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BUSINESS DAY TV: Uproar at Tiger Brands unlikely after acting CEO loses out
by Transcript Service, March 9 2016,
2016-03-10 19:25:31.0
BHEKI Sibiya is deputy chairman of Tiger Brands.
BUSINESS DAY TV: Tiger Brands shares gained the most in almost three months today after the food producer announcsed Lawrence MacDougall from Mondelez International as its new CEO. But there is some trepidation around whether or not this potentially opens the door for current acting CEO Noel Doyle’s exit? Bheki Sibiya, deputy chairman of Tiger Brands joins us on the line now.
Bheki...so first up, how extensive a head hunt was embarked on for the top job and with Lawrence MacDougall now taking or claiming that top spot, what does he bring to the table?
BHEKI SIBIYA: Thank you very much for the opportunity to engage with yourselves and your listeners. Certainly it was a global, worldwide search which we conducted with the assistance of Heidrick & Struggles, which is a very professional organisation with a lot of experience in this area. For us, what we found in him is what we are looking for as well, is really experience in FMCG (fast-moving consumer goods) continentally and globally.
And we found that, if I can identify just four things, his strategic acumen is certainly not questionable looking at some of the things which I am going to be covering. The M&A (mergers and acquisitions) experience, he has really driven quite a number of acquisitions and ensured that they are bolted in and integrated appropriately. He has conducted quite a few turnaround, or rather successful turnarounds, Cadbury and Bromor Foods among others. And fourthly he has a track record of excellent delivery in the FMCG area, and so we are excited that he is coming on board, and the share price indicates that our investor community as well have a vote of confidence in him and the fact that the board has taken the decision.
BDTV: Certainly it does look like a very strong appointment that you’ve made. I suppose the one question is why it wasn’t within the Tiger Brands stable and whether Noel Doyle will be happy to remain as chief operating officer when he stands down as acting CEO? Will there be any internal ructions as a result of having picked someone from outside the group?
BS: We cannot say for sure but the process is, we considered both the internal and external candidates and the internal candidates were really given extensive consideration because they already know the company, we also know them, and they have a proven track record of their own. It is our understanding after engaging with Noel that in terms of his maturity, he is accepting the board decision, that he was appointed as a chief operating officer and it is the role that he is going to be doing as he moves forward.
Would there be any ructions? Our view is no there will not be because our engagement with Lawrence was, let him come in, let him understand the team, their strengths and their developmental areas, let him really work with them to achieve the strategy. So it is unlikely.
BDTV: When it comes to Lawrence’s capabilities you highlighted earlier strategic acumen: does a new man at the helm bring with this a step change in the Nigerian strategy but I guess more so even, the broader Africa strategy for Tiger Brands?
BS: He certainly is going to bring that for while. As a company we are saying we are firmly anchored in SA because that is our dominant market. And for us, though, we want to grow into the rest of the African continent and indeed in other developing markets. And understanding that Lawrence has operated in Eastern Europe, Middle East, Russia and certainly in the African continent, he brings that higher helicopter view with a clarity of vision and indeed the experience in those geographies. So he is going to lift that word, the Tiger to where it belongs.
BDTV: Bheki, have there been any changes in the Africa strategy since the pain that you’ve taken in Nigeria in particular, and will those changes then, the changes in the strategy if there are any, have they been put to Lawrence and you’ve said to him this is what you want him to do?
BS: When one appoints the CEO, it’s a vote of confidence on the individual, their expertise and their experience and therefore it would not be appropriate for the board to impose a strategy on him. We debated our strategy and we said to him as he comes on board, he needs to adjust and tweak the strategy to fit what he believes is appropriate.
Let’s talk about Nigeria. Nigeria we have paid our expensive private-school fees and for us as a board we continue to reflect the lessons we have learnt and how we are applying them in ensuring that we modify our strategy. Certainly there are modifications but also we are going to have a strategic planning session later in the year where we will be much more thorough, he will be on board driving the executives and guiding the board and appealing to the board that it buys into his strategy as we move forward.
BDTV: As part of his pitch to you, where does he see some of the growth opportunity moving forward?
BS: He certainly sees that we need to continue to consolidate our presence in SA because SA is the crème de la crème of the market in the FMCG area and he said the rest of the African continent. However, as well he is going to be articulating that strategy and therefore I wouldn’t want, as it were, to pre-empt him as he articulates it. But the rest of Africa and indeed beyond the African continent he is looking at that being the market he wants to play in and win in.
BDTV: You’ve said that the effective date of Lawrence’s employment will be communicated by the end of March, can you give us a clearer idea of when he is actually going to start?
BS: I cannot because by us saying by the end of March...it’s not really the restraint of trade as such but for him we want to ensure that he does not for good order, burn his bridges with his current employers, so he’s managing the exit in such a manner that when he joins us it is a professional, honourable move from one company to another, to a bigger role because this is a bigger role.
So he is managing that and we are indulging him and we just felt that our shareholders and a lot of our stakeholders need to know that the board has decided it is looking at this one possibly in May, but I think it is going to be announced pretty soon.
BHEKI Sibiya is deputy chairman of Tiger Brands.
BUSINESS DAY TV: Tiger Brands shares gained the most in almost three months today after the food producer announcsed Lawrence MacDougall from Mondelez International as its new CEO. But there is some trepidation around whether or not this potentially opens the door for current acting CEO Noel Doyle’s exit? Bheki Sibiya, deputy chairman of Tiger Brands joins us on the line now.
Bheki...so first up, how extensive a head hunt was embarked on for the top job and with Lawrence MacDougall now taking or claiming that top spot, what does he bring to the table?
BHEKI SIBIYA: Thank you very much for the opportunity to engage with yourselves and your listeners. Certainly it was a global, worldwide search which we conducted with the assistance of Heidrick & Struggles, which is a very professional organisation with a lot of experience in this area. For us, what we found in him is what we are looking for as well, is really experience in FMCG (fast-moving consumer goods) continentally and globally.
And we found that, if I can identify just four things, his strategic acumen is certainly not questionable looking at some of the things which I am going to be covering. The M&A (mergers and acquisitions) experience, he has really driven quite a number of acquisitions and ensured that they are bolted in and integrated appropriately. He has conducted quite a few turnaround, or rather successful turnarounds, Cadbury and Bromor Foods among others. And fourthly he has a track record of excellent delivery in the FMCG area, and so we are excited that he is coming on board, and the share price indicates that our investor community as well have a vote of confidence in him and the fact that the board has taken the decision.
BDTV: Certainly it does look like a very strong appointment that you’ve made. I suppose the one question is why it wasn’t within the Tiger Brands stable and whether Noel Doyle will be happy to remain as chief operating officer when he stands down as acting CEO? Will there be any internal ructions as a result of having picked someone from outside the group?
BS: We cannot say for sure but the process is, we considered both the internal and external candidates and the internal candidates were really given extensive consideration because they already know the company, we also know them, and they have a proven track record of their own. It is our understanding after engaging with Noel that in terms of his maturity, he is accepting the board decision, that he was appointed as a chief operating officer and it is the role that he is going to be doing as he moves forward.
Would there be any ructions? Our view is no there will not be because our engagement with Lawrence was, let him come in, let him understand the team, their strengths and their developmental areas, let him really work with them to achieve the strategy. So it is unlikely.
BDTV: When it comes to Lawrence’s capabilities you highlighted earlier strategic acumen: does a new man at the helm bring with this a step change in the Nigerian strategy but I guess more so even, the broader Africa strategy for Tiger Brands?
BS: He certainly is going to bring that for while. As a company we are saying we are firmly anchored in SA because that is our dominant market. And for us, though, we want to grow into the rest of the African continent and indeed in other developing markets. And understanding that Lawrence has operated in Eastern Europe, Middle East, Russia and certainly in the African continent, he brings that higher helicopter view with a clarity of vision and indeed the experience in those geographies. So he is going to lift that word, the Tiger to where it belongs.
BDTV: Bheki, have there been any changes in the Africa strategy since the pain that you’ve taken in Nigeria in particular, and will those changes then, the changes in the strategy if there are any, have they been put to Lawrence and you’ve said to him this is what you want him to do?
BS: When one appoints the CEO, it’s a vote of confidence on the individual, their expertise and their experience and therefore it would not be appropriate for the board to impose a strategy on him. We debated our strategy and we said to him as he comes on board, he needs to adjust and tweak the strategy to fit what he believes is appropriate.
Let’s talk about Nigeria. Nigeria we have paid our expensive private-school fees and for us as a board we continue to reflect the lessons we have learnt and how we are applying them in ensuring that we modify our strategy. Certainly there are modifications but also we are going to have a strategic planning session later in the year where we will be much more thorough, he will be on board driving the executives and guiding the board and appealing to the board that it buys into his strategy as we move forward.
BDTV: As part of his pitch to you, where does he see some of the growth opportunity moving forward?
BS: He certainly sees that we need to continue to consolidate our presence in SA because SA is the crème de la crème of the market in the FMCG area and he said the rest of the African continent. However, as well he is going to be articulating that strategy and therefore I wouldn’t want, as it were, to pre-empt him as he articulates it. But the rest of Africa and indeed beyond the African continent he is looking at that being the market he wants to play in and win in.
BDTV: You’ve said that the effective date of Lawrence’s employment will be communicated by the end of March, can you give us a clearer idea of when he is actually going to start?
BS: I cannot because by us saying by the end of March...it’s not really the restraint of trade as such but for him we want to ensure that he does not for good order, burn his bridges with his current employers, so he’s managing the exit in such a manner that when he joins us it is a professional, honourable move from one company to another, to a bigger role because this is a bigger role.
So he is managing that and we are indulging him and we just felt that our shareholders and a lot of our stakeholders need to know that the board has decided it is looking at this one possibly in May, but I think it is going to be announced pretty soon.
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