Performance Management Made Simple. Performance Management Made Simple. Achieved Results

Transcription

1 OFFICE OF THE MEC TEL: FAX: PHYSICAL ADDRESS 1 ST FLOOR, FNB HOUSE, REDLANDS ESTATE WEMBLEY, PIETERMARITZBURG, 3201 OFFICE OF THE HEAD OF DEPARTMENT TEL: FAX: betty.makodi@kzncogta.gov.za PHYSICAL ADDRESS 14 TH FLOOR, NORTH TOWER, NATALIA BUILDING 330 LANGALIBALELE STREET, PIETERMARITZBURG, 3201 POSTAL ADDRESS PRIVATE BAG X 9078, PIETERMARITZBURG, 3200 Performance Management Made Simple Planning Implementation Achieved Results Evaluation Monitoring OFFICE OF THE SENIOR MANAGER: MUNICIPAL PERFORMANCE TEL: FAX: sheritha.singh@kzncogta.gov.za PHYSICAL ADDRESS 12 TH FLOOR, NORTH TOWER, NATALIA BUILDING 330 LANGALIBALELE STREET, PIETERMARITZBURG, 3201 POSTAL ADDRESS PRIVATE BAG X 9078, PIETERMARITZBURG, 3200 Performance Management Made Simple A Guide to Developing and Implementing a Performance Management System PEOPLE CENTRED SUSTAINABLE CO-OPERATIVE GOVERNANCE, WHICH FOCUSES ON EFFECTIVE SERVICE DELIVERY RESPONSIVE TO THE NEEDS OF THE COMMUNITY PEOPLE CENTRED SUSTAINABLE CO-OPERATIVE GOVERNANCE, WHICH FOCUSES ON EFFECTIVE SERVICE DELIVERY RESPONSIVE TO THE NEEDS OF THE COMMUNITY Printed by CPW Printers w/t

2 PERFORMANCE MANAGEMENT MADE SIMPLE A guide to Developing and Implementing a Performance Management System 1

3 TABLE OF CONTENTS 1. INTRODUCTION Overview Planning Implementation Monitoring Evaluation Roles and Responsibilities Purpose of this Manual PLANNING TASK 1: Pre-Planning TASK 2: Public Participation TASK 3: Development Planning TASK 4: Adoption of the IDP and Submission to DCoGTA IMPLEMENTATION TASK 1: Create the Organisational Scorecard TASK 2: Preparation of the Service Delivery Budget Implementation Plan TASK 3: Preparation of the Municipal Manager and Managers Accountable to the Municipal Managers Performance Agreements, Annual Performance Plans and Personal Development Plans TASK 4: Compilation of Portfolios of Evidence MONITORING TASK 1: Measuring Performance TASK 2: Compilation of Quarterly Performance Reports at a Departmental Level TASK 3: Compilation of Consolidated Quarterly, Half-Yearly and Annual Performance Reports at a Municipal Level EVALUATION TASK 1: Define Evaluation Objectives TASK 2: Review Information Collected TASK 3: Document Findings and Formulate Recommendations DEFINITIONS & ABBREVIATIONS Definitions: Abbreviations: ANNEXURES:

4 ANNEXURES 1. STAKEHOLDER ANALYSIS DATA COLLECTION SHEET IDP PROCESS PLAN AGENDA FOR A PUBLIC PARTICIPATION MEETING MINUTES OF MEETING FOR A PUBLIC PARTICIPATION MEETING INTEGRATED DEVELOPMENT PLAN MUNICIPAL SCORECARD 5 YEARS FINANCIAL RATIOS ORGANISATIONAL SCORECARD 1 YEAR SERVICE DELIVERY BUDGET IMPLEMENTATION PLAN PERFORMANCE AGREEMENT ANNUAL PERFORMANCE PLAN, PERSONAL DEVELOPMENT PLAN AND REVIEW FOR MANAGERS PORTFOLIO OF EVIDENCE INDEX MONTHLY PERFORMANCE REPORT QUARTERLY PERFORMANCE REPORT HALF-YEARLY PERFORMANCE REPORT ANNUAL PERFORMANCE REPORT

5 STRUCTURE OF THE MANUAL PROCESS TASK STEP Planning Pre-Planning Develop data collection and storage tools. 17 Implementation Public Participation Development Planning Adoption of the IDP and Submission to the DCoGTA Create the Organisational Scorecard Preparation of the Service Delivery Budget Implementation Plan Preparation of Managers Annual Performance Plans, Personal Development Plans and Performance Agreements Compilation of Portfolios of Evidence Identify, collect and review relevant inputs for the IDP and develop a Prioritisation Model. Schedule and host public participation meetings. Page No Update the draft IDP. 35 Co-ordinate and host an annual Strategic Planning workshop. 40 Complete the Integrated Development Plan. 50 Adoption of the IDP and Submission to the DCoGTA. 54 Create the Organisational Scorecard. 59 Complete Section 3 (Ward Information) of the SDBIP. Complete Section 4 (Monthly Projections of Revenue to be Collected by Source) of the SDBIP. Complete Section 5 (Quarterly Projections of Service Delivery targets and Performance Indicators for each Vote) of the SDBIP. Complete Section 6 (Monthly Projections of Operating and capital Expenditure and Revenue for each Vote) of the SDBIP. Complete Section 7 (Three-Year detailed Capital Works Plan) of the SDBIP. Preparation of Managers Performance Agreements. Preparation of Managers Annual Performance Plans. Preparation of Managers Personal Development Plans Compilation of Portfolios of Evidence. 87 4

6 PROCESS TASK STEP Monitoring Measuring Performance Collect data on actual performance. 92 Evaluation Compilation of Managers Quarterly Performance Reports at a Departmental Level Compilation of Consolidated Quarterly, Half-Yearly and annual Performance Report at a Municipal Level Define Evaluation Objectives Review information collected during Monitoring Document Findings and Formulate Recommendations Analyse data collected on actual performance against set targets for each indicator. Compilation of Managers Quarterly Performance Reports at a Departmental Level. Page No Prepare the Data Collection Sheet. 103 Compilation of Quarterly Performance Reports at a Municipal Level. Compilation of Half-Yearly Performance Reports at a Municipal Level. Compilation of Annual Performance Reports at a Municipal Level Define Evaluation Objectives. 115 Review information collected during Monitoring. Document Findings and Formulate Recommendations FOR EASE OF REFERENCE, THE PAGES HAVE BEEN COLOUR-CODED AS PER THE TABLE BELOW PLANNING IMPLEMENTATION MONITORING EVALUATION ANNEXURES 5

7 1. INTRODUCTION 1.1 Overview A Municipality s Performance Management System (PMS) is the primary mechanism to monitor, review, and improve the implementation of its IDP and to gauge the progress made in achieving the objectives set out in the IDP. In addition, a Municipality s PMS must also facilitate increased accountability, learning, improvement, provide early warning signals and facilitate decision-making. The performance management system monitors actual performance against set targets and contractual obligations. Effective service delivery relies upon the IDP, efficient utilisation of all resources and the performance management system being closely integrated across all functions at an organisational and individual level. The most valuable reason for measuring performance is that what gets measured gets done. The Integrated Development Plan (IDP) outlines how the challenges of sustainable development in a Municipality are to be met through strategic interventions and service delivery over the five year period. The IDP is developed by the Municipality in conjunction with the community and a credible IDP must be supported by a realistic budget. The IDP is supported by a Municipal Scorecard which sets out the key deliverables over the election period in a log-frame format. Once performance planning has been completed and departmental SDBIP s are in place, they need to be implemented by executing the work in accordance with these plans. As the work is executed, it needs to be continuously monitored and periodically measured and reported on. Reporting requires that the Municipality takes the priorities of the organization, its 6

8 performance objectives, indicators, targets, measurements and analysis, and present this information in a simple and accessible format, relevant and useful to the specific target group, whilst meeting the legal prescripts for reporting. Legislation that governs performance management in local government includes the Municipal Systems Act (MSA), the Municipal Planning and Performance Management Regulations (MPPMR), the Municipal Finance Management Act (MFMA), the Municipal Performance Regulations for Municipal Managers and Managers directly accountable to the Municipal Manager and the Framework for Programme Performance Information (FPPI) issued by National Treasury. 1.2 Planning Planning is the first phase of an organisational performance management system and the key output is the development of the Integrated Development Plan (IDP). Each Municipality must develop an IDP which is utilized to plan future developments in the municipal area to meet the needs of the community. The IDP assists the Municipality as follows: It is a planning process that involves the entire Municipality and its citizens in finding the best solutions to achieve long-term development. It assists in the co-ordination of the work of local government and other spheres of government to improve the quality of life for all the people living in an area. It considers the existing conditions and problems and resources available for development. It considers the economic and social development needs for the area. It sets a framework for land use, infrastructure, services, and the protection of the environment. 7

9 The IDP has a lifespan of 5 years that is linked directly to the term of office for Councillors. The Municipality is required to draft a 5 year Integrated Development Plan which is then broken down into short term goals that can be achieved in 1 year. Prior to the setting of the annual targets the IDP is reviewed and the necessary changes are made. It should take 6 to 9 months to develop an IDP. During this period, service delivery and development continues. At the District Municipal level, a framework should be developed in consultation with all local municipalities within the district. This framework will ensure co-ordination, consultation, and alignment between the district Council and local municipalities. The framework will guide the development of the IDP Process Plan for each local Municipality. 1.3 Implementation The actual implementation of the IDP over a single financial year is given effect through the Service Delivery Budget Implementation Plan (SDBIP), scorecards, performance contracts of the Municipal Manager and other S57 Managers. The Service Delivery Budget Implementation Plan (SDBIP) is the implementation tool used to align the budget to the IDP. The focus of the SDBIP is both financial and non-financial measurable performance objectives in the form of service delivery targets and other performance indicators. The SDBIP is essentially the management and implementation tool which sets in-year information, such as quarterly service delivery and monthly budget targets, and links each service delivery output to the budget of the Municipality, thus providing credible management information and a detailed plan for how the Municipality will provide such services and the inputs and financial resources to be used. 8

10 The key performance areas and indicators of performance contained in the organizational scorecard are cascaded into departmental scorecards, and further into individual scorecards which ensure the appropriate alignment between organizational and individual performance. The performance measures that will be used to measure organisational performance need to be developed. In doing so, it is necessary to take into account the funding and staff requirements, availability of the necessary skills and time constraints. Sometimes it will be prudent to use own resources and at other times, it will be more practical to outsource the service. Projects need not only consist of capital projects such as water schemes and housing developments. They can also consist of softer, internal issues such as, Review the Workplace Skills Plan. This indicates all the work done in a Municipality, whether it is services to communities or internal processes. 1.4 Monitoring Monitoring continuously tracks performance against what was planned by collecting and analysing data on the indicators established for monitoring and evaluation purposes. It provides continuous information on whether progress is being made toward achieving results (outputs, outcomes, and goals) through record keeping and regular reporting systems. Monitoring looks at both programme processes and changes in conditions of target groups and institutions brought about by programme activities. It also identifies strengths and weaknesses in a programme. The performance information generated from monitoring enhances learning from experience and improves decision-making. Management and programme implementers typically conduct monitoring. 9

11 The monitoring framework must: Identify the roles of the different role players in monitoring and measuring the Municipality s performance; Allocate specific tasks to the gathering of data and submission of reports; Determine the data that must be collected in order to assess performance, how that data is to be collected, stored, verified and analysed and how reports on that data are to be compiled; Provide for reporting to the municipal Council at least quarterly; Be designed in a manner that enables the Municipality to detect early indications of under-performance; Provide for corrective measures where under- performance has been identified; and Compare current performance with performance during the previous financial year and baseline indicators. Whilst the budget sets yearly service delivery and budget targets (revenue and expenditure per vote), it is imperative that in-year mechanisms are able to measure performance and progress on a continuous basis. Hence, the end-of-year targets must be based on quarterly and monthly targets, and the Municipal Manager must ensure that the budget is built around quarterly and monthly information. Being a start-of-year planning and target tool, the SDBIP gives meaning to both in-year reporting and end-of-year annual reports. 1.5 Evaluation Evaluation is a periodic, in-depth analysis of programme performance. It relies on data generated through monitoring activities as well as information obtained from other sources (e.g., studies, research, in-depth interviews, focus group discussions, surveys etc.). Evaluations are often (but not always) conducted with the assistance of external evaluators. 10

12 Evaluations include preparations to define standards to be used to conduct an impact assessment on the achievement of the planned outcome, collecting information, analysing information, drawing conclusions, documenting lessons learned and formulating recommendations. When assessing programme performance, evaluations look beyond the delivery process and focus on the results of inputs delivered and the work done. The outcome of this assessment determines whether or not the programme has achieved or is likely to achieve its outputs and contribute to achieving programme outcomes and impact. The core evaluation concerns to assess programme performance are: Relevance: Does the programme continue to meet our needs? Effectiveness: Are we achieving the desired results? Efficiency: Are the results cost-effective? Sustainability: Can the results be sustained after withdrawing support? Alternative strategies: Are there better alternatives to achieve the desired results? The following role players are involved to some degree in evaluations: Internal Audit Auditor-General Performance Audit Committee Oversight Committee Standing Committee on Public Accounts Department of Co-operative Governance and Traditional Affairs 11

13 1.6 Roles and Responsibilities It is also important to clarify roles and responsibilities of employees and stakeholders. The roles and responsibilities for PMS are reflected below. Responsibility Citizens and communities Council Executive Committee Municipal Manager, Deputy Municipal Manager and S57 Managers Role Be consulted on needs. Develop the long term vision for the area. Assist in identifying priorities. Participate in the identification of indicators and setting targets. Be given the opportunity to review municipal performance and suggest new indicators and targets. Facilitate the development of a long term vision. Develop strategies to achieve the vision. Identify priorities. Adopt indicators and set targets. Review municipal performance quarterly. Give strategic direction and develop strategies and policies for the Municipality. Manage the development of the IDP. Approve and adopt indicators and targets. Communicate the plan to other role players. Conduct major reviews of municipal performance determining where goals had or had not been met, what the reasons were and to adopt response strategies. Assist EXCO in: Giving strategic direction and developing strategies and policies for the Municipality. Manage the development of the IDP. Ensure that the plan is integrated. Identify and propose indicators and targets. Communicate the plan to other role players. Regularly monitor the implementation of the IDP and identify risk areas. Ensure regular monitoring (measurement, analysis, and reporting). Take corrective action as and when required. Conduct regular reviews of performance. Ensure that performance reviews at the political level are organised. Ensure the availability of information. Propose response strategies to EXCO. 12

14 Responsibility Departmental Managers Role Develop service delivery and budget implementation plans for the Municipality. Measure performance according to agreed indicators, analyse, and report regularly. Manage implementation and intervene where necessary. Inform decision makers of risks timeously. Table 1: Roles & Responsibilities The roles and responsibilities mentioned above are set out in the MFMA and MSA and the requirements are summarised in the following table. Section 38 of the MSA Section 21 and 24 of the MFMA Section 39 of the MSA Section 51 and 55 of the MSA (also refer to the individual performance agreement section in this table) Accountability and Responsibility The Municipality MUST establish a PMS in line with its IDP. The Mayor must coordinate the process of budget and IDP formulation as well as ensuring the development of measurable performance measures for the budget. The EXCO or a Committee of Council MUST manage the development of the PMS. EXCO can assign responsibilities to the MM. Municipal Council to adopt the PMS. Ensuring that the administration is set up and operates within the Municipality s PMS. MM is responsible and accountable for implementing and monitoring the municipal IDP. Monitoring, Evaluation and Audit Section 40 of the MSA Section 41 of the MSA Regulation 13 and 14 of the Municipal Planning and Performance Management Regulations No 796 dated 21 August 2001 Systems for monitoring and review MUST be established. Systems for monitoring, reporting, and redress MUST be established. Systems for monitoring, reporting and redress MUST be established and maintained. 13

15 Section 121 of the MFMA Section 45 of the MSA The Municipality must prepare and deal with the Annual Report (Financial and Performance) within 9 months of financial year end. The Municipality MUST audit its performance annually. Municipal performance MUST be audited by the Auditor-General by means of submitting an Annual Performance Report. Individual Performance Agreements Section 57(5) of the MSA Section 53 of the MFMA Regulation 4, 23, 25 and 26 of the Local Government Performance Regulations for Municipal Managers and Managers Directly Accountable to Municipal Managers. Regulations No. 805 dated 1 August 2006 Objectives and Targets set in these contracts MUST be based on the performance indicators set in the Municipality s IDP. Performance Agreements are linked to the measurable performance measures for the budget. Performance Agreements must be entered into within 90 days of commencement of employment OR within 1 month of the financial year starting. Once concluded, it must be forwarded to the MEC for Local Government within 124 days. Performance Agreements must be aligned to the IDP, SDBIP and Budget of the Municipality. Performance Objectives are based on the IDP, SDBIP and Budget of the Municipality. The MM and Managers reporting to the MM agree to participate in the PMS of the Municipality. Table 2: Legal Framework for Roles and Responsibilities Council has the responsibility for creating the capacity and an enabling environment to implement the PMS. 14

16 1.7 Purpose of this Manual The key focus of any monitoring and evaluation framework is to put in place a results-based performance measurement tool to review performance, track progress in achieving desired outcomes and ensure: Greater accountability in the use of resources; Ongoing focus and review on the achievement of results; An effective tool for decision making; Timely interventions and corrective actions; Strengthen governance; Promote institutional learning and knowledge sharing; and An effective and timely reporting process. Government institutions are required to be transparent and accountable to their stakeholders for better governance and results. They are therefore increasingly open to scrutiny. This manual is intended to serve as a guide for all Councillors, Managers and Officials at the Municipality. The purpose is to ensure uniformity and standardised application of performance management processes and to ensure that accountabilities, responsibilities, data, and process control points are clear at any stage. The manual should be used by Officials in their day to day operations. It can also be used as a training manual for specific sections of the Municipality. New appointments in the Municipality can use this document as an induction manual. The manual encompasses planning, implementation, monitoring and evaluation and incorporates the alignment of an organisational performance management system with an individual performance system. 15

17 2. PLANNING Planning involves four (4) main tasks: 1. Pre-Planning PLANNING 2. Public Participation 3. Development Planning 4. Adoption of the Integrated Development Plan and submission to the Department of Co-operative Governance and Traditional Affairs It is recommended that Municipalities start their planning fifteen (15) months prior to the start of the financial year where implementation takes place to ensure that all stakeholders are involved in the planning processes for transparency and accountability. This is depicted in the following Figure. Figure 1: Planning 16

18 TASK 1: Pre-Planning There are two (2) steps in the Pre-Planning task which are: Step 1: Develop Data Collection & Storage Tools Step 2: Identify, collect and review relevant inputs for the IDP and develop a Prioritisation Model The following process flow includes what you will need to commence with this step, what activities are undertaken and what will emerge from this step. Thereafter, helpful hints are provided to assist with the practical implementation of this toolkit. PLANNING 17

19 Figure 2: Develop Data Collection & Storage Tools Process PLANNING 18

20 The following table provides a description of the steps, processes and activities that should be undertaken and includes some helpful hints which will assist in this task. ACTIVITIES You will need the following Annexures: ANNEXURE 1: Stakeholder Analysis ANNEXURE 2: Data Collection Sheet STEP 1. Develop Data Collection & Storage Tools. Identify stakeholders and analyse their information needs. HELPFUL HINTS A desktop exercise may be used to identify who the primary and secondary stakeholders are, why they should be involved, how they are involved, when they need to be involved and what their information needs are. A series of workshops may be facilitated with the different stakeholders. This is a status quo analysis of the municipal area with inputs from the community, community organisations, business, non-state actors, sector departments, and state owned enterprises. Stakeholders may include: ~ Community (Access to basic services, inputs for the IDP, feedback on actual performance) ~ Department of Co-operative Governance and Traditional Affairs (Support, Monitoring and Evaluation) ~ Department of Education (Sector Involvement for School Infrastructure) ~ Department of Public Works (Sector Involvement for Capital Works Projects) ~ Department of Transport (Sector Involvement for road construction and maintenance) ~ Department of Arts & Culture (Sector Involvement for Libraries, Museums, Cultural Halls) ~ Department of Sport & Recreation (Sector Involvement for Sports development and equipment) ~ Eskom (Sector Involvement for electricity) ~ Telkom (Sector Involvement for telephones) ~ District Municipality (Sector Involvement for Spatial Frameworks, water and sanitation) PLANNING 19

21 PLANNING ACTIVITIES STEP 1. Develop Data Collection & Storage Tools. Identify potential data collection options. HELPFUL HINTS It is often difficult to go back on months of implementation to collect evidence to support the achievements recorded in reports. Hence, data collection options need to be considered at the outset as this information is collected for use in the Monitoring and Evaluation Processes as well. Once the stakeholders and their information needs are identified, one needs to identify what Quantitative and Qualitative data collection methods are available. The following are some options: ~ Review of existing documents; ~ Questioning people through individual and group interviews such as focus group discussions and community interviews; ~ Conducting surveys; ~ Observing people, processes, objects, conditions, and situations; ~ Data collection sheets; ~ Checklists; and ~ Questionnaires. Some examples are: ~ A customer satisfaction survey aimed at identifying areas where customers feel service delivery can be improved. ~ An internal organisational climate survey aimed at addressing concerns of staff with the view to improving the work environment that will in turn improve commitment and morale. ~ A Batho Pele Fitness Test which can be used to ascertain the extent to which the Municipality, its departments and divisions are conducting their work in the Batho Pele way so that they can then address identified areas of improvement. ~ The Vuna Awards criteria that can be used to identify and then address areas of improvement in preparation for these municipal service excellence awards. ~ Baseline indicators for basic services such as access to water, electricity, sanitation and solid waste removal describe how many households in its area of jurisdiction have access to these services. Many municipalities rely on the census data for this purpose while others appoint service providers to conduct socio-economic surveys to obtain more recent and accurate data. 20

22 ACTIVITIES STEP 1. Develop Data Collection & Storage Tools. Choose most appropriate data collection options considering cost and benefit. HELPFUL HINTS One needs to consider the cost of implementing a data collection method and compare it with the value of the benefit derived. Cost-Benefit Analysis: A type of analysis that compares the costs and benefits of programmes. Benefits are translated into monetary terms. In the case of an HIV infection averted, for instance, one would add up all the costs that could be avoided such as medical treatment costs, lost income, funeral costs, etc. The cost-benefit ratio of a programme is then calculated by dividing those total benefits (in monetary terms) by the total programme cost (in monetary terms). If the benefits as expressed in monetary terms are greater than the money spent on the programme, then the programme is considered to be of absolute benefit. Informal small-scale sample surveys: a small non-random (such as purposeful selection of people in different categories on the basis of easy accessibility) sample of individuals who are asked a few questions (5 10). Survey questions can be open-ended or closed-ended. Open-ended questions might ask: How do you feel about the program? What do you want to see happen in your community? Open-ended questions provide relatively rich information about a topic and allow participants to report thoughts, opinions and feelings. However, there are disadvantages. Sometimes people are reluctant to express opinions, or the survey may be time-consuming to complete and analyze. Unlike open-ended questions, closed-ended questions provide discrete, multiple-choice responses from which the respondent selects the most appropriate answer. For example, a simple survey requiring Municipal Officials to spend a Friday afternoon at pre-determined areas, asking passers-by to answer 5 questions: 1. Are you a resident in this municipal area? 2. How satisfied are you with the services provided by the Municipality? (On a scale of 1 to 5) 3. What do you need from this Municipality to improve the quality of your life? 4. Do you get a monthly bill for electricity, water, rates? 5. Have you seen the Municipality s Integrated Development Plan? Assess the reliability of informants. Their knowledge, credibility, impartiality, willingness to respond, and the presence of outsiders who may inhibit their responses are important factors. PLANNING 21

23 PLANNING ACTIVITIES STEP 1. Develop Data Collection & Storage Tools. Choose an information system for Data Collection and Performance Monitoring. HELPFUL HINTS Data that is collected needs to be captured and stored in a data warehouse which may be in the following electronic tools: ~ Microsoft Excel, ~ Microsoft Word, ~ Microsoft Access, ~ Custom developed software, ~ GIS. Reporting templates are developed in line with the regulated reporting requirements and the information needs of all stakeholders. Using a database to store information ensures that any report can be generated using this data, which will lessen the administrative burden of reporting and will save much time. This data collection sheet has been developed to ensure compliance with the reporting requirements and can be used to include all information needs from different stakeholders. It includes the information required by: ~ National Treasury, ~ Provincial Treasury, ~ National DCoGTA, ~ Provincial DCoGTA, ~ VUNA criteria, ~ Auditor-General, ~ Council, ~ Other Stakeholders. If the Municipality is able to store this data in a database, it will greatly facilitate the extraction of any report format and over time, the historical information will be available to determine trends and to compare year-on-year performance achievements. 22

24 Figure 3: Identify, Collect & Review Inputs for IDP & Develop Prioritisation Model PLANNING 23

25 The following table provides a description of the steps, processes and activities that should be undertaken and includes some helpful hints which will assist in this task. PLANNING ACTIVITIES You will need the following Annexures: ANNEXURE 2: Data Collection Sheet HELPFUL HINTS STEP 2. Identify, collect and review relevant inputs for the IDP and develop a Prioritisation Model. Identify potential sources of information to provide a clear situational analysis for the Municipality. To facilitate the identification of these issues, the following list of possible strategic issues arranged under the national key performance areas should be considered. National Key Performance Areas Strategic Issues 1. Basic Service Delivery 1.1 Access to water 1.2 Access to sanitation 1.3 Electricity 1.4 Access to roads and storm water 1.5 Telecommunications 1.6 Community and public facilities 1.7 Solid waste disposal 1.8 Housing 1.9 Land use management systems 2. Local Economic Development 3. Institutional Development and Transformation 4. Good Governance and Public Participation 2.1 Local Economic Development 2.2 Tourism Planning 2.3 Agricultural Development 2.4 Cooperatives and SMME s 2.5 Public Private Partnerships 2.6 Business Support and Development 3.1 Batho Pele 3.2 Performance Management 3.3 Human Resources 3.4 Information Technology 3.5 Administration 4.1 Integrated Development Planning 4.2 Policy Development 4.3 Public Participation 4.4 Internal Audit 4.5 Anti-Corruption Strategy 24

26 ACTIVITIES HELPFUL HINTS STEP 2. Identify, collect and review relevant inputs for the IDP and develop a Prioritisation Model. Obtain the information for the relevant election period and the year for the IDP review. National Key Performance Areas 5. Financial Viability and Management 6. Community and Social Development Services (optional) Strategic Issues 5.1 Budgeting and Reporting 5.2 Revenue Enhancement 5.3 Expenditure Control 5.4 Financial Management 6.1 Education 6.2 Health 6.3 Social Security 6.4 Community Safety 6.5 Disaster Management 6.6 Gender, youth and people with disabilities 6.7 Sports and Recreation 6.8 HIV and Aids 6.9 Community and Public Facilities 6.10 Land Reform 6.11 Environmental Sustainability 6.12 Arts and Culture 6.13 Cemeteries and Crematoria Local government does not operate in isolation. It consults with different stakeholders including the community and sector departments and it must align its service delivery programmes to the following key priorities: ~ Legal mandates ~ Millennium Development Goals ~ Apex Priorities ~ State of the Nation Address ~ State of the Province Address ~ Provincial Growth and Development Strategy ~ District Plans ~ Spatial Development Frameworks ~ Previous IDP s and Annual Reports ~ Situational Analysis ~ Sectoral Involvement ~ Baseline Studies ~ Community Surveys ~ Etc. At the start of the planning process, the Municipality must identify the different sources of information that will provide input into identifying its development priorities in each election cycle. PLANNING 25

27 PLANNING ACTIVITIES HELPFUL HINTS STEP 2. Identify, collect and review relevant inputs for the IDP and develop a Prioritisation Model. Analyse the national, provincial and district policy priorities. Collect demand, baseline and backlog data for the Municipality. The information gathered in the previous activity should be analysed to ensure proper alignment between national, provincial, and local government policy priorities. For example, the Constitution provides for access to basic service as a legal mandate. At a national level, the Departments of Minerals and Energy and Water Affairs are responsible for norms and standards, establishment of the regulatory frameworks, creation of State Owned Enterprises and to monitor the delivery of such services. At a provincial level, the Department of Co-operative Governance and Traditional Affairs is responsible for infrastructure development and provides MIG funding to ensure that the necessary groundwork is prepared. At a local government level, the District and Local Municipalities are responsible for the actual provision of these services. The Municipality must analyse the above documents and ensure that it plans to address the backlogs for electricity, water, and sanitation as targeted by these policy frameworks. To establish the demand, baseline, and backlog indicators, a municipality needs to establish how many households in its area of jurisdiction need the services and those who have access to these services. The backlog is the difference between the demand and the baseline. Key definitions: ~ Baseline: Facts about the condition or performance of subjects prior to treatment or intervention. ~ Logical Framework Approach: A specific strategic planning methodology that is used to prepare a programme or development intervention. The methodology entails a participatory process to clarify outcomes, outputs, activities and inputs, their causal relationships, the indicators with which to gauge/measure progress towards results, and the assumptions and risks that may influence success and failure of the intervention. It offers a structured logical approach to setting priorities and building consensus around intended results and activities of a programme together with stakeholders. ~ Logical Framework (log frame): A dynamic planning and management tool that summarizes the results of the logical framework approach process and communicates the key features of a programme design in a single matrix. It can provide the basis for monitoring progress achieved and evaluating programme results. The matrix should be revisited and refined regularly as new information becomes available.this data makes it possible to set targets for addressing the backlogs over a given period and to track progress towards achieving national and international targets. Many municipalities rely on the census data for this purpose while others appoint service providers to conduct socio economic surveys to obtain more recent and accurate data. The Municipality may also approach Eskom and DCoGTA for available data. 26

28 ACTIVITIES HELPFUL HINTS STEP 2. Identify, collect and review relevant inputs for the IDP and develop a Prioritisation Model. Identify key issues and development priorities for the Municipality. Develop a Prioritisation Model to allocate competing resources to Wards equitably. Once the needs of the communities have been established it is necessary for the Municipal Council to align these needs with the key issues identified in Activity 1 and to define the link between the need with the development priority. For example: Millennium Development Goal: To halve unemployment by 2014 Apex Priority: Key issue: Situational Analysis: Development Priority: Job creation opportunities Identified Wards: Wards 1, 5, 7 Demand: Local Economic Development The textile industry has suffered in the past few years and, whilst there are about employees in the sector, there are still about 500 unemployed Create an enabling environment to grow the textile industry jobs Baseline: 500 jobs (300 in Ward 1, 200 in Ward 5 and 100 in Ward 7) Backlog: 500 jobs (300 in Ward 1, 200 in Ward 5 and 100 in Ward 7) It is a known fact that there are many competing demands for the limited resources available in a Municipality. Furthermore, it can be quite a balancing act to ensure an equitable spread of these resources. The Municipality should consider developing a Prioritisation Model that allows for the transparent and equitable allocation of resources to the different Wards needs. The following is one example of a Prioritisation Model that can be used. Example of a Prioritisation Model: On the given scale, please indicate your perceived impact/importance, the risk to economic/social wellbeing that addressing each of the identified strategic issues/programmes/projects will have on the Community? PLANNING 1 No impact 3 High risk 5 Priority Ranking 2 Little impact 4 Priority Ranking 3 Medium impact 2 Medium Risk 3 Priority Ranking 4 Significant impact 2 Priority Ranking 5 Most impact 1 Low Risk 1 Priority Ranking 27

29 PLANNING ACTIVITIES HELPFUL HINTS STEP 2. Identify, collect and review relevant inputs for the IDP and develop a Prioritisation Model. The prioritised strategic issues/ programmes/ projects will inform the rest of the planning, especially in making budget allocations and prioritising the delivery of services over a five (5) year period. Those issues that are rated to have the most impact will rank first, and will be prioritised for resource allocation in the first year, and so on. This model will ensure that the Municipality develops a credible IDP. 28

30 TASK 2: Public Participation There are two (2) steps in the Public Participation task which are: Step 1: Schedule and host Public Participation Meetings Step 2: Update the Draft IDP The following process flow includes what you will need to commence with this step, what activities are undertaken and what will emerge from this step. Thereafter, helpful hints are provided to assist with the practical implementation of this toolkit. PLANNING 29

31 Figure 4: Schedule & Host Public Participation Meetings Process PLANNING 30

32 The following table provides a description of the steps, processes and activities that should be undertaken and includes some helpful hints which will assist in this task. ACTIVITIES You will need the following Annexures: ANNEXURE 3: IDP Process Plan ANNEXURE 4: Agenda for a Public Participation Meeting HELPFUL HINTS STEP1. Schedule and host Public Participation meetings. Prepare the IDP Process Plan. Co-ordinate Public Participation meetings for each stakeholder that needs to be consulted. Publish invitations in the relevant media, notice boards, website, etc. It is important for the Municipality to plan its activities and attach timeframes to ensure that the IDP is developed from proper consultation and research conducted. It is also important for the planning processes to start early enough to ensure the planning is conducted thoroughly. Ensure that Public Participation meetings are scheduled per stakeholder type or they may be grouped together in terms of their roles and responsibilities. Meetings should be co-ordinated to guarantee good attendance. Hence, it is critical to understand when the most appropriate time and where the most appropriate place will be to attract a wide an audience as possible. Prepare invitations for each Public Participation meeting and advertise in the relevant media. Bearing in mind the type of stakeholder being invited, select the most appropriate vehicle for advertising the meeting. Be sensitive to language preference and literacy levels for communities. Also pre-book venues and conduct a site visit of the venue to ensure suitability of the venue. Some examples of advertising methods/ posters may include: ~ Newsprint ~ Radio Stations ~ Municipal website ~ Municipal notice boards ~ National and Provincial Departmental District Offices notice boards ~ Schools ~ Halls ~ Other facilities notice boards ~ Loudspeakers from a drive through the area ~ Word of mouth PLANNING 31

33 PLANNING Facilitate the meetings using a structured agenda, to provide feedback on past performance and collect needs for the current IDP. Minute all information collected. It is important to have a well organised and structured meeting to ensure minimal disruptions. Always appoint a Chairperson, who is independent, objective and firm. The following is a suggested Agenda to facilitate a smooth meeting and to manage time effectively: Suggested Agenda 1. Opening Prayer 2. Welcome by the Mayor 3. Report on the Municipality s past performance, successes and challenges 4. Overview of planned improvements in terms of national and provincial policy priorities 5. Presentation of the IDP Process Plan 6. Inputs from stakeholder representatives 7. Concluding remarks 8. Closure A translator and scribe must be appointed for the Public Participation meeting. All proceedings should be recorded and captured in writing. Also ensure that an Attendance Register is circulated. 32

34 Figure 5: Update Draft IDP Process PLANNING 33

35 The following table provides a description of the steps, processes and activities that should be undertaken and includes some helpful hints which will assist in this task. PLANNING ACTIVITIES You will need the following Annexures: ANNEXURE 1: Stakeholder Analysis ANNEXURE 3: IDP Process Plan ANNEXURE 5: Minutes Template for Public Participation Meeting ANNEXURE 6: Draft IDP STEP 2: Update the Draft IDP. Analyse the information collected and extract the relevant information. HELPFUL HINTS In the previous Activities, information was gathered from the following sources, amongst others: ~ Legal mandates ~ Millennium Development Goals ~ Apex Priorities ~ State of the Nation Address ~ State of the Province Address ~ Provincial Growth and Development Strategy ~ District Plans ~ Spatial Development Frameworks ~ Previous IDP s and Annual Reports ~ Situational Analysis ~ Sectoral Involvement ~ Baseline Studies ~ Community Surveys ~ Etc. The information collected should be analysed for relevance and alignment to the current IDP. Collate the necessary information under the following headings: ~ Executive Summary ~ Situational Analysis ~ Development strategies ~ Sector involvement ~ Projects 34

36 ACTIVITIES STEP 2: Update the Draft IDP. Update the Draft IDP HELPFUL HINTS Integrated Development Planning (IDP) is a planning method to help municipalities develop a coherent, long-term plan for the co-ordination of all development and service delivery in their area. It is vitally important that the IDP process is taken incredibly seriously and is not just seen as a necessary evil to compile a document that fulfils the legislative requirements. Update the following sections of the Draft IDP: ~ Executive Summary ~ Situational Analysis ~ Development strategies ~ Sector involvement ~ Projects Bear in mind that the Municipal Systems Act requires an IDP to reflect the following: ~ The municipal council s vision for the long term development of the municipality with special emphasis on the municipality s most critical development and internal transformation needs. ~ An assessment of the existing level of development in the municipality, which must include an identification of communities which do not have access to basic municipal services. ~ The council s development priorities and objectives for its elected term, including its local economic development and internal transformation needs. ~ A spatial development framework which must include the provision of basic guidelines for a land use management system for the municipality. It is important for the compiler of the IDP to ascertain what information is pertinent to meeting the development goals of the Municipality. The draft IDP will also be influenced by the assessment that the DCoGTA conducts in April each year. PLANNING 35

37 TASK 3: Development Planning There are two (2) steps in the Development Planning task which are: PLANNING Step 1: Co-ordinate and host an Annual Strategic Planning Workshop Step 2: Complete the Integrated Development Plan The following process flow includes what you will need to commence with this step, what activities are undertaken and what will emerge from this step. Thereafter, helpful hints are provided to assist with the practical implementation of this toolkit. 36

38 Figure 6: Update Draft IDP Process PLANNING 37

39 The following table provides a description of the steps, processes and activities that should be undertaken and includes some helpful hints which will assist in this task. PLANNING ACTIVITIES You will need the following Annexures: ANNEXURE 2: Data Collection Sheet ANNEXURE 6: Draft IDP ANNEXURE 8: Financial Ratios HELPFUL HINTS STEP 1: Coordinate and host an Annual Strategic Planning Workshop. Make logistical arrangements for the Strategic Planning Workshop. Facilitate the Workshop. The strategic planning workshop typically involves several days of interactive work for leadership of the municipality. Strategic planning is ideally done away from the normal work environment so that key people are focused on strategic planning. The main aim of this Strategic Plan is to guide the Municipal Manager s Office in planning their activities and enabling the various departments to effectively and efficiently deliver on its legislative mandates and to meet its obligations and contribute to the achievement of the overall municipal vision and mission. The following are some of the arrangements that will need to be made: ~ Secure a date and venue. ~ Prepare a programme for the proposed 3 day workshop. ~ Prepare invitations for those stakeholders/guests/councillors/senior Management/Department Officials that are required to attend. ~ Send the invitations out with the approved programme at least 10 days in advance and get confirmations of attendance. ~ Inform those stakeholders who need to do a presentation to submit their information 3 days prior to the workshop. ~ Prepare a file of information for all participants, including the Programme, Power-point presentations, IDP Process Plan, Draft IDP, Prioritisation Model, copies of documents gathered in previous tasks, etc. ~ Conduct a site visit to the conference venue prior to the workshop to ensure suitability. Strategic planning simply put can be described as the process of: ~ Choosing a future state for the municipality; ~ Determining the major and long-term goals that define the future; ~ Selecting a course of actions most likely to achieve the major and long-term goals and thus the future, while taking account of the organization s competencies, weaknesses, strengths (its internal and external environments); and ~ Allocating resources to enable the selected actions to be taken. 38

40 ACTIVITIES HELPFUL HINTS STEP 1: Coordinate and host an Annual Strategic Planning Workshop. The following diagram demonstrates typically the process flow in the strategic planning workshop starting with Understanding the Political Mandates. PLANNING A Vision Statement is the end result/future state of what the municipality should achieve in the next five year term. A Mission Statement is clear and concise and states who you are, what you do and for whom you do it for. Values guide the actions of employees required to achieve the municipality s goals. The Situational Analysis is primarily focused on the dynamics of both the internal and external environments, which in turn informs the strategic choices to be made. It is widely referred to as the SWOT analysis. The following table provides some examples that may be identified in a brainstorming activity in the workshop. 39

41 PLANNING ACTIVITIES HELPFUL HINTS STEP 1: Coordinate and host an Annual Strategic Planning Workshop. Internal Internal External External Strengths ~ Committed, dedicated and motivated people. ~ Capable municipal leadership and administration. ~ Capacity for service delivery. ~ Improved financial management. ~ Political and management s will to serve the people. Weaknesses (Challenges) ~ Non-exploitation of opportunities. ~ Institutional capacity critical vacant posts. ~ Poor document and records management. ~ Limited funding to implement programmes. ~ Poor internal communication. ~ Inadequate adherence to legal prescripts. Opportunities ~ Natural resources (forestry, agriculture, rivers, mining). ~ Potential for tourist attractions. ~ Potential service delivery node in the district. ~ Conducive climatic conditions. ~ Proximity to sea and air transport. Threats ~ Co-ordination for service delivery. ~ Low revenue base. ~ Attraction of private sector investment. ~ HIV/Aids. ~ Rural vastness. ~ Urban regeneration. ~ Unemployment. ~ Poverty. It is important to note that consultation and feedback between Council, the Community and all stakeholders are essential to achieve good governance. Strategic Issues must be identified by Ward. Annexure 2: Data Collection Sheet and Annexure 6: Draft IDP can be used in the workshop to facilitate collecting the relevant information. Populate the relevant columns/sections, which will save much time when completing the IDP. The Strategic Issues, which were researched in Step 2: Pre-Planning Activities should be presented and the participants need to reach consensus on which issues they can address in the next 5 years. 40