REPORT BY THE INTERIM MANAGEMENT TEAM

1
REFLECTION ON THE WORK OF THE INTERIM MANAGEMENT
TEAM EASTERN CAPE
11 August 2004
2
Background to the work of the IMT

• The IMT has provided progress report to the
  Executive and Parliament at the beginning of
  2004.
• This presentation therefore only covers-
• A brief overview of the mandate and nature of
  plans
• Key challenges for the continuation of
  implementation of the turnaround plans
• Institutional arrangements for sustainability,
  monitoring and evaluation
• Proposals on the Department of Education and
• Progress made by the four departments towards
  implementation

3
Mandate of the IMT

• Overall goal of the IMT is to ensure that any
  service delivery backlogs are addressed and to
  establish sound management and leadership in the
  Education, Health, Roads and Public Works and
  Social Development departments
• The IMT is specifically mandated to-
• establish turn around plans for the four target
  departments, including the elimination of service
  delivery backlogs
• address cross cutting issues such as disciplinary
  matters, procurement reform and human resource
  management
• establish appropriate management structures and
  back office support
• monitor the implementation of the turn around
  plans and other interventions as well as the use
  of conditional grants
• On the basis of its presentations to the
  Provincial EXCO and Cabinet, the IMT received
  additional mandates related to specific
  challenges

4
Phased Approach

• Phase 1 Preparation, November 2002 to January
  2003
• Phase 2 Problem analysis, February 2003
• Phase 3 Proposals, May 2003
• Phase 4 Implementation, June onwards
• Phase 5 Evaluation and Sustainability
• Phase 1-3, successfully implemented
• Phase 4 slow and marked by uneven successes

5
Concept
6
Strengthen back office support detail
Planned Achieved
Decentralize financial delegations back to departments as from 1 May 2003. Financial delegations have been provided as of 1 May 2003.
Delegate procurement powers up to R5m Procurement delegations have been provided to the IMT and departments with effect from 1 May 2003 and are being used for IMT work.
Source in back office support focusing on financial management, supply chain management, integrated human resource management, legal and general administration. Tenders awarded for Phase 1. Service providers on site have attended to HR backlogs and have developed detailed service level agreement for Phase 2. SLAs in all four departments completed and signed. The scale and nature of SLAs are reduced as a result of budget shortfalls.
7
Strengthen back office support detail
Planned Achieved
Electronic Document Management Solution (EDMS) Document management assessment completed. Piloting approach with the Department of Education has been stopped due to SITAs cancellation of the tender due to its concern on risks Educations review of its urgent need and sequencing issues.
IT Assessment Report completed and presented to EXCO on 8 October 2003. SITA was requested to act as Transaction Advisor (TA), and negotiations underway on reducing cost of engagement as TA. Project Team already appointed to assist and monitor TA. Project registered with National Treasurys PPP unit.
Shared Administration Centre Progress will only be achieved once phase 2 of BOS contract underway.
8
Impact of HR backlogs(as at April 2004)
Claims Value of claims Claims paid Value of claims paid
Education 10841 181 000 000 7503 104 045 000
Health 8317 Not calculated 2180 14 900 000
SocDev 2121 6 100 000 0 0
RPW 2950 23 900 000 0 0
Total 24 229 211 000 000 7 793 118 945 000
9
Improve internal controls and accountability
detail
Planned Achieved
Decentralize Internal Audit function in four IMT departments. Tender awarded and all service level agreements have been signed.
Departments to have own Audit Committees. All the departments have established audit committees and they are in the process of considering the audit plans
10
Improve HR Management detail
Planned Achieved
Implementation of resolution 7 proposals Implementation of resolution 7 finalised. The province busy with the implementation of the post resolution 7 processes.
Filling of vacancies Process of filling critical vacancies ongoing. Numerous adverts placed in the press.
Strategy for attracting scarce skills, incentives for professionals in rural areas, internships and strategy for training people in scarce skills. Recommendations have been formulated by multi-disciplinary task team which will feed into national process.
Integrated HRM strategy Project developed, published, implemented by OTP and monitored by IMT.
Support services companies Report completed, consultations on the model initiated but not concluded. Agreement to use the lessons from Nelson Mandela Academic Hospital.

11
Strengthen leadership and management detail
Planned Achieved
Increase management to at least 1 of social departments. Appointment process ongoing, however strategy still needs to be developed. Difficult to recruit. Only Education has figure in excess of 1.
Competency profiling of all senior managers. Individual profiling assessments done and the departments are working on these reports. The Composite report has also been finalised.
Workplace based management development program. Will be developed once final competency report complete.
Performance agreements for senior managers. Process of establishing revised performance agreements unsatisfactory. Few departments have made progress in this regard.
Initiate disciplinary processes for managers based on existing forensic and Auditor General reports. Disciplinary proceedings initiated. One HODs case finalised and disciplinary case of another on appeal.
Filling of critical management vacancies Process ongoing. HoD posts in all the four departments filled.
12
Rapid and visible service delivery

• Objective was to pilot an innovative and fast
  track project implementation solution using Coega
  Development Corporations (CDC) fast track
  project management systems.
• Due to delays, project did not deliver tangible
  results financial yea 2003/04 and projects are
  now being assimilated into PGDP.
• Main reason for delays was due to the broader
  legal agreement between Provincial Treasury and
  Coega and it has since been finalised.
• Implementation progress in this regard has been
  registered in Roads and Public Works for the
  Both Sigcau Building and Education for school
  sanitation projects.

13
Ethics Anti Corruption
14
Budget challenges (as at Dec 2003)
Required Available Shortfall (as at December 2003)
Education 119 183 219 82 183 219 37 000 000
Health 302 619 020 302 619 020 0
Social Development 107 245 149 14 000 000 93 245 149
Roads and Public Works 74 305 299 54 223 163 20 082 136
Total 603 352 687 453 025 402 150 327 285
15
Budget challenges

• Implementation of plans and projects largely
  dependent on budget as a results only part of
  plans and projects of the turnaround plans were
  implemented in the financial year 2003/04.
• DPSA and OPSC carried cost of various projects
  and other operations on the basis of refundable
  expenses by the province. These refunds took
  long to be realised and these national
  departments experienced serious cash flow
  problems and were forced to scale down on their
  own projects in support to the Eastern Cape.
• To minimise impact of slow implementation and
  life span of IMT, the plans and projects are
  being integrated into strategic plans of
  departments for MTEF 2004-2006 as well as the
  PGDP.

16
Sustainability

• Sustainability of the intervention remains a key
  challenge. Hence the following was done
• Transversal projects integrated into projects of
  the PGDP and will be monitored in part in the
  Office of the Premiers ME unit, and in part by
  a national structure. Parts of the transversal
  projects are directly integrated into
  departmental plans
• Departmental turn around plans are being
  integrated into departmental strategic plans
  (2003/04 and 04/05)
• Capacity created in departments to monitor
  implementation in each department
• Project managers of the IMT are incrementally
  handed project management functions over to
  identified managers of the Eastern Cape

17
Sustainability Transversals

• Category 1 Completed projects
• Category2 Medium term projects
• Category 3 Planned projects

• Projects that will be completed by end March 2004
  and for which closure reports will be handed to
  EC
• Started projects that will run over a few years.
  These will be handed to EC and included in PGDP
  programmes
• Identified but not commenced. Implementation
  planning in first quarter of 2004, for inclusion
  in PGDP programmes
• Need to assure that these projects are adequately
  funded

18
Progress Implementation of sustainability
strategy

• The Inter-sectoral task team (IMET) to monitor
  the implementation of the turnaround plans was
  launched on 12 July 2004. The team composition is
  made up of the Directors-General of the national
  former IMT departments, Provincial HODs of the
  former IMT departments, former members of the IMT
  DG Nat Treasury (17 in total)
• Including monitoring of initiatives to strengthen
  OTP, PT Local Govt, H Trad Affairs
• The team will meet monthly to review progress,
  challenges and provide recommendations on the way
  forward.
• The team will produce bi-monthly progress reports
  to Provincial Exco and Cabinet, the first report
  will be in September 2004.

19
IMET Information Flow Accountability
Reporting Lines
HOD
MEC
DGOTP
DG
According to agreed short time-frames
Minister
IMET Meeting
PREMIER
Bi-monthly Report
MPSA
20
Progress Implementation of turnaround plans
Health (April 2004 to date)

• Department took full responsibility and ownership
  for implementing the turnaround plans
• Turnaround plans incorporated into the
  performance agreements of managers to ensure
  success and sustainability
• Integration of the turnaround plans, strategic
  plans and the operational plans of the department
• Major Challenge Budget short fall, staff
  recruitment, retention and composition

21
Progress Health

• Corporate Services
• HIV/AIDS

• Seven Corporate Services launched, i.e. East
  London Complex, PE, Umtata, Chris Hani,
  Ukhahlamba, Amatole and Alfred Nzo Districts.
• HR and financial functions decentralised to
  institutions, including the appointment of
  Corporate Service Managers and District Managers.
• Established 483 VCT sites throughout the
  Province.
• Developed and implemented the Comprehensive ARV
  Treatment Care Plan, seven hospitals out of ten
  accredited for the implementation of the plan.

22
Health Cont...

• Improving Quality of care
• Revitalisation of hospital services

• 24 hour call centre has been established with a
  toll free number of 0800032364 providing
  opportunity for grievances and suggestions.
• Health service awards launched in East London and
  Umtata aimed at maintaining high standards in
  institutions.
• PE Complex flagship in rationalisation of
  services.
• 21 hospital construction projects completed, 14
  under construction, equipment procured for 50
  hospitals and maintenance done to 88 hospitals.

23
Progress Implementation of turnaround plans
DRPW (April 2004 to date)

• Department took full responsibility of and their
  turnaround plans have been incorporated into the
  departmental strategic plan
• Managers have incorporated the turnaround plans
  into their performance agreements to ensure
  sustainability.
• Challenges Department has major budget shortfall
  as such had to reprioritised their budget to
  carry through some of the turnaround projects
• - Budget pose major threat to the filling of
  critical posts which were identified as major
  threat for effective service delivery.

24
Progress DRPW

• Corporate Services

• Capacity of the department enhanced and lots of
  Auditor General queries were attended to.
• Visible success in dealing with HR and
  Disciplinary cases backlogs. The culture of
  working and the morale of officials has since
  improved.
• HR and financial functions decentralised to
  institutions, including the appointment of
  Corporate Service Managers and District Managers.
• Increased Procurement delegations and other
  financial functions ensured a huge potential for
  delivery.

25
Progress Implementation of turnaround plans Soc
Dev (April 2004 to date)

• Department took full responsibility of and their
  turnaround plans have been incorporated into the
  departmental strategic plan
• Managers have incorporated the turnaround plans
  into their performance agreements to ensure
  sustainability.
• Unqualified AG Report for 2003/04
• The project facilitation Unit has been developed
  to strengthen the implementation of the
  turnaround plans
• Challenges Department has major budget shortfall
• The development and implementation of the Social
  Security Agency
• Continued critical shortage of personnel
  including remuneration packages that are not
  competitive cause high turnover rate of
  professionals e.g. social workers.

26
Progress Soc Dev

• Corporate Services

• Completion of 7 multimedia centres at front
  office service centres.
• Registering of 52 566 Child Support Grant
  beneficiaries between ages 9-11
• Construction of two Pay Points where Pension
  Beneficiaries can get their money in protected
  premises.
• Rollout of Performance Management and development
  systems to all 24 area offices
• Implementation of a Contract Management Centre
  functioning from East London.

27
Progress Implementation of turnaround plans
Education (April 2004 to date)

• Special arrangement further intervention of one
  year-assess progress after six months.
• Inter-sectoral intervention with the led by
  Minister of Education and the Director-General at
  national and the provincial MEC and
  Superintendent -General for Education.
• The national department has made available
  resources on a full time basis to assist with the
  implementation.
• The implementation strategy for the turnaround
  plan has been accepted and must be implemented.
• Monthly reports will be submitted to the Minister
  of Education, the MEC, the Director-General and
  the Superintendent-General.
• Three-monthly reports to be submitted to the
  Provincial Exco and Cabinet.

28
Emerging lessons/themes

• Model of intervention
• Model assumes cooperation, support, budget,
  preconditions that are not present in all
  respects
• Management by committee does not work
• Design of an intervention
• Turn around of this nature requires more planning
  and fixed arrangements on issues such as
  accountability, budget, skills requirements and
  partners before the intervention is launched
• Quick fixes rarely work and only for certain type
  of challenges
• Sustainability and local responsibility need to
  be better defined

29
Emerging lessons/themes

• Budget
• Current budgetary system does not allow for quick
  response to challenges
• Can a receiving institution realistically be
  expected to reprioritise to the extent where
  complete turnaround becomes possible
• General skills requirements
• Mismatch occurred in skills requirements and
  skills availability of deployees, and for
  receiving institutions
• Need formal arrangement to deploy SMS cadres
  according to need
• The role of managers, and other key stakeholders
  (e.g. unions)
• Managers lacking in numbers and skills

30
Emerging lessons/themes

• Logistics
• Basic logistical support can make or break,
  causing delays and demoralisation
• The effect of deployment
• Long-term assignments and deployment of great
  number of staff impacts negatively on releasing
  departments, including emotional and financial
  strains.
• Role of central departments
• Organisationally, programmatically and in terms
  of skills, central departments are not geared for
  scope of IMT-type intervention
• Need to relook role of central departments like
  DPSA, SAMDI, DPLG and National Treasury can and
  should play