Third Quarter Organisational Performance Report Prof. Richard M Levin Principal: National School of Government January 2018

Outline of Presentation Key Message Highlights of Performance Quarterly Non- Financial Performance Quarterly Financial Performance Human Resource Oversight Conclusion

Key Message The centrality of the Public Service as part of the State machinery to liberate the South African masses while also contributing to the development of the African continent requires high levels of capability To make the national vision a reality the State must forge a Public Service that is equally developmental in its outlook, capable of acting as a nerve centre to bring the State and Society together to co-create and implement that common vision for the nation – thus acting as a catalyst for the actualisation of the developmental aspirations of the State We need a Public Service that understands and can handle the contradictions of social inequality, racial oppression, class super-exploitation as well as the economic growth where job creation is still elusive, working within the bounds of a Constitutional democracy that guarantees liberal rights The principles and values of public administration enshrined in our Constitution form the basis for public service interaction with society in delivering services to the citizens of the country. These principles and values must also be inculcated into the value system of our public servants, in particular through capacity development initiatives The National School of Government (NSG) has a central role to play in developing public servant capabilities, thus making the developmental aspirations of our constitutional democracy a reality for all South Africans

Highlights of Performance The organisational performance of the NSG for the third quarter is being presented in line with the approved Annual Performance Plan (APP) for the 2017/18 financial year. This is in line with the current 5-year strategy of the NSG During this quarter, a total of 12 852 learners were trained against a target of quarterly target of 13 611 learners. This represents a 94% achievement against the training targets. Since April to December 2017, the NSG has cumulatively trained a total of 36 122 learners In line with the APP targets, Programme 1 achieved 6 out of the 7 targets (86%) and Programme 2 achieved 12 of the 15 targets (80%), representing an overall achievement of 82% The cumulative revenue generated from training activities since April to December 2017 amounted to R73.2m against a projection of R93m (79% achievement) The NSG continues to strengthen its role both continentally and internationally in capacity development initiatives. During this quarter, the NSG signed Memoranda of Understanding (MoU) with the Rwanda Institute of Management as well as with NEPAD, as a way to strengthen and elevate the NSG brand The Africa Charter curriculum was developed and work shopped in Uganda to Anglophone countries in November 2017. The Africa Charter curriculum was further work shopped to Francophone countries in December 2017. Inputs from the two workshops will be used to enrich the curriculum.

Highlights of Performance A Monitoring and Evaluation workshop was held for the SADC region members of AMDIN in Maputo, Mozambique from 24th to 27th October 2017 Pursuant to the EU Public Service Training and Capacity Building Programme agreement worth EUR 10,000,000, the programme is being rolled out and focuses on capacity and institutional strengthening of the NSG in order to be repositioned as the strategic hub for all public sector learning, training and development In terms of progress, the business process mapping is going on within the NSG to document business processes for IT installation; course development in five priority areas (induction; leadership; service delivery improvement, youth and women development) of government is being supported; and strategic partnerships in the Continent and Europe have been established to enhance the NSG and similar institutions through the African Management Development Institutes Network The Rutanang Ma Afrika campaign attracted 550 individuals and 130 organisations, and which closed on 31 August 2017. The NSG is currently undertaking technical evaluations of all those who have applied The NSG continues in the rollout of open online learning. Open online courses aim to provide relevant knowledge and skills to improve service delivery. Learning is delivered in the workplace and allows officials to take responsibility for their learning. Since April to December 2017, a total of 3 589 learners registered for open online courses offered by the NSG

Highlights of Performance The NSG convened the 19th Public Sector Trainers’ Forum (PSTF) Conference in October 2017, which is a gathering of HRD practitioners within the public sector who are integral to building capacity for the South African developmental state This Forum seeks to ensure that there is professionalisation and growth among the practitioners, and that a platform is created for discussions, the sharing of ideas, exchange of knowledge and the fostering of partnerships to improve HRD practices in the public sector Under the theme “Enabling Vision 2030 through HRD”, delegates engaged on key issues, such as: Public sector policy implementation of talent and career management systems Knowledge management systems and strategies supporting HRD practice for the fourth Industrial Revolution (4IR) HRD in the declining economy: value for money: Implications for practitioners and organisations Revitalising the role of the State to produce technical skills and specialist professionals Building public sector learning organisations

NON- FINANCIAL QUARTER PERFORMANCE

Third Quarter Training Delivery Per Stream Training Stream Annual Target Third Quarter Target Third Quarter Training Delivery Cumulative (April to December) Male Female Leadership 6 000 1 825 2 671 (146%) 6 880 (115%) 4128 2752 Management 9 000 2 110 2 871 (136%) 7 068 (79%) 4240 2828 Administration 4 050 1 000 2 232 (223%) 4 185 (103%) 2511 1674 Unemployed youth graduates 2 750 700 1 357 (194%) 3 859 (140%) 2300 1559 Induction 26 320 7 976 3 721 (47%) 14 130 (54%) 8478 5652 Total 48 120 13 611 12 852 (94%) 36 122 (75%) 21 657 14 465

Third Quarter Training Delivery Per Stream The NSG course matrix is made up of 128 accredited and non-accredited courses and programmes covering the four training streams (Leadership, Management, Administration, Induction) and is reflected as follows: Based on the current training performance: The annual performance target for Leadership training has been exceeded The annual performance target for Administration training has been exceeded The annual performance target for the training of unemployed youth graduates has been exceeded The annual performance target for Management training is on track for achievement The implementation of the Compulsory Induction Programme (CIP) remains a challenge in terms of meeting the annual target. The NSG is addressing the huge numbers to be trained on CIP HEI approved 14 ETQA accredited 82 QCTO accredited 1 Total number of accredited courses/programmes (ETQA & QCTO) 97 Number of non-accredited courses/programmes 31 Grand total number of courses/programmes 128

Summary of APP Quarterly Performance Targets In terms of the quarterly performance targets in the APP, a total of 18 against 22 targets were achieved in the third quarter. This translates to an overall achievement of 82%

Third Quarter Performance for Programme 1 (Administration) Performance Highlights Average current debt collection days is 37 days at end of December 2017 All payments to suppliers were made within the prescribed 30 days of receipt of a valid invoice Disaster Recovery test was conducted The NSG vacancy rate is at 8.8 % by the end of December 2017 Additional to the APP targets, the NSG developed a Business Continuity Management Governance Framework, and work has commenced on developing a business continuity plan (BCP). Furthermore, the NSG also developed a departmental evaluation plan in line with the National Evaluation Policy Framework Programme 1 has 7 targets of which 6 are achieved as planned

Third Quarter Target not Achieved: Programme 1 Performance targets not achieved Third quarter status Remedial action Projected revenue of R93m generated by end of December 2017 Revenue of R73.2 million was generated by end of December 2017 The NSG continues with the marketing initiatives of NSG courses and programmes to the public service and organs of state The NSG is pursuing the amendment of funding model with the Minister for Public Service and Administration as well as National Treasury

Third Quarter Performance Programme 2 Performance Highlights Four training needs analysis (TNA) interventions were implemented for the Department of Basic Education, and reports were produced for the Gauteng Department of Health The NSG convened a Leadership Platform on Sustainable Economic Development A total of 16 evaluations reports were completed and four reports on the status of the application of learning studies (ALS) were completed The NSG quality assured the Local Government Leadership Development Programme for approval by LGSETA In relation to eLearning, the NSG offered 22 existing courses for anytime, anywhere online learning Programme 2 has 15 targets planned for the quarter, 12 targets were achieved whilst 3 targets were not achieved

Quarter Targets not Achieved: Programme 2 Performance target not achieved Third quarter status Remedial action Publish two articles /papers to promote thought leadership During this quarter, one article was published One article was accepted for publication and is in the process of being published Quality assure two programmes by end of the quarter During this quarter, the Local Government Leadership Development Programme was quality assured for approval by LGSETA The target is demand driven. Only one course received for quality assurance in the period under review Train 13 611 new and current public servants through face to face and online learning (including Compulsory Induction and demand led trainings) During this quarter, 12 852 new and current public servants were trained through face to face and online learning The rollout of CIP training remains a challenge. The NSG is continuing with on-going marketing of NSG courses and programmes.

Outcome 12 projects Developing an Executive Coaching Programme, supporting development of the senior management echelon in the public service The Executive Coaching programme was developed and piloted, and the NSG contracted ten executive coaches who were assigned to 11 newly appointed DDGs. Coaches have reported that there is little to no response from the EIP learners. The NSG will engage learners individually to intervene Developing in-service training programmes, supporting the training facilitation capabilities of public servants The NSG completed the development of two in-service courses - Public Value and Change Management, and Strategic Management and Public Accountability – which are now ready for implementation by the contracted HEI (university) Providing public service orientation to unemployed youth graduates In this financial year, to date the NSG trained a total of 3 859 youth graduates

BRRR Progress Status Pilot formal graduate recruitment scheme to support departments: The NSG within its mandate is supporting the DPSA which leads the portfolio in this activity. Through the BB2E programme, the NSG trained 3 859 youth graduates in this financial year. Additionally, the NSG, through its recruitment process appoints interns every April to give unemployed graduates an opportunity to learn new skills and prepare them for future employment in the public service Use assessment mechanisms such as exams, group exercise and competency test to build confidence in the recruitment system The NSG provides training to departments through the modules of the Executive Development Programme (EDP) based on the results of the Competency assessment (SMS) Developing mentoring and peer review mechanisms for senior managers The Executive Coaching programme was developed and piloted, and the NSG contracted ten executive coaches who were assigned to 11 newly appointed DDGs. The NSG also trains public service managers on Mentoring, the objective for the course is to equip managers at all levels with mentoring skills and capacity to create space for professional development.

BRRR Progress Status Improve the quality of training through the National School of Government: The NSG uses a hybrid model for implementing training in the form of partnerships with higher institutions, contractual agreements with independent individual contractors and use of public servants currently in the system. In addition, the NSG has a total of 128 accredited and non-accredited programmes and courses that are continuously quality assured to keep the standard expected by the accrediting bodies Develop mechanisms to assist Departments struggling with HR as related to MPAT scores The NSG keeps a course directory that assists departments to choose courses from which to address all the MPAT areas Support programmes for departments to ensure supervisors and managers implement processes which enable front-line staff to provide efficient and courteous service to citizens The NSG has a suite of courses to deal specifically with frontline support. A new course Citizen-centred service delivery provides frontline staff with capability to provide efficient and courteous service to citizens

BRRR Progress Status Strengthen institution capacity to identify and address cases of corruption To support the public service to deal with corruption, the NSG provides training in the following courses: Anti-corruption for practitioners; Promoting anti-corruption in the public service; Advanced Management Development Programme training. The Minister assisted the NSG to receive R5 mil from Criminal Assets Recovery Account (CARA) Funding to roll out a suite of accredited anti-corruption courses that help departments to prevent, detect, and investigate corruption in the public sector Curriculum, programmes and service adequate for departmental needs and effectively responding to sectoral and institutional needs In responding to departmental and sectoral needs, the NSG conducts training needs analysis for public sector institutions to inform learning and development interventions. The TNA assist departments to focus on needs-based training through refined HRM&D plans. During the third quarter, four TNA’s were completed, and reports produced for the Gauteng Department of Health Identify new programmes/ courses to be made available through eLearning The following eLearning courses have been identified and are in the pilot phase: Compulsory Induction Programme for levels 6-12; Introduction to Financial Management Delegations of Authority in the Public Sector; Financial Management and Budgeting

BRRR Progress Status Compulsory induction programme- development of the curricula and roll-out of the programme within this financial year CIP training has been experiencing challenges this financial year, so far 14 130 public servants were trained Issues certificates within 3 calendar months from completion of examination The NSG is experiencing challenges relating to the finalisation of the Assessment Tools of some courses, which have caused delays in the assessment and verification processes. In addition, the capacity constraints by ETQAs (especially ETDPSETA and PSETA) have resulted in delays in the verification process.

Community Outreach The Minister has encouraged the NSG to reach out to communities Through the ministerial imbizo, we have been following up in supporting youth through the BB2E programme (280 trained in uMhlabuyalingana and eThekwini)

FINANCIAL PERFORMANCE

Vote Account Administration   Annual Budget 2017/18 April to December Pro-rata budget 2017/18 April to December Actual Expenditure 2017/18 April to December Variance budget compared to actual (over)/under April to December Expenditure as % of pro-rata budget R'000 % Administration 94,794 63,719 60,840 2,879 95% Public Sector Organisational and Staff Development 59,112 47,167 - 100% Total Vote Expenditure 153,906 110,886 108,007 97%   Annual Budget 2017/18 April to December Pro-rata budget 2017/18 April to December Actual Expenditure 2017/18 April to December Variance budget compared to actual (over)/under April to December Expenditure as % of pro-rata budget R'000 % Compensation of Employees 51,106 38,830 38,402 428 99% Goods and services 40,724 23,026 22,080 946 96% Payments for capital assets 2,964 1,863 358 1,505 19% Transfer to Trading Entity 59,112 47,167 - 100% Total Vote Expenditure 153,906 110,886 108,007 2,879 97%

Training Trading Account   Annual Budget 2017/18 April to December Pro-rata budget 2017/18 April to December Actual Expenditure 2017/18 April to December Variance budget compared to actual (over)/under April to December Expenditure as % of pro-rata budget R'000 % Reserves Training related revenue (course Fees) 123,002 91,594 73,198 18,396 80% Transfer from the Vote 59,112 47,167 - 100% Other Revenue (Interest) 2,556 1,866 2,894 (1,028) 155% Interest 21 (21) 0% Total Revenue 184,670 140,627 123,280 17,347 88% Compensation of Employees (85,446) (72,646) (70,662) (1,984) 97% Goods and services (99,224) (78,495) (71,635) (6,860) 91% Payments for capital assets (847) 847 Total Trade Expenditure (184,670) (151,141) (143,144) (7,997) 95% Surplus/(Deficit) (10,514) (19,864) 9,350

HUMAN RESOURCE OVERSIGHT

Vacancy Rate The NSG has a total of 227 posts on the approved establishment for Programmes 1 & 2 with 207 posts filled, and 20 vacant, representing a vacancy rate of 8.8% by end of December 2017.

Employment Equity & Disability representation

Conclusion Resolutions of the conference and lekgotla of the governing party : The National School of Government should play a central coordinating role in capacitating employees in all spheres to achieve the developmental goals The National School of Government must provide support for talent management across the spheres of government, and provide guidance for appointments, succession planning and career development The centrality of integrated macro policy planning and coordinated implementation may require the NSG to play a capacity development role, working closely with the Planning Commission and DPME Job creation and community works programme: the NSG will focus on training in public employment programmes (Community Works Programme and Community Development Workers)

Conclusion Our declining fiscal position is the consequence of lower rates of economic growth and will require stability and coherence of economic policies as well as attention to the growth and development of small and medium businesses. The NSG will focus on building relations and partnering with relevant institutions to focus on developing economic courses Building a capable developmental state – we need to build capacity in the public service on the theory and ideology of a Capable Developmental State Renewal and unity in our country – we must develop a programme on patriotism and re-orientation Establishing a national assessment centre within the NSG – we need a database of skills (HR Connect) linked to the Training Needs Analysis (TNA) process and supporting departments with competence testing

Conclusion Under the leadership of the State, the common vision for a prosperous country was made tangible in the form of the National Development Plan: Vision 2030. The NDP directs that we must build a capable developmental state (chapter 13), and which is of particular significance to the NSG The NSG has a critical role to play in making the public service and local government an employer of choice. We must learn from public sector experiences and develop programmes that build organisational cultures of high productivity, service excellence and organisational harmony The NSG also needs to take leadership in setting norms and quality standards for training in the public service and local government We remain confident of meeting our performance targets for the 2017/18 financial year as we continue to improve on our business processes and strengthen the NSG brand

Thank you