Presented by: Mothunye Mothiba Chief Executive Officer WHO IS PRODUCTIVITY SA? PRODUCTIVITY SOUTH AFRICA PRESENTATION ON THE STRATEGIC PLAN AND APP 2017/2018 TO THE PORTFOLIO COMMITTEE ON LABOUR 04 May 2017 Presented by: Mothunye Mothiba Chief Executive Officer

PRESENTATION OUTLINE Mandate of Productivity SA Functions of Productivity SA Vision and Mission Productivity SA Value Proposition Performance on APP, 2016/2017: Preliminary Annual Report MTSF Report 2014 - 2016 Key Strategic Objectives Achievements - Highlights Challenges/Reasons for deviation Remedial Actions Performance per Programme - 2016/2017 Financial Expenditure Report – 2016/2017 Annual Performance Plan – 2017/2018 Budget 2017/2018

THE MANDATE OF PRODUCTIVITY SA Productivity SA is established in terms of section 31 of the Employment Services Act, No. 4 of 2014 as a juristic person. It is an Entity of the DOL, with the mandate to promote employment growth and productivity, thus contribute to South Africa’s socio-economic development and economic efficiency. Governed by a Tripartite Board appointed in terms of section 33 of the Act, consisting of 7 Members: Chairperson Six members 4 drawn from NEDLAC (2 representing Organised Labour and 2 Organised Business), and 2 members representing the Government.

THE FUNCTIONS OF PRODUCTIVITY SA Section 32 of the Act read together with s2 (1) (e) and (f), and s7 enjoins Productivity SA to amongst others, develop relevant productivity competencies and competitiveness in workplaces, with a focus on the following core functions: To promote employment and income growth, and workplace productivity; To improve the employment and re-employment prospects of employees facing retrenchments and those retrenched; To promote social dialogue and a culture of productivity and competitiveness in the workplace and all spheres of the nation’s economic and community life; and (iv) To provide productivity improvement and competitiveness measures; (v) Research on productivity and competitiveness related matters, and collection and supply of information.

To lead and inspire a productive and competitive South Africa. Vision To lead and inspire a productive and competitive South Africa.

VISION & MISSION Mission “To improve productivity by diagnosing, advising, implementing, monitoring and evaluating solutions aimed at improving South Africa’s sustainable growth, development and employment through increased competitiveness” 6

PRODUCTIVITY SA VALUE PROPOSITION Service Offering: Productivity and Competitiveness Improvement Solutions to accelerate wealth and decent employment creation. HOW : By enhancing the productive capacity and operational efficiency of enterprises throughout the business lifecycle to accelerate wealth and decent employment creation .

ANNUAL PERFORMANCE PLAN (APP) 2017/2018

STRATEGIC OUTCOME ORIENTED GOALS Productivity SA embraces the National Development Plan, The Medium Term Strategic Framework 2014–2019 and the Industrial Policy Action Plan – as reflected in the following Key Outcomes: Outcome 4: Decent employment through inclusive growth; Outcome 5: A skilled and capable workforce to support an inclusive growth path; Outcome 6: An efficient, competitive and responsive economic infrastructure; Outcome 11: Create a better South Africa, a better Africa and a better world Outcome 12: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship Section 32 of the Employment Services Act read together with s2(1)(e) and (f), and s7 enjoins Productivity SA to amongst others, develop relevant Productivity and Competitiveness Competencies in workplaces in response to the National Developmental Agenda

STRATEGIC OBJECTIVES Strategic Objective 1: Strengthen the institutional capacity of Productivity SA to deliver on its mandate and be financially sustainable (Outcome 5 &12) Strategic objective 2: Provide support to Government Programmes aimed at sustainable employment and income growth (Outcome 4 & 5) Strategic objective 3: Provide support to companies facing economic distress to retain jobs (Outcome 4 & 5) Strategic objective 4: Contribute to employment and income growth through research, information generation and dissemination (Outcome 4,6,11 & 12) Strategic objective 5: Promote social dialogue and a culture of productivity and competitiveness in the workplace and community life (Outcome 4 &12)

STRATEGIC PROGRAMS Programme 1: Corporate Services Programme 2: Human Resource Management Programme 3: Marketing and Communication Programme 4: Productivity Organisational Solutions Programme 5: Value Chain Competitiveness Programme 6: Turnaround Solutions

STRUCTURE AND ESTABLISHMENT systems, productivity and economic sectors as well as through the collection and supply of PROGRAMME CURRENT HEADCOUNT POSITIONS VACANT TOTAL HEADCOUNT PROGRAMMES FUNDED IN TERMS OF SECTION 40A OF THE EMPLOYMENT SERVICES ACT: OFFICE OF THE CEO 3 1 4 CORPORATE SERVICES 13 17 HUMAN RESOURCES 5 MARKETING 8 PRODUCTIVITY ORGANISATIONAL SOLUTIONS 11 12 VALUE CHAIN COMPETITIVENESS (RESEARCH & KM) CAPE TOWN 7 KWAZULU NATAL 6 TOTAL: 63 10 73 PROGRAMMES FUNDED IN TERMS OF SECTION 40B OF THE EMPLOYMENT SERVICES ACT: VALUE CHAIN COMPETITIVENESS (WORKPLACE CHALLENGE) 20 2 22 TURNAROUND SOLUTIONS 30 34 GRAND TOTAL 93 14 107

PER STRATEGIC OBJECTIVE APP 2017/2018 TARGETS PER STRATEGIC OBJECTIVE

STRATEGIC OBJECTIVE 1: STRENGTHEN THE INSTITUTIONAL CAPACITY OF PRODUCTIVITY SA TO DELIVER ON ITS MANDATE AND BE FINANCIALLY SUSTAINABLE   PROGRAMME PERFORMANCE INDICATOR TARGET Corporate Services Percentage increase in services income to cover operational costs and create reserves 15% Percentage improvement in achievement of APP targets 75% Percentage compliance with PFMA and other relevant legislative (unqualified audit) 100% compliance with SCM prescripts BBBEEE level achieved Level 7 Business model Innovation – Report on Organisational Review and Design to reposition Productivity SA as a centre of excellence developed and recommendations implemented 1 Human Resources Number of climate surveys conducted and team charters implemented 1 Climate Survey Percentage achievement on the implementation of organisational training plan 80% Completion of Annual Training Plan Number of review reports on the implementation of the Performance Management System 2 Performance Management Reports

STRATEGIC OBJECTIVE 1: STRENGTHEN THE INSTITUTIONAL CAPACITY OF PRODUCTIVITY SA TO DELIVER ON ITS MANDATE AND BE FINANCIALLY SUSTAINABLE   PROGRAMME PERFORMANCE INDICATOR TARGET Human Resources Turnaround time to fill positions Within 4 months of vacancy being advertised Number of Human Resources policies designed or reviewed 4 Policies Value Chain Competitiveness Number of Productivity consultants and practitioners accredited as Kaizen practitioners Accredited programme in place

STRATEGIC OBJECTIVE 2: PROVIDE SUPPORT TO PROGRAMMES AIMED AT SUSTAINABLE EMPLOYMENT AND INCOME GROWTH   PROGRAMME PERFORMANCE INDICATOR TARGET Value Chain Competitiveness Number of companies in industry sectors including SEZs and industrial parks supported productivity and competitiveness enhancement programmes 200 Number of Black industrialists supported through Productivity and competitiveness enhancement programmes 9 Productivity Organisational Solutions Number of Small enterprises and cooperatives on ESD programmes supported through Productivity and operational efficiency enhancement programmes 5500 Value Chain Competitiveness/ Turnaround Solutions Implement the Integrated Monitoring and Evaluation System implemented in participating companies Develop and pilot an integrated tool/ M&E System that will be implemented in participating enterprises/industries

STRATEGIC OBJECTIVE 3: PROVIDE SUPPORT TO COMPANIES FACING ECONOMIC DISTRESS TO RETAIN JOBS PROGRAMME PERFORMANCE INDICATOR TARGET Turnaround Solutions Number of jobs saved in companies facing economic distress 7500 Number of companies facing economic distress supported through Turn-around Strategies to retain jobs (establish FF) 150 Number of companies (retrenched workers/vulnerable workers) supported through microenterprise development and self-employment support programmes

STRATEGIC OBJECTIVE 4: CONTRIBUTE TO EMPLOYMENT AND INCOME GROWTH THROUGH RESEARCH, INFORMATION GENERATION AND DISSEMINATION PROGRAMME PERFORMANCE INDICATOR TARGET Value Chain Competitiveness Number of research reports on priority sectors produced and disseminated 4 Reports Number of statistical reports on productivity and competitiveness published 2 reports Productivity Organisational Solutions Number of productivity modules NQF accredited (tools & techniques) 4 Accredited modules Web-based solutions developed and rolled out Develop an online resource centre and pilot

STRATEGIC OBJECTIVE 5: PROMOTE SOCIAL DIALOGUE AND A CULTURE OF PRODUCTIVITY AND COMPETITIVENESS IN THE WORKPLACE AND COMMUNITY LIFE PROGRAMME PERFORMANCE INDICATOR TARGET Marketing and Communications Communication and marketing strategy developed and implemented Marketing and communication strategy approved Number of stakeholders and strategic partners established and maintained 9 Number of productivity and competitiveness seminars held 4 Number of educational and awareness campaigns conducted Number of productivity awards held 10 Productivity Organisational Solutions Number of productivity champions, ETD, SDFS trained across the business, labour and government spectrum 200 Value Chain Competitiveness Number of workplace forums /capacity building workshop 30

BUDGET 2017/2018

BUDGET 2017/18 -2019/20 Audited Outcome Preliminary outcome   Audited Outcome Preliminary outcome Revised estimate Medium-term estimate R thousand 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Administration 30 177 43 661 42 170 47 736 48 017 50 446 53 498 Productivity organisational solution 8 911 8 594 8 980 9 489 10 068 10 630 11 384 Value chain competitiveness 14 038 19 936 22 710 12 655 14 391 15 286 15 980 Workplace challenge 15 514 11 664 10 105 23 975 26 221 27 696 29 534 Turnaround solutions 16 048 19 438 13 969 97 807 78 720 83 364 88 199 Transnet – 747 1 325 Total expense 84 688 104 040 99 259 191 662 177 417 187 421 198 595

BUDGET INCOME

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