SACAA Strategic Plan Presentation to Parliamentary Portfolio Committee on Transport

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

2. 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 INDEX

3. Implementation of Strategy Strategy Rollout Financial Implications Conclusion INDEX Cont..

4. REGULATORY EXCELLENCE IN AVIATION SAFETY AND SECURITY VISION

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

6. COMMITMENT RESPONSIBILITY ACCOUNTABILITY CONSISTENCY KNOWLEDGE-SHARING INTEGRITY AND TRANSPARENCY SACAA VALUES

7. The SACAA was established on 01 October 1998 under South African Civil Aviation Act No 40 as a stand alonecivil 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. OBJECTIVES OF SACAA

8. SACAA PROFILE: RACIAL COMPOSITION

9. SACAA PROFILE Cont:GENDER COMPOSITION

10. 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. PURPOSE OF STRATEGIC DOCUMENT

11. SITUATIONAL ANALYSIS – SACAA LEGACY • The CEO appointed March 2006 conducted a situational analysis/ review of SACAA’s 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.

12. 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) SITUATIONAL ANALYSIS - SACAA LEGACY Cont..

13. 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) SET PRIORITIES

14. Below is a summary of five objectives of the SACAA that were approvedby 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. STRATEGIC OBJECTIVES

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

16. 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. KEY ANALYSIS

17. 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. KEY ANALYSIS - STRENGTHS

18. 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 SACAA’s credibility in the industry. KEY ANALYSIS - WEAKNESS

19. The following opportunities were identified in the SWOT analysis International respect and recognition. (ICAO compliance is a global status for SACAA). Status as Africa’s 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. KEY ANALYSIS: OPPORTUNITIES

20. 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 KEY ANALYSIS - THREATS

21. The following strategic section is made up of the sub-topics tabulatedbelow. Strategy development and roll out process Strategy objectives and implementation Conclusion STRATEGY PLANNING PROCESS- CONTENT

22. The following are two major divisions of the strategy development process: Strategy Development Process The first slidewill 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. STRATEGY PLANNING PROCESS – CONTENT Cont…

23. 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

24. STRATEGY ROLL-OUT MAP

25. STRATEGIC OBJECTIVESAND IMPLEMENTATION

26. The following slides will address implementation on the five strategic objectives by categorising them under thefollowing: 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 STRATEGIC OBJECTIVES & IMPLEMENTATION

27. 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 STRATEGIC OBJECTIVES & IMPLEMENTATION

28. Set civil aviation safety and security standards and regulate Industrycompliance in accordance with International Civil Aviation Organisation(ICAO)standards and global best practices. STRATEGIC OBJECTIVE 1

29. OBJECTIVE 1 - OUTCOMES

30. Critical Success Factors The following are critical success factors in meeting the above objectiveandrealising 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 OBJECTIVE 1 – CSF

31. Action Plan The following action plans will ensure the achievement of the statedobjective. 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 OBJECTIVE 1 – ACTION PLAN

32. 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. STRATEGIC OBJECTIVE 2

33. : OBJECTIVE 2 - OUTCOMES

34. Critical Success Factors The following are critical success factors in meeting the objective andrealising 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. OBJECTIVE 2 – CSF

35. 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. OBJECTIVE 2 – CSF Cont..

36. Action Plan The following action plans will ensure the achievement of the Statedobjective. 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. OBJECTIVE 2 – ACTION PLAN

37. Build effective organization systems and processes in order to ensure financial stability, good corporate governance and performance excellence that meet or exceed stakeholder expectations. STRATEGIC OBJECTIVE 3

38. OBJECTIVE 3 - OUTCOMES

39. Critical Success Factors The following are critical success factors in meeting theobjective 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. OBJECTIVE 3 – CSF

40. 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 relianceon 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. OBJECTIVE 3 – ACTION PLAN

41. 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. OBJECTIVE 3 – ACTION PLAN Cont..

42. Ensure growing customer satisfaction by creating a knowledge based and customer focused organization STRATEGIC OBJECTIVE 4

43. OBJECTIVE 4 - OUTCOMES

44. 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. OBJECTIVE 4 – CSF

45. 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 OBJECTIVE 4 – ACTION PLAN

46. Attract, develop and retain skilled human capital. STRATEGIC OBJECTIVE 5

47. OBJECTIVE 5 - OUTCOMES

48. Critical Success Factors The following are critical success factors in meeting the objective andrealising 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 OBJECTIVE 5 – CSF

49. Action Plan The following action plans will ensure the achievement of the statedobjective. Audit the Human Resources Systems and processes: Implement a Human Resources Information Management System Development of an effective Human ResourcesStrategy Facilitateorganisational transformation and change management policy OBJECTIVE 5 – ACTION PLAN

50. 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. OBJECTIVE 5 – ACTION PLAN Cont..