1. Project Shanduka Briefing of the Labour Select Committee 27 February 2013

2. Fact finding mission and consultative process by DG on the 7 th July 2011 until 5 th September 2011 The provincial visits highlighted numerous issues to be addressed by the Departmental leadership Some of the critical issues raised were the following: BACKGROUND

3. SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS 1 Disparities in SR levels– Job evaluation challenges.Disparities in SR levels– Job evaluation challenges. 2 The Organisation is “top heavy”.The Organisation is “top heavy”.

4. SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS 3 Most resources are largely concentrated at Head Office.Most resources are largely concentrated at Head Office. 4 Work load is perceived to be unbalanced at various service delivery points.Work load is perceived to be unbalanced at various service delivery points. CHALLENGES IDENTIFIED CHALLENGES IDENTIFIED

5. SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS 5 Provinces have inadequate budget allocations.Provinces have inadequate budget allocations. 6 Tools of trade are inadequate.Tools of trade are inadequate. CHALLENGES IDENTIFIED CHALLENGES IDENTIFIED

6. SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS 7 Current IT systems are inefficient.Current IT systems are inefficient. 8 Staff are not afforded equal training opportunities. Staff are not afforded equal training opportunities. CHALLENGES IDENTIFIED CHALLENGES IDENTIFIED

7. SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS 9 Corruption is a problem in some areas.Corruption is a problem in some areas. 10 General mistrust between management and staff.General mistrust between management and staff. CHALLENGES IDENTIFIED CHALLENGES IDENTIFIED

8. SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS 11 Low Staff morale in general.Low Staff morale in general. CHALLENGES IDENTIFIED CHALLENGES IDENTIFIED

9. Problem Statement: SUMMARY OF PROBLEM STATEMENT “The Department is not functioning as a single entity and there is generally a lack of uniformity in how it is currently configured. There is duplication of functions, dilution of core and support functions, tendency to resort to piece meal approach when dealing with Organisation structure matters and sub-optimal allocation and distribution of human resources and service delivery points in the Organisation and the country respectively. The Department is not configured for faster and efficient service delivery”

10. THE DEPARTMENT’S RESPONSE The need to conduct an Organisational review exercise using the services of an external service provider. To cover all nine provincial offices, Head Office and the two Funds. It was thus found necessary not just to deal with the symptoms of the problems but with root causes too and hence...

11. THE DEPARTMENT’S RESPONSE The aim of the Project has always been and is still to… Organisational Review process would thus guarantee a more sustainable solution since it deals with root causes and systemic challenges of the DoL

12. “To galvanise the Department into a single efficient entity designed and geared for improved service delivery whilst ensuring that the new Department is an employer of choice and a learning organisation” OVERALL AIM OF THE PROJECT

13. AIM OF THE ORGANISATIONAL REVIEW AND DESIGN PROJECT The aim of this project is therefore not limited to just providing a sustainable solution to all the problems that were uncovered by the fact finding mission to our provinces, Branches and programmes but is mainly also aimed at dealing with root causes and systemic issues pertaining to the identified problems with a view to galvanise the DoL into a single efficient entity designed and geared for improved service delivery. 13

14. Why did we opt for an external Service provider? EXTERNAL SERVICE PROVIDER EXTERNAL SERVICE PROVIDER

15. EXTERNAL SERVICE PROVIDER To get an opportunity to work with a team of Consultants that has International experience, connections and exposure on Organisational Design and Change Management strategies and tactics. To achieve objectivity, impartiality and fairness - thus buy-in from staff. Create an environment and opportunity for skills transfer for some of our staff in the DoL.

16. Which external service provider did we choose and were SCM processes followed? EXTERNAL SERVICE PROVIDER EXTERNAL SERVICE PROVIDER

17. All SCM processes and procedures have been followed without deviation resulting in the appointment of: 17 SERVICE PROVIDER IN USE FOR THIS PROJECT Deloitte & Touche Consulting!! Deloitte & Touche Consulting!! Deloitte & Touche Consulting officially commenced on the 3 September 2012 Deloitte & Touche Consulting officially commenced on the 3 September 2012

18. Were all SCM processes and procedures followed without deviation when selecting the appropriate Service Provider? SUPPLY CHAIN MANAGEMENT (SCM) PROCESSES AND PROCEDURES SUPPLY CHAIN MANAGEMENT (SCM) PROCESSES AND PROCEDURES

19. All SCM processes and procedures have been followed without deviation as shown in the Gant Chart that follows: 19 SUPPLY CHAIN MANAGEMENT (SCM) PROCESSES AND PROCEDURES

20. SEQUENCE OF EVENTS FOR THE PROCUREMENT PROCESS SEQUENCE OF EVENTS FOR THE PROCUREMENT PROCESS

21. Sub Project Project Amount 2012 Project Amount 2013 Project Amount 2014 Project Title: Project Shanduka (Organisation Review and Design) 1. Professional fees (Phase I) R10,441,431.00 2. Professional fees (Phase II) R15,131,569.00 TOTAL R25,573,000.00 PROJECT COST

22. “The following two slides show project deliverables and progress against the deliverables including project timelines” PROJECT DELIVERABLES AND PROGRESS (PHASE I & II) PROJECT DELIVERABLES AND PROGRESS (PHASE I & II)

23. OF PROJECT SHANDUKA (1 Sept 2012 – 31 June 2013) PHASE I OF PROJECT SHANDUKA (1 Sept 2012 – 31 June 2013) Change management implementation and skills transfer 30 Oct 1230 March 1330 April 1331 April 13 28 May 13 31 JUL 13 Done Change management strategy and action plan - Done – in progress Business strategy and Service delivery model – in progress – In progress Business process mapping and improvement thereof – In progress In progress Report on optimum number, size, geographical spread and location of service delivery points (including workload assessment) -In progress In progress Organisational structure I&II, job profiling and job evaluation - In progress Not started yet Implementation plan for approved recommendations Not started yet (I)

24. PHASE IIOF PROJECT SHANDUKA (1 ST JULY 2013 – 31 DEC 2013) PHASE II OF PROJECT SHANDUKA (1 ST JULY 2013 – 31 DEC 2013) 1 Aug 13 –Oct 13 End of Oct 13End of Dec 13End of Jan 14End of Feb 14 Not started yet Skills audit, current employee placement and HR Planning report -Not started yet Not started yet Report with recommendations on automated Organisational and individual performance management system - Not started yet Not started yet Organisational culture – current and proposed situation - Not started yet Not started yet Succession planning and talent management system report with recommendations - Not started yet Not started yet Implementation of all approved recommendations (II) - Not started yet Change management implementation throughout

25. The following slides shows project methodology as used by Deloitte Consulting and how far are they in its implementation (this methodology will eventually lead to the achievement of Project deliverables). PROJECT METHODOLOGY AS USED BY DELOITTE CONSULTING PROJECT METHODOLOGY AS USED BY DELOITTE CONSULTING

26. © 2013 Project Shanduka 26 Project Shanduka: Phase 1 Sep 12Oct 12Nov 12Dec 12Jan 13Feb 13Mar 13Apr 13May 13Jun 13 As-Is Assess- ment Strategy Articu- lation Conceptual Model Organisation Structures I: Roles & Reporting lines To-Be Business Process I To-Be Business Process II Organisation Structures II: Job profiles & Evaluations Implement Recomm endations Change Strategy Results Management Office Implement Change management Strategy What is the plan of action and how are we progressing against plan? Deloitte & Touche Consulting’s Methodology and progress against it (Phase 1)

27. A single seamless and integrated Department of Labour Enhanced integration, coordination, and alignment of services, This project works closely with the ICT Chief Directorate. EXPECTED IMPACT OF THE PROJECT

28. Uniform and optimised business processes and integrated systems Highly engaged clients and front line staff Better opportunity for the Department to deliver faster and more efficiently to the citizens Improved service delivery 28 EXPECTED IMPACT OF THE PROJECT ON SERVICE DELIVERY

29. SUMMARY OF KEY POINTS (Cont..) Project Shanduka (Organisational Review and Design) is a direct response to issues that were raised by staff in the DoL during the DG’s fact finding mission in 2011. Project Shanduka (Organisational Review and Design) is a direct response to issues that were raised by staff in the DoL during the DG’s fact finding mission in 2011. The use of Deloitte & Touche Consulting ensures objectivity, impartiality and fairness. The use of Deloitte & Touche Consulting ensures objectivity, impartiality and fairness. Though the Consultants started on the 3 rd September 2012 the Project is still on track. Though the Consultants started on the 3 rd September 2012 the Project is still on track. Consultative processes and engagement with staff and organised labour are key to project Shanduka. Consultative processes and engagement with staff and organised labour are key to project Shanduka. All SCM processes and Procedures were followed without deviation All SCM processes and Procedures were followed without deviation

30. SUMMARY OF KEY POINTS This Project will improve service delivery (in terms of speed, quantity and quality) at our service delivery points and will thus benefit our citizens. This Project will improve service delivery (in terms of speed, quantity and quality) at our service delivery points and will thus benefit our citizens. Project Shanduka will further benefit staff as it will in a long term transform the DoL into an Employer of choice and a learning organisation. Project Shanduka will further benefit staff as it will in a long term transform the DoL into an Employer of choice and a learning organisation. Organisation Culture and Climate will improve in a long run and this will result in enhanced morale levels of our staff Organisation Culture and Climate will improve in a long run and this will result in enhanced morale levels of our staff There is going to be return on investment and value for money if one considers the impact and benefits of this project. There is going to be return on investment and value for money if one considers the impact and benefits of this project.

31. THANK YOU!