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PERFORMANCE MANAGEMNET SYSTEMIN LOCAL GOVERNMENTCHALLENGES AND ASSUMPTIONS :KZN EXPERIENCEA Paper Presented by :Aah SekhesaDevelopment Planning – Co-ordination KZNASALGP INAUGURAL ANNUAL SEMINAR7 November 2002Bloemfontein
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.
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.
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
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
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?
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
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
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
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
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
Balanced score card is developed against areas of focus/benchmarks eg. - Leadership and innovation - Governance - Processes - Service Delivery - Customer results
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
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
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
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.