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HRM&D Steering CommitteeHRM&D Steering Committee 12 June 200812 June 2008

Understanding Organisational Understanding Organisational Performance Performance

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Objectives

“If you don’t 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 InterfaceMisalignment

DPSA (Formulators) vs Line Depts(Implementers)

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Poverty eradication

and underdevelop

ment

Poverty eradication

and underdevelop

ment

Deepening of Democracy &

promoting security

including social security

Deepening of Democracy &

promoting security

including social security

Fostering Healthy Skilled

Productive Employee

Fostering Healthy Skilled

Productive Employee

Ensuring faster

economic growth and

development

Ensuring faster

economic growth and

development

Improving Global

relationsand PS Reform

Improving Global

relationsand PS Reform

Capacity of the

State to Deliver on

POA

Capacity of the

State to Deliver on

POA

Batho Pele principles (BP) are the guiding platform for DPSA service deliveryBatho Pele principles (BP) are the guiding platform for DPSA service delivery

1.CONSULTATION1.CONSULTATION 2. SERVICE STANDARDS2. SERVICE

STANDARDS

3. ACCESS3.

ACCESS

4. COURTESY4.

COURTESY5.

INFORMATION5. INFORMATION

7. REDRESS7.

REDRESS

8. VALUE FOR MONEY8. VALUE FOR

MONEY

6. OPENESS & TRANSPARENCY6. OPENESS &

TRANSPARENCY

People’s Contract 2004-2014

People’s Contract 2004-2014

Serving with humility and professionalis

m

Serving with humility and professionalis

m

2 3 4 5 6 71

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Policy What choices do we make?

Policy What choices do we make?

ProcessesHow do we get there?

ProcessesHow do we get there?

ResourcesWhat do we

need to deliver?

ResourcesWhat do we

need to deliver?

CitizenHow do we

measure how well we are delivering?

CitizenHow do we

measure how well we are delivering?

Key Questions

SYSTEMS

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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: Whatdo 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 planningStrategic 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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SWOT ANALYSIS

Political & Legal Environments

Technological Environment

Social & DemographicEnvironments

Macro-economicEnvironment

PESTEL analytical model,  used to identify factors that can influence the content of planning and KPIs. 

Analysis is an important component in strategic planning

Impact on

Organisation

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National Public Service Vision

STRATEGIC FOUNDATIONS

WHO? (ARE WE) in the CONTEXT

of CITIZEN FOCUS

Vision

Mission

Values

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Strategic Planning Model

Pre-planning Activities C

1 PREPARATION - REVIEW

WHERE? (ARE WE)WHAT? (IS WORKING- ISN’T WORKING)

Identify Participants

Situation Analysis

3STRATEGIC FOCUSING

WHERE? (ARE WE GOING)

Key Result Areas

Measurable Objectives

Strategic Goals/Thrust

C

StrategicObjectives

Policies

SWOT

HOW? (WILL WE GET THERE)i.e to KRA

C

Measurables (KPI’s, Goals, Objectives)HOW? (WILL WE KNOW WHEN WE HAVE ARRIVED)

Measurem

ent System

4

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The Process for Translating a Mission into Strategic Objectives

VisionWhere we want to be?

Strategic Intent

MissionHow do we get there?

Core Values What do we believe in?

Service StandardsWhat satisfaction levels do we need to meet?

Strategic Goals/PrioritiesWhat choices do we make and for which focus areas?)

Strategic ObjectivesWhat needs to be done and measured, when, how and by whom?

Strategic PlanWhat period, medium to long term will we aim to get there (3-5 years)?

Key Result/Performance Areas (where and by whom)Measurable Objectives

Performance Measures

Initiatives/Activities Targets

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Strategy planning conceptsStrategy 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 outcomesto 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)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 conceptsStrategy implementation concepts

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

• 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)

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Mission

Goals

Objectives

Initiatives

ResourcesInputs

Activities

Outputs

Impact

Outcomes

Alignment

LinkageM

easu

rem

ent

Bottom-Line: Investment

Top-Line: ReturnStrategy FormulationStrategy Formulation Strategy ImplementationStrategy Implementation

Vision Values

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Business objectives achieved; Conformance to strategic and mgmt

plans; Products/services offered

Operations, Projects

INPUTINPUT

OUTCOMEOUTCOME

OUTPUTOUTPUT

PROCESSPROCESS

Key Performance IndicatorMeasurementDashboard Resources: Human,

Information, Financial, Structural, Time

objectives achieved;

Conformance to strategic and mgmt

plans

DeliverablesCitizen satisfaction, Impact

Ope

ratio

nal;

Effic

ienc

y m

easu

res

Stra

tegi

c;Ef

fect

iven

ess

mea

sure

s

short term focus

long term focus

Objectives achieved;Management Plans

executed;Services delivered/

offered

Operations and projects

Resources, Human,Financial,

Informational,Structural and time

Impact made;Deliverables and Targets

met; Citizen satisfaction

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Medium Term Budget Policy

Annual reportsAudit reports

Medium Term Strategic FrameworkElection

mandate

New or revised policies and priorities

Planning and Budgeting

Delivering value to citizens

Policy

Performance monitoring & evaluation

Figure 1: Integrated Performance Management

Accountability and Reporting

Year-end evaluation

Impact evaluation

Implementation and In-year monitoring

Department Annual plan and Budget

Department Strategic Plan and MTEF

Government Annual Programme of Action and Budget

Individual performance plansor performance

agreements

Quarterly performance reviews of individuals

Annual performance appraisal of individuals

Integrated planning and performanceIntegrated planning and performance

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KPI/Programme Performance MeasurementSTRATEGIC GOALS/PRIORITIES

(3 to 5 years +)

Approx. 5 one per Goal

STRATEGIC OBJECTIVES(3 years +)

Approx 3 per goalMEASURABLE OBJECTIVES

(3 years +)

Approx 6 areas KRA/PROGRAMMES

(permanent)

Approx 6 areas

KPA/SUB-PROGRAMMES(permanent)

SETS OF ACTIVITIES/INITIATIVES(1- 3 years +)

PERFORMANCE MEASURES/INDICATORS(1- 3 yrs +)

PERFORMANCE TARGETS(1- 3 yrs)

STRATEGIC PLANNINGLEVEL

PROGRAMME IMPLEMENTATIONLEVEL

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EXTERNAL ENVIRONMENTEXTERNAL ENVIRONMENT

Monitoring & Evaluation of compliance & progress

Constitution

MF: PFMA

Dept Specific

MINEXCO; MANCO; ORGANOGRAM.

STRATEGIC & OPERATIONAL PLAN, APP (prov)MPSA: PS Act

MTEF & ANNUAL BUDGET, BUDGET COM.

PMDS [HOD, SMS PMDS, & NON-SMS]

SOCIETY

CITIZENS

Parliament President/PM

Portf Com. Clusters FOSAD

National Planning

Framework Presidency

FOSAD

National Treasury/ Provincial Treasury FOSAD

Annual Performance

Reports, Quarterly Reports

Leadership, Org Structure, Culture, Values, Ethics, Batho Pele, Styles & Processes

INPUTSINPUTS OUTPUTSOUTPUTS

Service Delivery

Feedback loop

Physical

Human

Financial

Outputs

Outcomes

Impact

Performance

Mandates

Resources

Governance & Management

Programme Performance

Financial Performance

Employee Performance

Governance &Mgt Structures& processes

StrategicPlanning &Processes

FinancialPlanning &Processes

StrategicControl

Processes

Operating platforms and soft issues

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Understanding Understanding Performance ManagementPerformance Management

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Performance Management SystemPerformance Management System

Difference between Managing Performance (process) and Performance Management (event)

A performance management system is an authoritative framework for planning, managingand 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 PlanningPerformance Planning

Cutting edge human services organisations (HSOs) assess their performance by addressing the following four areas:

Policy – Through future strategic planning : Whereis the organisation going and what choices do we make?Processes- Delivery vehicle: How do we get there?Resources- Effective and efficient utilisation: Whatdo 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 comprises the actual output or results of an organization as measured against its goals and objectives and intended outputs and service delivery targets

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 ManagementOrganizational Performance Management

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Performance MeasurementPerformance 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 indicatorsPerformance 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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Key Performance Indicators (KPI’s)

• KPI’s 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

• KPI’s 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. CostTimeliness - e.g. Efficiency Quality - e.g. Effectiveness

KPI’sKPI’s

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Types of direct performance indicatorsTypes 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/KPA’sMain goals / objectives to be fulfilled by a specific job function during a specific period

KRA/KPA’sKRA/KRA/KPAKPA’’ss

Vision and MissionVision and MissionStrategic

Objectives Strategic

Objectives

Current priorities and

policy needs

Current priorities and

policy needs

Nature of Services Nature of Services

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Governance and Management Structures

and Processes

Strategic Planning and Processes (Programme

Performance)

Financial Planning, Budgeting, Processes

and Performance

Strategic Control Processes (Performance

Management)

Physical

Human

Financial

INPUTSIDE

Outputs

Outcomes

Impact

Activities

Leadership, Org. Culture, Styles

Batho Pele, Values, Ethics, Processes

The organization

Types of performance indicatorsTypes of performance indicators

OUTPUTSIDE

ORGANIZATIONALINDICATOR TYPES

Mandates

Resources

Constitution

Regulations

Other legislation

Policies

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5-year Strategic Plan

1-year Operational Plan (APP)

MTEF budget

Annual budget

Mission

Goals

Objectives

Initiatives

Vision

Strategy Formulation Strategy Implementation

Activities

Outputs

Outcomes Impact

Values

Performance indicators

Performance targets

Org

aniz

atio

nal p

ersp

ectiv

eIn

divi

dual

per

spec

tive HoD SMS PMDS PMDS (1 – 12)

HoD

Evaluation Framework

SMS PMDS

Appraisal Framework

Performance Agreement Performance Agreement Performance Agreement

KRAs CMCs KRAs CMCs KRAs GAFs

EPMDS

Appraisal Framework

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Dir-Gen

DDG

CD/Dir

DD/ASD

Operator

EA

xValue indicators

Outcome indicators

Output indicators

Process indicators

Task indicators

Support indicators

Impact indicators

Admin & support

Strategy: policy & strategic direction, oversight and leadership

Strategy: strategic management and leadership

Systemic improvement: standards, monitoring & evaluation

Sustaining delivery: operational management & oversight

Optimizing results: projects, research, action & implementation

Completing tasks: tasks and activities

Performer level Responsibility Dominant indicator types

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StrategicPlan

(3-5 yrs)2. Service Delivery/Budget

Plan(3yrs MTEF)

3. Annual Performance Plan (1 yr/annually)

4. Operational Plan(1 year with 4 quarters/quarterly)

5. Work plans and Project Plans (Weekly)

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

Hierarchy of types and nature of Plans to Execute the Strategic Plan of a Department

1. Vision/Policy

2. Strategic Objectives

3. Measurable Objectives

4. Performance Measures

5. Targets/Outcomes

6.Activities/Initiatives

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HIERARCHY OF PLANNINGPERFORMER LEVEL MANAGEMENT LEVEL

POLICY LEVEL EA AND HOD

STRATEGY LEVEL BRANCH/DDGs and CFO

OPERATIONS/BUSINESS LEVEL

DIVISION/CHIEF DIRECTORS

ENTITY LEVEL DIRECTORATE/DISTRICT

FRONTLINE UNIT HEADS/MIDDLE MANAGERS

ROUTINE LEVEL/ OPERATOR

WORKTEAMS

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Individual Responsibility Plan linking telescopic to microscopic golden thread

Strategic Plan(year on

year/annually

Strategic Objectives

Annual Performance

Plan(quarterly)

DGPerformance

Contract

DDG’sIndividual

Performance Contract

CD’sIndividual

Performance Contract

Director’sIndividual

Performance Contract

Measurable Objectives for

KRA

Operational Plan

(monthly)

Work plan(weekly)

Activity Plan(daily)

Line Employee’s

Individual Performance

Contract

Performance Measures

Targets

Activities/Initiatives

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Cascading of Plans/Windows over 3 years

Strategic Plan(year on

year/annually

Strategic Objectives

Annual Performance

Plan(quarterly)

DGPerformance

Contract

DDG’sIndividual

Performance Contract

CD’sIndividual

Performance Contract

Director’sIndividual

Performance Contract

Measurable Objectives for

KRA

Operational Plan

(monthly)

Work plan(weekly)

Activity Plan(daily)

Line Employee’s

Individual Performance

Contract

Performance Measures

Targets

Activities/Initiatives

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WORKSHOP 

Implementation of A Strategic Plan

Sub-Programme KRA: HRD Strategic Objective (SO)Frequency of

Reports

Weekly•Sub-programme KRA/KPA Objectives

•Any one of the 5-7 dpsa strategic thrusts/goals/objectives applicable

Monthly

QuarterlyMeasurable Objectives (MO) Performance Measures/Indicators

6 Monthly•Any 1-3 measurable objectives used to measure outputs

•Indicators to measure the performance•Name tangible deliverables completed

Annually

Resources Activities/Initiatives/Deliverables

• List budget spent, funding received

Challenges

•List obstacles which affected delivery

• List activities,projects and actions completed

Targets

Baseline 2008 2009 2010 2011 2012

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Rollout Performance Success Factors Rollout Performance Success Factors

Vision

Urgency

Capabilities

Incentives

Resources

Work Plans

Apathy

Confusion

Anxiety

False Starts

Resistance

Frustration

No No SuccessSuccess

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KRAs at an organisation level

Process and

change management

(People)

Strategy and planning

Resources

LeadershipKey

Performance Results

People results

Citize n oriented results

Society Development results

ENABLERS (internal) RESULTS (external)

INNOVATION AND LEARNING

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

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PeopleSkills, attitude, Competencies,Leadership,Motivation!!

Technology/Systems

Resources and Infrastructure

Practices and ProcessesCulturetransformation

Capability

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NATIONAL-STRATEGICCAPACITY BUILDING

Specific functions related to the job

Extra skills

Competencies associated with the

effective execution of the public service’s

mission

The overall training strategy to develop the

human resource potential for sustainable

development

DIFFERENTIATINGCOMPETENCIES

STRATEGIC-GENERICCOMPETENCIES

CORECOMPETENCIES

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THANK YOUTHANK YOUSIYABONGASIYABONGA