STRATEGIC%20PLAN

1
STRATEGIC PLAN PRESENTATION TO THE PARLIAMENTARY
PORTFOLIO COMMITTEE ON TRANSPORT 14 March
2007 by ZAKES MYEZA Chief Executive Officer
2
INDEX

• Vision, Mission, Values and SACAA Act
• Operational Environment
• SACAA Profile
• Purpose of Strategic Document
• Situational Analysis
• Set Priorities
• Five (5) Strategic Objectives
• Key Analysis Current Situation
• Strategy Planning Process

3
INDEX Cont..

• Implementation of Strategy
• Strategy Roll out
• Financial Implications
• Conclusion

4
VISION

• REGULATORY EXCELLENCE IN AVIATION SAFETY AND
  SECURITY

5
MISSION
THE SACAA IS A PLAYER IN THE INTERNATIONAL ARENA
THAT SEEKS TO PROMOTE AND MAINTAIN A SAFE AND
SECURE CIVIL AVIATION ENVIRONMENT IN SOUTH
AFRICA, BY REGULATING AND OVERSEEING THE FUNCTION
OF THE INDUSTRY IN AN EFFICIENT, COST EFFECTIVE,
SUSTAINABLE AND CUSTOMER FRIENDLY MANNER
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SACAA VALUES

• COMMITMENT
• RESPONSIBILITY
• ACCOUNTABILITY
• CONSISTENCY
• KNOWLEDGE-SHARING
• INTEGRITY AND
• TRANSPARENCY

7
OBJECTIVES OF SACAA

• The SACAA was established on 01 October 1998
  under
• South African Civil Aviation Act No 40 as a stand
  alone civil
• aviation authority. Its objectives are as
  follows
• To control and regulate civil aviation in the
  Republic, and
• To oversee the functioning and development of the
  civil aviation industry, and, in particular, to
  control, regulate and promote civil aviation
  safety and security.

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SACAA PROFILE RACIAL COMPOSITION

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SACAA PROFILE Cont GENDER COMPOSITION

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PURPOSE OF STRATEGIC DOCUMENT

• The purpose of the strategic document is to
• Define the process involved in strategy
  formulation
• Document the short-term strategy for ICAO
  readiness by June 2007
• Document other short to medium term strategies
  by prioritising outcomes, and stratifying them
  in the expected years
• Use the document for performance agreements
  with stake holders
• Use the document for divisional score cards and
  in turn individual scorecards that are linked to
  the Performance Management System.

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SITUATIONAL ANALYSIS SACAA LEGACY

• The CEO appointed March 2006 conducted a
  situational analysis/ review of SACAAs business
  environment. The findings identified the
  organisation as a dysfunctional one and was
  manifested by the following
• Conflict of interest, e.g. Execs and Senior
  Managers are also Union members
• Incoherent and misaligned structure leading to
  structural conflicts and process disconnects.
• Culture of non-performance.
• Low employee morale and no confidence in top
  management.
• Poor systems and processes
• Poor industry view of organization's competence.

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SITUATIONAL ANALYSIS - SACAA LEGACY Cont..

• Negative findings in 1999 audit and 2001
  follow-up by the International Civil Aviation
  Organization (ICAO).
• Many of these findings were not corrected in the
  six (6) years since the audit
• This was reconfirmed by United States Federal
  Aviation Authority technical review
  conducted in June 2006.
• In September 2006 an immediate survival strategy
  was developed and continues to be in place
  focusing mainly on strategic objective one.
• (Emphasis will be on human resource
  requirements, strategic objective 5, as this is
  the ultimate risk in ICAO compliance)

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SET PRIORITIES

• Following the remedial actions submitted to, and
  approved by
• the Board in 2006, the following actions were
  prioritised.
• To pass the July 2007 ICAO audit
• Build technical and managerial staff and skills
  levels
• Implement the performance management system and
  set meaningful targets
• (The Board formulated five (5) strategic
  objectives to address short-term and long-term
  strategic goals)

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STRATEGIC OBJECTIVES

• Below is a summary of five objectives of the
  SACAA that were
• approved by the Board
• 1. Set civil aviation safety and security
  standards and regulate industry compliance in
  accordance with International Civil Aviation
  Organisation (ICAO) standards and global best
  practices.
• 2. Facilitate aviation industry functioning,
  development and growth by participating in joint
  fora, making safety and security recommendations
  and promoting safety and security through
  campaigns and information dissemination
• 3. Build effective organization systems and
  processes in order to ensure financial stability,
  good corporate governance and performance
  excellence that meet or exceed stakeholder
  expectations.

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STRATEGIC OBJECTIVES Cont..

• 4. Ensure growing customer satisfaction by
  creating a knowledge-based and customer-focused
  organization
• 5. Attract, develop and retain skilled human
  capital.

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KEY ANALYSIS

• Having gone through the background of the
  organisation, it is
• important to note the current situation of the
  SACAA by taking
• you through the findings of a recent Strengths,
  Weaknesses,
• Opportunities, and Threats (SWOT) analysis.

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KEY ANALYSIS - STRENGTHS

• The following were strengths identified in the
  SWOT analysis
• The SACAA was recognised as an international
  player of note in Africa.
• A Chief Executive Officer had been appointed by
  the Board and given a mandate and resources to
  turn the organisation around
• Department of Transport (DoT) support for
  positive change.
• ISO accredited status.
• Some committed staff members needing leadership
  and motivation.

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KEY ANALYSIS - WEAKNESS

• The following are weaknesses identified in the
  SWOT
• analysis
• Unresolved negative audit findings identified
  in the ICAO Audit in 1999 and 2001.
• Insufficient technical skills
• Top management skills gap
• Poor systems of control
• Lack of customer focus
• Lack of some key staff
• Lack of SACAAs credibility in the industry.

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KEY ANALYSIS OPPORTUNITIES

• The following opportunities were identified in
  the SWOT analysis
• International respect and recognition. (ICAO
  compliance is a global status for SACAA).
• Status as Africas gateway, with significant
  economic spin-offs for South Africa.
• Remarkable influence on the development of
  policies and standards affecting the civil
  aviation industry in SADC and Africa in general.
• Becoming a benchmark for efficiency in the
  regulation of civil aviation.

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KEY ANALYSIS - THREATS

• The following threats were identified in the SWOT
  analysis
• Failure to pass the ICAO audit could lead to
  dire consequences.
• Failure to pass the International Aviation
  Safety Assessment (IASA) audit
• Industrial unrest due to the implementation of
  a Performance Management System (change
  resistance)
• Negative influences on some staff by previous
  management to prevent exposure of past
  mismanagement.
• Loss of existing critical skills

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STRATEGY PLANNING PROCESS- CONTENT

• The following strategic section is made up of
  the sub-topics
• tabulated below.
• Strategy development and roll out process
• Strategy objectives and implementation
• Conclusion

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STRATEGY PLANNING PROCESS CONTENT Cont

• The following are two major divisions of the
  strategy development
• process
• Strategy Development Process
• The first slide will tabulate the meticulous
  strategy development process demonstrating the
  all inclusive approach.
• Strategy Roll Out
• The Second slide tabulates the roll out of the
  strategy i.e the implementation or use of the
  strategy. In this case the end result is the
  completion of employee scorecards laying a good
  foundation for performance management.
• A good strategy not implemented, is of no
  use.

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STRATEGIC PLANNING PROCESS
DOT Performance Agreement
Board Strategic Objectives
Key Accountability Matrix
Management Strategic Planning Workshop
Development of Strategic Framework
Board Strategic Planning Workshop
Development of SACAA Strategic Plan
ICAO Critical Elements
SACAA Strategic Plan Roll-out
Identified Core Business
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STRATEGY ROLL-OUT MAP
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STRATEGIC OBJECTIVESAND IMPLEMENTATION
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STRATEGIC OBJECTIVES IMPLEMENTATION

• The following slides will address implementation
  on the five
• strategic objectives by categorising them under
  the following
• Outcomes per year of focus
• The desired outcomes are listed per strategic
  objective with the percentage of focus in each
  year.
• Critical Success Factors
• Critical success factors to enable outcomes are
  noted under each strategic objective.
• Action Plan
• Action plans to achieve the stated outcomes are
  tabulated under each strategic objective

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STRATEGIC OBJECTIVES IMPLEMENTATION

• Instrument of Control
• Each strategic objective has tools to view or
  ensure progress
• on the stated outcomes.
• The following three instruments of control will
  be used on the
• five strategic objectives accordingly
• Project Plans
• Performance Scorecards
• Executive Management Feedback

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STRATEGIC OBJECTIVE 1

• Set civil aviation safety and security standards
  and regulate
• Industry compliance in accordance with
  International Civil
• Aviation Organisation (ICAO) standards and global
  best
• practices.

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OBJECTIVE 1 - OUTCOMES
OUTCOMES Yr 1 Yr 2 Yr 3
Understandable and comprehensive legislation to effectively oversee the industry and meet requirements of (ICAO) 90 10
Civil Aviation Regulations and Technical standards to be fully implemented and updated simultaneously with ICAO pronouncements. 100
Meet oversight requirements by implementing a functional organisational structure that will provide effective oversight and the resolution of findings and perform in depth audits. 100
Technical personnel appropriately trained to maintain and enhance their competence at the desired level. 90 10
A comprehensive technical library that is easily accessible and is consistent with best practice. 70 20 10
Civil Aviation Regulations (CAR's) and Civil Aviation Technical Standards (CATS) personnel are all appropriately licensed and all licences and certificates are issued in time in a computerised environment. 100
Proactive system to proactively perform audits and inspections in accordance with CARs, CATS ICAO requirements resulting in a reduction of accidents/incidents/occurrences 70 20 10
Enhanced safety levels that facilitate a paradigm shift in industry mentality to voluntary compliance rather than punitive. 60 20 20
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OBJECTIVE 1 CSF

• Critical Success Factors
• The following are critical success factors in
  meeting the above
• objective and realising the desired outcomes
• Enforcement capability through adequate and
  trained staff
• Timeous promulgation of Acts
• Thorough consultation with industry during the
  Act amendment
• Effective administrative processes and systems
  to be put in place
•  

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OBJECTIVE 1 ACTION PLAN

• Action Plan
• The following action plans will ensure the
  achievement of the
• stated objective.
• Establish electronic links with ICAO to obtain
  alerts to the Standards and Recommended
  Practices (SARPS)
• Facilitate the combination of the CEO and
  Commissioner for Civil Aviation (CCA) positions
  into one
• Redesign the organisational structure to
  support effective oversight and resolution
  findings
• Develop and implement a comprehensive skills
  plan programme.
• Establish a comprehensive technical library
• Develop an integrated surveillance system

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STRATEGIC OBJECTIVE 2

• Facilitate aviation industry functioning,
  development and
• growth by participating in joint fora, making
  safety and
• security recommendations and promoting safety and
• security through campaigns and information
  dissemination.

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OBJECTIVE 2 - OUTCOMES
OUTCOMES Yr 1 Yr 2 Yr 3
A developed industry with more aviation institutions whilst improving safety and security infrastructure. 20 50 30
More HDIs in technical positions 80 10 10
BEE partnerships established and the aviation charter implemented. 100
Increased industry and public awareness in matters of safety and strategic partners identified. 100
Increased support of the DOT programs. 100
Increased involvement in SADC and African and Indian Ocean Islands aviation development. 15 75 10

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OBJECTIVE 2 CSF

• Critical Success Factors
• The following are critical success factors in
  meeting the objective
• and realising the desired outcomes
• A regional and global focus to
  facilitate/support growth of local aviation
  industry.
• Clear guidance, complete practical
  regulations, and faster legislative processes.
• Use of experts to ensure rule-making
  implications are fully recognised.
• Accurate statistics and accessibility to
  information.

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OBJECTIVE 2 CSF Cont..

• Industry liaison, workshops and awareness
• Support from tertiary institutions.
• DOT plans and programmes communicated in advance
  for proper resource allocation and time for
  planning purposes.
• Harmonisation of regulations and systems through
  SADC
• Promotion of BEE Partnerships.

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OBJECTIVE 2 ACTION PLAN

• Action Plan
• The following action plans will ensure the
  achievement of the
• Stated objective.
• Establishment of detailed operator guidelines
• Develop a comprehensive talent management plan
  that addresses HDI requirements.
• Establish policies and procedures to promote
  BEE partnerships
• Develop a communication and awareness programme
  that includes institutions of higher learning.
• Include the attendance of DOT as a generic KPA
  on the performance scorecard.
• Institute exchange programmes with SADC and
  other international aviation authorities.

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STRATEGIC OBJECTIVE 3

• Build effective organization systems and
  processes in order
• to ensure financial stability, good corporate
  governance and
• performance excellence that meet or exceed
  stakeholder
• expectations.

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OBJECTIVE 3 - OUTCOMES
OUTCOMES Yr 1 Yr 2 Yr 3
Best practice in corporate governance in use. 100
A comprehensive risk management plan in use. 100
An accessible and secure information management system with reduced reliance on a manual record system with the aim of moving to a paperless system. 100
An integrated decision support system that enables access of key information and global statistics by management as well as support system for effective decision making. 80 20
A sustainable income stream commensurate with the challenges of ICAO, improved financial control and adherence to the PFMA. 100
Improved organizational performance and a flexible organisation structure to achieve strategic goals. 90 10
ISO compliance. 100
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OBJECTIVE 3 CSF

• Critical Success Factors
• The following are critical success factors in
  meeting the objective
• and realising the desired outcomes
• Initiate project to move to a paperless
  environment.
• Improvement of budgetary controls.
• A solid project plan to improve systems and
  processes.

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OBJECTIVE 3 ACTION PLAN

• Action Plan
• The following action plans will ensure the
  achievement of the
• stated objective
• Development and implementation of an accessible
  and secure information management system that
  will lead to reduced reliance on a manual record
  system.
• Implement software for statistical input
  analysis
• Obtain approval from DOT and cabinet for the
  increase of rates of various income streams.

41
OBJECTIVE 3 ACTION PLAN Cont..

• Implement the performance management system
• Distribute PFMA to management and obtain
  acknowledgement
• of receipt.
• Develop and implement an enterprise wide risk
  management plan.
• Conduct ISO audits to ensure compliance.

42
STRATEGIC OBJECTIVE 4

• Ensure growing customer satisfaction by creating
  a
• knowledge based and customer focused organization

43
OBJECTIVE 4 - OUTCOMES
OUTCOMES Yr 1 Yr 2 Yr 3
The use of a secure, comprehensive, accurate and relevant information system providing industry knowledge base, allowing online access to customers. 50 50
Improved and standardized inspector skills and guidance material contributing to improved service levels and guidance to the industry. 70 30
Adherence to the customer service charter 100
An effective customer communication strategy implemented. 100
Primary source / hub of industry information and knowledge resource 30 70
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OBJECTIVE 4 CSF

• Critical Success Factors
• The following are critical success factors in
  meeting the above
• objective and realising the desired outcomes
• Customer oriented culture developed.
• Fully developed guidance material.

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OBJECTIVE 4 ACTION PLAN

• Action Plan
• The following action plans will ensure the
  achievement of the
• stated objective.
• Establish an online industry information hub
• Enhance and standardise inspectors guidance
  material
• Conduct customer surveys and service audits
• Implementation of an effective customer
  communication strategy

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STRATEGIC OBJECTIVE 5

• Attract, develop and retain skilled human
  capital.

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OBJECTIVE 5 - OUTCOMES
OUTCOMES Yr 1 Yr 2 Yr 3
A cost effective tool providing accurate, reliable employee information to the Company to facilitate timeous, strategic business decisions 45 45 10
An overarching HR Strategy which is aligned to the overall business strategy and strategic business objectives 70 30
A transformed organization that embraces diverse individual capabilities and affords equal opportunities for meaningful participation. 50 40 10
An HR business approach that will deliver value adding strategic partnerships and HR best practices. 100
Aligned and standardized HR processes, policies, practices and procedures. 80 20
Management of Human Capital through integrated and aligned HR process (that forms part of employee life cycle) to meet future business needs 45 45 10
Efficient day-to-day processing of transactions and delivery within the HR Department 50 50
Sound cooperative relationships between the leadership and employees established and maintained. 70 30
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OBJECTIVE 5 CSF

• Critical Success Factors
• The following are critical success factors in
  meeting the objective
• and realising the desired outcomes
• HR credibility within the business
• Developed policy and procedural frameworks
• HR record systems developed
• Informed and skilled HR staff
• Talent management system implemented
• Formulation of partnership structures and their
  function working agreed upon between employee
  representatives and the leadership

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OBJECTIVE 5 ACTION PLAN

• Action Plan
• The following action plans will ensure the
  achievement of the
• stated objective.
• Audit the Human Resources Systems and
  processes
• Implement a Human Resources Information
  Management System
• Development of an effective Human Resources
  Strategy
• Facilitate organisational transformation and
  change management policy

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OBJECTIVE 5 ACTION PLAN Cont..

• Facilitate organisational transformation and a
  change management policy
• Establish procedures and policies to facilitate a
  Human Resources Business Partner mindset
• Establish a HR Governance Framework through
  Policies and Procedures
• Institute control mechanisms to ensure effective
  transactional delivery
• Perform employee / position cross matching.

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STRATEGY ROLL - OUT

• The completion of the strategic document mean the
  following
• actions will be taken
• DOT performance agreement can now be finalised
• SA CAA Organisational Scorecard based on
  expected outcomes may be completed (Key
  Accountability Matrix of the organisation
  already completed)
• Divisional scorecards based on the
  accountability matrix can be completed.
• All staff performance scorecards based on
  their divisional ones can be completed.

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FINANCIAL IMPLICATIONS
53
FINANCIAL IMPLICATIONS CLASS A1 PROJECT

• The pending International Civil Aviation
  Organisation (ICAO)
• audit in July 2007 resulted in the following
• A review of the organisation done in 2006
  highlighted long outstanding unresolved findings
  that address the 8 ICAO critical elements.
• Class A1 project being implemented after Board
  approval in
• September 2006 to ensure a clean audit by ICAO.
• R56m budget approved for the Class A1 Project
  that takes place in the 2006/ 7 and 2007/ 8
  financial years.

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FINANCIAL IMPLICATIONS CLASS A1 PROJECT

• The Class A1 project funds were to be used for
  addressing the
• legacy of the dysfunctional SA CAA by
• Training of existing technical personnel to bring
  them to an
• acceptable level of competence.
• Recruitment of locals and expatriate technical
  skills in order to be compliant by set date.
• Procuring assistance from the ICAO to ensure
  readiness for June 2007 audit.
• Improving of processes and systems in order to
  implement best practice.
• Sub-contracting critical elements in the project
  plan in order to ensure delivery by set date.
• Class A1 project being implemented after Board
  approval in September 2006 to ensure a clean
  audit by ICAO.
• R56m budget approved for the Class A1 Project
  that takes place in the 2006/7 and 2007/8
  Financial years

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FINANCIAL IMPACT 2007/ 8
The following 2007/ 8 figures are inclusive of
the A1 project. R Revenue 197,812,355
Expenses 243,064,658 Deficit
(45,252,303) Capital Expenditure
16,557,000 (There is cash available to finance
the deficit)
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FINANCIAL IMPACT 2007/ 8
The Class A1 project causes the following
deficits 1. In 2006/ 7 a R1,5m surplus was
budgeted, however, a revised budget/forecast
shows a deficit of R11,5m as a result of the A1
Project spreading over two financial years. 2.
In 2007/ 8 a deficit of R45,2m is budgeted
otherwise this would have been a break even
budget. It should be noted that the the R45,2m
deficit is an accounting deficit as there are
cash reserves to finance the above amount.
Therefore this is not a request for funding.
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CORPORATE GOVERNANCE
In line with corporate governance the following
processes will follow in order to approve the
budget deficit for 2007/8. 1. An exemption
has been applied for in terms of section 53 (3)
of the Public Finance Management Act that states
that public institutions can not budget for a
loss unless prior approval is granted by National
Treasury. 2. The SACAA Board approval has
been put in motion and the date of the
deliberation on the above matter is set for the
15th of March 2007.
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CONCLUSION
Finally, the SA CAA demonstrated inclusivity,
transparency, and analytical prowess in its
development of this strategy. The SA CAA believes
that its business strategy is not only
relevant to the challenges facing the
organisation but also progressive and in line
with the aims and objectives of the new South
Africa. The portfolio committee is accordingly
requested to take note of, and endorse the SA
CAAs Strategic Plan for the period 2007 to 2010.
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THANK YOU!!