PERFORMANCE MONITORING AND EVALUATION

Transcription

1 PERFORMANCE MONITORING AND EVALUATION LEARNING EXCHANGE PROGRAM Presented by NIRMALA GOVENDER

2 Contents Overview Organisational Performance Back to Basics reporting Individual Performance Annual Report

3 Overview Performance Management is a legislative requirement in terms of chapter 6 of the Municipal Systems Act. PME Key Mechanism to monitor, evaluate, review and report on the Implementation of the Municipalities objectives outlined in the Integrated Development Plan If we are to improve our performance we have to reflect on what we are doing, what we are achieving against what we set out to achieve, and why deviations are occurring, or unexpected results occurring. We cannot advance without making mistakes on the way, but we must evaluate and learn from our successes and our mistakes. Without this we cannot improve. Collins Chabane

4 Legislation and Policies The Constitution of the Republic of South Africa Municipal Systems Act (2000) Municipal Finance Management Act (MFMA) Municipal Structures Act Local Government White Paper (1998) Regulations of the Systems Act Performance Frameworks Government Wide M & E Framework

5 Why PME is important Monitoring, evaluation and reviewing constitutes a process to assess performance of the municipality. Monitoring and evaluation are crucial to: Ensure the implementation of plans and projects to ensure service delivery; Measure the development impact of plans/projects; and ensure the efficient utilisation of resources. Measures performance at an organisational and individual level KPI s and performance targets will be used as a yard stick to measure performance and to rectify shortcomings. Monitoring is a continuous activity to measure KPI s and performance targets. It will provide project information to management. Monitoring includes the systematic collecting of information to enable management to evaluate whether project implementation is proceeding as it should.

6 The Power of Measuring Results If you do not measure results, If you can not see success, If you can not reward success, If you can not see success, If you can not recognise failure, If you can demonstrate results, Adapted from Osborne and Gaebler, you can not tell success from failure you can not reward it you are probably rewarding failure you can not learn from it you can not correct it you can win public support Reinventing Government, 1992

7 ORGANISATIONAL PERFORMANCE MONITORING

8 BALANCED SCORECARD INTEGRATED REPORT CUSTOMER Looks at the organization through the eyes of its customers. INTERNAL PROCESSES Reports on the efficiency of internal processes and procedures. FINANCIAL Monitors the organization s financial performance, which indicates whether the strategy, implementation and execution are contributing to the bottom line improvement. LEARNING AND GROWTH Reflects the commitment of the organization to grow and adapt to change. (Kaplan and Norton, 1992)

9 National KPA BSC 8 Point Plan Municipal Institutional Development and Transformation Learning and Growth Creating a Platform for Growth, Empowerment and Skills Development Basic Service Delivery Customer Develop and Sustain the Spatial, Natural and Built Environment Creating a Quality Living Environment Fostering a Socially Equitable Environment Local Economic Development (LED) Financial Municipal Financial Financial Viability and Management Good Governance and Internal and Developing a Prosperous, Diverse Economy and Employment Creation Embracing Cultural Diversity, Arts and Heritage Financially Accountable and Sustainable City Good Governance and Responsive Local

10 ORGANISATIONAL PERFORMANCE IDP Organisational Scorecard SDBIP (BUDGET) Business Plans Project Plans INDIVIDUAL PERFORMANCE CITY MANAGER DEPUTY CITY MANAGER HEADS DEPUTY HEADS/ SENIOR MANAGERS MANAGERS SUPERVIS ORS OTHER STAFF

11 National Treasury (2007)

12 RESULTS DRIVEN PERFORMANCE IMPACT WHAT WE AIM TO CHANGE OUTCOME WHAT WE WISH TO ACHIEVE OUTPUT WHAT WE PRODUCE OR DELIVER ACTIVITIES WHAT WE DO INPUTS WHAT WE USE TO DO THE WORK ECONOMIC GROWTH/ WEALTH CREATION JOB CREATION/SERVICE DELIVERY COMPLETION OF PROJECTS PROJECTS/PROGRAMMES BUDGET/RESOURCES

13 Key Performan ce Indicator What is it that will be measured The number of consumer units provided with access to a FREE basic level of potable WATER Annual Target 2015/16 Annual target for the financial year Scorecard Target as at 31 st March 2016 Accumulat ed target to date Status as at 31 March 2016 What has been achieved to date Achieved/ Not achieved Has the target been achieved? Performan ce Indication A flag of whether the target has been met Reasons for nonperformanc e Achieved J N/A Availability of Vehicles 95% 95% 92% Not Delays in the L delivery of achieved spare parts. Measures taken to improve performanc e What is being done to improve performance where the target has not been met Implementation of 10 spare part contracts with the Original Equipment Manufacturers (OEM).

14 SDBIP Plan: 7 Plan Owner: City Manager Operating Budget: R10 m for entire Plan Capital Budget: R103.2 m for entire Plan Programme Programme Driver Project Unit Of Mea sure Annual Target Q1 - Sep Actual for Q1 Reasons for Non- Performance Measures Taken to Improve Managing the Informal Economy John Smith Provide support to the informal economy by upgrading Brookdale Market % Delays in appointing contractor due to appeal on tender 1. Review project plan. 2. Additional support brought in. 3. Work schedules reprioritised.

15 A good performance indicator should be: Reliable: Well-defined: Verifiable: the indicator should be accurate enough for its intended use and respond to changes in the level of performance. the indicator needs to have a clear, unambiguous definition so that data will be collected consistently, and be easy to understand and use. it must be possible to validate the processes and systems that produce the indicator. Cost-effective: Appropriate: Relevant: the usefulness of the indicator must justify the cost of collecting the data. the indicator must avoid unintended consequences and encourage service delivery improvements, and not give managers incentives to carry out activities simply to meet a particular target. the indicator must relate logically and directly to an aspect of the institution's mandate, and the realisation of strategic goals and objectives.

16 KPI definition Compulsory submission Enhances understanding Submitted to Internal Audit, the audit committee & the AG Informs the audit No definition = KPI not SMART when audited Review when amendments are made

17 New KPI Definition Template.xlsx KPI Definition /2017 Type of KPI is your KPI an Input/ Output/ Outcome/ Impact, etc Unit of Measure for KPI Number, percentage or ratio Frequency of reporting Background to KPI/ Rationale Indicator Origin - Legislation/ policies applicable to this KPI i.e. quarterly or annually. If annual, why can this not be reported quarterly? What is being measured and why, what impact will this have, why was this KPI chosen, Provides the logic behind the inclusion of the indicator as a reporting requirement, etc. If this indicator is aligned to other sets of indicators, state its origin, particularly if part of an international reporting set MFMA, MSA, Labour relations

18 Creating Targets Specific Measurable Achievable Realistic Time Bound

19 How are targets set and reviewed? Targets are based on, access modeling, previous years actual status, research information or best practices. Targets are reviewed every 6 months. 5 Year targets are set before the start of the 5 year cycle and are also reviewed annually.

20 Project plans/ Milestone definitions Compulsory submission Enhances understanding and informs the reader of the planned milestones Submitted to Internal Audit Informs the audit, particularly evidence required No project plan = Project & linked KPI not SMART when audited Review when amendments are made

21 Project Plan List of project tasks Date of completion for task % of task to the total Risks Dependencies Project plan for numbers.xlsx

22 Reasons for non-performance / Measures taken to improve performance The completion of the Measures to improve column is required by the Systems Act legislation. Target not met - reasons for non-performance must be indicated management action Actions (measures) to improve performance so by year end, target is met

23 Monthly & Quarterly reporting

24 Quarterly reporting Report on time Reasons for variance must be detailed. Evidence Measures to improve must be sufficient

25 MID-TERM

26 Audit criteria (derived from performance management and reporting framework) Main Criteria Sub Criteria Definition Usefulness Measurability Relevance Consistency Indicators are well defined and verifiable. Targets are specific, measurable and time bound Indicators relate logically and directly to the entity mandate and realisation of strategic goals and objectives Objectives, indicators and targets are consistent between planning and reporting documents

27 Main Criteria Sub Criteria Definition Validity Actual performance reported has occurred and pertains to the entity Reliability Accuracy Completeness Amounts, numbers and other data relating to actual performance reported have been recorded and reported appropriately All actual results and events that should have been recorded have been included in the annual performance reports

28 Main Criteria Compliance with legislative requirements Sub Criteria Existence Timelines Definition Objectives, indicators and targets must be predetermined and performance information must be reported against them The annual performance report, together with the annual financial statements; must be submitted for audit purposes to the auditors, within two months after the financial year end Performance information must be presented using the National Treasury guidelines. Presentation Actual performance information in tables and other information included in the annual report must be consistent. Material differences between actual and planned performance must be explained

29 Common Findings - Audit findings are material could lead to Qualified Audit Objectives, indicators and targets not consistent between plan and annual performance report Reasons for variances between planned and actual performance is not included Logical link between objectives, indicators and targets do not exist Changes to planned objectives, indicators and targets are not disclosed Non-compliance to legislation Non-timely submission of annual performance report Indicators are not well defined Evidence is not verifiable Targets are not measurable

30 Common Findings Lack of effective, efficient and transparent systems and internal control to provide sufficient, appropriate audit evidence to substantiate reported performance information No supporting documents or insufficient supporting documents to support reported targets (validity) The amounts, numbers and other data related to the actual targets did not agree to the supporting documents provided (accuracy) The report had missing information, not everything related to the actual results and events where recorded (completeness) Annual performance report was provided too late to conduct any audit work on reported information

31 Root causes Lack of accountability and consequences for actions/inaction Lack of monitoring by leadership Inadequate formal planning for Predetermined Objectives Misalignment between Strategy and Performance Reporting Organisational structures not aligned Structures not capacitated Predetermined reporting not included in Performance Agreements Poorly defined roles and responsibilities Inadequate internal audit testing systems and data Ineffective audit committee oversight

32 LessonsLearnt Oversight and support of Top Management and Council Roles and responsibilities of all stakeholders must be understood Buy-in from all Management and staff Public Participation process critical Skilled and committed Staff Compliance to Legislation critical deadlines/evidence Efficient tools to be in place

33 Lessons Learnt Policies, procedures and frameworks Performance targets & KPI s Technical Indicator/ KPI Definition Project Plans IDP/SDBIP/ Budget and Scorecard must be developed, implemented and reviewed annually. must be SMART and have evidence to support Performance indicators/data Elements must be well defined and verifiable. must be developed for KPI s and must include monthly and quarterly targets. must be aligned

34 An audit action plan based on the audit findings of the previous financial year Lessons Learnt must be maintained, with definite actions to address audit findings Quarterly performance review sessions must be convened to monitor performance, reasons for nonperformance and measures to improve.

35 Lessons learnt Keep things simple Try to keep requirements to a minimum Perform comparisons to previous reporting periods Attempt to understand operating environments Importance of communication

36 Conduct feasibility studies needs, costs, sustainability. Know what you want. Do you have the resources to achieve the target e.g. money, HR Create and submit a procurement plan Regular monitoring and control of the processes to achieve targets Planning Resources Procurement Monitor L e a r n Learn from past experiences Ways of improving performance

37 Ensure that progress is reported on time. No reporting = Not achieved. Collect & submit evidence. No evidence = Not achieved Set stretch targets that are still achievable Set targets in consultation with staff and create accountability Reporting Evidence Targets Accountability Ways of improving performance

38 New Developments

39 New developments Sustainable Development Goals Built Environment Performance Plan Indicators Municipal Chart of Accounts reporting requirements Back to Basics

40 BACK TO BASICS APRIL-MAY 2014

41 5 PILLARS OF BACK TO BASICS Service Delivery Creating decent living conditions Good Governance & Administration Public Participation Financial Management Institutional Capacity

42 AIM OF BACK TO BASICS Serve our communities better - provision of basic needs of communities Build a responsive, caring and accountable local government Ensure improvement in performance of local government Recognise & reward good performance

43 Individual Performance Management for Executives ETHEKWINI MUNICIPALITY

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45 Individual Performance Management System in EThekwini Municipality PME - IPM System Senior Management on Executive Pay roll HR - IPM System Middle Management and staff

46 MSA: Summary of legislation Employment contract for Municipal Managers (MMs) and Managers Directly Accountable to MMs Performance agreement (PA), o Individual Performance Plan o Personal Development Plan

47 IPM Framework IPM Framework for Senior Management of EThekwini Municipality on Executive Payroll including MMs and Managers Directly Accountable to MMs Incorporates the MSA, MSA Regulations, MFMA and Council Resolutions Details an effective and efficient annual implementation process including Signing of PA s Mid-term Reviews Annual assessments

48 By 2030 ethekwini will be Africa s most caring and liveable city Alignment of Processes (OPMS to IPMS) IDP OPM SCORECARD BUDGET IPM SDBIP IPP

49 Content of IPPs Kpi s from the Scorecard/SDBIP included in the Individual Plans Compulsory KPI s Additional KPI s

50 1 st & 3 rd quarter Verbal 2 nd & 4 th quarter: Recorded; Structured Reviews Status report on performance Rating performance

51 Level Terminology Description Rating Guide 1 Unacceptable Performance does not meet the standard expected. The review/assessment indicates that the performance employee has achieved below fully effective results for the performance criteria/indicators as specified in the performance agreement/plan. The employee has failed to demonstrate the commitment or ability to bring performance up to the level expected in the job despite management efforts to encourage improvement. 2 Performance not fully effective Performance is below the standard required for the job. Performance meets some of the standards expected for the job. 3 Fully Effective Performance fully meets the standards expected in all areas of the job. The appraisal indicates that the Employee has fully achieved effective results against the significant performance criteria/indicator as specified in the Performance Agreement/Plan 4 Performance Significantly above Performance is significantly higher than the standard expected in the job. The appraisal indicates that the employee achieved above fully effective results against the performance criteria/ indicators. expectations 5 Outstanding Performance far exceeds the standard expected of an employee at this level. The appraisal indicates Performance that the Employee has achieved above fully effective results against the performance criteria/indicators as specified in the Performance Agreement/Plan.

52 Assessments Results Assessment results are compiled by PME and forwarded to CM Assessment results of the CM are submitted to the MEC and the national minister for LG, within 14 days after the conclusion of the assessment

53 Performance Bonuses Payment process of Annual Performance Bonus is undertaken by the CM and HR. Performance bonuses are only be paid after : The completion of the annual assessments The adoption of the annual report On affordability by council.

54 Dispute Resolution Dispute on the nature of the employee's PA relating to; Responsibilities Priorities or objectives Methods of assessment Mediated within 30 days of receipt of a formal dispute from the employee

55 Dispute Resolution Mediated by In the case of the City Manager; the MEC for LG in the province, or any other person designated by the MEC, In the case of deputy City Manager, the mayor, In the case of Executives; the City Manager, Mediator s decision shall be final and binding on both parties.

56 CHALLENGES Late submissions Non-submissions Confusing the process concepts Wrong templates Incomplete and unsigned IPPs Constitution of prescribed panels Securing availability of panel members RESPONSES o Notices ( s and Memos) o CM Circulars o CM Circulars o No bonus payment o Training o Annual dated templates o Checklist o Guidelines on the onset o Score sheet signatures o Scheduling along other meetings o Teleconferencing

57 The Annual Report PURPOSE OF THE ANNUAL REPORT Provide record of the activities of the municipality and entities in the Financial Year ANNUAL REPORT Report on performance of service delivery and budget implementation for the financial year Promote Accountability

58 RESPONSIBILITIES City Manager Deputy City Managers Plan Owners Performance Monitoring and Evaluation Unit Recommends and submits Performance Information for approval Own the IDP plans and responsible for ensuring Performance Monitoring and Evaluating Performance for the Org Senior Management team Plan Representatives Programme Drivers Project Managers Plan/Undert ake and Manage performance

59 RESPONSIBILITIES Citizens Exco/Council Support/Portfolio/Ove rsight Committees Audit Committee - External Internal Audit Auditor General Prov/Nat COGTA/Treasury Participate on performance and KPIs Recommend and Adopt performance reports Review reports on performance quarterly Reviews and provides oversight on performance Audit and report on performance Annual Audit and report on performance Review quarterly and annual Perf Information

60 Key Issues Underpinning the Success of PME Top Management and council to drive the system; The Municipality s Integrated Development Plan to be communicated Municipal-wide; Channels of communication needs to be in place; A clear understanding and appreciation of the value of having a performance measurement system; The development of employees identified through the Performance Monitoring and Evaluation process; There should be a change management strategy in place; The framework for achieving goals should also be SMART; Review team goals at least once a month; and Performance Monitoring and Evaluation should be considered as an

61 Who contributes to the success of PME? Citizens of ethekwini Municipality Council Executive Committee Committees of Council City Manager Deputy City Managers Plan Owners Senior Management team Performance Monitoring and Evaluation Unit Plan Representatives Programme Drivers Project Managers Internal Audit Auditor General Audit Committee National and Provincial COGTA and Treasury

62 PERFORMANCE OF THE CITY Management ethekwini = Councillors Citizens

63 VISION: Being Africa s most caring and liveable city by 2030 THANK YOU