Academic literature on the topic 'Eskom – Strategic planning'

ABSTRACT This article analyses the causes, outcomes, and political significance of the inter-connected operational, financial, and governance crises afflicting Eskom, South Africa’s electricity parastatal. These crises emerged in the context of African National Congress initiatives to turn Eskom and other key parastatals into instruments of an envisaged South African developmental state, through increased investment and strategic procurement to support economic transformation goals. Instead, Eskom’s spiralling costs, procurement irregularities and inability to translate increased investment into functional new infrastructure meant it impeded these goals. Its indebtedness became a severe macro-economic risk, making Eskom a precarious nexus for the circulation of public funds, while the cost and unreliability of electricity has undermined South Africa’s energy-intensive industrial core. Intertwined with this were multiple high-profile corruption scandals associated with the ‘state-capture’ controversies of the latter stages of Jacob Zuma’s presidency. The article argues that Eskom’s extreme dysfunctionality results from long-running, and as yet unresolved, contestation of the parastatal and electricity policy more broadly by various interest groups, in a context of an increasingly fragmented political and business elite. This created a range of incoherent distributional pressures and institutional constraints. Rather than a straightforward outcome of corruption and ‘state capture’, this reflects deeper tensions in the post-apartheid political economy.

Objective: The objective was to analyse the integration of and collaboration between strategic sourcing and supplier development at Eskom, South Africa’s primary electricity supplier, and to determine how strategic sourcing can be a catalyst for supplier development.Problem investigated: To address fragmented and inefficient procurement, Eskom instituted two departments, Commodity Sourcing (CS), to drive strategic sourcing, and Supplier Development and Localisation (SD&L), to drive supplier development. The problem is that collaboration between CS and SD&L has not materialised and thus their mandates have not been entirely achieved.Research design: A case study research design was employed, drawing from multiple sources of data to triangulate findings. Managers from two departments, CS and SD&L, were separately surveyed, while face-to-face interviews were conducted with executive management.Results: The findings revealed a lack of planning, implementation and monitoring of supplier development in the strategic sourcing process of CS. Although the procurement spend in CS is used to drive supplier development objectives, from the perspective of SD&L, in practice this does not fully materialise.Originality and/or value of the research: The study is unique as it focuses on cross-departmental collaboration within the organisation, rather than collaboration across the supply chain with external partners. From insights into the dysfunctional relationship between the departments, solutions for increased collaboration and effective supplier development could be suggested.Conclusion: For strategic sourcing to be a catalyst of supplier development, it is essential that an integrated strategic sourcing operating model incorporating the objectives of both CS and SD&L be developed.

We are living in an era of inconceivable knowledge, skills and talent paucity as technology continue to revolutionise the world, creating new and diverse economic opportunities and changing the perception of work, its environments and the skills and knowledge demanded in organisations. This phenomenon has resulted in global competition for skilled and knowledge workers as the new world of work morphs enigmatically, leaving organisations vulnerable, and unable to deal with this complex issue. Organisational leaders are cognisant of the changes, but are grappling with the problems of managing, retaining, and creating a resilient workforce. If talent is put onto the back burner and left unattended, it has the potential to create overwhelming turmoil in the South African economy and the economies throughout the world. The global changes will impact directly on how we approach workforce challenges in the future. Today, human capital is regarded as the distinct wealth contributor and creator for economic and organisational prosperity (Meyer, 2004). Hence, Human Capital Planning is crucial for every organisation, including Eskom, to ensure that its strategic objectives are met through the effective management and utilisation of its human resources in order to maintain its competitive advantage and ensure its sustainability into the future. Globally, as well as in South Africa, various contributing factors have resulted in skills shortages throughout the energy industry. Eskom has embarked on several growth initiatives requiring additional manpower, diverse specialist knowledge and skills-sets, and a more robust pipeline of technically qualified employees across all levels in the organisation firstly, to sustain itself, and secondly to embed the transition of a high performing organisation by attracting and acquiring the right skills and talent in the right jobs (Eskom Business Plan, 2010). Human Capital Planning is therefore crucial especially for Eskom Distribution, Southern Region to ensure that its strategic objectives are met through the effective management and optimisation of its human resources, whilst simultaneously cognisant of the changing landscape both internally, viz. within the region and the broader Eskom, and externally in South Africa and the global markets.

M.Com. (Business Management)
In February 1990 the State President of the Republic of South Africa unbanned the political organisations that were previously banned. This set the scene for full and free elections. It also brought new role players to the fore. Parastatal institutions, including Eskom, now faced the problem of having to adapt to the new environment. or face the possibility of serious intervention from a new Government. During 1990 Nedcor and Old Mutual formed a team of experts, including one specialist from Eskom, to seek alternative paths that South Africa may embark on in an attempt to foster an environment that would enhance the possibility of a successful transition to a democratic South Africa. The team produced a scenario, which became known as the "change of gears" scenario. One of the cornerstones of this scenario is a kick-start of the economy, inter alia through supplying with electricity those citizens who do not yet have access to electricity. With a view to this the Nedcor/Old Mutual scenario suggests an electrification rate of one million houses per annum. This figure was criticised because of the negative effect it would have on the balance ofpayments. The Nedcor/Old Mutual scenario was presented to many parties, including the Cabinet and the ANC Executive. Although criticism was expressed against this scenario, it served a meaningful purpose in that it was probably one of the impetuses for the ANC's national meeting on electrification and the creation of other scenarios, such as that of Van der Berg. as well as other studies such as this dissertation. This dissertation, comprises an environmental scan of the needs and wants of the parties affected by electricity and electrification. These parties were identified as: Eskom; the local authorities; the people who currently do not have access to electricity; the central government; the unbanned political parties; and the consumers ofelectricity. It has been ascertained that South Africa, in the form of Eskom, has an excess power generating capacity of approximately 25 percent; that 65 percent of the population does not have access to electricity; and that the price of electricity is low as compared to that ofthe rest ofthe world. It has also been established that in South Africa the percentage ofhouseholds (ii) electrified is approximately twice as high as that of any other country on the sub-continent. From this it was concluded that the issue of electrification is a political one, nevertheless an opportunity to improve the economy. The views of the interest groups were studied, with particular emphasis on the views expressed at the ANC's first national meeting on electrification. The views of the parties were reduced to a list of sixteen requirements/expectations. These were divided into two groups, these on which there are a high degree of consensus and those on which agreement would have to be obtained. The latter included the pricing issue for prepaid meter customers versus the other small power users; the effect of poor load distribution on the price paid by black local authorities; the gross underutilisation ofmanpower in the industry, due to the fragmented structures; the redistribution of wealth; strong Government intervention; and the question of the level ofprofits in the industry. From this follows the recommendation that the electricity supply industry be onsolidated under the Eskom structure and that the issue around electrification be depoliticised.It is also recommended that a stable rate of electrification of approximately 250 000 houses per annum be maintained.

This report evaluates the business plan at Eskom's Matla power station by comparing it to grounded theory to establish whether the strategies selected prepare the station to be competitive in a commercialised environment. It is assumed that the key success factors in a commercialised environment would be low cost operation and service delivery to meet customer demands. It is shown that the business plan is deficient in many regards, but the strategies selected are adequate in preparing the station for operation in a commercial environment. A questionnaire is used to determine management buy-in to the strategies selected to gauge support for the strategies. Reasons for strategies not meeting all objectives are also looked at and recommendations are made to improve· the business plan and the implementation of the strategies selected. The question of whether the strategies support corporate strategy is answered by comparing the vision, mission and strategies selected by the station to the vision and mission of Eskom Holdings and Eskom Generation. The findings here were that, although long and awkward, the mission statement supports corporate mission, while the vision contradicts corporate vision. Matla's vision supports growth through diversification while Eskom Holdings and Eskom Generation focus on core business.
Thesis (MBA)-University of Natal, Durban, 2002.

Thesis (PhD)--University of Stellenbosch, 2004.
242 Leaves printed single pages, preliminary pages i-viii and numberd pages. Includes bibliography. Tables and figures.
ENGLISH ABSTRACT:The aim of the proposed study was to develop an electrical utility organisational performance measure indicator that measures electrical network utilisation (U) for the actual maximum demand and total energy transferred. The scope of the study extended itself to include reliability and exogenous considerations. The scope of the research study included three primary variables with secondary variables as the performance measures. The available data was screened and filtered from outliers, and thereafter, multivariate analysis was applied in deriving the overall linear equation for each of the above primary variables. The statistical process included the application of principal component analysis and factor analysis, a comparison between the two, and the derivation of linear equations. The study produced linear equations relating to the former. The primary variables were presented in the form of a 3-Dimensional scatter plot. Each variable was inspected for linearity and clustering to validate the results and include any previously excluded outliers that complied with linear functionality. A practical application of the research findings was included. This included the extremes of linearity and clustering. The research concludes with further research opportunities in this study direction.
AFRIKAANSE OPSOMMING:Die doel van hierdie ondersoek was om 'n maatstaf te ontwikkel wat elektrisiteitsverskaffers in staat stel om die effektiwiteit en benutting van die elektriese transmissienetwerk te meet. Dit sluit die maksimum aanvraag en totale hoeveelheid energie wat deur die transmissienetwerk oorgedra word in. Die omvang van die studie is uitgebrei om ook eksterne faktore en betroubaarheidsoorwegings in te sluit. Die beskikbare inligting is gekeur en gefilter om uitskieters uit te skakel en daarna is multivariate analise gebruik om 'n lineêre vergelyking vir elk van die primêre veranderlikes te ontwikkel. Die statistiese analise het onder andere van hoofkomponente analise en faktor analise gebruik gemaak. 'n Vergelyking tussen die twee metodes is gemaak en liniêre vergelykings is afgelei. Die primere veranderlikes was gesamelik getoon in n’ 3-dimensionele grafik. Die lineariteit en groepering van elke veranderlike is egter ondersoek om die resultate te staaf en enige uitskieters wat voorheen uitgesluit is maar wel aan die lineêre verband voldoen het in te sluit. 'n Praktiese toepassing van die bevindings was uitgevoer en het die uiterstes van lineariteit en groepering ingesluit. Die ondersoek word afgesluit met 'n bespreking van moontlike verdere navorsingsgeleenthede.