JHI: A step above the rest

“We turned around our cash flow position by R40-million through the recession period. To add to this, we are one of the fortunate companies who have a cash deposit available,” says JHI Chief Financial Officer, Dean Subramanian.
 
Subramanian says this excellent result was largely the outcome of a proactive approach. “We initiated a restructuring process at the end of 2008, called Project Triangle, which enabled us to avoid the full brunt of the recession. Due to other cost-cutting measures, we also saved R18-million’s cost in the previous financial year. These cost savings included renegotiation of contracts and cutting costs on several other expenses,” he adds.
 
According to Subramanian another factor that contributes towards JHI’s strength is the fact that the company has the ability to take on portfolios with short turnaround time – translating to a R12-billion portfolio in a roughly two-month timeframe. “To add to this, our expertise and knowledge enable us to achieve this turnaround with minimal operational disruptions.”
 
“Our good track record in this regard has prompted a trend in the industry that landlords, who managed their properties on an in-house basis, are turning to us to outsource this function in order to save costs,” he explains.
 
Subramanian says that JHI currently manages a R40-billion portfolio with 11 000 buildings and 1500 clients. He emphasises the fact that processes need to be meticulous and controls have to be in place in order to maintain their current success rate.
 
“JHI focuses strongly on the three tiers in Project Triangle, which entails people, processes and technology. The Project is heavily output-driven and is aimed at creating value through efficiencies. As an example, we experienced a 40% growth when we took over two big portfolios during the last year. We are committed to creating bottom line value through efficiencies,” he says.
 
Subramanian, who is one of seven chartered accountants at JHI, says the company has consciously employed CAs to head up their portfolios on the finance side – something which significantly differentiates them from their competitors. “CAs bring a different skills set to a company, as they can liaise with high-level clients on higher level and thus provide a better service,” he explains.
 
The fact that JHI is an output-based company enables the company to implement restricted flexi-time. Subramanian explains that this flexi-time is further boosted by the fact that, due to work volumes, 450 staff members received laptops to facilitate a more mobile work environment. 50% of staff has access to 3G and all senior staff have Blackberries, which enables JHI to cater for their clients’ needs 24 hours per day.
 
Another factor which will facilitate JHI’s growth strategy for 2010 – including organic growth in portfolios they manage, as well as growth in the public sector and into Africa – will further be boosted by the fact that JHI has documented all processes in the company and is set to being ISO 9001 compliant, which could differentiate them from competitors in the awarding of tenders.
 
Besides the fact that 80% of JHI’s cost is its staff, the company is known as a company that focuses on its people. “Transparency is at the essence of dealing with staff, especially through difficult periods like restructurings. We do our utmost best to ensure that the staff fully understand what is happening and involve them in any decision that is made. This proves to be paying off, as our middle executives all boasts a service of between eight and 12 years.”
 
JHI’s commitment to their staff is further emphasised by their internship and learnership programmes. According to Subramanian, they have eleven interns for 2010, of which ten are previously disadvantaged candidates, throughout all business units. “We are committed to driving transformation diligently and are currently ranked at level four. Our commitment is strengthened by the fact that JHI does not deal with vendors of a level four and below,” he emphasises. “Above all, transformation is a journey and not a destination.
 
“JHI also boasts a tremendous social responsibility programme, yet it is unique in the sense that a committee, driven by staff, make the decisions, instead of executives. We also use social responsibility as a teambuilding exercise, as each department is allocated a budget to contribute towards a cause of their choice,” he says.
 
Subramanian is in charge of the finance, property, internal audit, risk & compliance and company secretary portfolios, and, is a firm supporter of the 2010 FIFA Soccer World Cup. “To show our support, we will be purchasing a Bafana Bafana supporter’s t-shirt for every staff member to wear on a Friday. But on a more serious note, I am confident that JHI’s business model and service delivery to clients will remain consistent during the period. The World Cup has created a foundation for South Africa to move forward, as several infrastructural projects like the Gautrain and road improvements have been completed as result. I believe the benefits of the event will be enormous,” he says.
 
According to Subramanian JHI being awarded two big contracts during the last year has created a platform and basis, which gears the company for exponential growth. “As a service delivery company, our strategy for the next year includes; maintaining our current client base and focusing on efficiencies and cost-savings. JHI has instilled a performance culture under its staff and clients, which constantly challenges us to take our services to the next level. The core services of JHI are solid. All other services serve as enhancements to these and add value to our core business,” he concludes.