Environmental Engineering Reference
In-Depth Information
An increased relative weighting and the associated scoring of the technical
ability of the bidder will avert the appointment of unsuitable operators. The selec-
tion of inexperienced operators - sometimes unable to execute the project whilst
being subjected to the limited contract term and PPP fees payable regardless of
whether income is generated from the project or not - should be avoided.
Technical capacity is essential for quick and responsible delivery, thereby enabling
the achievement of financial and BEE objectives.
Likely causes for wrong vendor selection Tourism products should be primarily an
'operations' function, hence the operational strategy and capability of the operator
is cardinal. In South Africa, tourism education is largely based on skills education,
whilst it is individuals with financial and legal expertise who often submit the bids.
The Commercialization process was also run by process managers and their
experience in hospitality management was limited. Hence, SANParks could possi-
bly have a high number of operators lacking technical and operational experience.
Successful tourism companies have a customer driven operations strategy that
drives the financial and legal strategies (i.e. product over process). After all,
products are designed to serve the tourist need, which is an operations function. A
lesser degree of tourism management understanding as opposed to that of process
could have led to wrong vendor selection. Having said that, to engage in such
projects requires a thorough understanding of the processes.
Outsourcing activities that should not have been outsourced
A strategic management process has three components: analysis, choice recom-
mendation and implementation (Scholes, 1999). Often projects like the
outsourcing of the KNP Wilderness Trails did not follow a transparent and collec-
tive strategic management process, and hence are seen as products or activities
that should not have been outsourced. There are certain activities that fell under
the Commercialization Strategy 2000 that may not necessarily have been
outsourced. For example, the hotel at Golden Gate national park and certain
restaurant operations are said to have delivered better service outputs before
outsourcing. The probable cause of outsourcing such activities may be attributed
to a process driven strategy as opposed to a product driven strategy and it is
arguable that these products should not have been outsourced at all.
Building and maintaining a corporate culture that promotes good strategy
execution
SANParks adaptive management style has enabled the organization to embrace
new ways of thinking and hence the execution of the Commercialization Strategy
2000, the approval of an extended scope of commercialization, and the re-intro-
duction of PPPs as a key strategic objective of SANParks.
The lesson learnt is that several governance mechanisms change, while
various projects are of a long-term nature and the term is a constant. As a large
organization with various stakeholders, it could be difficult to remain focused on
the commercialization goals over an extended period. Ministers change,
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