tax complexity
Low tax morality
Negative perception of the tax system and administration
Weak protection of our borders against illicit trade
Preferential tax treatment
• Certain sectors
• Greater ability to distort tax burdens among the affluent
PRINCIPLES OF A GOOD TAX AND CUSTOM ADMINISTRATION (OECD)
A good tax and customs administration should….
1. Apply tax laws in a fair, reliable and transparent manner
2. Outline and communicate to taxpayers their rights and obligations as well as the available complain procedures and redress mechanisms
3. Treat enquiries, requests and appeals from taxpayers in an accurate and timely fashion
4. Provide an accurate and dependable information service
5. Ensure that compliance costs are kept to a minimum
6. Where appropriate give taxpayers’ opportunities to comment on changes to administrative policies and procedures
7. Use taxpayer information only to the extent permitted by laws that limit their use to tax officials except under compelling circumstances
EVOLUTION OF SARS Introduced modern employment practices
Standard job descriptions and job specifications
Career paths
Competitive remuneration
New collaborative approach with Unions
Redefined strategic direction of SARS
Vision
Mission
Values
Taxpayer Charter
Code of Conduct
Compliance Model
EVOLUTION OF SARSRefocused efforts on enforcement
Increased audit capacity
Introduced new tools and techniques
Rolled out national campaigns addressing high risk areas
Siyakha “We are Building”
Transformation programme launched
Commenced with organisation wide diagnosis
Implementation of pilot in Kwa-Zulu Natal region
Established centers (Taxpayer Service; Assessment; Enforcement; Customs)
EVOLUTION OF SARS
Appointment of a new, representative management team
Provision of modernised infrastructure
Streamlined and standardised business processes – supported by new policies, procedures and skills
Provided a dedicated frontline environment for taxpayers
Focused, high visibility enforcement interventions addressing high risk industry sectors and taxpayers
SIYAKHA PROGRESS
Successful implementation in Kwa-Zulu Natal and Western Cape (CBD)Ongoing transformation in Western Cape and Gauteng 9 additional offices being converted to the Future mode of
operation.This platform has enabled us to identify further process improvements which are being implementedConcentration of assessment activities resulted in improved turnaround timesOver 2400 staff have been trained in service and functional expertiseTo date, over 3000 staff have either been appointed in new positions or absorbed in terms of the Siyakha protocol Employment Equity has been improved
To date more than 20 SARS locations (excise, tax and customs) have been improved
SARS LBC • Launch of SARS Large Business Center - 2 September ‘04
• The LBC Business Model:
Developing enhancedRelationships with our corporate taxpayers based on intimate knowledge derived fromindustry sector
specialization
Dedicated Sector Managers supported by Taxpayer Relationship Managers for each of the following sectors respectively:• Financial Services• Mining• Manufacturing• Information, Communication & Technology• Retail • Primary (Agriculture, Forestry Logging)• Construction• General & Diverse Holdings
LBC Service Model
Providing world-class operational excellence with one-stop - single point of entry for all tax types and effective Administration & Resolution processes
A Convenient one stop service
for cost effective filing and
processing of all tax
submissions, as well as the
efficient management of
accounts, registration of new
taxpayers or changes in
taxpayer status
Noteworthy achievementsConsistently exceeded revenue targets despite undergoing organisation wide transformationSuccessfully introduced challenging legislative changes eg. RBT, CGTShifted the compliance culture in SA through targeted, visible enforcementExpanded the business to take on new tax products eg. UIF and SDLMade initial strides in entrenching a service culture Provided dedicated service areas Established a SARS Service Monitoring Office Released a draft Taxpayer Charter which will entrench service
standards Introduced an online customer feedback system to gauge service
satisfaction Implemented dispute resolution procedures for speedier resolution
of administrative issues
AT A GLANCE…10 years of delivery
BEFORE
Low Revenue
Weak customs
Inefficient processes
Ineffective enforcement
Poor compliance
Poor technology
Low skills
AFTER
Significantly increased revenue collections
Visible and more efficient customs
More efficient, streamlined and integrated processes
Visible and more efficient enforcement
Increased compliance culture
Enhanced and stable technology platform
Enhanced focus on development of technical and management skills
A REALITY CHECKChange is ongoing
We’ve achieved a lot…but there are still many challenges that remain
Challenges we are facing
Revenue administration as a suitable response to the dualistic nature of the South African economy
• Widen the net to include both economies; reduce the tax gap
Building fiscal citizenship to ensure a climate of sustained compliance
Achieving a robust administrative machinery that supports revenue growth in a highly effective and efficient technology enabled organisation
Further transforming the organisational culture to reflect greater professionalism, service and integrity
THE NEXT WAVE OF TRANSFORMATION
A vision for 2010 Individuals Business SMEs and large corporates
Key shifts Inward administrative view to outward taxpayer view Reactive to proactive engagement Manual to automated
Compliance strategyInstitutional transformation
ANTICIPATED OUTCOMESSmarter SARS More efficient Electronically enabled
Visible SARS Touching all segments Tax officers in the field Increasing access to taxpaying community
Responsive SARS Better Service Swift detection and deterrence of non-compliance Learning organisation – leadership and technical capability
These outcomes translate into sustained compliance and delivery on revenue targets
RECIPE FOR OUR SUCCESS…
Overall fiscal reform – tax policy and tax administration changes in tandem
Political support of Minister of Finance
Administrative autonomy brings greater flexibility and control
Create a vision for the future
Transformational passionate leadership – actively driving change and instituting a new way
Create a critical mass of change drivers
Evolutionary change but revolutionary thinking – sustain the change. Implement change in manageable chunks
Willingness to engage with all stakeholders and across all functional areas of the business to achieve a holistic robust solution
Integrated process view and enhanced business knowledge
RECIPE FOR OUR SUCCESS…
Thank You
Culture change through leadership
Sizwe Nxasana
Chief Executive Officer
Telkom SA
CULTURE CHANGE THROUGH LEADERSHIP
Sizwe NxasanaChief Executive Officer: Telkom Delivered by Amanda Singleton
Culture change through leadership
Amanda Singleton
Group Executive: Corporate Communication
Telkom
Launching into the global arena
Challenges facing SA leaders
Addressing local transformation challenges
and also
Satisfying shareholders Attending to the diverseneeds of a complex network
of stakeholders
while
Telkom’s evolution
1991 Commercialisation
1996 Licensed (with a 5-year exclusivity) under new Telecoms Act
1997 Partial privatisation
2002 End of exclusivity
2003 IPO 2004 Competition
• To survive and prosper in a ever-changing environment,
adaptability is key
• SA industries need more than gradual adjustment to changing
circumstances; we need to shift paradigms
• The central challenge: to create and lead an adaptive enterprise
Why is corporate culture so important?
• No CEO can single-handedly make changes to an organisation’s genetic
code
• Lasting organisational transformation requires a change in people
– A fundamental shift in ‘the way we do things around here’
– Corporate culture change is a prerequisite for successful business
transformation
• Culture is important:
– because it powerfully influences the behaviour of employees
– because it is difficult to change and
– because its near invisibility makes it hard to address directly
Why is corporate culture so important?
The emergence of culture
Group Interaction
Shared Values
Norms of Behaviour
Positive Results
CULTURE
A strong corporate culture = values widely shared amongst employees
• Values provide the roadmap to the vision – shape the culture needed to realise the vision
• Values mould the behaviour – defines the corporate culture
• Corporate Culture should accommodate multi culturalism– Umbrella for diverse cultures, languages, backgrounds and
national norms
• Values have value only when: – they are commonly understood– they are unanimously subscribed to– they are lived by everyone
The value of common values
Telkom’s value system
• We value people and their diversity
• We are performance driven
• We are customer focused
• We create shareholder value
• We are a model corporate citizen
• We act with integrity in everything we do
com
munic
ati
on
com
munic
ati
on
com
munic
ati
on
“Vision”(to be)
Current situation“As is”
“Cult
ure
” (H
ow
to b
ehave a
long t
he w
ay)
“Str
ate
gy”
(W
hat
do w
e n
eed t
o f
ocu
s on)
The strategic fit
• Vision: – To be a world-class communication company
• Strategic Goal: – To invest in our employees
• Value: – We value our people and their diversity
• Behaviour needed: – No stereotyping, prejudice and discrimination in the workplace– Fair recruitment, an appreciation for the EE imperative – Making full use of the skills of all employees– Open communication on development needs– Regular discussions on performance and improvement areas– Coaching, mentoring and personal development – Creation of opportunities for personal growth– Retention of critical skills
A Telkom example
1. Articulate the company’s vision as a concise word picture describing what the organisation aspires to become– Keep it simple, motivational and realistic
2. Develop enterprise strategy as “what to focus on” in achieving the vision
3. Design a set of values
4. Identify behaviours needed from management and employees to execute strategy
5. Communicate all of this in coherent and compelling ways
6. Drive for total contextualisation down to an individual level– The role of every line manager is key
Changing corporate culture
Committed leadership and clearly defined corporate values distinguish major cultural changes that succeed, from those that fail.
The single most visible factor that distinguishes major cultural changes that succeed from those that fail is competent leadership at the top … .
Only with leadership does one get the boldness, the vision and the energy needed to create large and difficult changes …
John P. Kotter & James L. Heskett
Leadership is critical
• Chief sense makers for the organisation– Providing insights about the business and markets
• The ability to provide direction – defining a vision• The ability to bring vision to reality
– Creating strategy to close the gap between vision and current reality
• The skill to reconnect organisational life with organisational purpose – “Where are we going and why”; – “What is our company’s role in society”;– “What is the context and meaning of this change in strategic
direction”
What culture change demands of Executive Leadership
1. Conceptual Leadership
“Without vision, direction and a sense of purpose, it’s difficult to harness the energy,
passion, commitment, and perseverance needed to transform”
• Leadership is in the first place, PERSONAL
• Leadership is about truly living the company’s values
• Leadership is setting an example, being a role model
• Leadership is consistency between what is SAID and DONE.
What culture change demands of Executive Leadership
2. Personal Commitment
“One of the most important ways executives can demonstrate their commitment and
credibility comes through how they work within their own teams”
• Effective communication is the oxygen for new-breed leadership• Communication is not one-directional
– Engage strategically– Listen hard– Create an environment that allows candid feedback/ criticism
• Communication needs to be regular – In good times and bad – Never skip scheduled engagements
• Communication has to be open and honest– Own up: take personal responsibility for hard decisions– Resist the urge to spin – it always backfires
What culture change demands of Executive Leadership
3. Communication
“People need to hear directly from the leader”
The time has come . . .
For leaders to step forward and show real leadership
Questions?
TRANSFORMATION, SKILLS DEVELOPMENT & THE FOCUS ON DEVELOPING LEADERS OF TOMORROW: An emphasis on youth, women and people living with disabilities
Danisa BaloyiChairperson: National Skills Authority
The Past Inequality as a policy Lack of proper education Lack of properly trained teachers Lack of opportunity Lack of cohesion in development structure Skills gap Problems in economic growth and
development
50
Skills Development Transformation, Skills development and Empowerment
The Present
The list is the same except these: 10 years of democracy Policies of inclusion Programmes for re dress of inequalities Effort to eradicate poverty Equity laws Broad based BEE Act Employment Equity Act Skills development act 5 year of the NSDS51
The areas of concern Youth development Women empowerment People living with disabilities
52
Youth
Unemployment or under employment Lack of proper education Lack of life skills development Lack of positive outlook Lack of real targeted programmes
53
women
No real empowerment An “add on” syndrome Policies empowering – practice disempowering Lack of skills due to no real focus Lack of targeted programmes Urban and rural areas gap Lack equity Lack of real preparation
54
People living with disabilities
Almost forgotten Lack of focus on needs Lack of equity programmes Lack of targeted skills programmes Lack of access to opportunity “Add on” focus on group
55
What can be done
Targeted changes on NSDS changes 2005-2009 Focus on SETAs to effect real change Targeted skills development programmes Focus on women, youth and people living with
disabilities Target people where they are Publicity to reach all South Africans Conferences in all provinces (rotation basis) Seminars all year round
56
Ben VenterChairman: BANKSETA Council & Conference Session Chair
6 October 2004
09h15 – 10h00 Pravin Gordhan10h00 – 10h45 Sizwe Nxasana (by Amanda Singleton)10h45 – 11h15 Refreshments11h15 – 12h00 Danisa Baloyi12h00 – 12h45 Charles Okeahalam12h45 – 13h45 Lunch13h45 – 14h45 Ulrich Teichler14h45 – 15h30 Nicholas Biekpe15h30 – 16h00 Refreshments16h00 – 17h30 Peter Senge (Video Conference) 17h30 Cocktail Party
“EMPLOYABILITY” & “KEY QUALIFICATIONS”: European concepts and debates on skills development
Ulrich TeichlerDirector: Centre for Research on HigherEducation and Work, University of Kassel, Germany
Teichler, Employability
To get a job at all Job search and recruitment Smooth transition Employment success Competence of managing one’s own
career
Employability: The Employment Issues
Teichler, Employability
Match between field of study and occupation
The complex link between study and work assignment
The demand: transfer skills, work attitudes, values, social skills etc.
Employability:The Work Issues
Teichler, Employability
To many issues addressed To often: just getting a job Emphasis only on the „exchange value“ Biased critique of higher education
Instead: „The professional relevance“?
Employability:The Misleading Term
Teichler, Employability
Persistent variety amidst structural convergence of study programmes?
Or convergence of substance as consequence of structural convergence?
Curricula and Professions in Europe
Teichler, Employability
Data from graduates
1. To get valuable information for the development of the
university
2. To evaluate the relevance of
higher education
3. To contribute to the accreditation
process
4. To inform students, parents,
lecturers and administrators
Why Should we Conduct Graduate Surveys?
Teichler, Employability
InputStudents‘ bio
data, experiences,
motives
OutputKowledge,
skills,motivation,
grades
InputStudy conditions and provisions
ProcessTeaching and
learning
OutcomesTransition
employment,work,
service to society
Tracer Study/ Graduate Survey
A Common Model of Analysisin Higher Education
Teichler, Employability
Employed Seeking employment
Average income
Low income** Profess./ Managers
Techn./assoc. profess.
Clerks, workers, etc.
(%) (%) (1,000 Euro*) (%) (%) (%) (%)
Norway 87 1 35.4 2 46 53 1Sweden 83 1 29.9 17 / / /Finland 93 1 30.7 17 93 5 3United Kingdom 87 3 30.6 21 74 15 11The Netherlands 93 2 28.4 24 68 25 7Germany 87 2 38.3 9 83 12 5Austria 87 4 33.3 14 95 3 2France 69 7 24.7 44 66 24 10Spain 73 10 16.3 77 73 4 24Italy 79 5 20.5 63 61 30 9Total 84 4 30 25 72 20 7
Country Employment Income Occupational groups
* Arithmetic mean of annual gross income of full-time employed graduates; ** Less than 20,000 Euro annual gross income of full-time employed graduates; / Not asked in the questionnaire
CHEERS Graduate Survey 1999
Employment of Graduates About Four Years After Graduation in Ten European Countries (percent)
Teichler, Employability
Country Little use of knowledge
Wrong field/ HE not
necessary
Level of education
hardly adequate
Current work situation worse than expected
Dissatisfaction with current
job/work
Norway 5 3 3 7 4Sweden 12 7 / 22 11Finland 12 9 6 15 9United Kingdom 25 27 18 24 18The Netherlands 16 12 8 10 7Germany 23 15 16 17 12Austria 17 16 13 13 10France 37 26 22 24 14Spain 25 15 17 38 13Italy 21 14 22 30 18Total 19 14 14 19 11
/ Not asked in the questionnaireCHEERS Graduate Survey 1999
Perceived Limited Links between Study and Employment/Work and Job Satisfaction About Four Years after Graduation in Ten European Countries (percent)
Teichler, Employability
Percent explained
Work auto- nomy
Status and
career
Use of knowledge and skills
Social communi cation
Leisure time/
family
Job security/ routine work
Useful- ness for society
(R2)
Norway 0.29 0.12 0.23 0.11 0.04 0.08 -0.05 35,6Sweden 0.21 0.11 0.08 0.05 -0.04 -0.15 -0.05 11,1Finland 0.29 0.16 0.15 0.15 0.02 0.13 -0.03 35,6United Kingdom 0.25 0.21 0.16 0.16 0.04 0.01 0.00 36,5The Netherlands 0.34 0.07 0.12 0.16 0.02 -0.01 -0.01 29,4Germany 0.27 0.20 0.09 0.18 0.03 0.14 -0.05 33,6Austria 0.29 0.17 0.13 0.14 0.00 0.13 -0.01 33,8France 0.31 0.15 0.15 0.14 0.01 0.07 0.06 39,6Italy 0.29 0.16 0.18 0.06 -0.07 0.04 0.04 37,0Spain 0.18 0.12 0.22 0.16 -0.03 0.02 0.04 33,8
Country Aspects of professional situation
Explanation of the regression model: Dependent variable "job satisfaction" (Question G1: Altogether, to what extent are you satisfied with your current work? Scale of answers from 1 = ‘Very satisfied’ to 5 = ‘Very dissatisfied’); Seven independent index variables based on 19 items characterizing the professional situation (Question G3: "To what extent do the following characteristics of an occupation apply to your current professional situation?" Scale of answers from 1 = to a very high extent to 5 = not at all). Source: CHEERS Graduate Survey
Explanation of Job Satisfaction by Characteristics of Professional Situation in Ten European Countries(multiple regressions; standardized regression coefficients)
Teichler, Employability
Dimensions2.80 Leadership 2.20 Social competencies
2.46 Initiative 2.12 Loyalty, integrity
2.49 Assertiveness, decisiveness, persistence 2.20 Getting personally involve
2.61 Taking responsibilities, decision 2.28 Tolerance, appreciating of different poi
3.10 Leadership 2.36 General competencies
3.34 Negotiating 2.20 Written communication skill
2.47 Cognitive competencies 2.25 Adaptability
2.38 Analytical competencies 2.34 Broad general knowledge
2.42 Problem-solving ability 2.63 Cross-disciplinary thinking/knowledge
2.47 Reflective thinking, assessing one's own 2.56 Operativ competencies
2.61 Creativity 2.35 Working in a team
2.40 Personal competencies 2.37 Fitness for work
2.09 Power of concentration 2.97 Manual skill
2.34 Accuracy, attention to detail 2.44 Field related knowledge and skills
2.50 Working under pressure 2.25 Field-specific theoretical knowledge
2.69 Time management 2.63 Field-specific knowledge of methods
3.08 Organisational competencies 3.11 Special knowledge
2.89 Planning, co-ordinating and organising 3.08 Foreign language proficiency
3.00 Applying rules and regulations 3.14 Computer skills
3.22 Economic reasoning
3.23 Understanding complex social, organisati
Teichler, Employability
56
57
61
61
69
53
67
54
56
55
44
44
57
57
35
31
21
21
15
29
38
23
42
30
26
28
28
28
100 75 50 25 0 25 50 75 100
IT
ES
FR
AT
DE
NL
UK
FI
SE
NO
CZ
EU
JP
Total
Co
un
try
Work Requirements Competencies At Time of Graduation
Percent of Graduates
Source: CHEERS Graduate Survey
Competencies and Job Requirements: Leadership
Teichler, Employability
Source: CHEERS Graduate Survey
87
86
85
90
89
90
80
89
88
88
80
80
82
86
47
51
52
58
59
64
65
59
75
64
41
58
39
56
100 75 50 25 0 25 50 75 100
IT
ES
FR
AT
DE
NL
UK
FI
SE
NO
CZ
EU
JP
Total
Co
un
try
Work Requirements Competencies At Time of Graduation
Percent of Graduates
Competencies and Job Requirements: Problem-solving Ability
Teichler, Employability
Often viewed in a negative light: Process of transition: more complex and
protracted Fields of study and employment areas:
partial mismatch Educational attainment and occupational
status: “underemployment” Employment conditions: “flexible“ - insecure
Major Past Changes of Graduate Employment and Work
Teichler, Employability
Def No diff
Surplus
Total
E1a-b Planning, co-ordinating and organising
64 28 7 100
E1a-b Negotiating 64 27 9 100
E1a-b Computer skills 58 31 11 100
E1a-b Time management 58 34 8 100
E1a-b Taking responsibilities, decision 58 32 9 100
E1a-b Problem-solving ability 56 36 8 100
E1a-b Working under pressure 55 35 10 100
E1a-b Leadership 54 32 14 100
E1a-b Economic reasoning 53 33 14 100
E1a-b Oral communication skill 53 38 9 100
E1a-b Applying rules and regulations 51 38 12 100
Competencies and Job Requirements (1)
Teichler, Employability
Competencies and Job Requirements (2)Def No diff Surplus Total
E1a-b Initiative 51 37 11 100
E1a-b Assertiveness, decisiveness, persistence
51 37 12 100
E1a-b Documenting ideas and information 50 36 14 100
E1a-b Understanding complex social, organisational and technical systems
47 39 14 100
E1a-b Working in a team 47 42 11 100
E1a-b Accuracy, attention to detail 46 42 13 100
E1a-b Reflective thinking, assessing one's own work
45 42 14 100
E1a-b Creativity 43 39 18 100
E1a-b Field-specific knowledge of methods 41 36 23 100
E1a-b Working independently 41 47 12 100
E1a-b Analytical competencies 40 44 16 100
E1a-b Adaptability 40 46 13 100
E1a-b Cross-disciplinary thinking/knowledge 38 43 20 100
E1a-b Written communication skill 38 43 19 100
Teichler, Employability
Competencies and Job Requirements (3)
Def No diff Surplus Total
E1a-b Tolerance, appreciating of different points of view
38 44 18 100
E1a-b Fitness for work 37 48 15 100
E1a-b Getting personally involve 37 46 17 100
E1a-b Critical thinking 35 44 21 100
E1a-b Loyalty, integrity 32 52 16 100
E1a-b Field-specific theoretical knowledge
31 36 33 100
E1a-b Power of concentration 31 50 19 100
E1a-b Broad general knowledge 29 45 26 100
E1a-b Foreign language proficiency 28 38 34 100
E1a-b Manual skill 25 48 26 100
E1a-b Learning abilities 23 51 26 100
Teichler, Employability
Deficits of Competencies:Problem-solving Ability
1 Educ. 2 Hum. 3 Soc.Sc
4 Law 5 Nat.Sc
6 Math.
7 Engin.
8 Med.Sc
Total
IT 51 52 62 63 48 61 63 62 60
ES 44 47 56 73 57 46 54 55 55
DE 53 44 58 47 44 48 63 58 55
NL 47 45 54 56 44 51 46 55 51
UK 39 44 47 46 43 45 42 50 44
NO 63 38 52 41 49 43 48 62 54
JP 74 69 70 77 75 64 77 79 73
Teichler, Employability
Decline in agriculture and manufacturing, increase in services
Shrinkage of public sector, growth of private sector Decline of employment in large companies Increase of “informal“ employment Rapid pace of chance of job structure and requirements Decline of job-stability lncrease in unemployment Polarisation or flattening of hierarchies? Computer literacy and indepth information science
knowledge lncrease of jobs requiring high level of knowledge
Current Trends of Graduate Employment and Work
Teichler, Employability
Despite the variety of fields of studies, economic sectors and countries, the variety of experts‘ views, the uncertainty of future developments and a broad range of possible options for the actors, most experts agree in stating similar demands for change in HE vis-a-vis employment:
Increasing professional relevance More practice-oriented study Learning to learn (preparation for lifelong learning) Learning working techniques (problem-solving, working under
pressure etc.) Emphasis on socio-communicative skills Transferable skills Computer skills Preparation for European/international mobility (academic,
linguistic, cultural) Training for self-management of career and life Support for job search and transition to employment
Common Demands for Curricular Change
Teichler, Employability
1. General vs. ProfessionalThere is a growing need for general, flexible and socio communicative competencies, but cognitive, specialized preparation for professional work does not loose importance
2. Professionally Relevant vs. Open Linkssystem are most uncertain HE is expected to deliver more relevant preparation for employment at a time when the links between fields and study and occupational area weakens, work tasks change rapidly and prediction of the future of the employment
3. Diversification vs. Transparency and RecognitionThe trends toward horizontal and vertical diversification is likely to reduce transparency and recognition both within HE and regarding the links between HE and the employment system, but demand for transparency and recognition is growing — as a counterweight to this trend and due to Europeanisation/internationalisation/globalisation
Three Contradictions in the Relationshipsbetween HE and Employment
Teichler, Employability
The students ought to:
Be prepared to be specialist, generalist as well as socially and communicatively skilled
Be informed about labour market and graduate work
Be confronted to the tensions between academic approaches and professional problem-solving
Understand the social conditions of work and career
Be able to take initiative vis-à-vis the world of work
Changing Educational Objectives
EDUCATION AND TRANING AS NECESSARY TOOLS FOR ECONOMIC EMPOWERMENT IN AFRICA
Professor Nicholas BiekpeDirector: Africa Centre for Investment Analysis, University of Stellenbosch Business School
KNOWLEDGE IS POWER- Still true?
• ..Ignorance is very expensive;• …Little knowledge is dangerous;• …Businesses can’t survive without the
appropriate skills;• Efficient governments rely on “good
knowledge” and information….• All of the above rely on good education
and training!
History of Education in Africa: Pre-independent Africa
• African Empires and Education– Ghana Empire– Mali Empire– Songhai Empire– The Great Zimbabwe
• Post Empire Education- European education;E.g. British, French, Belgian & German
• Post Independent Education- Case of Ghana and Zimbabwe
Link between Education and Economic Development: Post Independent Africa
• Cases:
• Ghana during Dr. Kwame Nkrumah
• Mauritius- Education as top priority;
• Zimbabwe- from 1981-1990
• Current investment on education by Botswana
Links between Education and Economic Development: Other
Countries
• South Korea;
• Malaysia- Empowerment of the Malays;
• Hong Kong- British Approach to empowering Hong Kong Chinese
• Singapore- Compulsory education system
Education and national capacity to deliver
Smart economy as a function of education & training
Economic burden of illiteracy
• Increase welfare cost;
• Link between illiteracy and crime;
• Link between education and industrial capacity and growth;
• Link between education and health;
• Link between education and tax burden;
Globalisation and need for global education and training
• Global competition requires regular “educational and training upgrades”;
• Increasingly standardised global standard education- e.g. – Business ethics;– Corporate governance;– Science and technology– Economic and political systems
• Link between FDI flow and skill-base
Dual Economies: A result of lack of education?;
• The economies of Sandton versus Alexandra Township;
• Tax implication of dual economies;• Crime implication of dual economies;• Output implication of dual economies;• Overall cost implication of dual economies
– Overall tax burden on the rich;– Other welfare cost– Dilution of wealth in the Sandton-Alexandra area
A case of South Africa
• Cost of not empowering the historically disadvantaged;– Increase in crime;– Dilution of wealth of the wealthy;– Health issues- HIV/AID and poverty related diseases;– Gradual decline in economic output growth;– Further reduction in FDI flow;– Under-utilisation of both natural and human resources
• Need to provide proper education and training women and the youth ;
A case of the African Union and NEPAD
• Capacity to implement the NEPAD initiatives depends on proper education and training;
• Meeting the goals of the millennium Development Goals will depend on the level of education and training of Africans;
• To tackle youth unemployment in Africa will require the provision of relevant education and training;
• To address gender inequality will require innovative education and training models that “actually helps empower” women.
• Africa need projects similar to the South African SETAs
Some recommendations
• Free education for all children in Africa;• Relevant adult education programs aimed at
empowering Africans;• Standardising of the education system in Africa;• Significant percentage (at least 40%) of national
budgets should go into education;• Establishment of an African fund for education.
Money from the fund can be used to train Africans in areas ;
• Africa-wide SETA for the Continent
Empowerment for the less empowered should be a process of continuous education through knowledge transfer and
should have the ability to help ensure self-reliance
More focus on rural areas and townships More companies must be involved Removal of barriers to entry in SETAs Focus on development of service providers Equity measures on providers Real training for empowerment Removal of “silo” approach Real targets for unemployed youth Real enterprise development Real skills development for growth and
development Real programme offerings that are empowering Focus on uniformity of requirements Real education on NSDS requirements 96
Conclusion
Need to work together Focus on results Focus of change Focus on inclusion Focus on equity targets Focus on review of last five years Development of new programmes that will
empower all South Africans including these HDI’s Improving the image of SETAs Embarking on skills development training for all97
TRANSFORMATION IN THE FINANCIAL SERVICES SECTOR: Impact on economic growth in South Africa
Dr. Charles OkeahalamManaging DirectorAfrica Growth Holdings
Transformation in the financial services sector: Impact on economic growth in South Africa
Presentation at the 2nd BANKSETA International Conference
Dr. C. Charles Okeahalam, Managing Director, AGH, Johannesburg, South Africa
Venue: The Forum / The Campus, Wanderers Building, 57 Sloane Street, Bryanston
Johannesburg.
Date: 6th October, 2004.
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This presentation focuses on the following:
1. Introduction
2. An overview of SA’s financial services sector.
3. Aims & Objectives of transformation in SA’s financial services sector
4. An evaluation of recent transformation
5. Expected effects of transformation on the the financial sector
6. Challenges to transformation
7. Summary
8. Policy recommendations
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2. An overview of SA’s financial services sector
SA’s financial sector is the most highly sophisticated and technologically advanced financial market in Africa eg. JSE and BESA.
Banking sector – ‘Four pillars’: Nedcor, ABSA, First National Bank and Standard Bank
Entry by Barclays Bank - what are the implications?
Possibly greater competition – reduced margins - commitment to transformation
Key regulators of SA’s financial services sector are namely: SARB - Registrar of Banks, National Treasury, Financial Services Board (FSB).
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2. An overview of SA’s financial services sector continued
The financial sector’s share of national output has increased from 12.4% in 1991 to 19.6% in 2003
The financial and business services sector had the highest labour productivity index of all economic sectors during 1999-2001 and 2003
The JSE is the 17th largest stock exchange in the world
SA is gradually becoming the financial capital of Africa.
SA’s economic sectors are dependent on the financial sector for investment capital and banking and insurance services thus making the financial services sector central to economic growth.
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2. An overview of SA’s financial services sector continued
Focus on the Banking sector:
The banking sector had assets totaling R1,349 billion as at June 2004
Banking sector is highly concentrated with ‘four pillars’: Nedcor, ABSA, First National Bank and Standard Bank
Retail and wholesale banking products such as deposit-taking, provision of credit and investment banking are essential to economic growth
Banks provide liquidity and mobilize savings to profitable investment projects
Banks diversify financial and investment risks through basic and innovative banking services and products
Accordingly - A key role of financial intermediaries is to reduce costs of conducting business and enhance the efficiency of financial intermediation
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3. Objectives of transformation in SA’s financial services sector
The financial sector charter is expected to have a major impact on the financial services sector in various ways:
Human resource development – training Gender balance and sensitivity Procurement policies - BEE Enterprise development Increased access to financial services Increased empowerment financing – broad based?
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3. Objectives of transformation in SA’s financial services sector continued
Increased shareholder activism, ownership and control in the financial sector
Alter the regulatory structure and address regulatory issues
REAL - corporate social investment
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Objectives of transformation contd.
Transformation involves a business process re-engineering of financial services sector staff, consumers, stakeholders
and MINDSETS to:
Provide services relevant to the financial service needs of consumers Provide a service-based operational culture Reduce costs of financial services Increase competition in the financial services sector
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4. Recent transformation in SA’s financial services sector cont. Legislation - Changes in industry regulations such as the Financial Advisory and
Intermediary Act (FAIS Act) and Financial Intelligence Centre Act (FICA) aim to curb illegal financial transactions and increase confidence in SA’s financial markets
Relaxation of foreign exchange controls foster international investments and transactions via portfolio and foreign direct investments (Africa / non-Africa)
Formulation and implementation of the financial sector charter.
Increased use of technology in providing financial services such as mobile and internet banking
Entry of foreign financial services firms such as Barclays Bank – what are the implications for transformation?
Key question? Is BEE in the Financial Services Sector Transformation? YES and NO Depends on the nature of the deal.
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5. Expected effects of transformation on the financial sector Increase competition and reduced costs
Increased variety of products with the entry of foreign banks (such as Barclays Bank) and the implementation of appropriate financial sector regulation
Enhance delivery of the objectives of financial services firms
Increase financial intermediation at the lower end of the market eg. the success of CAPITEC.
Increase market efficiency and output
An increased understanding of the market environment particularly for low income households- particularly PDI
Accrual of ownership to a broader base of PDI shareholders
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6. Challenges to transformation
Oligopolistic and concentrated market structure in the financial services sector
Limited incentives to enter certain markets such as low envisaged profit opportunities at the lower end of the market
Lack of adequate consumer knowledge
Large number of un-banked: over 13 million adults are un-banked in SA
Difficulty in implementing financial sector charter and other regulations
Shortage of financial market specialists and expertise
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7. Summary
SA’s financial services sector is central to domestic growth
Recent transformation will increase output and reduce cost
Certain market segments are under-developed especially the lower end of the market
There is still a need for more transformation in the financial sector such as increased competition in different sub-markets
Implementation of the financial sector charter will promote a welfare efficient banking and financial sector
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8. Policy recommendations:
Change of mindset – perhaps entry by foreign players will enhance this – lets see.
Effective monitoring of the implementation of formulated regulations and charters.
Effective implementation of financial sector charter through public private partnerships and cooperation
Foster SMMEs in the financial services sector
Increasing access to education of financial services consumers
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BUILDING AN INNOVATIVE YET RESPONSIBLE CULTURE
Peter SengeMassachusetts Institute of TechnologySociety of Organizational Learning (SOL)
Facilitator: John Perlman, Presenter: AM Live, SAFM 104-107