Khuluma January 2019

MANAGEMENT’S FUTURE DISCOVER

L ead ershipTheageoftop-down,order-from-the-CEO-which-

must-be-obeyed leadership, is dead. Here’s how

4.0 leadership thinking is changing
B arbara Walsh, one of the
founders of leadership
development consultancy
Metaco, says that there are still
many ‘old school’ leaders out there,
militaristically issuing orders and
expecting strict compliance – and
wondering why their tried and trusted
ways of getting things done are no
longer working as well as they once did.
That’s as much a management failure as
it is a leadership failure. ‘Management is
concerned with the achievement of plans
through such processes as planning,
delegating, project managing, reviewing
etc. The focus is on control and problem-
solving,’ says Walsh. ‘Leadership, on the
other hand, is about aligning people to
a common direction – obtaining their
commitment to the realisation of the
vision. The focus is on motivating and
inspiring. Managers are often not leaders,
whilst leadership can reside anywhere in
the team or organisation.’

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DISCOVER MANAGEMENT’S FUTURE

Established organisations find authentically. It is Metaco constructively, to help them
themselves being forced to adapt to possible for anyone has been acquired improve. They want to
a new way of working in a bid to stay to develop the by the Comair Group, be involved in relevant,
alive in a world of disruptive startups. attitudes and skills which is in the process of meaningful work
With things growing ever more matrixed
and agile, working across boundaries and required.’ establishing an Aviation, Leadership that makes a real
collapsing silos has become increasingly
important. ‘This isn’t set to change, with While and Technical Academy. Metaco will difference – they want
outsourcing, digitalisation and robotisation
becoming evermore mainstream,’ says technology is become the leadership and people to understand the
Walsh. ‘However, the fact is that in
today’s complex business environment, driving massive development wing of the Academy, company’s purpose
organisations are expected to do far
more, in less time, at higher quality, with organisational and will assume a new name and impact, how they
fewer people and less resources, more
profitably, more innovatively. Raising the change, there’s also and branding later this year. contribute to solutions
collective organisational capability and metaco.co.za
capacity to respond to the complexity, the increasing role that and the value of their
and to connect all of these points, is
beyond the ability of any individual CEO, no millennials play in any contribution. They value trust
matter how competent.’ What does that
mean for the future of leadership? To be organisation – and adapting to and integrity. Personal conversations
successful, leaders will have to partner
with many more stakeholders than was manage a new generation is as important and dialogue are important to help them
necessary previously. They have to be able
to win the hearts and minds of all of their a skill to master. Professor Peter Hawkins, create and navigate their learning journeys –
stakeholders – including people who don’t
report to them and are often even outside Metaco chair and professor of leadership they highly value coaching and mentoring.’
of the organisation.
at Henley Business School University of This generational view on the working
Metaco’s Danny Tuckwood,
a strategic leadership consultant, says Reading, says that millennials are already world will also change the leadership
that, thankfully, traditional leaders who
embrace new ways of doing things, and making up the majority of employees in function in the future, as millennials
who have the right development and
support, can ‘learn’ new ways of leading many companies – and that their hunger assume leadership positions in
in the modern business environment.
‘We have seen amazing transformational for progression within those companies established organisations. ‘It’s
change in senior leaders, and their
delight as things start to work better for requires a change of tack. ‘They are our a generalisation, but millennials tend
them is rewarding to witness,’ he says.
‘Leadership isn’t something that can be future leaders and they want to get ahead to be more socially minded and expect
taught in a classroom – it’s relational and
is developed experientially through the fast. They don’t buy into traditional “do as their companies to be making a positive
willingness to try, fail, learn and reflect –
to be vulnerable, open and communicate I say” or “carrot and stick” management difference in the world. This generation

paradigms,’ he says. ‘Millennials when the workforce has often had it easier

typically want to be constantly learning growing up than their parents did, and so

at their jobs and are invested in their competition for turf and maximisation of

own personal development. They profits at any cost is not top of mind,’ says

want frequent feedback, delivered Professor Hawkins. ‘They push

152 JANUARY 2019 kulula.com





MANAGEMENT’S FUTURE DISCOVER

back against policies that don’t make the multi-faceted dynamics of startup leadership’ – a process of slowing down
sense to them and they prefer flat businesses and be the non-judgmental and pausing to think. ‘Mindful leadership
structures to complex hierarchies. They are sounding board that provides crucial is about coming into the present moment
not the ones switching off the office lights support and advice, to help you get to reflect before making decisions,’
at 2am – flexibility and work-life harmony through the really tough times,’ she says Walsh, ‘before having important or
are highly valued. But, at the same time, says. ‘The question is not “Can I afford difficult conversations about what the key
they are productive and have little time a coach?”, rather it’s “Can I afford not to priorities are – rather than scrambling to
for talk without action.’ Walsh says that have a coach?”.’ get everything done.’
millennial leaders of the future will have
broader experience, having worked in What, then, is ‘success’ in leadership? It’s also about considering the broader
a number of different companies, in many Tuckwood says that leadership does impact of behaviour. ‘In the fast-paced
different roles, and will have changed not reside in leaders alone. ‘Leadership world of business today, taking the time to
career altogether, several times. ‘They will (collectively) or leaders (individually) reflect is often considered a dispensable
be technically adept, globally networked can be measured by how much added luxury – in spite of the fact that this is one
and connected, flexible and innovative.’ value they co-create with and for all of the most powerful enablers of personal,
their stakeholders. This includes the team and organisational learning. There
In the absence of an organisational extent to which they enable their teams is a huge cost to neglecting individual and
environment that fulfils their needs, and their people to collectively achieve collective reflection time.’
many millennials will strike out on their more than they could by themselves,’
own, forming startups which target the he says. Regardless of the generation, While the hope is that technology
spaces traditionally occupied by big mentorship remains a key component will automate many taxing processes
corporates – but which are able to disrupt of successful leadership. ‘Great leaders which eat up valuable time in the
industries much more easily. Walsh’s develop leadership in others. Leadership modern business environment, there’s
advice for establishing effective leadership development is actually a key aspect of also a place for employing mindfulness
structures in the startup space is to every leader’s role.’ when considering how to apply tech
invest in a business coach. ‘It is crucial to like artificial intelligence and robotics in
have someone assisting you to navigate ‘Mindfulness’ has now found a place an organisation. ‘AI, robotics and other
in the business lexicon, as has ‘mindful technologies are already able to handle
the data-driven processing of facts and
Words: Trevor Crighton, Pictures: bizvector/shutterstock.com information, leading to a reduction in the
need for deep expertise,’ says Tuckwood.
‘Hard skills will continue to be eclipsed
by smart machines, while developing soft
skills will become ever more important.’

Tuckwood says these developments
mean that leaders will have more
time to focus on building important
relationships across functional
departments and geographic territories.
‘Great leaders will be inspiring and
motivating their people, connecting
with all their different stakeholders,
and engaging them in a shared purpose.
With more time for reflection, they can
anticipate disruptors, connect dots, and
be more visionary, and apps will assist
them to do this more effectively.’

kulula.com JANUARY 2019 155



AFRICA’S ECONOMIC TOMORROW DISCOVER

awakensA GIANT JANUARY 2019 157
In their new book Africa’s Business Revolution: How
to Succeed in the World’s Next Big Growth Market,
authors Acha Leke, Mutsa Chironga and
Georges Desvaux make the case for investing in
Africa. They look at the continent’s growth trends and
present a strategic guide to winning in business on the
continent, using case studies to show what’s possible.
In this extract from the opening chapter, we discover
how Mzansi’s world-conquering brewery embodies the

continent’s tenacious business spirit

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DISCOVER AFRICA’S ECONOMIC TOMORROW

A nyone visiting Africa is aware decade. He told us, ‘We spotted a huge that if we established a leading position,
that one must-do activity is
a game drive in one of the opportunity in Africa’s beer market, and we even if it was small in the beginning, it
continent’s remarkable nature reserves
– perhaps the Serengeti in Tanzania, seized it at the right moment. In the early could grow into quite a big business. Even
Namibia’s Etosha National Park, or
Kruger National Park which needs no part of this century, most global firms so, I don’t think we ever fully appreciated
introduction. As visitors bump along the
rutted savannah on the back of a Land saw Africa as unattractive, so we had that African markets would generate the
Rover, however, they discover that some
of Africa’s most magnificent animals can limited competition.’ value that they did.’
be hard to spot. A leopard, for example,
might be perched still and silent on the SABMiller knew otherwise. The SABMiller began acquiring existing
branch of a marula tree, its coat a natural
camouflage under the dappled shadows continent’s population was growing by African breweries in 1993, starting with
of the leaves. The untrained eye is likely
to see only the tree; but those who know around 2.5% a year, much faster than most a 50% stake in a money-losing operation
what they’re looking for will pick out the
leopard a mile away. other regions, and 70% of the population in Tanzania. With its local partners, it
That’s a fair analogy for the business
world. Executives with on-the-ground was under the age of 30. Most countries quickly turned that brewery around,
experience in Africa sometimes manage
to spot opportunities that are hidden from were increasingly urban, and their tripling production and generating healthy
the view of global observers.
Just look at the story of SABMiller. economies were growing – all bullish signs profits within three years. That whetted its
The beer maker started as South Africa’s
national champion, snapped up global for beer consumption. appetite for more.
brands such as Pilsner Urquell, Miller Lite,
and Peroni, and ended up on the London SABMiller’s insight was simple yet ‘We more or less tried to buy anything
Stock Exchange’s FTSE 100 list before
being acquired by rival Anheuser-Busch powerful: like consumers that was for sale, had a reasonable
InBev for $103 billion in late 2016. It was
SABMiller’s success across the African the world over, Africans like brand and had reasonable
continent, along with its operations in Latin
America, that made it such a growth star beer. When they can start prospects,’ recalls Bowman. He
and justified the eye-watering price tag for
its takeover. spending a portion of earnings says the deals were often complex,
From 2007 to 2016, the brewer saw
its African sales outside of South Africa on nonessentials, one of the burdened by poor bookkeeping
climb from $280 million to $1 billion. By
2016, SABMiller had brewing operations first luxuries they turn to is and questionable tax-avoidance
in around 40 of Africa’s 54 countries.
Mark Bowman was the managing director an upgrade from home brews schemes practiced by the acquired
of SABMiller’s Africa region during that
to commercial brands. ‘We breweries, but SABMiller pushed

realised that, if we ahead as long as there

acted early, we was some prospect of

could become Written by Acha Leke, Mutsa generating a positive

number one Chironga and Georges Desvaux, return. ‘With hindsight,

or two in Africa’s Business Revolution: How what we thought
many African to Succeed in the World’s Next Big was expensive was
markets,’ Growth Market is published by Harvard actually cheap,’
Bowman Business Review Press. It confronts many he says.
said. ‘We myths about Africa and reveals how
recognised the continent stands on the cusp of The company
started with
transformative growth, making

it a vital market worthy of

investment.

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AFRICA’S ECONOMIC TOMORROW DISCOVER

Excerpted from Africa’s Business Revolution: How to Succeed in the World’s Next Big Growth Market and reprinted a conservative strategy, using second- WHY INVEST IN AFRICA? among African consumers. By the time
with permission from Harvard Business Review Press, Pictures: Kit8.net/shutterstock.com, supplied hand equipment in its new breweries to it was acquired by Anheuser-Busch
save money and cycling in end-of-career Africa is a 1.2 billion-person InBev in 2016, SABMiller had begun to
executives to manage them. Bowman market in the midst of an historic extend its portfolio beyond its traditional
recounts, ‘As we developed confidence in economic acceleration. mainstream beer offering. In its drive
the business, Africa became a much bigger Hundreds of large companies, to appeal to low-income consumers, it
priority. We completely transformed our home-grown and multinational, acquired a small brewery in Zambia that
philosophy and approach and developed have already built successful specialised in a commercial version of the
a much bolder long-term vision of what businesses in Africa, but there is local home brew made with sorghum and
Africa could deliver.’ One element of room for many more. maize. SABMiller would eventually market
that new strategy was an aggressive Africa has huge unfulfilled demand, the brew as Shake Shake (you really do
programme of brewery building across making it ripe for entrepreneurship have to shake the brew before drinking
the continent. With its equipment- and innovation at scale. because of the sediment) in a dozen
supplier partners, SABMiller developed You can achieve extraordinary countries. At the same time, SABMiller
a standardised ‘brewery in a box’ that it growth and profitability – also made a strong play for consumers
could quickly assemble. A second element provided you manage to get your higher up the income pyramid. It launched
was to hone its marketing insights: using strategy and execution right. Castle Lite, a South African beer brand,
the brand-positioning approach it had in multiple African markets, targeted
developed globally, SABMiller created to Nigeria. And in a country where it can at ‘upper mainstream’ consumers at
a diverse portfolio of African brands take up to six hours to earn enough to a price premium. ‘We were spectacularly
tailored to local markets. buy a half-litre of beer, SABMiller priced successful with Castle Lite,’ Bowman
the brew 25% below the market-leading said. ‘The consumer proposition was very
In Nigeria, for example, SABMiller Star brand. Bowman recounts the launch strong and simple: an ice-cold reward that
developed a new brand, Hero. ‘Our head of the Hero brewery, an event attended is much healthier and better for you.’
of marketing in Nigeria convinced us that by Nigeria’s then-president, among other
this was the right name, because people luminaries. ‘Three or four distributors As Bowman reminded us, though,
saw themselves as everyday heroes, came up to me and told me the history it takes more than a smart strategy
heroes of their own story,’ Bowman told of the Hero brand – even though it was to succeed in Africa. Underpinning
us. SABMiller wanted the new beer to totally new! They’d completely bought SABMiller’s growth was a mindset of
come across as local, not the product it in their minds. It turned out to be one winning: ‘Right from the beginning, our
of a multinational. It designed the label of the most successful brands we ever people had a can-do attitude. They just
with a rising sun, a favourite symbol of launched, and our production was never went out there and built the business.
the Igbo people, an ethnic group native able to keep up with demand.’ SABMiller’s They were the real heroes of this story’.
approach to brands also took into account
the huge differences in spending power

kulula.com JANUARY 2019 161



THE WRITING ON THE WALLS DISCOVER

pictuWroers:ds:xxKxexitxhxxBain, Picture: Melissa Cucci ar tSMART industrial neighbourhood that’s been renowned Turin-born artist famed for his
undergoing steady transformation thanks extraordinary use of earthy hues in his
T his adorable pup is by Belgian to makeovers performed on its old large-scale murals. The festival includes
street artist Bart Smeets buildings. The festival’s theme this year is guided tours and workshops and the
and is the billboard for Cape ‘Generation Next’ and it will see 20 high- opportunity to watch the artists at work.
Town’s upcoming International Public Art calibre artists, half of them international, Oh, and if you want to check out Bart’s
Festival. Whether you call it graffiti or adding their creative visions to exterior wide-eyed puppy, head for Harrington
street art, there’s no denying the capacity surfaces throughout the precinct. Among Street and look up. 9–17 February,
of works such as this to revitalise grey this year’s participants is Pixel Pancho, a ipafest.co.za.
and decaying precincts. The festival, now
in its third year, happens in Salt River, an

kulula.com JANUARY 2019 163



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