2. BRIEFING ON STRATEGIC PLANS AND BUDGETS FOR 2016/17
PRESENTATION OUTLINE
Who is Productivity SA?
Vision and Mission
Value Chain Proposition
Key Priority Sectors
Structure and Governance
Strategic Objectives
Programme Focus
Strategic Projects
Strategic Direction-Business Model

3. WHO IS PRODUCTIVITY SA? Who is Productivity SA
Productivity SA is established in terms of section 31(1) of the Employment Services Act as a juristic person.
Its mandate is to promote employment growth and productivity

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

5. 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” 5

6. 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

7. Value Chain Proposition
National priorities
Drivers e.g. NDP, IPAP, New Growth Path, MTSF, WCR
Enabling Act – Juristic Person
Mandate
Vision & Mission
Strategic Objectives
Key Priority Sectors
Value Proposition – Solutions via Programmes
Impact
MTSF – Medium Term Strategic Framework

8. Economic impact Creation of Employment Poverty alleviation
Reduction of inequality
Improved Economic efficiency

9. Functions of Productivity SA – Section 32
Clause of the Employment Services Act
Productivity SA’s Value Propositions
(a)
To promote a culture of productivity in the workplace
Enterprise productivity and competitiveness
Micro-small enterprises and cooperatives productivity capabilities
Knowledge Management and Research
Public sector efficiency and effectiveness
Productivity awareness
(b)
To develop relevant productivity competencies
(c)
To facilitate and evaluate productivity improvement and competencies in workplaces
(d)
To measure and value productivity in the workplace
(e)
To maintain a database of productivity and competitiveness systems and to publicise these systems
(f)
To undertake productivity-related research
(g)
To support initiatives aimed at preventing job losses
(h)
To perform any other function

10. Services Drivers Outcomes
CONTRIBUTING TO DECENT EMPLOYMENT THROUGH INCLUSIVE GROWTH
NDP
IPAP
New Growth Path
World Competitiveness Report
MTSF
Drivers
Enhancing the productive capacity of South Africa
SOLUTIONS
Turnaround
Productivity and competitiveness
SMME & Co-operatives Training
Knowledge Management & Research
Productivity Awareness
Services
Improved productivity and competitiveness in Enterprises
Effective communication between employees and management
Early warning systems to prevent job losses
Build productive capabilities of SMMEs and intermediaries
Awareness creation on importance of productivity
Provision of industry related information and comment on productivity of priority economic sectors
Outcomes ‘
MTSF – Medium Term Strategic Framework

11. PRIORITY SECTORS

12. Productivity SA Priority Sectors
Productivity SA ‘s Priority Sectors
Manufacturing
Agro-Processing
Mining
Public Sector
10 Main sectors
State of the nation address talks about 5 Priorities – Education, Health, Fight against crime and corruption, land reforms and Creating decent work

13. STRUCTURE AND GOVERNANCE
Schedule 3A Entity – reporting to Minister of Labour
Tripartite organisation
Board drawn from organised Business, Organised Labour and Government
Programmes
STRUCTURE AND
GOVERNANCE

14. Implementation
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

15. PROGRAMMES Turnaround Solutions Productivity Organisational Solutions
Value Chain Competitiveness
Marketing and Communications
Human Resources
Corporate Services

16. STRATEGIC objectives
Promote a culture of productivity in the workplaces
Develop relevant productivity competencies
Facilitate and evaluate productivity improvement and competencies in workplaces
Maintain a database of productivity and competitiveness systems and publicising these systems
Undertake productivity-related research
Support initiatives aimed at preventing job losses

17. ALIGNMENT WITH OBJECTIVES OF KEY FUNDER’S
Alignment with Funder’s Objectives: 2016/17
DoL
R47.944m
* National Awareness Campaign
* Research Reports for specific sectors
* SMME & ETD – Employment creation
11%
dti
R8.523m
* Support Industrial Clusters
* Workplace Collaboration Management and Workers
* Competitiveness & Productivity
* R&D 5%
UIF
R97.8m
*Turnaround solutions in companies in distress
* Rescue companies
*Saving jobs
*Positive WP relations
57%
Self-generated
R18.7m
* Utilise skills set to generate additional funding to be sustainable
28%

18. PROGRAMME FOCUS

19. PROGRAMME 1
TURNAROUND SOLUTIONS

20. PROGRAME PURPOSE
To prevent job losses through Turnaround Solutions

21. TARGETS 2016/17 PROGRAMME OBJECTIVES Key Indicators Targets
Support initiatives aimed at preventing job losses
Key Indicators
Number of companies nurtured
Number of future forums established
Number of work-plans developed
Number of work plans implemented
Number of close out reports
Number of impact assessment
Capacity Building of Future Forums
Productivity Champion Training
Number of Jobs Impacted
Targets
200
100
10 000

22. PROGRAMME OUTCOMES Improves Productivity Improves profitability
Improves company performance through better marketing, financial strategies, management, HR and Operations
Effective communication between employees and management
Job security
Early Warning systems to detect signs of decline

23. PRODUCTIVITY ORGANISATIONAL SOLUTIONS
PROGRAMME 2
PRODUCTIVITY ORGANISATIONAL SOLUTIONS

24. PURPOSE OF THE PROGRAMME
To provide productivity training to SMME’s/Cooperatives in order to foster continuous performance improvement in their workplaces; as well as Intermediaries such as educators, skills development facilitators and ETD service providers to leverage our reach to organisation and communities.

25. TARGETS 2016/17 Programme Objectives Indicators Targets
Develop relevant productivity competencies
Facilitate and evaluate productivity improvement and competitiveness in workplaces
Indicators
Number of educators trained
Number of emerging entrepreneurs trained
Number of workers trained
Number of SDF’s trained
Number of managers trained
Number of graduates engaged
Targets
200
5500
1000
100
170 2

26. PROGRAMME OUTCOMES
Increased number of intermediaries facilitating the spread of productivity competencies and mindsets
Generate and disseminate knowledge and key productivity drivers and challenges
Increased number of educators, learners, ETD service providers and SDFs with enhanced productivity competencies and mindsets.
Increased number of public sector organisations, including municipalities managing their resources efficiently and effectively
Enhance public sector efficiency and effectiveness resulting in improved service delivery
Increase productivity levels amongst a number of small enterprises
Build the productive capabilities of micro-small enterprises

27. VALUE CHAIN COMPETITIVENESS
PROGRAMME 3
VALUE CHAIN COMPETITIVENESS

28. PROGRAMME STRATEGIC FOCAL AREAS
Manages the total knowledge assets of Productivity SA
Improves the productivity and competitiveness of South African firms and sectors through the implementation of continuous improvement principles at the workplace
Generate and provide decision makers in government, business and labour with information on productivity
Research
The workplace challenge programme
Knowledge management (Support Function)

29. PURPOSE OF PROGRAMME
The programme comprises the following divisions:
The Workplace Challenge (WPC)
The WPC Programme is an initiative of the Department of Trade and Industry (dti) Productivity SA manages the programme on behalf of the dti.
The WPC improves the productivity and competitiveness of South African firms and sectors through constructive labour relations and the implementation of continuous improvement principles at the workplace.
Knowledge Management
Manages the total knowledge assets of the Productivity SA for easy storage, retrieval, reuse and continuous improvement of the assets.
Research
Generate and provide decision makers in Government, Business and Labour with information and knowledge on productivity of economic sectors to improve competitiveness of our economy. .

30. VALUE CHAIN COMPETITIVENESS
Overall programme strategic objectives:
To provide technical expertise to improve business processes at firm-level for wealth and employment creation by:
upgrading the value-chain efficiencies in industry; and
improving the overall competitiveness of the economy
To initiate and conduct cutting-edge research and co-ordinate Knowledge Management processes and practices
To ensure that Productivity SA is the custodian of choice of productivity related information and knowledge .

31. TARGETS 2016/17 Programme Objective Indicators Targets
Publish Productivity Research reports for selected sectors
Indicators
Annual Productivity Statistics
Annual Competitiveness Indicators position for (IMD) World Competitiveness Yearbook
Annual Study on Public sector productivity and performance and service delivery
Develop a report on the best way to manage performance, productivity and remuneration in the PES
Reports conducted on identified relevant sectors as commissioned
Number of Seminars conducted
Targets
1 report
1 Report
4 Report 9

32. TARGETS 2016/17 Programme Objective Indicators Targets
Develop relevant productivity competencies
Facilitate and evaluate productivity
Improvement and competitiveness in workplaces
Research and Development
Indicators
Number of new entrepreneurs that joined WPC
Number of capacity building workshops
Number of companies implementing WPC
Number of change facilitators and interns coached
Number of companies in after care
Number of quarterly newsletters
Launch M & E system
Train staff on Green Productivity toolkit
Number of case companies
Targets
213 80
247
15 change facilitators and 3 interns
308 4
Roll out the system
Roll out Green Productivity Toolkit 39

33. PROGRAMME OUTCOMES
Generate and disseminate cutting-edge information and knowledge on productivity across economic sectors
Generate and disseminate authoritative Productivity Statistics
Increased number of enterprises with high levels of productivity and competitiveness
Upgraded value-chain efficiencies in industrial sectors
Improved competitiveness in the overall economy

34. MARKETING AND COMMUNICATIONS DEPARTMENT
PROGRAMME 4
MARKETING AND COMMUNICATIONS DEPARTMENT

35. PROGRAMME OBJECTIVES
To inform, educate and lead South Africans in discussions on issues pertaining to Productivity To promote the concept of productivity and competitiveness through various medium
Print
Radio
Online
Seminars
Workshops
Awards and Productivity Month
Social media
To build appropriate relationships between Productivity SA and stakeholders
Partnership or co-sponsorship of productivity or labour related issues
Initiate own and participate in relevant discussion forums
Invitations to lectures, seminars

36. TARGETS 2016/17 Outcomes Indicators Targets
National Awareness campaign
Productivity related knowledge at a strategic level to support the national productivity campaign
Productivity month campaign
Indicators
Media articles published
Number of Electronic newsletters published
Number of Leader magazine published
Annual report
Productivity awards
Workshops and seminars conducted in regions
Number of partnerships with stakeholders
Targets
395 12 4 1 7 30 9

37. PROGRAMME OUTCOMES
Create awareness of the importance of productivity and competitiveness (e.g. productivity seminars)
Create association of productivity concepts with Productivity SA
South Africans embrace the concepts of productivity that lead to changed behaviour
An entrenched brand awareness that lead to a strong brand equity
Forefront of Productivity thinking and discourse

38. HUMAN RESOURCES DEPARTMENT
PROGRAMME 5
HUMAN RESOURCES DEPARTMENT

39. TARGETS 2016/17 Programme Objective Indicators Targets
Generate career path maps
List of development areas of individuals
Individual Development Plans of person identify development
Established goal setting processes that facilitates total participation and alignment of goals
System process for assessing performance in a fair and equitable manner (scorecards)
Salary surveys to determine “market relatedness” of remuneration
Climate/Culture survey and interviews to check change conducted to improve Culture Shift
Indicators
Talent Management Development Plans
Reviewed Individual Development Plans
Completed Performance Contracting
Completed Performance Reviews
Salary survey/benchmarking against DPSA
Annual Climate/Culture survey
Targets
80%
100%
70% Completion of IDP’s
100% Completion of Performance Contracting
100% completion of Performance Reviews
100% completion of salary benchmarking exercise
75% implementation

40. PROGRAMME 6 CORPORATE SERVICES
Reporting
Governance
Sustainability
Compliance
Support
Enabler – IT & Facilities

41. 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

42. BUDGET 2016/17 BUDGET 2016/17 2016/17 REVENUE R’000
Income from sources other than grant funding
28 947
Interest received and other income
446
Sub-total - other income
29 393
Transfers and grants received
Total revenue
EXPENSES
Compensation of employees
63 018
Goods and services
Depreciation
782
Interest -
Total Expenses
Surplus / (Deficit)

43. FUNDING FOR PRODUCTIVITY SA – 2009/10 to 2017/18
LINE GRAPH – DoL on the gradual increase. Dti on the decline. UIF very erratic.
To show trend, one has to look at more than 5 years

44. ACTUAL GRANTS VS PROJECTED EXPENDITURE
DESCRIPTION
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
R’000
DoL
37 050
40285
43 119
45 531
47 944
50 341
53 261
dti
8 200
13 561
9 170
8 094
8 523
8 943
9 462
UIF
26 500
41 850
29 250
17 666
97 806
78 000
82 524
Total Actual grants & transfers
71 750
95 696
81 539
71 291
Projected Total expenditure
We can do so much more. What we have barely scratches the surface. Year in year out we budget to make a bigger impact but we consistently receive a reduced grant for various reasons – We started at a low base Money is tight. The end result is that we cut back on the planned interventions to turn companies around, roll out competitiveness and make companies productive. The effect of this is increased unemployment due to jobs lost when companies close down, productivity improvement not done, research and stats not done and SMME’s not trained.

45. TOTAL ACTUAL GRANTS RECEIVED vs PROJECTED EXPENDITURE – 2012 to 2019
LINE GRAPH – DoL on the gradual increase. Dti on the decline. UIF very erratic.

46. FUNDING & TOTAL EXPENDITURE – 2012/13 to 2018/19
LINE GRAPH – DoL on the gradual increase. Dti on the decline. UIF very erratic.

47. TRANSFERS RECEIVABLE INSTITUTION PROGRAMME R’000 %
DEPARTMENT OF LABOUR (DoL)
As per MTSF
47 944 31
DEPARTMENT OF TRADE AND INDUSTRY (dti)
WORKPLACE CHALLENGE
8 523 6
UNEMPLOYMENT INSURANCE FUND (UIF)
TURNAROUND STRATEGY
97 806 63
TOTAL TRANSFERS
100

48. TRANSFERS – 2016/17

49. TOTAL REVENUE DESCRIPTION R’000 % TOTAL TRANSFERS (GRANTS) 154 273 84
OTHER NON-TAX REVENUE
29 393 16
TOTAL REVENUE
100

50. TOTAL REVENUE

51. EXPENSES DESCRIPTION PROGRAMME R’000 % COMPENSATION OF EMPLOYEES
SALARIES & RELATED
63 018
34.3
GOODS AND SERVICES
INTERVENTIONS AND ADMIN
65.3
DEPRECIATION
782
0.4
TOTAL EXPENDITURE
100

52. EXPENDITURE

53. ACHIEVEMENTS Continued Unqualified audit opinion
Health and Safety – 99% Compliance
B-BBEE Rating of 3 (moving from 5 in prior year)
ISO 9001
Public Sector SETA Accreditation
Strategic alliances / partners and projects

54. CHALLENGES Diminishing funding sources
Undercapitalised for our mandate
Lack of investment in product development and upgrading of product offering and its presentation
Inability to attract and retain talent
Limited investment in appropriate and relevant technology
Limited resources to market , fund and implement Productivity SA programmes to the critical masses as well as increasing our footprint throughout the country.

55. STRATEGIC PROJECTS City Of Ekurhuleni 2. Transnet 3. Rand Water
Value
Duration
Outcomes
City Of Ekurhuleni R
3 years
Productivity Improvement and Competitiveness
2. Transnet R
5 years
Enterprise Development
3. Rand Water R
Productivity analysis, including the training of all Rand Water staff

56. STRATEGIC PARTNERSHIPS
PROJECT
DURATION
Description
SANACO (South African national Apex Cooperative Ltd)
Three years
MOU ending October 2016
Cost-sharing
Annual training and certification of 2400 Cooperatives nationally
South African Forestry Company Limited (SAFCOL)
 3.5 years
Productivity Improvement project
SAWEN (South African Women Entrepreneurs’ Network)
One year
Capacitation of 150 female entrepreneurs on productivity related matters
ILO
Ad-hoc
Implementation of SCORE productivity training in Tourism industry
SEDA (Small Enterprise Development Agency)
R3 498 per smme
Aftercare training for graduates from SEDA incubators.
DoE (Department of Education))
One year (2016/2017)
Training of educators in 13 disadvantaged schools in conjunction with BMF
dti
Training of cooperatives
SAWEN is a networking forum for individuals and organisations that are committed to the promotion and advancement of women entrepreneurs 

57. Dissemination of Asian experiences to Africa
Asian Productivity Organisation (APO) Partnership
Multilateral partnership with Pan African Productivity Association
Objective:
To assist African National Productivity Organisation (NPOs) in capacity building and developing certified productivity practitioners and trainers.
2015/16
Training of Trainers for Productivity enhancement in Africa Program – 2 week program conducted for 8 African countries (Botswana, Ghana, Mauritius, Namibia, Tanzania, Burkina Faso, South Africa, Zambia)
Five staff from Productivity SA participated

58. Dissemination of Asian experiences to Africa
Japan Productivity Center (JPC) Collaboration:
Bilateral relationship with individual PAPA member countries or NPOs on Technical Cooperation on Productivity Improvement to African Nations
Objectives:
To train productivity experts on productivity improvement methods at enterprise level such as 5S, Kaizen, Green Productivity, quality improvement.
Observational study missions to Japan
2015/16
Two Productivity SA employees went on a 2week study mission to Japan
Three South African model companies involved in 5s activities: WECO (Pty) Ltd, UTP Mould & Die cc and SL Diamond Tools
Dissemination seminar to showcase results of this model companies with other PAPA member countries. .

59. STRATEGIC DIRECTION – BUSINESS MODEL
SIX PILLARS
Partnership
Public Presence
People
Products and services
Process
Performance
CLUSTER 1
CLUSTER 2
CLUSTER 3
6P’s
3 Clusters
Looked at challenges and came up with new business model which focuses on alternative sources of revenue and revising charge-out rates

60. THANK YOU