COPYRIGHT AND CITATION CONSIDERATIONS FOR THIS THESIS/ DISSERTATION o Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. o NonCommercial — You may not use the material for commercial purposes. o ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original. How to cite this thesis Surname, Initial(s). (2012) Title of the thesis or dissertation. PhD. (Chemistry)/ M.Sc. (Physics)/ M.A. (Philosophy)/M.Com. (Finance) etc. [Unpublished]: University of Johannesburg. Retrieved from: https://ujdigispace.uj.ac.za (Accessed: Date). The FirstRand Founders’ Story: Exploring Synergistic Relationships by CHRISTEL FOURIE A thesis submitted in fulfillment for the Degree of Doctor in Philosophiae in Industrial Psychology Department of Industrial Psychology and People Management Faculty of Management UNIVERSITY OF JOHANNESBURG Promoter: Prof J. S. Uys 2016 DECLARATION I certify that the thesis submitted by me for the degree Doctor in Philosophiae (Industrial Psychology) at the University of Johannesburg is my independent work and has not been submitted by me for a degree at another university. i DEDICATION I dedicate this study to my promoter Prof J. S. Uys (1945-2015) Thank you, Professor Koos Uys, for being a central figure in my life over several years. To call you only my promoter does not do you justice. It is because of your inspiration, commitment and kindness that I have been able to have this thesis see the light. I am truly grateful for everything that you ploughed into this journey. Working with you has been a privilege and one that I will treasure for a lifetime. There can only be one Koos Uys. Your work will stand. Your legacy lives in the people that you helped to shape. You are loved and missed. Rest in peace. ii ACKNOWLEDGEMENTS I give thanks for God’s grace and comfort in times of difficulty and joy and am humbled by the talents I have been blessed with, through which I can do good with in this life. To my promoter, Professor Koos Uys, the words of this story lived in our heads and hearts for a long time. I am deeply grateful for your guidance, compassion and devotion as we walked this journey together. Thank you for not faltering in your belief in me. It is a tremendous gift. To my husband, Gerhard, it is hard to put my gratitude into words. This journey was not mine alone. I thank you for unconditional support at every turn with words from Elizabeth Barrett Browning’s Sonnet 43: “How do I love thee? Let me count the ways.” To six-year old Nina, who came into our lives when we were losing hope of a child, you have altered life for the better. You test me and you teach me. A ginormous thank you for helping Mamma1 to finish her book. I am so grateful to my parents, Johan and Magdaleen Lötter, who have only ever encouraged and supported me. You always provide a loving home and from you I learnt the value of hard work. To my sister Marlise Sharrock, family and dear friends, I am thankful for your understanding and the joy you bring to my life. To Carolin Burghardt and Charmaine Young, two strangers who became friends in a foreign land, I thank you for tirelessly cheering me on. I would like to acknowledge FirstRand for presenting a research case like no other. I am indebted to Dr Francois Hugo for his vital support, ear and for being a genteel person. Every encounter is a master class. A sincere thank you to the founders, Laurie Dippenaar, GT Ferreira and Paul Harris, who generously shared their views, intellect, humour and light years of experience with me. My deep appreciation extends to the FirstRand participants for contributing rich perspectives with enthusiasm. Every interaction was truly exceptional. Thank you to Melanie Kleinhans (Investor Relations) 3 for providing assistance with corporate information. Whilst the participants’ narratives form the backbone of this thesis, the interpretation and presentation thereof is the author’s own and does not necessarily reflect the views of FirstRand. Thank you to Gail Pearman, Tia Pienaar and Heather Graz who assisted at different points with editorial improvements. Heartfelt thanks for your support that stretched far beyond bringing a “can do” attitude and fresh pairs of eyes to the text. I would like to acknowledge and express my gratitude to the staff and those associated with the Department of Industrial Psychology and People Management and the Faculty of Management. Thank you in particular to Lorinda Landman, Yvonne Geleta, Fozia Kasoojee, Prof Freddie Crous and Prof Willem Schurink for assisting me in special ways. 4 ABSTRACT The study explores and describes the FirstRand founders’ efforts and influence in how a business success story unfolded. The research is driven by a desire to understand what made this story. FirstRand is one of South Africa’s largest and foremost financial services groups. The group is made up of world-class companies such as Rand Merchant Bank, First National Bank and WesBank. Hallmarks of all its companies, present and past, include a track record of innovation, strong values and an owner- manager philosophy. The group’s entrepreneurial history can be traced back to 1977 and the founding partnership of GT Ferreira, Laurie Dippenaar and Paul Harris. Over several decades the founders, together with a stable management team, built the group through a series of strategic acquisitions and mergers. The research question was formulated as: What did the three founders contribute individually and collectively to FirstRand’s success? Accordingly, a qualitative mode of enquiry was adopted and a case study design applied. The data were collected through semi-structured interviews with the founders and key role players such as chief executives, supplemented with other data sources. Data were analysed using narrative analysis. The goal was to describe the research setting comprehensively so as to enable readers to see the case study as the writing of history. The researcher’s insights clustered into four main interpretation themes: firstly, the founders’ partnership and complementarity as a success factor, secondly, how leadership worked in the founders’ eyes, thirdly, the founder-leaders as architects of culture formation and fourthly, how the founders created the conditions for emergence. What these insights mean was explored in the section on sensemaking by drawing links to theory that offer plausible perspectives on the FirstRand story. The study’s findings are relevant in revealing theories-in-use from three of the most highly regarded business leaders. There is no similar example to be found. The study’s key contribution is of a theoretical nature. The researcher’s overall impressions point to the founders having contributed a significant leadership and culture perspective that was lived and time-tested over more than three decades. Herein lie the true value-add and uniquely original contribution from this study. In addition several practical and life lessons came to the fore with possible application to readers’ own situations. The 5 study’s contribution to expanding the current body of knowledge about applied leadership and organisational culture as a driver of business results contain potential points of interests for a wide audience. 6 TABLE OF CONTENTS Page DECLARATION i DEDICATION ii ACKNOWLEDGEMENTS iii ABSTRACT v TABLE OF CONTENTS vii LIST OF FIGURES xvi GLOSSARY xvii PROLOGUE xix PART 1: PURPOSE AND PLANNING 1 Chapter 1: Introduction and Background 1 Introduction 1 Background 1 Why is this story worth telling? 3 Problem statement 5 Research question 6 What stirred my interest in the FirstRand story? 7 The story of the thesis 8 Committing to the study 9 The research context 10 Gaining access 10 FirstRand’s interest in the study 11 Affiliation 11 Anticipated contribution of the study 12 How the study is organised 14 Editorial notes 14 Conclusion 16 Chapter 2: Research Design 17 Introduction 17 Research approach 17 Philosophical assumptions 17 Ontology 18 vii Epistemology 18 Different ways of inquiring 20 The use of theory and literature review 20 Research method 21 Interpretive case study 21 Unit of analysis 23 Data collection 24 Interviews as main method 24 Additional sources 25 Sampling procedure 25 Who did I involve? 26 Special circumstances at the time of interviews 27 Recording of data 28 Narrative analysis 29 Thematic data analysis 30 Reporting the case study 31 My responsibility as researcher 31 Strategies to enhance the quality of research 32 Difficulties in the study 34 PART 2: THE DATA 36 Chapter 3: The Company 36 Introduction 36 Who is FirstRand and how did it come about? 36 Group history at a glance 37 Rand Consolidated Investments 37 Rand Merchant Bank 38 Momentum 38 Discovery 39 OUTsurance 40 The formation of FirstRand 41 First National Bank 41 WesBank 41 Black Economic Empowerment deal 42 The founders prepare to exit 42 Sizwe Nxasana takes over as CEO 43 Unbundling of Momentum 43 Ashburton Investments 43 CEO Sizwe Nxasana to step down 44 This organisation excites 44 Perspectives on the group and its founders 46 Conclusion 48 Chapter 4: The Founding Partnership 49 Introduction 49 How the partnership formed 50 Handpicking partners 52 The founders’ mindset 53 Conclusion and interpretation 56 Chapter 5: The Founders 58 Introduction 58 GT Ferreira 58 On meeting GT 59 In prime of life