An Update on the Transformation Programme

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Building a New Home Affairs

• An Update on the Transformation Programme

Presentation to the Select Committee on Social
Services
4 JUNE 2008
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The 2004-05 audit clearly indicated the need for
change

• Following a disclaimer in the audit for 2004-5,
  the Minister of Home Affairs with the Ministers
  of Finance and Public Service and Administration
  mobilised a Support Intervention Team (SIT).
  The SIT began its work in June 2006.
• The main work of the SIT was to analyse the root
  causes of the problems at the DHA and make
  recommendations.
• Their report was made available in the first
  quarter of 2007 and accepted by the Committee of
  Ministers.

3
The Support Intervention Team confirmed deeply
rooted problems

• The SIT reported that there were deeply rooted
  problems with
• Leadership and Management
• Human Resources and the organisational design
• Information and Communication Technology
• Service Delivery and
• Financial Management and internal control.
• The response of Minister, supported by the
  Cabinet, was to launch a comprehensive and
  well-resourced turnaround over three years

4
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
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Our objective for the Turnaround is clear
To transform the department into a modern,
efficient, cost-effective service organisation
responsive to the needs of South African
citizens, residents and visitors to our country
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We have completed Phase 1 of the Turnaround which
focused on quick wins and designOur focus is now
on implementation
Building a new Home Affairs
Phase I
Phase 2
Early Value Realisation
Define
Design Develop
Embed Change
Implement
Stages
Transformation Implementation
Low
Piloting
Strategy Future End State Definition including
Roadmap
Criticality/ Urgency
Stabilisation Quick Wins
Time
High

• Implement the transformation roadmap
• Apply change management to ensure successful
  implementation

• Embed changes by providing long term enabling
  incentives, structures and tools

Objectives (Why)

• Stabilise key management processes
• Implement early value initiatives" Quick Wins to
  galvanise support for the initiative

• Define the future service delivery model
• Determine roadmap to reach end state

• Test rollout plans in a controlled setting before
  full implementation

Fundamentally Improve The Customer Experience
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Phase I realised a number of key achievements
(1/2)
Phase I Overview and Key Achievements
Selected Achievements
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Phase I realised a number of key achievements
(1/2)
Phase I Overview and Key Achievements
Selected Achievements
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Phase I realised a number of key achievements
(2/2)
Phase I Overview and Key Achievements
Selected Achievements
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In particular, the Vision Design team completed
the design of the New Home Affairs operating model
Overview of process followed and consultation
Current state analysis
Visioning
Design

• In-depth analysis of current situation and issues
  by the different design teams
• Interviews with stakeholders
• Customer survey

• 1st Visioning workshop Sept 10 to discuss and
  validate the current state analysis
• 2nd Visioning workshop Sept 13 on Legislative
  framework
• 3rd and 4th Visioning workshops Sept 27 and Oct 4
  to determine targets and principles for the new
  model and extent of separation between CS and NIB

• 1st EXCO workshop 14 Nov discussion and
  validation of part 1 of the operating model
• 2nd EXO workshop 27 Nov discussion and
  validation of part 2 of the operating model
• EXCO presentation 4 Dec on integral New Home
  Affairs model

All workshops conducted with DHA wide management
representation present
Current state analysis
High-level operating model
DHA Executive leadership structure
New Home Affairs operating model
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A unique feature in the model is that Customer
needs drove the design of the New Home Affairs
Service Delivery Model
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
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Going forward, 55 projects - clustered in 7
workstreams - have been identified to achieve the
total transformation, to be completed over a 2-3
year period
Proposed High-Level Programme Structure 2008
and Beyond
Civics
Support Services
IT
Finance
NIB
2
3
1
4
5

• 5 Functional Workstreams
• Civics
• NIB
• Support Services
• Finance
• IT

Communications Transformation(1)
Finance Transformation(1)
ID Process Transformation1
FIFA 2010 Design and Planning
Online Verification Roll Out
Budgeting Split
Security Investigations Transformation(1)
Marpless System Implementation
Late Registration Roll-Out
Performance Mgmt Implementation
IT Application Realignment to New Architecture
Memory ID Card Pilot
Security Upgrade
Revenue Mgmt Roll-Out
Permits Transformation1
Passport Machine Process Implementation
MOUs and SLAs with 3rd parties
Policy Process Optimisation
Payroll verification
Refugee Transformation and Footprint Roll-Out
B/M/D redesign (incl certificate decentralisation
Procurement Transformation(1)
HR Transformation(1)
NPR Data Clean Up
Contact Centre Ramp-Up
2nd Wave SLAs
HR Policy and Strategy
Lindela Contract Optimisation
Birth Network Expansion
Supplier Sourcing
EDMS
Information Mgmt Trans-formation (incl. Archiving)
Inspectorate Transformation(1)
Audit Risk Implementation Monitoring
Evaluation
Centre of Excellence
Network Infrastructure Upgrade
Establishment of PMO
Footprint Optimisation (incl. MPCCs)
Foreign Office and Ports of Entry Review
Business continuity
Office Refurbishments
Fleet Optimisation
Mobile Unit Optimisation
Real Estate Optimisation
5
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7
5
6

• 2 Cross-Functional Workstreams
• Organisational Implementation
• Organisational Governance Operational Control

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Leadership Appointments
Change Management
Employee Relations
Reporting Line Split
Job Profiling Skills Gap Analysis
Matching Staff Redeployment
Recruiting
Training
Employee Database Baseline
Performance Agreement Realignment
Payment Level Adjustments
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Government Relations Strategy Plan
Operations Management Roll-Out
Delegation of Authorities Implementation
Policy Framework Legislative Programme
Committee Structure Roll-Out
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Programme Management Office (PMO)
Organisational Projects Evaluation Monitoring
Project Communications
Scaffolding
GPW Corporatisation Oversight
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Work-stream
Project
PMO
Sub-project
Note (1) Transformation is a holistic
implementation programme of a specific function
beyond just the reorganisation It includes
sub-projects involving process, system,
facilities and capability changes It will work
closely with the organisational implementation
team on the staff implications
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The 5 functional workstreams will focus on
transforming Home Affairs to dramatically improve
the customer experience
Illustrative
High Level Functional Workstream Descriptions
Note (1) Benefits will be driven by the change
scenario and projects that DHA selects
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2 cross-functional workstreams and the PMO will
centrally drive the reorganisation,
organisational governance and the overall
programme
High Level Cross-Functional Workstream
Descriptions
Illustrative
Note (1) Benefits will be driven by the change
scenario and projects that DHA selects
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Work on the implementation has already begun
Illustrative1
Transformation Road Map and Selected Milestones
2008
2009
2010
15-25
55-65
Completion of Transformation Programme
75-85
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We have designed the programme for Phase 2 based
on five principles
Principles of the Programme Design

• Bottom-up build All potential initiatives to be
  implemented in 2008 and beyond have been gathered
  from the workstreams and business units and
  grouped into projects
• Top-down programme structure Projects have been
  grouped into a manageable set of 5-10 workstreams
  and set up either within the new organisational
  structure or as centrally-coordinated
  cross-functional activities
• Prioritisation and sequencing Projects have
  been prioritised and sequenced within each
  workstream based on the degree of business
  benefit it will generate, costs and
  implementation dependencies
• Governance Each project has a clear governance
  and support structure
• Driven by the PMO and sponsor and supported by
  FeverTree-A.T. Kearney consultants
• Driven by the PMO and sponsor and supported by
  another consultancy/ specialist
• Monitored by the PMO and supported by another
  consultancy/ specialist
• Monitored by the PMO and implemented by the
  business
• Scenarios 3 change scenarios have been
  developed varying in scope and pace

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Thank You