WHO IS PRODUCTIVITY SA PRODUCTIVITY SOUTH AFRICA PRESENTATION

WHO IS PRODUCTIVITY SA? PRODUCTIVITY SOUTH AFRICA PRESENTATION ON THE STRATEGIC PLAN AND APP 2017/2018 TO THE PORTFOLIO COMMITTEE ON LABOUR 04 May 2017 Presented by: Mothunye Mothiba Chief Executive Officer 1

PRESENTATION OUTLINE • • • Mandate of Productivity SA Functions of Productivity SA Vision and Mission Productivity SA Value Proposition Performance on APP, 2016/2017: Preliminary Annual Report MTSF Report 2014 - 2016 Key Strategic Objectives Achievements - Highlights Challenges/Reasons for deviation Remedial Actions Performance per Programme 2016/2017 Financial Expenditure Report – 2016/2017 Annual Performance Plan – 2017/2018 2

THE MANDATE OF PRODUCTIVITY SA Productivity SA is established in terms of section 31 of the Employment Services Act, No. 4 of 2014 as a juristic person. It is an Entity of the DOL, with the mandate to promote employment growth and productivity, thus contribute to South Africa’s socio-economic development and economic efficiency. Governed by a Tripartite Board appointed in terms of section 33 of the Act, consisting of 7 Members: - Chairperson - Six members Ø 4 drawn from NEDLAC (2 representing Organised Labour and 2 Organised Business), and Ø 2 members representing the Government.

THE FUNCTIONS OF PRODUCTIVITY SA Section 32 of the Act read together with s 2 (1) (e) and (f), and s 7 enjoins Productivity SA to amongst others, develop relevant productivity competencies and competitiveness in workplaces, with a focus on the following core functions: (i) To promote employment and income growth, and workplace productivity; (ii) To improve the employment and re-employment prospects of employees facing retrenchments and those retrenched; (iii) To promote social dialogue and a culture of productivity and competitiveness in the workplace and all spheres of the nation’s economic and community life; and (iv) To provide productivity improvement and competitiveness measures; (v) Research on productivity and competitiveness related matters, and collection and supply of information. • 4

VISION To lead and inspire a productive and competitive South Africa.

VISION & 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” 6 6

PRODUCTIVITY SA VALUE PROPOSITION Service Offering: HOW : Productivity and Competitiveness Improvement Solutions to accelerate wealth and decent employment creation. By enhancing the productive capacity and operational efficiency of enterprises throughout the business lifecycle to accelerate wealth and decent employment creation.

ANNUAL PERFORMANCE PLAN (APP) 2017/2018 8

STRATEGIC OUTCOME ORIENTED GOALS Productivity SA embraces the National Development Plan, The Medium Term Strategic Framework 2014– 2019 and the Industrial Policy Action Plan – as reflected in the following Key Outcomes: • • • Outcome 4: Decent employment through inclusive growth; Outcome 5: A skilled and capable workforce to support an inclusive growth path; Outcome 6: An efficient, competitive and responsive economic infrastructure; Outcome 11: Create a better South Africa, a better Africa and a better world Outcome 12: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship Section 32 of the Employment Services Act read together with s 2(1)(e) and (f), and s 7 enjoins Productivity SA to amongst others, develop relevant Productivity and Competitiveness Competencies in workplaces in response to the National Developmental Agenda

STRATEGIC OBJECTIVES • Strategic Objective 1: Strengthen the institutional capacity of Productivity SA to deliver on its mandate and be financially sustainable (Outcome 5 &12) • Strategic objective 2: Provide support to Government Programmes aimed at sustainable employment and income growth (Outcome 4 & 5) • Strategic objective 3: Provide support to companies facing economic distress to retain jobs (Outcome 4 & 5) • Strategic objective 4: Contribute to employment and income growth through research, information generation and dissemination (Outcome 4, 6, 11 & 12) • Strategic objective 5: Promote social dialogue and a culture of productivity and competitiveness in the workplace and community life (Outcome 4 &12)

STRATEGIC PROGRAMS • Programme 1: Corporate Services • Programme 2: Human Resource Management • Programme 3: Marketing and Communication • Programme 4: Productivity Organisational Solutions • Programme 5: Value Chain Competitiveness • Programme 6: Turnaround Solutions

STRUCTURE AND ESTABLISHMENT systems, productivity and PROGRAMME economic sectors as well as through the collection and supply of CURRENT POSITIONS TOTAL HEADCOUNT VACANT HEADCOUNT PROGRAMMES FUNDED IN TERMS OF SECTION 40 A OF THE EMPLOYMENT SERVICES ACT: OFFICE OF THE CEO 3 1 4 CORPORATE SERVICES 13 4 17 HUMAN RESOURCES 4 1 5 MARKETING 8 0 8 PRODUCTIVITY ORGANISATIONAL 11 1 12 SOLUTIONS VALUE CHAIN COMPETITIVENESS 11 1 12 (RESEARCH & KM) CAPE TOWN 7 1 8 KWAZULU NATAL 6 1 7 TOTAL: 63 10 73 PROGRAMMES FUNDED IN TERMS OF SECTION 40 B OF THE EMPLOYMENT SERVICES ACT: VALUE CHAIN COMPETITIVENESS 20 2 22 (WORKPLACE CHALLENGE) TURNAROUND SOLUTIONS 10 2 12 TOTAL: 30 4 34 GRAND TOTAL 93 14 107

APP 2017/2018 TARGETS PER STRATEGIC OBJECTIVE 13

STRATEGIC OBJECTIVE 1: STRENGTHEN THE INSTITUTIONAL CAPACITY OF PRODUCTIVITY SA TO DELIVER ON ITS MANDATE AND BE FINANCIALLY SUSTAINABLE PROGRAMME PERFORMANCE INDICATOR TARGET Corporate Services Percentage increase in services income to cover operational costs and create reserves 15% Percentage improvement in achievement of APP targets 75% Percentage compliance with PFMA and other relevant legislative (unqualified audit) 100% compliance with SCM prescripts BBBEEE level achieved Level 7 Business model Innovation – Report on Organisational Review and Design to reposition Productivity SA as a centre of excellence developed and recommendations implemented 1 Number of climate surveys conducted and team charters implemented 1 Climate Survey Percentage achievement on the implementation of organisational training plan 80% Completion of Annual Training Plan Number of review reports on the implementation of the Performance Management System 2 Performance Management Reports Human Resources

STRATEGIC OBJECTIVE 1: STRENGTHEN THE INSTITUTIONAL CAPACITY OF PRODUCTIVITY SA TO DELIVER ON ITS MANDATE AND BE FINANCIALLY SUSTAINABLE PROGRAMME PERFORMANCE INDICATOR TARGET Human Resources Turnaround time to fill positions Within 4 months of vacancy being advertised Number of Human Resources policies designed or reviewed Number of Productivity consultants and practitioners accredited as Kaizen practitioners 4 Policies Value Chain Competitiveness Accredited programme in place

STRATEGIC OBJECTIVE 2: PROVIDE SUPPORT TO PROGRAMMES AIMED AT SUSTAINABLE EMPLOYMENT AND INCOME GROWTH PROGRAMME PERFORMANCE INDICATOR TARGET Value Chain Competitiveness Number of companies in industry sectors including SEZs and industrial parks supported productivity and competitiveness enhancement programmes 200 Number of Black industrialists supported through Productivity and competitiveness enhancement programmes 9 Productivity Organisational Solutions Number of Small enterprises and cooperatives on ESD programmes supported through Productivity and operational efficiency enhancement programmes 5500 Value Chain Competitiveness/ Turnaround Solutions Implement the Integrated Monitoring and Evaluation System implemented in participating companies Develop and pilot an integrated tool/ M&E System that will be implemented in participating enterprises/industries

STRATEGIC OBJECTIVE 3: PROVIDE SUPPORT TO COMPANIES FACING ECONOMIC DISTRESS TO RETAIN JOBS PROGRAMME PERFORMANCE INDICATOR TARGET Turnaround Solutions Number of jobs saved in companies facing economic distress 7500 Number of companies facing economic distress supported through Turn-around Strategies to retain jobs (establish FF) 150 Number of companies (retrenched workers/vulnerable workers) supported through microenterprise development and selfemployment support programmes 150

STRATEGIC OBJECTIVE 4: CONTRIBUTE TO EMPLOYMENT AND INCOME GROWTH THROUGH RESEARCH, INFORMATION GENERATION AND DISSEMINATION PROGRAMME PERFORMANCE INDICATOR TARGET Value Chain Competitiveness Number of research reports on priority sectors produced and disseminated 4 Reports Number of statistical reports on productivity and competitiveness published 2 reports Productivity Organisational Solutions Number of productivity modules NQF accredited (tools & techniques) 4 Accredited modules Value Chain Competitiveness Web-based solutions developed and rolled out Develop an online resource centre and pilot

STRATEGIC OBJECTIVE 5: PROMOTE SOCIAL DIALOGUE AND A CULTURE OF PRODUCTIVITY AND COMPETITIVENESS IN THE WORKPLACE AND COMMUNITY LIFE PROGRAMME PERFORMANCE INDICATOR TARGET Marketing and Communications Communication and marketing strategy developed and implemented Marketing and communication strategy approved 9 Number of stakeholders and strategic partners established and maintained Number of productivity and competitiveness seminars held 4 Number of educational and awareness campaigns conducted 4 Number of productivity awards held 10 Productivity Organisational Solutions Number of productivity champions, ETD, SDFS trained across the business, labour and government spectrum 200 Value Chain Competitiveness Number of workplace forums /capacity building workshop 30

BUDGET 2017/2018 20

BUDGET 2017/18 -2019/20 Audited Outcome Preliminar y outcome Revised estimate 2013/14 30 177 2014/15 43 661 2015/16 42 170 2016/17 47 736 2017/18 48 017 2018/19 50 446 2019/20 53 498 8 911 8 594 8 980 9 489 10 068 10 630 11 384 14 038 19 936 22 710 12 655 14 391 15 286 15 980 15 514 11 664 10 105 23 975 26 221 27 696 29 534 16 048 19 438 13 969 97 807 78 720 83 364 88 199 741 325 – – 99 259 191 662 177 417 187 421 198 595 Medium-term estimate R thousand Administration Productivity organisational solution Value chain competitiveness Workplace challenge Turnaround solutions – Transnet Total expense 7 84 688 104 040

BUDGET INCOME

THANK YOU 23