Ministry of Mines and Energy · 2007-03-22 · Ministry of Mines and Energy Strategic Plan for 2007/08 - 2011/12 i FOREWORD By the Honourable Minister The Ministry of Mines and Energy

MMiinniissttrryy ooff MMiinneess aanndd EEnneerrggyy

SSSTTTRRRAAATTTEEEGGGIIICCC PPPLLLAAANNN 2007/08 – 2011/12

Ministry of Mines and Energy Strategic Plan for 2007/08 - 2011/12 i

FOREWORD By the Honourable Minister The Ministry of Mines and Energy has progressively been employing strategic planning best practices since 1996 in an effort to achieve its strategic imperatives especially taking cognisance of the myriad of national developmental services that we render to a variety of stakeholders. The strategic framework of Vision 2030 has been a driving force behind our efforts to increase our overall effectiveness (doing the right things) and efficiency (doing the right things well, first time). The fundamental importance of the strategic planning process in achieving Vision 2030 was cemented when the Office of the Prime Minister instructed all O/M/A’s to develop strategic plans as the first step in the implementation of the Performance Management System (PMS) with the primary objective to improve on the overall performance of all O/M/A’s so that the Namibian Nation can achieve Vision 2030. The Ministry of Mines and Energy developed the five-year strategic plan (2007/8 – 2011/12) based on the officially approved Public Service of Namibia Strategic Planning Model as developed during the PMS design process pioneered by the Office of the Prime Minister. The Ministry of Mines and Energy Strategic Plan 2007/8 – 2011/12 was developed during a highly consultative process during 2006 when the management cadre with the support of relevant industry stakeholders completed a thorough Situational Analysis with a consequent Strategic Planning Workshop to define the Strategic Objectives, Performance Indicators, Targets, Strategic Initiatives and Financial Projections relevant to our Ministry. Our high level statements were also reviewed to ensure that all stakeholders are aligned towards the same vision, mission and values. Specific measurable strategic imperatives were developed for each directorate to ensure that the accumulated efforts of all directorates would result in the Ministry of Mines and Energy achieving its overall strategic plan. The Strategic Plan is regarded as a dynamic document that will be reviewed and updated on a quarterly basis to ensure that we are able to measure the achievement of our targets and to celebrate our successes as well as to improve on our unique challenges. We will achieve our strategic objectives with the focussed commitment and team effort of all our stakeholders to honour the trust placed in us to manage our country’s national resources for the benefit of all the people of Namibia. ………………………………………. Hon. Erkki Nghimtina, MP Minister of Mines and Energy

Ministry of Mines and Energy Strategic Plan for 2007/08 - 2011/12 ii

Table of Contents

ABBREVIATIONS & DEFINITION OF TERMS ........................................................................ IV

1. OVERVIEW OF MME STRATEGIC PLANNING PROCESS ...........................................1

2. OUR APPROACH & METHODOLOGY..........................................................................3 2.1 STRATEGIC PLANNING IN PMS CONTEXT …………………………………….………………….. 3

2.2 STRATEGIC PLANNING & EXECUTION PROCESS ……………………………………...………….. 4

2.3 BSC PERSPECTIVES …………………………………………………………………………………… 4

3. HIGH LEVEL STATEMENTS.............................................................................................7 3.1 MANDATE …………………………………………………………………………………….. 7

3.2 VISION …………………………………………………………………………………………………. 7

3.3 MISSION …………………………………………………………………………………………………. 7

3.4 VALUES ………………………………………………………………………………………………….. 9

3.5 BALANCED SCORECARD CHAMPIONS …………………………………………………………. 9

4. STRATEGIC FOCUS AREAS (SFAS) ............................................................................10

5. STRATEGY MAPPING & STRATEGY STORY ................................................................12 5.1 STRATEGY MAPPING ………………………………………………………………………………… 12

5.2 STRATEGY STORY …………………………………………………………………………………..…. 12

6. PERFORMANCE INDICATORS AND TARGETS ...........................................................19 6.1 DEFINING INDICATORS AND TARGETS ……………………………………………………...……. 19

6.2 TARGETS AND BENCHMARKING ……………………………………………………………….….. 20

6.3 MME PERFORMANCE INDICATORS STATEMENT ……………………………………………..…. 21

7. INITIATIVES.................................................................................................................22

8. CASCADED UNIT MANAGEMENT PLANS .................................................................23

9. LOGICAL FRAMEWORK MATRIX...............................................................................25 1. DIRECTORATE OF ADMINISTRATION & FINANCE MANAGEMENT PLAN ……………………. 26

2. PERMANENT SECRETARY MANAGEMENT PLAN …………………………………………...……. 28

3. DIRECTORATE OF GEOLOGICAL SURVEY MANAGEMENT PLAN ……………………….……. 31

4. DIRECTORATE OF MINES MANAGEMENT PLAN ………………………………………………. 36

5. DIRECTORATE OF DIAMOND AFFAIRS MANAGEMENT PLAN ………………………………. 38

6. DIRECTORATE OF ENERGY MANAGEMENT PLAN ………………………………………………. 40

Ministry of Mines and Energy Strategic Plan for 2007/08 - 2011/12 iii

10. BUDGETING ...............................................................................................................44

11. INDIVIDUAL PERFORMANCE AGREEMENTS .............................................................47 11.1 METHODOLOGY OF CASCADING TO PERFORMANCE AGREEMENTS ……………………... 47

11.2 PERFORMANCE MANAGEMENT SYSTEM …………………………………………………........... 49

12. BSC IMPLEMENTATION PROCEDURES.......................................................................50 12.1 CRITICAL SUCCESS FACTORS ……………………………………………………………………… 50

12.2 STEP-BY-STEP PROCEDURE ………………………………………………………………………… 51

13. BSC AUTOMATION ....................................................................................................55 13.1 AUTOMATION BENEFITS ……………………………………………………………………...……… 55

13.2 COSTS AND BENEFITS ……………………………………………………………………………… 56

13.3 SELECTION CRITERIA …………………………………………………………………………..…….. 57

14. THE WAY FORWARD ..................................................................................................58

ANNEXURE A: EXAMPLE OF A PI STATEMENT...................................................................59

ANNEXURE B: EXAMPLE OF AN INITIATIVE STATEMENT ...................................................61

ANNEXURE C: EXAMPLES OF BSC SOFTWARE .................................................................63

Ministry of Mines and Energy Strategic Plan for 2007/08 - 2011/12 iv

Abbreviations & Definition of Terms The abbreviations and technical terms defined here are used in this document.

1.1 Abbreviations: BSC - Balanced Scorecard

CI - Continuous Improvement

CSF - Critical Success Factor(s)

DAF - Directorate of Administration and Finance

DDA - Directorate of Diamond Affairs

DE - Directorate of Energy

DGS - Directorate of Geological Survey

DM - Directorate of Mines

HR - Human Resource(s)

HRD - Human Resource Development

HRDP - Human Resource Development Plan

HRM - Human Resource management

HRP - Human Resource Plan

ICT - Information and Communication Technology

KM - Knowledge Management

LFM - Logical Framework Matrix

MIS - Management Information System

MME - Ministry of Mines & Energy

O - Objective

OD - Organisational Development

O/M/A - Office/Ministry/Agency

PA - Performance Agreement

PDP - Personal Development Plan

PI - Performance Indicator

PM - Project Management

PMS - Performance Management System

PS - Permanent Secretary

RE - Renewable Energy

SFA - Strategic Focus Area

CTMS - Computerized Mineral Titles Management System

Ministry of Mines and Energy Strategic Plan for 2007/08 - 2011/12 v

1.2 Technical Terms: Balanced Scorecard - a strategic management system with a balanced set of linked

objectives and performance indicators in different perspectives; valuable for establishing and communicating an organisation’s vision, mission and strategy to stakeholders and for the alignment of day-to-day work to strategy.

Benchmarking - a systematic, deliberate and thorough search for best practices that would lead to performance improvement when adapted into your organisation. It is a systematic learning process to close the performance gap. It involves planning, data collection, analysis and design, implementation, monitoring and adjustment.

Cascaded - a series of interventions through which an organisational aspect/concept (such as an objective) is passed from the higher to lower levels (to units) in a manner applied to each level, ensuring buy-in and resulting in aligned thinking and effort throughout the organisation.

Information systems - interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualisation in an organisation.

Initiative - current and future activities, projects and programmes the organisation is engaged in to help ensure it meets or exceeds its performance targets. Initiatives drive strategic performance. Initiatives are not ends in themselves, but means by which the organisation achieves its strategic objectives.

Intervention - An OD intervention can be any of the following types of measures or activities to improve organizational performance: Human Process; Techno-structural; Human Resource Management and Strategic.

Knowledge management - a systematic process of creating and leveraging organisational knowledge; involving discovery, codification, capturing, storage, sharing, dissemination and integration of new knowledge into the organisation for improved viability, growth and value. It integrates people, processes and technology.

Lagging - referring to strategic objectives or PIs as part of outputs or outcomes (used in the BSC and the Excellence models).

Leading - referring to operational objectives or PIs as part of inputs and processes (used in the BSC and the Excellence models).

Management Plan (or Action Plan) - a one year plan in which the organisation’s strategic objectives are translated into tactical strategies and linked to resources and the budget(s) of units; a plan in which objectives, activities and milestones to be achieved at operational unit / team level and responsible persons are identified; through the plan immediate pressure is reconciled with longer term strategy.

Mission - the mission statement defines the nature and core purpose of the organisation and is based on its mandate as expressed in specific legislation.

Objective - a specific (definable), concrete (measurable), short-term statement of a desired result, condition or accomplishment towards the achievement of strategic and management plans.

Outcome - the consequence, effect, impact and/or payoff(s) of achieving specific objectives/results, especially where direct effect is extremely difficult to measure.

Outputs - the services delivered or products produced.

Ministry of Mines and Energy Strategic Plan for 2007/08 - 2011/12 vi

Performance Indicator(s) (PIs) - the agreed sign(s)/measure(s) (quality, quantity, cost, etc.) used to determine, describe and assess effective performance and the achievement of results, i.e. the “what” that will be used to assess achievement, indicate progress, or the lack thereof, towards a result.

Performance Target - an agreed quantifiable performance level or change in level to be attained by a specific date.

Performance Verification - the process through which the validity and reliability of performance information is determined, with the aim to develop a holistic picture of and improve the performance within the unit/O/M/A.

Perspectives - different views or dimensions of an organisation when combined giving the full picture of the organisation; The BSC generally advocates four perspectives, viz. Employee/Learning and Growth, Processes, Financial and Customer/Citizen.

Project Management - the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.

Programme Management - a combination or grouping of related projects, together achieving a common objective or theme.

Strategy - strategy starts with the present and moves the organisation to the future. Strategy asks three questions: “Where are we now?” (by analysing our internal and external environment); “Where do we want to go?” (where is our preferred destination in say 5 years?); “How do we want to get there?” (our roadmap). Strategy represents the broad priorities adopted by the organisation in recognition of its operating environment and in pursuit of its mission.

Strategy Map - the inter-relationship among objectives and measures that together visually describe the organisation’s strategy.

Strategic Focus Area – a priority or focus area, a theme, a high level objective or cluster of related objectives, sometimes called a goal. Typically strategic focus areas are formed around broad service areas.

Strategic Plan - the document capturing the strategic critical issues and strategies towards attaining the organisational purpose and direction as developed by the organisation. ; Strategic Planning - a process through which an organisation determines its strategic direction by setting clear objectives, including high level statements (vision, mission, core values) on a long term basis.

Structure - the systematic grouping and coordination of a variety of functions, tasks, hierarchies and resources (human, physical, financial and information) through an analysis of the work required - in a way that all management, supervisors and staff members have a clear understanding of their duties and how they work effectively together towards the organisational vision, mission and objectives.

Target - a quantifiable goal for each PI. Performance targets are the expected levels or standards of performance to be reached within specific time frames for each objective. Targets help the organisation to monitor progress towards objectives and communicate expectations for the organisation, unit or individual.

Values - values determine the way things get done in the organisation. Values are timeless guiding principles, deeply held beliefs within the organisation and demonstrated through the day-to-day behaviours of all employees. The organisation’s values make an open proclamation about how it expects everyone to behave.

Ministry of Mines and Energy Strategic Plan for 2007/08 - 2011/12 vii

Vision - the vision is the attractive and desirable picture of the future organisation, in say 5 or 10 years time, in terms of its likely physical appearance, location, size, image, products/services/activities, customers, processes, performance, staffing, capacities, etc. Vision translates mission into something really meaningful.

Unit – the target for each PI can be expressed in different unit, e.g. percentage, N$, number, frequency and date (sometimes referred to as TCQQ – Time, Cost, Quality and Quantity).

Ministry of Mines and Energy Strategic Plan for 2007/08 - 2011/12 1

1. Overview of MME Strategic Planning Process

The MME expressed the leadership need to develop the Five-Year Strategic Plan of the MME during a highly interactive consultative process, based on the officially approved Public Service of Namibia Strategic Planning Model as developed during the Performance Management System (PMS) design as pioneered by the Office of the Prime Minister. The fundamental need for alignment with Vision 2030 and relevant high level documents was also expressed to the consultants.

The MME appointed strategic planning consultants in May 2006 to develop a practical strategic solution for the MME. Consequently, the consultants facilitated strategic workshop with management and project champions during July 2006 and August 2006 respectively, with the purpose to translate the strategic imperatives through the pragmatic Balanced Scorecard (BSC) methodology into specific objectives, measures, targets and initiatives.

The MME also expressed the need for the consultants to engage relevant MME officials during the process in an effort to capacitate them to be able to fully understand the strategic planning philosophy and methodology so that these officials would be able to maintain the strategic planning documents and process going forward. Hence, the secondary project objective is to transfer knowledge and to create internal capacity to maintain the scorecards going forward.

We will now define strategy and consequently elaborate on the strategic planning process being employed.

What is strategy? Strategy starts with the present and moves the organisation to the future. Strategy asks three questions:

“Where are we now?” – by analysing our internal and external environments “Where do we want to be?” – where is our preferred position in say 5 years?

“How do we want to get there?” – what is the best route to take?

“Strategy represents the broad priorities adopted by the organisation in recognition of its operating environment and in pursuit of its mission” (Niven 2003).

The Ministry of Mines and Energy (MME) has been actively involved in strategic planning processes over the past decade and consequently engaged strategic processes due to believing in the inherent value of the process. The MME provided the consultants with the following strategic documents as base-line information for developing the Five-Year Strategic Plan:

• Vision 2030 • NDP II • MME Strategic Plan 1999-2004 • MME Business Plan - 2005-2006 Financial Year (Fourth Quarter Review) • MME Business Plan – 2006-2007 Financial Year • MME Medium Term Plan • First Cabinet Retreat of the Fourth Government – 1-4 November 2005.


The existing vision at the time of the consultants engaging the MME was: The vision - ‘To be the best performing Ministry in Namibia in terms of achievements of its objectives’ – and the mission – ‘The Ministry of Mines and Energy, as the custodian of Namibia’s rich endowment of mineral, geological and energy resources, facilitates and regulates the responsible development and sustainable utilisation of these resources for the benefit of all Namibians’.

The existing values of the MME at the time of engaging the project were:

Value Definition Impartial To provide equal opportunity and treatment in service delivery.

Transparent To publish information on procedures and performance standards we aim to meet.

Accountable To be responsible and able to justify our decisions and actions.

Innovative To be creative in response to issues that impact on our business.

Loyal To be honest and faithful in dealing with our customers.

Professional To provide a value for money and customer focused service.

The existing vision, mission and values were reviewed during an interactive strategic planning facilitated group-activity with the consequence of newly high level statements being defined in an effort to align all directorates toward a common vision, mission and behavioural framework (refer to 3. hereunder for the newly defined high level statements).

The outcome of the initial Situational Analysis Workshop (12-14 July 2006) and the Strategic Planning Workshop (3-4 August 2006) was a pragmatic strategic plan developed through a process of continuous consultation with line management and all interested and affected parties.

The challenge for the consultants was to further cascade the MME Strategy to the relevant directorates in order to ensure that all MME business units were made responsible and accountable for achieving their individual objectives, which would ensure departmental objective achievement, which would ultimately culminate in overall Corporate Scorecard achievement.

This MME Strategic Plan/BSC aims to visually map the identified corporate strategic objectives (with specified priority levels), PIs, targets and initiatives that

were agreed upon with all interested and affected parties during various stakeholder engagement forums (i.e. workshops and meetings).

This report will become (once officially approved) the MME Corporate BSC that will serve as compass to the various business units in the BSC cascading process to

ensure strategic and operational alignment from the corporate scorecard through to business unit and individual levels.


2. Our Approach & Methodology

2.1. Strategic Planning in PMS Context Strategic planning in the Public Service of Namibia is mandatory as the strategic plan forms the critical link between national high-level initiatives and organisational (O/M/A) purpose and direction. In order to fulfil this critical link, strategic plans should be in line with the guidelines provided in PMS Module 3. Module 3: Strategic Planning is one of the 15 modules in the PMS Toolkit. As can be seen, the PMS starts with strategic planning as depicted in Figure 1.

FIGURE 1: MODULE IN PMS CONTEXT

PERFORMANCE AGREEMENT

Performance Recognition

Module 13

Managing Under-Performance

Module 9

Staff Management

Module 8

Team Management

Module 7Self Management

Module 6

MANAGING PERFORMANCE

HR Plans, Job Descriptions,

Competency Profiling,HR Development Plans

Module 4

PERFORMANCE PLANNING

Performance Agreements,Personal Development

Plans

Module 5

Top Management Meeting (TMM)

Module 14

Performance Verification

Module 12

Assessment Appeals

Module 11360 Degree Feedback

Module 15

Performance Assessment

Module 10

PERFORMANCE ASSESMENT

Module 2

Facilitating Change

Module 3 Strategic Planning,Management Plans,

Structure review

Module 3 Strategic Planning,Management Plans,

Structure review

PMS Overview

Module 1


2.2 Strategic Planning & Execution Process The “Strategy Diamond” as shown as Figure 2 (Olivier 2005), as described in PMS Module 3, depicts the strategy planning process from top to bottom, step by step. The first eight stages comprise the strategic planning process and the last two strategy execution.

FIGURE 2: STRATEGY DIAMOND (OLIVIER 2005) The corporate O/M/A strategy is developed in stages 1 to 7. Unit management plans are developed in stage 8 (cascaded from the strategic plan) which clearly states the roles of the group and individuals in performing specific duties and projects within specific timeframes and budgets. In this way the individual is linked to the vision and can clearly see his/her contribution to the corporate vision realisation.

In stages 9 and 10 the strategy/management plans are executed and progress/performance regularly measured, evaluated and verified with a feedback loop towards continuous improvement (CI).

2.3 BSC Perspectives It has become increasingly important for O/M/As to look at financial and non-financial perspectives, tangibles and intangibles, effectiveness and efficiency, leading and lagging performance indicators. A balanced set of objectives and performance measures are therefore required for excellent and sustainable performance.

UnitUnit

6. MME Initiatives & Resource Requirements6. MME Initiatives & Resource Requirements

IndInd

2. MME Mandate,

Vision, Mission & Values

UnitUnit UnitUnit

High level statements -Vision

2030, NDP

4. Strategy Development based on linked Objectives

3. Strategic Themes / SFAs

5. Metrics (PIs & Targets)

1. Initiation1. Initiation

2. Situational

Analysis

7. MME Structure Review7. MME Structure Review

8. Cascading the Strategic Plan8. Cascading the Strategic Plan

IndInd

9. Executing the Strategic Plan9. Executing the Strategic Plan


Balance is ensured when different views or perspectives of the organisation are considered in the identification of objectives.

The concept of perspectives (or dimensions) is explained by means of Figure 3. The cube has 6 sides or perspectives. To get the full picture of the cube, you need to look at all its sides or obtain all points of view. The four perspectives of the Balanced Scorecard (BSC) are:

• Employee (or Learning and Growth) perspective (E); • Internal processes perspective (P); • Financial perspective (F) and the • Customer perspective (C).

FIGURE 3: PERSPECTIVES ILLUSTRATED

This balanced view could also be compared with the dials and gauges on a car’s dashboard. Drivers can see at a glance what the indicators are communicating. The trick is to identify the few critical indicators that tell the story across the various perspectives.

For the MME these different perspectives could also be depicted in the form of a House (see Figure 4 on the following page). The sun above the ‘House’ represents the guiding light, the vision of the MME.

FIGURE 4: THE ‘BALANCED HOUSE’ (OLIVIER 2005)

In the foundation/floor or Employee Learning and Growth Perspective (E), the O/M/A capacity and direction is established. The resources required (staff, skills and assets, such as IT) are defined to create the required economic value (as defined in the service delivery model in Module 1). The direction in the development and leveraging of resources is achieved through strategic and management plans.

C

F

P

E

E or L

P

F

C


On a solid foundation and floor, the walls of the O/M/A can now be built. This is represented by the Internal Processes (P) Perspective. This is where the internal initiatives are found – where the products / services / information are produced, by means of transforming certain inputs to the desired outputs. These transformations are described by policies and procedures and implemented through processes. The O/M/A is designed or structured (with roles and responsibilities) to best support these processes. Technology is facilitating these processes.

The roof represents the Financial or Budget Perspective (F) of the O/M/A. Good service delivery will lead to good financial performance. This perspective normally has two main elements, viz. productivity improvement (e.g. cost reduction) and revenue growth (e.g. new sources of income and improved payment). (This perspective could also be placed immediately after the E perspective.)

The top part of the roof is the Customer or Citizen Perspective (C). The more funds, the better the O/M/A is able to serve its customers. In the public sector, the ultimate goal is customer/community service. Customers remain the beginning and end of an O/M/A. Through an effective PMS, continuous improvement should be institutionalised in the O/M/A.


3. High Level Statements

3.1. Mandate The Ministry of Mines and Energy was established in 1990 to act as custodian of Namibia’s rich endowment of mineral and energy resources and to create an environment in which the mineral and energy sectors could prosper. The function of the Ministry of Mines and Energy is to ensure that the mineral, geological and energy resources of Namibia are developed and utilized and in a sustainable manner for the maximum advantage of the country and her citizens, while promoting our natural wealth. Objectives: • To promote investment in the mineral and energy sectors. • To ensure the sustainable contribution of geological and energy resources to the socio-

economic development of Namibia. • To create a conducive environment for the mineral and energy sectors. • To regulate and monitor the exploration and exploitation of mineral and energy

resources. • To minimize the impact of exploitation of mineral and energy resources on the

environment. • To provide professional and customer focused service.

3.2. Vision The MME Vision (What do we want to be in five years time?) is presented on the following page.

3.3 Mission The MME Mission (What will we do to achieve the vision?) is presented on the following page.

These high level statements were co-crafted by MME management and employees at the strategy workshop of 3-4 August 2006, in collaboration with the consultants. The best options for the Vision, Mission and Value statements were selected by way of an extensive dialogue and consultation process.


Mission

Vision

Va

lue

s

Str

ate

gy

FIGURE 5: MME HIGH LEVEL STATEMENTS

Core values:

Integrity

Fairness

Transparency

Accountability

Excellence

Loyalty

Motivational values:

Team orientation

Commitment

Recognition

Customer focus

“To promote, facilitate and regulate the responsible development and sustainable utilisation of Namibia’s

mineral, geological and energy resources through competent staff,

innovation, research and stakeholder collaboration in a conducive

environment for the benefit of all Namibians.”

“To be renowned as a performance driven Ministry that passionately

works to achieve all of its strategic objectives.”


3.4. Values The MME Values as defined at the strategy workshop of 3-4 August 2006 are:

Value Definition

Core Values: We are not willing to compromise of the following values. Integrity We will always be honest, sincere and objective in all our decisions

and behaviour.

Fairness We will treat all our stakeholders in a fair and equitable manner irrespective of the myriad of things that make us different from one another.

Transparency We will be open in all our dealings by publishing accurate information on procedures and performance standards.

Accountability We will accept responsibility for our decisions and actions.

Excellence We will strive towards the highest standards of service excellence through professional, innovative and service orientated staff.

Loyalty We will always place the interests of all our stakeholders above personal interests.

Motivational Values: We value the following behaviour in all that we do. Team Orientation

We value the importance of working together in synergy to achieve our vision. We will only be able to achieve our vision, mission and strategic objectives when working together as a Team.

Commitment We expect all out team members to believe in the purpose of what they do and to work passionately in achieving all objectives.

Recognition We carefully consider the impact of business decisions on our people and we recognise exceptional contributions.

Customer Focus

We will keep the interests of our customers in mind when making business decisions.

3.5. Balanced Scorecard Champions The MME nominated the following BSC Champions that will assist the consultants in obtaining relevant and appropriate Directorate specific information in the process of completing the cascaded unit scorecards. The BSC Champions will also be capacitated in maintaining the scorecards.

Directorate of: Champion 1 Champion 2

Finance and Administration Edison Tjikune Kasupi Kavitjene

Geological Survey Gabi Schneider Dave Hutchins

Mining Helena Itamba Abraham Iilende

Energy Immanuel Nghishoongele Immanuel Mulunga

Diamond Affairs Vicky Niku-Paavola Kennedy Hamutenya


4. Strategic Focus Areas (SFAs) Strategic Focus Areas (SFAs) are the few priority or focus area in which an O/M/A has to perform to achieve its vision, based on its mandate. SFAs could be regarded as the main components of its strategy. These ‘areas’ are sometimes referred to as goals, high level objectives, clusters of related objectives key result areas (KRAs).Typically SFAs will form around broad service areas, based on the organisation’s mandate.

The eight SFAs chosen for MME are depicted in the form of a House. This House represents the MME as organisation. This House is made up of eight main components or SFAs as shown in Figure 6, with reference to the four conventional BSC perspectives.

FIGURE 6: MME STRATEGIC FOCUS AREAS (THEMES)

C2. Promote,

Develop & Monitor the

Mining Sector

C3. Promote, Develop & Monitor the Energy Sector

A. Strengthen MME Capacity

B. Create a Conducive Environment

E1. Protect Life and the

Environment

E2. Improve Socio-Economic Conditions

C1. Create, Research,

Promote & Disseminate Quality Earth Science

Information

D. Optimise Financial Outputs

MME Vision

Customer Perspective

(Outputs/ Outcomes)

Financial Perspective

(Outputs)

Learning & Growth

Perspective (Inputs)

Internal Processes

Perspective


Figure 6 tells us that if the MME wishes to achieve its vision, based on its mandate, it has to perform in these eight Strategic Focus Areas, viz.:

A: Strengthen MME Capacity – This is the foundation and includes human, financial and structural resources.

B: Create a Conducive Environment – This is the floor to create a conducive and ‘level playing field’ and includes legislation, relational resources, policies, procedures and incentives.

C1: Create, Research, Promote and Disseminate Earth Science Information – Built on the foundation and floor, this centre portion of the wall supports the core processes (walls) on both sides – Mining and Energy.

C2: Promote, Develop & Monitor the Mining Sector – This part of the wall represent the core business/processes in the mining sector.

C3: Promote, Develop & Monitor the Energy Sector - This part of the wall represent the core business/processes in the energy sector.

D: Optimise Financial Outputs – This bottom part of the roof, resting on the walls, represents the financial outputs/benefits.

E1: Protect Life & the Environment – This top half of the roof represents the desired outputs/outcomes with regard to the protection of human life and the environment.

E2: Improve Socio-Economic Conditions - This other top half of the roof represents the desired outputs/outcomes with regard to social and economic development of communities and the Namibian population in general.

This ‘MME House’ is being built from bottom up by means of these eight main building components. The hypothesis is that the House would collapse should one component be missing.

In the next section these components or strategic focus areas are populated with objectives that are linked.


5. Strategy Mapping & Strategy Story

5.1. Strategy Mapping The identified 8 SFAs are now populated with objectives. Each SFA is decomposed (broken up into smaller pieces) into specific objectives. Objectives are the building blocks or value drivers of strategy and the BSC. Objectives are categorised into these chosen SFAs. This process is depicted in the form of a mind map (Figure 7) with the vision in the centre and moving outwards with more and more detail. To realise the vision, the broad areas of focus (SFAs) were chosen first. Then more detail per SFA is added by means of objectives (O). After this more detail per objective is added by means of initiatives (I) or projects. This map illustrates our strategy on one page, showing how our various initiatives contribute in achieving our vision. This hypothesis, however, needs to be tested through verification (refer to PMS Module 12).

FIGURE 7: STRATEGY MIND MAP (OLIVIER 2006) Strategy mapping forms an integral part of strategic planning and the BSC. It is sometimes called a ‘value creation map’ or ‘success map’. The strategy map links the various strategic objectives together in a very clear manner for everybody to understand.

VisionVisionVisionVision

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SFASFASFASFASFASFASFASFA

SFASFASFASFA

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OOOO

OOOO

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IIII

IIII IIII IIII

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IIII

IIII

IIII

IIII

IIII

IIII

IIII

IIII

IIII

IIII

IIII

IIII

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IIIIIIIIIIIIIIII

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In Figure 8 the MME Strategy Map is presented as the ‘In-House Strategy Map”.

In this Figure the Objectives are linked in a general cause and effect relationship.

The strategy map shows how objectives are dependent on one another (leading and lagging value drivers and indicators) over the different SFAs. This chain of causes and effects is created that is believed to lead to the desired outcome (a hypothesis).

A total of 41 objectives were identified through the consultation process. The hypothesis is that if the MME follows this path, by achieving these 41 objectives in these 8 SFAs, it will realise its vision.

Objectives are all numbered according to their SFA, e.g. Objective B3 is “Reduced Red Tape”.

The ‘House’ is being built and maintained by achieving the various objectives in the SFAs, generally from bottom to top. Objectives in SFA A, B and C are mostly leading objectives (inputs and processes) and those in SFA D and E lagging objectives (outputs / outcomes).

Figure 9 gives an indication of current accountabilities (per directorate) for the identified strategic objectives.

Figure 10 is an example of the ‘PS Dashboard’ of two selected months. The progress made towards the achievement of all objectives can be summarised on the strategy map by using the three colours of the traffic light. Only when all objectives are coloured in green will MME’s vision be realised. These colours are determined by the chosen PIs and targets for each objective.

An important aspect of the BSC and the PMS is that progress is monitored, evaluated and reported on a regular basis (preferably monthly). The purpose of this is to assess corporate, unit and individual performance and to take the appropriate measures to recognise good performance and improve poor performance.

The strategy map is the summary of the strategy. If a problem is identified with an objective, it is possible to “drill down” to find the root causes.

The tables or logical framework matrix (LFM) provides the details. The LFM is used to “drill down” to PIs, targets, initiatives and responsible people.

This whole process is in the BSC format that can be automated, should it be required in future.


5.2. Strategy Story In the ‘Strategy Story’, the motivation and story of the strategy map as told, step-by-step, from bottom to top.

The MME strategy story is told by means of the house analogy. The house consists of 8 main components of SFAs and is built from bottom to top. The essential building blocks are the objectives that are placed in these areas and are linked in a general cause-and-effect relationship.

Building the Foundation: First off all sufficient capacity within MME is required. It starts with sufficient qualified staff and their retention by means of appropriate remuneration and working conditions. Clear and well communicated policies & procedures will make it easy for staff on all levels to understand what is expected from them and how to execute their work. The right culture has to be cultivated, based on the core values, customer focus, learning and innovation and service and high performance. Apart from human resources, our most valuable asset, other resources are also required as inputs, laying the foundation. These are financial resources (budget) and physical resources such as facilities, equipment and vehicles. These need to be properly managed. Information and communication technology plays a valuable and essential role in today’s O/M/A to facilitate good relations and efficient service delivery.

Building the Floor: With sufficient MME capacity (with the minimum resource requirements met), a conducive and attractive environment/industry (level playing fields) needs to be created for healthy development in the mining and energy sectors (preparing for the walls to be built). An appropriate legislative framework is essential to clarify and harmonise stakeholder mandates, roles and responsibilities. Role players need to know the rules of the game. Clear guidelines in the form of industry policies and procedures should be developed and communicated, such as for environmental protection. Red tape should be reduced to make processes faster, more efficient and more attractive for stakeholders such as investors. Improved knowledge of all stakeholders and their needs is centrally located in the floor, as public service is all about knowing and serving your customers. Only by knowing your stakeholders, their mandates, needs, roles and responsibilities can good relations be built towards increasing synergy. Specific actions are required to improve the image of Namibia and its resources and to positively brand it. This will facilitate effective promotion and the creation of appropriate incentives for potential investors in exploration and processing. Local SME’s should be included for incentives and encouraged to participate in the local mining and energy industries.

Building the Walls: The walls represent the core activities/processes as described in the MME mandate and consist of three main parts. In the centre, new geo-information is generated and disseminated to stakeholders, focusing on facilitating development in the mining and energy sectors.

In the mining sector the few strategic objectives selected are improvements in licensing, regulation of exploration and exploitation, safety and security, diamond protection; increases in investments, beneficiation and improvements in the control of imports and exports and mining output/export.

In the energy sector the chosen essential building blocks are improvements in licensing, regulation of exploration and production, an increase in energy generation, a strengthened transmission network, enhanced rural electrification, affordable energy based on cost-recovery, increases in the use of renewable energy and value addition of oil and gas and export of electricity.


Building the Roof: The roof represents the desired outputs and outcomes of MME. It includes a financial and customer perspective. The actions leading to the achievement of the objectives in the foundation, floor and walls should lead to increased sales and exports, supported by improvements in income collection.

The need for improved monitoring, evaluation and reporting of MME outputs and outcomes was identified. The selected desired outputs in the areas of environmental protection and socio-economic development are: improved protection of the environment and more rehabilitated sites; the reduction of mining and energy related accidents; communities well educated in the geo-science, mining, energy, safety and environmental protection; an increased number of SMEs operating in the mining and energy sectors with improved support, such as facilities, infrastructure, finance, coaching and mentoring; and finally an increase in Namibian ownership and employment opportunities in businesses linked to the mining and energy sectors.

This narrative is illustrated on the strategy map (Figure 8)

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 16

Figu

re 8

: MM

E ‘In

- H

ouse

St

rate

gy M

ap

’ wit

h 39

lin

ked

ob

ject

ives

in

8 S

FAs

C2.

Pro

mot

e, D

evel

op

& M

onit

or t

he M

inin

g Se

ctor

C3.

Pro

mot

e, D

evel

op

& M

onit

or t

he E

nerg

y Se

ctor

A. S

tren

gthe

n M

ME

Cap

acit

y

B.

Cre

ate

a C

ondu

cive

En

viro

nmen

t

E1. P

rote

ct L

ife

and

the

Envi

ronm

ent

E2. I

mpr

ove

Soci

o-Ec

onom

ic

Con

diti

ons

1. Su

ffic

ient

Qua

lifie

d &

Com

pete

ntSt

aff &

Sup

port

1. Su

ffic

ient

Qua

lifie

d &

Com

pet

ent

Staf

f & S

uppo

rt

5. Im

pro

ved

ICT

Serv

ice

Del

iver

y

5. Im

prov

ed

ICT

Serv

ice

Del

iver

y

4. O

ptim

alM

gt o

f Log

istic

s &

Ass

ets

4. O

ptim

alM

gt o

f Log

istic

s &

Ass

ets

3. O

ptim

alM

gt o

f MM

EB

udge

t

3. O

ptim

alM

gt o

f MM

EB

udge

t

1. Im

prov

ed

& H

arm

onise

dLe

gisla

tion

&R

egul

atio

ns

1. Im

prov

ed

& H

arm

onise

dLe

gisla

tion

&R

egul

atio

ns

4. Im

prov

ed

Kno

wle

dge

ofal

l Sta

keho

lder

s&

the

ir N

eeds

;Im

prov

ed R

elat

ions

& S

yner

gy

4. Im

pro

ved

Kno

wle

dge

ofal

l Sta

keho

lder

s&

the

ir N

eeds

;Im

prov

ed R

elat

ions

& S

yner

gy

6. E

ncou

rage

dLo

cal S

MEs

6. E

ncou

rage

dLo

cal S

MEs

5.Im

prov

edIm

port

&Ex

port

Con

trol

5.Im

prov

edIm

port

&Ex

port

Con

trol

7. E

nhan

ced

RE

7. E

nhan

ced

RE

1. Im

prov

edLi

cens

ing

1. Im

pro

ved

Lice

nsin

g

3. Im

pro

ved

Qua

lity

ofEn

viro

nmen

t

3. Im

prov

edQ

ualit

y of

Envi

ronm

ent

2. Im

pro

ved

Cul

ture

&

Cus

tom

er F

ocus

2. Im

prov

edC

ultu

re &

C

usto

mer

Foc

us

4. E

duca

ted

Com

mun

ities

4. E

duca

ted

Com

mun

ities

2. C

lear

Gui

delin

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rEn

viro

nmen

tal P

rote

ctio

n

2. C

lear

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delin

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viro

nmen

tal P

rote

ctio

n

3. R

educ

ed R

ed T

ape

3. R

educ

ed R

ed T

ape 4. In

crea

sed

Res

earc

h in

Geo

-Env

ironm

ent

4. In

crea

sed

Res

earc

h in

Geo

-Env

ironm

ent

1. Im

prov

ed G

ener

atio

n of

Geo

Dat

a1.

Imp

rove

d G

ener

atio

n of

Geo

Dat

a

2. In

crea

sed

Cov

erag

e of

Sur

veys

& M

aps f

or

Expl

orat

ion

2. In

crea

sed

Cov

erag

e of

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veys

& M

aps f

or

Exp

lora

tion

1. Im

pro

ved

Lice

nsin

g1.

Impr

oved

Lic

ensin

g

1. Im

prov

edR

epor

ting

1. Im

pro

ved

Rep

ortin

g

3. Im

prov

ed P

rote

ctio

n,Sa

fety

& S

ecur

ity

3. Im

pro

ved

Pro

tect

ion,

Safe

ty &

Sec

urity

2. Im

prov

ed R

egul

atio

nof

Exp

lora

tion

& M

inin

g

2. Im

pro

ved

Reg

ulat

ion

of E

xplo

ratio

n &

Min

ing

4. In

crea

sed

Ben

efic

iatio

n&

Val

ueA

dditi

on

4. In

crea

sed

Ben

efic

iatio

n&

Val

ueA

ddit

ion

2. In

crea

sed

Sale

s / E

xpor

ts2.

Incr

ease

d Sa

les /

Exp

orts

5. In

crea

sed

Ener

gyG

ener

atio

n &

Sto

rage

5. In

crea

sed

Ener

gyG

ener

atio

n &

Sto

rage

8. A

ffor

dabl

e&

Cos

t-re

flect

ive

Ener

gy

8. A

ffor

dabl

e&

Cos

t-re

flect

ive

Ener

gy

6. S

tren

gthe

ned

Tran

smiss

ion

Net

wor

k

6. S

tren

gthe

ned

Tran

smiss

ion

Net

wor

k

2. Im

prov

ed

Reg

ulat

ion

ofEx

plo

ratio

n&

Pro

duct

ion

2. Im

prov

ed

Reg

ulat

ion

ofEx

plor

atio

n&

Pro

duct

ion

9. P

rom

oted

Val

ue A

dditi

onof

Oil

& G

as

9. P

rom

oted

Val

ue A

dditi

onof

Oil

& G

as

1. Im

prov

ed M

inin

g &

Ene

rgy

Out

puts

1. Im

pro

ved

Min

ing

& E

nerg

y O

utpu

ts

3. Im

prov

ed H

ealth

,Sa

fety

& E

nviro

nmen

t

3. Im

pro

ved

Hea

lth,

Safe

ty &

Env

ironm

ent

2. R

educ

ed n

oof

Acc

iden

ts

2. R

educ

ed n

oof

Acc

iden

ts

5.Im

prov

edP

rom

otio

n &

In

cent

ives

for

Inve

stor

s

5.Im

pro

ved

Pro

mot

ion

&

Ince

ntiv

es fo

r In

vest

ors

5. M

ore

Empl

oym

ent

& S

MEs

5. M

ore

Empl

oym

ent

& S

MEs

7. In

crea

sed

Expl

orat

ion

7. In

crea

sed

Expl

orat

ion

C1.

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ate,

Res

earc

h, P

rom

ote

& D

isse

min

ate

Qua

lity

Ear

th

Scie

nce

Info

rmat

ion

4. M

ore

Use

of R

enew

able

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gy

4. M

ore

Use

of R

enew

able

Ener

gy3.

Incr

ease

d C

over

age

of S

urve

ys&

Map

s for

Eng

& E

nviro

nmen

t

3. In

crea

sed

Cov

erag

e of

Sur

veys

& M

aps f

or E

ng&

Env

ironm

ent

6. Im

pro

ved

Diss

emi-

natio

n of

Geo

Dat

a

6. Im

prov

ed D

issem

i-na

tion

of G

eo D

ata

5. S

tate

of t

he A

rt

Dat

a In

terp

reta

tion

5. S

tate

of t

he A

rt

Dat

a In

terp

reta

tion

D. M

axim

ise

Fina

ncia

l Out

put

s

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 17

Figu

re 9

: MM

E St

rate

gy M

ap

wit

h D

irect

ora

te

acc

ount

ab

iliti

es

C2.

Pro

mot

e, D

evel

op

& M

onit

or t

he M

inin

g Se

ctor

C3.

Pro

mot

e, D

evel

op

& M

onit

or t

he

Ener

gy

Sect

or

A. S

tren

gth

en

MM

E C

ap

aci

ty

B.

Cre

ate

a

Con

duc

ive

Envi

ron

men

t

E1. P

rote

ct L

ife

an

d

the

Envi

ron

men

t

E2. I

mp

rove

Soc

io-

Econ

omic

C

ond

itio

ns

1. Su

ffic

ient

Qua

lifie

d &

Com

pet

ent

Sta

ff &

Sup

por

t

1. Su

ffic

ient

Qu

alif

ied

& C

omp

eten

tSt

aff

& S

up

por

t

5. Im

pro

ved

IC

T Se

rvic

eD

eliv

ery

5. Im

pro

ved

IC

T Se

rvic

eD

eliv

ery

4. O

pti

ma

lM

gt o

f Log

istic

s &

Ass

ets

4. O

ptim

al

Mgt

of L

ogist

ics

& A

sset

s

3. O

pti

ma

lM

gt o

f M

ME

Bu

dge

t

3. O

pti

ma

lM

gt o

f M

ME

Bu

dge

t

1. Im

pro

ved

&

Ha

rmon

ised

Legi

slati

on &

Reg

ula

tion

s

1. Im

pro

ved

&

Ha

rmon

ised

Legi

slati

on &

Reg

ula

tion

s

4. Im

pro

ved

K

now

led

ge o

fa

ll St

akeh

old

ers

& t

heir

Nee

ds;

Imp

rove

d R

ela

tion

s&

Syn

ergy

4. Im

pro

ved

K

now

led

ge o

fa

ll St

ak

ehol

der

s&

the

ir N

eed

s;Im

pro

ved

Rel

ati

ons

& S

yner

gy

6. E

ncou

rage

dLo

cal S

MEs

6. E

ncou

rage

dLo

cal S

MEs

5.Im

pro

ved

Imp

ort

&Ex

por

tC

ontr

ol

5.Im

pro

ved

Imp

ort

&Ex

por

tC

ontr

ol

7. E

nhan

ced

RE

7. E

nhan

ced

RE

1. Im

pro

ved

Lice

nsin

g

1. Im

pro

ved

Lice

nsin

g

3. Im

pro

ved

Qu

alit

y of

Envi

ronm

ent

3. Im

pro

ved

Qua

lity

ofEn

viro

nmen

t

2. Im

pro

ved

Cu

ltu

re &

C

ust

omer

Foc

us

2. Im

pro

ved

Cu

ltur

e &

C

usto

mer

Foc

us

4. E

du

cate

dC

omm

uni

ties

4. E

du

cate

dC

omm

uni

ties

2. C

lea

r G

uid

elin

es f

orEn

viro

nmen

tal P

rote

ctio

n

2. C

lea

r G

uid

elin

es f

orEn

viro

nmen

tal P

rote

ctio

n

3. R

edu

ced

Red

Ta

pe

3. R

educ

ed R

ed T

ap

e 4. In

crea

sed

Res

earc

h in

Geo

-Env

ironm

ent

4. In

crea

sed

Res

earc

h in

Geo

-Env

ironm

ent

1. Im

pro

ved

Gen

erat

ion

of G

eo D

ata

1. Im

pro

ved

Gen

erat

ion

of G

eo D

ata

2. In

crea

sed

C

over

age

of S

urv

eys

& M

ap

s fo

r Ex

plo

rati

on

2. In

crea

sed

C

over

age

of

Surv

eys

& M

ap

s fo

r Ex

plo

rati

on

1. Im

pro

ved

Lice

nsin

g1.

Imp

rove

d L

icen

sing

1. Im

pro

ved

Rep

orti

ng

1. Im

pro

ved

Rep

orti

ng

3. Im

pro

ved

Pro

tect

ion,

Safe

ty &

Sec

urit

y

3. Im

pro

ved

Pro

tect

ion,

Safe

ty &

Sec

urit

y

2. Im

pro

ved

Reg

ula

tion

of E

xplo

ratio

n &

Min

ing

2. Im

pro

ved

Reg

ula

tion

of E

xplo

rati

on &

Min

ing

4. In

crea

sed

Ben

efic

iati

on&

Va

lue

Ad

dit

ion

4. In

crea

sed

Ben

efic

iati

on&

Va

lue

Ad

dit

ion

2. In

crea

sed

Sal

es /

Exp

orts

2. In

crea

sed

Sa

les

/ Exp

orts

5. In

crea

sed

Ene

rgy

Gen

era

tion

& S

tora

ge

5. In

crea

sed

Ene

rgy

Gen

era

tion

& S

tora

ge

8. A

ffor

dab

le&

Cos

t-re

flect

ive

Ener

gy

8. A

ffor

dab

le&

Cos

t-re

flect

ive

Ener

gy

6. S

tren

gthe

ned

Tr

ans

miss

ion

Net

wor

k

6. S

tren

gthe

ned

Tr

ans

miss

ion

Net

wor

k

2. Im

pro

ved

R

egu

lati

on o

fEx

plo

rati

on&

Pro

du

ctio

n

2. Im

pro

ved

R

egu

lati

on o

fEx

plo

ratio

n&

Pro

du

ctio

n

9. P

rom

oted

Va

lue

Ad

dit

ion

of O

il &

Gas

9. P

rom

oted

Va

lue

Ad

diti

onof

Oil

& G

as

1. Im

pro

ved

Min

ing

& E

nerg

y O

utp

uts

1. Im

pro

ved

Min

ing

& E

nerg

y O

utp

uts

3. Im

pro

ved

Hea

lth,

Safe

ty &

Env

ironm

ent

3. Im

pro

ved

Hea

lth,

Safe

ty &

Env

ironm

ent

2. R

edu

ced

no

of A

ccid

ents

2. R

edu

ced

no

of A

ccid

ents

5.Im

pro

ved

Pro

mot

ion

&

Ince

ntiv

es f

or

Inve

stor

s

5.Im

pro

ved

Pro

mot

ion

&

Ince

ntiv

es f

or

Inve

stor

s

5. M

ore

Emp

loym

ent

& S

MEs

5. M

ore

Emp

loym

ent

& S

MEs

7. In

crea

sed

Exp

lora

tion

7. In

crea

sed

Exp

lora

tion

C1.

Cre

ate

, Res

earc

h, P

rom

ote

& D

isse

min

ate

Qua

lity

Ea

rth

Scie

nce

Inf

orm

ati

on

4. M

ore

Use

of R

enew

ab

leEn

ergy

4. M

ore

Use

of R

enew

ab

leEn

ergy

3. In

crea

sed

C

over

age

of

Surv

eys

& M

ap

s for

Eng

& E

nviro

nmen

t

3. In

crea

sed

C

over

age

of

Surv

eys

& M

aps

for

Eng

& E

nviro

nmen

t

6. Im

pro

ved

Diss

emi-

nati

on o

f Geo

Da

ta

6. Im

pro

ved

Diss

emi-

nati

on o

f Geo

Da

ta

5. S

tate

of t

he A

rt

Da

ta In

terp

reta

tion

5. S

tate

of

the

Art

D

ata

Inte

rpre

tati

on

D. M

axi

mis

e Fi

nanc

ial O

utp

uts

DE

DM

DD

A

DG

S

DA

F

PS

DE

DM

DD

A

DG

S

DA

F

PS

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 18

Figu

re 1

0: E

xam

ples

of t

he C

EO D

ashb

oard

:

(Gre

en =

Obj

ectiv

e ac

hiev

ed; O

rang

e= O

bjec

tive

near

ly a

chie

ved;

Red

=Obj

ectiv

e fa

r fro

m b

eing

ach

ieve

d)

Tim

e: sa

y De

c 20

07

Tim

e: sa

y De

c 20

09

(B

SC so

ftwa

re c

ould

offe

r dril

l dow

n fu

nctio

ns fr

om O

bjec

tive

to P

I to

Initi

ativ

e)

1.

Suf

ficie

ntQ

ualif

ied

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6. Performance Indicators and Targets

6.1 Defining Good Performance Indicators A performance indicator (PI) is a performance metric that will reflect progress against an objective. The PI and its target should be regarded as part of the objective, making it measurable. A PI is an agreed indicator to be used to determine progress made, or the lack thereof, towards achieving each objective. A PI must be quantifiable to track progress. To develop meaningful PIs, one has to understand desired inputs and the processes that are used to produce outputs and eventually outcomes. Leading indicators are predictors of future performance and lagging indicators are outcomes. PIs are used by organisations to measure individual staff member, Unit and overall organisational performance.

Objectives and their PIs need to be SMART(A):

Each objective should therefore have at least one PI, but preferably not more than three (to prevent complexity). Each PI should have a unit of measurement and a target. The sources of evidence are clearly spelled out in the PI Statement (see section 6.3).

PIs could be classified in terms of TCQQ – Time (date/duration/frequency), Cost (N$), Quality (Satisfaction index or %) and/or Quantity (number or %). Examples of PIs, with their units of measurement, are:

• Customer satisfaction (%) • Employee satisfaction (%) • Production quantity (No) • Service delivery frequency (weekly) • Productivity/efficiency (%) • Work quality (no of complaints) • Time – responses and meeting deadlines (no) • Turnover/retention of staff (no) • Workplace relations (index) • Cost (N$)

• Specific: PIs should be expressed in clear and specific terms, indicating/measuring specific actions required in the individual job;

• Measurable: PIs should be quantifiable to a large extent, that is based on behaviour that can be observed and documented and is job-related;

• Agreed to: PIs should be based on genuine prior two-way consultation;

• Realistic: PIs should be realistically achievable; giving the staff member a significant degree of control over achievement of the PI; considering the realities of the work environment;

• Timely: PIs should have an appropriate time frame; relevant information should be collected ‘as it happens’ or within a short time afterwards;

• Aligned: Individual PIs need to be directly linked to O/M/A objectives and performance indicators; they need to reflect the O/M/As values; they need to be linked to other HR-related functions (e.g. training and reward).


6.2 Targets and Benchmarking A target is a quantifiable standard for each indicator. Performance targets are the expected levels or standards of performance to be reached within specific timeframes for each objective. Targets help the organisation to monitor progress towards objectives and communicate expectations for units and the organisation.

Targets have to be challenging and be raised over time, but to remain achievable.

Initially targets may be estimated guesses, but over time these targets have to conform to best practices by comparing what are the benchmark targets in the industry. Industry refers to similar types of services offered by others in the region or globally.

Benchmarking is a systematic, deliberate and thorough search for best practices that would lead to performance improvement when adapted in your organisation. The benchmarking process is therefore a systematic learning process to close the performance gap. It involves planning, data collection, analysis and design, implementation, monitoring and adjustment.

It provides PIs and targets as tools to identify inefficiencies and to improve business processes. The appropriateness of benchmarks should be reviewed in the performance verification process.

The PIs and targets for the various MME objectives were selected at the workshops. These are shown in the tables or LFM.

It should be noted that these PIs and targets should be regarded as provisional, due to the limited information available at this stage. These PIs and targets

should be revised and finalised during the first few months of implementation.

Only the best few PIs per objective should be chosen. Appropriate targets can only be defined through the process of benchmarking.


6.3. MME PI Statements Indicators have to be well defined to facilitate strategy execution and performance management. An indicator statement normally includes the following:

PI BACKGROUND: • Theme and Objective this measure is linked to

• Indicator Number & Name

• Indicator Owner: The name of the owner (unit or person) of this measure accountable for the results.

• Indicator Description: Explain why the measure is critical, why it was decided to include this measure, how the measure will help to achieve the objective and strategic theme of expanding offerings.

PI CHARACTERISTICS: • Frequency: How often do you plan to report performance on this measure – daily,

weekly, monthly, quarterly or bi-annually or annually?

• Unit Type: Indicating how the measure will be expressed – in numbers, N$, percentages or indices?

• Polarity: Indicating whether high values reflect good or bad performance.

CALCULATION AND DATA SPECIFICATIONS: • Data Source / Source of evidence: Indicate the source of the measure – e.g. a

management report survey or information system.

PERFORMANCE INFORMATION: • Baseline: State the current level of performance.

• Target: State your future targets for performance improvement.

• Target Rationale: Explain how you arrived at these particular targets.

An example of a PI Statement is shown in Annexure A. It is important to note that each unit within the MME would need to progressively complete the ‘PI Statements’ templates for each objective over the next couple of months seeing that the completed documents would map the specific pragmatic focus areas for each PI. Management will also be challenged to evaluate whether each defined PI can in actual fact be measured in practical operational terms. It will also sensitise management to the importance of having relevant and appropriate sources of evidence (‘Data Source’) for effectively measuring each PI with supporting targets during defined reporting periods. It is essential to note that the ‘PI Owner’ will be responsible for frequently reporting on the relevant PI / target achievement and hence he/she will be required to establish operational procedures to ensure that targets are achieved and that relevant progress records are maintained for frequent (whether monthly, quarterly, bi-annually or annually) reporting. Therefore, the ‘PI Statements’ templates could be defined as a planning document indicating what the purpose of each PI is (PI Motivation); who the owner of the relevant PI is (PI Owner); how the PI will be measured (Unit Type); what the reporting frequency for the PI Owner would be (Frequency); what the sources of evidence / documentation would be (Data Source); what the current baseline is (Baseline); and what the relevant and appropriate targets are for each PI.


7. Initiatives

How do we achieve our targets for each measure? - through initiatives or projects. Initiatives are where the action is.

The BSC links the strategic objectives with initiatives or projects. In this way resource allocation is based on the strategy.

Initiatives are defined as current and future activities or projects the MME is engaged in to help ensure it meets or exceeds its performance targets.

Initiatives drive strategic performance. Initiatives are not ends in themselves, but means by which the MME will achieve its defined strategic objectives. Through the initiatives the MME will reach its targets and achieve its objectives.

But initiatives require resources: financial, human and structural. These normally need to be managed by means of project management principles, tools and techniques. It is therefore important to measure initiative progress through project management tools and techniques. Refer to the Project Management Body of Knowledge (PMBOK) from the Project Management Institute (www.pmi.org).

The various strategic initiatives are listed in the tables of the following section.

Note that a detailed project plan has to be developed for each initiative before implementation. Based on these project plans, an Initiative Statement has to be developed for each project, summarising the key project features to be monitored and measured on a regular basis, as part of the BSC.

An example of an Initiative Statement is shown in Annexure B.


8. Cascaded Unit Management Plans ‘Cascading’ refers to a series of stages in which each operates the next in turn (Collins Concise Dictionary: 2001). In the BSC context this means that the Corporate BSC is the primary and most important foundational stage in the strategic planning process. All relevant themes, objectives, performance indicators (measures), targets, initiatives and resources (responsible people and budgets) for the MME are identified within the process of assimilating the Corporate BSC.

However, the purpose of strategic planning is to turn strategy into action. Therefore, it is essential to allocate each and every identified objective, performance indicator and initiative to a relevant and appropriate department within the MME. For instance: the responsibility for Training normally vests in the hands of the Human Relations Unit. Hence, the employee related training objective within the Learning & Growth Perspective within the Corporate BSC will now be cascaded to the Human Relations Unit Scorecard. Similarly all objectives, measures and initiatives relevant to specific functional units will now be allocated to the respective departments cascaded from the Corporate BSC. This translates into a scenario whereby the sum total of all unit scorecards will equate to the MME Corporate Scorecard.

It is also important to note that the process of cascading relevant Corporate BSC objectives to relevant units are effected in close consultation with the respective Heads of Units in order to ensure buy-in and commitment. It also raises the awareness amongst the various Unit Heads of the importance of their Unit’s contribution towards achieving the organisational objectives of the MME. Therefore, the cascaded Unit scorecards clearly define who are responsible for specific objectives, performance indicators, targets and initiatives relevant to that Unit as well as defines the financial resources approved for each initiative. The Unit Heads retains the primary responsibility and accountability for ensuring that all identified responsible team members within his/her Unit actually reports and achieves his/her defined action plans. These action plans clearly defines the reporting requirements for each initiative as well as the metrics.

The PS will on a monthly basis expect all Unit Heads to report on their Units’ progress in achieving the objectives as identified in the Corporate BSC, cascaded to Unit level. This effectively means that the overall Corporate BSC can only be achieved through effective and efficient functional Unit performance.


Figure 11 illustrates the cascading process as described above.

FIGURE 11: CASCADING FROM STRATEGIC TO UNIT MANAGEMENT PLANS

O3: ICTO3: ICTO2: SkillsO2: SkillsO1: StaffO1: Staff

Performance Indicators Unit Target

Objectives in one perspective

Initiative O2.1Initiative O2.1Initiative O2.1Initiative O2.1

Responsibility: Responsibility:

Time: Cost: N$Time: Cost: N$

Scope: Scope:

Initiative O2.2Initiative O2.2

Responsibility: Responsibility:

Time: Cost: N$Time: Cost: N$

Scope: Scope:

Initiative O2.2Initiative O2.2

Demonstrated Competencies (Outcome)Demonstrated Competencies (Outcome)

Completed Training (Output)Completed Training (Output)

Needs Assessment & HRD Plan (Input)Needs Assessment & HRD Plan (Input)

%%

%%

%%

8080

100100

100100

Demonstrated Competencies (Outcome)Demonstrated Competencies (Outcome)

Completed Training (Output)Completed Training (Output)

Needs Assessment & HRD Plan (Input)Needs Assessment & HRD Plan (Input)

%%

%%

%%

8080

100100

100100

O/

M/

A a

nd

Un

it

Perform Areas PIs Unit Target

Values, TeamworkValues, Teamwork

MGT/SUP tasksMGT/SUP tasks

Add org Add org contributionscontributions

25 people by 25 people by DecemberDecember

No; No; DateDate

Successful trainingSuccessful trainingKR 2: Objective 2: KR 2: Objective 2: Skilled staffSkilled staff

KR 1: Objective 1: KR 1: Objective 1: Sufficient staffSufficient staff

Developed HRD PlanDeveloped HRD Plan

Staff appointedStaff appointed

Developed HRPDeveloped HRP

DateDate

No; No; DateDate

DateDate

AugustAugust

2 people by 2 people by JuneJune

AprilApril

Values, TeamworkValues, Teamwork

MGT/SUP tasksMGT/SUP tasks

Add org Add org contributionscontributions

25 people by 25 people by DecemberDecember

No; No; DateDate

Successful trainingSuccessful trainingKR 2: Objective 2: KR 2: Objective 2: Skilled staffSkilled staff

KR 1: Objective 1: KR 1: Objective 1: Sufficient staffSufficient staff

Developed HRD PlanDeveloped HRD Plan

Staff appointedStaff appointed

Developed HRPDeveloped HRP

DateDate

No; No; DateDate

DateDate

AugustAugust

2 people by 2 people by JuneJune

AprilApril

O/M/A or Unit level

Individual PAs


9. Logical Framework Matrix The Logical Framework Matrix (LFM) (or Tables) takes the strategy map and gives it more detail. The LFM is therefore the detailed strategy/BSC of the.

The corporate LFM can include the following:

• Strategic Focus Areas

• Objectives (with priorities and accountabilities)

• PIs

• Targets

• Initiatives (with priorities and responsibilities)

• Cost estimates of all initiatives

• Scheduling of initiatives over the 5 year period

On the following pages the LFM for MME are presented. It is cascaded into the six Management Plans (per Unit/Directorate)

The objectives refer to the strategy map in Figures 8 & 9. The same colour codes are used.

Note that the Estimated Costs are in thousands (000’s) and represent the estimated total 2006 cost for each initiative over the 5 year period.

Min

istry

of M

ines

and

Ene

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Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 26

1.DA

F M

anag

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(SM

ART

ito

CTQ

Q)

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et

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Tota

l Es

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5

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taff,

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mun

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ion

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tions

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ning

pro

vid

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ccor

ding

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ann

ual H

RD P

lan

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of a

bsen

t day

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Sta

ff Tu

rnov

er

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ff sa

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X X XX

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A3

Opt

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Man

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Min

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and

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Stra

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7/08

- 20

11/1

2 27

No O

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7

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Min

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of M

ines

and

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rgy

Stra

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c Pl

an fo

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7/08

- 20

11/1

2 28

2.

PS

Man

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lan

No

Obj

ectiv

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ART

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No

Initi

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e N

ame

SJO

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Tota

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5

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Impr

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tom

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lar r

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w o

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er

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plia

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to st

ate

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ents

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rt of

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ually

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200

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B4

Impr

oved

Kno

wle

dge

of S

take

hold

ers

& th

eir

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ds; I

mpr

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ns,

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labo

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n &

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lar v

isits

to st

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rs in

M

inin

g a

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s,

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mee

tings

with

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ham

ber

of M

ines

(CoM

) &

Dia

mon

d Bo

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, rur

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n ES

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C &

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ed

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regi

ons p

.a.

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0%

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0%

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dex

/ %

p.a

.

1 2 3 4 5 6

Regu

lar v

isits

to m

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and

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sta

keho

lder

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rly M

ME

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slette

rs w

ith

targ

eted

info

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tion

and

ad

vice

, e.

g. to

SM

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Hol

d re

gula

r mee

tings

/ w

orks

hop

s w

ith E

SI, R

EC, N

EF, P

C, e

tc.

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t Ann

ual O

pen

Day

C

ond

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nnua

l sta

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surv

ey

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re e

stab

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ent o

f HIV

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ce F

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s in

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ing

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onito

r

S S S S O J

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200

100

X X X X X XX

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X X X X X X

X X X X X X

X X X X X X

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B5

Impr

oved

Pro

mot

ion

of

Nam

ibia

& it

s Re

sour

ces w

ith

Ince

ntiv

es fo

r Inv

esto

r Ex

plor

atio

n &

Proc

essin

g

No

of in

tern

atio

nal c

onfe

renc

es

and

tra

de

show

s atte

nded

p.a

. N

o of

pos

itive

resp

onse

s fro

m

pro

mot

ion

even

ts

ROI o

n p

rom

otio

nal a

ctiv

ities

(f

utur

e –

ba

sed

on fo

rmul

a)

Com

plia

nce

to K

imbe

rley

pro

cess

4 p

.a.

N

o p

.a.

%

Ret

urn

on

Inve

stm

ent

10

0%

1 2

Esta

blish

inst

itutio

nal s

truct

ure

bet

wee

n M

ME,

CoM

& o

ther

s to

pro

mot

e m

iner

al p

oten

tial,

geop

hysic

s, m

inin

g ex

plor

atio

n &

d

evel

opm

ent

Prep

are

wel

l and

atte

nd

inte

rna

tiona

l con

fere

nces

and

tra

de

show

s

J S

N Y

0 50

0

XXX X

X X

X X

X X

X X

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 29

No O

bjec

tive

PI (S

MA

RT it

o C

TQQ

) Ta

rget

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

B6

Enco

urag

ed L

ocal

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all &

Med

ium

En

terp

rises

(SM

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ar p

olic

y gu

idel

ine

for S

mal

l &

Med

ium

Ent

erp

rises

(SM

E)

dev

elop

men

t and

BEE

in p

lace

&

impl

emen

ted

N

o of

SM

Es p

rovi

ded

with

tra

inin

g/m

ento

ring

No

of S

MEs

supp

orte

d w

ith

fina

nce

/ lo

ans

-

from

Rev

olvi

ng F

und

-

from

priv

ate

Fin

anc

ial

Inst

itutio

ns

Val

ue o

f fin

anci

al su

ppor

t p

rovi

ded

to S

MEs

: -

from

Rev

olvi

ng F

und

-

from

priv

ate

Fin

anc

ial

Inst

itutio

ns

Loa

n ap

plic

atio

n a

ppro

val t

ime

-fro

m R

evol

ving

Fun

d

-fro

m p

riva

te F

ina

ncia

l In

stitu

tions

Lo

ans r

ecov

ered

from

SM

Es

-fro

m R

evol

ving

Fun

d

-fro

m p

riva

te F

ina

ncia

l In

stitu

tions

N

o of

SM

Es v

isite

d b

y M

ME

Mid

200

7

No

p.a

.

No

p.a

. N

o p

.a.

N

$ p

.a.

N$

p.a

.

Da

ys

Da

ys

%

%

10 p

.a.

1 2 3

Com

pile

& m

aint

ain

SME

da

taba

se

per

sect

or a

nd p

er re

gion

by

2007

C

oord

ina

te a

nd v

isit R

egio

nal

Cou

ncils

(RC

), Lo

cal A

utho

ritie

s (LA

), SM

Es, f

inan

cial

inst

itutio

ns a

nd

men

tors

to fi

nd w

ays

to b

est a

ssist

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Es

Prov

ide

tech

nica

l/ana

lytic

al &

m

ana

gem

ent s

upp

ort /

coa

chin

g &

m

ento

ring

and

link

with

fina

nce

and

in

frast

ruct

ure

J J J

N N N

0 25

0 50

0

XXX X

XXX

X X XX

X

X X XX

X

X X XX

X

X X XX

X

D1

Impr

oved

Min

ing

& En

ergy

Out

puts

Min

ing

Prod

uctio

n ou

tput

En

ergy

Gen

era

tion

outp

ut

Tons

per

Q

uarte

r %

gro

wth

p.a

.

MW

/ Q

uarte

r %

gro

wth

p.a

.

1

Col

lect

sta

tistic

s qua

rterly

from

M

inist

ry o

f Fin

anc

e (M

oF),

Cha

mbe

r of

Min

es (C

oM),

Bank

of N

amib

ia

(BoN

), et

c.

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Y

0

X

X

X

X

X

D2

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ease

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les/

Expo

rts,

espe

cial

ly V

alue

-A

dded

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eral

s

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l exp

ort i

ncre

ase

-

Min

ing

-

Ener

gy

% V

alue

-ad

ded

in e

xpor

t -

Min

ing

En

ergy

%

p.a

. %

p.a

. %

%

1 C

olle

ct st

atis

tics q

uarte

rly fr

om M

oF,

CoM

, BoN

, etc

. J

N

0 X

X X

X X

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 30

No O

bjec

tive

PI (S

MA

RT it

o C

TQQ

) Ta

rget

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

E1

Impr

oved

O

utpu

t/O

utco

me

Resu

lts &

Rep

ortin

g

Tota

l inc

ome

colle

cted

(lic

ense

fe

es, t

axe

s, ro

yalti

es, e

xpor

t d

utie

s, et

c.)

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inin

g pe

r ca

tego

ry

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ergy

per

ca

tego

ry

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on o

f tot

al p

oten

tial

inco

me

colle

cted

per

ca

tego

ry

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uss U

nit M

gt P

lans

in

mon

thly

mgt

mee

tings

M

gt P

lan

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ress

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orts

incl

. a

pp

rop

riate

imp

rove

men

t a

ctio

ns ta

ken

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pen

ditu

re o

n op

era

tiona

l and

ca

pita

l bud

get

Dev

elop

ed B

SC S

yste

m fo

r PM

S re

por

ting

M

ME

Ann

ual R

epor

t (ha

rd

copi

es a

nd w

ebsit

e) a

nd

ensu

red

pa

rast

ata

l rep

orts

N

$ /

Qua

rter

N$

/ Q

uarte

r %

Mon

thly

Qua

rterly

85%

Dec

200

6

Ann

ually

1 2 3 4

Col

lect

sta

tistic

s fro

m M

oF q

uarte

rly

Dev

elop

imp

rove

d p

roce

dur

es fo

r in

com

e co

llect

ion

by

liaisi

ng w

ith

MoF

, AG

, etc

. D

esig

n an

d im

plem

ent a

n a

utom

ate

d BS

C S

yste

m fo

r PM

S m

ana

gem

ent a

nd re

por

ting

Prod

uctio

n of

Qua

rterly

and

Ann

ual

Rep

orts

S J O S

N Y N N

0 0 85

0 35

0

X X XX

X X

X X X

X X X

X X X

X X X

E5

Mor

e Em

ploy

men

t C

reat

ed a

nd M

ore

SMEs

in M

inin

g &

Ener

gy S

ecto

rs th

at a

re

succ

essf

ul a

nd u

nder

N

amib

ian

owne

rshi

p

No

of n

ew jo

bs

-M

inin

g

-En

ergy

In

crea

se in

wom

en e

mpl

oyed

N

o of

SM

Es w

ith N

am

ibia

n ow

ners

hip

-M

inin

g se

ctor

-

Ener

gy se

ctor

Po

rtion

Nam

ibia

n eq

uity

/BEE

-

Min

ing

-

Ener

gy

Incr

ease

in n

o of

succ

essfu

l SM

Es

Porti

on p

rocu

rem

ent f

rom

N

amib

ian

SMEs

N

o p

.a.

No

p.a

.

20%

p.a

.

No

p.a

. N

o p

.a.

15

% in

201

1 15

% in

201

1

25%

p.a

.

20%

p.a

.

1 2

Ob

tain

sta

tistic

s fro

m M

in o

f Lab

our

ann

ually

and

rep

ort

Impl

emen

t BEE

Cha

rter f

rom

200

7,

incl

. pro

cure

men

t for

PD

Gs;

mon

itor

& re

port

on p

rogr

ess /

scor

eca

rds

J S

N N

0 0

X XX

X

X X

X X

X X

X X

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 31

3. D

GS

Man

agem

ent P

lan

No

Obj

ectiv

e PI

(SM

ART

ito

CTQ

Q)

Targ

et

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

B2

Cle

ar G

uide

lines

&

Ass

uran

ce o

f En

viro

nmen

tal

Prot

ectio

n

No

of re

por

ts o

n en

viro

nmen

tal

asp

ects

N

o of

EIA

s ass

esse

d

Porti

ons o

f req

uest

s suc

cess

fully

ha

ndle

d

No

/ Q

uarte

r N

o /

Qua

rter

100%

1 Re

gula

r visi

ts to

insp

ect/

ass

ess

envi

ronm

enta

l asp

ects

S

Y 20

0 X

X X

X X

B5

Impr

oved

Pro

mot

ion

of

Nam

ibia

& it

s Res

ourc

es

with

Ince

ntiv

es fo

r In

vest

or E

xplo

ratio

n &

Proc

essin

g

No

of in

tern

atio

nal c

onfe

renc

es

and

tra

de

show

s atte

nded

p.a

. N

o of

pos

itive

resp

onse

s fro

m

pro

mot

ion

even

ts

No

of in

vest

ors a

ssist

ed

4 p

.a.

No

p.a

. N

o /

Qua

rter

1 2 3

Imp

rove

inst

itutio

nal s

truct

ure

to

pro

mot

e m

iner

al p

oten

tial,

geop

hysic

s, m

inin

g ex

plor

atio

n &

d

evel

opm

ent

Prep

are

wel

l and

atte

nd

inte

rna

tiona

l con

fere

nces

and

tra

de

show

s M

ana

ge C

ore

stor

age

faci

lity

J S S

Y Y Y

0 0 0

XXX X

XXX

X X XX

X

X X XX

X

X X XX

X

X X XX

X

C1/

1 Im

prov

ed G

ener

atio

n of

G

eo D

ata

Impr

oved

dat

abas

es:

-M

iner

al o

ccur

renc

e d

ata

-

Litho

stra

tigra

phi

c d

ata

-

Geo

chro

nolo

gica

l da

ta

-Re

mot

e se

nsin

g d

ata

-

Airb

orne

hyp

er sp

ectra

l tes

t d

ata

-

Bore

hole

da

ta

-D

imen

sion

ston

e ca

talo

gue

-D

rill c

ore

da

ta

-G

eoch

emic

al d

ata

-

Airb

orne

GP

da

ta

-G

roun

d G

P da

ta

% C

aptu

red

%

Cap

ture

d

No

/ Q

uarte

r %

Cap

ture

d

% C

aptu

red

%

Cap

ture

d

% C

aptu

red

%

Cap

ture

d

% C

aptu

red

%

Cap

ture

d

% C

aptu

red

1 C

olle

ct a

nd c

ap

ture

mor

e d

ata

/da

tab

ase

dev

elop

men

t J

Y 1,

800

XX

X XX

X XX

X XX

X XX

X

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 32

No O

bjec

tive

PI (S

MA

RT it

o C

TQQ

) Ta

rget

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

C1/

2 In

crea

sed

Cov

erag

e of

Su

rvey

s & M

aps f

or

Expl

orat

ion

No

of s

urve

ys a

nd d

igita

l da

ta

sets

per

ca

tego

ry:

-A

irbor

ne G

P -

Geo

logi

cal c

over

age

-

Econ

omic

geo

logy

co

vera

ge

-G

roun

d ge

ophy

sical

co

vera

ge

-G

eoch

emic

al S

urve

ys

No

of m

aps p

rodu

ced

per

ca

tego

ry:

-A

irbor

ne G

P -

Geo

logi

cal

-Ec

onom

ic g

eolo

gy

cove

rage

-

Gro

und

geop

hysic

al

cove

rage

-

Geo

chem

ical

surv

eys

95%

by

2009

50

% b

y 20

07

% c

over

age

N

o Su

rvey

s/

Qua

rter

No

surv

eys/

Q

uarte

r N

o /

Qua

rter

No

/ Q

uarte

r N

o /

Qua

rter

No

/ Q

uarte

r N

o /

Qua

rter

1 2

Surv

eyin

g:

•A

irbor

ne G

eop

hysic

al P

rogr

am

•G

eolo

gica

l sur

veyi

ng

•Ec

onom

ic g

eolo

gy su

rvey

ing

•G

roun

d ge

ophy

sical

surv

eyin

g •

Geo

chem

ical

surv

eyin

g M

appi

ng:

•A

irbor

ne G

eop

hysic

al P

rogr

am

•G

eolo

gica

l map

ping

•

Econ

omic

geo

logy

ma

ppin

g •

Gro

und

geop

hysic

al m

appi

ng

•G

eoch

emic

al m

appi

ng

J S S S J S S S S S

Y Y Y Y Y Y Y Y Y Y

50

0 3,

000

40

0 65

0 1,

000

30

0 1,

000

20

0 46

0 25

0

XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X

XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X

XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X

XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X

XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X XX

X

C1/

3

Incr

ease

d C

over

age

of

Surv

eys &

Map

s for

En

gine

erin

g &

Envi

ronm

ent

No

of s

urve

ys a

nd d

igita

l da

ta

sets

per

ca

tego

ry:

-G

eote

chni

cal s

urve

ys

No

of m

aps p

rodu

ced

per

ca

tego

ry:

-G

eote

chni

cal s

urve

ys

-Re

mot

e Se

nsin

g In

terp

reta

tion

No

Surv

eys/

Q

uarte

r N

o /

Qua

rter

No

/ Q

uarte

r

1 2

Surv

eyin

g:

•G

eote

chni

cal s

urve

ying

M

appi

ng:

•G

eote

chni

cal m

app

ing

S S

Y Y

20

0 10

0

XX

X XX

X

XX

X XX

X

XX

X XX

X

XX

X XX

X

XX

X XX

X

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 33

No O

bjec

tive

PI (S

MA

RT it

o C

TQQ

) Ta

rget

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

C1/

4 In

crea

sed

Rese

arch

in

Geo

-Env

ironm

ent

Func

tiona

l lab

orat

orie

s: -

Geo

chem

ical

-

Rock

mec

hani

cs

-En

viro

nmen

tal

-So

il m

echa

nics

N

o of

rese

arc

h pr

ojec

ts

-G

eoch

emic

al

-Ro

ck m

echa

nics

-

Envi

ronm

enta

l -

Soil

mec

hani

cs

-Pa

leon

tolo

gy

100%

10

0%

100%

10

0%

No

/ Q

uarte

r N

o /

Qua

rter

No

/ Q

uarte

r N

o /

Qua

rter

No

/ Q

uarte

r

1 2 3 4 5 6 7 8 9

Imp

rove

lab

ora

torie

s – G

eoch

emic

al

& R

ock

mec

hani

cs &

Env

ironm

enta

l &

Soi

l mec

hani

cs

Mai

ntai

n co

nta

cts w

ith re

sea

rch

inst

itutio

ns

Esta

blish

& m

aint

ain

seism

olog

ical

ne

twor

k Es

tabl

ish se

ismic

ha

zard

& ri

sk m

ap

G

eolo

gica

l stu

dies

for u

rba

n &

rura

l d

evel

opm

ent

Inve

stig

ate

and

repo

rt on

was

te

disp

osal

site

s in

urb

an a

rea

s In

vest

iga

te a

nd re

port

on

ab

and

oned

min

e sit

es

Inve

stig

ate

and

repo

rt on

ge

otec

hnic

al &

geo

-env

ironm

enta

l en

gine

erin

g co

nstra

ints

in L

and

Use

Pl

ann

ing

Mai

ntai

n Ts

umeb

geo

phy

sical

re

sear

ch st

atio

n

J J J S J J J J S

Y Y Y Y Y Y Y Y Y

1,35

0 0

450 50

100

240

240

140

1,10

0

X X XX

X X X X X XX

X

X X XX

X X X X X XX

X

X X X XX

X X X X X XX

X

X X X X X X X XX

X

X X X X X X X XX

X

C1/

5 St

ate

of th

e A

rt Da

ta

Inte

rpre

tatio

n

No

of p

ublic

atio

ns

No

of sp

ecia

lised

ser

vice

s p

rovi

ded

N

o of

clie

nts s

erve

d

No

/ Q

uarte

r N

o /

Qua

rter

No

/ Q

uarte

r

1 2 3 4

Sup

port

Na

com

a, c

ontin

enta

l she

lf &

Ben

guel

a p

roje

cts

Ass

ist w

ith la

nd re

form

and

re

settl

emen

t Pr

oduc

e va

rious

pub

lica

tions

A

ssist

Sm

all S

cale

Min

er

J J S J

Y Y Y Y

0 0 20

0 0

X X X X

X X X X

X X X X

X X X X

X X X X

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 34

No O

bjec

tive

PI (S

MA

RT it

o C

TQQ

) Ta

rget

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

C1/

6 Im

prov

ed D

issem

inat

ion

of G

eo D

ata

Incr

ease

d in

sale

s of d

ata

/map

s Es

tabl

ished

Geo

Pa

rk

GD

RS e

sta

blish

ed

Val

ue o

f Geo

Tou

rism

/ N

o of

vi

sitor

s (fu

ture

PI)

No

of h

erita

ge si

tes d

ealt

with

No

/ Q

uarte

r N

$ /

Qua

rter

Dec

200

8 D

ec 2

008

N$

/ N

o p

.a.

No

/ Q

uarte

r

1 2 3 4 5 6 7

Inve

stig

ate

with

MoF

imp

rove

d p

aym

ent p

roce

dure

s, in

cl. e

-p

aym

ent

Set u

p G

eoph

ysic

al D

ata

Ret

rieva

l Sy

stem

(GD

RS)

Esta

blish

a N

amib

ian

Geo

Pa

rk

Prot

ect a

nd d

evel

op n

atio

nal

herit

age

sites

Up

date

and

mai

ntai

n m

useu

m a

t M

ME

with

the

vario

us d

ispla

ys

Upda

te &

mai

ntai

n th

e M

ME

libra

ry

Esta

blish

Cor

e st

ore

at T

sum

eb

J J J J S S J

Y Y Y Y Y Y Y

0 15

0 0 0 36

0 60

0 0

XXX

XXX

XXX X

XXX

XXX

XXX

XX

X XX

X X XX

X XX

X XX

X

X XX

X XX

X XX

X

X XX

X XX

X

X XX

X XX

X

C1/

7 In

crea

sed

Expl

orat

ion

Expl

ora

tion

exp

endi

ture

M

iner

al sa

les

Fore

ign

Dire

ct In

vest

men

ts

N$

p.a

. N

$ p

.a.

Tons

p.a

. N

$ p

.a.

1 2

Ong

oing

inve

stm

ent p

rom

otio

n to

geth

er w

ith o

ther

stak

ehol

ders

Imp

rove

acc

ess p

oint

for p

oten

tial

inve

stor

s / in

vest

iga

te o

ne st

op sh

op,

e.g.

like

BED

IA in

Bot

swa

na

J J

Y N

0 15

0

XXX

XXX

XXX

XXX

XXX

XXX

E3

Impr

oved

Qua

lity

of th

e En

viro

nmen

t

No

of m

ines

insp

ecte

d

-C

lose

d m

ines

-

Act

ive

min

es

Porti

on o

f ins

pec

tion

reco

mm

enda

tions

impl

emen

ted

N

o of

min

e sit

es re

habi

lita

ted

%

of E

IAs d

one

at p

roje

cts

No

of id

entif

ied

envi

ronm

enta

l d

egra

da

tion

occu

rrenc

es

No

p.a

. N

o p

.a.

95%

1

p.a

. 10

0%

Zero

1 2 3 4

Upgr

ade

& re

view

exis

ting

inve

ntor

y &

prio

ritise

act

ions

En

sure

reha

bilit

atio

n of

old

min

ing

sites

thro

ugh

liaiso

n w

ith M

ET

Imp

rove

insp

ectio

n/m

onito

ring

of

expl

ora

tion

act

iviti

es a

s wel

l as n

ew

min

ing

act

iviti

es to

ens

ure

ad

here

nce

to E

IA a

nd E

MP

Giv

e en

viro

nmen

tal a

dvi

ce to

smal

l sc

ale

min

ers

J J J J

Y Y Y Y

100

5,00

0

500 0

XXX

XXX X X

XX

X X X

XX

X X X

XX

X X X

XX

X X X

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 35

No O

bjec

tive

PI (S

MA

RT it

o C

TQQ

) Ta

rget

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

E4

Educ

ated

Com

mun

ities

w

ith re

gard

to th

e G

eo-

Envi

ronm

ent,

Min

ing

& En

ergy

No

of m

edia

ca

mp

aign

s/

ap

pea

ranc

es, i

ncl.

NBC

b

road

cast

s, ne

wsp

aper

s N

o of

peo

ple

educ

ate

d th

roug

h ed

uca

tion

cam

paig

ns

No

of sp

ecia

l eve

nts,

e.g.

op

en

da

ys /

ca

reer

fairs

/ sc

hool

in

form

atio

n se

ssio

ns

No

of p

eopl

e w

ho v

isite

d th

e m

useu

m /

lib

rary

/ sh

ow b

ooth

No

/ Q

uarte

r N

o /

Qua

rter

No

/ Q

uarte

r N

o /

Qua

rter

1 2 3

Des

ign

tailo

r-ma

de e

duc

atio

nal

ma

teria

ls on

all

asp

ects

of E

arth

Sc

ienc

es

Educ

ate

targ

et c

omm

uniti

es

Arra

nge

spec

ial e

vent

s

S S S

Y Y Y

0 0 0

X XX

X X

X XX

X X

X XX

X X

X XX

X X

X XX

X X

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 36

4

. DM

Man

agem

ent P

lan

No

Obj

ectiv

e PI

(SM

ART

ito

CTQ

Q)

Targ

et

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

B1

Impr

oved

&

Harm

onise

d Le

gisla

tion

& Re

gula

tions

New

Min

eral

s Act

pro

mul

gate

d;

Min

eral

s Boa

rd e

stab

lishe

d

Min

eral

s Dev

elop

men

t Fun

d

revi

ewed

M

inin

g C

harte

r com

plet

ed

Roya

lties

impl

emen

ted

Mid

200

7

Mid

200

7

Mid

200

7

Dec

200

6

1 2 3 4 5 6

Det

erm

ine

the

conf

licts

/gap

s in

min

ing

legi

slatio

n A

men

d th

e id

entif

ied

pie

ces o

f le

gisla

tion

and

regu

latio

ns

Dev

elop

Min

ing

Cha

rter w

ith a

ll st

ake

hold

ers

Liaise

with

CoM

& m

inin

g co

mpa

nies

on

roya

lty is

sues

Re

view

Min

eral

Dev

elop

men

t Fun

d w

ith D

DA

and

DG

S Es

tabl

ish M

iner

al B

oard

J J J J J J

Y N Y Y Y N

0 0 0 0 0 0

X XX

X XX

X XX

X

XX

X XX

X

X

XX

X

B3

Redu

ced

Red

Tape

Red

uctio

n of

com

plai

nts f

rom

in

tern

al a

nd e

xter

nal

sta

keho

lder

s Si

mpl

ified

pro

cess

es

50%

red

uctio

n p

.a.

M

id 2

007

1

Sim

plify

pro

cess

es /

BPR

/ R

educ

e p

ape

r wor

k to

stre

am

line

revi

ew

and

ap

pro

val p

roce

sses

J

N

100

XXX

C2/

1 Im

prov

ed L

icen

sing

in

Min

ing

Sect

or

Elim

ina

ted

Ba

cklo

g Re

duc

ed p

roce

ssin

g tim

e of

lic

ense

s/m

inin

g cl

aim

s N

o. o

f Min

ing

Cla

ims I

ssue

d

No.

of M

iner

al L

icen

ses I

ssue

d

No.

of M

inin

g C

laim

s can

celle

d N

o. o

f Min

eral

Lic

ense

s ca

ncel

led

M

axim

um a

pp

rova

l tim

e fo

r ac

cess

ory

wor

ks

Ma

ximum

tim

e fo

r iss

uing

of

clai

ms r

egist

ratio

ns a

fter

envi

ronm

enta

l cle

ara

nce

Dec

06

12

0 d

in 2

006

80 d

in 2

007

60 d

in 2

008

N

o /

Qua

rter

No

/ Q

uarte

r

No

/ Q

uarte

r N

o /

Qua

rter

60

d in

200

6 45

d in

200

7

1 w

eek

1 2

Impl

emen

t bus

ines

s pro

cess

im

pro

vem

ent b

y lia

ising

with

oth

er

dire

ctor

ate

s, O

/M/A

s & In

dust

ry

Upgr

ade

CTM

S, in

cl. H

W a

nd S

W

J S

N Y

0 60

0

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 37

No O

bjec

tive

PI (S

MA

RT it

o C

TQQ

) Ta

rget

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

C2/

2 Im

prov

ed R

egul

atio

n of

Exp

lora

tion

& M

inin

g

New

exp

lora

tion

& p

rod

uctio

n lic

ense

s -

EPL

-M

L Re

ceiv

ed Q

uarte

rly &

Ann

ual

Rep

orts

from

all

Min

ing

Com

pani

es

25

/ Q

uarte

r 1

/ Q

uarte

r

100%

1 2

Incr

ease

num

ber o

f min

e vi

sits &

co

nsul

tatio

ns o

n m

inin

g op

era

tions

A

ssist

to in

crea

se th

e nu

mbe

r of

expl

ora

tion

& m

inin

g a

ctiv

ities

S J

Y Y

2,50

0 0

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

C2/

3

Impr

oved

Pro

tect

ion,

Sa

fety

& S

ecur

ity

thro

ugh

Regu

latio

ns

and

Enfo

rcem

ent

H&S

Regu

latio

ns g

azet

ted

&

alig

ned

to n

ew la

bou

r act

&

impl

emen

ted

, inc

l. M

arin

e M

axim

um ti

me

for i

ssui

ng E

xpor

t Pe

rmits

N

o of

min

e vi

sits t

o in

spec

t ex

plor

atio

n an

d p

rod

uctio

n.

Dec

200

7

3 d

ays

Ea

ch m

ine

ever

y 3

mon

ths.

1 2

DM

com

mitt

ee w

ork

with

CO

M to

d

raft

H&S

Regu

latio

ns, e

spec

ially

m

arin

e Im

pro

ve re

liabi

lity

of m

inin

g p

rodu

ctio

n-re

late

d st

atis

tics a

nd

obta

in re

gula

rly

J J

N Y

25

0 0

XX

X XX

X

XX

X

XX

X

XX

X

XX

X

C2/

4 In

crea

sed

Bene

ficia

tion

& Va

lue

Add

ition

in M

inin

g

No

of v

alue

ad

ditio

n op

era

tions

A

mou

nt o

f val

ue a

ddi

tion

C

ontri

but

ion

of d

owns

trea

m

pro

cess

ing

/ to

tal i

ndus

try sa

les

N

o p

.a.

N

$ p

.a.

10

% b

y 20

07

1

Ong

oing

pro

mot

ion

of v

alue

-a

ddi

tion,

incl

. inc

entiv

es a

nd

alig

ning

land

, inf

rast

ruct

ure,

fina

nce

& m

ento

rshi

p

J

Y

80

0 XX

X XX

X XX

X XX

X XX

X

C2/

5 Im

prov

ed C

ontro

l of

Impo

rts a

nd E

xpor

ts

No

of im

port

/exp

ort p

erm

its

Ma

ximum

dur

atio

n of

per

mit

pro

cess

ing

No

/ Q

uarte

r

2 d

ays

1

Regu

lar c

onta

ct w

ith m

inin

g co

mpa

nies

and

col

lect

ion

of

Qua

rterly

Rep

orts

on

min

ing

imp

orts

a

nd e

xpor

ts

J Y

0 XX

X XX

X XX

X XX

X XX

X

E2

Redu

ced

no o

f A

ccid

ents

in b

oth

the

Min

ing

& En

ergy

Se

ctor

s

No

of a

ccid

ents

in M

inin

g -

Tota

l rep

orte

d

-N

o ca

sual

ties

Insp

ecte

d c

ompl

ianc

e to

Hea

lth

and

Sa

fety

req

uire

men

ts

N

o /

Qua

rter

No

/ Q

uarte

r

90%

in 2

007

1 2

Recr

uitm

ent a

nd d

eplo

ymen

t of

cap

able

insp

ecto

rs Pa

rtici

patio

n in

the

min

es sa

fety

p

rogr

am a

nd a

ctiv

ities

.

S S

Y N

0 0

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 38

5.

DDA

Man

agem

ent P

lan

No

Obj

ectiv

e PI

(SM

ART

ito

CTQ

Q)

Targ

et

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

C2/

1 Im

prov

ed L

icen

sing

in

Min

ing

Sect

or

Proc

essin

g tim

e fo

r lic

ense

s &

per

mits

(e.g

. dea

lers

, cut

ters

, too

l m

aki

ng &

rese

arc

h)

-Lic

ense

s -

Perm

its

Intro

duce

cus

tom

er c

ompl

aint

s ha

ndlin

g th

roug

h w

ebsit

e a

nd

tele

pho

ne

Red

uctio

n of

com

plai

nts

No

of li

cens

es is

sued

M

axim

um ti

me

to a

pp

rove

b

usin

ess p

rem

ises,

cont

ract

ors &

m

inin

g ve

ssel

s Es

tabl

ished

Da

taba

se

30

day

s 7

day

s

Ma

rch

07

50

% p

.a.

N

o /

Qua

rter

30

day

s

June

07

1 2

Imp

rove

licen

se a

nd p

erm

it iss

uing

p

roce

sses

by

liaisi

ng w

ith o

ther

di

rect

ora

tes a

nd M

inist

ries,

e.g.

H

ome

Affa

irs

Esta

blish

Da

taba

se In

form

atio

n M

ana

gem

ent S

yste

m fo

r DD

A

S O

Y Y

0 70

0

X XX

X

X

X

X

X

C2/

3

Impr

oved

Pro

tect

ion,

Sa

fety

& S

ecur

ity

thro

ugh

Regu

latio

ns

and

Enfo

rcem

ent

Qua

rterly

mee

tings

with

D

iam

ond

Boa

rd

Satis

fied

min

imum

req

uire

men

t of

Kim

berle

y Pr

oces

s A

ve ti

me

to is

sue

perm

its

(a) t

o (k

) A

ve n

o of

visi

ts p

er m

ine

Ma

x tie

for D

iam

ond

Sec

urity

Pl

an

app

rova

l acc

ordi

ng to

M

anua

l Up

datin

g of

dia

mon

d d

ata

mgt

sy

stem

afte

r rec

eip

t of d

ata

, e.g

. p

rodu

ctio

n fig

ures

100%

100%

3 d

ays i

n 20

07

3

/ Q

uarte

r

90 d

ays

14

day

s

1 2

Imp

rove

regu

latio

ns th

roug

h on

goin

g co

nsul

tatio

ns w

ith

Dia

mon

d Bo

ard

and

oth

ers

Imp

rove

insp

ectio

ns a

nd

enfo

rcem

ent b

y m

eans

of s

uffic

ient

st

aff

and

logi

stic

s for

regu

lar v

isits

S S

Y Y

0 5,

000

X XX

X

X XX

X

X XX

X

X XX

X

X XX

X

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 39

No O

bjec

tive

PI (S

MA

RT it

o C

TQQ

) Ta

rget

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

C2/

4 In

crea

sed

Bene

ficia

tion

& Va

lue

Add

ition

in M

inin

g

No

of b

enef

icia

tion

oper

atio

ns

Val

ue o

f ben

efic

iatio

n /

net

va

lue

adde

d

Con

trib

utio

n of

dow

nstre

am

p

roce

ssin

g N

ew d

iam

ond

cutti

ng &

pol

ishin

g fa

ctor

y es

tabl

ished

No

N$

p.a

.

12%

by

2009

2x b

y 20

06

1 2

Ong

oing

pro

mot

ion

Faci

lita

te d

iam

ond

cutti

ng &

p

olish

ing

S S

Y Y

0 0

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

C2/

5 Im

prov

ed C

ontro

l of

Impo

rts a

nd E

xpor

ts

No

of im

port

/exp

ort p

erm

its

Dur

atio

n of

per

mit

pro

cess

ing

No

/ Q

uarte

r

2 d

ays

1 2

Mon

itor a

ll di

amon

d v

alua

tions

and

se

alin

g p

roce

dure

s Ev

alua

te a

ll su

bmiss

ions

S S

Y Y

0 0

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 40

6. D

E M

anag

emen

t Pla

n

No

Obj

ectiv

e PI

(SM

ART

ito

CTQ

Q)

Targ

et

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

B1

Impr

oved

&

Harm

onise

d Le

gisla

tion

& Re

gula

tions

Am

end

ed le

gisla

tion

sub

mitt

ed

to A

ttorn

ey-G

ener

al

-Pe

trole

um A

ct (E

&P)

-

Petro

leum

Ta

xatio

n A

ct

-M

odel

Pet

role

um A

gree

men

t -

Ga

s Bill

Dev

elop

ed E

nerg

y C

harte

r

D

ec 2

007

June

200

7 M

arc

h 20

07

Dec

200

6

Dec

200

7

1 2 3

Det

erm

ine

the

conf

licts

/gap

s A

men

d id

entif

ied

pie

ces o

f le

gisla

tion

and

regu

latio

ns

Con

trib

ute

to e

nerg

y ch

arte

rs-

dev

elop

men

t and

impl

emen

tatio

n

Y Y Y

Y Y Y

0 50

150

X XX

X XX

X

X

X

X

X

B3

Redu

ced

Red

Tape

Re

duc

tion

of n

o of

step

s N

o b

y m

id 2

007

1 Si

mpl

ify p

roce

sses

/ B

PR /

Red

uce

pa

per w

ork

to st

rea

mlin

e re

view

a

nd a

pp

rova

l pro

cess

es

Y N

10

0 XX

X

C3/

1 Im

prov

ed L

icen

sing

in

the

Ener

gy S

ecto

r

No

of p

etro

leum

lice

nses

iss

ues/

canc

elle

d

Ma

x lic

ense

pro

cess

ing

time

for

who

lesa

lers,

reta

ilers

, &

cons

umer

inst

alla

tion

Ma

x lic

ense

pro

cess

ing

time

for

pro

duct

ion,

exp

lora

tion,

&

reco

nnai

ssan

ce

No

/ Q

uarte

r

30 d

ays

60

day

s

1 Sp

eed

up lic

ense

pro

cess

ing

by

follo

win

g im

pro

ved

pro

cess

es

S Y

0 XX

X XX

X XX

X XX

X XX

X

C3/

2 Im

prov

ed R

egul

atio

n of

Exp

lora

tion

& Pr

oduc

tion

Esta

blish

ed P

etro

leum

Age

ncy

/ C

omm

erci

al N

am

cor

Dec

200

8

1

Esta

blish

Pet

role

um A

genc

y /

Com

mer

cial

Na

mco

r

J N

20

0 XX

X XX

X

C3/

3 Im

prov

ed H

ealth

, Sa

fety

& E

nviro

nmen

t

Com

plia

nce

to H

ealth

& S

afet

y &

Env

ironm

enta

l Reg

ula

tions

for

pet

role

um a

nd e

lect

ricity

(EC

B)

as a

sses

sed

on

regu

lar v

isits

(inc

l IS

O 9

000)

100%

1

Regu

lar s

ite in

spec

tions

, rep

ortin

g a

nd im

pro

vem

ent a

ctio

ns w

here

ne

eded

J

Y 50

0 XX

X XX

X XX

X XX

X XX

X

C3/

4 M

ore

Use

of

Rene

wab

le E

nerg

y

No

of h

ouse

hold

s ser

ved

M

W g

ener

ate

d p

.a. t

hrou

gh:

-W

ind

pow

er

-Bi

oma

ss

-So

lar

-Bi

o Fu

els

% R

E of

tota

l ene

rgy

100

p.a

.

MW

p.a

. kJ

p.a

. M

W p

.a.

kJ p

.a.

5%

in 2

008

1 2

Dev

elop

off-

grid

ma

ster

pla

n Pr

omot

e re

new

able

ene

rgy

in W

ind

pow

er; B

iom

ass

; Sol

ar &

Bio

Fue

ls b

y m

eans

of c

are

er fa

irs, a

wa

rene

ss

cam

paig

ns, t

rade

show

s, et

c.

J J

Y Y

50

1,50

0

XX

X X

X

X

X

X

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 41

No O

bjec

tive

PI (S

MA

RT it

o C

TQQ

) Ta

rget

No

Initi

ativ

e N

ame

SJO

Exist

Tota

l Es

t Cos

t Yr

1 Yr

2 Yr

3 Yr

4 Yr

5

C3/

5

Incr

ease

d En

ergy

G

ener

atio

n, S

trate

gic

Stor

age

& En

ergy

Ex

port

Ad

diti

onal

gen

era

ted

pow

er

% o

f tim

e st

rate

gic

rese

rve

is w

ithin

pre

ferre

d st

ock

limit

Red

uced

ele

ctric

ity im

por

t In

crea

sed

elec

trici

ty e

xpor

ted

Ex

cess

pow

er e

xpor

ted

1200

MW

by

‘10

1700

MW

by

‘15

100%

MW

/ Q

uarte

r

MW

/ Q

uarte

r

MW

/ Q

uarte

r

1 2 3

Con

stru

ct K

udu

Ga

s Pow

er P

lant

C

onst

ruct

Bai

nes H

ydro

Pow

er P

lant

C

onst

ruct

ion

of a

dditi

onal

stra

tegi

c st

ora

ge fa

cilit

ies

O O O

N N N

0 0 0

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XX

X

XX

X

C3/

6 St

reng

then

ed

Tran

smiss

ion

Net

wor

k

Leng

th o

f net

wor

k Im

pro

ved

pow

er c

apa

city

C

ompl

eted

Ca

priv

i - T

sum

eb

Com

plet

ed H

wan

ge -

Cap

rivi

Km

/ Q

uarte

r

MW

/ Q

uarte

r

Dec

200

8

Dec

201

0

1 2

Con

stru

ct C

ap

rivi-T

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10. Budgeting

The initiatives, as described in the tables of the previous section, require resources – human, structural and financial resources.

The total cost estimates in the LFM are indicated in thousands of N$ (000’s) and is the total cost for the 5 year period. If the allocation is evenly distributed, the annual cost is the total divided by 5.

To ensure a realistic BSC, these resources should be available. It is also important to link this required budget with the Medium Term Plan (MTP) and Performance and Effective Management Programme (PEMP) data.

The total required funds to realise all strategic initiatives of the BSC over the five year period is N$39,671,000. Only approximately 20 percent of this amount is made provision for in the budget. Hence, 80 percent of these funds (31,736,800) would need to be sourced to realise the strategic imperative of the MME Strategic Plan. Note that these are just cost estimates and will have to be verified in future.

The annual budget allocations per SFA and Unit respectively are shown in the following two diagrams.

The total annual costs of all the strategic initiatives are as follows:

Unit Total 06/07 07/08 08/09 09/10 10/11

PS 4,050 1,510 640 640 630 630

DAF 7,910 1,862 1,512 1,512 1,512 1,512

DGS 11,910 2,432 2,432 2,382 2,332 2,332

DDA 5,700 1,700 1,000 1,000 1,000 1,000

DM 4,250 1,310 660 960 660 660

DE 5,851 1,750 975 1,042 1,042 1,042

TOTAL 39,671 10,564 7,219 7,536 7,176 7,176

* Note: Rural Electrification of N$125 million excluded from DE


Total MME Budget 2007-2011

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Years

Am

ou

nt

[N$

00

0]

DE 5,851 1,750 975 1,042 1,042 1,042

DM 4,250 1,310 660 960 660 660

DDA 5,700 1,700 1,000 1,000 1,000 1,000

DGS 11,910 2,432 2,432 2,382 2,332 2,332

DAF 7,910 1,862 1,512 1,512 1,512 1,512

PS 4,050 1,510 640 640 630 630

Total 06/07 07/08 08/09 09/10 10/11


PS

10%

DAF

20%

DGS

30%

DDA

14%

DM

11%

DE

15%

Annual Budget Requirement

-

2,000

4,000

6,000

8,000

10,000

12,000

Years

Am

ou

nts

[N

$ 0

00

]

Series1 10,564 7,219 7,536 7,176 7,176

06/07 07/08 08/09 09/10 10/11


11. Individual Performance Agreements (PA’S) The individual PAs are based on the Unit Scorecards of the previous section.

The Head of the Unit is always accountable for all objectives, measures and initiatives in his/her Unit.

Responsibilities for initiatives are assigned to individuals. The number of initiatives per person is depicted in the following figure. Note that some initiatives are much bigger than others. This is only an indication of workload based on the number of strategic initiatives responsible in the five year period of this plan.

11.1. Methodology of Cascading to PA’s The process of cascading the Corporate Scorecard to relevant and appropriate Unit Scorecards was illustrated during the process above. The same principles discussed in terms of the fundamental importance of cascading the Corporate Scorecard (Ministry) to Unit (Directorate) Scorecards are also relevant in ultimately cascading functional responsibilities to individual Performance Agreements (PA’s). Therefore, the Corporate Scorecard is cascaded to Unit Scorecards, which in turn is now cascaded to individual PA’s. You will recall that all performance indicators and initiatives within the Unit Scorecard were assigned to specific unit team members within each functional Unit. The idea is now to extrapolate each relevant performance indicator and initiative relevant to a specific individual from the Unit scorecard and include it into a specific PA for that individual.

It should now be emphasised that the cascading process should positively impact performance, seeing that it is now expected from each and every individual to achieve his/her assigned individual responsibilities, which in turn should culminate in the relevant department – in which that individual is a team member – to achieve its objectives, which in turn should lead to the objective being achieved on Corporate level. This means that the cascading of identified strategic responsibilities from Corporate level to Unit level through to individual level has everything to do with effectively managing performance. Therefore, it now becomes important for managers to assign specific responsibilities to specific individuals within his/her business unit as cascaded from the Corporate Scorecard and to measure achievement on a continuous basis. This process is commonly referred to as the Performance Management Process (PMS).

The PMS is therefore of fundamental importance to the successful inculcation of a Performance Culture at the Ministry of Mines and Energy and therefore special energy and effort must be expounded in an effort to measure the “right things” – that which one measures, is what gets done! It is important to emphasise that due to the fact that performance management is a process, that the success of it does not hinge on the complexity and scientific design of the system, but rather whether you follow due process when completing the performance agreement and/or review process, i.e. do you speak to your team members when you either agree the content and/or complete the performance review and/or assessment?; do you mutually agree on the final rating?; does the team member know what his development areas are on completion of the review?, etc.

Therefore, the success of PMS is based on effective inter-personal communication while being fair, consistent and transparent in the way you agree on a PA or review a team member’s performance. It is therefore important to emphasise that when you forward your final ratings to the Finance and Administration Directorate, that it should be representative of a process which you followed in your business unit, i.e. did you have a


review discussion with your team members?; was the final rating mutually agreed upon?; does the team member know what his / her final rating is?, etc. That is what the Finance and Administration Directorate is really interested in (did you follow due process).

The value of PMS is that you are speaking to your team members, you are providing team members with continuous performance feedback, they know where they stand with you, they understand whether they are contributing to the business unit or not, they understand what would be the consequences of continuous non-performance, they understand what would be the benefits of consistent good performance, and you mutually agree how to address development needs, amongst other things!

A fundamental principle of Performance Management is that the must be owned by line management due to the obvious benefits of the process: • Business performance is enhanced at organisational, operational, team and

individual level.

• Employees have a sense of common purpose and clarity on the contribution required.

• Individual effort is aligned with business requirements.

• Contributing employees are retained because they want to work for an organisation where performance matters.

• Support structures, including development activities, are designed to address the individual performance needs of employees.

• Rewards are equitable and recognise individual contributions to the achievement of business objectives.

It must be categorically stated that ownership and responsibility for your business unit’s PA’s, the content thereof as well as the final reviews / measurements, vests in the hands of the business unit (line management) and not with the Finance and Administration Directorate. The latter unit will only facilitate the process and provides continuous advice / support.


11.2 Performance Management System (PMS) The Office of the Prime Minister developed the PMS in association with development partners. The PMS will be rolled out to all O/M/A’s over the next five (5) years during a staggered approach. The PMS consists of 15 Modules:

The Ministry of Mines and Energy will be trained on all 15 Modules with the expectation that the Ministry should achieve various milestones. Module 5 in particular deals with cascading strategic measures to Performance Agreements. Therefore, the Ministry would use the prescribed performance agreement template and processes to develop individual performance agreements and to follow due process and monitoring, reviewing, assessing and verifying individual performance. The MME is encouraged to approach the OPM to inform them that the MME strategic plan has been completed and that the MME would wish to be one of the first Ministries to engage the 15 PMS Module Training Process.

PERFORMANCE AGREEMENT

Performance Recognition

Module 13

Managing Under-Performance

Module 9

Staff Management

Module 8

Team Management

Module 7

Self Management

Module 6

MANAGING PERFORMANCE

HR Plans, Job Descriptions,

Competency Profiling, HR Development Plans

Module 4

Strategic Planning, Management Plans,

Structure review

Module 3

PERFORMANCE PLANNING

Performance Agreements,Personal Development

Plans

Module 5

Performance Management Committee

Module 14

Performance Verification

Module 12

Assessment Appeals

Module 11

360 Degree Feedback

Module 15

Performance Assessment

Module 10

PERFORMANCE ASSESMENT

Module 2Facilitating Change

Module 1PMS Overview


12. BSC Implementation Procedures

This section describes the implementation procedures of the BSC in MME. These steps are provided to successfully implement the BSC throughout the MME .

The BSC consists of the following:

• Corporate scorecard;

• Unit scorecards;

• Performance contracts/agreements

12.1. Critical Success Factors (CSFs) The Balanced Scorecard Collaborative states the following figures: • 95% of a typical workforce does not understand its organization’s strategy • 90% of organizations fail to execute their strategies successfully • 86% of executive teams spend less than one hour per month discussing strategy • 70% of organizations do not link middle management incentives to strategy • 60% of organizations do not link strategy to budgeting

What can MME do to ensure success with the implementation of its strategy / BSC? CSFs for successful BSC implementation are presented below for regular consideration:

1. Understanding and buy-in of the BSC by management;

2. Sufficient budget to support identified strategic initiatives;

3. Dedicated staff and time for the capturing and updating the corporate and unit scorecards;

4. Effective communication of the strategy and BSC to all stakeholders;

5. Regular measuring/monitoring of all initiatives and PIs;

6. Updating of the BSC when needed (objectives, PI’s, Targets, Initiatives, Responsibilities, etc.);

7. Including/integrating the BSC in the agenda of every management meeting;

8. Regular reporting (preferably monthly) of corporate and unit performance;

9. Supporting information system to support the management of the BSC;

10. Verification of the alignment between the PAs, unit scorecards and the corporate BSC.

The BSC alters the way in which an organisation does it business. The BSC should be valued and used as the core document making and keeping it a strategy focussed organisation. These CSFs should be considered to ensure the BSC benefits are being realised.


12.2 Step-by-Step Procedure The procedure for implementing/managing the BSC is herewith described in a step-by-step format.

Step 1: Communicate the MME corporate strategy and scorecard to all stakeholders.

• Employees

• Board members

• Line Ministries, e.g. NRSC, MWTC, etc.

• The general public

Perhaps the single most important success factor in the process of achieving the various MME Scorecards is the ability of management to communicate the strategic intent and imperatives across the various levels in the: horizontally to various team members and across business units where synergy is imperative; vertically across the various levels within the; diagonally across all stakeholders forums and most significantly; to continuously communicate changes in the various Scorecards and strategic imperatives to ensure that all stakeholders are always aware of the current strategic direction of the MME .

Step 2: Understand your unit’s objectives.

• Ensure that all units clearly understand for which objectives they are accountable and responsible;

• Comprehend the linkage between the relevant units’ Scorecard objectives and that of the overall MME Corporate Scorecard and its relevance in terms of core business;

• Understand how the unit structure supports the achievement of the relevant unit’s Scorecard objectives;

• Understand how the units’ workflow is designed to ensure the achievement of the various units’ Scorecard objectives;

• Understand the shared responsibility of certain objectives across various functional units and the inter-relationship in terms of objective achievement through synergy and continuous inter-unit consultation.

The respective Heads of Units should arrange an initial meeting with their respective units and explain the relevant units’ Scorecards in terms of strategic intent and operational significance. Enough time should be allowed for the relevant team members to ask clarifying question in terms of the metrics, targets and initiatives as well as the required resources. The primary purpose of these introductory meetings should be to establish a common platform for strategy clarification and to gain commitment toward the execution of business unit specific initiatives.


Step 3: Understand your unit’s PI and Targets for each objective.

• Understand the ‘cause-and-effect’ in instances where business units achieves the various PI’s and targets and also in instances where the PI’s and targets are not achieved;

• Understand the metric units (i.e. % of.., number of…, N$ of.., etc.) for each PI;

• Understand the purpose of defining the correct metrics for each relevant objective and the source documents for obtaining metric information, especially on the PI’s;

• Understand the fundamental importance for each target to be achieved for each PI.

It is essential that team members comprehend the importance of operational structures in the process of ensuring that each PI and target can in actual fact be measured and that it does not result in an additional administrative burden that could potentially impact a focus of team members on core business. Therefore, all team members should understand the practicality of each PI and the importance of being able to monitor and assess on a continuous basis whether the PI’s and targets are in actual fact being achieved.

Step 4: Be clear on accountabilities for each objective and its PIs and Measurements.

• Understand the various detailed metrics associated with each objective per unit and who the accountable persons are for each metric;

• Accountable persons should be absolutely clear on what it exactly means to be accountable for a metric;

• Accountable persons should understand the operational and strategic impact for achievement and non-achievement of metrics and also be sensitised to the business rewards for achieving metrics;

• Accountable persons should be equipped with the necessary human-, capital-, infrastructural- and financial resources to be able to achieve the various metrics for which they are responsible.

• In most instances the respective line managers are accountable for the metrics within their respective units.

The BSC is fundamentally based on the premise that business success should be shared across all functional Units and that the various metrics should be highly defined, specific and someone be made responsible and accountable for ensuring metric achievement. Therefore, any sound BSC should be very specific in terms of who will be held accountable for metric achievement.

Step 5: Be clear on responsibilities for measurements of each PI.

Step 4 clearly indicated the importance for allocating specific accountabilities for each objective and associated metric. It was also stated that line management in most instances are accountable for unit objectives and metrics. It should however be stated that line management – being ultimately accountable for unit objectives and metrics – should make specific team members within his/her unit responsible for the continuous measurement of relevant functional PI’s. These responsible team members should ensure that PI measurement is effective and efficient which should lead to continuous remedies being instituted in instances on non-achievement trend identification. The metric specific responsible person should manage the relevant PI on a daily basis to ensure metric achievement.


Step 6: Be clear on responsibilities for each initiative.

• Projects/initiatives associated with each PI are also a significant success factor in ensuring BSC achievement. It is commonly acknowledged that the projects/initiatives indicated for each PI and the degree to which these projects/initiatives are successfully achieved - are the vehicles through which BSC objectives are achieved;

• It is therefore important to make specific individuals responsible for specific initiatives and to also equip them with the tools and resources to effectively manage the relevant project/initiative;

• Understand the resource requirements, actual resource availability and the dynamics involved in ensuring that initiatives are continuously resourced in order to meet the required objectives within the units.

Step 7: Ensure good project management.

• The BSC Committee will be the forum through which the MME BSC implementation will be monitored and hence this forum will retain the mandate to recommend process improvements in support of the successful achievement of the various Scorecards, however;

• The MME should make one senior official responsible for leading the BSC project (a BSC Champion, if you will). This official will have the mandate to call BSC meetings and to lead the agenda of the BSC Committee;

• The MME via the BSC Champion and BSC Committee should ensure that sound principles of due diligence is adhered to in the process of managing the various milestones/time lines as indicated within the Corporate Scorecard, Unit Scorecards and should ensure that the BSC is a dynamic document which is updated on a frequent basis;

• It is suggested that Corporate BSC and Unit BSC Meetings are determined and fixed on the annual calendar and adhered to at all time. For instance: the Corporate BSC could be evaluated on a monthly basis by the CEO, while the unit BSC’s could be managed on a weekly or fortnightly basis by the respective Heads of Units;

• It is recommended that the MME considers retaining the services of an external consultant to champion the process and to ensure sustainability of the inculcation of a new strategic methodology.

Step 8: Report back.

• Understand the required reporting format and frequency;

• Understand the various reporting forums and the accountable persons for frequent reporting on specific metrics;

• Understand that the units’ Scorecards are dynamic documents which form an integral part of the management of the various units and hence needs to be updated on a regular basis as and when targets and initiatives are achieved as well as when changes are made.


Step 9: Continuous performance improvement.

The BSC methodology and process is fundamentally based on a performance management philosophy, which seeks to ensure that overall organisational performance is enhanced through specific actions and metrics by (a) the organisation, (b) the respective business units and (c) individuals’ contribution to the achievement of the various objectives, measures, targets and initiatives. The foundation of the BSC is founded on international, industry and national norms, benchmarks and standards. The purpose of the BSC is to establish business unique benchmarks for each business process, PI, target and initiative and consequently to seek continuous improvement on these standards. Hence, the MME will continuously drive efficiencies and therefore increase turn-around times, operational effectiveness, inter alia. For instance, if the MME standard for finalising a claim is 24 working days, then it should seek ways of improving on this standard. It could well be that they improve this standard by way of increased synergy and clear work processes and competent employees to 18 working days. If this is achieved, then the benchmark is set for trying to improve on this new standard. And so the business will continuously seek to improve on its own standards, and benchmarks.

It is also widely acknowledged that business is only able to reinvent itself and increase its efficiencies if their people are competent (knowledge, skills and attitude). However, competency of employees does not guarantee business success. Something more is needed! It comes down to the ability of the organisation to measure each and every individual’s contribution to the organisation and making each and every individual accountable/responsible for specific strategic, operational, technical and functional objectives and to measure the successful achievement of these objectives through specific metrics. Individuals that achieve and exceed their individual objectives are contributing to the success of the MME and should therefore be rewarded for their performance. This will result in increased motivational levels, which in turn should yield a higher return on performance investment during the next performance cycle. However, it should be noted that those team members that do not achieve their performance agreements should be equipped and trained to be able to meet the required standards.

It should now become clear that the ability of the MME to achieve its Corporate BSC, Unit BSC’s and individual PA’s are fundamentally based on the ability of management to lead people towards achieving the strategic imperatives. It also hinges on the ability of management to define standards and benchmarks and to clearly define the performance expectations for each individual going forward. This will inevitably result in a performance based culture at the MME, which will yield a high return on investment.


13. BSC Automation In this section examples of information systems are provided with an indication of costs and benefits.

13.1. Automation Benefits Automation is a powerful enabler for BSC implementation - for analyses, evaluation and interpretation; to gain management insights; to learn; to make better decisions.

Automation allows data integration, facilitates collaboration & communication, can save time and make the BSC simpler & more user friendly.

Remember that the BSC is not an IT project.

Software is only an enabler and enhancer!

Furthermore, automation can help to:

• Ensure true Accountability & Ownership: Owners are assigned for every objective, measure and initiative; Alerts managers of underperformance and of late data; Provides one-click email to owners

• Drive Improvement Actions / Projects: Prompts owners to issue explanations for underperformance - “why are measures underperforming?”; Guides owners to create improvement actions - “what are we doing to fix it?”; Alerts owners and managers to late initiative milestones - “we’re off track on our improvement initiative”

• Deploy Translated Strategy: Cascade & Communicate to lowest levels and across business lines on Scorecards for every business unit

• Deliver / Report the Right Data: Data integration tools for external feeds; Manual capture with alerts when due; Data entry templates ensure consistency; Delivers right data at right time; often with OLAP drill-down facilities.

Automation can be done in three main ways, viz.: 1. Excel Spreadsheets

2. Internet/web-based applications (through an ASP)

3. Intranet-based applications (software loaded on the MME server)


13.2. Costs and Benefits

A brief comparison of these three categories of automation is given in the following table.

1. Excel Spreadsheets 2. Web-based applications through ASP

3. Software purchased and loaded on server

Bene

fits

Low cost Easy to understand and use

Can form basis for other options

Low cost Immediately available Automatically develop

performance reports with drill down functions

Ownership Loaded on intranet

High speed Automatically develop

performance reports with drill down functions

Online support Regular upgrades

Always ensuring best of class technology

Disa

dva

ntag

es

Take time to develop Require special skills to

develop Require time and effort to

manually update and report

Slow speed due to lack of

broadband, e.g. ADSL Lack of ownership

Dependent on external technology and support

High cost with annual licenses

Exam

ple

s

To be designed and developed according to

specific needs

MyBalancedScorecard.com

ActiveStrategy Scorecard &

Dashboard Edition; ActiveStrategy Deployment

Edition; ActiveStrategy Enterprise

Edition; PerformanceSoft pbViews

Refer to the BSC software examples in Annexure C.


13.3. Selection Criteria

The following 10 criteria could be used in selecting software:

1. Company/Product: Vendor info; products; prices – License fees plus maintenance fees plus training fees

2. Scalability: Added units; add database; communication

3. Flexibility & customization: Integrate with other applications; use for other reporting needs

4. Communication & Collaboration needs: Web enabled; Integrates with e-mail, SMS for automatic alerts; PM Functionality

5. Security and access control

6. Technical needs: Compatible with current IT infra; extract from existing data sources

7. User interface/Data presentation: Visualisation – text/tables/graphs/traffic lighting, especially Strategy maps with dynamic links to underlying data

8. Analysis needs: Simple or multidimensional drill down capabilities; statistical analysis; forecasting; simulation

9. Service requirements: Implementation support; partner with consulting companies; international service hotlines

10. Future development: Future developments; release frequency; future compatibility.

A table as shown below could then be used to score the various software products under consideration.

Score:Score:

11--1010Y/NY/N10. Future development10. Future development

11--1010Y/NY/N9. Service requirements9. Service requirements

11--1010Y/NY/N8. Analysis needs8. Analysis needs

11--1010Y/NY/N7. User interface7. User interface

11--1010Y/NY/N6. Technical needs6. Technical needs

11--1010Y/NY/N5. Security and access control5. Security and access control

11--1010Y/NY/N4. Communication & 4. Communication & Collaboration needsCollaboration needs

11--1010Y/NY/N3. Flexibility needs3. Flexibility needs

11--1010Y/NY/N2. Scalability needs2. Scalability needs

11--1010Y/NY/N1. Company / Product1. Company / Product

CCBBAAWeightWeightRequired?Required?CriteriaCriteria

Score:Score:

11--1010Y/NY/N10. Future development10. Future development

11--1010Y/NY/N9. Service requirements9. Service requirements

11--1010Y/NY/N8. Analysis needs8. Analysis needs

11--1010Y/NY/N7. User interface7. User interface

11--1010Y/NY/N6. Technical needs6. Technical needs

11--1010Y/NY/N5. Security and access control5. Security and access control

11--1010Y/NY/N4. Communication & 4. Communication & Collaboration needsCollaboration needs

11--1010Y/NY/N3. Flexibility needs3. Flexibility needs

11--1010Y/NY/N2. Scalability needs2. Scalability needs

11--1010Y/NY/N1. Company / Product1. Company / Product

CCBBAAWeightWeightRequired?Required?CriteriaCriteria


14. The Way Forward

It is recommended that MME take the following actions towards the successful implementation of the BSC: 1. Understand the content of this document and make the required improvements if

needed;

2. Request the OPM that the MME commence with the process of implementing the PMS by training senior management and staff on the 15 Modules;

3. Complete the individual performance contracts for all employees, based on the Unit Scorecards;

4. Choose an option for automation; it is recommended to initially use Excel spreadsheets for reporting progress with regard to Initiatives, PIs and Objectives per Unit.

5. Develop the format of the PI statements for automation;

6. Procure the services for the following:

• Development of PI Statements

• Development of Excel spreadsheets

• Support with data capturing, evaluation and reporting for say the first 6 or 12 months;

• Training of BSC staff in BSC implementation.


Annexure A: Example of a PI Statement

Before BSC implementation, the various PI Statements have to be developed in detail, supported by the chosen tool for automation, e.g. Excel spreadsheets.

In the example below, the PI statement for one of the PIs for Objective C4: ‘More efficient business process’ is given.

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 60

Ob

jec

tive

: C

4.

Mo

re e

ffic

ien

t b

usin

es

s p

roce

ss

es

PI n

o &

nam

e:

PI O

wn

er:

Mo

tiv

ati

on

/ D

es

cri

pti

on

:

Fo

rmu

la:

Data

so

urc

e:

Fre

qu

en

cy:

Qa

urt

erly

Un

it t

yp

e:

Num

ber

Po

lari

ty:

Lo

w v

alu

e is g

oo

dW

eig

ht:

Baselin

e:

Targ

et

rati

on

ale

:

Peri

od

:Q

2 2

006

Q3 2

006

Q4 2

006

Q1 2

007

Q2 2

007

Q3 2

007

Targ

ets

:80

65

55

45

35

23

Resu

lts:

80

72

64

Sta

tus:

Sta

tus

Exp

lan

ati

on

s /

Acti

on

s:

Cla

ims p

roce

ssin

g s

tep

sC

ounting the n

um

ber

of ste

ps

C4.a

. R

educe

d n

o o

f cla

ims p

rocessin

g s

teps

Ste

phen

A s

implif

ied

pro

ce

ss w

ill b

e b

ette

r u

nd

ers

too

d a

nd

will

save tim

e a

nd

cost

Q2 2

00

6 =

90

Init

iati

ve

s:

C4.1

. Im

ple

me

nt th

e v

arious p

roce

ss im

pro

ve

me

nts

C4.2

. E

sta

blis

h b

en

ch

ma

rks for

the

key p

roce

sses

Exam

ple o

f PI S

tate

men

t Ex

ampl

e of P

I Sta

tem

ent

Exam

ple o

f PI S

tate

men

t Ex

ampl

e of P

I Sta

tem

ent

C4.3

. Im

pro

ve

effic

ien

t use

of th

e C

MS

for

e-o

pe

ratio

ns

C4.4

. T

rain

sta

ff in

ne

w p

roce

sses

Q3 2

00

6 -

Sta

ff n

ee

ds to b

e tra

ine

d first

Q4 2

006 -

Sta

ff w

ill b

e tra

ined in D

ec 2

006; should

be o

n targ

et by Q

2 2007

25%

The 2

3 s

teps a

re b

ased o

n b

est pra

ctice a

s d

ocum

ente

d in the p

rocess r

eengin

eering r

eport

-

10

20

30

40

50

60

70

80

90

Q2 2

006

Q

3 2

006

Q4 2

006

Q1 2

007

Q2 2

007

Q3

200

7

No of steps

Ta

rge

ts:

Re

su

lts:


Annexure B: Example of an Initiative Statement

Before BSC implementation, the various Initiative Statements have to be developed, based on detailed initiative/project plans. The Project Management methodology as described in PMBOK of PMI is recommended.

Note that objective and its PIs and targets are achieved only through initiatives/projects. Projects are where the action is/where the resources are deployed and expended. It is therefore critical that each initiative is well initiated, planned, executed, controlled and closed by using the knowledge areas of Integration, Scope, Time, Cost, Quality, HR, Communication, Risk and Procurement Management.

Scope: What is included/excluded in implementing the PMS? Develop a work breakdown structure indicating project elements, stages and activities.

Time: What are the durations of these activities? What is their sequence? Develop a project schedule.

Cost: Based on the scope, schedule and resource requirements, what will be the cost? Develop a project budget per financial year.

Quality: How are we ensuring that the standards and service/product quality will be delivered? Develop a quality management plan.

Human Resources: Who are the people to fill the required project positions? Develop a HR Plan and build capacity.

Communications: What, how and how often will be communicated? Develop a project communication plan.

Risk: What are the risks involved in executing the project? What are their potential impacts and what should be our responses? Develop a risk management plan.

Procurement: Can we do all the work in the O/M/A or do we need to outsource some expertise or physical assets? Develop a procurement plan.

The example below is a presentation of a simple Initiative Statement – only measuring the time and cost of the project or initiative.

The example is taken from Objective C4: ‘More efficient business processes’. The Statement for Initiative C4.1: ‘Implement the various process improvements’ are presented on the following page.

Min

istry

of M

ines

and

Ene

rgy

Stra

tegi

c Pl

an fo

r 200

7/08

- 20

11/1

2 62

Ob

jec

tive

: C

4. M

ore

eff

icie

nt

bu

sin

es

s p

roc

es

se

s

Init

iati

ve n

o &

na

me:

Init

iati

ve O

wn

er:

S

tephen

Init

iati

ve d

es

cri

pti

on

:

Init

iati

ve o

bje

cti

ve:

Init

iati

ve p

rio

rity

:H

/ M

/ L

or

in %

Ov

era

ll s

tatu

s:

Main

ac

tiv

itie

sD

eliv

era

ble

sR

es

po

ns

ibilit

yO

the

r re

so

urc

es

Pla

nn

ed

da

teA

ctu

al d

ate

Fu

nd

s a

pp

rov

ed

Fu

nd

s s

pe

nt

Activity 1

Report

1P

ers

on A

31-J

ul-06

15-A

ug-0

65,0

00

6,0

00

Activity 2

Com

pute

rised 1

Pers

on A

Com

pute

r30-S

ep-0

615-O

ct-

06

15,0

00

20,0

00

Activity 3

Com

pute

rised 2

Pers

on B

31-O

ct-

06

15,0

00

Activity 4

Testing &

sig

n o

ffP

ers

on B

30-N

ov-0

65,0

00

Exam

ple o

f Ini

tiat

ive S

tate

men

tEx

ampl

e of I

niti

ativ

e Sta

tem

ent

Exam

ple o

f Ini

tiat

ive S

tate

men

tEx

ampl

e of I

niti

ativ

e Sta

tem

ent

C4.1

. Im

ple

ment th

e v

arious p

rocess im

pro

vem

ents

Alig

n C

MS

with m

apped

busin

ess p

rocesses/s

yste

ms. A

ll pro

cesses s

hould

be c

om

pute

rised w

ith fla

ggin

g functionalit

y ito

turn

aro

und

sta

ndard

s

To r

educe the n

um

ber

of ste

ps in the c

laim

s m

anagem

ent pro

cess; to

sim

plif

y a

nd s

peed u

p the p

rocess; to

save tim

e a

nd c

ost

Exp

lan

ati

on

s / A

cti

on

s:

End J

uly

2006 -

End A

ug 2

006 -

-

5,0

00

10

,00

0

15

,00

0

20

,00

0

25

,00

0

30

,00

0

35

,00

0

40

,00

0

45

,00

0

Jul-

06

Au

g-0

6S

ep

-06

Oct-

06

Nov-0

6T

ime

Accum Cost

P c

ost

A c

ost


Annexure C: Examples of BSC Software Examples of BSC software are:

1. ActiveStrategy 2. Hyperion 3. Oracle 4. PerformanceSoft 5. QPR 6. SAP 7. SAS

Example: ActiveStrategy - Refer to www.activestrategy.com

Refer the attached brochure.

Documents

Ministry of Mines and Energy · 2007-03-22 · Ministry of Mines and Energy Strategic Plan for 2007/08 - 2011/12 i FOREWORD By the Honourable Minister The Ministry of Mines and Energy