Moving into the future - PRINT, DIGITAL OR SOMEWHERE INBETWEEN? - Pearson South Africa
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DIGITAL EDUCATION TO SOUTH AFRICA
Moving into the future
PRINT, THE YEAR
DIGITAL OR THAT WAS
SOMEWHERE
INBETWEEN?
TODAY’S
BUSINESS, THE
TOMORROW HUMAN
FACTOR
Q1 | 2016
EDITOR’S NOTE
W
PEARSON
elcome to Pearson,
Executive producer South Africa’s first ever
Zodwa Pakade internal magazine written
Editor especially for you. We
Ursula Ndhlovu
thought we’d end off 2015 with an overview of
This publication was produced on the different developments in each key business
behalf of Pearson by ITWeb.
area as well as a peek into the various business
ITWeb units’ plans to attain their objectives for the
Publisher year to come.
Jovan Regasek Within the pages of this publication, Pearson
Editorial director South Africa CEO Riaan Jonck talks about the
Ranka Jovanovic
group successes of 2015 and the great strides
Project editor
that Pearson South Africa intends to make
Alison Job
in 2016. As the way that people consume
Contributing writers
Alison Job, Chana Boucher, information evolves, Pearson keeps pace by
Joanne Carew, James Francis, constantly updating the way that we deliver
Lesley Stones, Monique Verduyn
knowledge to learners. Our striving to remain
Copy editor
Patricia Czakan at the forefront of trends assures Pearson’s
Design
position as a leading education provider in
Infiltrate Media South Africa, and indeed the world.
Cover design We take a look at the trends and insights
Zack Hoosen that Pearson is seeing on the frontline of
Photography Learning Services, and how these are being
Karolina Komendera, Sean Wilson
implemented in learning materials as well as
Sales director
Robert Mace
within the company itself.
rmace@itweb.co.za The article about Human Resources at
Business development director: Print Pearson South Africa outlines the changes that
Caryn Berman the company has undergone over the past year
caryn@itweb.co.za
and how the restructuring is for the ultimate
Production manager
Sindiso Khupe good of the business.
Digital development There’s also discussion around the
Marko Belic, Ana Golijanin, #feesmustfall campaign and the impact that
Nebosja Knezevic, Stevan Srdic,
Nenad Marjanovic
it had on the MGI and CTI campuses. The
campaign resulted in a rethink about how fees All of the above hinge off Sales, and the past year
Subscription manager
Carrie-Ann Waldeck would be structured for 2016, and this article has seen increasing focus on customer satisfaction,
carrie@itweb.co.za explains the thinking behind this. key to which is ongoing interaction with customers
We move on to take a look at the policy to establish exactly what they want and need. Our
Published by ITWeb limited
www.itweb.co.za space that Pearson South Africa operated success over the past year is testimony to the
326 Rivonia Boulevard, Rivonia, 2128
in during 2015, and the role that Corporate success of this strategy, which is expected to stand
PO Box 2785, Rivonia, 2128 Affairs played in addressing the key issues Sales in good stead into 2016.
Tel: +27 (0) 11 807-3294 that arose. There’s also discussion around the We’ve also dedicated six pages to Seen on the
Fax: +27 (0) 11 807-2020
impact that these had on our customers and scene, a social section. This is largely a visual feature
Printing partners, and how this was managed. with photographic and brief editorial coverage of
Paarl Media Paarl The past year was a difficult one financially key Pearson events, showing our colleagues at their
for Pearson South Africa, but the Finance and best and having fun. Also featuring colleagues is In
Copyright © 2015 by Pearson. All
rights reserved. No part of this
Operations business unit implemented cost the spotlight, which profiles several Pearson South
publication may be reproduced or streamlining measures that bode well for the Africa employees and tells readers a little bit more
distributed in any form or by any company in 2016. about them and their lives.
means, or stored in a database
or retrieval system, without the Technology is core to everything that We hope that you enjoy reading about our
prior written permission of the Pearson does, and the Technology business company.
published. Opinions expressed in
this publication are not necessarily saw 2015 as a watershed year, with great things
those of the editors or publishers. to come in 2016 that will enable even better Ursula Ndhlovu
delivery of content to learners. Editor
Pearson 2016 1
4
THE YEAR THAT WAS
The way that society consumes
information is steadily changing
from printed materials to electronic, and
Pearson is also continually evolving.
By Lesley Stones
6
PRINT, DIGITAL OR
SOMEWHERE INBETWEEN?
The delivery of education materials
is caught in a gap between the physical
and the virtual worlds.
By Lesley Stones
8
THE HUMAN FACTOR
It’s often said that a business is only
as good as its people, so for the
company to move forward this vital asset
needs to be managed properly. Enter
Human Resources.
By Chana Boucher
CONTENTS
10
A YEAR OF LANDMARKS
AND LESSONS
National strikes that recently
disrupted universities across the country
had little impact on the higher education
institutes run by Pearson South Africa.
By Lesley Stones
12 20
TODAY’S BUSINESS, IN THE SPOTLIGHT
TOMORROW Pearson South Africa asks
The only thing that is some of its staffers five
constant, is change. simple questions.
By Alison Job
14 22
HIGHS AND LOWS AND COMPETITION PAGE
2016 Enter our competition
It’s been a difficult year for and win an exciting prize
Pearson, but ongoing cost reduction sponsored by Vodacom.
and operational streamlining bode
well for the future.
By Monique Verduyn
16 23
A TECHNOLOGY SOCIAL SCENE
WATERSHED A visual representation
2015 had its share of victories of some of the events
and challenges, yet the year may also attended by Pearson South Africa
be a watershed in the company’s over the past year.
technology-powered future.
By James Francis
18
CUSTOMER SERVICE
PAYS OFF
Creating customer value,
satisfaction and loyalty is central to a
solid sales strategy.
By Monique Verduyn
GROUP OVERVIEW Photography by Sean Wilson
T
he past year has been a
Riaan Jonck, chief
executive officer, challenging one with a
Pearson South Africa slow-down in K12 orders at
a provincial level, according
to Riaan Jonck, CEO of Pearson South
Africa. “We have, however, made
significant strides in getting closer to the
provinces and understanding the causes
of this slowdown. The mooted one-
textbook policy led to a reluctance in
provinces putting in top-up orders and
instead settling outstanding debt and
moving budgets into teacher salaries.
“Even in this tough market
environment, our market share has
remained constant and we retained our
market leader position.”
A DIGITAL STRATEGY
Pearson South Africa’s digital strategy
was firmly cemented by several projects
in 2015. Every government-approved
textbook that Pearson South Africa
prints is now available digitally. They are
device-agnostic and can be used on any
platform. They also have embedded
features to make the content far richer.
Science books, for example, have videos
embedded to show the results of mixing
chemicals together, or a 3D image of the
heart so students can zoom in and follow
the blood vessels.
Since maths, science and English
literacy are the core subjects that
THE YEAR
prepare students for their entire lives,
Pearson South Africa is focusing on
that content first. Its Learning Services
THAT WAS
Business introduced the Vuma Literacy
Project in 2015, designed to get students
literate in their own language before
they transition to English. The books
are aimed at grades 1-5, to catch young
The way that society consumes information brains early, and are available in print
or in digital format for those schools
is steadily changing from printed materials to equipped to use them.
electronic, and Pearson is also continually evolving. Vuma books come in English, Zulu
and Xhosa, and all 11 official languages
Written by Lesley Stones will be covered, most of them within
three years.
4 Pearson 2015
ASSESSING KNOWLEDGE too late to intervene with extra tuition. in which the organisation could improve
Another development in 2015 was Proof of concept trials for Pulse in some their experience. The list mainly covered
Pearson’s Test and Improve Programme. Gauteng and Kwazulu-Natal schools have softer issues such as requesting sporting
This focuses on maths and uses flash shown encouraging results, and Pearson is fixtures with public universities, so that is
cards to test whether a pupil’s knowledge working with the Department of Education being arranged.
is up to the required standard for their to develop a national strategy to roll it out to
grade. Intervention material to boost any school with the facilities to handle it. LOOKING FORWARD
their skills is available if the tests highlight “We’ll intensify our execution of the B-BBEE
any specific weaknesses. IMPROVED LEARNER OUTCOMES strategy as the Amended Codes of Good
The tests are being introduced for grades To prove that digital learning works, 2015 Practice are introduced,” says Jonck. “This
3-4 first, when most children start learning saw every student who enrolled at a will drive the necessary transformation
maths in English, which probably isn’t their Pearson Higher Education campus receive all across the business. We are further excited
first language. “That’s a hurdle, so this is their books pre-loaded onto a tablet. They about the Brand project that kicks off
a committed effort to make sure literacy, can submit assignments electronically and globally on 4 January 2016.
maths and science are seen as a package of receive feedback online from their lecturers. “As Pearson makes the shift to becoming
problems that we can address.” Test and The method isn’t only boosting student a full service education company, we’ll be
Improve trials have been run in Gauteng, the outcomes, it’s also providing an excellent adjusting our structure and focus locally to
Free State and Kwazulu-Natal, and pupils platform to show what Pearson is
have shown impressive improvements in managing to achieve, in the hope that it will
their understanding of maths. help strengthen government support for
digital schools.
DELIVERING CONTENT “We have taken government officials to “Even in this
Educational material is no longer only about our Midrand campus and shown them how
the actual content, but about how it is it works, saying this is the improvement we tough market
presented to the learner, Jonck says. “We have seen since the print model and this
have started making sure content is piped to is how we can make it work in schools,” environment,
the learner in the most successful manner by Jonck says.
putting it into Pulse, a Learner Management The biggest hurdle is the cost of digital our market share
System that has been developed globally.” devices, and Pearson is engaging with the
Pulse will be launched in early 2016 after Department of Education to find a workable has remained
intensive development work in 2015. solution. “We want to show that the benefit
“It’s a framework that we hang all the of investing in digital far outweighs the costs constant.”
pieces on to complete the picture. The of equipping the schools because of its
content is given in bite-sized chunks that capabilities, and we want the government to Riaan Jonck, Pearson South Africa
the students engage with before they know it’s money well spent,” Jonck says.
move on to the next piece. Then Test
and Improve makes sure they understand ADDRESSING FEES CONCERNS
it, and a teacher training part sits behind In Pearson’s higher education campuses, reflect this. As we build the LMS for the
it to make sure teachers are capable of the #FeesMustFall campaign had no DBE alongside Telkom, this opens up a
delivering in the digital world. It’s not chalk major impact, although two positive strategic channel for Pearson with significant
and talk, it’s a facilitated classroom into a outcomes were achieved. Firstly, Pearson opportunities for our business. In the Direct
digital world,” Jonck says. “Learners sit with introduced a scheme to guarantee Delivery environment, we’ve begun the
a tablet, a laptop or a PC and engage with returning students a place next year at work to optimise our campuses and ensure
much richer content that they can interact the same price as the current year if they that we provide the best learning experience
with and take tests.” pay an R800 deposit. That will allow them for our students and continue to grow.
One of the best features is that the to do a three-year course for the same “I’m really proud of our performance in
interactive material shows how far a student price as their entry year. Meetings with the Growth Awards, and congratulate all
is along the learning journey more effectively student representative councils also saw the people and teams nominated, as well
than traditional end-of-term tests, when it’s Pearson ask the students to suggest ways as our winners.”
Pearson 2015 5
LEARNING SERVICES Photography by Sean Wilson
One exciting development is an
extensive trial conducted in Kwazulu-Natal,
where Pearson South Africa has supplied
tablets pre-loaded with electronic content
to rural and urban schools.
“We divided learners into groups for
e-learning and groups that remained in
PRINT, DIGITAL
the print environment. We tested them
at the beginning, before we launched the
e-learning products and plotted their
OR SOMEWHERE progress. Because we isolated them from
other learners, we can definitely attribute
INBETWEEN?
all the progress to the interventions we are
making,” says Wafawarowa.
Reports analysing the results will help to
guide the shape of Pearson’s future efforts
to drive e-learning.
The delivery of education materials is caught in a DOES E-LEARNING EQUAL SMARTER
LEARNERS?
gap between the physical and the virtual worlds. Wafawarowa is confident the results
will prove a direct correlation between
Written by Lesley Stones
e-learning and better learner outcomes,
especially in the vital subjects of maths,
science and English.
T
Many institutes are asking to see the
he old world of printed environment and see how it responds.” report to assess whether there is evidence
textbooks is full of inherent Wafawarowa says Pearson is ahead of that e-learning produces smarter students.
flaws that digital content can the curve in understanding what e-learning That isn’t always the case, even in more
address, but the shift in mindset should look like, but is held back because advanced countries, because e-learning
and the skills and equipment needed to the market isn’t ready. It has developed a often describes something as simple a book
capitalise on the opportunities are not yet Pearson Basket of Services, and can pick in PDF format that you read on a screen,
widespread enough to drive the change. out components according to the clients’ without the interactive supporting features
Pearson’s Learning Services division is needs, he says. Textbooks converted into Pearson is developing.
working to lead that evolution. But it will electronic format are only a tiny part of the “We came up with assessment solutions,
take time, and meanwhile, the limbo has hit basket, since the true value lies in adding progress management tools and content
the division’s performance and necessitated previously impossible content and services. and administration modules, and we also
some structural changes of its own. They include learner management systems learned that the needs are different for
that allow learners to complete activities different organisations,” Wafawarowa
A DIGITAL JOURNEY and get instant feedback. Teachers can says. “The tests confirm that the type of
The main plan for 2016 is to continue to immediately see how each learner is faring learning we’ve been implementing has
champion the shift from print into digital by their response to different questions. improved learner outcomes.” The trials
content, and to provide the right materials, The system can check individual progress also transformed some previously reluctant
says Brian Wafawarowa, Pearson South against where a learner should be in the teachers into champions of e-learning.
Africa’s executive director of Learning curriculum, and come up with remedial The experiment was equally valuable
Services. “We’re on a digital journey and interventions to move lagging learners back for Learner Solutions, by giving its staff
our definitive products – our interactive on track. practical experience with real kids and real
resources – are ready to go to market. Our For schools with erratic bandwidth and teachers in varied conditions. “We wanted
assessment tools and learner management electricity, content can be preloaded on to find out if what we’re doing and what
systems are ready, and next year we’ll take laptops or other mobile devices so learning we believe in does indeed enhance learner
the full e-learning system into the education can still take place when there is no power. outcomes. We used independent assessors,
6 Pearson 2015
and if the results come out positive, we’ll Brian Wafawarowa,
executive director:
stick to our model of implementation and Learning Services,
Pearson South Africa
advise our clients to take it up. If there
are areas where things didn’t go as well as
we thought, we’ll review those areas to
improve the model.”
In 2016, the content and learner
management systems will be launched
into the market, more learning material
prototypes will be turned into saleable
products and new prototypes will be
developed. That costs a lot of money, and
before the tests, it was largely based on
assuming what people need and investing
heavily to create it.
THE ECONOMY AND EDUCATION
But Pearson’s readiness to tackle a market
that is moving very slowly has taken its toll.
“One challenge we have faced is lower
than expected expenditure in the school
environment, where money allocated for
the acquisition of teaching materials wasn’t
spent in quite a lot of provinces. Our sales
are down substantially,” Wafawarowa
says. “We’re maintaining market share and
even growing it, but doing so in a shrinking
environment”
The key need is to convince the state
that printed materials can no longer solve
our schooling problems, but that investing
in digital content would help to resolve
many of the long-standing issues, instead
of patching the problems with yesterday’s
solutions.
Meanwhile, Learning Services is reviewing
its own infrastructure and operations.
“Once this change takes place, it calls for
a rethink of the way we do business. We
have had an idea for a long time of what “We’re on a digital journey and
that model will look like and we have tried
to reach it without any direct interventions, our definitive products – our
but by evolving towards that.”
He doesn’t expect retrenchments, but interactive resources – are
if people leave jobs that are no longer
relevant in a digital future, they are not ready to go to market.”
replaced. “We’re trying to take advantage
Brian Wafawarowa, Pearson South Africa
of the advent of the digital era to have
another look at how our teams operate.
We hope to slip into it rather than be
trimmed into it,” he says.
Pearson 2015 7
HR Photography by Sean Wilson
C
Alice Bhebhe, hange is never easy for an
executive director:
Human Resources, organisation’s employees, but
Pearson South Africa
change they must at Pearson
as the South African arm
moves to align its systems and processes
with its international counterparts.
Alice Bhebhe, executive director of
Human Resources at Pearson South
Africa, looks to 2016 as the year in which
the company will successfully make the
transition. “Our division achieved its main
goals in 2015, which included supporting
the simplification of the company’s
processes, aligning the value proposition
as an employee and contributing towards
to growth of the company,” she says.
Further, Bhebhe explains that 2015
has seen Pearson South African aligning
itself with global practices to ensure that
all employees get the same experience
across the globe. This has included
cleaning up employee data, revisiting and
refining workflows and aligning the direct-
delivery side of the business to the rest of
the company.
The HR division has been working
furiously to introduce two new systems,
Taleo and Fusion, which will be rolled
out soon and are expected to streamline
most practices. According to Bhebhe,
Taleo is an online global recruitment
system that will not only streamline the
recruitment process, but also help manage
people data better.
THE HUMAN WORK IN PROGRESS
Some of the other highlights Bhebhe
FACTOR
mentions from the past year include
reviewing the culture and values within the
company. She says diversity workshops,
which proved to be a benefit in bringing
together employees across business areas
It’s often said a business is only as good as its and backgrounds, were held to reinforce
people, so for the company to move forward the business’ culture of embracing diversity.
Another important area of development
this vital asset needs to be managed properly. has been organisational restructuring to
Enter Human Resources. allow for transformation and ultimately
company growth. In the process,
Written by Chana Boucher
Bhebhe says new ways of working were
introduced. “Change management was key
as we moved into the matrix structure and
8 Pearson 2015
A WINNING PAIR
Taleo, the global system of choice vacancies throughout Pearson. reports and dashboards from a single
for Pearson, will change the way • It gives the recruiter one source source. It will provide:
recruitment is managed. Not only does of candidate information, process • A self-service, online approach to
it expose South African employees status and approvals, meaning managing personal information.
to the global recruitment procedure, increased efficiency as well as ease • An HR information tool for
but it also drives accountability, a key of reporting and decision-making. employee life-cycle transactions
value at Pearson. Taleo is part of the • Senior leadership benefits from and information reporting,
Oracle suite of products and is used improved data accuracy and including transparent job profiles
by thousands of companies around the enhanced reporting to drive and grades for individuals, a new
world. So, what does it do? informed decision-making. Taleo also induction experience and absence
• The hiring manager will have greater significantly improves the tracking of management.
control of the recruitment process all pre-employment checks. • Leave requests for employees.
and possibly additional support from • A leave reporting system for line
Pearson People Services. Meanwhile, the HR information managers to help with workforce
• Employees will be able to view system, Fusion, will offer HR data, planning.
streamlined processes.”
With people development and “We will continue to enable
learning being a huge focus for Pearson,
it’s no surprise that Human Resources the growth of the company,
devoted significant attention in this area.
According to Bhebhe, broad-based black transforming the ways we
economic empowerment is another of
her division’s priorities and influences work to achieve results.”
the development plans to ensure they
Alice Bhebhe, Pearson South Africa
support what the company needs to
achieve to be sustainable. Furthermore,
HR also encouraged all Pearson employees
to engage in the learning opportunities
afforded to them. “I have been highly transforming the ways we work to is pooled into One Pearson. But she
impressed with the learning culture. achieve results. This is something that admits that it is not always easy to move
The uptake to the learning interventions never comes to an end. We will also from one way of working to another.
offered has been amazing,” says Bhebhe. continue to streamline processes, make “We need to work smarter so we can
This year has largely been about information readily available for decision- lessen the stress. We need to work in
aligning Pearson South Africa’s structures making and build a diverse culture that an efficient way, so we will continue to
to the business strategy for growth, promotes inclusivity,” says Bhebhe. make improvements to enhance our
while 2016 will be about implementation efficiencies,” says Bhebhe.
and the continuation of successful DOING IT RIGHT She urges all staff members to
projects. Aside from the rolling out of For Bhebhe, the role of HR is to enable the understand that the changes are
Taleo and the new HR system, Fusion, right people in the right place and create an happening for the right reason: so that
the division will keep pushing successful environment that is conducive for them to Pearson continues to be number one. “I
initiatives. These include aligning career thrive as human beings, not workers. “It’s believe we’ve got the best people and we
frameworks across the business, driving not just about business, it extends to the appreciate the work that is being done
the online integrated performance and bigger context,” she adds. and the long hours put in to help us get to
reward programme and the delivery of Her hopes for the year ahead are to where we want to be. We need all hands
accredited training. “We will continue start seeing the processes and ways of on deck to transform the organisation,”
to enable the growth of the company, working being embedded as the business concludes Bhebhe.
Pearson 2015 9EDUCATION Photography by Sean Wilson
Mark Cunnington,
executive director:
Direct Delivery (MGI
and CTI), Pearson
South Africa
A YEAR OF
LANDMARKS
AND LESSONS
W
National strikes that hile some students MGI and CTI fees are slightly higher than
expressed regular universities, but with no government
recently disrupted solidarity with grants to support its students or any
universities across the #feesmustfall funding for the centres themselves, Pearson
campaign, no lectures or exams at the must innovate to remain affordable.
the country had little 13 MGI and CTI campuses were derailed
impact on the higher by the national discontent. SUPPORTING STUDENTS
education institutes Pearson South Africa runs its higher Pearson South Africa offers financial
education centres on five principles, of schemes through scholarships based
run by Pearson South which affordability is one, says Direct on academic merit, assistance with loan
Africa. Delivery executive director Mark applications and deferred payment schemes
Cunnington. The heads of campus met the where students who are close to graduating
Written by Lesley Stones
student representative council during the can pay a small monthly fee and pay the
#feesmustfall campaign, and agreed that bulk of their fees once they have a job. In
students can study next year for the same 2015, 600 students took that opportunity.
fee as 2015 if they re-register by the end of Those schemes and scholarships help to
December and pay an R800 deposit. About ensure that more students can afford to
three quarters of its students have already enrol and complete their studies.
taken that option to avoid a fee increase. The students are aware that CTI and
Those who don’t re-register in MGI aren’t publicly funded so they expect
advance will pay a fee that will increase a high level of service delivery and are
slightly, although below the inflation rate, prepared to pay for it. Cunnington says,
while fees for new students will rise in “They’ve made their choice of where to
line with inflation. study and we hope it’s because of the
10 Pearson 2015courses and the environment we provide.” also quite challenging, Cunnington says. country to deliver people who are well
Students at state-run universities may He would recommend that any other qualified and highly employable.
be one of 600 people in a lecture hall, division planning large changes should
but MGI and CTI classes rarely exceed focus on executing a small number CAREER DEVELOPMENT
40 to 50. That has probably helped of critical projects exceptionally well, In the coming year, the core strategy
to protect it against disruptions by rather than over-stressing the staff and will remain focused on the five pillars
dissatisfied students who feel they are the business with too many competing of accessibility, affordability, technology,
paying too much for too little. projects at once. “Trying to do them all employability and academic qualifications.
“You get a very different, more within six months was too much and we One exciting step will be opening
personalised learning environment with made some mistakes along the way, and seven Employability Centres to support
plenty of attention in the classroom and that can impact normal operations. Be the employability goal. These centres
campus, which differentiates us from public- very clear about the impact of some of will be staffed by career advisors and
funded universities,” Cunnington says. those big undertakings and give yourself equipped with physical and virtual
He believes government could potentially time to execute them brilliantly.” resources to help people with their
offer cheaper education because it has the The changes were all necessary career decisions and skills development.
money in its budget, but chooses to spend because research among the students Another project is to roll out a national
it on other things. South Africa invests very raised flags that some of the previous student academic induction programme
little on higher education compared to ways of engaging with them were no across all its campuses. Each campus
other African countries, although it spends longer adequate. “You have to start has previously been left to design its
the most per capita on education as a responding to those things if you want own academic induction programme,
whole. That money is going into schools, to build customer loyalty and retention. but the student support team has now
yet the poor results do not reflect much We had to respond, but in hindsight, devised a uniform two-week induction
return on investment. perhaps we didn’t have to do it as quickly programme. “We’ve structured it to
BUSINESS TRANSFORMATION
During the past year, the MGI and
CTI operations underwent several
transformations that were all necessary
but which, in hindsight, should have been “You get a very different, more
better phased, Cunnington says. The
changes came after research into the personalised learning environment,
student lifecycle to see how processes
could be improved. with high attention in the classroom
Its sales and business development
divisions were transformed and the and campus, which differentiates us
incentive and remuneration structures
changed for 300 people. from publicly funded universities.”
A customer relationship management Mark Cunnington, Pearson South Africa
system was installed, and the call centre
outsourced to a national expert to raise the
quality of engagement with students.
To help attract and retain students,
a series of entertaining events was as we attempted. The critical thing is we give our students the best possible
organised for existing and potential did respond to our student needs and introduction, because entering a higher
students and their sponsors. The are laying foundations for an exceptional education environment can be a very
organisation also stepped up its social student experience.” daunting process,” Cunnington says.
media presence, which has led to a The institutes want to retain In the longer term, the campuses are
significant increase in the number students until they complete their also working towards being rebranded
of potential students requesting qualifications, because that’s good for as the Pearson Institute of Higher
information. revenue and cheaper than attracting Education, due for completion for the
Those projects were all successful but new students. It’s also good for the 2017 academic year.
Pearson 2015 11CORPORATE AFFAIRS Photography by Karolina Komendera
education market, we’ve been able to evolve
our strategy even ahead of government
policy. Our Learning Services teams have
created products and assets that we’re able
to introduce into the education market.
TODAY’S BUSINESS, In addition, we’re relieved that the one-
textbook policy has not come into full swing,
TOMORROW
and, in the meantime, we’re preparing for
such an eventuality.”
The one book per subject, per grade, per
language would have meant that pupils across
South Africa would use the same textbook
The only thing that is its stakeholders, such as government, and study material.
parents, learners, teachers, partners and
constant, is change. the community, on why Pearson has been The key pillars for Pearson South Africa’s
a leading education brand for so many Corporate Affairs team include:
Written by Alison Job
years. This has been achieved in part by • Creating and managing stakeholder value
building solid relationships and by a 200 • Driving sustainable business growth
T
percent increase in quality public relations, • Positioning Pearson as a good corporate
he past year has seen says Pakade. “Teams across Pearson South citizen through its Social Impact
many changes at Pearson Africa have been positioned as subject • Positioning Pearson as a trusted education
South Africa, ranging from matter experts with quality opinion partner
partnerships to policy. Zodwa pieces into the mainstream media and the • Embedding a culture of digital across the
Pakade, executive director of Corporate education sector.” organisation.
Affairs at Pearson South Africa, says one
of the biggest highlights has been setting CHANGING LIVES TALKING ABOUT PEARSON
up and building strategic partnerships with “The focus on broad-based black economic While marketing campaigns and advertising
key partners in government, state-owned empowerment, with clear targets per are often important to raise awareness
enterprises, private sector and institutions element, has resulted in an improvement with customers, in a market where the
of learning. “We’re aware that as we from a B-BBEE Level 8 to an impressive sales environment is business-to-business,
progress our strategy, we won’t be able to Level 5 in 2015 for the Learning Services there’s a need to build strong and strategic
grow on our own, so partnerships are key,” business,” says Pakade. “As we conclude relationships both before and after the
says Pakade. Project Progress for MGI and CTI, customer has signed a deal.
In many cases, Pearson South Africa this programme will accelerate in that “It’s key for us to understand intimately
has made the transition from a supplier of environment and will ensure strategic our customers’ challenges and strategies,
textbooks looking for orders and payments, growth over time.” and build a roadmap with them to deliver on
to a partner in building policy and executing The B-BBEE programme has enabled their vision. This means that our relationship
quality for the education system. Pakade Pearson South Africa to look both internally with the Sales and Learning Services teams
adds, “We set out to position Pearson as a and externally at the business, and put plans cannot be separated. Building these customer
trusted partner in education, and I believe in plans to ensure it transforms the lives of relationships takes time, and we cannot
we’ve done that in a very real sense. all South Africans that are within its ambit. afford to ‘speak at’ them or short-circuit
“From a strategy perspective, we’ve “Government and state-owned enterprises relationship-building because of our own
been able to work out clear business are doing business with companies at a Level sales timeline,” says Pakade. “As a trusted
models for our emerging strategy pillars. 4 and better, and we need to ensure we are partner, we’re creating longer term, stickier
We’ve responded to the slow-down in reaching these levels,” she says. managed services deals, instead of beginning
K12 orders by getting engaged at strategic each year at zero.”
levels in the provinces to understand the SHAPING FORCES
nuances in each environment.” Pakade explains that the aim of Corporate BRAND VALUE
Over the past year, Pearson South Africa Affairs is to shape, support and enable “We’ve spent the past 24-36 months
has managed to solidify its leadership the Pearson strategy in South Africa. She building a One Pearson brand,” says Pakade.
position in education and has educated says, “With Pearson’s experience in the “We’ve revamped Neo and are looking
12 Pearson 2015Zodwa Pakade, "I'm especially excited and
executive director:
Corporate Affairs, thankful that we've signed
Pearson South Africa a contract with Telkom
to deliver the Learner
Management System for the
forward to more employees sharing their Department of Education
experiences through blogs and updates. (DBE)," says Pearson South
We’ve relaunched the Pearson South Africa's Zodwa Pakade.
Africa website. As we participate in key "This is a really significant
industry events, we’re ensuring that our achievement for Corporate
Sales, Learning Services, Innovation and Affairs and Pearson, as it
Technology teams have the ability to gives us first entry into the
articulate the value propositions we’ve main channel for digital
developed together and drive customer- education. It's been a
centric solutions and engagements.” journey that has taught us
Going forward into 2016, priority will be the value of building solid
given to the relaunch of the Pearson brand relationships and shared
in South Africa. Pakade clarifies, “We know value, instead of chasing
that we currently have low brand awareness, quick wins. I'm looking
especially in the sectors where we want forward to engaging further
to grow. We’re still seen as a traditional with the DBE, provinces
publisher and we need to build our brand and other potential partners
as a provider of digital education and other on the up-sell opportunity
services such as testing and teacher training. for content, assessments,
“We’re also excited about rebranding teacher training and change
MGI and CTI under the Pearson banner. management."
To this end, employee engagement is
key, as is the creation of 1 700 Pearson
South Africa ambassadors. We have a
responsibility to remain true to our brand
promise and values.”
“It’s key for us to understand
DRIVING TRANSFORMATION
The Department of Trade and Industry
intimately our customers’
has published the Amended Codes of
Good Practice, and Pearson South Africa
challenges and strategies, and build
is aware that it needs to be fully compliant,
while also driving full transformation for the
a roadmap with them to deliver
business. “We’ve put plans in place to ensure
that this transformation becomes the way
on their vision.” Zodwa Pakade, Pearson South Africa
we do business, not only to get a B-BBEE
certificate with which to trade. Social Impact
is a key focus that is integrated in the B-BBEE
programme and we’re keen to see the
results of the programmes in flight and how
we expand these over time,” says Pakade. Pakade’s division is currently under- Finally, advocacy, public relations and
“All of our employees participate resourced and she says that a key focus external communication will continue to
with enthusiasm in our volunteerism will be to ensure Corporate Affairs has the drive Corporate Affairs’ function, especially
programmes. However, we’ve needed to be right calibre of talent to take its strategy as Pearson South Africa transitions into new
more focused with Social Impact, ensuring forward and take responsibility for market spaces. “We’ve completed a digital
we don’t invest in programmes that will have Pearson’s market performance alongside strategy to support the communication
little relevance for our local communities. its sister-portfolios. She says, “We’ve been and marketing strategies, and I have no
So we’re training districts with PMET, we’re in opening and closing keynote addresses doubt that this will enable improved
training unemployed graduates, we’re of all key industry platforms, talking communication between colleagues, with
developing literacy programmes and many education and e-learning, and we expect more conversational engagement rather
more initiatives.” to build on this.” than broadcast,” concludes Pakade.
Pearson 2015 13FINANCE AND OPERATIONS Photography by Sean Wilson
Mike Ogden,
executive director:
Operations and
Finance, Pearson
South Africa
HIGHS
AND
LOWS
AND 2016
It’s a been a difficult year
for Pearson, but ongoing
cost reduction and
operational streamlining
bode well for the future.
Written by Monique Verduyn
T
he past year has been a tough HIGHLIGHTS AND CHALLENGES On the direct delivery side of the
one to weather, with the The nine provinces, Pearson South Africa’s business, the company has had to deal with
country coming alarmingly major customers, are unpredictable and the a drop in student numbers – from 13 000
close to losing its place as the playing field continues to change from year in 2012 to potentially just more than 10 000
second-biggest economy in Africa behind to year. The proposed single textbook plan in 2016. There are many reasons for the
Nigeria. It’s predicted that South Africa’s for all schools nationally is just one example. reduced numbers, the greatest being the
GDP output for 2015 could slip to $317 “Looking ahead, it’s likely that many lack of funding available to potential students
billion, with GDP growth expected to be provinces will not be spending anything close in order for them to enter the higher
around 1.5 percent. At the same time, to what they have in the previous financial education space.
the economy has been battered by major year, even if the company receives late In addition, the rollout of a new business
fluctuations in the exchange rate, with the orders before the year comes to an end,” development model, the late introduction of
rand hitting all-time lows against the US says Ogden. “Likewise, our results from a sales commission scheme, and the launch
dollar and Sterling in recent months. digital learning services will be significantly of a new outsourced call centre that was not
It’s against this backdrop that Pearson lower than predicted in our original plan. We aligned with the closure of the in-house call
South Africa’s sales have weakened, both can expect that austerity measures such as centre, all conspired to challenge the business
in the learning services and traditional travel and other spending cuts will become in every possible way. On their own, each of
publishing divisions of the business. the regular order of business.” these would have been taxing, Ogden notes.
“Our strategy has been set back by On a more positive note, Pearson South In combination, the impact was harsh.
slowing economic growth in South Africa, Africa has controlled operational expenses “On the upside, we have restructured
and by unexpected cutbacks on textbook and implemented successful cost-saving the way we view our sales pipeline through
spending in the country,” says Mike Ogden, measures. Gross profit percentages a more focused approach to schools that
executive director for Operations and remained high on the back of last year’s have high levels of enrolment (Project
Finance, Pearson South Africa. “At the same buffer stocking policy, which enabled the Focus),” he says. “This should enable us to
time, we’re reshaping our business model in company to benefit from the sales of books move closer to our planned targets for
line with the shift from print to digital.” at 2014 prices. 2016 and thereafter.”
14 Pearson 2015OPERATIONAL HIGHLIGHTS
“In addition, the direct delivery “Our Operations team is 4. The transfer of the Johannesburg
management team is looking at rationalising committed to creating the insourced call centre to an out-
the business’ operating expenses and highest level of efficiency possible sourced call centre with 80 agents
various cost structures. We’re planning to within the organisation and to at WNS in Bellville, Cape Town.
implement sustainable savings for 2016 and maximise profit. Together, the 5. The relocation of the Cape
into 2017. Our main goal, over the next team faced many challenges Town head office, including 310
financial year, is to boost direct delivery during the year,” says Pearson employees, from Pinelands to the
so that we can return to acceptable South Africa’s Mike Ogden. refurbished AAA grade Media
profitability levels by 2018.” City building in the Foreshore
Here are the highlights: precinct. In addition to a more
THE IMPACT OF THE RAND 1. The opening of the Midrand competitive monthly rental, staff
Both Learning Services and Publishing Graduate Institute (MGI) can now work from an open plan,
rely on a certain amount of imported main campus in Bedfordview, modern, attractive building that is
publications. Higher education textbooks, Johannesburg. also central.
in particular, have increased significantly in 2. The opening of a residence at the 6. Pearson has made significant
price and are testing the market. This will MGI campus, which can house progress in improving its
require an investigation into pricing policies. 420 students. broad-based black economic
“We did, however, negotiate a strong 3. The exit from two Johannesburg empowerment (B-BBEE) score
supply deal with the company’s main printer head offices and the move of under the new codes of practice
at the beginning of 2015, resulting in a sub- both to the Midrand MGI campus, when it comes to ownership and
inflation percentage increase. This means resulting in reduced rental costs. preferential procurement.
we’ve not yet been affected by the increase
in the costs of paper,” says Ogden. “In the
Direct Delivery business, certain overseas
royalty payments have been adversely
affected, but this is not a major contributor
to decreasing profits.”
“Our main goals over the next
WHAT LIES AHEAD IN 2016?
In the Publishing business, Pearson South
financial year are to focus on the sales
Africa expects further advances into
digital as the move away from textbooks
pipeline and cost structure in direct
continues. Proofs of concepts (POCs) are
being conducted in Kwazulu-Natal, the Free
delivery so that we can return to
State and Gauteng. These are functional
systems for teachers and learners and it’s
acceptable profitability levels by 2018,
expected that they’ll be fully implemented
over the next three years – in a joint
and to continue to retain market
venture with Telkom and the Department
of Basic Education – at 1 670 schools across
share in the print market and grow the
these provinces.
In the Direct Delivery business, Pearson
digital offering.” Mike Ogden, Pearson South Africa
South Africa will continue to optimise
campus size, class size, and the overall
student experience. It will also align its cost
structure with the current level of students. The fact that 2016 is a provincial election education and skills,” says Ogden. “By
Ongoing focus on the sales pipeline and year bodes well for the company as this continuing to meet some of South Africa’s
cost structure will ensure that Pearson could lead to increased textbook buying. biggest education challenges we can build
South Africa returns to the levels of “Despite the difficulties we confronted a stronger, agile, more profitable and faster
profitability it’s accustomed to in this in 2015, Pearson is uniquely positioned to growing company with increased focus on
marketplace within the next two years. help meet the national demand for better the student experience.”
Pearson 2015 15TECHNOLOGY Photography by Karolina Komendera
A TECHNOLOGY
creation of new business processes and
target models. It also helped lay the
groundwork for more technological
WATERSHED revolution. This is paralleled by the
new campuses, which set innovations,
such as softphones and video
conferencing facilities, into place.
This improvement was evident when
Pearson South Africa opened its new
headquarters in Cape Town.
2015 had its share of victories and challenges, yet Most of Pearson South Africa’s
the year may also be a watershed in the company’s telephone communications, including its
call centre, now use softphones. These
technology-powered future. applications enable calls to be made over
Pearson’s computer networks and blend
Written by James Francis
with other collaboration technologies. The
South African head office is already home
to a state-of-the-art video conferencing
room, one of only two currently across
E
Pearson’s global presence.
arlier in 2015, Pearson cut the conscious of engaging Pearson’s users, “Softphones and technologies, such as
ribbon on its new Bedfordview customers and suppliers.” Google Hangouts, have completely changed
campus. It was a significant how meetings at Pearson are handled.
moment, but not because this PLAN FOR CHANGE There is much more integration, which is
state-of-the-art facility adds to Pearson’s Modern technology can bring incredible allowing the company to expand its services
cachet as a leader of the educational changes to the table, some that need to in ways we couldn’t offer before.”
industry. The campus is a marker in a be eased into. A case in point is when
journey that began back in 2012, when Pearson South Africa replaced its ageing RESTRUCTURING LEARNING
Pearson South Africa started investing in CRM system with Salesforce.com, a This will pick up even more pace in 2016.
a future molded by technology. The new market-leading application that Pearson One example is the disparate timetables
campus is a blueprint of what’s to come, South Africa can expand and thrive on. It in Pearson South Africa. Next year, these
including the launches of similar sites in was a necessary and positive upgrade, yet will be unified under a single system,
Pretoria, Potchefstroom and Durban the IT teams did not really allow users to which opens new possibilities –not
during 2016. keep pace. the least being able to deliver remote
But even if that future is being “A lesson we definitely learned in 2015 learning facilities.
technology-shaped, it’s not technology- is not to do too much too quickly. The “On some of our campuses, there
driven. Quite the opposite, says Nirvani Salesforce.com system was brought in aren’t enough students per subject to
Dhevcharran, executive director of quite seamlessly, but we underestimated justify having a permanent lecturer. In
Technology at Pearson South Africa: “We how much that change would impact the past, this would have meant shelving
technologists are used to operating in everyone in the company. So we had that course until more interest is shown.
the back office, putting down the digital a longer stabilisation period, but today But if we use a universal timetable that
building blocks for business to use. But the transition has been a success,” says our video meeting systems can integrate
success doesn’t happen in a vacuum, Dhevcharran. into, one lecturer can engage with many
and during 2015 we became increasingly The shift was significant, initiating the classrooms at the same time.”
16 Pearson 2015Nirvani Dhevcharran,
executive director
of Technology at
Pearson South Africa PEARSON TECHNOLOGY
IN 2015
• Introduced a new Salesforce.
com CRM system to replace
the outdated CRM systems in
Pearson South Africa
• Opened the landmark
Bedfordview campus, laying
the blueprint for more
technologically advanced
campuses across South Africa
• Distributed over 5 000 tablets
to learners, including 12 public
schools in Kwazulu-Natal
• Converted telephony systems,
including the Pearson South
Africa contact centre, to
softphone technology for
better and more cost-effective
communication
• Heavy investment in and
deployment of video
conferencing facilities, including
one of two telepresence suites
in Pearson Global.
“We technologists are used communication with the rest of Pearson’s
user base. Projects such as the Salesforce.
to operating in the back com implementation help us strengthen
those relationships.”
office, putting down the digital The excitement among Pearson South
Africa’s technology staff is palpable:
building blocks for business much of the past few years has been
spent creating the foundation for this
to use.” Nirvani Dhevcharran, Pearson South Africa big technology push. Some are already
showing results that are changing how
Pearson operates. Much of what the local
team has accomplished is being absorbed
into Pearson’s global IT strategy.
Digital learning is a large part of library – improving access to these digital Yet, this is only the beginning, says
Pearson’s education strategy. In 2015, materials is another area of focus in 2016 Dhevcharran: “In 2016, we will be
the local chapter distributed over 5 000 for Dhevcharran and her team. introducing some game-changing
tablet computers to learners – including technologies that not only help point to
several public schools in Kwazulu-Natal. BETTER COMMUNICATION the future of Pearson, but the educational
This momentum will continue in 2016 Pearson South Africa’s technologists market as a whole. But we couldn’t
with at least 5 000 more tablets, as well have been growing more user-centric have done it without the support and
as the introduction of Pearson’s own for a while, but 2015 demonstrated that collaboration of Pearson’s staff and partners.
e-reader application. That in turn ties it’s an ongoing process: “The important It’s those relationships that make this journey
into Pearson’s growing online resource thing is that we keep improving our meaningful and very exciting!”
Pearson 2015 17SALES Photography by Karolina Komendera
P
earson is facing stiffer market
CUSTOMER conditions today than ever
before. The cornerstone of a
SERVICE FOCUS
successful sales strategy in such
a demanding environment is customer
service. Companies can win customer
PAYS OFF loyalty and improve profits only by meeting
or exceeding customer expectations.
“One of the most constructive experiences
of 2015 for Pearson South Africa was the
improvement of our relationship with Van
Creating customer value, satisfaction and loyalty Schaik, the largest specialist academic book
is central to a solid sales strategy. chain in the country, and one of our biggest
higher education customers,” says Alan Tait,
Written by Monique Verduyn executive director: Sales, Pearson South Africa.
“Through personal care, regular face-to-face
meetings, and a commitment to increasing the
company’s confidence in Pearson South Africa,
we gained deep insight into Van Schaik’s wants
and needs, and what was working in its favour,
or not. The process was initiated towards the
end of 2014, and we succeeded in raising Van
Schaik’s customer satisfaction score from four
to eight out of ten.”
LEARNING WHAT CUSTOMERS WANT
Over the course of 2015, Pearson conducted
customer satisfaction surveys with 15 top
customers throughout the year. To ensure
objectivity and fairness, the surveys were done
by employees who have no involvement with
these customers.
“Stock availability and pricing remain key
issues,” says Tait. “Typical problems that all
publishers face include late delivery of books to
stores and other customers, and we’ve made a
concerted effort to improve turnaround times.
One of the challenges in our business is to pre-
empt the top-selling publications and ensure
that we have enough stock on hand to meet
customer demands timeously. It’s a constant
battle to try to determine which titles will sell
and which will gather dust in the warehouse.”
When it comes to digital solutions users and
customers, says Tait, they want to be assured that
any problems they experience will be fixed as
quickly as possible. In the classroom environment,
when an e-book does not work, learning comes
to a stop. Service level agreements (SLAs) are in
Alan Tait, executive place to ensure speedy resolution of problems.
director: Sales,
Pearson South Africa “Our customer call centre has performed
18 Pearson 2015You can also read
