Transcript Dan Mashitisho

CAN EFFECTIVE PERFORMANCE
MANAGEMENT SYSTEM IMPROVE SERVICE DELIVEYR INITATIVES?
IMFO Audit & Risk Indaba 2015
20 – 22April 2015: Olive Convention Centre, Durban
Institute of Municipal Finance Officers & Related Professions
ABC OF CLEAN ADMINISTRATION – BACK TO BASICS THROUGH
PERFORMANCE MANAGEMENT SERVICE: CAN EFFECTIVE
PERFORMANCE
MANAGEMENT SYSTEM IMPROVE SERVICE DELIVEYR INITATIVES?
PRESENTED BY:
DAN MASHITISHO
CHAIRPERSON: INSTITUTE OF SOUTH AFRICAN MUNICIPAL
ACCOUNTING OFFICERS (ISAMAO)
Institute of Municipal Finance Officers & Related Professions
CONTENT
1. Introduction
2. Background
3. Performance Management System Charecterised
4. The Service Delivery Environment
5. Conclusion
Institute of Municipal Finance Officers & Related Professions
PERFORMANCE MANAGEMENT SYSTEM CHARECTERISED
1. INTRODUCTION
The Institute of South African Municipal Accounting Officers (ISAMAO) is
humbled by the invitation extended to it by IMFO to this august Indaba.
Needless to say, ISAMAO is indeed a proverbial “new kid on the block”. As a
fledgling professional institute, ISAMAO shall inevitably have to tap on the
knowledge and experience of sister organizations of IMFO’s caliber.
ISAMAO has been tasked, at his Indaba, to tackle or answer the following
question: “Can Effective Performance Management System improve Service
Delivery initiatives”? In answering the foregoing, there shall be no attempt
made to exhaust the vast scope of Performance Management regime.
Be that as it may, some salient variables shall be examined which are key
levers that might influence the success or failure of the service delivery
initiatives in spite of the effective Performance Management System.
Institute of Municipal Finance Officers & Related Professions
PERFORMANCE MANAGEMENT SYSTEM CHARECTERISED
2. BACKGROUND
The concept of Performance Management and the system thereof is relatively
new in the Public Sector especially in South Africa.
In the Local Government sphere, Performance Management was only earnestly
practiced after it was formally legislated through the Municipal System Act (ACT
No 32 of 2000).
In this connection, sec 38 of the MSA stipulates that “A Municipality must
establish a performance Management System that is÷
commensurate with its resources;
best suited to its circumstances ; and
in line with the priorities , objectives, indicators, and targets contained in its
integrated development plan.
Institute of Municipal Finance Officers & Related Professions
3. PERFORMANCE MANAGEMENT SYSTEM CHARECTERISED
3.1 The Smart Character
The characterization of an effective Performance Management System as one
that depicts key performance indicators that are specific, measurable,
accurate, realistic with timeframes, is hitherto unparalleled.
Nonetheless, as it has already been alluded to, the performance management
regime is relatively new particularly in Local Government, it often happens
that the targets and key performance indicators lack the requisite “Smart”
Character. It therefore follows that if the key performance indicators outlined
in the Service Delivery and Budget Implementation Plan (SDBIP) are not
“SMART” such may complicate matters to the point where it may not be clear
whether or not there has been achievement or service delivery.
Institute of Municipal Finance Officers & Related Professions
3. PERFORMANCE MANAGEMENT SYSTEM CHARECTERISED
3.2 Validity and Reliability …………………Continue
It is imperative that the Performance Management System should be valid and
reliable. The validity of the systems is characterized by the extent to which it
accurately measures the key performance indicators. In the same vein,
reliability of the system refers to the consistency in measuring KPI’s and
outcomes.
Similarly, a good performance indicator should be:
Reliable: the indicator should be accurate enough for its intended use and
respond to changes in the level of performance.
Well-defined: have a clear, unambiguous definition so that date will be
collected consistently, and be easy to understand and use.
Verifiable: possible to validate the processes and systems that produce the
indicator.
Institute of Municipal Finance Officers & Related Professions
PERFORMANCE MANAGEMENT SYSTEM CHARECTERISED
Validity and Reliability
Cost-effective: the usefulness of the indicator must justify the cost of collecting
the date
Appropriate: avoid unintended consequences and encourage service delivery
improvements.
Relevant: the indicator must relate logically to the institution’s mandate.
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
4.1 Resources………………Continue
It is emphatically submitted that the existence of an effective Performance
Management System in an organization, especially of a municipal nature may
only lead to improved Service Delivery if other related variables are positively in
place. Such variable are examined below in a cursory fashion.
4.1
Resources
The availability of both human and financial resources is key to Service Delivery.
to this end, the municipalities that have cash-flow challenges e.g. those that
have been listed by National Treasury as culprits who failed to pay ESKOM bills
and are supposed to be proverbially “stoned to death” shall not have improved
Service Delivery irrespective of whether they have effective Performance
Management Systems or not.
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
Resources
It is common sense that the withholding of the allocation of equitable share to
these poor municipalities may only plunge them in a service delivery
conundrum. To this end it is proposed that the National Treasury should rescind
this decision as it is indeed detrimental to service delivery to the indigent
communities.
Similarly if the municipality does not have personnel with requisite skills,
knowledge and abilities to perform their functions, the prevalence of the
aforementioned system might be inconsequential.
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
4.2 Intergovernmental Relations …………………Continue
The Constitution of the Republic of SA characterizes the three spheres of
government viz Local, Provincial and Local Government as distinctive interdependent and inter-related, sec 40 (1) by the same token sec 154 of the
Constitution stipulates that National and Provincial Government shall support
and monitor local government.
Although the above constitutional stipulations seem to be self-explanatory, in
practice the autonomy of Local Government seem to have been eroded by the
other two spheres of government who seem to rule the local sphere by decree
through a cacophony of circulars and regulations which sometimes make it
difficult for smooth Service Delivery to take place.
Although over-regulation of the local sphere by other spheres of government is
indeed disquieting, what is even more perplexing is that it seems to be
underpinned by deep-seated lack of trust. This seems to fly in face of sec 41(h)
of the Constitution which provides that the three spheres of government “must
co-operate
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
4.2 Intergovernmental Relations
with one another in mutual trust and good faith”. Needless to say, an effective
Performance Management System would not improve Service Delivery in such
an environment.
It is therefore imperative that both Provincial and National Government should
accelerate the support as outlined in sec 154 of the Constitution whilst going
slow on the erosion of Local Government autonomy and distinctiveness.
The aforesaid critical analysis of the existing intergovernmental relations should
not be misconstrued to suggest that there is no support at all from National and
Provincial Governments, on the contrary, it is suggested that such relations
should be improved to enhance Service Delivery to the communities.
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
4.3 Involvement of Local Communities ………………….Continue
The Municipal System’s Act (Act 32 of 2000) imposes a heavy and almost
insurmountable duty on municipalities to involve local communities in
processes relating to performance management systems.
To put it more aptly, section 42 of the aforementioned Act stipulates that “A
municipality, through appropriate mechanism, processes and procedures . . .
must involve the local community in the development, implementation and
review of the municipality’s performance management system, and in
particular, allow the community to participate in the setting of appropriate key
performance indicators and performance targets for the municipality.”
If the aforesaid stipulation of the Act viz sec 42 of the Municipal Systems Act is
to be followed to the letter and spirit, a cross-section of municipalities’
performance management systems may be found wanting and not in
compliance with the Act in this regard.
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
Involvement of Local Communities ………….Continue
This is precisely so because the logistical and other modalities of getting the
members of the community to determine the targets and KPI’s of municipalities
may seem to be insurmountable.
Not withstanding the above compliance challenge, it should also be postulated
that the community also has a responsibility to ensure that service delivery is
improved. Surely, even if the municipalities were to have state-of-the-art
performance management systems, such may come to naught if the community
disrupts service delivery initiatives by stealing and destroying municipal assets
and amenities as if such do not belong to them.
To this end, there is a need for a program which shall be characterized by a
social contract between municipalities and the communities which would
inculcate a spirit of ownership and pride over services that are already delivered
with the understanding that the municipalities have limited resources,
especially financial, that available for service delivery.
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
Involvement of Local Communities
The community therefore needs to understand through a social contract, that
while it is their constitutional right to express service delivery concerns through
protests, such should be done in a civilized fashion.
By the same token, the social contract should accentuate the responsibility of
the Municipal officials and politicians to respond promptly to the service
delivery needs of the community in line with Batho Pele Principles in the
context of the Back-to-Basics programme.
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
4.4 Professionalism ……………..Continue
One of the key factors that would impact on the affective Performance
Management System and the latter’s symbiotic relation to improved service
delivery, is the culture of professionalism or lack of it, among officials and
politicians in the day to day execution of their duties.
The setting of professional norms, standards, procedures, work ethic, and
ethical behavior as a central pillars of organizational culture should be
encouraged in all the spheres of government to ensure improved service
delivery.
It is against this backdrop that the Municipal Managers, countrywide, converged
in the City of Ekurhuleni, Gauteng in November 2014 to launch the Institute Of
Municipal Accounting Officers (ISAMAO).
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
Professionalism
The vision of the Institute is “A repository for highly competent, professional
and ethical municipal accounting officers” whilst the mission is “To develop and
maintain a system of standards, norms and procedures that will inculcate
professionalism amongst Municipal Accounting Officers thereby enhancing
quality service delivery to communities”.
The Institute (ISAMAO) would like to encourage all municipal officials to join and
support relevant professional bodies to improve our knowledge skills and
abilities in the quest to enhance quality service delivery to our communities.
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
CONCLUSION ……………Continue
A genuine attempt has been made in this input paper to examine various
factors and variables with the objective of answering the question “Can an
Effective Performance Management System improve Service Delivery
Initiatives? Of course this was done in the context of the Indaba theme “ABC OF
CLEAN ADMINISTRATION and the
Back-to-Basics programme.
Admittedly, some of the assertions postulated in this paper were made from the
Local Government practitioner’s point of view rather than high flown
theoretical or academic polemics based on requisite empirical research.
Nonetheless, it may be concluded here that the answer to the aforesaid
question is indeed a conditional YES.
Institute of Municipal Finance Officers & Related Professions
4. THE SERVICE DELIVERY ENVIRONMENT
CONCLUSION
This is so precisely because whilst an effective Performance Management
System can improve service delivery initiatives, such may be converted to a NO
if some of the key variables discussed in this paper which are central to the
environment of service delivery business, are antagonistic to the effective
Performance Management System.
Finally, it is conjectured that the implementation of the fledgling Performance
Management regime in the South African Public Service, whilst extremely
challenging, is however not insurmountable.
In the words of our national icon and hero Nelson Rolihlahla Mandela, “it
always seems impossible until it is done”.
Institute of Municipal Finance Officers & Related Professions
Thank You!
Institute of Municipal Finance Officers & Related Professions