A word on Effective Communication

Who's responsibility is it anyway?

Firstly let me start by congratulating the Mangaung Local Municipality on the launch of their new corporate identity. In the past weeks we have seen their adverts, which are easily identifiable and consistently applied. We hope they will continue to build their brand into a world-class institution and city.

Which brings me to the question? : Is brand custody the responsibility of the marketing and communication department or of top management? It is my view that it is the latter's responsibility as they are the strategy drivers of the organization. A brand is a composite reflection of an organization and should be of utmost priority to top management to avoid misrepresentation of the organizational strategic focus, be it short or long term. When the brand is integral in the strategy development of the board and top management, the financial request from the communications department are easily understood.

Let us assume that company X, which is in the chicken feed industry, wants to be the preferred supplier in South Africa. Firstly at a strategic level there should be an assessment of the company assets, which should be configured into capabilities; secondly we need to assess the market and find a perfect fit. The product mix is then developed and which will be adopted as a strategy for the set objective. At this stage, company X clearly understands the market, capabilities and investment needed to be the preferred supplier.

It then becomes the responsibility of the communications department to develop a communications strategy that will action the strategic plan and monitor the growth curve. After that top management assesses the impact the communications strategy has had on the strategic plan in order to justify the investment made. When the strategic objectives of the board and management are achieved, it would become easy to get further investment approved. This approach thus creates a positive synergy in a company and makes towards strong branding.

It is therefore my concluding argument that we need to have more executives who take branding as an integral part of their every decision-making and understand the role that a brand plays in the overall success of an organization. It is everybody's responsibility in general - top management in particular.

Upholding the essentials of sound financial administration and public accountability

On 16 September 2004 the Provincial Public Accounts Committee of the Free State Legislature (PROPAC) under the Chairmanship of Mr. Abrie Oosthuizen held an award ceremony at Bloemfontein to acknowledge and award the provincial department and the local authority with the best performance in financial management and accountability during the 2003/2004 financial year. PROPAC has set criteria according to which province government departments and local authorities were evaluated during committee sittings at the end of 2003.
In its evaluation, PROPAC concentrates, among others, on issues like:

• The implementation and adherence to PROPAC resolutions
• Adequate and timeous written replies to resolutions taken by PROPAC
• Compliance with and response to management letters of the Auditor General
• Improvements noted in the Auditor-General's report on that institution
• Compliance with Sections 38 to 40 of the PMFA regarding responsibilities of Accounting Officers
• Timeous tabling of Annual Reports
• Proper handling and securing of assets and stock

In his address at the award ceremony, Mr. Oosthuizen emphasized the need for the development of a culture of ethics in the public sector. He stressed the importance of the role PROPAC has to fulfill, especially with regard to guidance and guardianship for institutions to comply with the instruments available, namely the Constitution of South Africa, the Public Finance Management Act and the Municipal Finance Management Act.
“You can't have effective and efficient financial administration without a culture of ethics. The taxpayer demands value for money, which is impossible if the system is not effective and efficient,” Mr. Oosthuizen said. He further added that public servants exercise discretionary powers in their everyday work in several ways:

• In their stewardship of public resources
• At the interface with citizens
• In the context of their policy making functions.

Explained Mr. Oosthuizen: “Ethics is one of the important checks and balances against the misuse of public power. It also provides a basis to assure that the interests of the public are served well. It is the key factor in the quality of governance. Since South Africa and its nine provinces do not have enough money to stimulate economic growth, money from outside South Africa (foreign capital) is needed to stimulate economic growth. To this end, the trust of foreign investors has to be earned, because the first aspect foreign investors look at is an effective and clean public administration. That is why we must create an ethics culture throughout the whole chain of roleplayers. It all comes down to the conclusion that democracy without public accountability is no democracy.”
It was announced at the ceremony that the winner for the 2003/2004 financial year in the category provincial departments is the Free State Legislature, while in the category local government the winner is Mangaung Local Municipality.

A new corporate identity!

At a Council meeting on 3 August 2004, MANGAUNG Local Municipality officially approved and introduced its new Corporate Identity.
Since the amalgamation of Bloemfontein, Botshabelo and Thaba Nchu, the Municipality has not had a Corporate Identity expressing the integration as envisaged by the IDP and Municipal Structures Act of 2000. However, noting that it was a critical success factor in establishing a benchmark Municipality, Council was convinced that a corporate identity should not only reflect the visual representation of the institution, but also its values as derived from the Integrated Development Plan and embedded in the Municipality's Strategic Framework. Consequently the Municipality embarked on a process of branding itself and simultaneously utilize the process as one of its vehicles in delivering on its promise to the people of Mangaung Service excellence!
Proposals were requested in January 2003 from service providers who could run the branding project on behalf of Council as this is a specialized field of work. Subsequent to this, two service providers were appointed, viz. Ad n Move and Blue Action Marketing.

Branding Mangaung City

A brand is an intricate device, constructed with complementary elements operating in tandem to ensure that the required perception created with its audience is in alignment with pre-determined business objectives. It's success is measured by ability to successfully communicate its promise to the market and to keep this promise. It is only in doing this and living the values consistent with the promise, that a brand gains confidence and acceptance with its target audience.
The branding process was conducted in phases, viz.

· Research phase
· Identifying brand elements
· Embarking on a public participation process called Bua Hela and which entailed extensive involvement of the public, the business sector and the youth.
· In their final report, Blue Action Marketing proposed a new corporate identity (logo) and payline (slogan) for the city of Mangaung.

This new corporate identity adopted by Coucil, is the culmination of extensive work done regarding the past and future of Mangaung, representing indeed the voice of the people.

With your help and based on our Integrated Development Plan, Mangaung will strive to achieve by the year 2015 the following :

· Mangaung be recognised nationally and internationally as a safe and attractive place to live, work and invest.
· Good and accessible basic services for all, a dynamic economy with a high emplyment rate, many innovative formal and informal businesses and a highly skilled workforce.
· Mangaung citizens will have great civic pride, responsibility, strong partnership ethos and a vibrant cultural life. Citizens participate actively and trust their service providers, who operate with a culture of transparency and accountability.
· Poverty will be reduced, everyone has access to land and housing, there is much more equitable distribution of wealth and disadvantaged groups are participating actively in society and the economy.

Mangaung will be attractive, safe, clean, green and healthy and a sought after place for visitors and investors.

Our new look

Realising our vision means representing ourselves powerfully and confidently. Our new look positions us as:

· Being progressive, inspirational and creative
· Having African sophistication
· Welcoming and hospitable
· Inolring business and investment sectors
· A growing community

Our new logo

Within this framework, our new Mangaung logo, as described graphically in this feature, captures, represents and reflects our new look, vision and strategy.

Our objectives

Mangaung as a living “corporate identity” has many responsibilities, which include developing our economy and community, promoting civic leadership and delivering excellent service. This can be highlighted in more detail as follows :

Mangaung - City on the Move - Using strength to succeed

Higher economic growth in our region is particularly beneficial if it is enjoyed by our entire community. This means our people will have more money to pay for their own service and housing needs and in turn the municipality will have an increased income to improve its services to its people. The municipality can and will play a critical role in creating the right conditions for this sustained growth.

Mangaung - City on the Move - We make it better together

Building a stronger community and becoming self-reliant is a crucial step in the social development of our region. We will create a better palce for all in Mangaung by taking specific steps.

Mangaung - City on the Move - We're leading the way

Research shows that an important feature of successful municipalities is a high level of common purpose among its major stakeholders. This shared vision must stem from strong civic leadership by our Council. Here, “united we stand, divided we fall” sums up our purpose. We aim to set the benchmark for municipal effectiveness by again taking relevant steps.

Mangaung - City on the Move - Our service excels

The more we can ensure the delivery of the right services to Mangaung, the more our economic potential and community resilience is enhanced and the more effective we are in tackling poverty and other social ills. We also need to ensure that all residents receive basic levels of service for a better quality of life. Here also we have identified our strategies.

Thus our Mangaung Renaissance has begun!
By working together we, as a people, can make our communities self-reliant, proud and strong and ensure that :

· Our region is a safe and secure place to live, visit and do business in.
· The percentage of HIV infection (and its impacts on families) is reduced.
· All our housing conforms to NHBRC standards and all people (on existing formal erven) have access to a water connection, basic RDP standard sanitation and a properly drained all weather street.
· Education levels are higher with a Matric pass rate of 65% and 90% literacy rate with easy access to tertialry education and training at all levels and that Mangaung is recognised as a national centre of high quality learning.
· Our environments are attractive and clean, with well-kept natural open spaces, parks and built-up environments.
· Our economy grows rapidly and new jobs are continually created.

Only national monument at Smithfield

This old house at Smithfield renovated into a guesthouse is the only declared national monument in the town, the town's rich history notwithstanding. So says Mr. Robert Jewell, owner of the Artists' Colony Guesthouse at 3 Church Street, Smithfield.
The house has been built on instruction of Sir Harry Smith in the second half of the 19th century as a safe haven for the area's mothers and children whenever animosities with marauding cattle raiders flared up.
The house has been well-kept ever since and some years ago Jewell and his family turned the interior into a comfortable guesthouse. Above the front door is a plaque confirming the national monument status of the house.

Free State Provincial Treasury introduces Supply Chain Management

At a gala function on 10 September 2004 at Kopano Nokeng, Bloemfontein, the Free State Provincial Treasury officially launched the introduction of Supply Chain Management (SCM) as a key element to modernize financial management in the public sector in the province. Seeking to modernize procurement and asset management practices in the public sector, SCM has basically three objectives:

• To establish financial best practices within the Free State Provincial Government
• To make the procurement process faster, simpler and more effective for small, medium and micro enterprises (SMME's)
• To put the Free State Province in line with the national as well as international standards.

Scope of SCM

SCM will apply to the acquiring and disposing of all goods, services, construction and road works and immovable property of all constitutional institutions, public entities and defined in schedule 3A and 3C of the PFMA, national and provincial departments, trading entities, municipalities and municipal entities as defined in the MFMA and all school governing bodies whether or not they have been assigned additional responsibilities in terms of section 21 of the South African Schools Act, 1996.
The successful implementation of SCM is dependent on the principles of co-operative governance and intergovernmental relations as worded in sections 40 and 41 of the Constitution, enshrining the authority of each sphere whilst regulating the relationship between those spheres. This concept is carried consistently throughout the Constitution particularly in sections 139 and 146.
The official objectives of SCM are therefore formulated as follows:

• To give effect to the provisions of The Constitution, 1996;
• To give effect to the provisions of the PFMA and the MFMA;
• To transform the procurement and provisioning
• functions in government into an integrated supply chain management function;
• To introduce a system for the appointment of consultants;
• To create a common understanding and interpretation of government's preferential procurement policy objectives; and
• To promote consistency in respect of supply chain policy and other related policy initiatives in government.

The introduction of an integrated supply chain management function intends to address the division between the current outdated procurement and provisioning processes in government that cause the present system to be inefficient in its method of procurement, contract management, inventory/asset control and obsolescence planning.

Supply chain management is an integral part of financial management that seeks to introduce internationally accepted best practice principles, whilst at the same time addressing government's preferential procurement policy objectives.
The integrated supply chain management process, where value is added at every stage of the process, not only links to government's budgetary planning processes, but also strongly focuses on the outcomes of actual expenditure in respect of the sourcing of goods and services.

Elements

The elements of government's Supply Chain Management processes are depicted in the diagram right, where value is added at each phase of the process.
Current work at the National Treasury includes the development of a systems master plan for an integrated development of a systems master plan for an integrated financial management system that conforms to the requirements of the PFMA. This master plan will include the systems requirements, including the requirements of E-commerce, to more fully support the adoption of the proposed integrated Supply Chain Management function.

Demand management

This is the beginning of the supply chain where the following functions take place:

Determining a needs assessment dealing with issues such as:

Understanding future needs;

• Identifying critical delivery dates;

• The frequency of need;

• Linking the requirement to the budget;

• Doing an expenditure analysis (based on past expenditures);

• Determining the specifications;

• Doing a commodity analysis (checking for alternatives); and

• Doing an industry analysis.

This is a cross-functional exercise that brings the supply chain practitioner closer to the end user, ensuring that value for money is achieved.

Acquisitioning management

This is the stage where:

• The preferential procurement policy objectives are identified that could be met through the specific contract;

• The strategy of how the market is to be approached is determined;

• Applicable depreciation rates are determined;

• The total cost of ownership (TCO) principle is being applied e.g. -Life cycle cost;
-Inventory carrying cost;

• The bid document is compiled, attaching all necessary required documents and giving conditions etc;

• The bid evaluation criteria is determined;

• Bids are evaluated and recommendations tabled;

• Contract documents are compiled and signed;

• Contract administration is done; and

• Contract information is used to kick-start the logistics management process..

Logistics management

For stock or inventory items the following functions are amongst others performed :

•Coding of items;
• Setting of inventory levels;
• Placing of orders;
• Receiving and distribution of material;
• Stores / Warehouse management;
• Expediting orders;
• Transport management; and
• Vendor performance etc.

For fixed capital items (construction and road projects, immovable property) a similar process, mutates mutandis has been adopted, i.e. appropriate to asset and property register, valuation, main use, etc.
From this process the financial system is activated to generate payments.

Disposal management

At this stage:

• Obsolescence planning or depreciation rates per item required are calculated;
• A data base of all redundant material is kept;
• Material is inspected for potential re-use;
• A strategy is determined of how the items are going to be disposed of; and
• Executing the physical disposal process.

Again a similar set of procedures is applicable to fixed capital stock, i.e. depreciation, maintenance and replacement planning and costing, etc.

SCM performance

Here a monitoring process takes place, undertaking a retrospective analysis to determine whether the proper process is being followed and whether the desired objectives are achieved.

Some of the issues reviewed are:

•Achievement of goals;
•Compliance to norms and standards;
• Savings generated;
• Stores efficiency;
• Cost variance per item;
• Contract breach etc;
• Cost efficiency of procurement process (i.e. cost of the process itself);
• Whether supply chain objectives are consistent with government's broader policy focus - also refer to paragraph 3.7 of the Policy document;
• That the material construction standards become increasingly aligned with those standards that support international best practice;
• That the principles of co-operative governance as expounded in the Constitution are observed; and
• That the reduction of regional economic disparities are promoted.

The Supply Chain Management Office established in the National Treasury will oversee the implementation of this Policy Strategy, and any supporting regulations and standards issued in conjunction with Provincial Treasuries, SALGA (the latter's regional counterparts) and Chief Financial Officers from the different spheres of government.

Establishment of new Free State SCM Directorate

In order to implement supply chain management for the Free State Province and to bring all the benefits of the system to fruition, a new specialist unit, the Supply Chain Management Directorate, was established within the Free State Treasury.
The Directorate is headed by mr. Thapelo Motsoeneng and he is assisted by a dedicated team of professional officials carefully selected for the purpose.

Core functions of new SCM Directorate

The core functions of the new SCM Directorate, is firstly to prescribe additional best practices to all stakeholders with the intention of adding value to and improving all SCM processes in the Free State Provincial Government; and, secondly to manage the transvestile provincial supplier management system in collaboration with all line function departments.
This supplier management system would allow for record keeping on all current and potential suppliers and, most importantly, will allow for much needed analyses of procurement trends with-in the Free State Provincial Government.
On the whole, the Directorate will monitor progress in respect of supply chain management in the Free State and also co-ordinates friends in relation to it.

Wider context

To showcase South Africa as an advanced manufacturing economy, the Department of Trade and Industry has become a key sponsor and strategic partner of the Proudly South African campaign. In terms of the campaign, South Africa companies are encouraged to submit interesting and innovative achievements in the manufacturing field - new products, export achievements, new partnerships and successes and milestones.
Even wider context, South Africa supply chain management practices should strive to support the objectives of the New Partnership for Africa's Development (NEPAD) by:

• Being sensitive to possibilities for increasing production and improving the competitiveness and diversification of the domestic private sector, especially in the agro-industrial, mining and manufacturing sub-sectors, with potential for exports and employment creation;
• Promoting uniform standards;
• Harmonising technical regulatory policies;
• Being sensitive to opportunities for the development of new industries, or upgrading of existing ones, where comparative advantages are prevalent, including agro-based industries and energy and mineral resource-based industries;
• Facilitating partnership through the development of mechanisms, such as joint business councils for information sharing between non-African and African firms and for facilitating processes towards the establishment of joint ventures and subcontracting arrangements.

Elaboration by MEC

Viewpoints from CEO

Wêrelderfenisgebied moontlik in Vrystaat

Die kanse lyk goed dat die derde gebied wat in Suid-Afrika tot Wêrelderfenisgebied verklaar gaan word, in die Vrystaat sal wees oftewel Vrystaat / Noordwes in die vorm van die Koepel Gebied naby Parys en Vredefort.
Die Koepel Gebied is onlangs deur UNESCO geëvalueer en 'n finale besluit word in Julie 2005 verwag. Die enigste ander gebiede in die land wat as Wêrelderfenisgebied verklaar is, is Robben-eiland en die Groter St. Lucia-vleiland. Die koepel is miljoene jare gelede deur die impak van 'n meteoriet met 'n deursnit van 10 km (bykans so groot soos Tafelberg) veroorsaak.
Indien die Koepel Gebied tot Wêrelderfenisgebied verklaar word, is die aanduidings dat 'n bestuursowerheid vir die gebied ingestel moet word om onder meer te verseker dat natuurlike hulpbronne in sowat 30 000 ha nie oorbenut word nie. 'n Private wildpark wat toerismegewys met die Krugerwildtuin sou kan meeding, word in die vooruitsig gestel. Die Vrystaatse Dept. van Toerisme en Omgewingsake bereken dat in só 'n geval die toerismegetal aan die gebied met sowat 70 000 besoekers per jaar kan toeneem.
Die Koepel Avontuurfees wat vanjaar 15-17 Oktober vir die eerste keer op en om Parys aangebied word, kan 'n belangrike voorloper wees vir 'n toekomstige bemarkingstrategie vir die Koepel Gebied.
Vir stalletjies by die Avontuurfees kan Hendrik Swanepoel geskakel word by (056) 817 7886 of 083 417 8415. Verdere navrae aan Mark Pieterse by (056) 811 5573 of 082 494 7092.

Making a case for a airport at Matjhabeng

The discovery of gold in the northwestern Free State in the mid-20th century gave rise to the establishment and rapid development of the city of Welkom and other satellite towns on what was to become known as the Free State Goldfields. This propelled the region towards the end of the previous century into the biggest regional contributor to the Free State GGP. With the decline in the mining sector, the regional economy was forced to start shifting from a gold mining-based one to a multi-sectoral driven economy.
This shift did not, however, quite materialize because the blows dealt with the closure of one mine after the other as a result of the falling gold price, came just too frequent and too hard to allow for proper economic recovery. Amongst the results of this depressing situation in the Matjhabeng area over the past decade were a total job loss of some 120 000 jobs, a drop in population from some 800 000 to 372 000 and a decline in share in the Free State GGP from 33% (top position) to 25% (second after the Motheo District). This means that the economy of the Matjhabeng area was just about halved during the past 10-12 years.
On the positive side, however, these are firm indications that specific measures instituted to promote other economic sectors in the region, like manufacturing enterprises, industrial servicing, tourism, training, agro beneficiation, training and skills development, etc., are beginning to bear fruit and have implanted a remarkable resilience into the local economy.
Together with this, local economic planners have done their homework on a number of scenarios, one of which is the centrifugal value the establishing of a dedicated international cargo airport at Welkom could have within the regional economy. Research in this regard was initiated already some eight years ago and included visiting a number of dedicated cargo airports abroad.
To confirm the highly positive findings in this respect as regards the suitability of Welkom, an international aviation expert in the person of Mr. Ton Hens of the Netherlands was consulted and his latest report this year shows beyond any doubt the utmost desirability of establishing such an airport in the Matjhabeng area.
That adds to the strong case to be made out why the establishment of an international cargo port at Welkom could trigger escalating development not only in the local region, but also in the entire Free State - with as a matter of fact tremendous potential socio-economic spin-offs for South Africa as a country. In even wider context, studies have shown that an international cargo airport at Welkom would constitute a natural element in the Nepad puzzle currently being pieced together.

Broadening the economic base

Sectoral spin-offs

What a cargo airport entails

Why Matjhabeng?

Decicion-making process towards final approval

Feasibility and business plan

Hens Report 2004

• Strategic location on the cargo cross-roads between Cape Town and Johannesburg.
• This would be the first dedicated cargo airport which can increase the import/export markets to/from South Africa by a smooth, low cost cargo transfer process.
• There are no concrete cargo development plans at major South African airports within the next 5-8 years posing a threat to Matjhabeng.
• New markets and routes can be developed, e.g. Matjhabeng Airport to South America and back to the Far East.

Free State, SA and Nepad to benefit

Business perspective statement

Opportunity for Phakisa Raceway to come to full fruition