The beginning of August this year saw the merging of two significant firms in the South African accounting industry, RSM South Africa and Ngubane Johannesburg. The combined business, trading as RSM South Africa, will now have annual billings in excess of R300 million and over 370 staff. The merger will accelerate both businesses’ ambitions to drive growth through technology and deep sector specialisms.
We chatted to the leadership team responsible for bringing these two firms together: Noma Ashom, the newly appointed CEO of RSM South Africa, and Dieter Schulze, the now Regional CEO of the firm.
What was RSM’s strategy around the merger?
Dieter Schulze: RSM South Africa have been looking to expand for some time but, until now, had not found a firm that was the right fit. RSM and Ngubane Johannesburg are strongly aligned in terms of our values, methodologies, quality standards and our vision for the future of the profession. These were all vital considerations for us to ensure not only consistent client delivery, but also a shared goal for the future of the combined business.
In addition, RSM South Africa, as a proudly level 1 B-BBEE contributor, and Ngubane Johannesburg, as a proudly black-owned firm, both have strong roots in South Africa and a commitment to transformation in the profession.
On a global level, RSM’s 2030 Global Strategy outlines a major multi-year growth and transformation programme. This is another step to demonstrate our commitment to achieving the RSM global growth goals.
Noma, why did Ngubane Johannesburg decide now was the right time to merge with another firm and what attracted you to the RSM Network?
Noma Ashom: The overarching vision for Ngubane Johannesburg’s strategy was centred around becoming a local business with a global mindset. This meant taking the Ngubane Johannesburg business beyond the South African market. The focus was on sustainability of the firm and enhancing the value and experience that clients and our people received from engaging with the Firm. Our profession is about people, this includes our internal and external stakeholders. In everything we do, we must always ensure that we add value to people, and the merger creates this opportunity for Ngubane Johannesburg. I believe that the merger will provide our people with new opportunities for growth, learning and global mobility.
Dieter, you decided to step down from the role of CEO of RSM South Africa and hand the reigns to Noma. Tell us about this decision.
Dieter: Noma Ashom has been chosen to lead RSM due to her extensive experience and robust business acumen. She is a dynamic individual with a strong vision for the future and a dedication to the highest levels of quality. She is driven to restore the public trust in the chartered accounting profession in South Africa and we cannot think of a better person to lead RSM to the next stage of our firm’s development.
Whilst this merger does bring about changes in leadership, these have been carefully managed and proactively determined as we grow and refresh our operations. We have operated in South Africa successfully for over 80 years and have never been afraid to embrace change during that time. Noma shares RSM’s commitment to excellence and we are looking forward to thriving under her leadership.
Noma, tell us about your career that has prepared you to lead the new RSM South Africa.
Noma: I have had a beautiful and colourful career around the world that has brought me to where I am today. My career experience is in audit, risk management, corporate governance, integrated reporting, business analysis, International Financial Reporting Standards (IFRS) requirements and technical experience, and project management. I also gained experience in strategic planning, supply chain, risk management, business development, project management, financial information systems, statutory and regulatory compliance, and taxation. My core industry experience is in the mining, financial services, pension funds administration, construction, oil and gas and manufacturing sectors.
I have had amazing opportunities of working and traveling the world which is what motivated me to step out and provide similar opportunities to those who are not able. My passion is and will always be Africa, the development of Africa and its people.
How has this merger strengthened your position in the marketplace?
Dieter: Each firm brings strengths and expertise in different areas, which allows us to further close gaps in our capabilities. Our combined expertise in terms of service lines and sector expertise will allow us to provide an even more comprehensive service offering to our clients. This merger sees our two successful businesses combine, offering scale, innovation and best-in-class talent development.
Noma: The market landscape in South Africa has changed: clients have become digitally sophisticated. The merger with RSM provided us with an opportunity to respond to the market changes at the required pace and scale. It also allows us to access new markets, increase our service offering and centre our delivery around innovation and technology. The merger also provides the opportunity to tap into new and diverse ways of thinking that will assist to produce better outcomes for our clients.
Mergers are tricky. How do you plan to ensure a successful integration of the firms?
Noma: Bringing strategy into action is an iterative process. It takes commitment, collaboration, and a willingness to adjust and learn as you go. The firm’s combined leadership have and will continue to actively engage with staff through every step of the process, emphasising its significance, and ensuring that the required resources and support are in place. Embracing innovation and using technology to improve productivity and achieve a competitive advantage, while aligning the strategy with the requirements and expectations of our clients, is critical for success and ensuring that we service the needs of our customers in an impactful way.
Dieter: Continuous monitoring and adaptation will be essential to assess the integration process on a regular basis and make improvements as appropriate. Market conditions and corporate landscapes often change, so adaptability is essential. The RSM brand promise is ‘The Power of Being Understood’. To evoke this, we must enhance the emotional experience our clients and employees have when they interact with our business. This is critical in setting the stage for us to deliver our brand promise.
Our strong cultural fit is centred on our people. In the merged entity we will continue putting people first and harnessing the power of diverse thinking to produce better outcomes for clients.
What do you see for the future of RSM South Africa?
Noma: This merger gives the South African market a real point of differentiation. Since RSM and Ngubane Johannesburg have both served various industries separately, our combined efforts enable us to better understand the South African market. We are well positioned to tap into the medium to large market of growth-oriented clients and global minded companies. As is the case with all mergers, transition and synergy realisation are critical areas of focus, and I am confident that through teamwork, communication, collaboration and courage we will achieve success.
Dieter: This merger is highly complementary for both businesses – we have a shared cultural outlook that aims to put our people first at all times. We are not afraid of different perspectives and always encourage people to challenge convention. Separately, we were two very successful businesses; together, we will be able to achieve our ambitions, and those of our people and clients, with even greater purpose and pace.
For more information on RSM South Africa and the merger with Ngubane Johannesburg, visit www.rsmza.co.za
