Project ShandukaProject ShandukaBriefing of the Labour Select Committee

27 February 2013

• Fact finding mission and consultative process by DG on the 7th July 2011 until 5th September 2011

• The provincial visits highlighted numerous issues to be addressed by the Departmental leadership

• Some of the critical issues raised were the following:

BACKGROUNDBACKGROUND

SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS

CHALLENGES IDENTIFIEDCHALLENGES IDENTIFIED

SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS

• CHALLENGES IDENTIFIEDCHALLENGES IDENTIFIED

SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS

• CHALLENGES IDENTIFIEDCHALLENGES IDENTIFIED

SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS

• CHALLENGES IDENTIFIEDCHALLENGES IDENTIFIED

SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS

• CHALLENGES IDENTIFIEDCHALLENGES IDENTIFIED

SOME OF THE KEY CHALLENGES IDENTIFIED DURING THE DG’s ROADSHOWS

• CHALLENGES IDENTIFIEDCHALLENGES IDENTIFIED

SUMMARY OF PROBLEM STATEMENTSUMMARY OF PROBLEM STATEMENT

““The Department is not functioning as a The Department is not functioning as a single entity and there is generally a lack of single entity and there is generally a lack of uniformity in how it is currently configured. uniformity in how it is currently configured. There is duplication of functions, dilution of There is duplication of functions, dilution of core and support functions, tendency to core and support functions, tendency to resort to piece meal approach when dealing resort to piece meal approach when dealing with Organisation structure matters and with Organisation structure matters and sub-optimal allocation and distribution of sub-optimal allocation and distribution of human resources and service delivery human resources and service delivery points in the Organisation and the country points in the Organisation and the country respectively. The Department is not respectively. The Department is not configured for faster and efficient service configured for faster and efficient service delivery” delivery”

THE DEPARTMENT’S RESPONSETHE DEPARTMENT’S RESPONSE

The need to conduct an Organisational review exercise using the services of an external service provider. To cover all nine provincial offices, Head Office and the two Funds.

It was thus found necessary not just to deal with the symptoms of the problems but with root causes too and hence...

THE DEPARTMENT’S RESPONSETHE DEPARTMENT’S RESPONSE

The aim of the Project has always been and is still to…

Organisational Review process would thus guarantee a more sustainable solution since it deals with root causes and systemic challenges of the DoL

OVERALL AIM OF THE PROJECTOVERALL AIM OF THE PROJECT

• The aim of this project is therefore not limited to just providing a sustainable solution to all the problems that were uncovered by the fact finding mission to our provinces, Branches and programmes but is mainly also aimed at dealing with root causes and systemic issues pertaining to the identified problems with a view to galvanise the DoL into a single efficient entity designed and geared for improved service delivery.

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EXTERNAL SERVICE PROVIDEREXTERNAL SERVICE PROVIDER

EXTERNAL SERVICE PROVIDEREXTERNAL SERVICE PROVIDER

• To get an opportunity to work with a team of Consultants that has International experience, connections and exposure on Organisational Design and Change Management strategies and tactics.

• To achieve objectivity, impartiality and fairness - thus buy-in from staff.

• Create an environment and opportunity for skills transfer for some of our staff in the DoL.

EXTERNAL SERVICE PROVIDEREXTERNAL SERVICE PROVIDER

All SCM processes and procedures have been followed All SCM processes and procedures have been followed without deviation resulting in the appointment of:without deviation resulting in the appointment of:

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SERVICE PROVIDER IN USE FOR THIS PROJECTSERVICE PROVIDER IN USE FOR THIS PROJECT

• Deloitte & Touche Consulting!!Deloitte & Touche Consulting!!• Deloitte & Touche Consulting Deloitte & Touche Consulting officially officially commenced on the commenced on the 3 September 20123 September 2012

SUPPLY CHAIN MANAGEMENT (SCM) SUPPLY CHAIN MANAGEMENT (SCM) PROCESSES AND PROCEDURESPROCESSES AND PROCEDURES

All SCM processes and procedures have All SCM processes and procedures have been followed without deviation as been followed without deviation as

shown in the Gant Chart that follows:shown in the Gant Chart that follows:

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SUPPLY CHAIN MANAGEMENT (SCM) PROCESSES SUPPLY CHAIN MANAGEMENT (SCM) PROCESSES AND PROCEDURESAND PROCEDURES

SEQUENCE OF EVENTS FOR THE PROCUREMENT PROCESSSEQUENCE OF EVENTS FOR THE PROCUREMENT PROCESS

Sub Project Project Amount

2012

Project Amount

2013

Project Amount

2014 Project Title: Project Shanduka (Organisation Review and Design)

1. Professional fees (Phase I)    R10,441,431.00 

2. Professional fees (Phase II)   R15,131,569.00 

 

TOTAL

    

R25,573,000.00

 

 

 

PROJECT COSTPROJECT COST

PROJECT DELIVERABLES AND PROJECT DELIVERABLES AND PROGRESS (PHASE I & II)PROGRESS (PHASE I & II)

PHASE I OF PROJECT SHANDUKA OF PROJECT SHANDUKA (1 Sept 2012 – 31 June 2013)(1 Sept 2012 – 31 June 2013)

Change management implementation and skills transfer

30 Oct 12 30 March 13 30 April 13 31 April 13 28 May 13 28 May 13 31 JUL 1331 JUL 13

Change management strategy and action plan -

DoneDone

Business strategy and

Service delivery model – in – in progressprogress

Business process

mapping and improvement thereof – In – In progressprogress

Report on optimum number, size, geographical

spread and location of service

delivery points (including workload

assessment) -In In progressprogress

Organisational structure I&II, job profiling and job evaluation - In In

progressprogress

Implementation plan for approved recommendations Not started yetNot started yet

(I)

PHASE IIPHASE II OF PROJECT SHANDUKA OF PROJECT SHANDUKA (1(1STST JULY 2013 – 31 DEC 2013) JULY 2013 – 31 DEC 2013)

1 Aug 13 –Oct 13 End of Oct 13 End of Dec 13 End of Jan 14 End of Feb 14

Skills audit, current employee placement

and HR Planning report -Not started Not started

yetyet

Report with recommendations on

automated Organisational and

individual performance

management system - Not started yetNot started yet

Organisational culture – current and

proposed situation - Not started yetNot started yet

Succession planning and talent management

system report with recommendations - Not Not

started yetstarted yet

Implementation of all approved

recommendations (II) - Not started Not started

yetyet

Change management implementation throughoutChange management implementation throughout

PROJECT METHODOLOGY AS USED BY PROJECT METHODOLOGY AS USED BY DELOITTE CONSULTING DELOITTE CONSULTING

© 2013 Project Shanduka26

Project Shanduka: Phase 1

Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13

As-Is Assess-

ment

StrategyArticu-lation

Conceptual Model

Organisation Structures I: Roles & Reporting lines

To-Be Business Process I

To-Be Business Process II

Organisation Structures II:

Job profiles & Evaluations

ImplementRecommendations

ChangeStrategy

Results Management Office

Implement Change management Strategy

What is the plan of action and how are we progressing against plan?

Deloitte & Touche Consulting’s Methodology and progress against it (Phase 1)

A single seamless and integrated Department of Labour

Enhanced integration, coordination, and alignment of services,

This project works closely with the ICT Chief Directorate.

EXPECTED IMPACT OF THE PROJECTEXPECTED IMPACT OF THE PROJECT

Improved service deliveryImproved service delivery

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EXPECTED IMPACT OF THE PROJECT ON EXPECTED IMPACT OF THE PROJECT ON SERVICE DELIVERYSERVICE DELIVERY

SUMMARY OF KEY POINTS (Cont..)SUMMARY OF KEY POINTS (Cont..)

• Project Shanduka (Organisational Review and Design) is a Project Shanduka (Organisational Review and Design) is a direct response to issues that were raised by staff in the DoL direct response to issues that were raised by staff in the DoL during the DG’s fact finding mission in 2011.during the DG’s fact finding mission in 2011.

• The use of Deloitte & Touche Consulting ensures objectivity, The use of Deloitte & Touche Consulting ensures objectivity, impartiality and fairness.impartiality and fairness.

• Though the Consultants started on the 3Though the Consultants started on the 3rdrd September 2012 September 2012 the Project is still on track.the Project is still on track.

• Consultative processes and engagement with staff and Consultative processes and engagement with staff and organised labour are key to project Shanduka.organised labour are key to project Shanduka.

• All SCM processes and Procedures were followed without All SCM processes and Procedures were followed without deviationdeviation

SUMMARY OF KEY POINTSSUMMARY OF KEY POINTS

• This Project will improve service delivery (in terms of speed, This Project will improve service delivery (in terms of speed, quantity and quality) at our service delivery points and will quantity and quality) at our service delivery points and will thus benefit our citizens.thus benefit our citizens.

• Project Shanduka will further benefit staff as it will in a long Project Shanduka will further benefit staff as it will in a long term transform the DoL into an Employer of choice and a term transform the DoL into an Employer of choice and a learning organisation.learning organisation.

• Organisation Culture and Climate will improve in a long run Organisation Culture and Climate will improve in a long run and this will result in enhanced morale levels of our staffand this will result in enhanced morale levels of our staff

• There is going to be return on investment and value for There is going to be return on investment and value for money if one considers the impact and benefits of this money if one considers the impact and benefits of this project.project.

THANK YOU!THANK YOU!