1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON LABOUR ANNUAL REPORT PRESENTATION (2007/8) 28 January 2009

2. VISION AND MISSION VISION To be South Africa’s productivity champion to achieve sustainable socio-economic development. Mission Productivity SA is a tripartite organization dedicated to the development and enhancement of South Africa’s productivity by unleashing the spirit of continuous productivity improvement in all South Africans.

3. KEY FOCUS AREAS FOR 2007/8 Inspiring a culture of Productivity among South Africans Productivity Knowledge and Information Enhancing Productivity Skills and Competencies Public Sector Productivity Turnaround solutions for companies Industry sector collaborations and strategies Corporate Services

4. INSPIRING A CULTURE OF PRODUCTIVITY AMONGST SOUTH AFRICANS

5. INSPIRING A CULTURE OF PRODUCTIVITY To promote understanding and importance of productivity in South Africa Cultivating a Productive attitude among learners and teachers To create a forum for exchange of productivity knowledge and skills locally, regionally and internationally Objectives Achievements Launch of New Corporate Identity Productivity Movement campaign –Productivity month –Productivity awards –Media and advertising campaign –Awareness workshops Productivity in Schools International Partnerships

6. New Corporate Identity National Productivity Institute

7. Rational for the New Brand

8. Productivity Month To establish a productivity mindset in youth in preparation for the world of work To promote productivity awareness in provinces To demonstrate the positive changes that can be brought about through productivity improvements Objectives Achievements National Productivity Schools debates Productivity games (university of JHB) Productivity indaba (Partnership with Limpopo dept of Economic dev.) National Productivity Awards Some of the finalists: –Corporate Sector: Smiths Plastics (Pty) Ltd –Emerging Sector: Meadow Feeds Paarl –Public Sector: Kirstenbosch National Botanical Garden

9. Productivity in Schools To spread the productivity message to high school learners by training teachers in productivity concepts. The impact of the programme is two-fold – Teachers are taught productivity concepts which they incorporate into their teaching – Learners take the new concepts with them as they move into the labour market Objective Achievements National Schools Debates Productivity awareness at UJ

10. International Partnerships To create a forum of transferring cutting- edge productivity knowledge and skills to Productivity SA and other National Productivity Organisations in Africa Objective Achievements Implementation of partnership projects with: –Asian Productivity Organisation (APO) –Japan Productivity Centre for Socio Economic Development (JPC-SED) –Productivity SA still serves as PAPA Secretariat of Pan African Productivity Association –World Confederation of Productivity Sciences (WCPS) –AU Labour and Social Affairs Commission

11. PRODUCTIVITY KNOWLEDGE AND INFORMATION

12. Knowledge Management and Research To generate and disseminate productivity and competitiveness information. Objective Outcome or OutputMeasure/indicatorAchievements Impact of Skills Development Study on Productivity and Competitiveness Report completed Annual Productivity StatisticsReport completedProductivity Statistics completed Public Sector Performance StudyReport completed IMD Competitiveness YearbookIMD ReportIMD for 2008 Yearbook completed Sectors in Distress StudyResearch ReportReport completed South Africa Specific Competitive IndicatorsResearch ReportResearch completed Public Infrastructure and ProductivityResearch ReportResearch completed Alternative Schemes to Alleviate Unemployment Research ReportProject at conceptualisation phase

13. ENHANCING PRODUCTIVITY SKILLS AND COMPETENCIES

14. Enhancing Productivity Skills and Competencies To develop increased number of sustainable small micro enterprises through productivity improvement To instil a culture of productive behaviour and best productive practices amongst the SMME sector To incorporate productivity concepts, values and applications into the National Curriculum Statement Objectives Achievements Between 2006 and 2008 more than 1700 small enterprises coached and mentored to measure and improve productivity in their own organisations

15. 2007/08 Targets and Achievements

16. Second Economy Interventions

18. PUBLIC SECTOR PRODUCTIVITY

19. Productivity Intervention in State Owned Enterprises To facilitate improvement of organisational productivity through customised consulting engagements Objective Achievements Productivity Improvement Projects completed in 2 SOEs: –Ekurhuleni Metro –Mintek –South African Nursing Council (last phase to be completed in the next financial year)

20. TURNAROUND SOLUTIONS FOR COMPANIES

21. Social Plan Interventions To provide technical support to prevent job losses and ensure the survival of businesses by returning them to profitability through: –Developing enterprise turnaround strategies –Promoting collaboration between management and employees in turning around the companies through future forums Objective

22. INDUSTRY COLLABORATIONS AND STRATEGIES

23. Best Operating Practices To facilitate government and industry partnerships to improve the performance and competitiveness of sectors, industries and business through: –Improved value-chain efficiencies –Promoting constructive labour relations at the workplace –Developing world class practices for continuous productivity improvement –Sharing and disseminating experiences and lessons Objective Outcome or OutputMEASURE/INDICATORACHIEVEMENTS Productivity improvement through collaboration at the workplace and sharing successes 110 companies in the implementation or aftercare phase  1 new Cluster formed  4 new User Group formed 118 companies employing over 21 500 employees  1 new Cluster formed  5 new User Groups formed Improving workplace practices  36 Milestone workshops conducted  38 Milestone workshops conducted Training and mentoring consultants with potential to facilitate Workplace Challenge Processes  7 Change Facilitators trained and coached  9 Change Facilitators trained and coached

24. CORPORATE SERVICES

25. Human Capital Objectives To create an enabling environment that continuously ensures alignment of human capital with Productivity SA mandate. To acquire cutting-edge productivity knowledge and skills from the Asian experiences Achievements Annual Equity and Workplace Skills reports submitted to DoL Intervention through APO/JPC-SED partnerships funded by the Japanese government: 6 employees trained on the APO’s Basic Course for Productivity Practitioners (Total 30 from PAPA members countries) 4 employees participated on an observational study mission to Japan (Total 12 from Africa) 4 employees were selected to participate in pilot mode company project to transfer productivity consulting skills

26. Government Grant Over 5 Years RM.

27. Sources of Revenue 2007/8

28. CHALLENGES Productivity SA and Second Economy Challenges Inability to reach critical mass Limited regional presence Our mandate – to ensure peripheral economies (SMME) brought into the mainstream Characterised by lack the orthodox systems found in larger or more established businesses We recognise the strategic importance of the SMMEs to job creation in our economy; therefore, Productivity SA continued to expand its interventions in this sector. More than 1700 small enterprises coached and mentored to measure and improve productivity in their own organisations –Productivity SA deployed its own resources –Combined projected financial benefit in excess of R115m p/a –These quantifiable financial benefits are a distinguishing factor that makes our small enterprises intervention a flagship amongst the rest! –Partnership Challenges in the implementation led to over extension of our resources

29. CHALLENGES Negative Consequences: –Pressure on cash-flow due to unanticipated demands beyond our plan –Late payments Notwithstanding these challenges, Productivity SA prides itself in: – Solid Risk management culture – Strong internal audit focus

30. TURNAROUND FOR THE ORGANISATION. Renegotiating the terms of partnership agreements to minimize our exposure Retraining of staff in additional competencies (multi skilling) Addressing key skills shortage through existing partnerships Strategy review –Revised business model to align with Skill Development Amendment Bill –Increase focus on turnaround solutions in light of the economic downturn.

31. Successful Rebranding of NPI to Productivity SA The right to host the 15 th World Productivity Congress (first in Africa) Incorporation of Productivity into The National Curriculum Statement Continued to exceed targets in Jobs Saved through the Social Plan Achieving Productivity Improvement in the SMME with tangible financial gains Elevated the PCPB to a National Project Free positive media coverage to the value of R4m during the launch of Productivity Statistics HIGHLIGHTS FOR 2007/08.