An
edited extract from a speech about Leadership in the Wine Industry made by
Michael Ratcliffe at the Stellenbosch
launch of the book ‘Grape - from Slavery to BEE’ by Dr. Wilmot James,
Prof Jakes Gerwal and Jeanne Viall.
A
way forward for the South African wine industry?
Would it be inappropriate to ask just who is
in charge of the South African wine industry? Who is providing overall
leadership for the industries growth and development and who is laying the
groundwork for a sustainable future?
 |
| Warwick Managing Directo - Michael S. Ratcliffe |
The South African wine industry is having a
tough time. The trading environment is brutal and global economic conditions
show little evidence of improving. The industry is beset with challenges and is
in need of direction. Where is the decisive strategic thinking, the ambitious
and bold master plan and the careful thought that characterises the most
successful global businesses? Where is the cut and thrust?
The leadership vacuum is not a new phenomenon.
In the past decade, this leadership challenge lead to complex efforts to create
a leadership body called the South African Wine Industry Council (SAWIC), but
this well-intentioned project failed due to unnecessary politicisation of the
process and through the unfortunate triumph of vested interest over best
practice. Since the demise of SAWIC, it has been very quiet. Our industry has
many organisations (VINPRO, WKSA, WOSA, SALBA) which provide valuable, but
localised leadership. What is urgently needed is a legitimate overarching body
to corral the industry in one unified direction?
Of late, there have been questions asked of
Wines of South Africa (WOSA) concerning their efficacy at providing leadership
to our industry. This is misguided as WOSA is a marketing body with a simple
mandate to create a generic marketing capability in the export markets. WOSA
does this very well on a limited budget and they are a valuable industry asset.
WOSA does not have the mandate to provide broader strategic industry
leadership. WOSA’s board is also conflicted as it is (in effect) an organ of
the South African Liquor Brand Owners (SALBA) and Wine Cellars South Africa
(WKSA) whose majority vote enables them to determine the best use of industry
monies for generic export marketing.
One of the key functions of a National leadership
organ would be to create and maintain relations with government. Government largely
ignores the wine industry apart from an occasional hand-out from the Department
of Trade & Industry (DTI). The wine industry is a major employer, a disproportionately
large contributor to the fiscus and an unutilised secret weapon for South
African Tourism. Why is it so difficult for the wine industry to be taken
seriously by government? Is it because government is so disorganised and
disinterested, or is the wine industry to blame for lacking focus?
What
should be done to provide leadership? This speaker does not pretend to know the
solution, but is humble enough to venture at least a few points that hopefully
will fuel the right kind of debate.
I believe
that we need to find a way to resurrect a central representative body with
WOSA, DTI, VINPRO, WKSA, SALBA & Government (local and national) all
invited to the table. It should be composed of the best people for the job and
not strive to be all encompassing in its representation. This board should have
a lean staff of well paid senior strategic thinkers, lobbyists and perhaps a
few admin personnel. It should have the aim of empowering the intellectual
capital that resides in our industry to create a forum for strategic planning. The
board should be mandated to establish and foster a high level relationship with
local and National government including the departments of Agriculture,
Finance, Labour, Public Enterprise and Tourism. It should participate actively
and openly in lobbying at the highest level and should have a dedicated budget
for this purpose. In order to keep this body lean and accountable, it should be
funded by government and should not provide funding to any other bodies.
For this
body to have a chance at success, it needs to have someone in Government to
talk too. Incompetence, a stubborn lack of interest and unacceptably high staff
turnover in the Dept of Agriculture has long been a stumbling block for wine
industry leadership. Government and more specifically Agriculture needs to show
some leadership, get some focus, stop messing around with the well being of the
people and give the wine industry the attention that it deserves.
Through effective leadership, the industry could start
to perform closer to its potential, start delivering a meaningful return for
all and realise a ‘Grand Plan’ of uplifting an entire generation.
There
will be much disagreement with the positions taken above, and many of these
comments might be construed as being controversial. However, it would be my
wish that the South African wine industry enter into more rigorous debate
around the topic of leadership.
“If you don’t know where you are going, every
road will get you nowhere.” Henry Kissinger
