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