Delivery

Today was delivery day. Delivery of the projects we have been working on the past week. Judging from the many stories I have heard from my classmates South Africa have made an impact on us all and judging from the very same stories we made an impact on South Africa. Maybe not as a country, but for the entrepreneurs we have been working with. It is incredible how much you as a group can pick up, process and feed back in a week once you really set your mind to it.

The last two days we borrowed a room in the office of our host IDC, where we could digest and process the information we absorbed over the past week. For some reason, it did not feel much different than the dungeons back in Lausanne.

My concerns about us knowing absolutely nothing about hydraulic fittings evaporated already the first day and this week became an awesome demonstration of the power of a multi-skilled team. Eric – our financial genius – drew up a complete financial model from scratch and helped Peter sort some outstanding issues with his bank. Stone – our engineer – made a model that allows Peter to accurately calculate his production cost of each product, which ensures that the prices are set correctly. Stone also made suggestions to how Peter can make very significant improvements to the utilization of his machines. Shibu – our marketing wizard – draw up a plan for a more structured sales process than Peter has today. Myself, I got really good at getting coffee for everyone ☺ We wrapped it all up in a business plan that Peter can take to his bank to help him refinance his existing business and obtain new capital for his planned expansion. That was our deliverable and Peter seemed very happy with it.

Eric and Stone trying to get the financial and operational figures to match.

Delivery of the business plan took place at ‘The Mug & The Bean’ coffee shop. Here Shibu and Peter are discussing the marketing plan. Please note the huge cup of coffee in the front. This is on the menu as a so-called ‘Serious Cappuccino’ and consists of almost half a liter of warm milk and coffee. Not only in America!


What better way to end it all than with a team phoon in front of the Mandela statue on Mandela Square here in Sandton City. From left it is myself, our entrepreneur Peter, Stone, Eric, Shibu and our driver Sharl.





We had lunch at a Thai restaurant today. My teammates apparently thought I needed to relax and bought me a massage in the restaurant. For the equivalent of 5 dollars you get about 20 minutes of massage of neck, shoulders and arms before and after you eat. I could really get used to that. Although we were in a Thai restaurant the girl proved to be Chinese. As Stone and her started talking in their native tongue we learned that she was from a place in China not far from Stone’s and that she had migrated to South Africa a couple of years ago to work. Interesting, I thought, that someone would migrate to find work in a country with 25% unemployment. Stone explained that many Chinese go abroad these days, most of them to set up their own businesses, though.
We have also experienced the diversity of our group in a culinary way this week. Thursday Shibu treated us for Indian food, Friday Stone treated us for Chinese and today Eric took us out for Thai. There are unfortunately very few traditional Danish restaurants outside of Denmark, but I can always buy you a Carlsberg! ☺

South Africa is now seeing the rise of a new term: ‘White poverty’. This little exhibition was set up today across the street from our hotel.
The poster reads: ‘…poverty in South Africa no longer has an exclusively black face….. Poverty is becoming less of a racial issue and more of a South African problem…. Having been deprived of their previously ‘privileged’ position, the white poor are now seeking new ways to adapt or at least survive.’
In some bizarre way this is a good sign. Not that people get poor, but than when there is poverty, that it is evenly split among races. This is the precondition for eventually bringing South Africa out of the poverty!

Less than 50m from where the previous picture was taken we found this display of material wealth. Aston Martin, Lamborghini and Audi R8 in front of the posh Michelangelo Hotel reminds us that South Africa still is a country full of contrasts.

Thorsten

Sawubona!

Two days ago I sat on my balcony in Lausanne. What a change of scenery there has been since then!

Sunday evening we met in Lausanne and via Geneva and Zurich we made it to Johannesburg by Monday morning. I asked for a seat by the emergency exit on the plane and was the lucky to get it! That is major deal breaker for me. It is the difference between sleep and no sleep. With enough space to stretch my legs I slept 7 of the 10 hours from Zurich to Johannesburg. I couldn’t have had a better start.

There was a lot of catching up to do on the way. The class has been spread around the world in the past three weeks. Combined we must have visited at least 50 countries. Around 25 people had gone to South Africa early, some individually and others in a trip organized by our native South African, Lisa Bridgett. Stories about cage diving with 4-meter sharks outside Cape Town were already spreading!


Chuks and Andres waiting to pass security in Zürich. Chuks had just become a dad less than 24 hours before the picture is taken!


Arrival in Johannesburg! Some more rested than others.


Our welcoming team. As the width of these two gentlemen indicates they are here for more than just driving us around. They are employed by a security company that takes care of all our transportation and security. All of them have a past in the army or the police.


Yesterday afternoon we met the companies that we will be working with. Here is the rest of my team Stone, Shibu and Eric with Peter [left] from Profast Hydraulics, the company we will be working with. Peter is a true entrepreneur and selfmade man who over the last 15 years has worked his company up from being just himself to employing 15 people and a number of advanced CNC machines. The company produces hydraulic fittings (primarily for the South African mining industry) and components for the construction industry.

Our stay in South Africa has come about as a result of the cooperation between IMD and the Internal Development Corporation (IDC). IDC is a government-owned but self-funded institution that provides financing for entrepreneurs in South Africa. Their aim is to stimulate the growth of the economy and to support the black economic empowerment.


IDC welcomed us with a great dinner with lots of traditional South African music and dance. That got everybody out of their chairs so we could dance along. Great fun!


Wendy Luhabe has been the person bringing IDC and IMD together. She is chairman of IDC and on the IMD board of directors. Here she bids us welcome at the dinner.


On the way out to the Profast factory today we drove by this billboard. Notice Wendu Luhabe on the far left. According to our driver, Sharl, Wendy is a well-known and very public character in South Africa. Please also note Sir Richard Branson (third from the left). Apparently they are having a leadership summit on South African entrepreneurship in Sandton – which is where our hotel is – tomorrow. I guess this just proves the relevance of what we are doing.


We spent all day today with Peter and Sharl. They took us around to the different sites where Profast operates.


We saw the machines and the products and we spent the whole days asking questions in order to understand Peter’s business and the concerns he has. Here it is Hendrik by one of the CNC machines.
We have tried to combine today’s learning with the skills we have amongst the four of us in order to find out where we can do our deep-dive over the next three days. With only a week to complete the whole project we need to take a very pragmatic and realistic approach to where we can add value. It means prioritizing, thinking on our feet and acting quickly. The great thing about this short time frame is that it gives you a bit of a kick. This is not a project that will drag on for months and where you have to collect vast amounts of information. Every hour counts and there is not a moment to waste if you want to do an impact by next Tuesday. Well, the impact may only happen over the coming months, but the frame for it must be set by Tuesday. The keyword is ‘impact’, doing something that really makes a difference. I am very excited and feel we are off to a good start, but there is still 6 days to go – and at the same time ONLY 6 days to go.

Every evening we will be sharing the day’s learning with the class. Judging from today’s session it sounds like everybody are working with companies just as exciting as ours. The companies covers such diverse products as restaurants, construction, pharmaceuticals, diamonds, public toilets in Soweto and a lot more that I haven’t had the chance to hear about yet.


This week have we replaced the White Horse with the bar in our hotel, but it is just as cosy. From left it is Richard Dove [UK], Albert Schultz [Germany], Ope [Nigeria] and Rasmus Figenschou [Norway].

And in case you were wondering: ‘Sawubona’ is the South African version of ‘hello’. Directly translated it means ‘I see you’.

Thorsten