NKANGALA
District Municipality
Dr JS Moroka
Thembisile
Emakhazeni
Steve Tshwete
Emalahleni
Victor Khanye
NDM mSCOA –ICF
22 June 2015
AL Stander
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
PRESENTATION OUTLINE
(video and graphic sourced from unknown sources on the internet)
•
•
•
•
•
•
•
•
•
•
•
•
Why SCOA?
How do your get there???
Change management in a minute
DR Kotter: 8-steps for leading change
Lessons learnt - PEOPLE mSCOA ROCKS
Implementation Plan
Expected areas of risk
Unexpected areas of risk
Challenges
Segment specific challenges
Advise to non-pilot municipalities
Decide for yourself
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Why SCOA???
• Wonderful Math Calculation!.mp4
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
mSCOA
OLD CHART
HOW DO YOU GET THERE????
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Dr. Kotter: 8-Step Process for
Leading Change
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Dr. Kotter: 8-Step Process for
Leading Change
Dr. Kotter has proven over many years of research that
following “The 8-Step Process for Leading Change” will
help organizations succeed in an ever-changing world:
1: Establishing a Sense of Urgency
Help others see the need for change and they will be
convinced of the importance of acting immediately.
2: Creating the Guiding Coalition
Assemble a group with enough power to lead the change
effort, and encourage the group to work as a team.
3: Developing a Change Vision
Create a vision to help direct the change effort, and
develop strategies
for achieving that vision.
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Dr. Kotter: 8-Step Process for
Leading Change
4: Communicating the Vision for Buy-in
Make sure as many as possible understand and accept the
vision and the strategy.
5: Empowering Broad-based Action
Remove obstacles to change, change systems or
structures that seriously undermine the vision, and
encourage risk-taking and non-traditional ideas, activities,
and actions.
6: Generating Short-term Wins
Plan for achievements that can easily be made visible,
follow-through with those achievements and recognize and
reward employees who were involved.
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Dr. Kotter: 8-Step Process for
Leading Change
7: Never Letting Up
Use increased credibility to change systems, structures,
and policies that don’t fit the vision, also hire, promote, and
develop employees who can implement the vision, and
finally reinvigorate the process with new projects, themes,
and change agents.
8: Incorporating Changes into the Culture
Articulate the connections between the new behaviors and
organizational success, and develop the means to ensure
leadership development and succession.
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Dr. Kotter: 8-Step Process for
Leading Change
Summing-up: We have to work hard to change an
organization successfully. If we’re too impatient, and if we
expect too many results too soon, our plans for change are
more likely to fail. When we plan carefully and build the
proper foundation, implementing change can be much
easier, and we’ll improve the chances of success.
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
LESSONS LEARNT:
PEOPLE mSCOA ROCKS
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
PEOPLE
• LG serves the people of SA and this project
should assist us in doing that better.
• People can make or break such a project
• Buy-in from top levels (Executive Mayor and
MM)
• Involvement of a cross-functional team.
• The mSCOA Champions must be committed,
dedicated and performance driven people
• Don’t think that all people experience change
the same
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
PEOPLE
The mSCOA piloting has brought about
change in municipal processes, systems,
organizational structure and job roles. This
change has been an unsettling issue
amongst departments and employees at all
levels.
Communication
is key!!!!!
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
mSCOA
• M- Mayor buy-in, MM to take charge,
Multi-dimensional classification structure,
Mitigate risk, Monitor progress, Motivation
to change (buy in from all stakeholders),
MOU with system vendor/s, Machinery of
state is SLOW
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
mSCOA
• S- Strategic(include the project in your IDP
and Budget), Study the regulations, Start
ASAP or earlier, be prepared to get your
hands dirty, System vendor capabilities
(Build on new technology), Munsoft is a
dedicated strategic partner.
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
mSCOA
• C- Communication, Change (not easy and
not for the faint hearted, Cost,
Comparatives in AFS
• O- Organise & plan, Organisational reform,
Own chart (understand it)
• A- Assessment, Adaptable to changes
(adoption of GUID approach made this
easier and quicker to respond), AG
(GRAP), Audit trail of change process,
Alignment of IDP, SDBIP, Budget and PMS
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
ROCKS
• R- Resistance to change, Reward, Redo,
Risks (backup plans)
• O- Ownership of the process
• C- Cohesion between Cross functional
team, Challenge yourself and the team
• K- Knowledge sharing, Keep record of
challenges and how you over came it,
Keep the momentum
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
ROCKS
• S- Survive, Service delivery, make it Stick.
(It takes the majority of the organization to
truly embrace the new culture for there to
be any chance of success in the long
term), System vendor positive
responsiveness to required development
or change can make your life easier
(development of new modules).
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Implementation plan
Implemetation plan, risks, mitigation and
progress to date 19 June 2015.docx
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Expected areas of risk
–
–
–
–
–
–
Change management
Capacity at Municipalities to embrace mSCOA
Funding
Comparative figures (3 years)
Prior year adjustments in preparation of 2014/15 AFS
Are the MBRR budget and reporting schedules &
upload files to NT LG database going to change to
accommodate mSCOA and when is this expected?
– Buy in of AG on reform – process followed for
implementation and auditing of AFS
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Un-Expected areas of
risk
– Late release of mSCOA V5.3 to comply with
the time frames of budget regulations.
– Integration with third party vendors was
complicated
– Late rollout of training for mSCOA Champions
and other employees in the municipality (don’t
under-estimate the importance of reinforcement to make the change stick)
– V5.3 flagged accounts ‘do not use’, whilst
already budgeted for, also changes in GFS
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Challenges
• Tight timeframes of mSCOA and other day to
day activities
• Late appointment of mSCOA assistant
• Current mSCOA does not fully cater for District
Municipalities (Core and non-core still an issue,
e.g. Social Services)
• Prior year adjustments in preparation of 2014/15
AFS
• Need of interim adjustment budget (not in
accordance with MBRR)
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Challenges
• The current MBRR budget and reporting
schedules & upload files to NT LG database are
not aligned to mSCOA. Draft budget was tabled
& final budget approved on the old budget
formats
• Alignment changes from old GFS to new
mSCOA GFS
• Buy in of AG on reform – process to be followed
for implementation and auditing of AFS
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Challenges
• Ensuring that all stakeholders will be
understanding the new mSCOA formats
• Interface between VIP and Munsoft to be
finalised
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Segment specific
challenges
Function
• Non provision for core and non-core functions of
Districts
Item
• Classification of items different from old chart, e.g.
Employee wellness, Interns, Audit committee
members
• Absence of sufficient control accounts
• Detail of some items, e.g. Travel and subsistence
vs absence of detail on items like loans,
investments, etc.
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Segment specific
challenges
Funding
• Non breakdown of equitable share (breakdown
required for calculation of level of municipality ito
the upper limits, senior management regulations
etc.)
Regional
• Location vs who receives the benefit
Costing
• None at this stage as it is not used at NDM
Project
• Limited breakdown on typical work streams
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Advice to Non-Pilot
Municipalities
• Start today, study the regulations, study the NT
project document.
• Appoint a dedicated project team and mSCOA
champions
• Prepare a mSCOA implementation plan and
identify all risks that might affect the success of
the project
• Start to align the old chart to the new one
• Ensure that existing hardware will be able to
accommodate mSCOA
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Advice to Non-Pilot
Municipalities
• Make provision in your budget for mSCOA
implementation
• Monitor progress against the implementation
plan, institute corrective actions and adjust the
plan with unexpected issues.
• Ensure that you have backup plans or mitigation
strategies for all identified risks.
• It is not a GL change it is a business change
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Advice to Non-Pilot
Municipalities
• Most of all be a change agent (change is
never easy but it empower you to move
forward) – communication is key
• Get buy in from all relevant stakeholders,
including political buy in.
• This is not a financial reform it is a
business reform – all managers must
be involved. The mSCOA changes the
way we do business and the way we
report on transactions.
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
Decide for yourself
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
We have decided
• To embrace the mSCOA fully
• As we will be adjusting our dance moves
in the next financial year, others will be
starting with mSCOA
• It was good to hear our people saying
things like:
– “We are mSCOA champions and I can teach
other municipalities”
– “mSCOA made us really to apply our minds
preparing our budget”
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
THANK YOU
“Working together with the people to push back the frontiers of poverty”
Access to basic services for all !
32