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….