GPW Strategic Plan 2006/2007 Presentation to the Portfolio Committee 17 May 2006

1. Government Printing Works GPW Strategic Plan 2006/2007Presentation to the Portfolio Committee 17 May 2006

2. Government Printing Works VISION • First choice security printer in Africa!

3. Government Printing Works MISSION • Provide cost-effective, reliable and timeous services to all spheres of Government in printing and dissemination of a full suite of Government information through technology and services excellence, and • Provide the public equitable information and above all, to form partnership with Government to achieve their goals through technology and service excellence.

4. Government Printing Works VALUES • To ensure client information is secure at all times in any security or non-security printing work and commit to the value system which include the following: • Honesty • Reliable • Trustworthy • Client satisfaction

5. Government Printing Works MANDATE • To provide the state with security printing of passports, identification documents, visa labels and other face value documents printed in a secure environment. • Management, production and distribution of central Government information products, • Provide secure printing needs of Government

6. Government Printing Works BUSINESS STRUCTURE

7. Government Printing Works GPW ORGANISATIONAL STRUCTURE Chief Executive Officer Senior Mngr Administration Exec Director HR & Transformation Chief Financial Officer Exec Director Marketing & Branding Exec Director Operations & Technology

8. Operations & Technology Structure • Operations Manger • Factory Manager • Ass. Factory Managers x2 Technical Planning Contract Printing Origination Digital Printing Letter Press Litho Maintenance Form Binding Book Binding Security Binding

9. Government Printing Works STAFF COMPLEMENT • 630 employees represented at: • National Office (Pretoria) • Polokwane • Mmabatho • Bisho • Cape Town

10. Government Printing Works PRODUCTS AND SERVICES • Security printing and related services (high security ink to DHA immigration offices, meat marking ink to abattoirs, forensic analysis of fraudulent documents such as ID’s and revenue stamps). • Distribution & dissemination of government Information: • Government Gazettes • Annual Reports • Tender bulletins • Stationary Services • Warehousing & Distribution of standard stationery items (Machine registers, Fire arm licenses, etc) • Warehousing & Distribution of face value items

11. Government Printing Works GPW ANTICIPATED TRENDS • Push of electronic information as opposed to “pulling” by stakeholders will accelerate demand and use of electronic print • Acceleration towards electronic print will reduce conventional print > diminishing use of conventional equipment • Increasing need for Security Print will absorb increased capacity on conventional equipment and defer redundancy of this equipment • Systematic development of “invisible” electronic print in security printing will eventually render conventional equipment mostly redundant • Digital printing will remain to print reduced volumes of security hard copy • Stationery consumption and product mix is likely to decrease dramatically as customers rapidly migrate to electronic data capturing. Volumes over time are likely to be a fraction of the past and will diminish to become a smaller support component of the new corporatised enterprise

12. Government Printing Works GPW STRATEGIC PLAN

13. Government Printing Works 1. DIRECTION SETTING > STRATEGIC INTENT

14. Government Printing Works 2. SWOT Analysis

15. Government Printing Works 2.1. Strengths

16. Government Printing Works 2.2. Weaknesses

17. Government Printing Works 2.3. Opportunities

18. Government Printing Works 2.4. Threats

19. Government Printing Works 3.0 KEY THRUSTS, STRATEGIES & DELIVERABLES

20. Government Printing Works BUSINESS DESIGN TO REALISE THE STRATEGIC INTENT

21. Government Printing Works DEVELOP CORE BUSINESS PROCESSES • consultative crafting of the core business process • Scoping of core sub processes to be mapped (see Key Thrust "Process Improvements" • Development of new Organisation Design around 'to be business processes

22. Government Printing Works EXECUTE PUBLIC ENTITY • Preparation of a business case • Develop the Legal Transformation Process towards reconstituted organisation as public entity • Development of Holistic all encompassing conversion plan and accountabilities • Development of a new corporate identity and logo around 'brand promise'

23. Government Printing Works MARKET DEVELOPMENT

24. Government Printing Works DEVELOP CREATIVE & AGGRESSIVE MKTG STRATEGY & PLAN • Quantitative Market Survey and Analysis • Qualified and quantified present and future print market trends • Detailed competitor analysis • Benchmark against similar operations/ technology

25. Government Printing Works DEVELOP STAKEHOLDER RELATIONS • Relationship/marketing managers (visit clients regularly & evaluate needs) appointed • Introduction of a call center

26. Government Printing Works BUSINESS PROCESS IMPROVEMENTS

27. Government Printing Works BUSINESS PROCESS IMPROVEMENTS • Assess and enhance business and systems processes • Develop ISO standards for work environment • Select and implement production control system

28. Government Printing Works SYSTEMS IMPROVEMENT • Select and implement effective and efficient business systems • Upgrade infrastructure and environment • Create capacity for proper Management Information and Business Intelligence

29. Government Printing Works SECURITY IMPROVEMENTS • Develop process and policies for information protection • Upgrade physical security

30. Government Printing Works POLICY REVIEW AND ALIGNMENT • Development of policies and procedures

31. Government Printing Works FINANCE IMPROVEMENTS • Assess finance system • Establish inventory of assets • Identify cost & resource driver • Implement Activity Based Costing

32. Government Printing Works ORGANISATIONAL ALIGNMENT & STAFFING • Restructure organisation - flatter structure • Develop a health and safety strategy • Conduct skills assessment Restructure organisation - flatter structure • Develop a health and safety strategy • Conduct skills assessment

33. Government Printing Works ORGANIZATIONAL TRANSFORMATION

34. Government Printing Works CREATE PERFORMANCE BASED CULTURE • Develop Strategy Delivery system (performance management system) • Assess organisation climate via Organisation Climate Survey • Develop Performance Based Reward (Pay) System> Job Descriptions + Job Grading + Market benchmarking + Pay Strategy • Develop Employment Relations strategy to meet GPW needs. Structures and procedures • Consultatively develop and inculcate Values & Ethics • Establish competent legal advisory service • Develop and implement seamless intra-communication system • Development of Cross Functional Teams to implement strategic initiatives (CFTs)

35. Government Printing Works IMPROVE INTERNAL PEOPLE COMPETENCIES • Strengthened People Balance Sheet • leadership development • work place skills plan • staff development programmes

36. Government Printing Works PARTICIPATIVE DEVT OF VALUE SYSTEM • Participative Value Crafting Process • Value roll out process • Values Steering Committee

37. Government Printing Works IMPROVE CORPORATE GOVERNANCE • Development and implementation of an internal audit coverage plan • Risk management plan

38. Government Printing Works ENHANCED OPERATIONAL CAPACITY & CAPABILITY

39. Government Printing Works RELOCATE TO AN OPERATIONALLY EFFICIENT SITE • Development of a relocation strategy • Identification of required facilities based on equipment specifications and user requirements • Construction of a new building • Development of funding and budget requirements • Preparation of a relocation Plan • Identification and and disposal of obsolete/superfluous assets • Physical relocation of machinery and equipment • Arrangement of opening ceremony to mark implementation

40. Government Printing Works DEVELOP EQUIP REPLACEMENT PROG ALIGNED TO STRATEGY • New integrated system for the entire printing works • Development of overall asset management/maintenance/replacement strategy

41. Government Printing Works DEVELOP R&D STRATEGY • Define R&D requirements • Define expectations for R&D in line with business strategy • Identify R&D risks and mitigating measures • Develop appropriate R&D matrix to measure contribution on ongoing basis • Develop interface/communication channels between R&D and rest of organisation (esp. sales/marketing and production) • Prepare and approve R&D budget

42. Government Printing Works DEVELOP EXT RELATIONS & FOR STRATEGIC ALLIANCES • Communicate with stakeholders • Manage government relations • Build lender relationships • Develop public relations program • Manage relations with board of directors • Establish corporate governance policies • Develop community relations • Manage legal and ethical issues • Communicate corporate performance to stakeholders • Manage compliance • Actively engage in BEE

43. Government Printing Works DEVELOP SECURITY STRATEGY – PERSONNEL & OPERATIONS • Perform comprehensive analysis of security issues • Define security requirements • Design security strategy • Implement Security Strategy

44. Government Printing Works INVESTIGATE & DEVELOP REGIONAL PRESENCE • Perform provincial stakeholder analysis/survey (in all 9 provinces) • Perform detailed analysis of functions and cost of provincial offices • Match needs identified to GPW strategy and existing provincial capabilities • Cost additional functions/offices required • Perform cost/benefit analysis • Make a decision to create/ continue/expand/close provincial offices • If continued existence warranted, re-engineer processes to maximise supply chain efficiency. • Develop matrix to measure performance on ongoing basis

45. Government Printing Works BUSINESS MODEL FOR CONVERSION • Establish a schedule 3b specialist entity – GPW Corporate • Establish 2 distinct business units: • GPW – Digital (core function would be security printing) • GPW – Standard (Govt Gazettes/annual reports, etc)

46. Government Printing Works REASONS FOR CONVERSION • To ensure effective implementation of GPW Conversion: • Re-focus its core business to enable specialist security printing • Operational effectiveness to deliver a total cost solution (effective & efficient-seamless & integrated) • Develop unique capabilities and assets to meet the needs of Governments & Citizens.

47. Government Printing Works Strategic Vulnerability Areas • People • Staff turnover - inability to attract the best artisans • Management • Leadership ito strategic & operational depth lacking • Technology • Very old machines – average age +40 years (efficiency/quality affected) • Location • Current location not ideal – very old & inappropriate

48. Government Printing Works Priorities – 2006/2007 • Deliver effective service delivery • Conversion and options • New facility – Head Quarters (R250,0 mn) • Equipment and Machinery Replacement (R77,0mn) • New South African passport • Effective Marketing and Branding

49. Government Printing Works THANK YOU