Group Performance Indicators 201314-201516

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Group Performance Indicators 201314-201516

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Predetermined objectives:Financial performance

STRATEGIC THEME EFFICIENT SUSTAINABLE BUSINESS THAT IS WELL DEFINED AND WELL COMMUNICATED TO THE PUBLICStrategic Goal Strategic objective Measure Strategic Plans 2014 Annual target Target

Q1

2014

Q2

2014

Q3

2014

Q4

2014Attain financial sustainability while delivering on Government social mandate

Improve financial performance

Growth in Group revenue by 4.6%

Grow Group revenue by 4.65% on prior year base of R6.105b Increase of R284m Increase of R70m Increase of R125m

Increase of R158m

Decrease of R69m

Grow Postbank non-interest revenue by 10.8% on prior year base of R359m

Increase of R38.8m

Increase of R9.7m Increase of R9.7mIncrease of

R9.7mIncrease of

R9.7m

Group operating profit/(Loss) before PRMA

Deliver sustainable returns through, revenue growth, cost optimization and enhancement of efficiencies

Loss of R85m Loss of R95m Loss of R102mAchieve profit of

R84mAchieve profit of

R28m

Strengthen the financial position

Growth in Postbank depositors book

Grow the Postbank depositors book from prior year base of R4.513b

Increase of R269m Increase of R94m Increase of R92mIncrease of

R44mIncrease of

R39m

Return on Assets (NP) Ensure achievement of target (0.8%) (0.9%) (1.0%) 0.8% 0.3%

Return on Equity (NP) Ensure achievement of target (3.0%) (3.6%) (3.7%) 3.2% 1.1%

Increase in Total Assets Increase in total assets by 2% from prior year base of R10.299b Increase of R208m

Increase of

R52mIncrease of R52m

Increase of R52m

Increase of R52m

Current Ratio Ensure achievement of target 1.26 1.26 1.26 1.26 1.26

Average Debtors days

Mail Ensure achievement of target

17 days average

17 days average for Q




Courier 45 days at year

end55 days average

for Q55 days average

for Q45 days

average for Q

45 days average for Q days average

for Q

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Predetermined objectives:Financial performance (continued)

STRATEGIC THEME EFFICIENT SUSTAINABLE BUSINESS THAT IS WELL DEFINED AND WELL COMMUNICATED TO THE PUBLICStrategic Goal Strategic objective Measure Strategic Plans 2014 Annual target Target

Q1

2014

Q2

2014

Q3

2014

Q4

2014Attain financial sustainability while delivering on Government social mandate

Courier Ensure achievement of target 45 days at year

end55 days average

for Q55 days average

for Q45 days

average for Q

45 days average for Q days average

for QImprove cost efficiency management

Group total cost as % of total income

Various cost and process optimization initiatives Annual average

target of 101%106% 106% 95% 98%

Reduction in leave liability

Implement new leave policy from 01 April 2013 and enforcement of leave management controls to reduce leave liability

Reduction of leave liability by

20% from a base of R199m

2% 5% 3% 10%

Cost Saving Various cost and process optimization initiatives on the total cost of R6.287b

R78.8m R9.55m R11.25m R10.55m R47.45m

Capital investment in priority areas

Return on CAPEX spend

10% return on capital invested of R250m

R25m R0m R5m R7.5m R12.5m

Value creation through alternative revenue models

Board approved Property Development strategy

Explore and quantify strategies to leverage the existing property portfolio for value creation

Delivery of a board approved comprehensive

property development

plan and delivery strategy

Exploration and quantification including finalising the business case,

consultation with all stakeholders, internal and external, observing all

internal protocols

Delivery of Approved strategy

Implementation

Alternative financing models

Board approved Funding strategy

Establishment of a suitable funding strategy to finance key projects outside normal operations

Establishment of a funding strategy

-Approved funding

strategyGo to market

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Predetermined objectives:Non-Financial performance

STRATEGIC THEME INVEST IN PEOPLE, TAKE THEM ALONG AND BUILD CAPACITY FOR THE FUTURE

No of workplace environments refurbished

Physical Infrastructure Renewal

20 buildings nationally

4 buildings 6 buildings 6 buildings 4 buildings

Staff Satisfaction index

Implement 100% intervention plan based on outcomes from previous survey to address internal communication shortcomings and implement a monitoring tool

Improvement of employee engagement/

communication satisfaction index from a

base of 56.3% to 70%

Develop intervention

plan to address outcomes from

previous survey

50% Implement corrective measures

100%

Implement corrective measures

Monitor and evaluate impact

of corrective measures to achieve 70%

Human capital capacity building

Success rate of individuals on leadership development programs

Targeted interventions via Leadership development programs and the evaluation of the success thereof (base of 24)

To improve current base of 90% by 5% to

95%

N/A N/A N/AAnnual target

95%

Vacancy rate at first two levels

(subject to new revised structure)

Filling of identified critical leadership positions. A total of 8 out of the current 18 vacancies by year end

Progressive Reduction of vacancy rate from 60% to 33%

50%

Fill 4 posts

40%

Fill 2 posts

35%

Fill 1 post

33%

Fill 1 post

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Predetermined objectives:Non-Financial performance (continued)


Invest in our people by building capacity and implementing transformation programs

Human capital capacity building

No. of critical positions with successors

Confirm a Talent pipeline against a defined talent matrix for the identified critical positions (14 @ Post office and 3 @ Postbank)

100%

17

35%

6 (SAPO)

24%

4 (SAPO)

24%

4 (SAPO)

17%

3 (Postbank)

570 staff with completed and contracted individual scorecards

Implement an automated Integrated performance management system

PM implemented at all

management levels including

executive directors

100% contracted on current

system

50% conversion on automated

system

100% conversion on automated

system

Monitoring and Evaluation

Number of staff with completed & evaluated scorecards

570 - 100% of half yearly

performance assessments

- 100% of full year performance assessments

Wellness Staff participation in HIV/AIDS testing programs

Encourage employee participation in voluntary HIV/AIDS testing

Target of 78%

(12 480)of total staff to be

progressively tested by end of Q4 from a base of 75% (12 000)

30% 40% 50% 78%

Absenteeism rate Reduce current absenteeism rate by 50% to 6% from a base of 11.8%

To reach a target of 6% (total absent days) by Q4

10%

Total absent days

9%

Total absent days

7%

Total absent days

6%

Total absent days

Sick leave rate Maintain sick leave rate within the industry benchmark and ultimately reach target of 2.3% from a base of 2.6%

To reach a progressive

target of 2.3% (total sick leave

days) as per industry

benchmark by year end

2.5%

Total sick leave days

2.4%


2.4%


2.3%


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Invest in our people by building capacity and implementing transformation programs

Supporting Government Imperatives

Advancement of HDIs and women in the workplace

Employment equity targets

Gender equity targets Total

females(base=

7043-45%)

Achieve target(6573)

42% 42% 42% 42% 42%

Total black females(base =5548-36% )

Achieve target(4469)

29% 29% 29% 29% 29%

Black females as % of total Graduates & learners

(base =35 – 45%)

Achieve target(50) 60% 60% 60% 60% 60%

Total blacks base (13035 = 84%)

Achieve target 79% 79% 79% 79& 79%

Integration of people with disabilities in the workplace

Disability targets (as per DWCPD guidelines) Disability

(base 69 = 0.44%)

Achieve target 2% 2% 2% 2% 2%

% of total number Graduates & learners(no current base)

Achieve target 2% 2% 2% 2% 2%

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STRATEGIC THEME ALIGN BUSINESS OPERATIONS TO CUSTOMER NEEDS, SHAREHOLDER AND GOVERNMENT PRIORITIES

Provide affordable postal and related services that meet the needs of our customers

Meet License and mandate obligations by increasing the accessibility of products and services

Additional physical addresses rolled out

Roll out addresses as defined in schedule 2 of the amended SAPO license agreement by ICASA (Government gazette no. 35080)

1 195 680 198 920 198 920 398 920 398 920

Additional retail outlets (points of presence) established

Roll out points of presence as defined in schedule 1 of the amended SAPO license by ICASA (Government gazette no. 35080)

50 0 3 22 25

Preferential procurement Enterprise development

Total B-BBEE spend as a % of total procurement spend (invoiced amount)

Procurement plan and practices aligned to advancement of

B-BBEE

60% 60% 60% 60% 60%

B-BBEE contributor level

Maintain the current level 4 contributor

4 4 4 4 4

Board approved supplier development strategy

Development of a comprehensive enterprise development strategy

Delivery of a board approved comprehensive

enterprise development

strategy

Postbank Corporatization

Submission of banking license application

Postbank Corporatization process

Banking license application

submitted to regulator by

31 March 2014

- - - Submission of Banking license

application to regulator

Active participation in Africa’s development agenda

Implementation status at remaining countries

Implementation of the SADC cross border interoperable money transfer service at remaining countries

Implementation @

Mozambique

and DRC

- - Mozambique DRC

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STRATEGIC THEME ALIGN BUSINESS OPERATIONS TO CUSTOMER NEEDS, SHAREHOLDER AND GOVERNMENT PRIORITIES

Remain customer centric by providing quality service

Customer centricity

Delivery performance standards

Mail

Achieve delivery performance standards as defined in schedule 3 of the amended SAPO license agreement by ICASA (Government gazette no. 35080)

95% 95% 95% 95% 95%

Logistics

96% 96% 96% 96% 96%

Queue waiting time of 7 minutes

Achieve efficiency standard as defined in the customer care standards by ICASA (Government gazette no. 35097)

At least 96% of 1579 branches

to achieve

7 minutes target


to achieve

7 minutes target


to achieve

7 minutes target

At least 96% of 1579 branches to

achieve

7 minutes target

At least 96% of 1579 branches to

achieve

7 minutes target

Ensuring that critical IT systems are available

Uptime and availability of critical IT systems

Infrastructure Refresh initiatives

Achieve 98% uptime

- - 98% 98%

Provision of a secure transacting environment for our customers

Reduction of postal, violent and fraud crime incidents

Implementation of physical & procedural securing measures to prevent, detect and/or deter crime incidents

Annual reduction of 15% of

incidents from a base of 2 632

incidents

Reduction of 15% of incidents

from 622 incidents

Reduction of 15% of incidents

from 584 incidents

Reduction of 15% of incidents from

612 incidents

Reduction of 15% of incidents from

814 incidents

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STRATEGIC THEME RENEW AND DESIGN A PHYSICAL NETWORK FOR THE FUTURE AND INNOVATE WITH NEW PRODUCTS AND SERVICES

Provide a secure, efficient and integrated infrastructure for better responsiveness to our stakeholders

Provide an efficient technology platform

Technology infrastructure renewal – conversation of current POS with WRE POS

WRE POS Replacement

Total of 1,370 branches to be

converted

Convert 658 branches

Convert 672 branches

Convert 40 branches

Achievement of annual target

Network Upgrade Upgrade the current network capability

All post-office on line

- - -All post offices on

linePhysical infrastructure renewal

Number of identified/planned properties refurbished

Proactive and reactive maintenance of critical buildings as identified

20 identified buildings

15% = 3 buildings

30% = 6 buildings

40% = 8 buildings 15% = 3 buildings

Providing a secure environment for our clients

No. of high risk branches reinforced Reinforcement of

Branch security through implementation of physical security measures to prevent violent crime

80 high risk postal outlets

-20 high-risk

postal outlets30 high-risk

postal outlets30 high-risk

postal outlets

% Reduction of violent crime at these branches

96% reduction from a base of 141 incidents

10% reduction from 38 incidents





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STRATEGIC THEME REVIEW INTERNAL POLICIES TO FOSTER GOOD GOVERNANCE, STREAMLINE PROCESSES AND ENHANCE EFFICIENT DFECISION MAKING

Maintain good corporate governance principles to ensure that we continuously improve as a trusted corporate citizen

Improve the control environment

Resolution of audit findings

Resolution of internal and external audit findings

Timeous resolution of all

residual risk audit findings

0 high risk audit findings

outstanding >90 DAYS







Control environment assessment measure

Status of control environment

High = 10%

Med = 30%

Low = 60%

High = 10%

Med = 30%

Low = 60%

High = 10%

Med = 30%

Low = 60%

High = 10%

Med = 30%

Low = 60%

High = 10%

Med = 30%

Low = 60%Effective risk management

Risk maturity assessment

Entrenchment and improvement of the risk management maturity level

Conduct an organizational

wide risk maturity assessment

Determine the risk maturity

baseline through a maturity

assessment

Develop a plan, in terms of the

baseline to improve

maturity level

Implement the risk maturity plan and

awareness

Measure improvement

against determined

baseline

% Improvement of risk profile

Reduction of residual risk profile by 10%

Baseline: 75% (Very High Risk)

Reduction of residual risk

profile by 10%

Complete BU ops risk

assessments & risk profile

Implementation of mitigation strategies

Implementation of mitigation strategies

10% improvement of residual risk

exposure profile downwards to at least 65% (High

Risk)

Compliance assurance

% Improvement of compliance risk profile

Reduction of compliance residual risk profile by 20% through compliance assessments

Baseline = 70% residual risk (High Risk)

Reduction of compliance residual risk

profile by 20%

Determine the compliance

maturity baseline through a

compliance maturity

assessment

Reduce by 7% Reduce by 14% 20% improvement of the compliance

risk exposure profile downwards to 50% (Moderate

Risk)

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Compliance assurance

% of Approved operational policies

Revision and alignment of the group’s operational policies and the publishing thereof to ensure their communication and enforcement

35% Review and alignment of policies and procedures

10% 15% 25% 35%

Establishment of a central repository of policies

Set up a central repository of

policies- - -

Set up and populate a central

repository of approved policies

Maintenance of ethical business practices

Ethics assessment Commission an organization wide ethics assessment to determine current perceived state of ethics to determine appropriate interventions

Assessment conducted

-

Determine the ethics maturity

baseline through an

ethics maturity assessment

Develop a plan, in terms of baseline,

to improve maturity level

Implement the ethics plan and

awareness

Contract management

No. of Contracts cleared from Back log

Regularization of outstanding contracts. Reduce Backlog as of 31 March 2013 80% 20% 40% 60% 80%

Crime awareness 17900 employees reached

Deployment of a crime awareness campaign to raise awareness of the Crime Buster Hotline for both employees and customers to encourage anonymous crime reporting

Conduct awareness sessions to

17,900 employees


2,000 employees


5,300 employees

Conduct awareness

sessions to 5,300 employees

Conduct awareness

sessions to 5,300 employees

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Social investment Categories of targeted beneficiaries. (8 Categories -include women, the disabled, unemployed young people, educators and learners, government officials, religious groups and community based organisations).

E-Rural access via digital solutions

(These include women, the disabled, Educators and learners, unemployed young people, government officials, religious groups, community based organizations, the elderly)

8

This includes all 8 categories of

targeted beneficiaries

serviced throughout the

year.

8 8 8 8

Community members using and accessing the 3 computer centres in Sending, Vredesvallei and Muxexe.

11 100 members 3 000 2 000 4 000 2 100

Number of identified training interventions for the community forum members in all 3 communities

12 interventions 3

Interventions per Q

3

Interventions per Q

3

Interventions per Q

3

Interventions per Q

No. of trainees per intervention

30

The same community

members will attend all the

training interventions for

the year

30 30 30 30

No. of secondary beneficiaries (secondary trainees, being trained by forum members)

6 000

beneficiaries

2 000 500 2 000 1 500

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Remain environmentally conscious by promoting green practices

Environmental sustainability

Carbon emissions Carbon management by reducing emissions from by 2.5% from a base of 37,256tCO2e to 36,325 tCO2e

Contain emission to

below 36,325 tCO2e

Contain emission to

below 12,214 tCO2e

Contain emission to

below 11,894

tCO2e

Contain emission to below

7,264tCO2e

Contain emission to below

4,949tCO2e

No. of trees planted Nationally

Plant trees to offset carbon emissions

2,000 400

400

800

400

Energy consumption Reduce electricity (energy) consumption at the Data Centre and Mail Centres by 3% over prior year consumption from 38,278,305 KWh to 37,129,974 KWh

Contain consumption to

below 37,129,974 KWh


below 14,391,655

KWh

Contain consumption to below 11,599,355 KWh



Water consumption Reduce total water consumption by 3% over prior year consumption from 113,851 KL to 110,435 KL


below to 110,435 KL

Contain consumption to below to 44,174 KL

Contain consumption to below to 33.130 KL



Paper usage Reduction of total amount of paper used by 2.5% over prior year from 499 tons to 486 tons

Contain usage to below to 486

tons

Contain usage to below to 122 tons




Recycle 95% of used paper of 486 tons = 462 tons

Recycle 95% of used paper = 462 tons

Recycle 95% of paper used =

462 tons

115.5 tons 115.5 tons 115.5 tons 115.5 tons

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Documents

Group Performance Indicators 201314-201516