Corporate Services Restructuring 31 March 2008
Introduction The AG completed the restructuring of Corporate Services in November
2005
The restructuring of corporate services was aimed at developing a service delivery model that would
– Facilitate better and more focussed service delivery to the rest of the organisation
– Establish a reliable administrative and technological platform to ensure that processes are efficient, cost-effective and facilitates effective decision making
– Facilitate knowledge sharing as a culture
– Facilitate ongoing scanning of the environment within which the organisation is operating
– Establish the ability to apply relevant benchmarking of acceptable norms and standards
An overview of the Corporate Services delivery model
Special & Strategic Projects
Implementation of policy and strategy
Service delivery effectiveness
Business partner enhancement
Project Management excellence
Special & Strategic Projects
Implementation of policy and strategy
Service delivery effectiveness
Business partner enhancement
Project Management excellence
Operational & Transaction Management
Implementation of policy and strategy
Service delivery effectiveness
Business partner enablement
Seamlessness
Operational & Transaction Management
Implementation of policy and strategy
Service delivery effectiveness
Business partner enablement
Seamlessness
Stakeholder Management
Relationship management External stakeholder
management & development Promotion and enhanced
external awareness of AG Strategic communication and
information Enhance AG’ reputation,
branding and image
Stakeholder Management
Relationship management External stakeholder
management & development Promotion and enhanced
external awareness of AG Strategic communication and
information Enhance AG’ reputation,
branding and image
GovernancePolicy consistency and coverage Risk management framework for AGEnablement of the service delivery framework in terms of strategic administrative processes
(secretariat functionality: minutes, delegations, accountabilities, etc.) Quality control
GovernancePolicy consistency and coverage Risk management framework for AGEnablement of the service delivery framework in terms of strategic administrative processes
(secretariat functionality: minutes, delegations, accountabilities, etc.) Quality control
StrategyCoherence of strategy across AG and CS Facilitation of strategic development in accordance with determined standards CS strategic alignment with the business
StrategyCoherence of strategy across AG and CS Facilitation of strategic development in accordance with determined standards CS strategic alignment with the business
Structure as of November 2005
Auditor GeneralAuditor General
Strategic & Special Projects
Strategic & Special Projects
Deputy Auditor General
Deputy Auditor General
Operations & Transaction Mgt
Operations & Transaction Mgt
Reputation & Stakeholder
Reputation & StakeholderStrategy
Strategy
AuditCEsx4
AuditCEsx4
AuditOperations
AuditOperationsGovernance
Governance SM:BBBEESM:BBBEE
CE 7CE 7
Strategy & Governance
• Scan the environment in which the AG operates and identify areas for strategic consideration
• Provide transversal advisory services
• Facilitate effective and integrative planning
• Facilitate consistent application of norms and standards
• Manage strategic risks
Reputation and Stakeholder
• Facilitates and integrates the management of the AG’s relations with internal and external stakeholders
• Consolidates brand, image and reporting initiatives
Strategic & Special Projects
• Delivers value-adding and project-based solutions according to the auditing and support requirements of the AG
Operations & Transaction Mgt
• Delivers all transactional activities according to established processes, procedures and well-defined norms
Transition Plan Cost of the restructuring process until March 2006 was R16 177 300.00
The AG allowed for a two-year transitional period to successfully implement and refine the relevant process, so that the new structure can yield benefits for the organisation
This period was set to end in November 2007
Within the two year period, the structure was refined so that the AG can have a close focus on ICT, Human Capital and Finance, which form the core of the AG transactional engine.
The refinement led to the creation of the
– Chief Operations Officer who heads ICT, Finance and Human Capital transactional activities, and Reputation & Stakeholder management looking at all stakeholders except auditees
– CE: Audit Innovation and Development is responsible for ensuring that innovative and best practices within auditing are developed and implemented
– Head of Auditing who coordinates all auditing activities
– Corporate office from the existing Strategy, Governance and Transformation units which is responsible for the development, monitoring and tracking of the implementation of the agreed strategic priorities
Updated management structure
Corporate Services Ratios
2007-08 2006-07
Staffing ratioOrg: Corporate Services
Salaries as % of total expenditure
Salaries as % of total expenditure
AG** Total 9:1 13.2% 8.8%
AG* 11:1 9.9% 5.7%
Comparable organisation 8:1 6.8% 6.8%
* As compared to industry information, where Corporate Services include the disciplines of HR, IT, Finance, Marketing, Strategy and Legal.
** The standard corporate services plus the AG’s teams for research and development for audit and corporate disciplines; as well as a parliamentary support capacity.
Benchmarks
Company *
Total % labour cost for all Support services @ Total labour cost for the Office for April 2007
Total labour cost for Human Capital @ Total labour cost for the Office for April 2007
AG 18.9% 2.9%
IDC 53.9% 4.4%
KPMG 4.8% 0.8%
PWC 24.5% 3.5%
Deloitte 13.1% 4.9%
BENCHMARK AVG 23.0% 3.3%
A total of 15 companies in all segments were contacted and requested to participate in our benchmark of which 4 agreed to participate.