1. Business Process Re-engineering Committee – Feedback Presentation Minister of Environment and Water Affairs Mrs BEE Molewa 16 th April 2013 Parliament Cape Town

2. Overview of the Water Affairs Business Process Review Committee Interventions July 2011 to June 2012 (some interventions continued through Dec’12)

3. BPR Approach and Intervention Process: Jul’11 to Jun’12 with some interventions running through to Dec’12 Terms of Reference BPRC Briefings BPRC Briefing Analysis BPRC Project Identification BPRC Project Delivery BPRC Final 47 Deliverables Deliverables = Reports, Implementable Outputs and Position Papers BPRC Consolidated Report November 2012 BPRC Inception Report WS 1 WS 2 WS 3 WS 4 WS 5 WS 6 WS 7 WS 8 WS 9 WS 10 Workstream Formation & Organisation 

4. DWA Top 12 Implemented Outputs - Nov’11 to June’12 35% Reports Key Implemented Outputs: 1.Water Policy Framework & Legislation (GLA Bill) and Tribunal 2.NWRS 2 Published for Comment 3.Strategic Planning and APP Refinement 4.Structure Reorganization Functional Design 5.Culture Assessment and Implementation Plan 6.SMS Selection & Placement 7.Audit Findings Reductions & Remedial Action plans 8. Asset Migration, Management & IT System (AMIS) 9. ICT - Exit Plan, Sourcing Oversight, within timeframe 10. Process Redesign – licencing and recruitment 11. Communication Policy, Strategy & Media Plan 12. Water Entity Debt Restructuring - KOBWA BPRC Reports & Implementable Outputs 3

5. Key Challenges Addressed by the BPRC Out of a very wide range of issues facing the Department in mid 2011, the BPRC was established to focus on the following challenges: 1.Developing and improving water democracy 2.Improving the governance of the water sector 3.Optimising the water infrastructure and facilities 4.Human resources management - functions and operations 5.Financial management and controls and the AG’s annual audit 6.Business Process Re-Engineering – BPR management & licencing 7.Information Technology – management and outsource contract 8.Communicating effectively around water The BPRC Consolidated report tabled to the Ministry in November details each of these challenges 4

6. The BPRC worked from the inside out The BPRC Interventions indicated a rational logic from: water policy, through to people, processes and technology The BPRC through selected interventions has initiated a turnaround trajectory for Water Affairs over 5 years People, Processes and Technology Organisation Structure (Water Affairs & Sector Institutions Strategic Plan & APP (Water Affairs & Sector Institutions) Water Legislation Water Policy 5

7. Appropriate structure Effective systems and processes Appropriate Resources Supportive & enabling environment Clear mandate It is around these key linked principles that the BPRC intervened which resulted in a variety of deliverables comprising of 1.implemented improvements; and 2.recommended specific actions and improvements The key principles for DWA’s organisational effectiveness 6

8. Appropriate structure Effective systems and processes Appropriate Resources Supportive & enabling environment Key Principles for organisational effectiveness Internal Structure, structure and functions of DWA entities Infrastructure management, IT, HR and water use licencing systems Human Resources and Financial Resources Culture, change management, stakeholder relations and communications Themes / Areas of BPRC Focus Clear mandate Policy, Mandate, Legislation and Strategy Areas of the BPRC’s focus in addressing the principles 7

9. Developing and improving water democracy: 1. Finalisation of the National Water Resources Strategy-2 Specific actions to be taken by DWA in getting the NWRS through the approval stages was undertaken by BPRC. The NWRS was comprehensively reviewed with the summary extensively drafted and edited. The NWRS was refocused to ensure developmental approach and provided specific direction to the water institutions The consultation and public participation mechanism, especially with poor communities was driven Principles of participatory demorocatacy embodied in the NWRS NWRS is in the process of being finally refined for approval and publication, to address the public participation feedback 8

10. Developing and improving water democracy: 2. DWA’s mandate needs to change Specific actions to be taken by DWA in resolving areas of mandate confusion or lack of clarity were recommended. The coordination and integration of the sanitation mandate is being addressed. Aimed at stopping ongoing duplicatipon of functions between government departments, and gaps in addressing certain key functions. Rainfall monitoring needs to be addressed. This is critical for the ability of DWA to manage water resources effectively, particularly in the light of climate change. The BPRC Consolidated report tabled to the Ministry in November details each of these challenges arbara / Chair 9

11. Developing and improving water democracy: 3. Policy framework & principles for water democracy design DWA’s Strategic Plan and APP was internally focused and did not address the country’s poor and marginalised Principles to address allocations of water for productive purposes were suggested. Poor and marginalised community engagement was stipulated to inform DWA strategic direction for planning The policy principles identified values for DWA future work and enhanced focus on inequality, poverty eradication and equity in line with national developmental objectives A processes is being commenced to incorporate the water democracy principles into a revised water policy 10

12. Developing and improving water democracy: 4. DWA’s strategic plan & APP were refocused DWA’s Strategic Plan and APP was output focused and did not adequately address service delivery outcomes to enable a positive impact on the country’s poor and marginalised 1.The refocused Strategic Plan with a revised set of goals and 14 SMART outcome focuses objectives against which DWA performance will be able to be tracked 2.The Strategic Plan has been refined to enable a monitoring and evaluation dashboard to be established 3.The APP was aligned to the Strategic Plan and performance can be better managed through SMART performance information The 2012-2013 cycle of improvement in strategic planning & APP is being enabled by developing a performance dashboard 11

13. Developing and improving water democracy: 5. General Laws Amendment Bill was proposed & facilitated Critical and urgent amendments were required to the NWA: Strategic inputs based on the BPRC’s work on the policy framework and principles were introduced Addressing the requirements of a streamlined dispute mechanism Proposed amendments towards more effective water resources amendments were effected Based on the BPRC work & recommendations, current legislation is in the process of being amended 12

14. Developing and improving water democracy: 6. BPRC proposed and assisted in establishing an interim dispute resolution measure A Water Tribunal resulted in an untenable situation: An interim solution utilising the mediation process referred to in the NWA was proposed and adopted This alternative mechanism was essential to reduce the possibility of supreme court litigation arising from unresolved disputes Current proposed draft amendment will re-establish the Water Tribunal in its amended form aligned to similar statutory tribunals. These amendments will lead to legal certainty 13

15. Key Principles for organisational effectiveness Themes / Areas of BPRC Focus Areas of the BPRC’s focus in addressing the principles Appropriate structure Effective systems and processes Appropriate Resources Supportive & enabling environment Internal Structure, structure and functions of DWA entities Infrastructure management, IT, HR and water use licencing systems Human Resources and Financial Resources Culture, change management, stakeholder relations and communications Clear mandate Policy, Mandate, Legislation and Strategy 14

16. Improving the governance of water: 7. BPRC addressed uncertainty around institutional arrangements...1 The institutional arrangements around water resources management are inefficient were not transforming to eventually enable water democracy an improve delivery The BPRC facilitated the decision to speedy roll out & manage the remaining 7 CMA’s in an agreed plan over 3 years The efficient delivery of water resources management functions was emphasised to enable the recovery of water charges and address the 10% to 40% shortfall Water Boards be reduced from 13 to 9. The current certainty regarding the water sector institutional arrangements is beginning to address staff losses and the previous lack of delivery 15

17. Improving the governance of water: 8. BPRC addressed uncertainty around institutional arrangements...2 Challenges around the institutional arrangements around managing the water resources infrastructure were focused on The WTE is being integrated into the NWRI, driven by the APP and de facto operates as such The most appropriate organisational form was interimly for a government component (GC) to be formed reporting to the DG The need for the GC to be capacitated with financial resources was critical The role of the TCTA was also considered in the long term The WTE / NWRI is operating de facto as an integrated entity, its performance being driven by the APP 16

18. Improving the governance of water: 9. BPRC developed a functional structure within DWA The functional reorganisation, facilitated by BPRC will better enable the execution of the DWA Strategic Plan to deliver improved services after several restructuring attempts The core functions and capabilities of the Department were aligned to deliver the mandate using a Macro Operating model The reorganised structure accommodates a coordinating and integrating PMU in the Office of the DG to focus on developing & maintaining the water infrastructure The sector institutional arrangement changes have impacted the manner in which the structure was reorganised The functional model is to be pursued to map business processes to determine the requisite posts to effectively operate DWA 17

19. DWA-BPRC Top Priority Deliverables – Org Development BPRC’s Organisational Development Intervention The BPRC has assisted in developing a high level functional organisational design, to achieve alignment between mandates and business processes, to inform the restructuring of DWA in order to perform more effectively on its mandate. Inter Water Institutional Changes DWA Responsibility Changes Intra DWA Branch Operating Model Changes DWA Branch Structure Changes Organisation Transition Activities 18

20. Key Principles for organisational effectiveness Themes / Areas of BPRC Focus Clear mandate Policy, Mandate, Legislation and Strategy Areas of the BPRC’s focus in addressing the principles Appropriate structure Effective systems and processes Appropriate Resources Supportive & enabling environment Internal Structure, structure and functions of DWA entities Infrastructure management, IT, HR and water use licencing systems Human Resources and Financial Resources Culture, change management, stakeholder relations and communications 19

21. Optimising the water infrastructure and facilities: 10. BPRC’s facilitated the asset management system utilisation BPRC worked to rejuvenate DWA’s water asset management system (Project Sakhile) previously established which was found to be dysfunctional and outdated DWA’s R150 billion assets were updated on systems and a maintenance plan requiring expenditure of R63 billion per year Two systems managing the water assets – financial and technically geo-coded assets were migrated & integrated The management of assets to the GIAMA standard was reintroduced ensuring alignment with international standards The refined asset management systems and the supporting technology fundamentally addressed the disclaimer received from the AG on asset management in the WTE 20

22. Optimising the water infrastructure and facilities: 11. BPRC’s assessed the status of DWA’s facilities BPRC analysed the operational suitability and financial status of DWA’s facility portfolio in terms of adequacy Some of DWA’s building leases were found lacking with leases presented for its 57 buildings, of which some had expired Discrepancies on property leases with DPW were highlighted and the need for DWA’s land leases needing to be resolved BPRC’s initial analysis on the adequacy of the national office revealed that a central campus faculty costing R3.7bn could currently be justified, against R6.5m in annual rental Corrective actions on addressing the gaps in facilities management were highlighted to the responsible DWA officials –– 21

23. ICT - outsourced contract & improvements: 12. Outsource Contract Termination and Remedial Action BPRC initially diligently investigated the T-System outsource contract including historical issues & the statue of the immanent re-contracting process BPRC facilitated an exit agreement & phased exit for T-Systems The structure of the new outsource contract was recommended A comprehensive outsouced partner exit-entry project plan and schedule was developed to ensure a smooth transition to the next appointed outsource provider The controversy of the DWA ICT outsourced contract was addressed through oversight of the transition process 22

24. ICT - outsourced contract & improvements: Other ICT interventions undertaken by the BPRC BPRC worked closely with the CIO and ICT Directorate and facilitated improvements in the following areas 13.ICT capacity and competence ramp-up – job evaluations were undertaken and posted created within and enhanced ICT stature to accommodate the improved management of the ICT outsourced contract 14.ICT Governance – the BPRC developed a ICT governance protocol to enable improved ICT procurement decisions The BPRC interventions within the ICT Directorate were undertaken and effected to ensure improvement in the management of DWA’s technology, especially at the commencement of the newly appointed outsources contractors term 23

25. Business Process Review - BPR management & Licencing: Business Process Re-engineering enablement BPRC trained the Business Process Management function within DWA with best practice BPR competencies to enable the effective management and improvement of processes across DWA 15.BPR Competence was built within DWA – a team of 4 were trailing on mapping reengineering processes for performance improvement 16.Water licencing Process was re-engineered – one of the most critical processes in DWA is to streamline issuing of water licences due the far reaching implications for water delivery The BPRC re-engineering interventions need to be rolled out across DWA’s to ensure sustainable performance improvements in all strategic processes 24

26. Key Principles for organisational effectiveness Themes / Areas of BPRC Focus Clear mandate Policy, Mandate, Legislation and Strategy Areas of the BPRC’s focus in addressing the principles Appropriate structure Effective systems and processes Appropriate Resources Supportive & enabling environment Internal Structure, structure and functions of DWA entities Infrastructure management, IT, HR and water use licencing systems Human Resources and Financial Resources Culture, change management, stakeholder relations and communications 25

27. HR Management - functions & operations: BPRC’s other interventions to improve HR management 17.SMS Selection and placement – BPRC facilitated the selection of 24 of the 48 vacancies, with 75% of the total being facilitated 18.Re-engineering of the HR recruitment process - improved vacancy filling turnaround time & enabled performance metrics 19.HR Decentralised “partnership” operating model was developed for implementation 20.DG & DDG performance frameworks to contract performance Functionally operating HR management is a critical success factor to enabling significantly improves performance at DWA Shar/Thlop 26

28. Financial management – system and functional improvements: 21. AG Audit remedial action BPRC intervened deeply in remedying the findings recorded on the Main Account and the disclaimer in the WTE Rigorous QA was instigated by BPRC and technical accounting skills transferred while developing capacity Main account qualifications reduced from 10 to 7 An overall 30% improvement was attained in the 2011-12 audit compared to the 2010-11 financial year audit As was expected, new qualifications did appear which needed to be subsequently addressed for the 2012-13 audit Corrective actions on addressing the gaps in facilities management were highlighted to the responsible DWA officials Rachl / Abel 27

29. Finance Management - functions & operations: BPRC’s other interventions to improve financial management 23.Finance functions skills assessment - to address skills and competency shortages 24.WTE Finance capacity building – permanent capacity to be built with the NWRI / WTE entity 25.DBAC management conflict Functionally operating financial management is a critical success factor to enabling significantly improves performance especially in the provision and financing of infrastructure Abel Rachel 28

30. Key Principles for organisational effectiveness Themes / Areas of BPRC Focus Clear mandate Policy, Mandate, Legislation and Strategy Areas of the BPRC’s focus in addressing the principles Appropriate structure Effective systems and processes Appropriate Resources Supportive & enabling environment Internal Structure, structure and functions of DWA entities Infrastructure management, IT, HR and water use licencing systems Human Resources and Financial Resources Culture, change management, stakeholder relations and communications 29

31. HR Management - functions & operations: BPRC’s other interventions to improve HR management 24.Culture - culture assessment and an implementation plan to implement an intervention 25.Change management guideline to manage communication and change effectively A functional support and operating environment within DWA is also a critical success factor to enable performance improvement within DWA 30

32. Communicating effectively around water: 26. National Water Communication Policy, Strategy & Media Plan BPRC encountered numerous ineffective channels of communication within DWA and the water sector Analysis were undertaken on media perceptions to determine coverage patterns on the communication of water issues BPRC made recommendations to enhance the current communications policy Improvements to the DWA communication strategy were identified by BPRC who facilitated refinements BPRC facilitated improvements to improved media planning The application of the communication policy and strategy would obviate ad hoc and reactionary communication and focus on proactive communication 31

33. 27.Media procurement process re-engineering – this was investigated and a process was put in place to avoiding delays in procuring critical and timely external communication 28.Water Affairs reputation – BPRC ascertained the perception of the DWA and its executives across various stakeholder groups to enable positive media rather than responding to costly responses to negative media reports 29.Mobile Communication project revival - Communication to poor & marginalised communities via mobile technology was revived Effective communication initiatives are essential to communicate progress made on DWA’s improving performance Communicating effectively around water: Other BPRC Interventions to improve communication 32

34. Water Affairs Turnaround initiated by BPRC through the presented interventions which amount to 5 TURNAROUND IMPERATIVES 33

35. 1.A robust Water Affairs and Water Sector Strategy must be executed to realise organisation and sector performance 2.An aligned organisational structure and set of sector institutional arrangements must be functional and adequate in numbers to deliver strategic performance 3.The levels of people skills and competencies must be present to enable sufficient HR performance to realise the strategy 4.Financial resources must be adequate and effectively managed to fund the realisation of the strategy 5.Technology must be functional to support and monitor and evaluate performance across all water Affairs strategic processes The BPRC initiated turnaround will be strategically managed over 5 years to achieve the targets levels of performance & service delivery To realise the Water Affairs Turnaround over the next 5 years - the 5 imperatives must all be in place and functioning effectively 34

36. RISK People Skills Security and Privacy Processes Design Culture & Change Organisational Structures Project Information Business Processes BPR Interventions – Turning the Ship Around