STRATEGIC PLAN PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON TRANSPORT 14 March 2007 by...
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Transcript of STRATEGIC PLAN PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON TRANSPORT 14 March 2007 by...
STRATEGIC PLAN
PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON TRANSPORT
14 March 2007
by ZAKES MYEZA: Chief Executive Officer
STRATEGIC PLAN
PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON TRANSPORT
14 March 2007
by ZAKES MYEZA: Chief Executive Officer
INDEX
Vision, Mission, Values and SACAA Act
Operational Environment
SACAA Profile
Purpose of Strategic Document
Situational Analysis
Set Priorities
Five (5) Strategic Objectives
Key Analysis – Current Situation
Strategy Planning Process
INDEX Cont..
Implementation of Strategy
Strategy Roll out
Financial Implications
Conclusion
VISION
REGULATORY EXCELLENCE IN AVIATION SAFETY AND SECURITY
MISSION
THE SACAA IS A PLAYER IN THE INTERNATIONAL
ARENA THAT SEEKS TO PROMOTE AND MAINTAIN A
SAFE AND SECURE CIVIL AVIATION ENVIRONMENT IN
SOUTH AFRICA, BY REGULATING AND OVERSEEING
THE FUNCTION OF THE INDUSTRY IN AN EFFICIENT,
COST EFFECTIVE, SUSTAINABLE AND CUSTOMER
FRIENDLY MANNER
SACAA VALUES
COMMITMENT
RESPONSIBILITY
ACCOUNTABILITY
CONSISTENCY
KNOWLEDGE-SHARING
INTEGRITY AND
TRANSPARENCY
The SACAA was established on 01 October 1998 under
South African Civil Aviation Act No 40 as a stand alone civil
aviation authority. Its objectives are as follows:
To control and regulate civil aviation in the Republic, and
To oversee the functioning and development of the civil
aviation industry, and, in particular, to control, regulate
and promote civil aviation safety and security.
OBJECTIVES OF SACAA
SACAA PROFILE: RACIAL COMPOSITION
71%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Black White
Employees
SACAA PROFILE Cont: GENDER COMPOSITION
54%
46%
42%
44%
46%
48%
50%
52%
54%
Male Female
Gender
PURPOSE OF STRATEGIC DOCUMENT
The purpose of the strategic document is to:
Define the process involved in strategy formulation
Document the short-term strategy for ICAO readiness by June 2007
Document other short to medium term strategies by prioritising outcomes, and stratifying them in the expected years
Use the document for performance agreements with stake holders
Use the document for divisional score cards and in turn individual scorecards that are linked to the
Performance Management System.
SITUATIONAL ANALYSIS – SACAA LEGACY
The CEO appointed March 2006 conducted a situational analysis/
review of SACAA’s business environment. The findings identified
the organisation as a dysfunctional one and was manifested by
the following:
Conflict of interest, e.g. Execs and Senior Managers are
also Union members
Incoherent and misaligned structure leading to
structural conflicts and process disconnects.
Culture of non-performance.
Low employee morale and no confidence in top
management.
Poor systems and processes
Poor industry view of organization's competence.
SITUATIONAL ANALYSIS - SACAA LEGACY Cont..
Negative findings in 1999 audit and 2001 follow-up by the
International Civil Aviation Organization (ICAO).
Many of these findings were not corrected in the six (6)
years since the audit
This was reconfirmed by United States Federal Aviation
Authority technical review conducted in June 2006.
In September 2006 an immediate survival strategy was
developed and continues to be in place focusing mainly
on strategic objective one.
(Emphasis will be on human resource requirements, strategic
objective 5, as this is the ultimate risk in ICAO compliance)
SET PRIORITIES
Following the remedial actions submitted to, and approved by
the Board in 2006, the following actions were prioritised.
1. To pass the July 2007 ICAO audit
2. Build technical and managerial staff and skills levels
3. Implement the performance management system and set
meaningful targets
(The Board formulated five (5) strategic objectives to
address short-term and long-term strategic goals)
STRATEGIC OBJECTIVES
Below is a summary of five objectives of the SACAA that were
approved by the Board
1. Set civil aviation safety and security standards and regulate industry compliance in accordance with International Civil Aviation Organisation (ICAO) standards and global best practices.
2. Facilitate aviation industry functioning, development and growth by participating in joint fora, making safety and security recommendations and promoting safety and security through campaigns and information dissemination
3. Build effective organization systems and processes in order to ensure financial stability, good corporate governance and performance excellence that meet or exceed stakeholder expectations.
STRATEGIC OBJECTIVES Cont..
4. Ensure growing customer satisfaction by creating a knowledge-based and customer-focused organization
5. Attract, develop and retain skilled human capital.
KEY ANALYSIS
Having gone through the background of the organisation, it is
important to note the current situation of the SACAA by taking
you through the findings of a recent Strengths, Weaknesses,
Opportunities, and Threats (SWOT) analysis.
KEY ANALYSIS - STRENGTHS
The following were strengths identified in the SWOT analysis
The SACAA was recognised as an international player
of note in Africa.
A Chief Executive Officer had been appointed by the
Board and given a mandate and resources to turn the
organisation around
Department of Transport (DoT) support for positive
change.
ISO accredited status.
Some committed staff members needing leadership and
motivation.
KEY ANALYSIS - WEAKNESS
The following are weaknesses identified in the SWOT
analysis
Unresolved negative audit findings identified in the
ICAO Audit in 1999 and 2001.
Insufficient technical skills
Top management skills gap
Poor systems of control
Lack of customer focus
Lack of some key staff
Lack of SACAA’s credibility in the industry.
KEY ANALYSIS: OPPORTUNITIES
The following opportunities were identified in the SWOT analysis
International respect and recognition. (ICAO compliance
is a global status for SACAA).
Status as Africa’s gateway, with significant economic
spin-offs for South Africa.
Remarkable influence on the development of policies
and standards affecting the civil aviation industry in
SADC and Africa in general.
Becoming a benchmark for efficiency in the regulation of
civil aviation.
KEY ANALYSIS - THREATS
The following threats were identified in the SWOT analysis
Failure to pass the ICAO audit could lead to dire
consequences.
Failure to pass the International Aviation Safety
Assessment (IASA) audit
Industrial unrest due to the implementation of a
Performance Management System (change resistance)
Negative influences on some staff by previous
management to prevent exposure of past
mismanagement.
Loss of existing critical skills
STRATEGY PLANNING PROCESS- CONTENTThe following strategic section is made up of the sub-topics
tabulated below.
Strategy development and roll out process
Strategy objectives and implementation
Conclusion
STRATEGY PLANNING PROCESS – CONTENT Cont…
The following are two major divisions of the strategy development
process:
Strategy Development Process
The first slide will tabulate the meticulous strategy
development process demonstrating the all inclusive
approach.
Strategy Roll Out
The Second slide tabulates the roll out of the strategy
i.e the implementation or use of the strategy. In this case the
end result is the completion of employee scorecards laying
a good foundation for performance management.
A good strategy not implemented, is of no use.
STRATEGIC PLANNING PROCESS
DOT PerformanceAgreement
Board Strategic Objectives
Identified Core
Business
ICAO Critical
Elements
KeyAccountability
Matrix
Management StrategicPlanning
Workshop
Developmentof Strategic Framework
Board Strategic Planning Workshop
Development of SACAA
Strategic Plan
SACAA Strategic
Plan Roll-out
STRATEGY ROLL-OUT MAP
SACAA Strategic Plan
SACAA Organisational
Scorecard
DOT Performance Agreement
Divisional Scorecards
All Staff Performance Scorecards
STRATEGIC OBJECTIVES
AND IMPLEMENTATION
STRATEGIC OBJECTIVES & IMPLEMENTATION
The following slides will address implementation on the five
strategic objectives by categorising them under the following:
Outcomes per year of focus
The desired outcomes are listed per strategic objective with the percentage of focus in each year.
Critical Success Factors
Critical success factors to enable outcomes are noted under each strategic objective.
Action Plan
Action plans to achieve the stated outcomes are tabulated under each strategic objective
STRATEGIC OBJECTIVES & IMPLEMENTATION
Instrument of Control
Each strategic objective has tools to view or ensure progress
on the stated outcomes.
The following three instruments of control will be used on the
five strategic objectives accordingly:
Project Plans
Performance Scorecards
Executive Management Feedback
STRATEGIC OBJECTIVE 1
Set civil aviation safety and security standards and regulate
Industry compliance in accordance with International Civil
Aviation Organisation (ICAO) standards and global best
practices.
OBJECTIVE 1 - OUTCOMES
OUTCOMES Yr 1 Yr 2 Yr 3
Understandable and comprehensive legislation to effectively oversee the industry and meet requirements of (ICAO)
90% 10%
Civil Aviation Regulations and Technical standards to be fully implemented and updated simultaneously with ICAO pronouncements.
100%
Meet oversight requirements by implementing a functional organisational structure that will provide effective oversight and the resolution of findings and perform in depth audits.
100%
Technical personnel appropriately trained to maintain and enhance their competence at the desired level.
90% 10%
A comprehensive technical library that is easily accessible and is consistent with best practice.
70% 20% 10%
Civil Aviation Regulations (CAR's) and Civil Aviation Technical Standards (CATS) personnel are all appropriately licensed and all licences and certificates are issued in time in a computerised environment.
100%
Proactive system to proactively perform audits and inspections in accordance with CAR’s, CATS & ICAO requirements resulting in a reduction of accidents/incidents/occurrences
70% 20% 10%
Enhanced safety levels that facilitate a paradigm shift in industry mentality to voluntary compliance rather than punitive.
60% 20% 20%
OBJECTIVE 1 – CSF
Critical Success Factors
The following are critical success factors in meeting the above
objective and realising the desired outcomes:
Enforcement capability through adequate and trained staff
Timeous promulgation of Acts
Thorough consultation with industry during the Act amendment
Effective administrative processes and systems to be put in place
OBJECTIVE 1 – ACTION PLAN
Action Plan
The following action plans will ensure the achievement of the
stated objective.
Establish electronic links with ICAO to obtain alerts to the Standards and Recommended Practices
(SARPS)
Facilitate the combination of the CEO and Commissioner for Civil Aviation (CCA) positions into one
Redesign the organisational structure to support effective oversight and resolution findings
Develop and implement a comprehensive skills plan programme.
Establish a comprehensive technical library
Develop an integrated surveillance system
STRATEGIC OBJECTIVE 2
Facilitate aviation industry functioning, development and
growth by participating in joint fora, making safety and
security recommendations and promoting safety and
security through campaigns and information dissemination.
OBJECTIVE 2 - OUTCOMES
:
OUTCOMES Yr 1 Yr 2 Yr 3
A developed industry with more aviation institutions whilst improving safety and security infrastructure.
20% 50% 30%
More HDI’s in technical positions 80% 10% 10%
BEE partnerships established and the aviation charter implemented.
100%
Increased industry and public awareness in matters of safety and strategic partners identified.
100%
Increased support of the DOT programs. 100%
Increased involvement in SADC and African and Indian Ocean Islands aviation development.
15% 75% 10%
OBJECTIVE 2 – CSF
Critical Success Factors
The following are critical success factors in meeting the objective
and realising the desired outcomes:
A regional and global focus to facilitate/support growth of
local aviation industry.
Clear guidance, complete & practical regulations, and
faster legislative processes.
Use of experts to ensure rule-making implications are
fully recognised.
Accurate statistics and accessibility to information.
OBJECTIVE 2 – CSF Cont..
Industry liaison, workshops and awareness
Support from tertiary institutions.
DOT plans and programmes communicated in advance for
proper resource allocation and time for planning purposes.
Harmonisation of regulations and systems through SADC
Promotion of BEE Partnerships.
OBJECTIVE 2 – ACTION PLAN
Action Plan
The following action plans will ensure the achievement of the
Stated objective.
Establishment of detailed operator guidelines
Develop a comprehensive talent management plan that addresses HDI requirements.
Establish policies and procedures to promote BEE partnerships
Develop a communication and awareness programme that includes institutions of higher learning.
Include the attendance of DOT as a generic KPA on the performance scorecard.
Institute exchange programmes with SADC and other international aviation authorities.
STRATEGIC OBJECTIVE 3
Build effective organization systems and processes in order
to ensure financial stability, good corporate governance and
performance excellence that meet or exceed stakeholder
expectations.
OBJECTIVE 3 - OUTCOMESOUTCOMES Yr 1 Yr 2 Yr 3
Best practice in corporate governance in use. 100%
A comprehensive risk management plan in use. 100%
An accessible and secure information management system with reduced reliance on a manual record system with the aim of moving to a paperless system.
100%
An integrated decision support system that enables access of key information and global statistics by management as well as support system for effective decision making.
80% 20%
A sustainable income stream commensurate with the challenges of ICAO, improved financial control and adherence to the PFMA.
100%
Improved organizational performance and a flexible organisation structure to achieve strategic goals.
90% 10%
ISO compliance. 100%
OBJECTIVE 3 – CSF
Critical Success Factors
The following are critical success factors in meeting the objective
and realising the desired outcomes:
Initiate project to move to a paperless environment.
Improvement of budgetary controls.
A solid project plan to improve systems and processes.
OBJECTIVE 3 – ACTION PLAN
Action Plan
The following action plans will ensure the achievement of the
stated objective:
Development and implementation of an accessible and
secure information management system that will
lead to reduced reliance on a manual record system.
Implement software for statistical input analysis
Obtain approval from DOT and cabinet for the increase
of rates of various income streams.
OBJECTIVE 3 – ACTION PLAN Cont..
Implement the performance management system
Distribute PFMA to management and obtain acknowledgement
of receipt.
Develop and implement an enterprise wide risk management
plan.
Conduct ISO audits to ensure compliance.
STRATEGIC OBJECTIVE 4
Ensure growing customer satisfaction by creating a
knowledge based and customer focused organization
OBJECTIVE 4 - OUTCOMES
OUTCOMES Yr 1 Yr 2 Yr 3
The use of a secure, comprehensive, accurate and relevant information system providing industry knowledge base, allowing online access to customers.
50% 50%
Improved and standardized inspector skills and guidance material contributing to improved service levels and guidance to the industry.
70% 30%
Adherence to the customer service charter 100%
An effective customer communication strategy implemented. 100%
Primary source / hub of industry information and knowledge resource
30% 70%
OBJECTIVE 4 – CSF
Critical Success Factors
The following are critical success factors in meeting the above
objective and realising the desired outcomes:
Customer oriented culture developed.
Fully developed guidance material.
OBJECTIVE 4 – ACTION PLAN
Action Plan
The following action plans will ensure the achievement of the
stated objective.
Establish an online industry information hub
Enhance and standardise inspectors guidance material
Conduct customer surveys and service audits
Implementation of an effective customer communication
strategy
STRATEGIC OBJECTIVE 5
Attract, develop and retain skilled human capital.
OBJECTIVE 5 - OUTCOMESOUTCOMES Yr 1 Yr 2 Yr 3
A cost effective tool providing accurate, reliable employee information to the Company to facilitate timeous, strategic business decisions
45% 45% 10%
An overarching HR Strategy which is aligned to the overall business strategy and strategic business objectives
70% 30%
A transformed organization that embraces diverse individual capabilities and affords equal opportunities for meaningful participation.
50% 40% 10%
An HR business approach that will deliver value adding strategic partnerships and HR best practices.
100%
Aligned and standardized HR processes, policies, practices and procedures.
80% 20%
Management of Human Capital through integrated and aligned HR process (that forms part of employee life cycle) to meet future business needs
45% 45% 10%
Efficient day-to-day processing of transactions and delivery within the HR Department
50% 50%
Sound cooperative relationships between the leadership and employees established and maintained.
70% 30%
OBJECTIVE 5 – CSF
Critical Success Factors
The following are critical success factors in meeting the
objective
and realising the desired outcomes:
HR credibility within the business:
Developed policy and procedural frameworks
HR record systems developed
Informed and skilled HR staff
Talent management system implemented
Formulation of partnership structures and their function
working agreed upon between employee
representatives and the leadership
OBJECTIVE 5 – ACTION PLAN
Action Plan
The following action plans will ensure the achievement of the
stated objective.
Audit the Human Resources Systems and processes:
Implement a Human Resources Information
Management System
Development of an effective Human Resources
Strategy
Facilitate organisational transformation and change
management policy
OBJECTIVE 5 – ACTION PLAN Cont..
Facilitate organisational transformation and a change
management policy
Establish procedures and policies to facilitate a Human
Resources Business Partner mindset
Establish a HR Governance Framework through Policies and
Procedures
Institute control mechanisms to ensure effective transactional
delivery
Perform employee / position cross matching.
STRATEGY ROLL - OUT
The completion of the strategic document mean the following
actions will be taken:
DOT performance agreement can now be finalised
SA CAA Organisational Scorecard based on expected
outcomes may be completed (Key Accountability
Matrix of the organisation already completed)
Divisional scorecards based on the accountability matrix can
be completed.
All staff performance scorecards based on their divisional
ones can be completed.
FINANCIAL IMPLICATIONS
The pending International Civil Aviation Organisation (ICAO)
audit in July 2007 resulted in the following:
A review of the organisation done in 2006 highlighted long
outstanding unresolved findings that address the 8 ICAO
critical elements.
Class A1 project being implemented after Board approval in
September 2006 to ensure a clean audit by ICAO.
R56m budget approved for the Class A1 Project that takes
place in the 2006/ 7 and 2007/ 8 financial years.
FINANCIAL IMPLICATIONS CLASS A1 PROJECT
The Class A1 project funds were to be used for addressing the
legacy of the dysfunctional SA CAA by:
Training of existing technical personnel to bring them to an
acceptable level of competence.
Recruitment of locals and expatriate technical skills in order to be compliant by set date.
Procuring assistance from the ICAO to ensure readiness for June 2007 audit.
Improving of processes and systems in order to implement best practice.
Sub-contracting critical elements in the project plan in order to ensure delivery by set date.
Class A1 project being implemented after Board approval in September 2006 to ensure a clean audit by ICAO.
R56m budget approved for the Class A1 Project that takes place in the 2006/7 and 2007/8 Financial years
FINANCIAL IMPLICATIONSCLASS A1 PROJECT
The following 2007/ 8 figures are inclusive of the A1 project.
RRevenue 197,812,355
Expenses 243,064,658
Deficit (45,252,303)
Capital Expenditure 16,557,000
(There is cash available to finance the deficit)
FINANCIAL IMPACT – 2007/ 8
The Class A1 project causes the following deficits:
1. In 2006/ 7 a R1,5m surplus was budgeted, however, a
revised budget/forecast shows a deficit of R11,5m as a
result of the A1 Project spreading over two financial years.
2. In 2007/ 8 a deficit of R45,2m is budgeted otherwise this
would have been a break even budget.
It should be noted that the the R45,2m deficit is an accounting
deficit as there are cash reserves to finance the above amount.
Therefore this is not a request for funding.
FINANCIAL IMPACT – 2007/ 8
In line with corporate governance the following processes will
follow in order to approve the budget deficit for 2007/8.
1. An exemption has been applied for in terms of section 53
(3) of the Public Finance Management Act that states that
public institutions can not budget for a loss unless prior
approval is granted by National Treasury.
2. The SACAA Board approval has been put in motion and the
date of the deliberation on the above matter is set for the
15th of March 2007.
CORPORATE GOVERNANCE
Finally, the SA CAA demonstrated inclusivity, transparency, and
analytical prowess in its development of this strategy. The
SA CAA believes that its business strategy is not only relevant
to the challenges facing the organisation but also progressive
and in line with the aims and objectives of the new South Africa.
The portfolio committee is accordingly requested to take note of,
and endorse the SA CAA’s Strategic Plan for the period 2007 to
2010.
CONCLUSION
THANK YOU!!