Page 4 - Buzz Magazine

FROM DAVID’S DESK
A year in review
We are already at the end of our rst year as Saint-Gobain’s Delegation for this expansive continent!
As is always the case, there were highs and lows. The local and global economies have not been kind, and yet
the opportunities for business in Sub- Saharan Africa abound. Our footprint across the continent has increased substantially from a focus on southern Africa in 2005 to a current presence in more than 20 countries.
Despite all the political and economic challenges and the slowdown in the construction sector, Saint-Gobain SSA showed a pro t in September for the rst time in a long while. The last quarter of the year is traditionally our best one, so this year should end well. The trick will be to keep up the momentum in 2017, especially in the rst quarter.
We completed a customer survey this year (article on page 9) and it’s quite obvious that we do not have su cient traction. Currently, we deliver on three
of our customers’ most important needs – quality, price and technical expertise.
But when it comes to delivery, we are seriously lacking. This will be a major focus area in 2017.
I’m very proud of the work that
is being done on our collaboration platforms. This is a huge step in the right direction and we will see the bene ts
for many years to come. Thank you to each and every person who takes this seriously (updates on pages 5-8).
Compliance or de ance?
If there’s one thing I’ve learnt this year, it’s that people in Africa are not good at following the rules, in business and society. This will have to change if we expect continued investment from the Group.
There are six essential business controls and we are lacking in most of them:
1. Sales
2. Inventory
3. Purchasing
4. Payroll
5. Finance and treasury
6. Accounts and xed assets
Whatever your role in the business, please take responsibility to ensure that you follow the prescribed processes to comply with our policies and procedures. Please get training, if necessary.
Business performance
All our South African businesses are performing well below the Group (minimum) target of 5% return on sales.
Gyproc is doing better than before, but is not growing quickly enough. It’s good to see the improvements in their plants.
Isover had a poor start to the year because of break-downs, but has broken all records during the second half of
2016. If they can take that and annualise it, they will win back market share. Market penetration is their biggest opportunity.
Weber’s performance is not good enough and they need work in areas such as sales engagement, factory e ciencies, purchasing and freight costs to improve sharply in 2017. The good news is that they could break even next year if the team pulls all these issues together with commitment and urgency.
Norton has had service issues, but, for the rst time, they should make money next year. The newly appointed Business Unit Manager, Tommie Smit, certainly has his work cut out for him.
PAM has done better this year and there are great opportunities for them in the market. Although they are dependent on big projects, they will grow quicker when they’re better established in distribution.
During the past few months Besaans has embarked on a restructuring process to streamline the business according to current operational requirements.
Looking ahead
Our biggest aim is to meet budget. It’s a huge distraction every time we have to explain to Paris why we’re behind budget. We lose valuable time that could have been spent on business improvement.
Two more challenges are to be innovative enough across the continent to grow the business, and to appoint more people with the necessary skills to help build our ‘capable organisation’.
I have con dence that we can succeed at this. We certainly have the potential.
I appreciate all employees who take their work seriously – the ones who go the extra mile, who support colleagues and customers alike. Together we will make 2017 a year for the record books. w
I’m very proud of the work that is being done on our collaboration platforms. This is a huge step in the right direction and we will see the bene ts for many years to come.
4 | BUZZ | SUMMER 2016