REPORT ON THE WORK OF REPORT ON THE WORK OF THE INTERIM THE INTERIM

MANAGEMENT TEAM, MANAGEMENT TEAM, EASTERN CAPEEASTERN CAPE

REPORT ON THE WORK OF REPORT ON THE WORK OF THE INTERIM THE INTERIM

MANAGEMENT TEAM, MANAGEMENT TEAM, EASTERN CAPEEASTERN CAPE

NCOP

11 SEPTEMBER 2003

Structure of the presentation

The IMT mandate

Summary of challenges

The IMT solution

Lessons learnt

Mandate of the IMT

Overall goal of the IMT is to ensure that any service delivery backlogs are addressed and to establish sound management and leadership in the Education, Health, Roads and Public Works and Social Development departments

The IMT is specifically mandated to-

– establish turn around plans for the four target departments, including the elimination of service delivery backlogs

– address cross cutting issues such as disciplinary matters, procurement reform and human resource management

– establish appropriate management structures and back office support

– monitor the implementation of the turn around plans and other interventions as well as the use of conditional grants

On the basis of its presentations to the Provincial EXCO and Cainet, the IMT received additional mandates related to specific challenges

Structure of the IMT

Interim Management TeamDG:DPSA, DG:OPSC,DG:ECape and HoD of Provincial Treasury[In partnership with National Prosecuting Authority and other law enforcement agencies]

Specialist TeamsIssues based ad hoc teams, e.g. Disciplinary

cases

OPSCDPSA

National Depts& EC senior Managers

Joint Management TeamsSpecialists and consultants from

IMT Roadmap

3. Proposals & Way foward

• Develop proposals for all identified problems

• Agree on priorities with Executive Council

• Cost priorities and develop detailed implementation plans

• Develop a comprehensive program management system

4. Implementation

• Implement, implement, implement • Visibility of delivery and celebration of

success• Create a culture of “delivery”• April, ongoing

5. Evaluation and exit• Develop strategies for sustaining

implementation drive• Evaluation and exit report• Through to March 2004

1. Preparation for IMT work• Set up infrastructure and establish

teams• Asses legal options and accountability• November 2002 – January 2003

2. Problem analysis• Structure partnership arrangements with

key stakeholders such as JACTT and AG• Assess impact of previous initiatives• Conduct thorough problem analysis• Identify quick wins and opportunities for

immediate success• January – February 2003

Modus operandi of JMTs

JMT co-leaders work collaboratively, and the HOD remains accounting officer

The tasks of each JMT were to-

– develop plans and strategies to address service delivery backlogs

– Identify actions in the areas of Leadership and Management, Finance and Administration, Human Resource Management, Service Delivery and Ethics and Cultural issues

– to implement the turn around plan of the department

The roles of the JMTs of each department are now being assessed to improve their effectiveness and to integrate turn around plans into departmental work

Relationship with other stakeholders

The IMT functions in close co-operation with, and receives support from various partners and stakeholders. These are-

– the Joint Anti-corruption Task Team (JACTT) led by the National Director of Public Prosecutions, that attends to criminal matters emanating from the IMT’s work

– Intelligence and law enforcement agencies

– the Special Investigating Unit

– The Office of the Auditor-General

– a range of national and (other) provincial departments who provide portfolio specific or cross cutting support (eg. national Health department, SAMDI, provincial treasury of the Western Cape)

– the Center for Public Service Innovation and the State Information Technology Agency

The IMT’s operations are emerging as a model for integrated governance with a cross-departmental and cross-institutional sharing of skills and other resources

Problem analysis: General observation

Quality of leadership and management at departmental level?

Quality of human resource management practices?

Financial management and general administrative capacity?

Ability to uphold ethics and reduce corruption?

Reliability and dependability of public service to deliver on government priorities?

Overall effectiveness and efficiency of public service ?

X

Positive Negative

X

X

X

X

Current Stakeholder Perceptions

X

Service delivery challenges - 1

Service delivery issues

– The Eastern region has suffered from a history of neglect, therefore bearing the brunt of geographic disparities from a service delivery point of view

– There is an over-supply of planning activity not matched by implementation capacity

– Study of budgets do not indicate an immediate funding problem although a case can be made for historical backlogs

Service delivery challenges - 2

In the Eastern Cape, like other under-developed regions, there is a high dependency on Government for socio-economic development. Government cannot fail this need. In the absence of widely-available alternatives for socio-economic development, Government remains the major provider of-

– infrastructure development

– services

– social security, and

– opportunities that stimulate job creation

Service delivery challenges - 3

Job creation and increased social security are just not happening visibly fast enough

There are plans and resources for fast-tracking service delivery in under-serviced areas (such as the Eastern region), however implementation of these plans remain frustratingly slow

Inadequate focus on results and too much time spent on process

Primary concerns - 1

Our assessment is that a change in behavioral patterns is lacking and this change is critical for turn-around of the departments

This assessment established that:-

– Managers are, continuously, not taking responsibility and they are not displaying a strong sense of accountability - according to managers the problem always is ‘out there” and blame for inertia, under-servicing, poor leadership and management are deferred to systems, inadequacies, interference by unions and stakeholders and historic challenges

– In spite of the fact that departments continuously receive audit disclaimers, no action is taken against any manager and the problems are not rectified

– Personal responsibility is consistently fudged

Primary concerns - 2

Unions continue to have undue influence over managers and their decisions, especially in Education, but we have to recognize that a fear factor is prevalent in some of these decisions, although evidence is limited to an incident in Health

Very high levels of corruption are reported, but with limited follow through action

The culture of ill-discipline and acceptance of the poor work ethic, manifests in such behavior as absenteeism and demanding overtime for work that should be done in office hours, accentuated by lack of vigorous management responses

Primary concerns - 3

A culture of entitlement prevails as epitomized by claims to overtime, performance awards and backlog HR payments

Managers have a significant reliance on outsiders for work that is normal businesses - donors and consultants are seen as only solutions

The authority and power of the Tender Board far outweighs its level of accountability

Approach

Comprehensive, integrated

– Addresses both actual delivery and the conditions that make delivery possible

Mixture of department specific and province wide

– There are transversal challenges that have to be addressed to make departmental delivery successful, for example financial management arrangements in the Province

Mix of short and long term

– Some solutions are immediately implementable, but will only realise benefits in coming financial years

– Some solutions are immediately implementable and will realise immediate benefits

Concept

Education

Health

Social Development

Roads and Public Works

Back office support

Internal controls

HR

Management

Leadership &

management

Ethics & anti-corruption

Service delivery

PROBLEM ANALYSIS

TURNAROUND PLANS AND TRANSVERSAL PROJECTS

OUTPUTS OUTCOMES

Improved service

delivery and governance

Turnaround Strategy: transversal projects and departmental turnaround plans

Strengthen leadership

and management

Improve HR

Management

Improve Internal controls

and accountability

Strengthen Back

Office Support

Program

Management

Departmental

Turnaround

Strategies

Rapid and visible

Service delivery

Ethics and anti-

Corruption

Strategy

Measuring progress

Currently progress is measured through the achievement of activities.

This approach has certain limitations as success should be measured in terms of outputs and outcomes.

The monitoring system is currently being revised to reflect this.

Plans are being refined and updated.

While noting the above, the next slides represent progress with regard to implementation of activities.

Turnaround Strategy

Strengthen leadership

and management

Improve HR

Management

Improve Internal controls

and accountability

Program

Management

Departmental

Turnaround

Strategies

Rapid and visible

Service delivery

Ethics and anti-

Corruption

Strategy

Strengthen Back

Office Support

Strengthen back office support: detail

Planned Achieved

Decentralize financial delegations back to departments as from 1 May 2003.

Financial delegations have been provided as of 1 May 2003.

Delegate procurement powers up to R5m

Procurement delegations have been provided to the IMT and departments with effect from 1 May 2003 and are being used for IMT work.

Source in back office support focusing on: financial management, supply chain management, integrated human resource management, legal and general administration.

Tenders awarded for Phase 1. Service providers on site attending to HR backlogs and developing detailed service level agreement for Phase 2. Phase 2 to start end of September 2003.

Electronic Document Management Solution (EDMS)

Document management assessment completed.

Piloting approach with the Department of Education. Tender process complete through assistance of SITA.

SITA is now pursuing the feasibility of rolling-out to other IMT departments.

IT Assessment Assessment finalised, final report expected September 2003.

Shared Administration Centre Progress will only be achieved once phase 2 of BOS contract underway.

Planned Achieved

Strengthen back office support: detail

Turnaround Strategy

Strengthen leadership

and management

Improve HR

Management

Strengthen Back

Office Support

Program

Management

Departmental

Turnaround

Strategies

Ethics and anti-

Corruption

Strategy

Improve internal

Controls

Rapid and visible

Service delivery

Improve internal controls and accountability: detail

Planned Achieved

Decentralize Internal Audit function in four IMT departments.

Tender awarded and work has begun.

Departments to have own Audit Committees.

Guidelines developed and departments busy establishing audit committees.

Turnaround Strategy

Strengthen leadership

and management

Strengthen Back

Office Support

Program

Management

Departmental

Turnaround

Strategies

Ethics and anti-

Corruption

Strategy

Rapid and visible

Service delivery

Improve HR

Management

Improve Internal Controls

Improve HR Management: detail

Planned Achieved

Implementation of resolution 7 proposals

On track for completion by 12 September 2003, risk that Education may not complete process on time.

Filling of vacancies Process of filling critical vacancies ongoing. Numerous adverts placed in the press.

Strategy for attracting scarce skills, incentives for professionals in rural areas, internships and strategy for training people in scarce skills.

Multi-disciplinary task team formed, workshops held and report with recommendations being compiled.

Integrated HRM strategy Developed and published by OTP.

Support services companies Report completed, being discussed within Province

Implement early retirement of employees

Implementation linked to Resolution 7 and decision on Support Services Company

Turnaround Strategy

Improve HR

Management

Strengthen Back

Office Support

Program

Management

Departmental

Turnaround

Strategies

Ethics and anti-

Corruption

Strategy

Rapid and visible

Service delivery

Strengthen leadership

and management

Improve Internal Controls

Strengthen leadership and management: detail

Planned Achieved

Increase management to at least 1% of social departments.

Appointment process ongoing, however strategy still needs to be developed.

Competency profiling of all senior managers.

Competency profile complete. Final consolidated report being prepared.

Workplace based management development program.

Will be developed once final competency report complete.

Performance agreements for senior managers.

Process of establishing revised performance agreements unsatisfactory.

Initiate disciplinary processes for managers based on existing forensic and Auditor General reports.

Disciplinary proceedings initiated.

Filling of critical management vacancies

Process ongoing

Turnaround Strategy

Improve HR

Management

Strengthen Back

Office Support

Program

Management

Departmental

Turnaround

Strategies

Strengthen Management

And leadership

Rapid and visible

Service delivery

Ethics and anti-

Corruption Strategy

Improve Internal Controls

Ethics and anti-corruption: detail

Planned Achieved

6 forensic audits Ongoing, first substantive reports have been received and are being acted upon.

Disciplinary Cases Task Team (DCTT)

Panel set up and team dealing with cases.

1098 cases on database, 467 active cases being attended to, 172 hearings finalised.

Sustainable framework to manage discipline being established

Joint Anti Corruption Task Team (JACTT)

JACTT dealing with 374 cases, 144 arrests made, 18 convictions and sentencing, 3 convictions not yet sentenced, 113 attending trial.

Education and Awareness programs

Three programmes aimed at senior managers, front line staff and other employees have been developed and aligned with Batho Pele components. Roll out: October 2003.

Hotline Operational with many cases being received. Cases referred to DCTT or JACTT as required.

Turnaround Strategy

Improve HR

Management

Strengthen Back

Office Support

Program

Management

Departmental

Turnaround

Strategies

Strengthen Management

And leadership

Ethics and anti-

Corruption Strategy

Rapid and visible

Service delivery Improve Internal Controls

Rapid and visible service delivery

Key infrastructure projects (roads, buildings) have been identified

Have engaged the Coega Development Cooperation to assist with project implementation and monitoring of existing projects.

Turnaround Strategy

Departmental turn-

around strategies

Improve HR

Management

Strengthen Back

Office Support

Program

Management

Rapid and Visible

Service Delivery

Strengthen Management

And leadership

Ethics and anti-

Corruption Strategy

Departmental

Turnaround Strategies

Improve Internal Controls

EducationHealthSocial DevelopmentRoads and Public Works

For this presentation, there are too many projects to report on under each turnaround plan, therefore broad based progress in terms of activities will be given.

Education turnaround

Based on 12 projects

– Human resourcing and personnel expenditure

– district development

– performance management

– management (their performance) and leadership

– financial services

– human resource services

– procurement and logistical services

– discipline

– physical facilities

– learning support material

– matriculation readiness

– school nutrition programme

Was necessary to change the management structure by establishing a project management structure and the infusion of managers deployed from national departments, as well as the appointment of an interim head of department

Health turnaround

Three key focus areas

Improve the management of health services:

– Restructured head office, management reforms to hospitals and clinics, performance management, internal controls, paypoint management, asset management, Nelson Mandela Academic Hospital fully functional and opened.

Improve targeted front line health services in Eastern Region:

– Services of community health centres improved, TB, HIV/Aids/Mother and child health improved in 11 LSAs, increased supervision in use of transport, all facilities to have laboratory services

Improve back office support to health institutions:

– Outsource management of operational maintenance, outsource non-core services (linked to support services companies proposal), continue with existing PPPs, improve allocation and use of transport, use existing IT systems for health records and information, implement uniform patient fee system, implement delta 9 at all complexes, regional hospitals and major district hospitals

Roads and Public Works turnaround Roads

– Position paper on location of roads function being discussed.

– Commercialisation/corporatisation strategy for in-house construction/maintenance teams have been developed and may soon be implemented

– Roll out of area wide maintenance contracts

Buildings

– Appointment of strategic property partner underway

– Development of solution for building maintenance and for effective asset management

– High profile building maintenance

Management and support services

– Develop and implement communications strategy

– Clarification of department’s mandate, the development of a new service delivery model, complemented by service level agreements, and development of new HR plan and organisational structure (organisational development and service level agreements)

– Programme management office

Roads and Public Works turnaround: summary

Limited progress achieved due to budget being available for Roads and Public Works’ turnaround plan as well as limited integration of turnaround plan within broader departmental activities.

Review current leadership and management cadre

Rid the Department of corrupt officials

Implement initiatives to remove service delivery bottlenecks, particularly to speed up CGS registration and the disbursement of welfare grants.

Celebrate short-term achievements with targeted communications.

The long-term transformation will take place on three levels:

– A reconfiguration of how the Department interacts with the public, which we call the front office. New partnership model with Home Affairs and Department of Labour to provide a one stop shop solutions

– Helping the Department to make the shift from a welfare to a developmental paradigm

– A redesign of the Department’s back office. Key would be setting a processing center in the department and establishing a contract management center outside the department but managed by the department

Social Development turnaround

Turnaround plans: common challenges

Implementation has begun and progress in certain areas is being achieved.

However, a number of issues are cause for concern as illustrated below.

Improved governance and service delivery

JMT

Current situation Future situation

Budget?Buy-in?Sustainability?

Sustainability

Sustainability is emerging as a concern and work has begun on the post IMT sustainability strategy of the IMT in terms of monitoring and evaluation mechanisms and effective management structures.

The overall thrust shifts from “imposition” and change (phases 1 to 3) to building motivation, capacity, morale and confidence within the departments.

This will see the IMT/JMTs being integrated into turnaround units in the four departments and the OTP.

Sustainability ctd

0

20

40

60

80

100

120

March July October December March

Department JMT/IMT

IMT/JMT activity

Departmental activity

Emerging lessons/themes

Turnaround is not a quick fix, some solutions only realise full impact over time.

Getting basics right is essential for smooth functioning of higher level activities. A breakdown of basic administrative practices (such as recording leave) in many instances sabotage an output (such as paying out a pension, which cannot be done without a complete leave record).

Setting a foundation for future delivery

– A lot of effort is being put into support systems that make actual delivery of services possible. Stable but flexible support systems can accommodate policy changes, but if the foundations are weak, departments battle to deliver and accommodate policy shifts.

Exposing both national and provincial departments to various new ways of delivery (e.g. partnerships, alternative service delivery, benefits of using IT)

– The IMT is providing a rich experience in public administration and innovation, drawing on examples of other departments and provinces and tailoring solutions. These experiences can also enrich processes in other departments and provinces

Emerging lessons/themes

To complete the delivery chain local government needs to be included in turn around strategies, but currently the legislative framework hampers this integration.

The cooperative model currently applied in the Eastern Cape has limitations, and alternative models need to be available for similar interventions. This requires that the Constitutional-type interventions be made possible in flexible legislation.

Thank you