Client Name or Logo

1
Building a New Home Affairs
PRESENTATION TO THE TOURISM BUSINESS COUNCIL OF
SOUTH AFRICA
15 April 2008
2
Agenda
3
Agenda
Historical Perspective
4
Historical Perspective
1/2
A Perspective On Policy and Strategy
RSA Pre 1994

• A modern state for whites, a colonial, then
  formal apartheid states for Blacks, especially
  Africans
• Low volumes of international travelers before the
  first democratic elections, very few from Africa
• Border control and management focus on keeping
  people out
• Repugnant legislation and policies limit the
  attraction of scarce skills and the migration of
  people

5
Historical Perspective .. 2/2
A Perspective On Policy and Strategy
Post 1994 Democratic State

• Peaceful resolution of conflicts popular
  elections
• World-acclaimed Constitution, founded on human
  dignity proclaims equality, advancement of human
  rights and freedoms
• A fragmented society with socio-economic
  injustices and high unemployment
• Large increase in the number of international
  visitors, especially from Africa
• Border control and management that balances
  security and national integrity with the
  development needs of South Africa, the
  Sub-Region, the Region (SADC) and Africa
• Opening of borders brings in unwanted visitors as
  well

6
Number of foreign visitors surged after 1994 and
is still growing very rapidly, driven by the
expansion of tourism and the 2010 World Cup
External factors and drivers
Arrival of foreign travelers in RSA (1970 2010E)
(mln.)
2010E 10mln. foreign visitors

• Key insights
• Expansion of tourism industry RSA is becoming an
  increasingly popular destination, driving an
  increase in foreign arrivals
• 2010
• Spike in number of arrivals (450,000 foreign
  visitors expected, translating into an increase
  in traffic of 60 at key PoEs for June-July 2010)
  
• Influx concentrated on only a few days(1) huge
  pressure on Ports of Entry
• Due to capacity constraints at OR Tambo,
  passengers will need to be cleared in foreign
  airports, using Advanced Passenger Processing
  (APP)

2006 8.5mln. foreign visitors (13 growth vs.
2005)
1990 1.1mln. foreign visitors
1998 5.9mln. foreign visitors
Surge in number of visitors mostly driven by
the expansion of tourism in RSA has huge
impacts on DHA
Note (1) Estimates from the 2010 WC project show
that more than 60 of the incoming and outgoing
passenger traffic through airports will occur
over only 6 days (between 9/6 and 12/6, and
between 1/7 and 4/7) Source SA Statistics, DEAT
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Agenda
DHA Mandate and Tourism
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DHA Mandate and Tourism
A Perspective On Policy and Strategy

• The DHA plays a critical role in relation to the
  state and to civil society
• by affirming the identity and thus the rights of
  citizens.
• and also by facilitating the movement of people
  that enter, reside in and depart from the
  Republic of South Africa
• A DHA that is efficient and delivers services
  effectively would enhance the capacity of the
  state and significantly improve the environment
  for business including
• An appreciation of the importance of tourism with
  regard to job creation, foreign currency
  earnings, etc
• Facilitating the acquisition of scarce /
  requisite skills through streamlining the visa
  and permitting processes
• Managing migration of citizens and foreign
  visitors efficiently - first contact point for
  visitors
• Providing essential information for statistical
  releases by Statistics South Africa, as well as
  other users.

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Agenda
The New Vision of DHA and the Turnaround Programme
10
The New Vision of DHA
A Perspective On Policy and Strategy
The Turnaround Programme aims to
Build a Department that provides modern,
efficient, cost-effective services that are
responsive to the needs of South African
citizens, residents and visitors to our country.
11
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
12
In early 2006, the Minister initiated a number of
key actions that resulted in the turnaround
process for the Department
Context
Key Actions Taken By the Minister
July 2006
Minister appoints Intervention Task Team to
investigate the problems in Home Affairs
March 2007
Task Team reports back urging action to fix the
Department
May 2007
DG, to lead Turnaround, supported by Team of
experts
13
A unique feature in the New Home Affairs Service
Delivery Model is that Customer needs drove the
design
Vision Design
Service Delivery Model
People
Facilities
Processes
Customer Cube
Operating model
IT
How?
What?
What processes will link our business
architecture to our customers in the delivery of
our services?
What IT and facilities do we need to deliver
services to our customers?

• Which services will be offered to which customers
  through which channels?
• What service and productivity levels are required?

What staff with what skills do we require?
The organizational structure will result from
not drive the design of the service delivery
model
Source A.T. Kearney
14
We have completed Phase 1 of the Turnaround which
focused on quick wins and design
Phase I Overview and Key Achievements
Building a new Home Affairs
Phase 2 and beyond
Phase I
Early Value Realisation
Define
Design Develop
Embed Change
Monitor
Stages
Implement
Pilot
Low
Transformation Implementation
Sustain
Piloting
Strategy Future End State Definition including
Roadmap
Criticality/ Urgency
Stabilisation Quick Wins
Time
High
Fundamentally Improve The Customer Experience
15
Phase I realised a number of key achievements
Phase I Overview and Key Achievements
Selected Achievements
16
DHA has four types of customers we have mapped
their needs
Customers
Corporations / organizations
Consumers requiring DHA services on their own
behalf
1
2
3
4
requiring permits for their employees
that interface with DHA
that receive data

• RSA citizens that require services from DHA on
  their own behalf
• Foreigners that want to enter RSA on temporary or
  more permanent basis

• For example work permits, intra-company
  transfers, scarce skills quotas
• Most corporations work through licensed
  practitioners
• 175 in total
• Big four PWC, Deloitte, KPMG, Ernst Young

• Dependency on DHA to render their own services,
  mostly for verification purposes
• South African Police Services
• National Prosecuting Authority
• Government departments (Foreign Affairs, Social
  Development, Dept of Correctional Services, etc.)
• Banks
• Insurance companies

• StatsSA
• TSA (Tourism Satellite Account) several
  departments involved for purposes of marketing to
  tourists
• Trade Industry companies using DHA data for
  market research purpose
• Independent Electoral Commission
• International Marketing Council of SA

Most important group of customers and main focus
for the Vision Design phase
Input from RSA citizens customers has been
obtained via a questionnaire needs of Foreigners
have not been specifically mapped
Input from these customers has been obtained via
interviews executed by the Permits Refugees team
Input from these customers has been obtained via
selected interviews
17
Over 700 customers were interviewed in 19
locations across all 9 provinces Customer
responses were central to in our overall vision
Vision Design
General information on the customer questionnaire
Other background information
Locations where questionnaire was performed

• Total of 702 customer questionnaires conducted,
  of which 231 done by DHA employees and 471 by
  Markinor
• Questionnaires conducted in the first half of
  August 2007
• The questionnaire included customers from age 15
  and older
• 77 of customers surveyed were repeat customers
• DHA office sites chosen entailed 8 regarded as
  urban and 11 regarded as rural
• There were a handful of non-South Africans that
  were interviewed, though the vast majority were
  South Africans

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9
LIMPOPO
16
18
12
MPUMALANGA
GAUTENG
11
4
1
NORTH WEST
6
17
FREE STATE
KWA ZULU NATAL
8
10
13
NORTHERN CAPE
7
15
19
EASTERN CAPE
3
WESTERN CAPE
5
2
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For example, the survey highlighted that 39 of
customers visit DHA offices to gather information
and to follow up on an application
Vision Design
Analysis of customer visits to DHA offices
Waiting times of respondents when visiting an
office
Reason for being at DHA office
for which they often have to stand in line
39 of customers are gathering information
following up on applications

• Total number of Civic Services delivered is 7.3
  mln(1).
• If conservatively estimated each customer visits
  a DHA office twice to get that service, there are
  14.6 mln. customer interactions for Civic
  Services through an office, of which around 5.7
  mln. could possibly be dealt with through other
  channels

Moving these interactions to other channels
should be investigated
Notes (1) Civic services volumes from financial
year 06/07
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Customers prefer morning operating hours and
speedy, reliable and efficient process
Preferences of customers
Percentage of respondents rating these specific
service metrics as most important
Preference of respondents for time of visiting
DHA offices
Easy processes
After 4PM
Customer service friendliness
2-4PM
6-7AM
Quality facilities
12-2PM
7-8AM
Document delivered as agreed
Limited waiting time
10AM-12PM
8-10AM
Fast delivery
93 of customers prefer to go into the office
between 7AM and 4PM
Fast delivery is rated as most important,
followed by reliability
Opening at 7AM would meet customer needs
however, staying open past 4PM is not necessary
20
Customers prefer picking up the documents
themselves, and being alerted by phone call when
ready
Customers and customer survey
Preferences of customers (contd)
Preference for type of alert
Preference on how to receive the ready document
Courier at additional cost
E-mail
Letter via post
Pick-up myself
Phone call
Registered post
SMS
60 of customers prefer to pick up their ready
document themselves
82 of customers prefer to be alerted via their
phone when document is ready
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Word of mouth and informal communications has
resulted in call and contact volumes exceeding
the forecasts originally posted for the Contact
Centre
Track Trace and Contact Centre
Customer Contact Centre Call Volume and Issue
Resolution by Issue Type
Total Contacts by Week
High Level Break Down of Cases for Jan 08
Forecast
82 First Call Resolution Rate
Drop off in calls over Christmas period
22
Our new Contact Centre has received an immediate
positive response from the media illustrated by
an independent survey in FinWeek
Track Trace and Contact Centre
How the media rates the new Contact Centre (1)
The New DHA Contact Centre
OBJECTIVES Professional service Easier
access Improved image for DHA Shorter queues in
offices Customer satisfaction Empowered Staff
Positive Media Response
Source (1) Finweek 26 Dec 2007
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The operations management team challenged our
ways of working in critical areas of our
processes
ID Process and Operations Management
Initial Working Environment at Fingerprint Section
BEFORE
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leading to a more conducive working environment
ID Process and Operations Management
The New Working Environment At Fingerprint Section
AFTER
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At the same time, the critical path backlog has
been eliminated at Fingerprint Verification
ID Process and Operations Management
Our first Heroes of the Turnaround
4 days
26
The Risk Assessment team has now completed the
high-level risk and scenarios prioritisation, and
is in the process of developing action plans
Evaluation Of Potential Risk Areas
Identification and Prioritisation
Scenario Level Risk Planning
Risk Management Approach Definition

• Define risk management approach
• Identify detailed, actionable activities to
  address risk, specific to the type of risk and
  environment
• Prioritise actions and assess cost-benefit
  trade-offs for priority actions
• Develop proactive and/or response plans

Identify DHA Risks
Prioritize High Level Risks (e.g., Loss of
information)
Avoid
Accept
Prioritize Scenario Level Risks (e.g.,
Permanent loss of paper archives)
Risk Management Approaches
Monitor
Transfer
Respond
Mitigate
Minimize
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Process improvements have been implemented to
ensure that the time required to issue ID books
is reduced
51 days improvement
23 Jan 137 days Implementation starts
Average Days
19 Mar 86 days
Week Ending
Average
28
Targets have been set for all key documents in
Civics and National Immigration (Selected permits)
Vision Design
Key targets for Turnaround
NIB services throughput times, for majority of
cases

• Explanations
• Admissions no real benchmarks available for
  clearing times, the relevant metric is not the
  actual clearing time, it is the entire time spent
  in the airport or border post (including waiting
  time and luggage collection) which is clearly
  affected by number of counters open
• TRP 4 weeks seems to be the international norm
  and a possibility for DHA as well, given that
  some offices are already there
• PRP 3 months seems to be the international norm
• Visa solving the current backlog and capacity
  issues can bring down turnaround times to 2 days

Note (1) Based on study of 2002/2003 (2)
Depends on offices, missions are usually ok,
regions are not so good (2) Sect 26 are easy and
usually processed quickly (6 months), Sect 27
are more complicated and only 2 people are
authorized to adjudicate. A submission was
proposed at the end of last year and turned down
29
We have adopted a governance model that
emphasises DHA ownership
Phase I Overview and Key Achievements
Phase II
DHA Sponsor
DHA Team Lead
Consultant Team Lead
Support Services
IT
Gover- nance
NIB
Finances
Civics
Org Implement
5 projects
7 projects
10 projects
12 projects
6 projects
13 projects
7 projects
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DHA has an urgent need to initiate a project to
replace the current ID book with a more secure
and appropriate identification mechanism
ID Card
Issues with current ID book and future
requirements
Issues with current ID book format
Requirements for alternative solution

• The paper used for the ID book is not watermarked
  and can be easily reproduced
• The current book is easily damaged resulting in
  significant costs incurred with reissues
• Photos can be easily swapped
• Printing and compilation of the current book
  takes 12 days, as cutting, pasting and laminating
  are very manual and labour intensive

• Difficult to reproduce
• Tamper resistant
• Robust and durable material for the card body
• Digitized photo and print on card
• Secure means of storing data on card
• Access to biometrical information for
  authentication

In addition, the need for a book has all but
disappeared as only one page is used.
A new ID Card is recommended as a replacement for
the current ID Book
31
Preparation for FIFA 2010 is underway
FIFA 2010
Framework to capture business and user
requirements
DHAs mission, strategy, goals and objectives for
2010
DHAs culture, core competencies, and management
systems
Supports
Constrains
Enables
NIB Business Process
1
2
4
3
5
6
Process Design
Information Systems
Motivation Measurement
Regulation, Policies, Rules
Human Resources
Facilities
Enablers

• Mismatch of work needs and facility
• No support for team work
• Layout that impedes flow of people or material

• Too many role-players
• Non-value added steps
• Delays and bottlenecks
• Excessively sequential

• Unavailable information
• Re-keying of data
• Missing functionality
• Awkward interfaces
• Lack of support for workflow

• Inappropriate performer or process measures
• Internal rather than customer focus
• Measures of tasks vs. outcomes

• Out-of-date regulation, policies, rules,
  numerical limits
• Excessive approve, inform, check, or review steps
• Excessive hierarchy or centralisation

• Mismatches between task value and performer
• Inappropriate recruiting and placement
• Too little empowerment

To be successful for 2010, we have to have all 6
enablers in alignment.
Source Association of Business Process
Management
32
The Large Account offering is a proactive
approach by Home Affairs to meet the requirements
of large importers of skills
Scarce Skills and Business Related permits
Large Account Objectives
Home Affairs
Corporatepart of 1st pilot

• Corporate Permits
• Intercompany Transfers
• General Work Permit

• Engineers
• Artisans
• Exceptional Skills

Handshake Immigration Practitioners
33
We are now ready to further roll-out and fine
tune the Large Account service to a second wave
of pilot companies
Scarce Skills and Business Related permits
Large Account roll-out plan
Accounts

• Regime(100)

Intermediary

• Top 20 accounts
• Number of permits
• National interest
• Capex
• Skills transfers

• Selection process
• Applicants
• Practitioners
• DTI - DoL
• DHA final say

Guinea pigs / Pilots

• Representativity
• Contacts
• Mix of permits

Small and Medium Accounts

• Intermediary (20)

• Dedicated solution to be developed at Provincial
  level

• Pilots(4)

Time
July 07 Oct 07
Feb07 June 08
From July08
34
Agenda
DHA and the Facilitation of International Tourism
35
We propose increasing the current footprint of
DHA for Civic Services of 675 service points to
747 five years from now
Channels
Overview of footprint per type of DHA service
point (SP)

• Guidelines used
• Growth of the Thusong centres is assumed to be
  linear
• Establishment of DOs is fast tracked to have a
  management structure in place before a Thusong
  centre is set up
• The pace of phasing out the TSPs is dependent on
  the pace of roll-out of the other SPs, such that
  the total number of DHA SPs does not decline in
  any year

Notes (1) CSIR recommended 506 permanent
service points and their locations they did not
distinguish between type of service point (2) In
addition, CSIR recommended that 482 points should
be serviced with MUs for this they advised to
have 70 MUs
36
For NIB, DHA has an additional 177 dedicated
service points including the foreign missions
Footprint and channel analysis
Overview of dedicated DHA footprint for NIB (Aug
2007)
Legend POE-Ports of Entry, RRO-Refugee Reception
Office
Note (1) DHA has staff in only 46 Foreign
missions (other missions are staffed with Foreign
Affairs officials)
37
DHA needs to facilitate the movement of people in
and out of South Africa
A Perspective On Policy and Strategy

• In line with the Immigration Act, 2002 (Act No.
  13 of 2002) the facilitation of the movement of
  people is achieved through
• Admission into and departures from South Africa
  at designated Ports of Entry
• The issuing of visas to facilitate the movement
  of people in and out of South Africa
• The issuing of Permits to facilitate residence in
  South Africa
• The detection, detention and deportation of
  illegal foreigners

38
Whilst being faced with various external
challenges that impact Immigration
A Perspective On Policy and Strategy
Key Challenges

• Terrorism and Human Trafficking

Security Considerations

• E-passport

Adherence to international standards
Increase in the flow of Asylum Seekers and
Economic Migrants
Instability in some African countries
66 from a total of 12,826,281arrivals in 2005
2006 represents foreigners Establishment of new
Ports of Entry and Trans-frontier Conservation
areas
Increase in South African Tourism
Southern African Development Community (SADC)

• Alignment of Regional Instruments e.g. The SADC
  Protocol on Trade, Protocol on the Facilitation
  of Movement of Persons, etc.
• UNIVISA (Schengen-based concept of one visa for
  all 14 SADC countries)

2010 World Cup

• High permitting demand for large construction
  projects
• Expected increase of 450,000 foreign visitors

39
Demand for immigration services has been
increasing over the past 5 years
Core services offering
Visas issued by missions (2002/2003 2006/2007)
Arrivals and departures (2002 2007CY)
(Mln.)
Source DHA
40
Visa and Permitting statistics for 2007
Core services offering
Visas issued during 2007
Permits issued during 2007
Source DHA
41
Agenda
Going Forward
42
Going forward
A Perspective On Policy and Strategy

• Achieving the vision of the Turnaround Programme
  is crucial to facilitate international tourism.
• Improvement of the DHA data quality is necessary
  to inform policy and decision makers in business
• Create TBCSA / DHA partnership to explore areas
  of cooperation.
• Establish mechanisms for engagement with TBCSA
  members in a structured and productive way.

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THANK YOU!
44
Challenges and progress with regards to the
UNIVISA ..1/2
Core services offering

• Challenges to implement the UNIVISA affect
  different departments within states and it
  warrants cooperation within and between Member
  States.
• To promote the movement of people throughout the
  Southern African Development Community (SADC),
  the Immigration Act, 2002 (Act No. 13 of 2002)
  needs to be aligned to the Regional Instruments
• Protocol on Trade
• The SADC Protocol on the Facilitation of Movement
  of Person
• and the SADC Protocol on Transport,
  Communications Meteorology.
• For South Africa, the overriding challenge is
  overhauling the Immigration Act, 2002, which does
  not allow for the implementation of the UNIVISA.
• DHA and the Department of Environmental Affairs
  and Tourism (DEAT) are exploring ways to align
  their legislations with the provisions of the
  SADC Tourism Protocol.
• DHA is also collaborating with other Departments
  to share knowledge on the benefits of the
  implementation of the UNIVISA and to discuss the
  amendment of the Immigration Act, 2002.

45
Challenges and progress with regards to the
UNIVISA 2/2
Core services offering

• To ensure dedicated attention to immigration
  matters, DHA is proposing the establishment of
• A SACD Immigration Co-ordinator post within the
  Secretariat
• A Task Team (with the Regional Tourism
  Organisation of Southern Africa (RETOSA) and the
  International Organisation for Migration (IOM) as
  stakeholders) to accelerate the implementation of
  the UNIVSA by determining
• the legal issues
• the financial, logistical and human resource
  requirements
• and the development of the implementation
  framework.
• South Africas commitment to the implementation
  of the UNIVISA is a response to the 2006 African
  Common Position on Migration and Development
  which calls on states to finalise the strategic
  framework for Migration Policies to provide
  guidelines on the effective management of
  migration at a continental level.
• The effective implementation of the UNIVISA is
  dependent on the harmonization of working
  patterns throughout the SADC region, which
  include coordination and integration of computer
  systems to ensure responsiveness to one another
  depending on their financial viability.
• The key challenge in most SADC states is the use
  of manual systems to determine the entry and
  departure movements of people.

46
DHA also participates in the development of the
Tourism Satellite Account (TSA)
A Perspective On Policy and Strategy

• Tourism is not a clearly defined industry in the
  System of National Accounts (SNA) but is the
  amalgamation of various industries like
• Transportation
• Accommodation,
• food and beverage services
• recreation entertainment, etc.
• DHA actively participates in the TSA steering
  committee and the inter-institutional working
  group.
• Data collected from the various ports of entry is
  provided around the tourism units (country of
  residence, duration of stay and purpose of
  visit).
• DHA data is used as input data for statistical
  releases on Tourism and Migration.
• Arrival and departure statistics also serve in
  populating other surveys. applications for
  asylum.