strategic corporate plan overview

Strategic Corporate Plan Overview

South African Post Office Parliamentary Portfolio Committee on Communications

18 March 2011

2011/2012 Financial Year

1

FAgenda

©© Copy Right South African Post Office (Pty) LTDCopy Right South African Post Office (Pty) LTD

2

Chairperson’s Overview

Overview of the SAPO Strategic Plan

Financial Overview

Conclusion

Chairperson’s Overview


3

•Review of the SAPO Governance Structure

•

Group Holding Structure

•

Subsidiaries

•

Reporting, Monitoring and Oversight between Group Holding Board and Subsidiary Boards

•Implementation of the New Companies Act which will come into effect on 01 April 2011

•

The Act provides for stricter accountability and transparency requirements for state owned

companies and public companies.

•

Review of the SAPO Articles of Association and Shareholders’

Compact

•Compliance with King III Code on Good Corporate Governance

•

Review of SAPO Committees to include Ethics and Nominations Committees etc.

•

IT Governance

•

Sustainability reporting

•

Risk based approached to Audit

•Postbank Act

•

Registration of Postbank as a Public Company in terms of the Companies Act;

•

Postbank licensing process i.t.o. the banks Act

Review of the SAPO Governance SystemsCritical Success Factors


4

•Review of the SAPO Governance Structure

•

Group Holding Structure & Subsidiaries

•

Reporting, Monitoring and Oversight between Group Holding Board and

Subsidiary Boards

•Implementation of the New Companies Act which will come into effect on 01 April 2011

•

The Act provides for stricter accountability and transparency requirements for

state owned companies and public companies. ‐

Review of the SAPO Articles &

Shareholders’

Compact

•Compliance with King III Code on Good Corporate Governance

•

Review of SAPO Committees to include Ethics and Nominations Committees etc.

•

New King III requirements i.e. IT Governance; Sustainability reporting etc.

•Postbank Act

•

Registration of Postbank as a Public Company in terms of the Companies Act;

•

Postbank licensing process i.t.o. the Banks Act

Review of the SAPO Governance SystemsCritical Success Factors


5

•Appropriate Labour Model for SAPO ‐

SAPO’s Strategy in response

to the Proposed Labour Law amendments & Appropriate flexible

labour model for SAPO;

•Succession Planning ‐

Strategy on the retention of scarce and critical

skills

•Change Management‐

Organisational culture and behaviour

•Performance Management‐

Balanced Business Scorecard

•Employee Development ‐

Continuous Education and Training; Skills

Development & Recognition of Prior Learning

•Employee Wellness ‐

Employee Assistance Programmes

•Labour Relations –

Strengthening relationship with the trade unions

Addressing People issues: Change management Critical Success Factors


6

•Review of the SAPO Business and Operating Model

•Strengthening the SAPO Information Technology (IT) Platform

•Diversification of Revenue

•

Digital Business

•Continuous Strengthening the SAPO Procurement Processes

•Funding Plan for the SAPO Group

Other Major SAPO Projects Critical Success Factors


7

Strategy Overview


8

Vision, Mission & ValuesVision, Mission & Values1.1.

2.2.

3.3. Social MandateSocial Mandate

Regulatory & Legislative Framework Regulatory & Legislative Framework

4.4. Universal Service ObligationUniversal Service Obligation

South African Post Office Agenda


5.5. Business Restructuring Business Restructuring

6.6. Business Unit FocusBusiness Unit Focus

7.7. Critical Success Factors Critical Success Factors

8.8. Support Units FocusSupport Units Focus

9

South African Post OfficeVision & Mission Statement


MISSIONWe will enable

the nation to efficiently connect with the world by distributing

information, goods, financial and Government services; leveraging

our broad

reach and embracing change, technology and innovation

VISION To be recognized

among the Leading Providers of Postal and Related services in

the World

10

South African Post OfficeCore Values


We

have

a

passion

for

our

customers

and

will

meet

their

specific

needs

through excellent service.

We

aim to contribute positively to our communities and environment.

We

treat each other with respect, dignity, honesty and integrity.

We

recognize and reward individual contributions.

We

embrace diversity in the way we conduct business.

11


2.2.










12

South African Post OfficeFramework


13

South African Post OfficeLegislative Environment

ACTSPostal ActsPFMA Financial Services Acts(FAIS, FICA,NPS, NCA,etc)Electronic and Communications Act Labour Legislation(LRA,OHSA, BCEA,etc) Inter‐Governmental Relations Framework Act 13Companies Act and AmendmentsAARTOConsumer Protection ActOther applicable legislation

REGULATIONSPostal Regulations ‐ ICASACourier Regulations – ICASAFinancial Regulations – FSB, PASA and

Savings Bank RegulationsKing IIIOther codes (DTI etc)

INTERNATIONAL

Universal Postal Regulations

Kyoto convention

World Customs standards & Convention


14

Legislative LandscapeKey Regulatory & Legislative Changes

SA Post Office Legislation and Regulations

SA Postbank ActAmendment to Postal Services ActAmendment to SA Post Office ActEconomic Regulatory Framework ‐ ICASA

Business Model ReviewGroup Governance Structure ReviewOrganisational Structure ReviewFunding Model


Emerging Legislation and Amendments

Labour Legislation AmendmentsEmployment Services BillConsumer Protection ActImplementation of AARTO

Labour Model of the organisationProducts and Services Information Security and Policies

15


2.2.










16

Improved Quality of Basic Education.

A long and healthy life for all South Africans.

All people in South Africa are and feel safe.

Decent employment through inclusive economic growth.

A skilled and capable workforce to support an inclusive growth path.

An efficient, competitive and responsive economic infrastructure network.

Vibrant, equitable and sustainable rural communities with food security for all.

Sustainable human settlements and improved quality of household life.

A responsive, accountable, effective and efficient local government system.

Environmental assets and natural resources that are well protected and continually enhanced.

Create a better South Africa and contribute to a better and safer Africa and World.

An efficient, effective and development oriented public service and empowered, fair inclusive citizenship.

Social MandatePriorities : State of the Nation


17

South African Post OfficeAlignment with State of the Nation Address


GOVERNMENT PRIORITIES GOALS POST OFFICE PROGRAMS

Building a Prosperous Society

Improve Service delivery Customer centricity and shared services improvement

Service targets as per mandate Job creation Jobs created through our capital

investment programs such as point of presence expansion, IT investment & address expansion

Labour Model Skills development ICT skill development

E‐Cadre, Learnerships, CSI program

Fight against crime & corruption Crime buster hotlineHealth Wellness and HIV programs

Rural development program Branch & address expansion

Building

a

Responsive,

Accountable,

Effective

and

Efficient

Local

Government Structure

CSI Programmes

Building

a

better

Africa

and

a

better

World UPU, SADC, SAPOA, PAPU

18


2.2.










19

Universal Service ObligationAddress Roll Out target


PROVINCE REQUIRED 2009/10 2010/11 2011/12 2012/13 2013/14

Free State 432,836 106,209 65,325 65,325 65,325 65,325

Northern Cape 45,542 18,212 5,466 5,466 5,466 5,466

North West 760,920 98,751 132,434 132,434 132,434 132,434

Limpopo 1,249,408 317,419 186,398 186,398 186,398 186,398

Mpumalanga 978,569 253,828 144,948 144,948 144,948 144,948

Gauteng 900,358 118,289 156,414 156,414 156,414 156,414

Western Cape 825,840 88,548 147,458 147,458 147,458 147,458

Eastern Cape 1,119,032 384,480 146,910 146,910 146,910 146,910

KwaZulu Natal 1,340,411 288,725 210,337 210,337 210,337 210,337

TOTAL 7,652,916 1,674,461 1,195,690 1,195,690 1,195,690 1,195,690

20

Universal Service ObligationAdditional Point of Presence


PROVINCE REQUIRED CURRENT 2010/11 2011/12 2012/13 2013/14 TOTAL

Eastern Cape 452 359 6 6 6 6 24

Free State 206 164 2 2 2 2 8

Gauteng 693 358 22 22 22 22 88

KwaZulu Natal 651 382 15 15 15 15 60

Limpopo 331 289 2 2 2 2 8

Mpumalanga 232 199 1 1 1 1 4

Northern Cape 78 120RE‐BALANCING & RE‐LOCATIONS

North West 218 285

Western Cape 334 314 2 2 2 2 8

TOTAL 3,195 2,470 50 50 50 50 200

21


2.2.










22

MAIL BUSINESSMAIL BUSINESS LOGISTICSLOGISTICS FINANCIAL SERVICESFINANCIAL SERVICES NEW BUSINESSESNEW BUSINESSES

TRANSPORT TRANSPORT

I.C.T. SERVICES

South African Post OfficeCurrent Business Model

PROPERTIES

SOUTH AFRICAN POST OFFICE [GROUP]SOUTH AFRICAN POST OFFICE [GROUP]

CONSUMER SERVICES

CORPORATE & BUSINESS SUPPORT

23

MAIL MAIL BUSINESSBUSINESS

DIGITAL DIGITAL BUSINESSBUSINESS

S.A. POSTBANK S.A. POSTBANK [LTD][LTD]

OPERATING DIVISIONS

South African Post OfficeProposed Business Model

SUBSIDIARIES

SOUTH AFRICAN POST OFFICE [GROUP]SOUTH AFRICAN POST OFFICE [GROUP]

CORPORATE AND SUPPORT SERVICES

PROPERTIESPROPERTIES LOGISTICSLOGISTICS


CHANNELS

NON NON POSTBANK POSTBANK FINANCIAL FINANCIAL SERVICESSERVICES

24


2.2.










25

LO

GIS

TIC

S

MAIL BUSINESS

Postal Business

Consum

erServices

Co

rpo

rate

Serv

ices

Busine

ss Sup

port Services

TRANSPORT

Communi- cation

Distribution &

Delivery Network

Mailroo

m

Man

agem

ent &

Add

ressing

Solution

s

Direct

Commun

ication

eSolutions &

Fulfillm

ent

Corporate Services

Postal Solutions

CommunicationElectronic Fulfillment


Mail BusinessCurrent Business Model

26

LO

GIS

TIC

S

MAIL BUSINESS

Postal Business

Consum

erServices

Co

rpo

rate

Serv

ices

Busine

ss Sup

port Services

TRANSPORT

Communi- cation

Distribution &

Delivery Network

Mailroo

m

Man

agem

ent &

Add

ressing

Solution

s

Direct

Commun

ication

Corporate Services

Postal Solutions

Communication

ePOSTALINTEGRATED

INTO “DIGITAL”BUSINESS


Mail BusinessProposed amendments

Alterna

tive cha

nnels

27

Mail BusinessCore Focus Areas


Mail Business

Sustainability

REVENUE GROWTHPromotional of Direct MailFocus on the Box Rental BusinessReview and Rationalisation of Products and Pricing

OPERATIONAL EXCELLENCEImplementation of Lean initiativesRationalisation of infrastructureContinuous improvement of service delivery

RETENTION OF CUSTOMERSImplementation of Value Added Serviceo Track and Trace Upgradeo Mailroom Serviceso Postal Delivery Database

28

Mail BusinessStrategic Projects


Address roll‐out to Urban & Rural Areas ‐

3 587 070m Addresses in 3Yrs

Address Management ‐

Enhancement of the N.A.M.S. [2011]

Further implementation of IT systems, Track & Trace & RFID [2011]

Automation of Mail Centres [2012]

Addressing & Postcode system [2011 & 2012]

ISO 9001:2000 Accreditation Implementation [2011]

Employees & Management Development Programmes ‐

Ongoing

1

3

5

7

2

4

6

Implementation of Lean Initiative [2011]8

29

New Digital BusinessProposed Model


Decentralised Printing Solutions

Mobile Based Solutions

Internet Based Solutions

Self Service Solutions

Business Communication & Transaction Solution ProviderBusiness Communication & Transaction Solution Provider

Trust & Identity Management

“ICT”

Services

Busine

ss Sup

port Services

Corporate Services

Consum

erServices

Alterna

tive cha

nnels

30

Online Philately Shop


Within ePostal Online [Proof Of Concept]

31


Online Philately Shop Within ePostal Online [Proof Of Concept]

32



33


34

Virtual Post Office


Proof Of Concept

35

Virtual Post OfficeHome Page

36

Virtual Post OfficeSpecialised “Counters”

37

Virtual Post OfficeProduct Page

38

Virtual Post OfficeProduct Page

39

Virtual Post OfficeSelf Service Channel

40

LOGISTICS BUSINESS

COURIER

Small parcels &

documen

ts

0‐30

kg doo

r to doo

r coun

ter to cou

nter,

coun

ter to doo

r an

d do

or

to cou

nter

Han

dling & delivery of

parcels, m

in 20kg within

72 hou

rs, d

oor to doo

r,

point to point and

Re

tailers

Solution

s covering

point

of origin to point of

consum

ption eg dem

and

plan

ning, w

areh

ousing, in

& outbo

und logistics etc


Logistics BusinessCurrent Business Model

Busine

ss Sup

port Services

Corporate Services

Consum

erServices

FREIGHTFULL PARTY LOGISTICS

TRANSPORT

Alterna

tive cha

nnels

41

SPEED SERVICES

COURIERS

TARGET

MARKET

Consumer

/

Business

Business Business Bulk

SERVICE

OFFERING

Courier

services

involving

counters

Courier

and

Freight services

Consolidated

mini

freight containers

COMPETITIVE

ADVANTAGE

The

Counter

(Post

Office

Network)

–

Affordability

National

footprint,

no

sub‐

contractors

Sell space

Sealed containers

No tampering

POSITIONING No‐Frills Premium Reliability

Legal Profession

Move

legal

documents

between

members

Access

to

the

back

offices

of

the courts

Secure

Logistics BusinessValue Proposition & Core Offering

42

Logistics BusinessStrategic Projects


Accelerate the Docex integration into Logistics

Transport Consolidation

Branding of the Logistics

Finalisation of the SSC/CFG Integration

Revenue Growth

1

3

5

2

4

43

LO

GIS

TIC

S

FINANCIAL SERVICES

Assuran

ce &

Insurance

Money Transfers

Savings,

Tran

sactiona

l &

Investmen

ts

Gov

ernm

ent loan

s

Private loan

s

Gov

ernm

ent pa

ymen

ts

Private pa

ymen

ts

Dom

estic tran

sfers

Internationa

l transfers

Consumer Banking

Facilitated Lending

Payments Insurance

Busine

ss Sup

port Services

Corporate Services

Consum

erServices


Financial ServicesCurrent Business Model

44

LO

GIS

TIC

S

S.A. POSTBANK

Money Transfers

Savings,

Tran

sactiona

l &

Investmen

ts

Loan

s

Dom

estic tran

sfers

Internationa

l transfers

Consumer Banking

Lending Payments

Busine

ss Sup

port Services

Corporate Services

Consum

erServices


PostbankProposed amendments

Alterna

tive cha

nnels

45

46

Postbank CorporatisationKey milestones


Milestone Activities

Implementation of the required organisation

and governance structure

Identification of assets and liabilitiesBoardKey office bearers

Registration of the company In accordance with the required processAppointment of auditorsCompany secretaryDirectors

Transfer of function between Post Office and

PostBank

Non banking functions transferred to Post OfficeBanking functions transferred to PostBank

Designation notice Designates PostBank a participant in the NPS

Transfer of assets and liabilities Valuation of assets and liabilitiesTerms of transfer of assets and liabilitiesEnable transfer on promulgated date of transfer

Transfer of staff Identification of staff and agreement on terms of

transferEnable transfer under section 197 of the LRA

47

Postbank CorporatisationKey milestones


Milestone Activities

Technology Enablement Addressing gaps identified in due diligence and associated audits Segregation between SAPO and PostBank for banking specific operationsImplementation and upgrading or required banking technologyAssessing capabilities not resident within SAPO and sourcing

People Enablement Addressing gaps identified in due diligence and associated audits Training and development to meet regulatory requirementsRecruitment of required skill

Process Enablement Processing and data segregation between SAPO and PostBankBanking functions transferred to PostBank

Conclusion of a co‐operation

agreement between

shareholder and PostBank

Transfer pricing and operating

Mock and Final Application Business strategyOperational strategyGovernance and compliance frameworkFinancial summary, projections and funding requirementsRegulatory forms

PostbankStrategic Projects


Separation of Postbank Business from Financial Services

Postbank Corporatisation Process

Governance Structures

Separation of Postbank from SA Post Office

Positioning of SA Postbank

1

3

5

2

4

48

LO

GIS

TIC

S

Physical Outlets

Tran

sport

Alternative Channels

Electronic Channels

Post Offices, Thusong Centre’s, Retail

Agencies

ATM

Alternative retail agencies

Access To Internet & Self Service

Channels

Consumer ServicesCurrent model

Busine

ss Sup

port Services

Corporate Services

TRANSPORT

CONSUMER SERVICES


49

LO

GIS

TIC

S

Physical Outlets

Tran

sport

Alternative Channels

Electronic Channels

Post Offices, Thusong Centre’s, Retail

Agencies

Alternative retail agencies

Access in physical outlets to ATM,

Internet & Self Service Channels

Consumer ServicesProposed amendments

Busine

ss Sup

port Services

Corporate Services

TRANSPORT

CONSUMER SERVICES


50


Universal Consumer NetworkPossible with Multi Channel Strategy

SERVICE CHANNELS

OPERATING MODEL

PRINCIPLES

Single View of Customer

Data Driven Decision Making

Process Management

Centralization and Standardization

Customer Excellence

Internet Cell phone Mobile Agent Self Service

51


Universal Consumer NetworkPossible with Multi Channel Strategy

REQUIRED LICENSESFull Banking License

Postal Operator licence

PRODUCT TYPES

Postal products and services

Financial product and services

Banking products and services

Logistics products and services

Government products and services

OUTLET TYPES Communication Centre Business Centre Citizen Centre

52


2.2.








7.7. Critical Success FactorsCritical Success Factors


53


Key Strategic ProgrammesCustomer Focus

MAIL

Customer Experience Improvement

Organisational Re‐alignment Around Customer

Develop Customer Intelligence

LOGISTICS POSTBANK

Solution Development Per Customer Segment

DIGITAL CONSUMER

SERVICE

$

54


Key Strategic ProgrammesAccessibility to Products & Services

MAIL

Product And Solution Development Per Segment

Profitability and Rationalisation

LOGISTICS POSTBANK

Measuring Risk And Profitability Per Segment And Channel

DIGITAL CONSUMER

SERVICE

$

Product And Solution Delivery Per Profitable And Preferred Channel

55


2.2.




South African Post Office Support Units




7.7. Critical Success FactorsCritical Success Factors


56

Human CapitalTransformation programs


HHIIGGHH

PPEERRFFOORRMMAANNCCEE

OORRGGAANNIISSAATTIIOONN

ME

WEWORK

WORLD

Globalization(SAPO's InternationalRelations)

Technology(SAPO continuouslyimproving on technology, and accessibility for South Africa)

Social responsibility (VariousSAPO initiatives)

Coaching &Mentoring

Vision and Strategy (New Operating Model)

Global Warming(SAPO EnvironmentalInitiatives)

Managing and ValuingDiversity (will also be addressed in team and Individual work)

SAPO Brand &Image ( EmployeeIdentity and Enhancingthe customerExperience – raise service levels)INDUCTION PROGRAM

“War for Talent”Human Capital Optimization(Talent - , Succession - and Performance management ).

Personal Mastery(IncludingEQ)

Values(Drive to embedAnd ‘live the SAPO Values”)

Team Optimization(Self OrganizingTeams) TEAM BUILDING

57

Human CapitalJob creation


Job Creation 2010/11 ‐

2012/13 2011 2012 2013Total over

period

CategorySpecial Projects 12 20 20 52

Consumer Services 554 571 587 1712

Mail Business 1040 486 167 1693

Transport & Logistics 16 16 14 46

Postbank 41 26 30 97

IT 60 60 0 120

Total 1723 1179 818 3720

Indirect employment 1615 130 120 1865

Direct employment 1723 1179 818 3720

58

Human CapitalDevelopmental programs 2010/2011


Areas Initiatives Targets Achieved

Employees ABET 450 employees

Bursaries for formal academic studies R2 million budget allocated

Formal Management & Leadership Development Programs 200 employees

Learnerships Marketing NQF 4 20 employees

Associate Accounting Technicians 59 employees

Customer Services NQF 4 150 employees

Youth development

programsGraduate Program 120 graduates

E‐literacy Digital literacy 150 employees

Community

DevelopmentCSI –

Digital Literacy 173 youth from previously disadvantaged

backgrounds/communities

Learning interventions for grade 10 to 12 learners in

disadvantaged communities200

International

DevelopmentTeam and workforce optimisation interventions for the Pan

African Postal Union (PAPU)15 PAPU staff

Training offered to Postal Administrations within SADC

countries in International Money transfers 100 people trained

59

Human CapitalPlanned Developmental programs 2011/2012


Areas Initiatives TargetsEmployees ABET 600 employees

Bursaries for formal academic studies R2.5 million budget allocation

Formal Management & Leadership Development Programs 250 employees

Special SETA funded programs 500 employees

Learnerships Contact Centre NQF 4 50 employees

Professional Driving NQF 3 20 employees

Logistics Management NQF 4 20 employees

Certificate in practical management NQF 5 30 employees

Youth

development

programs

Graduate Program 100 graduates

Monyetla Work Readiness Program for unemployed youth 70 unemployed youth

E‐literacy Digital literacy 200 employees, 700 externals

Community

developmentDevelopment Interventions for learners in disadvantaged communities Ad‐hoc basis

International

developmentConsultation on workforce restructuring and remuneration for the PAPU office Ad‐hoc as per need

60

EnvironmentalPillars, initiatives and targets


Protect the environmentMinimise our impact on the environmentUtilize our non-renewable resources in a sustainable wayPursue sustainable management practicesPartake in national debate surrounding sustainable development

61

Performance MeasurementBusiness Balance Scorecard: Financial


Long‐term

strategic

objectiveAnnual objective Improvement priority Target 2011/12 Target 2012/13 Target 2013/14

Achieve growth

(Financial sustainability)

Improve income statement Group revenue growth 5% 7% 7%Post Office 4% 7% 7%Logistics 7% 8% 8%CFG (incl SSC) 7% 8% 8%Docex 7% 8% 8%

Group operating profit R228m R319m R422mPost Office R80m R143m R215mLogistics R149m R176m R207mCFG (incl SSC) R141m R166m R196mDocex R8m R10m R11m

Increase

cost

efficiency

managementGroup staff cost % of total cost 51% 51% 51%Group total cost % of total income 96% 95% 94%

Strengthen the balance sheet Postbank

non‐interest

revenue

growthR197m R221m R247m

Grow Postbank depositors book R394m R434m R477m

Long‐term strategic objective Annual objective Improvement priority Target 2011/12 Target 2012/13 Target 2013/14Achieve growth

(Financial sustainability)

Strengthen the balance sheet ROA 1,5% 1,1% 1,3%ROE 6.1% 4.8% 5.6%Total assets R10.323m R11.139m R12,037mCurrent ratio 1 1 1Debtors days

Mail

Courier

17

55

17

55

17

55Capital

investment

in

priority

areasTotal CAPEX R411m R367m R358m

Achieving process efficiency Business restructuring Positioning of SA Postbank Ltd License

requirements

Transition

programmes

Stakeholder management

Refine

risk

management

and

governance

frameworks

Evaluation review

Business restructuring Review

and

implementation

of

Shared Services Review

current

processes

and SAP optimisationOutsource

non‐core

functionsTransport Complete formulation

of

new transport modelComplete

implementation

of new model 62

Performance MeasurementBusiness Balance Scorecard: Social


Long‐term

strategic

objective

Annual objective Improvement priority Target 2011/12 Target 2012/13 Target 2013/14

Provide

a

stable,

well

trained

and

satisfied

employee

force

Decent workplaces Workplace

accidents

and

IOD’s5%

reduction

on

previous

year’s actual5%

reduction

on

previous year’s actual5%

reduction

on

previous year’s actual

Improve intellectual capital Training expenditure

as

%

of

group staff budget1.15% (R34m) 1.15% (R36m) 1.15% (R37m)

Talent management Succession

planning

to

level 4 managersComplete

level

4

managers

Performance management 100% TCTC evaluations 100% TCTC evaluations 100% TCTC evaluations

Labour practices Management of HR liabilities

Leave liability

Housing liability

Post‐Retirement

Medical

Aid cost

10%

reduction

on

previous

years’

actuals

10%

reduction

on

previous

years’

actuals

20%

reduction

on

previous

years’

actuals

10%

reduction

on

previous years’

actuals

15%

reduction

on

previous years’

actuals

20%

reduction

on

previous years’

actuals

10%

reduction

on

previous years’

actuals

10%

reduction

on

previous years’

actuals

20%

reduction

on

previous years’

actuals

Employee Relations Nr of CCMA cases Nr of CCMA cases Nr of CCMA cases

Health Wellness program 60% 70% 70%

HIV/AIDS 75% 80% 80%

63



Long‐term

strategic


Satisfied customers License

and

mandate

obligationsAccess to ICT services Achieve targets that will

emanate

from

the

BU

plans

to

be

finalised

1st

Q 2011

To be defined in 2010 To

be

defined

in

2011

Address expansion 1

195 690 1

195 690 1 195 690

Additional

points

of

presence50 50 50

Delivery standard

Mail

Logistics

92%

98%

93%

98%

95%

98%Queue waiting time 7min 7min 7min

Customer centricity Develop intelligence Define

data

strategy

during first six monthsEstablish

market

&

customer

intelligence

function

Conduct

product

and

customer

profitability

study by March 2012

Develop one customer

view abilityImplement

one

customer view ability

64



Long‐term

strategic


Governance

and

complianceEthics Ethics procedures Quarterly meetings

Baseline reporting

Quarterly meetings

Baseline reporting

Quarterly meetings

Baseline reporting

Anonymous crime reporting 10% increase on previous

years’

actuals10%

increase

on

previous years’

actuals10%

increase

on

previous

years’

actualsCrime and fraud 10%

reduction

on

previous years’

actuals10%

reduction

on

previous years’

actuals10%

reduction

on

previous

years’

actualsGovernance Contract management 100% visibility on SAP 100% visibility on SAP 100%

visibility

on

SAPLicense agreement Fulfilment

of

requirementsFulfilment

of

requirementsFulfilment

of

requirementsAudit issues 70% completion 75% completion 80% completion

Transformation Employment equity

Gender

Black female

Race

Disability

42%

29%

79%

4%

42%

29%

79%

4%

42%

29%

79%

4%BBBEE 60% 63% 65%

65

Corporate Social InvestmentInitiatives


Vryburg soup

kitchenIkageng Old Age

Food parcel donationsLesedi Day Care

Stationary donations &

volunteerism

EmalahleniBread and coffee for

pension days

Rea Kgona HouseClean & cook for children

KZN wheelchair

donationsTree planting at

Olievenhoutbos PrimaryRustenburg creche

66

Revenue Focus AreasPer Business Unit

$

POST BOXES AND DIRECT MAIL GROWTH

GOVERNMENT & CORPORATE BUSINESS

PRODUCT GROWTH AND CUSTOMER GROWTH

TRAFFIC FINES & ONLINE PAYMENT, HYBRID MAIL, TRUST

CENTRE

MOTOR VEHICLE LICENCES, POST FINANCIAL SERVICES

RESTRUCTURING OF PROPERTIES UNIT67

Top 10 RisksGroup risks


RISK MITIGATIONS

Information & Technology

Risks

The development of an integrated IT strategy aligned to IT governance and

business requirements

Changing Customer Needs Implementation of customer centricity programmes and systems.

Relationship with organised

labour

Review the structures and processes of engagement and continuously

build the relationship

Impact of crime Continued implementation of crime prevention, security and detection

strategies.

Reduction in mail volumes Continued implementation of the diversification strategy and programmes.

Reputational risk The deployment of strategies to address the public relations and position

the desired image for SAPO

Business Continuity

Management

Development of a National Operational BCM Strategy to additionally

enhance management awareness

Industry deregulation Analysis of impact for possible of deregulation.

Information Security Implementation of an Information Security Strategy and Approved Policies.

Change Management Risk Implementation of change management programmes 68

Implementation of Group Holding Structure

Implementation of Business and Operating Model

Implementation of Customer Centricity

Implementation of Multi channel Strategy

Addressing People Issues ‐

Change Management

Information Technology Enablement

ConclusionCritical Success Factors


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Budget Overview


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strategic corporate plan overview

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