Transcript
Page 1: Corporate Services Restructuring   31 March 2008

Corporate Services Restructuring 31 March 2008

Page 2: 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

Page 3: Corporate Services Restructuring   31 March 2008

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

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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

Page 5: Corporate Services Restructuring   31 March 2008

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

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Updated management structure

Page 7: Corporate Services Restructuring   31 March 2008

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.

Page 8: Corporate Services Restructuring   31 March 2008

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.


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