1. 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

2. 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

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

4. 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:

5. 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?

6. Performance auditing

7. Economy Quality Quantity Appropriate place Appropriate time
Lowest possible cost

8. Efficiency Doing things right
Productivity – converting inputs to outputs

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

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

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

12. Principles of Good Governance
SOURCE:

13. King IV Governance Outcomes
Ethical culture
Good performance
Effective control
Legitimacy

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

15. 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

16. AG MFMA 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:

17. 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: How much do municipalities spend on salaries

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

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

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

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

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

23. 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

24. Realistic Planning
Impact
Outcome
Output
Activities
Input

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

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

27. 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?

28. 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

29. 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

30. 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.

31. Thank you