Victor Khanye Dr JS Moroka Emakhazeni Emalahleni Steve Tshwete Thembisile NDM mSCOA –ICF 22 June 2015 AL Stander NKANGALA District Municipality

““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !

Victor Khanye

Dr JS Moroka

Emakhazeni

Emalahleni

Steve Tshwete

Thembisile

NDM mSCOA –ICF 22 June 2015

AL Stander

NKANGALADistrict Municipality


PRESENTATION OUTLINE(video and graphic sourced from unknown sources on the internet)

• Why SCOA?• How do your get there???• Change management in a minute• DR Kotter: 8-steps for leading change• Lessons learnt - PEOPLE mSCOA ROCKS• Implementation Plan • Expected areas of risk• Unexpected areas of risk• Challenges• Segment specific challenges• Advise to non-pilot municipalities• Decide for yourself


Why SCOA???

• Wonderful Math Calculation!.mp4


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HOW DO YOU GET THERE????



Dr. Kotter: 8-Step Process for Leading Change



Dr. Kotter has proven over many years of research that following “The 8-Step Process for Leading Change” will help organizations succeed in an ever-changing world:

1: Establishing a Sense of Urgency

Help others see the need for change and they will be convinced of the importance of acting immediately.

2: Creating the Guiding Coalition

Assemble a group with enough power to lead the change effort, and encourage the group to work as a team.

3: Developing a Change Vision

Create a vision to help direct the change effort, and develop strategies for achieving that vision.



4: Communicating the Vision for Buy-in

Make sure as many as possible understand and accept the vision and the strategy.

5: Empowering Broad-based Action

Remove obstacles to change, change systems or structures that seriously undermine the vision, and encourage risk-taking and non-traditional ideas, activities, and actions.

6: Generating Short-term Wins

Plan for achievements that can easily be made visible, follow-through with those achievements and recognize and reward employees who were involved.



7: Never Letting Up

Use increased credibility to change systems, structures, and policies that don’t fit the vision, also hire, promote, and develop employees who can implement the vision, and finally reinvigorate the process with new projects, themes, and change agents.

8: Incorporating Changes into the Culture

Articulate the connections between the new behaviors and organizational success, and develop the means to ensure leadership development and succession.



Summing-up: We have to work hard to change an organization successfully. If we’re too impatient, and if we expect too many results too soon, our plans for change are more likely to fail. When we plan carefully and build the proper foundation, implementing change can be much easier, and we’ll improve the chances of success.


LESSONS LEARNT:PEOPLE mSCOA ROCKS


PEOPLE

• LG serves the people of SA and this project should assist us in doing that better.

• People can make or break such a project• Buy-in from top levels (Executive Mayor and MM)• Involvement of a cross-functional team.• The mSCOA Champions must be committed,

dedicated and performance driven people• Don’t think that all people experience change the

same


PEOPLE

The mSCOA piloting has brought about change in municipal processes, systems, organizational structure and job roles. This change has been an unsettling issue amongst departments and employees at all levels.

Communication is key!!!!!


mSCOA

• M- Mayor buy-in, MM to take charge, Multi-dimensional classification structure, Mitigate risk, Monitor progress, Motivation to change (buy in from all stakeholders), MOU with system vendor/s, Machinery of state is SLOW


mSCOA

• S- Strategic(include the project in your IDP and Budget), Study the regulations, Start ASAP or earlier, be prepared to get your hands dirty, System vendor capabilities (Build on new technology), Munsoft is a dedicated strategic partner.


mSCOA • C- Communication, Change (not easy and not

for the faint hearted, Cost, Comparatives in AFS

• O- Organise & plan, Organisational reform, Own chart (understand it)

• A- Assessment, Adaptable to changes (adoption of GUID approach made this easier and quicker to respond), AG (GRAP), Audit trail of change process, Alignment of IDP, SDBIP, Budget and PMS


ROCKS

• R- Resistance to change, Reward, Redo, Risks (backup plans)

• O- Ownership of the process

• C- Cohesion between Cross functional team, Challenge yourself and the team

• K- Knowledge sharing, Keep record of challenges and how you over came it, Keep the momentum


ROCKS

• S- Survive, Service delivery, make it Stick. (It takes the majority of the organization to truly embrace the new culture for there to be any chance of success in the long term), System vendor positive responsiveness to required development or change can make your life easier (development of new modules).


Implementation plan

Implemetation plan, risks, mitigation and progress to date 19 June 2015.docx


Expected areas of risk

– Change management– Capacity at Municipalities to embrace mSCOA– Funding– Comparative figures (3 years)– Prior year adjustments in preparation of 2014/15 AFS– Are the MBRR budget and reporting schedules &

upload files to NT LG database going to change to accommodate mSCOA and when is this expected?

– Buy in of AG on reform – process followed for implementation and auditing of AFS


Un-Expected areas of risk

– Late release of mSCOA V5.3 to comply with the time frames of budget regulations.

– Integration with third party vendors was complicated

– Late rollout of training for mSCOA Champions and other employees in the municipality (don’t under-estimate the importance of re-inforcement to make the change stick)

– V5.3 flagged accounts ‘do not use’, whilst already budgeted for, also changes in GFS


Challenges

• Tight timeframes of mSCOA and other day to day activities

• Late appointment of mSCOA assistant• Current mSCOA does not fully cater for District

Municipalities (Core and non-core still an issue, e.g. Social Services)

• Prior year adjustments in preparation of 2014/15 AFS

• Need of interim adjustment budget (not in accordance with MBRR)


Challenges

• The current MBRR budget and reporting schedules & upload files to NT LG database are not aligned to mSCOA. Draft budget was tabled & final budget approved on the old budget formats

• Alignment changes from old GFS to new mSCOA GFS

• Buy in of AG on reform – process to be followed for implementation and auditing of AFS


Challenges

• Ensuring that all stakeholders will be understanding the new mSCOA formats

• Interface between VIP and Munsoft to be finalised


Segment specific challenges

Function• Non provision for core and non-core functions of

Districts

Item• Classification of items different from old chart, e.g.

Employee wellness, Interns, Audit committee members

• Absence of sufficient control accounts• Detail of some items, e.g. Travel and subsistence

vs absence of detail on items like loans, investments, etc.


Segment specific challenges

Funding

• Non breakdown of equitable share (breakdown required for calculation of level of municipality ito the upper limits, senior management regulations etc.)

Regional• Location vs who receives the benefit

Costing• None at this stage as it is not used at NDM

Project• Limited breakdown on typical work streams


Advice to Non-Pilot Municipalities

• Start today, study the regulations, study the NT project document.

• Appoint a dedicated project team and mSCOA champions

• Prepare a mSCOA implementation plan and identify all risks that might affect the success of the project

• Start to align the old chart to the new one• Ensure that existing hardware will be able to

accommodate mSCOA



• Make provision in your budget for mSCOA implementation

• Monitor progress against the implementation plan, institute corrective actions and adjust the plan with unexpected issues.

• Ensure that you have backup plans or mitigation strategies for all identified risks.

• It is not a GL change it is a business change



• Most of all be a change agent (change is never easy but it empower you to move forward) – communication is key

• Get buy in from all relevant stakeholders, including political buy in.

• This is not a financial reform it is a business reform – all managers must be involved. The mSCOA changes the way we do business and the way we report on transactions.


Decide for yourself


We have decided• To embrace the mSCOA fully• As we will be adjusting our dance moves in the

next financial year, others will be starting with mSCOA

• It was good to hear our people saying things like:– “We are mSCOA champions and I can teach other

municipalities” – “mSCOA made us really to apply our minds

preparing our budget”

““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all ! 32

THANK YOU

Documents

Victor Khanye Dr JS Moroka Emakhazeni Emalahleni Steve Tshwete Thembisile NDM mSCOA –ICF 22 June 2015 AL Stander NKANGALA District Municipality