The SANP Balanced Scorecard Rollout Workshop – 1 st December 2005

1. The SANP Balanced Scorecard Rollout Workshop – 1st December 2005

2. PURPOSE • To introduce the Balanced Scorecard to SANParks employees and clarify its intentions as a business performance tool

3. WORKSHOP OBJECTIVES • SANParks employees to understand what is the Balanced Scorecard and how it works • Develop, align and confirm measures, targets, KPAs and personal scorecards. • Equip management with tools to assist others with this process • To introduce change agents and their role in this process

4. 1994 EVOLVEMENT OF DEMOCRATIC SOCIETY • Change of Government • Democratically Elected Government in power. • Until 1994, a white minority governed South Africa and all laws and policies privileged this group. In terms of tourist profile, governance, finance, scientific focus and corporate and public culture, South Africa’s National Parks were created and managed in this image. • National Parks Board (NPB) mainly white male dominated

5. Bill of Rights • The Bill of Rights Section 24 states that: • Everyone has the right • to an environment that is not harmful to their health or well-being; and • to have the environment protected, for the benefit of present and future generations, through reasonable legislative and other measures that • Prevent pollution and ecological degradation; • Promote conservation; and • Secure ecologically sustainable development and use of natural resources while promoting justifiable economic and social development

6. 1995 CONFIRMATION OF NEW BOARD • A new Board was elected to work on the following vision: National Parks will be the pride and joy of all South Africans 1996 ORGANISATIONAL NAME CHANGE • National Parks Board changed to South African National Parks • Changes that happened: • improve profile of the organisation • build new image • have better public relations • inaugurate a neighbours relations strategy • Birth of Social Ecology: established to develop and nurture good relations with communities adjacent to National Parks by initiating mutually beneficial dialogues with them, by working in partnership with them and by ensuring that the Park’s existence is a direct benefit to the community

7. ORGANISATIONAL CHANGE AND MANAGEMENT 1997 NON CONSERVATION CHIEF EXECUTIVE EMPLOYED • A Chief Executive with expertise in Corporate Management rather than the Natural Science demonstrated the priority of introducing a social and business orientation to all strategic decision making 1998 CORPORATE PLAN • A new Corporate Plan was adopted, sub-titled [a framework for transformation] • Transformation mission created: • The Transformation process is driven by the overriding need to shed organizational principles, policies and practices that have for decades been nurtured by the apartheid philosophy.

8. 2001 – 2002 McKINSEY AND COMPANY LOOKED AT THE FOLLOWING: • Organizational options for SANParks • Building a strong constituency for conservation • Funding • Conservation Management • Revenue Opportunities

9. FUTURE PRIORITIES OUT OF McKINSEY PROCESS • Develop tourism and marketing capability • Revamp booking system • Review salary structures at senior levels • Improve efficiency through corporate service restructuring • Improve operating efficiency through establishment of operational metrics tracking programme • Develop a performance management system linked to capacity building

10. 2004 – PRESENTBalanced Scorecard Addresses the McKinsey issues of: • Improve operating efficiency through establishment of operational metrics tracking programme • Develop a performance management system linked to capacity building Business performance management system to: • Create alignment and common understanding of our strategy throughout all levels of the organisation. • Improve organisational performance through appropriate measurement and monitoring of the right things. • Provide a basis for the introduction of an employee performance appraisal system.

11. WORKSHOP EXPECTATIONS • Each employee to be motivated about the process and its intentions • Employees to have better understanding of their and others roles within SANParks • Successful implementation should create growth for the organisation, its employees and the people linked to it (surrounding communities) • To understand the need for alignment of SANParks to its value propositions and how this impacts each employee.

12. Workshop Process • Introduction and background to the SANParks BSC • Rollout Process • 1 day workshop session • Meet with Supervisor to agree Measures and Targets individually – within one month of completion of workshop • Forward agreed measures and targets to Busi/Chris to check and agree • Workshop with their subordinates (dates agreed beforehand) and take them through this process – utilising change agents and members of the BSC team where applicable • All workbooks and slides will be made available as a package to assist in the rollout • To be completed to C band by 6th Feb 2006

13. Overview of the BSC • What do you understand the BSC to be? • Why has SANParks chosen the Balanced Scorecard? • How will it help SANParks?

14. Understanding the Balanced Scorecard FINANCIAL Objectives Measures Targets Initiatives “To succeedfinancially,how should weappear to ourstakeholders?” CUSTOMER INTERNAL BUSINESS PROCESS “To achieve our value proposition,how should weappear to ourcustomers?” Objectives Measures Targets Initiatives “To satisfy our stakeholdersand customers,what businessprocesses mustwe excel at??” Objectives Measures Targets Initiatives LEARNING AND GROWTH “To achieve our value proposition ,how will we sustain ourability tochange andimprove?” Objectives Measures Targets Initiatives

15. Definition • The Balanced Scorecard is a measurement, management and communication tool which: Provides a comprehensive business measurement and management framework Translates a value proposition into achievable, aligned objectives, measures and targets throughout SANParks Ensures that all performance measures are aligned and are: - both long and short term - leading and lagging - linked through cause and effect

16. Constituency building Tourism Conservation Our Business Architecture Value creation & delivery to Government, Customers and Stakeholders Park Operations Corporate Support Functions Value Proposition Differentiating Activities Corporate Values Guiding Principles Foundation Mission Why we Exist Vision Word Picture of the Future

17. Our Corporate Structure SANParks BOARD Chief Executive Officer Executive Manager CEO’s Office Chief Operating Officer Park Operations Core Functions Corporate Support Functions Exec Director: KNP Exec Director: Conservation C F O: Finance Exec Director: PARKS Exec Director: Tourism Head of Division: HR Exec Director: People and Conservation Head of Division: Comms Head of Division: Corporate Support Services Legal Services

18. Vision and Mission VISIONNational parks will be the pride and joy of all South Africans and of the world MISSIONTo develop and manage a system of national parks that represents the biodiversity, landscapes, and associated heritage assets of South Africa for the sustainable use and benefit of all

19. Corporate Values • We shall embrace, and be guided by environmental ethics in all we do • We shall promotetransformationwithin, and outside of the organization • We shall strive for service excellence at all times • We shall act withprofessionalism at all times • We shall adopt, and encourageinitiative by all • We shall treat all our stakeholders with equity and justice • We shall exercise discipline at all times • We shall show respect to all • We shall act with honesty and integrity • We shall strive for transparency and open communication at all times

20. Biodiversity Values • We adopt a complex systems view of the world whilst striving to ensure the natural functioning and long term persistence of the ecosystem under our care • We aim at persistent achievement of biodiversity representivity and complementarity to promote resilience and ensure ecosystem integrity • We can intervene in ecosystems responsibly and sustainably, but we focus management on complementing natural processes under a “minimum interference” philosophy • We accept with humility the mandate of custodianship of biodiversity for future generations while recognising that both natural and social systems change over time

21. SANParks Value Proposition To manage a system ofNational Parksthat represents the biodiversity,landscapeandassociatedheritage assetsofSouth Africa providing visitors with access to value for money unique experiences delivered through operational excellence that is underpinned by authentic constituency building and corporate governance for the benefitof all stakeholders

22. Translating the Vision Value proposition your Value proposition

23. Understanding the Balanced Scorecard FINANCIAL Objectives Measures Targets Initiatives “To succeedfinancially,how should weappear to ourstakeholders?” CUSTOMER INTERNAL BUSINESS PROCESS “To achieve our value proposition,how should weappear to ourcustomers?” Objectives Measures Targets Initiatives “To satisfy our stakeholdersand customers,what businessprocesses mustwe excel at??” Objectives Measures Targets Initiatives LEARNING AND GROWTH “To achieve our value proposition ,how will we sustain ourability tochange andimprove?” Objectives Measures Targets Initiatives

24. External Environment of SANParks SANParks Government

25. Who are our customers/stakeholders? • SA National Government • Provincial and Local Authorities • International and Local Agencies • Employees • Business Partners • Commercial Operators • Concessionaires • Suppliers • Citizens • Paying and non-paying visitors • Consumptive Users • Involved Communities • South African Public • Donors • Board • International Tourists

26. Implementing the SANParks Balanced Scorecard

27. The SANParks Team Members Sydney Soundy – Project Sponsor Chris Rumbell – Project Manager Cillié Malan – Risk Management Busi Gcabashe – Human Resources Joep Stevens - Tourism Peter Novellie – Conservation Services Sipho Mabena - Communication Gary de Kock – Parks Hannes Combrink - Finance Blake Schraader - Kruger Boyce Dabula – Human Resources Mike Knight – Conservation Services Chris Marais – Human Resources Sibongile Masuku Van Damme – P&C

28. The SANParks BSC Process Mission Value Proposition Corporate Objectives Corporate Measures Strategic Initiatives Divisional Measures and Targets Senior Management Measures and Targets Rest of the organisation Measures and Targets

29. The SANParks BSC Process Mission Value Proposition Corporate Objectives Corporate Measures Strategic Initiatives Divisional Measures and Targets Senior Management Measures and Targets Rest of the organisation Measures and Targets

30. The SANParks BSC Process Mission Value Proposition Corporate Objectives Corporate Measures Strategic Initiatives Divisional Measures and Targets Senior Management Measures and Targets Rest of the organisation Measures and Targets

31. Financial Grow revenues (incl. alternative sources of revenue) Internal Processes Attain leadership in biodiversity and cultural heritage management LearningandGrowth Attract and retain the best human capital Strategic Business Plan Improve income to cost ratio Customers and Stakeholders Transform domestic guest profile, through growth, to be representative of SA society Enhance SANParks’ Reputation Become the nature-based Tourism destination of choice Be the custodian of choice for Protected Areas Contribute to local educational and socio-economic development Achieve good corporate governance management Effective management of revenue and expenditure (OPEX & CAPEX) Advance Strategic Human Resources management Enhance Research and Development Implement broad based transformation Ensure best practices in understanding and managing HIV and AIDS (and associated diseases) Sharing and providing access to information and knowledge Create a culture of learning and development of employees

32. The SANParks BSC Process Mission Value Proposition Corporate Objectives Corporate Measures Strategic Initiatives Divisional Measures and Targets Senior Management Measures and Targets Rest of the organisation Measures and Targets

33. SANParks Measures and Strategic Initiatives • Measures have been developed to ensure delivery of the objectives

34. Strategic Measures

35. Strategic Measures

36. Strategic Measures

37. SANParks Strategic Initiatives • SANParks strategic initiative development • To attain targets that have been defined

38. Strategic Initiatives

39. Strategic Initiatives

40. Strategic Initiatives

41. Strategic Initiatives

42. Strategic Initiatives

43. The SANParks BSC Process Mission Value Proposition Corporate Objectives Corporate Measures Strategic Initiatives Divisional Measures and Targets Senior Management Measures and Targets Rest of the organisation Measures and Targets

44. Divisional Measures and Targets • Built around the responsibility matrix • Each Division has overall responsibility for the delivery of its specific objectives • Divisional / Directors KPA’s • Linked to the Objectives • Linked to the Measures • Linked to Strategic Initiatives • Targets are agreed

45. Key Performance Areas Effective leadership and human capital management Management of the financial health of the division Create and maintain a culture of good corporate governance and proactive risk management Ensure the effective delivery of broad based black economic empowerment (BBBEE) Develop and grow a sustainable nature-based tourism business for SANParks Deliver a sales and marketing strategy for SANParks Build purposeful relationships with key stakeholders Example – Tourism KPA’s

46. Example – Operations Div KPA’s

47. The SANParks BSC Process Mission Value Proposition Corporate Objectives Corporate Measures Strategic Initiatives Divisional Measures and Targets Senior Management Measures and Targets Rest of the organisation Measures and Targets

48. Senior Management Measures and Targets • Built around Divisional / Directors KPA’s • Objectives have been defined • Measures will mostly be defined and will be in support of the divisional measures • Initiatives will be detailed • Targets will be agreed • Roll out to be divisional

49. SANParks BSC Structure Mission Value Proposition Corporate Objectives Corporate Measures Strategic Initiatives Divisional Measures and Targets Senior Management Measures and Targets Rest of the organisation Measures and Targets

50. Rest of Organisation • Built on Senior Managers KPA’s • To C band • Objectives will be defined • Measures will be defined • Initiatives will be defined • Targets will be agreed