Brian Khumalo literally makes it his business to keep up to the minute with the changing face of leadership. Leaders Unlimited, the company in which he is one of two senior partners, is involved in executive search, leadership and human capital consulting.
Khumalo has been on the judging panel of the Transnet Boss of the Year Competition for the past two years and has a fascinating take on the evolution of leadership and what is required of an ideal leader today.
He starts by outlining the changes that have taken place in the world that have made it necessary for leaders to adopt different characteristics. During the height of the industrial era, bosses were revered for having specialised technical knowledge, but with a move to what Khumalo terms “the era of customer solutions”, people skills became a key component of good leadership.
“Leaders still needed to have good technical knowledge, but it wasn’t enough on its own – soft skills were also needed,” he explains. Leaders who could motivate staff to go the extra mile for customers enjoyed success.
“We have moved beyond that era now to a new information era where the playing fields have been levelled,” he continues. Two critical changes have taken place: people now have instant access to knowledge and the work environment is different.
A company is no longer the individual’s source of security, and Khumalo argues that instead, a respect for individuality and human rights is where people now place value. “In this information era, I would argue that what people are looking for is someone with emotional intelligence who respects their human rights, because it is from this that people now derive a sense of security.”
However, Khumalo is quick to point out that emotional intelligence is also not enough on its own. Some basic leadership qualities remain. Among these are the ability to streamline operations, to accomplish more with less, to create new and profitable ideas and to generate quality products and services by working together as a team.
“This means that if you want to succeed as a leader in today’s business environment, it is still essential that you possess leadership traits that bring out the best in the people around you,” he says.
“Having said this, there is also a saying that every executive should have on their minds at all times: ‘Executives are hired for their skills but fired for their behaviour and habits’.”
To illustrate the point, Khumalo highlights leaders who have failed in recent years, citing the examples of Enron and WorldCom. “It was not for want of technical knowledge or people skills that these leaders failed, but rather because of bad corporate governance and unethical business behaviour,” he explains.
“Leadership is undergoing a fascinating period of transition and people are demanding that leaders have this third dimension in addition to the first two elements.”
The demand for the third dimension has changed the playing field not only for individual leaders, but for companies as well. It is no longer enough for organisations to make money for shareholders and treat their employees well. They are now required to have a moral conscience and make meaningful corporate social investments.
As Khumalo points out: “Companies have always had the capacity to make a difference in a social context, but never before have they been expected and required to do so, or to report on their triple bottom line. This is because the world is calling for moral business behaviour and sustainability.”
Time will tell if South African business has caught up with the changing face of leadership. Khumalo hopes that the 2006 Transnet Boss of the Year Awards will attract nominations of leaders who possess all three of the ideal characteristics – excellent technical ability, good people skills and ethical behaviour. It’s an issue that will shape the future face of business in South Africa and the true test will be the level to which all stakeholders – bosses, politicians, employees and entrepreneurs –become mindful of their own ethics in business.
Watch List: 50 Top SA Small Businesses To Watch
Keep your finger on the pulse of the start-up space by using our comprehensive list of SA small business to watch.
Entrepreneurship in South Africa is at an all-time high. According to Global Entrepreneurship Monitor (GEM), total early-stage entrepreneurial activity has increased by 4.1% to 11% in 2017/2018. This means numerous new, exciting and promising small businesses are launching and growing.
To ensure you know who the innovative trailblazers are in the start-up and small business space, here are 50 of South Africa’s top establishing companies to watch, in no particular order:
- Livestock Wealth
- The Lazy Makoti
- Mimi Women
- AfriTorch Digital
- Akili Labs
- Native Décor
- Quality Solutions
- EM Guidance
- Kahvé Road
- HSE Matters
- VA Virtual Assistant
- Famram Solutions and Famram Foundation
- BioTech Africa
- Brand LAIKI
- Plus Fab
- Lenoma Legal
- Benji + Moon
- Brett Naicker Wines
- Legal Legends
- The Power Woman Project
- Aviro Health
- AnaStellar Brands
- Data Innovator
- Oolala Collection Club
- Empty Trips
- Vula Mobile
- The Katy Valentine Collection
- Pimp my Book
- ART Technologies and ART Call Management
- The Sun Exchange
How 28-Year Old Entrepreneur Adam Fine Is Leveraging The Global Phenomenon Of Five-A-Side Football
Adam Fine of Fives Futbol discusses how he leverage a global phenomenon and the value of strategic partnerships in business.
- Player: Adam Fine
- Company: Fives Futbol
- Est: 2011
- Visit: www.fivesfutbol.co.za
Nothing about Adam Fine is by-the-book. The 28-year-old entrepreneur describes himself as a slightly big child. He’s the CEO of one of the most exciting start-ups in South Africa, having leveraged the global phenomenon of five-a-side football to start a business that has grown almost as fast as the game itself. Not bad for a venture that was launched with the princely sum of R85 000 — Fine’s life savings at the time.
He started it in 2011, with a strong focus on corporate social investment and making a positive social impact. It was by forming strategic partnerships that Adam really managed to grow Fives Futbol. He’s opened pitches in prime locations that serve both the school and corporate markets, while still being accessible for social impact interventions in local communities.
Pivoting at the right time is key to growth
In the last 18 months, Fives Futbol has trebled in size, and achieved some amazing milestones — it now employs 50 full-time staff, and 80 part-timers. It’s one of the factors that drives Adam, as many of his employees support up to eight family members. It’s now also represented in four provinces and 15 locations around the country. By September, there will be 18.
Quick growth means you have to be able to pivot quickly when things do not go according to plan, and mostly they don’t, Adam says. “If things are not working you should be able to ‘pivot’, to shift your focus. And do it fast. It’s not a sign that things have gone wrong by any means, on the contrary, it means you have the insight to recognise that there is a problem with the assumptions on which you have built your business model. The decision to pivot is a big one, and not something to be taken lightly. It requires you to take a hard look at your reallocation of resources, and to do it with an open mind.”
In Adam’s case, construction delays, councils taking their time to approve, or having to put money into rolling out sites as opposed to marketing, means the promotion of a new site will slow down, for example, because the business does not yet have a large marketing budget.
“When we run behind on the construction of a new site, R40 000 can suddenly become R100 000 — but here’s the thing: If a deal comes along that will probably harm your business in the short-term but enable significant long-term growth, sometimes you have to juggle what you have so you can make it work.”
The Lesson: Choose your investors carefully
Fine says he’s lucky to have a solid group of investors that he has cultivated over six years. “Their input is invaluable. They’ll say, ‘slow down’ or ‘have you thought of this?’, ‘have you factored in that?’ The ability to develop a good relationship with our investors has had a significant impact on the success of the company. Over and above money, they provide wisdom, guidance and connections.”
His relationship with his investors is key. While many entrepreneurs make it just about the money, Adam understood something else — he has a pretty cool brand with a great cause behind it. So, while investors are asked for money all the time, he was able to offer something more than just a business idea — alignment. He generated enthusiasm for the ‘why,’ behind the business. Like most of us, it makes investors happy to know that they are helping to make a positive difference.
And while it’s easy to bandy about the word ‘partnership’, Adam has worked hard to make that a reality. He set out to find like-minded people who are passionate about the business and the cause, which is why they are able to serve as great resources for advice and insight.
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“The best way to ensure that you and your investors have a valuable and lengthy partnership is to make sure that everyone is aligned on the vision.”
This includes Adam’s team. The internal culture of an organisation is vital to its strength and growth. “Without our team we don’t have a business for investors to support — our people are critical to our success. They’re the executors of the vision at the end of the day.”
The Lesson: The value of strategic partnerships
Much of the growth of Fives Futbol has been fuelled by finding the right sponsorship partners in key industries. To overcome the challenge of a limited marketing budget, Adam has secured sponsorships with big brands like Adidas, Total Sports, Debonairs, and Klipdrift, allowing Fives Futbol to use their access to communities as a marketing platform to derive income as well as scale. And it works both ways.
“Because we have a national footprint and a team of people, we run activations for our partners, which also provides us with an ancillary revenue stream,” he says. “Knowing how to join forces with other businesses has been a key factor in making the business successful. Our strategic partners have enabled the business to leverage their brand to give us more exposure. When it works well, a strategic partnership can be just what you need to speed up the growth of your business.”
Watch List: 15 SA eCommerce Entrepreneurs Who Have Built Successful Online Businesses
The advent and advancement of the online marketplace has led these entrepreneurs to successfully build and grow their ecommerce empires.
South Africa’s ecommerce market is worth R10 billion per year. By 2021, the number of online shoppers is expected to have reached 24.79 million.
“Our recent research on SA shows people are browsing three hours or more on their mobile phones and 25% shop online. They trust local brands,” says Geraldine Mitchley, Visa senior director for digital solutions in sub-Sahara Africa.
These entrepreneurs have cashed in on ecommerce and launched successful online stores that have either established their dominance in the market, or are taking the e-tailing world by storm.
Here’s how these 15 ecommerce capitalists are making money using the Internet:
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