BONGANI COKA
ACTING CEO

Last year this report was published as the gale force winds of global economic recession began to batter South Africa.  In this subsequent year of review the damaging blasts of this unprecedented worldwide trade slowdown and credit crunch tore at our economy, with consumer demand plummeting and over 300 000 jobs lost, particularly in the mining and manufacturing sectors.

As feared, this was probably the single biggest global financial contraction since the Great Depression  of the 1930s.

I write now (July 2009) as the so-called ‘green shoots’ of economic revival are being heralded by commentators, with markets appearing to revive – but it is early days yet.

As the world recently celebrated the 40^th anniversary of man’s first moonwalk, so too does Productivity SA celebrate its founding 40 years ago as the National Productivity Institute (NPI).  At 40 years young the venerable NPI has been reivigorated and re-mandated through the passing of the Skills Development Amendment Act [No, 37 of 2008] in December 2008.

Now a gazetted and fully-fledged Schedule 3A Public Entity, Productivity SA enjoys the unencumbered mandate to champion productivity in the South African economy.  There can be a no better time for a reconstituted Productivity SA to step onto the economic centre stage in our country.

When 300 000 jobs can disappear in a single year – with thousands more under threat – South Africa urgently needs a Productivity SA with the resources to turnaround these jobs and businesses.

In South Africa we have been alarmed in recent years by the slipping competitivness of our export industries, compounded by falling international demand and an alarming contraction in industrial output.  Our industries are being challenged as never before since the dark days of apartheid and sanctions.  It is blindingly apparent that South African industry must re-examine and in many respects re-invent itself.

When cash flows are tight and competition fierce, enterprises can no longer afford to carry inefficiencies and wasteful practices.  In this scenario many executives trigger traditional reactions; cutting back on marketing, reducing expenses and retrenching workers.  They attempt to wait out the tough times until the economy revives.

Productivity SA can demonstrate that often retrenchments – such a blunt and socially devastating instrument – can be avoided.

We offer tried and tested programmes to save jobs, eliminate inefficiencies and make South African companies internationally competitive – even in these challenging times.  Economic history shows that world leading companies have used downturns to restructure for efficiency, develop innovative new products, takes over competitors and build market share by increasing rather than decreasing their marketing and advertising spend.  Kelloggs remains the world leading producer of cereal foods after seizing the initiative from arch-rival Post in the 1930’s Great Depression, Texas Instruments launched the transistor radio during the 1954 downturn and Apple made a dramatic comeback to market prominence by unveiling its iPod music player in the 1991 recession.

Productivity SA is willing and waiting to assist African business owners and executives who accept this recession as the perfect opportunity to look inwards, critically examine operations and products, and redesign enterprises for success, or even just sustainable survival until the tide turns.  When that tide inevitably does turn, your business can be riding on the crest of the wave – efficient, motivated and competitive.