Black economic empowerment has become the core business strategy for companies going forward and the information, communications and technology (ICT) industry is no different. In fact, with the ICT charter scheduled for finalisation in April next year, companies are starting to scrabble to get their houses in order.
Although we have not witnessed the mass hysteria seen as a result of the Mining Charter, the ICT industry has to start somewhere. With rumours that the government ICT spend is expected to be about R40-billion over the next five to seven years, there is no time like the present.
So bar selling off your assets or creating yet another smoke-and-mirrors empowerment vehicle designed to make the rich richer, how do you go about aligning your company with the proposed government legislation?
I recently stumbled across a company that has taken a completely different approach. Instead of trying to buy investors and pretty itself up for the right partner, Xantium Holdings has started from scratch.
Realising that its business opportunities are going to be limited unless it ensures it is an equal opportunity company, Xantium has begun building its company strongly along the lines of empowerment. Now, admittedly, not all companies have the luxury of wiping the slate clean and starting over, but there are companies out there that are still small enough to start doing it the right way.
The Xantium model is simple:
Attract the right people to lead and manage;
Ensure that these people have experience, know their market and are sales driven;
Secure people who are in the development phase of their careers, not those who cost a fortune and have no deliverable track record. Find people who are hungry and keen, those wanting to break into the market and those who thrive in a mentorship environment; and
Ensure that everyone in the company has a stake in the business.
Xantium Holdings acting CEO James Murray says it is critical to ensure that your people not only believe in your business, but that they have a vested interest in making it grow. Incentives are nice to have, but complete buy-in through shared equity is, according to Murray, the way to move forward.
Xantium has only been in business for four months, but has already attracted world-class partners, technologies and alliances. The company is split into four divisions: Xantium IT Services, Xantium Digital Card Systems, Xantium Professional Services and Xantium Integrators. The empowerment equity of the company already amounts to 54% and the board of directors are in no way there to pay lip service, but have been carefully selected for their knowledge and understanding of the company. During its short time in business Xantium has already invoiced clients and has marked up an impressive turnover.
One to watch? Definitely. The company is made up of some of the stalwarts of the IT industry who have been instrumental in the creation of a number of known IT companies.
And if you are a small company perhaps you should go back to the drawing board and start from scratch.