Seite Slide 1 LED Maturity Assessments of Eastern Cape Municipalities: Cacadu, Amathole, Chris Hani Presentation to SALGA EC Economic Development & Development Planning Working Group 13 November 2009 John Lawson, Tim Hadingham

Seite Slide 2 Purpose of LED Maturity Assessments The “LED Maturity Assessment” provides a practical way to rapidly assess (in 3 hours) the state of maturity of a municipality or development organisation in the field of LED.

Seite Slide 3 The Scale: Stages in the Learning Curve 0. Don’t know topic 1. Aware of need to 2. + Trying something 3. + Now knows what to do and how 4. + Now starting to do the right things 5. Consistently performing = Excellence, Best practice The scale is specifically translated for each question, to assist the interviewer to recognise the specific evidence. 0/5 1/5 2/5 3/5 4/5 5/5

Seite Slide 4 Summary of Results: One dot per municipality Excellence

Seite Slide 5 The graph indicates how well municipalities are doing (or not), but how do improve things if you don’t know what root causes are? Which factors are key to determining success? How are the municipalities doing in each of these?

Seite Slide 6 Strengths & weaknesses in key performance areas

Seite Slide 7 About the instrument

Seite Slide 8 LED Maturity Assessment approach The assessment method relies on information gathered by interviewing the chief LED decision makers in a municipality. The belief is that LED success depends ultimately on the way these leaders make decisions. Strategy and planning documents inform these (subsequent) decisions. 2.5 – 3 hour group interview: – LED manager/director – IDP manager – Municipal manager – Head of portfolio committee for economic development – CEO of development agency Personalised and confidential reports for each municipality with recommendations 1 day cross-learning workshop/s – identify who you should emulate to improve

Seite Slide 9 Development of sustained capacity to execute LED Institutional Development Consider LED Capacity beyond individual skills Competencies Performance / Competitiveness Human Resource Development Individual roles Teams / (e.g.LED unit) Municipal LED system Local / Region multi-stakeholder LED system Individual skills, role dependant Functional unit skills Municipal process Integration skills LED process integration across various organisations

Seite Slide 10 LED good practice framework

Know-how & Resources Organisation of Capacity Activities / Functions Improvement Initiatives Social Impact EconomicPerformance Key Sectors & Markets SystemicCompetitiveness

Social Impact EconomicPerformance Key Sectors & Markets SystemicCompetitiveness 3 Stakeholders participate to make rapid and effective LED decisions 1 Govern LED 2 Facilitate LED 4 Stakeholders actively shape locational & competitive advantages (Execute LED initiatives)

Seite Slide Questions Weight 1 Insight and Strategy 100% 1.1 Shared vision and focus10% Social context: Status and trends understood5% LED focus5% 1.2 Understanding the local economy60% A good place for business5% Competitiveness of key sectors10% Key local markets8% Business environment5% Inter-firm effort to improve and cooperate5% Competitive location for key sectors / clusters5% Economic, political and regulatory framework conditions2% Development orientation of local society5% Good place to live5% Good place for the poor to access economic opportunity5% Good for the environment5% 1.3 Strategic decision making30% Reliable planning process / methodology10% Smart selection of interventions10% Alignment to leverage support, power and resources5% Follow-through to implementation5%

Seite Slide 14 2 Ability to Execute100% 2.1 Municipal service delivery proficient20% Utilisation of municipal resources10% Municipal ability to execute10% 2.2 Public- and Private-sector champions implement LED initiatives20% LED results to date5% Process of LED initiative implementation5% Organisation of capacity to implement LED initiatives5% Leveraging more resources for LED implementation5% 2.3 Stakeholders participate and contribute to sound LED decisions20% Results achieved from stakeholder participation to date7% Processes of stakeholder contribution to LED decision making7% Organisation of stakeholder contribution to LED decision making6% 2.4 Facilitate LED20% LED facilitation process8% Organisation of capacity to facilitate LED7% What resources are available for LED facilitation5% 2.5 Governance of LED by business and political leaders20% Results of LED governance5% Process of LED Governance5% Organisation of LED Governance Capacity5% Learning to do LED better5%

1. Local expectations (economic opportunity) 2. Shared vision & focus (growth, jobs, equity, investment) 14. Reliable planning methodology 15. Selection of interventions 16. Alignment to leverage support 17. Follow through to implement 3. Good place for business 11. Good place to live 12. Good place for poor 13. Good for Environment 27. LED facilitation functions 28. LED facilitation organisational capacity 29. LED facilitation resources 24. Results: S/H contribute to decisions 25. Processes of S/H decision- making 26. Organisation of stakeholder decision makers 20. LED Results 21. Process of Implementation22. Organisation of implementation capacity 23. Leverage implement. resources 18. CAPEX informed by LED 32. Results: LED governance 31. Functions: LED Governance 30. Organisation of Governance capacity 33. Learning to do LED better 4. Competitiveness of key sectors 5. Key local markets 6. Business Environment 7. Inter-firm cooperation 8. Locational factors 9. Policy & regul. env 10. Dev. orientation of Society 19. Municipal performance: Services, CAPEX

Seite Slide 16 The Assessment Tool Embodies international good practice Applicable to all LED approaches – outcomes based Holistic and systemic approach Explores full spectrum of cause and effect Determine root causes, within or outside LED units Includes strategic insight AND ability to execute Includes cross-learning workshops to start improvement Standardised scale assessment makes it robust Quick and affordable enough to do annually, to inform the next cycle of government planning

Seite Slide 17 What are some of the benefits? The main benefits include: Creating an awareness of gaps in know-how and opportunities to learn, Creating an awareness of weaknesses in LED approaches that could otherwise take years to recognise (when LED repeatedly fails), Creating an awareness of relative strengths and weaknesses of LED functions at various municipalities, Identifying cases of good practice (in specific topics) to use as examples for others to learn from, Informing LED capacity development programmes, and Monitoring growth in LED maturity (over successive years).

Seite Slide 18 Support required Organise the right persons from your municipality to be at the 2.5 – 3 hour interview, before end November: – LED manager/director – IDP manager – Municipal manager – Head of portfolio committee for economic development – CEO of development agency Utilise the opportunity to broaden LED understanding and support of the municipal leadership

Seite Slide 19 Thank you John Lawson