1 WHO HO I IS PR S PRODUC UCTIVI VITY PRESENTATION TO TIPED / - PowerPoint PPT Presentation

1

WHO HO I IS PR S PRODUC UCTIVI VITY PRESENTATION TO TIPED / GGDA Productivity SA on Performance Management Presented by: Mothunye Mothiba Chief Executive Officer 2

PRESENTATION OUTLINE • The Mandate of Productivity SA • Alignment to Government Policies and Programmes • Productivity SA Service Offering and Core Functions • Productivity Defined • Value Defined • Performance Management • What next 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 and an Entity of the Department of Labour. MANDATE. To promote employment growth and productivity thereby contributing to South Africa’s socio-economic development and competitiveness . 4

Vision To lead and inspire a productive and competitive South Africa . 5

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 6

VALUES Service excellence through implementation of relevant, productivity-enhancing solutions Market leadership through creative and innovative solutions Synergy with all partners to achieve common goals Collaboration with stakeholders in pursuing solutions to South Africa’s productivity challenges Honesty, integrity and professionalism 7

ALIGNMENT TO THE NDP AND THE MTSF 2014/15 – 2019/20 Ser ervic ice Deliv eliver ery O Outco tcome Lin ink to to th the e ND NDP Outcome 4: Decent employment through inclusive Chapter 3 of the NDP : economic growth. Target programmes that contribute to sustainable and inclusive growth and development. • Improve performance of the core productive sectors including manufacturing, agriculture and • Growth with rising employment creation and income growth  Jobs to increase from 13m to over 24m mining, local procurement and other programmes.  Unemployment to be reduced from 25% to 6%  GDP Growth at 5.4% (best case scenario) or 3.3% (worst • Increase growth of the small business sector case scenario) Outcome 5 : A skilled and capable workforce to support Chapter 9 of the NDP an inclusive growth path. • Improving education, training and innovation • Improve the linkage between FET institutions, SETAs and employers as the basis for improving • Develop world-class centres and programmes in the national responsiveness and quality in training system of innovation, training and development • Research, Development, and Innovation partnerships between government and the private sector strengthened Outcome 12 : An efficient and development oriented Chapter 13 of the NDP . public service • Implement programmes that improves efficiency and effectiveness of government • Stronger performance management and accountability

THE SERVICES AND CORE BUSINESS OF PRODUCTIVITY SA Section 32 of the Act enjoins Productivity SA to develop and enhance relevant productivity competencies and business efficiency in the workplace, with a focus the following Key Functions (Core Business ):  To promote employment, income and wealth growth, and increase workplace productivity. – Business Transformation and Competitiveness Improvement Programmes to enhance productivity and competitiveness of enterprises (emerging and existing) of all sizes within the IPAP Priority Sectors; and – Enterprise development and productivity training programmes to enhance the appropriate capacities of Small and Medium Enterprises and co-operatives to adopt world-class productivity enhancement best practices, with a focus on products, processes and people; and 9

THE SERVICES AND CORE BUSINESS OF PRODUCTIVITY SA Section 32 of the Act enjoins Productivity SA to develop and enhance relevant productivity competencies and business efficiency in the workplace, with a focus the following Key Functions (Core Business):  To provide support to enterprises facing economic distress and initiatives or schemes aimed at preventing job losses or minimising the retrenchment of employees. – Implementing Business Turnaround and Recovery plans and programmes to restructure and improve the productivity operational efficiency of the organisation. – Facilitating the establishment of Enterprise-Based Productivity Forums to promote dialogue on Productivity Improvement Strategies as well as training of members thereof. 10

THE SERVICES AND CORE BUSINESS OF PRODUCTIVITY SA Our Value Proposition : We offer Productivity and Competitiveness Improvement Solutions to accelerate wealth and decent employment creation, by enhancing the productive capacity and operational efficiency of enterprises throughout the business lifecycl e. Workplace Challenge Stable companies Turnaround Solutions Productivity Decline Organisational Emerging Solutions companies Break even Point (BEP ) “ICU” 11

Performance Management ( The African Poem) Every morning in Africa a Gazelle wakes up It knows it must outrun the fastest lion or it will be killed Every morning in Africa a lion wakes up It knows it must outrun the slowest gazelle or it will starve It doesn’t matter whether you are a lion or a 12 gazelle

Productivity VS Performance Management • According to Bernolak (1997) productivity means “how much and how good we produce from the resources used,” whereas The European Association of National Productivity Centres (EANPC, 2005) defines productivity as “how efficiently and effectively products and services are being produced.” • Efficiency in this context can be seen as “doing things right” or utilizing resources to accomplish desired results (Grünberg, 2004); whereas • Effectiveness, on the other hand, is often described as “doing the right things”; it refers to the extent to which customer requirements are met (Neely et al., 1995). • Thus, effectiveness highlights the importance of reaching a desired objective, whereas efficiency focuses on the process or means involved. • While high productivity can be a significant source of competitive advantage for companies (Grossman, 1993), it also contributes to the general well-being of a society. 13

COLLABORATION PRODUCTIVITY RATIO • In general, productivity is often defined as a relationship between output produced by a system and quantities of input factors utilized by the system to produce that output.

THE PRODUCTIVITY DEFINED In general, productivity is often defined as a relationship between output produced by a ‘ system and quantities of input factors utilized by the system to produce that output. Here, the output can be any outcome of the process, whether a product or service, while input factors consist of any human and physical resources used in a process. It follows that, in order to increase productivity, the system must either produce more or better goods from the same resources, or the same goods from fewer resources. S tated differently, productivity improvement refers to an increase in the ratio of produced goods or services in relation to resources used.

COLLABORATION PRODUCTIVITY OR NOT ?? • Doing the right things (effectiveness) • Doing things right (efficiency)

THE “WHAT” T” O OF PRODUCTIV TIVITY ITY Peter Drucker’s well-known comment sets a deceptively simple expectation for us – namely that once you have captured the numbers, you’ll be fully armed to somehow “make it better.” While labor measurement is not easy, it is the easier part of “Creating and Measuring …” The secret of productivity improvement lies in what you do, after you figure out how to measure it.

THE PRODUCTIVITY PROCESS Conversion OUTPUTS INPUTS Process Between Inputs (Human, Information, Raw Materials, Knowledge, Technology) and Outputs (information, Goods, Services) there is a blood sweat and tears process called “Conversion”/ Activities and Capability (A task that a particular Operations Management System can perform effectively) During “Conversion” ALL input factors are put together Labour is only one of the factors

Productivity as Value Driver ‘ QUALITY WORK QUALITY LIFE LABOUR • Positive work attitudes HIGHER STANDARD OF LIVING LABOUR • Skills upgrading • Incentives • Teamwork BUSINESS • Harmonious Labour- • Greater relations Competitiveness • Higher QUALITY HIGHER • Healthy workforce HIGHER Profitability PRODUCTS/ GDP PRODUCTIVITY GROWTH SERVICES • Participation in Productivity programmes GOVERNMENT • Higher/capita CAPITAL & SYSTEMS GDP • More Savings • Innovation POLICIES POLICIES OF OTHER Natural Phenomenon • Technology (FISCAL,MONETARY & WAGE POLICIES) COUNTRIES

‘ Value Defined A customer’s or citizen’s subj ective evaluation, adj usted for cost, of how well a good or service meets or exceeds expectations. Customers do not care about the firm’s maximizing is cost effectiveness or profit; rather they want to maximize value Therefore, Value is defined by the customer / citizen VALUE = PERFORMANCE / COST The Value Equation expresses value as a comparison of what a product or service can do against what it costs Performance describes what a good or service does for the customer or citizen. Typically performance is described in terms of three traits: Quality, S peed and Flexibility Cost represents all costs (obj ective and subj ective) that the customer incurs to acquire, use and dispose of the good or service.