The Future Of Innovation In Transforming Communities

Mr Dennis Farrell

The transformational reform in the South African and other developing nations is an important business and social imperative to ensure those communities and ultimately the country is stable and sustainable.

Rapid changes in world economies have created new challenges for organisations. Privatization processes are an attempt by governments to open markets to competition, create globally competitive industries and in this process hopefully attract foreign direct investment and a transfer of skills and knowledge from developed countries. However, these processes are not without consequences – both good and bad. The business enterprise if well managed can become more efficient and competitive. For the individual – this could mean retrenchment, a period of uncertainty and possibly job loss. These change processes are often very sensitive and outcomes are highly dependent on the management of the process, particularly human resources. Part of this process will mean that organizations will also have to communicate and manage a paradigm shift in the way people perform their work and their expectations in terms of alternative career paths. This implies a formal, structured, integrated 'post employment' process of building support and consensus through effective communications, training, management of stakeholders and motivation.

Such a 'post employment process' or Human Resource Exit Strategy, is not a 'financial handout' but rather an investment in the promotion of an entrepreneurial economy founded in economically sustainable small and medium size enterprises (SMEs). Due to the high unemployment rate in the South African scenario, SMEs are of critical importance in the alleviation of poverty, socio-economic 'upliftment', job creation and the promotion of political stability. In order to narrow the gap between expectations (often emotionally and ideologically orientated) and socio economic realities, little doubt remain that SME development founded in sustainable entrepreneurship ventures (business, environmental and social entrepreneurship), is of critical importance in the prevention of a 'revolution within a revolution' in South Africa.

The Work Life Renewal Model is proposed as one of the solutions for creating sustainable SME's through the integration of skilled and qualified people who either through retrenchments, transformational reforms, political flight and other factors become economically sidelined and retreat into their own worlds to become partners with developing societies and/or individuals by utilising their skills and knowledge in the establishment of sustainable SME's.

The Work Life Renewal model therefore suggests that organisations should consider supporting the development of SMEs through utilising "redundant staff" with their skills base to become entrepreneurial Ad-mentors for SME's. This would support and lead to:

Higher levels of efficiency in organisations and SME development.

A better integrated use of resources and capital, including human capital, must be sought.

A core strategic focus emphasis that is the top level 'drive' with the organization for areas such as HR.

True business partnering models, which will address operational excellence.

Leverage outsourcing excellence to minimize operational cost growth for the organization.

The creation of affordable funding opportunities for the creation of SMEs.

article1 The foreseen deliverables or outputs of the work life renewal model are illustrated in the figure to the right.