Performance Management Key process solutions to realistic planning in balancing service delivery with principles of good governance Presented by: Mornè Jacobs Institute for Performance Management empowering tomorrow’s leaders

Outcomes Approach What does the outcomes approach teach us? Start with the end in mind and then work backwords from there So let us start with the analysis of our topic and read it from the back

Key process solutions to realistic planning in balancing service delivery with principles of good governance

Good Governance Describes how public institutions conduct public affairs and manage public resources.  Governance is "the process of decision-making and the process by which decisions are implemented (or not implemented)” “Good governance" often emerges as a model to compare ineffective economies or political bodies with viable economies and political bodies Source: https://en.wikipedia.org/wiki/Good_governance

Decision making Management is all about the decisions we make? What informs the decisions we make? How will we know that we are making the right decisions? We hear so much about the 3 E’s – does these influence our decisions?

Performance auditing

Economy Quality Quantity Appropriate place Appropriate time Lowest possible cost

Efficiency Doing things right Productivity – converting inputs to outputs

Effectiveness Doing the right thing Success in achieving/producing a desired result

We will come back to the 3 E’s when we discuss process solutions What are the principles that I must keep in mind?

Key process solutions to realistic planning in balancing service delivery with principles of good governance

Principles of Good Governance SOURCE: https://www.getsmarter.com/career-advice/industry-advice/8-principles-of-good-governance

King IV Governance Outcomes Ethical culture Good performance Effective control Legitimacy

Key process solutions to realistic planning in balancing service delivery with principles of good governance

Balancing service delivery Objects of local government as per constitution? S152 (1)(b) Provision of services to communities in a sustainable manner How much of the municipal budget is spent on service delivery? How sustainable are municipalities – Water & Electricity outstanding accounts

AG MFMA 2014-15 report 26% (71) - material uncertainty to operate in future 39% (106) net current liability position 34% (93) – realised a deficit for the year 4% (12) year-end bank balance in overdraft 94% (255) more than 10% debt irrecoverable 50% (137) debt collection period of more than 90 days Source: https://www.agsa.co.za/Documents/Auditreports/MFMA20142015.aspx

2014/15 FY - spending R73bn – spend on salaries Salaries Electricity services Bad debts Water services Contracted services R&M Other 26c 22c 7c 5c 5c Other - included fuel and oil, audit fees, hiring costs, depreciation, remuneration of councillors, etc. 5c 30c Source: http://www.statssa.gov.za/ How much do municipalities spend on salaries

Balanced service delivery?? 270 000 local government employees How many of those 270 000 are directly involved in service delivery? How balanced are our budgets regarding service delivery? R20.3bn spend on salaries Source: http://www.statssa.gov.za/ Quarterly financial statistics of municipalities Sept 2016 Statistical Release: P9110

Key process solutions to realistic planning in balancing service delivery with principles of good governance

The ideal world vs the real world Realistic planning The ideal world vs the real world What is realistic planning?

Realistic Planning mSCOA? Bring in mSCOA ito itemised billing and planning

Realistic Planning Impact Outcome Output Activities Input Improved Service delivery – eradicate service delivery backlogs Impact Outcome Output Activities Input

Realistic Planning Impact Outcome Output Activities Input Improved Service delivery – eradicate service delivery backlogs Impact Outcome Output Activities Input % of communities with access to decent water # of water connections provided Quarter 1 ----------- Quarter 2 ----------- Quarter 3 ----------- Quarter 4 -----------

Realistic Planning Impact Outcome Output Activities Input

Key process solutions to realistic planning in balancing service delivery with principles of good governance

Key process solutions Efficiency, Effectiveness & Economy Resources Activities Outputs Process defined Efficiency, Effectiveness & Economy Doing more with less!!

Process solutions How do we make our process more effective, more efficient & more economical? How do we improve our processes? 1st is to analyse & determine what we do Identify challenges, obstacles or bottlenecks in our processes Identify cause of the problem (Root cause/problem tree/fishbone/BPR analysis) Identify solution (Theory of change / pathway of change) Identify outcome to achieve (improved output) Develop action plan & allocate resources How many municipalities blames SCM and procurement processes for poor project implementation – due to late starts? What ar eth ereal bottlenecks in awarding of tenders and getting projects started?

Planning Solution Eradicate water service delivery backlog Do we have backlog? How big is backlog? Do we know in which area the backlogs are? What are the challenges & core problems in resolving the backlogs? Who is responsible for addressing the backlog? What options & alternatives are available to address backlogs? Solutions Analyse Evaluate Planning for change

Community needs Planning Costing Resources Implementation Template Planning for change Practical – question and example To work through step by step – asking them how do they use community need information – how do they incorporate it into their IDP planning cycle and schedule Template

Key process solutions to realistic planning in balancing service delivery with principles of good governance The key solution for providing sustainable service delivery lies in planning differently and making sound governance decisions. The Key solution for providing sustainable service delivery lies in planning differently and making sound governance decisions.

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