LEGISLATIVE REQUIREMENTS

1. PERFORMANCE MANAGEMNET SYSTEMIN LOCAL GOVERNMENTCHALLENGES AND ASSUMPTIONS :KZN EXPERIENCEA Paper Presented by :Aah SekhesaDevelopment Planning – Co-ordination KZNASALGP INAUGURAL ANNUAL SEMINAR7 November 2002Bloemfontein

2. LEGISLATIVE REQUIREMENTS • The Constitution of the Republic of South Africa, No 108 of 1996 : Local Government as a sphere of government that plays a developmental role and encourages the involvement of communities in its matters. • The Batho Pele White Paper (1997) : Requires national and provincial government departments to inter-alia develop performance management systems that include service delivery indicators and measurements of performance. • The White Paper on Local Government (1998) : - A “new” orientation for Local Govt. - Performance management identified as one of the key tools in achieving its developmental mandate.

3. LEGISLATIVE REQUIREMENTS (CONT) • The Municipal Systems Act, No 32 of 2000 (Sections 38-48) - Provides the national legal framework for performance management - Performance management as part of an ongoing cycle linked to the IDP process - Community participation as an integral part of the process - Chapter 3 of the PMS Regulations of 2001 provides that a PMS must be adopted at the same time as the municipality’s process of setting KPIs and targets in accordance with it’s IDP.

4. All Municipalities Must : - Promote a culture of performance management and measurements within its political structures, office bearers and councillors - Set KPIs and targets set for it for purposes of PMS - AUDIT the results as part of the municipality’s auditing processes and annually by the Auditor-General - Prepare Annual Reports and adopt it - Submit the report to the MEC for Local Government - Reports by the Minister - Publication of a report in the Gazette • President’s Co-ordinating Council Resolutions of 2001 and the Implementation Plan of Action of July 2002 : - Emphasize the need, develop and implement measures to support and fast track the process of IDPs and monitor performance of municipalities in service delivery

5. COMMON PRINCIPLES IN POLICIES AND LEGISLATION • Development Focus • Community Involvement • Set standards, measures and report • Economic, efficient and effective i.e. value for money • Openness, transparency and accountability

6. SOME OF THE KEY QUESTIONS IN PMS • What is my business? • What does the community expect from us? • What is it that we need to do to be successful in meeting community expectations? • Do the books balance i.e What does it cost? • How long does it take to achieve what I do? • Do we have an organisation where people like to work? • How do we get better?

7. The organisation and its people • Quality community environment • Community services and facilities • The Natural environment • Economic environment • Community Standpoint LINKING IDP TO PMS • Development of a Strategic Plan/IDP • WHAT is our vision as a municipality and HOW shall we achieve our vision? Example : Mellville in W.A. has 6 visions

8. LINKING IDP TO PMS (CONT) • What are the Strategic Objectives to achieve the vision? - A vision is translated into strategic objectives. - Accountability for the objectives is set at Divisional Level • What are the strategies and actions to achieve the objectives? - From the objectives teams develop services and projects to be delivered to the community - Responsibilities are then assigned to specific individuals in the organisation

9. Adapted from City of Melville’s Planning & Implementation Framework Mission Visions Corporate Indicators are developed Strategic Plan Strategic Balance Scorecards Strategic Objectives PAP Deployment Objectives Team Business Plans Service Indicators for each Department \ Unit Team Balance Scorecards Budget Services & Projects

10. PHASE 2 : STRATEGIES PHASE 3: PROJECTS PHASE 4: INTEGRATION PHASE 5: APPROVAL Legal Framework Analysis Integration of Processes Vision,mission and Value System Leadership Guidelines In-depth Analysis and Identify Key Development Priorities • Approval • District Alignment • Public Comments • Provincial/National • Alignment • Final Approval by the • Municipal Council • Gap Analysis in terms of: • Vision and mission • Identified Key • Development • Priorities • Develop Strategies: • -KPAs • -Development • Objectives Community and Stakeholder Analysis Link KPAs and Development Objectives to Sectoral Functions Municipality Technical Analysis Compile an Integrated Communication Plan • Compile 5 Year Sector • Departmental • Business Plans • Identify and Prioritize: • Capital Investment • Projects • Specific Project • Programmes Institutional Analysis PHASE 1 : ANALYSIS Economic Analysis Environmental Analysis Socio-Economic Analysis INTEGRATED DEVELOPMENT PLANNING PROCESS Performance Management System Annual Budget Annual Reporting Monitor, Evaluate And Review Sector Departmental Business Plans

11. CASCADING PERFORMANCE CONTRACTS Aligned with Corporate Mission, Vision & Goals Municipal Managers Performance Contract Aligned with KPA’s, and Objectives of department HOD’s Performance Contract Aligned with Divisional objectives Manager’s Job Description Aligned with unit objectives Supervisor’s / Individuals Job Description SOURCE : PRICEWATERHOUSE COOPERS

12. Balanced score card is developed against areas of focus/benchmarks eg. - Leadership and innovation - Governance - Processes - Service Delivery - Customer results

13. CHALLENGES AND LESSONS LEARNED • PM is an important communication tool • Placing of PMS within the municipality • It is critical that everybody in the organisation understands the strategic objectives of the organisation – UNDERSTAND OWN BUSINESS • There must be a “buy-in” from all role players or else PMS will be seen as a punitive tool • Keep the system simple and do not endeavour to measure everything. Measure only the most critical areas that can make a difference and improve decision-making “DON’T BE BOGGED DOWN TO COMPLEX PROCESSES” • Communityparticipation can be complex and needs to be well structured

14. CHALLENGES AND LESSONS LEARNED (CONT) • Outcomes cannot be measured from one Department. At times indicators from different departments should be integrated to measure an outcome • Spend time using and analysing information to improve decision-making • Develop indicators that are relevant, achievable and supported by accessible and cost effective data • Data collection and reliability • NO SIZE FITS ALL

15. BENEFITS OF PMS • Holistic and systematic approach to organisational management • Introduces cycle for continuous improvement • Identifies strengths and areas of improvement • Provides review and feedback • Forms a basis for on-going discussions between the employees and manager where the focus is on problem solving • Does not only focus on quantity of outputs but also on quality as well as process involved

16. KWAZULU-NATAL:THE FUTURE • Development of a “Best Practice Model” by March 2003 • Simple, holistic and can be incrementally implemented to cater for diversity of municipalities in the Province.