Portfolio Committee On Communication

1. Portfolio Committee On Communication Café submission on Marketing Communications Industry Transformation

2. An overview of the transformation issues in the industry; Transformation constraints and limitations for the industry; Suggested strategies to address issues, constraints and limitations Appendices Appendix 01 - Introduction to cafe (black paper & constitution) Appendix 02 - Design Industry transformation paper (2001) Table of contents Doing Our Thing

3. Overview • AA, BEE, Affirmative Procurement not clearly understood, individually or as a framework • Industry grappling with shortage of skills across the board and its own misperception that PDI’s, for not having participated in the industry, lack relevant skills • Limits potential for hunting skills from outside that may well turn the tide • Frustrated PDI’s and change agents • Hostile agency working environments typified by passive resistance to transformation • informal networks see to maintenance of status quo • Loose management commitment to meaningful and lasting transformation • beyond recruitment to participation in value creation • Industry an unattractive employment prospect • Loss of talent to other sectors and overseas employers • Low visibility of PDI’s in sector • Industry unknown as a career option therefore limiting number and quality of applications • Opportunistic recruitment industry • Keep them moving, collect the fees, forget about matching people to developmental opportunities Doing Our Thing

4. Transformation constraints and limitations Unless we understand the constraints to the transformation process and constraints upon the industry and attendant limitations, we can very speedily kill rather than transform the industry for better Equally, unless we get beyond constraints and excuses for not transforming, we can commit a greater crime and allow an unacceptable status quo to be maintained rendering empty the gains made some 8 years ago when our journey towards a better South Africa, and our true destiny, was patiently confirmed by the people of this great nation in waiting

5. Constraints • Dearth of skills • Strategic • Creative • Business/Commercial • Low margins • Transformation costs money and an unprofitable industry cannot respond meaningfully to change • Incentives needed for voluntary transformation over and above DOL initiatives aimed at making training less onerous on business • Awarding of government and parastatal accounts to cosmetically transformed agencies whose core industry competency (creativity) is seen to be lacking • Private sector indifference or limited commitment to empowerment • Agencies CAN and DO thrive without government/BEE sensitive accounts • Balance need for empowerment (distinctly South African) with need to keep industry vibrant and globally competitive Doing Our Thing

6. Limitations • Need to keep the industry alive • Entrenched position of established players and widely known fact that PDI’s cannot go it alone throughout industry • Limited focus on advertising agencies vs. entire value chain • Agencies just collect the money from clients and keep a bit with narrow margins (16.5%-18.5%) • it’s safer to keep money in the bank than finance a venture given the low returns • Where does the marketing communications Rand go and is the inquiry focussing sufficiently on related industries? • Private sector players upon whom the marketing communications industry is mostly reliant not doing enough • Financial Services, FMCG, Retailers, Cellular, etc. • Engagement of industry bodies is urgently needed to get THEM to commit to transformation and walk their talk!!! Doing Our Thing

7. Suggested strategies to address issues, constraints and limitations Possible Way[s] forward

8. Wider Industry/sector engagement Clear policy guidelines Shared Vision of a transformed industry Government spending incl. parastatals Enabling legislation Strategic framework Doing Our Thing

9. Strategies…/ • Continued engagement with industry and sectoral stakeholders on issues to be addressed • GCIS-DOC sessions with industry must continue and be broadened to address the entire value chain (upstream, downstream and side-stream!) • Clear policy guidelines for desired industry (and sector) self regulatory regime • Industry has expressed a desire to determine its own transformation agenda and while this is desirable, an enabling framework is needed • While industry wishes must be respected, we cannot hold change hostage to comfort zones of the very target of the transformation • How can we trust the proverbial wolf to guard the very sheep it’s been gorging itself upon hitherto? • Minimalist legislation to shore up regulatory framework linking industry transformation to overall employment equity and BEE agenda • While the ACA transformation charter is a sound starting point, however minimalist in its approach, a clear cut set of objectives and penalties is urgently required • There is a lack of accountability and potentially therefore, a lack of sincerity to the transformation agenda Doing Our Thing

10. Strategies…/ • Continue to leverage and extend direct and indirect government spending power and influence • Revisit point scoring system to treat empowerment as more than a qualifying criteria as with other criteria • Minimum empowerment, minimum points • Increase minimum empowerment stake requirements on tenders (quantitative dimension), in particular employee equity participation • ‘brand name’ transactions are potentially crowding out internal management equity participation and entrenching personalities rather than widening ownership • Broaden supplier requirements to include internal transformation (quantitative and qualitative) with stricter reporting requirements • Affirmative Action from bottom up including board level • Affirmative procurement • Introduce more stringent transformation reporting requirements on agencies that are awarded government and parastatal accounts Transformation must make commercial sense and equally, lack thereof commercial suicide (stick) Doing Our Thing

11. Thank You! Let us together make this a lasting transformation from which all other industries can learn and proactively transform themselves lest we find ourselves telling the generations coming that they too must stand at the gates pleading for economic justice, as previous generations have and continue to do, rendering empty the promise for justice and equality guaranteed by our constitution

12. Appendices Appendix 01 - Introduction to cafe (black paper & constitution) Appendix 02 - GCIS Draft Submission 01 on industry transformation (2001) Appendix 02 - Design Industry transformation paper (2001)

13. Appendix 01 Introduction to cafe

14. Who are we? • communication and advertising forum for empowerment • in keeping with our vision, all activities will be conducted under the name communication and advertising forum for empowerment hereinafter to be known as cafe. Doing Our Thing

15. preamble • the art of advertising is as old as the hills of africa. the drum. the horn. the spoken word. the music. these were the notable vehicles and instruments of advertising and communication in traditional african societies. • there were revered practitioners of the craft whose task it was to send, receive, decipher and disseminate messages. from valley to village. from hillside to hilltop. across plains. across mountains. upstream downstream. from sea to sea. the bush telegraph was alive. • interwoven with the advertising and communication craft was a pool of specialised resource. izimbongi, poets, musicians, singers painters, sculptors and various artists adept at what they did. Doing Our Thing

16. preamble cont…/ • it is our desire to re-establish the nexus that was systematically severed by imperialist colonialism and all its ramifications. therefore, we resolve to harness our expertise and resources and strive for the creation and promotion of an environment where we, as the custodians of this rich heritage, shall claim our rightful place in africa and the world as conceptualists, creators, disseminators, deciphers and managers of the art and craft to meet the challenges of the future. • we shall always hold high the african heritage and live up to its esprit de corps. we shall further harness the richness of the african literature and create networks amongst black advertising and communication practitioners as well as related industries. we will stand in oneness in the process of acquiring and assuming space, place, position and ground that will serve as an enabling path for more and more black practitioners within the industry. Doing Our Thing

17. vision • to ceaselessly strive for the creation of an industry that reflects the demographic profile of the country in all aspects by encouraging participation and involvement of blacks in all relevant industry bodies and institutions with a view of transforming these and imbuing them with a truly south african character. furthermore, to work for the creation of an environment conducive to the birth of a truly south african communication and advertising industry. With that a uniquely south african and africancentric creative aesthetic shall come into being Doing Our Thing

18. mission • to organise, facilitate and engage in activities designed to enhance and propagate transformation and empowerment within the industry. • these activities shall include both the social and professional aspects of our business. to establish a code of conduct that will facilitate a speedy and effective transformation of the industry. • to see to the application, execution and implementation of the equity bill within the industry. Doing Our Thing

19. objectives • to lobby for substantive representation and black empowerment in the industry • to propagate transformation of the industry into one reflecting the country’s demographics • to create a platform for the communication of african values • to raise funds for black creative development • to create a platform for networking and interaction amongst blacks in the industry • to lobby for the respect, inclusion and understanding of african culture and language in all aspects of creative communication • to promote the assumption of position, place, space and power by blacks within the industry Doing Our Thing

20. membership • membership of the cafe is open to anyone in the advertising and communication industry, including related services, who believe in and/or share the vision as stated in this document. membership fee • for the forum to live up to its goals and ideas and to create an infrastructure that will see to the realisation of its objectives, it must be able to access funds. membership will be conferred on individuals upon payment of a sum of money determined by the board being the highest policy making body. Doing Our Thing

21. modus operandi • to promote and pursue its mission the café shall organise, facilitate and engage in activities designed to enhance and propagate transformation and empowerment within the industry. these activities shall include both the social and professional aspects of our business. • all activities and functions of the café shall be conducted through the guidance of an elected board of trustees. Doing Our Thing

22. policy the annual general forum will be highest policy making organ of café. this organ will comprise all members in good standing and fully paid up. amendments, emendations and changes to the black paper shall only be effective after a majority vote in favour of such at the agm in session. Doing Our Thing

23. board of trustees a board of trustees will be created and registered as a non-profit making organisation to run and oversee the activities of cafe. the board of trustees, ten in number, who will be elected in office for the turnover of 24 months with three returning trustees remaining to facilitate a continuum, will be entrusted with the function of giving leadership, guidance and a strategic direction to all policy related issues of cafe. the day to day management of activities and the execution of functions of the cafeshall be conducted through an appointed executive secretariat. Doing Our Thing

24. the executive secretariat • the executive secretariat shall, within its mandate, set up or cause to set up structures that might be necessary to facilitate the pursuance of the mission and objectives as stated in this document. such structures may include, projects that are in line with the fulfillment of the mission of cafe i.e. a bursary fund, a development fund, sub-committees and other structures or organs necessary for effective and efficacious the running of cafe. • the executive secretariat will be the administrative arm of the forum and will comprise of the following: • executive co-ordinator • general secretary • treasurer • public and media liaison officer • three committee functionaries Doing Our Thing

25. governance term of office of the secretariat • the term of office shall be limited to twelve months for all members of the secretariat. all members of the secretariat shall be eligible for re-election. notwithstanding the afore-going, no member of the secretariat shall be eligible for re-election for more than two consecutive terms of office. voting • the board of trustees shall be elected through nominations from cafe members. after being seconded, the candidates shall be put to vote. the elected shall conduct elections for the chairperson of the board and all other functionaries. • the executive secretariat shall be appointed by the board and will remain subject to the direction of the board and be accountable to cafe members through the board. Doing Our Thing

26. confidentiality • the forum shall at all times respect the confidential and sensitive aspects of our industries. while members will be encouraged to interact and conduct business of cafe as much as possible, breach of business confidentiality norms will not be countenanced. • all intellectual and physical property rights vest with the cafe and no member/s may use these in any way save by written consent from the secretariat. Doing Our Thing

27. our motto doing our thing Doing Our Thing

28. Appendix 02 Design Industry Transformation2001 Proposal