Programme and Budget of the South African Management Development Institute: 2004/05

1. Programme and Budget of the South African Management Development Institute: 2004/05 Presentation to the Select Committee on Local Government and Administration 26 May 2004

2. Government’s Programme of Action • Reducing unemployment by half • Reducing poverty by half • Achieving an adequate supply of skills required in the economy • Ensuring that all SAns exercise democratic rights • Ensuring govt is compassionate and accessible • Reducing incidence of ermerging and re-emerging diseases • Significantly reducing the number of serious and priority crimes • Positioning SA strategically to be a global force in global relations

3. Framework of Government’s Programme • Responding to the “two economies” • Constituting the Developmental State • Establishing a People’s Contract

4. A summary of the governance challenges: Emerging from the Governance and Administration cluster • Focus on practical implementation as distinct from setting out a policy framework which now exists, through the adoption of project management practices and Community Development Workers. • Improve service delivery by building the necessary institutions and initiatives. • Make use of the NSDP to focus government’s attention on localities that have the greatest potential for development and poverty alleviation whilst rebuilding other areas. • Improve the capacity of provincial and local government at key technical levels especially where it impinges on service delivery and financial management • Improve accountability to, and contact with, the electorate by all levels of government. • Develop and maintain partnerships with civil society with an emphasis on practical programmes. • Provide leadership to social partners through the (re) articulation of an encompassing framework for South Africa’s development in the next decade and beyond. These challenges all take place within the context of the social, economic challenges, JCPS challenges, and IRPS challenges and the imperative of playing an active and leading role in the implementation of NEPAD and the African Peer Review Mechanism, and ensuring that AU structures and programmes are implemented, operationalised and consolidated.

5. Capacity of Government What is the nature of the problem? • Capacity for service delivery uneven – with pockets of excellence for challenges of low capacity in all three spheres • New delivery system introduced (e.g. MPCCs) but not fully utilised • 25% procurement budget spent on consultants – policy advice, IT, with limited skills transfer • Highly mobile senior management echelon • In some cases, interventions to correct failures are too late for inadequate

6. Capacity of Government • Human Resource Development • Eastern Cape Intervention – lessons learned • Support to Home Affairs

7. Human Resource Development Goals of human resource development • To reorientate the norms, attitudes and values of public servants • To enhance the capacity of the state for improved service delivery • To take further our project to constitute the developmental state • To develop strategies to effectively harness civil society’s ability to contribute to government’s efforts

8. Human Resource Development Priorities for 2004 • To develop and begin implementation of a comprehensive, credible and outcomes-focused programme for skills development within the framework of the public sector HRD strategy • Focus on strategic skills gaps such as financial and project management • Based on rigorous review of existing efforts, institutions and systems, and should be based on an analysis of needs • Focus on norms, values, attitudes and orientations of public servants that are consistent with the objective of the developmental state

9. Human Resource Development Medium term: 2005 – 2008 • Accelerate implementation of public sector HRD strategy • Comprehensive implementation of capacity development at local government level • Ensuring effectiveness and sustainability of capacity development programmes and institutions • Effective monitoring and evaluation of training and development programmes • Ensuring that the results of capacity improvement programmes are visible and discernable in key delivery departments

10. Human Resource Development Long term: 2014 • Ensuring that capacity development programmes in the public sector are sustainable and outcomes-focused • Ensuring we have a sustainable, effective, responsive and professional cadre of public servants by 2014

11. SAMDI’s Strategic Objectives (External) • CDWs programme significantly accelerated – linked to People’s Contract and focussed on “second economy” • Design and delivery of quality programmes aimed at improving government’s capacity to deliver • Focus on priority skills: financial management, project management, supply chain management • Training in Batho Pele

12. SAMDI’s Strategic Objectives (External) • Development and implementation of a compulsory programme for civil servants • Programmes focused on management and leadership development, service delivery improvement and customer service, ethics, HIV/AIDS, Gender and disability • Support to AU and NEPAD objectives through development of public sector capacity on the Continent

13. Broader strategic issues • Review of the public sector HRD strategy to improve planning and implementation credibility • Active engagement with all schedule 4 departments: education, health and social development • Strategic partnerships with all government training academies • Actions to improve credibility and effectiveness of public sector training and development market include a review of qualifications) • Position SAMDI to be primary service provider to all national departments

14. Internal processes to ensure that SAMDI is able to meet these objectives In order to enable SAMDI to achieve these objectives, SAMDI will develop the requisite institutional capacity to enable the institution to effectively and efficiently carry out the activities outlined in the strategic plan, including by developing, fostering and maintaining partnerships, managing stakeholders and ensuring effective communication in support of the programmatic interventions. Including through: • Identifying a pool of visiting scholars, and practitioners, • Appointing associates from public, academic, private and international sectors, • Forming strategic partnerships with National MDIs, • Relocating institution to premises that are conducive to our vision and mission; • Supporting the development of HR policies and processes that encourage employee wellness and facilitate flexible work arrangements; • Ensuring effective communication with stakeholders through creating and participating in relevant forums; and • The development of an effective information strategy and an information technology infrastructure to support the design and delivery of agreed upon interventions

15. Internal processes to ensure that SAMDI is able to meet these objectives SAMDI will work as an institution that is able to continually learn and that promotes lifelong learning for its staff. Through this approach to learning and development SAMDI will strive to create a positive culture in which individuals are highly motivated and productive. This will be achieved through: • An integrated change management and skills development process for SAMDI staff to ensure continual learning and development, • to develop and implement an approach to curriculum development and quality assurance so that curricula aligns with quality standards, • Modes of delivery is appropriate to the needs of the learners – including an emphasis on e-learning, and curricula is contextualised to meet the needs of clients, • To support the development of research and knowledge management processes to ensure the development of a learning organization and an approach to Life Long Learning in SAMDI

16. Financial Management • SAMDI will offer relevant and quality interventions and operate in a cost effective manner in line with sound financial management principles (in line with PFMA). • SAMDI will be put in place a cost recovery strategy coupled with donor mobilisation, which ensures its long-term sustainability.

17. Expenditure trends • Expenditure increased by 34,9% in 02/03 • An additional R5,7 million was allocated to enable SAMDI to retain contract staff • The budget for 03/04 increased by 37,5% to allow for an augmentation of the TA • This augmentation will will decrease over the medium-term as the Institute moves towards self-sustainability

18. Programme 1: Administration • The aim of the programme is to facilitate the overall management of SAMDI and to provide for the policy formulation and management responsibilities of the MPSA, DG and senior managers. • Other functions include organising the department; administrative, legal and office support services, financial management etc

19. Programme 1: expenditure trends • The 31,9% growth of expenditure between 00/01 and 03/04 was due to an increased demand for SAMDI programmes • The average annual increase of 21,3% over the medium term is to accommodate capacity building

20. Programme 2: Public Sector Organisation & Staff Development • The aim of this programme is to provide demand-driven OD interventions to the public sector, which leads to improved performance and service delivery • The programme also co-ordinates, manages and administers the TA

21. Programme 2: expenditure trends • Annual average growth of 31,1% between 00/01 and 03/04 was due to an increased demand for training programmes by national and provincial departments • All training functions have been moved to the TA, and this, together with the decreased augmentation of the TA, is the reason for the decreasing budget over the medium term

22. Training Trading Account • R4,3 million was transferred to the TA in 2002/03, and a surplus of R6,1 million was generated • The TA aims to generate revenue of R15 million, R20 million and R21,2 million over the medium term • R11 million has been received from the Flemish Government for the IMDP • SAMDI’s website has been established

23. Challenges emerging • Winning support for compulsory certificate for the public sector (at the different SMS levels) • Facilitating effective HR Planning • Supporting the development of quality standards for SMS provision (through PSETA) • Develop quality curricula and alternative modes of delivery (e-learning) • Supporting the development of learning organisations (including workplace readiness) • Consolidating our regional strategy

24. Challenges (continued) • Aligning training with the challenges the departments/ provincial adminstration face in implemeting new Public Service regulations and other policies that give effect to the transformation process • Equipping public servants with competencies to enable enhaced performance • Forging closer links between policy developers and trainers • Cross-fertilisation across functions and competencies in DPSA

25. Progress to date • The implementation of the turn-around strategy led to the new structure that promised to deliver more effectively on the mandate of SAMDI. Changes in the Institute took place at an accelerated pace to ensure skilled staff component in delivering training and development interventions. While there is marked improvement in the functioning of SAMDI, transformation was not done with surgical precision. There is still a need to align structure with the new unfolding vision of SAMDI. • Significant steps have been taken to align the training and development interventions offered with with the Skills Development Legislation. SAMDI has obtained the necessary recognition as a provider of education and training by the Public Service SETA.

26. Progress to date (cntd) • Most of the courses offered by SAMDI have been designed to be outcome based, with pre-course work and post-course assignments as inherent requirements for successful completion of the course. • Through the customer needs driven approach and training needs analysis, SAMDI is now able to deliver relevant training and development interventions to departments. • SAMDI has begun to operate on a cost recovery basis. Progress made in this regard has been significant, with the Institute exceeding targets set for 2002/03 • SAMDI established the Project Assistance Team in 2000 to coordinate and facilitate donor funding. The roll-out of the EC funding was completed successfully as a result.