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16 April 2003

NDPW TRANSFORMATION & RESTRUCTURING:PRESENTATION TO THE PORTFOLIO COMMITTEENDPW Project Plan

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Contents

• NDPW Transformation Project Background and Overview Role-players, roles and responsibilities

• Transformation Project Plan

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Change imperatives

• Need for client focused approach

• Government as a whole was changing

• Client becoming more aware of service standards

• Public Works function under review in other parts of the world

• Transformation of DPW continuous and efficiency driven

• Infusing business principles in our approach

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NDPW Transformation Project Background and Overview

• The Department was faced with major challenges in the delivery of it’s core mandate as envisaged by the new government strategy, key among them being the following:

– An inability to maximize the R.O.I. on State Assets due to the non-existence of an Asset and Property Management wing

– An inability to deliver services quickly and efficiently to client departments

– An inability to take leadership of the Industries within which the Department operates and in particular to lead an Industry Wide Transformation effort

• The Department then embarked on a transformation effort aimed at changing this state of affairs and adopted the following key strategic drivers to inform its transformation route

– CUSTOMER FOCUS: To provide service delivery excellence through customer focused world class operations.

– OWNERSHIP: To maximise government shareholder value through best practice immovable asset portfolio management practices.

– POLICY: To provide leadership in the setting and monitoring of construction and property related transformation programmes, policies and regulatory guidelines governing government and the industries at large.

– POVERTY: To maximise the impact of government initiatives on the poor by driving the effective implementation of government’s community development programmes

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Policy & Ownership

• Owner

• Policy development

• Social development

The strategic focus of the department will rest on the 2 interlinked legs.

New NDPW

Shared Services

Operations

• Finance

• HR

• IS

• Strategic Property Asset Management

• Accommodation Services

• Strategic Planning

• Customer focus

• Service delivery

Compliance guidelines and directivesImplementation in regions

HEAD OFFICE

REGIONAL OFFICES

HEAD OFFICE

REGIONAL OFFICES

• Decentralization

• Single Point of Accountability

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NDPW Transformation Project Background and Overview….

• The Department was on the brink of implementing a Transformation Plan based on different timelines when Resolution 7 & 8 of 2002 were introduced as a Framework for the Transformation of the Public Service.

• The Department then aligned its Transformation Implementation to this government wide effort.

• The Department was faced with a massive challenge as it was not merely restructuring but truly seeking to Transform itself into a commercially robust entity able to meet its private sector competitors on equal footing and able to deliver maximum return to the State and it’s Clients whilst operating within the bureaucratic confines.

• The Department rolled out its Transformation during August 2002.

• During this Implementation Phase a lot of grievances were received arising from the matching and placing exercise.

• This prompted the new Director General in consultation with the Minister to order a review of the whole project, the outcome of which resulted in the whole process being reviewed.

• The decision to review gave members of staff and the management team another opportunity to critically analyze the whole project and to reassess the new Implementation Framework.

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NDPW Transformation Project Background and Overview….

• The Project Team that is managing transformation consists of a Project Manager and a multi disciplinary project team reporting to him.

• This Project Team is responsible for the delivery of the entire Transformation effort which is aligned to the 30 June 2003 deadline of implementing Resolution 7 & 8 of 2003.

• Transformation will continue beyond the 30th of June but the people issues will have been resolved and finalized by then.

• The Team has developed a Project Plan Detailing how Transformation will be delivered

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Contents

• NDPW Transformation Project Background and Overview Role-players, roles and responsibilities

• Transformation Project Plan

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The transformation project plan has a number of sub-projects that must be well coordinated to ensure successful outcomes

DPSA Report Review

To-Be Processes

To-Be Org Structure

To-Be operational policies & procedures

To-Be IT/IS

Ideal To-Be NDPWCurrent As-Is NDPW

Close-out reports

Matching & Placement

Change management

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For each of these sub-projects there are specific activities and expected outcomes with cross dependencies and timelines.

DPSA Report Review

To-Be Processes

To-Be Org Structure

To-Be operational policies & procedures

To-Be IT/IS

Close-out reports

Matching & Placement

Change management

Activities TimelinesDependenciesOutcomes Resources

Critical Review

Critical Review

Critical Review

Critical Review

Critical Review Critical Review

Critical Review

Critical Review

Critical Review

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Overview

01/02

20 27

Jun-03 Jul-03Apr-03 May-03

28 2

Mar-03

25 16 23 621 259 447 1330 11 1814 11 18

DPSA Report Review

Process mapping

Operational Policies & Procedures

Structural review

Space Planning

IT/IS Systems

Matching & placement

Phase 1 Closeout Reports

Change Management

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Change Management

01/02

20 27

Jun-03 Jul-03Apr-03 May-03

28 2

Mar-03

25 16 23 621 259 447 1330 11 1814 11 18

DG Messages to All Staff

Teleconferences

Pamflets to All Staff

WorxNews

Vistits/Meetings (EMC/TMC/Manco/DTT/ALL Staff

Frequently Asked Questions Reply

Leaflets

Counselling/Motivational

Speakers/Team Building Sessions

Change Management

Dipsticking

Project Dependencies: NoneCritical Success factors: Accessibility to all stakeholders, Project Reliability, Timeous Reporting

Team Resources: C. Alexander, L. Mxenge, K. Oagile, Communications et alOutcome: Approved activity planning

Start: 01/04/2003 Continuous

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DPSA Report Review

01/02 Jun-03Apr-03 May-03

28 2

Mar-03

25 16 2321 279 647 30 13 2014 11 18

Meetings: Meetings with DPSA, Internal Stakeholders, DTT, DG’s Office re outcomes of DPSA report

Team Resources: C. Alexander, K. Oagile, L. Fakazi, G. Sebati, L. Mabuntana, J. Tsimo, B. Annandale et alOutcome: Approved activity planning

Documentation drafting: Report formulation responding to outcomes of DPSA report with activity planning going forward

Start: 13/03/03Finish: 20/03/03

Project Dependencies: NoneCritical Success factors: Availability of stakeholders, formal approval of activity planning by stakeholders (Minister, DG, DPSA)

Start: 17/03/03Finish: 27/03/03

To-Be Processes, Policies & Procedures

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To-Be Processes, Operational Policies & Procedures...

01/02 Jun-03Apr-03 May-03

28 2

Mar-03

25 16 2321 279 647 30 13 2014 11 18

Process mapping:•Design and delivery of draft high level processes•Detailed design consultations•Presentations / Roadshow on detailed designs (RO & HO)•Delivery of final process mapping•Approval of final report

Team Resources: C. Alexander, L. Dhlomo, J. Tsimo, P. Chiapasco, J. Vermaak et alOutcome: Approved To-Be Processes, Policies & Procedures and Organisational Structure

Start: 26/03/03Finish:30/04/03

Project Dependencies: Approved activity planCritical Success factors: Organisational buy-in through extensive consultation

Operational Policies & Procedures:•Review of existing policies & procedures per process•Design and delivery of draft policy and procedure manuals•Presentations / Roadshow on final policy and procedure manual•Incorporation of input from road show•Approval of operational policies & procedures

Start: 04/04/03Finish:30/04/03

To-Be Structure & space planning

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To-Be Organisational Structure including Space Planning

01/02 Jun-03Apr-03 May-03

28 2

Mar-03

25 16 2321 279 647 30 13 2014 11 18

Structural review:•Review with TMC / Senior management•Review with Managers per cluster•Review with HR & Finance (costing)•Review with Office of the DG•Approval of structure

Team Resources: C. Alexander, G. MacMaster, J. Vermaak, J. Tsimo, S. Mosegomi et alOutcome: Approved and Affordable To-Be Organisational Structure

Start: 28/03/03Finish:24/04/03

Project Dependencies: Alignment of To-Be ProcessesCritical Success factors: Organisational buy-in through extensive consultation, structure alignment with ENE budget estimates

Start: 07/04/03Finish:25/04/03

Space Planning•Draft space requirements•Costing and layout•Approval of space requirements•Final space requirements•Commence with acquisition of accommodation

To-Be IT/IS

Costs made up of:•Staffing costs•Annual increases•Annual bonuses•Merit awards•Notch increments•Severance packages

•Pension payouts•Leave liability

•Deployment costs•Recruitment costs

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To-Be Organisational IT/IS Systems

IT/IS Systems:•Procurement of enterprise architecture systems to design To-Be IT/IS systems•Input of user needs based on To-Be Processes•Design of required enterprise architecture•Procurement of systems•Implementation

•Testing•Roll-out

Team Resources: C. Alexander, N. Mosupye, J. Tsimo, L. Mabuntana et alOutcome: IT/IS infrastructure enabling To-Be business needs

Start: 01/04/03Finish:30/07/03

Project Dependencies: Inputs from To-Be Processes, Operational Policies & ProceduresCritical Success factors: Alignment with user needs, IT budget availability, procurement and implementation roll-out time

Matching and Placement

01/02

20 27

Jun-03 Jul-03Apr-03 May-03

28 2

Mar-03

25 16 23 621 259 447 1330 11 1814 11 18 30

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Matching & placement and project closeout

Matching & placement:•Design and DPSA approval of matching & placement criteria and implementation plan•Compilation of all data / information required to apply criteria•Internal matching & placement•Advertising within Dept & External for SMS•Consultation letters to excess staff•Interviews & appointments•Development of excess & vacancy list•Open up applications for severance package & VERP•IDTT approval re external adverts•Second round of advertising (external)•Shortlisting•Interviews (all adverts done before 1 June)•Interviews & appointment deadline•Counselling & severance packageReports:•Draft report on transformation•Final report on transformation

Team Resources: C. Alexander, K. Oagile, L. Fakazi, G. Sebati, P. Chiapasco, L. Mabuntana et alOutcome: Populated To-Be organisational structure

Start: 14/04/03Finish:29/07/03

Project Dependencies: Approved To-Be StructureCritical Success factors: Approved matching & placement criteria and implementation, availability of data / information required to implement criteria

01/02

20 27

Jun-03 Jul-03Apr-03 May-03

28 2

Mar-03

25 16 23 621 259 447 1330 11 1814 11 18*

Start: 01/08/03Finish:18/08/03

Closeout Reports:•Draft report on transformation•Final report on transformation

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There are additional key factors for that top and senior management need to keep in mind for achieving successful transformation

Critical Success Factors

• 100% buy-in by top management to the aims and objectives of transformation

• Transformation effort must be driven from top management level

• Strong involvement and support required from senior management particularly

in the cascading of transformation initiatives to lower levels of the Department

• Accessibility of top and senior management to staff across the organisation

• Accessibility of (correct) information to staff across the organisation

• Clients must be increasingly informed of envisaged service delivery

improvements and major transformation project milestones

• Financial and other resources must be available for meaningful participation

and effective project implementation

• Work teams must pro-actively identify and manage project risks

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Conclusion-Key challenges

• Alignment DPSA process with Government wide transformation (Resolutions 7 & 8)

-Time pressures

-Interpretation issues

• Transformation fatigue

• Morale issues

• Improving communication with all levels of staff

• Increasing pace of change

• Finalising the new structure (and costing thereof)

• Expediting appointment process

• Stabilising leadership core

• Need to change mind-sets

• Need to establish efficiency to inform continuous transformation of DPW.