HRM

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Understanding Organisational Performance
HRMD Steering Committee 12
June 2008
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Objectives

• If you dont know where you are going, any
  road will take you there. Where there is no
  purpose or plan it is like a ship without a sail
  or destination.
• 
  Munroe

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Policy InterfaceMisalignmentDPSA (Formulators)
vs Line Depts (Implementers)
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Peoples Contract 2004-2014
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Poverty eradication and underdevelopment

• Deepening of Democracy promoting security
  including social security

Fostering Healthy Skilled Productive Employee

• Ensuring faster economic growth and development

Improving Global relations and PS Reform
Capacity of the State to Deliver on POA
Serving with humility and professionalism
Batho Pele principles (BP) are the guiding
platform for DPSA service delivery
1.CONSULTATION
2. SERVICE STANDARDS
3. ACCESS
4. COURTESY
5. INFORMATION
7. REDRESS
8. VALUE FOR MONEY
6. OPENESS TRANSPARENCY
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Key Questions
Policy What choices do we make?
Processes How do we get there?
Resources What do we need to deliver?
SYSTEMS
Citizen How do we measure how well we are
delivering?
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Strategic Planning Process
Cutting edge Human Services Organisations (HSOs)
assess their performance by addressing the
following four areas Policy Through Future
Strategic Planning Where is the organisation
going and what choices do we make? Processes-
Service Delivery vehicle How do we get
there? Resources- Effective and Efficient
utilisation What do we need to do to perform
successfully ? Stakeholder/Citizen Satisfaction
Citizen Surveys How do we measure how well we
are delivering services?
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Strategic planning

• Deciding what the organisation might do
  identifying environmental opportunity using the
  PESTEL model
• Deciding what the organisation realistically can
  do identifying competencies, skills and
  resources
• Deciding what the organisation wants to do
  managerial strategies and objectives
• Deciding what that organisation should do
  responsibility to social partners namely,
  citizens, customers, clients and subject in line
  with political mandates

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Analysis is an important component in strategic
planning
PESTEL analytical model, used to identify
factors that can influence the content of
planning and KPIs.
Technological Environment
Political Legal Environments
Impact on Organisation
Social Demographic Environments
Macro-economic Environment
SWOT ANALYSIS
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Strategic Planning Model
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The Process for Translating a Mission into
Strategic Objectives
Vision Where we want to be? Strategic Intent
Mission How do we get there?
Core Values What do we believe in?
Service Standards What satisfaction levels do we
need to meet?
Strategic Goals/Priorities What choices do we
make and for which focus areas?)
Strategic Objectives What needs to be done and
measured, when, how and by whom?
Strategic Plan What period, medium to long term
will we aim to get there (3-5 years)?
Key Result/Performance Areas (where and by whom)
Performance Measures
Initiatives/ Activities
Targets
Measurable Objectives
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Strategy planning concepts

• Vision Defines where the organization wants to
  see itself in the future

• Mission Defines the purpose or broader goal for
  being in existence or in the business. It serves
  as an ongoing guide without a specific time frame

• Strategic goals Areas of organization
  performance critical to the achievement of the
  mission they describe the strategic direction,
  and can be thought of as the outcomes to be
  achieved by the organization

• Strategic objectives Are more concrete and
  specific than goals, and must describe high-level
  outputs or results of actions. These would
  normally describe high-level outputs or results
  of actions that the department intends taking,
  and should link directly to the strategic goals

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Strategy planning concepts (2)

• Measurable objectives Identify very specific
  things that the department intends doing or
  delivering in order to achieve the strategic
  objectives, and ultimately the strategic goals.
  There must be a direct causal link running from a
  measurable objective to one or more of the
  strategic objectives. Measurable objectives must
  be SMART, i.e. specific, measurable, achievable,
  relevant and time-bound

• Initiatives The measurable objectives unpacked
  for actioning through specific programmes,
  projects, actions, tasks

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Strategy implementation concepts

• Input A resource allocated and consumed by the
  organization (e.g. R1.5m for a project 2
  employees)

• Activity Actual work and tasks performed in line
  with the planned objectives and initiatives (e.g.
  present seminar)

• Output A tangible result of activities in the
  form of goods and/or services delivered to
  customers or clients, internal or external (e.g.
  quarterly presented 12 training seminars)

• Outcome The expected, desired, or actual results
  to which outputs of activities have an intended
  effect (e.g. 90 of SMS members have signed PAs
  on time)

• Impact The direct or indirect effects produced
  by the outcomes as they relate to strategic
  objectives (e.g. improved performance management
  in the province)

• Values Reflect what the organization aspires to,
  esteems, values and considers worthwhile to
  achieve for clients society

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Strategy Formulation
Strategy Implementation
Top-Line Return
Vision
Values
Alignment
Mission
Impact
Linkage
Measurement
Goals
Outcomes
Objectives
Outputs
Initiatives
Activities
Resources Inputs
Bottom-Line Investment
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Impact made Deliverables and Targets met
Citizen satisfaction
Objectives achieved Management Plans
executed Services delivered/ offered
Operations and projects
Resources, Human, Financial, Informational, Struct
ural and time
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Integrated planning and performance
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KPI/Programme Performance Measurement
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EXTERNAL ENVIRONMENT
INPUTS
OUTPUTS
Parliament President/PM Portf Com. Clusters FOSAD
National Planning Framework Presidency FOSAD
National Treasury/ Provincial Treasury FOSAD
Annual Performance Reports, Quarterly Reports
SOCIETY
Outputs
Resources
Governance Management
Programme Performance
Financial Performance
Employee Performance
Outcomes
Physical
Impact
Governance Mgt Structures processes
Strategic Planning Processes
Financial Planning Processes
Strategic Control Processes
Human
Financial
Service Delivery
Mandates
MINEXCO MANCO ORGANOGRAM.
STRATEGIC OPERATIONAL PLAN, APP (prov)
MTEF ANNUAL BUDGET, BUDGET COM.
PMDS HOD, SMS PMDS, NON-SMS
Constitution
CITIZENS
MPSA PS Act
MF PFMA
Performance
Operating platforms and soft issues
Dept Specific
Leadership, Org Structure, Culture, Values,
Ethics, Batho Pele, Styles Processes
Feedback loop
Monitoring Evaluation of compliance progress
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Understanding Performance Management
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Performance Management System
Difference between Managing Performance (process)
and Performance Management (event) A performance
management system is an authoritative framework
for planning, managing and measuring performance
of both the organization and the employees This
includes the policy and planning frameworks, as
well as the elements in the performance cycle,
including - performance planning and agreement,
performance monitoring, measurement, review,
assessment, control and corrective measures
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Performance Planning
Cutting edge human services organisations (HSOs)
assess their performance by addressing the
following four areas Policy Through future
strategic planning Where is the organisation
going and what choices do we make? Processes-
Delivery vehicle How do we get there? Resources-
Effective and efficient utilisation What do we
need to do to perform successfully
? Stakeholder/Community Satisfaction Customer
surveys How do we measure how well we are doing?
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Organizational Performance Management
Total system which is made up of numerous
sub-systems i.e. tools/instruments make up
subsystems Organizational performance reflects
the extent to which an organisation uses its
resources efficiently, to produce outputs that
are consistent with its goals and objectives and
relevant for its clients and stakeholders
Organizational performance comprises the actual
output or results of an organization as measured
against its goals and objectives and intended
outputs and service delivery targets
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Performance Measurement
Performance measurement is the on-going
measuring, monitoring and reporting on the
outputs or results of programme accomplishments,
in particular progress towards pre-determined
goals and objectives and service delivery
targets Performance measurement is done by
measuring dimensions of performance, based on
performance information relating to various
aspects of the organization Performance measures
may address inputs, types or levels of activities
conducted (process), the goods and services
delivered (outputs), and/or the results and
effect of those outputs (outcomes and impact)
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Performance indicators
The concepts - performance measures and
performance indicators are often used
interchangeably The National Treasury, in its
Framework for Managing Programme Performance
Information, noted that for the sake of
consistency the concept performance indicator
is used Performance indicators therefore are
required to measure dimensions of performance, in
relation to inputs, activities, outputs, outcomes
and impact The challenge is to determine those
indicators that measure what is important,
appropriate and measurable
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KPIs

• Key Performance Indicators (KPIs)
• KPIs are quantifiable measurements i.e.
  Performance Levels or Standards agreed to
  beforehand, that reflect the critical success
  factors of the department which is the sum total
  of the performance within a programme against
  measurable objectives)
• Evidence demonstrating achievements/artefacts of
  performance against measurable objectives
• KPIs are used to observe progress made and
  measure the actual results compared to expected
  results
• Performance is measured according to the
  relevance of the situation in terms of
• Quantity - e.g. Cost
• Timeliness - e.g. Efficiency
• Quality - e.g. Effectiveness

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Types of direct performance indicators

• Quantity indicators number of inputs,
  activities, outputs
• Quality indicators quality against set standards
  
• Time indicators completion, response, frequency,
  waiting
• Cost indicators to determine economy and
  efficiency
• Distribution indicators distribution of capacity
  e.g. geography, demographics, urban- rural
• Accessibility indicators distance to service,
  language, disabled
• Adequacy indicators outputs relative to need or
  demand

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KRA/KPAs

• Main goals / objectives to be fulfilled by a
  specific job function during a specific period

Strategic Objectives
Vision and Mission
KRA/ KPAs
Nature of Services
Current priorities and policy needs
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Types of performance indicators
ORGANIZATIONAL INDICATOR TYPES
INPUT SIDE
OUTPUT SIDE
Resources
Impact
The organization
Physical
Governance and Management Structures and
Processes
Strategic Planning and Processes (Programme
Performance)
Human
Outcomes
Financial
Mandates
Financial Planning, Budgeting, Processes and
Performance
Strategic Control Processes (Performance
Management)
Outputs
Constitution
Leadership, Org. Culture, Styles
Other legislation
Regulations
Batho Pele, Values, Ethics, Processes
Activities
Policies
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5-year Strategic Plan
MTEF budget
Mission
Vision
Values
1-year Operational Plan (APP)
Annual budget
Organizational perspective
Strategy Formulation
Strategy Implementation
Goals
Outcomes
Impact
Objectives
Outputs
Performance indicators
Initiatives
Activities
Performance targets
HoD
SMS PMDS
PMDS (1 12)
HoD Evaluation Framework
SMS PMDS Appraisal Framework
EPMDS Appraisal Framework
Individual perspective
Performance Agreement
Performance Agreement
Performance Agreement
KRAs
CMCs
KRAs
CMCs
KRAs
GAFs
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Performer level
Responsibility
Dominant indicator types
x
Value indicators
EA
Impact indicators
Dir-Gen
Outcome indicators
DDG
Output indicators
CD/Dir
Process indicators
DD/ASD
Task indicators
Operator
Support indicators
Admin support
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Hierarchy of types and nature of Plans to
Execute the Strategic Plan of a
Department
Strategic Plan (3-5 yrs)
1. Vision/ Policy
2. Service Delivery/Budget Plan (3yrs MTEF)
2. Strategic Objectives
3. Annual Performance Plan (1 yr/annually)
3. Measurable Objectives
4. Operational Plan (1 year with 4
quarters/quarterly)
4. Performance Measures
5. Work plans and Project Plans (Weekly)
5. Targets/Outcomes
6.Activities/ Initiatives
6. Itemised Daily Activity Plans
Development plans (individuals at all levels)
NB Each Performer level is responsible for a
micro-plan which is a subsystem of the macro-plan
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HIERARCHY OF PLANNING
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Individual Responsibility Plan linking
telescopic to microscopic golden thread
Strategic Plan (year on year/annually
DG Performance Contract
DDGs Individual Performance Contract
Annual Performance Plan (quarterly)
CDs Individual Performance Contract
Operational Plan (monthly)
Directors Individual Performance Contract
Work plan (weekly)
Line Employees Individual Performance Contract
Activity Plan (daily)
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Cascading of Plans/Windows over 3 years
Strategic Plan (year on year/annually
DG Performance Contract
DDGs Individual Performance Contract
Annual Performance Plan (quarterly)
CDs Individual Performance Contract
Operational Plan (monthly)
Directors Individual Performance Contract
Work plan (weekly)
Line Employees Individual Performance Contract
Activity Plan (daily)
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Implementation of A Strategic Plan
WORKSHOP 1
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Rollout Performance Success Factors

No Success
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Work Plans
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False Starts
?
Resources
Frustration
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Incentives
Resistance
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Capabilities
Anxiety
Urgency
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Apathy
Vision
Confusion
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KRAs at an organisation level
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Capabilities

• Do we have the capacity to deliver and understand
  policy gaps? Do we have the combination of all
  distinctive elements for delivery?

People Skills, attitude, Competencies, Leadership
, Motivation!!
Technology/ Systems
Capability
Practices and Processes Culture transformation
Resources and Infrastructure
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Specific functions related to the job
Competencies associated with the effective
execution of the public services mission
Extra skills
The overall training strategy to develop the
human resource potential for sustainable
development
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• THANK YOU
• SIYABONGA