“Cascading the IDP into Performance Indicators: eThekwini Case Study”

OVERVIEW

Ethekwini Municipality &Legislative Overview

IDP

Why is PME so important?

Organisational and Individual Performance

Challenges

Addressing Challenges

Key issues underpinning the Success of PME

THE OVERVIEW

Drought, climate change

Loadshedding

Economic growth rate – 1.5%

Annual budget – R45 billion.

Number of councillors, 210

Number of wards, 110

Number of staff, 27000

3.5 Million Population

With inclusion of Vulamehlo now 2555km².

Population growth rate declined

2,34% from 1996 to 2001.

1,08 % from 2001 to 2011

Projected to rise to ±4 mil by 2020

68% Rural

Legacy of apartheid.

Need to focus on poor & vulnerable

Radical Economic Transformation and RASET.

Inequality, poverty and unemployment.

200 000 migrants

Health challenges

Unemployment – 27% - 500 000 people unemployed

This vision will be achieved by growing it's economy and

meeting people's needs so that all citizens enjoy a high

quality of life with equal opportunities, in a city that they

are truly proud of.

Vision

3

Our IDPCity’s vision

Africa’s most caring and

liveable City

Strategic Priority Areas

Create a Safe City

Promoting an Accessible City

Environmental Sustainability

Creating Sustainable Livelihoods

A Socially Cohesive City

Financially Sustainable

Environmental Sustainability

A Socially Cohesive City

Financially Sustainable

Creating Sustainable Livelihoods

Accessible City

Creating a safer City

•Ecosystems and

natural resources;

•Build a green

economy

•Sustainable human

settlement

•Climate change;

•Alignment

environmental plans

and Municipality’s

strategic direction.

•Diversify our

revenue base;

•Sustainable

budgeting;

•Sound financial

management and

reporting;

•Value for money

expenditure.

•Responsive local

government;

•Respect and ubuntu;

•Empower and

develop skills

•Development of

vulnerable groups;

•Develop a culture of

helping citizens;

•Municipal learning

knowledge

management;

•Transparent and

accountable

•Infrastructure

•New livelihood

choices;

•Develop skills

•Promote SMME

•Secure resources

•BR&E

•Develop key

economic sectors;

•Develop priority

nodes and corridors.

•Development of

community forums;

•Minimise risk

•Create a healthier

city;

•Mitigate against

disasters;

•Alignment Health,

Safety Programs;

•Safety of citizens.

•use of public transport;

•access to basic services;

•Increase density

•access to social facilities;

•Align with SDF for the city;

•communication networks;

•Increase economic opportunities.

21

Simplified IDP Process

Where do we want to be

What do we have to Do to achieve the vision

How do we address each Priority

How is going to be achieved andhow much is it going to cost

Strategic Principles

Vision

Strategic Priorities

8 Point Plan / SDBIP and Budgets

20

The IDP 8 Point plan

Creating a Quality Living Environment

IDP

8 P

OIN

T P

LAN

Financially Accountable and Sustainable City

Good Governance and Responsive Local Government

A Vibrant and Creative City – Foundation for Sustainability and Social Cohesion

Creating a Platform for Growth, Empowerment and Skills Development

Fostering a Socially Equitable Environment

Develop and Sustain our Spatial, Natural and Built Environment

Developing a Prosperous, Diverse Economy and Employment Creation

The purpose of the eThekwini Municipality is to facilitate and to ensure provision of infrastructure, services & support,

thereby creating an enabling environment for all citizens to use their full potential and access opportunities allowing them to …

… contribute towards a vibrant and sustainable economy with full employment, and thus create a better quality of life.

The Legislative Framework in Context

The Constitution of the Republic of South Africa (Act 108 of 1996);

White Paper on Transforming Public Service Delivery (1997);

White Paper on Local Government, 9 March 1998;

Local Government : Municipal Systems Act 32 of 2000;

The Municipal Finance Management Act 56 of 2003;Municipal Planning and Performance Monitoring and Evaluation Regulations, 2001;Municipal Performance Regulations for Municipal Managers and Managers directly accountable to Municipal Managers, 2006; and Local Government : Municipal Structures Act of 1998Policy Framework for Government Wide Monitoring and Evaluation System

The IDP As A Strategic Driver

• Within the Long Term Planning framework, the IDP drives the way we PRIORITISE DEVELOPMENT, BUDGET and MEASURE OUR PERFORMANCE

CITY’S PERFORMANCE MONITORING SYSTEM

PERFORMANCE MANAGEMENT SYSTEM

CITY’S FINANCIAL ALLOCATION TO STRATEGY

CITY’SSTRATEGY

CITY’S ANNUAL DELIVERY PLAN

Done Once in Five Years Reviewed Annually Done annually with a three

year projection

Done annually to manage delivery

CITY’SREPORT

Done annually to publicly report on progress

ANNUAL REPORTSDBIPBUDGETIDP

How the IDP drives the PME process

(i) the key performance indicators and performance targets determined in terms of section 41.

Municipal Systems Act, 2000, Section 26:- states that an integrated development plan must reflect –

IDP Organisational Scorecard

SDBIP (BUDGET)

Business Plans Project Plans

CITY MANAGER

DEPUTY CITY

MANAGERHEADS

DEPUTY HEADS/ SENIOR

MANAGERS

MANAGERSSUPERVIS

ORSOTHER STAFF

ORGANISATIONAL PERFORMANCE

INDIVIDUAL PERFORMANCE

Why PME is so importantMonitoring, evaluation and reviewing constitutes a process to assess performance of the municipality. Monitoring and evaluation are crucial to:

• Ensure the implementation of plans and projects;

• Measure the development impact of plans/projects; and

• Ensure the efficient utilisation of resources.

Key Performance Indicators (KPI’s) and performance targets are used as a yard stick to measure performance and to rectify shortcomings.

Monitoring is a continuous activity to measure KPI’s and performance targets. It provides project information to management.

Monitoring includes the systematic collecting of information to enable management to evaluate whether project implementation is proceeding as it should.

• https://www.google.co.za/search?q=planning+and+execution+in+the+workplace&biw=1366&bih=667&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiE7vDbr6bJAhUHPBQKHdyvCHAQ_AUIBigB#imgrc=RCnVePYVBmhgLM%3A

National Treasury (2007)

IDP to Scorecard to SDBIP

IDP

• Strategic Goals of the Organisation

• Easy to read and understand

• KPAs, 8 Point Plan, SFA

SDBIP

• Measurable document

• Operational Programmes and Projects

• Aligned to SFAs

• SMART

• Monitored, evaluated and managed

Individual Performance

• Cascaded from SDBIP

• Linked to SFA

• Monitored, Evaluated and Managed

Why Organisational Performance Monitoring To ensure that the Municipality pursues action plans that lead to the achievement

of overall goals and objective;

To make adjustments to achieve those goals more effectively and efficiently;

To provide management and the main stakeholders of ongoing development interventions with indications of the extent of progress and achievement of objectives;

To monitor progress in relation to the use of allocated funds;

This is a continuing function that uses systematic collection of data on specified indicators.

KEY PERFORMANCE INDICATORS

Creating KPI’s Must be strategic – consider risks, IDP and City strategies.

Must be within owner’s control.

Must have evidence available to support achievement.

Must be linked to the SDBIP/ budget and aligned to the business plan.

Must have been sufficient planning.

Targets must comply with the SMART principle.

Indicators must comply with the CREAM criteria.

SMART and CREAM Principle

• Specific -direct not vague• Measurable -measures what we are trying to achieve• Attainable -Practical (do you have resources in place )• Realistic -Well defined indicators not ambiguous• Time bound - Expected time of Delivery

• Clear - Precise and unambiguous• Relevant -Appropriate to the subject at hand• Economic -Available at a reasonable cost• Adequate -Provide a sufficient basis to assess performance• Monitorable - Amenable to independent validation

• Reliable: the indicator should be accurate enough for its intended use and respond to changes in

• the level of performance.

• (b) Well-defined: the indicator needs to have a clear, unambiguous definition so that data will be

• collected consistently, and be easy to understand and use.

• (c) Verifiable: it must be possible to validate the processes and systems that produce the indicator.

• (d) Cost-effective: the usefulness of the indicator must justify the cost of collecting the data.

• (e) Appropriate: the indicator must avoid unintended consequences and encourage service delivery

• improvements, and not give managers incentives to carry out activities simply to meet a particular

• target.

• (f) Relevant: the indicator must relate logically and directly to an aspect of the institution's mandate,

• and the realisation of strategic goals and objectives.

A good performance indicator should be:

How are targets set and reviewed?

Targets are based on, access modeling, previous years actual status, research information or best practices.

Targets are reviewed every 6 months.

5 Year targets are set before the start of the 5 year cycle and are also reviewed annually.

Reasons for non-performance / Measures taken to improve performance

Actions (measures) to improve performance – so by year end, target is met

Target not met - reasons for non-performance must be indicated – management action

The completion of the Measures to improve column is required by the Systems Act legislation.

REPORTING

Report on timeReasons for variance must be detailed.Measures to improve must be sufficient and must

incorporate the implementation date as the evidence to support this is requested by AG.

Evidence must be provided Submission to the AG & Internal audit for audit purposes.

Reporting Tools(Source :Cetera Financial Group)

EVIDENCE

Evidence must be sufficient to substantiate status reported e.g. 10 completion certificates for 10 houses built

Evidence must be provided for every quarter.Evidence must be relevant e.g. ten houses built = completion

certificates & not invoicesEvidence must be applicable to the time period e.g. completion

certificates must be issued in the reporting quarterEvidence must be complete e.g. completion certificate for each

house completedEvidence must be the same as indicated on the project plan

IPM

By 2030 eThekwini will be Africa’s most caring and liveable city

Alignment of Processes (OPMS to IPMS)

IDP

BUDGET

SDBIP

IPP

OPM

Individual Performance Management for Executives

ETHEKWINI MUNICIPALITY

Content of IPPs Alignment of the SDBIP with the Non-S54&56’s ’ IPPs

Key Performance Area (KPA)– IDP 8 Point Plan

– Strategic Focus Area (SFAs)

– Key Performance Indicators (KPIs)

o SDBIP KPI’s

oCompulsory KPI’s

oAdditional KPI’s

Individual Performance Management System in EThekwini Municipality

PME - IPM System

• Senior Management on Executive Pay roll• Task 19 and above

HR - IPM System

• Middle Management and staff– Task 18 and below

Ind

ivid

ual

Pe

rfo

rman

ce M

anag

em

en

t Fr

amew

ork

Fo

r Ex

ecu

tive

s-P

ME MSA

Regulations For S57

– Non-section 57 (54A & 56) Executives :

• Heads of units

• Deputy Heads (D/H’s)

• Senior Managers (SM’s)

• Project Executives (PE’s)

• Corporate Executives (CE’s)

– Section 57 (54A & 56) Executives :

• City Manager (CM) or (MM)

• Deputy City Managers (DCM’s)

PM

Po

licy

For

Staf

f-H

R

– Employees on PMS :

• Middle Management

• First Line Management

• Permanent Staff

MSA: Summary of S57

Employment contract for MMs and Managers Directly Accountable to MMs

• Performance agreement (PA),

o Individual Performance Plan

oPersonal Development Plan

IPM Framework IPM Framework for Senior Management of EThekwini

Municipality on Executive Payroll including MMs and Managers Directly Accountable to MMs• Incorporates the MSA, MSA Regulations, MFMA and Council

Resolutions

• Details an effective and efficient annual implementation process including

– Signing of PA’s

– Mid-term Reviews

– Annual assessments

Structured Reviews• 1st & 3rd quarter

– Verbal

• 2nd & 4th quarter:

– Recorded;

• Status report on performance

• Rating performance

CHALLENGES

Process timelines not co-ordinated (IDP & Budget)Deadline not adhered toFrequent changes requested by stakeholders;Several and often conflicting/ duplicated data requests from

spheres of government;User understanding of the business processes;Inappropriate information capturedInterpretation of legislationInadequate / lack of portfolio of evidence

LESSONS LEARNT

Keep things simpleTry to keep requirements to a minimumEvidence is criticalPlan owner approval is vitalConsultation and unit level discussions must take placeReview of content (reasons/ measures to improve for

appropriateness/ relevance)Perform comparisons to previous reporting periodsAttempt to understand operating environmentsImportance of communication

Key Issues Underpinning the Success of PME

Top Management and council to drive the system;

The Municipality’s Integrated Development Plan to be communicated Municipal-wide;

A need for clarity regarding the strategy of the Municipality

Channels of communication needs to be in place;

A clear understanding and appreciation of the value of having a performance measurement system;The development of employees identified through the Performance Monitoring and Evaluation process;

There should be a change management strategy in place;

The framework for achieving goals should also be SMART;

Management need to be aware of employees’ progress;

Review team goals at least once a month; and

Performance Monitoring and Evaluation should be considered as an on going process.

PERFORMANCE OF THE CITY

Management

Councillors

Citizens

eThekwini =

Trigger Questions• How can legislation be enhanced to support

Performance Monitoring?

• What can be done to ensure all Municipal employees understand their responsibilities in terms of the IDP, and deliver on it?

• How do we get Political by-in to ensure a successful Performance Monitoring System?