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Barloworld Enterprise Development Strategy

Edge designs strategy to guide existing ESD Fund’s activities and investments.

Edge Growth barloworld

class="intro">Barloworld has established Siyakhula, an Enterprise Development fund designed to manage the ESD contributions and projects for all their South African underlying businesses. The Barloworld companies allocate their Enterprise Development spend to Siyakhula, which then selects and invests in SMEs on their behalf.

Problem Statement:

Edge Growth was commissioned to assist Barloworld in developing the enterprise development strategy that would drive Siyakula’s activities, investments and projects. The strategy would need to cater for the integration and co-ordination of investments across a number of different companies to ensure that they not only benefit Barloworld at large but also the individual Barloworld companies who committed capital into the fund. Siyakhula and the divisions had committed to embarking on an ESD and Preferential Procurement (PP) program, but had not yet agreed the platform from which to implement it.
Edge Solution:

Edge Growth developed a strategy and structured the organization that would drive that strategy; developed the operating model, the reports and controls to ensure they could deliver on their strategy. The strategy we developed centred on driving value chain transformation (increasing the number of black-owned businesses in their value chain), gaining cost effective ESD and PP points, developing an organization that would be self-sustaining in 5 years, and delivering job creation and other social returns. The ESD and PP strategies need to integrate seamlessly; investing ESD funds in supplier development thereby ensuring their ESD efforts have a long term impact on their overall PP score and that their efforts would increase the robustness of their supply chain. Siyakhula decided to invest in their customers too, building their capacity to procure from themselves.
Basic Methodology/Outcome:

This entailed defining the organisational processes and the personnel, the skills and capabilities required to execute these processes. Edge Growth defined the roles and responsibilities of each business unit and staff member, as well as the performance criteria against which their stakeholders would be measured. The planning structures that would drive the actual investments in the SMEs and the provision of the business development services to the SMEs were defined. We then structured the reporting and measurement process that would allow management to monitor and control the organization; this involved setting up a board to oversee the overall program, an investment committee responsible for the selection of ESD investments, and an operational committee responsible for the day to day running of the program.

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