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Leading the Public Service to Higher Productivity
Presentation on Operations
Management
26 November 2013
Leading the Public Service to Higher Productivity
PROBLEM STATEMENT
Despite existing enabling legislative environment for continuous service delivery improvement:
▫ Non-existent service delivery models
▫ Poor mapping of services
▫ Deficient standard operating procedures
▫ Deficient unit costing
▫ Outdated Service Charters outlining the standard of
services citizens can expect
▫ Poor measurement & management of productivity
▫ Weak institutionalisation of SDIPs
Leading the Public Service to Higher Productivity
RESPONSE BEHAVIOURAL CHANGE INTERVENTIONS: BATHO PELE
Leading the Public Service to Higher Productivity
WHAT IS OPERATIONS MANAGEMENT
“The activities, decisions and responsibilities of managing the production and delivery of products and
services” In any organisation, both core functions (creating and delivering products and services to customers/citizens in line with their requests/needs/demands); & support functions (finance & accounting; HR) manage PROCESSES: all managers are “OPERATIONS” MANAGERS – they all should strive to give quality services to their (internal/external) stakeholders/citizens and they should do this efficiently and effectively (in context)
Source: Pycroft et al, 2010, Operations Management
Leading the Public Service to Higher Productivity
WORKING DEFINITION
The combination of knowing what services to
deliver; agreeing on how to deliver these services
and developing and implementing the following: ▫ a service delivery model
▫ clearly mapped and coordinated business processes
▫ documented standard operating procedures
▫ unit costing for services
▫ acceptable service standards;
▫ an agreed service charter;
▫ productivity measures and improvements
▫ service delivery improvement plans
Leading the Public Service to Higher Productivity
TOTAL BENEFIT
• Enable departments to
deliver quality services to
the public/internal
stakeholders consistent with
demand (quantity, speed) in
a simplified, flexible,
effective (utilitarian value),
efficient (costing) and
seamless manner.
Leading the Public Service to Higher Productivity
ENABLING LEGISLATIVE FRAMEWORK
• Constitution, 1996: Efficient, economic and effective
use of resources – Chapter 10, 195(1)
• WPTPS, 1995 & WPTSD (BP), 1997: A transformed
Public Service will be judged on its effectiveness in
delivering quality services which meets the basic needs
of all
• Public Service Act & Regulations, 1994
• PAIA, 2000
• PAJA, 2000
• PFMA, 1999: Warns against developing strategic plans
in isolation – linked to SDIPs
Leading the Public Service to Higher Productivity
(Draft) Productivity
Management Framework for
the South African Public
Service
26 November 2013
Leading the Public Service to Higher Productivity
Introduction
• Recent emphasis on Public Service productivity.
“The idea of a highly productive public service is to meet the basic needs of our people as well as contribute towards the development of our economy”.
Deputy President Kgalema Motlanthe at the Government Leadership Summit, 03 April 2013
Leading the Public Service to Higher Productivity
Introduction
“...transform the public service to a high productivity machinery capable of fast tracking the implementation of the NDP and cutting the 17 years of implementation to 10.”
Minister Lindiwe Sisulu, Media Breakfast, CTN Int. Convention Centre, 07 March 2013
Leading the Public Service to Higher Productivity
Introduction
• Traditionally, productivity is defined as ratio between output and input measure of how efficiently and effectively inputs (labour, financial resources and infrastructure) are translated into outputs (goods and services).
• Provide public goods and services to 52 million citizens ( ) with limited inputs ( ).
We simply must deliver more with less!
Leading the Public Service to Higher Productivity
Value a Productivity Management
Framework
• “Value/Importance” is known but a PMF will be useful insofar as it:
Easy to understand; Practical at the operational level; Takes account of the multiplicity of factors
influencing service productivity; Identifies and measures those factors that
can be affected by managerial interventions
Leading the Public Service to Higher Productivity
Definition of Public Service Productivity
• A more comprehensive definition is: The creation of citizen satisfaction through the
generation and application of knowledge and skills to produce products and make services available (and accessible) that meet the quality needs and standards of the citizens and are consistent with social, environmental and economic goals of the citizen.
• Thus:
Public Service Productivity =
Leading the Public Service to Higher Productivity
Multi-factors impacting on productivity
14
PUBLIC SERVICE PRODUCTIVITY
Reliability, Responsiveness,
Assurance
Service
Demand/Need
Citizen
Expectations
Service Quality
Citizen Satisfaction Service Quantity
Employee
Competence and
Capability
Citizen Consultation
Capacity of
Facility/Current
Output Quantity
Working
Environment
Access Norms and
Standards
Resource
Availability
(human and
financial)
Operations Management
Systems & Processes
Leading the Public Service to Higher Productivity
Multi-factors impacting on productivity
• Collation of factors
Sub-factor Description of Factor Dimensions Indicators
Labour Performance (60%)
This is the cost of labour
and whether the outputs
that have been set for
personnel through the
organisational PMDS have
been met in the specified time. Also taking into account
employee wellness (work
environment) and health-risk factors.
Cost of labour Working days of labour force. Personnel performance in
relation to set targets in a set time. Work environment (physical, social and psychological)
Ratio of salary cost to total budget Days absent (sick) Performance aggregate for SMS, MMS, and lower level employees Number of employees that went for counseling and support % score in employee satisfaction survey Ergonomics (calculation of space
utilisation: ratio of employee numbers to office space)
Leading the Public Service to Higher Productivity
Multi-factors impacting on productivity
Sub-factor Description of Factor Dimensions Indicators
Operational Performance (20%)
Operating process and
systems impacts on service
delivery optimisation
congruent with citizen
demand, expectations and satisfaction.
Specification of mandated services. Optimisation of service delivery
through critical path analysis and
knowledge of service costs,
standards, access norms and
standards, and service delivery improvement plans.
% score in implementation of
service access norms and standards (ANS) % score in implementing
Operations Management Framework
Citizen
Participation Performance (20%)
Indicating citizens
perceptions of service quality
Citizen feedback on service delivery implementation Implementation of Batho Pele principles
% score in citizen feedback on service delivery performance % score in citizen feedback on
implementation of Batho Pele principles
Leading the Public Service to Higher Productivity
17
Matrix Approach: Assessment Table...
Measure/Indicator 1 2 3 4
Sub-Factor Weight Micro-factor Highest Lowest
Labour
Performance
(60%)
10% Ratio of salary cost to total annual budget
10% Days absent (sick)
10% Performance aggregate for SMS, MMS, and lower level employees
10% Number of employees on counseling and support
10% % employee satisfaction from surveys
10% Ergonomics (ratio of employee numbers to office space)
Leading the Public Service to Higher Productivity
18
Matrix Approach: Assessment Table....
Measure/Indicator 1 2 3 4
Sub-Factor Weight Micro-factor Highest Lowest
Operational Performance (20%)
10% % score in implementation of
service access norms and standards (ANS)
10% % score in implementing
Operations Management Framework
Measure/Indicator 1 2 3 4
Sub-Factor Weight Micro-factor Highest Lowest
Citizen Participation Performance (20%)
10% % score in citizen feedback on service delivery performance
10% % score in citizen feedback on
implementation of Batho Pele principles
Leading the Public Service to Higher Productivity
19
Matrix Approach
• Step 1: Determine the weight for each sub- factor
Sub-factor Weighting
Labour 60%
Operational 20%
Citizen Participation 20%
Total 100%
Leading the Public Service to Higher Productivity
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Matrix Approach
• Step 2: Determine the scores for each productivity micro factor:
Since both the weighting and number of levels for each micro-factor may vary, scores for
each indicator should be determined as follows:
Individual Indicator =
Determining Scores for Micro-factors (Indicators): For ease of measurement, a total score of 1 000 points is used.
Sub-factor
Weighting
Total Score
For Each Indicator
Level
Achieved
Score for
Each Productivity Level
Labour Performance (60%) (600) Ratio of salary cost to total budget 10% 100 1 100
Days absent 10% 100 1 100
Performance aggregate for SMS, MMS, and lower level employees 10% 100 1 100
Number of employees on counselling and support 10% 100 1 100
Employee satisfaction survey scores 10% 100 1 1000
Ergonomics (ratio of employee numbers to office space) 10% 100 1 1000
Leading the Public Service to Higher Productivity
21
Operational Performance (20%) (200)
% score in implementation of service access
norms and standards (ANS)
10% 100 1 100
% score in implementing Operations
Management Framework
10% 100 3 34
Citizen Participation Performance (20%) (200)
% score in citizen feedback on service delivery
performance
10% 100 1 100
% score in citizen feedback on implementation of
Batho Pele principles
10% 100 1 100
Total 100% 1 000* 934
Leading the Public Service to Higher Productivity
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Matrix Approach
• Step 3: Determine the range of scores for the total productivity level achieved:
LEVEL OF PRODUCTIVITY RANGE OF SCORES %
High Productivity 800 to 1 000 81-100%
Medium Productivity 700 to 799 70-80%
Average Productivity 500 to 699 50-70%
Low Productivity 349 to 499 35-49%
Unproductive
0 to 348 0-34%
Leading the Public Service to Higher Productivity
Matrix Approach
• Assumptions: Matrix Approach
Assumptions If false, recommendation
The environment, operational systems and processes
are in place that enable and support officials to optimise
the use of resources (inputs) at their disposal.
The creation of a
conducive environment
including measures to fill
vacancies, improve
infrastructure quality, and
the implementation of set
norms and standards for
operational efficiency and
effectiveness.
Productivity can be improved by better management
(better allocation of resources).
The emphasis is largely on people (officials and
citizens).