The Presidency Department of Performance Monitoring and Evaluation

1. The Presidency Department of Performance Monitoring and Evaluation MUNICIPAL ASSESSMENT TOOL 10 September 2013

2. Problem statement • Service delivery: pace is slow, but big threat is functionality, particularly in water & sanitation: • According to DWA, almost 21% of the households with access to water infrastructure have to endure problems in respect of its functionality (no water from tap) over and above the 5.3% households who still do not have a service; and, • 26% (3.8 million households) are affected by sanitation services and/or facilities that are not fully functional over and above the 9% (1.4 million households) who still don’t have a service. • This is among the major reasons for the high levels of dissatisfaction within communities. Service delivery protests in the period ending June 2012 exceeded the total in 2011 • Institutional performance of municipalities is worrying - poor financial and administrative management, weak technical and planning capacity, weak leadership & governance (contracts awarded to employees, councillors & other state officials increased to 46% of auditees) and dwindling revenues

3. Why are we not achieving the results we set? Mechanistic notion of performance: • Until recently we have had s simplistic conception of performance monitoring • Set the target and delivery will happen, e.g. • 100% unqualified audits at municipal level • Universal access to basic services • Meaningful and deliberative public participation in decision-making • Elided the operational aspects - the internal workings of organisations which make the delivery of results possible was ignored • Where interventions to improve these internal workings exist, they have been ad-hoc, fragmented and coordination and alignment of interventions and support has been weak

4. Local government context: ‘Chaordic’ • Composite of chaos and order • Fast changing and complex environment that demands quality, value for money and social justice • Each municipality is unique in terms of the balance between its socio-economic, cultural and political environments

5. Getting back to the basics • The public sector exists to create greater public value: • being better able to identify and respond to needs of citizens • increasing the quantity and quality of activities per resource expended • reducing the costs used to achieve current levels of production • increasing capacity to innovate and improve • All of this depends on supportive & dynamic management and efficient and effective administrative practices

6. So management practices and the internal operating environment are important!!! Ecstatic citizens Home Affairs – ID & passport turnaround time A major international study undertaken by the London School of Economics (LSE) and McKinsey & Co examined management skills and capabilities across 15 countries and found clear linkages between the quality of management and the performance of firms and organisations in terms of productivity and quality of services.

7. WHY A MAT? • Overcome the shortcoming and omission w.r.t the absence of proper measuring, monitoring and supporting improved management practices • Considers and focuses on the managerial practices of a municipality. That is determining what the organisation does and how it approaches its tasks to achieve the desired results • Based on the premise: excellent results in organisational performance, citizens/customers, people and society are achieved through leadership driving strategy and planning, people, partnerships, resources and processes • Needed a mechanism to look at the organisation from different angles at the same time: the holistic approach to organisation performance analysis • Analyse how the organisation works & measures this against agreed standards

8. Objectives of the MAT Measure, Monitor and Support improved management in municipalities for quality service delivery and increased productivity • Management information tool for municipal leadership – to reflect on ways of working & shape management & administrative practices to deliver quality services • Knowledge management and performance monitoring system that provides information on municipalities against key indicators – strategic leadership and policy reform • To facilitate well coordinated targeted and differentiated support and intervention measures • To gear national and provincial departments to better support in identified areas of underperformance • Provincial DCOGs are key – capability to adopt and undertake management assessment model as core part of its function

9. What management assessment is not.. X √ X √ X • Basis for targeted and coordinated support where needed – municipality determined and directed • Support the development of robust systems for measuring, monitoring and effecting improvement in management of operations √

10. Performance areas • The Municipal Performance Areas that will be assessed fall into the following 6 categories: • Integrated Development Planning • Human Resource management • Financial management • Service Delivery • Community engagement • Governance • Describing the ideal performance to be achieved in respect of key indicators per category • Setting out the criteria that needs to be progressively met in order to move to the ideal state

11. Levels of Management Performance • Identifies four progressive levels of management performance • Each performance standard is assessed and scored against the four levels • Scores are aggregated for each key performance area

12. Standards 2013/14 - Pilot

13. Standards 2013/14 – Pilot (continued)

14. Example of a standard: Governance

15. Design of the programme • Stakeholders consulted: DCoG, National Treasury, DEA, DWA, DoE, DoT, SALGA, NW Provincial Department of Cooperative Governance and Traditional Affairs, Gauteng Provincial Department of Cooperative Governance and Traditional Affairs, South African Cities Network • Steering Committee consisting of DPME, national DCOG, SALGA, Cities Network, and National Treasury Technical Assistance Unit established to oversee the programme • Reference Group consisting of provincial departments of local government, national sector departments, Office of the Auditor General is in process of being established for broader consultation and participation • Broad time-frames for implementation • April 2013 to mid-September 2013: Development of the content of the assessment tool for municipalities, incorporating key management performance areas • Mid- to end-September 2013: Automation of assessment tool for municipalities • September 2013 – March 2014: pilot phase • April 2014 onwards: roll out on larger scale

16. Pilot phase • Aim is to test the draft tool in respect of functionality, application, relevance within Metro’s, Secondary cities, DMs and LMs as to identify areas of improvement in the tool through lessons learned • Participating municipalities in pilot phase : City of Tshwane, Msunduzi, Buffalo City, Cape Town, Moretele LM, Moses Kotane LM, Rustenburg LM, Naledi LM, Lekwa-Teemane LM, Dr Ruth Segomotsi Mompati DM, Bojanala Platinum DM • Pilot municipalities chosen on basis of consideration of getting a mix of large and small and urban and rural, as well as working with those provinces and the Cities Network which wanted to participate in the pilot phase (NW and Gauteng in particular) • Plan for pilot phase: • Self-assessments in at least 10 municipalities by end of year • Moderation and feedback process: January 2013 to March 2013 • Improvement plans in place in the 10 municipalities by June 2013

17. Overview of the pilot phase

18. Building capacity for MAT in DPME • Unit established in DPME in April 2013, in the outcomes branch • The unit is currently in process of appointing staff • Headed by official at level 15 • 1 Director appointed, interviews completed for an additional 2 Directors • Recruitment process under way for 4 deputy directors • 2 Administrative support staff appointed • Initially unit will consist of above 10 people • Pilot phase will provide indication of additional capacity required for implementation on a national scale

19. Progress to date and immediate next steps • Consultation on tool for application in pilot phase completed • Comments being incorporated, final tool will be ready by end September for application in pilot phase • 11 municipalities agreed to participate in pilot phase • Next steps: • September 2013: Training of Municipal Assessment Coordinators of the 4 cities on tool content • October 2013: Training of Municipal Assessment Coordinators of the 7 NW municipalities on tool content and technical application • Mid-October: Start self-assessments in the pilot municipalities

20. KeyalebogaKe a leboha Ke a lebogaNgiyabongaNdiyabulelaNgiyathokozaNgiyabongaInkomuNdikhoulivhuha Thank you Dankie Go to http://www.thepresidency.gov.za/dpme.asp for PME documentsincluding narrative guide to outcomes approach, outcomes documents and delivery agreement guide