OUR BUSINESS
CAPITAL TRADE-OFFS
In the conduct of our activities, SAICA’s management and the Board must weigh up and accept the inevitable trade-offs between the six capitals, ensuring that over the long term these decisions contribute to value creation and preservation, thus ensuring the continued relevance and sustainability of the Institute.
Apart from creating and preserving value, there are instances where value is diminished through our activities. When making decisions on how to manage our business, we consider the trade-offs between capitals: we aim to maximise positive outputs and outcomes and limit negative impacts. Utilising our capital inputs in the most efficient manner informs our business model to optimise our capital outputs and outcomes for our stakeholders. At times tough decisions need to be made which are in conflict with some of the stakeholder needs in the short run. Making strategic trade-offs is necessary to ensure sustainability for the future.
Significant capital trade-offs during 2023 are illustrated below:
Financial Capital, Human Capital
KEY CONSIDERATIONS AND FOCUS IN 2023
Our people are our greatest asset and there has been an increase in spend as people are encouraged to develop themselves and our effort to improve our transformation scorecard.
See skills development spend and study assistance in the business model under human capital
TRADE-OFFS
Increasing investment in human capital can divert resources away from other investments that could have a more immediate and tangible impact on the Institute’s bottom line
POSITIVE IMPACT
Increase SAICA’S ability to innovate, attract and retain top talent
Build a resilient and agile organisational culture
Better capacitated people and improved B-BBEE scorecard from Level 4 to Level 2 in 2023
NEGATIVE IMPACT
The increased spend was not financed by a reprioritisation of spending but by improved revenue collections and interest income
EFFECT ON BUSINESS MODEL /STRATEGY
IMPACT ON STAKEHOLDERS
RISKS
Financial , Manufactured and Human Capital
KEY CONSIDERATIONS AND FOCUS IN 2023
Revision of the Statement of Work (SOW) for Ushintsho digitisation Stage 3
TRADE-OFFS
The decision to revise the SOW for Stage 3 by delivering the rest of the functionality initially planned for Stages 4 and 5 of the Ushintsho programme may lead to additional delivery time.
POSITIVE IMPACT
Enhance efficiency, alleviate pressure on human resources, and yield substantial long-term positive impacts, ultimately justifying the initial resource reallocation
Improved capabilities to execute the IT strategy
Increased efficiency for SAICA members
NEGATIVE IMPACT
This adjustment incurs opportunity costs in the short term, as human capital resources were redirected to the SOW revision