Why people-focussed leadership is the key to organisational success
Healthy businesses are environments of trust, clarity, and purpose…
For Rowan McDonald, CEO of Letsema Corporate Finance, business success starts with people and the ability to connect with them. Drawing on a career that spans corporate finance, entrepreneurship, and investment management, Rowan shares his thoughts on the strategic value of clarity, the irreplaceable role of people, and how communication is the cornerstone of a thriving workplace…
ROWAN’S KEY INSIGHTS
Healthy businesses thrive on clarity: Organisational health is the ultimate advantage, driven by trust, alignment, and consistent communication. Clear communication - or what Rowan describes as “clarity is kindness” - creates an environment where businesses can thrive.
Human capital is key: People are central to value creation, with leadership, culture, and values essential to maintaining a business’s unique strengths.
Trust drives M&A success: Trust and transparency are crucial in M&A, with clear communication and alignment needed to sustain value and ensure long-term success.
Claire: Great to be speaking with you, Rowan! Would you mind sharing a little bit about your background and the journey that has led you to being CEO at Letsema?
Rowan: Sure, it's quite an interesting story and I'm sure it's not one you've heard before. I’ve always been entrepreneurial, so after doing my articles, I joined a colleague to help build their corporate finance division. It was an exciting, hands-on experience, setting the foundation for my career. At 29, I became the financial director of a parking management business, which we later sold. While I learned a lot about running a business, I realised being an FD wasn’t for me. I then started my own corporate finance business, which I ran for five years until Letsema approached me in 2019. They acquired my business, and that’s how I became part of the group. Letsema is a unique investment holding company with assets in insurance, mining services, logistics, industrial workwear, and water bottling. My role combines corporate finance advisory with investment work, supporting acquisitions and exploring new ventures like fund management. With experience as an entrepreneur, an FD, and an advisor, I bring a broad perspective to Letsema. It’s been an incredible journey, and I’m grateful to be part of a business that values entrepreneurship and keeps things dynamic.
Claire: Tell me a bit more about Letsema’s purpose and your vision for the business overall…
Rowan: With pleasure. At Letsema, our core belief is that business should be a catalyst for positive social change, and that’s something we live by. It’s not just a tagline - it’s a value that influences every decision we make, whether it’s about investments, recruitment, or how we operate day to day. For me, profitability is important, but it has to come with purpose. For example, we wouldn’t pursue a deal that delivers great margins if it leads to excessive job cuts because we want to contribute meaningfully to the country. I really see Letsema as a “goalkeeper” in the industry. While many focus on job creation, which is fantastic, we also prioritise job preservation. Both are critical to the economy, but preservation is often overlooked. To me, it’s like having a soccer team with only goal scorers and no goalkeeper - you need both to win. I think about deals where thousands of jobs were saved in a single transaction, and that’s the kind of meaningful impact we want to make. We aim to run businesses profitably and sustainably, but always with a purpose that makes a positive contribution to society.
Claire: I feel like what you’re talking about is healthy businesses – those that are able to balance profitability and sustainability. What does organisational health mean to you, and how do you think it impacts business success?
Rowan: Organisational health is really the ultimate advantage - it’s not just about being smart, it’s about being healthy. Healthy businesses thrive because clarity exists at every level, and clarity fosters trust and alignment. Patrick Lencioni talks about the importance of strategy, communication, re-communication, and over-communication. I think that’s spot on. You have to communicate clearly and consistently, even when the message isn’t what someone wants to hear, because clarity is kindness. When businesses are healthy, even if they aren’t initially the “smartest,” they become smarter because they’re functioning in an environment of trust, clarity, and purpose.
Claire: Clarity is kindness – I could not agree more. In thinking about comms and the human factor in business, what are your thoughts on the role of human capital in value creation?
Rowan: Human capital is absolutely central to value creation. At its core, a business is about connecting a product or service to a client, and people are involved in every step of that process. While technology has made us more efficient and continues to automate certain tasks, our humanness - our ability to connect, understand, and adapt - is where the real value lies. Machines can’t sit down with an entrepreneur to understand their vision or with leaders to align on a strategy. As tech handles more routine tasks, our ability to harness human connection and insight becomes even more critical.
Claire: Absolutely. In spite of this, why do you think human capital considerations are often overlooked in traditional business conversations like as M&A?
Rowan: I feel like human capital is acknowledged, but often not deeply enough. For instance, private equity funds often prioritise having a “solid management team,” but that usually means technical expertise rather than examining values, culture, or leadership style. Those deeper aspects are often where things go wrong. I’ve seen deals where the “secret sauce” that made a company successful was lost after acquisition because there wasn’t enough focus on preserving culture and values. Servant leadership and trust are essential to supporting teams and helping them deliver value. If people are just seen as tools, you risk losing the very elements that make a business unique and successful.
Claire: Are you able to share any observations of deals going wrong and what you learned?
Rowan: One example involved an who started micromanaging the acquired business’ management team. This approach broke trust entirely, leading to paralysis in decision-making, strained client relationships, and ultimately, a significant hit to profitability. What I learnt there is that trust is foundational - without it, everything falls apart. Another example was an acquisition where the target company’s management acted unethically. Once the acquirer realised what had happened, the relationship was irreparably damaged, and the deal fell apart. The learnings from both examples are how important trust, transparency, and alignment are in these large-scale transactions.
Claire: In M&A, who should take responsibility for employee communication during times of change?
Rowan: I really do believe that communication is a shared responsibility. Leadership within the business must own the communication strategy because they’re closest to the people it impacts. However, investors also have a role in supporting and aligning with management. It’s about matching strategy with structure and creating incentives that align with long-term goals. I’ve seen great examples where shareholders are present and engaged - they visit the business, know employees’ names, and take a genuine interest in their wellbeing. Those gestures build trust and help people feel valued, which has a significant qualitative impact.
Claire: To shift gear slightly, what excites you about Letsema and the future?
Rowan: I’m really hopeful about the next five years for South Africa, and I think it will translate into increased M&A activity. At Letsema, we’re particularly excited about our restructuring investment fund. It’s not a traditional fund where we raise a large tranche of capital upfront. Instead, we’re raising capital deal by deal, allowing us to move quickly and stay nimble. The fund focuses on job preservation, which is often overlooked in the investment landscape but is critical for our economy. It’s inspiring to think about the impact of rescuing a business and saving thousands of jobs. That kind of work aligns with Letsema’s philosophy of making a positive social impact through business. We’ve spent two years refining our approach, and we’ve partnered with some amazing people to bring it to life. I’m excited about the deals we’ll close next year and the difference they’ll make - not just for our investors, but for the people whose jobs we’ll help secure.
Claire: It’s great to hear you reflect so optimistically. It sounds like Letsema is really focused on balancing profitability with purpose.
Rowan: Absolutely. Profitability is important, but it must come with purpose. For us, it’s not just about creating value for shareholders; it’s about being a catalyst for positive change. That philosophy is woven into everything we do, from investments to how we engage with people. It’s what makes Letsema such a special place to work and lead.
WRITTEN BY CLAIRE KEET