Presentation to Portfolio Committee July 2019

Content MPSA Portfolio Introduction Value Proposition Institutional Approach CPSI Structure Programmes and Strategic Objectives Budget Budget in relation to the Portfolio Budget International Partnerships 2019/20 Annual Performance Plan 2019/20 Additional priorities

1. MPSA Portfolio MPSA DPSA Ministry Policy Compliance Housing Scheme NSG Training Capacity Development CPSI Innovation GEMS Board GEMS Employee Benefit (OPSC) Oversight Ethics and Integrity Dep Minister Parliament

2. Introduction The CPSI was established in 2001 through a Cabinet decision to: mainstream innovation and to utilise the energies of public servants, private sector and other local and international role-players in promoting innovation in the Public Service, unearth existing innovation in the Public Service, fund innovation, provide opportunities for piloting innovation, encourage subsequent implementation of innovation and ensure greater interaction with all internal and external stakeholders on innovation in the Public Service. With long term objectives to: Effect cost-savings through the application of new technologies and practices; Improve service delivery through better quality; greater access and reduced time and cost implications for citizens/recipients; Build sustainable partnerships between the public, private and NGO sectors, and Partnership with regional SADC and international role-players In 2008 CPSI was listed in the Public Service Act as the first Government Component and its operations were Gazetted in Notice 700 of 2 Sept 2011.

2. Introduction In 2015 (on advice from the AG and NT) CPSI established its own corporate services but maintained an MOU with the DPSA for some services such as Internal Audit and Legal Services. As a cross-cutting facility of government the CPI is mandated to entrench the culture and practice of innovation in the public sector to enable a solution-focussed public sector by: advancing needs-driven research and development; unearthing, demonstrating, sharing, encouraging and rewarding innovation; testing, piloting, incubating and supporting the replication of innovative solutions, and partnering with public, private, academic and civil society sectors towards supporting the mandate of the CPSI.

3. Value Proposition Located in the MPSA portfolio, the mandate is underpinned by Outcome 12 and specifically the need to improve efficiencies and effectiveness through innovation. It addresses identified service delivery challenges in line with government’s priority outcomes as articulated in the National Development Plan by partnering with priority sectors such as Health on the development of prototypes, innovative processes, models and solutions. The further bridges the gap between science & technology innovations and public service delivery by working closely with the National System of Innovation - noting that not all Innovations are technology-based. There is global recognition of the importance of having a facility of government that can provide a protected environment for testing & piloting where risks can be managed, contained and mitigated ( “sandboxing”). The CPSI harnesses strategic global partnerships, including with the AU, SADC, UN and OECD to ensure that international insights in the field benefit local service delivery innovation.

4. Institutional Approach (Integrated) Understanding Challenges Developing new Solutions Forward-looking Research R&D Demonstrating Facilitating Replicating Scaling/ Mainstreaming SSI Unearthing and Rewarding Learning and Knowledge Sharing Building Innovation Capacity EE Culture & practice of innovation entrenched through effective and efficient innovative solutions to improve service delivery Pilot and Replication Projects (short and longer term) Multi-Media Innovation Centre, Workshops Journal, Conference, Awards (Local, regional, global engagements) 8

5. CPSI Structure The organisational structure has 32 posts on its fixed establishment with the Executive Director and 2 other posts vacant. 2 posts are filled with contract posts. The SMS team is made up of the Executive Director, 3 Chief Directors and two Directors The CFO is also the Head of Corporate Services Minister for the Public Service and Administration Executive Director (Accounting Officer) Programme 1: Administration Strategic Management DD, PA SCM DD, Clerk Finance CFO, DD, 2x Clerks HR / Facilities DD, Amin Officer, Clerk, 2 x Cleaning, 3 x Security CIO DD, Intern Programme 2: Public Sector Innovation Research and Development CD, 2 x DD, Admin Solution Support and Incubation CD, D, Admin, Intern Enabling Environment CD, 2xDD, Admin, Receptionist Internal Audit / Legal Services (DPSA - MoU) Deputy Minister for the Public Service and Administration

6. Programmes and Strategic Objectives Sub-Programmes Strategic Objective This programme provides strategic leadership, management and support services to the organisation. It consists of a cohort of skeleton staff, headed by the CFO with the responsibility of ensuring statutory compliance and strategic management. Some functions, such as Internal Audit and Legal Advisory Services, are rendered on a Shared Services basis by the DPSA. These services are governed by an MoU. Strategic Management Provides administrative support to the Executive Director and co-ordinates implementation, monitoring and reporting on the organisation’s overall performance. Effective Corporate Governance   Corporate Resource Management Manages and monitors the provision of corporate resource management services; information communication and technology management services; security management services; office support and auxiliary services. Office of the Chief Financial Officer Ensures compliance with all relevant financial management statutes and regulations, notably the Public Finance Management Act (PFMA) and oversees the effective Financial and Supply Chain Management of the organisation.

Programmes and Strategic Objectives Cont… Sub-Programmes Strategic Objective This programme drives service delivery innovation in line with government priorities and has three Components, namely Research and Development, Solution Support and Incubation; and Enabling Environment. Research and Development Investigates and recommend sustainable models and solutions for innovative service delivery. Improve the effectiveness and efficiency of public sector service delivery Solution Support and Incubation demonstrates, leads the piloting and facilitates replication and mainstreaming of Innovative solutions (ICT and non-ICT) for the public sector Enabling Environment Entrenches a culture of innovation in the public sector to address cultural and mind set challenges.

7. Budget Budget (Including compensation) The CPSI’s budget is located within the budget appropriation of the DPSA. The current budget structure is aligned with the organisational structure. Programmes   2019/20 2020/21 2021/22 Administration 20 986 22 353 23 694 Public Sector Innovation 17 451 18 616 19 752 Total for Programmes 38 437 40 969 43 446

8. Budget in relation to the Portfolio CPSI (4%) Innovation NSG (17%) Training DPSA (52%) Policy and Compliance PSC (28%) Oversight, Ethics and Integrity

9. International Partnerships CPSI serves an implementing agency on innovation related programmes on behalf of South Africa, as a member state of SADC, the AU and the UN. United Nations South Africa United Nations Public Administration Network (UNPAN) and as the SADC Online Regional Centre for the UNPAN Portal Partnership agreement with UNDP South Africa on Foresight, Funding and South-South Cooperation Membership on the UN Committee of Experts on Public Administration AU STC 8 and All Africa Public Sector Innovation Awards (AAPSIA) On invitation, regularly serve on UN and other expert groups to provide thought leadership on public sector innovation. Recent engagements include: OECD Observatory on Public Sector Innovation African Association for Public Administration and Management (AAPAM) Salzburg Global Seminar on Public Sector and City Innovation Commonwealth Association for Public Administration and Management (CAPAM) including conference and training inputs, co-publishing, awards adjudication, strategic planning resource. UNDP Innovation as adjudicator for innovation funding projects

10. 2019/20 ANNUAL PERFORMANCE PLAN

Programme 1 2 Performance Targets for 2019/20: 4 Quarterly financial reports submitted to MPSA and National Treasury and nonfinancial reports submitted to MPSA, DPME, and National Treasury as per required timeframes 100% Implementation of external audit recommendation

Programme 2 7 performance targets for 2019/20 to deliver on the three objectives Two (2) innovative solutions developed Pocket Guide to Innovation in the South African Public Sector revised Two (2) CPSI award winning and/or other innovation projects facilitated for Replications Six (6) knowledge platforms hosted to unearth, demonstrate, share, encourage and award innovation in the public sector Volume 10 of “Ideas that Work”: The South African Public Sector Innovation Journal published Participation in two (2) SADC or international innovation programmes

11. 2019/20 ADDITIONAL PRIORITIES

PLANS FOR 2019/20 Policy instrument for the funding and procurement of public sector innovation developed Development of a Cabinet Memorandum on a funding model for public sector innovation Development of proposed Regulations on public procurement of innovation for inclusion in the Public Procurement Regulations CPSI to engage Treasury on drafting regulations in the Procurement Bill to ensure the ease of procuring public sector innovations. This includes incorporating the Funding Model work into the NT Procurement Bill. Research reports developed Investigation and review of CPSI’s organizational form based on need to be leaner, more agile, less risk averse, and allow for partnerships and joint implementation with other NSI institutions, private sector (especially SMMEs and NPOs). Assessment of the MMIC to determine the value and impact over the past 10 years: This will inform the re-design and upgrading of the MMIC Impact assessments to determine if the CPSI Awards Programme is achieving what it is intended to do.

PLANS FOR 2019/20 Conti…. Development of anticipatory governance capacity in the public sector Introduction of Foresight as a planning approach for the public sector Joint foresight programme with NSG developed for approval Contribute to NIMPMO for the protection of copyrights for the public service Innovations Engage NIPMO on Copyrights for Innovations for public service Innovations Collaborations Close co-operation with the OGCIO and SDI unit in the DPSA to identify areas of collaboration to improve service delivery and respond to the quest for digitalization. The current discussion between DPSA and CPSI must be finalised to determine the way forward with the hosting of the CPSI Awards Ceremony. Any proposed changes must be addressed in the revised APP for October 2019. R&D is already working with NSG on developing and using innovation case studies for training for public servants.

PLANS FOR 2019/20 Conti…. Supporting Innovation Trailblazers Trailblazer Forum Exploring new approaches or methods of unearthing innovative solutions in the public service Development of the a concept document on possible approaches to unearthing innovative solutions in the public service An example of such is the publication of the Top 100 Public Sector innovators Revamping of CPSI Website The revamping of the CPSI’s website to respond to the observation by the World Bank that the CPSI had weak web and social media presence The digitalization of the CPSI Journal “Ideas that work”

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