Independent Development Trust

2008/10 Corporate PlanFebruary 2007

Independent Development Trust

2008/10 Corporate PlanFebruary 2007

Present the IDT’s 2008/10 Corporate Plan to the Portfolio Committee for Public Works in order to:

Establish a framework for evaluating the organisation's performance at the end of the 1st year of the cycle

Clarify the Committee's expectations in respect of performance monitoring in terms of the Committee’s oversight role

Present the IDT’s 2008/10 Corporate Plan to the Portfolio Committee for Public Works in order to:

Establish a framework for evaluating the organisation's performance at the end of the 1st year of the cycle

Clarify the Committee's expectations in respect of performance monitoring in terms of the Committee’s oversight role

Purpose and ContentPurpose and Content

Introduction 4

Purpose of the IDT 7

Vision of the IDT 7

Mission of the IDT 7

Core Values & Operating Principles 7

Environmental Scan 8

Strategic Goals 13

Strategic Objectives 15

Programmes 15

Human Resources Management & Organisational Structure 17

Financial Resources & Sources of Income 23

Key Performance Indicators 26

Implementation 31

Stakeholder Relationship Management 31

Supporting Framework 34

APPENDICES 44

Introduction 4

Purpose of the IDT 7

Vision of the IDT 7

Mission of the IDT 7

Core Values & Operating Principles 7

Environmental Scan 8

Strategic Goals 13

Strategic Objectives 15

Programmes 15

Human Resources Management & Organisational Structure 17

Financial Resources & Sources of Income 23

Key Performance Indicators 26

Implementation 31

Stakeholder Relationship Management 31

Supporting Framework 34

APPENDICES 44

Table of ContentsTable of Contents

OverviewOverview

Overview:

Schedule 2

Establishment

Core Business

Accounting Authority

Statement: Compliance with Treasury Guidelines

Overview:

Schedule 2

Establishment

Core Business

Accounting Authority

Statement: Compliance with Treasury Guidelines

Introduction: Page 4-6Introduction: Page 4-6

Purpose

Vision

Mission

Core Values and Operating Principles

Above remain the same as for previous years

Purpose

Vision

Mission

Core Values and Operating Principles

Above remain the same as for previous years

Pages 7-8Pages 7-8

Environmental Scan

Environmental Scan

Key IssuesPoverty

Developmental State

HIV/AIDS and other chronic diseases

High levels in unemployment

Infrastructure backlogs

Women’s participation in the economy

Social cohesion

Millennium Development Gaols

Feminisation of poverty

Innovative poverty eradication interventions

Macro-economic stability and sustained economic growth; not shades

High levels of inequality

Key IssuesPoverty

Developmental State

HIV/AIDS and other chronic diseases

High levels in unemployment

Infrastructure backlogs

Women’s participation in the economy

Social cohesion

Millennium Development Gaols

Feminisation of poverty

Innovative poverty eradication interventions

Macro-economic stability and sustained economic growth; not shades

High levels of inequality

Environmental Scan: Pages 7-8Environmental Scan: Pages 7-8

Environmental ScanEnvironmental Scan

We have recognized government’s policy objectives in our analysis. I.e.,

Reducing poverty

Increasing employment levels

Promoting small, micro and medium enterprises (SMMEs)

Developing infrastructure

Promoting specific industries

Promoting BEE

Increasing access to basic services

Except for ‘promoting specific industries’, the IDT's strategic choices are relevant and responsive to these policy objectives

We have recognized government’s policy objectives in our analysis. I.e.,

Reducing poverty

Increasing employment levels

Promoting small, micro and medium enterprises (SMMEs)

Developing infrastructure

Promoting specific industries

Promoting BEE

Increasing access to basic services

Except for ‘promoting specific industries’, the IDT's strategic choices are relevant and responsive to these policy objectives

Key ChallengesDifferentiation and positioning of the IDT

mandate revisions can only be completed in medium term through formal processes

2008/10 strategy needs to clearly define a new strategic focus and provide framework for clear institutional differentiation

View: IDT’s effectiveness will only be enhanced by reviewing its business model to integrate programme management, social facilitation with a funding role (development finance)

Sustainability of the IDT’s Business Model

Subject of debate and concern: Board, Minister

Shift to development outcomes

Key ChallengesDifferentiation and positioning of the IDT

mandate revisions can only be completed in medium term through formal processes

2008/10 strategy needs to clearly define a new strategic focus and provide framework for clear institutional differentiation

View: IDT’s effectiveness will only be enhanced by reviewing its business model to integrate programme management, social facilitation with a funding role (development finance)

Sustainability of the IDT’s Business Model

Subject of debate and concern: Board, Minister

Shift to development outcomes

Environmental Scan: Pages 7-8Environmental Scan: Pages 7-8

Strategy proposals

Strategy proposals

Social Dynamics: Key issues: poverty, unemployment, HIV/AIDS, social alienation/exclusion

MDGs: will not halve poverty and hunger by 2014

Greater need and support for robust, innovative poverty eradication interventions

Economic issuesMacro economic stability; sustained growth

Inequality, e.g., Gini coefficient and 2nd economy

ASGISA: transformative mechanism. IDT re-examine and be clear about our role

Political issuesDevelopment= political. IDT operates in politicised space

IDT must have the maturity to maintain institutional integrity in dynamic environment

Technological issuesNeed: On-line, on time data with integrity; effective monitoring and evaluation systems

IDT: opportunity to develop robust, reliable & rapid systems and reports

Social Dynamics: Key issues: poverty, unemployment, HIV/AIDS, social alienation/exclusion

MDGs: will not halve poverty and hunger by 2014

Greater need and support for robust, innovative poverty eradication interventions

Economic issuesMacro economic stability; sustained growth

Inequality, e.g., Gini coefficient and 2nd economy

ASGISA: transformative mechanism. IDT re-examine and be clear about our role

Political issuesDevelopment= political. IDT operates in politicised space

IDT must have the maturity to maintain institutional integrity in dynamic environment

Technological issuesNeed: On-line, on time data with integrity; effective monitoring and evaluation systems

IDT: opportunity to develop robust, reliable & rapid systems and reports

Strategy proposals: Driving forcesStrategy proposals: Driving forces

Strategic Overview: Page 14

Mandate

Goal:Poverty Eradication & Sustainable Development

Strategic Focus

Women Spatial

ProgrammesSocial

Infrastructure Delivery

Development Programme Management Capacity

Development Practice

Innovation & Advocacy

OutcomesSustainable LivelihoodsCohesive Communities

Social Developme

nt

Social Facilitation

Strategic Objectives: Page 15Strategic Objectives: Page 15

1: The provision of basic services and social infrastructure to poor and marginalised communities. A primary focus will be women and their dependents as primary beneficiaries.

2: The development of sustainable livelihoods and employment opportunities in poor and marginalised communities. A primary focus will be on opportunities for women and women’s groups.

3:The enhancement of the human and institutional capacity of community-based, non-governmental organisations and local government operating in poor and marginalised communities. A primary focus will be on organisations with women as their primary participants.

4: Service delivery excellence and the efficient and effective utilisation of financial and human resources.

5: The active promotion and piloting of innovative development practice and advocacy in pursuit of poverty eradication and the advancement of women.

Translated into Targets

1: The provision of basic services and social infrastructure to poor and marginalised communities. A primary focus will be women and their dependents as primary beneficiaries.

2: The development of sustainable livelihoods and employment opportunities in poor and marginalised communities. A primary focus will be on opportunities for women and women’s groups.

3:The enhancement of the human and institutional capacity of community-based, non-governmental organisations and local government operating in poor and marginalised communities. A primary focus will be on organisations with women as their primary participants.

4: Service delivery excellence and the efficient and effective utilisation of financial and human resources.

5: The active promotion and piloting of innovative development practice and advocacy in pursuit of poverty eradication and the advancement of women.

Translated into Targets

Mandate broad: need a more focussed interpretation of our role in order to more effectively apply assets and resources

Hence 2008/10 Corporate strategy targets Women as beneficiaries and participants because:

Poverty = racial, gender & spatial dimensions

Int’l best practice:

targeted vs. universalist approach

Women = most effective delivery vehicles

Women-focused initiatives more likely to maximize impact on poverty eradication

Mandate broad: need a more focussed interpretation of our role in order to more effectively apply assets and resources

Hence 2008/10 Corporate strategy targets Women as beneficiaries and participants because:

Poverty = racial, gender & spatial dimensions

Int’l best practice:

targeted vs. universalist approach

Women = most effective delivery vehicles

Women-focused initiatives more likely to maximize impact on poverty eradication

RationaleRationale

Essence of the shift in strategy:

IDT’s core role and niche area will be to facilitate the creation of sustainable livelihoods and cohesive communities in poverty pockets and underdeveloped areas* by focussing on women as targeted beneficiaries as well as partnering with women as participants in the development process.

* communities in shadow areas (the nodes)

Essence of the shift in strategy:

IDT’s core role and niche area will be to facilitate the creation of sustainable livelihoods and cohesive communities in poverty pockets and underdeveloped areas* by focussing on women as targeted beneficiaries as well as partnering with women as participants in the development process.

* communities in shadow areas (the nodes)

RationaleRationale

Rationale (Shadow Areas)Rationale (Shadow Areas)Developed by the National Solidarity Fund of Tunisia - criteria for intervention or where the Fund would be deployed.

Criteria refers to areas that:

Are in complete isolation and not easily accessible;

Has an absence of at least two basic amenities of life (e.g., water, electricity, roads, housing)

Has an absence of favourable factors encouraging economic activities that guarantee decent living conditions (survivalist economies)

Has a minimum of 30 families living in the area

Shadow areas is also described as ’those people disadvantaged by nature and forgotten by development.’

Developed by the National Solidarity Fund of Tunisia - criteria for intervention or where the Fund would be deployed.

Criteria refers to areas that:

Are in complete isolation and not easily accessible;

Has an absence of at least two basic amenities of life (e.g., water, electricity, roads, housing)

Has an absence of favourable factors encouraging economic activities that guarantee decent living conditions (survivalist economies)

Has a minimum of 30 families living in the area

Shadow areas is also described as ’those people disadvantaged by nature and forgotten by development.’

Women as the unit of analysis and targeted participants and beneficiaries based on the assumption that the organisation will more effectively impact families, communities, youth and children by working with women.

The delivery of social infrastructure, with particular emphasis on the eradication of mud schools.

Marginalised areas, for instance rural areas and other communities in “shadow areas”

People-centred development, with social facilitation and organisational development as an explicit modality of its development approach.

Programmes that meet the above criteria and which specifically aim to eradicate poverty, underdevelopment and unemployment

Women as the unit of analysis and targeted participants and beneficiaries based on the assumption that the organisation will more effectively impact families, communities, youth and children by working with women.

The delivery of social infrastructure, with particular emphasis on the eradication of mud schools.

Marginalised areas, for instance rural areas and other communities in “shadow areas”

People-centred development, with social facilitation and organisational development as an explicit modality of its development approach.

Programmes that meet the above criteria and which specifically aim to eradicate poverty, underdevelopment and unemployment

Rationale WomenRationale Women

Programmes: IDT will focus on the next 3 years: Page 16Programmes: IDT will focus on the next 3 years: Page 16

Development of social infrastructure to poor and marginalised areas, incl. the design and management of programmes on behalf of government (schools, clinics etc, that lends itself to labour intensive methodologies)

Social facilitation focused on the empowerment of women and their organisations

Institutional delivery capacity building community-based, non-governmental organisations and local government operating in poor and marginalised communities

Supporting local economic development and job creation such as J4G and EPWP

Developing and piloting innovative development solutions targeting and partnering with women

Advocacy: policies, strategies and programmes aimed at eradicating poverty and the advancement of women

Development of social infrastructure to poor and marginalised areas, incl. the design and management of programmes on behalf of government (schools, clinics etc, that lends itself to labour intensive methodologies)

Social facilitation focused on the empowerment of women and their organisations

Institutional delivery capacity building community-based, non-governmental organisations and local government operating in poor and marginalised communities

Supporting local economic development and job creation such as J4G and EPWP

Developing and piloting innovative development solutions targeting and partnering with women

Advocacy: policies, strategies and programmes aimed at eradicating poverty and the advancement of women

HR Management and Organisational Structure: Page 17-22HR Management and Organisational Structure: Page 17-22

Human Capital Management

Staffing

HR Challenges

Structure

Internal organisational transformation

Employment equity

Skills Training Policy & Approach

Performance Management & Approach

Human Capital Management

Staffing

HR Challenges

Structure

Internal organisational transformation

Employment equity

Skills Training Policy & Approach

Performance Management & Approach

Financial Resources & Sources of Income: Page 23-25Financial Resources & Sources of Income: Page 23-25

Enormous challenge: demand for development vs. sufficient funds to maximize impact of our operations

Basic source of revenue: investment fund following R2 billion grant in 1990

Expanding operations + lowering interest rates (income earnings) + conservative investment strategy

Current fund value: R1.3 bn

Financial modeling= fund will be eroded 2010/12

Board decision, supported by Executive Authority, and reported to Portfolio Committee:

IDT= redistributive mechanism

Primary principle that guides decisions: relevance of mandate

Approved deficit budget for 3 successive years

Enormous challenge: demand for development vs. sufficient funds to maximize impact of our operations

Basic source of revenue: investment fund following R2 billion grant in 1990

Expanding operations + lowering interest rates (income earnings) + conservative investment strategy

Current fund value: R1.3 bn

Financial modeling= fund will be eroded 2010/12

Board decision, supported by Executive Authority, and reported to Portfolio Committee:

IDT= redistributive mechanism

Primary principle that guides decisions: relevance of mandate

Approved deficit budget for 3 successive years

Financial Resources & Sources of income: Page 23-25 Financial Resources & Sources of income: Page 23-25

Budget: 2005/06: R143 million of which R23 million was funded from capital base)

2006/07: R 206 million, which included R35 million for ASGISA, and R80 million funded from capital base.

2007/08: R 226 million of which R 96 million will be funded from the capital base.

2007/07 Budget: Pg 35-36

Projections for next two years

Budget: 2005/06: R143 million of which R23 million was funded from capital base)

2006/07: R 206 million, which included R35 million for ASGISA, and R80 million funded from capital base.

2007/08: R 226 million of which R 96 million will be funded from the capital base.

2007/07 Budget: Pg 35-36

Projections for next two years

2007/08 R: million

2008/09 R: million

2009/10 R: million

Investment Income

118,0 107.3 93.0

Cost recovery

11.5 11.5 13.7

Expenditure

226,1 (245.6) (273,3)

Deficit 129,5 (126,8) (166,6)

Capex 6.5 9.7 7.9

Est. Closing Balance

1275,00

1136, 8 956,8

Budget 2007/08Budget 2007/08

Corporate Services Unit 18% 37 256 796Financial Services Unit 05% 12 424 112Office of the CEO 10.5% 23 430 287Development Programme Services 49% 115 893 012

Total IDT 189 024

ASGISA 15% 30 165

Provision Perf. Bonus 2.5% 5175

Total Expenditure Budget 2.5% 226 124 090

Income 129 500 000

Deficit (96 624 090)

4.Regulatory / Statutory

Framework

4.Regulatory / Statutory

Framework

3.Business Model

3.Business Model

1.Inception

1.Inception

2.Rationale

2.Rationale

•Obtain commitment from stakeholders to the strategic process and its terms of reference• Key inputs to the engagement agreed• Individual participants in the engagement confirmed• Workshops planned and agreed

•Obtain commitment from stakeholders to the strategic process and its terms of reference• Key inputs to the engagement agreed• Individual participants in the engagement confirmed• Workshops planned and agreed

• Document review• Meetings/Workshops with Exco & Board• Meetings with DPW, National Treasury and DPSA• Engagement with key stakeholder groups

• Document review• Meetings/Workshops with Exco & Board• Meetings with DPW, National Treasury and DPSA• Engagement with key stakeholder groups

• Meetings / workshops with Exco & Board• Meetings with DPW, National Treasury and DPSA• Engagement with key stakeholder groups• Organizational assessment & design

• Meetings / workshops with Exco & Board• Meetings with DPW, National Treasury and DPSA• Engagement with key stakeholder groups• Organizational assessment & design

5.Business Case

5.Business Case

• Document review• Meetings with DPW, National Treasury and DPSA• Specialist Legal & Regulatory Review

• Document review• Meetings with DPW, National Treasury and DPSA• Specialist Legal & Regulatory Review

• Engagement with National Treasury, DPSA & DPW• Preparation of draft Business Case• Presentation and Review• Final Submission to Minister

• Engagement with National Treasury, DPSA & DPW• Preparation of draft Business Case• Presentation and Review• Final Submission to Minister

Overall approach to Business Case

Key Performance Indicators: Page 26-03Key Performance Indicators: Page 26-03

2008/10 Targets: introduced a Balance Scorecard, a planning approach which will reach maturity in a few years. Significant changes:

Key Result Areas (KRAs), Key Performance areas (KPAs) and Key Performance indicators for each strategic objective

Output and Outcome measures, baselines and targets

Key assumptions:Outcome measurement: not evident after 1-year. Hence will by the end of 2007/08 only have outcomes baselines in place and will deliver on the outputs

Social infrastructure stages

Clients will comply with programme agreements

No major challenges top availability of resources

TARGETS 28-FEB-07.doc

2008/10 Targets: introduced a Balance Scorecard, a planning approach which will reach maturity in a few years. Significant changes:

Key Result Areas (KRAs), Key Performance areas (KPAs) and Key Performance indicators for each strategic objective

Output and Outcome measures, baselines and targets

Key assumptions:Outcome measurement: not evident after 1-year. Hence will by the end of 2007/08 only have outcomes baselines in place and will deliver on the outputs

Social infrastructure stages

Clients will comply with programme agreements

No major challenges top availability of resources

TARGETS 28-FEB-07.doc

Support systems and processes

Support systems and processes

Further sections of the Corporate PlanFurther sections of the Corporate Plan

Implementation: Page 31

Stakeholder Relations Management: Page 31

Supporting Framework: Page 34-36

Risk Management Plan

Fraud Prevention Plan

Financial Plan

Appendices

Environmental Scan: Page 37

IDT Programme Portfolio: Page 44

Detailed Performance Scorecard: Page 49

Shareholder Compact: Page 53

CVs of Board Members: Page 70 (excl. from hard copy)

CVs of Executive Management: Page 81 (excl. from hard copy)

Implementation: Page 31

Stakeholder Relations Management: Page 31

Supporting Framework: Page 34-36

Risk Management Plan

Fraud Prevention Plan

Financial Plan

Appendices

Environmental Scan: Page 37

IDT Programme Portfolio: Page 44

Detailed Performance Scorecard: Page 49

Shareholder Compact: Page 53

CVs of Board Members: Page 70 (excl. from hard copy)

CVs of Executive Management: Page 81 (excl. from hard copy)