Transcript Service standards are at the core of an effective

SALGA Western Cape: Provincial Members
Assembly
How did Swartland proceed from a qualified audit
in 2005/06 to achieve a CLEAN audit in 2010/11?
Swartland 17 October 2013
International overview
War in stead of Peace
WHY?
Poverty in stead of Prosperity
Failure in stead of Success
Leadership
Understanding
pa
ge
Content of presentation
1. Back ground: Swartland Local Municipality (SM)
2.
How did SM proceed from an qualified audit
report 2005/06 to consecutive clean audits?.
2.1 Leadership, and
2.2 Good Governance principles
3. What next: (1) Attitude,
(2) Self improvement and
(3)Leadership development
1. Die Swartland Munisipale Gebied
1. Swartland Municipal Area
CAPE TOWN
KAAPSTAD
KALBASKRAAL
MALMESBURY
RIEBEEK WES /
KASTEEL
DARLING
YZERFONTEIN
MOORREESBURG
KORINGBERG
1. Introduction
Where are we?
WEST
COAST
DISTRICT
WESTERN CAPE
POPULATION – 2011
CENSUS :113762
KORINGBERG
MOORREESBU
RG
Staff members: 538
Councillors: 23
11 Towns
AREA SIZE
3700 Km²
YZERFONTEIN
DARLING
RIEBEEK WES
RIEBEEK
KASTEEL
MALMESBURY
RIVERLANDS
ABBOTSDALE
CHATSWORTH
KALBASKRAAL
Population growth
Black African
Coloured
Indian or Asian
White
Other
TOTAL SWARTLAND
West Coast District
2001
2011
7 499
52 160
297
12 160
0
72 116
282 673
20 805
73 753
585
17 780
838
113 762
391 766
Annual
Growth
10.7%
3.5%
7.0%
3.9%
4.7%
3.3%
Population growth
• The population increased from 65 300 in 1996 to
72 116 in 2001 and to 113 762 in 2011.
• The average growth rate between 1996 and
2001 was 2% per annum while the growth
between 2001 and 2011 escalated to 4.7% per
annum.
• Swartland was the second fastest growing
municipality in the Western Cape between 2001
and 2011.
Population growth
• In terms of population size Swartland is now the
sixth largest municipality in the Western Cape
out of 24 municipalities (Cape Town metro
excluded) and the largest in the West Coast
District.
• 64.8% of the population is Coloured, 18.3% Black
African, 15.6% White, 0.5% Indian or Asian and
0.7% Other.
Spending of Capex
• 2010/11: 96%
• 2011/12: 108%
• 2012/13: 100
Why am I telling you this?
To prove to you that Swartland
has the ability to execute
E
E
E
= Energy
E
= Execute
= Energise
= Edge
Part of
attitude
How did SM proceed
from a qualified report
in 2005/2006
Unqualified with other matters
2006/2007
2007/2008
2008/2009
2009/2010
Since 2005, eight
consecutive years of
100% spending of
MIG
Clean audit in 2010/2011
Clean audit in 2011/2012
Clean audit in 2012/2013
Back to the question re
“How did SM proceed from a qualified
report in 2005/2006 to a CLEAN AUDIT
in 2010/11 and 2011/2012?”
The answer is two-fold and is based
on:
A:
Leadership
B:
Good Governance
A: LEADERSHIP


Leadership styles and quality
Begin with the end in mind
•
•
•
•
Were is the beginning ?
What is success?
Will success ever be successful ?
Prosperity partnership and creating a
positive organisational culture
Rules for interaction
Value system
Leadership philosophy
Invocom methodology
. LEADERSHIP
…. cont
•
Ethical business practices
•
Implement and develop systems
(automate)
•
Oversight by management
•
Staff (prosperity partnership and work
place climate change)and IT
B: GOVERNANCE
•
Not only to comply, but to improve
•
Risk Management
•
Internal Audit and Audit Committee
•
Fraud and corruption
Understanding-Based Leadership®
Leadership
Present/Future
Qualities
Leadership
Styles
Techniques
Talents/
Resources
Leaders
must be able
to
Informed
communicat
Understand
e
Involved
and explain Share
Past
i.e.
understand
themselvesLeadership Problems/
Challenges
Goals
S
M
A
R
T
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ge
ABOUT A, B, C, D AND E
LEADERSHIP/DECISION-MAKING
STYLES:
THE FOLLOWING SLIDES REPRESENTS
SWARTLAND’S FORMULAE FOR
SUCCESSFUL LEADERSHIP OF BOTH
APPOINTED AND ELECTED LEADERS
pa
ge
Types of leaders
Appointed
Army
Business
Elected
Politicians
Shop/Shaft Stewards
Informal
Inherited
Kings
Chiefs
Self Appointed
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ge
LEADERSHIP AND DECISION STYLES
A
B
X
X
X
X
Synergy
4X1=5
•
•
•
•
The leader thinks on own
The leader makes the final decision
Decision is implemented
Monitor, problem-solving and healthy
discipline
• The leader thinks on own
• Outlines the problem, ask for suggestions, stimulates participation
and new ideas, listens open-mindedly
• Interaction: discussions; explanations; acknowledgments
• The leader makes the final decision - explains reasoning
• Decision is implemented
• Monitor, problem-solving and healthy discipline
pa
ge
Leadership Technique
W
D
W
W
H
GOAL
OBSTACLES
PERFORMANCE
EVALUATION
√ Recognition
X Plan
LEADERSHIP QUALITIES (CONTINUED)
Negative outside influences
Communication
Communication
Respect
Respect
Relations
Relations
Discipline
X
Leadership Problems/
Challenges
Y
Leadership Problems/
Challenges
There are no bad battalions only bad officers
Napoleon
Discipline
The bad workman
always blames his
tools. A bad leader
always blames his
followers.
pa
ge
THE LEVEL OF SUSTAINABLE PERFORMANCE IS DETERMINED BY LEADERS
ORGANISATIONAL FOCUS
HIGH
LOW
COSY
ENVIRONMENT
SUSTAINABLE
VALUE
DEAD FISH IN
THE WATER
SHORT TERM
RESULTS
OPERATIONAL FOCUS
HIGH
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ge
A:
Leadership
Begin with the end in mind
Where is the beginning?
Will come back to
this at the END of
presentation
In my case 1
August 2006.
The desire to be successful
What is success?
Will success
ever be
successful ???
How does it feel?
How does it taste?
Is it tangible?
… Leadership continue
Creating a positive organisational
culture
1. Developed rules for interaction
2. Developed a value system
3. Developed a leadership
philosophy
4. Implemented the INVOCOM
system
1. Rules for interaction
PROPOSED RULES
1
No subjects are taboo
2
Rationally with dignity:
3
Systematic & logic discussion
Pascal
X
Parking Bay
Historic perspective
page 25
4
Holistic perspective
5
Never to hurt, only to learn
6
Participate as equals: Workshop status depends on contribution
7
I shall always try to be completely objective
2. VALUE SYSTEM







Mutual Respect
Positive Attitude
Honesty and Integrity
Self-discipline
Solidarity and Commitment
Support
Work in harmony
3. Leadership Philosophy
Through participation,
understanding and purposefulness
we create an environment in which
staff flourish and deliver outstanding
and sustainable services
4. INVOCOM methodology
INVOCOM
®
Employee Involvement
through Communication for
Commitment and Innovation
….. continue
LEADERSHIP
ETHICAL BUSINESS PRACTISES

Do the “right thing” (Obama vs Banks)

Get the team to do the “right thing”

Convince the politicians to support the “right thing”

The “right thing” was, to do away with performance
bonuses !*
…………LEADERSHIP continue
Implementation and development of automated systems



Performance Management (Excel to Database)
HR – Develop electronic leave application/attendance
register/exception reports within Payroll & Personnel
Administration
Supply Chain Management- automated

Record keeping - Collaborator

Land use, Capital Contribution & Building Plans (now only 15days)

Execution of Council, Mayoral, Port Folio and management
decisions – collaborator
(world wide only 13% of strategic plans are
executed/ implemented)

Make the IDP everybody’s business

3 years ago 50% of our goals did not meet the SMART principle

# Baseline info, of utmost importance
………..LEADERSHIP
OVERSIGHT BY MANAGEMENT

Monthly reporting: “checklist”- part of agenda of
management meeting. Also PMS indicator of MM

Reconciliations

Exception reports – follow-up deviations & action

Monthly report on Internal Audit & AuditorGeneral findings – follow-up and action
(The above, part of Municipal Managers PMS)
………..LEADERSHIP
STAFF

Appoint quality/competent people (fit for purpose)

Training – identify needs – train staff to ensure
effectiveness and efficiency

Competent staff in critical positions –
Engineering/Finance/Corporate/Development/
Protection

Municipal Managers must regard Internal Audit as
their accountability agent
……STAFF continue
Reality:
Not sufficient funds in all spheres of
Government to address ALL expectations

Money/People/Skills – every spheres problem
۪ ۪ ۪ Re-evaluate your organogram:
Deep structures (expensive, not always
effective and efficient)
Flat structures (need good leadership skills)
Matrix structures (any one of the management team can
be the leader, needs a lot of maturity)
SWARTLAND MUNICIPALITY STRUCTURE
Municipal Manager
Protection
Civil
Electrical
Finance
Corporate
EAC
Development
Strategic &
Performance

Flat structure

Certain situations – matrix approach

Internal Auditor vs Municipal Manager
vs External Audit Committee
Internal
Auditor
……..LEADERSHIP continue
IT DEPARTMENT

Develop and improvement of systems

Develop and use dashboards

DASHBOARD
(1)
In your (Governance) face
(2)
(3)
Talks about critical things (if something goes
wrong it will cost you)
One pager
(4)
Automated
(5)
It is in the negative
B: GOVERNANCE
•
Not only to comply, but to improve
•
Risk Management
•
Internal Audit and Audit Committee
•
Fraud and corruption
……….GOVERNANCE
Judge King said: “It is more expensive to
be
legal complaint, to be
delivery complaint.”
In Swartland Municipality, we do not do things
only to comply with legislation, we really try to
effectively implement, to improve service
delivery.
We collectively create an environment that is
conducive to perform and to deliver
What is Performance Alignment all about?
STAKEHOLDER
EXPECTATIONS
STRATEGIC ANALYSIS AND
PLANS
RESULTS
ALIGN THE ORGANISATION FOR
SUSTAINABLE
HIGH LEVELS OF PERFORMANCE
……….GOVERNANCE continue

FIRST STEP
Was to do away with performance bonuses
(Swartland Municipality since 2005/2006)
Developed an Client Service Charter
PMS Contracts for all divisional heads
PMS for Councillors
Creates confidence and trust amongst the
members of the public
Benefits of 0% bonusses
•
•
•
•
Address the real issues
Create a culture of performance
Innovative targets are set
Serious in addressing gaps,and improving
controls.
• Also applicable on Division heads
• Extended to Cllr’s
• Mayor committed to PMS contracts
………..GOVERNANCE
RISK MANAGEMENT

STRATEGIC- and operational risks

Priorities risks (High/Medium/Low)

Develop and implement preventative
and detective controls to mitigate risks
and to bring it within an acceptable
norm
(RISK APPETITE)
Risk profile
Risiko = somtotaal
van L + I
….. RISK MANAGEMENT
Risk Management and control is a daily activity
There are only 4 risk strategies
(1)
(2)
Avoid it
Accept it
(3)
Share it
(4)
Manage it
- Then you are accountable
- Outsource
- PPP’s
- Reduce impact (insure)
- 95% of risks
- Develop controls
Accountability:= Is the sole purpose of PMS
PM is the mechanism for good corporate citizenship
… RISK MANAGEMENT
•
The focus must be on:
GOVERNANCE
RISKS, and
CONTROLS
•
What is the reason for non-compliance?
Bad management/leadership
Bad governance
Napoleon
NAPOLEON
(1) “The General is the Army”
(2) “There are no bad battalions, only
bad officers”
Do you still remember:
“Begin with the end in mind?
Where or what is the “END”
What next?:
(1) Attitude,
(2) Self improvement, and
(3)Leadership development
Why
Searching
for success
DEFINITION OF SUCCESS
*
*
*
• Knowing your purpose in life
• Growing to reach your full potential
• Sowing seeds that benefit others
A: KNOWING YOUR PURPOSE
Our responsibility and our GREATEST joy – is to identify our PURPOSE in life
ASK YOURSELF THE FOLLOWING QUESTIONS?
1
2
3
• What am I searching for?
• Why was I created?
• Do I believe in my potential
WHO SAID SO?
Theodore Roosevelt
“Do what you can, with what you have, where you are”.
When do I/you start?
NOW
“The only way to control our
(local governments) future,
is to create it”