PERSAL CLEAN-UP PROJECT Presentation to the Standing Committee on Finance & The Portfolio Committee on Public Service & Administration 24 August 2010

PRESENTATION OUTLINE Implementation Methodology Purpose Rationale & Context The Key Problem Replacement vs Clean-up Looking ahead/ Integrated Financial Management System (IFMS) Transitional Phase - Cleaning-Up PERSAL - HR Module of IFMS -Change Management Approach The Clean-Up Strategy Objectives/Outcomes Technical Focus of the Strategy Implementation Methodology Campaign Phase & Timelines Governance Structures Accountability and Monitoring

Purpose of the presentation To present to the Standing Committee on Finance & the Portfolio Committee on Public Service & Administration the strategy on the “Improvement of PERSAL information” project as part of sub-outputs of MPSA Delivery Agreement on Outcome 12 of “Building an effective & efficient development-oriented public service”;

Rationale & Context The outcome based performance approach has highlighted the need for accurate and reliable information; For outcome 12 “An effective & efficient development oriented public service” the Implementation Forum is focusing on Output 3: Business processes, systems, decision rights and accountability management under sub-output 1: PERSAL functionality;

Key Problems There are a number of departments and institutions at the centre of government which are responsible for leading the process of improving the quality of Human Resource Information on PERSAL. These include the Department of Public Service and Administration, National Treasury, Premier’s offices and all Government departments; These initiatives, which these departments and institutions at the centre of government have taken to date, have not been as successful as would have been desired in producing quality of information for planning and decision making ; This situation has led to inconsistent reporting by Provincial and National Departments to oversight bodies such as Parliament;

Key Problems … PERSAL does not always accurately reflect the actual situation within the Public Service, but this does not mean that all information on PERSAL is unreliable; The major cause of inaccurate information can be ascribed to lack of effective and efficient management of the system and data by both national and provincial departments; The major focus has only been on the financial module whilst other critical variables in the system have not been captured and updated; This is because PERSAL has been largely used as a pay-roll system rather than an HR information management system and used for strategic decision making ;

Replacement vs Clean-Up Treasury Notice 7 of 2006 informed departments of the Integrated Financial Management System (IFMS); HR Systems such as PERSAL specifically will be replaced with a centrally provided integrated application Standard Assessment Procedure (SAP) system; Successful implementation of this system requires that information on PERSAL is up-to-date & accurate before it is transferred into the new system; The project will therefore be implemented within an environment where PERSAL is earmarked for replacement by the IFMS HR and Payroll Solution;

Replacement vs Clean-Up It is not cost effective or feasible to invest more into PERSAL functionality considering the imminent replacement of the PERSAL system; In light of the replacement of the HR functionality within PERSAL with the IFMS HR System, the aim is to facilitate the transfer of clean data to the IFMS; In parallel to the development and implementation of the HR system, SITA has commenced with the development of a new payroll system that will eventually replace PERSAL. Once it is completed, the payroll system will be closely integrated with the HR system.

Looking Ahead/ IFMS In light of the replacement of the HR functionality within PERSAL with the IFMS HR System, the aim is to facilitate the transfer of clean data to the IFMS. The objectives of implementing the IFMS HR system are: Improving the capacity of the Public Service to manage its human capital; Harmonising and aligning the implementation of Public Service HR management policies and processes; Supporting monitoring and evaluation; Improving HR service delivery by automating and standardising processes; Improving the quality of, and access to, HR management information which should lead to better planning and decision-making; and Finally, integrating with the broader IFMS programme and contributing to the achievement of the relevant IFMS objectives such as enhancing the integrity and effectiveness of expenditure management and performance reporting in order to ensure effective service delivery across government institutions.

Looking Ahead/ IFMS The implementation of Integrated Financial Management System : HR will have the potential to solve some of the data quality issues. Among the reasons being: The automation of the HR processes such as leave applications will eliminate the need for manual capturing which should prevent the data capturing errors; Users and managers will have direct access to the system (and their own data and the data of their components). This will assist in identifying and correcting data errors; More field will be made mandatory and it will not be possible to continue with processes if fields are not completed

Transitional Phase Cleaning Up PERSAL HR Module of Future IFMS PERSAL Clean-Up will continue until such time that all Departments have successfully transferred the cleaned up data to the IFMS; HR Module of Future IFMS It is envisaged that the joint implementation of the HR and payroll systems in the rest of the Public Service will commence April 2012. It is projected that the roll out to the entire Public Service will take place over a three to five year period The execution of the project started in April 2009; It is planned that the DPSA will go-live with the HR system in November 2010. The DoE FS will follow in the second half of 2011. It is projected that the payroll system will go-live in DPSA in December 2011 and in April 2012 in Department of Education in the Free State.  It is envisaged that the joint implementation of the HR and payroll systems in the rest of the Public Service will commence April 2012. It is projected that the roll out to the entire Public Service will take place over a three to five year period.

Transitional Phase… Change Management Approach Ensure that change management aspects of the strategy addresses to changes business processes, systems, decision rights and accountability management; Improve the culture of information management and utilisation for planning & decision making in the public service; Create awareness of the project and the benefits associated thereof; and to Endorse a culture of doing things differently.

THE PERSAL CLEAN -UP STRATEGY

The Clean-up Strategy Objective Scope of the strategy Target The objective of the strategy is to enhance the management of systems, the cleaning of PERSAL information, maintenance of the information to ensure continuous quality and use of the information in management decisions. Scope of the strategy Cleanup projects Maintenance of system and data Usage of information in decision making Target National and Provincial departments.

The Technical Focus Identification of crucial and strategic information Crucial and strategic information has been identified in the National Minimum Information Requirements, this will form the basis of the information to be cleaned as phase 1 of the strategy. The information includes, among others, the following: Essential biographical information for all employees, Current rank and salary information for all employees, Education, training and development information for all employees, Career incidents within the public service Disciplinary matters Leave, Organisational and geographical information All posts on the fixed establishment

The Technical Focus Data quality analysis Assurance on data quality, collection, collation, verification and analysis will be performed in partnership with Stats SA with set of recommendations to improve; as well as Dissemination of the quality assessment to national and provincial cabinet and departments Development of the data management/cleanup methodologies and tools Following guides and methodologies will be developed: PERSAL cleanup methodology; PERSAL management and implementation guide; and Guide on the use of management information.

The Technical Focus… Cleanup projects In preparation for the implementation of the IFMS, one such project include the Western Cape Provincial Department of the Premier and Treasury, which have undertaken a joint project to verify the accuracy of all data on PERSAL, in phases; Phase 1: to deal with Newly appointed employees Departments required to complete 75 compulsory fields on PERSAL for newly appointed employees (including contract renewals of staff who are re-appointed with immediate effect.

The Technical Focus… Cleanup projects… Phase 2 Development of a Verification Tool (HRDVS). Centre for e-Innovation together with Treasury and the CD: HRM developed a verification tool to facilitate the updating of information of current employees; Preparation: Employees will be required to complete the compulsory fields as found on the HRDVS.

The Technical Focus… Cleanup projects… Preparation…: The system will go live in August/September 2010 and employees will be able to access the system to update/amend and capture their information; Departments are to ensure that all current employees collect information and relevant documents to facilitate the process before the system is live.

The Technical Focus… Cleanup projects… Preparation… Once all data has been captured, updated/amended, all relevant documents are submitted to the HR Components for verification; The verification process will ensure that the captured, updated/amended information on the system is correctly matched with the relevant documentation. It is envisaged that all clean-up projects will follow the same methodology

The Technical Focus… Dissemination & Use of the information  Distribution of the MS Excel based summarised departmental report to top management based on the analysis of PERSAL information; Provision of exception reports and progress based on data quality assessment.

The Technical Focus… Skills development The following training material will be developed with a focus on management within departments: Guide on the management and maintenance of PERSAL; Guide on the utilisation of management information.  Training will be focussed on the following groups: PERSAL users and administrators; PERSAL Managers; and Users of PERSAL information

Implementation Methodology The Persal Clean- Up Strategy consist of five Key Pillars namely: Technical Focus; The Campaign (Includes Communication & Advocacy Process) Implementation Approach Accountability & Monitoring; Implementation Support to Departments The strategy seeks to provide both technical and administrative assistance to departments in the implementation of the project; whilst Finalization of Guide on Management of System and use of Management Information; Provision of tools to assist Data Clean-up

Campaign Phases & Timelines Communication and Advocacy : August – October 2010 The project is championed by the Deputy Minister for Department of Public Service & Administration; A high level Implementation Plan will be rolled out to all Premiers’ offices and departments as part of initial awareness raising campaign; Senior and Executive Management of departments will be targeted for the 1st presentation of the project for buy-in and support; All stakeholders will be identified and collaboration will be required; and A collective agreement with stakeholders in taking the project forward will be entered into.

Campaign Phases & Timelines This project is aimed at ensuring a principle of participation by all relevant stakeholders as possible; Introductory Letters to Premier’s offices and Departments calling for support need to be prepared as a matter of urgency ; as well as Project Brief to serve as background document to the letters will be circulated to all

GOVERNANCE STRUCTURES Steering Committee with set timelines and schedule of meetings; Establishment of a National Forum on PERSAL; Collaboration with G&A Implementation Forum on output 2: Human Resources The Steering Committee consist of the following representatives: DPSA – As the policy owner Governance HRMD PALAMA – Capacity development in the Public Service NT – System owner SITA – Infrastructure owner Stats SA – Data experts Provincial HR committees under the leadership of Premier’s Offices; PME, Presidency – Progress Reports

Accountability & Monitoring Monitoring implementation of the Project  6 monthly analysis to be performed to determine the change in the quality of the information; Departmental progress against plans and data quality assessment will be assessed by the Steering Committee; 6 monthly changes in the status of exception reports to be monitored on a six monthly basis; Progress reports distributed to identified structures; Site visits to poor and well performing departments, Auditor General and Public Service Commission reports utilised for verification, Institutionalisation of annual data verification process, Discussion & Dissemination of Steering & National Project Forum reports for follow-up and intervention

Accountability & Monitoring… Enforcement of Compliance   Compliance will be enforced through the following: Reporting to oversight bodies on a regular basis, Notification of non-compliance to Executive Authority, Provisioning of compliance ratings to Performance, Monitoring & Evaluation Ministry within the Presidency Strengthening accountability The following mechanisms be explored: Integration of data quality into DG performance agreement, Integration of data quality into the Executive Authority’s delivery agreements, Reporting of data quality analysis to National and Provincial Cabinet, including Portfolio Committees & Parliament, and To request Accountant General to perform audits on data quality of selected fields.

Recommendations It is recommended that the Standing Committee on Finance & the Portfolio Committee on Public Service & Administration note: The contents of the Strategy; The Campaign Phase and Timelines; The Technical Focus; Implementation Methodology Accountability & Monitoring Approach as well as the

Thank you!