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Ramatlhakwane turnaround strategy bears fruits

Publishing Date : 09 July, 2018

Author : REARABILWE RAMAPHANE

Botswana Post has registered and passed breakeven point for the first time since 2008, declaring profit before tax of over 4 million Pula. For the past 10 consecutive years, Botswana Post has relied on government bailout, but it appears Chief Executive Officer, Cornelius Ramatlhakwane’s 3 year turnaround strategy has all along been the missing link.


Ramatlhakwane joined Botswana Post in 2015 and at the time promised that the entity would be profitable in three years. Recently, he reminisced that he had a solution which entailed optimizing operational efficiency and reducing operational costs, which the Board of Directors approved at the time.


“With the blessings of the Board of Directors, we embarked on an organizational transformation journey and carried out an operational efficiency scan with the aim of identifying solutions to the challenges that we had as a business, which prevented us from being profitable. We needed to resolve these challenges in a short space of time so that we could reposition the business on a profitability path,” he said.


Botswana Post operational scan, which was concluded in 2016, identified 141 opportunities that could be leveraged on to drive the company towards a new path. Ramatlhakwane explained that since taking the driving seat at Poso House, together with his team they took full advantage of the opportunities and by the end of the 2016/2017 financial year the result of their hard work, determination and dedication were already showing as the company recorded significant improvements in the business.


During that year 2016/17 Botswana Post revenue grew by 6.8%, controllable costs reduced by 7.9%, Cost to income ratio reduced by 3.1%, while losses were reduced by 51.9%. “This business performance took our organization to another level. The level wherein came the increase in our reputation and that of our stakeholders’ confidence in us. We also got sharper and even more determined to achieve profitability,” noted Ramatlhakwane.


According to Botswana Post which relieved its board of directors of their duties last week, the strategy achieved even more efficiency, sustainability and profitability. “With this in mind, our focus, priorities shifted, and we embraced the following steps as a means to unleash our profitability,” he said. The company in this past financial year leveraged new technology and partnerships as additional revenue sources as they continuously increased efficiency and decreased controllable costs.“We also aimed to inculcate a culture of high performance among all members of staff through varied performance improvement measures as well as maximize customer impact at ground level and increase service value,” explained the CEO.


During the financial year under review Botswana Post registered year-on-year Revenue Growth of 3.8%, Cost to Income Ratio of 98.7% while controllable Costs reduced by 5.3%. The company‘s Balance Sheet grew by of 2.9%. “This is incredible output and financial performance, because we realized profit before tax of P4.1M, A first for Botswana Post since the inception of the Icon of Excellence Strategy; almost 10 years ago, I am confident to state that Botswana Post has now reached and gone past the Break–even point. I can say with conviction that we have turned a new leaf; the organization has changed direction forever,” he asserted.


Last week Botswana Postal & Savings Group (BPSG) Board of Directors relieved the entire board of Botswana Post off its duties. Botswana Postal & Savings Group is a holding company established by government to incorporate Botswana Savings Bank, Botswana Courier & Logistics and Botswana Post.  The Holding Group was set up following a decision by Government in 2009 to merge the three state owned enterprises .BPSG was commissioned in 2013.


Reports suggest that the decision to constitute a new board at Botswana Post was influenced by the next stage of Botswana Post which is geared to positioning the company as a more profitable state owned Enterprise. It is reported that a whole management overhaul will be instituted in no time as the company is further transformed.

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