MMC US 116341 Slides 2023 - AJ - 8 November 2023

MUNICIPAL MINIMUM COMPETENCE PROGRAMME
Module Code 13 208 191: 20 Credits
US 116341: CONDUCT PERFORMANCE

MANAGEMENT IN A SOUTH AFRICAN
MUNICIPALITY
Presented by: Dr Anthea Jantjes

Photo by Stefan Els
Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

INTRODUCTION TO US 116341
OUTCOMES (p. 8)
• Implement performance management systems and mechanisms in a South African
municipality or entity as required by the local government legislative framework
• Write and develop performance management concepts for the effective
measurement of municipal / entity strategic and financial performance.
• Develop and identify the critical areas of a performance management agreement to
be used as a form of contract of employment for a municipal / entity staff member
• Identify and establish institutional arrangements required for performance
management in a municipality / municipal entity
• Apply performance management concepts to municipal / entity service delivery

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ASSIGNMENT
• INSTRUCTIONS:
• Compare how your organisation sets up and apply Performance Management System (PMS) processes, highlighting your findings and
recommendations with respect to the required prescripts in the learner guide and legal frameworks (legislation, guidelines, circulars,
and best practices). Be critical in your analysis by illustrating good or bad practices and make use of reports of oversight bodies, such
as audit committees, internal and external audit, and others to support your statements. DO A CRITICAL ANALYSIS OF PMS IN YOUR
ORGANISATION AND discuss THE LAST 3-5 YEARS’ MAIN NON-COMPLIANCE ISSUES AND REASONS FOR IT, explaining root causes and
making recommendations and arriving at your conclusion. Refer to legislation applicable to your case. Use the same public sector
organization as for the contact time assessments as case study if you do not want to or cannot make use of your or an organisation.
• CONDITIONS:
• Assignment: 1000-2000 words. The assignment will be marked as competent only if it addresses the three elements: 1) theory
(33%), 2) description of application in work environment (33%) and 3) findings and recommendations (33%) If any of these areas
are not found in the assignment it will be marked as NYC. Assignments are considered competent if it meets the outcomes set in this
table. PLEASE NOTE THAT ALL ASSIGNMENTS REQUIRE CREDIBLE EVIDENCE AND THEREFORE REFERENCES TO SOURCE DOCUMENTS.
•
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LEARNING OUTCOMES (p. 14)
• Define the concept performance management
• Explain how performance management fits into municipal service delivery
• Understand the role and responsibilities of the role players in municipal
performance management
• Discuss the legislation governing performance management in municipalities
• Discuss the procedures and steps that need to be followed when developing
performance management in a municipality
• Evaluate the role of community involvement in developing a performance
management system
• Explain the legislative requirements for performance reporting
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INTRODUCTION (p. 15)
• After the transition to democracy - focus was policy development
• Later overtaken by approach to improve service delivery through efficient, economic and effective
service processes
• Brought increased emphasis on performance management to ensure that government is more effective
in service delivery
• Performance management – seen as key to the provision of quality service delivery
• Performance management system the cornerstone of a strategic management system aimed at linking
long-term strategy to short-term actions
• Root of managing any organisation successfully:
• strategic planning,
• budgeting and
• performance management
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INTRODUCTION
THE LINK BETWEEN STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT
PERFORMANCE MNGMT
STRATEGIC PLANNING
Vision Environmental Strategy Strategy Implementation Evaluation and

Scan Formulation SDBIP Control
ENGAGE ENGAGE ENGAGE

Mission SWOT Analysis Performance Management Performance
KPA Measurement; M&E; Management
Values framework Reporting; Capacity Previous plus
PMS Building; Intervention; Impact
Objectives Objectives KPI’s Incentives Evaluation
Strategic Planning and Performance Management components of Strategic Management

Strategy formulation informs tactical planning, resource allocation and organisational development
The Key Performance Area Framework is arguably the pivotal point for the various components of
strategic management
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INTRODUCTION
• KPA FRAMEWORK IN A SOUTH AFRICAN MUNICIPALITY
OUTLINED MANDATE
KPA FRAMEWORK (Section 152 of Constitution – What about Section 40, 41 IGRs)
PRESCRIBED, Infrastructure Social and Institutional Democracy Financial
COMMON KPA’S and Services Economic Transformation and Management
Development Governance
NEEDS, PRIORITIES
SPECIFIC TO COMMUNITY [THE TASK ENVIRONMENT] AND DERIVED FROM
STRATEGIC OBJECTIVES STAKEHOLDER ENGAGEMENT - STRATEGIC PLANNING PROCESS - STAKEHOLDER
KPI’S AND TARGETS ENGAGEMENT - PERFORMANCE MANAGEMENT – STAKEHOLDER ENGAGEMENT

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INTRODUCTION
Aim of a performance management system
• Clarity: helps to clarify institutional and individual roles, arrangements and controls
with regards to the management of performance
• Service delivery or application of activities: Implementation: ensures achievement of
strategies through implementation of various performance management phases
(planning, monitoring, reporting and evaluation)
• To ensure municipal service delivery: Effective, efficient and economical
• Required to formulate strategic plans, allocating resources via a municipal budgeting
process; and monitor and report on the results as required by legislation
• This in turn requires formulation of IDP, strategic objectives, budgets and SDBIP

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INTRODUCTION
• But implementation of activities based on SDBIP alone achieving strategic objectives
PMS BECOMES “GLUE” to ensure alignment
• performance information and management is essential to focus attention of
stakeholders on performance of individual municipalities against their IDP’s and
SDBIPS
• System of monitoring performance of municipalities has been legislated to
continuously monitor – powerful tool for high performance
• Please read the relevant legislation covered here

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DEFINING PERFORMANCE MANAGEMENT (p. 18 – 21)
• It is multidimensional technique applied to the performance of organisations and
employees
• In general performance management can be defined as a systematic approach to
ensure the improvement of performance through an ongoing process of establishing
strategic objectives by measuring performance, aligning priorities, collecting and
analysing data, reviewing and reporting on data and using it to improve
• Comprises of four distinct processes namely
• Planning / review,
• Monitoring,
• Reporting and
• Evaluation
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DEFINING PERFORMANCE MANAGEMENT (p. 18)
Performance Management is a strategic approach to management, which
equips leaders, managers, workers and stakeholders at different levels with
a set of tools and techniques to regularly plan, continuously monitor,
periodically measure and review performance of the Municipal Council in
terms of indicators, to determine its efficiency, effectiveness and impact;
thereby ensuring improved service delivery and value for money to the
community and citizens
Learner Guide, 2015: 18

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DEFINING PERFORMANCE MANAGEMENT
• A performance management system refers to the tools used by an
organisation to ensure that its performance is planned, monitored,
reported on and evaluated on a continuous basis
• Within this framework a municipal performance management system
makes provision for the development of an
• IDP,
• MTREF,
• budget,
• SDBIP and
• employee performance plans
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DEFINING PERFORMANCE MANAGEMENT
• Measurement is essentially the process of analysing the data provided by the monitoring
system in order to assess performance
• Monitoring is the measurement through time that indicates movement away from or towards
achievement
• Performance is measured against the achievement or non-achievement of targets
So, measurement:
• Is used as an early warning monitoring system
• Is a risk assessment tool
• Provides strategic focus and direction to the organisation
• Improves governance and accountability
• Promotes alignment and transparency; and
• Improves management effectiveness
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DEFINING PERFORMANCE MANAGEMENT (p. 19)
• Two inseparable and integral components of Performance Management:
• Organisational performance management to determine whether the municipality
is achieving its strategic objectives; and
• Employee performance management to determine how well employees perform
their duties towards the achievement of the municipality’s objectives
• The cascading hierarchy of accountability: Community, Council, Executive,
Municipal Manager, Department and Division Heads, all Employees

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PERFORMANCE MANAGEMENT IN THE CONTEXT OF MUNICIPAL
SERVICE DELIVERY (P. 21-22)
• Criticisms of local government is that it is not delivering the required services
• Performance management is a mechanism that is used to ensure that the
municipality is doing its work and delivering on its mandate
• Performance management is about setting indicators of performance and measuring
achievements against these indicators
• Personal underperformance must be remedied and punitive action taken – each
employee must have performance management contract and be held accountable
• Therefore in a system if one employee underperforms, institution underperforms

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ROLES AND RESPONSIBILITIES (p. 22)
• The main role-players in performance management are the same as in the
IDP Process. Section 39 of the Municipal Systems Act, 2000 states that
executive mayor, executive committee, or a special committee of
councillors (in a ‘plenary type’ municipality) must manage the
development of the PMS and submit it to council
• P23 – 29 roles and responsibilities of Council, Executive Mayor, Municipal
Manager, Council Committees, Strategic Executives and CFO’s, Middle
Management and Staff, Internal Audit, Audit Committees, Auditor General
• Planning/review, monitoring, reporting, evaluation
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LEGISLATIVE FRAMEWORK (p.30-53)
Legislation Action by Municipality
S25(1) of MSystA Council to adopt 5 year IDP
S34(a)(i) of MSystA Council to review IDP in accordance with performance measure assessment
S38 of MSystA Municipality must establish Performance Management System
S40 of MSystA Municipality must establish mechanisms to monitor and review PMS
S41 of MSystA Municipality must set KPI’s, targets and objectives and measure, monitor, review, report
S42 of MSystA Municipality to involve community in the development, implementation, review of PMS
S43 of MSystA KPI’s must include general KPI’s as per regulations
S44 of MSystA Municipality to make known KPI’s and performance targets of PMS internally and public
S16 of MFMA Approve annual budget
S24 of MFMA Council to approve annual budget 30 days before start of budget year
S129 of MFMA Council to approve annual report and adopt an oversight report

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LEGISLATIVE FRAMEWORK
Legislation Action by the executive
S30 MSystA Executive to manage drafting of IDP, assign responsibilities to MM, submit for council adoption
S39 of MSystA Executive to manage development of PMS, assign responsibilities to MM, submit to council
S21(1) (b) of MFMA Mayor to submit time table for budget and IDP review process
S53(1)(c) of MFMA Mayor to take reasonable steps to ensure council approves budget timeously, approves SDBIP
within 28 days after budget is approved, annual performance agreements of Sec 56 are signed
S53(3)(a) of MFMA Mayor to ensure publication SDBIP within 14 days after its approval
S53(3)(b) of MFMA Mayor to ensure publication of performance agreement of AO, senior managers within 14 days
after SDBIP approval
S53(2) of MFMA Mayor to submit reports to Council and MEC delays on implementation of budget, SDBIP,
signing of performance agreements
S72 of MFMA Mayor to table Sec 72 report in Council: Mid-year budget and performance assessment
S127 of MFMA Mayor to table annual report in Council with seven months after financial year

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LEGISLATIVE FRAMEWORK
Legislation Action by municipality (Mayor and Accounting Officer)
S46 of MSystA Prepare performance reports annually as part of annual report
S57 of MSystA Conclude employment contracts for MM and senior managers
S17 of MFMA Provisions for contents of budget and supporting documentation
S22 of MFMA AO to publish budget, invite public comment, submit to NT
S68(a) of MFMA AO must assist mayor in performing budgetary functions
S69(1) of MFMA AO must implement approved budget
The MFMA and the Municipal Systems Act as interrelated legislation: In the case where
similar provisions in the MFMA are also reflected in the Municipal Systems Act, said Acts
are regarded as being complementary to each other, and should, therefore, be read
together
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LEGISLATIVE FRAMEWORK FOR A PERFORMANCE MANAGEMENT SYSTEM
• Constitution P31
• The White Paper on Transforming Public Service Delivery, or better known
as the Batho Pele Principles P32
• The White Paper on Local Government, 1998 P32
• The Local Government: Municipal Structures Act, No 117 of 1998 P34
• The Local Government Municipal Systems Act, No 32 of 2000 and its
Amendment Acts and Regulations P34 to 36 and 44
• The Local Government Municipal Finance Management Act, No 56 of
2003, related Regulations and Circulars P38 to43
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CONSTITUTION OF THE REPUBLIC OF SOUTH AFRICA, ACT 108 OF 1996

It states that the objectives of local government is to:
a) provide democratic and accountable government for local communities;
b) ensure the provision of services to communities in a sustainable manner;
c) promote social and economic development;
d) promote a safe and healthy environment; and
e) encourage the involvement of communities and community organisations
in the matters of local government.
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THE WHITE PAPER ON TRANSFORMING PUBLIC SERVICE DELIVERY, 1997
Ensure that the Batho Pele principles are applied:
• Consultation
• Service Standards
• Access
• Courtesy
• Information
• Openness and Transparency
• Redress
• Value for Money
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THE LOCAL GOVERNMENT: MUNICIPAL SYSTEMS ACT, NO 32 OF 2000
It places a legal obligation on all municipalities to:
• Establish a performance management system;
• Set targets, monitor and review performance based on indicators linked to IDP;
• Publish an annual report on performance for the council, staff, the public and other spheres
of government;
• Incorporate and report on a set of general indicators prescribed nationally by the minister
for Local Government.
• Have their annual performance report audited by the Auditor-General; and
• Involve the community in setting indicators and targets and reviewing municipal
performance
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THE LOCAL GOVERNMENT: MUNICIPAL PLANNING AND PERFORMANCE MANAGEMENT
REGULATIONS, NOTICE 7967 OF 2001
Criteria which the municipality’s performance management system must comply with:
• Procedures for the adoption of the system;
• The procedures and guidelines for setting of KPIs;
• The listing of the seven national KPIs as determined by national government;
• The reviewing of the KPIs;
• The setting of performance targets for officials, councillors, service providers and
administrative units;
• The monitoring, measurement and review of performance; and
• The auditing of performance measures
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THE LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT, NO

56 OF 2003
• Provisions relating to the broader framework for integrating strategic
planning, budgeting and performance management within a municipality
• Annual Report

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• The Local Government: Municipal Planning and Performance

Management Regulations, Notice 7967 of 2001 P36
• Department of Provincial and Local Government: Performance
Management Guide for Municipalities, 2001 P37

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• National Treasury: Guidelines for Legislative Oversight through Annual

Reports, 2005 P43
• Government Gazette 29089: Local Government: Municipal Performance
Regulations for Municipal Managers and Managers Directly Accountable
to Municipal Managers, Notice 805 of 2006 P44

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• National Treasury: Framework for Managing Programme Performance

Information, 2007 P45
• Together Doing More and Better: Medium Term Strategic Framework – A
Framework to Guide Government’s Programme in the Electoral Mandate
Period (2009-2014) P46

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• Local Government Turnaround Strategy: Working Together, Turning the

Tide in Local Government, 2009 P47
• Green Paper: National Strategic Planning, 2009 P48
• Improving Government Performance: Our Approach, 2009 P49

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• King III Report, 2009 P50

• Auditor General Reporting Guide, 2009 P51
• Guide to Outcomes Approach, 2010 P52

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PERFORMANCE MANAGEMENT PHASES P53-62
The performance management strategy should be linked to the IDP
implementation framework and should entail planning, implementation,
monitoring and review. Measurement and reporting should also be included
Performance Management Guidelines for Municipalities

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PERFORMANCE MANAGEMENT PHASES
• Planning / Review - Future
• Monitoring - Present
• Reporting - Past
• Evaluation - Past

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• PLANNING / REVIEW – IDP; Annual Budget; SDBIP (one year operating + three-
year capital, targets, deadlines); Signed performance agreements (staff); Mid-year
review and adjustments to budget, SDBIP, individual performance plans
• MONITORING – Implement performance measures, including data analysis from
monitoring system; Continuous and parallel to implementation of approved IDP
and SDBIB; Requires Data Collection Plan; scoring with 5-point scale [3 indicates
targets were met]; use colour coding and icons; Employee performance
monitoring quarterly
• REPORTING – What do we need to know to improve? See next slide for reporting
cycle
• Evaluation – See following slide
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PERFORMANCE MANAGEMENT PHASES P60
SA Local Government
Accountability
Reporting Cycle

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EVALUATION
• Evaluation involves assessing the strengths and weaknesses of strategic objectives,
programmes, KPIs and projects to improve effectiveness and service delivery
• No single best approach - decide on the purpose of the evaluation, the questions you
want to answer, and the methods to be used to obtain valid information
• Evaluation not a stand-alone process but rather as part of integrated tool
• Intention to critically evaluate past actions, build on areas of value, eliminate non-value
adding processes, use the information gained to make informed decisions to realign
organizational objectives and actions
• Without continuous evaluation there no improvement and development
• Both formative and summative evaluations should be conducted
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THE ROLE OF COMMUNITY INVOLVEMENT IN DEVELOPING A
PERFORMANCE MANAGEMENT SYSTEM (p. 63-66)
• Ward Committees the primary method to engage
• Municipality may establish a consultative community forum for community participation
• According to Sections 16 and 17 of the Municipal Systems Act (MSA) (2000) Municipalities
are obliged to involve its public in its operations
• IDP AND BUDGET
• SDBIP CIRCULAR 13 (P56)
• PERFORMANCE AGREEMENTS
• See p65 for Community participation through Ward Committees
• See p66 for Community participation through IDP Forum
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THE ROLE OF COMMUNITY INVOLVEMENT IN DEVELOPING A
PERFORMANCE MANAGEMENT SYSTEM
Why community participation?
• Involvement of communities in affairs of government
• To reduce autocratic behaviour
• To enable continuous interaction between role players
• For community to express needs and grievances
• For stakeholders to present the interests of their constituencies
• For broad-based monitoring and evaluation
• For oversight on implementation of IDP
• To create a sense of ownership on the side of community
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PROCEDURES AND STEPS TO DEVELOP AND ADOPT A PERFORMANCE
MANAGEMENT SYSTEM AT A MUNICIPALITY P67-70
Phase 1: Preparation and Organising Phase 3: Implementing Performance Management System
Step 1: Delegation of Responsibilities Step 1: Planning
Step 2: Setting up Institutional Arrangements Step 2: Priority Setting
Step 3: Managing the process
Step 3: Setting Objectives
Phase 2 : Development of Performance Management System Step 4: Setting Key Performance Indicators (KPIs)
Step 1: Check Current Reality Step 5: Setting targets
Step 2: Identify Stakeholders Step 6: Develop monitoring framework
Step 3: Creating Structures for Stakeholder Participation Step 7: Developing a measuring framework
Step 4: Developing the System Step 8: Analysis of measurement
Step 5: Publication of the System Step 9: Performance review
Step 6: Adoption of the System Step 10: Reporting on performance

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THE LEGISLATIVE REQUIREMENTS FOR PERFORMANCE REPORTING P70-74
• Municipal Planning and Performance Management Regulations (2001) set
out requirements, but no framework
• Municipal Budget and Reporting Regulations (2009) prescribe format of
annual budget, adjustment budget, in-year reports
• MSA and MFMA deal with internal processes, consultative processes,
performance systems, reporting and accountability mechanisms –
adoption of a performance system by municipality including budget,
SDBIP, Annual Report

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LEARNING ACTIVITIES (p.75)
Learning Activities 1 to 7
End of Unit 1

WRITE AND DEVELOP PERFORMANCE
MANAGEMENT CONCEPTS FOR THE
EFFECTIVE MEASUREMENT OF
MUNICIPAL STRATEGIC AND
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Start of Unit 2

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LEARNING OUTCOMES (P. 81)
You should be able to
• Apply individual financial and non-financial performance management
concepts within a municipal performance management system
• Develop and apply institutional financial and non-financial performance
management concepts applicable within a municipal performance
management system
• Differentiate between outputs and outcomes within a municipal performance
management system
• Identify and apply the appropriate measures of effectiveness, efficiency and
economy in a municipal performance management system
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INTRODUCTION
From Unit 1:
• Performance management is a process aimed at integrating organisational
and employee performance
• It is a process that stretches right through the organisation, from its vision
and mission statements, to its objectives and eventually the staff
• Applies to performance of organisation and all persons related to it
• In order for the alignment to be effective, a number of actions must cascade
from the IDP and budget to the SDBIP and down to employee performance
• Focus in Unit 2 on performance management concepts
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THE OUTCOMES APPROACH AS THE MODEL FOR CREATING A
PERFORMANCE MANAGEMENT SYSTEM P83-84
IDP / Strategic Level IDP / Organizational Level
Organisational
Outcome 9 Strategic Objective Strategic Indicator Programme Objective
Indicator
A responsive, Access to basic (or % of households Provision of potable % of households
accountable, higher) water with access to basic Water to the provided with a basic
effective and efficient services level of water (NKPI) communities level of potable water
local government to eradicate backlog
system

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THE OUTCOMES APPROACH AS THE MODEL FOR CREATING A PERFORMANCE MANAGEMENT
SYSTEM P83-84
• Outcomes Approach a national cascade with premise that outcomes set by national
government can only be achieved if all spheres work together – shifts accountability
from individual to organizational and implies different level contributions
• Promotes planning, monitoring, reporting, evaluation of municipal achievement of
outcomes in relation to national outcomes
• Outcomes-based performance management model is required to ensure the successful
implementation of the performance of the organization
• The term outcome refers to the medium to long-term, measure of success or strategic
effectiveness. Four important components underpin the outcomes approach, namely
problem analysis, change, intervention logic and clear indicators, baselines and targets

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METHODOLOGIES RELATED TO PERFORMANCE MANAGEMENT P84-94
• Situational Analysis and Theory of Change P85
• The Balanced Scorecard P86
• Outcomes Measurement Alignment – The Logic Model P88
• Performance-based Budgeting P92

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SITUATIONAL ANALYSIS AND THEORY OF CHANGE P85
• It is a culmination of a series of critical thinking exercises conducted to create a
comprehensive picture of change required to achieve long term strategic
objectives
• This requires a three-stage model, aimed at bringing about social change and
improvement, namely:
• Unfreeze entails researching current social issue to change to remove dissatisfaction
• Change the proposed interventions (programmes and projects) as pathway – output
indicators as milestones on roadmap
• Refreeze makes behaviour and actions habitual, developing new interpersonal and
intergovernmental relationships
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BALANCED SCORECARD P86

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BALANCED SCORECARD P86
Customer (electorate, Management must know if Municipality is meeting the electorate’s needs. This relates to
citizens, communities) services and products (outcomes and outputs) the Municipality should achieve. Answer
Perspective question: Is the Municipality delivering the services the electorate wants
Financial Perspective Management must focus on how to meet service delivery needs in an economic, efficient
and effective manner. Answer question: Is the service delivered at a good price?
Internal Processes Management to focus on critical operations that enable them to satisfy the electorate,
Perspective citizens, community. Answer question: Can Municipality improve upon a service by changing
the way it is delivered?
Learning and Growth An organization's ability to improve and meet community demands ties directly to the
(Employee Development) employees’ ability to meet those demands. Answer question: Is the Municipality maintaining
Perspective technology and employee training for continuous improvement?

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THE LOGIC
MODEL P88

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THE LOGIC MODEL P89
COMPONENTS OF LOGIC MODEL
Inputs: Are what is going into a programme, project or a process.
Costs: Is what the inputs are costing the organisation in terms of a programme, process or project execution.
Activities: Relates to what is involved to do something.
Outputs: Is the product or service generated.
Outcome: Is a description of the intended result, effect or consequence that will occur from carrying out a
programme, project or process.

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THE LOGIC
MODEL P90

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THE LOGIC MODEL P92
Output and outcome indicators should be developed for each municipal function.
COMPOSITE INDICATORS:
Each function has a variety of outcomes that need to be measured. The danger of this
is that the municipality could end up with a very long list of indicators that becomes
difficult to manage and communicate. One possible response to this problem is to use
composite indicators for each sector or programme (transport, water, sanitation,
electricity, public participation, housing, etc.). Composite indicators combine a set of
different indicators into one index by developing a mathematical relationship
between them.

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THE LOGIC MODEL P88
Baseline indicators show the status quo or the current situation. They may indicate
BASELINE INDICATORS:
the level of poverty, services, infrastructure, etc. They are usually utilised in the
planning phase to indicate the challenges the municipality is faced with. They are
used to assess whether programmes are indeed meeting needs. Baseline indicators
are typically used for reporting purposes and no targets or scores are attached to
them. An example will be the number of impoverished households. These baseline
indicators are typically used when reporting to Co-operative Governance and
Traditional Authority (CoGTA) on the status quo of municipal service delivery.

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PERFORMANCE-BASED BUDGETING P92
• Performance Based Budgeting indicates the relationship between the levels of
programme funding and the anticipated outcomes
• Performance-based budgeting comprises three elements:
• The result (final outcome);
• The strategy (different ways to achieve the final outcome); and
• Activity/outputs (what is actually done to achieve the final outcome)
• Votes provide budget structure for appropriate service delivery and
performance and must be linked to strategic, tactical or operational level
• Performance based budgeting is based on the assumption that presenting
performance information alongside budget amounts will improve budget
decision-making by focusing funding choices on programme results
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RELATING FINANCIAL AND NON-FINANCIAL PERFORMANCE MANAGEMENT CONCEPTS TO THE OUTCOMES-
BASED PERFORMANCE MANAGEMENT SYSTEM P94-99
• Creating a performance management system with measurement at core will
energize people in organization to focus effort on improving things that really
matter
• Effective and efficient performance measures will give people the information and
freedom that they need to realize their potential within their roles in the
organization and aligns their contribution with it
• Two principles should be adhered to when compiling performance measures,
namely: measure what matters, and keep it simple

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RELATING FINANCIAL AND Performance Management Alignment
NON-FINANCIAL Setting Strategic
PERFORMANCE
Objective
Outcome KPI’s in
terms of municipal
f ocus areas and
MANAGEMENT CONCEPTS
perspectives Align
Programme
Objectives
outcome /
TO THE OUTCOMES-
output KPI’s
Integrated against the Identify Strategic
Development Plan strategic and
objectives
Organisational
BASED PERFORMANCE
Align
initiatives /
resources
Organisational projects Cascade
with performance
SDBIP
MANAGEMENT SYSTEM MBRR
projects objective activities
and responsibilites
Cascade
performance
objective activities
Budget and responsibilites
SDBIP
Departmental
(lower)
SDBIP’s Individual
Perf ormance
Plans
Municipal Budget
Reporting and
Regulation
schedules
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RELATING FINANCIAL AND NON-FINANCIAL PERFORMANCE MANAGEMENT
CONCEPTS TO THE OUTCOMES-BASED PERFORMANCE MANAGEMENT SYSTEM
• Within this framework, priorities should be set that are consistent with
• National priorities
• Identified needs that are achievable in the current term of political office
• A financial plan and medium-term income and expenditure framework (MTREF)
should be compiled in line with the strategic objectives
• All components of the IDP, whether they are strategies or priority areas, need to
be translated into a set of strategic objectives
• Cascade strategic plan into three levels: Strategic (health of municipality),
organizational (programmes to be implemented), departmental (contributions
towards municipal strategies)
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• IDP, MTREF and budget, SDBIP and Lower SDBIP must be cascaded into
the above levels
• These different levels shall resemble different types of indicators and
hierarchies of indicators that shall aggregate a score to the municipal
outcomes
• Key Performance Indicators must be compiled to ensure the successful
implementation of strategic objectives
• Departmental scorecards capture the performance of each department
and provide a comprehensive picture of the performance at that level
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Municipal Level
Strategic Programme Departmental Programme Departmental
Strategic Indicator
Objective Objective Objective Indicator Indicator
To provide To provide potable Provision of quality % of households % of households % of new stand pipe
accessible basic water to basic water services provided with a provided with blue water connections
(or higher) communities basic level of drop water installed
water services water to eradicate
backlog

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COMPILING KEY PERFORMANCE INDICATORS AS MEASUREMENT TOOLS P99-105
• Identification and setting of KPIs can be an intricate task. MSystAct and Performance
Management Guidelines and Regulations give direction
• General KPIs as mentioned in these documents include:
• Percentage households with access to basic level of water, sanitation, electricity, solid waste removal
• Percentage households earning less than R1100 per month with access to free basic services
• Percentage of capital budget actually spent on capital projects identified for a particular financial year in
terms of IDP
• Number of jobs created through LED initiatives including capital projects
• Number of people from Employment Equity target groups employed in three highest levels of management
in compliance with approved Employment Equity Plan
• Percentage of municipality’s budget actually spent on implementing Workplace Skills Plan
• Financial viability: Debt Coverage; Cost Coverage and Service Debtors to Revenue
• National KPI’s, outcomes also measured
US 116341 UNIT 2
MEASURABLE: KPIs should be easy to calculate, generate at reasonable cost – given financial and administrative
capacity
SIMPLE: Can measure one dimension of performance at one given time;
Separate different performance dimensions and set indicators for each separately; and
Avoid combining too much in one indicator
PRECISE: KPIs must measure only those dimensions that the municipality intends to measure
RELEVANT: KPIs must measure only dimensions that enable the municipality to measure progress on its objectives;
They measure performance on areas falling within the powers and functions of the municipality; and
They measure performance of the year in question
ADEQUATE: KPIs measure quality, quantity, efficiency, effectiveness and impact; and
Separate indicators are set for each of priority and objective
OBJECTIVE: KPIs state clearly what is to be measured without ambiguity
TIME: Time stresses the importance of grounding goals within a time frame, giving them a target date. A
commitment to a deadline. A time-bound goal is intended to establish a sense of urgency

US 116341 UNIT 2
Indicator Types
DIRECT E.g. cost or price, distribution, quantity, quality, dates and time frames, adequacy and accessibility. Cost
or Price indicators are both important in determining the economy and efficiency of service delivery
DISTRIBUTION Relate to distribution of capacity to deliver services and are critical to assessing equity across
geographical areas, urban-rural divides, demographic categories - information could be presented GIS
QUANTITY E.g. number of inputs, activities, outputs - Generally time-bound; e.g. the number of inputs available at a
specific point in time, or number of outputs produced over a specific time period
QUALITY Quality against predetermined standards that reflect needs, expectations of affected parties while
balancing economy and effectiveness - May include legislated standards and industry codes
DATES, TIME Timeliness of service delivery - These include service frequency measures, waiting times, response time,
FRAME turnaround times, time frames for service delivery and timeliness of service delivery
ADEQUACY Quantity of input or output relative to need or demand - "Is enough done to address the problem?"
ACCESSIBILITY Extent to which intended beneficiaries are able to access services/ outputs - Include distances to service
points, travelling time, waiting time, affordability, language, access for the physically challenged

US 116341 UNIT 2
• KPI Instruction field developed for each KPI to ensure understanding

LINK KPI TO Write KPIs as concise, individual statements indicating how each KPI correspond with a specific
OBJECTIVE objective. It is important for management and staff to know why they ought to strive to reach a
specific objective / outcome or why performance needs to be measured
PURPOSE Begin the KPI sheet with a header defining the purpose of the KPI. Keep it a brief, yet as specific as
possible
UNIT MEASURE Specify how the KPI will be measured in a unit, including the frequency of measurements
TARGET/TIME Set a target for each KPI. Determine the baseline that is quantifiable and measurable. It should
provide a desired output / outcome to be achieved within a specific time period
PORTFOLIO OF Specify what has to be submitted as evidence to support the achievement of the output reported
EVIDENCE against the target set

US 116341 UNIT 2
• Basic services needed in rural areas may be of a different level than

those in urban communities. Description of KPI must be unambiguous.
SERVICE TYPE Level 1 Basic Level 2 Intermediate Level 3 Full
WATER Communal standpipes Yard taps, yard tanks In house water
SANITATION (Sewage collection/disposal VIP Latrine Septic tanks Full water borne
ELECTRICITY 5-8 Amp or non-grid electricity 20 Amps 60 Amps
ROADS Graded Gravel Paved/tarred and kerbs
STORM WATER DRAINAGE Earth lined open channel Open channel lined Piped systems
SOLID WASTE DISPOSAL Communal (Residents) Communal (Contractors) Kerbside

US 116341 UNIT 2
• The Framework for Managing Programme Performance Information of

National Treasury (2007) highlights efficiency, effectiveness, economy
and equity indicators:
• Efficiency: productively of inputs to outputs (output)
• Effectiveness: outputs achieve desired outcomes (outcome)
• Economy: inputs acquired at lowest cost, right time & method of
producing outputs is economical (input)
• Equity: services provided impartially, fairly, equitably

US 116341 UNIT 2
THE APPLICATION OF PERFORMANCE MANAGEMENT PROCESSES P105-111
PLANNING/REVIEW
• Integrated Development Plan and Performance Management:
• Phase 1: Analysis – Baseline information collected
• Phase 2: Strategies – Finding solutions to problems assessed in Phase 1
• Phase 3: Project Identification – Specific prioritised projects (see US 119343)
• Phase 4: Integration – Link to objectives set in Phase 2 and overall IDP
• Phase 5: Approval – IDP submitted for approval

US 116341 UNIT 2
PLANNING/REVIEW
• MTREF and annual budgeting:
• NT publishes annual MFMA Budget Guidelines Circulars
• Municipality prepares and tables three- year budget (MTREF) linked to IDP
• Mayor provides general political guidance
• CFO issues instructions to departments
• Departments plan operational and capital
• Integration – link to IDP (Phase 4 of IDP above) to see that budget supports
targets

US 116341 UNIT 2
MONITORING
• Process of data management that includes amongst other collection, gathering, storing and
management of information and scoring through assessment
• Monitoring can only take place if records of performance, targets, outputs and inputs are available and
accessible
• The implementation of a records management process is therefore imperative
• Records include annual reports, individual performance plans, office documents, databases and e-mails
• Data management involves the development of data architectures, practices and procedures to deal
with data and the effective management thereof
• Once records have been safeguarded for review, the process of assessment must commence to
determine how well a municipality is conducting its affairs based on its set outcomes - Assessment
refers to the measurement of data by means of a scoring process (see techniques p119)
US 116341 UNIT 2
REPORTING See pp123 to 125 for municipal annual report timelines
• Format of reporting template(s) foundation on which the performance reporting system’s credibility stands
• Specific criteria should be included in the template to ensure that the departmental scorecard is relevant and specific
to the needs of the municipality
• Information required in reports to provide feedback on performance:
• Specifies the period of reporting under review
• Specifies the objectives
• Specifies the indicators measured Performance
• Specifies agreed targets relevant to the period which the report covers reporting should
• Includes relevant baseline values answer the question:
• Detail on measures current performance over the period for which it is reporting What do we need to
• Specifies the source of measurement (POE)
know to make sure
•
things get better?
Specifies reason for under performance
• Suggests corrective action if necessary
US 116341 UNIT 2
EVALUATION
• Evaluation is making sense of what is happening
• Three different levels of oversight are required: administrative oversight, political oversight,
and independent financial oversight
• The Oversight Committee, Mayoral Committee and Performance Audit Committee play a key
role in evaluating
• Political oversight evaluation at end of financial year with submission of annual report
• Annual reports are key reporting instrument for municipality to be held accountable against
performance targets, budgets, strategic plan – must contain information on service delivery,
reasons for under- performance, financial statements and audit report – The oversight report
is the result of a detail analysis of the annual report
US 116341 UNIT 2
EVALUATION
• Portfolio and Oversight Committee functions address evaluation – Council has responsibility to
oversee performance (Constitution, MSystA, MFMA), must adopt oversight report
• Evaluation of performance requires of municipalities to look at the following to determine the
impact made on service delivery to the community:
• Inputs (resources, financial perspective)
• Outputs (results, service delivery perspective)
• Outcomes (impact, customer satisfaction, growth, quality of life)
• Accounting Officer responsible for administrative oversight to ensure targets are met
• Independent audits ensure reported performance information is credible
• From time to time, become involved in impact evaluations
US 116341 UNIT 2
LEARNING ACTIVITIES (P.130)
Activities 1 to 5
End of Unit 2

DEVELOP AND IDENTIFY THE CRITICAL
AREAS OF A PERFORMANCE
MANAGEMENT AGREEMENT TO BE USED
AS A FORM OF CONTRACT OF
EMPLOYMENT FOR A MUNICIPAL STAFF
US 116341 UNIT 3 MEMBER
Start of Unit 3

US 116341 UNIT 3
LEARNING OUTCOMES
• Describe the processes applicable to developing performance
agreements based on relevant legislation
• Adapt disciplinary procedures to include performance agreements
• Key concepts: Performance agreements, performance contracts, Section
57 managers, evaluation, disciplinary procedures, core competency
requirements for employees

US 116341 UNIT 3
INTRODUCTION
• To ensure that roles and responsibilities are effectively implemented
within a municipal structure, a system of performance management was
developed, governed by various pieces of legislation
• Such legislation aimed at ensuring alignment between organizational
and employee performance to achieve the vision and goals of
municipalities and ensure effective, efficient and economic service
delivery

US 116341 UNIT 3
LEGISLATION GOVERNING EMPLOYEE PERFORMANCE MANAGEMENT P137- 142
• Municipal Planning and Performance Management Regulations 2001 –

Performance Management System as framework to describe the cycle of
performance planning , monitoring, measurement, review, reporting and
improvement
• Municipal Performance Regulations for Municipal Managers and Managers
Directly Accountable to the Municipal Manager, 2006 - employment contracts,
performance agreements with KPA’s and Core Competency Requirements, MM
Job description content
• Labour Relations Act No 66 of 1995 - provides a Code of Good Practice
• White Paper on New Employment Policy in the Public Service of 1997 –
framework for managing performance in public service
US 116341 UNIT 3
LEGISLATION GOVERNING EMPLOYEE PERFORMANCE MANAGEMENT P137- 142
• Municipal Systems Act, 2000 (Section 38, 39, 40, 56, 57, 67, 68) – instilling a
performance culture, system, indicators, targets, capacity development
• Local Government Municipal Systems Amendment Act, 2011 - Selection and
appointment of Section 56 employees
• MFMA 2003 Section 53 - Annual performance agreements for Municipal
Manager and Senior Managers within 14 days after SDBIP approval
• Municipal Regulations on Minimum Competency Levels, 2007 - a set of
general and minimum competency levels for accounting officers, CFO’s, senior
managers of municipalities and municipal entities, other financial officials,
supply chain management officials
US 116341 UNIT 3
PRINCIPLES RELATED TO THE DEVELOPMENT OF AN EMPLOYEE PERFORMANCE MANAGEMENT SYSTEM P142 -
145
• Emphasise the planning and measuring of employee performance and ensure performance management
alignment between various levels of employment, linked to departmental functional areas, performance
objectives of SDBIP
• Helps to maintain mutual respect, communication about performance
• Employee performance policy serves to clarify why, who, what, when, how, and change management
• Planning of employee performance management is imperative to ensure integration - The process includes
establishment of performance contracts, agreements and plans to be used to measure individual employee
performance
• Monitoring (continuous review of level and standard) ensures the achievement of objectives and targets as
set out in the planning phase
• Reporting serves to keep official records of the assessment of employees
• Evaluation is to critically evaluate past actions, build on areas of value, eliminate non-value adding processes,
and use the information gained to make informed decisions to realign organizational objectives and actions
US 116341 UNIT 3
THE PERFORMANCE MANAGEMENT OF THE MUNICIPAL MANAGER AND MANAGERS DIRECTLY ACCOUNTABLE
TO THE MUNICIPAL MANAGER P146-156
• Planning: Performance Contracts p146; Performance Agreements p146; Performance Plans
and Standards P148; Personal Development Plan, p149
• Monitoring: What assessment should involve; two formal assessments p/a; composition of
assessment panels; Scoring on 5-point scale – 3 is target, higher on basis of EEE according to
KPI’s, Objectives, KPA’s; Submission and validation of Portfolio of Evidence
• Reporting: Reports on performance assessments, scores allocated and final ratings; Reports
on employee performance, poor work performance measures and improvement of good
performance compiled and safeguarded
• Evaluation: evaluate the employee performance management process with specific
reference to the fairness, validity, objectivity and quality of the performance assessments
and provide a reward based on the findings; An Evaluation Committee is to evaluate and
approve all assessments
US 116341 UNIT 3
THE PERFORMANCE MANAGEMENT OF THE MUNICIPAL MANAGER AND
MANAGERS DIRECTLY ACCOUNTABLE TO THE MUNICIPAL MANAGER P146-156
Rating Terminology Description % Score
Outstanding Performance far exceeds the standard expected of an employee at this
5 level 167
performance
Performance Performance is significantly higher than the standard expected in the
4 significantly above job 133 - 166
expectations
3 Fully effective Performance fully meets the standards expected in all areas of the job 100 - 132
Performance not Performance is below the standard required for the job in key areas
2 67 - 99
fully effective
Unacceptable Performance does not meet the standard expected for the job
1 0 – 66
performance

US 116341 UNIT 3
THE PERFORMANCE MANAGEMENT OF THE MUNICIPAL MANAGER AND
MANAGERS DIRECTLY ACCOUNTABLE TO THE MUNICIPAL MANAGER P146-156
% Rating Over Performance % Bonus
130 - 133.8 5%
133.9 – 137.6 6%
137.7 – 141.4 7%
141.5 - 145.2 8%
145.3 – 149 9%
150 – 153.4 10%
153.5 – 156.8 11%
156.9 – 160.2 12%
160.2 – 163.6 13%
163.7 – 167+ 14%

US 116341 UNIT 3
THE PERFORMANCE MANAGEMENT OF OTHER EMPLOYEES P156-162
• Planning: Section 66 of Municipal Systems Act includes to establish a process

or mechanism to regularly evaluate the staff
• Municipality must develop and adopt appropriate systems and procedures
• Imperative to maintain the interdependence and link between organizational and
employee performance management
• Sign performance plan with KPIs and measurable activities that support overall
achievement of objectives and establishment of required conduct
• Meetings to identify and agree on KPI’s, activities against functional KPI’s and
compile employee performance plans, targets; KPA’s weight 80%, CCR’s weight
20% [Core Competency Requirements]

US 116341 UNIT 3
THE PERFORMANCE MANAGEMENT OF OTHER EMPLOYEES P156-162
• Monitoring: Assessment of KPI’s or measurable activities and competencies;

quarterly review; Assessment rating process and calculation of scores
according to KPI’s, KPA’s, measurable activities; Work performance in essential
functions of the job, not person judged
• Reporting: Manager/supervisor prepares summary report, HOD assesses
results see if scores are aligned with achievement of manager’s objectives
• Evaluation: To encourage high performance, it should be rewarded i.t.o.
remuneration policy of institution; rewards not automatically part of
conditions of employment, performance audit committee should audit results

US 116341 UNIT 3
MONITORING POOR PERFORMANCE P163-166
• Improvement of poor performance the most important focus of the performance
management process
• In order to do this, it is important that the causal and contributory reasons for poor
performance are analyzed
• Protocols are meticulously followed to
• Find cause – may be poor systems and processes; inappropriate structure; lack of skills and
capacity; inappropriate organizational culture; absence of appropriate strategy; inadequate
resources
• Closer monitor performance – make individual aware
• If still no improvement – set up meeting to agree on remedial steps with clear milestones
• Course of action may include coaching, formal training, agreed upon remedial actions
• Possible dismissal
US 116341 UNIT 3
Learning Activities (p.167)
Activities 1 to 7
End of Unit 3

IDENTIFY AND ESTABLISH
INSTITUTIONAL ARRANGEMENTS
REQUIRED FOR PERFORMANCE
MANAGEMENT IN A MUNICIPALITY
US 116341 UNIT 4
Start of Unit 4

US 116341 UNIT 4
LEARNING OUTCOMES
• Upon completion you should be able to:
• Develop technical systems to incorporate institutional and individual performance
management
• Identify and incorporate cultural differences into a municipal performance
management system
• Explain how the requirements of a performance management system will impact
on organizational structures
• Key concepts: Data, technical systems, cultural differences, performance
management requirements, organizational structures

US 116341 UNIT 4
INTRODUCTION P183
• Institutional arrangements in terms of organisational structures within the
municipality should be aimed at creating a structure to implement and monitor
performance
• Establishing a performance culture that will embrace and promote institutional
performance management is an imperative for high- performance
• Systems and processes are needed to provide technical support for the
implementation and monitoring of the performance management system

US 116341 UNIT 4
INSTITUTIONAL ARRANGEMENTS P184-189
• Government organisations are traditionally almost exclusively based on bureaucratic principles
• An organisational structure should be created based on strategic objectives – structure follows
strategy – prescriptive mandates and strategic objectives to align structure and performance
management processes and support the performance management system
• Internal organisational governance structure refers to the structures that must be created to
provide for organisational and employee performance management with a formal system of
tasks and reporting relationships
• Internal governance structure an imperative to ensure strategy implementation
• Operational processes determines how work is done
• Structures and related processes ensure accountability in the whole external and internal
hierarchy
US 116341 UNIT 4
INSTITUTIONAL ARRANGEMENTS P184-189
• Structures define the following actions in performance management system:
• Formal relationship with well-defined duties and responsibilities
• Hierarchical relationships between superior and subordinates within the organization
• Tasks or activities assigned to different persons and departments
• Coordination of the various tasks and activities
• Policies, procedures, standards and methods of performance evaluation aimed at guiding activities
within the municipality
• Consider the establishment of a Performance Management Unit to manage and coordinate all
performance management activities – align organization and employee performance;
monitor performance with SDBIP as tool; advice; report of performance of municipality; align
and integrate IDP, budget, SDBIP, performance measurement and management; prepare and
guide municipality to understand scope and framework of performance management
US 116341 UNIT 4
LEADERSHIP, CHANGE MANAGEMENT AND A PERFORMANCE CULTURE
• Leadership-to prepare employees to understand and embrace the
performance management system
• Developing a Performance Culture-International experience indicates
that re-direction of public service culture is difficult, costly and takes eight
to ten years of sustained effort.
• Embrace Change -requires an understanding of how employee and
organisational behaviour should be adapted and improved to achieve the
required results of creating a performance culture.

US 116341 UNIT 4
LEADERSHIP, CHANGE MANAGEMENT AND A PERFORMANCE CULTURE P190-198
Leadership
• The White Paper on Performance Monitoring and Evaluation (2009) states that
leadership and shifts in management mind set are imperative for performance
improvement
• Training in performance management and use of performance management
champions are required to provide coaching and mentoring

US 116341 UNIT 4
DEVELOPING A PERFORMANCE CULTURE P191-198
• A performance culture an imperative [Leaders make this happen!]
• White Paper on Performance Monitoring and Evaluation (2009) proposes that
buy-in and commitment from all managers and public servants are required to
achieve positive change
• Buy-in is obtained by actively engaging employees in the setting of programme
goals/objective and project outcomes and outputs
• This approach requires flexibility in application and consultation with
employees
• Employees should be encouraged to participate in developing outcomes that
are meaningful for their own context
US 116341 UNIT 4
• A performance culture is created and supported by
• Encouraging employees to assist with the compilation of clear performance goals
and objectives
• Encouraging employees to take responsibility for the continuous improvement of
organizational processes and of their own skills, behaviour and contributions
• Focusing on planning by defining expectations, setting priorities and allocating
resources to deliver business plans
• Creating strong relations between managers and employees as well as between
employees within a department/section to promote a performance culture [See
p192 PLEASE NOT FUNCTIONAL (SILO) TEAMS, BUT TRANSVERSAL!]

US 116341 UNIT 4
Activities to create a performance culture
Obtain and show commitment from the top
Develop performance plans based on strategic, operational and business plans
Establish what a good performance culture looks like
Develop an internal communication system
Ensure that a performance management framework is in place and well understood
Provide support to employees to succeed
Recognise and reward good performance

US 116341 UNIT 4
EMBRACE CHANGE P194-198
• Change management requires an understanding of how employee and
organizational behaviour should be adapted and improved
• To minimize the negative effect of change, employees must understand
that implementation of a performance management system will bring
forth improvement for the whole community, as well as recognition for
those employees who perform
• The performance management system must be seen as a tool for service
improvement, not as a punitive system for poor performance
• It is important to assess what employee reaction will be to suggested
changes and to develop a change management programme

US 116341 UNIT 4
• Objectives of change management programme:
• Ensure that municipality is ready for change. A municipality is ready for change when
its management clearly articulates the need for change; the culture encourages risk-
taking; rewards are given for change; and communication is clear
• Creating momentum for change by ensuring that officials understand the necessity for
change
• The creation of a strong guiding team
• Fostering trust between manager and official by inviting open, honest and participative
discussions when strategic and performance management planning is done
• Highlighting the benefits of a performance culture to officials. People, generally, are
less likely to resist when they perceive the benefits of change
US 116341 UNIT 4
Set of change management practices that may be adapted for particular
circumstances:
Address the human side systematically
Start at the top
Involve all officials
Make the case for change formal
Create ownership
Address culture explicitly
Speak to individuals
US 116341 UNIT 4
TECHNICAL SYSTEMS P198-202
• Technical systems refer to, inter alia automated system which provides
mechanical, electrical or computerised action, minimising human effort and
providing additional intelligence
• Within the scope of the performance management system, technical or
automated systems are used during the execution of the performance
phases of planning monitoring, reporting and evaluation
• Automated systems ensure that all generated data is properly classified,
categorized and stored in a repository and made available when needed
• Choosing an automated system can be costly and time consuming - It is
therefore imperative that the right proven choice for each institution is
made as the value of automated performance management systems only
becomes evident after multiple years of baseline has been gathered
US 116341 UNIT 4
• For automated system to comply with prescripts by legislation for
municipal performance management, it should be able to:
• Produce accurate and reliable information on progress in the implementation of
programmes based on continuously collected and updated data
• Periodically provide information on the outcomes and impact achieved by the
municipality
• Improve the quality of monitoring and evaluation practices in the municipality
• Effectively and efficiently monitor, report and evaluate performance based on the
view that by promoting certain practices and collecting and providing information
to system users, positive consequences will result

US 116341 UNIT 4
Examples of available technologies: What to consider:
Databases Technical Infrastructure
Toolkits Skill and Resources
Application Services Provider (ASP) Model Reporting specifications
Performance Management System Functionality of the Technical System
Performance Management Systems and Business
Intelligence (BI)
Fully Integrated Systems

US 116341 UNIT 4
SYSTEM FUNCTIONALITY LINKED TO PERFORMANCE MANAGEMENT
P202-211
• Planning:
• The automated system should make provision for both organizational and
employee performance management
• Requires a sound methodology to develop the scorecards/plans to ensure
meaningful results
• Requires the availability of administrative features to enable users to retrieve data
from multiple locations and combine data from more than one data source
• System should also provide single view, web-based access, alignment with existing
software, multiple users and security, audit trail, flexibility

US 116341 UNIT 4
P202-211
• Monitoring: The automated system must have the ability to:
• Measure progress against set targets and indicators
• Compile quarterly reports to be submitted to the council
• Enable the municipality to detect early indications of under-performance (early warning
system)
• Provide for corrective measures where under-performance has been identified
• Identify responsibilities of the different role-players in the monitoring process
• Allocate tasks for data gathering and capturing to specific individuals
• Create a comparison of performance between the current and previous financial year,
including baseline indicators
• Make use of a single repository/data warehouse to capture and retrieve information
US 116341 UNIT 4
P202-211
• Monitoring: The automated system must have the ability to (continued):
• Ensure that data cannot change after the monitoring period, with a “lock-date” function
• Support programme and project management
• Quantify and measure organizational performance
• Give early warning scoring
• Drill down to provide users with detail information on why certain outcomes are not achieved
• provide detail on descriptions of key performance indicator and project activities and
milestones, project schedules and budget allocation information
• Support compilation of portfolio of evidence
• Support internal audit
US 116341 UNIT 4
P202-211
• Reporting: The automated system must have the ability to:
• Provide authorized users with the ability to compile reports that are able to provide information
on: The status of projects (at any given time); The progress of various programmes; The areas of
concern raised through the audit process to ensure application of the defined principles;
Performance of budget and expenditure per activity, project/process, priority area and IDP
objective; Data related to quality performance data, trend analysis and related performance
reports aimed at facilitating faster decision-making
• Measure and analyze actual improvement or decline in programme performance by comparing
related trends and projections against the annual targets
• Produce graphs, exception reports, statistical information and scorecards which will not only
indicate key performance trends, projections and alerts, but also identify important relationships
between metrics as well as hidden cause and effect patterns
US 116341 UNIT 4
P202-211
• Evaluation: The automated system must have the ability to:
• Support employee assessment that allows employees to be assessed and rated by
assessors directly on the system - Performance scores should be automatically
calculated to determine performance
• Link employee work efforts with the organization's outcomes, to allow employee
and the organization to understand how that job contributes to the organization
achieving its strategic objectives

US 116341 UNIT 4
P202-211
• Advantages of automated systems for performance management
• Time-saving/increased productivity through methods including accessing data from a
single, central repository and specialized software performing complex performance
calculations
• A web server layer ensures that the centralized data is easily accessible and retrievable
via a web browser interface from any location and to enable the integration and real-
time interfacing with other systems (data sources) utilizing web service interfaces
• Hyperlinks between similar data and information sources ensure easy access to these
data sources - Hyperlinks between documents can be followed to retrieve data of a
similar nature, for example pertaining to all programmes/projects related to a specific
outcome
US 116341 UNIT 4
P202-211
• Advantages of automated systems for performance management continued
• Improved data integrity as software reduces human interventions
• Analyzing data through graphs and “what-if” scenarios will improve decision-making
• Management tools that specialize in managing, measuring and monitoring of
performance to ensure that accurate decisions can be accessible at the click of a
button
• Enhanced communication can be assured by integrating the automated system with
users’ email systems, allowing for feedback on performance and receiving comments
on it

US 116341 UNIT 4
LEARNING ACTIVITIES (P. 213)
Activities 1 to 3
End of Unit 4

APPLY PERFORMANCE
MANAGEMENT CONCEPTS TO
MUNICIPAL SERVICE DELIVERY
US 116341 UNIT 5
Start of Unit 5

US 116341 UNIT 5
LEARNING OUTCOMES
• Upon completion you should be able to:
• Develop key performance areas and indicators for financial and non-financial
purposes; and
• Develop and apply performance targets to measuring financial and non-financial
performance in terms of municipal Service delivery
• KEY CONCEPTS: Strategic objectives, outcomes, key performance areas,
key performance indicators, performance targets, projects and processes

US 116341 UNIT 5
Assessment P218-220
From the outcomes of this Unit, the focus is on the practical application of
everything that you have learned in Units 1-4
The Unit therefore has no content as all the information related to the
outcomes has already been covered
Complete Practical Application Activities 1, 2, 3, 4, 5, 6 and 7 and apply to
your case

US116341
EXAMINATION
• (US 116341 Outcomes 1 to 5)

Thank you
Enkosi
Dankie
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MUNICIPAL MINIMUM COMPETENCE PROGRAMME

Module Code 13 208 191: 20 Credits

US 116341: CONDUCT PERFORMANCE

Presented by: Dr Anthea Jantjes

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Vision Environmental Strategy Strategy Implementation Evaluation and

ENGAGE ENGAGE ENGAGE

Strategic Planning and Performance Management components of Strategic Management

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

CONSTITUTION OF THE REPUBLIC OF SOUTH AFRICA, ACT 108 OF 1996

THE LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT, NO

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

• The Local Government: Municipal Planning and Performance

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

• National Treasury: Guidelines for Legislative Oversight through Annual

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

• National Treasury: Framework for Managing Programme Performance

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

• Local Government Turnaround Strategy: Working Together, Turning the

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

• King III Report, 2009 P50

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

• KPI Instruction field developed for each KPI to ensure understanding

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

• Basic services needed in rural areas may be of a different level than

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

• The Framework for Managing Programme Performance Information of

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe