Tuesday, 16 April 2013

SAMPLE STRATEGIC DOCUMENT BY AZIZ BAMPOURI WITH SSNIT


                                                                                                                                     
STRATEGIC PLAN



    

EXECUTIVE SUMMARY
ROLE AND MISSION
ROLE; The Trust has a decentralized operational system made up of the Area, Branch and Day offices. An Area operations Department at the head office co-ordinates the activities of the Area Offices and to;
·         Collection of contribution.
·         Keeping records on members.
·         Managing the funds of the Scheme.
·         Processing and paying benefits to eligible members and declared dependents. 
     MISSION; Social Security and National Insurance Trust (SSNIT) is committed to providing cutting-edge income replacement schemes, to Ghanaian workers and their dependants in the event of old age, permanent disability, or death through a motivated staff and diligent leadership.

IMPACT OF SSNIT
The Trust was established in 1972 under NRCD 127 to administer the National Social Security Scheme. Prior to 1972, the scheme was administered jointly by the then Department of Pensions and the State Insurance Corporation. The Social Security Law (PNDC Law 247) under which the current Social Security Scheme operates was passed in 1991. Until 1991, the Trust administered a provident fund, and this was converted into a pension.
The social security and Insurance Trust (SSNIT) is a statutory public trust charged with the administration of Ghana’s National Pension Scheme. The Trust is currently the largest non-bank financial institution in the country. The primary responsibility is to replace part of lost income due to old age, invalidity, or loss of life.
It has a registered membership of approximately one million with over 58,000 pensioners who currently collect their monthly pension from SSNIT.


OBJECTIVES AND TARGETS
OBJECTIVES
TARGET
·         Process and pay benefits accurately and promptly;
1.      Average Processing time (days)
2.      Error Rate (%  error)


·         Improve data integrity;
1.      Percentage of members credited through contribution reports.

·         Improve contribution collection and reduce indebtedness;
1.      Contribution
2.      Compliance Rate (employer)
3.      Compliance Rate (worker)
4.      Reduce indebtedness to expected contributions.

·         Expand coverage;
1.      New worker registration
2.      Number of active member (formal sector)

·         Enhance operations and service through effective use of State-of-The Art Technology.

·         Improve customer service delivery


34 days

1%



85.0%





GH₵665.23 Million
85.0%
90.0%
4.0%



138,517 workers
1,069,568 members




STRATEGIES
·         Lobby for legislation to compel employers to produce clearance certificates to transact business.
·         Train managers and staff to improve their efficiency in the use of the modified E-BOS and improve the monitoring effectiveness of the managers.
·         To liaise with IT for the automation of benefits processing at all levels.
·         Implement and equip the member Accounts units in all branch offices and operations co-ordinator’s office to effectively monitor the quality of Data input and output.
·         Emphasize creating of members Account and Crediting of contributions collected (suspense clearance) in the assessment of Branch performance.
·          Improvement effort especially in the under listed areas;
1.      Contribution report submission/retrieval
2.      Correction of invalid numbers.
3.      Registration of Workers.
·         Liaise with Registrar General’s department for newly registered companies.
·         Replace old printers, UPS and the provision of adequate computers.
·         Train staff on the IPAS in readiness of its implementation.
·         Continually decongest grade A offices by opening more branches.

THE KEY RESULT AREAS
The Trust (SSNIT) made significant gains on the investment front and had recorded a real return of 10.9% in 2011 a remarkable improvement on the 2010 performance of 4.3% and again improved marginally in 2012. Compared with the actuarially determined minimum real return of 3% per annum as the standard for a long term-sustainability of the scheme, the above achievement is very remarkable.
The improvement in the area of profitable is attributable to first and foremost the steady rise in the pension population over the years. This increase in the population over the years led to a steady growth in contributions.
The improvement in the investment portfolio of the Trust which now stands at GH₵ 2.2 billion (representing a growth of 32% over the 2011 performance largely due the operational efficiency of the trust in a form of improvement in collection capabilities and reduction in operational cost.
Shareholders benefited relatively well from their investment in the institution over the period under review. Shareholders enjoyed a return of 21.05% on their investment in 2010. This figure was however down to 15.52% in 2011 and 13.14% in 2012.
The Long-term solvency was on the debt to equity ratio of the trust was zero (0) throughout the period. This means that the trust financed all of its operations using equity instead of a mixture of the debt and equity.
This situation is very normal with such an entity considering the level of inflows available from contributions. The trust can sufficiently meet its financing needs without external sources of funds.

CORPORATE POLICIES
The Trust’s corporate policy provides guidelines for investment of the pension Funds in various sectors of the Ghanaian economy.
The corporate policy of the Trust which is to consider it investment takes into consideration the under-mentioned major requirements of investing Social Security Fund;
·     Safety; Investments should be in low risk ventures.
·     High yield; The returns on the investments should be appreciable.
·   Liquidity; Ensuring that certain level of investment is maintained in cash ratio to enable the Trust meet its obligations when they are due.
·   Maintain of Assets value; Ensuring that the value of the investments is not eroded by an inflationary economic environment.
·     Harmony with public Interest; Ensuring that some of the investments are geared towards the achievement of economic development programmes as well as providing physical benefits to the public.
·   Diversification; Ensuring that the portfolio mix is adjusted in the light of changing environmental circumstance.

RESOURCES REQUIREMENTS
FINANCIAL; SSNIT is self-financing through the contribution of employers and employees and investment income on the funds which is determine by the number of registered worker and their commitment to their contribution, that shows the level of SSNIT financial performance.
PHYSICAL; In the increase volume of registered employees/worker at SSNIT, the Trust is been pleasure of in terms of their physical structures to be increases to serve like; building of offices for staff, extending of some area offices, and other physical welfare needs.
HUMAN; The human resource is the basic resource needs of every organisation like SSNIT in providing good customer service by which new recruitment of workers and retraining staff (in-service), that goes with the policies and new development developed at the Trust.
TECHNOLOGICAL; The Trust with the large of number of data keeping of employees/worker and other financial data, it has developed new style data storage and data collection in electronic form (computerization) for management action and other development.

BUDGET
The aspect of managerial decision of the Trust which involves the expression of the organisation future operation and financing decisions in a quantitative and qualitative plan of action. In three (3) years budgetary plan for 2010, 2011, and 2012 is been summarized in common size statement detailed;

2010
%
2011
%
2012
%
Contribution received

100
100
100
Net Investment Income

35.52
27.49
43.80
Other Income

2.66
2.01
1.19
Operational Cost

6.60
6.82
7.90
Pensions

39.02
30.41
27.84
Surplus of Income over direct cost

92.55
92.27
109.92
General and Administration expenses

8.29
7.91
8.17
Transfer to National Health Insurance scheme

14.28
14.28
14.28
Net Surplus
69.97
70.06
86.77
*The budgeted contribution earns for the year 2011 based on the Grand Total of GH₵893,329.641.96.


ECONOMIC OUTLOOK OF THE PLAN
With SSNIT economic out lock on the country’s macroeconomic policy for economic growth and development which is realised on the vulnerable and the less privilege of the society.
The Trust three (3) years investment target for socio-economic impact for Protecting the Vulnerable;

2010
2011
2012
Economically Targeted ;
ETI Expenditure (USD)
Investment (GH₵ m)
SSNIT Investment;
Portfolio (GH₵ m)
GDP (GH₵ m)
SSNIT Investment;
Portfolio/GDP
Growth in SSNIT ;
Investment Assets

100.92
104.03

1,097.15
11,490.00

10%

39%


137.56
111.42

1,521.54
13,976.70

11%

58%


151.31
107.16

2,406.78
17,211.70

14%

14%


 Allocation off 5% off SSNIT’s Portfolio to Economically Targeted Investments (ETI)
2012 Figures are projected;
The SSNIT Levy off 2.5% to NHIS

The Government of Ghana in 1993, established the National Health Insurance Scheme to provide affordable Basic Healthcare services to Ghanaian residents especially the poor and vulnerable.
Through SSNIT Portfolio;
The SSNIT Pension Scheme through its Asset Allocation continues to provide:
• Student’s Loans to tertiary Students in the country with a portfolio of GH₵ 193.9 million
• Credit Extension to Small and Medium size Enterprises (SMEs) through its corporate loans,
• Provision of Student Hostels.
On all the investment made to the vulnerable, it will improve the educational system and health service delivering in Ghana and primarily, pension benefit which reduce the in capabilities of the old age and invalidity after their services to the nation.

CORPORATE MISSION STATEMENT
The corporate mission statement of SSNIT as institution/organisation state that; ‘’Social Security and National Insurance Trust (SSNIT) is committed to providing cutting-edge income replacement schemes, to Ghanaian workers and their dependants in the event of old age, permanent disability, or death through a motivated staff and diligent leadership.’’

ENVIRONMENT ANALYSIS
SSNIT on their strategic plan is drawing on the nature of the economic climate of the country which projects the following macroeconomic indicators for the year 2010 to 2012. Show below;
Selected Macroeconomic Indicators in Ghana (2010 to 2012)
All Figures in %                                         2010   2011   2012
Real GDP Growth                                      4.2     4.5     5.2   
Agriculture (Growth rate)                            4.4      6.1    7.5
Industry (Growth rate)                                 2.9      4.7    5.1
Service (Growth rate)                                  2.9      4.7    5.1
Average Growth (All Sectors)                  4.6      5.3    5.8
Inflation
Annual average                                            32.9   14.8   26.7
End of period                                               21.3   15.2   23.6
Government Revenue (% of GDP)
Total Revenue                                              18.1   17.9   20.8
Tax Revenue                                                17.2    17.3 20.2
*** Please, Sir is just a projection from me but not a fact.

These macroeconomics indicators has let the organisation strategically in implementing and formulating policies to safeguard their investment at the stock market, base on Capital Market Policy and Regulatory policy making.
PLANNING ASSUMPTION;
  • To protect the Financial Assets of the organisation.
  • The plan is assumed to cover a period of three (3) years.
  • Favourable for stakeholders to take decision.


CORPORATE OBJECTIVES AND TARGETS
OBJECTIVES;
·         Collate and submit draft estimate of various departments/divisional budget to Government operational unit.
·         To prepare draft divisional action plan for Government operation (GM (Ops)) by the end of the year.
·         Analyse operational performance of the Area offices and recommend new initiatives zany strategies on a quarterly basis.
·         In reviewing minutes of monthly durbars held at both Area and Branch offices and initiate relevant action as issues rose.
·         Review reports on Consultative meetings between Area/Branch Managers and initiate relevant action on issues raised (bi-annually).
·         Prepare Quarterly Progress reports on operational activities for the executive/Board by 20th of the ensuring month.
·         Review offices inspection reports from Area managers and initiate relevant action plan on issued raised.
·         Initiate, implement and monitor new strategic initiative for the division.
2.4.2. TARGETS;
The Trust (SSNIT) target was for the 2010/2012 is based on the contributions target and the establishment and worker registration target are detailed as follows;
Contribution Target;
SSNIT contribution target for the year 2010/2012 based on 18.5% of contributions collection is GH₵893,329,641.96 and it summering of it detailed;

CONTRIBUTION CATEGORY
PROVISIONAL BUDGET 2011 (GH₵)
BUDGET 2009 (GH₵)
VARIANCE (GH₵)
% CHANGE
Government
Private
Sub vented
494,283,279.48
378,854,860.07
17,828,213.16
278,337,624.04
296,133,944.05
14,160,886.10
215,945,652.44
82,720,916.02
3,667,327.06
77.6
27.9
25.9
SUB-TOTAL
890,966,349.71
588,632,454.19
302,333,895.52
51.4

Others;
Penalty
Lost Card

2,360,706.13
2,586.12

8,777,032.12
4,178.40

(6,416,325.99)
(1,592.28)

(73.1)
(38.1)
SUB-TOTAL
2,363,292.25
8,781,210.52
(6,417,918.27)
(73.1)
GRAND TOTAL
893,329,641.96
567,413,664.71
295,915,977.25
49.5

*These targets are to be seen as challenges and strenuous efforts made in achieving them in order not to jeopardize the scheme. Management will ensure the provision of the appropriate logistics in due course.

ESTABLISHMENT AND WORKERS REGISTRATION TARGETS;
AREA
ESTABLISHMENT REGISTRATION
WORKER REGISTRATION
MONTHLY TARGET
ANNUAL TARGET
MONTHLY TARGET
ANNUAL TARGET
Accra
Tema
Kumasi
Takoradi
Koforidua
Tamale
Sunyani
158
82
61
40
32
39
30
1,836
984
732
480
384
468
360
3,043
1,565
1,708
1,130
845
813
750
36,516
18,780
20,496
13,560
10,140
9,756
9,000
TOTAL
437
5,244
9,854
118,248
*The total for both ESTABLISHMENT REGISTRATION and WORKER REGISTRATION are 10,291 for monthly target and 123,492 for annual target.


SSNIT STRATEGIES AND ACTION PLANS AND PROGRAMMES BY KEY DEPARTMENTS
STRATEGIES
ACTION PLANS AND PROGRAMMES
DEPATMENTS

ü  Improve the service skill competencies and attitude of Operational staff through continuous training programmes on;
o   National pension Act 2008, Act 766
o   Attitudinal  change and customer care
ü  Set up and resource customer Service Unit for all Branch Offices to enhance customer satisfaction at the Branch offices
ü  Effectively monitor mystery shopper Exercise to ascertain;
o   A feedback from customers
o   Identify training needs of staff
o   Reward customer friendly staff
o   Sanction staff who offer poor service









ü  Provision of Financial data on members.
ü  Use SSNIT generated statements of Account for all Benefits calculations.













ü  Enforce compliance on contribution reports submission under Act 766
ü  Fully implement the Gate keeper concept for effective Management of contribution reports







ü  Address systems and Resource Requirements.

Ø  Re-train operational staff in the following operational areas on the E-BOS;
§  Registration of Members
§  Receiving of contribution reports
§  Identifying members with multiple registration
§  Correction of invalid numbers
Ø  Continue the training programmes for operational staff on the National Pension Act
Ø  Concentrate on the following member focus areas;
§  Inspector/members ratio
§  Relation with members
§  Regular interaction with members
Ø  Resource customer Care Unit at Branch Offices to assist claimants with Benefits processing
Ø  Train Help Desk staff at Benefit Department to handle customers
Ø  Educate employers on provision f Act 766.

Ø  Revamp Member Data update (Age 54 plus) activity
Ø  Strengthen IT Desk at Benefits Department
Ø  Compile all members who are not on pension/records system for contact to complete dummy cards
Ø  Retrieve data and update all financial records

Ø  Resolve all outstanding system inadequacies related to update of data on pension/records system
Ø  Ensure that benefits processes and procedures are complied with
Ø  Prosecute establishments for non-submission of OCR’s for over three (3) months
Ø  Place high premium on retrieval and capturing of OCR’s
Ø  Redirect the time, effort and resources of the Branch offices to the critical areas of our operations as follows:
§  Crediting of members Account
§  Managing the suspense Account
§  Expansion of coverage
§  Retrieval of Arrears

Ø  Ensure that mailing system is effective by concluding service level agreement with Ghana Post Co. Ltd on mail Delivery.
Ø  Facilitate the Unification of IT database platforms
Ø  Identify skills and competences of staff and adequately resource Branch Offices and Benefits Department
Ø  Ensure that all issues involving E-payment by ECOBANK are resolved and extend the E-payment to cover Old Age and Survivors, Lump sum
Ø  Review the Benefits processing Manual to take account of Act 766 issues

GM-OPS, CO-ORD., GM-HR&ADMIN., GOV’T OPS MGR, COMP.&PROS. MGR. BENEFITS MGR, AREA&BRANCH MANAGERS























Area and Branch Managers, OPS., Co-ord., Gov’t OPS., MGR





Branch Managers, Benefits MGR.

GM, MIS

Benefit MGR

Area and Branch Managers, Comp. & Pros MGR, Gov’t OPS. MGR

















GM-HR&ADMIN


GM-MIS, GM-FIN., GM-OPS



GM OPS QUALITY CONTROL MGR. BENEFITS MGR


ORGANISATIONAL POLICIES/OPERATING POLICIES
OPERATION; SSNIT with operation carried by the operation department by which is in charge to formulates operational policy and strategies which will help in monitoring and controlling all affairs of area and branch Offices for efficient performance in achieving organisational goals.
FINANCE; The Trust effectiveness and it efficient of financial data on member and accuracy in financial data collection to know the total realised by the Finance Department by which it will help in the policy formulation on their investment to increase profitability. The trust placing in the stock market will attract more investor to have shares with the favour environment for invest and to their turns.
HUMAN RESOURCES; Human resource being the key to organisational manpower planning by recruiting competent staff for the Trust for the various division structured and giving out in-service training to staff through seminars and workshops to make them efficient and effectives in job delivering. Updating staff on new reform and development to build staff industrial relation and that will conform the polices implemented.
MIS; The Trust has adopted and equips the staff with modern ICT and State-of -The-Act Technological working tool and device (computers, internet, easy phone and other electronic medium in receiving and sending information). In implementing the use of E-BOS, partnering with ECOBANK to accept E-Banking, and creating of database to members for effective data collection and records keeping.
CLIENT AND CUSTOMER UNIT; SSNIT target for their customers, it designed policy by the client and customers unit with the operational department to respond to customers request and motivating them, and monitor staff behaviour and sanction staff with it poor service to customer on notices.

RESOURCE
FINANCE; SSNIT is self-financing through the contribution of employers and employees and investment income on the funds which is determine by the number of registered worker and their commitment to their contribution, that shows the level of SSNIT financial performance.
PHYSICAL; In the increase volume of registered employees/worker at SSNIT, the Trust is been pleasure of in terms of their physical structures to be increases to serve like; building of offices for staff, extending of some area offices, and other physical welfare needs.
HUMAN; The human resource is the basic resource needs of every organisation like SSNIT in providing good customer service by which new recruitment of workers and retraining staff (in-service), that goes with the policies and new development developed at the Trust.
TECHNOLOGICAL; With SSNIT large of number of data keeping of employees/worker and other financial data, it has developed new style data storage and data collection in electronic form (computerization) for management action and other development.



KEY ASSUMPTION
The planning assumption for 2010 is base on the operational contributions collection, establishment/workers registration targets and the assumption are developed from;
·         5% increase in contributor population projected in the year was estimated. However, Branches were advised to use their own realistic contributing membership growth rates.
·         National salary growth rate of 20% in the year was estimated.
·         Two-thirds of the total sub vented establishments would be absorbed onto the Controller & Accountant General’s payroll in the year.
·         Total contributions of 18.5% of basic salary based on Act 766.
·         13.5% of the total contributions to the First-Tier Mandatory basic National Social Security (SSNIT).
·         The apparent low penalty retrieval performance of 40.1%of the 2011 estimated actual of GH₵3,518,972.14 against the 2009 penalty target of GH₵8,777,031.96 was considered.
·         It is expected that if adequate and appropriate human and material resources are provided we may be able to increase target performance to about 20%.
These assumptions are based on the estimated actual contributions collection for the year 2011 and the individual peculiarities.


REFERENCES
Google Search
SSNIT Organisational Profile
SSNIT Operational Manual
SSNIT Plan Manual
SSNIT Wedsite; www.ssnit.gh.com


APPENDIX
DEFINITION
THE TRUST; administered a provident fund, and this was converted into a pension scheme.
THE SCHEME; Is a Social Insurance Scheme under which members contribute during their working life and receive benefits in the event of Old age, Invalidity, or in case of death, the member’s dependants receive a survivors’ Benefit.
OLD AGE PENSION; Member of the scheme, who retires at age 60.
INVALIDITY; A person who is totally incapable of earning a living by way of work.
SURVIVORS’ LUMP SUM BENEFIT; To paid in a lump sum to the nominated of a member upon his/her death.

ABBREVIATIONS
AFIS                     Automated Fingerprint Identification System
BOS                      Board of Studies
ETI                        Economically Targeted Investments
EMAR                  Employer/Member Account Reconciliation
GDP                      Gross Domestic Product
GM                       General Manager
HITC                    Hughes Information Technology Corporation
HR                        Human Resource
IPAS                     Integrated Product and Service
MGR                     Manager
MIS                       Management Information System 
NHIL                    National Health Insurance Levy
OPS                       Operation
SMEs                     Small and Medium size Enterprises
        SSNIT                   Social Security and National Insurance Trust        



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