Contents
1
Background
2
Challenges
What are we doing
3
What has been achieved
4
What’s next
5
6
Questions
Background
The Compensation Fund is faced with massive untenable challenges and
cannot maintain the status quo.
Expected Outcomes
Expected Outcome
Current Situation
Issue
The Turn-around plan will ensure that all key business elements are addressed leading to a
transformed Compensation Fund and ultimately improve service delivery.
Challenges
The CF has undertaken a diagnostic review of its operations and
identified key business challenges, requiring immediate focus to ensure
successful strategic execution enablement
Current Situation: Strategic Priorities
Claims
Processing and
Payments
Revenue
Collection
Operational
Efficiency
Rehabilitation
and Integration
• Improved payment of benefits to the
beneficiaries of the Fund
• Improved revenue collection from
employers
• Effective administration of the Fund’s
operations
• Promote rehabilitation, re-integration and
return to work of injured and diseased
workers
Business Challenges
• Too many initiatives leading to
overloading parts of the organisation
• Inadequate business coordination and
integration
• Poor project and schedule integration
• Poor issues and risks management due to
insufficient oversight
• Poorly aligned definition and
achievement of “systems optimisation”
• Misalignment with regards to performance
management and accountability
• Low people engagement throughout the
agency
• Turn-around fatigue
• Inadequate capacity in critical Financial
management areas
• Negative Audit outcomes
Challenges
Auditor General
Findings
Year
2008/09
DISCLAIMER
2009/10
QUALIFICATION
2010/11
QUALIFICATION
2011/12
QUALIFICATION
2012/13
DISCLAIMER
Auditor General’s Findings
Quality of
Data
People
Leadership
•
Skills &
Competence
by PFMA;
•
The Fund did not take effective and appropriate steps to timeously collect
all money due to the Fund;
Financial
Management
Systems
Process
No effective and efficient revenue management function exists as required
•
Unable to determine completeness and accuracy of revenue assessment;
•
Not all employers correctly assessed and billed;
•
Unreliable information (missing banking details, lack of controls);
•
Penalties and Interest not calculated correctly;
•
Long outstanding debts not collected; and
•
Current and uncorrected misstatement in the Financials
What are we doing
Our approach is aimed at achieving the key CF value drivers and desired
outcomes
What we want to achieve?
Singing from the same hymn sheet
• CF Executive Management members display a
common understanding of the intent of the Strategy
and Operating Model.
What are we doing?
• Executive Management Alignment;
• Review and confirm appropriate governance; and
• Agree and communicate individual accountability through Programme
Management
Projects aligned to Strategic Intent
• Projects that are more focused and aligned to
strategic intent and Operating Model.
• Plan, prioritise and schedule initiatives and resources to align with the
CF Strategic Intent; and
• Ensure non strategic or non-value delivering projects are scrapped
Improved Financial Management
• Improve Revenue Collection
• Ensure proper financial management controls
• Clean Audits
•
•
•
•
•
Improved Claims and Beneficiary Management
• Reduce Claims processing and payment backlog
• Improve turn-around times
• Reduce fraud and corruption
Formal journey management
• Drive the Operating Model implementation;
• Ensure integrated and co-ordinated project; and
portfolio management, reporting and reviews.
Develop clear revenue management strategy;
Develop financial management policies, procedures and standards;
ROE website;
Ensure staff are trained and skilled in the required areas; and
Address Auditor General’s findings including payroll audits
•
•
•
•
Finalise the backlog program;
Review and update business processes;
Implement the new RMA system;
Integration between claims management systems and financial
system;
• Improve system controls .
• Develop detailed implementation plan and drive rigorous; execution of
change management; and
• Promote immediate feedback and acceptance;
Governance Structure
A formalized governance and program structure has been developed
and approved to successfully drive the Transformation programmes.
Key Notes:
• The Programme Management Forum considers
progress on key projects and also takes decisions
on Programme related matters;
Rational for new structures?
• Improve decision making in the Fund;
• Ensure harmonization and alignment of
programmes and coordinated planning and
implementation;
• Promote shared understanding of compensation
fund issues, challenges and priorities;
• Ensure good governance and accountability
through collective leadership and management of
programmes;
• A platform to share information, communicate
decisions, share best practices and experiences
as well as to review performance;
• Promote collegiality and cooperation within the
management echelon and among staff.
Initiatives Planned
The following Key Initiatives have been identified to unlock value and
Mar’14
Mar’15
drive the improvements required.
Programme
Corporate
Management
Corporate Services
Phase 2
Phase 1



Governance and Leadership
alignment;
Fraud and Corruption Hotline;
Business Continuity Review



Legislation Amendment;
Delegation of Authority framework
Enterprise Document and Records
Management





Establish PMO;
Fill critical vacancies;
Implement new Org structure;
Client Survey Recommendations;
Business process re-engineering


Performance management system;
Customer Relationship management
strategy;
Policies, procedures and standards

Action plan against AG audits
and Scopa recommendations;
Revenue Management
Strategy;
Letter of Good Standing



Financial
Management
(including ICT)

Operations






Decentralisation;
ROE Website;
Claims backlog program;
RMA system pilot;
Unclaimed beneficiary monies program;
Data cleansing on eClaims

Mar’16
Phase 3
Payroll audits;
Implement data cleansing
project;
Policies, procedures and
standards




Virtual Office and Smart forms;
ICT Strategy review
ICT Operating model


ICT Refresh;
Implement Channel innovation
and CRM system

Policies, procedures and
standards;
Online claims submission
portal

Full implementation of RMA
system;
RMA system integration to financial
system;
Rehabilitation Programme





Performance Management, Change Management, and Communication
Implement Ecommerce system
with auto assessment;
Integrate Ecommerce system to
financial system
Not Started
Completed
Progress Dashboard
Corporate Management
Governance framework
Leadership alignment
Fraud Hotline
Business Continuity Review
Corporate Services
Establish PMO
Fill critical vacancies in line with new Org
structure
Implement new Org Structure
Climate Survey Recommendations
Business Process Re-engineering
Financial Management
Action plan against AG audits and Scopa
Revenue Management Strategy
Letter of Good Standing
Operations
Decentralisation
ROE Website
Claims backlog program
RMA System Pilot
Unclaimed beneficiary monies program
Data Cleansing and Update of banking details
In-progress
Behind Schedule – Management intervention required
Key Points
• Turn-around plan has been developed and currently being
finalised with management and Exco;
• Governance structures completed and signed off;
• Commissioner is Project Sponsor, with CFO is Project Director;
• Programme Managers and Responsibility Managers appointed
to promote accountability in terms of PFMA;
• Audit of all initiatives and progress is currently underway;
• Process to establish well capacitated PMO underway;
• Finance policies and procedures are being established in line
with PFMA and AG recommendations;
• Adverts and shortlisting of new Director posts underway;
• Action plan against AG audits has been completed and
approved by Exco;
• ROE website has been completed, is operational and
enhancements underway;
• New improved Letter of Good standing in pilot phase to be
rolled out in November 2013;
• Claims backlog program is on-going
Next Steps
- Enhancement of Turn-around plan and
follow on approval by Board and
Executive Authority;
- Communication and socialisation of
Turn-around plan;
- Outputs linked to manager’s KPIs;
- Effectively manage risk and
consequences;
- Work the Plan
Questions