Kdm Case Study on Hr Turnaround Plan

8/12/2019 Kdm Case Study on Hr Turnaround Plan

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ED CORPORATE SERVICES: MR. S.W. KUBHEKA

PRESENTATION NATIONAL HRM CONFERENCE:

GALLAGHER CONVENTION CENTRE 05-06/03/2013


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CONTENT

1. KwaDukuza at a glance

2. Problem statement

3. Baseline report

4. Employee satisfaction survey and findings

5. Recommendations

6. Rationale for developing and implementing the

following HR policies:

Employee Retention Strategy Succession Planning Policy

Career Management Programme

7. Activities involved and progress

8. Outputs and outcomes


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KwaDukuza is a city in the making, a municipality with one of thefastest growing economies in South Africa.

Situated along eThekwini-iLembe-uMhlathuze Corridor and less than

50km away from the King Shaka International Airport.

Rich cultural heritage

The name KwaDukuza epitomizes the historical background of the

area being the original site of King Shakas royal isigodlo and

gravesite.

The municipality is also the home of iNkosi Albert Luthuli, the 8th

President of the ANC and became Africasfirst Nobel Prize Laureate.

Highly diverse multi-racial population dynamics with a distinct

eastern flavour linked to the earlier settlement of Indian families who

worked on the sugar cane farms of the big sugar barons such as Sir

Liege Hullet.

Strategically located between two big ports of Durban and Richards

Bay, and off late the Dube Trade Port, with added advantage of

investment opportunities


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The North Coast (Dolphin Coast) is the upmarket tourism playground

for the wealthy domestic and international tourists.

Pristine beaches and a relatively unspoilt natural environment which

include Ballito, Zimbali, Salt Rock, ShakasRock and PrincesGrant.

The Ballito area, with its extensive housing and industrial

development is currently one of the fastest growing real estate

regions along the South African coast.

The growth has placed the municipality on the right developmental

path

However, it has become increasingly difficult for it to provide

funding and other resources to develop the required infrastructure to

adequately exploit the opportunities and match the rapid growth. Also experiences limited bulk electricity supply that negatively

affects industrial development but plans are underway to build power

stations and strengthen networks.


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Buoyed by exponential growth, the municipality adopted the following

vision:

By 2030, KwaDukuza shall be a vibrant ci ty com pet ing in

the global vi l lage econom ical ly, social ly, po l i t ically and

in a sus tainable manner.

The IDP translates the vision into three phased periods, whereby

during the period between 2011 and 2019, the municipality will attain

the city status

During the last two periods the focus will be on consolidating and

entrenching the city.


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Identified pillars of municipal growth are infrastructure and

economic development

This type of vision can be translated into reality by an ambitious

leadership and committed human resources which will go beyond

the normal developmental mandate, but aim for a highperformance world class city.

But the HR department was identified as not operating at the

required strategic level to be able to cultivate requisite humancapital which could deliver the vision


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In the late 2010, the municipality identified the following shortcomings

within HR:

Management capacity within the HR department identified by the municipalityas a weakness towards attainment of the municipal vision

Increasing levels of attritionamong employees, and in the main losing people

with critical and scarce skills which are not easy to replace

HR department not providing reasons behind high levels of employee

turnover as employee satisfaction survey has never been conducted

Relationship between the unions and the HR department at an all time low

leading to delays in approving HR policies

Disputes on labour issues not being resolved speedily leading to frustrated

employees

HR department only concerned with transactional matters at the expense of

strategic HR issues No sense of direction.


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The municipality partnered with GIZ in developing a turnaround

plan.

The first assignment was to conduct a mini-employee satisfaction

survey and a baseline study to obtain different views on HR

functioning in the municipality

This resulted in a baseline report with recommendations as phase

1 of the support to KwaDukuza


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The municipality partnered with GIZ in developing a turnaround

plan.

The first assignment was to conduct a mini-employee satisfaction

survey and a baseline study to obtain different views on HR

functioning in the municipality

This resulted in a baseline report with recommendations as phase

1 of the support to KwaDukuza


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The survey results were captured in a baseline reportand hereinafter are some of the critical findings:

No HR Strategy to back the realisation of the

envisioned future city

The HR department does not a play strategic role

and has no partnership with other departments

The environment under which HR employees works

and positioning of the HR office displays a lack of

realisation of the strategic importance of the HR

department

HR policies outdated & not reflecting the ideals of a

transforming institution.

No strategies aimed at employee advancement such

as the career management strategy, employee

retention strategy, succession plan.


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No proper performance management system

Employee well being not prioritised such that no EAP

The relationship between the HR department and the Unions is very

confrontational.

Lack of concern on how existing and prospective employees

perceive the municipality, thus employee satisfaction surveys not

conducted and employee turnover not managed.

No employment equity plan against which applicants at different

occupational levels were appointed.

Absence of a collective management leadership style

Training is not co-ordinated and has no strategic link to the broader

vision of the municipality. Lack of capacity and essential resources within the HR department.


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RECOMMENDATIONS

1. The KDM to develop an HR strategy.

2. Review organisational structure to accommodate a new HR structure

3. Transform HR department to prepare it to serve internal customers strategically

and effectively.

4. Employ competent HR practitioners, starting with the appointment of a Deputy

Director: HR who will serve strategic HR purpose5. Capacity building of senior managers and supervisors to understand their roles

and responsibilities in managing employees reporting to them. This to alleviate

burden on HR employees so that they can focus on strategic issues

6. Embark on processes of evolving into a city status and learn from other

municipalities.


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8. Capacity building of HR staff a priority

9. Review existing HR policies and adopt new policies and strategies

which seek to attract competent staff, retain and develop their careers

and cultivate their talent

10. Conduct annual employee satisfaction surveys to constantly check on

the levels of employeessatisfaction & commitment

11. Review the municipalitys internal business processes and introduceuniform standard operating procedures (SOPs) for operational

efficiency

12. Engage in a benchmarking exercise in another municipality which has

gone through the same


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KDM GENERIC TURNAROUND STRATEGIC PLAN (CS)

In October 2011, KDM through Corporate Services directorate developed and adopted a

TEN YEAR PLAN which consists of SIX strategic thrusts namely:

1. Formulation and implementation of the HR development strategy framework

2. Develop and implement priority skills strategy

3. Develop and roll out integrated ICT governance framework

4. Reinforce stakeholder communication and participation fora.

5. Streamline administration as well as legal services

6. Enhance institutional productivity through developing a renewed cadre of local public

service

Flowing from this generic CS/HR plan the KDM, through partnership with GIZ then

zoomed into three critical HRD policy tools, namely: Employee retention strategy,

succession planning and career management.


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4. RATIONALE & OBJECTIVES FOR

DEVELOPING & IMPLEMENTING THE

FOLLOWING HR POLICIES:

a) Employee Retention Strategy

b) Succession Planning Policyc) Career Management Programme


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INTERVENTIONS

Through the support provided by GIZ, the municipality was

able to develop and adopt the following 3 HR policies as adirect intervention to address challenges identified in the

baseline report:

Employee Retention Strategy Succession Planning Policy

Career Management Programme


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EMPLOYEE RETENTION STRATEGY

The Strategy proposes ten interventions to address employee attrition and achieve above

objectives, as well as evolving into a world class organisation and subsequently attaining a

vibrant city status

The ten retention enabling interventions are:

Employer branding and making KwaDukuza municipality an employer of choice

Changing the organisational culture

Creating a conducive work environment for employees to flourish and be committed to the

municipality

Provide a sense of direction and clear purpose for employees

Communication

Structured employee training and development linked to career management

Prioritise succession planning, especially for critical positions

Performance management and employee recognition

Promotion and transfer opportunities

Clarity of roles and responsibilities and delegation of authority


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SUCCESSION PLANNING POLICY

The rationale and objectives of the succession planning policy is to: -

Ensure business continuity and preservation of institutional memory in the event of unplanned

departure of key employees occupying critical positions;

Ensure that employees are prepared and trained for the roles and responsibilities of the future

by developing talent;

Provide career growth opportunities that help to motivate and retain current employees;

Enable staff to become suitable candidates for future roles as the organization evolves;

Enable staff to develop so that they can be the bestpossible candidate that they can bewhen

an opportunity arises for recruitment

Create an ongoing supply of well trained, broadly experienced, and well motivated employees

who are ready to step into key positions as and when required;

Define employee career paths, which will help the municipality to develop and retain a pool of

suitably qualified employees;

Make the best use of internal staffing resources and talent by growingour own


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CAREER MANAGEMENT PROGRAMME

The primary aim of adopting and implementing the career

management programme is to meet the objectives of the

municipalitys Employee Retention Strategy and the SuccessionPlanning Policy, which are to ensure that there is a talent flow to

create and maintain the required talent pool.

The objectives of the career management programme are:

To provide guidance and a structured support framework to plan employee careers andfulfill their potential;

To assist employees to achieve successful careers with the municipality in tune with

their talents and ambitions; and

To provide those with potential with a promise of sequence of experience and learning

activities that will equip them for whatever level of responsibility they have the ability

to reach.


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Phase 2 of the KwaDukuza project involved piloting the implementation of the

succession planning policy and the career management programme using a sample

of employees. These are the activities of the pilot:

A 6-month pilot implementation plan was adopted by GIZ and the MANCO whereby the

Deputy Director: HR was appointed the champion to drive the project

Duration of the plan is 6 months, resumed in June and ends in December 2012 whereby it

is envisaged that the Deputy Director: HR would have acquired the necessary skills to

continue with the implementation of the strategic HR policies

First activity involved conducting workshops over 5-days to refresh employees on the

new HR policies on employee retention, succession planning and career management

The workshops were also aimed and informing employees and unions that the HR

policies will be piloted using sample employees.


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2012 ACTIVITIES ON PILOT IMPLEMENTATION OF THE SUCCESSIONPLANNING POLICY

Initiation of the succession planning pilot resumed in July 2012.

The activities carried out during the initiation stages include: Assisting MANCO to identify key and critical positions in each department and 33

positions were identified

Placing them into 3 categories, namely:

Position A:positions that have a critical and strategic influence on the execution

of the municipalitys strategy (IDP) Position B: positions that are significant for the achievement of strategy

execution but are not strategic in nature. Rather they are supportive roles

Position C:positions that are at lower levels but are specialist in nature

Supporting the Deputy Director: HR and immediate supervisors in conducting

competence self-assessments of current skills, competencies and qualifications of

people occupying these positions and these were verified by immediate supervisors


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Employees were requested to complete competence forms, verify info

supervisor, return completed form and a signed career plan to the

Director

Of the 33 critical positions identified for the succession planning pilot

25 employees attended the competence assessment sessions, 15

completed assessment forms and only 6 returned signed career plans

Career plans had to be signed alongside the employees personal

plans

The rest of the employees either could not complete their own career

needed assistance in completing their career plans but failed to

requests for assistance to the Deputy Director.

All Career Plans & PDPs are in the custody of the municipalitys Skills

Development Officer


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2012 ACTIVITIES ON PILOT IMPLEMENTATION OF THE CAREERMANAGEMENT PROGRAMME

Initiation of the career management pilot resumed in August 2012.

The activities carried out during the initiation stages include:

Inviting senior managers to select 2 candidates in each department to

partake in the career management programme

The invitation attracted responses from the Finance Department whose

two candidates are currently the only participants in the career

management pilot project

The two candidates engaged in the self-assessment of their competence

by completing the competence forms and reflecting on the contents with

their supervisors

Both candidates completed and signed career plans accompanied bypersonal development plans


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PROGRESS

The participants are currently engaged in on-the-job training activities

and are being monitored by their immediate supervisors

The Skills Development Officer will assist those participants who

have indicated a desire to enrol for tertiary studies during the year

2013 in placing their applications for study bursaries from the

municipality

On going monitoring of the implementation of the individual careerplans

Some managers have attended the Leadership Enhancement

Programme offered by GIZ which will enhance their overall

management capabilities, including managing staff


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OUTPUTS

The following outputs have been achieved so far:

KwaDukuza municipality has adopted a retention strategy and has

begun to implement some of the strategic interventions aimed atattracting and retaining employees

The municipality has also heeded the call by employees to support

employee career development and advancement by adopting a career

management programme and a bursary policy

68 employees were capacitated on the three HR policies and are now

well aware of the strategic direction which the HR department is

taking and now have a choice to advance their careers

A database of critical and scarce positions has been created.


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OUTPUTS (CONT.)The following outputs have been achieved so far:

Thirty three employees have been placed in the talent pool of critical positions

and will have their skills honed to prepare them, not only for succession

purposes, but also to be at the forefront of championing the Vision 2030 of

attaining city status

Clear career and personal development plans, performance plans and regular

assessment will inform the growth path of the employees in the talent pool

Six other employees now have structured career plans and personaldevelopment plans

Strategic investment in skills development focussed on professionalising

careers in municipalities.

The municipality has adopted a bursary policy to support the implementation of

the Succession Planning Policy and the Career Management Programme Some employees drawn from the pilot project have registered for the

qualifications in their career plans this year and have been awarded the

municipal bursaries

ENVISAGED OUTCOMES


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ENVISAGED OUTCOMESIt is envisaged that by the end of the pilot project, the following outcomes will be

achieved in the medium to long term periods:

The Management Committee will have gained knowledge and understanding of how to

carry out the critical steps in the succession planning and the career management

processes.

By December 2012, the HR Deputy Director will have acquired knowledge and skills on

how to identify critical skills, assess competence and establish a talent pool. He will

have knowledge to manage the talent pool by ensuring that it is regularly updated.

The HR Deputy Director will have acquired adequate knowledge and skills to carry out

HR strategic functions in support of succession planning and employee careerdevelopment. This will assist him to advise and write reports for the ED: Corporate

Services which will be of a strategic nature, rather than of a transactional nature only,

and manage the training budget

Six employees have acquired skills to develop their own career plans and personal

development plans. These employees will also have knowledge to monitor and assess

their career progression, thus enabling them to build their growth paths and opening awindow of opportunity for progression towards other levels within or outside their

departments or municipality.

ENVISAGED OUTCOMES (CONT )


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ENVISAGED OUTCOMES (CONT.)It is envisaged that by the end of the pilot project and over a medium to long term

period, the following outcomes will be achieved:

The Skills Development Facilitator will gain an understanding and ability to attach

tangible results and impact the municipalitysWorkplace Skills Development Plan(WSDP) is making in the overall organisational development programme.

The municipalitys training budget will be channelled and invested in structured

training which will yield tangible results and benefits for the employer

Overall HR Department standing within the organisation will begin to acquire a

strategic character.

MANCO will gain appreciation of the relevance and strategic positioning of the

HR department as the custodian of the most important asset of the municipality,

i.e. the employees of the municipality.

MANCO will have a tool to evaluate the value add of investing in human resource

development.

Overall impact will be a reduction of the employee turnover, rise in employeesatisfaction levels and commitment to the organisation, as well as increased

productivity levels among employees who have participated in the pilot


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CONCLUSION

The success of any HR Turnaround Plan in any municipal

organization requires the following processes,

mechanisms and systems to be in place:

1. Regularly conduct the employee satisfaction survey and

factor in funding into annual budgetary programmes.

2. Develop and review clear HRD strategy in line with the

NDP and PGDS.

3. Develop and review medium to long term strategic plan

for CS/HR through which the generic staff related

strategic issues/challenges are reflected and executed

over a given time.


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CONCLUSION (Cont..)

4. Reconfigure and capacitate the HR unit as per the critical policy thrustsviz: succession planning, career management and employee retention.

5. Rebrand the municipality as the employer of unlimited

capabilities/choice

6. Develop the standard operating procedure (SOP) on the collective

managerial leadership, staff communication and management/staffparticipation for a.

7. Introduce the democratic employee recognition system with emphasis on

the teams/units/sections than individuals.

8. Reinforce and capacitate the HRD subcommittees to drive critical staff

empowerment programmes

9. Develop and implement the HR benchmarking process plan.

WORKING TOGETHER BUILDING A RENEWED LOCAL

PUBLIC SERVICE CADRE/SERVANT TO DELIVER ON SOCIO-

ECONOMIC AGENDA


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Kdm Case Study on Hr Turnaround Plan

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