Michael Ratcliffe is a respected figure in local and global wine industries. He was nominated for the USA Wine Star Award for Global Innovator of the Year in 2015 and 2017. Michael is also the founding trustee of the fundraiser Cape Wine Auction, and founder of Rootstock – organisations heavily invested in education. He is a founding partner of the joint US/South African luxury wine venture Vilafonté established in 2002, and in 2018 was elected Chairman of Stellenbosch Wine Routes.
Trevor Manuel gives Ryland Fisher an earnest interview on the struggle years, the Zuma era and the future as he sees it.
As the baby boomer generation enters the end phase of their working lives, the newest generation of workers, millennials, are entering the working world in vast numbers. This new generation, born between 1980 and 2000, are very different to their ‘generation X’ and ‘baby boomer’ predecessors; they have different career expectations and are motivated by different things.
As elements of the Fourth Industrial Revolution (4IR) continue to permeate more areas of our lives through global hyperconnectivity, digitisation is shaping the way business is conducted while bringing new developments in industry and changes in how services and products are offered.
South Africa’s nascent gin culture has seen exponential growth over the last couple of years, evident from the variety of gin bars and brands (both local and international) to be found, in Cape Town specifically. We unpack some of the trends in the industry.
By Anton Pretorius
By Pieter Scholtz, ActionCOACH SA Director
2018 was most definitely the year in which AI and Machine Learning (ML) took the lion’s share of technology media headlines. Like social media, virtual reality, drones, and cloud services before them, the impending doom of AI robots taking our jobs drew conference audiences, filled social feeds and consumed traditional media channels.
By Prof. Adré Schreuder, CVO of Consulta
In a disruptive era, we often only focus on game-changing technologies, but the ripple effect of those disruptive technologies has started to blur the lines of how we live, work and play. Direct from the Lifestyle pages of our upcoming tenth-anniversary collector’s edition, here’s Dion Chang on five mega-trends that will change the way you live (and think) in the next five years.
The concept of “transient ownership” – the fact that you don’t need to own something in order to use it – is permeating into an older generation’s mindset, but it is already firmly entrenched with millennials as well as Gen Z’s. Ride sharing services like Uber, have already convinced some people to ditch car ownership completely, or persuaded couples to only invest in one car. The domino effect of the sharing economy, on related industries like insurance, car rental and parking is already raising alarms, but it is also creating new, on-demand delivery services and logistics opportunities, specifically in food retail.
2.The #FreeFrom Movement
We’re increasingly ordering-in our food (cooked or uncooked), but what we’re eating is changing. Fast. The #FreeFrom movement – ie; free from gluten, free from lactose, etc – has spawned a global shift towards plant-based diets. It is a dual cause driven by allergies, as well as sustainability issues, and the vanguard of the movement is a younger generation. Gen Z in particular.
3.Gen Z (people born between the mid-1990s and early 2000s)
If you thought millennials were difficult – as customers, as well as a workforce – then brace yourselves. The first generation of digital natives are coming of age. They are a post-9/11 and a post-Great Recession generation who have been handed a broken system: environmentally, economically and politically. As such, they are guided by a strong sense of social justice and this impacts on their brand loyalty, as well as who they want to work for (if indeed they take on traditional careers – see trend 5).
4.Value Based Business
A global survey by Havas Worldwide found that 68% of respondents believe that corporate business now bears equal responsibility, with governments, to drive positive social change. Political strategist Doug Hattaway elaborates: “More and more businesses are being forced to become value driven, rather than sales driven.” It’s no longer just about selling a product, it’s about what that company stands for. For businesses previously fixated on the bottom line and keeping shareholders happy, this is a deeply uncomfortable shift, but a crucial one they are being forced to make.”
5.The GIG economy
The GIG economy, spawned in conjunction with the sharing economy, is a foreign concept for baby boomers, but a logical alternative when you consider the trajectory of the future of work and new business models. Technology has made the concept of 9-to-5, 40-hour work week a quaint relic of the 20th century. Digital nomads (aka remote workers) are now being referred to as “the new elite”. They are “wealthy” in terms of time and place (work anywhere, anytime), but not material goods. They don’t need them. The sharing economy has that box ticked.
Dion Chang is the founder of Flux Trends. For more information on trends as business strategy,
2018 Has proved a big year for Old Mutual’s Wealth and Investment cluster. In this exclusive interview we take a look back – and a look ahead – with Managing Director David Macready.
In May, Old Mutual Investment Group was named not just South Africa’s Best Managed Company in Financial Services but the country’s Best Managed Company of the Year,
I was enormously proud when accepting this trophy, because I saw it as validation of the quality we have built and the talent and intellectual property that contribute to it being such a great business to be part of. It is this talent that has enabled us to build a world-class investment company that sustainably delivers investment performance to our clients.
The award confirmed the success of our multi-boutique asset manager structure, which gives our investment professionals the independence to invest with focus and conviction. Our structure ultimately ensures that their interests are aligned with those of our clients given that they have ownership stakes in their boutiques and that they are invested alongside their clients in the funds that they manage. Together, these various elements have positioned Old Mutual Investment Group as the leading asset manager in South Africa it is today, as recognised by the two awards we received from Top 500.
Then, in June, Old Mutual Limited (the holding company of Old Mutual Investment Group), historically relisted on the Johannesburg Stock Exchange. How did this ‘African homecoming’
It’s been a hugely momentous time for us and another reason to feel proud. The JSE listing of Old Mutual Limited represented the culmination of a lot of hard work and dedication to the end goal of bringing Old Mutual, a South African household name, back home. The listing also firmly supports one of Old Mutual Investment Group’s missions: to invest sustainably for a future that matters across Africa. We already do this by investing substantially in infrastructure, housing, schools, education and agriculture in South Africa and across the African continent but, with the Group’s primary focus now firmly on Africa, we will be able to put even more energy and passion behind this.
Would you concur that the listing indicated top-level confidence at Old Mutual, in both South African and southern African economic prospects?
Most definitely. The timing of the listing couldn’t have been better given the recent boost in confidence from SA’s new leadership and a refocus on Investment growth within the economy. However, while the renewed confidence has given the economy a reprieve, albeit short-lived, substantial structural reform is still needed if we are to materially improve our economic prospects. Within this context Old Mutual and Old Mutual Investment Group are committed to partnering with Government and other stakeholders in investing towards the greater good of South Africa and Africa more broadly.
Going back to the Group’s Top 500 Awards accolades, how important is it to recognise and promote ethical and astute management, specifically in the South African context?
The role that asset managers play in South Africa’s economic future should be reflected in the way in which they put the investment capital of their clients to work. Responsible investment is a crucial priority for the country, particularly against the backdrop of our current economic environment and the ethical challenges it has faced over the last decade. As asset managers we invest for the long-term and constantly seek sustainable investment opportunities that take Environmental, Social and Governance (ESG) considerations into account.
When it comes to investment in SA companies, corporate governance is key. We believe it is important to understand the ethos of what really drives a company, how employees are rewarded and how they are measured. The cases we’ve seen in the market of late have been stark reminders of the need to apply not only an investment lens when considering investment opportunities, but also the principles of responsible investing.
While delivering market-beating returns for its clients, how does Old Mutual Investment Group benefit the communities in which it invests?
We pride ourselves in being leaders in responsible investment, with the aim of generating sustainable market-beating returns for our clients over the long term. Old Mutual Investment Group has invested over R20 billion to address gaps in social infrastructure through affordable housing and quality education. We believe in the need to invest with the aim of making a significant impact for the broader national community and we have seen some powerful success stories in this regard.
Our private equity involvement in toll roads, has created close to 1 000 jobs, for example, and we are exceptionally proud of initiatives such as the Early Childhood Development Programme, driven by Cookhouse, an investment in the Old Mutual IDEAS Fund, which aims to provide quality child care and access to education for children between the ages of 0 and 6 years among Eastern Cape communities.
Looking ahead now, give us a glimpse into the vision for the next five-ten years, at Old Mutual Investment Group?We see enormous growth potential ahead for this business, particularly given our investment performance momentum, client-friendly investment platforms and full range of listed and unlisted investment solutions. Our growth and market share gains are particularly evident in the retail space, as well as the unlisted alternative investments, multi-asset and fixed income arenas.
Ultimately, we are backed by a trusted brand, a significant balance sheet and key distribution strength, which are all key attributes for being successful. Our business is well positioned as a growth lever for the newly listed Old Mutual Limited as we continue to gain market share in pivotal market areas and we look forward to seeing where the future takes us.
Let’s end off with your personal management philosophy.
In my experience, there are three critical components that underpin successful leadership or management: vision, belief and passion. These have been the common characteristics of history’s greatest leaders and are relevant to today’s leadership from government, to labour, to business.
Truly remarkable leadership should demonstrate the ability to see the bigger picture, the resolute belief in your capacity to steer the ship and, ultimately, the passion that creates a sense that you are part of something bigger than yourself.
Effective leadership also means connecting and identifying with those that you lead and this should be built on reciprocal trust. Every leader should earn the conviction of those they lead that they have the team’s best interests at heart and that they genuinely believe in your ability to deliver excellence.
All boats rise with a tide; leadership is only really challenged when the tide goes out. Leadership takes courage, the courage to move forward and make the hard, but necessary decisions. Leaders should constantly change the game and to do this they have to learn, unlearn and relearn.
True leaders should therefore have a strong awareness of self and others in order to make impactful decisions.
Visit Old Mutual Investment Group.
How does South Africa research and rank its vaunted Top 500 best-managed companies every year?
This year, the top 5 South African companies across 100 sectors, from Coal to Business Colleges, will once again be listed
in the index of our eagerly-anticipated tenth anniversary collector’s edition (a brief overview here), set to be read and referenced by 10 000+ key decision makers in business and government, throughout the 2019 financial year.
What leads to a company being placed first in its sector?
The qualification is strictly research-based, using objective criteria designed in conjunction with UCT’s Development Policy Research Unit (DPRU), against which roughly 2 000 prominent companies are measured every year. Morne Oosthuizen, DPRU Deputy Director, explains that in order to place top of their sector, companies must excel in three key spheres, namely financial performance, empowerment, and policy and accreditation.
Financial performance speaks to the nature of top companies being large, growing and productive institutions; leaders by virtue of their size and dynamism. It is also measured by four indicators: turnover, rate of turnover growth, rand turnover growth and turnover per employee.
Size is both an indicator and an outcome of whether or not a company is a top company.
Turnover is used to proxy company size and this indicator has large weight within the measure. The dynamism of top companies is reflected in their ability to expand and grow, and so two indicators are included – one relative, one absolute – of growth in the score sheet. The former is the rate of turnover growth over the year – since top companies are faster growing – while the latter is the rand value of that turnover growth. Absolute turnover growth is included to account for the fact that top companies’ growth should make a large contribution to increased total output. These two indicators have a medium weight within the scoring system. Top companies are more productive than other companies and the final performance indicator, turnover per employee, which has a medium weight, speaks to this characteristic.
Delving deeper, our researchers assess how companies promote equity and social transformation. Top companies are committed to fulfilling this role, and this commitment is measured using six criteria. Two focus on companies’ commitment to the goal of transformation as demonstrated in their employment profiles, namely the shares of employment accounted for by female employees and by black employees respectively.
Top companies, however, go further than just employment and are demonstrably committed to greater diversity at the level of management and control. The proportions of black and female executive and non-executive directors are evaluated to complete scoring for this sphere.
Wider afield, top companies are involved within communities and are committed to improving the universal quality of life for the society they operate in. This sphere of policy and accreditation accounts for the remainder of the total score. In gauging companies’ engagement and involvement in communities, their total spend on corporate social investment activities relative to net profit is measured. Companies are also judged on the existence of written policies regarding employment equity, skills development, health and safety, HIV/Aids, and the environment. The final criterion within this sphere, commitment to quality, is proxied by the number of SABS-approved accreditations held by companies.
For more details on our research, e-mail Head of Research Sandra.Bock@Topco.co.za.