Current: Organisational Change Project: GEPF Special Pensions Unit | Projects | Vendzulu Development Agency

Client: Department: National Treasury
Project: Organisational Change Project: GEPF Special Pensions Unit
Period: 2009 -2011
Vendzulu’s Role: Project Manager to conduct a Scoping Study and subsequently implement the organisational changes required to optimise all business processes within the Special Pensions Unit

Background:

The Special Pensions Act No.69 of 1996 was promulgated on the 1st of December 1996 and the Special Pensions Unit was set up to put into effect the provisions of this Act- to compensate individuals who formed part of the struggle against Apartheid. By the 31st of December 1996, 44 451 applications had been received. To date 34 884 applications have been finalized (14 391 successful and 20 493 declined) and 9 567 applications are not yet finalised. In light of the recent amendment of the Act, this backlog of 9 567 files is a great cause of concern in the Department.

Project Outline:

Three amendments have been made subsequent to the Act’s promulgation in 1996. As a result of the Recent amendment, Special Pensions Amendment Act. No 13 of 2008, an influx of new applications was expected since the beginning of 2009. The Department has identified a need to make organisational changes and provide the Special Pensions Unit with the support that will enable it to:

• Finalise the processing of the backlog;
• Empower and delegate functions to the regional offices; and
• Process new applications in an efficient and effective manner.

Critical challenges faced:

We would like to highlight the following critical challenges that affected the implementation of the Change Project Plan:

Fraudulent Activities: During the Scoping Study a number of fraudulent activities were identified such as payments that were unrightfully paid without proper verification and reporting. Officials who were proven to be guilty of such misconduct were dismissed. Additional investigations were launched into unsubstantiated claims and the Project Team was generally more vigilant and aware of such activities. A recommendation was also made to the Director-General to conduct security clearances on all staff members as the nature of their work translates into financial value.

Politically Charged Environment: The major political parties that were involved in the struggle, PAC, ANC and Azapo each appointed representatives to review applications. But while the most applications were received from ANC Members, there was only one delegate of the ANC positioned to process these files. The other parties each had two representatives, but each party just focused on its own applications. The largest portion of the backlog of files was therefore from members of the ANC.

Another problem that arose from the fact that there were political appointees, was that these delegates were completely ungoverned and reporting and feedback on activities was limited.
Several workshops were then facilitated to address these issues, during which the roles and responsibilities of these representatives were clearly defined. Subsequently, all parties have been collaborating to reduce the backlog and process new applications faster.

Resistance to Change: Due to lack of guidance and management as well as insecurity, Vendzulu team members were met with huge resistance and hostility. This was overcome through clear and consistent communications. Meetings and workshops were held frequently during which the intention of the Change Project was explained and direction was provided. The benefits of any changes to existing processes were highlighted and such changes were implemented in an interactive manner, ensuring the buy-in of the employees involved.

Lack of Systems: All business processes were executed manually, in a completely unstructured and unquantifiable manner. Vendzulu therefore initiated and facilitated the development of an interim software programme in conjunction with the IT Department of National Treasury, that could be used until a custom solution has been created for the Special Pensions Unit. However, it soon became clear that the employees were not ready for such an intervention. The process had to be parked until such time that the officials were fully trained and equipped to make use of IT Systems.

• Processes were designed and implemented to create structure and improve work flow. A Business Process Analyst has been placed on site to analyse the “as is” situation of all procedures and to engineer sensible solutions going forward.

Disparities in the Special Pensions Act: Disparities in the Special Pensions Act: It became clear that applications are not reviewed in a consistent manner, due to disparities in the Special Pensions Act that are open to various interpretations. The Vendzulu team facilitated a workshop to identify these discrepancies and compiled a report which will be presented for consideration to the legislator.

Deliverables Achieved:

Whilst the overall Project Objectives are well underway to be achieved in 2011, the following short term results have already been achieved:

Expansion of Resources

• Vendzulu conducted assessments on competencies and skills required and assisted with acquiring legal contractors who are able to meet these needs. Legal officials were selected due to their ability to remain objective and professional

• Following a conflict-resolution workshop, the representatives of the various political parties have been collaborating to reduce the backlog and process new applications faster

• GEPF Call Centre staff who handled general GEPF queries were trained to also handle queries pertaining to Special Pensions applications more efficiently

• A Customer Care Centre has been established within the Unit. Problematic applications are escalated to the Customer Care oficials for personal follow up and attention

Improvement of work environment

• Based on recommendations by Vendzulu, to improve the working conditions and environment, the GEPF Special Pensions Unit was overhauled and completely renovated

• A workshop was presented to teach employees office etiquette and professionalism
• Security measures were implemented, ensuring both the physical security of the employees who work in the Unit as well as the information security
• Arrangements have been made to store non-active files off-site and storage of active files have been improved

Advancing leadership roles and systems for management

• Competency tests were performed and restructuring has been done to match the right skills to the right job
• A benchmarking study was completed and job descriptions were compiled accordingly
• A new Organogram has been created for the sake of redesigning the Organisational structure and define leadership roles effectively
• Procedures were put in place to improve communication and feedback

Poor work culture

• Recommendations have been made for the design and implementation of an internal communication strategy that would re-instil work pride and promote cooperation through team building activities. Workshops are held frequently to ensure that staff are kept in the loop of changes that affect them and to provide knowledge and information where it is necessary.

Conclusion: The true objectivity of an external party is key to achieving effective Organisational Change.