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Productivity SA Quarterly Performance Briefing

This presentation provides an overview of Productivity SA's 2016/17 quarterly performance, including achievements, challenges, and financial report. It highlights the organization's mandate, functions, and mission to promote employment growth and productivity in South Africa.

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Productivity SA Quarterly Performance Briefing

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  1. PRODUCTIVITY SA PRESENTATION TO THE PORTFOLIO COMMITTEE ON LABOUR – BRIEFING ON THE 2016/17 QUARTERLY PERFORMANCE (QPR 3 & 4) 28 June 2017 Presented by: Mothunye Mothiba Chief Executive Officer

  2. PRESENTATION OUTLINE • Mandate of Productivity SA • Functions of Productivity SA • Mission and Vision • 2016/17 Quarterly Performance: • Progress QPR 3 & 4 Performance Per Strategic Objective • Key strategic objectives achievements • Reasons for Deviations/Challenges and Remedial Actions • QPR 3 & 4 Performance per Programme • Financial Report (for Quarter 3 & 4) 2016/17 FY • Audit Action Plan and Progress Chief Directorate Communication | 2011.00.00

  3. THE MANDATE OF PRODUCTIVITY SA Productivity SA is established in terms of section 31 of the Employment Services Act, No. 4 of 2014 as a juristic person. Its mandate: To promote employment growth and productivity thereby contributing to South Africa’s socio-economic development and competitiveness.

  4. THE FUNCTIONS OF PRODUCTIVITY SA Section 32 of the Act read together with sections 2 (1) (e) and (g), and 7 of the Act enjoins Productivity SA to amongst others, develop relevant productivity competencies and competitiveness in workplaces, with a focus on the following key functions: • To promote employment and income growth, and workplace productivity. • To improve the employment and re-employment prospects of employees facing retrenchments and retrenched workers. • To provide productivity measures and evaluate productivity improvement and competitiveness in workplaces. • To conduct Research on productivity and competitiveness related matters, and collection and supply of information. • To promote social dialogue and inculcate a culture of productivity and competitiveness mind-set in the workplace and all spheres of the nation’s economic and community life.

  5. Vision and Mission Vision To lead and inspire a productive and competitive South Africa. Mission To improve productivity by diagnosing, advising, implementing, monitoring and evaluating solutions aimed at improving South Africa’s sustainable growth, development and employment through increased competitiveness

  6. 2016/17 QUARTERLY PERFORMANCE (QPR 3 & 4)

  7. LEGEND Implication: Achieved Performance Indicator is on track or reflects complete implementation. Target achieved 100% + Complete Implication: Not Achieved Performance Indicator behind schedule. Target not achieved 0% - 99% Complete

  8. PERFORMANCE PER STRATEGIC OBJECTIVE

  9. QUARTER 3 PERFORMANCE PER STRATEGIC OBJECTIVE

  10. QUARTER 4 PERFORMANCE PER STRATEGIC OBJECTIVE

  11. KEY STRATEGIC OBJECTIVE ACHIEVEMENTS • Productivity SA has experienced a progressive improvement in performance management, as well as overall performance of the organisation during the 2016/2017 Financial Year compared to the 2015/2016 Financial Year. • 28 (68%) of the 41 KPIs were achieved, with poor performance experienced only in the TAS Programme due to challenges still experienced with funding received late (in July 2016) and not in full (only R24m of the R97m received) as per the funding agreement from the UIF. • However, if the TAS target is revised taking into account that only R24m was received to cater for 33 companies, the overall performance improved to 87.5%, with 49 companies facing economic distress supported through Turnaround Strategies against a target of 33. • This translated in 4760 jobs saved through this intervention against a target of 1 650. • The financial performance for the year ended 31 March 2017 is a mixed bag of a positive and negative sentiment. The positive perspective is the fact that net results for the year reflect a surplus position of R820k, a significant improvement from the previous financial year loss of (R2.5m). However, the accounting adjustment provision for an impairment receivable amounting to R12m quickly obliterated the surplus. The end-results reflect a deficit for the year of (R11.9m). • The financial results also reflect a 3% operational expenditure improvement year on year. The cost improvement is attributable to the implementation of cost containment initiatives. • The cash position for the year sits at R22m

  12. KEY STRATEGIC OBJECTIVE ACHIEVEMENTS - QUARTER 3 & 4 • Total of 207 companies implemented the Workplace Challenge (WPC) Programme: • 99 new entrepreneurs joined the WPC • 108 companies implementing WPC • Turnaround Solution Programme: • 32 Future Forums were established to promote consultation and dialogue between management and workers on productivity improvement solutions. • 27 companies facing economic distress were supported to prevent retrenchment of workers. • 3080 jobs saved due to implementation of Turnaround Solutions. • Research Agenda, with a focus on measuring and evaluating productivity improvement, and competitiveness in workplaces and the economy has reports completed in the following sectors: • Report on Agro processing (in hide and skin) • Report on Platinum Groups Metals (Metal exchange) • Report on Fisheries: contribution to the blue economy • Report on Abalone

  13. CHALLENGES AND REASONS FOR DEVIATIONS • Productivity SA is underfunded and undercapitalised for effective delivery of its mandate to promote employment growth and productivity in South Africa. • Insufficient funding and/or late transfer of funds by the UIF makes it difficult to put in place measures and programmes to support companies facing economic distress, therefore, not being able to prevent job losses or minimise retrenchments as required in terms of s7 of the Act. • The Turnaround Solutions Programme targets were based on R97million rand grant from the UIF, however, only R24million was transferred to Productivity SA. • With the R24m received from the UIF Productivity SA could only support 33 instead of 200 companies in the 2016/17 Financial Year. • There has been Governance Gaps in the TAS Programme, which led to poor monitoring and accountability. • The departure of the Chief Economist impacted negatively on the completion of the Productivity Statistics in the reporting financial year.

  14. REMEDIAL ACTIONS • Regarding funding for the TAS Programme, the Board took this matter up with the Board of the UIF and the Minister, hoping that this will be rectified in the 2017/18 FY. • Governance Structures were strengthened and the Terms of Reference thereof revised. This will monitor compliance with the Funding Agreement between Productivity SA and the UIF. • The UIF has appointed Forensic Investigators to deal with the maladministration and irregularities experienced in the implementation of the Turnaround Solutions Programme. The report is awaited. • The Cost Containment Measures have significantly improved budget management, with expenditure continually diminishing. • Productivity SA Business Model is being reviewed to ensure that it support and is aligned with Government Strategic Programmes aimed at sustainable employment and income growth, as well as targeting high value projects and improved performance thereon to generate revenue. • A bailout of R11m was requested and approved by the DG. This assisted to ensure that there are sufficient funds to pay salaries for February and March 2017. • The position of Chief Economist was advertised and will be filled during quarter 2 02 2017/18 FY.

  15. PERFORMANCE PER PROGRAMME QUARTER 3 & 4 2016/17

  16. PROGRAMME 1: MARKETING AND COMMUNICATIONSQRT 3 PERFORMANCE

  17. PROGRAMME 1: MARKETING AND COMMUNICATIONSQRT 3 PERFORMANCE

  18. PROGRAMME 1: MARKETING AND COMMUNICATIONSQRT 4 PERFORMANCE

  19. PROGRAMME 1: MARKETING AND COMMUNICATIONSQRT 4 PERFORMANCE

  20. PROGRAMME 2: PRODUCTIVITY ORGANISATIONAL SOLUTIONS QRT 3 PERFORMANCE

  21. PROGRAMME 2: PRODUCTIVITY ORGANISATIONAL SOLUTIONS QRT 4 PERFORMANCE

  22. PROGRAMME 3:TURNAROUND SOLUTIONS QRT 3 PERFORMANCE

  23. PROGRAMME 3:TURNAROUND SOLUTIONS QRT 4 PERFORMANCE

  24. PROGRAMME 4: VALUE CHAIN COMPETITIVENESS – RESEARCH AND KNOWLEDGE MANAGEMENT QRT 3 PERFORMANCE

  25. PROGRAMME 4: VALUE CHAIN COMPETITIVENESS – RESEARCH AND KNOWLEDGE MANAGEMENT QRT 3 PERFORMANCE

  26. PROGRAMME 4: VALUE CHAIN COMPETITIVENESS – RESEARCH AND KNOWLEDGE MANAGEMENT QRT 4 PERFORMANCE

  27. PROGRAMME 4: VALUE CHAIN COMPETITIVENESS – WORKPLACE CHALLENGE QRT 3 PERFORMANCE

  28. PROGRAMME 4:VALUE CHAIN COMPETITIVENESS – WORKPLACE CHALLENGE QRT 3 PERFORMANCE

  29. PROGRAMME 4: VALUE CHAIN COMPETITIVENESS – WORKPLACE CHALLENGE QRT 4 PERFORMANCE

  30. PROGRAMME 4: VALUE CHAIN COMPETITIVENESS – WORKPLACE CHALLENGE QRT 4 PERFORMANCE

  31. PROGRAMME 5: HUMAN RESOURCES MANAGEMENTQRT 3 PERFORMANCE

  32. PROGRAMME 5: HUMAN RESOURCES MANAGEMENT QRT 3 PERFORMANCE

  33. PROGRAMME 5: HUMAN RESOURCES MANAGEMENTQRT 4 PERFORMANCE

  34. PROGRAMME 5: HUMAN RESOURCES MANAGEMENT QRT 4 PERFORMANCE

  35. FINANCIAL REPORT FOR THE 2016/17 FY AND THE AUDIT ACTION PLAN

  36. FINANCIAL RESULTS FOR THE YEAR ENDED 2016/17

  37. FINANCIAL RESULTS FOR THE YEAR ENDED 2016/17

  38. SUMMARY ON DEALING WITH AUDIT FINDINGS FOR THE 2015/16 FY

  39. Thank You…

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