Conditional Grant Business Plan Training Process

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Conditional Grant Business Plan Training Process

• National Treasury
• August 2007
• DAY - ONE
• Technical Assistance Unit

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Objectives

• Understanding of broad policy framework governing
  Conditional Grants
• Understand alignment of Budget Cycle and
  Conditional Grant Cycle
• Understand the application and use of the RBM in
  the preparation of business plans
• Develop business plans (draft) as a learning
  process

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Two Day Agenda

• DAY One
• DORA requirements
• Budget cycle, Conditional Grant Cycle and
  Alignment Model (where relevant)
• Introduction to RBM concepts and terminology
• DAY two
• Develop business plans as a learning process
  focusing on
• Logic model Grant Profile
• Performance Measurement Framework
• Risk Management Plan

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Learning approach

• Lectures
• To share essential concepts.
• Group Exercises
• Learn by doing test our ability to apply our
  knowledge to the development of actual business
  plans
• Discussions
• To link concepts to participants needs, build on
  participants experience and offer the opportunity
  to develop a support network.
• Readings
• Reference materials (documents and websites)
  will be made available to participants to pursue
  individual learning interests.
• Feedback
• This is your workshop. We would appreciate
  feedback so that we can better meet your
  interests and needs.

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Rules of Engagement

• Be open to share experience, ideas, opinions
• Respect ideas, opinions
• Dont be afraid to ask questions. We will either
• Answer it
• Park it
• Refer it to the group
• Research it and answer it later, in group or
  off-line

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ALIGNMENT OF THE BUDGET CYCLE, CONDITIONAL GRANT
CYCLE AND THE INFRASTRUCTURE DELIVERY CYCLE
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MTEF Budget Preparation Cycle and Conditional
Grant Planning Processes
Budget Preparation Cycle
Mid Feb
31 Aug
Mid Dec
Final Budget
Update Budget
Draft Budget
Budget Alloc Letter
10 x 10
MTEC
MinComBud
Cabinet
MTBPS
Budget Day
Conditional Grant Planning Processes
APPROVAL
1st draft of Business Plan for next year
Updated Business Plan for next year
Finalising the Grant Framework for DoRA
Requirements
Legend
Input into Budget
Process Linkages
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Alignment of the MTEF Budget Cycle and the
Conditional Grant Cycle
AR
Final Budget
Update Budget
Draft Budget
AFS
Implement Budget
Final Budget
Update Budget
Draft Budget
Implement Budget
AFS
Final Budget
Update Budget
Draft Budget
Implement Budget
Grant Initiation
Grant Formulation Approval
Level 1 Approval CG approved for coming yr
Implementa-tion Planning
Year 1 Implementation, Monitoring Reporting
Business Plan for Year 2
Year 2 Implementation, Monitoring Reporting
Business Plan for Year 3
Legend
Budget Allocation
Input into Budget
Process Linkages
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Infrastructure Planning Processes
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In the case where a Conditional Grant contains
infrastructure the Infrastructure Delivery Cycle
must be taken into consideration
AR
Final Budget
Update Budget
Draft Budget
AFS
Implement Budget
Final Budget
Update Budget
Draft Budget
Implement Budget
AFS
Final Budget
Update Budget
Draft Budget
Implement Budget
Grant Initiation
Grant Formulation Approval
Level 1 Approval CG approved for coming yr
Implementa-tion Planning
Year 1 Implementation, Monitoring Reporting
Business Plan for Year 2
Year 2 Implementation, Monitoring Reporting
Business Plan for Year 3
Project Implementation
Project Design
Project Tender
Programme Design
Infrastructure Planning
Legend
Budget Allocation
Input into Budget
Process Linkages
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INTRODUCTION TO RESULTS BASED MANAGEMENT OR
PERFORMANCE MANAGEMENT
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Some Key Questions

• How does the cumulative impact of long term
  initiatives get measured and reported?
• What is the contribution of the work being done
  in terms of the strategic goal?
• How can progress be measured and reported?
• Who needs to get such reports?
• Is government getting value for its money?
• How can interdependencies be managed?
• Can a shared understanding of service delivery be
  generated?

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What is Results-based Management

• Is a comprehensive approach to public management
  based on a client\taxpayer\citizen-centred view
• It focuses on external results (outcomes) rather
  than on internal processes to drive change
• It integrates strategy resources, performance,
  measurement, learning and adjusting to improve
  decision making
• Results information is used for learning and
  decisions making as well as reporting and
  accountability

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Why results-based management (2)

• The expected benefits are better responses to
  client\taxpayer\citizen expectations,
  particularly with regard to value for money
• It puts considerable emphasis on defining and
  achieving results and development and improvement
  
• It facilitates an integrated and coherent
  approach to public management with improved
  accountability
• Management for results and not by results is
  the key through arrangement of resources to
  achieve the outcomes

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RBM Elements Solutions

• Results Based Management assists in setting the
  stage to answer these and other questions
• Key elements include
• The building in of a useful approach from the
  beginning of the strategic process
• A focus on the results to be achieved and
• Ongoing and continuous management over time and
  up and down the public sector hierarchy.

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Importance in SA?

• Government Wide Monitoring and Evaluation System
  (GWME)
• Framework for Managing Programme Performance
  Information (PIF)
• Both initiatives are using RBM principles,
  emphasis is on
• Accountability and achieving results
• Meeting stakeholder expectations
• Ensuring Value for money

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RBM Cycle
Programme Management
Influence and
Project Management
NT TAU
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RBMManagement Framework
Impact
Manage/influence to achieve these
Outcomes
(change in behaviour)
Outputs
Project Manage Budget for these
Activities
Inputs
(deliverables)
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RBMPerformance Framework
Impact
Indicator
There need to be indicators of performance at all
levels
Outcomes
Indicator
Outputs
Indicator
Activities
Indicator
Inputs
Indicator
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RMBLogical Framework
Impact
Assumptions
Outcomes
Assumptions
Outputs
Assumptions
Assumptions hold true
Activities
AND
THEN
Inputs
IF
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Managing for Results - Principles

• Focus the dialogue on results at all phases of
  the (Programmes Projects) development process
• Align programming, monitoring, and evaluation
  with results
• Keep results measurement and reporting as simple,
  cost-effective, and user friendly as possible
• Manage for, not by, results, by arranging
  resources to achieve outcomes
• Use results information for learning and decision
  making as well as reporting and accountability

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(No Transcript)
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Results-Based ManagementLinking Programmes to
Strategic Objectives

• Emphasises strategic alignment of effort towards
  results objectives linking programmes to
  strategic objectives

Strategic Plan
Operational Planning Process
Reporting Process
Planning Process
Operational Plan
Unit Work Plan
Employee Work Plan
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How this is applied in SA
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Focusing on Results helps

• Departments to understand the difference made by
  their programmes to the communities they serve
• Departments have increased transparency and
  accountability
• Departments to better allocate resources and
  better design/adapt programmes and services to
  the needs of the people
• Using RBM as a management tool,
• Department will be in a position to learn and
  improve their programmes and service delivery

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Some tools assimilated by RBM

• Plans
• State of the Nation address, Budget speech
• Department's strategic plans and operational
  plans
• Performance measurement/monitoring systems
• GWME
• PIF
• Control system
• Performance audit
• HR engagement and accountability
• Performance agreements
• Published public service standards (Batho Pele)
• Programme/Project Design
• Logic model (results chain) Logical Analysis
  Framework (logframe)
• Results based management frameworks
• Risk based and audit framework

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What you need to focus on!!!

• Change management
• Risk management
• Performance management and reporting

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Change Management Necessary to minimise negative
impact due to transition
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Why manage risk?

• Fundamental responsibility of (public service)
  management!
• Management decisions are generally made in a
  context of uncertainty.
• RBM emphasis on accountability in the pursuit of
  results requires a thorough identification and
  understanding of risk in order to have the
  appropriate control system in place.
• A proactive stance in risk management not only
  minimises probability and incidence of
  undesirable events, it also fosters innovation.
• Risk is no longer something to be faced risk
  has become a set of opportunities open to
  choice.
• Peter L. Bernstein, Against the Gods

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RBM and Risk
Risk is the uncertainty that surrounds future
events outcomes. It is a function of the
probability and the impact of an event that has
the potential to (negatively) influence the
realisation of the organisations expected
results. Risk increases over time, as, in a
dynamic environment, numerous variables come into
play, many not under any one individual or
organisations control.
Source CIDA web site
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Performance measurement Is all about

• Why does the project, programme exist?
• What do we want to accomplish?
• How are going to deliver the programme?
• How will we know how well we are doing?
• What changes do we make to improve the delivery
  of the programme?

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Project Framework
Typical Focus
RBM Focus
Indicators, baselines and targets
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The RBM cycle Not a linear sequence!
Commit
feedback, adjust
Implement
Control
feedback, adjust
Report
feedback, adjust
Improve
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Introduction to RBM concepts and terminology
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Activities vs. Outputs vs. Outcomes
Activities what we do Describes a collection of functions (actions, jobs, tasks) that consume inputs/resources and whose outputs deliver benefits/impacts to a client.
Outputs what we produce The direct products and services generated through processes or activities.
Outcomes why we do it The effects, benefits or consequences (impacts) that occur (either in the short, intermediate, or long-term) due to the outputs of programs, processes or activities.
In summary, every Program undertakes Activities
that produce Outputs that contribute to the
achievement of Outcomes.
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Examples of Activities
Activities what we do Describes a collection
of functions (actions, jobs, tasks) that consume
inputs/ resources and whose outputs deliver
benefits/impacts to a client.

• Conduct research
• Publish documents
• Provide advice
• Contract for services
• Respond to enquiries
• Draft the business plan
• Organize Committee meetings
• Organize Committee travel
• Note that Activities contain verbs

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Examples of Outputs
Outputs what we produce The direct products
and services generated through processes or
activities without specific reference to their
ultimate purpose.

• Research papers
• Advice and direction
• Service providers obtained and work initiated
• Business plan
• Committee reports
• Note that Outputs contain nouns

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Examples of Outcomes
Outcomes why we do it The effects, benefits
or consequences (impacts) that occur (either in
the short, intermediate, or long-term) due to the
outputs of programs, processes or activities.

• A secure work environment
• Electronic accessibility and equality
• Sound management practices (accountability and
  reporting framework, people management, internal
  communications, technology support)
• Representative workforce
• Note that Outcomes refer to a changed state of
  being and are stated in the present tense.

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Key Issues to consider when identifying outcomes

• Are there stated national /sectoral goals
• Have political promises been made that specify
  improved performance of the government
• Do citizens, polling data indicate specific
  concerns
• Is authorizing legislation present
• Other Millennium Development Goals (MDGs), PoA
  Objectives

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Indicators, Standards/Targets

• Indicators ( The How)
• A quantitative or qualitative attribute,
  statistic or parameter that, tracked over time,
  provides information on the condition of a
  phenomenon.
• (e.g. percentage of clients that are satisfied).
• Standards/Targets (The How Much)
• Specific quantitative or qualitative goals
  associated with specific performance indicators
  (e.g. 90 client satisfaction).
• Standards imply product and service levels to
  which an organization is prepared to commit.
• Targets imply a desired goal that may be more
  ambitious than a standard.

In summary, Indicators, Standards and Targets are
used to provide information on how efficiently
and effectively the Program is being managed.
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Examples of Indicators
Indicators the how A quantitative or
qualitative attribute, statistic or parameter
that, tracked over time, provides information on
the condition of a phenomenon

• Cost per unit published
• of total workforce leaving the organization
• Time (hours) to respond to a request for service
• Level of satisfaction of service users/ providers

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Examples of Standards/Targets
Standards/Targets (the How Much) Specific
quantitative or qualitative goals against which
actual outputs or outcomes will be compared

• 60 of South Africans are aware of housing
  subsidies opportunities
• Training cost per new employee is 2,000
• 85 of workforce is satisfied with working
  conditions, quality of life
• 99 availability of IT networks

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Exercise Number 1 RBM Language
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Results Chain
RESULTS
High Control
Low Influence
STRATEGIC OUTCOMES
OUTCOMES (FINAL)
OUTCOMES (INTERMEDIATE)
INPUTS (RESOURCES)
ACTIVITIES
OUTPUTS
OUTCOMES (IMMEDIATE)
A Results Chain can include multiple inputs,
activities, outputs or outcomes. There are two
types of Results Outputs and Outcomes.
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RBMLine of Sight
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Exercise Number 2Outcomes
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Exercise Number 3 Identifying indicators related
to the Logic Model
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Brief Summary

• RBM goes beyond the work we do it interrogates
  the impact this has.
• There is a hierarchical relationship between
  outputs and outcomes.
• Each level of this logic must and can be
  measured.
• Measurements used for management and reporting.
• Indicators are not the same up the hierarchy.