PRETORIA - A plan for a turnaround of the South African Post Office (Sapo) – including the proposed shedding of more than 5,000 jobs – was presented to the Portfolio Committee of Telecommunications and Postal Services on Tuesday, SAPO said.
“We had to dig deep into the business for the plans we have devised to address the SA Post Office’s business and other operating challenges in totality," said Sapo Administrator Dr Simo Lushaba in a statement.
"Some of the challenges we uncovered relate to a business supported by an inflexible operating model and sky top fixed costs.
File: A plan for a turnaround of the South African Post Office was presented to the Portfolio Committee of Telecommunications and Postal Services on Tuesday.
"Leadership constraints and the entity’s inadequate execution capability reflect the SA Post Office’s seeming inability to match its obviously declining mail revenues with revenue growth in its other business segments, such as its retail arm.”
Lushaba said the plan, the SA Post Office Corporate Strategic Plan 2015/2016-2017/2018, was aimed turning the Sapo around and to reshape it into a customer-centric company that was competitive and engaged in commercially-viable business activities which fostered sustainable growth.
“It is a strategic intent of the plan to position the SA Post Office as a key service provider of government services to citizens of South Africa, and grow government business up from the current 33 percent of total revenue to around 50 to 55 percent,” said Lushaba.
Lushaba added that other features of the SA Post Office’s turnaround plan presented to Parliament included substantial changes to the corporate structure, which inter alia significantly reduced the number of direct reports to the Group CEO from the current 15 executives down to a total of seven, as well as new services which would be introduced in e-Commerce, logistics, retail, including improving the efficiency of mail operations to ensure alignment with market changes.
“The point is that the role of IT in business success cannot be diminished. In particular, there is a need to find ways of leveraging external expertise when there are clear signs of internal capability shortfalls, it is for this reason that the plan seeks to address the deep-seated IT challenges through partnership with service providers,” said Lushaba
He went on to say that Sapo would be shedding 5,065 positions as part of the turnaround plan, and the entity had plans to mitigate the loss of jobs by creating entrepreneurial opportunities in retail agencies, the delivery of goods, and the provision of services, and that the job losses would also be mitigated by creating new opportunities in the inspection and enforcement of regulations, mailroom management and coordination.
“In our view, this Corporate Strategic Plan ushers in a new era for the SA Post Office; increased competitiveness which stems from agile and responsive business keenly aware of the ever-changing customer needs,” Lushaba said.