STRATEGIC PLANNING PROCESS WITHIN DAC AND SECTOR

1. STRATEGIC PLANNING PROCESS WITHIN DAC AND SECTOR PRESENTATION TO THE SELECT COMMITTEE: EDUCATION AND RECREATION

2. Background Strategic planning within government Planning challenges within DAC and sector Initiatives to deal with challenges Strategic linkages Operational linkages Key stakeholders Roll-out of the strategic planning process PRESENTATION OUTLINE 2

3. BACKGROUND Government adopted the Outcomes Approach, which ensured paradigm shift from being output focused to being outcomes orientated The A-G has already started of with auditing the predetermined objectives. Therefore properly crafted measures that comply with the SMART principle are central to planning Parliament continues to reject SP/APP they find to be of mediocre quality. SPs/APPs of good quality and substance makes implementation, monitoring and reporting easier

4. STRATEGIC PLANNING WITHIN GOVERNMENT New electoral cycle – revised MTSF and POA. Departments develop 5-year strategic plans aligned with MTSF and the POA. Based on its strategic plan each department prepares: APP whose aim is to implement the strategic plan and spend the budget BUDGET (Estimates of Expenditure/MTEF) - submitted to Treasury and approved by Parliament to become law (Appropriation Act) Parallel to this, in-year monitoring, reporting and budgeting processes and reviews take place. This shows that, planning, budgeting, monitoring, evaluation and reporting are processes that influence one another and they should talk to each other.

5. PLANNING CHALLENGES WITHIN DAC & SECTOR In analyzing the planning environment, the following challenges were identified Uncoordinated planning within the sector Lack of proactive management of strategic planning, taking it as an event rather than a process Dealing with strategic planning as a compliance routine Lack of outcome/impact measures for the sector Manifestations of poor planning include: Plans that are difficult to implement resulting to overspending, under-spending, non-achievement of some pre-determined objectives A temptation of revising indicators and targets mid-year while implementation is taking place (NT does not allow this)

6. INITIATIVES TO DEAL WITH CHALLENGES The DAC Sector-Wide Strategic Planning Guide promotes intergrated sector planning that would ensure: Alignment of plans within the sector (NDAC, Institutions and Prov. Line Depts.) That planning takes into account genuine interests of stakeholders Development of sector’s Key Performance Indicators for outcomes measurement That the strategic planning process is informed by analysis of previous performance (Annual Report, A-G’s Audit Outcome and other evaluation reports) Understanding the role and contribution of Parliament’s PC, Cabinet and Budget Makgotla Drawing from middle management and other structures (including social partners) to ensure relevancy and ownership of SP/APP

7. STRATEGIC LINKAGES Going forward, integrated sector planning will be informed by and draws from The Framework for Strategic Plans and Annual Performance Plan Treasury Regulations and Public Service Regulations National development Plan Other documents pronouncing on government-wide strategic planning approach. It should also be influenced by government’s policy positions on: Government-wide M&E Outcomes-Based Performance Management approach Budgeting and resource allocation policies. Inputs from stakeholders and interested parties

8. OPERATIONAL LINKAGES Programme Performance, Monitoring, Evaluation And Reporting Strategic Planning is a continuous process that requires constant feedback on how current strategies are working and performance measurement and reporting provides that constant feedback. Strategic planning looks ahead toward desired goals; performance measurement and reporting looks back at achievements. Information Management The DAC needs to have a efficient Central Repository to house programme performance information, evaluation reports, policy review reports and other socio-economic intelligence data Auditor-General The A-G audit and express an opinion on the quality of objectives, performance indicators and targets published in SP/APPs. This is auditing predetermined objectives

9. OPERATIONAL LINKAGES Budgeting Process &Financial Management Inadequate and mediocre planning leads to a budget that does not give effect to strategic priorities. Human Resource Management The SP/APPs are central for individual performance management. It would be incorrect if managers get performance bonuses while a department has poorly performed in the achievements of its targets. Risk Management The identification of strengths, weaknesses, opportunities and threats is a crucial aspect of the strategic planning process. If done correctly, the SWOT Analysis assists in identifying both strategic and operational risks.

10. INVOLVING KEY STAKEHOLDERS IN STRATEGIC PLANNING Reporting Institutions/Public Entities The National Treasury stipulates that departments responsible for Institutions must exercise oversight of planning, budgeting and reporting on institutions. To ensure alignment Public Entities need to be involved in the strategic planning process of the department. Provincial Departments of Arts and Culture The strategic tasks of provincial Departments of Arts and Culture include executing political and legal mandates on arts, culture and heritage by implementing policies that have been developed by DAC (among others). So, provincial departments must be involved in the strategic planning process of DAC. This will ensure alignment of their plans with DAC’s.

11. INVOLVING KEY STAKEHOLDERS IN STRATEGIC PLANNING Political Authority Political guidance and line of march needs to guide the strategy of the department. The Ministry should address DAC SMS at the beginning of the annual strategic planning cycle. This is ideal time for senior management to understand what the marching orders are before engaging deeply in the planning process. The Parliament’s Portfolio Committee on Arts and Culture On many occasions the PC has explicitly expressed the need for the DAC to take proper leadership on the arts, culture and heritage sector. It has expressed the need for the department to have more control and strict governance regime over the Public Entities under its wing. Given its role, it is important that the PC consciously and purposefully contributes to the planning process of the department.

12. INVOLVING KEY STAKEHOLDERS IN STRATEGIC PLANNING Industry and Other Stakeholders The DAC directly/indirectly facilitates the productivity of the arts and culture industry. Both consumers and producers of arts and culture products will always have a contribution to make to the way programmes of DAC assist them. It’s important to structure these in a meaningful manner yielding positive contribution.

13. STRATEGIC PLANNING PROCESS ROLL-OUT

14. FIRST QUARTER ACTIVITIES Address by Political Authority and Scene-setting for planning Date: April/May Discussion and engagement at DAC Top Management Date: April Discussion and engagement at Public Entities level Date: Beginning of May Engagement and discussion with provincial departments Date: DDGs engaging and discussing with their sectors Date: May/June Briefing of the Portfolio Committee Date: April/May Strategic Planning Forum Date: 4th week of May DAC Strategic planning retreat. (In attendance will be the Extended BMT; CEOs Reps from Provinces and Portfolio Committee) Date: June

15. SECOND QUARTER Public Entities undertake strategic planning (retreats) Date: July Engage DAC Branches Date: 1st & 2nd week of July Reprioritization inputs and database Date: July and August Consolidate and finalize 1st draft of departmental APPs Date: 1st week of August Public Entities finalise their first draft Date: July Sign-off by DG Date: 2nd week of August Submit first draft APP to Treasury and Presidency Date: 4th week of August Public Entities submit their first drafts to DAC Date: 4th week of August Strategic Planning Forum Date: 4th week of November

16. THIRD QUARTER Continuous engagement with branches to polish-up the APP Date: October & November Continuous engagement with branches to polish-up the APP Date: October & November Medium Term Budget Policy Statement Date: October Finalize 2nd draft of departmental APP Date: November Finalize 2nd draft of Entities APPs Date: November Budget Allocation (Letter) Date: 4th week of November or 1st week of December Estimates of National Expenditure (ENE Chapter) Date: 4thweek of November or 1st week of December Strategic Planning Forum Date: 4th week of November

17. FOURTH QUARTER January 8 statement Date: January Cabinet Lekgotla Date: January Public Entities submit their APP to DAC Date: January DAC conducts final session of strategic planning Date: 4th week of January or 1st week of February Editing the plan Date: 2nd week of February State of the Nation Address Date: February Budget Speech Date: February Printing of the plan Date: 3rd week of February Submission and Tabling of final APP at Parliament, Treasury and Presidency Date: 4th week of February

18. CONCLUSION The integrated approach to planning for the sector and by the sector, will assist in addressing a number of challenges and in closing a number of gaps As we are introducing this approach, it may not be perfect at this stage but it will improve as we continue to implement it The DAC Sector-Wide strategic Planning Guide was approved by the department in February 2013 with implementation starting at the beginning of 2013/14 F/Y The portfolio Committee is invited to be part of the strategic planning retreat scheduled for end of June 2013

19. NGIYABONGA KAKHULU