10.1 Strategic Intent

The strategic intent is to position City Power Johannesburg (Pty) Ltd as RED 4. The success of City Power will depend largely on the following imperatives:

• To maximise network performance
• To provide a high quality of supply
• To provide a high quality of customer services
• To provide information on the right time, at the right place, to the right stakeholder

10.2 Company Goals

To attain our vision as a world-class electricity Company striving for the social and economic development of the Region we have set ten goals. They are:

• Goal 1: To exceed customer expectations
• Goal 2: To maximise the utilisation of our assets
• Goal 3: To be the most profitable electricity distribution utility in South Africa
• Goal 4: To sustain and grow our revenue base
• Goal 5: To meet our stakeholders' expectations
• Goal 6: To provide access to electricity for everyone
• Goal 7: To cost effectively meet national and international standards with regard to supply of electricity and customer service
• Goal 8: To have the most favourable public profile of any Company
• Goal 9: To implement enabling information management systems
• Goal 10: To build a high performance workforce that reflects the diversity of our society

To ensure that the goals are translated into actions, the Balanced Scorecard Methodology will be implemented in City Power. Linked to each goal are strategic objectives and key performance indicators are linked to each strategic objective (refer to section 12 for key performance indicators)

The diagram below depicts the linkages of the goals to the balance scorecard perspectives

10.3 Journey

City Power journey towards its vision has been mapped against key milestones:

• Milestone 1: At the time of writing this business plan City Power had as yet not taken over its customers from Council for the purpose of account operations and customer service. The plan is to take over the top 20 000 customers by July 2001.
• Milestone 2: The next milestone is the implementation of a financial and customer service information system (SAP). This will enable City Power to take over the remaining 230 000 customers and manage its finance better
• Milestone 3: Taking over of all the remaining customers from Council
• Milestone 4: City Power needs to make investment in the short term to build business capabilities and to invest in network refurbishment. The result of this is that the company will not be profitable for the first two years of its operation but will become profitable by 2003
• Milestone 5: This is the stage that City Power is fully competitive and in a position to compete for customers

10.4 Business Strategies: Jan 2001 to Jun 2001

The business strategy for the first 180 days of City Power, which ended on 30 June 2001, focussed on the following:

• Appointment of Company Executives (Completed)
• Familiarisation of executives with the business (site tours/ people meetings) (Completed)
• Development of high-level organisation structures (Completed)
• A recruitment plan for the next levels (Completed)
• Development of a business plan (Completed)
• Preparation of business planning value chain
• Identification of business KPI's (Completed)
• Official launch of City Power
• Implementation of governance structures, i.e. City Board, Managements Committee and the ISB (Completed)
• Establishing relationships with our stakeholders

10.5 Business Strategies: Jul 2001 to Dec 2001

Business Strategies: Jul 2001 to Jul 2002

10.6 Business Strategies: Jul 2001 to Jul 2004

10.7 Business Strategies: Jul 2001 to Jul 2006

10.8 Operating Plan

Operating plans for the execution of the strategic objectives is given below. City Power is in the process of compacting the delivering of the outputs with its executives