Business Process Re-engineering
Committee – Feedback Presentation
Minister of Environment and Water Affairs
Mrs BEE Molewa
16 th April 2013
Parliament
Cape 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
BPRC Briefing Analysis
Terms of
Reference
BPRC
Inception
Report
WS 1
WS 2
WS 3
WS 4
WS 5
WS 6
WS 7
WS 8
WS 9
WS 10
BPRC Project Delivery
BPRC
Briefings
BPRC Project Identification
Workstream
Formation &
Organisation
BPRC
Consolidated
Report
November 2012
BPRC Final
47
Deliverables
Deliverables =
Reports,
Implementable
Outputs and
Position
Papers
2
DWA Top 12 Implemented Outputs - Nov’11 to June’12
BPRC Reports &
Implementable Outputs
Key Implemented Outputs:
1. Water Policy Framework & Legislation (GLA Bill) and
Tribunal
2. NWRS 2 Published for Comment
3. Strategic Planning and APP Refinement
Total
Implementable
outputs
= 26
4. Structure Reorganization Functional Design
5. Culture Assessment and Implementation Plan
Total
Reports
= 46
0%
6. SMS Selection & Placement
7. Audit Findings Reductions & Remedial Action plans
35% Reports
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
3
Key Challenges Addressed by the BPRC
Out 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
4
The BPRC worked from the inside out
People,
Processes and
Technology
Organisation
Structure
The BPRC Interventions
indicated a rational
logic from:
•
(Water Affairs & Sector
Institutions
Strategic Plan
& APP
water policy,
(Water Affairs &
Sector Institutions)
through to
Water
Legislation
• people, processes
and technology
Water
Policy
The BPRC through selected interventions has initiated a
turnaround trajectory for Water Affairs over 5 years
5
The key principles for DWA’s organisational
effectiveness
It 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
Clear
mandate
Appropriate
structure
Effective
systems and
processes
Appropriate
Resources
Supportive &
enabling
environment
6
Areas of the BPRC’s focus in addressing the principles
Key Principles for
organisational effectiveness
Themes / Areas of BPRC Focus
Clear
mandate
Policy, Mandate, Legislation and Strategy
Appropriate structure
Internal Structure, structure and functions
of DWA entities
Effective systems and
processes
Infrastructure management, IT, HR and
water use licencing systems
Appropriate Resources
Human Resources and Financial Resources
Supportive & enabling
environment
Culture, change management, stakeholder
relations and communications
7
Developing and improving water democracy:
1. Finalisation of the National Water Resources Strategy-2
Specific 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
8
Developing and improving water democracy:
2. DWA’s mandate needs to change
Specific 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 / Chair
9
Developing and improving water democracy:
3. Policy framework & principles for water democracy design
DWA’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
10
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
11
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
12
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
13
Areas of the BPRC’s focus in addressing the principles
Key Principles for
organisational effectiveness
Themes / Areas of BPRC Focus
Clear
mandate
Policy, Mandate, Legislation and Strategy
Appropriate structure
Internal Structure, structure and functions
of DWA entities
Effective systems and
processes
Infrastructure management, IT, HR and
water use licencing systems
Appropriate Resources
Human Resources and Financial Resources
Supportive & enabling
environment
Culture, change management, stakeholder
relations and communications
14
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 delivery
15
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
16
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
17
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.
DWA Branch Structure Changes
Organisation
Transition Activities
Intra DWA Branch Operating
Model Changes
DWA Responsibility
Changes
Inter Water
Institutional
Changes
18
Areas of the BPRC’s focus in addressing the principles
Key Principles for
organisational effectiveness
Themes / Areas of BPRC Focus
Clear
mandate
Policy, Mandate, Legislation and Strategy
Appropriate structure
Internal Structure, structure and functions
of DWA entities
Effective systems and
processes
Infrastructure management, IT, HR and
water use licencing systems
Appropriate Resources
Human Resources and Financial Resources
Supportive & enabling
environment
Culture, change management, stakeholder
relations and communications
19
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
20
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
21
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
22
ICT - outsourced contract & improvements:
Other ICT interventions undertaken by the BPRC
BPRC 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
23
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 delivery
The BPRC re-engineering interventions need to be rolled out across
DWA’s to ensure sustainable performance improvements in all
strategic processes
24
Areas of the BPRC’s focus in addressing the principles
Key Principles for
organisational effectiveness
Themes / Areas of BPRC Focus
Clear
mandate
Policy, Mandate, Legislation and Strategy
Appropriate structure
Internal Structure, structure and functions
of DWA entities
Effective systems and
processes
Infrastructure management, IT, HR and
water use licencing systems
Appropriate Resources
Human Resources and Financial Resources
Supportive & enabling
environment
Culture, change management, stakeholder
relations and communications
25
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
26
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 / Abel
27
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 Rachel
28
Areas of the BPRC’s focus in addressing the principles
Key Principles for
organisational effectiveness
Themes / Areas of BPRC Focus
Clear
mandate
Policy, Mandate, Legislation and Strategy
Appropriate structure
Internal Structure, structure and functions
of DWA entities
Effective systems and
processes
Infrastructure management, IT, HR and
water use licencing systems
Appropriate Resources
Human Resources and Financial Resources
Supportive & enabling
environment
Culture, change management, stakeholder
relations and communications
29
HR Management - functions & operations:
BPRC’s other interventions to improve HR management
24. 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
30
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
31
Communicating effectively around water:
Other BPRC Interventions to improve communication
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
32
Water Affairs Turnaround initiated by BPRC through the presented
interventions which amount to 5 TURNAROUND IMPERATIVES
1. Strategy to Direct and Drive Performance
Objectives
Annual
Report
Measures
Key
Performance
Indicators
Outcomes
/ Targets
Development
AG
Audit
Report
DWA
Business
Model
Strategy
DWA & Sector Strategy
Activities and
Outputs
Business
process reengineering
Implementation
4. Finance to deliver
Monitoring & Evaluation
2. Structure
to Execute
.
.
.
DWA and Sector Institutions
Strategic Performance Review
Govern
Subcommittees
Measuring
Performance
Maturity
Model &
Strategic
Horse Power
0% -130%
DDG’s
Subcommittee 3
Strategically Linked
Organisational
Performance Reporting
3. Skills to
perform
Employee
Rewards &
Incentives
6. ICT to enable
33
.
Functional Org &
Institutional
Structure
Manage
Minister
DG
.
Performance
Contracting
Job Profiles
Effective
Recruitment
Training &
Skills
Development
Strategically
Linked
Employee
Performance
Improvement
Culture
change
management
To realise the Water Affairs Turnaround over the next 5 years the 5 imperatives must all be in place and functioning effectively
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
34
BPR Interventions – Turning the Ship Around
RISK
Project
Information
Business
Processes
People
Skills
Security
and Privacy
Culture
& Change
Processes
Design
Organisational
Structures