An Update on the Transformation Programme

1. An Update on the Transformation Programme Building a New Home Affairs Presentation to the Select Committee on Social Services 4 JUNE 2008

2. The 2004-05 audit clearly indicated the need for change • Following a disclaimer in the audit for 2004-5, the Minister of Home Affairs – with the Ministers of Finance and Public Service and Administration – mobilised a Support Intervention Team (SIT). The SIT began its work in June 2006. • The main work of the SIT was to analyse the root causes of the problems at the DHA and make recommendations. • Their report was made available in the first quarter of 2007 and accepted by the Committee of Ministers.

3. The Support Intervention Team confirmed deeply rooted problems • The SIT reported that there were deeply rooted problems with: • Leadership and Management; • Human Resources and the organisational design; • Information and Communication Technology; • Service Delivery; and • Financial Management and internal control. • The response of Minister, supported by the Cabinet, was to launch a comprehensive and well-resourced turnaround over three years

4. There are fundamental issues which must be addressed at Home Affairs Context Scoping study for TAP: Selected Observations Case for Action • Qualified audit reports • Poor asset management • Fruitless and wasteful expenditure Financial Management and Controls Key Themes • Concept of citizen or customer as “king” alien • Cumbersome business management processes • Loss of key people on a regular basis Service Delivery • Low motivation, poor supervision • Infringement of standard business rules & breach of security • Aversion to technology • Scant attention to risk management • Weak management & control processes Corruption, Security & Risk • Steeply hierarchical management structure • Over-centralised decision making • Limited business understanding: who is the customer? • Inappropriate training • Limited management skills Organisational Structure & People • Unstable IT and communication Infrastructure, • Inadequate Infrastructure rollout to local and international offices) • Systems not linked to one another (e.g. Border Post immigration systems) • Duplication of systems and information (silo-based approach), which is costly and effects security • Inappropriate offices layout and limited footprint • Rudimentary asset management practices IT & Facilities Source: DHA Interviews, Inter Ministerial Report

5. Our objective for the Turnaround is clear To transform the department into a modern, efficient, cost-effective service organisation responsive to the needs of South African citizens, residents and visitors to our country

6. We have completed Phase 1 of the Turnaround which focused on quick wins and design…Our focus is now on implementation Building a new Home Affairs Phase I Phase 2 Implement Early Value Realisation Define Design & Develop Embed Change Stages Transformation Implementation Low Piloting Strategy & Future End State Definition including Roadmap Criticality/ Urgency Stabilisation & Quick Wins Time High • Implement the transformation roadmap • Apply change management to ensure successful implementation • Embed changes by providing long term enabling incentives, structures and tools Objectives (Why) • Stabilise key management processes • Implement early value initiatives" Quick Wins” to galvanise support for the initiative • Define the future service delivery model • Determine roadmap to reach end state • Test rollout plans in a controlled setting before full implementation Fundamentally Improve The Customer Experience

7. Phase I realised a number of key achievements (1/2) Phase I Overview and Key Achievements Selected Achievements

8. Phase I realised a number of key achievements (1/2) Phase I Overview and Key Achievements Selected Achievements

9. Phase I realised a number of key achievements (2/2) Phase I Overview and Key Achievements Selected Achievements

10. In particular, the Vision & Design team completed the design of the New Home Affairs operating model Overview of process followed and consultation Current state analysis Visioning Design • In-depth analysis of current situation and issues by the different design teams • Interviews with stakeholders • Customer survey • 1st Visioning workshop Sept 10 to discuss and validate the current state analysis • 2nd Visioning workshop Sept 13 on Legislative framework • 3rd and 4th Visioning workshops Sept 27 and Oct 4 to determine targets and principles for the new model and extent of separation between CS and NIB • 1st EXCO workshop 14 Nov – discussion and validation of part 1 of the operating model • 2nd EXO workshop 27 Nov – discussion and validation of part 2 of the operating model • EXCO presentation 4 Dec on integral New Home Affairs model All workshops conducted with DHA wide management representation present Current state analysis High-level operating model DHA Executive leadership structure New Home Affairs operating model

11. Customers Channels Services A unique feature in the model is that Customer needs drove the design of the New Home Affairs Service Delivery Model Service Delivery Model People Facilities Processes Customer Cube Operating model IT What? How? • Which services will be offered to which customers through which channels? • What service and productivity levels are required? What processes will link our business architecture to our customers in the delivery of our services? What staff with what skills do we require? What IT and facilities do we need to deliver services to our customers? The organizational structure will result from — not drive — the design of the service delivery model Source: A.T. Kearney

12. Going forward, 55 projects - clustered in 7 workstreams - have been identified to achieve the total transformation, to be completed over a 2-3 year period Proposed High-Level Programme Structure – 2008 and Beyond Finance IT Civics Support Services NIB 2 1 3 4 5 • 5 Functional Workstreams – • Civics • NIB • Support Services • Finance • IT Communications Transformation(1) ID Process Transformation1 Finance Transformation(1) FIFA 2010 Design and Planning Online Verification Roll Out Budgeting Split Security & Investigations Transformation(1) Marpless System Implementation Late Registration Roll-Out Performance Mgmt Implementation IT Application Realignment to New Architecture Memory ID Card Pilot Security Upgrade Revenue Mgmt Roll-Out Permits Transformation1 Passport Machine & Process Implementation MOUs and SLAs with 3rd parties Policy & Process Optimisation Payroll verification Refugee Transformation and Footprint Roll-Out B/M/D redesign (incl certificate decentralisation Procurement Transformation(1) HR Transformation(1) NPR & Data Clean Up Contact Centre Ramp-Up 2nd Wave SLAs Lindela Contract Optimisation HR Policy and Strategy Birth Network Expansion Supplier Sourcing EDMS Information Mgmt Trans-formation (incl. Archiving) Inspectorate Transformation(1) Audit & Risk Implementation Monitoring & Evaluation Centre of Excellence Establishment of PMO Network Infrastructure Upgrade Footprint Optimisation (incl. MPCCs) Foreign Office and Ports of Entry Review Business continuity Office Refurbishments Fleet Optimisation Mobile Unit Optimisation Real Estate Optimisation 5 12 7 5 6 • 2 Cross-Functional Workstreams – • Organisational Implementation • Organisational Governance & Operational Control 6 Leadership Appointments Change Management Employee Relations Reporting Line Split Employee Database Baseline Job Profiling & Skills Gap Analysis Performance Agreement Realignment Payment & Level Adjustments Matching & Staff Redeployment Training Recruiting 11 7 Delegation of Authorities Implementation Policy Framework & Legislative Programme Government Relations Strategy & Plan Operations Management Roll-Out Committee Structure Roll-Out 5 Programme Management Office (PMO) Organisational Projects Evaluation & Monitoring Project Communications GPW Corporatisation Oversight Scaffolding 4 Work-stream PMO Project Sub-project Note: (1) Transformation is a holistic implementation programme of a specific function beyond just the reorganisation; It includes sub-projects involving process, system, facilities and capability changes; It will work closely with the organisational implementation team on the staff implications

13. The 5 functional workstreams will focus on transforming Home Affairs to dramatically improve the customer experience Illustrative High Level Functional Workstream Descriptions Note: (1) Benefits will be driven by the change scenario and projects that DHA selects

14. 2 cross-functional workstreams and the PMO will centrally drive the reorganisation, organisational governance and the overall programme High Level Cross-Functional Workstream Descriptions Illustrative Note: (1) Benefits will be driven by the change scenario and projects that DHA selects

15. Work on the implementation has already begun Illustrative1 Transformation Road Map and Selected Milestones 2008 2009 2010 15-25% 55-65% % Completion of Transformation Programme 75-85%

16. We have designed the programme for Phase 2 based on five principles Bottom-up build – All potential initiatives to be implemented in 2008 and beyond have been gathered from the workstreams and business units and grouped into projects Top-down programme structure – Projects have been grouped into a manageable set of 5-10 workstreams and set up either within the new organisational structure or as centrally-coordinated cross-functional activities Prioritisation and sequencing – Projects have been prioritised and sequenced within each workstream based on the degree of business benefit it will generate, costs and implementation dependencies Governance – Each project has a clear governance and support structure Driven by the PMO and sponsor and supported by FeverTree-A.T. Kearney consultants Driven by the PMO and sponsor and supported by another consultancy/ specialist Monitored by the PMO and supported by another consultancy/ specialist Monitored by the PMO and implemented by the business Scenarios – 3 change scenarios have been developed varying in scope and pace Principles of the Programme Design

17. Thank You