2. PRESENTATION TO THE PORTFOLIO COMMITTE ON LABOUR
ANNUAL PERFORMANCE REPORTS FOR THE BUDGET REVIEW AND RECOMMENDATION
12 OCTOBER 2016

3. PRESENTATION OUTLINE Mandate of Productivity SA Vision and Mission
Productivity SA Offices
Functions of Productivity SA
Productivity SA Value Proposition
Organizational Structure
Service Delivery Outcomes
Priority Economic Sectors Targeted
Strategic Objectives Achievements
Key Challenges and Remedial Actions
Audited Programme Performance for the 2015/16 FY
Audited Financial Report for the 2015/16 FY
Programme Performance Information Report: April - September 2016
Financial Report April – Sept 2016
Priorities for the 2017/18 FY

4. 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.

5. WHO IS PRODUCTIVITY SA? VISION AND MISSION
Vision: To lead and inspire a productive and competitive South Africa.
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 OFFICEs
Delivery grouped as follows: Region 1 Gauteng - Physical presence Limpopo Northwest
Delivery grouped as follows: Region 2 Western Cape - Physical presence Northern Cape Free State Region 3 Kwa-Zulu Natal - Physical presence Eastern Cape Mpumalanga

7. FUNCTIONS OF PRODUCTIVITY SOUTH AFRICA
Section 32 of the Act read together with sections 2 (1) (e) and (g), section 7, and 12 (2) (b) and (c) enjoins Productivity SA to amongst others, improve the productive and competitive capacity of the economy through interventions that encourage social dialogue and collaboration between partners.
Our core services are aimed at:
(i) Promoting employment and income growth by developing productivity and competitiveness competencies;
(ii) Supporting initiatives aimed at improving the employment and re-employment prospects of employees facing retrenchments and preventing job losses, which include Turn- Around Strategies, Lay-offs, retraining or alternative employment opportunities;
(iii) Promoting dialogue and inculcating a culture of productivity and competitiveness in the workplace and all spheres of the nation’s economic and community life; and
(iv) Developing productivity improvement and competitiveness measures and research on socio-economic systems, productivity and economic sectors as well as collection and supply of information.
systems, productivity and economic sectors as well as through the collection and supply of

8. 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 .

9. CORE BUSINESS STAGES OF INTERVENTIONS
Break even
Point (BEP)
Stable companies Awards
“ICU”
Workplace Challenge
Decline
Turnaround Solutions
Emerging companies
Productivity
Organisational
Solutions

10. ORGANISATIONAL STRUCTURE
PROGRAMME
APPROVED ESTABLISHMENT
POSTS FILLED
NUMBER OF VACANCIES
VACANCY RATE PER PROGRAMME
Office of the CEO 4 0%
Programme 1:Turnaround Solutions 12 10 2
17%
Programme 2: Productivity Organisational Solutions
Programme 3: Value Chain Competitiveness (Research) 11 1 8%
Programme 3: Value Chain Competitiveness (Workplace Challenge 22 20 9%
Programme 4: Marketing & Communications 8
Programme 5: Human Resources 5
20%
Programme 6: Corporate Services 17 16 6%
Kwa-Zulu Natal Regional Office 7
Cape Town Regional Office
TOTAL
106 97 9
8.5%

11. SERVICE DELIVERY OUTCOMES
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 12: An efficient, effective and development-oriented public service
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

12. PRIORITY ECONOMIC SECTORS TARGETED
PRODUCTIVTY SA ECONOMIC PRIORITY SECTORS
PUBLIC SECTOR
MANUFACTURING
AGRO PROCESSING
MINING
State of the nation address talks about 5 Priorities – Education, Health, Fight against crime and corruption, land reforms and Creating decent work

13. STRATEGIC OBJECTIVES ACHIEVEMENTS
2015/16

14. SUPPORT INITIATIVES AIMED AT PREVENTING JOB LOSSES
STRATEGIC OBJECTIVE 1:
SUPPORT INITIATIVES AIMED AT PREVENTING JOB
LOSSES
43 companies facing economic distress supported through turnaround strategies
R17million was transferred to be utilised for the turnaround strategies in 2015/16 FY
6976 jobs saved through the turnaround interventions
39 future forums established with 374 employees trained
112 champions trained

15. STRATEGIC OBJECTIVE 2:
CAPACITATED ETD SERVICE PROVIDERS AND SMMES IN ORDER TO CONTRIBUTE TO SUSTAINABLE EMPLOYMENT CREATION
6 917 beneficiaries were capacitated in 2015/16 on productivity-related concepts:
642 Educators , 4837 Emerging entrepreneurs, 934 Workers , 299 Skills Development Facilitators (SDFs) and 205 Managers
1463 Cooperatives Members trained and capacitated, 1136 of whom are women, 327 males, 726 youth and 14 people with disabilities.

16. PRODUCTS AND SERVICES OF ASSISTED COMPANIES BECOME
STRATEGIC OBJECTIVE 3:
PRODUCTS AND SERVICES OF ASSISTED COMPANIES BECOME
WORLD-CLASS AND COMPETITIVE
610 companies are implementing the Workplace Challenge (WPC) Programme
184 new entrepreneurs joined the WPC
278 companies implementing WPC
332 enterprises in aftercare
jobs were retained through implementation of WPC Programme
158 New jobs were created

17. NATIONAL AWARENESS CAMPAIGN
STRATEGIC OBJECTIVE 5:
NATIONAL AWARENESS CAMPAIGN
51 Workshops and seminars conducted on productivity awareness
Productivity awards held in 7 provinces
28 companies in various categories of the awards went through as finalists for the National awards
The following companies were National winners for 2015/16:
Cooperative Sector Bakutudi Cooperative Limpopo province
Emerging Sector Tshedza Concrete Art Limpopo (WPC client)
Public Sector Transnet Port Terminals (PE) Eastern Cape
Corporate Sector K-Way Manufacturer (Pty) Ltd Western Cape
Gibb Africa Gauteng
H&M Rollers Kwa-Zulu Natal (WPC client)
19 strategic partnerships with stakeholders
Names
What transpired out of those partnerships

18. STRATEGIC OBJECTIVE 6: TALENT MANAGEMENT
17 Career paths maps generated for:
6 Senior Managers
4 Middle Managers
7 Junior Managers
Culture climate survey completed and 62 employees participated.
Employment Equity demographics within the organisation:
70% African
9% Coloured
10.5% Indian
10.5% White
Male – 44
Female – 58

19. OTHER STRATEGIC ACHIEVEMENTS
Attainment of a Level 3 BBBEE Contributor
International Relations
Secretariat of PAPA which serves as an organ of the African Union Commission in the implementation of the Productivity Agenda for Africa
Strategic partnership with the Asian Productivity Organisation and Japan Productivity Centre
The Board approved the new Business Model resulting in over R15 mil revenue generated through consulting services

20. CHALLENGES AND REMEDIAL ACTIONS

21. CHALLENGES FOR 2015/2016
The decline in economic activity and the increase in companies in distress, including number of affected workers places great strain on our resources to cope with the demand for support and services.
Productivity SA is underfunded and undercapitalised for effective delivery of its mandate to promote employment growth and productivity in South Africa.
Funding for Turn-Around Strategies (i.e. UIF funding) to support companies facing economic distress is not guaranteed for long-term and is insufficient to respond to the demand. The Memorandum of Agreement is only for 3 years.
Productivity SA is not appropriately profiled and limited awareness and culture of productivity and competitiveness

22. CCMA STATISTICS - JOBS SAVED VS JOBS LOST 2015/16
Due to s189A facilitations, the CCMA assisted in saving 35% (20,661) of jobs of those likely to be retrenched (58,450), with actual retrenchments recorded at 36,483 for the year 2015/16.
For 2015/16 Turnaround Solutions has assisted in saving 19% (6976) of those jobs actually lost (36483).
Turnaround Solutions impact was however insignificant given the level retrenchments which exists for this period.

23. CCMA STATISTICS – NO. OF COMPANIES SAVED
There has been a significant upsurge in s189A referrals, with the CCMA receiving 527 referrals in the 2015/16 financial year compared with 391 referrals in the 2014/15 financial year. This amounts to a 34.8% increase. Sixty six (66) s189A referrals were received in March 2016 alone, compared to 55 in February 2016, constituting a 20% increase.
SECTION 189A REFERRAL TREND NATIONALLY –Two Year Comparison
The chart below reflects activity in respect of large scale retrenchment facilitations referred:
For 2015/16 Turnaround Solutions assisted 8% (43) companies of the total referrals of 527 received for the year.

24. REMEDIAL ACTIONS FOR 2016/2017
The UIF has committed to provide additional funding (over R97million) and work together with Productivity SA to explore other sources of funding (PIC and IDC).
Working closely with the Department of Labour to review funding for Public Employment Services/ other sources of funding towards schemes to minimise the retrenchment of employees, including turn-around strategies, lay-offs, re-training of retrenched workers for alternative employment opportunities.
Research Agenda, with a focus on measuring and evaluating productivity improvement, and competitiveness in workplaces and the economy; maintain a data-base of productivity and competitiveness systems and to publicise same; and disseminate information;

25. AUDITED PERFORMANCE
2015/2016

26. PERFORMANCE PER STRATEGIC OBJECTIVE - 2015/16 FY
PROGRAMME 1:TURNAROUND SOLUTIONS
Strategic objective
Key Performance Indicators
Target
Remarks on deviation to targets
Support initiatives aimed at preventing job losses
Planned
Actual
Number of future forums established
150 39
With funding received in the last quarter (4th Dec 2015) of 2015/16 year the annual targets were proportionate to the (3) months left in the financial year and thus we couldn’t achieve the targets set in the Annual Performance Plan
Number of work-plans developed 43
Number of close out reports
100
Number of impact assessment 15
Productivity champions training 19
Number of companies with Productivity champion training done
*50
Number of jobs saved
7 500
6976

27. PERFORMANCE PER STRATEGIC OBJECTIVE - 2015/16 FY
PROGRAMME 2: PRODUCTIVITY ORGANISATIONAL SOLUTIONS
Strategic objective
Key Performance Indicators
Target
Remarks to deviation of targets
Planned
Actual
Capacitated ETD service providers and SMMEs in order to contribute to sustainable employment creation
Number of emerging Entrepreneurs trained
5500
4 837
Training postponed by the partners
Number of Educators trained
950
642
Limited access of educators for the year
Number of Workers trained
900
934
Number of Skills Development Facilitators
550
299
Low access of skills development facilitators for training through SETA’s
Number of Managers trained
160
205
Number of graduates engaged 5 2
Target reduced due intensity of the training require for graduates

28. PERFORMANCE PER STRATEGIC OBJECTIVE - 2015/16 FY
PROGRAMME 3:VALUE CHAIN COMPETITIVENESS (Research)
Strategic objective
Key Performance Indicators
Target
Remarks to deviation of targets
Planned
Actual
Undertake productivity related research
Annual productivity statistics report
1 Report
Report not published
Lack of capacity
Annual Competitiveness indicators position for IMD WCY
2015/16 report published
Annual study on public sector productivity and performance and service delivery
Report developed but not published
Awaiting sign off from DPSA and LDoE
Develop a report on the best way to manage performance, productivity and remuneration in the PES
Awaiting approval from the client, Public Employment Services
Reports conducted on identified sectors as commissioned
3 Report
Reports not published
Funding of the reports as well as delayed submission
Number of seminars conducted 9 8
Industry experts to be consulted with the remaining sectors so that the relevant seminars are conducted

29. PERFORMANCE PER STRATEGIC OBJECTIVE - 2015/16 FY
PROGRAMME 3: VALUE CHAIN COMPETITIVENESS: WORKPLACE CHALLENGE
Strategic objective
Key Performance Indicators
Target
Remarks on deviation to target
Planned
Actual
Products and services of assisted companies become world-class and competitive
Number of new entrepreneurs that joined WPC programme
201
184
The dti approved 170 entrepreneurs in its business plan
Number of capacity building workshops 30 31
Number of companies implementing WPC
200
278
Number of Facilitators and interns coached 15
15 Facilitators & 3 interns
Number of enterprises in after care
335
332
Number of quarterly newsletters 4

30. PERFORMANCE PER STRATEGIC OBJECTIVE - 2015/16 FY
PROGRAMME 3: VALUE CHAIN COMPETITIVENESS: WORKPLACE CHALLENGE
Strategic objective
Key Performance Indicators
Target
Remarks on deviation to target
Planned
Actual
Products and services of assisted companies become world-class and competitive
Research and development
Roll out and M&E reports of participating companies
M&E report on KZN companies
Number of success stories 9 11

31. PERFORMANCE PER STRATEGIC OBJECTIVE - 2015/16 FY
PROGRAMME 4:MARKETING AND COMMUNICATIONS
Strategic objective
Key Performance Indicators
Target
Remarks on deviation to targets
Planned
Actual
National Awareness Campaign
Number of media articles published
395
414
Number of productivity awards held 9 8
Budgetary constraint
Number of annual reports produced 1
Number of Productivity SA magazines produced 4 3
Not sufficient articles to produce a magazine
Number of electronic partnerships with stakeholders 19
Number of workshops and seminars conducted 12 51

32. PERFORMANCE PER STRATEGIC OBJECTIVE - 2015/16 FY
PROGRAMME 5: HUMAN RESOURCES
Strategic objective
Key Performance Indicators
Target
Remarks if not achieved
Talent Management
Planned
Actual
Generate career path maps
Career Path Maps
Not achieved
List of development areas of individuals
Development Paths
100%
IDP of Person: Identify development
Reviewed IDP’s
Some employees did not require training as they were furthering their studies.
Establishing goal setting process that facilitates total participation and alignment of goals
100% completion of performance contracting level 2 to 9
2 employees did not contract in this financial year
System process for assessing performance in a fair and equitable manner (scorecards)
100% completed performance reviews
4 employees did not conduct the reviews
Salary surveys to determine “market relatedness "of remuneration
Salary survey/benchmarking
Culture survey and interviews to check and changed conducted to improve Culture Shift
Annual survey
Project commitments and inability to connect regional team members

33. AUDITED FINANCIAL REPORT 2015/16

34. Employment Services Act – Finances of Productivity SA
Finances of Productivity SA - Section 40 (1)
Productivity SA financed from:
Money appropriated by parliament for this purpose;
Income earned from services rendered by it
Grants or donations made to it
Money received from any other source

35. INCOME STATEMENT: INCOME GENERATING PROGRAMMES
POS
VCC
TAS IN PRODSA
2015/16
2014/15
Variance
DoL Grant
7 740
7 330
410
7 285
6 899
386 -
Revenue
8 039
1 956
6 083
8 733
7 774
959
10 756
10 187
569
Total Income
15 779
9 286
6 493
16 018
14 673
1 345
Salaries
7 288
6 548
740
17 880
17 378
502
6 231
5 236
995
Travel and Subsistence
579
582
(3)
295
194
101
122
123
(1)
Fixed Cost - Office Rent
522
533
(11)
1 041
1 044
510
403
107
Good and Services
591
931
(340)
3 494
1 320
2 174
263
425
(162)
Total Expenses
8 980
8 594
22 710
19 936
2 774
7 126
6 187
939
Surplus/(Deficit)
6 799
692
6 107
(6 692)
(5 263)
(1 429)
3 630
4 000
(370)

36. INCOME STATEMENT: REGIONS
CAPE TOWN
DURBAN
2015/16
2014/15
Variance
Revenue
2 543
4 379
(1 836)
1 144
505
639
Total Income
Salaries
4 131
4 383
(252)
2 945
2 343
602
Travel and Subsistence
374
560
(186)
338
285 52
Fixed Cost - Office Rent
707
656 51
630
644
(14)
Good and Services
388
1 003
(615)
279
348
(69)
Total Expenses
5 600
6 602
(1 002)
4 192
3 620
572
Surplus/(Deficit)
(3 057)
(2 223)
(834)
(3 048)
(3 115) 67

37. INCOME STATEMENT: SUPPORT PROGRAMMES
CEO
CORPORATE SERVICE
HUMAN RESOURCE
MARKETING
2015/16
2014/15
Variance
DoL Grant
3 187
3 018
169
10 017
9 486
531
8 196
7 761
435
9 106
8 624
482
Revenue -
161
221
(60) 13
Total Income
10 178
9 707
471
8 209
448
Salaries
2 739
2 661 78
6 549
6 714
(165)
5 548
5 045
503
4 662
4 427
235
Travel and Subsistence
417
231
186 37
126
(89)
133
137
(4)
379
296 83
Fixed Cost - Office Rent
304
244 60
943
994
(51)
279
248 31
362
321 41
Good and Services
694
452
242
5 950
7 212
(1 262)
2 552
2 282
270
4 125
3 585
540
Total Expenses
4 154
3 588
566
13 479
15 046
(1 567)
8 512
7 712
800
9 527
8 628
899
Surplus/(Deficit)
(967)
(569)
(398)
(3 301)
(5 339)
2 038
(303) 49
(352)
(421)
(417)

38. INCOME STATEMENT: SPONSORED PROGRAMMES
TAS - UIF
WPC - DTI
TRANSNET
2015/16
2014/15
Variance
UIF/ DTI Grant
21 916
19 438
2 478
8 094
9 170
(1 076) -
Revenue
4 203
7 480
(3 277)
2 678
1 532
1 146
1 325
747
578
Total Income
26 119
26 918
(799)
10 772
10 702 70
Travel and Subsistence
989
1 455
(466)
1 439
1 512
(73)
286
232 55
Salaries 6
(6)
Office Rent 15
(15)
Cost of Project Implementation
11 054
17 838
(6 784)
404
415
(11)
Good and Services
9 873
145
9 728
8 667
10 152
(1 485)
634
100
534
Total Expenses
10 105
11 685
(1 580)
Surplus/(Deficit)
667
(983)
1 650

39. CONSOLIDATED PROGRAMME EXPENDITURE
2015/16
2014/15
Actual
Budget
Variance
Administration
34 223
46 194
11 971
43 661
67 979
24 318
Productivity Organisational Solutions
8 980
9 092
112
8 594
9 749
1 155
Value Chain Competitiveness
22 710
21 092
(1 618)
19 936
16 371
(3 565)
Workplace Challenge
10 105
8 903
(1 202)
11 664
10 514
(1 150)
Turnaround Solutions
21 916
22 706
790
19 438
8 982
(10 456)
Transnet
1 325
4 538
3 213
747 -
(747)
Total
99 259
13 266
9 555

40. CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE AS AT 31 MARCH 2016
2015/16
2014/15
REVENUE
Transfers and Subsidies
66 234
71 947
Rendering of Services and Sale of goods
19 682
15 648
Finance Income
170
1 006
Other Operating Revenue
10 668
10 115
Total Revenue
96 754
98 716
EXPENSES
Employee Costs
57 974
54 741
General Expenses
27 908
29 776
Cost of Project Implementation
11 458
18 247
Other Expenses
1 919
1 231
Total Expenses
99 259
Deficit for the Period
(2 505)
(5 279)
Gains and (Losses) 15
(45)
Total Deficit for the Period
(2 490)
(5 324)

41. PROGRAMME FOCUS
2016/2017

42. PERFORMANCE TO DATE PER STRATEGIC OBJECTIVE - 2016/17 FY
PROGRAMME 1:Turnaround Solutions
Strategic objective
Key Performance Indicators
Annual Target
Targets
Quarter 1&2
Progress to date
Reasons for variance
Support initiatives aimed at preventing job losses
Number future forums established
130 10 21
Slow uptake of the Turnaround Solutions programme by companies
Number of work-plans developed (companies facing economic distress)
160 40 14
Number of work plans implemented
150 23
Number of close out reports 85 46
Number of impact assessment 50
Productivity champions training
110 90 5
Number of jobs impacted
6 500
3000
1194

43. PERFORMANCE TO DATE PER STRATEGIC OBJECTIVE - 2016/17 FY
PROGRAMME 2: Productivity Organisational Solutions
Strategic objective
Key Performance Indicators
Annual Target
Targets
Quarter 1&2
Progress to date
Reasons for variance
Develop, facilitate, evaluate and measure relevant productivity improvement and competitiveness in workplaces
Number of emerging entrepreneurs trained
5500
2400
2349
Cancellation for training from two major partners and rescheduled to Q3
Number of educators trained
200
100
273
Annual target has been achieved due to partner deferring training from 2015/16 to current financial year
Number of workers trained
1000
700
980
Target has been exceeded due to partner requesting a project acceleration plan in Q1 of the current financial year
Number of Skills Development Facilitators trained 40 82
One group of SDF’s was trained during Q1 although session was planned for in Q2
Number of managers trained
170
144

44. PERFORMANCE TO DATE PER STRATEGIC OBJECTIVE - 2016/17 FY
PROGRAMME 3: Value Chain Competitiveness(Research)
Strategic objectives
Key Performance Indicators
Annual Target
Targets
Quarter 1&2
Progress to date
Reasons for variance
1. Undertake productivity related research
2. Maintain a database of productivity and competitiveness systems, and publishing this systems
Annual Productivity Statistics report
1 Report
2nd Draft
2nd draft completed with calculations
Annual competitiveness indicators position for IMD World Competitiveness Yearbook
2016 report published
Awaiting Letter of Agreement from IMD for 2017 Report
Annual study on public sector productivity and performance and service delivery
2nd draft
Draft report is completed
Develop a report on the best way to manage performance, productivity and remuneration in the PES
Draft report completed

45. PERFORMANCE TO DATE PER STRATEGIC OBJECTIVE - 2016/17 FY
PROGRAMME 3: Value Chain Competitiveness(Research)
Strategic objectives
Key Performance Indicators
Annual Target
Targets
Quarter 1&2
Progress to date
Reasons for variance
1. Undertake productivity related research
2. Maintain a database of productivity and competitiveness systems, and publishing this systems
Reports conducted on identified relevant sectors as commissioned
4 Reports
Agro processing report: in progress
PGMS: in progress
Fisheries: draft reported completed
Abalone: draft report completed
Number of provincial seminars conducted on research reports 9 4 7

46. PERFORMANCE TO DATE PER STRATEGIC OBJECTIVE - 2016/17 FY
PROGRAMME 3: VALUE CHAIN COMPETITIVENESS (WORKPLACE CHALLENGE)
Strategic objective
Key Performance Indicators
Annual
Target
Targets
Quarter 1&2
Progress to date
Reasons for variances
Develop, facilitate, evaluate and measure relevant productivity improvement and competitiveness in workplaces
Number of entrepreneurs that joined WPC
166 80 76
Slow performance of the economy is dissuading companies to join WPC
Number of capacity building workshops 30 15 12
Linked to the number of companies joining the WPC
Number of Companies implementing WPC
200
124
116
Number of Change Facilitators (CF) & Interns within WPC
15 CF & 3 interns
15 CFs & 3 interns
13 CF& 3 interns
Recruitment process underway

47. PERFORMANCE TO DATE PER STRATEGIC OBJECTIVE - 2016/17 FY
PROGRAMME 3: Value Chain Competitiveness (Workplace Challenge)
Strategic objective
Key Performance Indicators
Annual
Target
Targets
Quarter 1&2
Progress to date
Reasons for variances
Develop, facilitate, evaluate and measure relevant productivity improvement and competitiveness in workplaces
Number of companies in after care
359
288
Number of quarterly newsletter 4 2
Research and development and Monitoring and evaluation
Roll-out the system
M & E Report
Number of case studies 9 3 1
Compiled/draft but not yet released.

48. PERFORMANCE TO DATE PER STRATEGIC OBJECTIVE - 2016/17 FY
PROGRAMME 4: Marketing and Communications
Strategic objective
Key Performance Indicators
Annual
Target
Targets
Quarter 1&2
Progress to date
Reasons for variance
Promote a culture of productivity in workplaces
Number of media articles published
395
160
167
Awards coverage for KZN drew a lot of coverage
Number of productivity awards held 9 8 7
The regional award was not achieved as the anticipated partnership with the Economic development Free State did not materialise
Number of annual report produced 1
Number of Productivity SA magazines produced 4 2
2nd Magazine in print delivery on the 14th October

49. PERFORMANCE TO DATE PER STRATEGIC OBJECTIVE - 2016/17 FY
PROGRAMME 4: Marketing and Communications
Strategic objective
Key Performance Indicators
Annual
Target
Targets
Quarter 1&2
Progress to date
Reasons for variance
Promote a culture of productivity in workplaces
Number of electronic newsletter produced 12 6 4
Due to October being Productivity Month, two newsletters will be released in Q3
Number of partnerships with stakeholders 9 2
MoUs with CCMA, FEDUSA, DSBD, Trade and Investment KZN, dti and SEDA in progress
Number of workshop and seminars conducted 30 29
Productivity SA partners with stakeholders and get to reach the market through the partners initiatives, exhibitions, panellist presenter and presentation opportunities

50. PERFORMANCE TO DATE PER STRATEGIC OBJECTIVE - 2016/17 FY
PROGRAMME 5: Human Resources
Strategic objective
Key Performance Indicators
Annual Target
Targets
Quarter 1&2
Progress to date
Reasons for variance
Talent Management
Generate career path maps
Career paths maps
50%
71% achieved (12 out of 17 delegates)
List of development areas of individuals
Development plans
90% implementation
100% completed
IDP of person: Identify development
Reviewed IDPs
100% submission
65% submitted
Non compliance with policies by programme managers
Established goal setting process that facilitates total participation and goal alignment
100% completion of performance contracting Level 2 to 9
100% completion
98% Performance Contracts 2016/17 submitted

51. PERFORMANCE TO DATE PER STRATEGIC OBJECTIVE - 2016/17 FY
PROGRAMME 5: Human resources
Strategic objective
Key Performance Indicators
Annual Target
Targets
Quarter 1&2
Progress to date
Reasons for variance
Talent Management
System process for assessing performance in a fair and equitable manner(Scorecards)
100% Completed performance reviews
100% staff reviewed
98% submitted
(Review /16)
Salary surveys to determine “market relatedness” of remuneration
Salary survey/ benchmarking
(in quarter 4)
Culture survey and interviews to check change conducted to improve culture shift
Climate survey interventions implemented
50% implementation 0%
Non compliance with policies by programme managers

52. FINANCIAL REPORT APRIL – SEPT 2016

53. PRODUCTIVITY SA CONSOLIDATED AS AT 31 AUGUST 2016
Opening Balance
Surplus / (Deficit)
Accumulated Surplus/ (Deficit)
2011
369.00
2012
2013
2014
235.00
2015
2016
2017

54. EXPLANATIONS OF THE DEFICIT
Under performance on the UIF funding
Limited capacity to generate revenue (e.g Transnet project and services income)
Under funded for the expanded mandate which is productivity and employment and income growth
Accounting practices leading to overspending on the budget, which is generally treated as a deficit (non-compliance with the PFMA. Return PSA to strict adherence to governance and general compliance with policies and regulations; with the required acts such as PFMA, PPPFA, SCM, Treasury Regulations, etc. as well as Internal Policies.

55. PRODUCTIVITY CASHFLOW AS AT 31 MARCH 2017
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Opening Bank Balance as at 21 September 2016
6 596
-1 524
DoL Grant -
15 981
dti (80% of Grant earned by Productivity SA
1 750
Estimated Debtors` Collections
320
315
270
200
TAS Cost Recovery earned by Productivity SA
Transnet Management fee 13%
Total Cash Inflow
6 916
-1 209
-1 280
Payments: Fixed Costs
-5 754
-6 136
Payments: Operating Costs
-2 686
-3 000
Total Cash Outflow
-8 440
-9 136
Net Cash Position as at 31 March 2017
Opening Balance
Accumulated Surplus/ (Deficit)
2011
369.00
2012
2013
2014
2015
2016
2017

56. DoL GRANT vs PRODUCTIVITY SA EMPLOYEE COSTS
Financial Year
DoL Grant
Employee costs
Shortfall
2011
31 155
32 263
-1 108
2012
34 059
35 555
-1 496
2013
37 050
43 586
-6 536
2014
40 285
48 927
-8 642
2015
43 119
54 741
2016
45 531
57 974
2017 MTEF
47 944
62 351
TOTAL

57. UIF FUNDING AND TRANSFERS IN MILLIONS AS AT 30 SEPTEMBER 2016
FY BUDGET ACTUAL DATE RECEIVED
2014/ R58,500 R29, June 2014
2015/ R62,000 R17, December 2015
2016/ R97,807 R24, July 2016
Balance of the 2016/2017 funding is R73,359 million
2017/ R78,720
2018/ R83,365
2019/ R88,033

58. UNEMPLOYMENT INSURANCE FUND REPORT
BALANCES
Bank Balance R18,876,741 as at 30 September 2016
Deferred Income R40,270,848 million as at 31 August 2016
Transfers from UIF is reversed in the Balance Sheet
Monthly expenses for the projects are realised from the Deferred Income
Breakdown as follows in ZAR millions:
Deferred Income as at 31 August 2016
Financial Year
Date
Grant Received
Utilised
Interest Earned
Balance
Opening Balance
01/03/2014
2014/2015
06/11/2014
2015/2016
04/12/2015
2016/2017
04/07/2016
TOTAL

59. UIF FUNDS UTILITISED BY PRODUCTIVITY SA
UIF Funding Agreement is for the exclusive use of the funds to be utilised on the UIF mandate on turn-around strategies, prevent lays-offs, job losses and retrenchments
The funds were to be ring-fenced
Productivity SA breached the funding agreement by using the UIF funds irregularly, without authority and disclosure
Since FY 2010 Productivity SA transferred funds of R36 million from the UIF bank accounts (subject to verification)
Productivity SA advised UIF in September 2016 and requested the funds owing to UIF be redeemed by implementing projects at its own costs over the next 2 years, commencing in September 2016

60. PRODUCTITY SA PLANS TO MITIGATE THE SITUATION AS AT SEPTEMBER 2016
The turnaround strategic plan will have a 3-pronged approach:
1. Revenue Generation
Review the management of the TAS Programme which is funded by the Unemployment Insurance Fund (UIF) to ensure that organization-wide resources are deployed to effectively deliver on the UIF Targets and realise the revenue/recover costs. The UIF funds are recognised as Deferred Income, yet to earned by PSA. The plan is to earn at least R9mln by the end of the financial year.
Review the management of the TRANSNET Account to ensure that organization-wide resources are deployed to effectively deliver on the targets and raise revenue/recover costs.
Revised budgets for the 2016/2017 financial year to generate revenue from September 2016 to end of March 2017 from UIF R3,181 million and Transnet R5,706 million which will result in R8,887 million additional revenue.
Support to government strategic initiatives aimed at employment and income growth with the focus on:
Enterprise and supplier development programmes of SOEs in partnership with DSBD and dti
Support to enterprises in SEDs and IDZ in partnership with the dti.

61. PRODUCTITY SA PLANS TO MITIGATE THE SITUATION AS AT SEPTEMBER 2016 …(cont)
2. Cost Containment Measures and Cost Savings
Establish governance structures and enforce compliance with PFMA, PPPFA, SCM, Treasury Regulations, etc. as well as Internal Policies.
Implement cost containment measures to curb overspending on the budget:
moratorium on all existing vacancies and or contract workers with immediate effect
curtailing travelling and subsistence accruing from activities that we cannot derive value for by chasing accounts which do not show a return on investment.
reviewing all existing contracts with a view to amicably terminating the contracts without any additional and or penalties
reducing subsistence and travel costs by video-conferring, pooling of cars for travel
minimising the use of consultants

62. PRODUCTITY SA PLANS TO MITIGATE THE SITUATION AS AT SEPTEMBER 2016 (contd)
3. Unemployment Insurance Fund (UIF) transfers
The cost recovery on the R73,354 mil still to be transferred by UIF towards Turnaround Solutions Programme will mitigate our financial challenges

63. PRIORITIES FOR
2017/2018

64. PRIORITIES FOR 2017/2018 Financial sustainability of the organisation
Provide support to National Strategic Initiatives and Programmes (Economic Cluster Departments and their Entities) aimed at sustainable employment and income growth and workplace productivity.
Improving the productive and competitive capacity of the national economy and business efficiency through research on socio-economic systems, productivity and economic sectors as well as through the collection and supply of information;
Promoting public awareness and dialogue in the workplace to inculcate a culture of productivity and competitiveness in all spheres of the nation’s economic and community life.

65. PRIORITIES FOR 2017/2018
Refining the Business Model and Strategic Plan to ensure alignment with the National Development Plan - Vision 2030, the Medium Term Strategic Framework 2014 – 2019, and other Government Programmes to improve productivity and competitiveness.
Priority sectors:
Revitalising agriculture and the agro-processing value chain;
Advancing beneficiation or adding value to the mineral wealth;
Unlocking the potential of SMMEs, cooperatives, townships and rural enterprises, by partnering the Department of Small Business Development in implementing the informal sector support policy which includes the provision of business training;
Supporting the Manufacturing sector by committing resources towards Manufacturing Productivity and Competitiveness Enhancement Programmes.

66. THANK YOU