Let us consider the world as it was in 2003. South Africa was in the grips of the Mbeki era, and the world at large was relishing a period of wonderful prosperity. Yes, there were those who warned of ‘bubbles’, but since the economy was well on its way to recovering from the dot.com collapse that had rocked it just a few years before, they were largely ignored as overcautious pessimists. As for problems like bomb blasts in Chechnya and worldwide dissent against former US president George W. Bush’s
Iraqi invasion – well, here in South Africa, those issues had little impact on our businesses.
Fast forward eight years, and South Africa can no longer claim to be as unaffected by global issues. The most significant development of the past few years in terms of the corporate environment has, of course, been the global economic meltdown; a challenge which ultimately cannot be separated from the corporate governance crises, involving the likes of Enron, that had shaken the world’s confidence in corporate power just a few years earlier. News of executives enjoying sizeable bonuses while consumers tightened their belts left a wake of disillusionment, and clearly signalled the need for a new management paradigm. Gone were the days of corporate dictatorship; of consumers blindly accepting the way companies operate. It was inevitable that this should impact on employee behaviour – after all, consumers are staff members, too. Small wonder, then, that there should be a greater emphasis on transparency and inclusivity.
Clearly, then, the world’s economy – and South Africa’s place in it – provides a vastly different context to that in which CRF first launched South Africa’s Leading Managers, back in 2003.
Even then, the importance of sound governance was starting to gain attention, pushing this issue into the spotlight. At the same time, however, the country’s leadership was grappling with challenges that were a natural part of a country with a democracy that had yet to celebrate its tenth anniversary. The changes that had ensued during this time had left leaders facing many questions that were more about trying to define their leadership style and crave a niche in a world that, even then, altered rapidly. CRF was proud to present a platform that, for the first time, recognised the efforts of the men and women who were tackling this difficult environment and helping their organisations to make their mark. We looked to icons such as former president Nelson Mandela who, having effected enormous political change, was certain to inspire the leaders in our business sphere and to instil in them the courage required to entrench South Africa as an established member of the global business community – not to mention that it was at this time that the corporate fraud which had such negative repercussions on the American markets was still leaving an aftershock on this community.
By 2004, leaders were already facing a new set of challenges. This year was marked by the strengthening of the Rand to a degree that their competitiveness was compromised. At the same time, the complexities surrounding Black Economic Empowerment and an increasingly regulated environment raised question marks for many organisations. Those leaders who stood out at the time were the ones who not only successfully helped their companies find their footing in this complicated local context, but who did so in a manner which made it possible for them to compete in the global arena. Indeed, during this time, many local companies started to flex their muscles with international expansion – or at least consider offshore an increasingly attractive possibility. Then came the boom times. Consumer confidence was high, as indicated by unfettered spending and the positive effect this had on organisations. For leaders, this was the golden age: although America had started to push corporate governance issues to the forefront, organisations had yet to face the pressures that have become an intrinsic part of the operating environment.
That all changed in 2008. With the recession just starting to take effect, consumers were exercising caution. The mood of optimism was gone, and in South Africa particularly, a period of political turbulence following the xenophobic attacks and the appointment of a new president created a situation of malaise in many organisations. The challenge facing leaders now was to ensure those employees remained motivated; they didn’t refute the difficulties ahead, but nor did they bow to them. Again, CRF took pride in saluting those who had proved themselves proficient in perceiving the challenges in store and responded accordingly.
By 2009, those challenges had grown significantly. As companies around the world were forced to downsize, the South African leaders who earned our respect were those who steered their organisations with grace; introducing innovations that helped them weather the storm and harnessing their employees’ abilities in a manner that showed them the value of their contribution. At this time, the establishment of a common goal, and the ability to create a team that believed in it entirely, was crucial.
One year later, South Africa was making tentative steps towards recovery, helped greatly by the jubilation of the 2010 FIFA World
Cup™, which helped to enthuse jaded workers. The tribulations of 2009 were by no means over, but canny leaders were able to help their staffers focus on a more positive future.
Some would argue that such a future has yet to arrive: after all, rumours of a double dip far more serious than any other in history continue to cast a pall over organisations.
This notwithstanding, our business leaders having navigated us efficiently thus far, we at CRF have every reason to believe they will continue to do so, no matter what obstacles they face in the future.
