Businesses can only survive when the revenue they are generating exceeds their expenses.

That is the sentiment of Ntiyiso Consulting Group chief advisor Miyelani Holeni.

Holeni was speaking with Tumisang Ndlovu on POWER Business on Thursday night.

He says when customers are not happy with the services they receive, it will reflect on how they pay the business.

“The architecture of an organisation and how they generate revenue is crucial because that speaks to an ecosystem, but it also speaks to a value chain that they must operate within,” explains Holeni.

He adds that dysfunctional organisations tend to have poor revenue generating records.

“They tend to deliver services very poorly or scantily. They tend to have more protests or people who stay away from them and choose wherever.”

With municipalities struggling to generate revenues owing to a lack of proper systems compounded by the Covid-19 pandemic,
Hole says municipalities should find ways to ensure they attract investment.

“When a municipality is attractive, they can attract investment. That investment is pumped into the city, buying land, building, creating jobs and all of a sudden, you have a municipality that is vibrant.”

He adds that governance is sacrosanct within any organisation including State owned enterprises.

“It [governance] drives and sets the tone for all the employees and everyone in the value chain to do their bit and when everyone does their bit, it means they are moving the mansionry for service delivery and revenue can then be generated with relative ease.”