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Sales and Marketing Org Structure

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					Turnaround Management Association –
Southern Africa (TMA-SA)
Proposed new organisational structure


Board meeting 4 May 2006

Updated July 2006



The premier professional community dedicated to
 corporate renewal and turnaround management
Our current structure is based on the TMA model (except for
splitting the roles of CEO and Chairman – i.e. no President)

 Current structure:
  Composition;
    – Non-executive Chair
    – 2x non-executive directors
    – 12 Executive Directors
    – Administrator
  5x 3-year terms, 5x 2-year terms, 5x 1-year terms
  New candidates nominated in April, elected in June, starts January the next year
   i.e. very long lead time
  Succession of chairs – promotion from deputy CEO to CEO to Chair
  Full board meeting every 3 months
  Exco (7 of the 21 Executive directors) meeting every month in-between
             We can now change this structure since we are not a Chapter anymore, but an
                                    international affiliate of TMA.


                            Turnaround Management Association – Southern Africa  Proposed new org structure  Jan van der Walt   2
The structure works well in many respects


 Benefits of current structure:
  Continuity – 3/2/1-year terms, succession of chairs
  King 2 conformance (split roles of Chair and CEO)
  Flat structure
  Accountable person for every function
  Regular meetings - monthly




                             In theory this structure should work well.




                         Turnaround Management Association – Southern Africa  Proposed new org structure  Jan van der Walt   3
The structure, however, constrains effectiveness in some ways


 Technical constraints of current structure:
  The 5 Executive Directors not on Exco are out of the loop:
    – Meet only every 3 months in oversight (board) capacity
    – Difficult to engage in-between
  Flat structure difficult to manage:
    – Marketing discipline spread over different functions – membership, PR, sponsorship
    – If an executive director is not available due to work pressure, it is difficult to find a volunteer
      to fill in
  Long lead time between nomination (8 months) and election (6 months) before
   duties are assumed
 Political constraints of current structure:
  Only 2 out of 15 board members are BEE, and one has since resigned
  Only 1 out of 6 exco members are BEE
  Not sending the right message to government and industry


                              Turnaround Management Association – Southern Africa  Proposed new org structure  Jan van der Walt   4
Hitherto, an attempt was made to place a hierarchy into the
structure, but it is not really working




                   Turnaround Management Association – Southern Africa  Proposed new org structure  Jan van der Walt   5
A number of guidelines are suggested for developing a new org
structure

 New structure design principles:
  Maintain a board size of at least 15 members
  Streamline executive structure:
    – Base the executive structure on TMA-SA value chain
    – Less executive directors: 8 in total instead of 12
         • More manageable for CEO
    – Managers under Executive Directors to manage sub portfolios:
         • Managers recruited by Executive Directors from TMA-member volunteers
         • Flexibility to form sub-committees, allocate tasks and draw in volunteers when needed
  Allow for stronger BEE representation on board
    – More non-executive directors: 7 or more in total in instead of 3
    – Allows for more BEE directors:
         • Can be prominent/influential BEE personalities in business and government to promote TMA in
           industry
         • Need not be turnaround professionals



                              Turnaround Management Association – Southern Africa  Proposed new org structure  Jan van der Walt   6
A fresh look – our mission statement translates into the
following value chain
   TMA-SA primary value chain:
 Networking          Research              Plan                       TMA events                      Marketing                   Sales
                                                                                                       Research                   Direct sales
 Knowledge           Research              Capture                    Publication                      Segmentation               Service
                                                                                                       Targeting                  Sponsorship
                                                                      ACTP Relations,                  Positioning
 Education           Research              Plan                       conferences,
                                                                                                       4 Ps:
                                                                      alliances                         – Product (see demand
                                                                                                          fulfillment)
 Members’ services   Invite                Collect info               Publicise                         – Price
 promotion                                                                                              – Promotion of TMA’s
                                                                      Pro bono, new                       products and services to
                                                                                                          prospective new
 TMA promotional     Research              Plan
                                                                      business rescue                     members – via public
                                                                      legislation,                        relations, promotional
 projects                                                             government projects                 project publicity, web
                                                                                                          site, newsletter, mailing
 Membership                                                           Professional                        lists, brochures,
                     Research              Negotiate                  insurance, medical                  sponsorship, etc.
 benefits                                                             over, travel benefits             – Place




                       Demand fulfillment                                                                 Demand generation
   Support functions:
                                                                               IT
                                                     Web site    (and                     Company
      Finance         Administration                                                                                     Newsletter
                                                      Google Groups)                      secretarial


                                Turnaround Management Association – Southern Africa  Proposed new org structure  Jan van der Walt                7
The value chain translates into the following proposed
organisational structure

 The Education & Knowledge
                                                        TMA-SA org structure:
                                                                                                                                               • 8 Executive
position has been split out from                                                                                                                 Directors
   the operations position.                                               CEO                                                                  • Administrator


                                                                                                                                • Legal compliance
                                    Deputy                      Support           Support
                                                                                                       Secretary                • Records
                                     CEO
                                 • Ad hoc as                                      Support                                       • Member administration
                                   directed by CEO                                                     Administrator
                                                                                                                                • Support to all Executive Directors


             Demand generation      Demand fulfilment 1             Demand fulfilment 2                         Support                          Support

             Marketing              Operations                    Education &                          Financial                      Informatics
              Director               Director                     Knowledge                            Director                         Director
         •   Sales                   • All events and               Director                          Treasurer                      Web site
         •   Marketing                 programmes                                                     Financial                      Newsletter
                                       except for                  Knowledge
         •   Publicity                                              management                         management                     IT
                                       educational
         •   Promotion                                             ACTP relations                    Membership
                                     • Promotional                                                     benefits e.g.
         •   Public relations          programmes                  Educational                        professional,
         •   Sponsorship             • Business rescue              alliances                          medical, travel                Managers to take up sub
                                       legislation                 Educational                        insurance                     portfolios under Executive
                                     • Government                   programmes and
                                       projects                     events                                                                     Directors
                                     • Pro bono



                                         Turnaround Management Association – Southern Africa  Proposed new org structure  Jan van der Walt                           8
However, we cannot change the structure willy-nilly


 Practical implications of a change in org structure:
  Articles of Association and Rules to be changed
  New structure be approved by AGM
  AGM presently to be held before 10 June 2006, at which time new directors are to
   be elected)
 Proposal:
  Postpone AGM (and election of new directors) to later this year
  Will allow for more BEE members to join and BEE non-executive board members
   to be recruited
  Use time to streamline Articles of Association and Rules in other ways too:
    – Make Articles more generic and less rigid and leave things that may change in the Rules
    – Have nominations and election closer to year-end
  Preposition members about the new organisational structure and Articles/Rules,
   and obtain their builds prior to the AGM

                           Turnaround Management Association – Southern Africa  Proposed new org structure  Jan van der Walt   9

				
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