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APPROACH FOR DEVELOPMENT OF

STRATEGIC AND ANNUAL PERFORMANCE PLANS

PRESENTATION OVERVIEW

• Treasury guidelines• Planning Framework• DEA planning process• Development of indicators• Setting targets• DEA strategic Overview

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TREASURY GUIDELINES

Legal requirements and guidelines for Strategic Plan and Annual Performance Plan (APP):

• Chapter 5 and 30 of the Treasury Regulations and Part 3B of the Public Service Regulations set out the legal requirements for Strategic Plans and APP

Strategic Plan-:

• Cover a period of at least 5 years (only reflect 5 year targets)

• Changes limited to revisions related to significant policy shifts or changes in the service- delivery environment

• Linked to Medium Term Strategic Framework, Performance Agreements between the President and Ministers and Delivery Agreements– NB- Foundation for the development of APP

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STRATEGIC PLANNING PROCESS

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Defining Vision and Mission – where one defines the desired state based on social and economic ideal and legislative and policy mandates. Conducting Situational Analysis – where one assesses current service delivery challenges, state of the institution, governing policies and strategies, problems that needs to be addressed, risk and assumptions analysis, also provides baseline data for the development of a performance monitoring measures Formulation – strategic goals and objective, results desired Development of performance measures (targets and indicators) Allocating Resources (budget and people) Implementation programme or operational plan & individual performance plans – activities, processes

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Mandate or Broad Focus Areas

COMPONENTS OF PLANNING FRAMEWORK

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FRAMEWORK: ILLUSTRATION

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Focus Area: An environment that is not harmful to the wellbeing of citizens

ALIGNMENT WITH REQUIREMENTS

• Cover a period of at least 5 years (only reflect 5 year targets)• Changes limited to revisions related to significant policy shifts or

changes in the service- delivery environment• Alignment with Medium Term Strategic Framework (MTSF),

Performance Agreements between the President and Ministers (Delivery Agreements) and other relevant long term Government plans (Millennium Development Goals, National Development Plan etc.)– NB- Foundation for the development of Annual Performance

Plan

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STRATEGICOBJECTIVE

OBJECTIVE STATEMENT

BASELINE PERFORMANCE INDICATOR

TARGET 2016/17

STRATEGIC GOAL: Environmental assets conserved ,valued , sustainably used, protected and continually enhanced

KEY COMPONENTS OF A STRATEGIC PLAN AND APP

• Strategic Goals

Strategic outcomes oriented goals identify areas on performance that are critical to achieve our vision /mission. The goals must focus on impact and outcomes .They must challenge the Department/Entity, yet be realistic and achievable.

• Strategic Objectives

Strategic objectives are very clear statements of what the Department will do to achieve the defined strategic goals. Each strategic objective must directly or indirectly contribute towards achieving one/or more of the Goals.

it should be worded as an “outcome/output statement” • Performance Indicators

A performance indicator is what will be used as measure of performance. An indicator is linked to a strategic objective.

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DEFINING STRATEGIC OBJECTIVES

• In developing objectives we respond to these questions:

– What does our Mandate cover? To deliver on our mandate what ultimate objectives must we accomplish- the outputs that will lead to attainment of goals?

– Who are our stakeholder? What objectives must we accomplish in order to meet the needs of our stakeholders

– What should we focus on to ensure that we have capacity to deliver on our mandate

– How can we ensure better utilisation of our limited resources

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INDICATOR DEVELOPMENT PROCESS

Define Departmental Goals (Impact)

Define Objectives (outcomes/

Outputs)

Select the most suitable Indicator

Inventory & Brainstorm Performance Indicator

Assess Indicator against criteria

• Ensure agreement to objective statements at Leadership level

• A statement of how your branch will contribute towards achievement of the Departmental Objective

• Collect existing indicators to avoid “re-inventing the wheel”

–Treasury Reports

–Annual Reports

–Quarterly Reports

• Brainstorm new indicators if necessary

• What is critical for attainment of the objective

• Rate / rank KPI against criteria:

–Clarity / Simplicity

–Availability–Communication value

–Cost/benefit value

• Create a “short-list” of the best indicators for each Objective

• Select the best measure that will drive desired behaviour

• Identify data sources for measures

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PURPOSE OF PERFORMANCE INDICATORS

Organisational motivation and monitoring of performance :– Indicators function as tools to drive desired behavior.– Give individuals direction in terms of what they need to

accomplish. There can be multiple contributors to one indicator and therefore roles and responsibilities need to be clarified

– People respond to what’s inspected, not what’s expected.– To test the organisational progress in achieving strategic

objectives. If more than one indicator is applicable, use the one that best communicates the meaning of the Objective

– Indicators are a basis for target setting

CRITERIA FOR SELECTING INDICATORS

– Strategic Communication• What are we committing to and is it something within

our mandate– Repeatable and Reliable

• indicators are used to assess trends – Frequency of Update

• How often can we update the indicator• Do we need interim indicators

– Unit of KPI• Can take many forms e.g. percentage, absolute

number, ranking, rating etc

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Purpose

• Assess/evaluate the performance results at the end of a time period or activity

Examples

• “Reduction in metros and district municipalities with air quality that does not meet ambient air quality standards”

Strengths

• Usually objective and easily captured

Issues

• Lag measures reflect success of past, not current, activities and decisions

Lag (Outcome) KPI Lead (Driver) KPI

Purpose

• Measure intermediate processes, activities, and behaviors

Examples

• “Increase in Number of air quality monitoring stations”

Strengths

• More predictive in nature

• Allows organizations to adjust behaviors for performance

Issues

• Based on hypotheses of strategic “cause and effect”

TYPES OF INDICATORS

Objectives/KPAImprove Air and atmospheric

Quality

At least one outcome (lag) Indicator for each Objective13

TARGET SETTING• Baseline

Before we commit to a achieve a certain target (i.e. annual target) ,we must have a clear understanding of the current state. A baseline is the current performance status in relation to a particular indicator. This could be a level of performance which was recorded in the year/quarter prior to the planning period. In some instances research still need to be conducted to establish baseline

• Target (Medium term /Annual / Quarterly) Linked to each strategic objective & performance indicator , there must be a target. There will be target for the medium term, which is broken down into annual targets . An annual target is broken down into quarterly targets (except if it is not appropriate ). Quarterly target are used during the year to monitor performance and progress towards the annual target.

• Evidence / Means of Verification Performance Information must be supported by evidence/proof. During the Annual Performance planning process ,means of verification should be identified for each annual target/ quarterly targets

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CRITERIA FOR SETTING TARGETSThe following must be considered in setting targets:•It must respond directly to the indicator•What is the desired outcome versus current baseline taking into account the following

– Government priorities (outcome deliverables, Millennium Development Goals, National Development plan etc.)

– Sector targets– Compliance matters and International obligations(standards/timeframe set in

policies/regulations)

•Resource availability (funds and personnel)– What would be the ideal delivery mechanism (rationale for review of functions, addition

of posts or outsourcing)

• Lessons learned in previous years (challenges in environment, past experiences, outcomes of stakeholder consultations, other dynamics in service environment)

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Annual Performance Plan Template

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Strategic Objective

Performance indicator

Baseline Annual Target

Quarter target(Q1-Q4)

Enabling Conditions/ResourcesConsiderations

Evidence

Performance Indicator

Audited/Actual Performance

Estimated Performance2013/14

Medium-term targets

2010/11 2011/12 2012/13 2014/15 2015/16 2026/17

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THANK YOU