1. PRESENTATION TITLE Presented by: Name Surname Directorate Date Water Risks in South Africa, with a particular focus on the “Business Health” of Municipal Water Services Presented by Allestair Wensley – Water & Sanitation Grant Mackintosh - Emanti Management (Pty) Ltd

2. Purpose of Presentation To present perspectives on municipal water and sanitation services in South Africa To introduce an initiative by Department of Water and Sanitation to determine the “Business Health” of municipal Water Services Authorities To introduce a related high level Priority Action Plan process which is being used to to address gaps and reduce risks \

3. The “Water Services Business” Source-to-Tap-to-Source

4.  An essential service to ensure quality of life, health, social & economic development & environmental sustainability  It is the business of manufacturing and supplying a product: potable water and sanitation services  It is a non-stop never ending business (24/7/365)  It is about infrastructure plus operations & maintenance  High risk area in terms of consumer frustration  Water comes at a cost: viability & affordability challenges Understanding the Water Services Business

5. What Does Water Services Success Look Like?

6. Poor water services planning & prioritization Aging water infrastructure; increasing investment needs Changing workforce with rising lack of technical skills Poor economic conditions, with water services provision often a “bankrupt business” Adequacy of water resources; climate change impact Shifting patterns in water demand; rising energy costs Competing political priorities (LG elections) Challenges to Water Services Delivery

7. Navigating to Effective, Efficient, Sustainable Water Services can be a challenging maze

9. Are we missing any “quick wins”?

10. Determines Health Status of 16 Key Water Services Business Attributes Via 5 Essence Questions per Key Functional Business Attribute Output indicates business health/vulnerability for each Business Attribute Output reflects forward indication of ability to perform Provides strategic flags of concern (vs. deep technical detail e.g. Regulatory) Directs Municipal intervention and improvement Rolled up Vulnerability Index indicates overall Business Health status of WSA Self-Assessment, reviewed by DWS Guiding the Solution: Determine Business Health / Address Business Vulnerability via Municipal Strategic Self-Assessment (MuSSA)

11. b MuSSA Output “flagging” Business Vulnerabilities

12. Staff Skill Level and Technical Staff Capacity have improved Operations & Maintenance and Financial Management have improved Water Resource Management and Water Service Planning have declined MuSSA: tracking Vulnerability trends

13. Vulnerability Index: SA 2013/14

14. 2. Practical Steps to improve Water Services Business Health

15.  BUT identifying vulnerabilities is not enough!  A complimentary facilitated “priority planning process” with agreed actions is necessary  This is what we call the Municipal Priority Action Plan  The plan is arrived at via an “organisational renewal” exercise involving all key municipal departments and key stakeholders Municipal Priority Action Plan (MPAP)

16. Co-creating a Solution to Reliable Water Services A DYNAMIC AND CREATIVE PROCESS OF COLLABORATIVE WITH:

17. MPAP: Avoiding “silo” limitations to priority decision making Accurate MuSSA Effective Plan to resolve vulnerabilities HRTechnical Financial

18. MPAP: Overcoming “glass ceilings” Platform for support/Ceiling for Failure TechnicalServicesHRServicesFinancialServices Mayor Municipal Manager Manager

19. 1.Confirm Baseline Vulnerabilities via MuSSA 2.Jointly Resolve Key Issues through an MPAP between Municipality, DWS & other key role players (incl. supporting strategies) 3.Assign Actions and Resources to resolve key issues within MPAP (WHAT, WHO,WHEN, COST) 4.All parties Monitor, Evaluate, Communicate progress, including MuSSA update MuSSA / MPAP Cycle MPAP encourages aligned decision-making follows the business development life cycle

20. MPAP Process MuSSA Update MuSSA Confirmation Workshop Final MPAP inclusion into Master Plan Council Endorsement WSA MPAP Implementation MuSSA DWS, SALGA & Sector Supports Prioritised Actions DWS, SALGA & Sector Supports Prioritised Actions MPAP Drafting Workshop Municipal Management Signoff Municipality, DWS, SALGA & Sector Jointly determines priorities and associated Strategy Municipality, DWS, SALGA & Sector Jointly determines priorities and associated Strategy

21. Proven Benefits of Co-Creating Strategic Action Plans Reduced Risk to Solutions Improved Quality of Solutions Improved trust Deeper “group” knowledge of needs CO- CREATION

22. Alignment with Municipal Planning Processes

23. Putting People First Service Delivery Good Governance Sound Financial Management Building Capable Local Government Institutions MUSSA Municipal Strategic Self Assessment Water Services Planning Management Skill Level (Technical) Staff Skill Levels (Technical) Technical Staff Capacity (Numbers) Water Resource Management (WRM) Drinking Water Safety & Blue Drop Status Wastewater/Environmental Safety & Green Drop Status Infrastructure Asset Management (IAM) Operation & Maintenance of Assets Financial Management Revenue Collection Information Management Organisational Performance Monitoring Water Service Quality Customer Care (CRM) Water Conservation & Demand Management (WCDM)

24. Supporting B2B regarding Water & Sanitation

25. In Conclusion Many of our Water Services Businesses are Vulnerable / have key areas of business vulnerability The MuSSA / MPAP process has been found to make a great impact in terms of readily identifying and communicating key Vulnerabilities to the full range of appointed and elected officials, and stakeholders “A problem described is half solved”: high level planning tool assists all stakeholders to put in place a practical action plan The MuSSA / MPAP assists national government (DWS, SALGA, NT, CoGTA etc) to provide co-ordinated support Business Health / Vulnerability can be benchmarked and tracked at local, provincial and national levels