COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS

SAIMAS 29th ANNUAL CONFERENCE:

Final Organisational Development &

Design Framework for Gauteng

Province Municipalities

31 OCTOBER 2019

FUTHI KGWEFANE

PRESENTATION OUTLINE

1. Key legislative and policy context

2. Strategic Imperatives

3. Back to Basics

4. Local Government and Community

Support

5. Final Organisational Development

and Design Framework

6. Lessons learned and Principles for

Implementation of OD& D

Framework

7. Key Chapters explored in 2019/2020

Financial year

KEY LEGISLATIVE AND POLICY CONTEXT

LOCAL GOVERNMENT MANDATE

Constitution (1996)

(S152) The objectives of local government

are:

a) to provide democratic and accountable

government for local communities;

b) to ensure the provision of services to

communities in a sustainable manner;

c) to promote social and economic

development;

d) to promote a safe and healthy

environment; and

e) to encourage the involvement of

communities and community

organisations in the matters of local

government.

Outcomes Provision of Household

Infrastructure & Services.

Creation of Livable, Integrated Cities, Towns and Rural Areas

Local Economic Development

Empowered Communities

KEY LEGISLATIVE AND POLICY FRAMEWORK

• The Constitution of the Republic of South Africa, 1996;

• The Public Service Act 103 of 1994 (as Amended in 2007);

• The Municipal Systems Act, 32 of 2000;

• Local Government Structures Act 117 of 1998;

• The Municipal Finance Management Act (MFMA) section 136 (1-2);

section 137 (1-3);

• The Intergovernmental Relations Framework Act 13 of 2005;

• The White Paper on Transforming Public Service Delivery (Batho Pele),

1997; Outcome 9 MTSF (2014 -2019)

STRATEGIC IMPERATIVES

COGTA VISION, MISSION AND STRATEGIC GOALS

To drive an effective system of cooperative governance to build

sustainable municipalities, inclusive communities and

the institution of Traditional Leadership in the Gauteng City Region

Sustainable, Smart, Inclusive Cities and Communities in the

Gauteng City Region

VISION

To build innovative and dynamic corporate governance systems and processes that support the core business of

the department by 2025

To provide and coordinate differentiated, innovative and evidence based support and interventions to contribute towards building sustainable municipalities for effective

service delivery

To promote spatial integration and inclusive growth

across cities and communities in the GCR.

To institutionalize and champion cooperative governance and IGR to build sustainable municipalities and the institution of Traditional Leadership across the GCR

5 STRATEGIC GOALS MISSION

7

To promote sustainable communities in pursuit of the global agenda and mainstream SDGs

STRATEGIC GOALS FOR 2018 - 2020

STRATEGIC VISION OF GAUTENG - COGTA

TEN PILLARS TRANSFORMATION, MODERNISATION AND RE-INDUSTRALISATION

GO

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Local Government for and by citizens where Participatory Democracy and

Effective Governance fosters Economic Development, Financial Stability

and Sustainability and a Better Quality Of Life

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ANALYSIS DASHBOARD

Doing Well Strong political and administrative leadership; Characterised by political stability; Councils meeting as legislated Functional council and oversight structures; Regular report back to communities; Low vacancy rates; Collection rates above 80% on average; Spending on capital budgets above 80%; Continuity in the administration; Consistent unqualified audit outcomes; Consistent spending of capital budgets; Responsive to service delivery needs; Evidence of good administrative and financial management

At Risk Fair amount of financial and records management; Some level of political and administrative stability; Reasonable feedback through community meetings; Reasonable access to basic service; Councils sitting fairly regularly Reasonable adherence to the IDP and Budgets compliance and little innovation, some form of stability; Most of administrative positions filled by incompetent staff; Some critical positions not filled; Poor expenditure of capital budget; Poor records keeping

Dysfunctional Challenges of political-administrative interface; High political in-fighting and instability; Non-compliance with rules and regulations; High vacancy rates; High levels of incompetency among staff; Extremely low levels of capital budget spending Inappropriate spending of budgets; Overall disregard for financial and supply chain management regulations; Compromised service delivery High level of community dissatisfaction resulting in protests; Absence of Plans

STATE OF MUNICIPALITIES IN THE

PROVINCE A significant number of municipalities in the province are either At Risk of Dysfunctionality, or are

Dysfunctional (Back-to-Basics Approach).

10

1. City of Ekurhuleni 2. Midvaal LM

3. City of Johannesburg 4. City of Tshwane 5. Sedibeng DM 6. Merafong Local

Municipality 7. Mogale Local

Municipality 8. Rand West City

Local Municipality 9. Lesedi Local

Municipality

10. Emfuleni Local Municipality

11. West Rand DM

Dysfunctional

Currently, the Provincial Government is actively intervening in the two municipalities of Emfuleni LM

and West Rand DM in terms of Section 139 of the Constitution and the MFMA.

These interventions are primarily aimed at bringing about either the institutional stability, financial

viability, or both, in these municipalities.

Emerging evidence suggests that unless a different approach is taken to support all the

municipalities in the province, many of them will become dysfunctional.

LOCAL GOVERNMENT AND COMMUNITY SUPPORT

Methodology - Demand and Supply Driven Support to Municipalities and Metros.

Technical Support: The deployment of highly specialized capacity/expertise in the core municipal performance areas over the short, medium and long term.

Capacity building: The provision of formal accredited and competence based classroom training, mentoring and coaching, as well as action learning.

Mobilizing and Pooling Funding: This entails the pooling and transfer of funds to municipalities to address challenges in the areas of service delivery, finance, capacity building, institutional and administrative capacity, public participation, community development etc.

KEY FUNCTIONS OF MIS

The Municipal Institutional Support ( MIS) Directorate provides

Financial, Technical and Advisory support to Gauteng

Municipalities, depending on the identified needs.

The Directorate key Functions are;

• Capacity Buildings and Training

• Organisational Development and Design

• Performance Management

• Planning and implementation of the HR Value Chain

FINAL ORGANISATIONAL DEVELOPMENT AND & DESIGN

FRAMEWORK UNPACKED

ONGOING THEME

“Transforming Local Government

through Organisational Development

and Design Processes”

BUSINESS STRATEGY – HR BUSINESS ALIGNMENT

Strategic HRM

Talent Management

HR Risk Management

FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN

HR VALUE & DELIVERY PLATFORM

Work- force

Planning

Learning

& Develop

ment

Perfor- mance

Management

Reward

& Recogni

tion

Employee Wellness

ERM

Organisational Development

HR Service Delivery

HR Technology (HRIS)

Prepare

Imple- ment

Review Improve MEASURING HR SUCCESS HR Audit: Standards & Metrics

H R

C O

M P

E T E N C

I E S SABPP- HR VALUE CHAIN

OD & D FRAMEWORK (15 CHAPTERS)

1. Introduction to Organisational Development

2. Strategy and Policy

3. Organisational Design

4. Job description Development & Job Evaluation

5. Workforce Planning

6. Work-Study

7. Productivity Improvement

8. Norms & Standards (Standard Operating Procedures)

9. Business Process Reengineering ( Process Modelling)

10.Layout Out and Workflow

11.Organisational Change Management

12.Organisational behaviour Culture & Climate

13.Form design & Management

14.Benchmarking

15.Knowledge Enablers & Skills

WHY OD & D FRAMEWORK ?

Municipalities are experiencing challenges in core functions of

Organisational Development (OD) discipline; and

Absence of knowledge sharing platforms in OD in Local

Government.

Gauteng Municipalities requested CoGTA to:

Facilitate the establishment of an Organisational

Development and Design Framework (OD&D);

Establish the Organisational Development & Design Task Team

to develop an OD& D framework; and

Facilitate the establishment OD forums to meet on quarterly

basis to share knowledge and best practices.

Establishment of

CoGTA OD & D

unit

Idea of Local

Government

having OD

guiding tool was

Conceptualized

2015

CHANGE MANAGEMENT APPROACH

JOURNEY TO THE ESTABLISHMENT OF OD & D FRAMEWORK

Establishment of the

OD &D Task Team

Identified a pool of

Knowledge Partners

and Consultations

extensive took place

1ST Draft of OD & D

Framework

Establishment of OD

Forum

2016

Approval of OD

& D Framework by former

MEC (Mr Paul Mashatile).

Launch of OD &D

Framework

1st Phase: Roll-Out

session for OD

Practitioners

(Chapter 1-5 and 10-15)

2017

2018

1st Phase: Roll-Out OD

Practitioners

completed (Chapter 6-

10).

Training of BPM for 30

OD

Managers/practitioners

Graduation Ceremony

in BPM

2nd Phase: Roll-Out

session for Senior

Management. (not

supported)

2019

Urgency increased to

get buy-inn from

Accounting Officers

Close-up approach

(slot) in MMs

Forum

Training

Workshops in

Productivity

Improvement &

Organisational

Change

Management

Continuous

support &

monitoring.

OBJECTIVES OF THE OD & D FRAMEWORK

To set out core OD&D functions and standards

that will guide Gauteng Municipalities;

To strengthen and position OD&D as a strategic

partner in Local Government;

To determine the proper location of OD&D to be

effective in the Municipality;

OBJECTIVES OF THE OD & D FRAMEWORK

Continues…….

To Professionalize OD&D by registering OD

practitioners and managers to the professional bodies

Establish minimum skills required for OD&D

discipline in municipalities;

Enable OD practitioners to take ownership of the

functions that are in ambit of the OD discipline

OBJECTIVES OF THE OD & D FRAMEWORK

Continues…..

Emphasise the Local government approach in working

towards effecting culture change and unleashing

worker creativity within Municipalities; and

Highlight to senior management that OD practitioners in

spite of their location in the organisational structure,

are responsible to contribute towards improved service

delivery and positive organisational work climate.

KNOWLEDGE PARTNERS

• TASK TEAM

• Executive/OD

• SAIMAS

• SALGA

• UNISA

• DHA

• SAODN

• DCOG

• Worldsview

Academy

• SABPP

COGTA

OD & D FRAMEWORK STEPS FOR IMPLEMENATION

Awareness of the existence of the Organisational

Development & Design Framework.

Council Approval and adoption of OD& D Framework

for Implementation.

Creation Posts and filling of OD Practitioners Positions

on approved structures.

Providing Training and re-skilling of key OD Functions.

BENEFITS OF IMPLEMENTING THE OD & D FRAMEWORK

Benefits from implementing the OD & D Framework as Guide and

being part of the OD & D Forum:

Continues knowledge sharing of best practices and lessons learnt

in OD Forums;

Establishing, building and maintaining stakeholder relationship

with Knowledge Partners;

Prioritized and nominated for scheduled training programmes and

Workshops;

Developing and strengthening the Business Acumen

Identifying benchmarking partners and assessing the use the

different Benchmarking Methods.

Building capabilities and participating in the identified Project /

Task teams at Provincial and National level (e.g. DCOG)

CHALLENGES IDENTIFIED IN RECENT YEARS WITH THE USE OF

CONSULTANTS

ORGANISATIONAL DESIGN

Organisational Structure Projects

Lack the consultation and buy-inn from service delivery

departments units and support business units.

Organisational Structure not aligned to the IDP proprieties.

Lack of joint planning, skills transfer , task ownership that to

allows continuity after consultants have left the Municipality.

Expensive purchase of software's, that are not fully optimized.

ORGANISATIONAL DESIGN

Organisational Structure Projects

Structures becoming fully bloated , without any rational of the

creation of specific units and positions, resulting in

Unsustainable salary costs.

Positions name of used not in line with the emerging Local

Government terminology.

Migration and placement becomes an endless, mystifying

process, that is not understood by Departments Organised

Labour of the Municipality. Examples: Ekurhuleni, Merafong & Rand

West and Emfuleni, City of JHB entities

APPLYING USEFUL LESSONS LEARNED AND PRINCIPLES FOR IMPLEMENTATION

OF THE OD & D FRAMEWORK

AS THE OD FORUM

BPM METHODOLOGY

Activation

Discovery

Improvement Implementation

Maintenance

BUSINESS PROCESS MANAGEMENT

BPM should be embedded in the functions of organisational Structure, It should not be an ad-hoc responsibility.

BPM should integrate all stakeholder groups. It should not neglect employee participation

BPM should contribute to strategic value creation. It should not be done for the sake of doing it.

BPM should be economical. It should not be over-engineered.

BPM should foster continuity, it should be a permanent practice. It should not be a once-off project.

BUSINESS PROCESS MANAGEMENT Cont…

BPM should develop Capabilities. It should not be limited to Supply Chain/ HR.

In producing process maps; processes must be identified consulted and reviewed with experts to ensure completeness.

Municipal Standard Chart of Accounts (mSCOA)

MFMA Circular 80 mSCOA is misinterpreted as a Financial Reform – mSCOA is Business

Reform.

15 Business Process must be unpacked and aligned to the mSCOA as per Gazette 37577- Municipal Regulation on Standard of Accounts.

In cases where mSCOA implementation is driven by consultants and system vendors. Information should transferred to municipal officials.

LEAN SIX SIGMA ACTION LEARNING

OD & D FRAMEWORK KEY CHAPTERS

EXPLORED IN 2019/2020 FINANCIAL YEAR

PRODUCTIVITY IMPROVEMENT

Training Workshop: 30 OD Managers/ Practitioners/Waste Management Managers

Productivity Measurement (Quality & Quantity) Waste Management Department. Workshop will cover the following:

Productivity Measurement to tools and techniques

Waste Management Norms and Standards

Identified Business Processes, for Waste Management

Awareness in Environmental Standards

SWOT Analysis of Waste Management

Effectiveness Measures: Quantity, Quality & Customer Satisfaction

Efficiency Measures: Process time & Process Cost

Participants will share good practice productivity improvement from different Municipalities.

ORGANISATIONAL CHANGE MANAGEMENT

Training Workshop: 30 OD Managers/ Practitioners

Organisational Change Management in Practice.

Practitioners will learn how to engage the whole organisation in the

change process by means of effective communication.

By means of:

Providing awareness in implementing different change models

Learning the importance of building vision around the targets for

change, and not based on the opinions of the change sponsor or on

the results of change.

Ensuring that the change management programme components are

co-ordinated and integrated.

ORGANISATIONAL DEVELOPMENT AND DESIGN CAPACITY: MUNICIPALITIES

CAPACITY IN ORGANISATIONAL DEVELOPMENT

Municipalities and encouraged to budget and prioritize the creation of OD positions to ensure core functions entailed in OD Framework are implemented.

Municipalities without OD Positions in Organisational

Structure:

Merafong

Midvaal

Lesedi

West Rand District

Rand West City

TRAINING FOR OD MANAGERS & PRACTITIONERS

As outlined in Chapter 15 of OD & D Framework:

OD Practitioners are encouraged to strengthen their business acumen by means of the following:

Participating on municipal projects and committees to gain deeper understanding and an appreciation on how the business units operate, and provide technical expertise and advisory support where its required.

Planning/Budgeting: Submitting training needs to be included in the Municipal WSP and following up on the training intervention/s.

Joining Professional networking in the associations to keep

abreast in the latest professional trends.

TRAINING FOR OD MANAGERS & PRACTITIONERS CONT..

The 10 areas of expertise/development identified by the OD & D Task Team are:

Focus level

• Organisational Design • Facilitation Skills • Team Development • Strategic Management • Business Acumen • Project Management • Change Management • Consulting • Personal Development • Organisational Communication

Execution Level

• Joint Problem Solver

• Expert

• Collaborative Business

Partner

• Strategic Advisor

• Fact Finder/

Diagnostician

CHAPTER 15: OD COMPETENCY MODEL

NON-IMPLEMENTATION OF THE OD & D FRAMEWORK

Implications of non-implementation will lead to the following:

• Low Staff Morale: Unclear JDs, delay in placement processes,

lack communication; Change Mang Interventions

• High Absenteeism: Overworked staff, emanating from high

vacancy rate, lack of Workforce planning.

• Labour Unrest & Poor Service Delivery: Unclear, uninformed

Norms standards, Business Processes, not reviewed, Works study

investigation not performed.

• High Staff turnover: Officials feel they are no longer adding value

to the Municipality

• Ill-discipline increases due to poor policies and procedures

• Disputes and referrals increases due to salaries disparities

• Unsustainable Salary Costs: Lack of evaluated positions on

same evaluation system.

QUESTIONS