Contents

1 Background

2 Challenges

3 What are we doing

4 What has been achieved

5 Whats next

6 Questions
 Background
The Compensation Fund is faced with massive untenable challenges and
cannot maintain the status quo.

Issue Expected Outcomes

Expected Outcome
Current Situation

The Turn-around plan will ensure that all key business elements are addressed leading to a
transformed Compensation Fund and ultimately improve service delivery.
 Challenges
The CF has undertaken a diagnostic review of its operations and
identified key business challenges, requiring immediate focus to ensure
successful strategic execution enablement

Current Situation: Strategic Priorities Business Challenges

Claims Too many initiatives leading to

Improved payment of benefits to the overloading parts of the organisation
Processing and
beneficiaries of the Fund
Payments Inadequate business coordination and
integration
Revenue Poor project and schedule integration
Collection Improved revenue collection from
employers Poor issues and risks management due to
insufficient oversight
Operational Effective administration of the Funds Poorly aligned definition and
Efficiency operations achievement of systems optimisation
Misalignment with regards to performance
Rehabilitation Promote rehabilitation, re-integration and management and accountability
and Integration return to work of injured and diseased Low people engagement throughout the
workers agency
Turn-around fatigue
Inadequate capacity in critical Financial
management areas
Negative Audit outcomes
Challenges
Auditor General
Findings
Year
2008/09 DISCLAIMER

2009/10 QUALIFICATION

2010/11 QUALIFICATION

2011/12 QUALIFICATION

2012/13 DISCLAIMER

Auditor Generals Findings

Quality of No effective and efficient revenue management function exists as required
People Data
Skills & by PFMA;
Competence
The Fund did not take effective and appropriate steps to timeously collect
Financial all money due to the Fund;
Management
Leadership Unable to determine completeness and accuracy of revenue assessment;
Systems
Not all employers correctly assessed and billed;

Process
Unreliable information (missing banking details, lack of controls);
Penalties and Interest not calculated correctly;
Long outstanding debts not collected; and
Current and uncorrected misstatement in the Financials
What are we doing
Our approach is aimed at achieving the key CF value drivers and desired
outcomes
What we want to achieve? What are we doing?
Executive Management Alignment;
Singing from the same hymn sheet
Review and confirm appropriate governance; and
CF Executive Management members display a
Agree and communicate individual accountability through Programme
common understanding of the intent of the Strategy
Management
and Operating Model.

Projects aligned to Strategic Intent Plan, prioritise and schedule initiatives and resources to align with the
Projects that are more focused and aligned to CF Strategic Intent; and
strategic intent and Operating Model. Ensure non strategic or non-value delivering projects are scrapped

Develop clear revenue management strategy;

Improved Financial Management
Improve Revenue Collection
Ensure proper financial management controls
Clean Audits
Improved Claims and Beneficiary Management
Reduce Claims processing and payment backlog
Improve turn-around times
Reduce fraud and corruption
Develop financial management policies, procedures and standards;
ROE website;
Ensure staff are trained and skilled in the required areas; and
Address Auditor Generals findings including payroll audits
Finalise the backlog program;
Review and update business processes;
Implement the new RMA system;
Integration between claims management systems and financial
system;
Improve system controls .

Formal journey management

Develop detailed implementation plan and drive rigorous; execution of
Drive the Operating Model implementation;
change management; and
Ensure integrated and co-ordinated project; and
Promote immediate feedback and acceptance;
portfolio management, reporting and reviews.
 Governance Structure
A formalized governance and program structure has been developed
and approved to successfully drive the Transformation programmes.

Key Notes:
The Programme Management Forum considers
progress on key projects and also takes decisions
on Programme related matters;
Rational for new structures?
Improve decision making in the Fund;
Ensure harmonization and alignment of
programmes and coordinated planning and
implementation;
Promote shared understanding of compensation
fund issues, challenges and priorities;
Ensure good governance and accountability
through collective leadership and management of
programmes;
A platform to share information, communicate
decisions, share best practices and experiences
as well as to review performance;
Promote collegiality and cooperation within the
management echelon and among staff.
 Initiatives Planned
The following Key Initiatives have been identified to unlock value and
Mar14 Mar15 Mar16
drive the improvements required.
Programme Phase 1 Phase 2 Phase 3
Governance and Leadership Legislation Amendment;
Corporate
alignment; Delegation of Authority framework
Management
Fraud and Corruption Hotline; Enterprise Document and Records
Business Continuity Review Management

Establish PMO;
Performance management system;
Fill critical vacancies;
Customer Relationship management
Implement new Org structure; strategy;
Corporate Services Client Survey Recommendations; Policies, procedures and standards
Business process re-engineering

Action plan against AG audits Payroll audits; Implement Ecommerce system

and Scopa recommendations; Implement data cleansing with auto assessment;
Revenue Management project; Integrate Ecommerce system to
Financial Strategy; Policies, procedures and financial system
Management Letter of Good Standing standards
(including ICT)
Virtual Office and Smart forms; ICT Refresh;
ICT Strategy review Implement Channel innovation
ICT Operating model and CRM system

Decentralisation; Policies, procedures and Full implementation of RMA

ROE Website; standards; system;
Claims backlog program; Online claims submission RMA system integration to financial
Operations portal system;
RMA system pilot;
Unclaimed beneficiary monies program; Rehabilitation Programme
Data cleansing on eClaims

Performance Management, Change Management, and Communication

 Not Started
Completed

Progress Dashboard
In-progress
Behind Schedule Management intervention required

Corporate Management Key Points

Governance framework
Turn-around plan has been developed and currently being
Leadership alignment
finalised with management and Exco;
Fraud Hotline
Business Continuity Review Governance structures completed and signed off;
Corporate Services Commissioner is Project Sponsor, with CFO is Project Director;
Establish PMO
Programme Managers and Responsibility Managers appointed
Fill critical vacancies in line with new Org
to promote accountability in terms of PFMA;
structure
Implement new Org Structure Audit of all initiatives and progress is currently underway;
Climate Survey Recommendations
Process to establish well capacitated PMO underway;
Business Process Re-engineering
Financial Management Finance policies and procedures are being established in line
with PFMA and AG recommendations;
Action plan against AG audits and Scopa
Revenue Management Strategy Adverts and shortlisting of new Director posts underway;
Letter of Good Standing
Action plan against AG audits has been completed and
Operations approved by Exco;
Decentralisation
ROE website has been completed, is operational and
ROE Website
enhancements underway;
Claims backlog program
RMA System Pilot New improved Letter of Good standing in pilot phase to be
Unclaimed beneficiary monies program rolled out in November 2013;

Data Cleansing and Update of banking details Claims backlog program is on-going
Next Steps
- Enhancement of Turn-around plan and
follow on approval by Board and
Executive Authority;
- Communication and socialisation of
Turn-around plan;
- Outputs linked to managers KPIs;
- Effectively manage risk and
consequences;
- Work the Plan
Questions