1. How did Swartland proceed from a qualified audit in 2005/06 to achieve a CLEAN audit in 2010/11? Swartland 17 October 2013 SALGA Western Cape: Provincial Members Assembly

2. International overview pa ge 2 Poverty in stead of Prosperity Failure in stead of Success War in stead of Peace Understanding Leadership WHY?

3. 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

4. MOORREESBURG MALMESBURY KORINGBERG DARLING RIEBEEK WES / KASTEEL YZERFONTEIN 1. Die Swartland Munisipale Gebied 1. Swartland Municipal Area CAPE TOWN KAAPSTAD KALBASKRAAL

5. 1. Introduction Where are we?

7. 20012011 Annual Growth Black African7 49920 80510.7% Coloured52 16073 7533.5% Indian or Asian2975857.0% White12 16017 7803.9% Other0838- TOTAL SWARTLAND72 116113 7624.7% West Coast District282 673391 7663.3% Population growth

8. 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

9. 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. Population growth

10. Spending of Capex 2010/11: 96% 2011/12: 108% 2012/13: 100 Why am I telling you this? How did SM proceed from a qualified report in 2005/2006 Unqualified with other matters 2006/2007 2007/2008 2008/2009 2009/2010 Clean audit in 2010/2011 Clean audit in 2011/2012 Clean audit in 2012/2013 To prove to you that Swartland has the ability to execute EEEEEEEE = Energy = Energise = Edge = Execute Part of attitude Since 2005, eight consecutive years of 100% spending of MIG

11. 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

12. A: LEADERSHIP  Begin with the end in mind  Leadership styles and quality 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

13. …. cont. LEADERSHIP Ethical business practices Implement and develop systems (automate) Oversight by management Staff (prosperity partnership and work place climate change) and IT

14. B: GOVERNANCE Not only to comply, but to improve Risk Management Internal Audit and Audit Committee Fraud and corruption

15. Understanding-Based Leadership® pa ge 15 Leadership Qualities Techniques Styles Leaders must be able to communicat e and explain - i.e. understand themselves Problems/ Challenges Past Leadership Present/Future Informed Understand Involved Share Talents/ Resources Goals SMARTSMART

16. pa ge 16 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

17. Types of leaders pa ge 17 Shop/Shaft Stewards Politicians Appointed Self Appointed InformalElected Inherited Business Army Chiefs Kings

18. LEADERSHIP AND DECISION STYLES pa ge 18 X X X X 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 AB Synergy 4 X 1 = 5

19. Leadership Technique GOAL WDWHW PERFORMANCEEVALUATION √ Recognition X Plan OBSTACLES

20. LEADERSHIP QUALITIES (CONTINUED) pa ge 20 Communication Respect Relations There are no bad battalions only bad officers Napoleon Leadership Problems/ Challenges Discipline Communication Respect Relations Discipline XY Leadership Problems/ Challenges Negative outside influences The bad workman always blames his tools. A bad leader always blames his followers.

21. THE LEVEL OF SUSTAINABLE PERFORMANCE IS DETERMINED BY LEADERS pa ge 21 OPERATIONAL FOCUS ORGANISATIONAL FOCUS LOW HIGH SUSTAINABLE VALUE SHORT TERM RESULTS DEAD FISH IN THE WATER COSY ENVIRONMENT

22. A: Leadership Begin with the end in mind Where is the beginning? In my case 1 August 2006. The desire to be successful What is success? How does it feel? How does it taste? Is it tangible? Will success ever be successful ??? Will come back to this at the END of presentation

23. 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 … Leadership continue

24. 1. Rules for interaction

25. PROPOSED RULES page 25 OUR Holistic perspective 4 Never to hurt, only to learn 5 Participate as equals: Workshop status depends on contribution 6 I shall always try to be completely objective 7 Systematic & logic discussion 3 Rationally with dignity: 2 No subjects are taboo 1 Pascal X Parking Bay Historic perspective

26. 2.VALUE SYSTEM  Mutual Respect  Positive Attitude  Honesty and Integrity  Self-discipline  Solidarity and Commitment  Support  Work in harmony

27. 3.Leadership Philosophy  Through participation, understanding and purposefulness we create an environment in which staff flourish and deliver outstanding and sustainable services

28. 4. INVOCOM methodology INVOCOM ® Employee Invo lvement through Com munication for Com mitment and In novation

29. ….. 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 !*

30. …………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  Make the IDP everybody’s business  3 years ago 50% of our goals did not meet the SMART principle  # Baseline info, of utmost importance (world wide only 13% of strategic plans are executed/ implemented)

31. ……….. 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 & Auditor- General findings – follow-up and action (The above, part of Municipal Managers PMS)

32. ……….. 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

33. ……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)

34. SWARTLAND MUNICIPALITY STRUCTURE Municipal Manager ProtectionCivilElectricalFinanceCorporate Development Strategic & Performance EAC Internal Auditor  Flat structure  Certain situations – matrix approach  Internal Auditor vs Municipal Manager vs External Audit Committee

35. ……..LEADERSHIP continue IT DEPARTMENT  Develop and improvement of systems  Develop and use dashboards  DASHBOARD ( 1)In your (Governance) face ( 2)Talks about critical things (if something goes wrong it will cost you) (3)One pager (4)Automated (5)It is in the negative

36. B: GOVERNANCE Not only to comply, but to improve Risk Management Internal Audit and Audit Committee Fraud and corruption

37. ……….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

38. STAKEHOLDER EXPECTATIONS RESULTS STRATEGIC ANALYSIS AND PLANS ALIGN THE ORGANISATION FOR SUSTAINABLE HIGH LEVELS OF PERFORMANCE What is Performance Alignment all about?

39.  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 ……….GOVERNANCE continue

41. ………..GOVERNANCE RISK MANAGEMENT  STRATEGIC- and operational ris ks  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)

42. Risk profile Risiko = somtotaal van L + I

43. ….. RISK MANAGEMENT Risk Management and control is a daily activity There are only 4 risk strategies (1)Avoid it (2)Accept it- Then you are accountable (3)Share it- Outsource - PPP’s - Reduce impact (insure ) (4)Manage it- 95% of risks - Develop controls Accountability:= Is the sole purpose of PMS PM is the mechanism for good corporate citizenship

44. … RISK MANAGEMENT The focus must be on: GOVERNANCE RISKS, and CONTROLS What is the reason for non-compliance? Bad management/leadership Bad governance Napoleon

45. NAPOLEON (1)“The General is the Army” (2)“There are no bad battalions, only bad officers”

46. What next?: (1) Attitude, (2) Self improvement, and (3)Leadership development Why Do you still remember: “Begin with the end in mind? Searching for success Where or what is the “END”

47. DEFINITION OF SUCCESS * Knowing your purpose in life * Growing to reach your full potential * Sowing seeds that benefit others

48. A: KNOWING YOUR PURPOSE Our responsibility and our GREATEST joy – is to identify our PURPOSE in life ASK YOURSELF THE FOLLOWING QUESTIONS? 1 What am I searching for? 2 Why was I created? 3 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

49. “The only way to control our (local governments) future, is to create it”