Category: Study

The study by Dr Sifiso Falala investigated the competence of CEOs in South Africa’s State-Owned Enterprises (SOEs). Against a backdrop of leadership instability, financial losses, and political interference, the research challenges assumptions of incompetence and explores what constitutes a competent SOE CEO. A mixed-methods approach was used, combining qualitative interviews and quantitative surveys, to assess a provisional competency framework.

Problem Statement and Objectives

State-Owned Enterprises underperformance has been linked to:

• Inherent incompetence of CEOs,
• Political interference, and
• Misalignment between Key Performance Indicators (KPIs) and organisational expectations.

The study aimed to:

1. Identify reasons for poor SOE performance.
2. Assess a competency framework as a measure of CEO competence.
3. Examine if the framework can reliably predict CEO effectiveness.

Conceptual Framework and Hypotheses

Six hypotheses were developed, proposing that CEO competence is positively influenced by:

1. Developing business success,
2. Qualifications and experience,
3. Interpersonal skills,
4. Natural flair,
5. Problem-solving skills, and
6. Building for the future.

Research Design and Methodology

A mixed-methods design was adopted:

• Qualitative stage: In-depth interviews explored perceptions of CEO competence.
• Quantitative stage: Surveys and regression analysis assessed the framework statistically.
  This dual approach ensured a nuanced understanding of both perception and measurable performance.

Findings and Analysis

Competency Dimensions

Regression analysis confirmed all six dimensions as strong predictors of CEO competence. The most critical were:

• Developing business success,
• Building for the future, and
• Problem-solving skills.

Key Performance Indicators (KPIs)

The study found a direct link between the use of KPIs and CEO competence. SOEs that valued KPIs more highly, like Transnet, scored better overall. However, gaps existed between the perceived importance of KPIs and their actual use, with state interference often undermining objective performance measures.

Political and Structural Constraints

Although many CEOs possessed technical skills, they were often unable to apply them due to political mandates and hierarchical constraints. SOEs were found to act more as instruments of government policy than as competitive businesses.

Contributions and Way Forward

• Policy and Governance: A standardised competency framework across SOEs would enhance recruitment, appraisal, and monitoring of CEOs.
• Practical Leadership: Emphasis should be placed on measurable KPIs, reduced state interference, and improved CEO autonomy.
• Theoretical Contribution: The study validates the competency framework as a dependable tool for assessing CEO performance in complex environments.

Conclusion: State-Owned Enterprises

The research concludes that the problem lies less in the inherent incompetence of SOE CEOs and more in the political and structural constraints that limit their effectiveness. Competence is present but underutilised, with improved frameworks and governance reforms necessary for SOEs to thrive.

Leadership in the Science, Technology, Engineering, and Mathematics (STEM) fields remains a critical yet underdeveloped area, particularly in South Africa. Dr Justin Grant Martens’ doctoral thesis (2019) at The DaVinci Institute explored why leadership and followership are often overlooked in STEM training and careers. It developed a framework to address this gap. The study positioned leadership not just as a technical requirement, but as a human-centred capability essential for innovation, sustainability, and organisational success.

Research Problem and Context

STEM professionals are trained to solve technical problems but often lack preparation for people-oriented leadership. At Van Reenen Steel (VRS), where the study was based, weak leadership led to staff turnover, loss of corporate memory, and risks to long-term business sustainability. This highlighted the urgency of creating a leadership framework that addresses both technical and interpersonal dimensions.

Methodological Approach

The study adopted a constructivist grounded theory methodology, specifically following Charmaz’s (2006) approach. Data was gathered through:

• Thirteen in-depth interviews with STEM professionals
• A case study at VRS
• Observations and surveys
• A “listening post” with an external group of STEMs for comparison
• This multi-method design allowed for triangulation of perspectives and deeper insights into leadership challenges.

Key Findings

The research identified several barriers and insights:

• Leadership resistance: STEM professionals often resist leadership roles due to cultural, organisational, and personal biases.
• Paradoxical followership: Many STEMs show dedication to tasks but struggle with relational aspects of followership, sometimes becoming resistant team members.
• Cognitive biases: The Dunning-Kruger effect and “engineering ego” often distorted perceptions between STEMs and non-STEM colleagues.
• Multiple intelligences: Technical leadership is not only about IQ but also requires emotional intelligence (EQ) and cultural intelligence (CQ).

The STerractEM Framework

The central contribution of the study is the creation of the STerractEM framework – a multidimensional model designed to develop leadership among STEM professionals. It incorporates three core categories:

• STEMs vs. Others – bridging communication and perception gaps.
• Leader vs. Follower – recognising the interplay between both roles.
• Trust vs. Distrust (RSA) – addressing South Africa’s cultural and historical trust challenges.

The framework emphasises balance between IQ, EQ, and CQ, and serves as a practical reminder tool, adaptable to workplaces such as offices, boardrooms, and digital platforms.

Contributions of the Study

• Exposed the unique leadership challenges within South African STEM environments.
• Developed a practical, visual framework (STerractEM) for leadership development.
• Highlighted the role of soft skills in enabling innovation and teamwork.
• Provided cultural insights specific to South Africa, including the impact of distrust and diverse worldviews on leadership effectiveness.

Limitations

The study was limited by its context-specific focus on VRS and a small sample size. While the framework offers valuable insights, its transferability to other industries or countries requires further validation.

Conclusion

Dr Martens’ work underscores that effective STEM leadership requires more than technical mastery; it demands emotional awareness, cultural sensitivity, and the ability to navigate complex leader-follower dynamics. By framing these insights in the STerractEM model, the thesis provides a practical and contextually relevant tool to strengthen leadership in South Africa’s STEM fields, ultimately supporting innovation and sustainable growth.