GPW Strategic Plan 2006/2007 Presentation to the Portfolio Committee 17 May 2006 Government Printing Works

GPW Strategic Plan GPW Strategic Plan 2006/20072006/2007

Presentation to the Portfolio Presentation to the Portfolio Committee Committee 17 May 200617 May 2006

Government Printing Works

VISIONVISION

First choice security printer in Africa!First choice security printer in Africa!


MISSIONMISSION

Provide cost-effective, reliable and timeous Provide cost-effective, reliable and timeous services to all spheres of Government in services to all spheres of Government in printing and dissemination of a full suite of printing and dissemination of a full suite of Government information through Government information through technology and services excellence, and technology and services excellence, and

Provide the public equitable information Provide the public equitable information and above all, to form partnership with and above all, to form partnership with Government to achieve their goals through Government to achieve their goals through technology and service excellence.technology and service excellence.


VALUESVALUES

To ensure client information is secure at all To ensure client information is secure at all times in any security or non-security times in any security or non-security printing work and commit to the value printing work and commit to the value system which include the following:system which include the following:

HonestyHonesty ReliableReliable TrustworthyTrustworthy Client satisfactionClient satisfaction


MANDATEMANDATE

To provide the state with security printing To provide the state with security printing of passports, identification documents, visa of passports, identification documents, visa labels and other face value documents labels and other face value documents printed in a secure environment.printed in a secure environment.

Management, production and distribution of Management, production and distribution of central Government information products, central Government information products,

Provide secure printing needs of Provide secure printing needs of GovernmentGovernment


BUSINESS STRUCTUREBUSINESS STRUCTURE

G P W - D ig ita l G P W - S tan d a rd

G P WC o rpo ra te


GPW ORGANISATIONAL STRUCTUREGPW ORGANISATIONAL STRUCTURE

ChiefExecutive Officer

Chief Financial Officer

Exec DirectorMarketing &

Branding

Exec DirectorOperations &Technology

Exec DirectorHR &

Transformation

Senior MngrAdministration


Operations & Technology Operations & Technology StructureStructure

Operations MangerFactory ManagerAss. Factory Managers x2

TechnicalPlanning

ContractPrinting

OriginationDigitalPrinting

LetterPress

Litho

MaintenanceFormBinding

BookBinding

SecurityBinding

STAFF COMPLEMENTSTAFF COMPLEMENT

630 employees represented at:630 employees represented at:

National Office (Pretoria)National Office (Pretoria)

PolokwanePolokwane

MmabathoMmabatho

BishoBisho

Cape TownCape Town


PRODUCTS AND SERVICESPRODUCTS AND SERVICES

Security printing and related services (high security ink Security printing and related services (high security ink to DHA immigration offices, meat marking ink to to DHA immigration offices, meat marking ink to abattoirs, forensic analysis of fraudulent documents abattoirs, forensic analysis of fraudulent documents such as ID’s and revenue stamps). such as ID’s and revenue stamps).

Distribution & dissemination of government Information:Distribution & dissemination of government Information: Government GazettesGovernment GazettesAnnual ReportsAnnual ReportsTender bulletinsTender bulletins

Stationary ServicesStationary ServicesWarehousing & Distribution of standard stationery Warehousing & Distribution of standard stationery

items (Machine registers, Fire arm licenses, etc)items (Machine registers, Fire arm licenses, etc)Warehousing & Distribution of face value itemsWarehousing & Distribution of face value items


GPW ANTICIPATED TRENDSGPW ANTICIPATED TRENDS• Push of electronic information as opposed to “pulling” by Push of electronic information as opposed to “pulling” by

stakeholders will accelerate demand and use of electronic printstakeholders will accelerate demand and use of electronic print

• Acceleration towards electronic print will reduce conventional print Acceleration towards electronic print will reduce conventional print > diminishing use of conventional equipment> diminishing use of conventional equipment

• Increasing need for Security Print will absorb increased capacity on Increasing need for Security Print will absorb increased capacity on conventional equipment and defer redundancy of this equipmentconventional equipment and defer redundancy of this equipment

• Systematic development of “invisible” electronic print in security Systematic development of “invisible” electronic print in security printing will eventually render conventional equipment mostly printing will eventually render conventional equipment mostly redundantredundant

• Digital printing will remain to print reduced volumes of security Digital printing will remain to print reduced volumes of security hard copyhard copy

• Stationery consumption and product mix is likely to decrease Stationery consumption and product mix is likely to decrease dramatically as customers rapidly migrate to electronic data dramatically as customers rapidly migrate to electronic data capturing. Volumes over time are likely to be a fraction of the past capturing. Volumes over time are likely to be a fraction of the past and will diminish to become a smaller support component of the and will diminish to become a smaller support component of the new corporatised enterprisenew corporatised enterprise


GPW STRATEGIC PLANGPW STRATEGIC PLAN


1. DIRECTION SETTING > STRATEGIC INTENT1. DIRECTION SETTING > STRATEGIC INTENT


2. SWOT Analysis2. SWOT Analysis


2.1. Strengths2.1. Strengths


2.2. Weaknesses2.2. Weaknesses


2.3. Opportunities2.3. Opportunities


2.4. Threats2.4. Threats


3.0 KEY THRUSTS, STRATEGIES & 3.0 KEY THRUSTS, STRATEGIES & DELIVERABLESDELIVERABLES


BUSINESS DESIGN TO REALISE THE STRATEGIC BUSINESS DESIGN TO REALISE THE STRATEGIC INTENTINTENT


DEVELOP CORE BUSINESS PROCESSESDEVELOP CORE BUSINESS PROCESSES

• consultative crafting of the core consultative crafting of the core business processbusiness process

• Scoping of core sub processes to be Scoping of core sub processes to be mapped (see Key Thrust "Process mapped (see Key Thrust "Process Improvements"Improvements"

• Development of new Organisation Development of new Organisation Design around 'to be business Design around 'to be business processesprocesses


EXECUTE PUBLIC ENTITYEXECUTE PUBLIC ENTITY

• Preparation of a business casePreparation of a business case

• Develop the Legal Transformation Develop the Legal Transformation Process towards reconstituted Process towards reconstituted organisation as public entityorganisation as public entity

• Development of Holistic all Development of Holistic all encompassing conversion plan and encompassing conversion plan and accountabilitiesaccountabilities

• Development of a new corporate identity Development of a new corporate identity and logo around 'brand promise'and logo around 'brand promise'


MARKET DEVELOPMENTMARKET DEVELOPMENT


DEVELOP CREATIVE & AGGRESSIVE MKTG DEVELOP CREATIVE & AGGRESSIVE MKTG STRATEGY & PLANSTRATEGY & PLAN

• Quantitative Market Survey and Quantitative Market Survey and AnalysisAnalysis

• Qualified and quantified present and Qualified and quantified present and future print market trendsfuture print market trends

• Detailed competitor analysisDetailed competitor analysis

• Benchmark against similar Benchmark against similar operations/ technologyoperations/ technology


DEVELOP STAKEHOLDER RELATIONSDEVELOP STAKEHOLDER RELATIONS

• Relationship/marketing managers Relationship/marketing managers (visit clients regularly & evaluate (visit clients regularly & evaluate needs) appointedneeds) appointed

• Introduction of a call centerIntroduction of a call center


BUSINESS PROCESS IMPROVEMENTSBUSINESS PROCESS IMPROVEMENTS


BUSINESS PROCESS IMPROVEMENTSBUSINESS PROCESS IMPROVEMENTS

• Assess and enhance business and Assess and enhance business and systems processessystems processes

• Develop ISO standards for work Develop ISO standards for work environmentenvironment

• Select and implement production Select and implement production control systemcontrol system


SYSTEMS IMPROVEMENTSYSTEMS IMPROVEMENT

• Select and implement effective and Select and implement effective and efficient business systemsefficient business systems

• Upgrade infrastructure and Upgrade infrastructure and environmentenvironment

• Create capacity for proper Create capacity for proper Management Information and Management Information and Business IntelligenceBusiness Intelligence


SECURITY IMPROVEMENTSSECURITY IMPROVEMENTS

• Develop process and policies for Develop process and policies for information protectioninformation protection

• Upgrade physical securityUpgrade physical security


POLICY REVIEW AND ALIGNMENTPOLICY REVIEW AND ALIGNMENT

• Development of policies and Development of policies and proceduresprocedures


FINANCE IMPROVEMENTSFINANCE IMPROVEMENTS

• Assess finance systemAssess finance system

• Establish inventory of assetsEstablish inventory of assets

• Identify cost & resource driverIdentify cost & resource driver

• Implement Activity Based CostingImplement Activity Based Costing


ORGANISATIONAL ALIGNMENT & ORGANISATIONAL ALIGNMENT & STAFFINGSTAFFING

• Restructure organisation - flatter Restructure organisation - flatter structurestructure

• Develop a health and safety strategyDevelop a health and safety strategy

• Conduct skills assessment Conduct skills assessment Restructure organisation - flatter Restructure organisation - flatter structurestructure

• Develop a health and safety strategyDevelop a health and safety strategy

• Conduct skills assessmentConduct skills assessment


ORGANIZATIONAL TRANSFORMATIONORGANIZATIONAL TRANSFORMATION


CREATE PERFORMANCE BASED CREATE PERFORMANCE BASED CULTURECULTURE

• Develop Strategy Delivery system (performance management Develop Strategy Delivery system (performance management system)system)

• Assess organisation climate via Organisation Climate SurveyAssess organisation climate via Organisation Climate Survey

• Develop Performance Based Reward (Pay) System> Job Descriptions Develop Performance Based Reward (Pay) System> Job Descriptions + Job Grading + Market benchmarking + Pay Strategy+ Job Grading + Market benchmarking + Pay Strategy

• Develop Employment Relations strategy to meet GPW needs. Develop Employment Relations strategy to meet GPW needs. Structures and proceduresStructures and procedures

• Consultatively develop and inculcate Values & EthicsConsultatively develop and inculcate Values & Ethics

• Establish competent legal advisory serviceEstablish competent legal advisory service

• Develop and implement seamless intra-communication systemDevelop and implement seamless intra-communication system

• Development of Cross Functional Teams to implement strategic Development of Cross Functional Teams to implement strategic initiatives (CFTs)initiatives (CFTs)


IMPROVE INTERNAL PEOPLE COMPETENCIESIMPROVE INTERNAL PEOPLE COMPETENCIES

• Strengthened People Balance SheetStrengthened People Balance Sheet

• leadership developmentleadership development

• work place skills planwork place skills plan

• staff development programmesstaff development programmes


PARTICIPATIVE DEVT OF VALUE SYSTEMPARTICIPATIVE DEVT OF VALUE SYSTEM

• Participative Value Crafting ProcessParticipative Value Crafting Process

• Value roll out processValue roll out process

• Values Steering CommitteeValues Steering Committee


IMPROVE CORPORATE GOVERNANCEIMPROVE CORPORATE GOVERNANCE

• Development and implementation of Development and implementation of an internal audit coverage planan internal audit coverage plan

• Risk management planRisk management plan


ENHANCED OPERATIONAL CAPACITY & ENHANCED OPERATIONAL CAPACITY & CAPABILITYCAPABILITY


RELOCATE TO AN OPERATIONALLY EFFICIENT RELOCATE TO AN OPERATIONALLY EFFICIENT SITESITE

• Development of a relocation strategyDevelopment of a relocation strategy

• Identification of required facilities based on Identification of required facilities based on equipment specifications and user requirementsequipment specifications and user requirements

• Construction of a new buildingConstruction of a new building

• Development of funding and budget requirementsDevelopment of funding and budget requirements

• Preparation of a relocation PlanPreparation of a relocation Plan

• Identification and and disposal of Identification and and disposal of obsolete/superfluous assetsobsolete/superfluous assets

• Physical relocation of machinery and equipmentPhysical relocation of machinery and equipment

• Arrangement of opening ceremony to mark Arrangement of opening ceremony to mark implementationimplementation


DEVELOP EQUIP REPLACEMENT PROG ALIGNED DEVELOP EQUIP REPLACEMENT PROG ALIGNED TO STRATEGYTO STRATEGY

• New integrated system for the entire New integrated system for the entire printing worksprinting works

• Development of overall asset Development of overall asset management/maintenance/replacemmanagement/maintenance/replacement strategy ent strategy


DEVELOP R&D STRATEGYDEVELOP R&D STRATEGY

• Define R&D requirements Define R&D requirements • Define expectations for R&D in line with Define expectations for R&D in line with

business strategybusiness strategy• Identify R&D risks and mitigating measuresIdentify R&D risks and mitigating measures• Develop appropriate R&D matrix to measure Develop appropriate R&D matrix to measure

contribution on ongoing basiscontribution on ongoing basis• Develop interface/communication channels Develop interface/communication channels

between R&D and rest of organisation (esp. between R&D and rest of organisation (esp. sales/marketing and production)sales/marketing and production)

• Prepare and approve R&D budgetPrepare and approve R&D budget


DEVELOP EXT RELATIONS & FOR STRATEGIC DEVELOP EXT RELATIONS & FOR STRATEGIC ALLIANCESALLIANCES

• Communicate with stakeholdersCommunicate with stakeholders• Manage government relationsManage government relations• Build lender relationshipsBuild lender relationships• Develop public relations programDevelop public relations program• Manage relations with board of directorsManage relations with board of directors• Establish corporate governance policiesEstablish corporate governance policies• Develop community relationsDevelop community relations• Manage legal and ethical issuesManage legal and ethical issues• Communicate corporate performance to Communicate corporate performance to

stakeholdersstakeholders• Manage complianceManage compliance• Actively engage in BEEActively engage in BEE


DEVELOP SECURITY STRATEGY – PERSONNEL DEVELOP SECURITY STRATEGY – PERSONNEL & OPERATIONS& OPERATIONS

• Perform comprehensive analysis of Perform comprehensive analysis of security issues security issues

• Define security requirementsDefine security requirements

• Design security strategyDesign security strategy

• Implement Security StrategyImplement Security Strategy


INVESTIGATE & DEVELOP REGIONAL INVESTIGATE & DEVELOP REGIONAL PRESENCEPRESENCE

• Perform provincial stakeholder analysis/survey (in Perform provincial stakeholder analysis/survey (in all 9 provinces)all 9 provinces)

• Perform detailed analysis of functions and cost of Perform detailed analysis of functions and cost of provincial offices provincial offices

• Match needs identified to GPW strategy and Match needs identified to GPW strategy and existing provincial capabilitiesexisting provincial capabilities

• Cost additional functions/offices requiredCost additional functions/offices required• Perform cost/benefit analysisPerform cost/benefit analysis• Make a decision to create/ continue/expand/close Make a decision to create/ continue/expand/close

provincial officesprovincial offices• If continued existence warranted, re-engineer If continued existence warranted, re-engineer

processes to maximise supply chain efficiency.processes to maximise supply chain efficiency.• Develop matrix to measure performance on Develop matrix to measure performance on

ongoing basisongoing basis


BUSINESS MODEL FOR CONVERSIONBUSINESS MODEL FOR CONVERSION

Establish a schedule 3b specialist entity – GPW Establish a schedule 3b specialist entity – GPW CorporateCorporate

Establish 2 distinct business unitsEstablish 2 distinct business units::

GPW – DigitalGPW – Digital (core function would be security printing) (core function would be security printing)

GPW – StandardGPW – Standard (Govt Gazettes/annual reports, etc) (Govt Gazettes/annual reports, etc)


REASONS FOR CONVERSIONREASONS FOR CONVERSION

To ensure effective implementation of GPW To ensure effective implementation of GPW Conversion:Conversion:

Re-focus its core business to enable specialist Re-focus its core business to enable specialist security printingsecurity printing

Operational effectiveness to deliver a total cost Operational effectiveness to deliver a total cost solution (effective & efficient-seamless & solution (effective & efficient-seamless & integrated)integrated)

Develop unique capabilities and assets to meet Develop unique capabilities and assets to meet the needs of Governments & Citizens. the needs of Governments & Citizens.


Strategic Vulnerability AreasStrategic Vulnerability Areas

People People Staff turnover - inability to attract the best artisansStaff turnover - inability to attract the best artisans

ManagementManagement Leadership ito strategic & operational depth lackingLeadership ito strategic & operational depth lacking

TechnologyTechnology Very old machines – average age +40 years Very old machines – average age +40 years

(efficiency/quality affected)(efficiency/quality affected)

Location Location Current location not ideal – very old & inappropriateCurrent location not ideal – very old & inappropriate


Priorities – 2006/2007Priorities – 2006/2007

Deliver effective service deliveryDeliver effective service deliveryConversion and options Conversion and options New facility – Head Quarters (R250,0 mn)New facility – Head Quarters (R250,0 mn)Equipment and Machinery Replacement Equipment and Machinery Replacement

(R77,0mn)(R77,0mn)

New South African passportNew South African passport

Effective Marketing and BrandingEffective Marketing and Branding


THANK YOUTHANK YOU


Documents

GPW Strategic Plan 2006/2007 Presentation to the Portfolio Committee 17 May 2006 Government Printing Works