VISION 2012: TRANSFORMATION FOR THE FUTURE

Following the adoption of the codes of good practice that brought about some certainty regarding transformation as seen by government, the group’s Vision 2012 policies and targets have been aligned to these codes.

VISION 2010

  • What was it? Transformation Vision 2010, developed in 2002, was Altron Group’s strategy for black economic transformation.
  • Why did we adopt it? Vision 2010 arose out of the recognition that black economic transformation, as defined in the ICT Charter on Black Economic Empowerment, is not only a moral imperative but critical to the stability and future prosperity of the South African economy.
  • What were its aims? To compile relevant policies, to restructure activities within Altron Group relating to BEE and to set measurable goals in an internal empowerment scorecard for the period 2005 to 2010.
  • What were its specific targets? Altron’s Vision 2010 incorporated five distinct phases:
    1. Adoption of transformation strategy by EXCO (completed 21 August 2002).
    2. Establishment of a Group-wide representative task team to pursue strategy and draft documents (completed
      November 2002)      .
    3. The holding of a two-day Group indaba attended by 100 implementers and external speakers, with the Group Chairman and the Group Chief Executive endorsing the strategy (completed 21 and 22 June 2003).
    4. Compilation of a draft document, “Altron Transformation Vision 2010” as an empowerment blueprint (completed
      October 2003)      .
    5. Adoption by the Group Company boards and the Altron board as Group policy (completed March 2004).

VISION 2012

Taking us into the future: Transformation Vision 2012

  • Why the need for Vision 2012? Transformation Vision 2010 was always designed and intended to be adaptable to South Africa’s dynamic transformation environment. It was subject to continual reviews to ensure that it kept abreast of the latest legislative developments and industry charters as they developed.
  • So what’s changed? Over the years, we have achieved many of Vision 2010’s goals. In addition, during early 2007, the Department of Trade and Industry (dti) published its revised broad-based black economic empowerment codes of good practice (dti BBBEE CoGP). The goals and targets set in these codes are an evolution of the original BEE codes published by government and will help companies like Altron to move into the next phase of transformation. For this reason, Altron has incorporated the new codes into our strategic transformation objectives and, in so doing, revised Transformation Vision 2010 to become Transformation Vision 2012.
  • What hasn’t changed? Our commitment to transformation of our Company for the good of the country, economy and ICT industry as a whole, which formed the essence of Transformation Vision 2010, remains the same.

 

   
» 2004  
   

BEE deals

2004: Powertech disposes of 30% of its interest in Aberdare Cables to the Izingwe Consortium for a consideration of R165 million. BTG disposes of 27% of its equity interest to Kagiso Strategic Investments. Agreement reached with Pamodzi Investment Holdings that it would acquire 25,01% shareholding in Altech Data subject to the fulfilment of certain conditions.
 
   
» 2005  
   

BEE transformation committee formed

2005: A dedicated BEE transformation committee is formed representing the various group companies and tasked with compiling a BEE database which will serve as a platform for measurement purposes regarding equity ownership, management and control, affirmative procurement, enterprise development and CSI.


Meeting procurement targets

2005: Group companies meet or exceed internal scorecard target of 10% of discretionary expenditure on preferential procurement and enterprise development with Netstar spending 66%, UEC Multi-Media 10%, BTG 28% and Powertech companies an average of 28%.

 

Adoption of BEE IT system

2005: Altron implements IT system, Everest, which enables it to capture, score and consolidate meaningful, updated and auditable information required to populate the BEE scorecard grid.


CSI Policy and Implementation Guidelines implemented

2005: The Group implements its CSI Policy and Implementation Guidelines. Agreement reached that 80% of CSI spend will go to BEE-related CSI projects.


Top empowerment companies

2005: BTG ranked 10th in Financial Mail Top Empowerment Companies survey and 4th in the ICT industry and Altron is ranked among the top 300 empowerment companies by Impumelelo.
   
» 2006  
   

Establishing new BEE SMEs

2006: Focused enterprise development initiatives help to establish 30 new BBBEE SMEs.

Empowerment rankings

2006: Bytes moves up in the Financial Mail Empowerdex Top 200 Listed Companies Empowerment rankings, to 8th position overall and 1st position in the ICT sector.


Furthering learning

2006: Altron Group spends R38 million on training and development for previously disadvantaged individuals, amounting to over R5 000 per employee. The Bytes Bursary programme has six bursars and actively supports a further 210 learnerships. Bytes also completed the first learnership programme for disabled people in the ICT sector with 50 disabled learners starting the NQF 3 level.

BEE IT system implemented

2006: Everest, the Group’s BBBEE management information system progresses.


Further BEE deals

2006: Altron finalises BEE transaction with Platina Venture Holdings for an effective 25% equity in Altech Alcom Matomo.
   
» 2007  
   

Bytes meets and exceeds dti targets

2007: Bytes Technology meets and exceeds some dti targets. Black board and management control representation is at 57% (7% above the dti target) and the total number of black employees increases from 44% in 2004 to 55% in 2007. The Company is on track to meet the 40% top management target, having increased representation at this level to 23%.