Ground floor, Liberty Grande Building PO Box 6020, Parow East 7501

Corner Voortrekker Road and T : +27 (0)21 597 4970

Vanguard Drive, Goodwood, 7460. F : +27 (0)21 597 4723

www.rcsgroup.co.za

RCS GROUP
HR Team Breakaway session

May 2012
 1. RCS Business Update
CONTENT 2. HR Team Update
3. HR Team – WOW
 HR Structure & RACI principles
 Operating Model
 Our ‘dream team’ – what does it look like?
4. How do we improve? – what do we “Keep, Drop, Create”
5. HR Operating Plan & high level RACI
 be more clear on the expected outputs
 inform the basis of team plans
 Inform and update of personal goals
6. General
7. Close out
RCS Business Update
Competitor | Key Performance Indicators
R39.91 bn
R39.91 bn

R18.41 bn
R18.41 bn

R3.71 bn
R1.29 bn R3.71 bn 60%
R1.29 bn
RP RCS Capitec ABIL
RP RCS Capitec ABIL 51%
Book Size
50%
Book Size

39%
40%
34%
29%
30% 27% 27%
26%

19% 18%
20%

12%
10% 9%
10%
6% 6% 5%
3% 5% 5% 4%
3%
0%
ROE ROA PBT/Ave Book Capital Adequacy NPL

RP RCS Capitec ABIL

Results as at Mar’11 (Real People), Mar’12 (RCS), Feb’12 (Capitec) and Sep’11 (ABIL).
 Income Statement Full Year

F2012 Actual 2011 PY Actual % Change

Interest Earned Rm -R 848.5 -R 772.1 9.9%
Credit Income Rm -R 454.8 -R 383.3 18.6%
TOTAL INCOME Rm -R 1303.2 -R 1155.4 12.8%
Net Bad Debts Rm R 199.0 R 231.0 -13.9%
Operating Costs Rm R 550.7 R 468.3 17.6%
EBIT Rm -R 553.5 -R 456.0 21.4%
Interest Paid Rm R 208.5 R 180.5 15.5%
PROFIT BEFORE TAX Rm -R 345.0 -R 275.5 25.2%

BOTTOM LINE:
Last Financial Year:
* met and exceeded all expectations (profit, product performance, etc)

First month of new Financial Year:

* more pressure than we anticipated
- customer payments (CE2E);
- Loans new customers (direct marketing)
- GP Cards growth
- increased spend on operating expenses (more than we should be spending)
 Loans & Cards Update

New Programmes Update

Channel View

MOM Contribution to
YOY Advances
Marketing Source Advances Total Advances
Change
Change March

DM -5% 30.68% 9%
TM -55% 61.27% -31%
Online -40% 5.17% -15%
Retail 20% 2.88% 100%
TOTAL -37% 100% -14%
 TOTAL VIEW – GP CARD & CBC
New Accounts Action Plan – GP Card
• Additional 10 TM agents started 1 April
2012 (April target may be impacted by the
• Total new accounts for March ended 0.5% up on budget at Massbuild TM campaign that will utilize GP
6,200 Card TM agents)
• PIR to be completed on the outcome of the
• New account performance varied across the portfolios with Paid Search & Google Display test to
only GP Online, Tiger Wheel & Tyre, Busby & Galaxy understand effectiveness
exceeding target. • Unpack a POS account opening strategy,
given current struggles & the additional
4000
decrease in volume projected as a result of
new CBC launches
3500
3000
• New credit limits for GP implemented
2500
2000 Action Plan – CBC
1500 • Engage with CBC partners to ensure a
1000 standard account opening offer per
500 program
0 • Ensure credit message / card image & call
GP - Online
GP - TM

CUM

TWT
GP - POS

Coricraft
Busby

Galaxy
Spitz

to action are integrated into all CBC

partners marketing initiatives
• Test effectiveness of Paid Search &
Google Display in driving new accounts via
March Actual March Target
the online application functionality
Makro Housekeeping Elements

Application/Info
Brochure Cover
NOTE: not final
Makro Card Plastic creative
Verimark Housekeeping Elements
CTM Housekeeping Elements

CTM Card Plastic

Info Brochure & Application Form

NWJ Housekeeping Elements

NWJ Card Designs

RCS Creative within Pick ‘n Pay

Print Statement Insert

POS SMS
Banner
 Turnover Performance – Top Retailers
Top 15 Retail Partners – Had a 18% YOY growth with a 21% MOM growth. The
rest of our corporate retailers had a 5% YOY growth with a 21% MOM growth.

0%

-24%

GAME YOY 8% MOM 17% INDEPEN YOY -21% MOM 21% SPAR YOY 127% MOM 20% CTM YOY -4% MOM 21%
 Turnover Performance – CBC/PLC Partners
Current CBC/PLC programs are showing a 100% YOY growth with a monthly
growth of 14%.

MASSBUILD YOY 644% MOM -3% TEK YOY 67% MOM 19% GALAXY YOY 170% MOM 13% BUSBY YOY 360% MOM -5%
 New Business Update

Customer Service Update

Write-Off Update
 Loans NB Turnaround Time
TAT within 30 min

100%

90%

80% 75% 82%

72% 74% 72% 78% 79%
71% 77% 77%
70% 66%
60% 65%
60% Loan Inbound
50% Bench Mark
50%

40%

30%

20%
Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12

Increase due to;

1. Better on floor management of teams (focus for the month)
2. Multi-skilling underwriters to support EC.
 Cards NB Turnaround Time
GP/CBC Cards and MDD TAT

100%

90%

80% 0.74 0.75 0.78

68% 0.74 0.75
70% 70% 70% 0.72
0.64 68%
65% CARDS
60% 54% 53%
51% 52% Bench Mark
0.47 54% MDD
50%46%
41%
40% 0.42
0.35
30%

20%
Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12

Main reasons for reduction;

1. Implemented Info Architect into Alpha which resulted in high referrals, fix was done
however still saw overall impact to TAT.
2. Seen higher than normal referral to Fraud impacted TAT, since been resolved.
 Group CS Service Levels
100.00%

90.00%

80.00%

70.00%

60.00%
Cards CS
50.00% Loans CS
MDD CS
40.00%
Target 75%
30.00%

20.00%

10.00%

0.00%
Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12

• Loans and MDD Customer Service Services achieved SL

• Cards CS achieved 74.14%
 Complaints
Hellopeter Complaints
50
40
30
Number

20
10
0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar

debit order query 3

Breakdown of Top Complaints

payment query 7 27%

payment query 7

statement query 5 closed account 6 23%

balance query 5 19%

closed account 6
balance query 5
statement query 5 19%

debit order query 3 12%

• We have seen an increase in the number of complaints on Hello Peter from the month of Feb
• Main reasons due to Cards E2E conversion (statements, over-limits, payment receipts
and TFG magazine had impacts on customers).
Dispute W/off vs Budget
YTD 2011-2012
W/off to total
Budget Actual Variance cards book

R 6,255,308.86 R 6,295,929.74 R -40,620.88 0.27%

Strategic Project Office Update
 On track

On track but with some issues

Not on track
Overall Project Dashboard
Project Name PP Status Project Status

Ce2e

CSM (release 3)

Self service

Enhancements to GP Card

New Global Credit Card

PLC / CBC window 1

Galaxy account conversion

Le2e

Interim merchant settlement capability

PLL / CBL window 2

Insurance – accidental death

Information security & POPI

Human Resources Update
HCM Monthly Management Report
as of end March 2012
Monthly People Update:

a. Ensure allocation of ‘staffing’ is aligned to enable delivery of business strategic intent

i. Headcount, Staffing ratios (TBD), etc

b. Ensure RCS has the right skills, in the right place, at the right time – cost effectively
i. Recruitment update (incl cost analysis)
ii. L&D update (incl cost analysis)
iii. Terminations update

c. Ensure RCS is 1st choice employer

i. TBD ….

d. Ensure healthy organisation climate

i. Leave Mgt
ii. Health & Wellness
iii. Employee Relations
Headcount

EMPLOYEES
TOTAL HEADCOUNT
1,200

1,000

800

600

400

200

0
APR MAY
2011 JUNE JULY
2011 2011 AUG
2011 SEP 2011 OCT
2011 NOV
2011 DEC 2011 JAN 2012
2011 FEB 2012 MAR
2012
 Vacancies – Status
as of end March 2012

Business Area Candidates source

60 55
22%
50
39%
40

30
Conversion
20
9 Direct
7
10 1 3 Recruitment
Agency
0
39%
RABI
Finance

Transformation and...
Operations
Commercial

Total: 75
Recruitment Costs (April 2011 – March 2012)

R 189,754.75,
R 390,076.53, 10%
20% R 268,340.04,
14%

R 5,214.93;
0%

R 1,077,564.34,
56%

Total Cost
R1,930,950.59

Advertising Portal Italent Other Agencies Conversion

Training Cost- March 2012

Cost per Division

HCM 70,995

Finance 47,428

Operations - New Business 45,094

Risk 35,000

Telemarketing 31,470

Operations Management 20,898

ICT - Business Systems 20,440

Operations - Training & Dev 8,999

Legal 7,500

Insurance 7,100

Executive 4,532
 Exit Interviews – Summary of Analysis
January - March 12

Reasons for Leaving Business Area

Generally Better
prospects elsewhere

Higher level position

Elsewhere

7% 13% 13%
Reason Not Disclosed
13% 27%
Relocation Commercial
13% 27%
Finance
Operations
Other
7% 13% 7% Transformation & ICT

Better Remuneration 13%

Elsewhere 47%

Discomfort in Changes

Further my education
HR Team Update
HR – Journey so far ..

 HR team been changing ‘constantly’ for many years .. Always in response to

changing needs of the organisation (growth, formality / governance, etc)

 Latest stage of evolution initiated in October 2011 .. In support of the People Strategy
that is required to ensure that we deliver the 1:8:8 business strategy
HR – ‘AS WAS’

 Good focus on supporting business when only HR Generalists

 Starting to pick up traction on a number of areas of delivery (eg support for MDD,
SOPS, etc)
 Better processes & admin within team – more confident re ability to deliver
 ?? Personal growth within HCM team through better focus on areas of
specialisation; personal development opps
 Continued optimism & inter-personal support within HCM team, in spite of the
changes
 Starting to turn data into information (eg monthly GMF reporting (workforce, trg,
recruitment)
 Have initiated ESS pilot .. The show is on the road!!
 ??
HR – ‘AS WAS’
× Need dedicated focus within the team to ensure ability to deliver to business
requirements – need to ‘create’ tools / products / processes
× Need to accommodate personal growth objectives of key team members
× Started to make changes to HR org design – ‘unfinished’ business
× Loss of momentum in terms of delivery against HCM tactical plans
× Loss of focus on business eg no standardised processes; lack of opportunity to
provide employee & line mgr advice; cowboy activities resulting in unnecessary
ER activity; lose touch with business status (progress, plans)
× No measures to help guide HCM focus / priorities
× Processes very dependent on ‘human’ management (eg recruitment / job offers)..
Changes in roles resulted in breakage of some of the existing processes
× ??
 The Ulrich People Management Framework

HR practitioners want to reposition PM from Administrative Expert to

Change Agent and Strategic Partner
Strategic
(long-term)
Formulating and Creating a renewed
executing strategy organisation

Strategic Change
Partner Agent

Process PM People
Roles

Administrative Employee
Expert Champion

Building an efficient
Increasing employee
infrastructure and
commitment and
provision of technical
capability
expertise
Operational
(day-to-day)
HCM Strategy
TMgt Cont: Talent Mgt
Assessments Recuit pol
ICT / SPO Assessmts
Trg providers
L&D fwk & ladder
Recr Sourcing

Proposed Roles ..
& cal &
Facilities knowledge mgt &
e-learning
CTO
SETA rel
WSP
Sustainability EE
CSI Retention
BCP HR Mgr Workforce
PA planning
HR strat
HR policies
HR Bus Ptr HR Risk Mgt
GMF rep Exec Pay
BP to GMF / Exco Remcom
HCM / bus HCM Forums
alignment & plans HCM tactical plans
Ensure efficient & OPM
integrated admin
HCM Manager HCM Manager
GMF

HR Bus Ptr – BO
(?) HR Bus Ptr - Ops Rem & HR MIS & Employee Wellness, Talent
HO Ben IT co-ord OH&S,
Relations Mgt
HR Bus Ptr – Healthcare
Commercial Ben
CC
HR Admin Mgr
HR Bus Ptr
Stores stores
Payroll Wellness
& Rem
supervisor admin
Sales HR Admin Recruit Admin
ELC, EE (incl Payroll adm Biokin * ½?
Admin
Func & benefits, recog) Nurse * 2
Tech trg – Payroll adm
IR, Trg,
in Bus OPM
Rem&Ben Payroll MIS & IT Wellness ER
Job grading Payroll Intranet & Wellness IR
RemChannel Leave Internet for Healthcare Labour leg
HR Gen / Admin - LM relationship / EE relationship Pay surveys Bank recon HR benefit CCMA
Bus strat / people mgt strat & rqmts re new policies, processes Job offers (CTC) 3rd party pymts HR sys (SS, OH&S Unions
Facilitate org design, job profiles, Variable pay SARS doc mgt) Evac plan Contracts
Talent Mgt: Recruitment, Orientation, Trg needs analysis & ensure trg available; trg admin; career Prov fund mgt GL acct recons Reporting & (templates)
path mgt (incl claims) Tax & analysis Policies
Manage ELC events (new hires, contracts, staff moves, exit interviews) Retirement plg legislative chgs Manpower (structure,
EE self service support Leave mgt planning stds)
Ben mgt (gifts,
VIP superuser IR trends
SOP advice (eg benefits eg mat);
IR mgt (advice, process); l.ong serv(ice) POPI
OPM Recognition)
Retention & Succession Mgt ER Cons:
Rem Cons: Labour
Job Grading Lawyers
Pay strat (GP, VP)
Recognition
HR – Current status..

 HR team restructure completed .. & day-to-day changes will continue to happen in a

‘normal’ way

 HR role clarity, way of working, process re-engineering an on-going part of our

everyday lives

 Need to entrench operational practices into everything that we do (back to basics in

all of the HR processes)
Role Clarity .... & RACI

 HR team roles have fundamentally changed – as our processes have had to become
more formalised and scalable to meet the needs of the business

 Resultant roles and way of working has been fundamentally affected ..

 RACI methodology to help us be clear on how to work better .. Need to internalise

this across EVERY piece of work that we do (recruitment, benefit design, manpower
planning, etc)

Responsibility

Accountability

Consulting

Informed
HR – Key Achievements ..
 Makro staff takeon : recruitment and payroll takeon (600 applicants, 95 people appointed across the whole
country; last minute deadlines for orientation programmes, etc)
 Document Scanning initiated and (almost competed)
 Re-engineered recruitment process ..
 Recruitment agencies – selection process
 Job grading
 Payscales & rem Review & Annual salary review
 Cleaned up payroll & admin processes in response to audit issues from last year
 Attention to detail in responding to queries regarding pay
 Amakhanya
 Competency framework, Leadership Development programme principles
 Recruitment assessments & pilot of new Assessment Centre
 Pilot of situational leadership programme
 Initiated HR VIP project – wip
 Manpower planning
 Formal weekly & monthly reporting practices
 Launch of the HealthHUB
 Active management of Risk Benefit claims and several other Chronic illness cases
 SOPs
 Busienss Partners – pickng up and smoothing out our ‘battles’ on the floor
 Complete HR team in place (outstanding vacancies from the restructure) have been filled; Better sense of
purpose within the ‘new’ HR team – roles more clear
 Making one another ‘look good’ with better information being presented
 Admin support from Laa’iqah .. Get all the ‘show-horses’ to perform together!!
Our Dream Team ..
People Strategic Intent & Operating Plan
People Story .. Strategic Intent

We will be a great place to work with high calibre, competent people

who exude positive energy & who are meaningfully engaged

– I am INSPIRED by the RCS vision and strategy

– I know where I fit in, what is expected of me and I feel MEANINGFULLY
ENGAGED
– There is congruence between my PERSONAL ASPIRATIONS, values &
competencies and those of RCS
– I UNDERSTAND THE RULES of the game, the parameters within which I need
to work
– I know how I am performing. I am empowered. I fell accountable for the
consequences of my decision & I am set up to DELIVER MY BEST
PERFORMANCE
– I am competent, challenged by my work and I have OPPORTUNITIES for
personal learning & development
– I work in a comfortable environment, have easy access to the tools & information
I need to do my work and I am FAIRLY REWARDED for my performance & my
contribution to the success of RCS
Organisation Context

1. HR support of the business strategy / planning

2. HR organisation performance framework & implementation
methodology
3. HR operating plan
Functional Planning Template – HCM / Sustainability / Facilities
Initiatives in Support of Big Rocks Top 5 - Specific Functional Initiatives

Initiative Due Initiative Due

Self Service: Aug12
Employee Self Service Organisation Performance May12
Framework (competencies, org
design, performance mgt,
Africa strategy: ??
development, reward, etc)
Employee legal and tax
frameworks HR process re-engineering & VIP Aug12
Group Structure: ?? implementation
Employee & ICT Contracts
HR Management reporting Apr12
POPI: ?? framework
Employee life cycle processes (eg
recruitment, etc) Fleet & Travel policies May12
Buildings: ??
Durban, Isando, House Rules for Sustainability framework Sep12
mgt of all buildings
RCS Organisation Performance Model
ORGANISATION DEVELOPMENT
CLEAR PURPOSE

Business
Processes

DE
LIV
E
RR
Job Organisation Business
Design Design Scorecards

ES
MANGAGED PERFORMANCE

UL
Sustainable
INSPIRING CLIMATE

Reward

TS
BUSINESS STRATEGY

Employee &
Relationships Reward Recognise
Strategy

Employee
Shared Employee Managed Performance
Value
Values Wellness Careers Management
Proposition

ST
Career

RA
Employee Management
Engagement Development

T E
Needs

GY
R
Acquire Competency Retain

E
Talent Framework Talent

VIE
W
&R
Develop

E-
Talent

ALI GN
OPTIMISED TALENT
CHANGE MANAGEMENT
HCM Operating Plan:
Organisation Performance Model – ‘implementation methodology’

Talent Management

t
uuitmeenn

nniing &
(including Career, Succesion Management)

aards
menntt

t
ee Taleenn
Performance Management

e Recr

e Leeaarr
ppm

e Rew
Devveello
Competency models & Leadership Dvmt Framework

Mannaag
Mannag

Managg

Maanagg
D

M
M
Job Profiles, Job Grading, Rem (payscales, etc)
 HCM Team Operating Plan

Rewards & Benefits Due

Org & Job design Implement job grading & job titles Apr12
Remuneration Implement Guaranteed Pay – payscales May12

Implement principles for salary review – linked to Oct12 /

performance mgt & affordability model Jan13

Review principles of TCOE; determine RCS rqmts & plan Sep12

approach

Review principles & design for Variable Pay (STI and LTI) – Jun12
include context of possible listing
Recognition Review principles for recognition – consider upgrades for Jul12
Amakhanya programme; determine recognition approach for
rest of business Oct12
Benefits Review principles & policies for all benefits & update SOPS Aug12
(include leave, risk benefits, etc)
 HCM Team Operating Plan
Talent Management Due

Recruitment Re-engineer recruitment principles, policies and processes; Mar12

Implement Apr12
Review alternative sourcing options (including portals, social Oct12
networks, tech-based ‘self service’ options
Wamkilekile Re-engineer onboarding and orientation programmes Apr12
Implement May12

Learning & Development & Skills Dvmt Develop Leadership development framework; determine curriculum May12
(WSP) plan; determine delivery mechanisms (blended learning?)
Implement (including Training Admin processes) Jul12
Identify additional SETAs with whom we can align Sep12
Identify ways in which RCS can benefit from SETA funding Sep12
Management of Terminations Re-engineer termination process May12
Implement May12

Performance Management Develop PM process aligned to the Leadership Dmt framework Jun12
Implement for Execs and Snt Mgt
Implement ‘simple’ PM process (goal setting) for rest of org Jun12
Implement PM processes for rest of org
Jun12
Jan13

Talent Management, Career Design & implement TM process for Snr Mgt Sep12
Development, Succession Management

Employment Equity Build 3-year plans Jun12

 HCM Team Operating Plan

Employee Relations Due

Align RCS ER policies to Determine impact of changes in legislation Apr12
changing legislation Implement ongoing
POPI (HR implications) Determine impact of changes Jul12
Implement Mar13
Foreign country operations Determine impact of legislation changes in foreign territories Sep12
Implement
Standardisation of employment Determine principles for work practices that will support Aug12
contracts future ways of working (align to business strategy,
demographic of employees, etc); determine principles for
contracts that will support this
Implement From Sep12
Management of HR Implement a compliance reporting framework Apr12
compliance
 HCM Team Operating Plan

Health & Wellness Due

Proactive education and mgt of Implement campaigns as planned From Apr12
H&W
H&W programmes to Regions Implement rollout plan From May12
Mgt of Medical Aid Review and implement changes in processes to ensure all From Apr12
employees correctly linked to Discovery programmes
Resolve KeyCare issue From May12
Review principles regarding provision of Medical Aid Oct12
benefits to employees, and conduct market review /
benchmark as baseline to decide best option for RCS
 HCM Team Operating Plan

Org Dvmt & Due

Change Mgt
Support line managers & Develop models to support the business re OD Jul12
employees to ensure alignment interventions Oct12
of work & management of Develop change management methodology Dec12
changes Develop methodology to support effective engagement of
employees Sep12,
Conduct employee satisfaction survey Jan12
Support ‘big rocks’ strategic Provide Change Management support to strategic initiatives Ongoing
initiatives
 HCM Team Operating Plan

HR ‘engine’ Due
Use technology to enable more Implement VIP HR system Jul12
efficient mgt of HR processes Implement ESS May12
Implement document scanning project May12
Identify ways in which remote sites can get access to the May12
intranet
Ensure efficient and effective Implement ‘controlled self assessments’ for key HR Aug12
HR admin processes (buddy-checking) and checklist-based HR
management practices to ensure that adequate controls are
in place
Payroll Ensure accurate and timeous processing of all payroll ongoing
actions, including the management of financial pay-aways,
tax recons, etc
HR MIS – reporting and Implement a reporting framework that will enable the Jun12
analysis of HR information for provision of HR-related info to line managers and
the business and HR employees
Implement a reporting framework that will enable the Jun12
provision of information to support the effective
management of HR processes
 HCM Business Calendar

A M J J A S O N D J F M

Business Strategy &

Planning

Performance &
Careetr Mgt

Talent Mgt

Succession Planning

Employment Equity
report submission

Workplace Skills Plan

submission
 HCM Team – Personal Goal Setting

Using the HR Operating Plan as context, develop your own PERSONAL

PERFORMANCE CONTRACT for the year ahead:

1. Looking back .. Key achievements for the past year

2. Looking forward .. What are the key goals that I need to achieve for
the year ahead:
a. What work / outputs
 Specific
 Measurable
 Attainable
 Relevant
 Trackable
b. What new skills do I need in order for me to be able to deliver
these goals
c. What other support do I need in order for me to able to deliver
these goals
Ground floor, Liberty Grande Building PO Box 6020, Parow East 7501
Corner Voortrekker Road and T : +27 (0)21 597 4970
Vanguard Drive, Goodwood, 7460. F : +27 (0)21 597 4723

www.rcsgroup.co.za

Thank you
Sales
New CBC & PLC
Makro / CTM / Verimark & NWJ
PLC Product Update
INTERACTIVE MESSAGING COST REVIEW
xx
xx