15 December, 2015
BRIEF OVERVIEW OF NSF OPERATING MODEL
FOR TENDER TO APPOINT A SYSTEM INTEGRATOR TO IMPLEMENT AN INTEGRATED MICROSOFT DYNAMICS BASED SYSTEM
Table of Contents
Page No.
Table of Contents
Page No.
1Background
2Introduction
3NSF Operating Model
3.1001_Marketing and Communication
3.1.1Marketing
3.1.2Branding
3.2002_Governance Risk and Compliance
3.2.1Governance
3.2.2Risk Management
3.2.3Compliance
3.2.4GRC Reporting
3.3003_Secretariat
3.3.1Setup and Maintain NSF Calendar
3.3.2Maintain Committee Appointments
3.3.3Meeting Administration
3.4004_Integrated Skills Planning
3.4.1Demand Forecast
3.4.2Supply Planning
3.4.3Strategy Contextualisation
3.4.4Portfolio Initiation
3.4.5Innovation
3.5005_Projects
3.5.1Initiate
3.5.2Execute
3.5.3Close - Out
3.5.4Review
3.6006_Bursaries
3.6.1Determine Bursaries Focus Areas and Programmes
3.6.2Bursary Proposals
3.6.3Budget Consolidation and Allocation
3.6.4Institutions Bursaries
3.6.5NSF Outreach Programme
3.6.6Bursaries Disbursements
3.6.7Close Out
3.6.8Bursary Monitoring
3.7007_Fund Management
3.7.1Budgeting
3.7.2Incoming Funds
3.7.3Funds Investment
3.7.4Outgoing Funds (Disbursement)
3.7.5Outgoing Funds (Administrative)
3.7.6Monitor and Report
3.8008_Performance Planning, Monitoring and Reporting
3.8.1Planning
3.8.2Performance Requirements
3.8.3Reporting Requirements
3.8.4Reporting Templates
3.8.5Reporting
3.8.6Performance Management
3.9009_Finance Management
3.9.1Finance Management
3.9.2Cost Centre Management
3.9.3Beneficiary Management
3.10010_Human Resources
3.10.1Workforce Planning
3.10.2Recruitment
3.10.3Performance Management
3.10.4Time Recording
3.10.5Succession Planning
3.10.6Leave Management
3.10.7Learning & Development
3.10.8Grievance & Disciplinary
3.10.9Terminations
3.10.10Temporary Appointments
3.10.11Work Integrated Learning
3.10.12Payroll
3.11011_Legal
3.11.1Legal Orientation and Planning
3.11.2Legal Support
3.11.3Legal Awareness
3.12012_Supply Chain Management
3.12.1Tender Management
3.12.2Contract Management
3.12.3Procurement
3.12.4Vendor Management
3.13013_Asset Management
3.13.1Planning and Acquisition
3.13.2Maintenance
3.13.3Decommissioning
3.14014_Content Management
3.14.1Master Data Management
3.15015_IT Support
3.15.1IT Strategy and Planning
3.15.2IT Enablement
3.15.3IT Service Delivery
3.16016_Internal Audit
3.16.1Appoint Service Provider
3.16.2Audit Planning
3.16.3Audit Engagement
3.16.4Progress Reporting
3.17017_Facilities & Occupational Health &Safety
3.17.1Facilities Management
3.17.2Occupational Health & Safety
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1Background
This design reportserves as the output of Phase 1 Stage 3 of Project Siyaphambili. The report incorporates the outputs of all consultations and workshops held during this phase in which the operational model of the NSF was designed. The project stage activities included an in-depth analysis and design of process andconsidered resource requirements (people and systems) architecture of the Fund as it is envisaged to operate in future.
2Introduction
Processes of the operating model have been illustrated by means of process mapping. Mapping of the various levels of the operating model have been recorded, as outlined in the diagram below:
This report is generated as an extract from the operating modelling enabling tool, Enterprise Architect. It serves as a visual representation of the NSF organisational processes as it has been incorporated in the modelling tool. The electronic version operating model is dynamic and is envisaged to actively change as the organisation transforms and matures during implementation. This report is, due to its nature, a ‘point in time’ view of the model at the end of the design stage.
The structure of this document is aimed at providing detail of each component of the operating model (Level 1), providing details of Levels 2 to 3 and detailed activities at Level 4. At this level (Level 4) activities are matched to a specific role / ‘swimlanes’ (appearing as vertical partitions), providing guidance as to the responsible resource to perform theassociated activity.
Other dimensions of the structure are included as Annexures to this report:
- Section 2 – NSF Organisational Structure: outlining theorganisational structure supporting the roles/swimlanes included in Level 4 of the model;
- Section 3 – Governance Structure: summarising the governance structure (legislative and structural (committees)) emerging from the operational design;
- Section 4 – System Architecture: initial systems architecture based on requirements identified as part of the operational design;
- Appendices:
- Appendix A: Process Controls: a summary of emerging risks and controls required on Level 1-4 processes in the current operating model;
- Appendix B: Process Documentation: a summary of standard documents supporting / enabling Level 1-4 processes in the current operating model;
- Appendix C: Process Key Performance Indicators (KPI’s): a summary of performance indicators for Level 1-4 processes in the current operating model informing organisational performance; and
- Appendix D: Process Calendar: a high level view of important dates emerging from the detail behind Level 1 processes.
Finally, the content of this document corresponds to version EYNSF077 of the model as finalised on 30 April 2015. Although this report is taken as the deliverable of Phase 1 Stage 3 of the project, it serves as a referencing framework and departure point for the implementation planning stage of the project.
3NSF Operating Model
The high level components (Level 1) of the NSF operating model are summarised below:
Figure 1: NSF Operating Model
The NSF operating model consists of three components:
- Executive office – All enterprise processes targeted at stakeholder management, communication, governance and oversight as well as internal alignment (committee structures) within the Fund.
- Core Functions – Enterprise processes enabling strategic planning, project and/or bursary initiation, implementation, monitoring and evaluation. This will also include the overall management of fund investment.
- Support services – All enterprise processes required to enable support services for the day-to-day operations within the NSF.
Enterprise processes of the abovementioned components are demonstrated by means of process mapping performed at various levels of details.
- Executive Office Processes
i.Marketing & Communication
Marketing and Communication cover all aspects of marketing (communication plans, marketing campaigns); brand awareness; standardisation of documentation as well as planning and steering all communication relevant stakeholders identified.
ii.Governance, Risk and Compliance
Governance, risk and compliance (GRC) includes all policy development; maintenance, communication and training of procedures; risk planning, measurement and management and ultimately reporting to the Audit Committee with regards to state of GRC within the Fund.
iii.Secretariat
The Secretariat function incorporates the creation and maintenance of the NSF calendar, supports and /or facilitates the formation and functioning of committees relevant within the governance structure.
- Core Functional Processes
i.Integrated Skills Planning
Integrated Skills Planning is the ‘control room’ of the core business. It incorporates all research and analysis required to enable robust strategic planning, translating demand into a Fund portfolio (a collection of projects and bursaries) that will upon delivery aid in achieving strategic objectives listed in the Strategic Plan. It further spearheads innovation, ensuring that the fund responds appropriately towards trends within the skills environment.
ii.Projects
The Projects process includes all activities required to deliver a programme/project throughout its lifecycle. It takes its cue from the Integrated Skills Planning process, executing on the portfolio guidelines on a more granular level. It contains aspects of project initiation, monitoring and evaluation of execution and close-out. Finally it prompts a post implementation review processes where all lessons learnt are captured and redirected into the organisation to support enterprise intelligence and increase future efficiencies and effectiveness.
iii.Bursaries
The Bursary process includes all activities required to deliver a bursary from inception to a point where the beneficiary obtains the associated qualification. It takes its cue from the Integrated Skills Planning process, executing on the portfolio guidelines on a more granular level. It includes the identification of focus areas, soliciting proposals, contracting, disbursement, monitoring and evaluation of the bursary process (beneficiaries and service provider (NSFAS)) and close-out.
iv.Fund Management
Fund management deals with the management of the revenue (receipts from DHET) of the NSF. This includes budgeting, accounting for incoming funds/levies, investment of surpluses, controlling fund expenditure on projects and bursaries as well as expending on administrative costs. Management of administrative costs is however included under the Finance Management support service process.
v.Performance Planning, Monitoring and Reporting
Planning and monitoring performance is one of the most important processes within the NSF. This process includes planning for performance reporting, finalising performance and reporting requirements which is followed by the solicitation, finalisation and distribution of relevant information. The management of performance content (i.e. identification of poor performance, crafting of expediting measures to improve performance) is an ongoing process, creating a platform for early detection and proactive remedial actions.
- Support Service Processes
i.Finance Management
Finance management includes all financial processes that support the business requirements of the NSF and includes processes such as performing a financial due diligence on a bidder, issuing a fund certificate for a project, financial orientation of service provider, change request and financial transaction processing on projects. Beneficiary Management covers the financial processes supporting the creation, amendment and removal of beneficiaries on the associated NSF payment system.
ii.Human Resources
The Human Resource process includes planning, recruitment and management of the employees (both full time and permanent) of the NSF. Management processes provides practices for performance management, time management (and leave) and remuneration. It further structures learning and development and systematise disciplinary procedures and contract termination
iii.Legal
Legal processes outlines all activities associated with the development of the NSF legal framework and associated policies and structures legal support on the development and execution of contracts. It further entrench legal awareness with targeted and structured training across the Fund.
iv.Supply Chain Management
Supply chain provides structure for the planning, soliciting, contracting and management of vendors (excluding service providers and bursars).
v.Asset Management
Asset management include the planning, acquisition and maintenance of moveable assets of the NSF.
vi.Content Management
Content management involves the creation, amendment and removal of master data. Master data include, but are not limited to, policies, procedures and processes of the NSF.
vii.IT Support
IT Support processes outlines activities involved in development of the strategy which will provide direction to the establishment of the important functions within IT. It further structures technology enablement by designing, developing and implementing IT services to improve overall business key business processes and functions, as well as supporting the delivery of IT services to the Fund.
viii.Internal Audit
The Internal Audit process supports the systematic and independent review of the efficiency and effectiveness of the NSF. It outlines the identification of a service provider, structures the planning, execution and reporting of audits performed within the Fund.
ix.Facilities & Occupational Health & Safety
Facilities and Organisational Health and Safety Management process enable a safe, enabling work environment for the employ of the NSF and supports business continuity. Facilities Management involves the coordination of space and people associated with the administration of the office space of the Fund. Occupational Health and Safety includes all activities concerned with the safety, health and welfare of NSF employees within the working environment.
Details of Levels 1 to 4 of each of the above processes are provided in Sections 3.1 to 3.17 of this report.
3.1001_Marketing and Communication
Figure 2: Marketing and Communication
Marketing
The planning, execution and monitoring of Marketing Activities within the NSF.
Branding
The perceived NSF brand is assessed, compared to the envisaged brand position and a plan is developed to achieve the envisaged brand. A policy is developed subsequent to approval of the brand plan.
Communication / Stakeholder Management
Interaction and communication with relevant stakeholders are planned and managed.
3.1.1Marketing
Figure 3: Marketing
Develop Marketing Strategy
A Marketing Strategy is developed from the NSF's objectives outlined in the Strategic and Annual Performance Plans.
Execute
Specific marketing activities is identified, planned for and executed as outlined in the Marketing Plan.
Monitor Marketing
The efficiency and effectiveness of marketing activities is assessed and incorporated into the relevant plans as input to the next planning cycle.
3.1.2Branding
Figure 7: Branding
Develop Brand Policy
The NSF brand is assessed and a preferred brand designed. The accepted brand is defined in a brand policy.
Execute Branding
The NSF brand as outlined in the brand policy is applied in all marketing material and at marketing events.
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3.1.3Communication / Stakeholder Management
Figure 10: Communication / Stakeholder Management
Develop Communication Plan
A communication plan and policy is developed and published for use within the NSF.
Execute Plan
Stipulations of the communication policy and plan are incorporated within the day to day communication practices of the NSF.
Monitor Plan
The expectations and requirements of prominent stakeholder groups are assessed and the necessary amendments incorporated into the planning of the NSF.
Request for Information
A request for information directed to the NSF may be received from Parliament, 3rd Parties such as the media, or the general public. This process addresses how requests for information are resolved.
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3.2002_Governance Risk and Compliance
Figure 15: Governance Risk and Compliance
Governance
Governance involves the conformity of the NSF policy environment is applicable and sufficient in ensuring that the organisation complies with the requirements of the regulatory environment.
Risk Management
Risk Management is the set of processes through which management identifies, analyses, and, where necessary, responds appropriately to risks that might adversely affect realization of the NSF's business objectives.
Compliance
Compliance means conforming to NSF requirements. At an organizational level, it is achieved through management processes which identify the applicable requirements (defined for example in laws, regulations, contracts, strategies and policies), assess the state of compliance, assess the risks and potential costs of non-compliance against the projected expenses to achieve compliance, and hence prioritise, fund and initiate any corrective actions deemed necessary.
GRC Reporting
GRC Reporting involves the monthly reporting of the Governance, Risk and Compliance environment of the NSF. This includes all changes, updates and associated consultations/interactions within the organisation.
3.2.1Governance
Figure 16: Governance
Manage Policy Change
Manage Policy Change includes the identification, development and approval of NSF policies.
3.2.2Risk Management
Figure 18: Risk Management
Manage Risk
Risk management involves the planning, assessing and adaptation to a relevant response to ensure that the impact thereof on the NSF is sufficiently addressed.
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3.2.2.1Manage Risk
Figure 19: Manage Risk
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Scan NSF Operational and Business Environment
The GRC Officer examines NSF operational and business environment for change.
Obtain Internal Audit or Auditor General Findings
The GRC Officer requests the latest reports from Auditor General and internal audit for review.
Change Policy
A change in policy has occurred.
Identify and Classify Risk
Any material changes, or risks raised during the findings of the said audit reports are extracted and examined for materiality and impact.
Identify and Assemble the Organisational Risk Review Team
Identification and assemblyof the Organisational Risk Review Team who will have the required knowledge and experience to assist in the risk assessment.
Identify and Assemble the Divisional Risk Review Team
Identification and assembly of the Divisional Risk Review Team who will have the required knowledge and experience to assist in the risk assessment.
Arrange Strategic Risk Workshop
Arrange the risk review workshop where the identified risk(s) is/are assessed.
Assessment of Strategic Risks
Provide input on the risk identified and classified, which will be incorporated into the risk register.
Provide Mitigation Actions
Provide applicable mitigating actions for review.
Review and Provide Input
Provide input on the risk identified and classified, which will be incorporated into the risk register.
Amend Mitigation Actions
Amend the mitigating actions based on review notes and commentary.
Consolidate all Inputs and List of Mitigations
Consolidate the inputs and list of mitigation's.
Create / Amend Risk Register
Create the risk register to record the risks identified. The risk register summarises the nature of the risk, the risk rating, the assigned response and owner.
Review Risk Register
Review of the updated risk register for adequacy.
Review Risk Register
Review of the updated risk register for adequacy.
Develop Risk and Control Framework
Once the Risk Register has been approved the Risk & Control Framework is developed. This framework provides the base for use by internal audit.
Review Risk and Control Framework
Review the risk & control framework for adequacy.
Review Risk and Control Framework
Review the risk & control framework for adequacy.
Review Risk and Control Framework
The risk & control framework is reviewed for completeness and validity.
Amend Risk and Control Framework
Amend the Risk and Control Framework based on review notes and commentary.
Publish Risk & Control Framework
Publish the risk register and risk & control framework on the relevant NSF platforms.
3.2.3Compliance
Figure 20: Compliance
Manage Process Change
Managing Process Change involves any change in policy or to the risk framework should be operationalised in the processes and manuals (where applicable).
3.2.4GRC Reporting
Figure 22: GRC Reporting
Monthly Reporting
GRC Reporting involves the monthly reporting of the Governance, Risk and Compliance environment of the NSF. This includes all changes, updates and associated consultations/interactions within the organisation.
3.3003_Secretariat
Figure 24: Secretariat
Setup and Maintain NSF Calendar
This process involves interactions by the Secretary with internal and external coordinators to plan and finalise a NSF calendar that incorporates all meetings and other relevant milestone dates that form part of the NSF's governance structure.
Maintain Committee Appointments
This process involves the identification, planning and finalisation of all committees that form part of the NSF's governance structure.
Meeting Administration
This process involves all administrative tasks associated with the planning and execution of committee meetings.