1. 1 APPROACH FOR DEVELOPMENT OF STRATEGIC AND ANNUAL PERFORMANCE PLANS

2. PRESENTATION OVERVIEW Treasury guidelines Planning Framework DEA planning process Development of indicators Setting targets DEA strategic Overview 2

3. TREASURY GUIDELINES  Legal requirements and guidelines for Strategic Plan and Annual Performance Plan (APP): Chapter 5 and 30 of the Treasury Regulations and Part 3B of the Public Service Regulations set out the legal requirements for Strategic Plans and APP  Strategic Plan-: Cover a period of at least 5 years (only reflect 5 year targets) Changes limited to revisions related to significant policy shifts or changes in the service- delivery environment Linked to Medium Term Strategic Framework, Performance Agreements between the President and Ministers and Delivery Agreements –NB- Foundation for the development of APP 319 February 2013

4. STRATEGIC PLANNING PROCESS 4

5. 5 Outcomes The desired impact or benefit of the broad focus areas Outputs Desired results that will contribute to the impact/ outcome- means to an end Indicators How success in achieving outputs will be measured / tracked-indicative of achievement or non thereof Targets Desired performance level in relation to the indicators Activities Key actions required to achieve the desired performance level/targets Mandate or Broad Focus Areas COMPONENTS OF PLANNING FRAMEWORK 19 February 2013

6. FRAMEWORK: ILLUSTRATION 6 Outcomes A cleaner, healthy environment Outputs Improved air quality Indicators Number of metros and district municipalities with air quality that does not meet ambient air quality standards Targets 27 (informed by current status, desired status and resource considerations) Activities Implement cleaner fires campaign Develop Air Quality Management plans for priority areas Focus Area: An environment that is not harmful to the wellbeing of citizens

7. ALIGNMENT WITH REQUIREMENTS Cover a period of at least 5 years (only reflect 5 year targets) Changes limited to revisions related to significant policy shifts or changes in the service- delivery environment Alignment with Medium Term Strategic Framework (MTSF), Performance Agreements between the President and Ministers (Delivery Agreements) and other relevant long term Government plans (Millennium Development Goals, National Development Plan etc.) –NB- Foundation for the development of Annual Performance Plan 7 STRATEGIC OBJECTIVE OBJECTIVE STATEMENT BASELINEPERFORMANCE INDICATOR TARGET 2016/17 STRATEGIC GOAL: Environmental assets conserved,valued, sustainably used, protected and continually enhanced

8. KEY COMPONENTS OF A STRATEGIC PLAN AND APP Strategic Goals Strategic outcomes oriented goals identify areas on performance that are critical to achieve our vision /mission. The goals must focus on impact and outcomes.They must challenge the Department/Entity, yet be realistic and achievable. Strategic Objectives Strategic objectives are very clear statements of what the Department will do to achieve the defined strategic goals. Each strategic objective must directly or indirectly contribute towards achieving one/or more of the Goals. it should be worded as an “outcome/output statement” Performance Indicators A performance indicator is what will be used as measure of performance. An indicator is linked to a strategic objective. 8

9. DEFINING STRATEGIC OBJECTIVES In developing objectives we respond to these questions: –What does our Mandate cover? To deliver on our mandate what ultimate objectives must we accomplish- the outputs that will lead to attainment of goals? –Who are our stakeholder? What objectives must we accomplish in order to meet the needs of our stakeholders –What should we focus on to ensure that we have capacity to deliver on our mandate –How can we ensure better utilisation of our limited resources 9

10. INDICATOR DEVELOPMENT PROCESS Define Departmental Goals (Impact) Define Objectives (outcomes/ Outputs) Select the most suitable Indicator Inventory & Brainstorm Performance Indicator Assess Indicator against criteria Ensure agreement to objective statements at Leadership level A statement of how your branch will contribute towards achievement of the Departmental Objective Collect existing indicators to avoid “re- inventing the wheel” –Treasury Reports –Annual Reports –Quarterly Reports Brainstorm new indicators if necessary What is critical for attainment of the objective Rate / rank KPI against criteria: –Clarity / Simplicity –Availability –Communicati on value –Cost/benefit value Create a “short- list” of the best indicators for each Objective Select the best measure that will drive desired behaviour Identify data sources for measures 10

11. PURPOSE OF PERFORMANCE INDICATORS Organisational motivation and monitoring of performance : –Indicators function as tools to drive desired behavior. –Give individuals direction in terms of what they need to accomplish. There can be multiple contributors to one indicator and therefore roles and responsibilities need to be clarified –People respond to what’s inspected, not what’s expected. –To test the organisational progress in achieving strategic objectives. If more than one indicator is applicable, use the one that best communicates the meaning of the Objective –Indicators are a basis for target setting

12. CRITERIA FOR SELECTING INDICATORS –Strategic Communication What are we committing to and is it something within our mandate –Repeatable and Reliable indicators are used to assess trends –Frequency of Update How often can we update the indicator Do we need interim indicators –Unit of KPI Can take many forms e.g. percentage, absolute number, ranking, rating etc Page 12 12

13. Purpose Assess/evaluate the performance results at the end of a time period or activity Examples “Reduction in metros and district municipalities with air quality that does not meet ambient air quality standards” Strengths Usually objective and easily captured Issues Lag measures reflect success of past, not current, activities and decisions Lag (Outcome) KPILead (Driver) KPI Purpose Measure intermediate processes, activities, and behaviors Examples “Increase in Number of air quality monitoring stations” Strengths More predictive in nature Allows organizations to adjust behaviors for performance Issues Based on hypotheses of strategic “cause and effect” TYPES OF INDICATORS Objectives/KPA Improve Air and atmospheric Quality At least one outcome (lag) Indicator for each Objective 13

14. TARGET SETTING Baseline Before we commit to a achieve a certain target (i.e. annual target),we must have a clear understanding of the current state. A baseline is the current performance status in relation to a particular indicator. This could be a level of performance which was recorded in the year/quarter prior to the planning period. In some instances research still need to be conducted to establish baseline Target (Medium term /Annual / Quarterly) Linked to each strategic objective & performance indicator, there must be a target. There will be target for the medium term, which is broken down into annual targets. An annual target is broken down into quarterly targets (except if it is not appropriate ). Quarterly target are used during the year to monitor performance and progress towards the annual target. Evidence / Means of Verification Performance Information must be supported by evidence/proof. During the Annual Performance planning process,means of verification should be identified for each annual target/ quarterly targets 14

15. CRITERIA FOR SETTING TARGETS The following must be considered in setting targets: It must respond directly to the indicator What is the desired outcome versus current baseline taking into account the following –Government priorities (outcome deliverables, Millennium Development Goals, National Development plan etc.) –Sector targets –Compliance matters and International obligations(standards/timeframe set in policies/regulations) Resource availability (funds and personnel) –What would be the ideal delivery mechanism (rationale for review of functions, addition of posts or outsourcing) Lessons learned in previous years (challenges in environment, past experiences, outcomes of stakeholder consultations, other dynamics in service environment) 15

16. Annual Performance Plan Template 16 Strategic Objective Performance indicator BaselineAnnual Target Quarter target (Q1-Q4) Enabling Conditions/ Resources Considerations Evidence Performance Indicator Audited/Actual Performance Estimated Performance 2013/14 Medium-term targets 2010/112011/122012/132014/152015/162026/17

17. 17 THANK YOU