REPORT BY THE INTERIM MANAGEMENT TEAM

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REPORT ON THE WORK OF THE INTERIM MANAGEMENT
TEAM, EASTERN CAPE
NCOP 11 SEPTEMBER 2003
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Structure of the presentation

• The IMT mandate
• Summary of challenges
• The IMT solution
• Lessons learnt

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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 Cainet, the IMT received
  additional mandates related to specific challenges

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Structure of the IMT
Interim Management Team DGDPSA, DGOPSC,DGECape
and HoD of Provincial Treasury In partnership
with National Prosecuting Authority and other law
enforcement agencies
Joint Management Teams Specialists and
consultants from
Specialist Teams Issues based ad hoc teams, e.g.
Disciplinary cases
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IMT Roadmap
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Modus operandi of JMTs

• JMT co-leaders work collaboratively, and the HOD
  remains accounting officer
• The tasks of each JMT were to-
• develop plans and strategies to address service
  delivery backlogs
• Identify actions in the areas of Leadership and
  Management, Finance and Administration, Human
  Resource Management, Service Delivery and Ethics
  and Cultural issues
• to implement the turn around plan of the
  department
• The roles of the JMTs of each department are now
  being assessed to improve their effectiveness and
  to integrate turn around plans into departmental
  work

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Relationship with other stakeholders

• The IMT functions in close co-operation with, and
  receives support from various partners and
  stakeholders. These are-
• the Joint Anti-corruption Task Team (JACTT) led
  by the National Director of Public Prosecutions,
  that attends to criminal matters emanating from
  the IMTs work
• Intelligence and law enforcement agencies
• the Special Investigating Unit
• The Office of the Auditor-General
• a range of national and (other) provincial
  departments who provide portfolio specific or
  cross cutting support (eg. national Health
  department, SAMDI, provincial treasury of the
  Western Cape)
• the Center for Public Service Innovation and the
  State Information Technology Agency
• The IMTs operations are emerging as a model for
  integrated governance with a cross-departmental
  and cross-institutional sharing of skills and
  other resources

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Problem analysis General observation
Current Stakeholder Perceptions
Positive
Negative

• Quality of leadership and management at
  departmental level?
• Quality of human resource management practices?
• Financial management and general administrative
  capacity?
• Ability to uphold ethics and reduce corruption?
• Reliability and dependability of public service
  to deliver on government priorities?
• Overall effectiveness and efficiency of public
  service ?

X
X
X
X
X
X
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Service delivery challenges - 1

• Service delivery issues
• The Eastern region has suffered from a history of
  neglect, therefore bearing the brunt of
  geographic disparities from a service delivery
  point of view
• There is an over-supply of planning activity not
  matched by implementation capacity
• Study of budgets do not indicate an immediate
  funding problem although a case can be made for
  historical backlogs

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Service delivery challenges - 2

• In the Eastern Cape, like other under-developed
  regions, there is a high dependency on Government
  for socio-economic development. Government
  cannot fail this need. In the absence of
  widely-available alternatives for socio-economic
  development, Government remains the major
  provider of-
• infrastructure development
• services
• social security, and
• opportunities that stimulate job creation

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Service delivery challenges - 3

• Job creation and increased social security are
  just not happening visibly fast enough
• There are plans and resources for fast-tracking
  service delivery in under-serviced areas (such as
  the Eastern region), however implementation of
  these plans remain frustratingly slow
• Inadequate focus on results and too much time
  spent on process

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Primary concerns - 1

• Our assessment is that a change in behavioral
  patterns is lacking and this change is critical
  for turn-around of the departments
• This assessment established that-
• Managers are, continuously, not taking
  responsibility and they are not displaying a
  strong sense of accountability - according to
  managers the problem always is out there and
  blame for inertia, under-servicing, poor
  leadership and management are deferred to
  systems, inadequacies, interference by unions and
  stakeholders and historic challenges
• In spite of the fact that departments
  continuously receive audit disclaimers, no action
  is taken against any manager and the problems are
  not rectified
• Personal responsibility is consistently fudged

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Primary concerns - 2

• Unions continue to have undue influence over
  managers and their decisions, especially in
  Education, but we have to recognize that a fear
  factor is prevalent in some of these decisions,
  although evidence is limited to an incident in
  Health
• Very high levels of corruption are reported, but
  with limited follow through action
• The culture of ill-discipline and acceptance of
  the poor work ethic, manifests in such behavior
  as absenteeism and demanding overtime for work
  that should be done in office hours, accentuated
  by lack of vigorous management responses

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Primary concerns - 3

• A culture of entitlement prevails as epitomized
  by claims to overtime, performance awards and
  backlog HR payments
• Managers have a significant reliance on outsiders
  for work that is normal businesses - donors and
  consultants are seen as only solutions
• The authority and power of the Tender Board far
  outweighs its level of accountability

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Approach

• Comprehensive, integrated
• Addresses both actual delivery and the conditions
  that make delivery possible
• Mixture of department specific and province wide
• There are transversal challenges that have to be
  addressed to make departmental delivery
  successful, for example financial management
  arrangements in the Province
• Mix of short and long term
• Some solutions are immediately implementable, but
  will only realise benefits in coming financial
  years
• Some solutions are immediately implementable and
  will realise immediate benefits

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Concept
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Turnaround Strategy transversal projects and
departmental turnaround plans
Improve Internal controls and accountability
Improve HR Management
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Measuring progress

• Currently progress is measured through the
  achievement of activities.
• This approach has certain limitations as success
  should be measured in terms of outputs and
  outcomes.
• The monitoring system is currently being revised
  to reflect this.
• Plans are being refined and updated.
• While noting the above, the next slides represent
  progress with regard to implementation of
  activities.

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Turnaround Strategy
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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 attending to HR backlogs and developing detailed service level agreement for Phase 2. Phase 2 to start end of September 2003.
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Strengthen back office support detail
Planned Achieved
Electronic Document Management Solution (EDMS) Document management assessment completed. Piloting approach with the Department of Education. Tender process complete through assistance of SITA. SITA is now pursuing the feasibility of rolling-out to other IMT departments.
IT Assessment Assessment finalised, final report expected September 2003.
Shared Administration Centre Progress will only be achieved once phase 2 of BOS contract underway.
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Turnaround Strategy
Improve internal Controls
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Improve internal controls and accountability
detail
Planned Achieved
Decentralize Internal Audit function in four IMT departments. Tender awarded and work has begun.
Departments to have own Audit Committees. Guidelines developed and departments busy establishing audit committees.
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Turnaround Strategy
Improve Internal Controls
Improve HR Management
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Improve HR Management detail
Planned Achieved
Implementation of resolution 7 proposals On track for completion by 12 September 2003, risk that Education may not complete process on time.
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. Multi-disciplinary task team formed, workshops held and report with recommendations being compiled.
Integrated HRM strategy Developed and published by OTP.
Support services companies Report completed, being discussed within Province
Implement early retirement of employees Implementation linked to Resolution 7 and decision on Support Services Company
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Turnaround Strategy
Improve Internal Controls
Strengthen leadership and management
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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.
Competency profiling of all senior managers. Competency profile complete. Final consolidated report being prepared.
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.
Initiate disciplinary processes for managers based on existing forensic and Auditor General reports. Disciplinary proceedings initiated.
Filling of critical management vacancies Process ongoing
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Turnaround Strategy
Improve Internal Controls
Ethics and anti- Corruption Strategy
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Ethics and anti-corruption detail
Planned Achieved
6 forensic audits Ongoing, first substantive reports have been received and are being acted upon.
Disciplinary Cases Task Team (DCTT) Panel set up and team dealing with cases. 1098 cases on database, 467 active cases being attended to, 172 hearings finalised. Sustainable framework to manage discipline being established
Joint Anti Corruption Task Team (JACTT) JACTT dealing with 374 cases, 144 arrests made, 18 convictions and sentencing, 3 convictions not yet sentenced, 113 attending trial.
Education and Awareness programs Three programmes aimed at senior managers, front line staff and other employees have been developed and aligned with Batho Pele components. Roll out October 2003.
Hotline Operational with many cases being received. Cases referred to DCTT or JACTT as required.
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Turnaround Strategy
Rapid and visible Service delivery
Improve Internal Controls
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Rapid and visible service delivery

• Key infrastructure projects (roads, buildings)
  have been identified
• Have engaged the Coega Development Cooperation to
  assist with project implementation and monitoring
  of existing projects.

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Turnaround Strategy
Departmental turn- around strategies
Education Health Social Development Roads and
Public Works
Departmental Turnaround Strategies

• For this presentation, there are too many
  projects to report on under each turnaround plan,
  therefore broad based progress in terms of
  activities will be given.

Improve Internal Controls
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Education turnaround

• Based on 12 projects
• Human resourcing and personnel expenditure
• district development
• performance management
• management (their performance) and leadership
• financial services
• human resource services
• procurement and logistical services
• discipline
• physical facilities
• learning support material
• matriculation readiness
• school nutrition programme
• Was necessary to change the management structure
  by establishing a project management structure
  and the infusion of managers deployed from
  national departments, as well as the appointment
  of an interim head of department

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Health turnaround

• Three key focus areas
• Improve the management of health services
• Restructured head office, management reforms to
  hospitals and clinics, performance management,
  internal controls, paypoint management, asset
  management, Nelson Mandela Academic Hospital
  fully functional and opened.
• Improve targeted front line health services in
  Eastern Region
• Services of community health centres improved,
  TB, HIV/Aids/Mother and child health improved in
  11 LSAs, increased supervision in use of
  transport, all facilities to have laboratory
  services
• Improve back office support to health
  institutions
• Outsource management of operational maintenance,
  outsource non-core services (linked to support
  services companies proposal), continue with
  existing PPPs, improve allocation and use of
  transport, use existing IT systems for health
  records and information, implement uniform
  patient fee system, implement delta 9 at all
  complexes, regional hospitals and major district
  hospitals

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Roads and Public Works turnaround

• Roads
• Position paper on location of roads function
  being discussed.
• Commercialisation/corporatisation strategy for
  in-house construction/maintenance teams have been
  developed and may soon be implemented
• Roll out of area wide maintenance contracts
• Buildings
• Appointment of strategic property partner
  underway
• Development of solution for building maintenance
  and for effective asset management
• High profile building maintenance
• Management and support services
• Develop and implement communications strategy
• Clarification of departments mandate, the
  development of a new service delivery model,
  complemented by service level agreements, and
  development of new HR plan and organisational
  structure (organisational development and service
  level agreements)
• Programme management office

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Roads and Public Works turnaround summary

• Limited progress achieved due to budget being
  available for Roads and Public Works turnaround
  plan as well as limited integration of turnaround
  plan within broader departmental activities.

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Social Development turnaround

• Review current leadership and management cadre
• Rid the Department of corrupt officials
• Implement initiatives to remove service delivery
  bottlenecks, particularly to speed up CGS
  registration and the disbursement of welfare
  grants.
• Celebrate short-term achievements with targeted
  communications.
• The long-term transformation will take place on
  three levels
• A reconfiguration of how the Department interacts
  with the public, which we call the front office.
  New partnership model with Home Affairs and
  Department of Labour to provide a one stop shop
  solutions
• Helping the Department to make the shift from a
  welfare to a developmental paradigm
• A redesign of the Departments back office. Key
  would be setting a processing center in the
  department and establishing a contract management
  center outside the department but managed by the
  department

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Turnaround plans common challenges

• Implementation has begun and progress in certain
  areas is being achieved.
• However, a number of issues are cause for concern
  as illustrated below.

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Sustainability

• Sustainability is emerging as a concern and work
  has begun on the post IMT sustainability strategy
  of the IMT in terms of monitoring and evaluation
  mechanisms and effective management structures.
• The overall thrust shifts from imposition and
  change (phases 1 to 3) to building motivation,
  capacity, morale and confidence within the
  departments.
• This will see the IMT/JMTs being integrated into
  turnaround units in the four departments and the
  OTP.

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Sustainability ctd
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Emerging lessons/themes

• Turnaround is not a quick fix, some solutions
  only realise full impact over time.
• Getting basics right is essential for smooth
  functioning of higher level activities. A
  breakdown of basic administrative practices (such
  as recording leave) in many instances sabotage an
  output (such as paying out a pension, which
  cannot be done without a complete leave record).
• Setting a foundation for future delivery
• A lot of effort is being put into support systems
  that make actual delivery of services possible.
  Stable but flexible support systems can
  accommodate policy changes, but if the
  foundations are weak, departments battle to
  deliver and accommodate policy shifts.
• Exposing both national and provincial departments
  to various new ways of delivery (e.g.
  partnerships, alternative service delivery,
  benefits of using IT)
• The IMT is providing a rich experience in public
  administration and innovation, drawing on
  examples of other departments and provinces and
  tailoring solutions. These experiences can also
  enrich processes in other departments and
  provinces

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Emerging lessons/themes

• To complete the delivery chain local government
  needs to be included in turn around strategies,
  but currently the legislative framework hampers
  this integration.
• The cooperative model currently applied in the
  Eastern Cape has limitations, and alternative
  models need to be available for similar
  interventions. This requires that the
  Constitutional-type interventions be made
  possible in flexible legislation.

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• Thank you