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Strategic Corporate Plan Overview
South African Post Office Parliamentary Portfolio Committee on Communications
18 March 2011
2011/2012 Financial Year
1
FAgenda
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2
Chairperson’s Overview
Overview of the SAPO Strategic Plan
Financial Overview
Conclusion
Chairperson’s Overview
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3
•Review of the SAPO Governance Structure
•
Group Holding Structure
•
Subsidiaries
•
Reporting, Monitoring and Oversight between Group Holding Board and Subsidiary Boards
•Implementation of the New Companies Act which will come into effect on 01 April 2011
•
The Act provides for stricter accountability and transparency requirements for state owned
companies and public companies.
•
Review of the SAPO Articles of Association and Shareholders’
Compact
•Compliance with King III Code on Good Corporate Governance
•
Review of SAPO Committees to include Ethics and Nominations Committees etc.
•
IT Governance
•
Sustainability reporting
•
Risk based approached to Audit
•Postbank Act
•
Registration of Postbank as a Public Company in terms of the Companies Act;
•
Postbank licensing process i.t.o. the banks Act
Review of the SAPO Governance SystemsCritical Success Factors
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4
•Review of the SAPO Governance Structure
•
Group Holding Structure & Subsidiaries
•
Reporting, Monitoring and Oversight between Group Holding Board and
Subsidiary Boards
•Implementation of the New Companies Act which will come into effect on 01 April 2011
•
The Act provides for stricter accountability and transparency requirements for
state owned companies and public companies. ‐
Review of the SAPO Articles &
Shareholders’
Compact
•Compliance with King III Code on Good Corporate Governance
•
Review of SAPO Committees to include Ethics and Nominations Committees etc.
•
New King III requirements i.e. IT Governance; Sustainability reporting etc.
•Postbank Act
•
Registration of Postbank as a Public Company in terms of the Companies Act;
•
Postbank licensing process i.t.o. the Banks Act
Review of the SAPO Governance SystemsCritical Success Factors
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5
•Appropriate Labour Model for SAPO ‐
SAPO’s Strategy in response
to the Proposed Labour Law amendments & Appropriate flexible
labour model for SAPO;
•Succession Planning ‐
Strategy on the retention of scarce and critical
skills
•Change Management‐
Organisational culture and behaviour
•Performance Management‐
Balanced Business Scorecard
•Employee Development ‐
Continuous Education and Training; Skills
Development & Recognition of Prior Learning
•Employee Wellness ‐
Employee Assistance Programmes
•Labour Relations –
Strengthening relationship with the trade unions
Addressing People issues: Change management Critical Success Factors
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6
•Review of the SAPO Business and Operating Model
•Strengthening the SAPO Information Technology (IT) Platform
•Diversification of Revenue
•
Digital Business
•Continuous Strengthening the SAPO Procurement Processes
•Funding Plan for the SAPO Group
Other Major SAPO Projects Critical Success Factors
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7
Strategy Overview
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8
Vision, Mission & ValuesVision, Mission & Values1.1.
2.2.
3.3. Social MandateSocial Mandate
Regulatory & Legislative Framework Regulatory & Legislative Framework
4.4. Universal Service ObligationUniversal Service Obligation
South African Post Office Agenda
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5.5. Business Restructuring Business Restructuring
6.6. Business Unit FocusBusiness Unit Focus
7.7. Critical Success Factors Critical Success Factors
8.8. Support Units FocusSupport Units Focus
9
South African Post OfficeVision & Mission Statement
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MISSIONWe will enable
the nation to efficiently connect with the world by distributing
information, goods, financial and Government services; leveraging
our broad
reach and embracing change, technology and innovation
VISION To be recognized
among the Leading Providers of Postal and Related services in
the World
10
South African Post OfficeCore Values
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We
have
a
passion
for
our
customers
and
will
meet
their
specific
needs
through excellent service.
We
aim to contribute positively to our communities and environment.
We
treat each other with respect, dignity, honesty and integrity.
We
recognize and reward individual contributions.
We
embrace diversity in the way we conduct business.
11
Vision, Mission & ValuesVision, Mission & Values1.1.
2.2.
3.3. Social MandateSocial Mandate
Regulatory & Legislative Framework Regulatory & Legislative Framework
4.4. Universal Service ObligationUniversal Service Obligation
South African Post Office Agenda
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5.5. Business Restructuring Business Restructuring
6.6. Business Unit FocusBusiness Unit Focus
7.7. Critical Success Factors Critical Success Factors
8.8. Support Units FocusSupport Units Focus
12
South African Post OfficeFramework
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13
South African Post OfficeLegislative Environment
ACTSPostal ActsPFMA Financial Services Acts(FAIS, FICA,NPS, NCA,etc)Electronic and Communications Act Labour Legislation(LRA,OHSA, BCEA,etc) Inter‐Governmental Relations Framework Act 13Companies Act and AmendmentsAARTOConsumer Protection ActOther applicable legislation
REGULATIONSPostal Regulations ‐ ICASACourier Regulations – ICASAFinancial Regulations – FSB, PASA and
Savings Bank RegulationsKing IIIOther codes (DTI etc)
INTERNATIONAL
Universal Postal Regulations
Kyoto convention
World Customs standards & Convention
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14
Legislative LandscapeKey Regulatory & Legislative Changes
SA Post Office Legislation and Regulations
SA Postbank ActAmendment to Postal Services ActAmendment to SA Post Office ActEconomic Regulatory Framework ‐ ICASA
Business Model ReviewGroup Governance Structure ReviewOrganisational Structure ReviewFunding Model
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Emerging Legislation and Amendments
Labour Legislation AmendmentsEmployment Services BillConsumer Protection ActImplementation of AARTO
Labour Model of the organisationProducts and Services Information Security and Policies
15
Vision, Mission & ValuesVision, Mission & Values1.1.
2.2.
3.3. Social MandateSocial Mandate
Regulatory & Legislative Framework Regulatory & Legislative Framework
4.4. Universal Service ObligationUniversal Service Obligation
South African Post Office Agenda
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5.5. Business Restructuring Business Restructuring
6.6. Business Unit FocusBusiness Unit Focus
7.7. Critical Success Factors Critical Success Factors
8.8. Support Units FocusSupport Units Focus
16
Improved Quality of Basic Education.
A long and healthy life for all South Africans.
All people in South Africa are and feel safe.
Decent employment through inclusive economic growth.
A skilled and capable workforce to support an inclusive growth path.
An efficient, competitive and responsive economic infrastructure network.
Vibrant, equitable and sustainable rural communities with food security for all.
Sustainable human settlements and improved quality of household life.
A responsive, accountable, effective and efficient local government system.
Environmental assets and natural resources that are well protected and continually enhanced.
Create a better South Africa and contribute to a better and safer Africa and World.
An efficient, effective and development oriented public service and empowered, fair inclusive citizenship.
Social MandatePriorities : State of the Nation
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17
South African Post OfficeAlignment with State of the Nation Address
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GOVERNMENT PRIORITIES GOALS POST OFFICE PROGRAMS
Building a Prosperous Society
Improve Service delivery Customer centricity and shared services improvement
Service targets as per mandate Job creation Jobs created through our capital
investment programs such as point of presence expansion, IT investment & address expansion
Labour Model Skills development ICT skill development
E‐Cadre, Learnerships, CSI program
Fight against crime & corruption Crime buster hotlineHealth Wellness and HIV programs
Rural development program Branch & address expansion
Building
a
Responsive,
Accountable,
Effective
and
Efficient
Local
Government Structure
CSI Programmes
Building
a
better
Africa
and
a
better
World UPU, SADC, SAPOA, PAPU
18
Vision, Mission & ValuesVision, Mission & Values1.1.
2.2.
3.3. Social MandateSocial Mandate
Regulatory & Legislative Framework Regulatory & Legislative Framework
4.4. Universal Service ObligationUniversal Service Obligation
South African Post Office Agenda
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5.5. Business Restructuring Business Restructuring
6.6. Business Unit FocusBusiness Unit Focus
7.7. Critical Success Factors Critical Success Factors
8.8. Support Units FocusSupport Units Focus
19
Universal Service ObligationAddress Roll Out target
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PROVINCE REQUIRED 2009/10 2010/11 2011/12 2012/13 2013/14
Free State 432,836 106,209 65,325 65,325 65,325 65,325
Northern Cape 45,542 18,212 5,466 5,466 5,466 5,466
North West 760,920 98,751 132,434 132,434 132,434 132,434
Limpopo 1,249,408 317,419 186,398 186,398 186,398 186,398
Mpumalanga 978,569 253,828 144,948 144,948 144,948 144,948
Gauteng 900,358 118,289 156,414 156,414 156,414 156,414
Western Cape 825,840 88,548 147,458 147,458 147,458 147,458
Eastern Cape 1,119,032 384,480 146,910 146,910 146,910 146,910
KwaZulu Natal 1,340,411 288,725 210,337 210,337 210,337 210,337
TOTAL 7,652,916 1,674,461 1,195,690 1,195,690 1,195,690 1,195,690
20
Universal Service ObligationAdditional Point of Presence
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PROVINCE REQUIRED CURRENT 2010/11 2011/12 2012/13 2013/14 TOTAL
Eastern Cape 452 359 6 6 6 6 24
Free State 206 164 2 2 2 2 8
Gauteng 693 358 22 22 22 22 88
KwaZulu Natal 651 382 15 15 15 15 60
Limpopo 331 289 2 2 2 2 8
Mpumalanga 232 199 1 1 1 1 4
Northern Cape 78 120RE‐BALANCING & RE‐LOCATIONS
North West 218 285
Western Cape 334 314 2 2 2 2 8
TOTAL 3,195 2,470 50 50 50 50 200
21
Vision, Mission & ValuesVision, Mission & Values1.1.
2.2.
3.3. Social MandateSocial Mandate
Regulatory & Legislative Framework Regulatory & Legislative Framework
4.4. Universal Service ObligationUniversal Service Obligation
South African Post Office Agenda
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5.5. Business Restructuring Business Restructuring
6.6. Business Unit FocusBusiness Unit Focus
7.7. Critical Success Factors Critical Success Factors
8.8. Support Units FocusSupport Units Focus
22
MAIL BUSINESSMAIL BUSINESS LOGISTICSLOGISTICS FINANCIAL SERVICESFINANCIAL SERVICES NEW BUSINESSESNEW BUSINESSES
TRANSPORT TRANSPORT
I.C.T. SERVICES
South African Post OfficeCurrent Business Model
PROPERTIES
SOUTH AFRICAN POST OFFICE [GROUP]SOUTH AFRICAN POST OFFICE [GROUP]
CONSUMER SERVICES
CORPORATE & BUSINESS SUPPORT
23
MAIL MAIL BUSINESSBUSINESS
DIGITAL DIGITAL BUSINESSBUSINESS
S.A. POSTBANK S.A. POSTBANK [LTD][LTD]
OPERATING DIVISIONS
South African Post OfficeProposed Business Model
SUBSIDIARIES
SOUTH AFRICAN POST OFFICE [GROUP]SOUTH AFRICAN POST OFFICE [GROUP]
CORPORATE AND SUPPORT SERVICES
PROPERTIESPROPERTIES LOGISTICSLOGISTICS
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CHANNELS
NON NON POSTBANK POSTBANK FINANCIAL FINANCIAL SERVICESSERVICES
24
Vision, Mission & ValuesVision, Mission & Values1.1.
2.2.
3.3. Social MandateSocial Mandate
Regulatory & Legislative Framework Regulatory & Legislative Framework
4.4. Universal Service ObligationUniversal Service Obligation
South African Post Office Agenda
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5.5. Business Restructuring Business Restructuring
6.6. Business Unit FocusBusiness Unit Focus
7.7. Critical Success Factors Critical Success Factors
8.8. Support Units FocusSupport Units Focus
25
LO
GIS
TIC
S
MAIL BUSINESS
Postal Business
Consum
erServices
Co
rpo
rate
Serv
ices
Busine
ss Sup
port Services
TRANSPORT
Communi- cation
Distribution &
Delivery Network
Mailroo
m
Man
agem
ent &
Add
ressing
Solution
s
Direct
Commun
ication
eSolutions &
Fulfillm
ent
Corporate Services
Postal Solutions
CommunicationElectronic Fulfillment
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Mail BusinessCurrent Business Model
26
LO
GIS
TIC
S
MAIL BUSINESS
Postal Business
Consum
erServices
Co
rpo
rate
Serv
ices
Busine
ss Sup
port Services
TRANSPORT
Communi- cation
Distribution &
Delivery Network
Mailroo
m
Man
agem
ent &
Add
ressing
Solution
s
Direct
Commun
ication
Corporate Services
Postal Solutions
Communication
ePOSTALINTEGRATED
INTO “DIGITAL”BUSINESS
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Mail BusinessProposed amendments
Alterna
tive cha
nnels
27
Mail BusinessCore Focus Areas
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Mail Business
Sustainability
REVENUE GROWTHPromotional of Direct MailFocus on the Box Rental BusinessReview and Rationalisation of Products and Pricing
OPERATIONAL EXCELLENCEImplementation of Lean initiativesRationalisation of infrastructureContinuous improvement of service delivery
RETENTION OF CUSTOMERSImplementation of Value Added Serviceo Track and Trace Upgradeo Mailroom Serviceso Postal Delivery Database
28
Mail BusinessStrategic Projects
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Address roll‐out to Urban & Rural Areas ‐
3 587 070m Addresses in 3Yrs
Address Management ‐
Enhancement of the N.A.M.S. [2011]
Further implementation of IT systems, Track & Trace & RFID [2011]
Automation of Mail Centres [2012]
Addressing & Postcode system [2011 & 2012]
ISO 9001:2000 Accreditation Implementation [2011]
Employees & Management Development Programmes ‐
Ongoing
1
3
5
7
2
4
6
Implementation of Lean Initiative [2011]8
29
New Digital BusinessProposed Model
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Decentralised Printing Solutions
Mobile Based Solutions
Internet Based Solutions
Self Service Solutions
Business Communication & Transaction Solution ProviderBusiness Communication & Transaction Solution Provider
Trust & Identity Management
“ICT”
Services
Busine
ss Sup
port Services
Corporate Services
Consum
erServices
Alterna
tive cha
nnels
30
Online Philately Shop
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Within ePostal Online [Proof Of Concept]
31
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Online Philately Shop Within ePostal Online [Proof Of Concept]
32
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Online Philately Shop Within ePostal Online [Proof Of Concept]
33
Online Philately Shop Within ePostal Online [Proof Of Concept]
34
Virtual Post Office
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Proof Of Concept
35
Virtual Post OfficeHome Page
36
Virtual Post OfficeSpecialised “Counters”
37
Virtual Post OfficeProduct Page
38
Virtual Post OfficeProduct Page
39
Virtual Post OfficeSelf Service Channel
40
LOGISTICS BUSINESS
COURIER
Small parcels &
documen
ts
0‐30
kg doo
r to doo
r coun
ter to cou
nter,
coun
ter to doo
r an
d do
or
to cou
nter
Han
dling & delivery of
parcels, m
in 20kg within
72 hou
rs, d
oor to doo
r,
point to point and
Re
tailers
Solution
s covering
point
of origin to point of
consum
ption eg dem
and
plan
ning, w
areh
ousing, in
& outbo
und logistics etc
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Logistics BusinessCurrent Business Model
Busine
ss Sup
port Services
Corporate Services
Consum
erServices
FREIGHTFULL PARTY LOGISTICS
TRANSPORT
Alterna
tive cha
nnels
41
SPEED SERVICES
COURIERS
TARGET
MARKET
Consumer
/
Business
Business Business Bulk
SERVICE
OFFERING
Courier
services
involving
counters
Courier
and
Freight services
Consolidated
mini
freight containers
COMPETITIVE
ADVANTAGE
The
Counter
(Post
Office
Network)
–
Affordability
National
footprint,
no
sub‐
contractors
Sell space
Sealed containers
No tampering
POSITIONING No‐Frills Premium Reliability
Legal Profession
Move
legal
documents
between
members
Access
to
the
back
offices
of
the courts
Secure
Logistics BusinessValue Proposition & Core Offering
42
Logistics BusinessStrategic Projects
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Accelerate the Docex integration into Logistics
Transport Consolidation
Branding of the Logistics
Finalisation of the SSC/CFG Integration
Revenue Growth
1
3
5
2
4
43
LO
GIS
TIC
S
FINANCIAL SERVICES
Assuran
ce &
Insurance
Money Transfers
Savings,
Tran
sactiona
l &
Investmen
ts
Gov
ernm
ent loan
s
Private loan
s
Gov
ernm
ent pa
ymen
ts
Private pa
ymen
ts
Dom
estic tran
sfers
Internationa
l transfers
Consumer Banking
Facilitated Lending
Payments Insurance
Busine
ss Sup
port Services
Corporate Services
Consum
erServices
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Financial ServicesCurrent Business Model
44
LO
GIS
TIC
S
S.A. POSTBANK
Money Transfers
Savings,
Tran
sactiona
l &
Investmen
ts
Loan
s
Dom
estic tran
sfers
Internationa
l transfers
Consumer Banking
Lending Payments
Busine
ss Sup
port Services
Corporate Services
Consum
erServices
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PostbankProposed amendments
Alterna
tive cha
nnels
45
46
Postbank CorporatisationKey milestones
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Milestone Activities
Implementation of the required organisation
and governance structure
Identification of assets and liabilitiesBoardKey office bearers
Registration of the company In accordance with the required processAppointment of auditorsCompany secretaryDirectors
Transfer of function between Post Office and
PostBank
Non banking functions transferred to Post OfficeBanking functions transferred to PostBank
Designation notice Designates PostBank a participant in the NPS
Transfer of assets and liabilities Valuation of assets and liabilitiesTerms of transfer of assets and liabilitiesEnable transfer on promulgated date of transfer
Transfer of staff Identification of staff and agreement on terms of
transferEnable transfer under section 197 of the LRA
47
Postbank CorporatisationKey milestones
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Milestone Activities
Technology Enablement Addressing gaps identified in due diligence and associated audits Segregation between SAPO and PostBank for banking specific operationsImplementation and upgrading or required banking technologyAssessing capabilities not resident within SAPO and sourcing
People Enablement Addressing gaps identified in due diligence and associated audits Training and development to meet regulatory requirementsRecruitment of required skill
Process Enablement Processing and data segregation between SAPO and PostBankBanking functions transferred to PostBank
Conclusion of a co‐operation
agreement between
shareholder and PostBank
Transfer pricing and operating
Mock and Final Application Business strategyOperational strategyGovernance and compliance frameworkFinancial summary, projections and funding requirementsRegulatory forms
PostbankStrategic Projects
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Separation of Postbank Business from Financial Services
Postbank Corporatisation Process
Governance Structures
Separation of Postbank from SA Post Office
Positioning of SA Postbank
1
3
5
2
4
48
LO
GIS
TIC
S
Physical Outlets
Tran
sport
Alternative Channels
Electronic Channels
Post Offices, Thusong Centre’s, Retail
Agencies
ATM
Alternative retail agencies
Access To Internet & Self Service
Channels
Consumer ServicesCurrent model
Busine
ss Sup
port Services
Corporate Services
TRANSPORT
CONSUMER SERVICES
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49
LO
GIS
TIC
S
Physical Outlets
Tran
sport
Alternative Channels
Electronic Channels
Post Offices, Thusong Centre’s, Retail
Agencies
Alternative retail agencies
Access in physical outlets to ATM,
Internet & Self Service Channels
Consumer ServicesProposed amendments
Busine
ss Sup
port Services
Corporate Services
TRANSPORT
CONSUMER SERVICES
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50
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Universal Consumer NetworkPossible with Multi Channel Strategy
SERVICE CHANNELS
OPERATING MODEL
PRINCIPLES
Single View of Customer
Data Driven Decision Making
Process Management
Centralization and Standardization
Customer Excellence
Internet Cell phone Mobile Agent Self Service
51
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Universal Consumer NetworkPossible with Multi Channel Strategy
REQUIRED LICENSESFull Banking License
Postal Operator licence
PRODUCT TYPES
Postal products and services
Financial product and services
Banking products and services
Logistics products and services
Government products and services
OUTLET TYPES Communication Centre Business Centre Citizen Centre
52
Vision, Mission & ValuesVision, Mission & Values1.1.
2.2.
3.3. Social MandateSocial Mandate
Regulatory & Legislative Framework Regulatory & Legislative Framework
4.4. Universal Service ObligationUniversal Service Obligation
South African Post Office Agenda
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5.5. Business Restructuring Business Restructuring
6.6. Business Unit FocusBusiness Unit Focus
7.7. Critical Success FactorsCritical Success Factors
8.8. Support Units FocusSupport Units Focus
53
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Key Strategic ProgrammesCustomer Focus
Customer Experience Improvement
Organisational Re‐alignment Around Customer
Develop Customer Intelligence
LOGISTICS POSTBANK
Solution Development Per Customer Segment
DIGITAL CONSUMER
SERVICE
$
54
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Key Strategic ProgrammesAccessibility to Products & Services
Product And Solution Development Per Segment
Profitability and Rationalisation
LOGISTICS POSTBANK
Measuring Risk And Profitability Per Segment And Channel
DIGITAL CONSUMER
SERVICE
$
Product And Solution Delivery Per Profitable And Preferred Channel
55
Vision, Mission & ValuesVision, Mission & Values1.1.
2.2.
3.3. Social MandateSocial Mandate
Regulatory & Legislative Framework Regulatory & Legislative Framework
4.4. Universal Service ObligationUniversal Service Obligation
South African Post Office Support Units
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5.5. Business Restructuring Business Restructuring
6.6. Business Unit FocusBusiness Unit Focus
7.7. Critical Success FactorsCritical Success Factors
8.8. Support Units FocusSupport Units Focus
56
Human CapitalTransformation programs
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HHIIGGHH
PPEERRFFOORRMMAANNCCEE
OORRGGAANNIISSAATTIIOONN
ME
WEWORK
WORLD
Globalization(SAPO's InternationalRelations)
Technology(SAPO continuouslyimproving on technology, and accessibility for South Africa)
Social responsibility (VariousSAPO initiatives)
Coaching &Mentoring
Vision and Strategy (New Operating Model)
Global Warming(SAPO EnvironmentalInitiatives)
Managing and ValuingDiversity (will also be addressed in team and Individual work)
SAPO Brand &Image ( EmployeeIdentity and Enhancingthe customerExperience – raise service levels)INDUCTION PROGRAM
“War for Talent”Human Capital Optimization(Talent - , Succession - and Performance management ).
Personal Mastery(IncludingEQ)
Values(Drive to embedAnd ‘live the SAPO Values”)
Team Optimization(Self OrganizingTeams) TEAM BUILDING
57
Human CapitalJob creation
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Job Creation 2010/11 ‐
2012/13 2011 2012 2013Total over
period
CategorySpecial Projects 12 20 20 52
Consumer Services 554 571 587 1712
Mail Business 1040 486 167 1693
Transport & Logistics 16 16 14 46
Postbank 41 26 30 97
IT 60 60 0 120
Total 1723 1179 818 3720
Indirect employment 1615 130 120 1865
Direct employment 1723 1179 818 3720
58
Human CapitalDevelopmental programs 2010/2011
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Areas Initiatives Targets Achieved
Employees ABET 450 employees
Bursaries for formal academic studies R2 million budget allocated
Formal Management & Leadership Development Programs 200 employees
Learnerships Marketing NQF 4 20 employees
Associate Accounting Technicians 59 employees
Customer Services NQF 4 150 employees
Youth development
programsGraduate Program 120 graduates
E‐literacy Digital literacy 150 employees
Community
DevelopmentCSI –
Digital Literacy 173 youth from previously disadvantaged
backgrounds/communities
Learning interventions for grade 10 to 12 learners in
disadvantaged communities200
International
DevelopmentTeam and workforce optimisation interventions for the Pan
African Postal Union (PAPU)15 PAPU staff
Training offered to Postal Administrations within SADC
countries in International Money transfers 100 people trained
59
Human CapitalPlanned Developmental programs 2011/2012
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Areas Initiatives TargetsEmployees ABET 600 employees
Bursaries for formal academic studies R2.5 million budget allocation
Formal Management & Leadership Development Programs 250 employees
Special SETA funded programs 500 employees
Learnerships Contact Centre NQF 4 50 employees
Professional Driving NQF 3 20 employees
Logistics Management NQF 4 20 employees
Certificate in practical management NQF 5 30 employees
Youth
development
programs
Graduate Program 100 graduates
Monyetla Work Readiness Program for unemployed youth 70 unemployed youth
E‐literacy Digital literacy 200 employees, 700 externals
Community
developmentDevelopment Interventions for learners in disadvantaged communities Ad‐hoc basis
International
developmentConsultation on workforce restructuring and remuneration for the PAPU office Ad‐hoc as per need
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EnvironmentalPillars, initiatives and targets
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Protect the environmentMinimise our impact on the environmentUtilize our non-renewable resources in a sustainable wayPursue sustainable management practicesPartake in national debate surrounding sustainable development
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Performance MeasurementBusiness Balance Scorecard: Financial
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Long‐term
strategic
objectiveAnnual objective Improvement priority Target 2011/12 Target 2012/13 Target 2013/14
Achieve growth
(Financial sustainability)
Improve income statement Group revenue growth 5% 7% 7%Post Office 4% 7% 7%Logistics 7% 8% 8%CFG (incl SSC) 7% 8% 8%Docex 7% 8% 8%
Group operating profit R228m R319m R422mPost Office R80m R143m R215mLogistics R149m R176m R207mCFG (incl SSC) R141m R166m R196mDocex R8m R10m R11m
Increase
cost
efficiency
managementGroup staff cost % of total cost 51% 51% 51%Group total cost % of total income 96% 95% 94%
Strengthen the balance sheet Postbank
non‐interest
revenue
growthR197m R221m R247m
Grow Postbank depositors book R394m R434m R477m
Long‐term strategic objective Annual objective Improvement priority Target 2011/12 Target 2012/13 Target 2013/14Achieve growth
(Financial sustainability)
Strengthen the balance sheet ROA 1,5% 1,1% 1,3%ROE 6.1% 4.8% 5.6%Total assets R10.323m R11.139m R12,037mCurrent ratio 1 1 1Debtors days
Courier
17
55
17
55
17
55Capital
investment
in
priority
areasTotal CAPEX R411m R367m R358m
Achieving process efficiency Business restructuring Positioning of SA Postbank Ltd License
requirements
Transition
programmes
Stakeholder management
Refine
risk
management
and
governance
frameworks
Evaluation review
Business restructuring Review
and
implementation
of
Shared Services Review
current
processes
and SAP optimisationOutsource
non‐core
functionsTransport Complete formulation
of
new transport modelComplete
implementation
of new model 62
Performance MeasurementBusiness Balance Scorecard: Social
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Long‐term
strategic
objective
Annual objective Improvement priority Target 2011/12 Target 2012/13 Target 2013/14
Provide
a
stable,
well
trained
and
satisfied
employee
force
Decent workplaces Workplace
accidents
and
IOD’s5%
reduction
on
previous
year’s actual5%
reduction
on
previous year’s actual5%
reduction
on
previous year’s actual
Improve intellectual capital Training expenditure
as
%
of
group staff budget1.15% (R34m) 1.15% (R36m) 1.15% (R37m)
Talent management Succession
planning
to
level 4 managersComplete
level
4
managers
Performance management 100% TCTC evaluations 100% TCTC evaluations 100% TCTC evaluations
Labour practices Management of HR liabilities
Leave liability
Housing liability
Post‐Retirement
Medical
Aid cost
10%
reduction
on
previous
years’
actuals
10%
reduction
on
previous
years’
actuals
20%
reduction
on
previous
years’
actuals
10%
reduction
on
previous years’
actuals
15%
reduction
on
previous years’
actuals
20%
reduction
on
previous years’
actuals
10%
reduction
on
previous years’
actuals
10%
reduction
on
previous years’
actuals
20%
reduction
on
previous years’
actuals
Employee Relations Nr of CCMA cases Nr of CCMA cases Nr of CCMA cases
Health Wellness program 60% 70% 70%
HIV/AIDS 75% 80% 80%
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Performance MeasurementBusiness Balance Scorecard: Social
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Long‐term
strategic
objectiveAnnual objective Improvement priority Target 2011/12 Target 2012/13 Target 2013/14
Satisfied customers License
and
mandate
obligationsAccess to ICT services Achieve targets that will
emanate
from
the
BU
plans
to
be
finalised
1st
Q 2011
To be defined in 2010 To
be
defined
in
2011
Address expansion 1
195 690 1
195 690 1 195 690
Additional
points
of
presence50 50 50
Delivery standard
Logistics
92%
98%
93%
98%
95%
98%Queue waiting time 7min 7min 7min
Customer centricity Develop intelligence Define
data
strategy
during first six monthsEstablish
market
&
customer
intelligence
function
Conduct
product
and
customer
profitability
study by March 2012
Develop one customer
view abilityImplement
one
customer view ability
64
Performance MeasurementBusiness Balance Scorecard: Social
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Long‐term
strategic
objectiveAnnual objective Improvement priority Target 2011/12 Target 2012/13 Target 2013/14
Governance
and
complianceEthics Ethics procedures Quarterly meetings
Baseline reporting
Quarterly meetings
Baseline reporting
Quarterly meetings
Baseline reporting
Anonymous crime reporting 10% increase on previous
years’
actuals10%
increase
on
previous years’
actuals10%
increase
on
previous
years’
actualsCrime and fraud 10%
reduction
on
previous years’
actuals10%
reduction
on
previous years’
actuals10%
reduction
on
previous
years’
actualsGovernance Contract management 100% visibility on SAP 100% visibility on SAP 100%
visibility
on
SAPLicense agreement Fulfilment
of
requirementsFulfilment
of
requirementsFulfilment
of
requirementsAudit issues 70% completion 75% completion 80% completion
Transformation Employment equity
Gender
Black female
Race
Disability
42%
29%
79%
4%
42%
29%
79%
4%
42%
29%
79%
4%BBBEE 60% 63% 65%
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Corporate Social InvestmentInitiatives
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Vryburg soup
kitchenIkageng Old Age
Food parcel donationsLesedi Day Care
Stationary donations &
volunteerism
EmalahleniBread and coffee for
pension days
Rea Kgona HouseClean & cook for children
KZN wheelchair
donationsTree planting at
Olievenhoutbos PrimaryRustenburg creche
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Revenue Focus AreasPer Business Unit
$
POST BOXES AND DIRECT MAIL GROWTH
GOVERNMENT & CORPORATE BUSINESS
PRODUCT GROWTH AND CUSTOMER GROWTH
TRAFFIC FINES & ONLINE PAYMENT, HYBRID MAIL, TRUST
CENTRE
MOTOR VEHICLE LICENCES, POST FINANCIAL SERVICES
RESTRUCTURING OF PROPERTIES UNIT67
Top 10 RisksGroup risks
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RISK MITIGATIONS
Information & Technology
Risks
The development of an integrated IT strategy aligned to IT governance and
business requirements
Changing Customer Needs Implementation of customer centricity programmes and systems.
Relationship with organised
labour
Review the structures and processes of engagement and continuously
build the relationship
Impact of crime Continued implementation of crime prevention, security and detection
strategies.
Reduction in mail volumes Continued implementation of the diversification strategy and programmes.
Reputational risk The deployment of strategies to address the public relations and position
the desired image for SAPO
Business Continuity
Management
Development of a National Operational BCM Strategy to additionally
enhance management awareness
Industry deregulation Analysis of impact for possible of deregulation.
Information Security Implementation of an Information Security Strategy and Approved Policies.
Change Management Risk Implementation of change management programmes 68
Implementation of Group Holding Structure
Implementation of Business and Operating Model
Implementation of Customer Centricity
Implementation of Multi channel Strategy
Addressing People Issues ‐
Change Management
Information Technology Enablement
ConclusionCritical Success Factors
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69
Budget Overview
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