Stakeholder relations
Being a highly diversified group, Altron and its associate and subsidiary companies are dependant on the support of wide-ranging stakeholder groups for the sustained growth of its businesses. Our engagement with key stakeholders includes a number of formal and informal interactions, some of which are described below.
Engagement with the investment community
Altron has a proactive investor relations (IR) programme which is discussed in detail Stakeholder relations in the corporate governance report on page 127. It includes personal interaction between senior management and the investment community, annual site visits to our subsidiary companies where presentations are delivered to analysts and fund managers by managing directors of operations throughout the group, bi-annual roadshows to discuss half-year and yearend results with investors, and regular oneon- one meetings are held with analysts by our chief financial officer in order to assist analysts with models and forecasts. In addition, chairman Dr Bill Venter has for the past two years addressed a letter to each and every shareholder inviting them to attend the AGM. During the year under review, Altron also conducted independent research into analyst perceptions of the group, which will be addressed in its strategy as appropriate.
Memberships of industry and business associations
The Altron group companies belong to a wide range of industry and business organisations in order to keep abreast of international best practice and to network effectively.
Industry-specific associations in which we participate include the South African Chamber of Commerce (SACOB) and Proudly South African. Throughout our operations there exists a variety of affiliations to industry and sector organisations, for instance, ABB Powertech is a member of Steel and Engineering Industries Federation of South Africa (SEIFSA), while Aberdare is a member of the Association of Electrical Cable Manufacturers of South Africa (AECMSA). Aberdare’s Ian Millar and Hans Meiring hold office on the executive of AECMSA, with Hans Meiring acting as the current chairman. Aberdare also participates in the International Association of Cable Manufacturers, as well as Proudly South African. Kenneth Snyders of Aberdare is the current president of the Electronics Industries Federation (EIF), which aims to provide a representative industry opinion on the contribution that the ICT industry can and should make to the development of the country. In particular the EIF aims to engage government in the formulation of policy favourable to the development of a healthy, globally orientated electronics industry and facilitate the development of human skills through close co-operation with the ISETT SETA (Information Systems, Electronics and – Telecommunications Technologies, Sector Education and Training Authority). It also establishes support vehicles for small, medium and micro enterprises (SMMEs) to better facilitate their access to available business.
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Altech Autopage participates in the Financial Services Board (FSB), Advertising Standards Authority (ASA) as well as the Global System for Mobile Communication (GSM). The Battery Group is a member of the Advanced Lead-Acid Battery Consortium (ALABC), a research consortium focusing on advancing the capabilities of the valveregulated lead acid battery in order to help electric vehicles become a reality, as well as the SA Battery Manufacturers’ Association, (SABMA); Altech NamITech of the Smart Card Society, which promotes the use of smart card and radio frequency identification technology (RFID), as well as any new related technologies, and Altech UEC of the Metal Industries Bargaining Council and the Digital Video Broadcasting Group.
Altron, through Skip Franszen, HR and transformation manager at Bytes, is represented on a working group for the dti to ensure the BBBEE Codes of Good Practice are business-friendly.
Altron group company secretary Andrew Johnston has recently been invited to join the accounting and auditing task force responsible for drafting components of the third King Report on Corporate Governance for South Africa.
Customer relations
Most operations within the Altron group have dedicated customer care programmes. This means that customer issues and complaints are monitored continuously and reported on at management reviews, which enables the operations to track trends and respond accordingly. In Aberdare all customer complaints are closely monitored and measured as part of the productivity incentive scheme, which focuses on measures linked to quality, cost, speed and morale. Customer complaints are one of the measures linked to the quality dimension and will impact on the productivity incentive payments which are calculated monthly. Aberdare also provides technical support with products as well as on-site technical assistance. Its value chain optimisation process is furthermore intended to ensure that products are delivered to customers in full and on time. Altech Autopage runs a company-wide campaign aimed at instilling a sense of ownership in staff towards customers. EOTC (Everyone Owns the Customer) is based on a service charter that emphasises the promise of outstanding service.
Altech UEC account managers have regular meetings with customers at executive level regarding overall delivery status and effectiveness of the relationship, and to identify key new initiatives that will continue and enhance the provision of value to both parties. The company is in the process of formalising this account governance framework, whereby an engagement approach is agreed between Altech UEC and its customer to facilitate a successful relationship between the two parties.
Quality management
Accredited quality management systems at various operations help to ensure increased customer satisfaction and a minimum of complaints regarding products and services. In addition, Battery Technologies is subject to the Standards Organisation of Nigeria Conformity Assessment Program (SONCAP). The aim of SONCAP is to identify those goods which pose the highest risk to consumers in Nigeria and ensure that their claims of safety are verified before they are exported to Nigeria. This will help ensure that Nigerian consumers are protected from unsafe and substandard goods as well as ensuring that Nigerian manufacturers are not subjected to unfair competition from such goods.
Desta Power Matla conducts quality audits on its key suppliers, while quality accreditations form an important component of Battery Group’s supplier evaluation. Similarly, processes which Altech UEC undertakes to minimise complaints regarding its product or service use includes conducting regular ongoing quality and process audits with its outsourced manufacturer in India.
Relationships with key suppliers and principals
The strength of Altech’s relationships with network operators in the cellular industry is critical to the continued growth of our business. Our relationships with network operators, including Vodacom, MTN and Cell C, have been carefully nurtured, through ongoing customer relationship building and one-on-one liaison between top management. Altron enjoys a number of key strategic, technology-based partnerships with leading international corporations such as, among others, ABB, Arrow Electronics, Motorola and Xerox Corporation. These enable Altron and its operations to enter new markets and territories including, for example, Kenya for Bytes Document Solutions through its relationship with Xerox, while Altech Card Solutions’ relationships with local banks present opportunities in Africa as electronic banking gains momentum.
Employee relations
Altron’s intranet site ‘Alix’ (the Altron Information Xchange) is accessible to all staff. It provides comprehensive information about the Altron group of companies, employee benefits, diversity, policies, career opportunities, BBBEE, as well as regular communications from the Altron chief executive and managing directors from the various operations. Altron’s internal newsletter Profile is published six times per annum in both electronic and printed format. Most of our group companies and operational sites have their own newsletters, some in the local vernacular, such as Zulu, at Aberdare Pietermaritzburg. Other communications take place via broadcast e-mails, flyers in pay slips, poster campaigns and forum groups.
Staff throughout the group are kept abreast of group and operational performance through bi-annual results presentations. Altron’s management undertakes regular site visits to meet the staff and management at operational level, as does the Chairman through his ongoing site visit programme. The practice of open and transparent communication with staff on employeerelated matters is evident in the group’s recent implementation of total cost of employment (TCOE). To ensure understanding of the change process, Altron published a booklet on TCOE and set up a dedicated website, in addition to regular written communications from management to staff. Altron also commissioned a special training video to explain TCOE. The change to TCOE process also involved many one-on-one and forum discussions at all levels. Staff excellence is recognised annually at an awards event, where the top 500 executives and senior managers of the group are recognised for business excellence, team performance and outstanding individual performance.