http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.88Change: -0.10
R/$ = 15.88Change: -0.04
Au 1237.82 $/ozChange: 0.47
Pt 955.50 $/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 About 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
Creamer Media Senior Deputy Editor
© Reuse this

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
Former Cosatu general secretary Zwelinzima Vavi
President Jacob Zuma’s State of the Nation Address (Sona) showed a breakdown of trust between government and the population of South Africa, according to former Congress of South Africa Trade Union (Cosatu) general secretary Zwelinzima Vavi “Yesterday’s Sona address...
Atterbury Property Developments director Coenie Bezuidenhout
Atterbury Property Developments is developing a R850-million, 103 000 m2 industrial and business park at the intersection of the N3 highway and Rand Airport road, next to the Elandsfontein interchange. Atterbury designed the park on a site it acquired in Gosforth...
Jacob Zuma
President Jacob Zuma has said a greater investment in the country’s infrastructure would assist it during tough economic times. Zuma was speaking at the post State of the Nation discussion at the The New Age Business brief held outside Cape Town.
More
 
 
Latest News
The Competition Tribunal on Friday gave a conditional go-ahead for mobile operators Cell C, MTN and Vodacom to buy out their respective subscriber bases, as South Africa’s last independent service provider Altech Autopage calls it a day. The Allied Electronics...
The drought in Southern Africa could become one of the worst on record should the current below-normal rainfall continue, the United Nations (UN) World Food Programme said this week. The El Niño conditions presently being experienced in the region had resulted in a...
Kelibone Masiyane has been appointed the new MD of PPC Zimbabwe, succeeding Njombo Lekula, who had recently been redeployed as MD of PPC’s international operations. Masiyane would be supported by new PPC commercial director Iain Sheasby and new PPC GM of finance...
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
 
 
 
 
 
This Week's Magazine
WIDENING FLEXIBILITY The trailers have a 3-m-wide (2-file) and 4.3-m-wide (2-file) configuration
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.
 
 
 
 
 
 
 
 
 
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 $149 Close
Subscribe Now for $149