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Over the past four years, Denel has focused on becoming a sustainable, commercially driven national asset that no longer requires state bail-outs. Thanks to a strategic turnaround which involved the integration of a number of divisions under a central group umbrella, the organisation is well on its way to achieving its goal.
“We’re now at the point where we consider ourselves a ‘good’ business which is self-sustaining and profitable,” says Denel’s group executive for communications & public affairs Vuyelwa Qinga. “Our goal is to become a great business, hence our slogan to ‘take Denel from good to great’.”
The integration of various divisions has necessitated change management communication. A number of initiatives have been introduced to communicate the idea of one company with a single vision and set of values. These include a values campaign using platforms such as industrial theatre and other internal communication platforms that reach employees wherever they are at Denel’s various sites. Messaging is communicated via internal plasma screens, internal magazines, art and even poetry.
“Our values are designed to be the single most influential factor in terms of taking us from good to great,” says Qinga.
“We do concede that Denel’s reputation has suffered a knock in recent months, with allegations of state capture, for instance,” says Qinga adding that no-one has provided evidence to support these allegations and that most of the issues that have been reported appear to be beyond Denel’s control. “It has been largely a narrative about us, without us,” she says.
While damage to the brand is obviously of great concern, the company will overcome it, she says, because the real story of Denel is much bigger.
“The bigger story is in the huge contributions the organisation makes to skills development as well as the development, training and attraction of young black talent in areas of scarce and critical skills. The training of artisans and technicians, as well as research and development in highly specialised areas of engineering, technology, science and innovation. This is the real story of Denel, which sadly does not get as much space in our media,” Qinga says.
Denel’s most significant customer is the SA National Defence Force (SANDF). In addition, the company has clients in a number of regions around the world including Africa, North and South America, the United Arab Emirates, Asia and Europe.
“As a provider of innovative defence, security, maritime, aerospace and related technology solutions, the Denel brand is very strong and respected internationally,” she says. The defence industry is highly regulated, which means that the marketing, sales or transfer of products, like all defence items, is authorised by government.
The entire process is carefully monitored and controlled to comply with the National Conventional Arms Control Committee. The countries Denel markets to are, in most instances, also countries SA has bilateral relationships with.
Defence shows are another critical vehicle for Denel to showcase its suite of products and solutions. Significant investment is made into research and development, which ensures that the company is at the forefront of technological innovations in its sector.
“As Denel is a state-owned-entity, every South African should have a vested interest in it,” Qinga says. The company is a hub of technological and innovative excellence, which is something the whole country can be proud of and should be benefiting from.
Most exciting is the fact that many of the company’s young engineers are at the heart of the current developments in innovation. “For example, Preshni Govender (30), Puseletso Matlala (28) and Naadira Hassim (26) are some of our innovators at the forefront of Denel’s latest ground-breaking projects,” she says.
Denel is focusing on developing a number of products that will be game-changers in the market. There is also a big drive to develop cyber security technologies. “In this industry, it’s critical to anticipate future defence needs and to develop products that will meet this need,” says Qinga.
Though Denel is included in the Top 100 defence companies globally, the company is aware that there is room for improvement. As such, it is focusing on being more competitive. Its most iconic product is the Rooivalk (which means “Red Kestrel” in Afrikaans), an attack helicopter which was specifically designed to operate in the African environment for prolonged periods without sophisticated support.
In the defence industry, however, even an iconic product like the Rooivalk requires continual improvement and upgrades to maintain its competitive advantage.
The Rooivalk, however, is far from the only iconic product produced by Denel. The G6, a mobile, fully protected wheeled selfpropelled gun with ultra-quick reaction and a firing range of more than 50 km, has also had significant success. The latest G6-52 model, in fact, has reset the leading edge in artillery development, with advances in all the capabilities critical to effective artillery. This upgraded model boasts increased firing range and outperforms similar equipment. Corporate social investment
Part of Denel’s mandate, says Qinga, is to positively affect SA from a socioeconomic perspective. As such, the company has a robust corporate social investment programme and offers a number of bursaries, internships and graduate programmes.