REPORT ON THE WORK OF THE INTERIM MANAGEMENT TEAM, EASTERN CAPE

1. REPORT ON THE WORK OF THE INTERIM MANAGEMENT TEAM, EASTERN CAPE NCOP 11 SEPTEMBER 2003

2. Structure of the presentation • The IMT mandate • Summary of challenges • The IMT solution • Lessons learnt

3. 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

4. OPSC National Depts & EC senior Managers DPSA Structure of the IMT Interim Management Team DG:DPSA, DG:OPSC,DG:ECape and HoD of Provincial Treasury [In partnership with National Prosecuting Authority and other law enforcement agencies] Joint Management Teams Specialists and consultants from Specialist Teams Issues based ad hoc teams, e.g. Disciplinary cases

5. IMT Roadmap

6. 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

7. 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

8. 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 ? Problem analysis: General observation Current Stakeholder Perceptions Positive Negative X X X X X X

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. Concept

17. Strengthen leadership and management Strengthen Back Office Support Program Management Departmental Turnaround Strategies Rapid and visible Service delivery Ethics and anti- Corruption Strategy Turnaround Strategy: transversal projects and departmental turnaround plans Improve Internal controls and accountability Improve HR Management

18. 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.

19. 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 Turnaround Strategy

20. Strengthen back office support: detail

21. Strengthen back office support: detail

22. Strengthen leadership and management Improve HR Management Strengthen Back Office Support Program Management Departmental Turnaround Strategies Ethics and anti- Corruption Strategy Rapid and visible Service delivery Turnaround Strategy Improve internal Controls

23. Improve internal controls and accountability: detail

24. Strengthen leadership and management Strengthen Back Office Support Program Management Departmental Turnaround Strategies Ethics and anti- Corruption Strategy Rapid and visible Service delivery Turnaround Strategy Improve Internal Controls Improve HR Management

25. Improve HR Management: detail

26. Improve HR Management Strengthen Back Office Support Program Management Departmental Turnaround Strategies Ethics and anti- Corruption Strategy Rapid and visible Service delivery Turnaround Strategy Improve Internal Controls Strengthen leadership and management

27. Strengthen leadership and management: detail

28. Improve HR Management Strengthen Back Office Support Program Management Departmental Turnaround Strategies Strengthen Management And leadership Rapid and visible Service delivery Turnaround Strategy Improve Internal Controls Ethics and anti- Corruption Strategy

29. Ethics and anti-corruption: detail

30. Improve HR Management Strengthen Back Office Support Program Management Departmental Turnaround Strategies Strengthen Management And leadership Ethics and anti- Corruption Strategy Turnaround Strategy Rapid and visible Service delivery Improve Internal Controls

31. 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.

32. Improve HR Management Strengthen Back Office Support Program Management Rapid and Visible Service Delivery Strengthen Management And leadership Ethics and anti- Corruption Strategy Turnaround Strategy Departmental turn- around strategies Education Health Social Development Roads and Public Works Departmental Turnaround Strategies • 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. Improve Internal Controls

33. 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

34. 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

35. 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

36. 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.

37. Social Development turnaround • 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

38. 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.

39. 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.

40. Sustainability ctd

41. 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

42. 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.

43. Thank you