Proposed new organsiational structure for Turnaround Management Association Southern Africa

1
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
2
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.
3
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.
4
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

5
Hitherto, an attempt was made to place a
hierarchy into the structure, but it is not
really working
6
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

7
A fresh look our mission statement translates
into the following value chain
TMA-SA primary value chain
Plan
TMA events
Marketing
Sales
Networking
Research

• Research
• Segmentation
• Targeting
• Positioning
• 4 Ps

• Direct sales
• Service
• Sponsorship

Capture
Publication
Knowledge
Research
ACTP Relations, conferences, alliances
Plan
Education
Research

• Product (see demand fulfillment)
• Price
• Promotion of TMAs products and services to
  prospective new members via public relations,
  promotional project publicity, web site,
  newsletter, mailing lists, brochures,
  sponsorship, etc.
• Place

Publicise
Members services promotion
Collect info
Invite
Pro bono, new business rescue legislation,
government projects
Plan
TMA promotional projects
Research
Membership benefits
Professional insurance, medical over, travel
benefits
Research
Negotiate
Demand fulfillment
Demand generation
Support functions
8
The value chain translates into the following
proposed organisational structure
TMA-SA org structure
The Education Knowledge position has been split
out from the operations position.

• 8 Executive Directors
• Administrator

CEO

• Legal compliance
• Records

Deputy CEO
Secretary
Support
Support

• Ad hoc as directed by CEO

Support

• Member administration
• Support to all Executive Directors

Administrator
Demand generation
Demand fulfilment 1
Support
Demand fulfilment 2
Support
Marketing Director
Operations Director
Financial Director
Informatics Director
Education Knowledge Director

• Sales
• Marketing
• Publicity
• Promotion
• Public relations
• Sponsorship

• All events and programmes except for educational
• Promotional programmes
• Business rescue legislation
• Government projects
• Pro bono

• Treasurer
• Financial management
• Membership benefits e.g. professional, medical,
  travel insurance

• Web site
• Newsletter
• IT

• Knowledge management
• ACTP relations
• Educational alliances
• Educational programmes and events

9
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