MOSSEL BAY MUNICIPALITY PMS BEST PRACTICE Leadershi p setting the tone It always seems impossible until it is don e PRESENTER : MR E W JANTJIES DIRECTOR CORPORATE SERVICES If its not documented its not done
Jan 04, 2016
MOSSEL BAY MUNICIPALITY
PMS BEST PRACTICE
Leadership setting the tone
It always
seems
impossible
until it i
s
done
PRESENTER:
MR E W JANTJIESDIRECTOR CORPORATE SERVICES
If its not documented its not
done
GEOGRAPHICAL OVERVIEW OF MOSSEL BAY
Mossel Bay Municipality is situated within the Eden Municipal District which also includes the Local Municipalities of Bitou (Plettenberg Bay), George, Hessequa (Riversdale), Kannaland
(Ladismith) and Oudtshoorn. It is situates on the N2 approximately halfway between the coastal cities of Cape Town
and Port ElizabethThe Municipal Area cover 2007 square km
MAIN ECONOMIC ACTIVITIES IN MOSSEL BAY
o Tourismo Agriculture (Aloes, Cattle, Citrus, Dairy,
Ostriches, Sheep, Timber, Vegetables and Wine)
o Fishingo Light Industryo Petrochemicals
MUNICIPAL SUCCESSES
MOSSEL BAY
NR1
TOWN FOR BUSINESS
LED MATURITYTHIRD IN
WESTERN CAPE
CLEANEST TOWN&
TOWN OF THE YEAR
UNQUALIFIED AUDITS FOR THE
PAST FOUR YEARS IN A ROW
CLEAN AUDIT 2011/2012BIGGEST
DESALINATION PLANT
BLUE DROP & GREEN DROP
STATUS
BLUE FLAG STATUS
3 BEACHES
BEST PRACTICES: HIV/ AIDS, GENDER,
DISABILITY
PMS IMPLEMENTATION IN MOSSEL BAY MUNICIPALITY
Adoption of Performance Management Framework by Council- 06 July 2009
Workshop with
Stakeholders: Trade Unions,
Ward Committees
and Audit Committees
Workshop with Lower level staff
Workshop with Head of Departments
Workshop with Mayco &
Executive Management
Draft Performance Management Framework
Appointment of External
Service Provider
Provincial Government’s
Capacity Building
Programmes
PMS Poster
campaign
informs staff
members were
conducted
during May
2010.
ORGANIGRAM: LOCATION OF FUNCTION
MAYCO Municipal Manager
Director :
Corporate
Services
Sub Directorate Head: Change Management and Policy Development
Admin Officer: PMS
Clerk
Director:
Technical Services
Director:
Development
and
Planning
Director:
Community Services
Director:
Financial
Services
Budget Office
SDBIP Officer
Assistant
Accountant
Internal Auditors
IDPPMS
EMPLOYMENT EQUITY
LEGISLATIVE OVERVIEW
o SA legislative and regularity framework to define PMSo Constitution of the RSA, 1996 – Section 155o White paper on Local Government (1998)o Municipal Systems Act, 2000 – Chapter 6 (Sec 38 -46)o Performance managements system to be implemented by
each municipalityo Culture of performance within municipalityo Efficiency, economically, effectively and accountabilityo Regular monitoring and evaluationo Addresses the key components of the PMSo Municipal Finance Management Act 2003
LEGISLATIVE OVERVIEW
o Municipal Planning and Performance Management regulations (796, Aug 2001)
o Performance Management Regulations for MM’s & s57 Appointees (R805, Aug 2006)
o Framework for managing programme performance information (2007)
o White paper on transforming Public service delivery (Batho Pele)
o National and Provincial Regulations and MFMA Circulars
o Annual report guideline, SDBIP and Oversight reportNotice 464: Directive: Performance information
public audit act (2007)Auditor-General to audit PMS
GOVERNANCE AND AUDITING
Policy Framework Framework for managing performance processes
Systems to measure performance
Reporting structure and delegations
Record-keeping Changes to PDO’s / KPI’s
Supporting documentation
GOVERNANCE AND AUDITING
Performance Calendar
Performance calendar to explain when what will need to
be done
Reporting on specific day of month
Reviews by Council and management
Municipal website
Performance Reporting
Risks related to objectives prioritised and mitigated
Monitor
Evaluate
Review
Corrective actions
Internal Audit
Audit plan to include the quarterly audits of
performance management.
Re-evaluate the SDBIP
Pre- Audit done
Assist in improving external audit outcome
Combined Assurance Approach:
- minimise duplication of audit efforts
GOVERNANCE AND AUDITING
Should assess:
Risks and control measures regarding
performance information
Risks informing audit plans
Legal compliance
GOVERNANCE AND AUDITING
Should assess:
Structure and delegations
Alignment – are we achieving our objectives
Controls to document evidence and compile
performance reports
Functionality of the performance
management system
Accuracy, completeness and validity of
performance information
Performance evidence
GOVERNANCE AND AUDITING
Performance Audit Committee
According to the regulations, the performance
audit committee must:
review the quarterly reports submitted to it by
the internal audit unit
review the municipality's performance
management system and make
recommendations in this regard to the council
of that municipality
assess whether the performance indicators
are sufficient
GOVERNANCE AND AUDITING
Performance Audit Committee
According to the regulations, the performance
audit committee must:
at least twice during a financial year submit
an report to the municipal council
Observer during evaluations of s57 –
appointees
It is further proposed that the audit
committee be tasked with assessing the
reliability of information reported.
GOVERNANCE AND AUDITING
PERFORMANCE MANAGEMENT DEFINED
“ Performance Management is about creating relationships and ensuring
effective communication between the employer and the employee.”
CHANGE
PROCESS & SYSTEM
IMPROVEMENT
TEAMWORK
OBJECTIVE
“ Performance Management is
about effective
utilisation of available
resources for maximum impact on
service delivery”
“ Performance Management is an ongoing process
throughout the year. It’s not just about
performance appraisal. In fact,
performance appraisal is only a small part of
it. Performance management is about preventing, detecting
and solving under-performance
problems”
BASIC REQUIREMENTS - PMS FRAMEWORK
Must be applicable to all levels in the municipality
Corporate performance indicators aligned with IDP and budget and SDBIP
Performance Contracts, evaluation and measurement for s57 appointments and other managers
Performance management and evaluation at lower level
Create a culture of performance within the municipality
Including incentives to assist in creating a culture of performance
Measures to address weak performance
TRANSFORMING PMS IN MUNICIPALITIES
PMS NO’S X PMS YES’s
Stay old school Modernise your thinking
Just skip it Identify the benefits
Appraise Performance
Manage Performance
Tell Employees Work with employees and treat all equally
Don’t bother with goals
Plan precisely with clear goals
Rely on memories Document Performance
Ignore motivation Set performance incentives
Stay aloof Be approachable all year
TRANSFORMING PMS IN MUNICIPALITIES
PMS NO’S X PMS YES’s
Focus on the forms Focus on communication
Rely on technology Make it face to face
Wing the appraisal Prepare the appraisal
Ignore the Why’s Identify causes and develop employees
Praise grudgingly Recognise success
Evaluate attitude Focus on behaviour and results
Discipline without warning
Use progressive discipline
MBM - PMS FRAMEWORKThe performance policy framework (ADOPTED by MBM Council in 2009) provides guidance in terms of the municipality’s cycle and processes of performance planning, monitoring, measuring, reviewing, reporting, auditing and quality control.
PMS GOLDEN THREAD OF ACCOUNTABILITY
PMS OBJECTIVES Facilitates strategy (IDP) deployment throughout the
municipality and align the organization in executing its strategic objectives - Vision, mission and IDP into clear measurable outcomes
Tool for assessing, managing, and improving the overall health and success of business processes and systems.
Create an organisational performance culture (culture of best practices);
Provide early warning signals;
Promote accountability.
Develop open and constructive relationship between customers, leadership and employees;
PMS OBJECTIVES Encourage reward for good performance;
Manage and improve poor performance;
Link performance to skills development and career planning, therefore encourage learning and growth; and
Replace existing assessment models with a consistent approach to performance measurement and management.
Sustainable improvements in Service Delivery
Comply with legislative framework
PMS PRINCIPLES
Simplicity
We develop our community by developing our staff
Align with municipal strategy and promote good performance
We appoint good people and therefore expect good performance
Each staff member takes ownership of own career
PMS PRINCIPLES
Implementable
Transparency and accountable
Effective and Efficient
Public participation
Integration with municipal processes
Objectivity
Reliability
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that: Inconsistency between Integrated
Development Plan, Service Delivery and Budget Implementation Plan and Annual Performance Report
Pre- determined objectives and indicators were not measurable
No processes and systems were in place to monitor the achievement of goals and targets.
No corrective actions and measure were provided In the cases where indicators were deleted, the reason for such amendments was the mere fact that the indicators were not measurable and there was no measuring tool or instrument to determine the results
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
KPI’s are were not relevant and measurable Indicators/measures not verifiable (not possible to validate the
process and system that produce the indicator) KPI’s reported on in all PM reports were not the same Lack of monitoring and review of the recording of actual
achievements by senior management Lack of standard operating procedures of the recording of actual
achievement Insufficient POE kept No quarterly reporting to council on Top Layer SDBIP No monthly reporting to Portfolio Committees on Departmental
SDBIP Audits of actual performance not taking place, especially Top Layer Performance audit committees not established and meeting to
analyse performance reports and audits of performance by internal audit
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
Indicators and targets were not suitably developed during the strategic planning process
IDP objectives not achievable, cannot be aligned with budgets and SDBIP (iMAP)
KPI’s on SDBIP that were not budgeted for SDBIP (KPI’s and targets) were not adjusted when
budgets were adjusted Planned development priorities/objectives were
changed but not approved and/or adequately explained in the annual performance report
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
Sufficient reasons for non-performance and corrective measures were not indicated on the system and in PR’s and annual reports
Measures taken to improve performance not supported by adequate and reliable corroborating evidence
The annual performance report was not on time for audit purposes
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
Sufficient appropriate audit evidence/relevant source documentation could not be provided to measure the validity and accuracy of KPIs
Actual results reported in the annual performance report per KPI are inaccurate
Organisational
PerformanceKPI’s linked to budget
KPI’s linked to Nat KPA’s
KPI’s linked to mun KPI’s
KPI’s per department
Baseline per KPI
Targets per quarter / month
Types of indicators
Responsibility
Measurement criteria
Reviews and reporting
Annual Report
Performance improvement
PERFORMANCE MODULE LINKAGES
CURRENT STATUS :SDBIP & PERFORMANCE
DEVELOPMENT
SDBIP & PERFORMANCE DEVELOPMET
Ownership: Municipal Manager / Performance Manager / Executive Mayor
AG AuditAnnual ReviewAnnual Report
Ski
lls D
evelo
pm
en
t
Work
Pla
ce S
kills
Pla
n
BUDGET
IDP / MY-Mun SC
S57 Performance Contracts R805
Staff Performance
Top Level SDBIP
Municipal Scorecard
Departmental SDBIP
Implement of top level & detail performance of
dept’s
Council
Dept A Dept B
MM Dir A Dir B
Monitoring / evaluation
Top Level SDBIP Quarterly
Reports
S57 Performance Reviews
Staff Performance Reviews
Audit
Mgmnt
Portfolio Committe
e
Council
Exco
Evaluation
CommitteeManageme
nt Team
Dept ‘s Activities SDBIP Monthly Reports
PM Policy (Framework)
Managers ManagersCouncilors
Serv.
Provider s
SP Perf. Quarterly ReportsSCM
Mgmnt
Council
LGTAS
BUDGET Alignment
Budget should visibly address strategic objectives.
Budget should address prioritised projects.
INTEGRATING FINANCIAL AND NON- FINANCIAL information
IDP Strategic Objectives
Strategic objectives are long-term, continuous strategic areas that help you connect the municipal mission to its vision. Strategic objectives encompass four areas: financial, customer, operational, and people.
What are the key activities that you need to perform in order to achieve your vision / Mun KPA’s?
IDP
IDP Prioritised Capital Projects
SDBIPBUDGET
CAPITAL BUDGETPrioritised Capital
Projects
For 2010 /11
OPERATIONAL BUDGETRevenue
&
Operational
Expenditure
For 2010 /11
Top Layer SDBIPStrategic Objectives
National Requirements
Financial SDBIPRevenue
Capex
Opex
Departmental SDBIPKPI’s to implement Top
Layer SDBIP
Departmental Activities
Capital Projects Progress
Vision
Goals / objectives
Strategies / programmes / projects
Implementation and monitoring instruments
Nat Outcomes
Prov. Strat.
Nat KPA’s
iMAP
INTEGRATING FINANCIAL AND NON- FINANCIAL INFORMATION
Reporting on:
• Financial Information
• Non-financial information
• Alignment of IDP with budget
and budget with SDBIP
• Alignment with provincial and
national strategic interventions
TOP LAYER SDBIP
Municipal Website
IDP SC
Performance indicators
Submit to Mayor (14 days after budget approval
Multi-Year Municipal Scorecard
Top Layer SDBIP
Municipal Manager
Budget
MTAS
Capital Expenditure
Expenditure per Ward
Monthly Cashflow
Revenue by source
INPUTKPA’s /
Strategic Objectives
Prioritised projects Nat. Outcomes
OWNERSHIP
Directors
Strategic ManagerDirectors
CFO
Directors
CFO
Directors
CFO
Directors
CFO
Risk Register High / S
evere
Risk
s
Mayor review and approve (28 days after budget approval
Quarter 1 Review
Mid-year Review (Include s72
report)
Year-end Review
Quarter 3 Review
Submitted to Council to Review
Actual Performance
Financial Performance
Monthly
Quarterly
Municipal Manager
Dir’s / SDBIP Officer
OWNERSHIP
Municipal Manager
Dir’s / SDBIP Officer
Municipal Manager
Dir’s / SDBIP Officer
Municipal Manager
Dir’s / SDBIP OfficerDirector
sCFO
DEPARTMENTAL SDBIP
Dep
art
men
tal S
DB
IP
Counci
l Sco
reca
rd
Depart
menta
l Sco
reca
rds
Mu
nic
ipal
Man
ag
er
INP
UT
OW
NE
RS
HIP
Mu
nic
ipal
Man
ag
er
Dir
ect
ors
Man
ag
em
en
t
All
KPI O
wn
ers
Mayor
revie
w a
nd
ap
pro
ve (
28
days
aft
er
budget
appro
val)
Month
ly R
eport
to P
ort
folio
Com
mit
tee
Managem
ent
Team
Month
ly
Revie
w
Act
ual Pe
rform
an
ce t
o b
e u
pd
ate
d m
on
thly
Update TL SDBIP with actual results of Dept SDBIP
IDP Performance indicators
Top Layer SDBIP
Budget
MTASCapital
Projects
Expenditure per Ward
Monthly Cashflow
Revenue by source
KPA’s / Strategic Objectives
Prioritised projects
Nat. Outcomes
Risk Register
Hig
h / S
ever
e R
isks
Departmental Activities
Reporting Requirements
Municipal Systems
SD
BIP
Offi
cer
INP
UT
Act
ion
s to
ad
dre
ss a
reas
wh
ere
perf
orm
an
ce a
re less
th
an
req
uir
ed
st
an
dard
Man
ag
em
en
t
An
nu
al
Re
po
rt
Inp
ut
Explore
Endless
Horizons
It is important to note that a PMS is dynamic and will change and develop over time to reflect the unique features of the municipality.
Performance management provides the mechanism to measure whether targets to meet its strategic goals set by the organisation and its employees are met.
CONCLUSION
THANK YOU/ DANKIEYOURS IN SERVICE DELIVERY….