Project Khaedu Preliminary - Feedback to Public Works UGU District Focusing our Business to Improve Delivery June 2 nd 2006

2 Agenda  Key Message  Situation as we see it and Complicating factors  Suggestions  Next steps Caveat: Our team has only been here for 4 days and we are here primarily to observe and learn…our suggestions could therefore easily miss the mark! We appreciate your input.

3 Key Message The Provincial Public Works mandate is too broad for the available technical and management resources and should be narrowed. If narrowed, the roles and responsibilities of Head, Regional and District offices must be re-aligned to effect better service delivery. Dedicated, multifunctional client teams for Health and Education would reduce current efficiency losses through better planning and greater leverage of scarce technical skills

4 Situation as we see it Very Short Staffed in critical areas Significant amount of work is minor day-to-day general maintenance Work is concentrated into two critical areas: Health/education Procurement process is slow and cumbersome …perhaps resulting in many ‘stopped Projects’ Too much critical time (where biggest skill shortages exist) is consumed in administration and driving Staff are generally happy with training, communications and management but unhappy with the PMDS and career progression

5 Current Organogram structure seems adequate…

6 …but a large number of critical posts are vacant X = vacant X X X X X X X X X X X X X X X X X X X X X X X

7 Nearly 50% of jobs count for less than 1% of the district budget Average value R479,000 Average value R5,400

8 And the value of the District’s work is heavily concentrated in Health and Education Source: Exco Report and Client Departments Value Rands Education Health Other R408 Million

9 The procurement process is slow and cumbersome with many opportunities for delay… PUBLIC WORKS CLIENT Prelim Estimate Receipt Inst Ex-client Investigate And Report Brief Consultants Nominate consultant Proceed Sketch plan Committee Norm Estimate Sketch Plans Document Engineers Drawings Final Works Drawings Architects Draft Bills Planning complete Funds approval Award Contract Tenders Close Advertise Tenders Site hand over Ist Delivery certificate Final Payment Final Certificate Finalise Delay report 774 Elapsed Days

10 …perhaps resulting in many stopped projects

11 … Critical (short staffed areas) are spent in driving and training 40 Hour Week Admin & Driving

12 Staff are reasonably happy with training and perceive that they deliver a quality service but are unhappy with PMDS and Career progression PW Staff survey

13 Complicating Factors Poor delegations delay decision making Economics of general maintenance are poor Delivery of basic maintenance is the Department’s “Achilles Heal” - the results are client unhappiness and defection - role of PW as a landlord seems fundamentally flawed Current structure still leaves H.O. and Regions geographically remote from many clients

14 Economics of general maintenance are poor. E.g. fixing a welfare office roof in Jolivet estimated value R5400

15 Basic maintenance is PW Achilles' Heal  Transport has already defected from PW and affects its own construction and maintenance work  Education had to do its own repair work due to storm water damage to the amount of R and would prefer to establish its own infrastructure for effecting construction/maintenance work without PW intervention Stated causes for defection:  Lack of transformation  Work being outsourced unnecessarily  Ineffective internal systems (E.g.appointment of contractors)

16 Current structure still leaves H.O. and Regions geographically remote from the action, yet they retain key functions and delegations Head Office SouthernMidlands North Coast Ethekweni UGUKokstadPMB 6500 sq Kms 750 structures 335Kms 17,000 sq Kms +-2,200 structures

17 Staff should be teamed by key clients (Health & Education) and projects including dedicated administrators to leverage internal knowledge and critical skills. Provincial Public Works Department should refocus on key clients and major projects leaving all general maintenance to clients or outsource (encourage planned defection) Suggestions – Short term

18 Staff can be allocated into client specific teams including dedicated administration Control Inspector /Team Leader Inspectors X 6 Artisan Superintendent Artisans X 2 Artisan Aids X2 Administrative Support X3 Control Inspector /Team Leader Inspectors X 6 Artisan Superintendent Artisans X 2 Artisan Aids X2 Administrative Support X3 HR Support Finance Controller Quality Control Prof. Services District Manager HEALTH Office Manager EDUCATION

19 Suggestions- Delegations Medium to long term  The role of Regional and Districts should be merged into 11 Super Districts (mapped to key clients) with appropriate delegation  Role of HO should be redefined and narrowed  Budget planning and project commitments should be a joint roll up 3 year process between clients and dedicated teams  Decentralize authority with focus on general, financial, HR and contract management  Review financial delegations. Set approval limit at ‘Super’ district level (circa R10 million)  Review post structure to support the implementation of delegations (Super District GM at Director level to manage an annual budget of R400 million)  Establish a fully functional HR component at new ‘Super’ district level with ability to resolve all HR queries.  Dramatically shorten, recruiting, tendering and contract policies and processes

20 Suggestions (contd)– Collapsing Regional and District offices into 11 Super districts (aligned to key client structures). Roles Serving as a ‘One-Stop’ service for all key client requirements Responsibilities Provide professional service to key client departments at Super district level Create dedicated teams for each key client with all relevant skills sets (technical, artisan, contract and payment administration) House corporate service functions (HR, Finance, legal and professional support)

21 Whilst HO focuses on policy formulation and overall strategy Coordinate policy from DPW Cascade operational plans to Super-districts Strategic liaison with key clients (CRM). Overall Monitoring and Evaluation Senior appointments of Director and above Very large scale project tender adjudication (R10 million plus)

22 Many thanks for hosting us!!