STRATEGIC DIRECTION
STRATEGIC DIRECTION
LM200206041 - CSM
TRANSNET STRATEGY AND OBJECTIVES
VISIONTransnet is a transformed holding
company that enables its Businesses to be world class,
lead their competitors, facilitate competitive trade and positively
touch the lives of all South Africans
MISSIONA holding company with interests in various transport, logistics and
other related businesses, that focuses on value chain
management of goods, people and information
VALUES
• Respect the individual
• Manage operations in a manner that ensures the safety of all
• Support economic development and activity
• Encapsulate Business probity with a strong focus on ethical conduct
• Enhance the value of frugality
• Be customer obsessed
• Support innovativeness
VALUES
• Respect the individual
• Manage operations in a manner that ensures the safety of all
• Support economic development and activity
• Encapsulate Business probity with a strong focus on ethical conduct
• Enhance the value of frugality
• Be customer obsessed
• Support innovativeness
LM200206042 - CSM
TRANSNET STRATEGY AND OBJECTIVES
BUSINESS FOCUS
• Market leadership in logistics solution provision
• Leveraging the property portfolio for maximum return
• Substantial market share in information technology and telecommunications provision
BUSINESS FOCUS
• Market leadership in logistics solution provision
• Leveraging the property portfolio for maximum return
• Substantial market share in information technology and telecommunications provision
STRATEGIC INTENT
• Manage and develop profitable, self sustaining businesses in a select range of portfolios
STRATEGIC INTENT
• Manage and develop profitable, self sustaining businesses in a select range of portfolios
STRATEGIC OBJECTIVES
• Increase financial value
• Ensure a high degree of safety standards
• Provide the Shareholder with appropriate dividends
• Develop and maintain an advanced business competence
• Enhance human capital development
STRATEGIC OBJECTIVES
• Increase financial value
• Ensure a high degree of safety standards
• Provide the Shareholder with appropriate dividends
• Develop and maintain an advanced business competence
• Enhance human capital development
• Financial
• Learning and Growth
• Customer
• Internal
• Financial
• Learning and Growth
• Customer
• Internal
BUSINESS ACTIONS AND PERFORMANCE TARGETS (BSC)
LM200206043 - CSM
TRANSNET STRATEGY AND OBJECTIVES
STRATEGIC ACTIONS
• Prioritise funding capacity
• Gain Shareholder approval on business portfolios
• Formulate line of communication between Shareholder and company
• Gain sound capital to structure the business
• Continues transformation of businesses
STRATEGIC ACTIONS
• Prioritise funding capacity
• Gain Shareholder approval on business portfolios
• Formulate line of communication between Shareholder and company
• Gain sound capital to structure the business
• Continues transformation of businesses
CRITICAL SUCCESS FACTORS
Identify:
• Business portfolios that Transnet want to participate in
• Capital requirements and prioritisation
• Funding capacity and gaps
• Capacity gaps in business processes
• Potential investment partners
• Retention of restructuring proceeds
CRITICAL SUCCESS FACTORS
Identify:
• Business portfolios that Transnet want to participate in
• Capital requirements and prioritisation
• Funding capacity and gaps
• Capacity gaps in business processes
• Potential investment partners
• Retention of restructuring proceeds
LM200206044 - CSM
TRANSNET STRATEGY AND OBJECTIVES
Shareholder ExpectationsShareholder Expectations
• Good Corporate Governance
• Restructuring support
• Infrastructure development
• Enhance Shareholder value
• Continues transformation
• Black Economic Empowerment
• Employment Equity
• Social and Economic development
• Good Corporate Governance
• Restructuring support
• Infrastructure development
• Enhance Shareholder value
• Continues transformation
• Black Economic Empowerment
• Employment Equity
• Social and Economic development
LM200206045 - CSM
TRANSNET OBJECTIVES, ACTIONS AND PERFORMANCE MEASUREMENTS (2002-2003)
STRATEGIC AND BUSINESS OBJECTIVES
BUSINESS ACTIONS PERFORMANCE MEASUREMENT: BALANCED
SCORECARD
Increase financial value of Transnet.
Provide the Shareholder with appropriate dividends.
Financial restructuring
Achieve positive Transnet value
Transform property portfolio
Repositioning of Businesses to become financially sound ringfenced entities.
Improve and strengthen Transnet’s balance sheet through debt restructuring initiatives.
Determine the financial requirements of the Business Units and the ability to fund those requirements.
Return on investment in Divisions / Subsidiaries > weighted average cost of capital.
Increased nett operating profit after tax.
Optimisation of the asset base, and protecting the physical, technological and intellectual assets of the group.
Focusing on cash management and to be self-financed.
Unlock value in existing property portfolio.
Identify Taxation planning opportunities.
Improve net operating profit compared to previous year.
Improve cash generated from operations.
Improve cash flow return on investment (CFROI) and to improve Transnet Value added.
Fund activities without deterioration in the budgeted gearing of the company.
Optimise capital investment. Reduce the cost of pure risk
to optimum benchmarked levels.
Property asset verification. Internal lease income from
property portfolio. External lease income from
property portfolio. Improve cash before
investments.
FINANCIAL OBJECTIVES
LM200206046 - CSM
TRANSNET OBJECTIVES, ACTIONS AND PERFORMANCE MEASUREMENTS (2002-2003)
STRATEGIC AND BUSINESS OBJECTIVES
BUSINESS ACTIONS PERFORMANCE MEASUREMENT: BALANCED
SCORECARD
Develop and maintain an advanced business competence.
Ensure a dynamic understanding of the business environment and drivers.
Increase customer confidence.
Grow and retain customer base.
Improve service delivery in terms of cost, equity and access.
Build trust relationships with customers, by being customer obsessed.
Restructure and transform Transnet effectively in order to efficiently and competitively meet the demands of domestic and international customers.
Ensure market and public acceptance.
Develop and implement Customer Image Index.
Develop and implement a Customer Satisfaction Index.
See Business Unit actions and performance targets for future details.
Public fatalities. ESAP rating. NOSA rating Safety Index. Image Index Customer satisfaction Index Disabling incidents Frequency
rate. Sustainability Market share
CUSTOMER OBJECTIVES
LM200206047 - CSM
TRANSNET OBJECTIVES, ACTIONS AND PERFORMANCE MEASUREMENTS (2002-2003)
STRATEGIC AND BUSINESS OBJECTIVES
BUSINESS ACTIONS PERFORMANCE MEASUREMENT:
BALANCED SCORECARD
Ensure a high degree of safety standards
Enhance and establish new structures and systems for the Holding Company.
Enhance information technology environment, which is a business enabler.
Develop and implement resilient, sustainable and effective business processes.
Enhance strategic decision-making
Improve the efficiency and effectiveness of the Business Units.
Entrench inter-Divisional market related support to benefit the Business Units and Transnet.
Reconfigure current management structure.
Configure structures of remaining services.
Ensure network availability/access to information.
Develop and implement on-line real-time information systems.
BEE spend Employee fatalities Improve Corporate
Governance Improve e-logistics and
e-commerce capabilities.
INTERNAL OBJECTIVES
LM200206048 - CSM
TRANSNET OBJECTIVES, ACTIONS AND PERFORMANCE MEASUREMENTS (2002-2003)STRATEGIC AND BUSINESS OBJECTIVES
BUSINESS ACTIONS PERFORMANCE MEASUREMENT:
BALANCED SCORECARD
Enhance human capital development through an effective training programme and business leadership.
Enhance appropriate competencies.
Develop compliance
Enhance a culture of excellence
Ensure leadership capacity for the top two levels of management (training and succession planning).
Review and develop human resources policies.
Develop logistics competency at Business Unit level.
Rationalise or develop new skills within the labour force and ensure their deployment throughout the company.
Continue to use the Balanced Scorecard as an effective performance management system from Board of Director’s level downwards.
Performance management implemented for all levels.
Training spend as % of operating cost. (7 categories)
Employment equity Containment and
management of HIV/AIDS Staff Turnover
LEARNING & GROWTH OBJECTIVES
LM200206049 - CSM
TRANSNET
Key Issues
Business Portfolio Management of Strategic Investments
Improved control + monitoring
Enable Business Units
Transnet Strategic Direction
Focus from Shareholder
Restructuring (NFA)
Transformation
M.U.PTurn Strategy
Incorporated under Companies Act
BOD appointed
Department of Government
Leadership requirements
Building portfolio management skills
Building independence and capacity
Lead business transformation and performance
Develop Business thinking
Follow prescribed pattern
Highly centralised functional structure
Group Financial control
Group Strategic control
Group Managerial control
Group Operational control
Decentra-lised profit centre divisions
Business Focus
Establishment of Divisional Boards
Corporatisation
Commercialisation
Development of infrastructure
Executive Directors
END STATE2007
Holding company
1996 New ExecutiveManagement
1990Transnet Ltd
related businesses
1993Independent Businesses
Units
1997Shared vision
1910SAR&H single business
TRANSNET MIGRATION PATH
1981South African
Transport Services (SATS)
1989 Legal
Succession Act
1991 M.U.P
1988 Deregulation
1987 230 000
employees
1910 52 595
employees
1998 Moving
South Africa
2001 PFMA
Shareholder compact
2001 86100
employees
1996 National
Transport Policy
1996 110 000
employees
1991 160 000
employees
LM2002060410 - CSM
TRANSNET
SUBSIDIARIES
EMPLOYEE AND SOCIAL ENVIRONMENT
Transmed Fund
Transnet Foundation
Trust
Pension Fund
Human Resources
Transnet Housing
DIVISIONS
Arivia.kom (Pty) Ltd
32%
Protekon (Pty) Ltd 100%
S.A Airways (Pty) Ltd
95%
Air Chefs (Pty) Ltd
51%
V&A Waterfront (Pty) Ltd
100%
Viamax (Pty) Ltd
100%
Transure Ltd 100%
Marine Data Systems (Pty) Ltd 80%
Fleetcall (Pty) Ltd
50%
B2B Africa Holdings (Pty) Ltd 100%
Transwerk Perway (Pty) Ltd 35%
Transwerk Foundries (Pty) Ltd 100%
Southern African Airline Holdings (Pty) Ltd 100%
Autopax (Pty) Ltd
100%
Apron Services (Pty) Ltd
100%
LM2002060411 - CSM
TRANSNET GROUP BEE SPEND
1079
2237
3542 3390
0
500
10001500
2000
2500
30003500
4000
ActualSpend
1999/2000
ActualSpend2000/01
ActualSpend2001/02
Budget2002/03
Rm
LM2002060412 - CSM
TRANSNET FOUNDATIONCSI SPEND
14.99
39.37
51.5258.65
0
10
20
30
40
50
60
ActualSpend
1999/2000
ActualSpend2000/01
ActualSpend2001/02
Budget2002/03
Rm
LM2002060413 - CSM
TRANSNET FOUNDATIONCSI SPEND PER PORTFOLIO (MARCH 2002)
1.1m
7.1m
3m
10.8m
10.1m
5.8m
13.4mEducation
Sports School
Phelophepa
Sport
Underutilised Assets
Arts & Culture
Special Projects
LM2002060414 - CSM
Black Managers – Middle Management (109-610)
3336
41 44
05
1015
202530
354045
1999/2000 2000/2001 2001/2002 Target2002/2003
%
TRANSNET GROUPEMPLOYEMENT EQUITY
LM2002060415 - CSM
Female Managers – Middle Management (109-610)
1719
2225
0
5
10
15
20
25
1999/2000 2000/2001 2001/2002 Target2002/2003
%
TRANSNET GROUPEMPLOYEMENT EQUITY
LM2002060416 - CSM
Black Managers - Senior Management (104-106)
36
4451
55
0
10
20
30
40
50
60
1999/2000 2000/2001 2001/2002 Target2002/2003
%
TRANSNET GROUPEMPLOYEMENT EQUITY
LM2002060417 - CSM
Female Managers - Senior Management (104-106)
17
23 23
30
0
5
10
15
20
25
30
1999/2000 2000/2001 2001/2002 Target2002/2003
%
TRANSNET GROUPEMPLOYEMENT EQUITY
LM2002060418 - CSM
Black Managers – Executive Management (102-103)
49
61 65 70
0
10
20
30
40
50
60
70
1999/2000 2000/2001 2001/2002 Target2002/2003
%
TRANSNET GROUPEMPLOYEMENT EQUITY
LM2002060419 - CSM
Female Managers – Executive Management (102-103)
15
19
1618
02468
101214161820
1999/2000 2000/2001 2001/2002 Target2002/2003
%
TRANSNET GROUPEMPLOYEMENT EQUITY
LM2002060420 - CSM
18.2
28.3
38.3 37.5
0
5
10
15
20
25
30
35
40
1999/2000 2000/2001 2001/2002 Budget2002/2003
Rm
TRANSNET GROUPTRAINING SPEND
LM2002060421 - CSM
Employees per Business Unit – April 2002
34151
56623847
84577111
17634938
0
5000
10000
15000
20000
25000
30000
35000
Spoornet PortAuthority
SAA Transwerk
TRANSNET GROUP
LM2002060422 - CSM