http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: -0.16
R/$ = 12.07Change: -0.10
Au 1204.60 $/ozChange: 1.40
Pt 1170.50 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 13, 2012

Barloworld chief reflects on organisation’s far-reaching restructuring

Back
Barloworld|Caterpillar|Concrete|Contractor|Industrial|Industrial Equipment|Testing|Training|Russia|Capital Equipment|Equipment|Equipment Giant|Industrial Conglomerate|Industrial Equipment|Logistics|Service|Services|Clive Thomson|Infrastructure
Concrete|Contractor|Industrial|Industrial Equipment|Testing|Training||Equipment|Industrial Equipment|Logistics|Service|Services|Infrastructure
barloworld|caterpillar|concrete|contractor|industrial|industrial-equipment-company|testing|training|russia|capital-equipment|equipment|equipment-giant|industrial-conglomerate|industrial-equipment|logistics|service|services|clive-thomson|infrastructure
© Reuse this



The delivery of services in challenging environments, financial or physical, and the fulfilment of challenging contracts set companies apart in tough financial times, while the active manage- ment of changes to a business can effectively develop a company in challenging conditions, says industrial equipment and logistics company Barloworld CEO Clive Thomson.

Barloworld underwent significant restructuring and unbundling in 2007, changing from a multinational industrial conglomerate to a capital equipment and logistics-focused company.

In 2010, during the height of the global financial crisis, the company set itself the goal of tripling its market value by 2015 through incremental growth and niche or strategic acquisitions.

Thomson notes a critical component of managing change is a focused execution, specifically on incremental and achievable objectives, the involvement of employees and the development, recruitment and retention of core competence skills.

“Do not clutter your targets. Keep them focused and have measurable objectives over shorter timeframes to assess progress. Further, each division’s management must use the overarching concrete objectives to define measurable and aligned aims for that division.

“The execution of a strategy is what is mostly lacking in corporate restructuring. How do I position myself for growth? How do I change what people do from what they have always done to what the strategy demands?” he asks.

Different skills are often required to effect a change in strategy. This requires firm alignment between the corporate strategy and employee training, performance management and incentive rewards.

“Customers want to shift their risk to you. However, if you manage to deliver the services effectively and efficiently, you will also see commensurate returns for the increase in risks.”

In Russia, the company bought the earthmoving equipment giant Caterpillar dealership for R363-million in 2007. It took the company five years to generate returns in the territory, owing to testing conditions such as subzero winter temperatures and muddy summers that bogged down logistics. However, yearly revenue from the territory is currently about equal to the initial purchasing price, explains Thomson.

“You need a can-do attitude in management. You need to go out there and do what others cannot, which is what will set you apart.”

The risks in emerging markets, owing to difficult operating conditions and a lack of supporting infrastructure, are significant, but there are significant growth prospects for companies that can manage those risks and deliver successfully on contracts, highlights Thomson.

Clients will often demand that a contractor or service provider intimately under- stands their industries and the nuances across different territories. This necessitates a high level of technical skills from the contractor or service provider.

However, a company can deploy its tech- nical experts where they are needed and recruit local managers who have a good knowledge of the local conditions, languages and culture.

“Send your best Romans. Expatriates are ambassadors of your corporate culture; however, do not underestimate cultural differences and do not overestimate poten- tial synergies. In fact, there may be dysergies present that you may not have expected, which is why you need your best people and local knowledge,” explains Thomson.

Barloworld grew its share price from R43 a share in 2007 to R83 a share in 2011. Thomson was speaking as a guest at the Gordon Institute of Business Science in June.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
As is well known, at the end of last month, retired General Muhammadu Buhari defeated incumbent President Goodluck Jonathan in Nigeria’s Presidential elections. A northerner and a Muslim, Buhari won a majority of the votes in predominantly Christian States in the...
More
 
 
Latest News
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Blom was surprised by the recent buoyancy shown by...
JSE-listed Astrapak will sell specialised packaging systems manufacturer Knilam to Mapflex SA for R17.7-million. The proceeds would be used to reduce Astrapak’s current level of gearing.
The last of the 26 mooring units comprising the Port of Ngqura’s automated mooring system (AMS) have arrived at the port and are expected to improve port efficiency and safety, further driving the Transnet National Ports Authority’s (TNPA’s) objective of establishing...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Sappi Southern Africa CEO Alex Thiel
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96