1. " The Importance of RM in strategic in sustainable service delivery How to avoid Service Delivery Protest ” Institute of Municipal Finance Officers & Related Professions Sidwell Mofokeng Vice President IMFO GMFIMFO, ACGP,ACFE, CRP

2. Why integrate risk into strategic planning and embrace ERM? ERM integration The organization will be able to identify and evaluate how a broad range of possible events and scenarios will impact its strategy execution, including the ultimate impact on the valuation of the business. the organization will be best positioned to create and enhance sustainable value. Institute of Municipal Finance Officers & Related Professions

3. Elements of Strategic Planning 1.Communication Strategy – The development of a communication strategy is essential for the effective development and implementation of a strategic plan. In the communications strategy, you should determine who will be involved in the planning process, how they will be involved and what is being communicated to whom on the staff. 2. Strategic Planning Task Force – The development of a core team of organizational leaders is mandatory in the effective creation of a strategic plan. Each task force member should represent a key business area or department of the organization to ensure the plan has organization wide input and buy-in. The task force meets regularly with clearly defined deliverables to be presented at each meeting. Institute of Municipal Finance Officers & Related Professions

4. Elements of Strategic Planning 3. Vision Statement – an organization’s vision statement is simply their roadmap for the future. The direction of the organization should be broad to include all areas of impact but narrow enough to clearly define a path. 4. Mission Statement – an organization’s mission is a definition of whom and what they are.Often mission statements include core goals and values of the organization. Institute of Municipal Finance Officers & Related Professions

5. Elements of Strategic Planning 5. Values – values are the organization’s fundamental beliefs in how they operate. Values can provide a guideline for management and staff for acceptable organizational behavior. Often values relate to the organization’s organizational culture. 6. Goals – goals are broad based strategies needed to achieve your organization’s mission. 7. Objectives – objectives are specific, measurable, action oriented, realistic and time bound strategies that achieve the organization’s goals and vision. Institute of Municipal Finance Officers & Related Professions

6. Elements of Strategic Planning 8. Tasks – tasks are specific actionable events that are assigned to individuals/departments to achieve. They, too, should be specific, measurable and time bound. 9. Implementation Strategy – Once the plan has been outlined, a tactical strategy is built that prioritizes initiatives and aligns resources. The implementation strategy pulls all the plan pieces together to ensure collectively there are no missing pieces and that the plan is feasible. As a part of the implementation strategy, accountability measures are put in place to ensure implementation takes place. 10. Monitoring of Strategic Plan – during implementation of a strategic plan, it is critical to monitor the success and challenges of planning assumptions and initiatives. ers & Related Professions

7. Key Causes of Strategic Plan and Risk Failures Poor Governance and “ Tone at the top” Effective governance and tone at the top drive the transparency, openness and commitment to continuous improvement that is needed. Leadership failure will almost always undermine even the strongest risk management capabilities. Not understanding the environment or focusing on results. Planning teams must pay attention to changes in the business environment, set meaningful priorities, and understand the need to pursue results. Institute of Municipal Finance Officers & Related Professions

8. Key Causes of Strategic Plan Failures Partial commitment. Leaders must be fully committed and fully understand how a strategic plan can improve their enterprise. Without this knowledge, it’s tough to stay committed to the process. Not having the right people involved. Those charged with executing the plan should be involved from the onset. Those involved in creating the plan will be committed to seeing it through execution. Institute of Municipal Finance Officers & Related Professions

9. Key Causes of Strategic Plan Failures Writing the plan and putting it on the shelf. This is as bad as not writing a plan at all. If a plan is to be an effective management tool, it must be used and reviewed continually. Unwillingness or inability to change. Your company and your strategic plan must be nimble and able to adapt as market conditions change. Having the wrong people in leadership positions. Management must be willing to make the tough decisions to ensure the right individuals are in the right leadership positions. The “right” individuals include those who will advocate for and champion the strategic plan and keep the company on track. Institute of Municipal Finance Officers & Related Professions

10. Deployment of ERM in Strategic Planning Enterprise Risk Management Seeks to maximize value when setting goals Find an optimal balance between performance goals and targets to related risks ERM also considers how one strategic initiative might introduce risks that are counterproductive to goals associated with another strategy ERM may reveal areas where the organization is being too risk averse or ineffectively responding to some of their risks Institute of Municipal Finance Officers & Related Professions

11. Benefits of ERM in Strategic Planning Enterprise Risk Management Improve Ability to Meet Strategic Goals Increase Management Accountability Increase Profitability & Sustainability Enhance Decision Making Reduce Instability Break Down Business Silos Develop Business Continuity Institute of Municipal Finance Officers & Related Professions

12. Management responsibility ERM Strategic Planning Institute of Municipal Finance Officers & Related Professions Strengthening the overall oversight of the enterprise’s risk management processes. Reassessing the weaknesses in existing risk management processes. Enhancing the accuracy of risk management analysis to the company’s strategic setting activities. Adding formal risk discussions to their agendas on a regular basis.

13. Causes of service delivery protest Uncoordinated planning at National and Provincial Level Miss alignment of strategic IDP, SDBIP Continuous budget adjustment Equitable share decline Grant forfeiture due to roll overs Supply chain manipulation, ( i.e advertising of tenders) Poor reporting on the annual report Fiscal dumping Institute of Municipal Finance Officers & Related Professions

14. The missing Link Considering risk during the strategy planning and strategy execution process is important because it creates ability for the organization to seize risk opportunities with the potential to increase returns for the organizations or identify areas where it is too risk averse. If risks are ignored in strategy, risk opportunities may be overlooked. This will ensure that from manifesto to development IDP there is proper alignment in terms of service delivery objectives Institute of Municipal Finance Officers & Related Professions

15. CONCLUSION Considering risk during the strategy planning and strategy execution process is important because it creates ability for the organization to seize risk opportunities with the potential to increase returns for the organizations or identify areas where it is too risk averse. If risks are ignored in strategy, risk opportunities may be overlooked. Institute of Municipal Finance Officers & Related Professions

16. Thank You! Institute of Municipal Finance Officers & Related Professions