Business Process Re-engineering Committee – Feedback Presentation Minister of Environment and...

Business Process Re-engineering Committee – Feedback Presentation

Minister of Environment and Water AffairsMrs BEE Molewa

16 th April 2013

ParliamentCape Town

Overview of the Water Affairs Business Process Review Committee Interventions

July 2011 to June 2012(some interventions continued through Dec’12)

BPR Approach and Intervention Process: Jul’11 to Jun’12 with some interventions running through to Dec’12

Terms of Reference

BPRC Briefings

BPRC Briefing Analysis

BPRC Final 47

Deliverables

Deliverables = Reports,

Implementable Outputs and

Position Papers

BPRC Consolidated

ReportNovember 2012

BPRC Inception Report

WS 1WS 2WS 3WS 4WS 5WS 6WS 7WS 8WS 9

WS 10

Workstream Formation & Organisation

3

DWA Top 12 Implemented Outputs - Nov’11 to June’12

35% Reports

Key Implemented Outputs:1.Water Policy Framework & Legislation (GLA Bill) and Tribunal

2.NWRS 2 Published for Comment

3.Strategic Planning and APP Refinement

4.Structure Reorganization Functional Design

5.Culture Assessment and Implementation Plan

6.SMS Selection & Placement

7.Audit Findings Reductions & Remedial Action plans

8. Asset Migration, Management & IT System (AMIS)

9. ICT - Exit Plan, Sourcing Oversight, within timeframe

10. Process Redesign – licencing and recruitment

11. Communication Policy, Strategy & Media Plan

12. Water Entity Debt Restructuring - KOBWA

BPRC Reports & Implementable Outputs

4

Key Challenges Addressed by the BPRCOut of a very wide range of issues facing the Department in mid 2011, the

BPRC was established to focus on the following challenges:

1. Developing and improving water democracy

2. Improving the governance of the water sector

3. Optimising the water infrastructure and facilities

4. Human resources management - functions and operations

5. Financial management and controls and the AG’s annual audit

6. Business Process Re-Engineering – BPR management & licencing

7. Information Technology – management and outsource contract

8. Communicating effectively around water

The BPRC Consolidated report tabled to the Ministry in November details each of these challenges

5

The BPRC worked from the inside out

The BPRC Interventions indicated a rational logic from:

• water policy,

through to

•people, processes and technology

The BPRC through selected interventions has initiated a turnaround trajectory for Water Affairs over 5 years

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Appropriate structure

Effective systems and

processes

Appropriate Resources

Supportive & enabling

environment

Clear mandateIt is around these key linked principles

that the BPRC intervened which resulted in a variety of deliverables comprising of

1.implemented improvements;

and

2.recommended specific actions and improvements

The key principles for DWA’s organisational effectiveness

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Effective systems and processes


Supportive & enabling environment

Key Principles for organisational effectiveness

Internal Structure, structure and functions of DWA entities

Infrastructure management, IT, HR and water use licencing systems

Human Resources and Financial Resources

Culture, change management, stakeholder relations and communications

Themes / Areas of BPRC Focus

Clear mandate Policy, Mandate, Legislation and Strategy

Areas of the BPRC’s focus in addressing the principles

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Developing and improving water democracy:1. Finalisation of the National Water Resources Strategy-2Specific actions to be taken by DWA in getting the NWRS through

the approval stages was undertaken by BPRC.

• The NWRS was comprehensively reviewed with the summary extensively drafted and edited.

• The NWRS was refocused to ensure developmental approach and provided specific direction to the water institutions

• The consultation and public participation mechanism, especially with poor communities was driven

• Principles of participatory demorocatacy embodied in the NWRS

NWRS is in the process of being finally refined for approval and publication, to address the public participation feedback

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Developing and improving water democracy:2. DWA’s mandate needs to changeSpecific actions to be taken by DWA in resolving areas of

mandate confusion or lack of clarity were recommended.

• The coordination and integration of the sanitation mandate is being addressed. Aimed at stopping ongoing duplicatipon of functions between government departments, and gaps in addressing certain key functions.

• Rainfall monitoring needs to be addressed. This is critical for the ability of DWA to manage water resources effectively, particularly in the light of climate change.

The BPRC Consolidated report tabled to the Ministry in November details each of these challenges

arbara / Chair10

Developing and improving water democracy:3. Policy framework & principles for water democracy designDWA’s Strategic Plan and APP was internally focused and did

not address the country’s poor and marginalised

• Principles to address allocations of water for productive purposes were suggested.

• Poor and marginalised community engagement was stipulated to inform DWA strategic direction for planning

• The policy principles identified values for DWA future work and enhanced focus on inequality, poverty eradication and equity in line with national developmental objectives

A processes is being commenced to incorporate the water democracy principles into a revised water policy

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Developing and improving water democracy:4. DWA’s strategic plan & APP were refocused

DWA’s Strategic Plan and APP was output focused and did not adequately address service delivery outcomes to enable a positive impact on the country’s poor and marginalised

1.The refocused Strategic Plan with a revised set of goals and 14 SMART outcome focuses objectives against which DWA performance will be able to be tracked

2.The Strategic Plan has been refined to enable a monitoring and evaluation dashboard to be established

3.The APP was aligned to the Strategic Plan and performance can be better managed through SMART performance information

The 2012-2013 cycle of improvement in strategic planning & APP is being enabled by developing a performance dashboard

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Developing and improving water democracy:5. General Laws Amendment Bill was proposed & facilitated

Critical and urgent amendments were required to the NWA:

• Strategic inputs based on the BPRC’s work on the policy framework and principles were introduced

• Addressing the requirements of a streamlined dispute mechanism

• Proposed amendments towards more effective water resources amendments were effected

Based on the BPRC work & recommendations, current legislation is in the process of being amended

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Developing and improving water democracy:6. BPRC proposed and assisted in establishing an interim dispute resolution measure

A Water Tribunal resulted in an untenable situation:

• An interim solution utilising the mediation process referred to in the NWA was proposed and adopted

• This alternative mechanism was essential to reduce the possibility of supreme court litigation arising from unresolved disputes

• Current proposed draft amendment will re-establish the Water Tribunal in its amended form aligned to similar statutory tribunals.

These amendments will lead to legal certainty

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Key Principles for organisational effectiveness Themes / Areas of BPRC Focus











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Improving the governance of water:7. BPRC addressed uncertainty around institutional arrangements...1

The institutional arrangements around water resources management are inefficient were not transforming to eventually enable water democracy an improve delivery

• The BPRC facilitated the decision to speedy roll out & manage the remaining 7 CMA’s in an agreed plan over 3 years

• The efficient delivery of water resources management functions was emphasised to enable the recovery of water charges and address the 10% to 40% shortfall

• Water Boards be reduced from 13 to 9.

The current certainty regarding the water sector institutional arrangements is beginning to address staff losses and the

previous lack of delivery16

Improving the governance of water:8. BPRC addressed uncertainty around institutional arrangements...2

Challenges around the institutional arrangements around managing the water resources infrastructure were focused on

• The WTE is being integrated into the NWRI, driven by the APP and de facto operates as such

• The most appropriate organisational form was interimly for a government component (GC) to be formed reporting to the DG

• The need for the GC to be capacitated with financial resources was critical

• The role of the TCTA was also considered in the long term

The WTE / NWRI is operating de facto as an integrated entity, its performance being driven by the APP

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Improving the governance of water:9. BPRC developed a functional structure within DWA

The functional reorganisation, facilitated by BPRC will better enable the execution of the DWA Strategic Plan to deliver improved services after several restructuring attempts

• The core functions and capabilities of the Department were aligned to deliver the mandate using a Macro Operating model

• The reorganised structure accommodates a coordinating and integrating PMU in the Office of the DG to focus on developing & maintaining the water infrastructure

• The sector institutional arrangement changes have impacted the manner in which the structure was reorganised

The functional model is to be pursued to map business processes to determine the requisite posts to effectively operate DWA

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DWA-BPRC Top Priority Deliverables – Org Development

BPRC’s Organisational Development Intervention

The BPRC has assisted in developing a high level functional organisational

design, to achieve alignment between mandates and business processes, to

inform the restructuring of DWA in order to perform more effectively on its

mandate.

Organisation Transition Activities

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Optimising the water infrastructure and facilities:10. BPRC’s facilitated the asset management system utilisation

BPRC worked to rejuvenate DWA’s water asset management system (Project Sakhile) previously established which was found to be dysfunctional and outdated

• DWA’s R150 billion assets were updated on systems and a maintenance plan requiring expenditure of R63 billion per year

• Two systems managing the water assets – financial and technically geo-coded assets were migrated & integrated

• The management of assets to the GIAMA standard was reintroduced ensuring alignment with international standards

The refined asset management systems and the supporting technology fundamentally addressed the disclaimer received

from the AG on asset management in the WTE

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Optimising the water infrastructure and facilities:11. BPRC’s assessed the status of DWA’s facilities

BPRC analysed the operational suitability and financial status of DWA’s facility portfolio in terms of adequacy

• Some of DWA’s building leases were found lacking with leases presented for its 57 buildings, of which some had expired

• Discrepancies on property leases with DPW were highlighted and the need for DWA’s land leases needing to be resolved

• BPRC’s initial analysis on the adequacy of the national office revealed that a central campus faculty costing R3.7bn could currently be justified, against R6.5m in annual rental

Corrective actions on addressing the gaps in facilities management were highlighted to the responsible DWA officials

––

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ICT - outsourced contract & improvements:12. Outsource Contract Termination and Remedial Action

BPRC initially diligently investigated the T-System outsource contract including historical issues & the statue of the immanent re-contracting process

• BPRC facilitated an exit agreement & phased exit for T-Systems

• The structure of the new outsource contract was recommended

• A comprehensive outsouced partner exit-entry project plan and schedule was developed to ensure a smooth transition to the next appointed outsource provider

The controversy of the DWA ICT outsourced contract was addressed through oversight of the transition process

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ICT - outsourced contract & improvements:Other ICT interventions undertaken by the BPRCBPRC worked closely with the CIO and ICT Directorate and

facilitated improvements in the following areas

13.ICT capacity and competence ramp-up – job evaluations were undertaken and posted created within and enhanced ICT stature to accommodate the improved management of the ICT outsourced contract

14.ICT Governance – the BPRC developed a ICT governance protocol to enable improved ICT procurement decisions

The BPRC interventions within the ICT Directorate were undertaken and effected to ensure improvement in the management of DWA’s

technology, especially at the commencement of the newly appointed outsources contractors term

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Business Process Review - BPR management & Licencing:Business Process Re-engineering enablement

BPRC trained the Business Process Management function within DWA with best practice BPR competencies to enable the effective management and improvement of processes across DWA

15.BPR Competence was built within DWA – a team of 4 were trailing on mapping reengineering processes for performance improvement

16.Water licencing Process was re-engineered – one of the most critical processes in DWA is to streamline issuing of water licences due the far reaching implications for water deliveryThe BPRC re-engineering interventions need to be rolled out across

DWA’s to ensure sustainable performance improvements in all strategic processes

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HR Management - functions & operations:BPRC’s other interventions to improve HR management

17.SMS Selection and placement – BPRC facilitated the selection of 24 of the 48 vacancies, with 75% of the total being facilitated

18.Re-engineering of the HR recruitment process - improved vacancy filling turnaround time & enabled performance metrics

19.HR Decentralised “partnership” operating model was developed for implementation

20.DG & DDG performance frameworks to contract performance

Functionally operating HR management is a critical success factor to enabling significantly improves performance at DWA

Shar/Thlop 27

Financial management – system and functional improvements:21. AG Audit remedial action BPRC intervened deeply in remedying the findings recorded on

the Main Account and the disclaimer in the WTE

• Rigorous QA was instigated by BPRC and technical accounting skills transferred while developing capacity

• Main account qualifications reduced from 10 to 7

• An overall 30% improvement was attained in the 2011-12 audit compared to the 2010-11 financial year audit

• As was expected, new qualifications did appear which needed to be subsequently addressed for the 2012-13 audit

Corrective actions on addressing the gaps in facilities management were highlighted to the responsible DWA officials

Rachl / Abel28

Finance Management - functions & operations:BPRC’s other interventions to improve financial management

23.Finance functions skills assessment - to address skills and competency shortages

24.WTE Finance capacity building – permanent capacity to be built with the NWRI / WTE entity

25.DBAC management conflict

Functionally operating financial management is a critical success factor to enabling significantly improves performance

especially in the provision and financing of infrastructure

Abel Rachel29












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HR Management - functions & operations:BPRC’s other interventions to improve HR management24.Culture - culture assessment and an implementation plan to

implement an intervention

25.Change management guideline to manage communication and change effectively

A functional support and operating environment within DWA is also a critical success factor to enable performance

improvement within DWA

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Communicating effectively around water:26. National Water Communication Policy, Strategy & Media Plan

BPRC encountered numerous ineffective channels of communication within DWA and the water sector

• Analysis were undertaken on media perceptions to determine coverage patterns on the communication of water issues

• BPRC made recommendations to enhance the current communications policy

• Improvements to the DWA communication strategy were identified by BPRC who facilitated refinements

• BPRC facilitated improvements to improved media planning

The application of the communication policy and strategy would obviate ad hoc and reactionary communication and focus on

proactive communication

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27.Media procurement process re-engineering – this was investigated and a process was put in place to avoiding delays in procuring critical and timely external communication

28.Water Affairs reputation – BPRC ascertained the perception of the DWA and its executives across various stakeholder groups to enable positive media rather than responding to costly responses to negative media reports

29.Mobile Communication project revival - Communication to poor & marginalised communities via mobile technology was revived

Effective communication initiatives are essential to communicate progress made on DWA’s improving performance

Communicating effectively around water:Other BPRC Interventions to improve communication

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6. ICT to enable

Objectives Measures Outcomes / Targets

Strategy

Implementation

Key Performance

Indicators

Activities and Outputs

Job Profiles

Annual Report

Employee Rewards & Incentives

Strategically Linked OrganisationalPerformance Reporting

DWA Business

Model

Govern Manage

Monitoring & Evaluation

Performance Contracting

.

. . .

.

2. Structureto Execute

Minister

Sub-committees DDG’s Sub-

committee 3

DG

DWA and Sector Institutions Strategic Performance Review

AG Audit Report

Maturity Model & Strategic Horse Power0% -130%

Development

DWA & Sector Strategy

Strategically Linked Employee PerformanceImprovement

Effective Recruitment

Culture change management

Business process re-engineering

Functional Org & Institutional Structure

Training & Skills Development

1. Strategy to Direct and Drive Performance

3. Skills to perform

4. Finance to deliver

Measuring Performance

Water Affairs Turnaround initiated by BPRC through the presented interventions which amount to 5 TURNAROUND IMPERATIVES

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1. A robust Water Affairs and Water Sector Strategy must be executed to realise organisation and sector performance

2. An aligned organisational structure and set of sector institutional arrangements must be functional and adequate in numbers to deliver strategic performance

3. The levels of people skills and competencies must be present to enable sufficient HR performance to realise the strategy

4. Financial resources must be adequate and effectively managed to fund the realisation of the strategy

5. Technology must be functional to support and monitor and evaluate performance across all water Affairs strategic processes

The BPRC initiated turnaround will be strategically managed over 5 years to achieve the targets levels of performance & service delivery

To realise the Water Affairs Turnaround over the next 5 years - the 5 imperatives must all be in place and functioning effectively

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RISK

People

Skills

Securityand PrivacyProcesses

DesignCulture

& Change

Organisational Structures

ProjectInformatio

n

BusinessProcesses

BPR Interventions – Turning the Ship Around

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