SACN Strategic Evaluation: Organisational Implications Report. SACN Strategic Evaluation Organisational Implications Report Version 1 i

Transcription

1 SACN Strategic Evaluation: Organisational Implications Report SACN Strategic Evaluation Organisational Implications Report Version 1 i

2 EXECUTIVE SUMMARY Introduction This report provides an overview of a suggested Organisational Strategy, proposing practical organisational systems, and structures, in order to implement the intuitional strategies identified in the South African Cities Network s (SACN) Strategic Outlook. The suggested Organisational Strategy seeks to inform SACN business planning for organisation s next strategic cycle ( ). The overall strategic evaluation of the SACN aims to develop a direction for the organisation, to inform and guide business planning processes for the next strategic cycle. The position put forward by the strategic report was that the SACN is currently at a strategic crossroads and in need of a revised strategy to strengthen its mandate going forward. The organisational responses suggest system and structural recommendations, which should be incorporated into the business planning cycle. The organisational responses provide suggestions for implementing this strategy. Approach and Methodology This report provides, firstly, a discussion of the approach and methodology and then an overview of the strategic response options. Secondly, the report discusses organisational systems development (including communication and dissemination systems, knowledge management processes, and capacity development. The third component, develops an organisational functions and gap analysis. Fourth, a sourcing strategy is designed to guide how capacity will be built into the system to undertake these functions. The fifth chapter reviews the organisational structure to include capacity to implement the proposed systems, in line with the outcomes of the gap analysis and sourcing discussion. A concluding chapter describes a high-level strategic road map to guide strategy implementation and integration of the strategy into the SACN business plan for the next strategic cycle. The following section provides some background to the project, supporting the need for the development of a revised, current strategic direction. Strategic Outlook Summary The Strategic Outlook aims to provide the institutional strategic direction for the SACN going into its next strategic cycle and to inform the business planning that will include a 10 year organisational plan. The challenges identified highlight that the aim of the SACN is to influence governance at a city level. However, regardless of the quality of SACN knowledge products, it is the ability and capacity within local government which ultimately results in a tangible impact of these products and realisation of the SACN s organisational goals. Table 2, below, summarises the logic underpinning the organisational strategy. The strategy aims to, firstly, improve the influence of the organisation which requires a strategic approach to communications, dissemination and relationship management. Secondly, improving the influence and impact of knowledge products can be addressed through addressing both the knowledge management process (i.e. how knowledge products are designed, researched, packaged and disseminated), and from strengthening the relationship between the SACN and member cities to ensure increase the value of SACN membership to member cities and organisational impact through capacity development and governance. This is implemented through the institutionalisation of the relationship between the SACN and member cities, emphasising the roles and responsibilities of the SACN and metropolitan municipalities. SACN Strategic Evaluation Organisational Implications Report Version 1 ii

3 Table 1: Organisational Strategy Summary Institutional goals Strategic intent Strategic response Improve communications and public perception of the organisation Improved accessibility of knowledge products Increase organisational and product impact Identity, expectation and perception management Time management and organisational efficiency Increasing organisational influence Refining the knowledge management process from inception to dissemination Relationship management and capacity development through institutionalisation Communication and dissemination strategy Knowledge management system review and refinement Institutionalisation strategy Organisational Systems Development The organisational systems development section provides an overview of the communication and dissemination strategy, the knowledge management review, and the institutionalisation strategy (i.e. governance and capacity development). Communications, dissemination and relationship management strategy The communications, dissemination and relationship management strategy aims to gradually and meaningfully increase the public profile of the SACN by defining the organisational identity (i.e. what the organisation does and does not do). The strategy aims to increase the organisation s public profile by strategically influencing influencers in government, academic, political and public spheres. In light of the strategic intent, as described above, the Communications, dissemination and relationship management strategy acknowledges the communication function as having an external and internal component. External communication acknowledges the differentiation of stakeholders with which the SACN engages, and that communication and messaging should tailored to support these various groups. Internal communication, acknowledges the need to support current staff to successfully perform their role in the communications strategy. Further, internal communications relates to project management and successful communication between teams. This strategy strongly supports all other proposed focus areas, and arguably the success of any strategy seeking to strategically institutionally position the organisation. It is an essential component of both the knowledge management and capacity development strategies. SACN Strategic Evaluation Organisational Implications Report Version 1 iii

4 Communications systems suggested include the development of technical messaging documents and automatic messaging systems. The need for improvement of website and electronic media is emphasised. In order to support these systems, the role of communications as a strategic business partner is discussed. Knowledge management review The knowledge management review aims to develop a detailed understanding the knowledge product value chain, highlighting areas for improvement. The sections outlines the organisational response objectives. The status quo is reviewed, and supporting systems for idea generation, research production, packaging and dissemination are suggested. These systems give effect to the overall strategic intent as described above. As the SACN grows and matures, organisational impact becomes more important. Incremental improvement of the strategic institutional relationships is essential to ensuring greater impact. Systems suggested include: improving the supply in the research market, relationship management with consultants, product packaging and dissemination systems and product impact measurement. Institutionalisation and capacity development strategy The aim of the institutionalisation and capacity development strategy is to become more impact-oriented through capacity development, and enabling stakeholders to engage with knowledge products and learning events. This response enables the development of systems to enable stakeholders to a) engage with information, and b) apply this to the municipal context to positively influence governance in member cities. This strategy suggests a staged, incremental approach to institutionalisation of the relationship between the SACN and member cities. In order to implement this strategy, it is envisioned that organisational systems are implemented in an incremental manner, starting with the activist board. The activist board should then agree to institutional guidelines, which should be consolidated into a Memorandum of Agreement (MOA). Function and Gap Analysis The aim of the function and gap analysis is to identify the functional arrangements which will support the systems proposed above. This is done through the presentation of findings from previous organisational reviews, a detailed discussion of the required functions the presentation of the current functional arrangements, describes the gaps in the functional arrangements and presents the functional arrangements required to implement the organisational responses discussed above. Whilst the functional arrangements appear quite static, it is important to note that the work arrangements are flexible and the organisational culture is dynamic and innovative. The sourcing strategy is an important aspect to implementing the systems and functions described above and should be decided before systems are aligned to it The thought processes behind the rationale for the sourcing strategy, ideas for sourcing research resources and the sourcing decision making process are clarified. It is emphasised that the role that associates play within the organisation is an important area for clarification. SACN Strategic Evaluation Organisational Implications Report Version 1 iv

5 Sourcing Strategy The functional analysis is a major input to the sourcing strategy as it discusses where functions should be performed. There are three other main considerations that are used to form the strategy. The first is the strategic nature of the knowledge production and stakeholder engagement functions. This influences suggestions over who should perform functions and whether they should be sourced internally. The second consideration is the flexible, project-based approach that the SACN takes towards knowledge generation. The third consideration is the SACN s flat organisational culture. The figure below depicts the sourcing strategy matrix. Figure 0-1: Sourcing Decision Making Matric Organisational Structure Development The structural suggestion takes into account the over-arching strategic imperative, the functional arrangements and the sourcing strategy. The current SACN structure is presented, the rationale for the structural shift is described and the new structure is identified. In order to carry through the functional changes suggested, a slight amendment to the current structure is suggested. Mindful of the need of the SACN to keep corporate costs below a certain only three additional roles have been suggested. The communications functions is suggested as a stand-alone functions. In addition to the junior capacity recommendation, it is suggested that the function is given seniority in the form of a senior manager. This is to ensure that the communications function can manage the increased workload suggested by the 2014 strategy. Although the SACN Strategic Evaluation Organisational Implications Report Version 1 v

6 capacity and seniority recommendations are strong recommendations, the SACN may prefer to house the communications function in the office of the CEO as an interim incubation measure. As the website is an integral part of the strategy, as well as other electronic systems, it is suggested that an It administrator be added to the corporate functions portfolio. Whilst this resource would not be able to carry out all the required IT functions themselves, they would have the expertise to manage IT contracts and would be an immediate point-person. In order to manage the current work-load, it is suggested that the programmes function receive an extra programme manager as well as an extra programme administrator. Figure 0-2: Suggested Structure In order to expedite the implementation of the strategy, it is suggested that a senior communications manager be implemented with immediate effect. This will ensure that the communication, dissemination and relationship management portion of the strategy receive the attention required. A matrix project management style is used In order to ensure that resources are effectively deployed. This project management style is best suited to the SACN, it has the downsides of multiple reporting lines and difficulties in ensuring accountability for multiple projects. In order to counter these downsides, an organisational discussion is required. This discussion will ensure that there is a common understanding about the way in which the organisation operates. This will help to clarify the unwritten rules around working style. Topics for discussion could include the way in which resources are allocated to a project and project-manager responsibilities versus line manager responsibilities. This discussion will help to preserve the flexible, flat working style of the SACN whilst ensuring that it is easier to on-board new hires. Recommendations SACN Strategic Evaluation Organisational Implications Report Version 1 vi

7 This report, together with the Performance Review and the Strategic Outlook, aims to provide valuable and usable strategic guidance to the SACN business planning process. These next steps are based on the arguments outlined in the previous chapters which is recommended that the SACN focus primarily on strengthening organisational capacity. Primary actions that can occur prior to or parallel to business planning processes include: Developing organisational capacity: The high-level organogram developed through this Strategic Evaluation should be further developed into an organisational design as part of the business planning process, including detailed job descriptions accounting incorporating the three-pronged strategic approach, as developed through the Strategic Evaluation. Communications strategy: Find a suitable appointment for the senior communications function. One of the first tasks of this appointment will be to review the existing communications strategy and oversee the review of the website management. Knowledge management strategy: Begin leveraging existing relationships to initiate research units in selected universities. The detailed strategy for these units must be detailed in the business plan, but the Secretariat can begin gauging interest and evaluating potential. Further, the Secretariat can seek more innovative consultant teams, for planned projects. Institutionalisation, governance, and capacity development strategy: Promote the activist board by workshopping and establishing roles of the member cities in relation to supporting the impact of the SACN knowledge products. Review the potential of institutionalisation with the Board, and agree on possible timeframes and procedures to initiate this process. SACN Strategic Evaluation Organisational Implications Report Version 1 vii

8 SACN Strategic Evaluation: Organisational Implications Report SACN Strategic Evaluation Organisational Implications Report Version 1 viii

9 TABLE OF CONTENTS 1. Introduction Background Approach and Methodology Approach Methodology Strategic outlook summary Strategic intent Strategic institutional response summary Organisational Systems Development Communications, dissemination and relationship management strategy Communications status quo Communications strategy organisational systems Website and digital media Communications as a strategic business partner Knowledge management review Knowledge management status quo Knowledge management systems Institutionalisation and Capacity Development Strategy Staged approach Developing board guidelines Developing a memorandum of agreement with member cities Recommendations Function and Gap Analysis Identified organisational challenges Organisational systems roles and functions Executive functions: Knowledge Production Functions Communications Functions Corporate Functions SACN Strategic Evaluation Organisational Implications Report Version 1 ix

10 5.3. Current Functional Arrangements Functions Requiring Strengthening Suggested Functional Arrangement Sourcing Strategy Sourcing Rationale Sourcing Research Resources Sourcing decision making matrix Incorporating Associates Organisational Structure Development Current Structure Rationale for Structural Shift Suggested Structure Interim Structure Organisational Culture Recommendations Next steps SACN Strategic Evaluation Organisational Implications Report Version 1 x

11 LIST OF TABLES Table 1: Organisational Strategy Summary... iii Table 1: Organisational Strategy Summary... 7 SACN Strategic Evaluation Organisational Implications Report Version 1 xi

12 LIST OF FIGURES Figure 0-1: Sourcing Decision Making Matric... v Figure 0-2: Suggested Structure... vi Figure 1-1: SACN Strategy Progression ( )... 2 Figure 2-1: Strategic evaluation approach... 3 Figure 4-1: Example of a reference group automatic process Figure 4-2: Knowledge Production Cycle Figure 5-1: Functions required by the 2014 strategy Figure 5-2: Current Functional Structure Figure 5-3: Functions requiring strengthening Figure 5-4: Suggested Functional Structure Figure 9-1: Sourcing decision making matrix Figure 7-1: Current Structure Figure 7-2: Suggested Structure Figure 7-3: Proposed Interim Structure SACN Strategic Evaluation Organisational Implications Report Version 1 xii

13 1. Introduction This report provides an overview of a suggested organisational strategy, proposing practical organisational systems, and a structure, in order to implement the intuitional strategies identified in the South African Cities Network s (SACN) Strategic Outlook. The suggested Organisational Strategy seeks to inform SACN business planning for organisation s next strategic cycle ( ). The overall strategic evaluation of the SACN aims to develop a direction for the organisation which will inform and guide business planning for the next strategic cycle. The position put forward by the strategic report was that the SACN is currently at a strategic crossroads and in need of a revised strategy to strengthen its mandate going forward. The organisational responses suggest system and structural recommendations, which should be incorporated into the business planning cycle. The organisational responses provide suggestions for implementing this strategy. The aim of the strategic organisational responses is to identify strategic organisational focus areas to improve organisational effectiveness and efficiency. This organisational strategy will consist of the systems and structures that support the strategic objectives of the SACN. These organisational responses aim to assist the SACN to implement the strategic objectives, while achieving the following: Build consistency while maintaining organisational flexibility and adaptability Build an impact orientated and capacity development focused organisation Continue to produce high quality research Continue to be a thought-leader, setting and driving the domestic urban agenda This report provides, firstly, a discussion of the approach and methodology and then an overview of the strategic response options. Secondly, the report discusses organisational systems development (including communication and dissemination systems, knowledge management processes, and capacity development. The third component, develops an organisational functions and gap analysis. Fourth, a sourcing strategy is designed to guide how capacity will be built into the system to undertake these functions. The fifth chapter reviews the organisational structure to include capacity to implement the proposed systems, in line with the outcomes of the gap analysis and sourcing discussion. A concluding chapter describes a high-level strategic road map to guide strategy implementation and integration of the strategy into the SACN business plan for the next strategic cycle. The following section provides some background to the project, supporting the need for the development of a revised, current strategic direction Background Cities are increasingly the site of political and institutional change in South Africa. The pace of urbanisation and the evolving role of local government requires urgent support be given to municipalities through relevant knowledge generation and effective dissemination, to facilitate more sustainable, and equitable, post-apartheid cities. In addition to these broader national challenges, city leadership is required to think globally by considering challenges such as climate change, while acting locally to implement the developmental mandate of local government in South SACN Strategic Evaluation Organisational Implications Report Version 1 1

14 Africa. It is understood that the SACN was established to assist cities in navigating these complexities. The founding mandate of the SACN outlines the following roles of the organisation: Promote good governance and management in South African cities; Analyse strategic challenges facing South African cites, particularly in the context of global economic integration and national development challenges; Collect, collate, analyse, assess, disseminate and apply the experience of large city government in a South African context; and Promote shared-learning partnerships between different spheres of government to support the management of South African cities. Figure 1-1 highlights the strategic approaches adopted by the SACN since inception. This report suggests potential response options informing a possible strategic direction for the organisation into the next strategic cycle ( ). Figure 1-1: SACN Strategy Progression ( ) The Performance Review and SWOT analysis have highlighted that the SACN is currently well positioned to support large city government in South Africa. However, it is clear that the organisation is at an important strategic crossroads in its institutional development. On one hand the SACN is performing well in terms of knowledge generation and shared-learning platforms, and on the other hand the impact of these products to promote good governance and practically address the impact of global challenges on local urban environments is difficult to measure, since member cities and local government are responsible for implementing these. Considering these points together with the complex nature of cities and local government, the Strategic Outlook has charted a way forward. SACN Strategic Evaluation Organisational Implications Report Version 1 2

15 2. Approach and Methodology As described below, the development of organisational response options is part of the third stage of the overall strategic evaluation of the SACN. It builds on the second stage which framed the strategic institutional options which were a response of the organisational problem statement. This organisational review is the final stage of the project which aims to develop an organisational strategy to enable the selected institutional response. The organisational strategy suggests interventions which ensure that the strategy is implemented. The organisational strategy suggests changes to the systems and structures supporting the SACN organisation in order to implement the institutional strategy Approach Figure 2-1: Strategic evaluation approach The development of the organisational strategy used a methodology that took the unique aspects of the SACN, as well as the constraints faced by the organisation, into account. The organisational responses are based on the following principles: This organisational strategy is a response to the strategic outlook findings and as such provides strategic organisational response options The organisational strategy is systems focused The organisational strategy is based on a lean approach to organisational design SACN Strategic Evaluation Organisational Implications Report Version 1 3

16 The implementation of the organisational systems is based on a sourcing process which aims to ensure alignment with the findings of the Strategic Outlook Methodology The methodology unpacks the activities included in developing the organisational response recommendations. The following steps were undertaken in the development of the Organisational Strategy: Systems development: Using a system-focussed approach, the Organisational Strategy builds on the findings of the Strategic Outlook through developing systems aimed at implementing the strategic response options identified. The systems developed for each of the strategic focus areas are discussed in detail. The systems required to support the communication and dissemination strategy, the knowledge management system review, and capacity development strategy are described. Organisational systems can be described as process for turning inputs into outputs. The aim of developing these processes is to automate the everyday tasks that an organisation is required to perform. This automation ensures that fewer mistakes are made and that staff time is freed for work which cannot be automated. Functional Gap analysis: The function and gap analysis explores the ability of the SACN to implement these proposed organisational systems, based on an evaluation of the functions required to implement them. A functional analysis groups different organisational systems into broad functional arrangements. These arrangement are used to inform the sourcing strategy and the organisational structure. [ ] Sourcing strategy: Acknowledging the resource constraints that the SACN faces, the organisation is required to carefully consider a resourcing strategy. This section discusses the type of knowledge generation products required, the sources for generating SACN research, the sourcing decision making process and the ways in which associates can be included. The functional analysis answers the question as to how functions are arranged. The sourcing strategy begins to answer the question about who should perform the functions. The functional analysis is one input, as is the strategic rationale for sourcing, the project-based nature of the work that the SACN performs and the organisational culture. Structure development: The organisational structure development is based on the outcomes of the sourcing strategy, as described above. This chapter presents and describes the current structure and related corporate culture, and develops a proposed organisational structure for the next strategic cycle. To aid implementation, the chapter presents a short term a transitionary structure, suggesting a starting point to initiate the implementation of the institutional strategy. This section also discusses the way in which the SACN works as a follow-on from the structural discussion. Strategic roadmap: The strategic roadmap is based on the organisational systems described in Chapter 4 of this report. The roadmap development required logical and organisationally sound approach to implementation, and considered inputs from the SACN Secretariat. The roadmap aims to provide a high-level guideline for how the SACN can move from its current state to its desired state (i.e. preferred mandate focus and institutional identity) through developing capacity, developing knowledge products, and acknowledging SACN Strategic Evaluation Organisational Implications Report Version 1 4

17 external factors which may affect the impact of the organisation. The strategic roadmap is designed as a practical tool to support implementation of the Strategic Outlook into the SACN Business Plan. SACN Strategic Evaluation Organisational Implications Report Version 1 5

18 3. Strategic outlook summary The SACN Strategic Outlook aims to understand the following questions: what does the SACN want to achieve in the next strategic cycle? And how should the organisation institutionally position itself to achieve this goal within the next strategic cycle? In order to implement the institutional strategy, as described in the Strategic Outlook, the Organisational Strategy will suggest organisational systems, functional design, a sourcing strategy and a phased organisational structure, with the intent of enabling the SACN to respond to each of the institutional strategies identified. The following section provides an overview of this strategic intent, and a summary of the Strategic Outlook Strategic intent The intuitional strategies and organisational implications, are grounded in the following key principles, regarding a domestic urban focus, sustaining the knowledge management function, ensuring product impact, improving efficiencies, in order to maintain and further develop institutional credibility: The organisation aims to continue to focus on the domestic urban agenda, setting the debate and providing a voice for urban issues on national forums. This local focus will provide greater traction to enable the support of the African and regional urban agenda by the SACN in the future, and through leading South African examples and best practice. The SACN seeks to leverage its strategic advantage regarding urban-centric knowledge production and management. The institutional strategies are designed to meet the desire of the SACN to become more impact-oriented to allow the urban agenda championed by the organisation to have increased influence in both government, political and popular urban discourses. In light of this aim, it is necessary to acknowledge that the term urban discourse is broad, and the SACN need to influence the public (i.e. government), academic (i.e. research institutions and advocacy organisations), and popular (i.e. media, business, etc.) spaces. The concept of impact-oriented means that the SACN is seeking to make it s outputs more accessible, and well as supporting and, in certain cases, enabling stakeholders to respond to these outputs. Improve organisational and institutional efficiencies in order to ensure that core staff are resourced strategically, focussing on opportunities such as capacity development and relationship management over administrative tasks. The strategy seeks to build a responsive organisation through enabling both organisational flexibility (i.e. lean structure) and institutional flexibility (i.e. able to set a non-partisan urban agenda with the best interests of South African cities at heart) Strategic institutional response summary The Strategic Outlook aims to provide the institutional strategic direction for the SACN going into its next strategic cycle and to inform the business planning that will include both 5 year and 10 year organisational plans. The challenges identified highlight that the aim of the SACN is to influence governance at a city level. However, regardless SACN Strategic Evaluation Organisational Implications Report Version 1 6

19 of the quality of SACN knowledge products, it is the ability and capacity within local government which ultimately results in a tangible impact of these products and realisation of the SACN s organisational goals. Table 2, below, summarises the logic underpinning the organisational strategy. The organisational strategy aims, firstly, to improve the influence of the organisation which requires a strategic approach to communications, dissemination and relationship management. Secondly, improving the influence and impact of knowledge products can be addressed through addressing both the knowledge management process (i.e. how knowledge products are designed, researched, packaged and disseminated), and from strengthening the relationship between the SACN and member cities. This will ensure the value of SACN membership to member cities and organisational impact through capacity development and governance. This is implemented through the institutionalisation of the relationship between the SACN and member cities, emphasising the roles and responsibilities of the SACN and metropolitan municipalities. Table 2: Organisational Strategy Summary Institutional goals Strategic intent Strategic response Improve communications and public perception of the organisation Improved accessibility of knowledge products Increase organisational and product impact Identity, expectation and perception management Time management and organisational efficiency Increasing organisational influence Refining the knowledge management process from inception to dissemination Relationship management and capacity development through institutionalisation Communication and dissemination strategy Knowledge management system review and refinement Institutionalisation strategy As summarised in Table 1 above, the organisational strategy, includes three key components, namely: a communication and dissemination strategy, a review of the knowledge management system, and an institutionalisation strategy. Each of these represent organisational tools for the implementation of the institutional strategy. It is noted that the strategy has corresponding organisational implications which impact on the potential for implementation of the strategy. The following chapters explore these implications in greater detail noting the impact of these strategic options on the SACN s organisational systems, structures, and resource capacity. As described in the methodology, the organisational strategy takes a systems approach to implementation. The following chapter develops the systems implications of each strategic option as per the methodology described earlier in the document. This chapter develops the organisational implications for the communications and dissemination strategy (4.1.), the review of the knowledge management process (4.2.) and the approach to SACN Strategic Evaluation Organisational Implications Report Version 1 7

20 governance and capacity development (4.3.). The system and structural implications of the organisational responses chosen are described. Specific organisational interventions are recommended. SACN Strategic Evaluation Organisational Implications Report Version 1 8

21 4. Organisational Systems Development The organisational systems development section provides an overview of the communication and dissemination strategy, the knowledge management review, and the institutionalisation strategy (i.e. governance and capacity development). Each section provides firstly, an overview of the strategy from organisational and institutional perspectives; secondly an overview of the status quo and thirdly a discussion of the systems necessary to implement the strategy Communications, dissemination and relationship management strategy The communications, dissemination and relationship management strategy aims to gradually and meaningfully increase the public profile of the SACN by defining the organisational identity (i.e. what the organisation does and does not do). The strategy aims to increase the organisation s public profile by strategically influencing influencers in government, academic, political and public spheres. In light of the strategic intent, as described above, the Communications, dissemination and relationship management strategy acknowledges the communication function as having an external and internal component. External communication acknowledges the differentiation of stakeholders with which the SACN engages, and that communication and messaging should tailored to support these various groups. Internal communication, acknowledges the need to support current staff to successfully perform their role in the communications strategy. Further, internal communications relates to project management and successful communication between teams. This strategy strongly supports all other proposed focus areas, and arguably the success of any strategy seeking to strategically institutionally position the organisation. It is an essential component of both the knowledge management and capacity development strategies Communications status quo The current communications strategy is defined by a comprehensive communications plan commissioned for the SACN and delivered in August The objective of the plan was as follows increasing the voice of the SACN to support members and South Africa s urban development objective. The plan is thorough and appears to employ a recognised communications methodology. It ended in a robust hundred day strategy which was meant to jumpstart the communications endeavour. Although the plan is technically sound, the feedback from the organisational evaluation is that it has not gained much traction within the organisation. There are a number of reasons for this, one of which is that the unique organisational culture of the SACN was not considered. The strategic imperative for a sound communications plan is not emphasised by the plan. In order to ensure the plan is aligned to the strategy, some adjustments will be required. Suggested amendments include: Aligning the plan with strategic inputs. Important areas for amendment include the objectives for the plan, which should align with the strategic outlook for the organisation. Knowledge products are an important feature of the SACN organisational priorities, and the plan should be adjusted to reflect this. Knowledge products are mentioned in SACN Strategic Evaluation Organisational Implications Report Version 1 9

22 the plan, but their importance, as well as exact process for their dissemination should be clarified. In addition, the process around learning events should be clarified. Ensuring staff buy-in through a workshop. The SACN has a unique organisational culture, which can be characterised as academic and flexible. The communications plan should reflect this style. In order to do this, it is suggested that the organisation holds a communications workshop with all staff. This will ensure that the unique asset of an enquiring and critical workforce is used to infuse the SACN flavour into the communications plan. As the lean nature of the organisation requires all staff to be invested in the plan, it is important that the plan reflect staff priorities. Questions to be discussed are as follows: How do we merge the current style with the need to influence public discourse about cities? How do we use our flexible approach to our advantage? What should our key organisational messages be? What are our key technical messages? Which quick wins should we leverage? After this process, the quick wins identified above should be fed into a streamlined communications plan. In order to implement the plan, specific systems, responsibilities and training will be required. These will be discussed in the following sections Communications strategy organisational systems The following systems aim to drive and implement the communications strategy: Technical messaging documents The SACN produces highly technical pieces of research content. These are recognised as influential in the academic sphere. However, the SACN s ability to influence public discourse rests on the accessibility of research output. This does not mean that the content should be simplified at all. However technical experts should assist the communications team to produce messaging documents on key technical areas. These could be used in a variety of different contexts such as board engagements and engagements with the media. The aim of these documents is to reduce pressure on professional staff by providing alternative responses to ad hoc requests for support. The SACN position on certain key policy areas would be defined. In order to keep these dynamic, they should be reviewed at least annually if not quarterly. The technical experts in question should be responsible for updating these. To implement these documents, technical experts should produce the messaging on strategic areas. This is an area in which the expertise of reference groups could be leveraged. These should be reviewed in the annual strategic planning process, and as well as when knowledge products are released. SACN Strategic Evaluation Organisational Implications Report Version 1 10

23 Automatic processes for predictable events The SACN was designed with a lean organisational design philosophy, which enables the flexibility of the staff. One of the key philosophies of the Lean Methodology is the processes should be automated as much as possible This will reduce pressure on research staff by providing clear administrative processes. There is definite room for improvement with automating communications processes. Certain predictable events (for example the release of the State of the Cities report) should have automatic communication cascades. This will ensure that processes are streamlined and consistent. Examples of such events include: State of the Cities Report release Knowledge product release Board meetings The automatic process should specify the timeline for preparation, the stakeholders involved in each event, the types of communications products needed for such an event and the roles of vendors and internal staff. These will be a critical system to improve the dissemination component of the knowledge management process. Below, we use the example of a reference group to describe an automatic process. We make explicit the kinds of stakeholders targeted by the process, the appropriate communications channel, who will be responsible for the adoption of the material for the channel. The automatic process ends with the communications event itself. This process is enabled by defined roles and responsibilities within the organisation as well as systems such as the website. Figure 4-1: Example of a reference group automatic process Website and digital media One of the themes that emerged from stakeholder interviews, is that the SACN website has challenges with the website are recognised internally. The website has had a high turnover of service providers, none of which have SACN Strategic Evaluation Organisational Implications Report Version 1 11

24 understood the unique service required by the SACN. In particular the large repository of documents required on the website has proved challenging to service providers. Service providers have also not understood the context in which the SACN seeks to disseminate information. Whilst the SACN is aware of the challenge of the website, it is important to emphasise that this is a critical risk that should be addressed as it hampers communications efforts as well as the ability of the organisation to track the dissemination of the content. The website is an important means of supporting member cities. To ensure that the efforts to improve the website have synergy with the organisational strategy, the following should be considered: The website should be built to accommodate future expansions. (for example future e-learning efforts) The website should have functionality (mailing list sign-up for example) The website should be continuously updated A blog function is needed on website to highlight the thought leadership within the SACN Social media functions should be enabled to synchronise with the social media strategy Communications as a strategic business partner In order for the communications function to fully serve the strategic requirements of the SACN, it is important that communication roles and responsibilities are fully defined. The first shift suggested is that the communications function should move to a strategic business partner role. This would mean that the communications function was aligned to the business needs of the SACN, playing a role in strategic conversations. To make this shift, the communications function would need to have a deep understanding of the SACN. The utility of the communications function would need to be understood throughout the business. In order to achieve this, clear accountabilities are required and expectations around communications deliverables should be defined. Whilst the role of the communications function is being defined, it is important that the team responsibilities for communication are made clear. For example, project leads should be responsible for informing the communications function of the project calendar, and any variations in timelines. The communications function should be responsible for the following: Communications strategy oversight Owning templates and branding Managing communications channels SACN Strategic Evaluation Organisational Implications Report Version 1 12

25 Ensuring processes are automated Managing service providers The research team should be responsible for the following: Clarity on the communications required for each output Technical assistance provision (for example writing blog posts Stakeholder management The corporate team has the following responsibilities: Assistance with managing budgets and out-sourced contracts Project management assistance Knowledge management review The knowledge management review aims to develop a detailed understanding the knowledge product value chain, highlighting areas for improvement. The sections outlines the organisational response objectives. The status quo is reviewed, and supporting systems for idea generation, research production, packaging and dissemination are suggested. These systems give effect to the overall strategic intent as described above. As the SACN grows and matures, organisational impact becomes more important. Incremental improvement of the strategic institutional relationships is essential to ensuring greater impact. In light of the above, as well as the strategic intent, the knowledge management review aims to refine the knowledge management process (product conception, design, packaging and dissemination) to improve product accessibility and ultimately product impact Knowledge management status quo The research market in which the SACN finds itself, is not best fitted for the needs of the SACN. The supply available in the research market does not adequately address urban development needs. In addition, the SACN faces challenges in managing research relationships, especially around the non-traditional knowledge production needs of the organisational. The organisation has identified the need to revise the way in which knowledge in packaged and disseminated and is faced with a need to demonstrate product impact. SACN Strategic Evaluation Organisational Implications Report Version 1 13

26 Figure 4-2: Knowledge Production Cycle Knowledge management systems Improving the supply in the research market In order to address the strategic goals of broadening the influence of the strategic research agenda and using alternative research methods, the SACN should intervene to influence the research market. There are a number of interventions that the SACN can employ in order to improve the supply in the research market. Leverage existing relationships with tertiary organisations. The SACN has strong relationships with tertiary institutions. These could be used to stimulate good quality, innovative research. This could be achieved through the use of tenders targeting tertiary institutions. The SACN could consider sponsoring (or causing the sponsorship of) fellowships and scholarships for targeted urban research. Leverage existing research relationships: Although there have been concerns about the quality of research relationships (see section 5.2), it is possible to build capacity in existing consultant relationships. This could take the form of providing clearer research guideless (in particular with regards to non-traditional research expected) and providing clear feedback at the end of an assignment (perhaps in the form of a rating sheet). Leverage relationships with other funders. The SACN has strong relationship with bodies who fund research. The organisation should consider influencing other funders to fund research which is aligned to the SACN agenda. This would lessen the research supervision load as well as deepening the sense of SACN political neutrality Establishing formal relationships at tertiary institutions. The SACN should, as part of its business plan, investigate the feasibility of establishing dedicated research units at tertiary institutions. These would enable direct cooperation between funders as well as lifting the research supervision burden almost entirely from SACN staff. The feasibility of SACN-dedicated units should be investigated. SACN Strategic Evaluation Organisational Implications Report Version 1 14

27 Relationship Management with Consultants In order shift research to non-traditional methods and lessen the supervision burden for research staff, the SACN should implement interventions for strengthening relationships with service providers. Briefing sessions: One of the challenges faced by the SACN is that service providers do not adequately understand briefs, especially briefs about non-traditional methods of research. One of the ways in which this could be improved is by holding a briefing session in which the SACN requirements are explained and examples of best practice are provided. Non-traditional Partnerships: Another challenge is that many researchers still use traditional approaches. Traditional research has its place but it cannot answer all the future-focused, non-traditional questions that the SACN needs answered. This challenge could be solved though non-traditional partnerships. Examples of such partnerships could be researchers partnering with management-consultants. Improving the advertisement process: Many of the tenders that the SACN releases do not receive a great deal of responses. This means that there is not enough competition amongst researchers. In order to address this, the briefing and advertisement process should be improved Product packaging and dissemination One of the defining characteristics of the SACN is that the organisation produces research of high quality. This research is influences academic discourse. In order influence popular opinion, the SACN needs to explore nontraditional methods of packaging research. These summaries of research could be more easily shared on social media or in the popular press. Examples of digestible products include blog pieces, thought leadership pieces or infographics. Learning events should be promoted via social media and recorded for digital consumption. Some responsibility for producing non-traditionally packaged research could be placed in consultant RPFs. Research staff should also be responsible for producing pieces such as blog posts. Improved packaging should be implemented through tender specifications, communications expertise and research staff oversight. Product dissemination is an important component of the SACN Knowledge management review. The SACN corporate staff manage mailing lists and the administration of reference groups and learning events. Because product dissemination is part of the core business of the SACN, it needs to be highlighted in the communications plan. The plan should make specific reference to flagship events and products, and the communication strategy around them. It should be highlighted that the website is a significant channel for product dissemination. As the systems team is working on improving the website, it is important to incorporate the role that the website plays in terms of knowledge dissemination. The website should be positioned as: A library for current research: The State of the Cities report should be easily accessible and given a place of prominence on the sight. Links to other urban research organisations should be included. An access point for those seeking to learn about urban development. It is hoped that, as the urban agenda increases in prominence, there will be a number of people using the SACN website as a gateway to SACN Strategic Evaluation Organisational Implications Report Version 1 15

28 understanding the state of urban development in the country. To answer this need, the website should have introductory pieces available. The website should be up-to-date and should have interactive functionality. As the portal to the SACN, it is important that the website is as current as possible. As it is being re-engineered, it should include functionality for expansion. The SACN may in the near future wish to start a blog, display video content, host webinars or host private discussion forums. The website should be robust enough that these functionalities may be included Product impact measurement systems Another feature of lean organisations is that they seek to improve continuously. In order to improve the knowledge product offering, the SACN has identified the need to monitor the impact of research products. A service provider has been hired to improve the systems used to monitor outputs (reports and learning events), as well as outcomes. Outcomes will be represented by simple indicators that include dissemination effectiveness and outreach effectiveness. The service provider should, amongst other things, help to automate the process of generating performance reports. In order to be effective, product impact monitoring should be built into the daily operations of the SACN. Areas in which the SACN could capitalise on current processes and improve impact evaluation include: Feedback forms from learning events: the forms could be expanded to include indicators which measure the impact of the event Annual temperature checks with stakeholders: an annual temperature check with stakeholders could ensure that organisational red flags are noted quickly Consistent tracking of web diagnostics: Once the website is fully functional, it will be a powerful tool for determining the reach of knowledge products Institutionalisation and Capacity Development Strategy The aim of the institutionalisation and capacity development strategy is to become more impact-oriented through capacity development, and enabling stakeholders to engage with knowledge products and learning events. This response enables the development of systems to enable stakeholders to a) engage with information, and b) apply this to the municipal context to positively influence governance in member cities. This strategy suggests a staged, incremental approach to institutionalisation of the relationship between the SACN and member cities. In light of the strategic intent, it is important to remember the considerations developed through the performance review. This strategy originated from the identification of a need to balance the relationship and influence of both the political and administrative decision-makers and stakeholders supporting the SACN in driving the urban agenda, managing what is described as a disconnect between these groups of stakeholders. Further, it relates the need for the SACN to maintain a non-partisan position when engaging with these highly politicised issues, to ensure that the SACN Strategic Evaluation Organisational Implications Report Version 1 16

29 urban agenda is relevant and supports local city government. Finally, this strategy aims to enable member cities to unify under the banner of the SACN and speak with one voice Staged approach In order to implement this strategy, it is envisioned that organisational systems are implemented in an incremental manner, starting with the activist board. The activist board should then agree to institutional guidelines, which should be consolidated into a Memorandum of Agreement (MOA). Current capacity development strategies focus on the development of knowledge products aimed at specific urban challenges. These are presented at learning events and discussed in reference groups. Senior officials are engaged and the organisation responds to ad hoc requests for help. Whilst these initiatives are widely agreed to be of excellent quality, member cities do not always take responsibility for internal capacity development Activist Board In order to promote the agenda of the SACN and ensure that urban concerns received national air-time, the concept of activist board members was discussed. In this formulation of the idea of the activist board, board members were encouraged to champion thematic areas of the SACN. This idea did not receive a great deal of traction, in part because the role that the board members were supposed to play was not defined clearly enough. Even though the idea did not receive a great deal of traction, the concept of the activist board is still valuable. Board members should become champions of the SACN within their cities and institutions. This would be far more powerful than requiring members to go on general roadshows. The SACN needs high level institutional championship of its work within member cities. Board members are in the perfect position to do so. With board members and their senior management teams advocating for the SACN internally, there would be a great deal more up-take of SACN resources within member cities. In order to champion the SACN, board members require a high level understanding of the SACN calendar and research content. This will be a critical use for high level technical messaging documents. This high level understanding will mean that board members will feel more comfortable answering questions internally. The technical messaging documents could be used as a resource for municipal marketing and communications teams. Once there is an understanding of the high-level discourse around urban issues that the SACN is promoting, board members will be able to promote the agenda within their own municipalities and institutions. Once the SACN is recognised as an executive priority, the importance of the SACN products and events will gain traction within the municipalities. Board members should not only broadly champion the SACN, but should also encourage their teams to use SACN resources in strategic planning processes Developing board guidelines The SACN has been faced with outside challenges around their role, with reports of stakeholders questioning the value that the SACN provides to them. The organisation also receives many ad hoc requests for work which falls outside their strategic intent. The boundaries of the relationship that the organisation has with stakeholders is not SACN Strategic Evaluation Organisational Implications Report Version 1 17

30 always clear. In order to manage expectations and demonstrate the value that the SACN provides, it would be useful for members to agree to guidelines with the SACN, which would solidify what is expected of the organisation. The SACN should commit to providing value for their members. Rigorous governance processes should be agreed upon. Research targets should be set. In order to demonstrate effectiveness, dissemination targets should be set. These targets should include digital dissemination and learning events as well as sessions interacting with officials from the member cities. In order to promote stability, member cities should commit to five year funding for the SACN. Members should agree to aligning internal capacity with SACN strategic objectives. This may be as simple as appointing key contact people, or ensuring that strategic capacity attends learning events. At a basic level, members should commit to engaging with the content that SACN produces as well as building capacity within their own municipalities Developing a memorandum of agreement with member cities Once guidelines have been piloted and tweaked to be more appropriate, they should be developed into a formal MOA. Broad strategies and targets should be strengthened with detail. Once the MOA has been drafted, it should be signed by all member cities as well as the secretariat. This will formally commit the SACN and member cities to agree upon relationships (including funding, governance and the development of member city capacity). The MOA will ensure that the members of the SACN are satisfied with the value provided by the organisation and will provide them with formal channels for recourse if the agreed upon actions are not taken. At the same time, the MOAs will provide the SACN with stability in the face of political uncertainty, as they will be signed by the member cities rather than political parties. The agreement on funding will be useful in terms of ensuring that the organisation continues to be financially sustainable. Whilst the MOA will commit the organisation to doing a great deal, it will be clear on what the organisation s role is not. This will ensure that the organisation has recourse in terms of refusing ad hoc requests Recommendations The organisational systems described above support each other and are interrelated. As such, achieving the institutional goals of the organisation requires a three pronged approach. However, as a starting point, the following is recommended: Understand the differentiation of stakeholders, and importantly, engage both political and administrative stakeholders; In order to manage these stakeholders, and simultaneously maintain a project-based approach to knowledge product management, it is essential that the communications function is prioritised. Importantly, this function should be structured as a strategic business partner role, to ensure project support; Ensure that a commitment to SACN sustainability is made by members. This will involve recognising the value that the SACN provides, ensuring that member municipalities are able to leverage this value and a commitment to funding. SACN Strategic Evaluation Organisational Implications Report Version 1 18

31 5. Function and Gap Analysis In order to implement the organisational responses required above, including altering systems and roles, the SACN is required to interrogate the functional arrangements required. The aim of the function and gap analysis is to identify the functional arrangements which will support the systems proposed above. This is done through the presentation of findings from previous organisational reviews, a detailed discussion of the required functions the presentation of the current functional arrangements, describes the gaps in the functional arrangements and presents the functional arrangements required to implement the organisational responses discussed above. Whilst the functional arrangements appear quite static, it is important to note that the work arrangements are flexible and the organisational culture is dynamic and innovative. The functional analysis forms the basis for the structural analysis and sourcing discussion. The functional analysis describes the general functional arrangements which underpin the systems required to implement the strategic direction. The way in which the functions are organised have a direct implication on the sourcing requirements. The sourcing strategy will take the functional structure as well as project management and strategic considerations into account Identified organisational challenges In order to understand the organisational structure, a review was done of previous organisational pieces. The current status of organisational concerns was assessed in order to inform the new organisational strategy. Retention of talent: In previous reviews, talent retention was highlighted as a concern. Measures to improve retentions, such as salary adjustments, were suggested. At present, talent retention is not a critical concern. At the same time, the SACN has a highly skilled and flexible workforce and so the employee value proposition should always be a priority. Implementation of a knowledge management and communications function: As part of the 2012 organisational review, knowledge management and communications were identified as areas for potential growth within the organisation. The SACN has made progress in this regard, by appointing capacity and commissioning the 2014 communications plan. However there is still room for growth in the way in which this function is organised. Succession planning: Because a great deal of institutional knowledge is held by senior management, succession planning was identified as an area of concern. Succession planning remains a concern, as current systems are still informal. It is hoped that, by implementing the systems described above, the organisation will be able to mitigate the risk to institutional knowledge that is posed by the abrupt departure of a senior member of staff. It is important to note that, as so much of the work that the SACN does is relationship based, it is not possible to mitigate against this risk entirely. A strategy such as the extension of notice periods may also be a useful consideration. Output Evaluation: Previous reviews stressed the need for output evaluation. Output evaluation systems remains a concern and the SACN is currently implementing systems to address this concern. SACN Strategic Evaluation Organisational Implications Report Version 1 19

32 5.2. Organisational systems roles and functions The implementation of the strategy has three elements. The first concerns communications, dissemination and relationship management. The second concerns knowledge management systems. The third concerns institutionalisation and capacity. In order to implement the strategy, four organisational functions are required, executive functions, knowledge production functions, communications functions and corporate functions Executive functions: The following executive functions are required by the strategy: The executive is required to execute high level stakeholder management, including with the senior managers affiliated to member cities, senior national government officials and senior officials at other institutions. The executive is required to build and maintain relationships in a complex political landscape. The executive has responsibility for strategic project oversight. This includes an understanding of where projects are in the project cycle as well as a detailed understanding of the technical output produced. The executive is required to provide strategic advice to shape relevant projects. Financial Sustainability: The executive holds overall responsibility for the financial sustainability of the organisation. This entails some fundraising responsibilities as well as an in-depth knowledge of the annual budget and project spend figures. Governance: The executive holds the responsibility for ensuring that the governance within the organisation is sound. The executive is responsible for reporting to the governance committees set up by the board Knowledge Production Functions In order to implement the knowledge production organisational response, the following functions are required: Project oversight: The knowledge production function is required to have detailed knowledge of current and historical projects. SACN Strategic Evaluation Organisational Implications Report Version 1 20

33 Project management: The knowledge production function is required to manage research projects. This includes managing external contractors, managing the budgets and ensuring that the projects produced are fit-for-purpose. Knowledge needs assessment: The Knowledge Production function should be responsible for running the knowledge needs assessment and ensuring that the needs identified are strategic and comprehensive. Stakeholder management: The Knowledge Production function should be responsible for stakeholder management at all levels Managing reference groups: The Knowledge Production function should be responsible for oversight of all tasks associated with the Reference Groups. This includes administrative and stakeholder management tasks. Impact Assessment: The Knowledge Production function should be responsible of managing the impact assessments of knowledge products Communications Functions In order to implement the 2014 strategy, the following communications functions are required. Dissemination: The communications function should be responsible for managing the dissemination of knowledge products, including digital knowledge products Knowledge Management: The communications function should have oversight of the entire library of SACN product. Impact Assessment: The communications function should be responsible for maintaining the impact assessment systems required by the organisation Stakeholder Management: The communications function should be responsible for the provision of materials to support stakeholder management, including the management of reference groups. Product Packaging: The communications function should have oversight of product packaging and should own all templates and branding Corporate Functions The following functions are required of the corporate structure Finance: The corporate function should take ultimate responsibility for ensuring that financial matters are in order. This includes managing reporting obligations, managing debtors and creditors and ensuring that an audit is conducted annually. Procurement: The corporate function should be responsible for overseeing tender processes. It should also be responsible for procuring all the goods and services required by the organisation. SACN Strategic Evaluation Organisational Implications Report Version 1 21

34 Governance: The corporate function should be responsible for supporting the CEO in matters of organisational and financial governance, including managing MOA requirements. Facilities: The corporate function should be responsible for the maintenance of facilities Legal: The corporate function should be responsible for providing legal oversight of the organisation, including contract management. Human Resources: The responsibility for Human Resource oversight should be held by the corporate function IT: All matters pertaining to the maintenance of IT equipment should be held by the corporate function. Project Administration: Project administration support for research projects Figure 5-1: Functions required by the 2014 strategy 5.3. Current Functional Arrangements The SACN currently uses a lean, flexible organisational structure. The current functional arrangement is as follows: The office of the CEO is responsible for providing strategic direction to the organisation, overseeing governance and maintaining high level stakeholder engagements. The functions that are currently carried out by the Office of the CEO of the SACN are as follows: High Level Stakeholder Management Strategic Project Oversight Fundraising Communications SACN Strategic Evaluation Organisational Implications Report Version 1 22

35 Programmatic functions Governance (Board, network and stakeholder) The programmes team is responsible overseeing the knowledge production, which include knowledge idea generation, Research production and packaging, Product Dissemination and Impact and measurement. The following functions are currently within the programme function: Strategic project oversight Project Management Research implementation Research management Knowledge needs assessment Knowledge Management Impact Assessment Stakeholder management Dissemination Fundraising Learning events (seminars) Reference groups Communications Product Packaging The corporate function is responsible for overseeing all support functions, including finance support, legal support and facilities support. The following functions are currently housed in the corporate function: Financial Management Procurement Governance Facilities Legal Human Resources IT Support Project Administration SACN Strategic Evaluation Organisational Implications Report Version 1 23

36 5.4. Functions Requiring Strengthening Figure 5-2: Current Functional Structure Whilst the core functions played by the SACN are robust, in order to deliver the strategy, there are a number of functions require strengthening. Based on the arguments outlined in the previous chapters, the following functions have been identified as requiring strengthening: Dissemination: Dissemination systems require improvement in order to fulfil the strategic imperative to influence public discourse Knowledge Needs Assessment: In order to stimulate the research market, attention should be paid to knowledge need assessment methods Impact Assessment: Impact assessment systems and roles require definition in order to capture the value of the SACN Governance: the MOUs will be an additional governance burden Product Packaging: Products require innovative and non-traditional packaging SACN Strategic Evaluation Organisational Implications Report Version 1 24

37 5.5. Suggested Functional Arrangement Figure 5-3: Functions requiring strengthening In order to strengthen functions, a new functional arrangement has been proposed. The main shifts are as follows Establishment of a communications function. In order to develop the role of strategic business partner and to provide focus on the communication functions requiring strengthening, it is suggested that full communications function is established. Removal of project oversight from the Executive. In order to drive the organisation forward, the executive is required to have strategic project oversight. However, in order to best utilise the time of the executive, programmatic work should be moved to the programme function Programmatic function focus: Released from some of the communications burden, the programmatic staff will be able to focus on core knowledge production work. The proposed functional arrangements are as follows: The office of the CEO should continue to oversee the strategic direction of the SACN, and will house the following functions: High Level Stakeholder Management Strategic Project Oversight Financial Oversight Governance SACN Strategic Evaluation Organisational Implications Report Version 1 25

38 Corporate support will continue to provide administrative support to the organisation, housing the following functions: Financial Management Procurement/ SC Governance Facilities Legal issues Human Resources IT Support Project administration Communications will be strengthened as a function and assume more responsibilities. The following functions will be housed in communications Dissemination Knowledge management Impact Assessment Stakeholder Management Learning events Product Packaging Programmatic support will continue to oversee the knowledge production functions. Programmatic support will house the following functions: Strategic project oversight Project Management Research implementation Knowledge needs assessment Stakeholder management Reference groups and learning events Impact assessment SACN Strategic Evaluation Organisational Implications Report Version 1 26

39 Figure 5-4: Suggested Functional Structure It is noted that the structure that arises out of these functions, does not necessarily determine or accurately represent the way the organisation operates in practice. This influenced by the organisation s sourcing strategy as discussed in the following chapter. The sourcing strategy takes the functional structure into account, but also addresses project management and strategic considerations. The way in which the organisation operates is, to a large extent, driven by project management considerations. This arrangement will be discussed in the chapter which describes organisational structures. SACN Strategic Evaluation Organisational Implications Report Version 1 27

40 6. Sourcing Strategy The sourcing strategy is an important aspect to implementing the systems and functions described above and should be decided before systems are aligned to it. This section discusses the rationale for the sourcing strategy, ideas for sourcing research resources and the sourcing decision making process. Discussion points raised by the sourcing matrix and the roles of the associates will be clarified. The sourcing strategy summary will be presented. The functional analysis is a major input to the sourcing strategy as it discusses where functions should be performed. There are three other main considerations that are used to form the strategy. The first is the strategic nature of the knowledge production and stakeholder engagement functions. This influences suggestions over who should perform functions and whether they should be sourced internally. The second consideration is the flexible, project-based approach that the SACN takes towards knowledge generation. The third consideration is the SACN s flat organisational culture Sourcing Rationale The SACN faces resource constraints that ensure that at least some of the functions that it is required to fill should be performed externally. The first constraint that we should mention is the funding guideline that targets 70% of the budget for programmatic costs. The second important constraint is that an increase in staff numbers will ensure an increase in staff management burden. These constraints mean that the organisation should allocate internal resources to strategic focuses. The sourcing rationale should also consider the types of knowledge products that the SACN needs to engage with. Strategic research: This research does not generate primary data and seeks to influence discourse. A prime example of this research is the State of the Cities report. Ad Hoc research: These projects are based on an identified need and are often request driven Fundamental research: This consistent sectoral research does not generate primary data but is important for understanding the urban development space. Bespoke research: Strategic research performed and the behest of members Sourcing Research Resources Urban research skills are both highly specialised and core to the SACN s organisational strategy. This means that a discussion of where to source urban research skills and which resources are most suitable for managing project is needed. The following sources of research skills have been identified: SACN researchers: because SACN researchers are internal resources, it is envisaged that they will manage research. SACN researchers should conceptualise, manage and develop research projects. SACN Strategic Evaluation Organisational Implications Report Version 1 28

41 Associates: In order to maximise the impact of associates, the role they play in the organisation should be defined. The associates could assist with ad hoc research as well as provide strategic inputs in research management processes. Research Institutions play a role in stimulating quality urban research, as well as generating primary data. The SACN could explore the possibility of establishing research units within these research organisations Sourcing decision making matrix In order to make a decision around sourcing functions, it is recommended that the SACN use a sourcing matrix. The matrix uses the contribution to operational performance and strategic importance as dimension along which to judge the performance of functions. These dimensions lead to four quadrants which describes the way in which specific functions should be treated. The quadrants are: Form a strategic alliance, retain, eliminate and outsource. Figure 5-1: Sourcing decision making matrix Sourcing decisions are required over the following systems, as described in Chapter 4 above: The production of high-level support documents Website management Automated processes Stimulating research Consultant Management Knowledge Management Capacity Development SACN Strategic Evaluation Organisational Implications Report Version 1 29

42 The summary of the sourcing strategy is as follows Communications is of strategic importance and contributes to operational performance. It should thus be retained internally. Research and knowledge products: The SACN should differentiate between knowledge products. The organisation should form alliances with research institutions for certain urban research. Project management and strategic research should be retained internally. Learning events: Learning events are central to capacity development and relationship building. The learning event design and execution should be retained internally Website: Website maintenance requires highly technical expertise. It should be performed externally Associates: Associates should be retained internally as a draw-down facility 6.4. Incorporating Associates Associates have traditionally been used in the SACN as a method of leveraging their strategic capability, networks and sectoral level knowledge. These have traditionally been shorter-term relationships that have included a great deal of flexibility. Whilst being careful not to lose flexibility, the role that associates are expected to play within the organisation should be solidified. This will enable the organisation to fully leverage the relationships. There are a number of issues that the organisation should discuss: Who should be targeted for associate positions? What role should the associates play within the organisation? How should associates contribute to the SACN strategy? How should associates contribute to the research agenda? SACN Strategic Evaluation Organisational Implications Report Version 1 30

43 7. Organisational Structure Development The organisational structure provides a high level view of the roles and arrangements that are required to implement the strategic outlook. In order to implement the strategy, organisational systems were suggested. The functional arrangements provided a view as to how organisational systems should be arranged. The sourcing strategy took the functional arrangements, as well as the strategic focus of the SACN, the way in which projects are managed and the organisational culture into account. The structural suggestion takes the over-arching strategic imperative, the functional arrangements and the sourcing strategy into account. The current SACN structure is presented, the rationale for the structural shift is described and the new structure is identified Current Structure The current structure has a head-count of 17 people. The following roles are placed in the Office of the Chief Executive Officer Chief Executive Officer Executive assistant Knowledge Management and Communications Manager Research Assistant The following roles are placed in Finance and Corporate Support Executive Manager Finance and Corporate Support Finance and Corporate Support Administrator Manager Communications support The following roles are placed in the Programmes structure Executive Manager Programmes 2 Programme Managers 3 Researchers Programme Administrator 4 Interns SACN Strategic Evaluation Organisational Implications Report Version 1 31

44 Figure 7-1: Current Structure 7.2. Rationale for Structural Shift The organisational responses presented above described the need for communications to play a strategic business partner role. This role entails a strategic understanding of the SACN projects as well as an understanding of the complex political landscape in which the SACN operates. The communications role will also be required to have support the knowledge dissemination process. In order to enable this shift, is important that communications is given seniority and enough capacity. Seniority is required in order to engage with the strategic business partner role. Capacity is required to ensure that all the work required is implemented Suggested Structure In order to carry through the functional changes suggested, a slight amendment to the current structure is suggested. Mindful of the need of the SACN to keep corporate costs below a certain only three additional roles have been suggested. The communications functions is suggested as a stand-alone functions. In addition to the junior capacity recommendation, it is suggested that the function is given seniority in the form of a senior manager. This is to ensure that the communications function can manage the increased workload suggested by the 2014 strategy. Although the capacity and seniority recommendations are strong recommendations, the SACN may prefer to house the communications function in the office of the CEO as an interim incubation measure. As the website is an integral part of the strategy, as well as other electronic systems, it is suggested that an It administrator be added to the corporate functions portfolio. Whilst this resource would not be able to carry out all the required IT functions themselves, they would have the expertise to manage IT contracts and would be an immediate point-person. In order to manage the current work-load, it is suggested that the programmes function receive an extra programme manager as well as an extra programme administrator. SACN Strategic Evaluation Organisational Implications Report Version 1 32

45 Figure 7-2: Suggested Structure 7.4. Interim Structure In order to address the immediate priorities of the SACN, an interim structure is suggested. This will assist the organisation to implement immediate strategic needs. It consists of the appointment of one communications officer and the implementation of the communication structure Organisational Culture Figure 7-3: Suggested Interim Structure The SACN is a knowledge producing organisation which has a project-focus. As we discuss the structure of the organisation, it is important to note that the structure does not dictate the way in which work is managed. The best way to describe the way in which work is managed within the SACN is by using the matrix structure. Resources are allocated per project and project managers have responsibility for the management of resources on the project (although line managers retain HR responsibilities). The Matrix structure allows researchers to move between SACN Strategic Evaluation Organisational Implications Report Version 1 33