Post the Board’s appointment, the Eskom management team presented the Strategy Journey map to the Board in March 2018 after which work commenced on the strategy review in April 2018.
At this point, a financial viability framework which setup the financial sustainability measures was also developed and Eskom committed to its stakeholders to develop and approve its long-term strategic plans by end of September 2018.
To that end, the strategy review was initiated internally to develop a new path for Eskom towards 2035. To ensure that work developed by the internal work-streams is stress-tested and aligns with global trends, Eskom enlisted the services of the Boston Consulting Group as a strategic partner to support the development and delivery of the strategy.
Following the commencement of the work in late August 2018, it has become apparent that the end September 2018 deadline initially targeted for the completion of the strategy will not be achievable.
This is due to a number of factors, including, but not limited to the delay in the appointment of a permanent Group Chief Executive; protracted labour negotiations; and the timing of the announcement of the final Integrated Resource Plan as one of the key elements that will inform the strategy.
Final strategy blueprint
The Board has subsequently approved the submission date of 15 November 2018 for the final strategy blueprint, including portfolio recommendations, high-level Eskom operating model configuration and high-level financial plan.
The Board and management in consultation with the shareholder have agreed that the development of a well thoughtout and stress-tested strategy blueprint of this nature and magnitude merits the slight delay to ensure that all key factors are considered in developing the strategy and that there is proper co-ordination between different key entities of the state.
“Eskom’s Board and management team are cognisant of the impact that Eskom has on the country. It is therefore, imperative that Eskom engages with key external stakeholders to ensure that an effective strategy is developed and executed. To mitigate risks and further delays, we have established a Board Strategy Committee that will meet frequently over the next few weeks to ensure continuous Board oversight and timeous execution,” Eskom Chairman Jabu Mabuza said.