5.3.2 APPROACH TO PERFORMANCE MANAGEMENT

Transcription

1 Chaptr 5: Prformanc Managmnt Systm 5. APPROACH TO PERFORMANCE MANAGEMENT Th Municipal Systms Act () rquirs municipalitis to dvlop a prformanc managmnt systm suitabl for thir own circumstancs. According to th Act (), th Municipal Managr th Projct Task Tam must work togthr to compil a prformanc managmnt systm conduciv to th ovrall prformanc achivmnts th municipality 8 Th aim th rviwd Framwork is to provid guidlins on th dvlopmnt implication an organisational individual prformanc managmnt systm. It intgrats th IDP, th budgt th organisational mploy prformanc managmnt systm into on intgratd approach. In summary, th Framwork procdur manual provids th following guidlins on prformanc managmnt: It shows how th systm is to b opratd managd from th planning stag up to th stags prformanc rviw rporting; It indicats how various stakholdrs rol-playrs including th community will b includd in th implmntation functioning th systm; It clarifis how th CoT will implmnt th systm within th framwork th intgratd dvlopmnt planning (IDP), srvic dlivry budgt implmntation plan (SDBIP) procsss, including any procdurs to b followd; It addrsss th mattr how tn th COT will rport to whom; It links th prformanc managmnt systm to how th prformanc th mploys 9 should b managd. It touchs on how masurs ar dvlopd monitord It introducs prformanc basd budgting Th Balancd Scorcard Modl is usd as th modl for prformanc managmnt in th CoT. Its aim is to masur prformanc using th four prspctivs, i.. customr, intrnal procsss, financial larning growth. Balancd Scorcards ar thrfor th tool that drivs th Prformanc Managmnt systm in CoT. A numbr ky points must b clarifid to nsur th succssful implmntation th Balancd Scorcard Modl. Intr alia ths includ th idntification th rols diffrnt rol playrs in monitoring masuring municipal prformanc nsuring that spcific tasks ar allocatd in gathring data submitting rports. Balancd Scorcards must b dsignd in such a mannr that it nabls th municipality to dtct arly undr-prformanc provids for corrctiv masurs whr such prformanc has bn idntifid. During 9/, CoT applid scorcards as a managmnt monitoring tool. Th Balancd Scorcard prformanc managmnt tool is to b systmatically cascadd incorporatd into city, corporat, dpartmntal, divisional individual prformanc managmnt structurs. With rfrnc to th abov, th CoT is in th procss rviwing its prformanc managmnt systm in trms functioning so as to nsur that it complis with th latst rquirmnts as pr th lgislativ framwork. Th rviw ncompasss th application th Balancd Scorcard dfining ways in which it fds into a prformanc masurmnt systm such as th Logic Modl subsquntly into prformanc basd budgting to improv alignmnt btwn rsourc managmnt to stratgic objctiv attainmnt. Through this approach, th municipality will truly apply lgislation, intgrat th IDP, budgt prformanc managmnt masurmnt systm consistntly improv on th systm through capacity building chang managmnt. Th Balancd Scorcard Logic Modl as applid within th CoT ar discussd in mor dtail. 5.. BALANCED SCORECARD Th stratgic objctivs dvlopmntal priority aras includd in th IDP cascadd into th SDBIP as th monitoring tool is takn through to th budgting procss as wll as th individual prformanc managmnt systm. 8 Dpartmnt Provincial Local Govrnmnt.. Prformanc Managmnt Guid for Municipalitis: Chaptr 4. Prtoria: Govrnmnt Printrs. 9 City Tshwan. 9. Chaptr 5: Prformanc Managmnt Systm. Availabl at: [Accssd: Dcmbr 9]. TIDP 6- Fourth Rvision 76

2 Chaptr 5: Prformanc Managmnt Systm Th Scorcard framwork cascads to all lvls municipal srvic dlivry (top, functional oprational managmnt). Th objctivs cascading th Balancd Scorcard (BSC) ar to achiv synrgy across th Municipality, maximis intrnal businss procss fficincis (.g. supply chain, information tchnology, human rsourcs, tc) to maximis fficint allocation rsourcs (financial human). Th cascading procss is transformd into a stratgy map that mphasiss th main stratgic intnt th CoT in graphical form with accompanying narrativ alignd to th four prspctivs th BSC mthodology. With an mphasis on th word balancd, th municipal scorcard follows th traditional dsign approach promulgatd by Kaplan rton (996). Th authors rport that th Balancd Scorcard Mthod prformanc managmnt was dvlopd as a tool to masur whthr th smallr scal oprational activitis an organisation ar alignd with its largr scal stratgic objctivs. Th masurmnts to dtrmin th achivmnt objctivs includ th following:. Customr (lctorat, citizns, s) Prspctiv Managmnt must know if th Municipality is mting th lctorat s nds. This rlats to srvics products (outcoms outputs) th Municipality should achiv. Thy must dtrmin th answr to th qustion: Is th Municipality dlivring th srvics th lctorat wants?. Financial Prspctiv Managmnt must focus on how to mt srvic dlivry nds in an conomic, fficint ffctiv mannr. Thy must answr th qustion: Is th srvic dlivrd at a good pric? Intrnal Procsss Prspctiv 4. Larning Growth (Employ Dvlopmnt) Prspctiv Managmnt nd to focus on thos critical oprations that nabl thm to satisfy th lctorat, citizns community. Managmnt must answr th qustion: Can th Municipality improv upon a srvic by changing th way a srvic is dlivrd? An organisation s ability to improv mt community dms tis dirctly to th mploys ability to mt thos dms. Managmnt must answr th qustion: Is th Municipality maintaining tchnology mploy training for continuous improvmnt? Th ovrall aim th Balancd Scorcard is to provid a framwork in which an organisation can dtrmin th quality its srvic dlivry. Th scorcard crats an intrfac btwn th stratgic objctivs dvlopmntal objctivs. Within th municipal nvironmnt th CoT, th Balancd Scorcard provids a structur for th intgration btwn th IDP SDBIP whr th City Scorcard is cascadd to th Corporat Scorcard, whr dpartmntal outputs outcoms ar intgratd with th outcoms outputs th Corporat SDBIP. Dpartmntal balancd scorcards captur th prformanc ach dpartmnt provid a comprhnsiv pictur th prformanc at that lvl. Dpartmntal balancd scorcards compriss ky componnts highlightd in th Corporat Scorcard as wll as th spcific functional aras rsponsibilitis by dpartmnts. Aftr th idntification indicators targts ar st. Prformanc targts ar th plannd lvl prformanc or th milstons an organisation sts for itslf for ach idntifid indicator. It is th dsird lvl srvic dlivry for th currnt two yars thraftr financial yar Baslin masurmnts, which ar th masurmnt th prformanc indicator at th start th priod, must b st. Baslin information dfins th status quo. Th prformanc targt should b compard with th baslin information to dtrmin if any progrss was mad to achiv th st targts. This stp tsts whthr th chosn indicators ar in fact masurabl whthr th stratgy is working. Th stting targts ntails a two-way communication procss: a. Politicians nd to giv clar dirction as to th importanc th targts how it will addrss th public nd. b. Diffrnt targts ar to b dtrmind (i.. annual, mayoral trm). Kaplan, R.S. & rton, D.P. 6. Translating stratgy into action. Th Balancd Scorcard. Harvard: Prsidnt Fllows Harvard Collg. TIDP 6- Fourth Rvision 77

3 Chaptr 5: Prformanc Managmnt Systm c. Lin managrs nd to advis as to what a ralistic achivabl commitmnt for a targt is givn th availabl rsourcs capacity. This procss nds to b finalisd onc th budgt procss has bn finalisd. Ky prformanc indicators nsur th succssful implmntation th stratgic objctivs pr th Balancd Scorcard prspctiv. Such indicators provid guidlins to nsur cascading currnt stratgic objctivs to vry dpartmnt individual within th municipality. According to Chaptr 6: Prformanc Managmnt Systm (6), CoT adoptd th ky prformanc indicators as prscribd in Sction 4 th Local Govrnmnt Municipal Systms Act (). In lin with th MFMA th MSA, th City s Scorcards hav bn cascadd into thr lvls: d. A city lvl whr th focus is on impact an ovrall viw th halth th municipality. This is stratgic in natur.. A corporat lvl whr th focus is on programms cross functional aras that will b implmntd by th municipality, as th accountabl ownr dpartmnt. Th Corporat scorcard is thn cascadd into th Dpartmntal lvl. This is mor oprational will b unpackd in th city's srvic dlivry budgt implmntation plan (SDBIP) as pr th MFMA. f. Th Dpartmntal lvl is mor oprational will b unpackd in th city's srvic dlivry budgt implmntation plan (SDBIP) as pr th MFMA whr th focus bcoms th dpartmntal rsponsibilitis toward th municipal stratgis. This is vry oprational ar intrnal documnts utilisd as implmntation monitoring plans. A diagrammatical prsntation ths lvls is providd in Figur 9. Figur 9: Lvls th CoT Scorcard Th Balancd Scorcard Modl was adoptd by th CoT is aimd at masuring prformanc across four prspctivs, i.. Customr, Intrnal Procsss, Financial, Larning Growth. In th dvlopmnt th currnt City 5-Yar m (5YP), CoT did not, howvr, us th Balancd Scorcard mthodology (which was approvd for th prformanc managmnt procss) as th point dpartur for its stratgic planning procss. Th CoT is now focusing on rvrting back to a balancd approach in th dvlopmnt its stratgic objctivs to nsur balancd approach btwn customr satisfaction, financial attainmnt, institutional procsss larning growth from th building human capital prspctiv. Th Balancd Scorcard has grown in popularity throughout th world, th succss in th privat arna was carrid ovr to succssful implmntation in th public sctor. Tshwan. 6. IDP 6-. Chaptr 6: Prformanc Managmnt Systm. Prtoria: City Tshwan. City Tshwan. 9. Towards th fourth rvisd IDP: Draft Rviwd Plan. Prtoria: City Tshwan TIDP 6- Fourth Rvision 78

4 Chaptr 5: Prformanc Managmnt Systm Th Balancd Scorcard has mrgd in rspons to th nd organisations to stratgically align activitis in th xcution stratgy. This approach not only provids a tool for prformanc masurmnt, but is also usful in th stting prioritis aligning dpartmntal objctivs businss plans to th vision mission th organisation, thus combining accountabl masurmnt with prformanc managmnt. Within CoT, th Balancd Scorcard is sn as a vry valuabl managmnt tool usd to monitor th xcution indicators projcts spcially at th Mayco as wll as top managmnt lvl. Application was givn to th Balancd Scorcard procss whn a stratgy map was dvlopd through stratgic planning sssion with top managmnt as wll as stratgic dvlopmnt sssions with th diffrnt dpartmnts divisions. Th stratgic outcoms in th stratgy map wr rfrrd to th Mayoral Lkgotla for input into th stratgic objctiv dvlopmnt. At this stag, th CoT is invstigating appropriat mthodologis to nsur full lgislativ complianc combind with stratgis to improv fficincy, ffctivnss conomy as pr th intndd introduction prformanc managmnt to municipal govrnanc. 5.. LOGIC MODEL Prformanc masurmnt is th goldn thrad that runs throughout th prformanc managmnt systm. It wavs ach th lmnts togthr into a cohsiv alignd systm that nabls th CoT to giv authority to its statd goal improvd srvic dlivry. This sction dscribs how masurmnt is dvlopd managd. It is important to not that Prformanc masurmnt Prformanc managmnt ar two diffrnt filds study. Prformanc Masurmnt is a tool usd within prformanc managmnt to priodically valuat rviw prformanc. Onc th stratgic objctivs a municipality hav bn stablishd, th nxt stp would b to translat ths into spcific typ indicators. Vntr, t. al. (7:) xplains that outputs ar th masurmnts that rfr to th quantity srvics dlivrd by th municipality. Th achivmnt outputs should lad dirctly to th ralisation outcoms th stratgic objctivs dfind in rspons to prformanc aras. From a cost prspctiv, cost ffctivnss rlats to th rlationship btwn outcoms th costs achiving thm. Prformanc masurmnt can b dscribd in many diffrnt ways. For th purpos this Chaptr, prformanc managmnt is dfind as follows: Rgular masurmnt th rsults (outcoms) fficincy srvics or programms. Rgular masurmnt progrss toward spcifid outcoms is a vital componnt any ffort managing-forrsults. Managing-for-rsults can b dscribd as a procss that focuss on maximising bnfits minimising ngativ consquncs srvics programms. Th Prformanc Managmnt Guid () dscribs prformanc masurmnt as follows: Masurmnts that tll us whthr progrss is bing mad in achiving our goals. Thy ssntially dscrib th prformanc dimnsion that is considrd ky in masuring prformanc. Th logic modl is followd in th dvlopmnt prformanc masurmnt. Th procss dvloping indicators th masurs against which ths should b st is diagrammatically displayd in Figur. Figur : Masurs National Trasury 4 South Africa.. Local Govrnmnt Municipal Planning Prformanc Managmnt Rgulations,. Publishd in GN R796 in Govrnmnt Gaztt 65 4 August. Prtoria: Govrnmnt Publications. 4 TIDP 6- Fourth Rvision 79

5 Chaptr 5: Prformanc Managmnt Systm Th following dfinitions laborat on th figur 9 5 : Input Indicators Output Indicators Outcom Indicators Ths ar indicators that masur conomy fficincy. Thy masur what it costs th municipality to purchas th ssntials for producing dsird outputs (conomy), whthr th organisation achivs mor with lss (fficincy) without compromising quality. Th conomic indicators ar usually xprssd in unit cost trms (E.g. th unit cost for dlivring watr to a singl houshold). Efficincy indicators may b th amount tim, mony human rsourcs it took th Municipality to dlivr watr to a singl houshold. Output indicators dtrmin if a st activitis or procsss yild th dsird products. Thy ar ffctivnss indicators. Thy ar usually xprssd in quantitativ trms (i.. numbr or % ). An xampl would b th numbr housholds connctd to lctricity as a rsult th municipality s lctricity programm. Th output indicators rlat to programm activitis or procsss. Ths ar th indicators that masur th quality as wll as th impact th products in trms th achivmnt th ovrall objctivs. In trms quality, thy masur whthr th products mt th st stards in trms th prcptions th bnficiaris th srvic rndrd. Exampls quality indicators includ an assssmnt whthr th srvic providd to housholds complis with th applicabl stards or prcntag complaints by th community. In trms impact, thy masur th nt ffct th products/srvics on th ovrall objctiv. An xampl would b th prcntag rduction in th numbr houss dstroyd by fir du to th rplacmnt othr sourcs nrgy, as a rsult th lctricity programm. Outcom indicators rlat to programm objctivs. Th masurmnt costs, inputs, procss, outputs outcoms ar valuabl in dvlopmntal local govrnmnt. Ths sts diffrnt indicators rlat to th componnts, products ffcts organisational procsss. Thrfor, to summaris: Inputs ar what gos into a procss Costs ar what th inputs cost th organisation 5 Th CoT still nds to dvlop a balancd st indicators covring all typs indicators, as rquird by lgislation. TIDP 6- Fourth Rvision 8

6 Chaptr 5: Prformanc Managmnt Systm Procsss ar th st activitis involvd in producing somthing Output is th product or srvic gnratd Outcom is th impact or ffct th output bing producd th procss undrtakn An undrsting two typs indicators is imprativ to nsur ffctiv prformanc masurs. Ths ar composit indicators baslin indicators: Composit Indicators: Baslin Indicators: Output outcom indicators can b dvlopd for ach local govrnmnt function. Each function could hav a varity outcoms that nd to b masurd. Th dangr this is that th municipality could nd up with a vry long list indicators that bcoms difficult to manag communicat. On possibl rspons to this problm is to us composit indicators for ach sctor or programm (transport, watr, sanitation, lctricity, public participation, housing, tc.). Composit indics combin a st diffrnt indicators into on indx by dvloping a mathmatical rlationship btwn thm. Baslin indicators show th status quo or th currnt situation. Thy may indicat th lvl povrty, srvics, infrastructur, tc. Thy ar usually utilisd in th planning phas to indicat th challngs th organisation is facd with. Thy ar usd to assss whthr programms ar indd changing th challngs. Baslin indicators ar typically usd for rporting purposs no targts or scors ar attachd to thm. An xampl will b th numbr impovrishd housholds. Ths baslin indicators ar typical usd whn rporting to Dpartmnt Provincial Local govrnmnt (DPLG) on th status quo municipalitis. A municipality must idntify ths indicators for ach stratgic objctiv programms assss thm nsur that thy ar masurabl, clar, prcis, rlvant, adquat objctiv. Stting s is a lgal rquirmnt an important stp in th implmntation th prformanc managmnt systm. For CoT, both th political administrativ Excutiv will b involvd in dtrmining th stratgic s. Som gnral s hav bn st in Sction 4 th MSA Prformanc Managmnt Rgulations, Rgulation. Th Municipality includs th gnral indicators as part th City scorcard. Budgt alignmnt to th stratgic objctivs programm attainmnt is vital for succssful implmntation. Th aim prformanc basd budgting is to connct funds to st goals. From ths goals spcific objctivs ar dlinatd funds ar thn subdividd among thm. This typ budgting rquirs ky prformanc indicators as th outst. It links rsourcs to ths indicators so as to nsur ffctiv fficint outcoms. Objctivs activitis ar usd to rach intntions it also forms th bas for valuation. Linking rsourcs with rsults provids information on how much it cost to provid a givn lvl outcom. Th CoT mbarkd on a procss projct prioritisation to nsur bttr alignmnt btwn th IDP (stratgic objctivs, programms budgt). 5. PLANNING, MONITORING, REPORTING AND REVIEW FOR PERFORMANCE MANAGEMENT In planning for prformanc managmnt in th procss rviwing its policy, CoT has aimd to nsur that th systm complis with all th rquirmnts st out in lgislation with spcific rfrnc to th Rgulations othr prtinnt pics lgislation. Amongst othrs th CoT aims to: Show how it is going to oprat manag th systm from th planning stag up to th stags monitoring, valuation, rporting rviw; Indicat how th various stakholdrs rol-playrs including th community will b includd in th implmntation functioning th systm; Clarify how it will implmnt th systm within th framwork th IDP procss, including any procdurs to b followd; Addrss th mattr how tn rporting will tak plac to whom; TIDP 6- Fourth Rvision 8

7 Chaptr 5: Prformanc Managmnt Systm Link th organizational prformanc managmnt systm to th mploy prformanc managmnt systm. Mor dtail on th abov follows. 5. PLANNING AND REVIEW Sctions () (d) () th MSA stat that IDP a municipality must idntify all known projcts, plans programms to b implmntd within th municipality by any organ or stat as wll as th ky prformanc indicators st by th municipality. Th prformanc managmnt indicators should rlat back to th objctivs targts idntifid in th municipal IDP. Th IDP sts out th vision, objctivs dvlopmnt plans a municipality including th stratgic dvlopmntal objctivs, ky prformanc indicators targts agrd upon. Th IDP thrfor lays th basis for th ffctiv prformanc managmnt a municipality. Th CoT s Intgratd Dvlopmnt Plan (IDP) is a plan how th municipality will spnd its mony for th nxt fiv yars. It sts out th budgt prioritis th municipality. Th IDP is supportd by th Mdium Trm Rvnu Expnditur Framwork (MTREF) budgt. Th IDP is a tool th municipality can us to assist with th ffctiv us rsourcs. Th IDP givs focus to th stratgis th organisation hlps spd up dlivry attracts additional funds. Th CoT IDP was dvlopd with th aim to nsur public confidnc as it is a combind ffort btwn municipality community. If th municipality thrfor producs rsults, th public bcoms mor confidnt in thir capability will thus b mor rsponsiv to municipal rqusts. Th IDP can assist co-ordination btwn local, provincial national govrnmnt whom nds to work togthr to nsur th nds th community is mt. A good prformanc managmnt modl aligns th procsss prformanc managmnt to th IDP budgt procsss th organisation. An intgratd procss plan was adoptd by th CoT. It nsurs that th IDP is translatd into scorcards prformanc plans that will b monitord rviwd. Th CoT rviwd its objctivs so as to align it with nw national stratgic intnt. By using th Balancd Scorcard mthodology CoT dvlopd outcom rsults basd plan to nsur ffctiv implmntation its IDP. Th catgoris programm dlivry ar dirctly linkd to th outcoms stratgic objctivs. Ths rlat dirctly to th idntifid priority aras th IDP. In addition, th CoT is in th procss nsuring bttr alignmnt btwn th IDP th prformanc managmnt procsss systms. Through th IDP, CoT plans for prformanc managmnt, through prformanc managmnt CoT manags, monitors valuats th achivmnt th IDP. Involvmnt s in th prformanc structur a municipality crats an intgratd systm that, if applid ffctivly, will nsur improvd srvic dlivry. It is thrfor important to stablish structurs that will facilitat th maningful participation all stakholdrs in th dvlopmnt th systm consistnt with ky lgislation. Th clar idntification stakholdrs in s is crucial to nsur succss. Stakholdrs may includ groups within citizns s, councilors, ficials partnrs. Diffrnt stakholdrs play diffrnt rols within th prformanc managmnt systm th rol ach must b acknowldgd plannd for. Th CoT mbarkd on xtnsiv community basd planning procss that also providd fdback to s in March. Th focus at th IDP Rprsntativ Forum will b spcifically to nhanc community participation. Chaptr 6 th MSA mphasiss that th municipality must implmnt a prformanc managmnt systm that is in lin with th prioritis, objctivs, indicators targts containd in th IDP. Th saying what you masur you bcom is appropriat bcaus it is only in th cours prformanc managmnt that a municipality will know whthr it is achiving its prioritis through an intgratd planning implmntation procss. Through consultation with th community othr ky stakholdrs, th IDP procss will hlp to dfin: Dlivry prioritis objctivs. Th objctivs clarly idntify th dvlopmntal prioritis th CoT. Th institution xpd on th roll-out plan in th SDBIP to nsur that it is tangibl masurabl; Transformational initiativs to b undrtakn by th institution to nsur bttr ffctiv alignmnt; projcts initiativs to b implmntd to achiv th dlivry prioritis objctivs; Indicators to b dvlopd around ths to nsur focus is shiftd; Financial rsourcs usd to ralis th prioritis; TIDP 6- Fourth Rvision 8

8 Chaptr 5: Prformanc Managmnt Systm Institutional balanc lad lag indicators th inclusion th stratgic indicators as prscribd in Sction 4 th MSA into th City Scorcard. Ths stratgic indicators ar: o o o o o o o Th prcntag housholds with accss to basic lvl watr, sanitation, lctricity solid wast rmoval. Th prcntag housholds arning lss than R pr month with accss to fr basic srvics. Th prcntag th municipality s capital budgt actually spnt on capital projcts idntifid for a particular financial yar in trms its IDP. Th numbr jobs cratd through th municipality s local conomic dvlopmnt initiativs including capital projcts. Th numbr popl from mploymnt quity targt groups mployd in th thr highst lvls managmnt in complianc with CoT s approvd mploymnt quity plan. Th prcntag th municipality s budgt actually spnt on implmnting its workplac skills plan. Financial viability which looks at dbt covrag, outsting dbtors to srvic rvnu, cost covrag. Th CoT continuously aims to nsur that its targts comply with th Prformanc Managmnt Rgulations (Chaptr, Rgulation, ). Thrfor th targts st in th IDP hav to: B practical ralistic; Masur how ffctiv fficint th CoT is, as wll as what th impact it is making; 6 Clarly indicat who (which dpartmnt) will dlivr a targt; Hav corrsponding rsourcs; Includ th budgt; Rlat to th prioritis objctivs for dvlopmnt as in th IDP; Updat targts against achivmnt, community prioritis, availabl rsourcs th national stratgic agnda 7. Th abov thus nsurs that indicators dtrmin stratgy. Th CoT draws its analysis from th Annual Rport that provids fdback on th succss or not th IDP targts. Alignd stratgis to idntifid indicators will nsur coopration on all organizational lvls. Th CoT mbarkd on a stratgic planning approach to align its IDP outcoms objctivs to spcific indicators. Ths indicators rflctd th stablishmnt ky programms within th Corporat Scorcard. Indicators wr linkd to dpartmntal divisional scorcards in turn to th implmntation th SDBIP. Through prformanc-basd budgting CoT strivs to prioritis programms projcts basd on th stratgis st out in th IDP SDBIP th municipality. To nsur th ffctiv us financial rsourcs th SDBIP is brokn down into quartrly targts. Ky prformanc indicators inclusiv baslin, input, output outcom indicators targts with st dats ar usd to nsur th achivmnt IDP outcoms objctivs. Th rlationship btwn organizational prformanc mploy prformanc starts from th planning phas. Th PM Systm yilds a st indicators targts. Ths bcom an undrtaking th municipality to th community. Th City Scorcard information is incorporatd into th City Managr s prformanc agrmnt as sh/h is rsponsibl for implmnting th PM Systm. Prformanc objctivs targts which ar practical, masurabl basd on ky prformanc indicators st out from th municipality s IDP programms dvlopmnt objctivs provid th guidlins th prformanc Sction 57 managrs. Whn projcts programms ar implmntd, a framwork is stablishd to track prformanc managrs who in turn do th sam for lowr lvl staff. In this way th prformanc plans all staff, starting from Sction 57 managrs ar linkd to th objctivs outcoms th IDP. Within th paramtrs an mploy prformanc managmnt systm a framwork for prformanc rviws ar to b stablishd. This framwork clarifis aras prformanc to b rviwd, rviw mthods to b usd rviw intrvals to b applid. In this way th prformanc th organisation is intgrally linkd to that staff. If mploys do not prform th organisation will fail. 6 Th CoT currntly with th nw framwork procdur manual to b dvlopd on how bttr alignmnt btwn implmntation impact can b achivd through th outcom indicators xisting CoT businss procsss. 7 Th IDP rviw cycl will b addrssd in th procdur manual as to nsur that th municipal Lkgotla giv timous dirctd input into th City Scorcard. TIDP 6- Fourth Rvision 8

9 Chaptr 5: Prformanc Managmnt Systm According to National Trasury 8 prformanc information that indicats how wll an institution is mting its aims objctivs, which policis procsss ar working is rquird to dtrmin th ffctiv prformanc an institution. Prformanc managmnt is th primary mchanism to monitor, rviw improv on th activitis a municipality. It is an intgratd approach that links city prformanc to individual prformanc aimd at improving planning (rviwing), budgting, monitoring rporting. Basd on th abov, a municipality must rviw it prformanc managmnt systm annually in ordr to: idntify th strngths, waknsss, opportunitis thrats th municipality in mting th ky prformanc indicators prformanc targts st by it, as wll as th gnral ky prformanc indicators prscribd by Rgulation (7 Gnral s) rviw th ky prformanc indicators st by th municipality in trms Rgulation 9 (input, output, outcom) allow th local community to participat in th rviw procss Through th rviw procss it is stablishd whthr objctivs, ky prformanc indicators, targts projcts hav bn achivd or whr changs should b mad whr th municipality did not achiv on its objctivs, ky prformanc indicators, targts projcts thrby nsurs that it dlivrs on its srvic dlivry complis with lgislation. Th rviw procss starts with th rviw th IDP whr stratgis, objctivs, outcoms, outputs, targts prformanc indicators ar rviwd. Flowing from th rviw th IDP, th SDBIP Individual Prformanc Plans ar rviwd to nsur that th IDP is implmntd on oprational lvl is monitord, assssd, rportd, valuatd rviwd on quartrly basis. Prformanc rviw is a procss whrby th organization, aftr masuring its own prformanc, asssss whthr it is doing th right thing by: Analyzing th information to s whthr targts hav bn mt whthr th futur targts will b ralizd. Bnchmarking to compar th prformanc th City with othr similar citis. Survys to obtain fdback from th community about thir viws th prformanc th municipality. Ensurs th organizational scor is rflctd th sam as th individual Sction 57 scor achivd. Th rviw taks plac simultanously with th IDP rviw adjustmnt budgt phass. Th CoT has to dat applid all mthods in assssing its prformanc, is continuously sking ways to improv assssmnt its prformanc. 5. MONITORING Monitoring ( scoring through assssmnt) is th first stp in th implmntation th prformanc managmnt systm. Monitoring is th procss data managmnt that includs collction, gathring, storing managmnt information. Assssmnt mans th masurmnt data by mans a scoring procss. Th assssmnt procss is thus th gathring th information against targts to track th progrss dlivry against th ky objctivs stratgis. Monitoring is th rgular obsrvation rcording activitis taking plac in th City, Corporat, Dpartmntal Divisional Scorcards. It is a procss routinly gathring information on all aspcts th stratgic objctiv, ky prformanc indicator, dvlopmntal objctivs for ach programm or projct. Monitoring spcifically involvs th managmnt into th ky prformanc indicators. Onc a municipality has dvlopd baslins, outcom, output, prformanc indicators targts in th IDP, SDBIP Individual Prformanc Plans, it must st up mchanisms systms to monitor th xtnt to which prspctivs, objctivs, programms, projcts procsss ar ralizd. Th Rgulations Chaptr rads: 8 National Trasury. 7. Framwork for Managing m Prformanc Information. Prtoria: Formst Printrs. TIDP 6- Fourth Rvision 84

10 Chaptr 5: Prformanc Managmnt Systm () A municipality must, aftr consultation with th local community, dvlop implmnt mchanisms, systms procsss for th monitoring, masurmnt rviw prformanc in rspct th ky prformanc indicators prformanc targts st by it () Th mchanisms, systms procsss for monitoring in trms sub rgulation () must: (a) Provid for rporting to th municipal council at last twic a yar; (b) B dsignd in a mannr that nabls th municipality to dtct arly indications undrprformanc; (c) Provid for corrctiv masurs whr undr-prformanc has bn idntifid. Th Guidlins 5.4 furthrmor inform that prformanc monitoring is an ongoing procss that runs paralll to th implmntation th agrd IDP. Th CoT has dvlopd a monitoring framwork that idntifis th rsponsibilitis th diffrnt rol-playrs in monitoring masuring its prformanc allocatd spcific tasks in rspct th gathring data submission rports. Th CoT systm nsurs that spcific tasks ar allocatd to th gathring data submission rports. It also nsurs that procdurs ar in plac to collct, stor, vrify analys data to produc rports. Th CoT is busy rfining its systms to provid for a singl point ntry whrby information cannot b manipulatd or changd. Is dsignd in a mannr that nabls th municipality to dtct arly undr-prformanc Th Scorcard systm was dvlopd to assist with th monitoring th IDP SDBIP implmntation procsss. For th first tim an arly warning managmnt systm through th scorcard mthodology was dsignd for th City Managr th Excutiv Mayor to dtct undr- or for that mattr ovr prformanc. Provids for corrctiv masurs whr undr-prformanc has bn idntifid (organisational mploy prformanc managmnt). R-dircts th prformanc managmnt systm to mak availabl accssibl managmnt information data for bttr dcision-making. Prformanc monitoring is thus an ongoing procss that runs paralll to th implmntation th agrd IDP. Th monitoring framwork is dalt with th procdur manual th CoT: Idntifis th rols th diffrnt rol playrs in monitoring masuring th municipality s prformanc. Allocats spcific tasks to th gathring data submission rports. Dtrmins th data that must b collctd in ordr to assss prformanc, how that data is to b collctd, stord, vrifid analysd how rports on that data ar to b compild. Is dsignd in a mannr that nabls th municipality to dtct arly indications undr-prformanc Provids for corrctiv masurs whr undr-prformanc has bn idntifid Compars currnt prformanc with prformanc during th prvious financial yar baslin indicators. 5. EVALUATION Evaluation is making sns what is happning. Analysing valuating th maning th information applying th undrsting to improv dlivry its impact on th popl in th Municipality. Thr diffrnt lvls ovrsight ar rquird, i.. administrativ ovrsight, political ovrsight, indpndnt financial ovrsight. Within ths procsss th Ovrsight Committ, Mayoral Committ Prformanc Audit Committ play a ky rol in valuating th succss th municipality in trms rsults or non-rsults Evaluation involvs assssing th strngths waknsss programms, prsonnl organisations to improv ffctivnss srvic dlivry. Sinc thr is no singl, bst approach to valuation which can b usd in all situations, it is important to dcid on th purpos th valuation, th qustions you want to answr, th mthods to b usd to obtain valid information. Evaluation should nvr b sn as a st-alon procss but rathr as a part an intgratd tool to dtrmin whthr a municipality is functioning ffctivly, fficintly conomically. For th valuation procss to b ffctiv, it should comply with th following guidlins: TIDP 6- Fourth Rvision 85

11 Chaptr 5: Prformanc Managmnt Systm Evaluation should b conductd rgularly continuously. Evaluation should b conductd in trms th prdtrmind goals st. A holistic approach to th organisation as a whol nds to b adoptd during valuation. In dpth collation analysis th information must b conductd. Political valuation is addrssd through th Portfolio, Mayco Council Ovrsight Committ functions. Councils ar vstd with th rsponsibility to ovrs th prformanc thir rspctiv municipalitis, as rquird by th Constitution, th Municipal Financ Managmnt Act (MFMA) Municipal Systms Act (MSA). This ovrsight rsponsibility Council is particularly important for th procss considring Annual Rports. Th MFMA givs ffct to financial managmnt rforms that mphasis improvd srvic dlivry rsponsibilitis on managrs maks thm mor accountabl for prformanc. Th Mayor th CoT rmains accountabl to rsolv any prformanc failurs, but ultimatly it is th Council that is vstd with th authority rsponsibility to ovrs both th Excutiv Administration th Municipality. Sction 8 th Municipal Structurs Act maks provision for th Excutiv Mayor to appoint committs or Councillors to assist th Excutiv Mayor. On such committ that can b appointd is th Portfolio Committ. Th Portfolio Committ can b matd to assist in th valuation th quartrly prformanc rports by way commnt with rspct to th achivmnt th st stratgis, as approvd by Council. As this is a function that will happn at rgular intrvals during th yar, th Portfolio Committ can thrfor fulfil th Formativ Evaluation th Prformanc Managmnt systm. Anothr is th Prformanc Audit Committ. This committ monitors th quality intgrity th prformanc managmnt systm so as to nsur quity consistncy in th application valuation norms stards. Th committ s function is also to provid impartial rcommndations on prformanc ratings to th Mayco aftr compltion objctiv appraisals. Furthr to this th MFMA givs Council a numbr financial managmnt tasks to fulfil its ovrsight rol. Sction 9 th MFMA rquirs th CoT considr th annual rports its Municipality municipal ntitis to adopt an ovrsight rport containing th Council s commnts on ach Annual Rport. Th Ovrsight Rport must includ a statmnt on whthr th Council: has approvd th annual rport, with or without rsrvations; has rjctd th annual rport; or Has rfrrd th annual rport back for rvision thos componnts that can b rvisd. All mtings Council th ovrsight committ at which an Annual rport is considrd must b opn to th public a rasonabl tim must b allowd for discussion any writtn submissions rcivd for mmbrs th community organs stat to addrss th mtings. At th sam tim that th committ is analysing th rport in dtail, othr councillors should also b conducting thir own rviw th rport. This can includ discussions with constitunts, Ward Committs Ward Rprsntativs to ncourag inputs commnts to prpar for th full Council mting that considrs th Annual rport Ovrsight rport. Indpndnt Evaluation is also to b don by th Auditor Gnral on both th financial statmnts as wll as th annual prformanc rport achivmnts. Administrativly th valuation will b don as pr th institutional arrangmnts. 5.4 REPORTING Rporting rquirs that th municipality taks th prioritis th organization, its prformanc objctivs, indicators, targts, masurmnts analysis, prsnts this information in a simpl accssibl format, rlvant usful to th spcific targt group, for rviw. Th Srvic Dlivry Budgt Implmntation Plan (SDBIP) is th basis to mt Cot our rporting rquirmnts. Gnrally four rports ar submittd pr annum to Council. Monthly rports ar gnratd for th top xcutiv managmnt Mayco mtings. Th following is an ovrviw th diffrnt kinds rports rquird. TIDP 6- Fourth Rvision 86

12 Chaptr 5: Prformanc Managmnt Systm Rport Typ Monthly / ly IDP SDBIP rporting Dscription Th SDBIP is a ky managmnt, implmntation monitoring tool, which provids oprational contnt to th nd--yar srvic dlivry targts st in th budgt IDP. It dtrmins th prformanc agrmnts for th municipal managr all top managrs, whos prformanc can thn b monitord through sction 7 monthly rports, valuatd through th annual rport procss. Th SDBIP information on rvnu will b monitord rportd monthly by th municipal managr in trms Sction 7()(a) (). For xampl, if thr is lowr than anticipatd rvnu an ovrall cash shortag in a particular month th municipality may hav to rvis its spnding downwards to nsur that it dos not borrow mor than anticipatd. Mor importantly, such information rquirs th municipality to tak urgnt rmdial stps to nsur it improvs on its rvnucollction capacity if th municipality wants to maintain its lvls srvic dlivry xpnditur. Sction th MFMA, Act 56 stats that th SDBIP as a dtaild plan approvd by th mayor a municipality in trms srvic dlivry should mak projctions for ach month th rvnu to b collctd, by sourc, as wll as th oprational capital xpnditur, by vot. Th srvic dlivry targts prformanc indicators nd to b rportd on quartrly (MFMA, ). Mid-yar budgt rport Prformanc rport Annual rport Sction 7 th MFMA rquirs th accounting ficr to prpar submit a rport on th prformanc th municipality during th first half th financial yar. Th rport must b submittd to th mayor, National Trasury as wll as th rlvant Provincial Trasury. As with all othr rports this is a crucial rport for th Council to considr mid-yar prformanc what adjustmnts should b mad, if ncssary. Sction 46 th Municipal Systms Act stats that a municipality must prpar for ach financial yar, a prformanc rport that rflcts th following: Th prformanc th municipality ach xtrnal srvic providd during that financial yar; A comparison th prformancs rfrrd to in th abov paragraph with targts st for prformancs in th prvious financial yar; Masurs to b takn to improv on th prformanc Th prformanc rport must b submittd at th nd th financial yar will b mad public as part th annual rport in trms chaptr th MFMA. Th publication thr will also afford th public th opportunity to judg th prformanc th municipality against th targts st in th various planning instrumnts. Evry municipality vry municipal ntity undr th municipality s control is rquird by Sction to prpar an annual rport for ach financial yar, which must includ: th annual financial statmnts th municipality or municipal ntity as submittd to th Auditor-Gnral for audit (, if applicabl, consolidatd annual financial statmnts); th Auditor-Gnral s audit rport on th financial statmnts; an assssmnt by th accounting ficr any arrars on municipal taxs srvic chargs; particulars any corrctiv action takn or to b takn in rspons to issus raisd in th audit rports; any xplanations that may b ncssary to clarify issus in connction with th financial statmnts; TIDP 6- Fourth Rvision 87

13 Chaptr 5: Prformanc Managmnt Systm Rport Typ Ovrsight rport Dscription any information as dtrmind by th municipality, or, in th cas a municipal ntity, th ntity or its parnt municipality; any rcommndations th municipality s audit committ, or, in th cas a municipal ntity, th audit committ th ntity or its parnt municipality; an assssmnt by th accounting ficr th municipality s prformanc against th masurabl prformanc objctivs for rvnu collction for ach vot in th municipality s approvd budgt for th rlvant financial yar; an assssmnt by th accounting ficr th municipality s prformanc against any masurabl prformanc objctivs st in trms th srvic dlivry agrmnt or othr agrmnt btwn th ntity its parnt municipality; th annual prformanc rport prpard by a municipality; any othr information as may b prscribd. Sction 7 prscribs th submission tabling annual rports. In trms this sction: ) Th accounting ficr a municipal ntity must, within six months aftr th nd a financial yar, submit th ntity s annual rport for that financial yar to th municipal managr its parnt municipality. ) Th mayor a municipality must, within svn months aftr th nd a financial yar, tabl in th municipal council th annual rport th municipality any municipal ntity undr th municipality s sol or shard control. ) If th mayor, for whatvr rason, is unabl to tabl in th council th annual rport th municipality, or th annual rport any municipal ntity undr th municipality s sol or shard control, within svn months aftr th nd th financial yar to which th rport rlats, th mayor must: (a) submit to th council a writtn xplanation stting out th rasons for th dlay, togthr with any componnts th annual rport that ar rady; (b) Submit to th council th outsting annual rport or th outsting componnts th annual rport as soon as may b possibl. Th council a municipality must considr th municipality s annual rport ( that any municipal ntity undr th municipality s control), in trms Sction 9, within two months from th dat tabling th annual rport, must adopt an ovrsight rport containing th council s commnts, which must includ a statmnt whthr th council: (a) has approvd th annual rport with or without rsrvations; (b) has rjctd th annual rport; or (c) has rfrrd th annual rport back for rvision thos componnts that can b rvisd. In trms Sction, th following documnts must b submittd by th accounting ficr to th provincial lgislatur within svn days aftr th municipal council has adoptd th rlvant ovrsight rport: (a) th annual rport (or any componnts thr) ach municipality ach municipal ntity in th provinc; (b) All ovrsight rports adoptd on thos annual rports. It is important to not that th ovrsight committ working with ths rports should b chaird by th opposition party. TIDP 6- Fourth Rvision 88

14 Chaptr 5: Prformanc Managmnt Systm 5.4 INDIVIDUAL PERFORMANCE Municipal Prformanc Rgulations for Municipal Managrs Managrs Dirctly Accountabl to th Municipal Managr 9, hraftr rfrrd to as Rgulations 6, sk to st out how th prformanc Municipal Managrs will b uniformly dirctd, monitord improvd. Th Rgulations addrss both th Employmnt Contract a municipal managr managrs dirctly accountabl to th municipal managr as wll as th Prformanc Agrmnts that is ntrd into btwn rspctiv municipalitis, municipal managrs managrs dirctly accountabl to municipal managrs. Combind ths instrumnts nsur a basis for prformanc continuous improvmnt in local govrnmnt. Basd on ths rgulations, ach Municipality must stablish a prformanc managmnt systm that commnsurat with its rsourcs, bst suitd to its circumstancs in lin with th City Objctivs, th corporat dvlopmntal objctivs, s, targts containd in its IDP SDBIP. Sction 5() () th Rgulations (6) stats that prformanc objctivs for ach mploy must b stablishd. Th prformanc objctivs targts must b mt by th mploy th tim fram within which thos prformanc objctivs targt must b mt must b st out. Th aim stablishing prformanc objctivs targts is to promot a cultur prformanc managmnt among political structurs, political fic barrs councilors th administration a municipality. Th purposs a prformanc managmnt agrmnt ar to: Spcify objctivs targts dfind agrd with th mploy to communicat to th mploy th mployr s xpctations th mploy s prformanc accountabilitis in alignmnt with th Intgratd Dvlopmnt Plan, Srvic Dlivry Budgt Implmntation Plan (SDBIP) th Budgt th municipality. Spcify accountabilitis as st out in a prformanc plan, which forms an annxur to th prformanc agrmnt. Spcify plan for comptncy gaps as st out in a prsonal dvlopmnt plan (PDP), which forms an annxur to th prformanc agrmnt (a PDP for addrssing dvlopmntal gaps which hav bn idntifid during th prvious financial yar must form part th annual rvisd prformanc agrmnt). Monitor masur prformanc against st targtd outputs. Us th prformanc agrmnt as th basis for assssing whthr th mploy has mt th prformanc xpctations applicabl to his or hr job. In th vnt outsting prformanc, to appropriatly rward th mploy. Giv ffct to th mployr s commitmnt to a prformanc-orintatd rlationship with its mploy in attaining quitabl improvd srvic dlivry. Th Local Govrnmnt: Municipal Prformanc Managmnt Rgulations for Municipal Managrs managrs dirctly accountabl to Municipal Managrs (R85, 6) stats that Sction 57 managrs must b appointd in trms a writtn mploymnt contract a sparat prformanc agrmnt. R 85 rgulats mploymnt contracts, prformanc agrmnts including prformanc plans job dscriptions Sction 57 managrs. It is practic within th CoT to appoint lvl managrs on a contract basis to xpct lvl managrs to sign a prformanc agrmnt. To nsur parity in th application prformanc managmnt practics lvl managrs provid a link to prmannt mploys. Th prformanc agrmnt dmonstrats a two-way commitmnt: Th Employr must: Crat an nabling nvironmnt to facilitat ffctiv prformanc by th mploy; Provid accss to skills dvlopmnt capacity building opportunitis; 9 Dpartmnt Provincial Local Govrnmnt. 6. Local Govrnmnt Municipal Prformanc Rgulations for Municipal Managrs Managrs dirctly accountabl to Municipal Managrs. R 85. August 6. Availabl at: [Accssd: Dcmbr 9]. TIDP 6- Fourth Rvision 89

15 Chaptr 5: Prformanc Managmnt Systm Work collaborativly with th mploy to solv problms gnrat solutions to common problms that may impact on th prformanc th mploy; On th rqust th mploy dlgat such powrs rasonably rquird by th mploy to nabl him or hr to mt th prformanc objctivs targts stablishd in trms th agrmnt; Mak availabl to th mploy such rsourcs as th mploy may rasonably rquir from tim to tim assisting him or sh to mt th prformanc objctivs targts stablishd in trms th agrmnt. Will consult th mploy about th spcific prformanc stards that will b includd in th prformanc managmnt systm as applicabl to th mploy Consult timly with th mploy whr th xrcising th powrs will hav, amongst othrs a dirct ffct on th prformanc any th mploy s functions or commit th mploy to implmnt or to giv ffct to a dcision mad by th mployr or hav a substantial financial ffct on th mployr. Agrs to inform th mploy th outcom any dcisions takn pursuant to th xrcis powrs contmplatd in th aformntiond as soon as is practicabl to nabl th mploy to tak any ncssary action without dlay. Th mploy: Agrs to participat in th prformanc managmnt systm that th mployr adopts or introducs for th municipality. Accpts that th purpos th prformanc managmnt systm will b to provid a comprhnsiv systm with spcific prformanc stards to assist th mployr, managmnt municipal staff to prform to th stards rquird. Undrtaks to activly focus towards th promotion implmntation th Ky Prformanc Aras (KPA s) (including spcial projcts rlvant to th mploy s rsponsibilitis) within th local govrnmnt framwork. Th prformanc agrmnt dmonstrats th willingnss by th mploy to participat in th prformanc managmnt systm that has bn adoptd by th CoT, xprssd in th implmntation th four phass th prformanc managmnt cycl. thing in th agrmnt diminishs th obligations, dutis or accountabilitis th mploy in trms his or hr mploymnt contract, or th ffcts xisting or nw rgulations, circulars, policis, dirctivs or othr instrumnts. Th prformanc agrmnt provids for th critria upon which th prformanc th mploy must b assssd. Th critria consist two componnts th mploy must b assssd against both componnts. Ths componnts ar th Ky Prformanc Aras (KPA s) th Cor Comptncy Rquirmnts (CCR s). KPA s covring th main aras work will account for 8% CCR s will account for % th final assssmnt. Th mploy s assssmnt will b basd on his or hr prformanc in trms th outputs/outcoms (prformanc indicators) idntifid as pr th prformanc plan which ar linkd to th KPA s, which constitut 8% th ovrall assssmnt rsult as pr th wightings agrd to btwn th mployr mploy. Th prformanc managmnt cycl includ four phass (s Figur ). Figur : Prformanc Managmnt Cycl PHASE PLANNING What is th mploy xpctd to do this yar? PHASE COACHING How wll is th mploy doing during th yar? PHASE 4 REWARDING What rcognition will th mploy gt for TIDP 6- Fourth outsting Rvision prformanc? 9 PHASE REVIEWING How wll has th mploy don now that it is th nd th yar?

16 Chaptr 5: Prformanc Managmnt Systm Th ky prformanc aras targts rflctd in th scor card ar st by th incumbnt in consultation with th dirct suprvisor basd on th Intgratd Dvlopmnt Plan, Srvic Dlivry Budgt Implmntation Plan (SDBIP) th Budgt th municipality. 5.4 CONCLUSION Prformanc managmnt is a procss which strtchs right through th organisation, from its vision mission statmnt, to its objctivs vntually its staff. It applis to th prformanc an organisation as wll as to all prsons rlatd to it. Within th South African Municipal nvironmnt this also includs th political figurs who ar rsponsibl for that organisation. As indicatd arlir, th Whit Papr on Local Govrnmnt (997) stats that ky mchanisms to nsuring srvic xcllnc in municipalitis includ intgratd dvlopmnt planning, prformanc managmnt community participation. As a start thr ar things that a municipality simply must do. It must: Establish a prformanc managmnt systm that is commnsurat with its rsourcs, bst suitd to its circumstancs in lin with its targts, prioritis objctivs containd in its IDP. Promot a cultur prformanc managmnt among its political structurs, political fic-barrs, councillors administration. Administr its affairs in an conomical, ffctiv, fficint accountabl mannr (Municipal Systms Act, ). Appropriat Ky Prformanc Indicators must b stablishd to srv as a yardstick for masuring individual organisational prformanc. Ths ky prformanc indicators should includ outcoms th impact a prformanc ara with rgards to a municipality s dvlopmnt prioritis objctivs as st out in its IDP. In light th abov, th CoT is wll undrway to following th intnt rquirmnts lgislation will soon conclud a comprhnsiv approach on how th systm can fulfil obligations to th fullst xtnt intndd by law. During th nxt phas implmntation narrowr attntion will b givn to IDP budgt alignmnt, public viw on masurmnt achivmnt, th plot businss procsss to ffctivly start to masur th organisational prformanc into oprational xpnditur. TIDP 6- Fourth Rvision 9

17 Chaptr 6: Way Forward CHAPTER 6:: WAY FORWARD 6.. INTRODUCTION Effctiv planning dvlopmnt within municipalitis is imprativ to nsur th maximisation social dvlopmnt conomic growth. An IDP is thrfor th vhicl that municipalitis us to provid vision, ladrship dirction to all thos involvd in th dvlopmnt a municipal ara. Th IDP nabls municipalitis to us scarc rsourcs most ffctivly fficintly to spd up dlivry. Th Fourth Rvisd IDP is th fourth final rvision th scond fiv-yar cycl th Tshwan Intgratd Dvlopmnt Plan (TIDP) (6 to ) is th nd product a month procss planning consultation to rviw th Third Rvisd TIDP was utilisd to inform th compilation th Municipality s thr yar / MTREF. It is basd on lssons larnd changing nvironmnts focusd on th following: Alignmnt with national provincial issus importanc; Strngthning th analysis stratgic planning procsss; Zonal planning procss that startd to involv th s in th analysis planning procsss. Mor mphasis was placd on ara-basd intrvntions addrssing th nds spcific s; Bttr coordination through a programmatic approach focusd budgting procss; Strngthning prformanc managmnt monitoring systms. As a rspons to nw dms rquirmnts stipulatd in lgislation, political mat situational ralitis, th City mbarkd on an intns stratgic assssmnt planning procss (as st out in Chaptr ) th Fourth Rvisd TIDP is th nd product this procss. Th nxt yar (July to Jun ) will focus on th dlivring th stratgis, plans, programms promiss st out in th Fourth Rvisd TIDP, through th Srvic Dlivry Budgt Implmntation Plan (SDBIP) /, nsuring implmntation, monitoring assssmnt th abov in trms th City s prformanc managmnt procsss. It will, howvr, also b a yar whr th CoT will mbark on a procss to dvlop compil its third Tshwan 5- yar Tshwan Intgratd Dvlopmnt Plan ( to 6). This documnt will coincid with th nxt political trm to commnc in. 6. THIRD FIVE YEAR CYCLE Th CoT in dvloping its stratgic prioritis for th IDP, alignd objctivs to contribut towards th achivmnt both National Provincial stratgic prioritis as wll as taking cognisanc th Local Govrnmnt Turnaround Stratgy (LGTAS) initiativs. Th CoT idntifid stratgic aras importanc (infrastructur dvlopmnt as wll as conomic, social ladrship dvlopmnt) that will rciv attntion during th nxt TIDP cycl as wll as th nxt fiv yars. Th xisting stratgic plan th CoT was rviwd in ordr to rflct th nwly idntifid stratgic aras importanc. Accordingly it was agrd that mphasis should b placd on th provision ffctiv fficint basic srvics, th dvlopmnt th rth formal undvlopd aras. Eight stratgic objctivs wr dvlopd to nsur that th CoT achiv th abov. Ths stratgic objctivs ar covrd in mor dtail in Chaptr TIDP 6- Fourth Rvision 9

18 Chaptr 6: Way Forward To achiv ths ight objctivs th CoT has initiatd a numbr programms, which was slctd dtrmind not only by national provincial intnt but also by rviwing th status quo srvic dlivry within CoT, that ncompass support th achivmnt th stratgic objctivs. Planning for th nxt fiv yar cycl will thrfor b mbarkd upon with th rvisd stratgic objctivs in mind as wll as th undrsting that municipalitis ar at th forfront th national ffort to rctify th political, social conomic imbalancs th past. Th planning ffort will thus b basd on guidd by th intntion th City s stratgic objctivs, namly: To srv all th community by providing affordabl, qualitativ ffctiv lvls basic or highr lvls srvic. Eradicating srvic backlogs, balancd with community nd prioritis availabl funding that can b lvragd through own rsourcs grant sourcs th maintnanc xisting srvic rlatd infrastructur nsuring th provision for growth, will b prioritisd in both oprational capital works budgts. To incras th lvl conomic activity in its rgions thrby crat growth job cration opportunitis, rsulting in a mor prosprous community that can participat in a mor quitabl sharing conomy. Emphasis will b placd on slf sustaining programms that will allviat povrty capacitat th unmployd sctor - nsuring that th first scond conomy mt ach othr for an inclusiv conomy to b stablishd. To build clan, halthy, saf s by rstoring human dignity installing community valu systms, fight povrty providing intgratd social srvics. To fostr participatory dmocracy Batho Pl principls through a caring, accssibl accountabl srvic. To dvlopmnt sound institutional govrnanc that will srv as an intrnal control systm ncompassing lgislation, policis, procdurs popl, addrss th xpctations all stakholdrs by dircting controlling managmnt activitis with good systms procsss. To focus th City s financial synrgy around issus such as whr to invst, whr to harvst, how to balanc risk how to nsur customrs pay. To optimally transform th institution in ordr to build nsur capacity to dlivr on th st stratgic objctivs. To achiv th objctivs, th CoT will furthr dvlop plan th numbr programms initiatd in th Fourth Rvisd TIDP (s Chaptr ). Som ths programms includ: Building customr rlationships to nhanc th intraction with s or stakholdrs; Th ongoing improvmnt implmntation th Intrgovrnmntal Rlations Framwork; Strngthning initiativs to incras community capacity allviat povrty, rlatd to th provision srvics support to HIV/AIDS TB suffrrs, substanc abusrs, childrn, th youth th ldrly allviating rducing unmploymnt through th provision work opportunitis coupld with skills training - dvloping ntrprnurs, businss tchnical skills; Enhancing th City s budgt rviw procsss incrasing rvnu nhancmnt fforts; Th ffctiv managmnt th budgt to nsur that xpnss rmain within th framwork financial allocations th aim bing to scur a positiv cash flow position for th CoT; Rinforcing sound supply chain managmnt procsss to rduc budgt wast improv usag availabl rsourcs; A numbr othr initiativs ar nvisagd to promot conomic sctor dvlopmnt. Exampls ths initiativs includ: o Co-oprativ dvlopmnt programm to promot invstmnt trad; o Implmntation an Industrial Dvlopmnt Stratgy; o Implmntation th Job Assmbly Work Club Projct; o Capacity-building programm for SMMEs; o SMME Contact Cntr; o Implmntation a Trad Dvlopmnt m; o Formulation a Mtropolitan Economic Dvlopmnt Stratgy; o Formulation a Local Economic Dvlopmnt Sctoral Stratgy; o Implmntation an Automotiv Dvlopmnt m; TIDP 6- Fourth Rvision 9

19 Chaptr 6: Way Forward Promoting sound govrnanc via Intgratd Corporat Portfolio Managmnt, ongoing stratgic alignmnt, intgratd information tchnology, continud consistnt auditing, nforcmnt policis by-laws, maintaining ffctiv, fficint transparnt systms financial risk managmnt ffctiv administration; Th provision quality infrastructur srvics basd on sound planning spatial rfrncing. Th City will nsur ongoing growth its conomic spacs, provid infrastructur in undrdvlopd s, maintain xisting infrastructur invstmnts, promot incrasd proprty valus through sound planning policis dvlopmnt managmnt, build maintain a transportation ntwork for th movmnt popl commoditis, provid accss to th rang opportunitis that th City frs; Sking to furthr nhanc institutional transformation through incrasd rsarch dvlopmnt, th City will optimis its human capital, promot a halthy, saf lgislativ compliant work nvironmnt strngthn xisting labour rlations programms. Th chang in approach shall bring about masurabl procsss against th stratgy budgt that will srv as a managmnt tool for dcision-making. It will instil confidnc that th CoT has at th nd th financial yar, achivd an intgratd IDP, Budgt SDBIP framwork that has bn cascadd through th organisation has nabld th City to masur financial managmnt, clint valu proposition, institutional procsss (fficincis affctivity) th skills comptncy lvls its popl. Stakholdrs will hav th confidnc that th City has focusd its rsourcs in trms th stratgic intnt. In ordr for th City to addrss th implmntation th abov, a comprhnsiv procss plan has alrady bn dvlopd. 6. THE THIRD FIVE YEAR CYCLE PROCESS Th intntion th procss plan that will guid th third Tshwan 5-yar TIDP is not only to comply with th rlvant lgislation, but also to apply a numbr lssons obsrvd through th prvious IDP cycls, align a numbr procss lgislativ rquirmnts put in plac a planning procss that can facilitat community participation. Although concrtd ffort was mad in th past to nsur a consultativ participatory IDP rviw budgt compilation procsss, thr wr many lssons that mrgd that indicatd that mor could b don to improv th procsss. Th City has significantly rfind its IDP rviw budgt compilation procss to: Crat mor opportunitis for mor maningful ngagmnt by all stakholdrs; Support, allow for, th rgions to play a mor activ rol in th procsss; Provid for mor ffctiv dcision-making points in th procss; Crat mor synrgy btwn planning budgting. Th procss plan phass milstons thrfor involv th following: Th adoption a procss plan as part th approval th / IDP. Th procss has thrfor alrady bn initiatd bfor th commncmnt th nw budgt yar allows for an arly start. Th analysis phas alrady starts in Jun to allow all stakholdrs to maningfully participat in th procss. Th stratgic planning procss is only initiatd aftr rgional community planning sssions hav bn compltd. Dpartmnts ar providd with a comprhnsiv stratgic plan that is ndorsd by th snior managmnt political ladrship th City. Th stratgic plan will guid th dpartmntal planning procss that will follow on accptanc th City Plan. A comprhnsiv dpartmntal planning phas will b focussd on th dvlopmnt a corporat scorcard through th dvlopmnt dpartmntal srvic dlivry budgt plans that includs appropriat programms projcts. Th subsqunt budgt planning prioritisation phas will not only b basd on budgts submittd by dpartmnts, but also taks into account th Mid Yar Prformanc rviw th adjustmnt budgt TIDP 6- Fourth Rvision 94

20 Chaptr 6: Way Forward procss. Budgt sssions will b hld with dpartmnts within th contxt th stratgic planning prioritization procss. In ordr to furthr nhanc th procss to nsur that procss outcoms ar rachd, a numbr procss framworks ar adoptd at ky points in th procss includ: o o o o A Status Quo analysis framwork; A community participation planning framwork; A stratgic planning framwork; A prioritisation framwork. Th purpos th framworks is to provid clar guidlins on what is rquird during ach phas th procss. Thy also allow for input from dpartmnts rlvant stakholdrs bfor a nxt phas ar initiatd, nsuring that outcoms ar undrstood that all issus ar covrd. Th procss plan also includs rlvant prformanc rporting rquirmnts that will add valu at spcific points in th procss. This involvs spcifically th 4 th quartr rport th prvious budgt yar, /, th mid-trm rport th adjustmnt SDBIP. Th procss plan is summarisd in Diagram. Procss Plan approval Consultation Submission approval final IDP Budgt (May) 5 (April) 6 Compil draft IDP budgt (March) Dvlopmnt approval th SDBIP (Jun) 4 Stratgy Implmntation: Projcts budgt valuation (January) Monitoring rporting (July onwards) Stratgy Formulation ( Objctivs, indicators programms) confirmation City prioritis (Sptmbr) Stratgy Implmntation: Draft dpartmntal programm/projct plans (Octobr vmbr) 4 Diagram : Procss Plan that will guid th compilation th Third Fiv Yar TIDP TIDP 6- Fourth Rvision 95