LONDON — ChemSystems’ Hugo Basson, a trained scientist with an MBA who has spent most of his career in management, is a reflective leader as you’ll hear in this episode of the CEO SleepOutâ„¢. Feedback from colleagues and staff ahead of the event has been instructive – ranging from advice on how to keep warm through to newfound respect and pride. His unusual observations include an appreciation in how a younger generation of employees put far more credence on an organisation’s culture – and whether or not it is serious about contributing to broader society. – Alec Hogg
In this episode of the CEO SleepOut™ update we talk with Hugo Basson, who’s the MD of ChemSystems. Well, it’s good to link up with you today, Hugo. I was chatting with your colleague, Nicole Solomon from AECI and she was telling me how the different divisions or different companies within the AECI were pretty autonomous in what they decided on. So, your decision to go and SleepOut™ was not coerced, I take it?
No, it’s obviously a very high-profile event and something that I’ve followed over the last couple of years. I’m quite proud to represent AECI when they asked me if I would do so. It is, to be honest, the entrance fee for some of the companies, might be a bit steep but to be chosen to be one of the AECI representatives was a great opportunity for me and I grabbed with both hands. I’ve also been recently elected to the AECI Corporate and Social Investment and Fund Committee. I’m very much involved in that side in the Group, per say. So, yes, very much a high-profile event. Something that I’ve always been keen on and when I had the opportunity – it’s great for me to be part of it.
Hugo, it’s interesting to have a scientist, because that’s what you are. You did a BSC in Chemistry and you can’t get more scientific than that in this field. Usually, scientist brains work a little differently from those who you’d expect to see more on the corporate social investment. What pulled you here?
Yes, look, my study in science was a long time ago and I followed that up 10 years later, which was sort of the late 90s, with an MBA. I’ve always liked the business side of things. I was a scientist in the pure form for a relatively short period of time before I went into sales and sales management, and then eventually into corporate management. So, yes, now, as the MD of the company I tend to look at things very differently. It’s still a chemical business. I still love the science part of it but with time one tends to look at things very different. It’s obviously very much financially driven but there’s no ways you can be ignorant to what’s happening around you and also, the responsibility that corporations, like ourselves, have towards contributing to society, and very much aware of that and a very big part of our KPI and our responsibility as well. So, yes, I never really thought about scientists being interested in this part of it. As I say, my role these days is very much one of the leader of the organisation and I see it in that light.
But it is interesting. AECI itself is a little bit of an outlier. Nicole was explaining how you give R35m a year, even though your grant or your official statement is 1% of after tax profits. So, you are contributing 3.5 times what your own requirement or internal requirement is, which tells us a little bit that there’s something going on at AECI. There’s something about your societal involvement that perhaps you could unpack for us and where does this come from? Really, why I’m saying this the business of business is business, is no longer true, is it? The business of business is a lot more than that today?
Absolutely, if you want to do, there’s a couple of tickets to business, especially in SA. It’s not just that. AECI is earning a huge part of their income now outside SA, and one can say that we’re trying to disconnect or we’re trying to become a bit less dependent on some of the rules and regulations in SA. But if you look at our commitment towards that that is simply not true. We’re very much aware of not just what’s required from us but also, going a bit beyond that. But when you say, what has changed and what is going on – yes, I think we have got a very strong non-executive board that makes sure that we’re a good corporate. It’s also something that we really want to distil in the culture and the fibre of who we are as a business. If you also look at how things change. The new generation that we employ are very much on top of these sorts of initiatives and it goes far beyond just things like our fellow citizen in SA. It’s towards environmental initiatives and so on. So, there’s quite a big change in the requirements, not just from customers and business environment in general, but also from employees that joins us and they want to know that they’re working for a business that is driven just beyond financial performance. It’s something that we are quite aware of and as leadership we need to be cognisance of that. It’s very strange when you look at the millennials and the people that want to join the organisation. They look for meaningful, the sense of purpose, and belonging more than just the money.
That’s a very important point that because once you get out of the executive suite and you start talking within the organisation there’s often a different perception. But the point that you’ve put your finger on, that the millennials think differently. I’ve come across this on numerous occasions here, in London, where you’re bumping into younger people all the time and they have a, as you say, a very different approach. But there are no secrets in this world anymore either. I saw from your Facebook page that you’re a dad so, you get influenced by your kids?
Yes, apart from just the technology – yes, my kids are still relatively small, both still at school, and one tends to think that their lives… We don’t tend to agree with it. What I always say is, I don’t think their lives are better or worse. It is just very different from the way that we grew up. They are a lot wiser, a lot more informed but where somebody like myself, was very much driven to be successful, to almost have a lifelong career with one company, and to dedicate my life to a business. They are just very different and I think the onus is on this particular generation to make that shift, to embrace that because if you just look at the levels of wisdom and the level of technological expertise and the way that they think, there’s a lot to be said for that and to tap into that. I’m always amazed by very successful, young start-up companies, entrepreneurs – they’re almost fearless. We were very subservient when we started our careers, we did what the boss said, and that culture is changing. They’re not scared to question things and I think it’s very good for the business and for industry to have a young generation that think like that. I think the adjustment is more for us to recognise and not to always want to refer back to the good old days, because in terms of economic terms the good old days will never be back again – we talk about the new normal. Things are extremely tough economically, and it is a huge concern for us that the economy is not doing all that well. The quarter 1 GDP numbers that reduce by 2.2% – we feel it in the business, on a month-to-month basis so, yes, it’s a very different games these days.
The balance of power has almost moved from the employer, who made all the rules, to the employee, who says, ‘well, why should I join you if I’m a bright young thing coming through?’ But how do you expect that your night in the open next Wednesday, 11th July, is going to change or have an impact on you?
Well, for me personally, just being part of it meant I’ve had numerous discussions about the event coming up next week with my colleagues/employees in the business. It was a great forum to just debate the reality of the SA that we live in, and I said to them, ‘my view on it, it is extremely easy to just give something to somebody but we give out of excess, most of the time.’ When my kids were small we always used to keep in the back of the car a bag full of some of their old toys and stuff, and when we see somebody next to the road we give it. But it didn’t mean that we deprived them of anything, or ourselves. It was always because of the excess that we had, and I don’t think we really understand what it must be like to live in absolutely despair. This is a conversation that I can have now with people and on the one hand, I’m excited about it, but on the other hand given a day like today, where it’s absolutely freezing – I think it’s going to be extremely tough. My mindset, I think, will be forever changed. Although it’s easy to get up at 06h00 at Liliesleaf Farm and go back to a hot shower at home, but just the realisation that there’s a huge amount of people in the country that will never have the privilege and that is the daily existence of their life, and to experience that I think will be a lifechanging event for me, personally
It’s interesting you say that because of the CEOs who have slept out, nearly 500 of them, those that I have talked to, they say exactly that. They say that it was a completely differently impact on them that they anticipated. Many arrived there thinking, oh, well, they’re doing their bit for charity for the one night. But leaving, looking differently at homeless people in the future.
Yes, and I think that’s what it’s all about. I think we’re faced with it on a daily basis and it’s easy to give a couple of Rand at the traffic lights to say, but we actually do not know what it must be like, or we’ve never experienced even a small glimpse of what that life must be like. A life deprived of a sense of purpose and belonging, and apart from just all the hygiene factors like, shelter, food, eat – all these things we do take for granted. I’m sure it will make a huge impact on my life. I’ve been involved in some other ministries at our church and so on. Not to this extent where you impact lives of people that has got other needs but this is a first time where you’re really going to feel it literally on your skin, what it must be like to live like that on a day-to-day basis. So, yes, excited on the one hand but maybe a small sense of trepidation on the other side as well.
Hugo, in the conversations that you’ve had with colleagues and with staff, how do they feel about you participating?
Well, it ranged from surprise that I accepted the invitation, to pride that one of their own is prepared to do that, and excitement. They’re keen to share the experience, looking forward to the feedback. Obviously, a lot of them quick to give to advice, wanting to know what I can take and what can I not take. Quickly looking on the weather to predict what it’s going to be like. So, quite a sense of excitement, I must say.
And involvement?
Yes, they’re very excited for me, and they can’t wait for the feedback and, as I say, quickly tell me where I can get the hottest/warmest socks and this and that and the other things so, they’re quick with advice. Yes, also depending on who you speak to. I spoke to the chairperson of our Employment Equity Committee and I made a joke and I said she needs to bring me a cup of soup or something late at night. She was very proud that I’m going. Something very positive to feedback to the EE Committee and to the rest of the company as well. So, yes, a very positive response.
Just to close off with. Now that you’re on the CSI Committee of this very important industrial group in SA. How do you think this experience, just already your mind has been focussed on something very different for the last few days, no doubt, leading up to Wednesday and after Wednesday – you might be looking at things in a different way. Do you think it’s going to help you when you sit there and assess where that R35m should be allocated?
I think so. When I joined the CSI, I was quite surprised just how detailed and how thorough the allocation is, how the devaluation is done. So, I’m very positive that it gets allocated correctly and how widespread the allocation – just how widespread that allocation is and how many people get affected by that. But for sure, it’s great then to go and you go and visit, let’s say a specific institution or when you evaluate a charity to talk. Well, from one day’s worth of personal experience I think would obviously make a big difference. I think one would be able to probably be involved at a much higher of empathy than before, and I think that’s quite important for that.
Hugo Basson is the MD of ChemSystems, and a company in the AECI Group and as you heard from him, he’s going to be sleeping out on the 11th July as part of the team that has been sent by, being volunteered or volunteered for by AECI. I liked a lot of what he was saying there. It’s when one joins a board of directors you go into the company, do a little bit if research, try and understand a bit more about it. But I guess, when one is put onto a CSI Committee what background do you have, excepting your own? Well, many of those who are sleeping out at the CEO SleepOut™ will have a lot more practical experience after Wednesday. Well, that’s the latest update of the CEO SleepOut™. Until the next time, cheerio.
