On the trail of the University of Pretorias (UP) recent centenary celebrations, Business Enterprises at University of Pretoria (Pty) Ltd (BE at UP) celebrated its 10th anniversary on 1 March 2010, a decade of excellence in the field of research and consulting.

BE at UP has proved to be a successful vehicle for enhancing the University of Pretorias contribution to our increasingly knowledge-based economy. Moreover, as a source of third stream income for the University, the campus enterprises play a vital role in enabling the University to grow our resource base in a sustainable manner, so that we can execute our strategy of creating a synergy between teaching, research and community engagement. I am confident that BE at UP will continue to build on its existing strengths and achievements, and that its continued commitment to quality, relevance and sustainability will keep it firmly on course to achieve greater levels of excellence and impact in the future, said Prof Cheryl de La Rey, Vice-chancellor and Principal at the University of Pretoria.

The vision behind the establishment of BE at UP in March 2000 was two-fold; industry would be offered an innovative and cutting-edge cluster of multidisciplinary contract research and consulting services; and the Universitys personnel would be offered the opportunity of gaining exposure, experience and financial advantage in the market place.

At inception, BE at UP was mandated to market the expertise located within only four disciplines at the University, however, towards the end of 2002 its service offering expanded to include the five other disciplines to make up the 9 faculties of the University.

BE at UP has moved from about 100 completed projects in 2000 to over 1000 completed projects in 2009 which attributes to a turnover of just below R10 million in 2000 to a turnover of just over R60 million in 2009.

BE at UP is a manifestation of the Universitys aim to make its expertise available through consultation offerings which has in turn made a contribution to the growth and development of participating academics. The involvement of academics, associates and business partners, has been a contributor in the strategic building of a solid foundation on which to realize the future success of BE at UP.

The growth and success over the past decade has been exponential. A major achievement being the positioning of the University as a leader in developing and utilising business opportunities, both nationally and internationally, within the commercial research and consulting industry.

I would like to extend my thanks and appreciation to our valued clients, staff and business partners for the continued support and commitment which has ensured the companys future positioning in the research and consulting industry, said Mr Deon Herbst, Chief Executive Officer, BE at UP.

Due to external work undertaken through BE at UP, research output is often attributed to consultation work, which is a benefit of collaborating efforts to transfer knowledge not only to industry but also to the students of the University, said Prof Sibusiso Vil-Nkomo, Chairman of the Board of Directors, BE at UP.

BE at UP creates a platform to accelerate quality, relevance and sustainability in close alignment with the University. Operating under a research intensive University, BE at UP offers all sectors of industry access to a vast pool of multidisciplinary brainpower available at the University and has focused on delivering personalised services to assist its clients in the private and public sector, with effective decision making based on sound research.

A celebratory event was held on Thursday, 20 May 2010 at Diep in die Berg and various stakeholders were invited to share this momentous occasion.

At the end of April 2010, Business Enterprises at University of Pretoria (Pty) Ltd (BE at UP) bid farewell to one of its board members, Prof Andy Mogotlane.

Prof Mogotlane has been a board member at BE at UP for just over 7 years when he decided to leave the academic world, follow his true calling and join the medical fraternity in practice as a surgeon.

As Vice-principal: Community Engagement at the University of Pretoria, Prof Andy Mogotlane was always involved in a number of BE at UPs community engagement activities, giving valuable insight and encouraging talks to beneficiaries.

The contribution supported or initiated by him, demonstrated that reaching out and establishing strong ties with the community is one of the key priorities for the University. At BE at UP, we acknowledge his commitment to the upliftment and improvement of the quality of lives of people which has translated community engagement into business success for us all, says Mr Deon Herbst, Chief Executive Officer, BE at UP.

BE at UP wishes him all the best in his future endeavours!

(Left) Prof Sibusiso Vil-Nkomo, Chairman of the Board: BE at UP and (Right) Mr Deon Herbst, CEO: BE at UP present a gift to Prof Andy Mogotlane for his invaluable contributions

Business Enterprises at University of Pretoria (Pty) Ltd (BE at UP) offers Land Rehabilitation services.

Our land rehabilitation specialists are primarily involved in understanding and managing the interrelationship between soils, plants, animals and other environmental conditions.

Their scientific and practical expertise contributes significantly to the development and implementation of new technologies for evaluating, monitoring, developing and implementing natural resource management.

Particular emphasis is placed on land reclamation, rehabilitation and revegetation technologies. These specialists draw on a wide range of key disciplines to provide comprehensive assessments and holistic, innovative solutions with respect to reclamation, sustainable land use, the conservation of natural resources and environmental quality.

Services offered include amongst others:

• Rehabilitation of surface coal mines or degraded landscapes
• Soil analyses (chemical, physical and microbiological)
• Plant yield calculations
• Growth medium conditioning solutions and techniques

At the current juncture in South Africa's history, development planning has become a key driver in rectifying spatial and other imbalances in urban and rural areas. Improving inefficient and underperforming living environments requires well-planned interventions that are based on sound research, coupled with well-functioning and effective government role-players and institutions.

Since the democratic transition in 1994, specialists in urban, rural and regional planning and development at the University of Pretoria have been researching and monitoring emerging planning and development trends and challenges in the country.

These challenges are complicated by the fact that many local governments do not have the required capacity, skills, structures, systems and processes to become fully functional and truly developmental.

These trends and challenges, accompanied by the unease about the future roles and responsibilities of planning and development agents, do not only require a fundamental rethink about planning and development, but also call for innovative planning solutions and collaborative efforts.

Through its active, hands-on involvement in and exposure to many of the planning and development processes that are currently underway in the country, researchers in the Universitys Department of Town and Regional Planning have developed a sound knowledge base and networks locally and internationally.

Their extensive and ongoing involvement in policy development, research and training, as well as their involvement in planning and development projects in government sectors, has equipped them with the capacity, capability and skills to develop effective solutions for the planning and management of South African developmental challenges.

These include issues such as the scale of urban growth, sprawl and related environmental threats, the urbanisation of poverty, the energy crisis, globalisation, segregated, inequitable and unsustainable human settlements, the impacts of global warming, and environmental degradation and global economic inter-connectedness.

The expertise and professional services offered by these specialists in the planning and developmental support arena include the following:

• Strategic, long-term and scenario planning
• Metropolitan spatial planning
• Integrated development planning
• Municipal infrastructure planning
• Spatial planning and land-use management
• Urban and rural regeneration
• Planning and design of sustainable human settlements
• Policy and legislation formulation, assessment and review
• Planning and development-related research
• Mentoring and professional advice on the above issues

These professional services, provide industry with the solutions it needs to solve an array of developmental challenges. Through its provision of expert services and collaboration with a number of research councils and foreign entities, BE at UP is making an important contribution to taking the country forward on the way to achieving equity, justice, sustainability and a better future for all.

Traditionally, human resource practitioners have relied on psychometric testing to screen potential employees and determine whether the incumbent that is selected will provide the best fit for both the position and the company. In the current economic climate, it is becoming increasingly important to appoint the right person for the job. The challenge is often to ensure that the candidate that is appointed has the necessary job-related skills to make a meaningful contribution from the start, without affecting productivity.

Having identified the need for job-related skills tests to supplement the traditional psychometric tests, specialists in the University of Pretorias Department of Human Resource Management went about identifying a series of simulation tests that could be recommended to employers who express a need for skills testing.

Although these employee selection and development tools have been used with much success globally and in South Africa over the past five years, they have not been commonly used before by employers due to the time and cost involved. However, advances in technology have resulted in such tests being much more cost and time effective.

The advantage of knowing that a potential employee has the skill, knowledge and ability to perform job-related tasks increases the benefit of making use of work sample and situational judgement tests as part of the selection process.

These tests present a close approximation of job-related skill or knowledge and evaluate the quality of a candidates response to typical job-related situations, both physically and verbally. Such responses represent samples of likely performance, rather than signs of possible performance.

The success of the tests, therefore, lies in the fact that the best predictor of behaviour is observed behaviour under similar circumstances.

The way a candidate behaves during a simulated exercise provides a good indication of how he or she will behave on the actual job.Research has confirmed high job-related validities and the ability for these tests to be generalised to various situations.

Findings in a study based on 158 court cases in the USA revealed that these tests are least likely to be challenged in court as they are highly job-related.

Research also indicates that simulation exercises have a significant incremental validity above traditional multiple-choice type ability and knowledge tests and self-report personality tests.

The simulation tests that are used are high fidelity simulations. They utilise realistic material and equipment that represent the tasks candidates must perform (hard skills), while at the same time simulating situations that require people skills (soft skills). Computer technology, video and assessment centre simulations can be used effectively to generate the required simulations.

Computer simulations are effective in evaluating a potential candidates hard skills, for example skills in MS Word or Excel, call centre interactive scenarios, data entry and typing, accounting skills and filing skills. Video-based situational judgment tests are also effective in evaluating interpersonal skills, while assessment centre simulations are an excellent method of testing day-to-day managerial skills through in-basket, analytical and group exercises.

Products available
Business Enterprises at University of Pretoria (Pty) Ltd, in association with international partners Biddle Consulting Group (BCG) and SkillCheck Inc and its specialists at the Department of Human Resource Management, offers three testing software products: CritiCall for Contact Centres, Encounter Situational Testing and SkillCheck.

CritiCall for Contact Centres is internationally acclaimed pre-employment testing software that enables employers (or recruitment agencies) to test a prospective employees ability to use a computer while listening or speaking, and to select employees who possess this critical skill and ability that is necessary to succeed in a high-stress commercial call centre environment. These skills include listening and understanding, using logic and reasoning, learning and retaining, reading and comprehending, and using a computer while listening or speaking. Among the benefits of this product is the ability to accurately measure the specific cognitive skills of applicants that is a critical requirement in call centre environments. It helps employers identify the right person for the job, automates the testing and scoring system, and reduces staff turnover, increasing the effectiveness of the call centre.

Information Communication Technology (ICT) has over the years moved from being a necessary expense to a necessity that drives communication, offers new worlds of knowledge, simplifies processes, saves time and money but also empowers people. With that in mind, further impetus is to be placed not only on the technological aspects but also the management, social and development aspects of ICT. ICTs are designed by people for people. The focus of ICT must always be on the value it adds to the organisation and its people.

The question to ask when engaging with ICT ought to be: How can ICT add value to the business and empower individuals? ICT can add significant value to the bottom line of the business along the various portfolios of the value chain. By adopting ICT in such a light, management is better able to derive key performance indicators for ICT.

Izandla Zethu believes that ICT has a substantive role to play in emancipating people at the grass roots. It has turned its principles into reality by forming Izandla Zethu as a business entity owned by the Siyabuswa Educational Improvement and Development Trust (SEIDET) and Business Enterprises at University of Pretoria (Pty) Ltd (BE at UP).

SEIDET is a community organisation from the Dr JS Moroka Municipality in Mpumalanga. BE at UP is a commercial research and consulting company wholly owned by the University of Pretoria.

Izandla Zethu is driven by what its clients regard as the four hallmarks of its success:

SKILLS TRANSFER AND TRAINING: Based on the needs of its clients, Izandla Zethu partners with its sister company, Continuing Education at University of Pretoria Trust (CE at UP), and provides training that adds value to its clients.

INDEPENDENCE: Izandla Zethu intentionally separates ICT management and guidance from ICT technical implementation so that it is not influenced by external agents, but rather by client values and principles.

Because of this stance, it is able to see through the myriad of solutions on offer (both ICT and non-ICT) and give clear-headed, independent advice to business, government and communities in their ICT implementations.

THOUGHT LEADERSHIP: Izandla Zethu bridges the gap between government, business, communities and ICT offerings by guiding, advising and overseeing the most appropriate ICT implementation and execution strategies.

It has more than 40 years of combined corporate experience in the ICT sector with skills ranging from enterprise architecture, business and systems analysis and design, ICT project management and business intelligence, among others.

OBJECTIVITY THROUGH APPLIED RESEARCH AND PRACTICE: Izandla Zethu derives its recommendations by drawing from its unique combination of industry best-practice and rigorous academic research. It bases its recommendations on fact and research.

It is imperative for ICT to be made available for use in the community by the community.

The application of ICT in the community should be designed to facilitate participative communication as part of government service delivery and as a tool for social and economic development; this is truly integrating ICT as a critical part of the South African community and as a way people live their everyday lives.

In September 2009, Eskom applied to the National Energy Regulator of South Africa (NERSA) for the third time since the 2008 electricity crisis with a proposal for three tariff increases of 45% each, followed by three smaller ones, to be implemented over a five-year period. However, after deciding to delay the construction of its Kusile power station, Eskom revised these proposals, reducing the initial three increases to 35%. NERSAs final decision was a 25% price increase for the next 3-year period.

In a critique of Eskoms projections in the South African Journal of Science, Prof Anastassios Pouris, Director of the Institute for Technological Innovation at the University of Pretoria, and Roula Inglesi, PhD candidate in the Department of Economics, presented the results of a study undertaken before this recent decision was taken.

Since 2007, Eskom has experienced a lack of capacity in the generation and reticulation of electricity. As a result, in the first quarter of 2008, blackouts became commonplace in the country, with damaging effects to South Africas economy. In the first quarter of 2008, economic growth fell to 1.57% from 5.4% in the last quarter of 2007.

In a presentation to the Parliamentary Committee in February 2009, Mr Jacob Maroga, the then CEO of Eskom, identified the main challenges experienced by Eskom.

These included ensuring continuity of supply, the successful execution of the capacity expansion programme, maintaining Eskoms financial sustainability and the successful implementation of restructuring the electricity distribution industry.

He also elaborated on the current energy situation in the country and the reasons for the 2008 energy crisis.

Prof Anastassios Pouris

Roula Inglesi, PhD candidate

Eskoms new application for electricity tariff increases, submitted at the end of September 2009, motivated for the debate of strategies with which the consequences of the proposed price hikes could be predicted, measured and controlled.

Pouris and Inglesi argue that future electricity demand in South Africa may be affected by the prices suggested by Eskom and contribute some new ideas and perspectives to Eskoms existing arguments regarding the demand for electricity.

The most important issue is the fact that Eskom does not sufficiently take into account the impact of the electricity prices in its electricity demand forecast.

The historical evolution of prices may partially explain the phenomenon. From 1987 to 1991, real prices decreased by 14%. This was followed by a decline of 20% over the period 1992 to 1996.
In 2000, Eskom increased prices by only 5.5%. However, as the trend moves from a decreasing price environment into an increasing one, prices should be expected to have a substantial effect. The importance of price in the demand for electricity is exhibited by recent events. Data released by Statistics South Africa show that the estimated consumption of electricity in South Africa declined by 7% year-on-year during January 2009. However, it was not only the price of electricity that affected demand in the last quarter, but also the closure of some mining operations and the fall in international commodity markets.

Government has the option of funding expansion, either through price increases or through treasury allocations. The appropriate mechanism and the mix will depend on understanding the relationship between electricity demand, prices and economic growth.

As electricity demand is the result of economic growth, prices may become the appropriate mechanism. This means that the increase in prices would most probably have an effect on demand. Pouris and Inglesi therefore propose that prices have a high impact on the demand for electricity.

Employing similar assumptions for the countrys economic growth as Eskom, the results of their forecasting exercise contrast significantly with Eskoms projections, and indicate a substantial decrease in demand. This has extensive implications that should be taken into account in future policy design.

A notification from Business Enterprises at University of Pretoria (Pty) Ltd (BE at UP) to attend the first ever home grown Customer Xperience Conference hosted by our affiliate company Consulta Research (Pty) Ltd. The aim of the conference is to inform delegates about the latest developments in Customer Experience Management.

Delegates will be typically representative of responsibilities in customer experience measurement, customer satisfaction, service quality, customer loyalty, customer retention, experience management and management information.

Speakers that have been invited to deliver presentations include:

• Dr. Tor Wallin Andreassen

Professor Andreassen is the founder of Service Forum, The Norwegian Customer Satisfaction Barometer at the Norwegian School of Management.

• Dr. Jamie Baker-Prewitt

Dr. Jamie Baker-Prewitt is Senior Vice President, Director of Decision Sciences at Burke, Inc. Cincinnati, Ohio, USA. Dr. Baker-Prewitt delivered an outstanding paper called Keeping Customer Relationship Measurement Programs Relevant: Using Your Resources Wisely at the North American Conference on Customer Management, October, 2007

The title of her presentation: Evolving Your Customer Loyalty Approach: Developments and Advancements in Customer Experience Measurement and Management

• Prof. Christian Grnroos

Prof. Christian Grnroos, Professor of Service and Relationship Marketing Hanken School of Economics, Finland. Prof Grnroos is a leading scholar developing the field of service marketing and one of the earliest proponents of the term service management.

The title of his presentation: Managing Customer Experience: Aligning Customer and Firm Gameplans

• Prof. Mike Ewing

Prior to entering full time academe, Professor Mike Ewing was marketing research manager for Ford Motor Company's South African subsidiary. He also held the position of Marketing Manager, Jaguar, for a brief period. Over the past fifteen years he has taught in Australia, Austria, Brunei, China, the Czech Republic, England, Finland, Hong Kong, Malaysia, the Netherlands, Singapore, South Africa, Sweden and the Philippines. In 2004 Mike won the inaugural Dean's Teaching Award in the Faculty of Business and Economics at Monash and in 2007 he received the inaugural Dean's Research Award.

• Prof. Adr Schreuder

Prof Schreuder has personally contributed to narrow the gap that exists in professional marketing training in South-Africa by high level research in the fields of services marketing, service quality, relationship marketing, marketing-orientation, research, market segmentation and product positioning. Adr sees himself as one of the first generation free-lance academics in the South African University system.

The title of his presentation: Customer Experience in High Definition

• Mr. Ian Rheeder

Ian is a prolific writer and is widely published, almost monthly, by marketing journals. Current research on the psychology behind What makes individuals, managers and leaders successful. In anticipation to present to the SA Marketing Research Association (SAMRA) conference in June 2010, he is currently researching the viability of the Net Promoter Score (NPS) with Prof. Adr Schreuder.