Execution is more vital than strategy for startup success




Execution is more vital than strategy for startup success

Strategy sets the course for startups, but without team alignment and pragmatic action business will fail. After ten years of building capacity for thousands of entrepreneurs in Africa, Asia and Europe, the one thing I know to be true is that smart-thinking founders who favour pragmatic action and team alignment over everything else win. 

Starting, running, and growing a successful business is no easy feat. Founders navigate the first year facing the dreaded statistic of a 70% potential failure rate. If a startup is lucky enough to make it through the first year, the chance of not making it drops to 35% by year three. 

The cruel truth as to why so many emerging businesses die? Poor execution, bad execution, and focusing on the wrong thing to execute ranks high amongst the reasons. But there’s a lot that founders can do about this.  

1. Execution is a competitive differentiator

In a volatile, uncertain, unpredictable world, strategies too often live on a server somewhere. Having an idea is the easier and less valuable part of the business. Marshalling the resources and humans needed to execute the business strategy is a completely different story. This is the hardest thing to do in business, which is why founders who have teams that nimbly execute well on strategy harness a major competitive differentiator.  

Clearly defining the roles and responsibilities in a fast-moving, growing business is masterful. Ensuring that the metrics, targets and rewards are in place to empower this is important. Great communication is the lubrication that turns strategy into united action. Not every company excels at communication or people management and culture. Which is why execution is hard. 

2. Founders set the tone

Outsourcing execution is disastrous – about as disastrous as trying to get someone else to realise your dreams or to live your life for you. And when it comes to execution, founders are the leaders who set the tone and create the culture that supports this. 

Founders and CEOs shape the flow on a Monday morning for how the rest of the week will pan out. Leaders set the tone with a new client when we sign the deal. And we set the tone with our team when the chips are down. Accepting how much we as founders set the tone for the present and future, is how we change this. 

3. Rituals and rhythms

What helps good communication and activates action in teams are the rituals and rhythms of good leadership, communication and project management. In business, feedback is the breakfast of champions and regular rituals that champion and measure execution is a massive difference maker. Those companies that make the time to do project management well, and enable an adult culture where teams take accountability, innovate and own things goes a long way to building businesses. 

 I asked Mamela Luthuli, a leader in the technology industry who is one of the best trailblazers I know when it comes to leadership and execution what her secret to execution is. This go-getter recently won the IT Personality of the Year Award from the Institute of Information Technology Professionals South Africa for her achievements.  

 This is what Luthuli told me: “Execution is when the rubber hits the road. The best way to execute is to keep it simple and actionable. It is also extremely important to be an example to your team because they will follow suit by becoming doers,” she says. 

 “Execution works hand in hand with strategy — the real trick is to ensure that everyone buys into the strategy and is aligned about what needs to get done in the business,” Luthuli adds. “Execution needs great leadership with effective communication. Leaders must communicate the purpose and vision of a company convincingly and consistently. This isn’t a once-off but is a process. It is something you do repeatedly to get buy in from your team. To drive great execution, communicate clearly and create a culture of getting things done on time and done well.” 

 Execution is a people thing; it is about culture and relationships. When founders get this consistently right it becomes a compounding force that truly scales sustainable businesses. 

Words by Catherine Young 

Catherine Young is the founder of Thinkroom Consulting and Thinkubate. She is also Managing Partner of Grindstone and Grindstone Ventures. As the founder of Thinkroom, Young is involved in entrepreneurial ecosystem development across Africa and has grown businesses into Southeast Asia and the UK. A SME ecosystem influencer in Africa, Young works with clients in the space of entrepreneurship development across the continent. 

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HONOR blazes trail in foldable and AI tech at MWC 2024




HONOR blazes trail in foldable and AI tech at MWC 2024

Chinese smartphone maker HONOR is disrupting the mobile industry with its innovative foldable devices and cutting-edge AI capabilities, solidifying its status as a tech trailblazer at the recent Mobile World Congress (MWC) 2024 in Barcelona.

The company’s pioneering spirit and bold vision were on full display, earning it the coveted “Best in Show” GLOMO award and a staggering 45 “Best of MWC” nods from global media – an unprecedented feat for a Chinese tech brand in five years.

At the core of HONOR’s game-changing showcase were two audacious strategies: an AI-empowered all-scenario approach focused on seamless cross-OS collaboration and human-centric AI integration across devices; and an open embrace of the AI revolution through strategic partnerships with industry titans like Google, Microsoft, Intel, NVIDIA, and Qualcomm.

The Magic6 Pro: AI Trailblazer HONOR grabbed the spotlight with the global debut of its Magic6 Pro smartphone, flaunting groundbreaking AI capabilities – most notably in automotive control. In a jaw-dropping demo, the Magic6 Pro’s AI-powered eye-tracking allowed for hands-free vehicle steering using just eye movements. By simply gazing at buttons for a few seconds, users could activate commands and control the car’s motion – a tantalising glimpse into the boundless potential of human-AI interfacing beyond traditional inputs.

The Magic V2: Foldable Powerhouse Since unveiling at IFA 2023, HONOR’s Magic V2 foldable has been a media and consumer darling, scooping up 27 “Best of IFA” awards. Hailed as the world’s slimmest and lightest inward-folding smartphone, the Magic V2 pairs revolutionary design with industry-leading battery prowess, cementing HONOR’s foldable tech dominance.

South African Market Domination HONOR’s innovations have struck a chord in the South African market, where it was named the fastest-growing smartphone brand in Q4 2023, seizing the leading market share, per Counterpoint Research. With the Magic V2 and Magic6 Pro slated for imminent local launches, HONOR is poised to revolutionise the regional smartphone landscape.

As buzz builds around its paradigm-shifting devices, HONOR is driving crucial conversations about the transformative impact of foldables and AI on the tech sector’s future. The company’s vigorous pursuit of innovation through open collaboration promises a wellspring of groundbreaking possibilities – while earning invaluable consumer trust.

To learn more, visit HONOR at https://www.hihonor.com/za/phones/honor-magic-v2/

Read next: HONOR sponsors key ICT summit to boost digital access

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New $50m fund aims to catalyse South African tech boom




New $50m fund aims to catalyse South African tech boom

A newly launched venture capital fund is setting its sights on propelling South African and African technology startups to new heights. Conducive Capital, a majority black-owned firm, aims to raise $50 million over the next two years to invest in disruptive technologies with the potential for global scaling.

The fund, which opened its doors recently, is the brainchild of tech industry veterans Clive Butkow and Mitchan Adams. Butkow, formerly CEO of Kalon Venture Partners, and Adams, co-founder of fintech pioneer Ozow, have collectively invested over R300 million in early-stage companies with an impressive 30% internal rate of return over the past seven years.

“There is strong demand for quality capital to support emerging businesses in South Africa, with the deployment of early- and growth-stage capital,” said Butkow. “We are plugged into networks that can open doors to international ecosystem players and mentors, as well as local and global investors for follow-on funding.”

Conducive Capital is targeting an initial $15 million close in July 2024, with the ambition of hitting its $50 million hard cap within 24 months. The fund will focus on post-revenue startups with strong unit economics, proven product-market fit, and the ability to scale locally and globally.

While financial returns are paramount, Conducive Capital also has a mission to improve diversity in South Africa’s VC landscape and nurture the next generation of black women investors.

“We need women in this space in particular,” Adams stated. “And black women – there are not nearly enough. And Clive has been clear from the start: part of our reason for existence is to share knowledge and pass the baton to the next generation.”

The founders’ pedigree from disruptive firms like Kalon and Ozow means the fund can provide not just capital but strategic guidance, operational expertise, and mentorship. “We are the entrepreneurs behind the entrepreneurs,” Butkow remarked, adding that their startup operating experience gives them “a leg up” on local competitors.

In today’s innovation-driven economy, Conducive Capital believes fostering groundbreaking technologies will be key to maintaining a competitive edge. “We have identified major industries and technologies that are building the foundation to empower corporations and individuals in South Africa and Africa to create meaningful, sustainable solutions and improve millions of lives,” said Butkow.

“Conducive Capital is not just an investment; it’s a partnership in growth and innovation – and it’s built for transformation.”

Read next: Funding gap: Africa is rich with women entrepreneurs, but…

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South Africa’s FATF greylisting: A wake-up call for fintech and compliance




South Africa’s FATF greylisting: A wake-up call for fintech and compliance

South Africa’s recent greylisting by the Financial Action Task Force (FATF) has sent shockwaves through the nation’s financial and technology sectors. The move, which cites the country’s lacklustre efforts in combating money laundering, terrorism financing, and proliferation financing, is a wake-up call that cannot be ignored.

For the fintech industry, in particular, the greylisting is a harsh reminder of the critical importance of robust compliance measures. As companies strive to innovate and disrupt traditional finance, they must also prioritise anti-money laundering (AML) and know-your-customer (KYC) protocols. The FATF’s findings have exposed vulnerabilities that could be exploited by bad actors, putting fintech firms at risk of inadvertently facilitating financial crimes.

The greylisting’s reputational damage is already being felt, as international companies exercise caution in their dealings with South African individuals and businesses. Enhanced due diligence requirements are likely to increase compliance costs and cause delays in cross-border transactions. For an industry that prides itself on efficiency and convenience, these added hurdles could hinder growth and adoption.

Along with the news that South Africa received its worst score yet in the recent Corruption Perceptions Index by Transparency International, the greylisting has compounded our already reduced economic prospects and slow pace of job creation.

However, the situation also presents an opportunity for fintech companies to lead the charge in fostering a culture of compliance. By embracing cutting-edge technologies like blockchain, biometrics, and artificial intelligence, they can streamline KYC processes, bolster transaction monitoring, and stay ahead of evolving financial crime typologies.

Moreover, collaboration between fintech firms, regulators, and traditional financial institutions will be crucial in addressing the FATF’s concerns. By sharing intelligence and best practices, the industry can collectively strengthen its defences against money launderers, terrorist financiers, and proliferation financiers.

South Africa’s journey towards delisting will be arduous, but the potential rewards are immense. A robust AML/CFT framework not only safeguards the integrity of the financial system but also fosters investor confidence and economic growth. Fintech companies that embrace this challenge and prioritise compliance will be well-positioned to thrive in the post-greylisting era.

As the government works to address the FATF’s recommendations, the private sector must play its part. Complacency is not an option; the stakes are too high. By proactively investing in compliance and leveraging technology, fintech firms can contribute to South Africa’s rehabilitation and cement the country’s position as a leading hub for financial innovation.

The FATF’s greylisting is a stark reminder that the fight against financial crime is an ongoing battle. South Africa’s fintech industry has the opportunity to lead by example, demonstrating that innovation and rigorous compliance can coexist, and that financial inclusion need not come at the cost of integrity. It’s a challenge worth embracing, for the sake of the nation’s economic future and global reputation.

Based on an opinion piece by Hawken McEwan, Director of Risk & Compliance at DocFox

Read next: Africa’s fintech boom: 13x growth by 2030

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How wider broadband access can help businesses solve their recruitment issues




How wider broadband access can help businesses solve their recruitment issues

Investments in infrastructure and more spectrum availability have made it cheaper and easier for operators to roll out mobile broadband networks in both urban and rural areas. Aside from the data cost savings, this presents businesses with a number of opportunities when it comes to hiring people and developing and retaining skills.

During his State of the Nation Address earlier this month, President Cyril Ramaphosa revealed how spectrum auctions had a significant impact on the price and availability of internet access across South Africa. Today, only 21% of South Africans do not have access to the internet.

While Census 2022 data shows that only about 13.3% of South Africans have a home broadband connection, the impact of widespread, stable internet connections for South African businesses impacted by skills shortages and young people developing their skills, cannot be underestimated. Here are three ways that widespread broadband connectivity can contribute to solving hiring issues.

1. Retaining skills

At around the same time that “work from home” became a buzzword, “semigration” entered the lexicon. Driven by the ability to work from anywhere, people started to explore moves to other provinces or to smaller towns, in search of better opportunities, better services, or lower living costs. Real estate data shows that this is still a significant trend in South Africa and businesses should be considering how it impacts them.

Cloud-based infrastructure means that people who choose to semigrate, along with their skills and institutional knowledge, need not be lost to businesses. So if a Gauteng resident doing a job that does not require them to be on site, decides to make a move to Mossel Bay, there is no reason that the company they work for couldn’t retain them.

2. Advancing skills

The “homework gap” is a phenomenon that refers to the difficulty students have in completing homework and academic assignments, without access to reliable internet at home.

Studies conducted around the world have found a relationship between the homework gap and educational outcomes and future success in higher education. The expansion of internet access, particularly into previously unserved and low income communities in South Africa, is therefore critical, and will have a significant impact on educational outcomes. And while businesses may not benefit from this immediately, in the long term, it will go a long way towards addressing South Africa’s skills shortages, especially in STEM fields.

3. The skills pool is bigger

Technology like cloud computing allows people to access corporate business systems remotely and securely. For example, a business with a cloud-based telephony system does not require people to be in the office to make or take calls. Employees can log into their extension from their laptops, use an IP handset, or download an app on their mobile phones to make ‘landline to landline’ calls. Combined with cloud-based productivity tools that allow access and sharing of documents and data, collaboration and meetings, this means that people can work without ever needing to be in the same space.

Increased and improved broadband coverage coupled with work from home practices means that companies can expand the pool of candidates when recruiting. Businesses are no longer tied to a geographic location when hiring, allowing them to find the skills just about anywhere as small towns, rural areas and townships come online.

South Africa’s skill shortages pose a serious problem for businesses, but access to affordable, stable and reliable internet outside of big cities will go a long way towards widening the pool of available candidates, retaining skilled people and developing the skills pipeline for the future. There is still work to be done until we get there, but the investment will be worth it in the long run.

Words by Nic Laschinger, CTO, Euphoria Telecom

Read next: Critical Infrastructure Blackouts Top South Africa Business Risk for 2024

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Xero unveils AI assistant to revolutionise small business accounting




Xero unveils AI assistant to revolutionise small business accounting

Xero previewed its new AI-powered smart assistant, Just Ask Xero (JAX), at its inaugural Investor Day. JAX aims to transform accounting and advisory services for small businesses through conversational interfaces and automation.

As outlined by Chief Product Officer Diya Jolly, Xero is integrating AI across its products to streamline accounting tasks, improve efficiency, and provide data-driven insights. This includes natural language conversational interfaces on apps and platforms like mobile, email, and WhatsApp.

JAX, currently in beta testing, will let users complete accounting jobs through voice commands on these interfaces. According to Xero, JAX can generate an invoice, edit a quote, or pay a bill just by asking it to. It can also anticipate related follow-up tasks, like sending payment reminders, and rapidly provide personalised insights such as cash flow projections to empower data-driven decisions.

Xero has already deployed AI tools to enhance customer onboarding and support. A virtual assistant provides relevant information to help new users, while a separate AI agent has cut average customer search times by 40% and reduced requests for additional support by 20%.

The company recently hired AI experts Eitan Sharon (Senior VP of Data & Science) and Akankshu Dhawan (Senior VP of Product) to further develop its AI products. It also already uses AI for features like bank reconciliation predictions, data capture, and cash flow forecasting.

“AI already powers many of Xero’s everyday features, saving our customers time and delivering them important insights,” said Jolly. “Our AI vision builds on our strong foundation to hold true to the responsible data use commitments that guide our decisions.”

Xero aims to open up JAX to customers later this year. Its conversational interface and automation could revolutionise accounting for the 30+ million subscribers across its global small business platform.

Read next: Navigating AI and Ecosystem Partnerships in South Africa

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HONOR sponsors key ICT summit to boost digital access




HONOR sponsors key ICT summit to boost digital access

HONOR Technologies recently sponsored a major ICT industry event, the ICT Stakeholder Engagement summit, underscoring its commitment to boost digital access and empowerment across South Africa.

Held on February 23rd in KwaZulu-Natal, the summit brought together key players across the ICT sector to showcase innovations, discuss challenges and opportunities, and strengthen collaborative networks aiming to pave the way for an inclusive, digitally-powered future in the country.

In his keynote address, Deputy Minister Philly Mapulane from the Department of Communications and Digital Technologies touched on critical national broadband and digital literacy initiatives, while emphasising the need to amplify homegrown digital innovators.

For HONOR, sponsoring the summit aligns neatly with its broader vision for a new digital age, powered by cutting-edge technology and a spirit of open collaboration.

As Slindokuhle Mbuyisa, HONOR’s Public Affairs and Government Relations Manager noted, “By participating in the ICT Stakeholder Engagement alongside many industry peers, HONOR underscores its commitment to building spaces where stakeholders can exchange insights and assist each other in realising a more digitally empowered future for all South Africans.”

The summit sponsorship represents just one aspect of HONOR’s proactive approach to addressing South Africa’s digital access challenges. Other standout initiatives highlighted by Mbuyisa include:

• Donating R245,000 worth of devices to Siyafunda Technology Centre, improving tech access in education
• Assisting a black-owned business to acquire a building with a R3.8 million donation
• Welcomed 11+ young people for skills development and job readiness through the Youth Employment Service (YES) programme
• Sponsored 1,000 backpacks for learners via the Department of Communications and Digital Technologies Back to School 2024 initiative

As HONOR’s General Manager Zhou Lefeng emphasised, “We listen to our stakeholders and seek to amplify what they are already doing to empower themselves. The ICT Summit gave us more insight into their efforts as we strengthen our collaboration to realise an inclusive digital future for South Africa.”

Read next: ICT sector defies odds, tops VC investments

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