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• Productivity SA’s Approach • Productivity Organisational Solutions • Turnaround Solutions Objectives • 2012/13 Progress Report • 2013/14 Plans • Success Stories • Opportunities for 2013/14

PRESENTATION OUTLINE

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Measure of how well resources are used to produce outputs

Productivity

The ability of a nation or its enterprises to gain global market share for inputs, products and services

Competitiveness

Introduction

Productivity and poverty alleviation

• High productivity packaged with sound distributional and development policies is the best available means for poverty alleviation

Productivity and promotion of employment

• The more productive an enterprise becomes, the more income it can generate and save for new investments and the creation of new jobs

Productivity and labour standards

• Have more potential in promoting decent working conditions and quality of life than legislative mechanisms alone.

Productivity and sustainable development

• Sustainability means the utilisation of a unit of raw materials and energy in an economy in such a way that the consequent output with minimum waste materials

Benefits of Productivity

THE ROLE OF NPOs

MAIN FOCAL AREAS OF

NPOs

To set productivity improvement agenda for the country

To promote productivity improvement and productivity culture

To assist enterprises in productivity improvement through building their own capacities

To acquire and disseminate productivity related information

MANDATE

Tasked with the responsibility of improving productivity in South Africa

To serve the interest of Government, Business

and Labour

STRUCTURE AND GOVERNANCE

STRUCTURE AND GOVERNANCE

STRUCTURE Schedule 3A organisation – reporting to Minister of Labour Tripartite organization – board drawn from govt. bus, labour ORGANIZATIONAL FOOTPRINT Head Office (Midrand 2 regional offices (KZN, WC)

Productivity SA is an organisation for South African businesses, industry and general public, that advises, implements programs, monitors solutions and evaluates progress in order to promote a more competitive South Africa.

WHO IS PRODUCTIVITY SA

Vision

To lead and inspire a productive and competitive South Africa.

Improving the productivity of South Africa by advising, implementing programs, monitoring

solutions and evaluating progress.

Mission

STRATEGIC FOCUS AREAS

Enterprise productivity and competitiveness

Micro-small enterprises productivity capabilities

Public sector efficiency and effectiveness

Knowledge Management and Research

Productivity awareness

Productivity SA’s Service Offerings

Stable

Break Even

“ICU” – Turnaround for Business Rescue

Phase 2 – Social Plan Retrenchments

Productivity Organisational Solutions is an Assessment

and Productivity Training Programme that gives

individuals the right attitude, knowledge and skill capacity

to become a more competent asset to their organisation.

It is also a short term intervention program for

productivity projects.

What is POS

STAGES OF INTERVENTIONS

Stable

“ICU”

Emerging

(Workplace Challenge) (Awards)

Decline

(Turnaround Solutions)

• SMME/Co-ops

• Managers

• Workers

• Private Sector

• Government Improvement Projects.

• Educators

• Facilitators

• SDF’s

• ETDP’s

• SETA’s

• Quantitative Analysis

• Snapshot Analysis

• Special Projects

Assessment Centre

(Organisational Assessment)

Education and Training

Small Enterprise

Development

Productivity Improvement

Projects

PROGRAMME STRATEGIC FOCAL AREAS

PMP

ACTIVE PROJECTS – LINKED TO TARGETS

Productivity SA

POS

ILO/Sanparks

Purpose: Income/SMME

SANACO

Purpose:

Income DoL

SEDA INCUBATION

External income & target achievement

IDZ Incubators

TSHWANE LED/Ekurhuleni

Metro

External income & target achievement

SASSETA

EW-SETA

Purpose: Income DoL

SABPP

Purpose: Quality & accreditation

PMP

SERVICE OFFERING

Business Start Up Workshop

Business Improvement Workshop

Productivity Management Programme

Productivity Improvement Workshops - various

Special Projects – Alignment/Customise

Productivity School Awareness Programme

PMP

IMPACT/ACCOMPLISHED

CATEGORY TARGET ACCOMPLISHED 2012-2013

YEAR TO DATE 2013-2014

SMME’s 4 000 3 884 2 289

2206

Workers 650 612 632

Managers 130 152 4

Educators 800 647 95

SDF’s 350 212 31

Government Projects

1 2 1

• Accreditation umbrella – Service Seta to SABPP

• Alignment of unit standards take time

• Assessment takes times

• Moderation takes time

• Re-registration of assessors

• New “budget” item

• Adjustment of offering

• Financial constraints

• Resources that design can not train

• Resources that assess can not train

• Maximum utility

• Cost of travel

• Personal challenges

Team members travel all over South Africa

CHALLENGES FACED

Entrepreneurial Support

Business Start- up Training

Business Improvement Workshop

Coaching and After-Care Programme

Incubation Projects

SMME PROVINCIAL FOOTPRINT 2012-2013

SMME PROVINCIAL FOOTPRINT 2013-2014 YEAR TO DATE

PMP

FUTURE EXPANSION/SUSTAINABILITY OF UNIT

Graduate Development Programme

Customised Training

-Practical alignment

Consulting Projects

*Scoping

*Design

*Coaching

*Mentoring

Productivity SA’s Service Offerings

Stable

Break Even

“ICU” – Turnaround for Business Rescue

Phase 2 – Social Plan Retrenchments

Turnaround Solutions Mrs Mudzunga Mashamba

Background of the Programme

An initiative of the Jobs Summit (1998)

• Funded by Department of Labour;

• Managed by Productivity SA;

• Aim to save jobs.

THE SOCIAL PLAN PHASES

Phase 1: Turnaround Solutions

Phase 2: Managing

retrenchments

Phase 3: Job

creation

Turnaround Solutions is an intervention which delivers turnaround and contingency plans for companies that are faced with the risk of financial ruin, extensive job loss and sustainability challenges.

What is Turnaround Solutions?

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• Turnaround Solutions ensures sustainable improvements to companies in distress through productivity interventions

• It is cheaper to SAVE a job than to CREATE a sustainable job

Why focus on Turning Around companies?

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Turnaround Solutions Objectives:

• To save and/or retain jobs

• To improve productivity of enterprises through improving

operational efficiencies

• To increase the enterprises ability to create more jobs

Programme Outcomes

• Improves Productivity

• Improves Profitability

• Improves company performance through better marketing, financial strategies, management, HR and Operations

• Effective communication between employees and management

• Value Chain competitiveness

• Early Warning systems to detect signs of decline

TAS Highlights

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• Celebrated 15 years of business since 1998 Job Summit;

• TAS has saved over 100 000 jobs since inception;

• Productivity improvements sustains jobs saved.

TAS KEY PERFORMANCE AREAS

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TAS KPA’S KEY INDICATOR FINANCING MODEL

Contribute to preventing Job losses

Future Forums established to facilitate buy-in and common understanding

UIF Funded

• Preliminary (financial) Assessments • Future Forums Trained • Productivity Champions identified

and trained • Establish TAS Early Warning

Systems

UIF Funded

Customized Turnaround strategies developed to prevent job losses

Developed Turnaround strategies for clients signed off by the future forum

UIF Funded

Implement those TA strategies until completion

UIF Funded

Impact and Quality Assessment: Document lessons learnt and impact of TA strategies to the initial challenges

UIF Funded

Monitoring and Evaluation of Projects: Against preliminary (financial) assessment and distress indicators

UIF Funded

Funders Expectations – UIF 3 Year Business Plan

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Turnaround 3 year Business Plan

201213-2014/15 2012/13 2013/14 2014/15

PROGRAMME OBJECTIVES AND ACTIVITIES 3 years target

Budget Targets Budget Targets Budget Targets Budget

Annual jobs saved 32 800 10 400 12 000 10 400

Contributed to prevention of job losses(Objective 1) R 17 268 500 R 5 479 000 R 6 310 500 R 5 479 000

Nurturing of new turnaround clients 410 R 5 084 000 130 R 1 612 000 150 R 1 860 000 130 R 1 612 000

Financial assessment turnaround clients 410 R 2 255 000 130 R 715 000 150 R 825 000 130 R 715 000

Establish Future forums for turnaround 410 R 5 084 000 130 R 1 612 000 150 R 1 860 000 130 R 1 612 000

1 day capacity building of future forums turnaround- turnaround clients 410 R 2 255 000 130 R 715 000 150 R 825 000 130 R 715 000

3 day capacity building of Productivity Champions (session) 157 R 2 590 500 50 R 825 000 57 R 940 500 50 R 825 000

Turnaround interventions developed to prevent job losses (Objective 2) R 127 292 240 R 31 678 340 R 45 972 000 R 49 641 900

Develop turnaround strategies companies 325 R 10 075 000 85 R 2 635 000 110 R 3 410 000 130 R 4 030 000

Implementation of turnaround strategies in companies 325 R 78 585 000 85 R 20 553 000 110 R 26 598 000 130 R 31 434 000

Conduct 50 impact assessments for quality monitoring for in progress projects

164 R 902 000 50 R 275 000 64 R 352 000 50 R 275 000

Post implementation monitoring and evaluation reports 164 R 4 067 200 50 R 1 240 000 64 R 1 587 200 50 R 1 240 000

Close-out reports at the end of the turnaround implementation 325 R 2 015 000 85 R 527 000 110 R 682 000 130 R 806 000

Finalisation of in-progress ‘turnarounds’ R 31 648 040 R 6 448 340 R 13 342 800 R 11 856 900

Marketing and Promotions (Objective 3) R 9 489 260 R 2 592 660 R 3 517 500 R 3 379 100

National Awareness (website, case studies, newsletters, magazine adverts, promotional material, stakeholder site visits & workshops)

R 2 192 660 R 2 917 500 R 2 579 100

Annual Reports, Collate & Package DVDs R 400 000 R 600 000 R 800 000

Grand Total R 154 050 000 R 39 750 000 R 55 800 000 R 58 500 000

Our Impact 2012/13

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Key result area

Measure/Indicator

Results

Key result area

Measure/Indicator

Results

Contribute to prevent

job losses

• Nurture 50 new Turnaround clients

• Establish 50 Future Forums

• Develop 50 Financial assessments

• 36 clients nurtured

• 26 Future Forums established

• 26 Financial assessments

completed

Turnaround

interventions developed

to prevent job losses

• Develop 50 Turnaround strategies

• Implementation 50

• Complete 50 Turnaround Strategies

(Close-out reports)

• Conduct 20 Impact Assessments

• Save 4000 jobs

• 9 Turnaround strategies developed

• 6 Implemented

• 0 Close-out reports

• 4 Impact Assessments completed

• Saved 3886 jobs

Capacity Building

• 50 Future Forum training

• 30 Productivity Champions training

• 30 Early Warning Systems established

• 22 Future Forums trained

• 7 Productivity Champions trained

• 6 Early Warning Systems

established

Impact – 2012/13 Geographical Spread

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Region Sum of No. of

Projects

Sum of No. of

jobs

EC 8 1501

FS 2 118

GP 7 679

KZN 4 685

LIM 4 209

MP 4 241

NC 2 89

WC 5 364

Grand

Total

36 3886

Impact – 2012/13 Sectors Impact

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Sector No. of

projects

No. of jobs

saved

Agriculture 8 521

Catering 2 129

Civil

Engineering

2 215

Cleaning

Services

1 29

Construction 3 205

Electrical 1 60

Forestry 1 95

Manufacturing 18 2632

36 3886

Some Challenges

UIF/Dol

Save Jobs

Funding certainty

Sustainable turnarounds

35%

contribution Funding

inconsistency

Timing of

interventions

Reporting

structures

Small numbers

vs jobs lost in

economy

Proactives

funding

discontinued

TAS Impact: Success Stories

• Sunningdale Dairy in the Eastern Cape – East London IDZ

partnered up with Productivity SA in ensuring 410 jobs were

secured by improving financial controls, operations, Marketing

etc;

• Continental China in the Western Cape – also proved to be

pleasant success – with 225 employees reaping the benefits

of increased quality, production and profitability;

• Ramalema Bricks in the Limpopo region employs 60

resources – they encountered production issues to which

Productivity SA resolved by equipping them to measure

productivity capacity, develop standards for material usage,

improve quality of bricks and reduce wastage.

Wealth

Jobs

Security

Service

Individual

South Africa

Tomorrows turnaround, starts today!

THANK YOU

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