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The Consumer Protection Act - Part 1

Fred had been stuck on a desert island for many years, and was becoming quite desperate to get back home. One day, as he was walking along the beach, looking for anything useful that may have washed up, he saw a bottle. Now, this was a red-letter event in more ways than one. Practically, a bottle meant that he could store and carry water more easily. However, what really made his heart race were the questions, the possibilities that sprang to mind. This was the very first manufactured article that had washed up on the beach in all his years on the island. Was he closer to human settlement than he'd thought? Was there a ship close by?

Forcing himself to move, he bent and carefully picked up the bottle. His heart sank. This bottle had obviously been lost at sea for even longer than he had. It would still be useful, but it was no herald of imminent rescue. Beating back an onslaught of depression following in the wake of this momentary elation and crashing disappointment, he carefully stored the bottle and continued his unending, daily quest for survival.

Later, back at his meagre shelter, he took out the bottle and examined it more closely. It was old, very old. Back in civilisation it may have fetched a decent price from an antique dealer, but here, it was just an old bottle. It was encrusted with barnacles, and the glass that remained clear was so dirty that it was almost impossible to discern its deep emerald-green colouring. The bottle was stoppered with some unidentifiable material that was, in places, seemingly welded to the glass by means of dirt and marine organisms, and resisted any casual attempt at removal.

“This will need quite a bit of cleaning if its to be useful.”, Fred muttered to himself, giving a patch of relatively unencrusted, grime-hazed glass a rub with his thumb.

The effect of this passing nod in the general direction of attempted bottle renovation surpassed any and all possible expectation. Barnacles, salt rime, and accumulated dirt explosively vacated the surface of the bottle, stinging his exposed skin, and initiating the bottle's precipitate descent to the fortunately soft sand at his feet. From his prone, foetal position on the sand, ears filled with a cacophony fit to drown out a hurricane, Fred peered fearfully through his fingers. The now-pristine bottle stood upright on the sand emitting a bright emerald glow, and seemingly unaffected by the mystical vortex of sound, light and wind, of which it was the centre.

Suddenly, silence ... all the more intense in the shadow of the maelstrom of noise that it replaced. The bottle stood cleanly, greenly, innocently on the sand, and then … pop; the smallest, gentlest pop.

“Yes, Master. How may I serve you?” …  “Master … Master …?” … The usual response is that you ask for three wishes and I grant them. You get three wishes … only three, so choose wisely; and I'd appreciate it if you could be quick, I've got a cake in the oven.”

During this unusual discourse, Fred slowly, regained awareness, until finally, with a snap like an elastic band, he was stung back into awareness. “Three wishes. Any three wishes? Anything at all?”, he asked desperately.

“Yes, any three wishes. But only three!”, boomed the genie.
“I don't need to think too hard about the first wish,” he said, “I've been dreaming of it for years. My first wish is that I want to go home.”

POOF!! He was home.

After allowing himself a short celebration and a moment's thought, he said, “For my second wish, I want to always be able to put my hand in my pocket and have exactly the right amount of money for any item that I am buying, no matter how big or small.”

“A wise choice.”, said the genie, and POOF!!, it was so.

Fred thought hard for a few more minutes, and finally said, “OK, I've decided on my last wish. I wish to be irresistible to women.”
POOF!! He turned into a bar of chocolate.

While I certainly hope this little story has amused you, I also hope that it has reminded you of the double-edged quality of wishes. Almost every mythology in the world tells stories that warn of the dangers involved in wish-fulfilment. One of the more creative visions of Hell speaks of all the wondrous foods one could wish for, but accessible only with forks that are too long to convey food to one's mouth – torture indeed.
At one time or another, every one of us has, as a consumer, wished for a better deal; some kind of recourse or protection. However, what we may have over-looked when making that wish, is that many of us are not only consumers, but also suppliers. Has our wish as consumers cut us, as suppliers, with an unexpected sharp edge?

All of us that are suppliers of goods and/or services in any way, are simultaneously consumers. In other words, in this context, we have dual-personae; we are simultaneously supplier and consumer. For the most part these personae support each other symbiotically. After all, consumption requires a supplier, and suppliers cannot exist without consumers.

The wishes of suppliers are relatively few and simple. As suppliers, we wish for better cost to earning ratios. As suppliers, we firstly wish for more consumers. Secondly, we wish for consumers who will be faithful to their source of supply, and therefore increase their consumption, and provide word-of-mouth advertising. I know that this is simplifying things quite a lot, but if we boil down all that we want as suppliers, then these two wishes would pretty much suffice.

As consumers, our list of wishes, while slightly longer, is also fairly straight-forward. As consumers, we wish for suppliers that don't misrepresent their products or services, but rather supply us with what we actually want. As consumers, we wish for high quality, value-for-money goods and services. As consumers, we wish that after-sales service was as enthusiastic as the sales pitch. As consumers, we want advertising to more accurately portray goods and services. To put it in a nutshell, as consumers, we are looking for a fair deal.

If I compare these two wish-lists in this manner, it seems to me that there shouldn't be any problems. On the surface, these wish-lists look highly complimentary. Supply me, the consumer, with good products (goods or services), that you haven't “lied” about, along with proper after-sales service, and I'll continue to buy your product. In fact, I'll also be inclined to buy any other of your products that fulfil a need. Additionally, I'll probably provide free, positive advertising when my friends need what you're selling. As a supplier, this immediately fulfils one of your two primary wishes – a solid, committed, growing consumer-base. It also begins to fulfil your wish of better cost to earning ratios. If your consumer-base is growing and providing you with free, word-of-mouth advertising, then your costs drop, and your earnings increase. If you have fewer consumer complaints, product replacements, and even law suits, then your costs drop, and your consumer-image becomes more positive, thus potentially increasing earnings. So, if the supplier fulfils the consumer's wish-list, theirs is also largely fulfilled.

If its all so simple, why are there so many problems between suppliers and consumers? As a small business owner, and someone who mixes with other business owners, I seldom hear anyone speaking positively about their clients. As a consumer, it is just as rare to hear my fellow-consumers speaking positively of their suppliers.

In general, I find that most suppliers seem to perceive their clients in much the same way as an old, rich man might see his beautiful, much younger, trophy wife; as potentially unfaithful, always wanting more (not in a good way), with an eye for the next, best thing, and only yours until something better comes along. In many cases, for old men and suppliers alike, there may well be a large helping of truth in this scenario. However, while I have no personal experience of trophy wives, I do think there's more to this story as it relates to consumers. Why is it that consumers have become so unfaithful, jaded, and disenchanted?

I would like to put it to you that suppliers have created the consumers of today in much the same way as Dr. Frankenstein's blind ambition created the monster that ultimately destroyed him. Just as unmet needs, and bad experiences may help to create a money-grubbing trophy wife, today's consumers have, to a large extent, been created by the actions of their suppliers. Consumers have, in effect, been trained to distrust suppliers. Consumers have learned that the burger you get is not even second-cousin by marriage to the burger in the picture above the till. Consumers have learned that suppliers are only interested in them until the sale is made,  the contract signed, and your money becomes theirs. Consumers have learned that physical products are not designed to last, but to be replaced, or possibly repaired at great cost. Consumers have learned that no matter how well one reads the small print, there is always something that will come back to bite them in the butt. Consumers have learned that nine times out of ten, the great service or product that is promised, only exists in the imaginary world of advertising.

So here, in brief, is the situation. Consumers are unhappy because they feel they are being cheated, or at least taken advantage of, by suppliers, and are effectively wasting their hard-earned money. Even when they try a new supplier who promises more, they often find that its just more of the same. Suppliers are unhappy because their production, marketing, transport, and customer-support costs are constantly rising. Market pressure is constantly increasing, and the concept of brand-loyalty no longer seems to exist.

Oh, what a vicious circle trapped in a catch-22 situation. Consumers won't increase their loyalty while they feel that suppliers of undeserving of it. Suppliers are so caught up in the pressures of the market place that they battle to see a solution beyond advertising and charging more for less. Is there a way out of this tangled web? Will this double-edged problem be solved by the new Consumer Protection Act (CPA)? What does the CPA mean to suppliers? Is the CPA detrimental to suppliers, and biased toward consumers? (remember I am both a supplier and a consumer)

In my next couple of articles in this series, I will look at some specific areas of interest that are impacted by the CPA, such as property rental, legal agreements, Consumer Affairs Tribunals, and so on. However we, as suppliers, may feel about the Consumer Protection Act, it is now something with which we have to live, and that we need to learn how to use to our benefit. I will attempt to answer some of these questions (above) in light of the inescapably symbiotic relationship between supplier and consumer.

Author: Robin Bownes.

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The Consumer Protection Act - Part 2

As well as being a writer, I am also a photographer, one of those individuals who stands back, separated from the action by my lens, observer rather than participant; neither hero nor villain, but rather he who observes and records both heroism and villainy alike. The following joke, that comes complete with the warning that some have found it offensive, illustrates this aspect of the photographic profession perfectly. (even if it does refer to old technology)
“If you saw a man drowning and you could either save him or photograph the event … what kind of film would you use?”.

Most serious photographers, on hearing this joke, will either burst out laughing, or actually start discussing the merits of different photographic equipment for this situation. In other words, we photographers are so “callously” focused (pun intended) on capturing the image that it becomes more important to us than life itself. Is this true? Occasionally, yes, as can be seen in many a photographer's endangerment of his/her own life and limb in order to “get the shot” in war zones and other dangerous situations. Photographers often are “callous” observers. Am I proud of this image? In a strange way, yes.

Firemen are heroes, doctors overcharge, lawyers are dishonest, and artists are dreamers. The only people more boring than accountants are actuaries, sales-people will do anything for money, and policemen are intellectually slow. Over the years, just about every profession, or line of work, has acquired its own “joke persona”, or image in the minds of both the public and its own practitioners. In most cases, the people within a particular industry proudly repeat the jokes that make fun of them and their profession, proudly owning their “negative” stereotype. On some level, there is a sense of pride in having such a clear and recognisable identity in the mind of the public, even if there are apparently negative undertones. It is better to be recognised negatively, than to not be recognised at all. Of course these images, and the jokes that they inspire are blatant stereotypes. Obviously, many, if not most of the people in each of these professions do not match their industry's particular stereotype. I know many wonderfully ethical lawyers, accountants that are into extreme sports, doctors that work for next to nothing, and photographers that have sacrificed the shot of a lifetime to save a life. But, somehow, no matter how many honest lawyers, interesting accountants, sane postmen, or intelligent policemen we meet, the stereotypes remain. What's more, it seems that we only have to meet, or hear of even one person that matches their professional stereotype in any way for that image to be confirmed and even more deeply ingrained in our consciousness. Of course the person that told us the lawyer/accountant/doctor joke, was probably our lawyer/accountant/doctor, and in telling the joke, they once again strengthened their personal and public professional identity.

Strangely, that brings me round to property managers. Now, I'm only too aware that many of you reading this article, are in fact property managers. I did a Google search for property manager jokes and I must admit that I found more than I expected to … five. However, two of those were originally jokes about other professions that someone had just clumsily modified. The third was actually an estate agent joke, while the fourth was merely a list of amusing tenant complaints. So, in fact, I only found one genuine property manager joke. Now, I'm sure you'll agree that its a pretty good joke, but one joke does not a professional identity make.
When a doctor, lawyer, postman or computer programmer tells me the latest joke that makes fun of their profession, it is inevitably accompanied by a certain glint in the eye, a subtle improvement in posture, and a distinct aura of pride. Once more the world has proven that they stand out from the crowd, that they are worthy of recognition, and has seen fit to immortalise them in humour. Where then does this leave the poor property manager? If even the apparently grey and featureless accountants and actuaries can achieve jocular fame, how uninspiring and bland must be the property manager? For how long, and with what deep longing have property managers everywhere been wishing for recognition – a way to stand out from the crowd?

Well believe it or not property managers, your hour of recognition is upon you, and not just in the form of a puny (or punny) joke or two either. No, you and your profession have been recognised by none other than the government of South Africa. In fact, you have received more than one special mention in the new Consumer Protection Act (CPA); pages and pages of special mention and recognition. Of course, if you think back to my first article on the CPA (Be Careful What You Wish For), you'll remember that wish-fulfilment can be a very risky business. You've received the  recognition that you wished for, but at what price?
Jeremy Wagner, rentals manager at Lew Geffen Sotheby’s International Realty, has been quoted as saying, "It [CPA] protects tenants to unjustifiable and unheard of lengths," and, "... the CPA ... could prove disastrous for the rentals market ...”. (Consumer Protection Act deal (sic) landlords a poor hand. Article in the George Herald, 23 December 2010)

So, what price have property managers and landlords paid for their recognition, for their moment in the sun? What terrible legislation could have prompted the dire pronouncements that I've quoted above?

Well first of all, the CPA provides ultimate protection for the consumer by over-riding any other law that offers the consumer less protection than that provided by the CPA. Furthermore, the CPA states that where there are conflicting laws or rules regarding supplier and consumer, it is the law that provides the most protection to the consumer that must always prevail. Of course, while your consumer persona is embracing this whole-heartedly and jumping for joy, your supplier persona, your property manager or landlord persona, is whimpering quietly in a dark corner in the foetal position.

As if that is not bad enough, according to the CPA, a lessee is permitted to withdraw from a lease on only twenty business days notice. Of course, the landlord or property manager is permitted to levy a “reasonable cancellation penalty”, but the CPA does not specify, or provide guidelines that define a “reasonable cancellation penalty”. This leaves such penalties open to legal challenge by ex-tenants, along with all the accompanying legal costs and problems involved in collecting money from absent ex-tenants. In other words, property rental no longer gets any special treatment in terms of contractual law. While this may well make life easier for tenants, it removes much of the security that was previously afforded landlords and property managers. Additionally, to rub salt into this already painful wound, landlords and property managers may not terminate a lease unless there has been a "material breach". Even then, the tenant must be afforded a twenty working day  opportunity to remedy the breach before the rental agreement can be terminated.

Even if a lease agreement contains an “option to renew”, the landlord must still ascertain, four months prior to the termination date of the initial fixed period, whether the tenant wishes to renew the lease or not. In such a case, the choice remains entirely with the tenant. Furthermore, lease agreements are now limited to a maximum timespan of twenty-four months. If neither the lessor nor lessee cancel the lease in writing at the end of the initial fixed period, the current lease agreement is automatically extended on a month-to-month basis. In such a situation, the tenant may still leave on twenty days notice, while the landlord must give a minimum of forty days notice. Many property management experts are understandably nervous regarding the repercussions of these new laws relating to the removal of “undesirable tenants”.

As for lease agreements themselves, they must now, by law, be written in plain language so that any ordinary class of consumer is able to understand them. This means that all lease agreements must be easily understood without undue effort,  in terms of the document context, the organisation involved, the vocabulary used, and even the use of  headings and illustrations.

This might very well mean that personalised lease agreements, rather than standardised ones will become more commonplace in future. In a country such as South Africa, where there are nine official languages, and numerous other “first languages”,  this also introduces further challenges regarding document translation. Can a potential tenant easily understand the content of a legal agreement that is not in written plainly in their first-use language? Is this a possible legal loophole that needs to plugged before it can become a problem? The massive differences in educational levels among the South African population also present considerable challenges in drafting lease agreements that will stand legal scrutiny in light of the CPA.

Voetstoots, the concept of accepting goods or services on an as-is basis, generally applies to sale rather than rental agreements. However, pseudo-voetstoots clauses are sometimes included in rental agreements in an effort to escape maintenance or repair costs on a rental property, or otherwise in an attempt to limit the legal rights of the tenant. While tenants have always had recourse to the  Rental Housing Tribunal in such matters, not many tenants have previously been aware of their rights in such cases. Now, the CPA places considerably more legal weight behind a tenant's recourse for remedy in such matters. The CPA states that consumers have a right to receive goods and/or services that  “... are reasonably suitable for the purposes for  which they are generally intended; are of good quality, in good working order and  free of any defects; will be useable [sic] and durable for a reasonable period of time,  having regard to the use to which they would normally be put and to all the  surrounding circumstances of their supply...”.

Rental properties are not excluded from this definition of goods & services, and must therefore meet these criteria. Furthermore, the CPA states that a landlord may not “... make any false, misleading or deceptive representations (by words or conduct) thereby inducing a consumer to enter into an agreement with him/her. ” If it is found that a landlord has included pseudo-voetstoots clauses in a lease agreement, or not fully disclosed the true state of repair, ownership, or in any way attempted to limit the rights of the tenant, parts or even the whole lease agreement could be void.

Now, before you start thinking about a career change, let me assure you that not all the news is necessarily bad.
Firstly, CPA legislation only applies to “natural persons” as opposed to “juristic persons”, which include any type of registered business, company, trust or association. These legal entities fall outside of the scope of consumer protection provided by the CPA, and so, I suppose can still be considered fair game. The CPA exists only to provide protection to the ordinary “man-in-the-street” consumer, like yourself.

Secondly, it is very likely that professional organisations such as the Rental Housing Tribunal will apply for industry-wide exemption due to the fact that they already administer a scheme, similar in scope to the CPA, within the residential property rental industry. While this may not result in complete exemption, it does raise the possibility that aspects of the CPA will, in the future, be modified to better suit the property rental industry.

Finally, if you think back to my first article in this series on the CPA, you may remember that although we are suppliers of goods and services, we are also simultaneously consumers of various goods and services. While it may be only natural to think of one's own industry as exceptional and thus deserving of exception when acts such as the CPA are promulgated, it is not a logical expectation. It is good to remember that as much as your inner landlord may fear and hate the CPA, your inner consumer is simultaneously rejoicing.

Is the CPA going to necessitate change within the property rental and management industry? Most certainly so. Are some of these changes going to incur added cost? Almost definitely. However, the questions that you should be asking yourself are ones such as these: Will simpler, easy to understand lease agreements benefit honest landlords and tenants alike? Of course they will. Will increased honesty and transparency be beneficial to the property rental and management industry, especially in the long-term? Honesty is always beneficial, within any industry. Is it probable that the CPA could produce better landlord-tenant relationships in the future? I'd be surprised if it didn't. If the tables were turned and you were tenant rather than landlord, would you feel more positive about the CPA? I'm sure you would.

Property rental and management has long managed to exist and function largely underneath the radar. For many years, landlords have enjoyed legal advantages, and a relative lack of scrutiny not afforded suppliers in other markets. Now change is in progress, and change is always unsettling to one degree or another. As someone who, in regard to property rental, is a consumer rather than a supplier, I believe that honest landlords and property managers will not be affected negatively by the CPA, especially in the longer term. Yes, it will be costly and inconvenient to have your lease agreements rewritten in simple language, but the overall effect will be greater levels of honesty, transparency and trust within the property management industry.

(The third, and final article on the CPA to follow in the next article will deal more generally with what is needed for suppliers to be compliant with the CPA)

Author: Robin Bownes.

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The Consumer Protection Act - Part 3

Last month, I spent four days canoeing down the Orange River through the Richtersveld Desert, camping some nights in South Africa, and some in Namibia. However, before you get the wrong, if flattering idea that I was on some lone wolf, wilderness survival mission, a la Bear Grylls, let me assure you that it was nothing like that. Firstly, there were about fifteen of us in the group, and secondly, the trip was run by a specialist company, who provided all the food and boats, along with very good river guides, who were also excellent camp-fire cooks. Just to give you some idea, on the last evening, we had wonderfully moist, light chocolate cake for dessert – baked on the fire – and the rest of the food during the trip was just as impressive. So, while the nights got really cold, and we did sleep on the ground, I must admit that we were roughing it in relative comfort. However, this is not about food, proving my manliness, or even the trip itself.

I'm sure most of you have heard about, read about, and even seen quicksand in adventure movies. You've possibly heard, or even told jokes about it. You've most certainly heard rumours. Quicksand has been so romanticised in adventure folk-lore, jokes, and cartoons, that many people, especially we urban dwellers, have come to think of it as somewhat legendary, or even mythical – a rural myth if you please. Well, I'm here to tell you that quicksand is neither funny, mythical, nor legendary. I can also assure you that its embrace can in no possible way be considered pleasant or romantic – unless your idea of romance involves infinite amounts of insecurity and clingyness. Think anaconda with severe separation issues. Quicksand exists, and its scary.

The mid-morning sun was shining, and I was standing on the hard-packed mud on the bank of the Orange River, about to climb into my canoe to get our adventure under-way. My paddling partner was already seated in the front of the canoe. The bank was slippery, but firm under the soles of my rugged Rocky sandals. I took one short step forward, pushing the canoe further into the river as I went, and my foot, along with much of my leg, disappeared into the earth. In an attempt to regain my balance, I stepped forward with my other foot, which was of course, also instantly swallowed. In literally less time than it took my mind to formulate an appropriate expletive, I had already sunk to above my knees. Now, when I say “sunk”, you should not imagine a graceful, or in any way gradual descent. Think rather of the snap of a trap, a predatory ambush, or that immeasurably brief moment when, as a husband you go from, “I think I did good ...”, to, “What the hell just happened?”. In the space of less than a second, I went from standing on the earth to being almost completely, and immovably trapped by it. Let me assure you, until you've experienced this personally, it is almost impossible to imagine quite what it is like.

Quicksand occurs when an area of sand also contains so much trapped water, that the sand grains are actually held suspended in the water. This semi-solid substance is usually topped by a relatively thin layer that looks just like the ordinary sand or mud surrounding it. However, as soon as you break through this relatively thin surface, there is little, or nothing to support the weight of your body, causing you to sink. Now, that may sound bad enough, but what happens next really puts the bow on the show. The action of your body sinking into this semi-solid mixture, displaces most of the water between the sand particles immediately surrounding your body, causing them to pack tightly around you. If, as in my case, the “sand” particles are actually incredibly fine river clay particles, you feel like you've been trapped in instant-set cement.

Fortunately, I was still holding onto the canoe, and so could use it to stop my descent into the bowels of the earth, and to help free myself from this quagmire. Even so, the quicksand had flowed into the gap between my feet and the relatively large, flat surface of the inner-soles of my sandals, making movement and escape even more difficult. My sandals, were of course quite firmly strapped to my feet, and thus very effectively locked them into a horizontal position in which the mud could most effectively resist my escape attempts.

Of course, your first response is to get out as quickly as possible, but its only when you remember to move achingly slowly, that you will be able to move at all. Fast movements further compact the particles, creating more of a solid, whereas very slow movements allow some water to move back between the particles, recreating some fluidity. Panic and fear are the enemy. Only calm, reasoned action can save you. Of course, while you're remembering this from from your boyhood adventure reading, or from watching Ultimate Survival more recently, you are still sinking. Please believe me when I say that this does not help to foster a calm and reasoned approach, in either thought or action.

Of course the fact that I'm now sitting at home, with my feet up, writing this article, means that I did successfully escape the clutches of quicksand. I was fortunate in a number of ways. Firstly, I was not alone. Secondly, I had the canoe to hold on to, and thirdly, I knew what to do (all those years of adventure stories weren't wasted after all). Finally, and possibly most importantly, I did not panic. Even so, my escape resulted in some wrenched joints, sore muscles, and lost skin (from sandal straps),  all of which provided, for the remainder of the trip and beyond, minor, unpleasantly nagging reminders of my introduction to quicksand.

Well, officially, the CPA (Customer Protection Act) has been with us for about five months already. In reality, how many of us have actually noticed any real changes that have occurred because of it? I think I'm right to say not many, and not much. Well, maybe there have been some; a few customers that are a little more aware of their rights and will no longer take a store credit for something they don't really want. Maybe there has been a very slight decrease in the number of junk advertising emails and texts for items that you didn't request. And yes, particularly in the property industry, there has been rather a lot of complaining, and even some predictions of doom and destruction because of the new legislation.

That said, there is one fairly substantial change that I've noticed, and that is the sudden appearance of numerous businesses offering to CPA-proof your business. Basically what they offer is to go through all your business' documentation, contracts, and forms, and ensure that there are no loopholes under the new legislation that would allow people to sue your business unduly. Sounds like a great offer and a valuable service, and in some instances, it may well be. However, many of these businesses are taking full advantage of the atmosphere of uncertainty and even fear resulting from this fairly major legislative change in order to charge rather exorbitant amounts of money (in my opinion) to perform this service. For example, when I'm not wearing my writer, photographer or consultant hats, I help my wife with running her nursery school. Now, I can assure you, in terms of documentation, a nursery school is not very complex. We have a basic registration form, a basic indemnity form, and a basic staff employment contract. The main purpose of the registration form is to provide sufficient information about the child & parents concerned to enable proper care of the child, and to facilitate parental contact in case of sickness or other necessity. Oh yes, we also want to be able to follow up on parents that don't pay their fees. What I'm getting at, is that this is a very simple document. Our indemnity document, while crossing and dotting all the appropriate bits of the alphabet, is about as effective as any other, which is as effective as it can be. By this I mean, that if it is challenged in court, it will be the party with the best lawyers and the deepest pockets that will win. Well, this particular company, which is actually quite reasonably prices for this market, wanted to charge us about three thousand Rand to look at about seven pages (well spaced) of text. The cost of these services to larger businesses, with larger incomes can apparently be truly staggering. By bringing them on-board to CPA-proof our business, we also co-incidentally, sign up for a four month contract, which I'm sure they are hoping will be extended indefinitely. The idea of the contract is that they will apparently continue to check that our documents remain CPA-proofed during that time. They will apparently advise us in the event of someone suing us on a CPA-related matter. Now, to be fair, I can see that there are businesses for which this would certainly be a valuable and even necessary service. However, for us, it really did not seem to make sense.

So here is your business, walking along the bank of the river (metaphorically speaking, of course), doing what it has always done – what it does best – suspecting nothing, perhaps not realising the implications of the changed environment in which it now finds itself. Is there quicksand in its path? Is the ground going to suddenly give way beneath your feet, trapping you in a tight spot? What form will this new danger to your business take?

Well, I've already mentioned one of the new “quicksand pits” that are to be found in this relatively new CPA-related business environment. That is of course, the companies that offer to CPA-proof your business. Please don't get me wrong, I'm not saying that these companies are necessarily a waste of time and money, or that they are bad. I'm not saying that you should not seriously look into making use of their services. What I am saying is be aware – be careful, don't be led, or rather misled by a changed legislative landscape and the fears or uncertainty that are to be found in it. Choose carefully and make sure that you are getting value-for-money service.

In the normal run of things, we all tend to get lulled into a sense of security; we've “been here” so often and for so long that we consider our business to be in safe territory. What we all have to be aware of at the moment is that the environment has changed. It may look the same from our viewpoint within our businesses, but it has changed. The ground may look just as firm as usual, but that does not mean that we aren't about to step into quicksand. The economic landscape may look the same as ever, but its not. We might be distracted by other, more easily visible dangers, such as collapsing markets, and falling currencies, but the less obvious quicksand of new, strictly monitored legislation, looking to set precedents, can damage or sink your business even more quickly than the fall of the Dollar.

So, what are some of the things that businesses should be looking out for in this changed legislative landscape? Here are a few pointers.

1.    The purpose of the CPA is not to punish or place adverse restrictions on honest businesses that are treating their clients fairly.

2.    With this in mind, review your business' client-service policies and ensure that you are being completely fair to your clients – from their perspective, not yours. I find it always helps to place myself in the position of my clients and ask what I'd like, or expect if I was them.

3.    Ensure that your contracts, agreements and client-service meet the standards set by the CPA for your particular industry. Carefully consider various options for this process. There are not only new businesses that specialise in this process, but also lawyers and accounting firms that have taken a special interest in this legislation. Where pertinent, consult your industry's governing body, as they have a vested interest in your success, and should be up to speed on industry-specific areas of the CPA.

4.    As I said in Part One of this series on the CPA, businesses that are truly providing their clients with great service, have very little, if anything to worry about in terms of the CPA, since its stated purpose is to improve client-service.

Remember, offering great service to your clients may seem expensive in the short term, but in the longer term, it almost always pays off. So, embrace the the CPA legislation, get your business up to code, and watch it pay off in customer loyalty, word-of-mouth advertising, and lots of new clients.

If I may sum up in three pithy comments:

As with quicksand, panic and fear are the enemy. Only calm, reasoned action can save you.

Paying fresh attention to where you're going and how you're getting there will not only keep you out of the “quicksand”, but will also provide new vistas of opportunity and riches along the way.

On any journey into new or changing territory, it always pays to make friends with the locals. (i.e. your clients)

Author: Robin Bownes.

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High Resolution

Once again, its the beginning of a new year. At least half of you reading this article will have begun the year, as you've done so often before, by setting at least one New Year's resolution, probably even more than one. Since we're approximately a month into the year, it is also safe to assume that many of those resolutions have already been broken, or have at least sustained significant damage. In fact, statistics show that 25% of all resolutions don't make it past the first week, while after a month, nearly 40% of resolutions have failed completely. Even that smug group standing off to the side there – you know who you are – the ones that claim not to make New Year's resolutions at all. Well, your resolution failure is possibly the most spectacular of all, since what you've actually done is to make the shortest-lived resolution of all. You have, in fact,  merely made a resolution not to make a resolution, which of course immediately breaks your resolution not to make a resolution. (hope you can resolve that). Seriously, though, given this almost universal, annual pattern of resolution and failure, why do we still do it  Well, before I answer that question, I'd like to share with you, some of my New Year's resolution experience over the past few years. While I'm sure you will agree that I cannot attempt to claim perfection,  there really cannot be any doubt about my consistency. It is my hope that you'll find this encouraging, or at least amusing.

RESOLUTION #1:
2006: I will get my weight down below 80kg.
2007: I will watch my calorie intake until I get below 90kg.
2008: I will follow my new diet religiously until I get below 110kg.
2009: I will try to develop a realistic & positive attitude about my weight.
2010: I will work out 5 days a week.
2011: I will work out 3 days a week.
2012: I will try to drive past a gym at least once a week.

RESOLUTION #2:
2006: I will not spend my money frivolously.
2007: I will pay off my bank loan promptly.
2008: I will pay off all my bank loans and credit cards promptly.
2009: I will begin making a concerted effort to be out of debt by the end of this year.
2010: I will not incur any new debt and reduce my current debts by 50% by 2011.
2011: I will try to pay off the interest on my debts by 2012.
2012: I will try to be out of the country by February.

RESOLUTION #3:
2009: I will try to be a better husband to Marge.
2010: I will not leave Marge.
2011: I will try for a reconciliation with Marge.
2012: I will try to be a better husband to Wanda.

It is my sincere hope that these resolutions, which are either very funny or very sad, depending on your viewpoint, don't hit too close to the mark for any of you.
So, why do we do it? Why do we so consistently make New Year's resolutions in the face of our equally consistent, life-long, experiential knowledge of resolution failure? Some might say that its blind optimism, some might vote for base stupidity, but I think I'd have to side with those that put in a good word for that most wonderful of human traits, “hope”.

All this having been said, is there a way to constructively use our existing predisposition for setting resolutions in order to effectively change and grow? Is it possible to make resolutions that actually work?

One of my favourite methods for solving a problem, particularly when its connected to my subjective understanding (which is nearly always), is to go and look up the dictionary definition of key words involved in the problem. This usually, not only gives me a clearer image of what I'm trying to solve, but also helps to jump-start my thinking into more creative avenues.

In this case, there is really only one word that needs to be investigated – resolution. Here, according to Dictionary.com, is the definition of the word resolution.res·o·lu·tion (noun) [rez-uh-loo-shuhn] 1. a formal expression of opinion or intention made, usually after voting, by a formal organization, a legislature, club, or other group. Compare concurrent resolution,  joint resolution. 2. a resolve or determination: to make a firm resolution to do something. 3. the act of resolving or determining upon an action, or course of action, method, procedure, etc. 4. the mental state or quality of being resolved or resolute; firmness of purpose. 5. the act or process of resolving or separating into constituent or elementary parts. 6. the resulting state. 7. a solution, accommodation, or settling of a problem, controversy, etc. 8. Optics - the act, process, or capability of distinguishing between two separate but adjacent objects or sources of light or between two nearly equal wavelengths. Compare resolving power. 9. Music - a) the progression of a voice part or of the harmony as a whole from a dissonance to a consonance. b) the tone or chord to which a dissonance is resolved. c) reduction to a simpler form; conversion. 10. Medicine/Medical – the reduction or disappearance of a swelling or inflammation without suppuration. 11. The degree of sharpness of a computer-generated image as measured by the number of dots per linear inch in a hard-copy printout, or the number of pixels across and down on a display screen. The very first thing that I'm sure you'll have noticed, is that the word 'resolution' does not only have a single meaning. What's more, these multiple meanings range across usages as diverse as politics, philosophy, psychology, separation and/or unification, problem solving, optics, music, medicine, and computer graphics. Isn't English a wonderful language? And we wonder why people battle to learn it. Even we, who speak English as our first language, very often only assume that we know the meaning of a word due to common usage rather than actually finding out its complete meaning, or meanings.

Could it be that part of the reason we set ourselves up to fail on an annual basis is related to the fact that we don't have a sufficiently clear understanding of what a resolution should be? Of course, in this instance, the fact that I've asked the question, means that not only am I going to answer it, but that I will most definitely answer it in the affirmative. Yes, I believe that much of our resolution failure is the result of incorrectly, or insufficiently defining, or understanding the nature of resolutions.

If you look back on the dictionary definition shown above, you'll notice that the first two definitions for 'resolution', are firmly connected to most people's understanding of the New Year's type of resolution. Although the first definition speaks of a decision made by a group, rather than an individual, both really only focus on the decision itself. How many times have we heard that government, or parliament, has “adopted a resolution”, only to see it wither and die in a swamp of sub-committee debate, indecisiveness, and political jockeying. While both these definitions mention decisiveness, resolve, and even determination, they do not go beyond the act of making a single decision to either do, or not do something. Neither of these definitions makes any mention of how this is to be accomplished. In other words, these first two definitions describe resolutions that are most likely to be just like my earlier listing of humorous annual record of New Year's resolutions. Unfortunately, they also look a lot like many of our “real” New Year's resolutions. In other words, these definitions only deal with the very first step of making a successful resolution, identifying the problem, and deciding to do something about it.

A saying that has, with reason, become quite popular with motivational speakers & writers, is the following. “If you aim at nothing, you are sure to hit it.”. However, it is just as true to say that no matter how good your aim, your chances of success are hugely, if not completely reduced unless you also have a plan. For example, I can stand before an archery target with the very clear goal of embedding an arrow in the bullseye, but completely fail to do so due to the lack of a simple plan. Do I have all the appropriate archery equipment? Have I taken the time and effort to acquire the skills to effectively use my archery equipment? Is my goal of hitting the bullseye realistic? Have I specified realistic parameters in which to achieve my bullseye? Have I allowed for external influences, such as wind? Have I set myself a reasonable time-limit in which to achieve my purpose?

In a situation such as I've outlined above, I'm sure that none of us would realistically expect to succeed without all of the planning and preparation that I've mentioned. On the other hand, we continue, to make New Year's resolutions that, for the most part, are merely statements of purpose that contain little or no real substance in terms of planning, preparation, or perseverance.

With this in mind, let's return to our list of dictionary definitions and look at definitions 3, 4, 5 and 7 in more detail.

First, let's look at definition 4, which may at first glance may seem identical to the first two definitions, but which has a very important difference. While definitions 1 and 2 speak of the intent to do something, a very transient state of mind, definition 4 speaks of firmness of purpose; a more permanent state and quality of mind. While being resolute and firm of purpose definitely has to include that initial moment of decision, it also, unlike the classic New Year's resolution, must include the ongoing decision to continue with a course of action once begun. I suppose one could speak of it as a decision in the continuous tense.
i.e. I have decided, I am deciding, and I will continue to decide. In other words, the next thing that is necessary for a successful resolution, whether made in the New Year or not, is continuity of decision. My decision to change must last beyond the first flush of enthusiasm, and become a conscious, self-disciplined, ongoing decision.

In our quest for the successful New Year's resolution, definitions 3 & 5 really need to be considered together, as I believe they are two aspects of the next step in the goal setting process.

Definition 3 speaks not only of deciding to do something, but also of the course of action, and the methods and procedures that will be required to successfully implement that decision. I don't think that any one of us would decide to go on holiday to a place we've never been without doing at least the basic planning that is vital to reaching our holiday destination. Can we drive there in our car, or must we fly? Where is our destination exactly, and what route will we drive to get there? How far away is our destination? Can we get there in one day, or must we make arrangements for accommodation on the way? What is the cost of reaching and returning from our destination? Can we easily access further funds while there if need be? Has the car been serviced? Have we arranged someone to look after the dog?  In making the decision to go on holiday, these are just a few of the planning aspects that we almost automatically deal with in order to successfully achieve our purpose. Whether we're talking about resolutions or holidays, it is impossible to get from where we are to where we want to be without a proper course of action.

Those of you that have just had a strong cup of coffee, may have already spotted the next step in this course of action, which relates directly to definition 5. Definition 5 talks about resolution as the process of breaking something down into its constituent or elementary parts. Look back to our holiday example in the previous paragraph and you'll notice that our course of action needed to be more than just a slightly longer, more detailed statement of our decision to go on holiday to Twee-buffels-met-een-skoot-doodgeskiet-fontein. To enable us to achieve our goal of an enjoyable holiday, it was necessary to separate and isolate each and every part of the necessary process. We had to divide the process into tasks regarding such things as vehicles, money, accommodation, and care of the home & pets we would leave behind. Furthermore, each of these areas needed to be further broken down into individual tasks. This process of goal-setting, whereby a large and possibly complicated goal is broken down into smaller, more easily manageable sections is wonderfully illustrated in the following question.
Question: “How do you eat an elephant?”
Answer: “One bite at a time.”
In other words, divide your course of action into easily manageable tasks.

{Disclaimer: The previous question, along with any further development of the metaphor, is meant only as an illustrative metaphor for solving a seemingly impossibly large problem or challenge. There is no need to start a petition against eating elephants. Thank you.}

That brings us to definition 7 that defines resolution simply as the solution to a problem. To my way of thinking, this brings us around full-circle in our quest for setting successful resolutions. We started the process due to something that we perceived as problematic, and that needed improvement. In order to do this, we made a resolution, or to put it another way, we set a target. In order to reach this target, we set a goal, or goals, which we further divided into easily manageable, and measurable tasks. In considering definition 7, we therefore want to ask ourselves the question, is what I'm doing solving my problem? However, once again, within this process, we need to consider the elephant. What I mean by this is the following.

If I've set myself the task of getting rid of a dead elephant by means of eating it, and have applied the “one bite at a time” method of goal and task setting, there is still one trap into which I can fall. What if, after a month three of consistently only eating dishes such as tusker stew, fried ellie & beans on toast, trunk soup, éléphant au vin, and sweet and sour jumbo, I decide to go and check the freezer, to see how much progress I've made? On opening it, I discover that its still practically full of elephant! I'm suddenly filled with disappointment, the bottom falls out of my world, hopelessness and depression move in, and I decide that I've set myself a futile and impossible task. Hard on the heels of this realisation, I give up and make a very sizeable donation to the local soup kitchen.

I defined the problem, set the goal, and divided it into manageable tasks, and finally checked to see how I was doing. Where did I go wrong? Very simply I fell into the trap of not measuring my progress based on the individual tasks that I had set myself. Instead, and this is a most common error, I looked at the whole elephant, and its bulk blotted out the very real progress that I had already made toward my goal. What I should rather have done was to measure my success in completing each individual task. That way I am fed a constant diet of success. (and in this instance, elephant) Even if I periodically fail on an individual task, my failure must be measured only in the light of that task alone, and also compared to my multiple successes in other tasks. In this way, skipping a meal, or even a whole day's worth of elephantine meals, can be seen in its true light, as merely a small delay on the way to reaching my target, rather than as a failure. To put this in a nutshell (just the idea, not the elephant), goals must not only be broken down into manageable tasks, but those tasks must also be measurable.

Now, at this point, I could quite easily draw, albeit somewhat painfully, more resolution-setting lessons from my list of dictionary definitions. However, as much as the quirky side of my creativity would enjoy telling you that successful resolutions require clear, resolved vision of your target, or that to succeed you must resolve the dissonant strains of the music of your life, I will control myself. Instead, let me summarise what I've already said about achieving successful resolutions, whether you set them at New Year, or at any other time of the year.

Firstly, identify and own the problem. Ensure that you have a clear understanding of what needs to be fixed. As Dr. Phil would say, “You can't fix the problem till you admit you have the problem.”

Secondly, apply continuity of decision-making. What is needed is not a once-off resolution, but rather conscious, self-disciplined, ongoing firmness of purpose, whereby you constantly renew your decision. In this way, you commit yourself to a course of action, rather than a once-off resolution.

Thirdly, divide your course of action into easily manageable tasks. Eat that elephant one bite at a time. Everything is more manageable when you're only looking at one bite-sized chunk at a time.

Finally, each task must be measurable. Measure your progress and success by the completion of each task. That way you ensure constant, ongoing positive input. Similarly, only measure failure within individual tasks. A small slip-up never needs to affect the success of the entire venture.To put the final flourish on the bow of successful resolution, remember that research has shown that even those that make resolutions and fail, are ten times more likely to be successful in the longer-term than those that make no resolutions at all.

(Statistics from http://www.statisticbrain.com/new-years-resolution-statistics/)

Author: Robin Bownes.