Changing perceptions of BEE

Changing Perceptions of BEE
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The recent merger between two black accounting firms, SizweNtsaluba VSP and Gobodo Inc. is an illustration of economic transformation that goes way beyond BEE as currently conceived. In itself it redefines the accounting market which has up until now been dominated by the “big four”. The merged entity, to be known as SizweNtsaluba & Gobodo, will boast a staff complement of more than 800 and annual fees of more than R400m, making it the fifth largest accounting firm in the country. This merger is important in that it may mark the beginning of a change in perception about BEE. Luc de Brabandere in his book, “the Forgotten Half of Change” reflects on the French saying “Plus ça change, plus c’est la même chose” - it sounds better in French but means “the more something changes, the more it becomes the same!” He is referring to “perception” which he argues is the 2nd vital component of change, the 1st being the reality of the change itself. Different people respond to change depending on their viewpoint. For example if in the early 19th Century a person standing on a cliff saw a sailing ship with a funnel they might have considered the advantage of having a steam engine if the wind failed. Some years later after having seen dozens of steam ships the same vessel might be seen as having the small advantage of being able to use the wind if the engine failed. Another example might be the attitude of a student towards the study of French, before he meets a stunning French girl. The 2nd change – that of perception of the possibilities of the language in the new relationship completely redefines the actuality of learning the grammar and pronunciation. The big difference between a change in reality and a change in perception is that a change in perception can take an instant whereas the reality of change grinds on at its own pace. A change in reality requires action whereas a change in perception requires thinking. But for true change to take place, both these changes are required – the actuality and the perception. The media coverage of BEE, which so affects our perception,
centres around the reality of such subjects as the % of black ownership or the unwinding of BEE transactions, the ineffectiveness of the BEE Codes of Good Practice in addressing mass unemployment and poverty and the enrichment of the few who are politically connected. What is rarely touched on is how we and the outside world view transformation or indeed what transformation really is or could be. It is usually seen as a way of distributing the wealth of the nation more broadly (under the euphemism of sustainability – or avoidance of revolution) and rarely if ever is represented as the process whereby South Africans of all cultures and races join together to form winning teams? Public perception is that BEE is a method of enriching ANC “fat cats”! The idea that a South African rainbow company has unique advantages is rarely considered. Is SizweNtsaluba & Gobodo a transformation success story or is it just another culturally narrow organisation (albeit primarily black) that is likely to miss the advantages of a truly diverse and representative South African organisation? I raise these issues as a BEE practitioner who very rarely meets anyone who is truly passionate or even vaguely excited about BEE. And this is because the perception of transformation is generally negative and backward looking. Few
see any real advantage in a truly representative South African organisation that is able to out-manoeuvre equivalently sized rivals from Europe, China or the USA because it is better equipped to comprehend the multi-cultural and fast changing international market in which it operates. Transformation has been labelled “Black” Economic Empowerment” whereas a more embracive and forward looking idea such as “Team SA Winning Together” (the recent World Cup success being an emblem) could modify perceptions with a more positive acronym perhaps suggesting a concept such as SA Inc. or Team SA. Luc de Brabandere tells us that “the process of change in perception is discontinuous and is fuelled by questions, surprises and strange and incomplete ideas”. It is human to hold onto the certainties of the past but we in South Africa don’t have the time - the pace of change on every front is so great. For example how does the current concept of BEE fit in with South Africa being part of the BRICS group of nations and could we present it in a positive light to these other four emerging giants. And if we are a model of democracy in Africa, a model that that so many are dying for in North Africa, how does BEE and democracy intersect and how does it benefit the model?

If anyone wishes to test the relevance of BEE to the segments where transformation is a reality, take a look at the Taxi Sub-Sector B-BBEE Charter – it epitomises a lack of vision and out-dated perceptions about the new South Africa that we all saw so clearly for an instant during the 2010 World Cup! I must end by suggesting that SizweNtsaluba & Gobodo probably does not see
itself so much as a BEE company but more as a successful company that can take on the best of their rivals because they are a winning team. We need markers in the development of a new perception about South African rainbow companies that disturb past stereotypes. Let’s find a replacement for BEE that expresses a more modern South African ideal and that leads to a future that we can all believe in and perhaps a Code of Good Practice that companies such as SizweNtsaluba & Gobodo would feel truly proud and challenging to measure themselves against.
Alasdair Yuill