In our latest newsletter, we unpack the Management & Control element of the B-BBEE scorecard. 

The B-BBEE scorecard assesses the structure of your business in line with the five elements of B-BBEE and the points your business earns determine its B-BBEE Level. To achieve the best possible results for your business, it’s important to fully understand all the elements that make up the B-BBEE scorecard and how the scoring works.

The 5 elements of the generic B-BBEE scorecard

Element	Indicator	Available Points (Total of 118)
Ownership (Priority Element)	Measures the equity held by Black people in the entity in terms of voting rights, economic interest and realisation points	25
Management Control	Measures Black participation at board, executive level and senior, middle and junior management levels, and employment of Black people with disabilities	19
Skills Development (Priority Element)	Designed to improve skillsets and measure skills development expenditure on Black people – including participation in learnerships, internships and apprenticeship programme	20 (+ 5 Bonus Points)
Enterprise and Supplier Development (Priority Element)	This is the highest contributor of all the elements and measures the entity’s contributions in relation to the following sub-elements: Preferential Procurement measures the empowerment levels of the entity’s suppliers in terms of the procurement of goods and services. (25 points) Enterprise Development and Supplier Development measures the entity’s contribution towards the upliftment, development, sustainability, financial and operational independence of Enterprise and Supplier Development Beneficiaries.(15 points)	40 (+ 4 Bonus Points)
Socio-Economic Development	Measures the entity’s contribution towards initiatives or organisations that enhance the ability of Black people who remain non-participants in the economic mainstream to be included in the economy in a sustainable manner	5

What is Management & Control?

Management and Control is an element of the B-BBEE Scorecard as set out in the Amended Code and has a scorecard weighting of 15 points plus 4 bonus points – a total of 19 possible points.  The empowerment factors measured under Management & Control in the Generic Management Control Scorecard are:

• Board participation (6 points)
• Other executive management participation (3 points)
• Senior management participation (3 points)
• Middle management participation (3 points)
• Junior management participation (2 points)
• Employees with disabilities (2 points)

Management refers to the people in the business who run the day-to-day operations and direct the business. Management differs from ownership in that you can be a shareholder, while not necessarily being a director or even on the payroll. There is also a distinction between participation on the board of an entity by black executive directors, as well as the management and employees with disabilities. Other executive management employees are not necessarily executive members of the board but play a meaningful role in the management control functions of the entity. 

The table below sets out the details of the management control criteria:

Indicator	Weighting Points	Compliance Targets
Exercisable voting rights of black board members as a percentage of all board members	2	50.00%
Exercisable voting rights of black female board members as a percentage of all board members	1	25.00%
Black persons who are executive directors as a percentage of all executive directors	2	50.00%
Black female executive directors as a percentage of all executive directors	1	25.00%
Black Other Executive Management as a percentage of all Other Executive Management	4	60.00%
Black female Other Executive Management as a percentage of all Other Executive Management	2	30.00%
Black Employees in Middle Management as a percentage of all Middle Management	2	75.00%
Black female Employees in Middle Management as a percentage of all Middle Management	1	38.00%
Black Employees in Junior Management as a percentage of all Junior Management	1	88.00%
Black female Employees in Junior Management as a percentage of all Junior Management	1	44.00%
Black Employees with disabilities as a percentage of all employees	2	2.00%

Key Measurement Principles

• A measured entity is awarded points for meeting the targets set for the participation of Black people and Black women at board, executive management, senior management, middle management, junior management and black employees with disabilities.
• When calculating its score under the Management Control scorecard, a measured entity must use their current payroll data.
• If a measured entity does not distinguish between other executive management and senior management, then executive management is measurable as a single indicator with 6 points weighting under black executive management (4 points) and Black female executive management (2 points).

General Principles

• Executive management positions include roles such as Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Financial Officer (CFO) and other executive managers that serve on the Board of Directors.
• Other executive management positions include all executive management that do not serve on the board of directors such human resources executives, transformation executives and others who hold similar positions.

Aligning skills development and management and control

The alignment between B-BBEE, employment equity and skills development is crucial for achieving inclusive economic growth, addressing inequality and promoting equal opportunities and career progression in the workplace.

Employees should not simply be trained for the BBBEE points. They should receive training and development that gets them to promotion, as this works hand-in-hand with the Management Control element of the scorecard – and you get to allocate some of your B-BBEE Skills spend to developing your own employees into management roles. By investing in focused learnership and skills programmes for your own employees, you eliminate the skills barriers that hold back promising employees from progressing in their careers, and in your business.

Fundamentally, it is about providing the growth and mobility in the management levels in your business to create a pool of black senior management to drive the business, with meaningful active participation in the strategic and operational decision making of the business – while building your talent and succession pipeline from within.

Talk to SA Business School about a learning and development solution that encompasses learnerships, skills programmes and executive training that has maximum impact on all the elements of your B-BBEE scorecard, and that’s the right fit for your business, your people and our economy.