Surviving and Thriving in a constantly changing world ...€¦ · Surviving and Thriving in a ......
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Surviving and Thriving in a constantly changing world
Going Beyond Compliance…
“Insanity: doing the same thing over and over again and expecting different results”, Albert Einstein
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Harvey Keown
AGENDA: Introduction, Dwindling Resources,
Agro-Processing Value-Chain, Q&A
� Attempt to link ED with conference theme “Think Differently”
� Value-Chain to surface Challenges, Linkages and Opportunities
� Intended to be a Knowledge Sharing Session
� From our experience there are systemic issues that prevent SA
achieving full potential ie Trust, Integrity…
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Key Message: Complexity of building sustainable, fi nancially viable businesses within the constructs of a global recess ion
� Appreciation of the Value-chain (hidden challenges)
� Mature Value-chains (constantly evolving)
� Consolidation and Vertical Integration (multinationals)
� Deep “Trust” Relationships (strengthened during downturns)
� Personal Networks (cultivated over generations)
� Knowledge and Experience (takes time)
� Access to Finance (perceived high risk by commercial institutions)
� Back Office Systems (shared services, economies of scale)
The Complexity of Enterprise Development COMPANY LOGO HERE
Collapse of 450,000 SMME’sFailure of 90% of Co-operatives
What does the future hold? COMPANY LOGO HERE
Consequences of Climate Change, Natural Disasters?Threats to Sustained Democracy?
� Mineral Resources �
� Clean Oxygen �
� World Population �
� Air Pollution �
� Contaminated Water �
� Sterile Soils �
� Energy Demand �
� Food Insecurity �
� Inequality �
Insecurity
Consumption vs Resources
According to a joint report by WWF, Zoological Society of
London and the Global Footprint Network, the potential of Earth
to maintain life will be exhausted by 2030. In recent years, we
began to use twice the amount of resource as in the past 50.
Experts have warned that if future generations fail to change
their lifestyle, they will need “extra planets” to survive. According
to the experts, very shortly the people of our planet will not have
enough food, water and even air for their survival. Read More...
Is Mars the next frontier?
Global Population - 9bn by 2050
Source: United Nations, World Population Projects: The 1994 Revision; US Census Bureau, International Programs Center,
International Database
We are here
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Tragedy of the Commons
� Ecologist Garrett Hardin (1968), discussed problems that cannot be
solved by technical means, as distinct from those with solutions that
require "a change only in the techniques of the natural sciences,
demanding little or nothing in the way of change in human
values or ideas of morality ". Read More...
� Depletion of a shared resource by individuals, acting independently
and rationally according to each one's self-interest , despite their
understanding that depleting the common resource is contrary to the
group's long-term best interests. Some also see the "tragedy" as an
example of emergent behaviour , the outcome of individual
interactions in a complex system .Play Video...
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Coal Mine in South Africa
Tragedy of the Commons?
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Community in Cape Town
Consequences of urbanisation? Seeking better prospe cts?
Agri-Processing Value-Chain
Barrientos & Visser (2012) fresh fruit and vegetable s value chain, stages of fruit production from initial inputs (inc luding labour),
production, packing, logistics to final retail
SA supermarkets controlled 66%of the retail food market in 2006
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De Doorns, Western Cape
Daily Maverick, Rebecca Davis & Kate Stegemann, 10t h Jan 2013
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All too often sight
Daily Maverick, Rebecca Davis & Kate Stegemann, 10t h Jan 2013
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Agri-Processing Value Cain
Turnover(R million)
% market share
Pick’n Pay 39 337 36%Spar 21 704 28%Shoprite 38 949 27%Woolworths 8 718 9%
Farm workers Wages+/- R68 per day
R230.00 – Return trip on the Gautrainfrom ORT to Sandton (ex parking)
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Paradigm Shift
STOP1. Transactions2. Many Micro Initiatives3. Rigid, Slow Processes4. Stop/Start Coaching &
Mentoring5. Disjointed Interventions6. Crisis Management
7. Re-enforcing the dogma of archaic structures
START1. Sustainable Enterprises2. Scale the initiatives3. Agile, Responsive Processes4. Seamless Progression of
Enterprise Incubation5. Continuous Improvement6. Continuous Measuring,
Monitoring and Reporting7. Building organic, dynamic and
innovative Enterprises
Shift from Individual Entrepreneurs
Focus and Empower Globally Competitive
Teams
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Paradigm Shift
BOTTLED WATER BOTTLED AIR
Play Video...
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Paradigm Shift
Creating Hope for our Youth
In Closing…
Thank-You….