1. CAN EFFECTIVE PERFORMANCE MANAGEMENT SYSTEM ALONE HELPS IMPROVE SERVICE DELIVERY? Institute of Municipal Finance Officers & Related Professions Cherèl Jansen van Rensburg IMASA

2. Legislation regulating Performance Management Definition of Performance Management  Performance Management is a strategic approach to management, which equips leaders, managers, workers and stakeholders at different levels with a set of tools and technique to regularly plan, continuously monitor, periodically measure and review performance of the organization in terms of indicators and targets for efficiency and impact. Benefits for organization, employees and stakeholders  Provide better insight in the job and clarify the duties and responsibilities  Implement the IDP and Budget  Provide services in an efficient, effective and economic manner Municipal Accounting Cycle  Chapter 11 of the MFMA sets out a framework to ensure the local accountability of a council.  Accountability is an obligation to answer to someone with authority for the execution of one’s assigned responsibilities Legislation and objectives ensuring effective Performance Management INTRODUCTION Institute of Municipal Finance Officers & Related Professions

3. BUDGET In-Year Reporting Annual Financial Statements SDBIP Annual Report Standard Charts of Accounts (SCOA) IDP 5 Year Strategy 1 Year Implementation 3 Year Budget MPAC Report Monitoring MUNICIPAL ACCOUNTING CYCLE Focus of MBRR NextProjectNextProject INTRODUCTION Institute of Municipal Finance Officers & Related Professions Municipal Accounting Cycle

4. Objectives ensuring effective Performance Management INTRODUCTION Desired outcomes  Accountable Council which is responsive to the needs of its clients  Satisfied community with positive relationship Clarify roles and responsibilities  Who is responsible for what and when SDBIP  It is a plan that converts the IDP and budget into measurable criteria on how, where and when the strategies, objectives and normal business processes of the municipality will be implemented  It allocates responsibility to directorates to deliver the services in terms of the IDP and budget Performance monitoring and evaluation  Conduct 4 reviews / assessments  Evaluation of the validity and suitability of the KPI’s and recommending any changes Performance reporting Institute of Municipal Finance Officers & Related Professions

5. Implementing legislation DEVELOPING PERFORMANCE MANAGEMENT Institute of Municipal Finance Officers & Related Professions The fundamental goal of performance management is to promote and improve employee effectiveness and service delivery It is a continuous process where managers and employees work together to plan, monitor and review an employee’s work objectives or goals and his or her overall contribution to the organization. The performance of the municipality is then measured against specific standards and priorities, which have been mutually developed and agreed upon during the IDP process.

6. Why is reporting and monitoring important PERFORMANCE MONITORING AND REPORTING Institute of Municipal Finance Officers & Related Professions Monitoring performance entails continually checking an employee’s performance against the responsibilities and objectives that have been agreed upon Monitoring performance is not an event, it is rather an ongoing process that happens continuously after performance objectives and related standards are agreed to The type and quality of the information is therefore critical to the integrity of PMS, which lends credibility to the performance Management system Reporting requires that the municipality takes the priorities of the organization, its performance objectives, indicators, targets, measurements and analysis, and present this information in a simple and accessible format, relevant and useful to the specific target group, for review.

7. The role of evaluation PERFORMANCE EVALUATION Institute of Municipal Finance Officers & Related Professions The Municipal Systems Act requires the municipality to annually evaluate its performance management system To be conducted after the full cycle of the annual review is complete Evaluation should assess  The adherence of the performance management system to the Municipal Systems Act.  The fulfilment of the objectives for a performance management system.  The adherence of the performance management system to the objectives and principles.  Opportunities for improvement and a proposed action plan  When an how to deal with poor performance – consequence management

8. Why measure Performance? PERFORMANCE MEASURING Everyone is measuring performance What gets measured gets done…. to what extend? Because measuring performance is good…? What is the purpose of performance measures? What is expected when conducting performance measures Enables officials to hold management and municipality accountable Enables the public to hold officials and municipality accountable Identify areas for improvement To be used in budget formulation and resource allocation To recognize good performance There is no single performance measure Institute of Municipal Finance Officers & Related Professions

9. The 8 pillars of Performance measures PERFORMANCE MEASURING Evaluate  Clear understanding of policies and objective  Comparison – operation and practices – service delivery  Provides important output and outcome information Control  Are employees doing the right thing  Actions and behavior  Who has and has not complied  Is the services promised delivered Budget  Assist with budget allocations  Allows results-oriented budgeting  Budgets are crude tools  Reliable cost data for the denominator Institute of Municipal Finance Officers & Related Professions

10. The 8 pillars of Performance measures PERFORMANCE MEASURING Motivate  Establishing performance goals  Give people something they can do  Municipalities produce outputs  Outcome targets will force officials to think outside the box Promote  Municipalities need public’s support and trust  Community has the rights to know about successes and failures  Win recognition inside and outside the organization  An informed community is a happy community Celebrate  Commemorate their accomplishments  Sense of personal accomplishment and self-worth  Celebration should be combined with learning Institute of Municipal Finance Officers & Related Professions

11. The 8 pillars of Performance measures PERFORMANCE MEASURING Learn  Learning is more than evaluation  What is working and what isn't  What is contributing to the municipality's excellence  What must be done to improve poor performance Improve  Improvement requires attention to the feedback  Challenge of learning is both intellectual and operational  Lessons postulated from the learning have been implemented Institute of Municipal Finance Officers & Related Professions PERFORMANCE MEASUREMENT IS NOT AN END IN ITSELF

12. Performance Management in a Nutshell CONCLUSION Institute of Municipal Finance Officers & Related Professions SERVICE DELIVERY

13. How will Performance Management improve service delivery CONCLUSION Institute of Municipal Finance Officers & Related Professions The PMS does not operate in isolation as it is a systems-wide intervention which ensures control in the ultimate achievement of vision/mission, strategic objectives and goals of the municipality. It is important that the municipality takes ownership and “grows” into its own PMS with the help of experts by  Comply with legislation  Effective monitoring and evaluation  Informed and dedicated workforce – capacitating  Face Performance Management challenges

14. How will Performance Management improve service delivery CONCLUSION Institute of Municipal Finance Officers & Related Professions Performance Management is dynamic and will change and develop over time to reflect the unique features of the municipality After all, Performance Management is everybody’s business An effective Performance Management System can therefore alone helps improve service delivery!?

15. Thank you / Baie dankie / Ke a Leboga! Institute of Municipal Finance Officers & Related Professions IMASA