Early Warning - All About Procurement Fraud – Part 6

 Early Warning - All About Procurement Fraud – Part 6

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

Last time we looked at some of the different types of issues that need to be looked at around procurement.  

Today we will have a look at some more.

As we said one of the ways to limit procurement fraud is to ensure that you have a proper procurement policy in place and that it is adhered to and checked on a regular basis. We looked at the Needs Analysis, Timing and Suppliers. Then we looked at Supplier Communication and Negotiation and then Supplier Liaison, Logistics Management and Tender Notification. Other issues that need to be taken into account when implementing the procurement process are (but not limited to):

In this the final issue on procurement fraud let’s look at some of the practical processes that can be included (but are not limited to) in your procedure in order to limit fraud.

- Make sure that the procedure is that there has to be a minimum of 3 quotes.

- Make sure that all the suppliers, who have submitted quotes, have contactable references and do the reference checks.

- The person, in your company, who submits the quotes, should not be the person who authorizes the use of the supplier (unless of course that is you – the business owner).

- The person, in your company, who orders the products/supplies/service, should not be the person who authorizes the purchase (again, unless of course that is you – the business owner).

- The person, in your company, who pays the supplier should not be the person who authorizes the payment (unless of course that person is you – the business owner).

- There should be a valid gift policy in place to govern/prevent your employees from receiving gifts as kick-backs from suppliers or service providers for ensuring that they become creditors.

- The most expensive quote does not always translate into the best value for money – make sure that the research is properly conducted to ensure that you get the best value for your money.

- Make sure that you have a proper Service Level Agreement in place, with realistic consequences for non-delivery and to ensure that you are properly covered in terms of compliance.

Finally, use common sense – if the deal is ‘too good to be true’, it usually means exactly that.  Always be alert for charlatans and scammers as they are always on the look-out for gullible business owners.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

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Part 1

http://www.viljoenconsulting.co.za/2012/12/early-warning-all-about-procurement-fraud-part-1/

Part 2

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-2/

Part 3

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-3/

Part 4

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-4/

Part 5

http://www.viljoenconsulting.co.za/2013/02/early-warning-all-about-procurement-fraud-part-5/

Networking 101 – Building a Reputation

 Networking 101 – Building a Reputation

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

One of the greatest rewards for me, from networking, is that I get to build a reputation.

My reputation (and yours should be exactly the same) is of the utmost importance, not only on a personal level but also from a business perspective.  You see my reputation is an integral part of my Branding.  Word of mouth or referral is the quickest way in which to Brand myself and believe it or not, perception is the quickest way to destroy it!

Some people say that your face is one of the biggest ways to build your reputation – by your face you are instantly recognizable.  I am constantly amazed by the number of people who come up to me and greet me by name and I have no idea who they are.  You see my face (and therefore my brand) is up on every profile that I am on, all over the web!

That in itself, however, is not enough.  Everything you say or do is part of your branding too, whether you like it or not.  In short, YOU, the individual are your own brand both from a personal perspective and so too from a Business one.

During the course of this week, I was paid a huge compliment by a very new client, who has just outsourced their payroll and Accounting.  They mentioned to the Accountant, that they had just undergone a compliance and administration audit and that there was a great deal to be done.  The individual who will be doing their books and payroll asked if by any chance the audit was done by “Nikki Viljoen of Viljoen Consulting” and when they confirmed that it was, this person apparently answered, “ok that’s fine then, everything will be sorted out and resolved!”

Fabulous - don’t you agree?  Now here comes the clanger!  I have never, ever even heard of this individual or the Company!  

That’s my reputation!

A lesson I learnt as a very young child, under the age of 8 years old actually, was from my father who said “You cannot be held responsible for the name that you bring into this world because it is the name that I gave you – but the name that you take out of this world is the one that you make for yourself!”

These words have stood me in good stead all of my life, and clearly, they have made a difference to me and the manner in which I have built my reputation. This is evident in the way that people view me – my reputation appears to precede me.

What about yours?  Ask yourself – what is your reputation?  What is your Brand and if you don’t like what you see or what you have answered, how are you going to change it and turn it around?

Nikki Viljoen is an Internal Auditor and Business Administration Specialist and she can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

Business Tips – Planning to Succeed – Part 1

 Business Tips – Planning to Succeed – Part 1

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

It’s no secret that in order for you to succeed in life, there has to be some sort of plan and obviously, this also applies to business success as well.  In fact, I would even go so far as to say that the “devil is in the detail”.  The more information and detail in the plan, the more you can “measure” yourself to see how you are doing and the more likely it is to succeed. I always say that if “Cash is King” then Clarity has to be Queen!

The problem of course is that many folks have no idea what needs to go into a plan and this statement is backed up and evidenced by the many businesses that fail because individuals have failed to make plans or set goals of any kind.

Here are some guidelines on what you need to look at in order to plan properly.

Vision

Your vision, of course, is your dream or your intention.  It is the ultimate goal.  It could be something as dramatic as having your particular product in every home in the country by xxxx date or as simple as providing training to 500 SMMEs (small, medium, micro-enterprises) on a monthly basis.

What it should perhaps include however is what kind of product and why it should be in every household or what kind of training and why it will make a difference.

Mission Statement

For me, the mission statement is a simple plan on the “how-to” to achieve your vision.  So how do you intend to get your product into every household or how do you intend to get the SMMEs into your training?  At this stage, I wouldn’t go too in-depth but rather have the basics down as these can be fleshed out at a later stage or as and when you get to the information that you need.

At this point, it is also a good idea to start getting your figures in place – the budgets.  Number crunching is not always as difficult as we seem to think it is – just start with the basics and then the detail can be fleshed out from there.

Culture Statement

I must admit, when I ask this particular question, I am often met with a very confused look as well as the statement - “The What . . . . ?”  Every business has a culture and pretty much like we are “masters of our own destiny”, we also have a choice about the type of culture we want our businesses to be.  The way that you deal with customers and your suppliers or your staff would largely affect the type of culture that your business will become. In many instances, the culture of the company is determined by ethnic or religious influences but whilst we may be influenced by these external factors, it is equally important to ensure that our ethics also influence the culture of the company.

Often, it’s “Who we are” and our beliefs (and I am not talking about religion here), that is what attract people to do business with us.

Goals

Whether we want to admit it or not we all have goals – some of them are really simple and we make them without even thinking, like “I need to get to work by 08h30am this morning”.  Of course, that is a goal – is it one that you need to write down – not necessarily.  Some of them can be seriously difficult and complicated, well actually – if the truth is told, we make them seriously difficult and complicated.

For me, the easiest way to put my goals into perspective is to break things down into bite-size chunks.  Where do I want to be in a year or two years or three years or even five years?  That’s the end goal – then break it down into the components – what do I need to do to get there and how long will that take me.  Once you have written all of that down, it is easier to set goals with timelines, be those timelines hours, days, weeks, months or even years.

Let me give you a simple example.  I want to paint my home and I want it done and completed at the end of say 6 months.  What do I need to do to get that done? What is the budget? How many rooms are there and in which order will I paint the rooms.  What has to be done before I can paint (preparation), how long will that take me for each room (preparing the walls, covering or moving furniture, purchasing paint, brushes, etc.)?  What has to be done once the room has been painted (clean-up and uncovering and moving furniture etc.).

Now I have an idea of all the tasks that must be done and I can assign a time frame to each and if my time frames are reasonable and I stick to them, I can complete my task within the time period that I gave myself or not – you see here I can now adjust my “end result”, if that is what is required.  I have documented my goal and set a plan in place in order to achieve my goal – I can measure myself at every step along the way and see how I am doing.

In the same way and in every aspect of your business, this simple type of goal setting and planning can be implemented to ensure that you achieve whatever it is that you wish to do.

Next time we will have a look at the rest of the guidelines that I spoke about at the beginning of this blog.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

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Part 2

http://www.viljoenconsulting.co.za/2016/01/business-tips-planning-to-succeed-part-2/

Inspiration – The Wise Man

 Inspiration – The Wise Man

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

The quote today comes from Naguib Mabiuz – author, who says “You can tell whether a man is clever by his answers.  You can tell whether a man is wise by his questions.”

I have a pet hate, actually to be completely honest – I have several pet hates, but for the purpose of this piece, I have a pet hate.  That pet hate is people who don’t ask questions!

Not, I’m not talking about asking questions for the sake of asking the question – I am talking about asking the question because you don’t understand the statement!  Believe me, there is a huge difference.

Those of you who know me, know that I run a workshop on “A Practical Guide to Starting a Business”.  I have facilitated the course with people on a “one on one” basis and I have stood in front of a group of people and delivered the same course material.  In both instances, I have received “blank stares” from equally “blank faces”, when, as I go through the course material, I have asked the question (that I am sure most of you who have delivered any kind of course material, asks from time to time) “Do you understand what I have just said or would you like to ask a question?”

I am not sure if it is because people are scared of looking like a fool, or what the reason is, but somehow, somewhere, someone has no idea of what it is that I have just said and they don’t ask any questions!  I cannot understand this at all.  You see for me, a person looks more like a fool if they tell me that they understand something when they don’t because when it comes to doing the practical side of things and they can’t do it.  I am often heard saying that “the only stupid question is the one that you do not ask”.

I’ve got to the point now, from pure frustration, where, when people tell me that they understand what it is that I have just said, I ask them to firstly repeat what I have said and then secondly I ask them to tell me in their own words what they understand from the statement – you’d be amazed at the different kinds of answers that I get!  Some of them would be really amusing if the situation were any different.

So ask the question, it doesn’t matter how stupid you may think that you look or feel – but at the end of the day, you will be the one that understands the content and you will be the one that will stand “head and shoulders” above the rest.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za 

HR 101 - It’s How You Play The Game – Part 2

 HR 101 -  It’s How You Play The Game – Part 2

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd - September 2009 

Please note that this pertains to South African Labour Relations, The Basic Conditions of Employment Act and Best Practice requirements.

Following on from last week – the decision on the part of the Arbitrator or Commissioner is particularly unfair and in this instance, it is incumbent upon the “wronged” party (be it the employer or the employee) to challenge the decision via a review at the Labour Court.

What does this mean?

Well for starters the challenge can be made on the grounds that the Arbitrator took a bribe, or was biased,  that there was important information or evidence that was ignored or that they failed to arrive at a reasonable or proper award. You see the CCMA Arbitrator has to “weigh up” and consider all the evidence, both oral and documentary, prior to embarking upon the process of making factual findings.

Therefore: 

• The Arbitrator’s judgement cannot be about their own opinion, but rather the judgement has to be based on the facts presented. 

• The decision must be made by following reason and not based on fantasy, guesswork, “hallucination” or speculation of any kind.

• The Arbitrator must have applied their mind seriously to the issues at hand and not treat them or the charges as some sort of joke.

• The Arbitrator is required to justify their findings in a defensible and logical manner. They must be able to give solid reasons for the decision that they have come to and why.

• The decisions must comply with the law.

• The decisions must be rational.

Now here’s the kicker – the Arbitrator’s reasons for giving all of these decisions must be given at the time that they render the decision, otherwise it can be assumed that they did not actually have a good reason for making the decision that was made.

The bottom line is that both parties have the right to know why or how the Arbitrator came to their decision against them so that they can decide whether or not and how to challenge the decision that has been reached.

This is one of the controls that have been put into place to try and ensure that Arbitrators don’t make “faulty” decisions.  The thinking is that if the Arbitrator has to explain their actions they will be less likely to ignore or misrepresent the facts and evidence that was put before them and ensure that a fair decision is reached.

So the Arbitrator has to have considered all the serious objections and all the alternatives to the decision that they have made.  They have to provide a rational connection between the facts that were presented and their ruling.

This also places a requirement on employers and that is that they too must have a good reason when acting against employees and they too must be able to provide these reasons clearly and comprehensively to the Arbitrator.

For the employer, this means having all their ducks in a row, facts and evidence readily and professionally at hand and good presentation skills.  Emotion does not play any part here – simply state the facts and back them up with the evidence, witnesses and whatever else that you have at hand.  This will show the Arbitrator that you have followed the procedures correctly and your reasoning for instituting disciplinary measures and they, will in all probability have to follow your line of reasoning.

In this way, you as the employer help the arbitrator find in your favour.

Of course, this does mean that the employer has to ensure that all management decisions are made unemotionally and in line with the law and that all the requirements in terms of policies and procedures have been met.

As always, if you are in any kind of doubt, don’t try and do this by yourself, rather get professional help.

 Nikki is an Internal Auditor and Business Administration Specialist who can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

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HR101 – It’s How You Play the Game – Part 1 - http://www.viljoenconsulting.co.za/2018/11/hr-101-its-how-you-play-the-game-part-1-2/

 

Early Warning - All About Procurement Fraud – Part 5

 Early Warning - All About Procurement Fraud – Part 5

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

Last time we looked at some of the different types of issues that need to be looked at around procurement.  

Today we will have a look at some more.

As we said one of the ways to limit procurement fraud is to ensure that you have a proper procurement policy in place and that it is adhered to and checked on a regular basis. We looked at the Needs Analysis, Timing and Suppliers. Then we looked at Supplier Communication and Negotiation. Other issues that need to be taken into account when implementing the procurement process are (but are not limited to):

1. Supplier Liaison

Of course, it is important for the supplier to perform and at this point in the process that is exactly what needs to be done.  It makes sense therefore to have some sort of scorecard in place around the performance of the supplier.  By now there should have been at least one or two deliveries and re-orders and the whole experience needs to be evaluated.  Should the supplier have not met your basic requirements, then it is obviously time for you to consider alternative suppliers or options.

2. Logistics Management

Whilst we all have expectations around our suppliers and their delivery of our goods, it is incumbent upon us to ensure that we manage the whole process. Issues around (but not limited to) shipment, delivery and payment need to be monitored closely and of course, the terms and conditions of the contract must be met at all times.

There may be instances where an “installation” needs to take place and then training needs to be effected.  Clearly, this would also need to be monitored carefully as well.

3. Tender Notifications

Should your company be large enough to require or need tenders to go out to meet your procurement requirements then obviously this would necessitate a whole different workflow.  There are software systems that can be utilized or you can also outsource these requirements.  Obviously, you can also keep this “in-house” but I would suggest that careful consideration be taken into how the whole process should work and of course a lot of research would need to be undertaken in order for this to be as painless as possible.

Be sure to document the process so that there are clear lines of what the requirements are and make sure that each step is monitored carefully.

Next time we will have a look at a few more steps that need to address in your procurement process.

 

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

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Part 1

http://www.viljoenconsulting.co.za/2012/12/early-warning-all-about-procurement-fraud-part-1/

Part 2

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-2/

Part 3

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-3/

Part 4

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-4/

>>

Part 6

http://www.viljoenconsulting.co.za/2013/02/early-warning-all-about-procurement-fraud-part-6/

Networking 101 - The Benefits of Networking

 Networking  101 - The Benefits of Networking

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

Dr Renate Volpe, in her nugget cards entitled “Networking Tips” says:

“Benefits of networking include:

• An enhanced power base

• Broader access to resources

• Expanding your sphere of influence

• Supportive mentorship of peers

• Successful new business transactions and relationships.”

Let’s have a look at these individually.

An enhanced power base.

Every time you get a referral from someone or someone new comes to a networking meeting, your own database increases.  As you increase your database, so your power base increases and your own personal “value add” increases exponentially.

Broader access to resources.

Now, this is a really important one – with the broader access to resources, comes a much bigger value add.  One of the jokes that I tell at some of the networking events is that I pretty much have a contact for most requirements – that includes a brain surgeon!  That has always brought out the chuckles and often nervous giggles.  Last week I actually had to use that contact for a friend who has been in considerable pain for a very long time and who needed a reputable neuro-surgeon.  Imagine for a moment, how she must feel right now?

Expanding your sphere of influence.

Man oh, man!  This is such a fabulous concept and so simplistic as well.  Let me give you some more detail – I have a friend and colleague by the name of Mirriam “Nuska” Zwane.  For those of you who don’t know her or of her, she is a multiple winner of the “Woman of the Year” award as well as numerous other accolades that she has picked up along the way.  Mirriam often sends me a mail, or someone will call me and say “Mirriam has asked me to contact you”.  I don’t question it, I don’t ask for motives or try and analyse why – I just set up a meeting at the soonest possible opportunity.  You see every time Mirriam sends someone to me, it's guaranteed work for me and the other individual irrespective of whether it comes from each other or from our databases.  Mirriam for me is a wonderful sphere of influence.  Go on – google her and see what comes out – she is a woman amongst women!

The powerful thing here is that Mirriam is known for her integrity and her credibility and I know, without a shadow of a doubt, that when she asks me to interact with someone, something very exciting is going to come out of that meeting.  So I often sit in the first meeting and say “I have no idea why I am here – Mirriam sent me, so tell me how can I be of help?”

Wouldn’t you like a “sphere of influence like mine” – I am pretty sure that you would!

Supportive mentorship of peers

I often hear people (especially in the SMME environment) say how lonely it is in business.  This is often because they work on their own, and often the only source of interaction that they have is with their clients.  Having a network of people and attending networking sessions allows for interaction with those people.  It is good for the soul – you will find that the problems that you encounter are usually the same problems that they too encounter.  The result of this of course is that you get to “brainstorm” with like-minded people and find practical solutions to the issues at hand.  

Suddenly you are not so “lonely” in business, you have a sounding board (well several really) and you have a multitude of expertise and experience available on tap.

Successful new business transactions and relationships

Don’t you just love meeting people?  Don’t you just love talking to people?  Oh about all sorts of things – and as the conversation meanders through business expectations and then through personal transactions and as you get to know that individual more and more, you get to learn more about their dreams, their hopes and their wishes and so in return to share your dreams and hopes and aspirations and they learn more about you as an individual and so a relationship is born.  As that relationship grows, so too does your trust and commitment to that individual and as that grows, so too will the business referrals.  You don’t have to become personally involved with the individual – you can just maintain a professional relationship and just as a good friendship is grown and maintained on solid honest foundations so too is a good business relationship.  They both feed and nourish the soul.

So when are you off to your next networking event?  Don’t you think you should start going, for your own sake and for the sake of your business?

For more information on Renate, please visit her website at http://www.drrenatevolpe.co.za 

Nikki Viljoen is an Internal Auditor and Business Administration Specialist and she can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za 

Business Tips – Why Twitter – Part 5

 Business Tips – Why Twitter – Part 5

By Nikki Viljoen – N. Viljoen Consulting (Pty) Ltd 

As promised last week, here are some additional tips on tweeting and the last in this particular series.

Isn’t the electronic age exciting?  I know that I am always on about the fact that I am a technophobe, but that is just because I don’t understand the technical jargon – on a logical level though, I do understand what different things can do and that, well that just confuses a lot of IT people who think that they can spin me a yarn and I will just accept it – that very seldom works, but I digress – again!

What I am trying to tell you is that technology makes things so much easier and instead of us trying to do everything ourselves, some really clever people have made it possible for us (with the use of links and automation) to do a great number of things with the click on a button.   For example, if you sign up for Tweetlater and set it up correctly (ok this is where you can’t ask me the questions as I don’t have a clue how to do this), it will automatically send a thank you message to all of the people as they “follow” you.  How clever is that?

The other really cool thing is if you link all of your social networking sites to your Twitter account.  That way everyone on those sites, are linked to you and that will also increase your following as well as increase the traffic that you drive to your website or blog.

Finally, don’t forget to look for a BIG/SUCCESSFUL person who is in the same niche market as yourself.  Once you have found them, follow them.  The fact that they may be big and successful in their own right, doesn’t exclude them from being a potential client of yours.  They may be doing research for something that they need to read up on and you may very well have the answer that they are looking for.

Be warned though, you will only be able to follow a maximum of 2000 people until you have 2000 people following you.  So set your targets and make sure that your followers are all around the same number of people that you follow and you’ll be ok.

Oh and as always, don’t forget to have fun!

Happy tweeting!

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

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Part 1

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-1/

Part 2

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-2/

Part 3

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-3/

Part 4

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-4/

Inspiration – Time Management

 Inspiration – Time Management

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd 

The quote today comes from William D. Reiff, who says "Without the management of time, you will soon have nothing left to

manage"

How many times do we not only say, but also hear the words “I don’t have the time ……”

I know that I have been saying it, probably several times a day for the last three months – this year certainly seems to have gotten away from me, I don’t know about the rest of you.

I am sitting here at my desk, after two days of doing literally nothing, with a huge guilty feeling hanging over my head, as I look at the piles of work that are sitting on my desk – I know that the work will get done, at some point and at a cost – the cost being to me, to my time.

Looking at my diary, everything neatly allocated, it would seem that I have designated my time very effectively and constructively and to be quite honest that is exactly what I have done.  The problem arises, with people who have not been allocated any time, but who now suddenly need it desperately. Ironically, it’s those same people (desperate for my time and who demand the most) who pay the least and who take the longest time to pay.

Yet - still my challenge is to say “No”!

So I guess my New Year’s resolution this year is to say the word “No” to those that need it saying to – once I have mastered that, my time management will be an absolute breeze!

So to all of us out there who do not have time – my question to you is the same one that I had to ask of myself!  

Do you know how to say “No” and even more importantly . . . mean it?

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za

HR 101 - It’s How You Play The Game – Part 1

 HR 101 -  It’s How You Play The Game – Part 1

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations, the Basic Conditions of Employment Act and Best Practice requirements.

There are often times that you will end up at the CCMA no matter how closely you follow the rules. Now I know that that sounds a bit harsh, but following the rules doesn’t mean that you will not end up at the CCMA, but what it does mean is that if you do end up at the CCMA, there is less chance of you losing your case.

Sadly there are also many cases where the “loser” at the CCMA is not only disappointed at the verdict but that they also appear to be quite shell shocked!  Most of the time these individuals were extremely confident of success only to have that confidence lying shattered at their feet.

The reality is that often it is not about right and wrong – it’s about how you play the game.  I just heard all the pins drop, the chins drop and the sharp intake of breath being rapidly inhaled and resulting in a shocked gasp!

You see the majority of cases are lost as a direct result of procedures not being followed, so you lose the case on those grounds.

But what about where you have followed every single rule, I hear you say?  Well here are some of (but not limited to) the main reasons people (both employers and employees) lose their cases.

• The case was weak without you realizing it or despite the fact that you thought it was a strong case.  Often this is because you did not have your case properly prepared, no documents or witnesses to give or confirm your evidence.  Your sense of outrage and your emotion here was actually stronger than the facts in the case.

• Then, of course, you have the situation where you actually do have an extremely strong case, the problem is that again you are inadequately prepared.  You don’t have the correct documentation or you failed to present your case in an understandable and convincing manner.  Pretty much like representing yourself in a murder case in a court of law.  If you don’t know what you are doing, chances are you will make a mess – so get some help!

• The worst of the lot is when it is genuinely unfair to the loser.  This is when you have a strong case, you have followed all of the procedures correctly, you have presented it in the proper manner, you are properly prepared with all of the correct documents, you have witnesses who have corroborated your evidence, in fact, you have done everything correctly, but the arbitrator has failed to appreciate your case and you lose.

This is the one that you really want to challenge and this is the one that you absolutely have the right to challenge via review at the Labour court.

Next time we will have a look at how to do this.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

>>

HR 101 – It’s How You Play the Game – Part 2 - http://www.viljoenconsulting.co.za/2018/11/hr-101-its-how-you-play-the-game-part-2-2/

Early Warning - All About Procurement Fraud – Part 4

 Early Warning - All About Procurement Fraud – Part 4

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

Last time we looked at some of the different types of issues that need to be looked at around procurement.  

Today we will have a look at some more.

As we said one of the ways to limit procurement fraud is to ensure that you have a proper procurement policy in place and that it is adhered to and checked on a regular basis. We looked at the Needs Analysis, Timing and Suppliers.  Other issues that need to be taken into account when implementing the procurement process are (but are not limited to):

1. Supplier Communication

Once you have sourced the supplier, irrespective of whether you have one supplier for each product or several suppliers, you need to obtain quotes and ask for a proposal.  It may be that you require additional information pertaining to the product and where it was sourced (for the Eur1 certificate if applicable).  It is important to have the correct contact details of the person that you will be dealing with in order to establish a good working relationship.

If this is a new supplier that you are considering, it is a good idea to get references (which of course must be checked properly). You may require samples so that you can check the quality or find out who to speak with when you have issues around repairs or maintenance or installation etc.  You may what to test samples so need both new and used products in order to conduct same.

Clearly the better the lines of communication the more successful the relationship will be, remember to be clear in your expectations and requirements.

2. Negotiation

I always say that assumption, perception, expectation and interpretation are the four most dangerous words in the dictionary because they seldom meet reality!

The reality of course is that there will always be a negotiation.  The client always wants to pay less for the goods and the seller always wants to sell more products for more money.

Make sure that your expectations are fair and clear.  Is the price right, are the goods readily available and if not what are the timelines for delivery?  Are the products standard or do they have to be customized and if so what does that entail? Delivery schedules should be put into place as well as payment schedules.

If you need to test certain products to ensure quality etc., then this also needs to be documented in your process as well as what the physical tests are. The acceptable levels are in terms of the quality and functionality of the product.

Next time we will have a look at a few more steps that need to address in your procurement process.

 

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

<<

Part 1

http://www.viljoenconsulting.co.za/2012/12/early-warning-all-about-procurement-fraud-part-1/

Part 2

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-2/

Part 3

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-3/

>>

Part 5

http://www.viljoenconsulting.co.za/2013/02/early-warning-all-about-procurement-fraud-part-5/

Part 6

http://www.viljoenconsulting.co.za/2013/02/early-warning-all-about-procurement-fraud-part-6/

Networking 101 - Never Abuse Your Network.

 Networking 101 - Never Abuse Your Network.

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

Dr Renate Volpe, in her nugget cards entitled “Networking Tips” says:

“Never abuse your network.  Be respectful and request permission where indicated.”

You have no idea just how important this is if you want to stay in the networking game.  Let me be a little more specific.  The world is no longer a huge place.  Each time new technology is written/developed/invented or however you would like to put it – the world shrinks a little more.  In the old days, a journey by ship took years, then we got aeroplanes and it took, at worst days or hours – now we can travel the world in seconds.  Today I spoke to my Russian friend in Greece, my friend in Arizona in the States and my brother in Australia on SKYPE and because we all have cameras we can all see one another as we talk, thousands and thousands of miles between us and yet we talk and we can see one another as if we are sitting next to each other – the world has indeed, become a very small place.

The world of the SMME has also become really small too, especially if you confine it to the country or the state and even the city or town that you happen to be living and networking in – this means, and listen very, very carefully now – this means that if you abuse your network - within seconds many, many people will know about it and as much as referrals are your best form of obtaining business, they can also become your worst nightmare.  The grapevine works in both directions and believe me when I tell you, that once your name is mud on that grapevine, you will be shut down faster than you can blink.

Here’s an example of what not to do:  During the early part of last year, I met a fellow (let’s call him George)  at a networking event.  Subsequent to that meeting, we had a one on one and I gave him a long list of referrals.  People who would not only be interested in his product but also people who were “connected” and who could also send him to other people who would be interested in his product.  

Now those of you who know me, know that I don’t just give out a bunch of names and contact details – I send an e-mail to the person that I am referring you to and to the person who has been referred.  I introduce the two in the mail and give a brief outline of what each one does.  It is obviously time-consuming, but it turns into a warm call and a referral and each party knows what to expect.

About four months later, I met George at another networking event and we ended up after the event having a drink together and again I gave him some more contacts (remember I had had six months to grow my database and my circle of influence).  Again I took the trouble to e-mail both parties and introduce them to each other.

About six months after that – I bumped into George at yet another networking event.  At this one, he was bemoaning the fact that he was not getting much work out of the networking events that he was going to.  Perplexed (remember I had given him a huge bunch of referrals – people who would have had great value out of the product that he was selling), I asked him, which of my contacts had not “come to the party”?  At this point, I was on the brink of phoning my contacts to ask them what the problem was as I was sure that his product would assist them greatly.

He smiled very sweetly and said, “Actually Nikki, I haven’t contacted any of them and actually it’s been such a long time since you sent the emails to me, could you send them again?” I’m sure you can just picture me standing there with my jaw hanging open!

Needless to say, he never got those e-mails re-sent and in fact, he will never get another one from me either!  Apart from the fact that I very nearly sent him an invoice for 6 hours of work in which I wasted my time and the time of my contacts, who read the emails and then sat waiting to be contacted, this man will never, ever get any kind of referral from me!  To make it even worse, I will tell everyone that I come across, not to give him referrals because he does absolutely nothing with them!

How rude!  How disrespectful!

Remember, each time you get a referral – you will be getting work based on someone else’s credibility.  If you mess with that person’s credibility – you also mess with yours!

Treat referrals as the “golden nuggets” that they are, or you may find yourself “nuggetless” with no new “nuggets” in sight.

For more information on Renate, please visit her website at http://www.drrenatevolpe.co.za  

Nikki Viljoen is an Internal Auditor and Business Administration Specialist and she can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za 

Business Twitter – Why Twitter – Part 4

 Business Twitter – Why Twitter – Part 4

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

As promised last time, here are some additional tips when tweeting.

Since it is all about giving to get, (and I believe this to be true irrespective of whether you own a business or not), don’t just tweet to drive the numbers to your website.  Engage in conversation, join in discussions and respond to those who send you a tweet.  Yes I know that it may seem a little awkward at first, they are strangers after all, but remember – you are in cyberspace and that makes you very safe unless, of course, you invite them into your reality!

The more you engage with people, the more involved you become and the more involved you become, the more friends you make and let’s face it, we can always do with a few more friends!  Actually, if the truth is told, because of Twitter and Facebook, I have reconnected with old friends and acquaintances that I had lost contact with – some of whom I have not spoken to or seen in over 35 years.  They are both incredible mediums.

Despite the fact that this is cyberspace and as far as I am concerned, you are safe – there are some scary people out there and it is always better to be safe than sorry.  So, nowhere is it written that you have to put personal details such as your home or physical address or contact details and certainly it would be wise to exercise caution in these particular areas.  I always look at the following as a guideline before following another tweeter:

1. If, when looking at their profiles, everything is written in a foreign language, then there is really no point in me following them as I cannot understand what they are on about and

2. If their tweets (and for goodness sake have a look at more than one or two, to be fair) don’t hold my attention or deal with anything that I find even remotely interesting, then quite frankly – what is the point?

Exercise reasonable caution and you will be fine.  Remember though you can always stop following someone – there is no law that says you have to engage with anyone.

Next time we will have a look at some additional tweeting tips.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted at 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

<<

Part 1

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-1/

Part 2

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-2/

Part 3

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-3/

>>

Part 5

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-5/

Inspiration – The Price of Excellence

 Inspiration – The Price of Excellence

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

William Arthur Ward says “the Price of Excellence is discipline.  The Cost of mediocrity is disappointment.”

I cannot begin to tell you about the number of clients who I see on a daily basis who are faced with the disappointment that comes because of their own mediocrity.

Oh, don’t for a minute think that they are disappointed or angry or even resentful because they see themselves as the problem or that they have been mediocre in their businesses or with their staff or with the VAT/Taxman.  Oh no!  Their disappointment is always because of something or someone else.  It couldn’t possibly be because of what they may have or may not have done!

The reality, of course, is usually very different.  It is entirely because of their own actions or more often than not, their inactions.

Often though (to give them a little benefit of the doubt), their action or inaction is directly attributable to their lack of knowledge on the subject.  Again, in all truthfulness, this is also directly attributable to their own lack of discipline.  I can actually see everybody’s hackles rising as they read these words.  But actually, that is exactly what it is – lack of discipline because inadequate research has been done and it’s been a case of, “Jump right in honey, the water is just fine!”

You see, too often we have an idea for a product or business and without doing the proper research or understanding the full consequences of our actions or inactions, we just jump right in and then of course when we fail, it’s everybody else’s fault, definitely not ours.  We didn’t have the self-discipline to sit down, do the research, work out the numbers, calculate the risks against the rewards and then make an informed decision.

Of course, there are those of us who have the information and who know the risks but who choose not to work in a disciplined environment, or who want to “cheat” the system or who thrive on taking risks.  For those too, it’s also everyone else’s fault when they get “caught out”.  It’s the VAT/taxman who has killed their business – not their lack of discipline to manage their VAT or tax.  Or how about the Department of Labour, which has imposed a huge fine for non-compliance, that may result in the business folding – not their unfair Labour practice or lack of discipline in following the rules, that protect both them and their staff.

In both of these instances (and thousands of others that result in the failure of a business), the implementation of simple policies and procedures and the discipline needed to follow them would have been sufficient to avoid the problems and their subsequent consequences altogether.

But no – it’s easier to apportion blame than it is to admit that we were in the wrong!

It’s easier to “go with the flow” than it is to set the boundaries and limits and be disciplined enough to stay within these parameters.

Be warned though – those of you who just “go with the flow” usually end up learning and also paying for the hardest lesson of all – the lesson of failure and disappointment.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za 

HR 101 – What to do When . . . You Need Those Wall Charts

 HR 101 – What to do When . . . You Need Those Wall Charts

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd -

Please note that this pertains to South African labour Relations, The Basic Conditions of Employment Act and Best Practice requirements.

About 98% of the companies that I assess actually are not compliant in terms of the wall charts that are required to be displayed.

You see both the employers and the employees are required to be aware of and even understand the minimum requirements of the Basic Conditions of Employment Act, the Employment Equity Act and the Occupational Health and Safety Act.  It is a legal requirement to display these wall charts.  Not only are they required to be displayed, but furthermore they are required to be easily accessible to all staff.  Should the Department of Labour arrive at your office door and request to view these wall charts and you don’t have them, you may very well be in for a hefty fine.  So it really is a good idea to be proactive about this.

Here’s the thing though, although it is incumbent upon employers to comply with the Basic Conditions of Employment Act and the Employment Equity Act and the Occupational Health and Safety Act, employees also have a part to play in ensuring that their obligations are carried out.

In terms of the latest upgrades of the Employment Equity Act, Companies and Government Departments are required to compile equity plans and these too are required to be displayed on notice boards.  These plans also need to be discussed with the employees and their representative trade unions.  Some small businesses may be exempt from this, but the minimum requirements would need to be checked.

In terms of the Occupational Health and Safety Act, the minute five or more people are employed, there is a requirement to implement a health and safety structure in order to sustain the well-being of employees and you are further required to create a healthy and safe working environment.  Common sense though should always prevail and whether you employ one person or one hundred, people have the right to work in a safe environment.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

Early Warning 101 - All About Procurement Fraud – Part 3

 Early Warning 101 - All About Procurement Fraud – Part 3

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

Last time we looked at some of the different types of procurement

Today we will have a look at some of the different issues that need to be looked at, around procurement.

One of the ways to limit procurement fraud is to ensure that you have a proper procurement policy in place and that it is adhered to and checked on a regular basis.  Issues that need to be taken into account when implementing the procurement process are (but are not limited to):

1. Needs Analysis.

It’s a good idea to sit down and establish a strategy.  This of course means that you really have to understand the Company’s needs.  To start off, a short term strategy (usually anything between three to five years) should be implemented.  You will also need to “define” the technical direction as well as the requirements that this will entail.  Remember technology changes at an incredible rate and therefore you need to prepare yourself for all the changes coming down the road.

2. Timing

When do you need the stock?  How long does it take to get to you?  How quickly (or slowly) do you go through the stock and at what level of stock-on-hand are you comfortable with for each product?  

Remember stock-on-hand becomes money in the bank, only when it is sold, so having too much stock-on-hand is not a good thing particularly if it is a slow-moving product.

On the other hand, if you don’t have the stock-on-hand, you won’t have the money in the bank either as you cannot sell what you don’t have, so not having enough stock on hand is not a good thing either, particularly if it is a fast-moving product.

3. Suppliers

You need to identify your suppliers. In a small environment, this is usually done through your networks and then when that fails you will usually resort to Google.  Remember that whilst referrals from friends, relatives, colleagues and in particular staff, can be great, they may also carry a hidden cost in the form of kickbacks or payoffs.  

You need to ascertain if the product is a specific brand, in which case there will be recognized suppliers, or maybe you would like a product that is similar but less costly.  You may want to use several suppliers for the same product or use a single supplier for all of your products.  You may want to use local suppliers or import your products, the choice of course is always yours.  Here’s the thing though, it is very important that you do the research and identifies who best, will supply you with what you require at a competitive price – good value for money is the name of the game.

If you are wanting to import, then attending Trade Shows or contacting the Trade section of a Chamber of Commerce who will assist you, is the way to go.  Taking a company’s name and contact details out of the yellow pages or its electronic equivalent, without getting referrals and doing your homework is a very clear recipe for disaster.

Next time we will have a look at some more of these issues.

 

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

<<

Part 1

http://www.viljoenconsulting.co.za/2012/12/early-warning-all-about-procurement-fraud-part-1/

Part 2

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-2/

>>

Part 4

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-4/

Part 5

http://www.viljoenconsulting.co.za/2013/02/early-warning-all-about-procurement-fraud-part-5/

Part 6

http://www.viljoenconsulting.co.za/2013/02/early-warning-all-about-procurement-fraud-part-6/

Networking 101 - Often less is more

Networking 101 - Often less is more

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd.

Dr Renate Volpe, in her nugget cards entitled “Networking Tips” says:

“Often less is more.  Don’t overload people with information.  Keep it simple!”

Aah!  This is absolute music to my ears! I seem to run around like a mad person telling people to keep things simple - simple procedures, simple English, simple, simple, simple!

In days gone by when I still worked in the corporate world, I remember everyone in absolute hysterics with me, when during a senior management meeting, in absolute frustration I blurted out “We should have a sign made that says, Our new mission statement is ‘Why simplify things when we can make them as difficult as we possibly can!”

I mean think about it for a moment – we wouldn’t travel from Johannesburg to Durban, via Cape Town – now would we?  (Well I suppose some bright sparks would!) Yet somehow we persist in doing things the hard way, making it difficult for ourselves.

I am sure we have all heard the words “It can’t be that simple – can it?”  Well actually people – it is and it can be.  

So make notes for your “elevator speech” and again for a bit of a longer introduction.  Make sure that your information is clear, that the sentences flow into each other and that they actually make sense.  Keep it as short as possible – the longer discussions should take place on a “one on one” basis.  Make sure that the message you are trying to get across is understandable.  Remember you know (we hope that you should know) intimately what you do and you carry that picture in your head.  What you are trying to do is put that picture into as few words as possible and hope that as you say those words, the picture that you have in your head will magically appear in the heads of the people around you.  Be clear and careful about this, there are a few people who I have seen and heard at networking meetings over the last ten years, and I still have no idea about what it is that they do – their messages are really very complicated and unclear!

Now herein lies the challenge – how do I refer someone, when I am absolutely confused about what it is that they do!

So here it is:

Be clear

Be concise

Keep it short

Keep it simple.

Happy networking!

For more information on Renate, please visit her website at http://www.drrenatevolpe.co.za 

Nikki Viljoen is an Internal Auditor and Business Administration Specialist and she can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Business Tips – Why Twitter – Part 3

 Business Tips – Why Twitter – Part 3

By Nikki Viljoen – N. Viljoen Consulting (Pty) Ltd 

Twitter for me, as you no doubt have seen in the last two posts, is about communicating with a much larger audience.  Most sites that you get onto today have a link to Twitter – especially the social networking sites.  This of course means that your “tweets” are reaching a much larger audience and this of course also means that you are driving more and more traffic to your own website.

Most of the professional social networking type websites such as (but not limited to) Facebook or Instagram, have Twitter groups.  These are individuals who are passionate about their tweets and who love to grow their following and who love to interact and share information, knowledge, experience and generally just have good fun.  Write a little something about yourself – remember to keep it short and to the point – find these groups and let them know what you are about.  Generally speaking, people who are interested in what you have to say, will be interested enough to follow you, thereby exposing your blog or website to a whole different group as well.

One of the quickest ways to get people interested in following you or driving traffic to your blog or website is to post a question with a poll.  Yep, people are curious as to what other people think and love to see statistics on “who thinks what” (actually how many people agree with what they think is more like it!).  If you make the topic of the poll something to do with what it is that you do, not only will it drive people to your website, it will in all probability keep them there too and get them coming back, time and time again.

When I started my whole Networking experience, I started asking questions – lots and lots of questions.  You see, I had come from a Corporate Environment and being on the road for almost three weeks of the month, I was pretty isolated from the rest of the Company.  From there I went straight into my business and met the real world – in great abundance.  There was so much new stuff that was happening that I was completely clueless about and so much that I needed to know.  So I traded.  For every question that I asked, I tried to ensure that I also “gave” some useful information in return.  As I used the new information that I was given I, in turn, shared it with others and so the blog was born. One of the most important things I discovered though is that generally speaking, people love to share their experiences and their knowledge.  Actually, if the truth be told, generally speaking, people love to help others.

So don’t be scared to ask for help, but remember the “give to get” thing.  Don’t always just take – give as well!  You’ll be amazed at just how good it will make you feel.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

<<

Part 1

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-1/

Part 2

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-2/

>>

Part 4

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-4/

Part 5

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-5/

HR 101 – What to do When . . . Restraint of Trade – Part 2

 HR 101 – What to do When . . . Restraint of Trade – Part 2

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations and Best Practice requirements.

Following on from last week, we are having a look at a case of “Restraint of Trade” that was upheld by the courts.

In this instance, Mike our favourite protagonist works in a motor vehicle service centre where he does specialized diagnostic testing (let’s call them 123 Motor City).

Again, Mike is offered a position with a competitor ( let’s call them ABC Motor City), but this time he has been enticed across, not because of his work skills but in an attempt by ABC Motor City to gain access to the internal processes of 123 Motor City as well as their client database.

Again Mike is served with papers to appear in court as 123 Motor City attempt to invoke the “Restraint of Trade” clause.

This time Mike is not successful in defending the application due to (but not limited to) the following.

• Mike started at 123 Motor City fresh out of school.  All of his work skills and diagnostic training was gained when 123 Motor City sent Mike to college and workshops and training courses (and paid for these too).  123 Motor City was, therefore, able to distinguish between the proprietary to it and Mike’s general knowledge and skills.

• Mike did possess information pertaining to 123 Motor City, that was of a confidential nature, and he had furthermore attended many in house training sessions and the result of this was that many of his skills and knowledge was specifically about the processes and systems and products of 123 Motor City.

• As a direct result of this Mike was in possession of trade secrets and client information – both of which were of a confidential nature.  If Mike shared any or all of this information with ABC Motor City it could be used against 123 Motor City and also used to their disadvantage.

The bottom line was that as far as the courts were concerned, the fact that there was any risk whatsoever, of disclosure of confidential information, be it of 123 Motor City’s processes or product information or worth ethics or clients, any one of these was sufficient to justify the Court’s decision to prevent Mike from taking up employment with ABC Motor City.

The Court, therefore, enforced the Restraint of Trade clause.

So remember, be specific with what you want to prevent.  Be specific and realistic about the time that you want the restraint to be in force and always be fair.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

<<

Part 1

http://www.viljoenconsulting.co.za/2009/08/hr-101-what-to-do-when-restraint-of-trade-part-1/

Early Warning - All About Procurement Fraud – Part 2

 Early Warning - All About Procurement Fraud – Part 2

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

Last time we looked at exactly what Procurement is and also briefly, what Procurement Fraud is.

Today we will dig a little deeper and start looking at the different types of procurement.

All decisions to purchase, whether that purchase is in goods or services, open you, the business owner up to fraud of one sort or another.  This is because all purchasing decisions involve issues around delivery and handling marginal benefit and price fluctuations. One of the most important distinctions to make is the distinction between purchases with a “high” risk fraud and those with “low” risk.

Larger manufacturing companies often use tools to analyze the economic and financial factors and implications that this produces as there are also two very different types of acquired goods and services and more often than not, procurement activities are split between these two depending, of course, on the type of business that you are in.  The first type is “direct production-related procurement” and the second one is, therefore “non-production related procurement”.  So now let’s have a look at what the main difference is between these two.

Direct procurement usually only happens in a manufacturing type of environment.  It includes all the different parts or components of the finished product.  This would be raw materials and components and parts.  Direct procurement, therefore, affects the whole production process within the manufacturing arena.

Indirect procurement, on the other hand, pertains to the operating expenses and operating resources.  It’s the purchases that relate to the operational requirements of the company.  Clearly, this has a very wide and far reach, as this applies to all the goods and services.  It is reflected in the standard office type supplies such as (but not limited to) stationery or regular office supplies to machines of a different calibre such as heavy equipment.  It also applies to consulting type services such as legal or accounting services.

In both direct and indirect procurement, systems need to be implemented to ensure that purchases are made at the correct time, from the correct supplies and at the correct price.

Next time we will have a look at these processes in a little more depth.

 

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

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Part 1

http://www.viljoenconsulting.co.za/2012/12/early-warning-all-about-procurement-fraud-part-1/

>>

Part 3

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-3/

Part 4

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-4/

Part 5

http://www.viljoenconsulting.co.za/2013/02/early-warning-all-about-procurement-fraud-part-5/

Part 6

http://www.viljoenconsulting.co.za/2013/02/early-warning-all-about-procurement-fraud-part-6/

Networking 101 - Make an Impact

Networking 101 - Make an Impact

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

Dr Renate Volpe, in her nugget cards entitled “Networking Tips” says:

“Make an impact!  Walk into a room knowing that you have something important to offer, that is worth sharing.”

As usual, Renate is spot on the money!  This is a great tip indeed.

I know that since I have finally “got” the whole networking thing and actually, I walk into a room differently and people have noticed.  It’s like I have a secret weapon and whilst I am quite happy to share with anyone that wants it, it is actually mine and that is a very powerful emotion to have.

It’s like having your ego constantly stroked and it certainly puts me on a “high” (without the use of any kind of other substance).  

You see, in most instances – I know something that those people don’t know and that makes me a very special person.  The fact that I am willing to share my secret with anyone and everyone – well that makes me kind of unique, don’t you think!

What “anyone and everyone” does with the secret that I share with them of course is an entirely different thing altogether and that often is very sad.  Actually, I used to get very upset and frustrated, when people didn’t understand the whole networking context – now I understand that sometimes things just are what they are.  So I share with those that want to hear, to learn and to understand and the rest, well life will take care of them I guess, and at the end of the day, it really isn’t my problem at all.

I look at the world differently and I see people differently, and it has nothing to do with whether I like someone as an individual or not, it has to do with that person’s circle of influence, who they are connected to and who I am connected to.  It has to do with adding value to people’s lives and having value added to mine.  

It has to do with having a secret that I am dying to share with you – would you like to hear it?

For more information on Renate, please visit her website at http://www.drrenatevolpe.co.za 

Nikki Viljoen is an Internal Auditor and Business Administration Specialist and she can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.

Business Tips – Why Twitter – Part 2

 Business Tips  – Why Twitter – Part 2

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

Everyone is ‘twittering’ about Twitter!  From what I have heard, it is often asked “what is Twitter” or “how does it work?” and my personal favourite “What are you doing?”

For those of us who use social networking as a marketing tool, this last question is often seen on sites like Facebook, MySpace or Linkedin.  The fact of the matter is that people are interested in learning more about you – be that in your personal capacity or in your business capacity.  That’s just human nature – we are a curious species.

So for me, it makes perfect sense to use Twitter as a marketing tool.  As individuals “follow me” on Twitter, they link into my website and my blogs.  If they like what they read, chances are that they will start looking out for my daily link and many of them don’t even wait to do that, they signup on the website to get the blogs sent to them on a daily basis.  How cool is that?

Now, I’m not saying that everyone who “follows me” will be interested in all of the articles that I write, but since (in my opinion) there is something for everyone, it stands to reason that as I link up to people who I follow and then they follow me – more and more traffic is driven to my website and we could all do with that, I am sure you will agree!

From a marketing point of view, those who “follow me” on Twitter have found something in my articles that interest them – this of course means that they are my “target market”.  Here’s another cool thing – not only are these individuals looking at my information, but I am also looking at their information.  Not only am I making a difference in their lives, but they are also making a difference and adding value to mine.

What an incredible way to collaborate!  What an incredible way to interact with and meet new people!

Man, I love technology – yes, I know that I always say that I am a technophobe (but that is because I don’t understand the technical terminology) and that I don’t always understand it, but I do know, a little bit about what it does and I sure do love it!

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

<<

Part 1

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-1/

>>

Part 3

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-3/

Part 4

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-4/

Part 5

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-5/

Inspiration – The People You Don’t Even Know

 Inspiration – The People You Don’t Even Know

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd 

It is said that “your life can be changed in a matter of seconds by people you don’t even know”

For me, I don’t think it even matters as to whether or not you are actually even open to the possibility of that moment or even open to the change that that moment might bring.

These are the moments, or what, Oprah Winfrey calls “Ah-Ha!” moments, that usually come completely out of the blue or when you least expect them and yet quite possibly they are the moments that can and probably will change the direction of your life or be the defining moment when you change intrinsically as a person.

That’s not to say that you will only experience one of these moments in the course of your lifetime.  I certainly haven’t!  But then of course why would you limit yourself to only one of these deliciously appetizing, soul defining moments?  You don’t have to you know.

That said, like your first kiss or your first love – your first “Ah-Ha” moment is one that you are unlikely to ever forget.  I certainly couldn’t.

My defining moment came in November 1999, when I sat in front of a complete stranger by the name of Vanessa Paige and she was reading my Tarot cards.

Now I can see all of you smiling and nodding your head in unison – a Tarot card reading!

Well let me tell you, this was not a Tarot card reading that you have done by the Gypsies who live in caravans or the fortune tellers that you engage with at the funfair.  This was a reading like I have never encountered in my life! And this was the reading that changed the course of my life and who I am as a person.

You see Vanessa told me that I was a worthwhile person.  That I had the right to make my own decisions and my own choices.  That it was my life and that I had the right and the power to live it.  She told me that I had “given away my power” to bosses that used and abused it, to friends who did not appreciate me and to family, who took as much as they could and then discarded me.

Vanessa made me understand that I could take my power back, I could be somebody, a worthwhile somebody, who could make a valuable contribution to this world. All I had to do was to believe in myself and start to love – me.

And you know what else?  Vanessa told me that she believed in me!

This was the first time that anyone had ever said anything like this to me and the effect was quite profound.

It has been a slow and sometimes painful journey, but it has also brought me much happiness and fulfilment.

I now own my own business.  I make a difference in the lives of others.  I write for magazines and newspapers. I have been interviewed and appeared on TV.  I have been the guest speaker at huge functions – but most of all, most powerful of all – I am the master of my own destiny.

And all it took was one brief moment in time, with someone I did not know!

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za 

HR 101 – What to do When . . . Restraint of Trade – Part 1

 HR 101 – What to do When . . . Restraint of Trade – Part 1

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations and Best Practice requirements. 

There has been a great deal of speculation about “Restraint’s of Trade” in an Employee’s Letter/Contract of Employment.

Here are some of the facts:-

• Our constitution states that we have a right to work.

• The courts will only enforce a “Restraint of Trade” agreement on a case-by-case basis.  Each case is looked at specifically and individually.

So the bottom line is that there is no hard and fast rule.

Here’s the story.

Our favourite protagonist, Mike works as a program developer in ABC IT Solutions.  Mike has a contract of employment that has a restraint of trade clause that specifies that Mike cannot work for a competitor for a period of 24 months.

Mike, after working for the company for a period of 5 years, is offered a senior position, with a whole lot of additional items in his package, with a competitor (let’s call them XYZ IT Solutions).  ABC IT Solutions refused to even discuss matching what was offered to Mike and Mike decided to leave and join XYZ IT Solutions.  ABC IT Solutions decided to invoke the Restraint of Trade clause and Mike is presented with documents to appear in court.

Here’s the thing – Mike is changing employment to better himself, he is not changing employment to transfer company skills and to transfer information to his new employer.

In this instance, Mike already had his skills when he joined ABC IT Solutions, therefore his skills and “Know-How” are vested in himself rather than in ABC IT Solutions.

Furthermore, his contract of employment is not specific at all – Mike has not been stopped from working in a specific demographic area or geographic area but rather has been stropped from working anywhere for a period of two years.

XYZ IT Solutions have their own client base and if you have to view the kind of product or service that they sell, their target market is similar but not exactly the same as that of ABC IT Solutions.

Mike’s ability to program software in direct response to the client’s needs and specifications, means that he is not taking any trade secrets or confidential information with him – he is using his own knowledge and Intellectual Property.  The knowledge that Mike has is quite generic to the trade, his ability to interpret the client’s request however and his ability to provide software that solves the client’s problems at an affordable price, is unique to himself.

In this case, Mike won his case as the court decided that:

• The restraint of trade was too broad and not specific.  To uphold it would mean that Mike would not be able to work in his profession, anywhere in the world, for a period of two years.

• The knowledge and skills that Mike has, are his own and do not, in any way constitute any kind of trade secrets or confidential information that may belong to the Company.

• ABC IT Solutions could not isolate what its Intellectual Property was or even differentiate between what was theirs or what belonged to Mike.

Next time we will look at when a Restraint of Trade was upheld.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

>>

Part 2

http://www.viljoenconsulting.co.za/2009/08/hr-101-what-to-do-when-restraint-of-trade-part-2/

Early Warning - All About Procurement Fraud – Part 1

 Early Warning - All About Procurement Fraud – Part 1

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

I have decided that going forward, not only will the “Early Warning” section be used to highlight some of the negative things that are currently happening, but it will also be used proactively to try and avoid the negative things from happening. In this particular case “Procurement Fraud”.  It is quite a large topic so as usual when this happens, it will be segmented into smaller parts.

So . . .  let’s start at the beginning – What is Procurement?

According to the Wiki “Procurement is the acquisition of goods or services”.  The Wiki goes on to say (sic) “It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quantity and quality, time and locations (Weele 2010).  Corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing exposure to fraud and collusion.”

So what then is “Procurement Fraud?”

Again, according to the Wiki (sic) “Procurement Fraud can be defined as dishonestly obtaining an advantage, avoiding an obligation or causing a loss to public property or various means during procurement process by public servants, contractors or any other person involved in the procurement process.”

In the Corporate world and certainly in the Government Departments and Parastatals, the whole procurement process is handled by specific “Procurement Departments” with often, hundreds of personnel and this usually is where all the mischief happens.  Remember that in the larger companies (and obviously on a much smaller scale in the SMME playground), there are many different “types” of procurement, depending on the sector – some of the more generic ones are (but not limited to):-

Staffing

Staff Training

Services

Stationery

Vehicles

Equipment (office and other)

IT (hardware and software) etc.

Keeping control of these purchases and these expenses has become a priority, as crime escalates and as always, as it affects the bottom line.

Sadly, more and more I am discovering that “Procurement Fraud” is not only taking place in the larger Corporates or Government or the Parastatals but also in smaller companies, so going forward, in this series, we will together identify the “red flags” and find practical solutions on how to avoid this particular scam.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

>>

Part 2

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-2/

Part 3

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-3/

Part 4

http://www.viljoenconsulting.co.za/2013/01/early-warning-all-about-procurement-fraud-part-4/

Part 5

http://www.viljoenconsulting.co.za/2013/02/early-warning-all-about-procurement-fraud-part-5/

Part 6

http://www.viljoenconsulting.co.za/2013/02/early-warning-all-about-procurement-fraud-part-6/

Networking 101 - Networking with Integrity

 Networking 101 - Networking with Integrity

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

Dr Renate Volpe, in her nugget cards entitled “Networking Tips” says:

“Resist short term gain, at the expense of trust and integrity.”

Now, this is an interesting one!  Many times, a few days after meeting someone at a networking meeting, I have phoned said person only to be told – “I’ve not gotten anything out of the meeting from anyone, so this networking thing doesn’t work for me!”

Oh, how sad and how very short-sighted!  Here’s the thing see – if you go to a networking event purely with the intention of getting some work or selling a product at that meeting, please don’t go.  All you are doing is wasting everybody’s time and energy and more to the point, disillusioning yourself!

Think about this logically for a moment.  If you do a cold call and you manage to get past the gatekeeper and in to see the top brass – how often will you make a sale of your product and/or service at that first meeting?  The answer is pretty much NEVER!  So why on earth would you think that you could get it right at one networking meeting?

The truth is that networking doesn’t, by itself, get you any business!  What it does do is get you to meet people, far more people than you would if you were going door to door and cold calling.  It is still what you do after you have met with all of those people, that counts.  It’s how you build the relationship thereafter that makes the difference!

Networking is about “warm” calling – once you have met or even seen someone at a networking meeting, when you call them up – even if they don’t remember seeing or meeting you there, once you introduce yourself and say you were at that meeting, they will remember being there too and it is easier to set up the appointment!  Once you have your foot in that door, the building of the relationship can start taking place and the referrals of your own “circle of influence”, can take place and the meeting of the other person’s “circle of influence” can start to take place and big business can start being done.  It has to start somewhere though and that somewhere is at the networking meeting!

So in essence, networking is about meeting new people in order to start building relationships.  Once you have grasped that, you will be well on your way.

For more information on Renate, please visit her website at http://www.drrenatevolpe.co.za 

Nikki Viljoen is an Internal Auditor and Business Administration Specialist and she can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

Business Tips – Why Twitter – Part 1

 Business Tips – Why Twitter – Part 1

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

For the last couple of years now, I have been listening to all the hype about “Twitter” and “Tweeting” and “Tweets” and “Twits” so on.  Actually, now that I think about it, my technophobia aside – I really do love technology, I love the world that it opens up to me.  The fact that I am not sure how the technical side of things works doesn’t really phase me at all.  I do know that “Twitter” is another form of international communication and what I really love about it is that it allows me to put a one-liner up which will drive a considerable number of people to my website.

For example, on a daily basis I tweet – Today’s blog (and then the title of the blog), add the URL address of my website and that’s it.  Looking at the statistics afterwards shows me exactly how many people come to visit my website and they usually stay for a while and look around.  How do I know this?  Well, the stats show that the average time anyone spends on my website is in excess of 5 minutes.  See, my website is very content-rich with loads of information that pertains mostly to SMMEs (small, medium, micro-enterprise), Entrepreneurs and startups but actually in general to everyone.  The information is presented in bite-sized chunks, with my own brand of humour and I know that many have not only learnt something but have also enjoyed a chuckle whilst doing so – and that’s always a bonus.

I also know that when I started the whole “Twitter” scenario, I was addicted.  I couldn’t get enough of the site.  I found myself standing in a queue and instead of reading my book (which is what I used to do), I would be logging onto the site via my phone to see “who had posted what tweets” – it was an exciting time of information overload.  Back at the office, I found myself logging onto the site at every opportunity and found myself going from one site to the other as I devoured all the information that others had so thoughtfully found and shared with me.

Reality hit me really hard one day when I got up and it was still dark outside.  I did the daily things that are routine to me and immediately logged onto the site.  During the course of the day, I felt hungry and thirsty but every time I wanted to get up and get something to eat or drink, I found myself caught up in whatever it was that I was reading and thought “as soon as I finish this article I will go and get (insert food or drink here)”.  Of course, I got so involved that getting something to eat or drink just never happened.  After what seemed like a couple of hours, not long at all, I suddenly realized that it had gone very dark and I thought it must be because there was going to be a Highveld storm.  One of those that we are famous for – you know when suddenly the thick black clouds come over and then the rain comes down in sheets for about 10 minutes and then the sun comes out to play again?  Sadly it wasn’t!  What it was, was the onset of the night – in fact, it was after 7pm.  I had sat in front of my computer playing on Twitter and going from site to site from around 5.30am to after 7pm without eating or drinking anything.  Needless to say, no work had been done for the day either and I gave myself a helleva fright.

The solution to the problem of course was clear, I went out and bought myself one of those oven timer clocks and limited my use of Twitter to 15 minutes a day.  When the clock alarm goes off, it doesn’t matter where I am and what I am reading, I have to close the site down!  Addictive it is and I am not the only one to say this either!

Over the next couple of weeks, I will be sharing some of the things that you can do with Twitter – I hope you will stick around and enjoy the journey with me.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

>>

Part 2

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-2/

Part 3

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-3/

Part 4

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-4/

Part 5

http://www.viljoenconsulting.co.za/2010/06/business-tips-why-twitter-part-5/

Inspiration – The Powerful Person

 Inspiration – The Powerful Person

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

The quote today comes from Lao Tzu who says, “He who gains a victory over other men is strong, but he who gains a victory over himself is all-powerful.”

I recently heard a woman, who was being beaten by her husband say something along the lines of, he says “I force him to hit me because of the way that I speak, act, dress, walk (insert anything you like here)”.  Not only am I amazed at how influential this woman is (and the many thousands like her) over her man – that she can make him lose control!  I mean really!  I asked her how she managed to do that – did she hold a loaded gun to his head and tell him he had to hit her, now?  Did she stand with a knife held to his throat and say that she was going to “gut him like an animal” unless he raised his hand and beat her senseless?

Don’t be daft!  This is a man who thinks that because he is physically stronger than her, he can control her actions or vent his frustrations, by beating her up!  Yes, this man has gained a physical (and often a mental one too) victory over her – but nothing else!  He hasn’t shown me that he is a man.  In fact quite the opposite – he has proved himself to be a bully of note.  So ok, now he has proved that he is strong – and now what?

What perhaps would have impressed me is if he had controlled his temper and his emotions to such an extent that he just walked away!  Now that would have made him a powerful man, in my opinion!

What are you in your personal life and in your professional life?  Are you a strong person or are you a powerful person?  Perhaps the question should be, which would you like to be – a strong person or a powerful person?

I know which one would be the most comfortable one for me to live with – do you?

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za