1. National Productivity Institute 2005/2006 Annual Report PRESENTATION TO THE PORTFOLIO COMMITTEE ON LABOUR 31 October 2006

2. MANDATE Tasked with the responsibility of improving productivity in all spheres of the nation’s economic and community life. Governed by a tripartite Advisory Council drawn from government, labour and business.

3. VISION The South African productivity champion for sustainable socio-economic development

4. MISSION The NPI is an institution mandated by government, labour and business to enhance productivity in order to contribute to South Africa’s socio-economic development and competitiveness

5. VALUES Dedicated to developing and enhancing the productivity of South Africans Thrive on customer intimacy through unparalleled service excellence Equity driven in all our interventions Continuously challenge existing assumptions through innovation and creativity Social awareness in everything we do

6. STRATEGIC THRUSTS Enterprise productivity and competitiveness Micro-small enterprises productivity capabilities Public sector efficiency and effectiveness Knowledge Management and Research Strategic Leadership on Productivity

7. STRATEGIC OBJECTIVES To increase the productivity and competitiveness of South African enterprises To provide strategic leadership productivity and competitiveness To generate and disseminate knowledge to addresses key productivity challenges through research and knowledge management To build the productive capacity of micro-small enterprises To enhance public sector efficiency and effectiveness To ensure financial sustainability of NPI

8. NPI STRATEGIC PROGRAMMES FOCUS AREAS Inspiring Accelerated and Shared Growth in South Africa Inspiring Accelerated and Shared Growth in South Africa Productive and Competitive Enterprises Sustainable Micro-Small Enterprise Public Sector Productivity Knowledge Management & Research Knowledge Management & Research Strategic Leadership on Productivity Strategic Leadership on Productivity

9. NPI ALIGNMENT WITH THE MINISTER’S PROGRAM OF ACTION ( Numbered according to DoL’s Success Indicators) 1. Contribution to employment creation 2. Enhancing Skills Development 5. Strengthening multilateral and bilateral relations 7. Promoting sound labour relations 9. Monitoring the impact of legislation

10. POA Yr 1: 2005 Yr 2: 2006 Yr 3: 2007 Yr 4: 2008 Yr 5: 2009 1.Contribution to employment creation 1.Contribution to employment creation 2. Enhancing Skills Development 3. Promote equity in the labour market 3. Promote equity in the labour market 4. Protecting vulnerable workers 5. Strengthening multilateral and bilateral relations 5. Strengthening multilateral and bilateral relations Strengthening Social protection 6 Strengthening Social protection 6 Promoting sound labour relations.7 Promoting sound labour relations.7 Strengthening the capacity of labour market institutions 8 Strengthening the capacity of labour market institutions 8 Monitoring the impact of legislation.9 Strengthening the institutional capacity of the Department 10 Strengthening the institutional capacity of the Department 10

11. PRODUCTIVE AND COMPETITIVE ENTERPRISES

12. Key Objective : To increase productivity levels and competitiveness of private sector enterprises and as well as growth sector industries with a potential of employing more people. The program focuses on the following projects: Workplace Challenge Social Plan Sector Initiatives

13. Workplace Challenge (WPC) Objective: To assist businesses improve productivity and competitiveness through workplace relations, world-class practices Successes: 116 companies employing 18500 people in 16 clusters 38 Milestone workshops conducted 9 Change facilitators trained in 30 Best Operating Practices

14. WPC - Case Studies Case study #1: Dunlop Tyre Problem: Poor relations between management, workers and union affected implementation of Best Operating Practices. Solution: The WPC capacity building workshops empowered all parties to focus on implementation of Best Operating Practises Results: Increase in production (30%) and speed (1.54%). Quality improved (40%) as well as morale, Attendance rate risen to 98.43% Case study #2: Widney Transport Components Solution: Implemented Productivity intervention Initiatives through Mission Directed Work teams Results: Excellent growth in sales. Constructive labour relations

15. Objective : To prevent job losses through development and implementation of turnaround strategies in companies that are in decline Successes: 91 company Future Forums were established to implement turnaround strategies 10 400 jobs protected Social Plan

16. Social Plan: Case Studies Case study #1: Juanre Clothing Problem: The company was experiencing large losses and about to close down. Solution : Social Plan conducted business analysis, identified problem areas and resolved them. Results : Improved turnover, Increased productivity (30%), acquired new premises, supplier of Woolworths girls and ladies underwear. Employment 130 to 152 Case study #2: Mount Frere Emerging Farmers Problem : Lack of technical knowledge and skills led to underutilisation of land Solution : Formed a future forum that developed a turnaround strategy to deal with the relevant interventions. Results : 51 jobs retained, established key partnerships with NDA, DBSA, Dept of Agric. A cash grant of R250 000 from social development dept.

17. Sector Initiatives Objective: To improve productivity and competitiveness in growth sectors through collaboration between enterprises – both large and small S uccesses: Expansion of the Load Accreditation Programme (LAP) Completed the 2 nd phase of Forestry Productivity initiative

18. Infrastructure Development (LAP) In partnership with the Department of Transport and other industry players in the timber industry, the NPI developed Load Accreditation Program (LAP) to promote driver wellness, road safety, efficient loading, and improved transport productivity. The number of hauliers participating actively in LAP has expanded over the last year. Overall reduction in overloading in the timber industry is between 40% and 45%.

19. SUSTAINABLE MICRO-SMALL ENTERPRISES

20. MICRO-SMALL ENTERPRISES PRODUCTIVITY CAPABILITY Key objective: To develop increased number of sustainable small micro enterprises through productivity improvement. Successes: Seda/NPI partnership Productive Capacity Building Programme for SMMEs Development of Productivity Coaches 100 Incubation Project

21. PUBLIC SECTOR EFFICIENCY AND EFFECTIVENESS

22. Key objective: To enable public service departments and state owned enterprises to deliver on its national mandate of ensuring efficient and effective service delivery. Interventions in the following areas: SOEs Government department e.g, Education, Transport, Labour, Provincial and Local government

23. PUBLIC SECTOR EFFICIENCY AND EFFECTIVENESS Education and Training 584 ETD service providers [target 224] 39 Skills development facilitators [target 22] 229 Business and government managers [target 50] 489 Workers [target 450] 388 Emerging entrepreneurs [target 260] 5 037 Learners exposed to productivity concept through debates

24. PUBLIC SECTOR EFFICIENCY AND EFFECTIVENESS NPI support government’s mandate to ensure increased levels of operational efficiency of service provision in Public Enterprises. Strategies were implemented in SOEs: Eskom Spoornet Pretoria Zoo Legal Aid Board Development Bank of South Africa

25. KNOWLEDGE MANAGEMENT AND RESEARCH

26. Key Objective: In partnership with relevant stakeholders the NPI conducts research, publish research reports, productivity statistics, case studies, conducts seminars and disseminates information. Reports completed: IMD World competitiveness report, 2006 Productivity Statistics and analysis report, 2005 Projects underway: Concise Productivity Handbook Performance, Productivity and Service delivery in the public sector Knowledge Management Framework Interventions: Labour (NUMSA) and Management (Defy)

27. STRATEGIC LEADERSHIP ON PRODUCTIVITY

28. Key objective: To position NPI and the principles of productivity improvement. Successes: Productivity month campaign: School debates finals Annual National productivity awards Initiation of the National Productivity Movement Media coverage Establishment of APO Partnership Partnership with Chambers of Commerce

29. PARTNERSHIPS AND ALLIANCES Department of Education Department of Transport SMME provincial Directorate in FS, KZN, MP Western Cape Provincial Government Department of Economic Development and Tourism in Limpopo Gauteng Enterprise Propeller Forest Industry Education and Training Authority (FIETA) Canada-SA Teacher Development Project International Institute for Management Development NEDLAC CCMA Pan African Productivity Association Asian Productivity Association World Confederation of Productivity Science

30. SUPPORT SERVICES: HR, FINANCE, IT & ADMINISRATION

31. HUMAN RESOURCES Successes: Implementation of Balanced Scorecard linked to Performance Management System APO partnership relating to capacity building of NPI employees Improved Labour relations

32. GOVERNANCE Unqualified audit opinion Fully compliant with PFMA Sound Risk Management processes

33. FINANCIAL REPORT

34. 2006/07 FOCUS

35. CURRENT FOCUS National Productivity Movement championed by DoL Minister Promoting collaboration between workers and management Improving productivity in micro and small enterprises Productivity improvement interventions in the Public Sector Development of unemployed graduates to facilitate productivity improvement in organisations Sector focus Impact of Labour legislation on the labour market (partners DOL, NPI, CCMA, Nedlac, Naledi) Sectoral studies Strengthening relationships with NPOs Building the capacity of NPI employees through APO partnership

36. CHALLENGES

37. Capacity – limited financial and human resources given our National mandate Delays in execution of project phases caused by third parties e.g. DOE having not received permission from provinces for the release of teachers to be trained by the NPI. Promoting productivity awareness amongst all stakeholders National Productivity Accord supported by social partners