When multinational optical and opto-electronic technology company, ZEISS South Africa, wanted to improve its Broad Based Black Economic Empowerment (B-BBEE) status, it enlisted the services of BEE advisory and project management company, NPI Governance Consulting to assist it.
Since then the two organisations have formed a strong partnership that has seen ZEISS improve its B-BBEE status and commit to a social responsibility and skills development spend of about R2.5 million over the past five years.
In addition, the partnership has seen NPI Governance Consulting grow from a one-man operation in 2012 to the first ISO 9001 accredited BEE consulting firm, employing six people in junior management and internship positions and servicing a client base of 45 corporate companies.
ZEISS CEO, Gail Giordani, says ZEISS has been represented in South Africa since 1939, but has been a wholly owned subsidiary of Carl Zeiss Germany since 1974. “Because of our multinational status and the fact that we are a foundation, BBBEE compliance presented a challenge to us.
Giordani says ZEISS was introduced to Israel Noko, founder and CEO of NPI Governance Consulting, in 2012. “As a qualified lawyer, who had made it his business to understand the intricacies of the B-BBEE landscape, he brought tremendous knowledge and insight to the table. In addition, his ideologies of what B-BBEE should encompass aligned perfectly with our own ideas and ethos.”
Noko says when he met ZEISS back in 2012, he was running his business from his lounge. “ZEISS was one of the first customers to take me seriously. Once I’d proved myself to them, the partnership grew. In addition to assisting them in obtaining a BEE compliance scorecard, we helped develop a long-term B-BBEE strategy for ZEISS.”
Today NPI manages the enterprise development contributions as fund managers for ZEISS and works closely with SMEs to ensure long-term sustainability. It also provides advice to ZEISS on BEE Equity Equivalents and other ownership options.
Giordani says as ZEISS’ enterprise development partner, Noko was able to grow his own business. “This is part of what BEE is all about – ensuring the sustainability of black businesses and helping to create more jobs.”
Noko says his business services a diverse group of corporate clients. “None of our clients are government bodies and we have grown the business without tenders. In addition, we don’t have one anchor client – so all our eggs are not all in one basket.”
Diversification is part of ZEISS’ vision too. “ZEISS has diversified its supply chain considerably and today a significant proportion of its procurement spend is with black female-owned businesses. In addition, 100% of its suppliers are BEE compliant,” continues Noko.
To further add to its scorecard, Giordani adds that 6% of the ZEISS payroll is spent on learning and development initiatives. “The company has a big learnership programme and learners receive training in South Africa and Germany, where the company is headquartered.” Noko assisted ZEISS in formulating the programme to address the shortage of clinical engineers in the country. The majority of learners at ZEISS are clinical engineers from the Tshwane University of Technology and at any given time our staff complement is made up of 10% learners. In addition, our absorption rate of learners is about 80%.
“Israel has also guided us with regards to socio-economic spend and we have invested in some exceptionally good causes that make a tangible difference in the lives of previously disadvantaged people,” she says.
Noko concludes that his most successful relationships with clients are built on mutual trust and respect. “As with any relationship, it’s a two-way street and more likely to succeed if both parties are committed players, as ZEISS was with their transformation programme.”
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