Operational efficiency

1. Operational efficiency 20 November 2007

2. Contents • Background • Approach • Context • Initiatives • Results

3. Background • Strategic mapping exercise in 2006 • Restructuring thereafter • Senior programme manager position created • Strategy and Planning sub-programme established • M&E unit established

4. Background - Budget Architecture • Opex 7% of total

5. What it’s about • Continuous improvement • Increased productivity • Doing things better – more with less • Minimising operational costs • Improving synergies • Simplification of administration • Ultimate improvement of outputs

6. Operational Efficiency Strategy • Assimilating, attaining, and extending best practices • Creating a unique and sustainable competitive position Choosing the race to run – e.g. innovation plan Run the race faster Adapted from: Michael Porter Context - operational efficiency and strategy

7. Process architecture to optimise operations Strategy Gaps Integration Tactical Execution (Services and Business Processes) Gaps Integration Operational Support and Enablers (Financial, Human, Technology) Strategic alignment

8. Initiatives • Streamline planning through planning framework • Approved planning cycle for • Strategic plans • Business plans • Estimates of National Expenditure • Policy options for funding

9. Initiatives • Quarterly and monthly reporting • Financial analysis of cost architecture • Improved financial efficiency through detailed monitoring of transfers • IT infrastructure - document management system • Vacancy rate – 8% moving target

10. Initiatives • Action plan on audit findings • Asset management • Policies and procedures developed • Information systems • User profile management procedures approved • Office building in the process of being transferred to DPW

11. Results • Reprioritisation for critical project funding • Improved operations • However, we strive for continuous improvement

12. Thank you (#121586)