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UPDATED STRATEGIC PLAN
FOR PERIOD 2012/13-2016/17
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
PRESENTATION OUTLINE
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
• VISION• MISSION• VALUES• LEGISLATIVE AND OTHER MANDATES• SITUATIONAL ANALYSIS• ALIGNMENT OF GOVERNMENT WIDE
PRIORITIES• ORGANISATIONAL ENVIRONMENT• SWOT ANALYSIS• LINK BEWTEEN, STRATEGIC OUTCOME AND
KEY OUTPUTS• FINANCIAL PLAN• STRATEGIC RISK REGISTER
STRATEGIC OVERVIEW
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
STRATEGIC OVERVIEW
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
VALUES
•Integrity
•Responsibility
•Respect
•Excellence
•Communication
•Participation
•Trust
RELEVANT LEGISLATURE APPLICABLE TO EAAB
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
• Legislative Mandates
The South African Constitution; Act 108 of 1996;The Estate Agency Affairs Act, 112 of 1976;The Public Finance Management Act, 1 of 1999;The Preferential Procurement Framework Act of 2000;The Financial Intelligence Centre Act, 38 of 2001; The Labour Relations Act, 66 of 1995;The SA Qualifications Authority Act, 58 of 1995; and The Skills Development Act, 97 of 1998The Promotion of Administrative Justice Act 3 of 2000The Promotion of Access to Information Act 2 of 2000The National Credit Act 34 of 2005The Consumer Protection Act 68 of 2008
EAAB MANDATE
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
• Primary Mandate of EAAB• Regulate, maintain and promote the standard of conduct of estate
agents having due regard to the public interest; • Issue fidelity fund certificates to qualifying applicants; • Prescribe the standard of training of estate agents; • Investigate complaints against estate agents and institute
disciplinary proceedings against offending estate agents where required; and
• Manage and control the Estate Agents Fidelity Fund.
Additionally to the primary mandate:• The EAAB is the Supervisory Body of the estate agency profession
pursuant to the Financial Intelligence Centre Act and is obliged to take all steps required to prevent; alternatively, identify and report on, anti-money laundering and terrorist financing activities
UPDATED SITUATIONAL ANALYSIS
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Performance Environment
Economic factors that impact Estate Agency growth:
•Lower forecasted Economic growth
•Higher anticipated inflation rate and interest rates.
•Implementation of the National Credit Act
•Scarcity of new developments
•Stricter bank lending to property buyers
•8 million consumer with impaired credit records
UPDATED SITUATIONAL ANALYSIS
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Performance Environment - Continued
Other factors that affect Estate Agents Industry:
•Estate Agents may take advantage in the growing inexperienced property consumers. This may lead to higher claims made against Fidelity Fund.
•Mismanagement of Trust fund has continued to be a challenge within the Industry.
•The growing use of technology has impacted the practices of Property practices.
ALIGNMENT OF GOVERNMENT WIDE-PRIORITIES WITH EAAB ACTIVITIES
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Government- Wide Priorities EAAB Activities
Speeding up growth and transforming the economy to create decent work and sustainable livelihoods
Support of Property Sector Charter Council in the implementation of BBBEE Codes in the Property industry.Encouraging Estate Agencies to train and develop PDI.
Massive programme to build economic and social infrastructure
Encouraging involvement of Estate Agents in the implementation of low-cost and affordability housing programmes.
Comprehensive rural development strategy linked to land and agrarian reform and food security
Improving accessibility to the 9 provinces in respect of Estate Agency Affairs Board services and support.
ALIGNMENT OF GOVERNMENT WIDE- PRIORITIES WITH EAAB ACTIVITIES
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Government- Wide Priorities EAAB ActivitiesStrengthen the skills and human resource base
Partnership created with Primary, Secondary and Tertiary levels of education in order expand the awareness and education of the Industry and the Profession.Creation of Estate Agency Learnership opportunities.
Intensify the fight against crime and corruption
Improve the effectiveness of the whistleblower process.Improve the legislation applicable to Estate Agents.Improve partnerships between EAAB and other regulating authorities.
ALIGNMENT OF GOVERNMENT WIDE-PRIORITIES WITH EAAB ACTIVITIES
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Government- Wide Priorities EAAB Activities
Pursuing African advancement and enhanced international cooperation
Participation in International bodies activities which promote the regulation of Real Estates. i.e. ARRELO.Inviting and hosting African Regulators to conferences and one on one engagements.
Sustainable resource management and use Compliance with the “green” concepts in EAAB operations.
Building a developmental state, including improvement of public services and strengthening democratic institutions
Efficiency and Effectiveness in the service delivery of the EAAB and Fidelity Fund.
ORGANISATIONAL ENVIRONMENT
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Executive Authority
Board of Directors
Risk and Strategy
Internal Audit
Chief Executive OfficerCompany Secretary
Fidelity Fund
ExecutiveCompliance
Executive Inspections
ExecutiveRegistrations
Executive Education &
Training
ExecutiveCorporate services
SWOT ANALYSIS
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Threat Opportunities
• Increase in emerging home owners and renters and consequent escalation in the number of complaints and claims impacting upon the Board’s resources and the Fund.
• Increase in white-collar crime would lead to higher claims from Fidelity Funds.
• More sectional title properties on the market and increased malfeasances by sectional title managers.
• Tight banking credit application may lead to a reduction in the number of sales transactions.
• The slow economic recovery may lead to a reduction in the number of estate agents.
• Build consumer understanding of the property transactions;
• Increase consumer awareness of the estate agency industry;
• Increase the number of estate agents especially from previously disadvantaged groups;
• Amend the Act to support the EAAB strategic intent;
• Better investment opportunities for investing the fidelity fund;
• Build partnerships that would improve the ability of EAAB to ensure compliance to the Act
SWOT ANALYSIS
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Threats Opportunities• An increase in a number of unregistered
estate agents “no commission based companies” will erode the integrity of the property sells industry.
• Claims against the fidelity fund emanating from unregistered estate agents may increase.
• Unlimited amounts of claims either in size or number of claims may deplete the fidelity fund
• Loss of revenue as result of non compliance to banking money into trust account.
• Inefficiency of local authorities and deeds office has a negative impact on estate agent cash flow
• Improve communication between stakeholders and EAAB
• Establish Estate agents as members of a professional body
• Mitigating the sustainability of fidelity fund
• Use of FFC’s to enforce transformation and compliance
• Involving more stakeholders e.g. BEAFSA
• Improve performance of industry to regulation to go beyond mere compliance
• Improve the sustainability of previously disadvantaged estate agents
SWOT ANALYSIS
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Strengths Weaknesses
• Competent staff with experience is ready to take EAAB forward
• Implemented IT systems e.g. SAP to enable EAAB to improve performance
• A well managed Fidelity Fund
• Committed management team
• Improved working environment e.g. security
• Improved registration process
• Levels of systems integration could be improved to support service delivery
• Poor ratio of recoveries to claims • • Slow turn-around times for client
service complaints • • Insufficient capacity to comply with
mandate. • Work redo is common
SWOT ANALYSIS
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Strengths Weaknesses
• Conducted stakeholder awareness campaigns
• Infrastructure is available to support the effective implementation of the EAAB mandate
• Insufficient reporting, monitoring and control structures
• Performance culture not fully implemented • • Performance management system ineffectively
applied• • Need improvement of corporate governance• • Staff turnover erodes the experience curve
Linking Strategic outcomes to Performance Indicators
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
StrategicOutcome
Output Performance Indicator
Annual Milestone
To improve compliance with the Estate Agency Affairs Act.
Increased impact on prosecutions
Number of complaints received, investigated and resolved.
12/13 -102813/14 – 1100 14/15 – 1200 15/16 – 130016/17 - 1400
Increased impact of inspections
Number of Estate Agencies inspected
12/13 -100813/14 – 121014/15 – 1452 15/16 – 174216/17 - 2090
Linking Strategic outcomes to Performance Indicators
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
StrategicOutcome
Output Performance Indicator
Annual Milestone New Registrations
Annual Milestone Renewals
To improve compliance with the Estate Agency Affairs Act.
Improved Registration process
Number of new registrations and renewals processed
12/13 - 8206 13/14 - 9126 14/15 -10088 15/16 - 11042 16/17 - 12146
12/13 - 4923813/14 – 5416214/15 – 5957815/16 – 6553616/17 - 72090
Linking Strategic outcomes to Performance Indicators
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
StrategicOutcome
Output Performance Indicator
Annual Milestone
To increase stakeholder awareness of the EAAB and its role and services
Increased consumer awareness of EAAB and Estate Agents Industry
Consumer awareness campaigns performed
12/13 -1213/14 - 16 14/15 - 1815/16 - 2016/17 - 22
Improved Estate Agents awareness of EAAB and Estate Agents Industry
Estate Agents awareness campaigns performed
12/13 -1213/14 - 16 14/15 - 1815/16 - 2016/17 - 22
Linking Strategic outcomes to Performance Indicators
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
StrategicOutcome
Output Performance Indicator
Annual Milestone
To effectively and efficiently manage EAAB
Improved processing of Fidelity Fund certificates
Number of on-line registrations processed
12/13 - 38413/14 - 50014/15 - 60015/16 - 70016/17 - 800
To effectively and efficiently manage the Fidelity Fund
T improve the Growth of Fidelity Fund
Percentage growth in the Fidelity Fund
Growth at Consumer Price Index from 2012/13 to 2016/17 financial periods.
Linking Strategic outcomes to Performance Indicators
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
StrategicOutcome
Output Performance Indicator
Annual MilestoneNQF Level 4
Annual MilestoneNQF Level 5
To build capacity of key stakeholder
Development of industry training with services SETA
Number of NQF candidates enrolled and passed the Professional designation Exam
12/13 - 30013/14 - 100014/15 - 150015/16 - 200016/17 - 3000
12/13 - 10013/14 - 15014/15 - 20015/16 - 25016/17 - 300
Linking Strategic outcomes to Performance Indicators
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
StrategicOutcome
Output Performance Indicator
Annual Milestone
To build capacity of key stakeholder
To improve the standards of education and training service providers
Number of service providers inspected for compliance to accreditation standards
12/13 -1513/14 - 16 14/15 - 1815/16 - 2016/17 - 22
Improve education and training of existing qualified Estate Agents
Number of candidates enrolled on CPD
12/13 -50013/14 - 150014/15 - 300015/16 - 400016/17 - 6000
FINANCIAL PLAN
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
REVENUE AND EXPENDITURE ESTIMATES - EAAB
2012/13 R’000
2013/14 R’000
2014/15 R’000
2015/16 R’000
2016/17 R’000
Revenue
Expenditure
(Loss)/Surplus
89,449
75,564
13,885
86,049
85,044
1,005
93,633
90,951
2,682
100,187
97,534
2,653
107,200
104,361
2,839
FINANCIAL PLAN
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
REVENUE AND EXPENDITURE ESTIMATES – EAFF
2012/13 R’000
2013/14 R’000
2014/15 R’000
2015/16 R’000
2016/17 R’000
REVENUE 63,824 66,156 70,786 75,742 81,043
EXPENSES
62,245 66,107 70,736 75,688 80,986
SURPLUS/DEFICT 1,579
47 50 53 57
STRATEGIC RISK REGISTER
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Risk number
Risk Description EAAB ActionPlan
Residual Risk Rating
Risk Owner
GR1 Ineffective communication of investigation results to the public.
Inspection and investigation policy to be developed to inform and guide process for quality assurance of investigation results / reports prior to distribution to the public.
High EM: Enforcement
STRATEGIC RISK REGISTER
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Risk number
Risk Description EAAB ActionPlan
Residual Risk Rating
Risk Owner
GR2 Budget constraints hampering achievement of Marketing targets.(i.e. Consumer education workshops).
An effective budgeting and strategic planning process has been put in place. (i.e. Inclusion of Marketing budgetary requirements in budgeting process).
Moderate CEO
STRATEGIC RISK REGISTER
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Risk number
Risk Description EAAB ActionPlan
Residual Risk Rating
Risk Owner
GR3 Problematic historical relationship with the Services Seta.
MOU entered between EAAB and SSETA in respect of appointment of EAAB as quality assurer.
Moderate CEO
GR4 Road shows and awareness materials do not reach target audience (i.e. consumer).Inapt partner used for consumer education programs.
Monitoring of Actual implementation of planned initiatives as per approved Marketing Strategy.
High Marketing and Communications Manager
STRATEGIC RISK REGISTER
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Risk number
Risk Description EAAB ActionPlan
Residual Risk Rating
Risk Owner
GR5 Non compliance with legislative requirements (The South African Constitution; Estate Agency Affairs Act; Public Finance Management Act; Preferential Procurement Framework Act; Financial Intelligence Centre Act; Labour Relations Act; SA Qualifications Authority Act; Skills Development Act).
PFMA and Treasury compliance checklist in place.Develop compliance checklists for all applicable legislation for quarterly monitoring and reporting to Board.
High Board Secretary
STRATEGIC RISK REGISTER
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Risk number
Risk Description EAAB ActionPlan
Residual Risk Rating
Risk Owner
GR6 Lack of transformation within the industry.
Transformation committee established. Effective functioning Transformation Committee.
High CEO/Board
GR7 Non-evaluation of performance of Board and Committees.
Evaluations process is currently being established
High Board Secretary
STRATEGIC RISK REGISTER
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Risk number
Risk Description EAAB ActionPlan
Residual Risk Rating
Risk Owner
GR8 Ineffective organisational structure to implement strategic plan and mandate.
Inclusion of organisational structure review in the annual organisational business planning.
Moderate CEO
GR9 Slow resolution of queries received and escalated by the call centre. (i.e. queries not resolved within 5 days as per policy).
Appointment of Customer Relations Manager and department to interface between internal query process and the customer.
Moderate Customer Relations Manager
STRATEGIC RISK REGISTER
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Risk number
Risk Description EAAB ActionPlan
Residual Risk Rating
Risk Owner
GR10 Not meeting expectations of stakeholders. Inadequate awareness measures (e.g. Road shows; Newsletters; Magazine).
Conduct a stakeholder survey to determine level and effectiveness of awareness measures in place and to highlight expectation gap.
Moderate CEO
GR11 Staff competence not adequately assessed.
Implementation of Performance Management system
Moderate CEO
STRATEGIC RISK REGISTER
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Risk number
Risk Description EAAB ActionPlan
Residual Risk Rating
Risk Owner
GR12 Inadequate communication for reinforcing of mandate to Management and staff.
Internal Communications Policy reviewed and approved by EXCO on an annual basis. Internal communication policy work shopped and communicated to EAAB staff.
High Marketing and Publications Manage
STRATEGIC RISK REGISTER
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Risk number
Risk Description EAAB ActionPlan
Residual Risk Rating
Risk Owner
GR13 Fidelity Fund target growth not met.
Implement a separate governance structure to monitor growth.
High Board members
STRATEGIC RISK REGISTER
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
Risk number
Risk Description EAAB ActionPlan
Residual Risk Rating
Risk Owner
GR14 Low interest of individuals to enter the industry due to uncertain nature of an estate agents income.Lack of government support and direction to increase incentives.
An effective transformation committee to review and determine action plan to address support structures for estate agents sustainability.
An effective transformation committee in place to ensure issues are addressed.
High CEOTransformation committee
REDRESSING THE PAST, BUILDING THE FUTURE,
GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM
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