2. GPW Strategic Plan 2006/2007 Presentation to the Portfolio Committee 17 May 2006 Government Printing Works

3. VISION  First choice security printer in Africa! Government Printing Works

4. MISSION  Provide cost-effective, reliable and timeous services to all spheres of Government in printing and dissemination of a full suite of Government information through technology and services excellence, and  Provide the public equitable information and above all, to form partnership with Government to achieve their goals through technology and service excellence. Government Printing Works

5. VALUES  To ensure client information is secure at all times in any security or non-security printing work and commit to the value system which include the following:  Honesty  Reliable  Trustworthy  Client satisfaction Government Printing Works

6. MANDATE  To provide the state with security printing of passports, identification documents, visa labels and other face value documents printed in a secure environment.  Management, production and distribution of central Government information products,  Provide secure printing needs of Government Government Printing Works

7. BUSINESS STRUCTURE

8. GPW ORGANISATIONAL STRUCTURE Chief Executive Officer Chief Financial Officer Exec Director Marketing & Branding Exec Director Operations & Technology Exec Director HR & Transformation Senior Mngr Administration Government Printing Works

9. Operations & Technology Structure Operations & Technology Structure Operations Manger Factory Manager Ass. Factory Managers x2 Technical Planning Contract Printing Origination Digital Printing Letter Press Litho Maintenance Form Binding Book Binding Security Binding

10. STAFF COMPLEMENT  630 employees represented at:  National Office (Pretoria)  Polokwane  Mmabatho  Bisho  Cape Town Government Printing Works

11. PRODUCTS AND SERVICES  Security printing and related services (high security ink to DHA immigration offices, meat marking ink to abattoirs, forensic analysis of fraudulent documents such as ID’s and revenue stamps).  Distribution & dissemination of government Information:  Government Gazettes  Annual Reports  Tender bulletins  Stationary Services  Warehousing & Distribution of standard stationery items (Machine registers, Fire arm licenses, etc)  Warehousing & Distribution of face value items Government Printing Works

12. GPW ANTICIPATED TRENDS Push of electronic information as opposed to “pulling” by stakeholders will accelerate demand and use of electronic print Push of electronic information as opposed to “pulling” by stakeholders will accelerate demand and use of electronic print Acceleration towards electronic print will reduce conventional print > diminishing use of conventional equipment Acceleration towards electronic print will reduce conventional print > diminishing use of conventional equipment Increasing need for Security Print will absorb increased capacity on conventional equipment and defer redundancy of this equipment Increasing need for Security Print will absorb increased capacity on conventional equipment and defer redundancy of this equipment Systematic development of “invisible” electronic print in security printing will eventually render conventional equipment mostly redundant Systematic development of “invisible” electronic print in security printing will eventually render conventional equipment mostly redundant Digital printing will remain to print reduced volumes of security hard copy Digital printing will remain to print reduced volumes of security hard copy Stationery consumption and product mix is likely to decrease dramatically as customers rapidly migrate to electronic data capturing. Volumes over time are likely to be a fraction of the past and will diminish to become a smaller support component of the new corporatised enterprise Stationery consumption and product mix is likely to decrease dramatically as customers rapidly migrate to electronic data capturing. Volumes over time are likely to be a fraction of the past and will diminish to become a smaller support component of the new corporatised enterprise Government Printing Works

13. GPW STRATEGIC PLAN Government Printing Works

14. 1. DIRECTION SETTING > STRATEGIC INTENT Government Printing Works

15. 2. SWOT Analysis Government Printing Works

16. 2.1. Strengths Government Printing Works

17. 2.2. Weaknesses Government Printing Works

18. 2.3. Opportunities Government Printing Works

19. 2.4. Threats Government Printing Works

20. 3.0 KEY THRUSTS, STRATEGIES & DELIVERABLES Government Printing Works

21. BUSINESS DESIGN TO REALISE THE STRATEGIC INTENT Government Printing Works

22. DEVELOP CORE BUSINESS PROCESSES consultative crafting of the core business process consultative crafting of the core business process Scoping of core sub processes to be mapped (see Key Thrust "Process Improvements" Scoping of core sub processes to be mapped (see Key Thrust "Process Improvements" Development of new Organisation Design around 'to be business processes Development of new Organisation Design around 'to be business processes Government Printing Works

23. EXECUTE PUBLIC ENTITY Preparation of a business case Preparation of a business case Develop the Legal Transformation Process towards reconstituted organisation as public entity Develop the Legal Transformation Process towards reconstituted organisation as public entity Development of Holistic all encompassing conversion plan and accountabilities Development of Holistic all encompassing conversion plan and accountabilities Development of a new corporate identity and logo around 'brand promise' Development of a new corporate identity and logo around 'brand promise' Government Printing Works

24. MARKET DEVELOPMENT Government Printing Works

25. DEVELOP CREATIVE & AGGRESSIVE MKTG STRATEGY & PLAN Quantitative Market Survey and Analysis Quantitative Market Survey and Analysis Qualified and quantified present and future print market trends Qualified and quantified present and future print market trends Detailed competitor analysis Detailed competitor analysis Benchmark against similar operations/ technology Benchmark against similar operations/ technology Government Printing Works

26. DEVELOP STAKEHOLDER RELATIONS Relationship/marketing managers (visit clients regularly & evaluate needs) appointed Relationship/marketing managers (visit clients regularly & evaluate needs) appointed Introduction of a call center Introduction of a call center Government Printing Works

27. BUSINESS PROCESS IMPROVEMENTS Government Printing Works

28. BUSINESS PROCESS IMPROVEMENTS Assess and enhance business and systems processes Assess and enhance business and systems processes Develop ISO standards for work environment Develop ISO standards for work environment Select and implement production control system Select and implement production control system Government Printing Works

29. SYSTEMS IMPROVEMENT Select and implement effective and efficient business systems Select and implement effective and efficient business systems Upgrade infrastructure and environment Upgrade infrastructure and environment Create capacity for proper Management Information and Business Intelligence Create capacity for proper Management Information and Business Intelligence Government Printing Works

30. SECURITY IMPROVEMENTS Develop process and policies for information protection Develop process and policies for information protection Upgrade physical security Upgrade physical security Government Printing Works

31. POLICY REVIEW AND ALIGNMENT Development of policies and procedures Development of policies and procedures Government Printing Works

32. FINANCE IMPROVEMENTS Assess finance system Assess finance system Establish inventory of assets Establish inventory of assets Identify cost & resource driver Identify cost & resource driver Implement Activity Based Costing Implement Activity Based Costing Government Printing Works

33. ORGANISATIONAL ALIGNMENT & STAFFING Restructure organisation - flatter structure Restructure organisation - flatter structure Develop a health and safety strategy Develop a health and safety strategy Conduct skills assessment Restructure organisation - flatter structure Conduct skills assessment Restructure organisation - flatter structure Develop a health and safety strategy Develop a health and safety strategy Conduct skills assessment Conduct skills assessment Government Printing Works

34. ORGANIZATIONAL TRANSFORMATION Government Printing Works

35. CREATE PERFORMANCE BASED CULTURE Develop Strategy Delivery system (performance management system) Develop Strategy Delivery system (performance management system) Assess organisation climate via Organisation Climate Survey Assess organisation climate via Organisation Climate Survey Develop Performance Based Reward (Pay) System> Job Descriptions + Job Grading + Market benchmarking + Pay Strategy Develop Performance Based Reward (Pay) System> Job Descriptions + Job Grading + Market benchmarking + Pay Strategy Develop Employment Relations strategy to meet GPW needs. Structures and procedures Develop Employment Relations strategy to meet GPW needs. Structures and procedures Consultatively develop and inculcate Values & Ethics Consultatively develop and inculcate Values & Ethics Establish competent legal advisory service Establish competent legal advisory service Develop and implement seamless intra-communication system Develop and implement seamless intra-communication system Development of Cross Functional Teams to implement strategic initiatives (CFTs) Development of Cross Functional Teams to implement strategic initiatives (CFTs) Government Printing Works

36. IMPROVE INTERNAL PEOPLE COMPETENCIES Strengthened People Balance Sheet Strengthened People Balance Sheet leadership development leadership development work place skills plan work place skills plan staff development programmes staff development programmes Government Printing Works

37. PARTICIPATIVE DEVT OF VALUE SYSTEM Participative Value Crafting Process Participative Value Crafting Process Value roll out process Value roll out process Values Steering Committee Values Steering Committee Government Printing Works

38. IMPROVE CORPORATE GOVERNANCE Development and implementation of an internal audit coverage plan Development and implementation of an internal audit coverage plan Risk management plan Risk management plan Government Printing Works

39. ENHANCED OPERATIONAL CAPACITY & CAPABILITY Government Printing Works

40. RELOCATE TO AN OPERATIONALLY EFFICIENT SITE Development of a relocation strategy Development of a relocation strategy Identification of required facilities based on equipment specifications and user requirements Identification of required facilities based on equipment specifications and user requirements Construction of a new building Construction of a new building Development of funding and budget requirements Development of funding and budget requirements Preparation of a relocation Plan Preparation of a relocation Plan Identification and and disposal of obsolete/superfluous assets Identification and and disposal of obsolete/superfluous assets Physical relocation of machinery and equipment Physical relocation of machinery and equipment Arrangement of opening ceremony to mark implementation Arrangement of opening ceremony to mark implementation Government Printing Works

41. DEVELOP EQUIP REPLACEMENT PROG ALIGNED TO STRATEGY New integrated system for the entire printing works New integrated system for the entire printing works Development of overall asset management/maintenance/replacement strategy Development of overall asset management/maintenance/replacement strategy Government Printing Works

42. DEVELOP R&D STRATEGY Define R&D requirements Define R&D requirements Define expectations for R&D in line with business strategy Define expectations for R&D in line with business strategy Identify R&D risks and mitigating measures Identify R&D risks and mitigating measures Develop appropriate R&D matrix to measure contribution on ongoing basis Develop appropriate R&D matrix to measure contribution on ongoing basis Develop interface/communication channels between R&D and rest of organisation (esp. sales/marketing and production) Develop interface/communication channels between R&D and rest of organisation (esp. sales/marketing and production) Prepare and approve R&D budget Prepare and approve R&D budget Government Printing Works

43. DEVELOP EXT RELATIONS & FOR STRATEGIC ALLIANCES Communicate with stakeholders Communicate with stakeholders Manage government relations Manage government relations Build lender relationships Build lender relationships Develop public relations program Develop public relations program Manage relations with board of directors Manage relations with board of directors Establish corporate governance policies Establish corporate governance policies Develop community relations Develop community relations Manage legal and ethical issues Manage legal and ethical issues Communicate corporate performance to stakeholders Communicate corporate performance to stakeholders Manage compliance Manage compliance Actively engage in BEE Actively engage in BEE Government Printing Works

44. DEVELOP SECURITY STRATEGY – PERSONNEL & OPERATIONS Perform comprehensive analysis of security issues Perform comprehensive analysis of security issues Define security requirements Define security requirements Design security strategy Design security strategy Implement Security Strategy Implement Security Strategy Government Printing Works

45. INVESTIGATE & DEVELOP REGIONAL PRESENCE Perform provincial stakeholder analysis/survey (in all 9 provinces) Perform provincial stakeholder analysis/survey (in all 9 provinces) Perform detailed analysis of functions and cost of provincial offices Perform detailed analysis of functions and cost of provincial offices Match needs identified to GPW strategy and existing provincial capabilities Match needs identified to GPW strategy and existing provincial capabilities Cost additional functions/offices required Cost additional functions/offices required Perform cost/benefit analysis Perform cost/benefit analysis Make a decision to create/ continue/expand/close provincial offices Make a decision to create/ continue/expand/close provincial offices If continued existence warranted, re-engineer processes to maximise supply chain efficiency. If continued existence warranted, re-engineer processes to maximise supply chain efficiency. Develop matrix to measure performance on ongoing basis Develop matrix to measure performance on ongoing basis Government Printing Works

46. BUSINESS MODEL FOR CONVERSION  Establish a schedule 3b specialist entity – GPW Corporate  Establish 2 distinct business units :  GPW – Digital (core function would be security printing)  GPW – Standard (Govt Gazettes/annual reports, etc) Government Printing Works

47. REASONS FOR CONVERSION REASONS FOR CONVERSION  To ensure effective implementation of GPW Conversion:  Re-focus its core business to enable specialist security printing  Operational effectiveness to deliver a total cost solution (effective & efficient-seamless & integrated)  Develop unique capabilities and assets to meet the needs of Governments & Citizens. Government Printing Works

48. Strategic Vulnerability Areas  People  Staff turnover - inability to attract the best artisans  Management  Leadership ito strategic & operational depth lacking  Technology  Very old machines – average age +40 years (efficiency/quality affected)  Location  Current location not ideal – very old & inappropriate Government Printing Works

49. Priorities – 2006/2007 Priorities – 2006/2007  Deliver effective service delivery  Conversion and options  New facility – Head Quarters (R250,0 mn)  Equipment and Machinery Replacement (R77,0mn)  New South African passport  Effective Marketing and Branding Government Printing Works

50. THANK YOU Government Printing Works