management karel van der molen - spl short courses
TRANSCRIPT
MMC US 116341 (12 credits) Conduct performance management in SA municipality
Module 7 Financial Reports amp Performance Management
Group 1 Strategic Management Budgeting Implementation amp Performance Management
Karel van der Molen 1
The full programme Group Modules
1 Strategic Management Budgeting Implementation amp Performance Management
3 Strategic Planning amp Multi Year Income amp Expenditure
Management
6 Budgeting Principles amp Cycles
7 Financial Reports amp Performance Management
2 Municipal Accounting amp Risk
Management
8 Cash Investment Asset Liability Management
4 Risk Management Internal Control Framework Design
and Audit Planning and Implementation
3 Governance amp Legislation 1 Stakeholder Consultation amp Ethics in Municipal Finance
2 Intergovernmental Fiscal Relations Legislation amp Policies
affecting Municipal Financial Management
4 amp 5 Costing amp Capital
Planning Municipal IT
Support amp Project
Management
9 Capital Planning amp Financing amp Costing Principles
5 Managing Information Technology Resources in
Municipal Finance
6 Supply Chain Management amp
Public Private Partnerships
10 Municipal Supply Chain Management
11 Public Private Partnerships 2
The content 26 US -
IDrsquos 1
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NQF Le 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5
Credits 10 11 12 15 10 10 15 10 15 8 12 12 8 15 8 8 11 12 8 12 12 15 15 12 15 12
CMFM 48965
C C E C F C C C C F E C E C E E C C C Not applicable for
CMFM
Key Certificate SAQA ID - 48965 - 166 credits F = Fundamental C = Core E = Elective (1)
AccOff X X X X X X X X X X X X X X X X X X
CFO X X X X X X X X X X X X X X X X X X X X
SnrM X X X X X X X X X X X X X X X
MidFin X X X X X X X X X X X X X X X
SCMH X X X X X X X X X X X X X X X X
SCMM X X X X X X X X X X
3
GROUP 1
Strategic management budgeting implementation and
performance management
Module 6
Budgeting principles and cycles
Unit standard
SAQA 116341
Conduct performance management in SA
municipality
4
Time allocation
bull First day 2 hours
Units 1
bull Second day
Units 2 3 4 and 5
Group Activities Practical performance management activities
bull Third day
08h30 ndash 11h30 Assessment
5
THE ASSIGNMENT
bull Question1 Explain how IT systems can be used to incorporate organisational and individual performance management results to improve service delivery within your municipality Use practical examples where applicable (Refer to Chapter 4)
bull Question 2 Compile a report on the organisational culture within your municipality Explain how this organisational culture impacts on the performance of both individuals and the municipality as an organisation (Refer to Chapter 4)
bull Question3 Develop Key performance indicators that relate to your job description for the following KPA Good governance and Public Participation (Refer to Chapter 5)
bull Question 4 Explain how you think your municipality should go about setting targets to achieve the following KPI- The number of people from employment equity target groups employed in the three highest levels of management in compliance with the municipalityrsquos employment equity plan (Refer to Chapter 5)
6
US 116341 Unit 1
Unit 1 Introduction
bull Municipalities deliver services critical to well-being and development of its citizens
Strat plans
allocate resources
monitor implementation
report on results
bull IDP amp SDBIP monitor performance continuously
bull KPIs as instruments to assess performance
8
Unit 1 Defining PMS
bull Craythorne (2006120) PMS = technique
bull Venter et Al (2007111) pm = multidimensional construct outcomes of work
bull Van der Walt (200434)
i Efficiency relationship between inputs and outputs
ii Reduction of inputs or the cost of inputs
iii Following due process and equity
iv Relationship among input outputs and outcomes
9
Unit1 Defining PM (cont)
PM a tool to
bull plan
bull budget
bull measures
bull implement and
bull report on activities
bull foster good corporate citizenship
bull tool of governance model-council set priorities conduct business and relate to communities
bull Tool to set organisational targets strategic objectives and outcomes
bull align programmes projects and processes to individual Section 56 57 managers
10
1718
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
The full programme Group Modules
1 Strategic Management Budgeting Implementation amp Performance Management
3 Strategic Planning amp Multi Year Income amp Expenditure
Management
6 Budgeting Principles amp Cycles
7 Financial Reports amp Performance Management
2 Municipal Accounting amp Risk
Management
8 Cash Investment Asset Liability Management
4 Risk Management Internal Control Framework Design
and Audit Planning and Implementation
3 Governance amp Legislation 1 Stakeholder Consultation amp Ethics in Municipal Finance
2 Intergovernmental Fiscal Relations Legislation amp Policies
affecting Municipal Financial Management
4 amp 5 Costing amp Capital
Planning Municipal IT
Support amp Project
Management
9 Capital Planning amp Financing amp Costing Principles
5 Managing Information Technology Resources in
Municipal Finance
6 Supply Chain Management amp
Public Private Partnerships
10 Municipal Supply Chain Management
11 Public Private Partnerships 2
The content 26 US -
IDrsquos 1
16
33
9
11
63
40
11
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41
11
63
42
11
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44
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48
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57
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93
31
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93
34
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41
11
93
43
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48
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52
NQF Le 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5
Credits 10 11 12 15 10 10 15 10 15 8 12 12 8 15 8 8 11 12 8 12 12 15 15 12 15 12
CMFM 48965
C C E C F C C C C F E C E C E E C C C Not applicable for
CMFM
Key Certificate SAQA ID - 48965 - 166 credits F = Fundamental C = Core E = Elective (1)
AccOff X X X X X X X X X X X X X X X X X X
CFO X X X X X X X X X X X X X X X X X X X X
SnrM X X X X X X X X X X X X X X X
MidFin X X X X X X X X X X X X X X X
SCMH X X X X X X X X X X X X X X X X
SCMM X X X X X X X X X X
3
GROUP 1
Strategic management budgeting implementation and
performance management
Module 6
Budgeting principles and cycles
Unit standard
SAQA 116341
Conduct performance management in SA
municipality
4
Time allocation
bull First day 2 hours
Units 1
bull Second day
Units 2 3 4 and 5
Group Activities Practical performance management activities
bull Third day
08h30 ndash 11h30 Assessment
5
THE ASSIGNMENT
bull Question1 Explain how IT systems can be used to incorporate organisational and individual performance management results to improve service delivery within your municipality Use practical examples where applicable (Refer to Chapter 4)
bull Question 2 Compile a report on the organisational culture within your municipality Explain how this organisational culture impacts on the performance of both individuals and the municipality as an organisation (Refer to Chapter 4)
bull Question3 Develop Key performance indicators that relate to your job description for the following KPA Good governance and Public Participation (Refer to Chapter 5)
bull Question 4 Explain how you think your municipality should go about setting targets to achieve the following KPI- The number of people from employment equity target groups employed in the three highest levels of management in compliance with the municipalityrsquos employment equity plan (Refer to Chapter 5)
6
US 116341 Unit 1
Unit 1 Introduction
bull Municipalities deliver services critical to well-being and development of its citizens
Strat plans
allocate resources
monitor implementation
report on results
bull IDP amp SDBIP monitor performance continuously
bull KPIs as instruments to assess performance
8
Unit 1 Defining PMS
bull Craythorne (2006120) PMS = technique
bull Venter et Al (2007111) pm = multidimensional construct outcomes of work
bull Van der Walt (200434)
i Efficiency relationship between inputs and outputs
ii Reduction of inputs or the cost of inputs
iii Following due process and equity
iv Relationship among input outputs and outcomes
9
Unit1 Defining PM (cont)
PM a tool to
bull plan
bull budget
bull measures
bull implement and
bull report on activities
bull foster good corporate citizenship
bull tool of governance model-council set priorities conduct business and relate to communities
bull Tool to set organisational targets strategic objectives and outcomes
bull align programmes projects and processes to individual Section 56 57 managers
10
1718
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
The content 26 US -
IDrsquos 1
16
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NQF Le 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5
Credits 10 11 12 15 10 10 15 10 15 8 12 12 8 15 8 8 11 12 8 12 12 15 15 12 15 12
CMFM 48965
C C E C F C C C C F E C E C E E C C C Not applicable for
CMFM
Key Certificate SAQA ID - 48965 - 166 credits F = Fundamental C = Core E = Elective (1)
AccOff X X X X X X X X X X X X X X X X X X
CFO X X X X X X X X X X X X X X X X X X X X
SnrM X X X X X X X X X X X X X X X
MidFin X X X X X X X X X X X X X X X
SCMH X X X X X X X X X X X X X X X X
SCMM X X X X X X X X X X
3
GROUP 1
Strategic management budgeting implementation and
performance management
Module 6
Budgeting principles and cycles
Unit standard
SAQA 116341
Conduct performance management in SA
municipality
4
Time allocation
bull First day 2 hours
Units 1
bull Second day
Units 2 3 4 and 5
Group Activities Practical performance management activities
bull Third day
08h30 ndash 11h30 Assessment
5
THE ASSIGNMENT
bull Question1 Explain how IT systems can be used to incorporate organisational and individual performance management results to improve service delivery within your municipality Use practical examples where applicable (Refer to Chapter 4)
bull Question 2 Compile a report on the organisational culture within your municipality Explain how this organisational culture impacts on the performance of both individuals and the municipality as an organisation (Refer to Chapter 4)
bull Question3 Develop Key performance indicators that relate to your job description for the following KPA Good governance and Public Participation (Refer to Chapter 5)
bull Question 4 Explain how you think your municipality should go about setting targets to achieve the following KPI- The number of people from employment equity target groups employed in the three highest levels of management in compliance with the municipalityrsquos employment equity plan (Refer to Chapter 5)
6
US 116341 Unit 1
Unit 1 Introduction
bull Municipalities deliver services critical to well-being and development of its citizens
Strat plans
allocate resources
monitor implementation
report on results
bull IDP amp SDBIP monitor performance continuously
bull KPIs as instruments to assess performance
8
Unit 1 Defining PMS
bull Craythorne (2006120) PMS = technique
bull Venter et Al (2007111) pm = multidimensional construct outcomes of work
bull Van der Walt (200434)
i Efficiency relationship between inputs and outputs
ii Reduction of inputs or the cost of inputs
iii Following due process and equity
iv Relationship among input outputs and outcomes
9
Unit1 Defining PM (cont)
PM a tool to
bull plan
bull budget
bull measures
bull implement and
bull report on activities
bull foster good corporate citizenship
bull tool of governance model-council set priorities conduct business and relate to communities
bull Tool to set organisational targets strategic objectives and outcomes
bull align programmes projects and processes to individual Section 56 57 managers
10
1718
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
GROUP 1
Strategic management budgeting implementation and
performance management
Module 6
Budgeting principles and cycles
Unit standard
SAQA 116341
Conduct performance management in SA
municipality
4
Time allocation
bull First day 2 hours
Units 1
bull Second day
Units 2 3 4 and 5
Group Activities Practical performance management activities
bull Third day
08h30 ndash 11h30 Assessment
5
THE ASSIGNMENT
bull Question1 Explain how IT systems can be used to incorporate organisational and individual performance management results to improve service delivery within your municipality Use practical examples where applicable (Refer to Chapter 4)
bull Question 2 Compile a report on the organisational culture within your municipality Explain how this organisational culture impacts on the performance of both individuals and the municipality as an organisation (Refer to Chapter 4)
bull Question3 Develop Key performance indicators that relate to your job description for the following KPA Good governance and Public Participation (Refer to Chapter 5)
bull Question 4 Explain how you think your municipality should go about setting targets to achieve the following KPI- The number of people from employment equity target groups employed in the three highest levels of management in compliance with the municipalityrsquos employment equity plan (Refer to Chapter 5)
6
US 116341 Unit 1
Unit 1 Introduction
bull Municipalities deliver services critical to well-being and development of its citizens
Strat plans
allocate resources
monitor implementation
report on results
bull IDP amp SDBIP monitor performance continuously
bull KPIs as instruments to assess performance
8
Unit 1 Defining PMS
bull Craythorne (2006120) PMS = technique
bull Venter et Al (2007111) pm = multidimensional construct outcomes of work
bull Van der Walt (200434)
i Efficiency relationship between inputs and outputs
ii Reduction of inputs or the cost of inputs
iii Following due process and equity
iv Relationship among input outputs and outcomes
9
Unit1 Defining PM (cont)
PM a tool to
bull plan
bull budget
bull measures
bull implement and
bull report on activities
bull foster good corporate citizenship
bull tool of governance model-council set priorities conduct business and relate to communities
bull Tool to set organisational targets strategic objectives and outcomes
bull align programmes projects and processes to individual Section 56 57 managers
10
1718
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Time allocation
bull First day 2 hours
Units 1
bull Second day
Units 2 3 4 and 5
Group Activities Practical performance management activities
bull Third day
08h30 ndash 11h30 Assessment
5
THE ASSIGNMENT
bull Question1 Explain how IT systems can be used to incorporate organisational and individual performance management results to improve service delivery within your municipality Use practical examples where applicable (Refer to Chapter 4)
bull Question 2 Compile a report on the organisational culture within your municipality Explain how this organisational culture impacts on the performance of both individuals and the municipality as an organisation (Refer to Chapter 4)
bull Question3 Develop Key performance indicators that relate to your job description for the following KPA Good governance and Public Participation (Refer to Chapter 5)
bull Question 4 Explain how you think your municipality should go about setting targets to achieve the following KPI- The number of people from employment equity target groups employed in the three highest levels of management in compliance with the municipalityrsquos employment equity plan (Refer to Chapter 5)
6
US 116341 Unit 1
Unit 1 Introduction
bull Municipalities deliver services critical to well-being and development of its citizens
Strat plans
allocate resources
monitor implementation
report on results
bull IDP amp SDBIP monitor performance continuously
bull KPIs as instruments to assess performance
8
Unit 1 Defining PMS
bull Craythorne (2006120) PMS = technique
bull Venter et Al (2007111) pm = multidimensional construct outcomes of work
bull Van der Walt (200434)
i Efficiency relationship between inputs and outputs
ii Reduction of inputs or the cost of inputs
iii Following due process and equity
iv Relationship among input outputs and outcomes
9
Unit1 Defining PM (cont)
PM a tool to
bull plan
bull budget
bull measures
bull implement and
bull report on activities
bull foster good corporate citizenship
bull tool of governance model-council set priorities conduct business and relate to communities
bull Tool to set organisational targets strategic objectives and outcomes
bull align programmes projects and processes to individual Section 56 57 managers
10
1718
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
THE ASSIGNMENT
bull Question1 Explain how IT systems can be used to incorporate organisational and individual performance management results to improve service delivery within your municipality Use practical examples where applicable (Refer to Chapter 4)
bull Question 2 Compile a report on the organisational culture within your municipality Explain how this organisational culture impacts on the performance of both individuals and the municipality as an organisation (Refer to Chapter 4)
bull Question3 Develop Key performance indicators that relate to your job description for the following KPA Good governance and Public Participation (Refer to Chapter 5)
bull Question 4 Explain how you think your municipality should go about setting targets to achieve the following KPI- The number of people from employment equity target groups employed in the three highest levels of management in compliance with the municipalityrsquos employment equity plan (Refer to Chapter 5)
6
US 116341 Unit 1
Unit 1 Introduction
bull Municipalities deliver services critical to well-being and development of its citizens
Strat plans
allocate resources
monitor implementation
report on results
bull IDP amp SDBIP monitor performance continuously
bull KPIs as instruments to assess performance
8
Unit 1 Defining PMS
bull Craythorne (2006120) PMS = technique
bull Venter et Al (2007111) pm = multidimensional construct outcomes of work
bull Van der Walt (200434)
i Efficiency relationship between inputs and outputs
ii Reduction of inputs or the cost of inputs
iii Following due process and equity
iv Relationship among input outputs and outcomes
9
Unit1 Defining PM (cont)
PM a tool to
bull plan
bull budget
bull measures
bull implement and
bull report on activities
bull foster good corporate citizenship
bull tool of governance model-council set priorities conduct business and relate to communities
bull Tool to set organisational targets strategic objectives and outcomes
bull align programmes projects and processes to individual Section 56 57 managers
10
1718
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
US 116341 Unit 1
Unit 1 Introduction
bull Municipalities deliver services critical to well-being and development of its citizens
Strat plans
allocate resources
monitor implementation
report on results
bull IDP amp SDBIP monitor performance continuously
bull KPIs as instruments to assess performance
8
Unit 1 Defining PMS
bull Craythorne (2006120) PMS = technique
bull Venter et Al (2007111) pm = multidimensional construct outcomes of work
bull Van der Walt (200434)
i Efficiency relationship between inputs and outputs
ii Reduction of inputs or the cost of inputs
iii Following due process and equity
iv Relationship among input outputs and outcomes
9
Unit1 Defining PM (cont)
PM a tool to
bull plan
bull budget
bull measures
bull implement and
bull report on activities
bull foster good corporate citizenship
bull tool of governance model-council set priorities conduct business and relate to communities
bull Tool to set organisational targets strategic objectives and outcomes
bull align programmes projects and processes to individual Section 56 57 managers
10
1718
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 Introduction
bull Municipalities deliver services critical to well-being and development of its citizens
Strat plans
allocate resources
monitor implementation
report on results
bull IDP amp SDBIP monitor performance continuously
bull KPIs as instruments to assess performance
8
Unit 1 Defining PMS
bull Craythorne (2006120) PMS = technique
bull Venter et Al (2007111) pm = multidimensional construct outcomes of work
bull Van der Walt (200434)
i Efficiency relationship between inputs and outputs
ii Reduction of inputs or the cost of inputs
iii Following due process and equity
iv Relationship among input outputs and outcomes
9
Unit1 Defining PM (cont)
PM a tool to
bull plan
bull budget
bull measures
bull implement and
bull report on activities
bull foster good corporate citizenship
bull tool of governance model-council set priorities conduct business and relate to communities
bull Tool to set organisational targets strategic objectives and outcomes
bull align programmes projects and processes to individual Section 56 57 managers
10
1718
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 Defining PMS
bull Craythorne (2006120) PMS = technique
bull Venter et Al (2007111) pm = multidimensional construct outcomes of work
bull Van der Walt (200434)
i Efficiency relationship between inputs and outputs
ii Reduction of inputs or the cost of inputs
iii Following due process and equity
iv Relationship among input outputs and outcomes
9
Unit1 Defining PM (cont)
PM a tool to
bull plan
bull budget
bull measures
bull implement and
bull report on activities
bull foster good corporate citizenship
bull tool of governance model-council set priorities conduct business and relate to communities
bull Tool to set organisational targets strategic objectives and outcomes
bull align programmes projects and processes to individual Section 56 57 managers
10
1718
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit1 Defining PM (cont)
PM a tool to
bull plan
bull budget
bull measures
bull implement and
bull report on activities
bull foster good corporate citizenship
bull tool of governance model-council set priorities conduct business and relate to communities
bull Tool to set organisational targets strategic objectives and outcomes
bull align programmes projects and processes to individual Section 56 57 managers
10
1718
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit1 Defining PMS (cont)
bull Management of HR as important as management of organisational system
bull HRM to include
changing existing culture
introducing skills amp leadership development
bull Human element of change management if pm to succeed
11
18
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 Role of Mayor Council MM Snr Mrsquos
bull The Municipal Structures Act 1998 Section 19(1) states
Mun Council must strive within its capacity to achieve the objectives set in Sec 152 of Constitution
bull Sec 19(2) states annually review overall performance
bull Roles summarised in annexure 1 pages 117-129
12
19
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 A MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM IS DEVELOPED AS REQUIRED BY THE LOCAL GOVERNMENT LEGISLATIVE FRAMEWORK AND OTHER POLICIES
bull The inception of the 1996 Constitution and the consequent adoption of the White Paper on Local Government in 1998
bull End of transitional LG range of legislation
bull Framework to structure political amp admin functions
bull Emphasis on developmental mandate
bull Policies amp legislation forms basis for PMS
13
21
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 Legislative framework
bull The Constitution of the RSA 1996 sec 152 153
bull White Paper on LG 1998 sec B pg 45
bull Structures Act 1171998 sec 44 amp 56
bull Systems Act 322000 chtps 4 5 amp 6
bull Perf Regs R79624082001 KPIrsquos
bull Perf Regs for Managers R80501082006
bull MFMA 562003 sec 17(3)(b)
bull MFMA Circulars cir 13-SDBIP cir 32-OR
bull Act 7 of 2011
bull Batho Pele
14
22
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
BATHO PELE
Putting People First
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
1 CONSULTATION
You can tell us what you want to know from us
THE PRINCIPLE
You should be consulted about the level and quality of the services you receive and whenever possible you should be given a choice about the services that are offered
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
2 SERVICE STANDARDS
Insist that we keep our promises
THE PRINCIPLE
You should be told what level and quality of service you will receive so that you may know what to expect
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
3 ACCESS
One and all should get their fair share
THE PRINCIPLE
You and all citizens should have equal access to the services to which you are entitled
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
4 COURTESY
Do not accept insensitive treatment
THE PRINCIPLE
You should be treated with courtesy and consideration
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
5 INFORMATION
You are entitled to full particulars
THE PRINCIPLE
You should be given full and accurate information about the public services to which you are entitled
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
6 OPENNESS AND TRANSPARENCY
The administration of the public service must be open and transparent
THE PRINCIPLE
You should be told how the public service is run how much it costs and who is in charge
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
7 REDRESS
Your complaints must spark positive action
THE PRINCIPLE
If the promised standard of services is not delivered you should be offered an apology a full explanation and a speedy and effective remedy When complaints are made you should receive a sympathetic positive response
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
8 VALUE FOR MONEY
Your money should be used wisely
THE PRINCIPLE
Public services should be provided efficiently to give you the best possible value for money
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit1 Legislation and policies applicable
bull Page 23-32 set out to describe legislation description and application as discussed above
24
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit1 Legislation and policies applicable
Legislation that governs performance actions
Appendix 3 pages 135 to 141
As summarised below
25
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Legislative Framework Council
Legislation Action
S25(1) of MSA Adopt 5 year IDP
S34(a)(i) of MSA Review IDP
S38 of MSA Establish PMS
S40 of MSA Establish mechanisms to monitor and review PMS
S41 of MSA Set KPIrsquos targets and objectives
S42 of MSA Involve local community in the development implementation review of PMS
S43 of MSA KPIrsquos must include general KPIrsquos as per regs
S44 of MSA Make known KPIrsquos and performance targets
S16 of MFMA Approve annual budget
S 24 of MFMA Consider approval of annual budget
S129 of MFMA Consider the annual report and adopt an oversight report
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Legislative Framework Mayor
Legislation Action
S30(a) + (b) Manage drafting of IDP and submit for adoption by council
S39 of MSA Manage development of PMS
S21(1) (b) of MFMA
Table time table for budget and IDP review process
S33(1)(c) of MFMA
Must take reasonable steps to ensure that Council approves budget timeously approves SDBIP within 28 days after budget is approved annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA
Publish SDBIP
S53(3)(b) of MFMA
Publish performance agreement of Accounting officer and senior managers
S53(2) of MFMA Submit reports to Council on implementation of budget and financial affairs
S72 of MFMA Table Sec 72 report in Council
S127 of MFMA Table annual report in Council
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Legislative Framework Accounting Officer
Legislation Action
S46 of MSA Submit performance reports annually
S57 of MSA Conclude employment contracts for MM and managers
S17 of MFMA Contents of budget and supporting documentation must conform to provisions of Sec 17 of MFMA
S22 of MFMA Publish budget invite public comment submit to NT
S68(a) of MFMA Must assist mayor in performing budgetary functions
S69(1) of MFMA Must implement approved budget
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 COMMUNITY PARTICIPATION PROCESSES
Why community participation
bull Involvement communities in affairs of gov
bull Reduces autocratic behaviour
bull Continuous interaction between role players
bull Community can express needs amp grievances
bull Stakeholders can present the interest of their constituencies
bull Monitor amp
bull Oversight of implementation of IDP
bull Create a sense of ownership on the side of community
29
36
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 Public Participation Constraints
bull Lack of capacity and resources
bull When municipality embark on public participation
bull Four areas to address
Time
Transport
Education
Communication access
bull More recently apathy because ofhelliphellip
30
37
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 Public participation (cont)
Systems Act does not prescribe form of participation but principles
bull 34141 the need to consider the special concerns of people with physical disabilities
bull 34142 the need to take note of gender issues
bull 34143 the importance of taking into consideration language preferences and
bull 34144 the need to ensure that participatory processes are in line with the financial and administrative capacity of the municipality
31
41
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 PERFORMANCE REPORTING
bull Corporate governance is the term associated with the trend towards greater corporate responsibility and the conduct of business within acceptable ethical standards
bull Transparency accountability and openness in reporting and disclosure of information are vital for good corporate governance
bull Above refers to Batho Pele Principles
32
41
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 Reports prescribed by legislation
bull Systems Act and MFMA
bull Monthly
bull Quarterly
bull Mid year performance assessment
bull Annual Report
bull Oversight Report
bull Designed to identify under-performance
bull Provide for corrective measures
bull Overview of reports on pages 42-46
33
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 1 Non-compliance consequences
Section133 of MFMA sets out steps to follow if MM or Mayor does not comply
bull Mayor must report to council
bull AG must report to speaker NT MEC for LG + MEC for Finance
bull Municipal Council must request speaker to investigate institute steps to ensure compliance disciplinary procedures
bull Prov Exec may intervene ito sec 139
bull NT ito sec 5(2)(e) stopping of funds
bull PT ito sec 5(4)(d) take appropriate steps
34
46
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Day 2
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Introduction
bull As you know by now performance management is a process mission ndash objectives ndash staff
bull Applies to performance and persons related to it
bull Include politicians
bull Things that a municipality simply must do
establish PMS
promote culture of PM
administer affairs eee amp in accountable manner
establish KPIrsquos
36
52
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Individual financial amp non-financial performance concepts
bull Institutions performance linked to that of its staff
bull Sec 57 managers (now sec 56)
Ito Regs 2006
bull Contract of Employment ( 1 year after election)
bull Performance agreement ( 90 days after appointment) with Performance plan personal development plan
bull Certified copies of qualifications
bull Code of Conduct
bull Financial Disclosures
37
54
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Performance Agreement
Must include
bull Purpose of perf agreement
bull Commencement and duration
bull Performance objectives
bull PMS
bull Evaluating performance
bull Schedule for perf review
bull Developmental requirements
bull Obligation by employer
bull Consultation
bull Management
bull Of evaluation outcomes
bull Dispute resolution
bull General
38
55
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Performance Plan
Must include
bull Performance and targets with timeframes
bull Standards amp procedures for evaluating
bull Consequences for substandard performance
bull Targets must be practical measurable based on KPIrsquos set out by IDP
39
54
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Key Performance Areas
bull KPA 1 Municipal transformation amp organisational development
bull KPA 2 Basic Service Delivery
bull KPA 3 Local Economic Development
bull KPA 4 Municipal Financial Viability amp Management
bull KPA 5 Good Governance amp Public Participation
bull Example of performance plan page 56 40
55
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 PERFORMANCE MANAGEMENT CONCEPTS
bull Score card differentiate between financial and non-financial
bull BSC
41
57
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Improve performance strategies
bull Restructuring
bull Improve processes amp systems
bull Training amp sourcing
bull Change management
bull Revise strategy
bull Consider alternative strategies
bull Mission fundamental purpose-why do we exist
bull Vision future
bull Strategic objectives
bull KPAs focus of strategic processes
bull Determine desired results
42
61
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Desired results
bull Strategic objectives are the broadest statements of what an organisation chooses to accomplish
bull Strategic objectives are the areas what the organisation wants to spend its resources on
bull Strategic objectives for every KPA
bull Strategic objectives = goals = high level objectives
bull SWOT analysis assist in determining objectives
43
62
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Relationship between outputs and outcomes
bull Once the strategic objectives of a municipality have been established the next step would be to translate these into outputs and outcomes
bull Outputs quantity amp quality of services delivered
bull Outputs lead to outcomes or realisation of objectives
bull Cost effectiveness relationship between outcomes amp cost of providing them
bull Outcomes quality amp impact of services
44
64
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Ethos of PMS relies on setting KPIs
bull KPIs important because
1 provide a common framework for gathering data for measurements and reporting
2 translate complex concepts into simple operational measurable variables
3 enable the review of strategic objectives
4 assist in policy review processes
5 help focus the organisation on strategic areas and
6 help provide feedback to the organisation and staff
45
65
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Guidelines on setting of KPIs
The Local Government Municipal Planning and Performance Regulations (2001) give clear direction on the setting of KPIs (Regulation 9)
bull A municipality must set KPIrsquos including input output amp outcome indicators iro each of development priorities and objectives referred to in Sec 26(c) of the LG Municipal Systems Act 2000
bull KPI measurable relevant objective precise
bull Ensure public participation in setting
bull KPIrsquos for all admin units employees entities service providers
46
65
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Outcome inputs and outputs
The Local Government Municipal Systems Act (2000) requires local government to measure its performance on outputs and outcomes The Local Government Municipal Planning and Performance Management Regulations 2001 Regulation 9 (1)(a) requires municipalities to measure the input output and outcome indicators
47
66
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Definitions and explanations
bull Input indicators measure costs resources time (economic) Remember ABC
bull Output indicators measure yield (no) in products (efficiency)
bull Outcome indicators measure impact (effectiveness)
bull Composite indicators combine a set of indicators into one by developing mathematical relationship between them
bull Baseline indicators current situation
48
6667
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Figure 22 the relationship between core performance information concepts
49
68
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 THE APPROPRIATE MEASURES OF EFFECTIVENES EFFICIENCY AND ECONOMY ARE IDENTIFIED AND APPLIED IN A MUNICIPAL PMS
bull The Framework for Managing Programme Performance Information of National Treasury (2007) highlights efficiency effectiveness economy and equity indicators
bull Efficiency productively of inputs to outputs (output)
bull Effectiveness outputs achieve desired outcomes (outcome)
bull Economy inputs acquired at lowest cost right time amp method of producing outputs is economical (input)
bull Equity services provided impartially fairly equitably
50
69
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Figure 23 Framework for Managing Programme Performance Information of National Treasury
51
70
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 2 Working example
52
71
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
ACTIVITYCLASS DISCUSSION
689
53
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 3 Introduction
bull In terms of Section 19 of the Municipal Structures Act
bull Sections 39 40 and 41 of the Municipal Systems Act and
bull Regulation 7(2) of the Municipal Planning and Performance Management Regulations
bull a Local Government Structure shall develop a Performance Management System (PMS)
54
76
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 3 KPAs for Managers
55
81
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 3 Managers reporting to MM
bull KPAs negotiable and relate to functional areas of manager 80 of score
bull CCR 20 of assessment score-selected from list on pages 81-82
56
8182
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 3 Annual performance appraisal
What needs to be assessed measured during appraisal
1048712 Assessment of the achievement of each KPA
1048712 An indicative rating on the five-point scale for each KPA (80)
1048712 Assessment of each CCR according to the extent to which the standard have been met
1048712 An indicative rating on the five-point scale for each CCR (20)
57
83
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
Unit 3 Evaluation panel MM
Executive Mayor or Mayor
Chairperson of the performance audit committee
Member of mayoral or executive committee
Mayor andor municipal manager from another municipality and
Member of a ward committee as nominated by the Exec Mayor Mayor
Reg 27(4)(d)
58
83
Unit 3 Evaluating the performance of managers directly accountable to the MM
Municipal manager
Chairperson of the performance audit committee
Member of the mayoral or executive committee and
Municipal manager from another municipality
Reg 27(4)(e)
59
83
Unit 3 Other Staff
bull Section 66 of the Municipal Systems Act 2000 states that a municipal manager within a policy framework determine by the municipal council must approve(develop sec 8 Act 72011) a staff establishment for a municipality
bull No person appointed unlesshellip(sec 8(b)(3))
bull In accordance with the Employment Equity Act 1998 a municipality must develop and adopt appropriate systems and procedures to ensure fair efficient effective and transparent personnel administration
60
84
Unit 3 Poor performance-reasons
Poor systems and processes
Inappropriate structure
Lack of skills and capacity
Inappropriate organisational culture and
Absence of appropriate strategy
61
85
Unit 3 DISCIPLINARY PROCESSES ARE ADAPTED TO
INCLUDE PERFORMANCE AGREEMENTS
3211 Addressing Poor Performance and Incapacity
3212 Formal Poor Performance Counselling Sessions
3213 Formal Disciplinary Process ndash Corrective action
62
87
Unit 4
Identify and establish institutional
arrangements required for performance
management in a municipality
64
Unit 4 Performance monitoring amp auditing
bull Core function = service delivery to community
bull IDP = strategic plan
bull SDBIP amp performance plans developed to ensure strategic plan is implemented
bull PMS is key to integrating IDP amp SDBIP and is means of measuring impact of service delivery
bull Munic must establish amp develop systems to ensure
monitoring
validation
assessment
evaluation
reporting and review of performance take place
65
93
Unit 4 Monitoring
bull It is regular observation amp recording of activities
bull Process of routinely gathering data
bull It is also giving feedback on progress
bull It is an ongoing process that runs parallel to the implementation of the IDP
66
93 3122
Unit 4 Auditing
bull Monitoring occur best through auditing
bull Overall function of performance audit is a validation of how the munic rates itself ito achievement
bull It verify evidence
bull Provide motivation in relation to the principles of sound corporate governance
bull King 2002 Internal audit should assist management to achieve goals by evaluating and recommending improvements
67
95
Unit 4 Internal auditors
bull Must on continuous basis audit performance
bull Submit quarterly reports to MM amp perf audit committee
bull Once validation received from audit committee amp problem areas rectified different reports can be generated eg sec 71
bull Need IT for above IGNITE CORVU CASE WARE EXCEL amp other
68
95
Unit 4 Organisational Culture
bull Organisation culture is what sets one organisation apart from another
bull Top management behaviour actions attitudes and even dress code affects culture of organisations
bull Different staff structuresorganogram
69
102
Unit 5 INTRODUCTION
bull KPArsquos reflect what a municipality believes must be done in order to succeed
bull KPArsquos therefore relates to internal business processes
71
107
Unit 5 KPIrsquos
bull KPIrsquos are measurements that tells us whether progress is been made in achieving our goals
bull Measurable
bull Simple
bull Precise
bull Relevant
bull Adequate
bull Objective
bull Realistic
72
109
Unit 5 Setting targets
bull Performance targets =planned level of performance
bull SMART criteria
S = Specific nature and required level of performance can be clearly identified
M= Measurable required performance can be measured
A= Achievable target is realistic given existing capacity
R= Relevant required performance is linked to achieving of a goal
T= Time-bound Deadline is specified
73
Unit 5 Requirements for setting targets
bull Public consulted on needs amp expectations
bull Targets informed by development needs of communities
bull Availability of resources and capacity
bull Decision-makers make commitment to achieving these targets within agreed-upon time frames
Target setting will determine who is going to take responsibility for what
74
112
ACTIVITYCLASS DISCUSSION
18
75
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
76
Strategic Objectives (Cont)
bull A strategic objective must be
ndash Measurable or verifiable
ndash Achievable or feasible
ndash Flexible or adaptable
ndash Consistent with the rest of your strategic plan
ndash Does it stretch your staff without breaking them
ndash Is it clear easy to understand and inviting to achieve
77
Strategic Objectives
bull Strategic objectives begin with such words as
ndash To have
ndash To be
ndash To became
ndash To achieve
bull and end with a month year
78
Strategic Objectives examples bull To build and enhance the governance system in order to
enable sustainable development and service delivery
bull To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate
bull To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate
bull To monitor evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance accountability and public confidence
bull To strengthen the dplgs organisational capability and performance to deliver on its mandate
79
Strategic Objectives examples (Cont) Growth
bull Achieve $1 billion in annual revenues with $60 million in profits
bull Maintain a net profit rate equal to or better than the best world class companies in our industry
bull Have investment policies and fiscal procedures to foster aggressive growth and profitability
bull Have a comprehensive business development plan
bull Have 6 projects in 3 countries
Management
bull Have a management team capable of meeting our strategic objectives
bull Have a complete management team
Safety
bull Have an injury free workforce
80
Strategic Objectives examples (Cont) Administrative
bull Have standardized cost management and financial systems
bull Have standard operating procedures
Employees
bull Have a comprehensive career development program
bull Achieve an employee turnover rate less than 5
bull Define and communicate organizational roles responsibilities and expectations for all employees
Natural resources
bull Produce coal on our lands
Physical plant
bull Have all digital equipment
bull Have a replacement equipment financing plan
bull Have a technology development and implementation plan
Quality
bull Complete the ISO 9000 certification of all projects
bull Achieve zero errors and omissions claims
bull Achieve compliance with federal state and local environmental mandates
81
Programme Objective
82
Definition
A program objective is a specific and usually
quantifiable statement of program
achievement It is a statement of measurable
outcome which can be used to determine
program progress towards the program goal
Collectively objectives represent a
quantification of the program goal
Programme Objective (Cont)
83
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will produce 5000 adult literates from the basic
literacy classes
The program will graduate 3000 adults from advanced classes
The program will train 80 teachers
The program will train 10 literacy supervisors
The program will establish a basic curriculum of nine pieces
including a primer a teachers guide a basic reader an
advanced primer an advanced reader a transition primer a
basic math book an applied math book and an introduction to
spoken and written French
Programme Objective (Cont)
84
Examples
Here is an example set of program objectives from a literacy
program for a small language group
The program will establish an on-going literature production
process
The program will publish 30 titles in the mother tongue
The program will organize 30 womens reading clubs
The program will organize a 12-member program guidance
team to sponsor and promote the literacy program
The program will organize 10 farmers cooperatives
The program will develop 15 health centers
The program will take steps to integrate this overall program
into the ongoing national adult literacy program
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Improve the financial position of the municipality
Credit rating
Proper credit management (revenue and expenditure management)
Compliance in accordance with all relevant legislation(example the MFMA)
Debtors management (management of data arrears etc)
Amount to be spentrand value of project
Percentage of project implementation
Process supporting the programme
Input Indicator Outputs indicator Outcome Indicator
Billing process conducted within 30 days
Rand value of total billings
Percentage of bills forwarded to debtors at each month end
Ratio of debtors that was billed and the revenue received for the specific month
Key PA Strategic Objective
Key Performance Indicator
Programme Objective
Programme Outcome Indicator
Project Project Indicator
Financial Viability
Improve the financial position of the municipality
Percentage decrease in backlog for basic services
Manage the revenue of the municipality
Percentage increase in financial ration debt coverage
Billing system
Percentage short term interest earned
Unit 2 Working example KPA
Strategic Objective WHAT DO YOU WANT TO ACHIEVE STRATEGICALLY
Outcome Indicator How will you measure the impact of the strategic objective
Programme Objective What is the objective of the specific projectprogramme identified
Outcome Indicator How will you measure impact of the above projectprogramme
Capital Project Name of the project
Input Measurement R value spent on projectprogramme (budget related)
Output Measurement Units measured of the project
Process supporting the programme Documentation of process
Input Indicator Unit cost of the process
Output Indicator Achievement of the project ndash what you intend to achieve
Outcome Indicator Outcome = impact Percentage of the strategic objective (whole) realised
88
Unit 2 Working example KPA LED
Strategic Objective Reducing unemployment levels within the municipal area
Outcome Indicator Number of Indigent households
Programme Objective Provide work opportunities
Outcome Indicator reduction in annual registered indigent households
Capital Project Maintenance of sw network by community contractors
Input Measurement Amount (R) spent on project
Output Measurement Number jobs created
Process supporting the programme EPWP reporting structure (time sheets)
Input Indicator R spent per household project
Output Indicator Number of indigent households people employed
Outcome Indicator reduction in number of indigent households
89
Unit 2 Working example KPA Financial Viability
Strategic Objective To improve the financial position of the municipality
Outcome Indicator Credit Rating
Programme Objective To manage the revenue of the municipality
Outcome Indicator alignment with MFMA
Capital Project Financial system DB implementation
Input Measurement R value spent on system implementation
Output Measurement project tasks completed no of transactions captured
Process supporting the programme Billing process to be conducted within 30 days
Input Indicator R value of billing process
Output Indicator no of accounts sent by month - end
Outcome Indicator variance actual R value billed R valued received (paid)
90
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective To build more RDP houses than the previous year
Outcome Indicator To build 150 RDP houses
Programme Objective To reduce the housing backlog
Outcome Indicator Number RDP houses built
Capital Project Low cost housing project
Input Measurement Amount (R) project capital budget spent
Output Measurement No houses completed
Process supporting the programme Construction progress reports
Input Indicator R cost per house
Output Indicator Number of houses built
Outcome Indicator reduction in housing waiting list
91
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Ensure effective integrated development planning and performance management in the municipality
Outcome Indicator compliance of IDP amp PMS processes with legislation
Programme Objective Compliant IDP Public participation process
Outcome Indicator no of community members participating in the IDP process
Capital Project IDP 201213
Input Measurement R value spent on IDP programme
Output Measurement monthly spending
Process supporting the programme Public Participation Meetings
Input Indicator Cost per meeting
Output Indicator Number of public meetings held as per the program
Outcome Indicator Percentage of meetings held ito IDP process plan
92
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective Occupational Health and Safety
Outcome Indicator Compliance with OHS Act
Programme Objective Risk Assessments within each department
Outcome Indicator reduction in COID cases
Capital Project OHS ndash risk assessments
Input Measurement R value spent on projectprogramme
Output Measurement budget spent
Process supporting the programme Risk analyses completed
Input Indicator Cost per risk analysis
Output Indicator Number risk analyses and assessment plans completed
Outcome Indicator compliance with OHS
93
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Improve household access to basic services
Outcome Indicator Basic services to households in formal areas
Programme Objective Provide access to basic services for households in formal areas
Outcome Indicator households with access to basic services
Capital Project Provision of Basic Services
Input Measurement R spent on capital budget
Output Measurement new households with access to basic services
Process supporting the programme Progress certificates
Input Indicator Cost per household
Output Indicator Number of new households connected
Outcome Indicator households with access to basic services
94
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective Basic refuse removal service to all households
Outcome Indicator Basic refuse removal to households in formal areas
Programme Objective Provide access to basic refuse removal for households in formal areas
Outcome Indicator households with access to refuse removal
Capital Project Provision of Basic refuse removal
Input Measurement R spent on capital budget
Output Measurement new households with access to refuse removal
Process supporting the programme Provision of skips
Input Indicator Cost per skip
Output Indicator Number of new households serviced
Outcome Indicator households with access to refuse removal
95
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all household in the municipal area has access to clean drinking water
Outcome Indicator Provision of basic water to all households
Programme Objective Provide access to basic water to all households
Outcome Indicator households with access to basic water
Capital Project Upgrade to water network ndash household connection
Input Measurement R value spent on project
Output Measurement Number of new water connections
Process supporting the programme Worksheets and job cards
Input Indicator Cost per connection
Output Indicator Number of households provided with access to basic water
Outcome Indicator household with access to basic water
96
Unit 2 Working example KPA Basic service delivery
Strategic Objective To ensure that all pit latrines are eradicated by 2015
Outcome Indicator Provide formal sanitation to all households
Programme Objective Eradicate pit latrines
Outcome Indicator households provided with formal sanitation
Capital Project Pit latrine eradication
Input Measurement R value spent on pit latrine project
Output Measurement Number of new households with formal sanitation
Process supporting the programme Project progress and completion certificates
Input Indicator R per household
Output Indicator Number households provided with formal sanitation
Outcome Indicator households with formal sanitation
97
Unit 2 Working example KPA Basic service delivery
Strategic Objective To improve the public transport system within the municipal area
Outcome Indicator Access to public service system within 400m
Programme Objective Effective reliable affordable public transport system
Outcome Indicator public transport system implemented
Capital Project George Public Transport System
Input Measurement R value spent on project
Output Measurement Number routes implemented
Process supporting the programme Licensing of PT routes
Input Indicator Number route licenses issued
Output Indicator route licenses issued
Outcome Indicator routes implemented
98
GROUP WORK
Group 1 Group 2 Group 3 Group 4
Summarise Legislative framework Council
Summarise Legislative framework Mayor
Summarise Legislative framework AO
Summarise Monitoring amp Auditing of PMS
Summarise Performance Regs 2001 Chapter 3
Summarise Performance Regs 2006 Chapter 2
Summarise Performance Regs 2006 Chapter 3
Summarise Performance Regs 2006 Chapter 4
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Develop a strategic objective etc for each KPA
Unit 2 Working example KPA Municipal Transformation and Organisational
Development
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
100
Unit 2 Working example KPA Basic Service Delivery
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
101
Unit 2 Working example KPA LED
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
102
Unit 2 Working example KPA Municipal Financial Viability and Management
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
103
Unit 2 Working example KPA Good Governance and Public Participation
Strategic Objective
Outcome Indicator
Programme Objective
Outcome Indicator
Capital Project
Input Measurement
Output Measurement
Process supporting the programme
Input Indicator
Output Indicator
Outcome Indicator
104
The Exam helliphellip
105
SCHOOL OF PUBLIC LEADERSHIP
Thank you helliphellip
106
