PRESENTATION TO THE PORTFOLIO COMMITTEE ON

LABOUR

ANNUAL REPORT PRESENTATION (2007/8)

28 January 2009

VISION AND MISSION

VISION• To be South Africa’s productivity champion to achieve sustainable socio-economic

development.

Mission• Productivity SA is a tripartite organization dedicated to the development and enhancement of

South Africa’s productivity by unleashing the spirit of continuous productivity improvement in

all South Africans.

KEY FOCUS AREAS FOR 2007/8

• Inspiring a culture of Productivity among South Africans • Productivity Knowledge and Information• Enhancing Productivity Skills and Competencies• Public Sector Productivity • Turnaround solutions for companies• Industry sector collaborations and strategies• Corporate Services

INSPIRING A CULTURE OF PRODUCTIVITY AMONGST SOUTH

AFRICANS

INSPIRING A CULTURE OF PRODUCTIVITY

• To promote understanding and importance of

productivity in South Africa

• Cultivating a Productive attitude among learners and teachers

• To create a forum for exchange of productivity knowledge and skills locally, regionally and internationally

Objectives Achievements

• Launch of New Corporate Identity

• Productivity Movement campaign

– Productivity month

– Productivity awards

– Media and advertising campaign

– Awareness workshops

• Productivity in Schools

• International Partnerships

New Corporate Identity

National Productivity Institute

Rational for the New Brand

Productivity Month

• To establish a productivity mindset in youth in preparation for the world of work

• To promote productivity awareness in provinces

• To demonstrate the positive changes that can be brought about through productivity improvements

Objectives Achievements

• National Productivity Schools debates

• Productivity games (university of JHB)

• Productivity indaba (Partnership with Limpopo dept of Economic dev.)

• National Productivity Awards• Some of the finalists:

– Corporate Sector: Smiths Plastics (Pty) Ltd– Emerging Sector: Meadow Feeds Paarl– Public Sector: Kirstenbosch National

Botanical Garden

Productivity in Schools

• To spread the productivity message to high school learners by training teachers in productivity concepts.

• The impact of the programme is two-fold– Teachers are taught productivity concepts which they incorporate into

their teaching

– Learners take the new concepts with them as they move into the labour market

Objective Achievements

• National Schools Debates• Productivity awareness at UJ

International Partnerships

• To create a forum of transferring cutting-

edge productivity knowledge and skills to Productivity SA and other National Productivity Organisations in Africa

Objective Achievements

• Implementation of partnership projects with:– Asian Productivity Organisation (APO) – Japan Productivity Centre for Socio

Economic Development (JPC-SED)– Productivity SA still serves as PAPA

Secretariat of Pan African Productivity Association

– World Confederation of Productivity Sciences (WCPS)

– AU Labour and Social Affairs Commission

PRODUCTIVITY KNOWLEDGE AND INFORMATION

Knowledge Management and Research

• To generate and disseminate productivity and competitiveness information.

Objective

Outcome or Output Measure/indicator Achievements

Impact of Skills Development Study on Productivity and Competitiveness

Report completed Report completed

Annual Productivity Statistics Report completed Productivity Statistics completed

Public Sector Performance Study Report completed Report completed

IMD Competitiveness Yearbook IMD Report IMD for 2008 Yearbook completed

Sectors in Distress Study Research Report Report completed

South Africa Specific Competitive Indicators Research Report Research completed

Public Infrastructure and Productivity Research Report Research completed

Alternative Schemes to Alleviate Unemployment

Research Report Project at conceptualisation phase

ENHANCING PRODUCTIVITY SKILLS AND COMPETENCIES

Enhancing Productivity Skills and Competencies

• To develop increased number of sustainable small micro enterprises through productivity improvement

• To instil a culture of productive behaviour and best productive practices amongst the SMME sector

• To incorporate productivity concepts, values and applications into the National Curriculum Statement

Objectives Achievements

• Between 2006 and 2008 more than 1700 small enterprises coached and mentored to measure and improve productivity in their own organisations

2007/08 Targets and Achievements

Second Economy Interventions

Second Economy Interventions

PUBLIC SECTOR PRODUCTIVITY

Productivity Intervention in State Owned Enterprises

• To facilitate improvement of

organisational productivity through customised consulting engagements

Objective Achievements

• Productivity Improvement Projects completed in 2 SOEs:

– Ekurhuleni Metro– Mintek– South African Nursing Council (last phase to be completed

in the next financial year)

TURNAROUND SOLUTIONS FOR COMPANIES

Social Plan Interventions

• To provide technical support to prevent job losses and ensure the survival of businesses by returning them to profitability through:

– Developing enterprise turnaround strategies

– Promoting collaboration between management and employees in turning around the companies through future forums

Objective

INDUSTRY COLLABORATIONS AND STRATEGIES

Best Operating Practices

• To facilitate government and industry partnerships to improve the performance

and competitiveness of sectors, industries and business through:– Improved value-chain efficiencies

– Promoting constructive labour relations at the workplace

– Developing world class practices for continuous productivity improvement

– Sharing and disseminating experiences and lessons

Objective

Outcome or Output MEASURE/INDICATOR ACHIEVEMENTS

Productivity improvement throughcollaboration at the workplace andsharing successes

• 110 companies in the implementation or aftercare phase

1 new Cluster formed 4 new User Group formed

• 118 companies employing over 21 500 employees

1 new Cluster formed 5 new User Groups formed

Improving workplace practices 36 Milestone workshops

conducted 38 Milestone workshops

conducted

Training and mentoring consultants with

potential to facilitate Workplace Challenge

Processes

7 Change Facilitators trained and coached

9 Change Facilitators trained and coached

CORPORATE SERVICES

Human Capital

Objectives

• To create an enabling environment that continuously ensures alignment of human capital with Productivity SA mandate.

• To acquire cutting-edge productivity knowledge and skills from the Asian experiences

Achievements

• Annual Equity and Workplace Skills reports submitted to DoL

Intervention through APO/JPC-SED partnerships funded bythe Japanese government:

• 6 employees trained on the APO’s Basic Course for Productivity Practitioners (Total 30 from PAPA members countries)

• 4 employees participated on an observational study mission to Japan (Total 12 from Africa)

• 4 employees were selected to participate in pilot mode company project to transfer productivity consulting skills

Government Grant Over 5 YearsRM

.

21.834

4%

23.247

6%

23.944

3%

25.369

6%

26.637

5%

0

5

10

15

20

25

30

2003/4 2004/5 2005/6 2006/7 2007/8

Amount

Percentage

12%

33%

15%

40%Gov Grant

WPC

SP

Other

Sources of Revenue 2007/8

CHALLENGES

Productivity SA and Second Economy Challenges

• Inability to reach critical mass• Limited regional presence• Our mandate – to ensure peripheral economies (SMME) brought into the mainstream• Characterised by lack the orthodox systems found in larger or more established businesses• We recognise the strategic importance of the SMMEs to job creation in our economy; therefore,

Productivity SA continued to expand its interventions in this sector.• More than 1700 small enterprises coached and mentored to measure and improve productivity

in their own organisations– Productivity SA deployed its own resources – Combined projected financial benefit in excess of R115m p/a – These quantifiable financial benefits are a distinguishing factor that makes our small

enterprises intervention a flagship amongst the rest! – Partnership Challenges in the implementation led to over extension of our resources

CHALLENGES

• Negative Consequences:– Pressure on cash-flow due to unanticipated demands beyond our plan– Late payments

• Notwithstanding these challenges, Productivity SA prides itself in:– Solid Risk management culture– Strong internal audit focus

TURNAROUND FOR THE ORGANISATION

. Renegotiating the terms of partnership agreements to minimize our exposure

• Retraining of staff in additional competencies (multi skilling)

• Addressing key skills shortage through existing partnerships

• Strategy review– Revised business model to align with Skill Development Amendment Bill – Increase focus on turnaround solutions in light of the economic

downturn.

• Successful Rebranding of NPI to Productivity SA

• The right to host the 15th World Productivity Congress (first in Africa)

• Incorporation of Productivity into The National Curriculum Statement

• Continued to exceed targets in Jobs Saved through the Social Plan

• Achieving Productivity Improvement in the SMME with tangible financial gains

• Elevated the PCPB to a National Project

• Free positive media coverage to the value of R4m during the launch of Productivity Statistics

HIGHLIGHTS FOR 2007/08

.