Professor Nick Binedell, Dean of the Gordon Institute of Business Science (GIBS) addressed some 200 business owners and managers at an event hosted by Nolands, The Finance Team, FNB Vumela and Aon insurance. His topic explored the possibilities of South African companies expanding their businesses into Sub-Saharan Africa. “The opportunities abound in Africa especially when one considers that the African continent is the second-largest and second most populous continent on earth with an estimated population in 2013 of 1 billion people” said the Professor.

Professor Binedell noted that the biggest challenge to doing business in Africa is the lack of basic services; such as roads, electricity and communications. However if one can work around these challenges the opportunities and related returns are immeasurable. Six of the twelve fastest growing economies in the world today come from the African Continent. Four out of the five most populous countries in Africa are:

•Nigeria: 177 million

•Ethiopia: 87 million

•Democratic Republic of the Congo: 75 million

•South Africa: 53 million

Africa currently has a very low population density of about 29 people per square kilometre, which puts it behind Asia, Europe and South America. The population of Africa is currently projected to double in just 37 years to 2.1 Billion by 2050, with a growth rate that will make the continent more important than ever to the global economy. At this stage 25% of the world’s population will be concentrated in Africa compared to just 6% in 1950.  Nigeria is currently one of the most populous countries on earth and as China’s population shrinks and India’s plateaus, Nigeria will reach nearly 1 billion people by 2100 and will come close to surpassing China. It will surpass the population of the USA by 2050. This is pretty amazing considering the country is about the size of Texas. Nigeria is set for one of the biggest population booms in world history and it’s expected to increase by a factor of eight in just two or three generations. Some of the most rapid population increases are expected in the world’s 49 least developed countries, with Tanzania and Zambian populations expected to increase fivefold by 2100. In contrast, the populations of 43 countries (mostly European) are expected to decrease over the next 2 decades.

But what does this mean to South African businesses that want to expand their operations into Africa? “Africa’s biggest resource is its people. If you as a business can harness this resource and provide products and services that people want and need, your chances of success are excellent and your returns will be phenomenal. Doing business on the continent is challenging, to say the least, but my advice is to get out there and visit these countries, walk the streets and get a feel for the people and the culture. You cannot think of doing business in these northern territories until you yourself have experienced it first-hand” said Professor Binedell.

The Professor further commented, “While a lot of attention is focussed on the amount of Chinese investment in Africa, I am of the opinion that there is more investment coming into Africa from North America and Europe. The incorrect perception around the Chinese is because they are involved in the more high profile infrastructure projects such as road and rail networks throughout Africa. Either way, Africa is the next frontier and any world economy that ignores this fact does so at its own peril. No continent has the potential to deliver super profits over the next decades greater than the African continent.”

“In line with Professor Binedell’s observations, we have seen a massive increase in the need for qualified and African experienced South African financial executives up in Africa as the region explodes economically and local expertise is found wanting on the ground. Those professionals that are available and up to the task are extremely expensive as are the related housing and security costs. We send suitably qualified and EXPERIENCED associates into Africa on an interim or project basis to assist South African companies that are already involved and established in the area or who are currently setting up African operations for the first time. We also have an extensive network of like-minded professionals who offer world class advisory and consulting services to companies wanting to spread their wings into Africa. These companies typically focus on Capital Raising, Company and Tax structuring as well as logistics handling on the ground. As Professor Binedell stated, one has to understand these markets to be able to work in these markets. Both Grant Robson (Executive Chairman) and I, have personally worked in and serviced clients in Namibia, Botswana, Zimbabwe, Zambia, Mozambique, Tanzania, Kenya, DRC, Uganda and Ghana for many years and our deep understanding of the cultures and the way business is conducted in these territories has certainly assisted The Finance Team in providing effective financial management services to these companies in Africa,” concluded Richard Angus, CEO of the Finance Team.

There is a new kind of temp entering the workforce. Known as “supertemps”, this is a person who defies any belittling preconception of a temp. These previous members of the C-suite have either been cast aside or are unperturbed by losing their spot on the corporate ladder. Either way, companies are tapping into this talent for short term stints. Appointing “the right man for the job” proves to be a cost-effective hire, and with the changing economic climate – one that is continuously ambiguous, offering little job security – temporary work is fast becoming normalised.

Author and workplace guru, Daniel Pink, first highlighted the phenomenon over 10 years ago in his book, Free Agent Nation. He predicted the rise of the independent contractor and defined free agents as executives in-between roles or committed to short term contracts. A recent Harvard Business Review article labelled them “supertemps”. These top level managers, whether it be lawyers, CEOs or consultants, have been trained at esteemed institutions and are alums of well-respected companies. As a result, they are increasingly trusted by corporations and intermediaries have sprung up to cater for this talent.

Supertemps are predicted to grow in number and potentially alter the way the future of business works. A 2011 Mckinsey report shows that 58% of US employers expect to hire more temporary employees, with an emphasis on high skilled roles rather than administrative ones.

But the appearance of the supertemp is not just an American trend. According to Booz Allen Hamilton, the UK market for interim managers is one of the best, making up for as much as £1.17bn (R18bn) revenue in 2009. And across Europe, annual growth in the market for interim executives has been over 20%.

In keeping with international trends, South African companies are moving towards a more streamlined and results driven approach to hiring individuals for key positions. SA labour policies have created an unusual pool of highly talented and experienced professionals who can’t get back into the corporate work space and are now available on the independent market.

Richard Angus, an entrepreneurial chartered accountant and founder of The Finance Team, has tapped into the trend. The Finance Team pairs up companies in need of talent with independents looking for the next assignment. “The Finance Team service model has helped bridge key gaps in our team while we build the stature and delivery of our finance areas,” says Rand Merchant Bank (RMB) Corporate Banking CFO, David Munro.

For the savvy professional, capitalising on this trend could be advantageous. The interim market offers a viable platform for highly skilled people who crave flexibility but want to stay in the game. Kery Boucher is currently working at RMB Corporate Banking. She joined The Finance Team around 18 months ago. “At the time I was looking for more flexibility as I wanted to start up some other businesses. But I wanted to continue to add value in traditional business and finance.”

Boucher says supertemps can maintain an income stream while creating flexible lifestyle choices. “Not all assignments are full-time – other businesses can be pursued on the side. It allows individuals to create a lifestyle tailored to their values, freeing up time for family and passions.”

Most supertemps find that compensation is comparable to what they earned in full-time jobs – sometimes even better. When taking on multiple projects at a time, there is an opportunity for diversified income streams. Boucher consults through The Finance Team and has a second business focusing on sustainability. She recently joined the University of Stellenbosch Business School as a facilitator on management development programmes and runs two other businesses – one as an investor and another with her husband.

The need for, and emergence of, intermediaries is another way to garner revenue from the emerging trend. As the movement makes its way to SA, and companies and individuals begin to see the advantages, there is an opportunity for entrepreneurs and executive recruiters to tap in and focus exclusively on recruiting high-end, temporary talent.

Companies who know how to best engage this lower risk, flexible talent model can be a source of competitive advantage. Employing staff on an interim basis saves the considerable expense of a full time person – it only makes sense in our current economic climate. Supertemps will go in and make an impact quickly. They have all the necessary skills for the job. They will be able to gain people’s confidence quickly and are naturally self-starters who are able to network easily. Companies will begin to realise that it is more cost effective and productive to hire the best possible team for a specific phase.

In keeping with international trends South African companies are moving towards a more streamlined and results driven approach in their employment of individuals for key positions – experienced financial executives that can start almost immediately.

According to an article published in The Harvard Business Review on “The rise of the SuperTemp”, 16-million Americans are working independently today on either a part-time or interim basis and this figure is expected to rise to 20-million over the next two years. This is not just an American phenomenon, in Europe, where onerous labour laws make it difficult and costly to fire anyone – thus discouraging companies from taking on permanent hires – part-time and interim work is even better established than in the United States.

It won’t be long before South African employers start moving in the same direction. According to Booz Allen Hamilton, the UK market for interim managers is one of the best developed, accounting for as much as R27-billion in revenue in 2009; and across Europe, annual growth in the market for interim executives has been over 20%. Axiom, backed by the venture capital firm Benchmark Capital, today supplies 650 interim lawyers to nearly half of the Fortune 100 companies in the USA. That means you can’t run a company or deal with sophisticated talent today without understanding the rise of “SuperTemps”.

At the high end of the market, independent talent is defined by special skills, and professionals of this ilk are going independent because they can choose what to work on and with whom to work. Once they take the leap they find it very hard to turn back. South African labour policies have also created an unusual pool of highly talented and experienced professionals who can’t get back into the corporate work space and have become available on the independent market.

It is common for people to assume that someone who isn’t in a traditional full time job must not be very good. Well, 75% of Axiom’s independent lawyers come from a top 25 school and 60% of Eden McCallum independent consultants are alums of Bain, McKinsey and BCG. These days, it’s the people who have the power in the talent market who are going the way of independent consultant. The part time and interim market offers a viable platform for highly skilled people who crave flexibility but want to stay in the game.

With the above trends in mind, an entrepreneurial chartered accountant has created a company and a solution to provide South African companies access to financial experts. Richard Angus, the founder of The Finance Team, has created a company that provides a tailored solution for companies that are in need of financial executives with many years of experience that can hit the ground running, bringing value to the organisation immediately in a cost effective manner on a part time or interim basis.

Can’t be done? Richard begs to differ. “Being a chartered accountant myself and having worked with a number of companies in a variety of industries, we have identified a need within companies to utilise financial experts, whether it be financial managers, project accountants or chief financial officers, but where such skills cannot be sourced affordably. In many instances, companies follow an approach of full time employment and turn to employment agencies to find the right person. The Finance Team is not a recruitment agency. We are a business consultancy specialising in the financial management space.

“We have the expertise to determine exactly what skills a client requires and are able to tailor make our services and team to meet the client’s exact requirements and industry. Our senior management team and associates have vast and varied experience and as a client, whilst you will be appointed a dedicated resource, you will  have access to the knowledge provided by the other associates within our wider team and partner network should the need arise.  We ensure that our clients have the right person or mix of people who correctly and beneficially serve the needs of the company,” comments Angus.

“Another major consideration is budget. If the company is looking for a financial executive and has a limited budget and the position is not offering the top echelon of salary packages, companies lose out on the opportunity of working with the best people that are perfect for the position. That is where The Finance Team comes in.

“We are able to offer companies access to highly qualified and perhaps most importantly, highly experienced financial executives on a part-time or interim basis. We meet with the company leadership to obtain a greater understanding of the client’s needs, after which we put a solution together that is most beneficial for the business. In many instances the company might only need a resource for one or two days a week to meet their objectives.

“So through us, they are able to source, retain and afford the best possible financial executive. What does that actually mean? More bang for your buck!” concludes Angus.

 
Article appears in Mweb Entrepreneur

 http://www.mweb.co.za/Entrepreneur/ViewArticle/tabid/3162/Article/8479/The-rise-of-the-Super-Temp.aspx