Presentation format

Briefing to the Portfolio Committee on Public Briefing to the Portfolio Committee on Public Service and AdministrationService and Administration

8 September 2010, Cape Town8 September 2010, Cape Town

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Presentation formatPresentation format

1. Further transformation update

2. Towards a Strategic Framework: Public Service Cadre Development

3. Financial and Organisational Performance for 2009/2010

Further Transformation UpdateFurther Transformation Update

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PALAMA’s key challenges raised by the MPSA PALAMA’s key challenges raised by the MPSA

What defines and distinguishes the Academy from just being a broker of training services?

What defines the state of a government training academy? What is the most appropriate institutional form for PALAMA? How can existing public service capacity be used to strengthen

PALAMA capacity What is PALAMA’s strategic thrust? What is PALAMA’s niche area? What is the preferred and most feasible financial model? If key programmes are made compulsory would PALAMA cope with

the demand? Should PALAMA remain focused on leadership and management? What is PALAMA’s role vis-a-vis other state funded training units,

e.g. provincial academies, etc.?

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Misty Hills Process and OutcomesMisty Hills Process and OutcomesProposed Strategic Thrusts1. Train and develop public servants across the three spheres of

government and related organs of state in administrative, management and leadership competencies.

2. Professionalise the public service through values, ethos and service culture that supports the implementation of government’s developmental agenda.

3. Lead the provision of high quality training and development programmes through on-board capacity and strategic partnerships.

Proposed Strategic Goals1. Curricula informed by the developmental needs of the state and

related government strategic frameworks.

2. Relevant and high quality public sector training and development.

3. A high-performance organisation.

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Lesedi Process and OutcomesLesedi Process and Outcomes

Vision and mission

Fully funded and resourced; Public service training

provider of choice; Residential institutional base; Operating

nationally with provincial satellites; Provides high quality,

relevant training; Leads training policy development and

coordination; Moulds the South African public service

mode of thinking and doing.

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Lesedi Process and OutcomesLesedi Process and Outcomes

ObjectivesDevelop officials across the public sector who are passionate, trained to perform, and committed to improving service delivery and developmentPALAMA graduates exhibit the values, ethos and culture of public service, as government’s corporate identity In-service, professional skills development supported by research intelligence and advice for individuals and organisations

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StrategyStrategy

A curriculum model that sets standards, knowledge, skills, attitudes, workplace learning and practical work for accredited and non-accredited professional development programmes

A hybrid delivery model with well qualified and skilled on-board facilitators (including active or retired government officials) for priority programmes and outsourced providers as required and to provide variety

A well-structured, high-performance organisation, with an organisational development, research and advisory component to support other state organisations

Revised funding model

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Rethinking what we doRethinking what we do

Build cadres for the developmental state – officials, managers and leaders who care, serve and deliver

A corporate academy which enables individual and organisational learning and builds a developmental public administration by:

Outcome:Improved service delivery and development:•Corruption reduced by…•Economy grown by …•Houses built …

Value driven

•Developing programmes and curricula that enable officials to change their practice•Building a common public service ethos

Committed Hard working

Aware

Developmental Accountable

TransformedPALAMA

Conditions: high level support; effective internal systems, financial support, relevant programmes and excellent quality assurance

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PUBLIC SERVICE CADRE DEVELOPMENT PUBLIC SERVICE CADRE DEVELOPMENT PROGRAMMEPROGRAMME

Towards a Strategic FrameworkTowards a Strategic Framework

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Presentation OutlinePresentation Outline

1. Introduction

2. Problem Statement

3. MPSA ten point priorities for 10/11

4. The end state

5. Repositioning of Palama

6. Programme of Action – way forward

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IntroductionIntroduction

The South African State has pronounced itself as developmental.

Being developmental requires of the State to be able to lead in the strategic orientation of the country.

For the State to lead, its technical and organizational capability is critical.

Such capability must allow the South African State to translate broad objectives into programmes and projects for implementation, which requires – Proper training at all levels, Leadership development both at executive and civil

service levels, Re-orientation, engendering new doctrines, culture

and practices at all levels, and Acquiring and retaining skilled personnel.

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IntroductionIntroduction Sec. 4 of the Public Service Act of 1994, as amended, provides:

1. There shall be a training institution listed as a national department in Schedule 1.

2. The management and administration of such institution shall be under the control of the Minister of Public Service and Administration.

3. Such institution -• Shall provide training or cause such training to be

provided or conduct such examinations or test or cause such examination or test to be conducted as the Head of the institution may with the approval of the Minister decide or say be prescribed in or to the public service;

• May issue diplomas or certificate or cause diplomas to be issued to persons who passed the exam.

– Schedule 1 identifies Palama as the institution.

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IntroductionIntroduction The mandate of PALAMA is to improve the capacity for

service delivery and implementation of government initiatives through training across the three spheres of government – national, provincial and local.

– It has the responsibility to decide what training it will provide, but it must obtain the approval of MPSA.

– Palama must also provide that training which MPSA may, by regulation, prescribe as a qualification for the appointment or transfer of persons in or to the public service (e.g. the compulsory MIP).

– Each Executive Authority (Regulations, Ch.1, Part IIID) or Head of Department (Act, Section7(3)(b)) has the responsibility to ensure that employees in his/her department are trained.

– However, MPSA is responsible for establishing norms and standards relating to the functioning of the public service. He does this by making regulations, determinations, or directives.

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Problem Statement Problem Statement

•Public service training remains uncoordinated, incoherent, and largely outsourced -

•Private and public providers, training academies, independent individual contractors etc.

•Public service training coverage remains inadequate – •About 38 000 of the 1.5 million public servants covered

•Impact of training on service delivery not assessed.•Training narrowly focused on junior, middle, and senior managers –

•Administration, support, and frontline staff not covered – more than 70% •The Executive largely not covered.

•Local government training neglected.•Relevance and responsiveness of programme provision insufficient.•Cost recovery model too expensive

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Minister’s ten-point priorities for PALAMAMinister’s ten-point priorities for PALAMA

1. Public sector cadre development programme

2. Ethics, anti-corruption and administrative justice training

3. Management and leadership development

4. Breaking barriers to public service employment

5. Human, financial, project and programme management

6. Building the capacity of public servants to implement programmes through skills development and deployment to the coal face of service delivery

7. Frontline and support staff training

8. Support local government turn-around strategy through training

9. Monitoring and evaluation training

10. Continental and international capacity building

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The end state - 2014 and beyond The end state - 2014 and beyond

The 1995 White paper on the Transformation of the Public Service envisioned training and education as critical to “develop the professional capacities of public servants and to promote institutional change” by:•“First, equipping all public servants …with the necessary knowledge, skills and competencies to carry out their jobs effectively in pursuit of the new vision and mission for the public service;•Second, forming an integral part of the process of increasing the representativeness of the public service;•Third, enabling public servants to acquire a new development-oriented professionalism; this will entail the development of a new work ethic, knowledge and skills with which to implement the RDP;•Fourth, being a powerful instrument for anticipating as well as facilitating the introduction of institutional changes within the public service; and •Fifth, assisting public servants in developing a better understanding of the needs of the communities which they are serving, as well as a capacity to respond to these needs.”

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Repositioning of PALAMA – Macro organisationRepositioning of PALAMA – Macro organisation The Medium Term Strategic Framework of government, arising from the electoral

mandate of the 4th democratic elections of 2009, identifies as key amongst its objectives the need for a developmental state including improvement in public services.

The State has reorganised itself in a manner emphasising national planning (through the National Planning commission) and performance monitoring and evaluation through the PME Unit in the Presidency.

This requires of PALAMA to respond and thus key to the developmental state and improving public services is;

The capacity of the public sector to plan the country’s growth trajectory in the context of a globalised and interdependent world economy;

The capacity of the public sector to implement and coordinate such a growth trajectory in the context of competing interests; and

The capacity of the public sector to simultaneously monitor and evaluate its implementation and the implications thereof in support of a developmental state.

Training must impact on service delivery, in line with the Presidency performance monitoring and evaluation processes.

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Repositioning of PALAMA – cadre attributesRepositioning of PALAMA – cadre attributes

Developing a cadre for the developmental state: Break new ground: being innovative and not

shying away from coming up with new ideas for the public good.

Inspire success: is self motivated and ready to motivate others to service the public.

Raise the standard: is capable of giving her/his best regardless of whether she/he is in the front office or at management level.

Believe that nothing is impossible: comes up with turn-around strategies to salvage a failing situation.

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Repositioning – cadre attributes cont…Repositioning – cadre attributes cont…

Developing a cadre for the developmental state: Make a difference to the people: understands that the

public service has to serve a larger population, and this population has expectations that should always be considered when doing work.

Take collective responsibility and teamwork: must believe in partnership and be practically seen to work with other people.

Be on-board and owning service delivery processes: owns the processes of service delivery.

Be an international activist: is an active agent in implementing the public service agenda on the continent and in the world.

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Repositioning of PALAMA – Political content Repositioning of PALAMA – Political content

Developing the executive to: Execute its constitutional responsibilities more

effectively. Understand its strategic and ethical role in representing

the people and ensuring that government and state institutions meet their developmental mandates.

Engage and intervene in debates on strategy, budgets and policy.

Enhance its oversight responsibility by understanding governance, government and sectoral accountability.

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Repositioning of PALAMA - Resourcing Repositioning of PALAMA - Resourcing

PALAMA allocation: 1.5 million public servants –

Total expenditure of R180 million Reduced state grant of R117 million Staff complement of 232 permanent staff.

Government allocation increase Direct access to 1% of government skills development

fund Donor funding management

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R' 000 Year 1 Year 2 Year 3

With current status quo 270 283 315

% of training budgets 9.0% 8.7% 9.2%

With on board trainers 290 334 414

% of training budgets 9.5% 10.3% 12.1%

Output 2R million

75% of departments (national) spent on target skills improvement 519 557 589

PALAMA requirement from ring fencedPALAMA requirement from ring fenced

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R' million Year 1 Year 2 Year 3

Compensation of employees

National Department 69,171 74,337 78,539

Provincial Department 185,636 198,846 208,439

Municipalities 46,465 50,824 54,979

Total 301,272 324,007 341,957

1% of the COE Budget

National Department 692 743 785

Provincial Department 1,856 1,988 2,084

Municipalities 465 508 550

Total 3,013 3,240 3,420

Employee cost-three spheres of governmentEmployee cost-three spheres of government

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Repositioning of PALAMA – Curriculum modelRepositioning of PALAMA – Curriculum model

The development of mandatory programmes shall be characterised by the following: It relies more on on-board capacity to train and

develop public servants, It is compulsory for all designated public servants in

national, provincial and local Government Departments,

Its design is generic, integrated and multi-disciplinary, It is centrally coordinated, and Training and development shall entail coal-face

deployment.

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Repositioning – Curriculum model cont…Repositioning – Curriculum model cont…

The development of demand-led programmes and/or courses on the other hand shall be characterised by the following: Its design is specialised and based on demand, Its development is based on the premise of a matrix

informed by research/needs-analysis, It is designed for public servants in need of specialist

or unique skills, It relies more on expertise outside public service with

the view to building the State’s capacity to deliver public services, and

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Repositioning of PALAMA – Corporate form Repositioning of PALAMA – Corporate form

The delivery model for cadreship development is premised on two fronts. First it is premised on the need for the state to take

direct responsibility for the development of a public service cadre – this will require appropriate resourcing by government and the establishment of an appropriate campus for this purpose.

Secondly, it is premised on the need to reach the necessary scale in cadreship development within a short period of time – 1.5 million public servants by 2014.

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Repositioning – Corporate form cont…Repositioning – Corporate form cont…

70% of public service training to be done in-house through: Master trainers who are part of the training core of PALAMA, Government trainers located within government and certified

by PALAMA. 30% of public service training to be done through strategic

partnerships: All providers to be certified and registered with PALAMA to

qualify.

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POA – Way ForwardPOA – Way Forward

By 2014, all public servants should be: Trained under an integrated public service framework; Receiving targeted mandatory training in specified fields; Receiving minimum five days training per annum; and Serving for minimum five days at service delivery points of

government per annum.

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Critical milestones

1. Soliciting the OD support (dpsa) for the design; – August 2010

2. Report on the findings and discussion of the results;– September 2010

3. Design of the organizational blueprint (full functional report); – November 2010

4. Presentation to PALAMA for approval; – November 2010

5. Presentation to DPSA; – December 2010– Mobilisation of resources

• Implementation of new design ( 2011)

Change Management Consultation with labour

POA – Way ForwardPOA – Way Forward

PALAMA PALAMA Financial and Organisational Performance Financial and Organisational Performance

2009/102009/10

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Budget Outcome Budget Outcome

R'000 08/09 09/10 10/11

VOTE

Compensation of Employees 11,826 18,255 24,072

Goods and Services 44,466 39,366 35,754

Capital Assets 6,473 5,938 1,831

Transfer to TRADE 42,600 57,545 55,553

Total 105,365 121,113 117,470

Total Parliamentary Grant (VOTE + TRADE) 105,527 121,115 117,470

Surplus/(Deficit) 162 2 -

TRADE

Amount transferred from VOTE 42,600 57,545 55,553

Plus: Net Revenue (Mainly from Course fees) 96,344 109,568 101,518

Total TRADE Revenue 138,944 167,113 157,071

Total TRADE Expenditure 137,126 168,605 155,893



Surplus/(Deficit) 1,818 (1,492) 1,178

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Goods and Services (VOTE)Goods and Services (VOTE)

R'000 08/09 09/10 10/11

Agency and support / outsourced services 22,706 16,418 10,254

Audit costs 850 1,338 1,646

Lease payments 7,787 4,621 4,739

Other operating costs 6,055 8,073 7,884

Computer services 3,268 5,613 6,130

Communication costs 2,163 1,025 1,093

Travel and subsistence costs 1,637 2,278 4,008

Total 44,466 39,366 35,754

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Goods and Services (TRADE)Goods and Services (TRADE)

R'000 08/09a 09/10 10/11


Audit costs 906 2,429 1,367


Lease payments 7,815 9,321 11,876

Staff training and development 2,066 1,466 1,180


Training delivery expenditure - 60,611 56,158

Total 104,209 119,143 96,449

a The training delivery expenditure is not obtainable for the 2008/09 year

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Training delivery expenditure (TRADE)Training delivery expenditure (TRADE)

R'000 09/10 10/11

Trainers (IIC & Service Providers) 47,014 43,561

Venues and facilities 10,543 9,768

Material costs 543 503

Travel and subsistence 2,511 2,326

Total 60,611 56,158

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Expenditure Trends - VOTEExpenditure Trends - VOTE

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Expenditure Trends - TRADEExpenditure Trends - TRADE

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Capital Spending (VOTE and TRADE)Capital Spending (VOTE and TRADE)R'000 08/09 09/10 10/11

Machinery and Equipment (VOTE)

5,945

5,194 1,831

Software and other intangible assets (TRADE)

528

744 -

Total

6,473

5,938 1,831

Analysis

The average budget allocation over the preceding 2 years period was only R2 million per year

The VOTE carries the entire cost for all moveable assets

All moveable assets are accounted for in the VOTE at cost

All intangible assets relating to courses are accounted for in the TRADE at fair value

The budget allocation for capital assets has not been sufficient for the preceding 2 years in the VOTE, due to the transformation and reconstitution of Palama.

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R'000 08/09 09/10 10/11

VOTE Expenditure 11,826 18,255 24,072

TRADE Expenditure 32,917 49,462 59,444

Total 44,743 67,717 83,516

Analysis

VOTE

Headcount of permanent staff for 2008/09 and 2009/10 year on year basis is 44 and 54 respectively

The R6,429 million increase in spending for the year under review is a result of the increase in filled positions

The vacancy rate for the year under review (09/10) is 42%

TRADE Headcount of permanent staff for 2008/09 and 2009/10 year on year is 86 and 118 respectively The R16,545 increase in spending for the year under review is a result of the increase in filled

positions The vacancy rate for the year under review (09/10) is 21%

Personnel Spending Personnel Spending

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MTEF Allocations MTEF Allocations R'000 11/12 12/13 13/14

VOTE

Total Parliamentary Allocation (VOTE +TRADE ACCOUNT) 117,567 121,722 128,417

Less: Amount transferred to TRADE ACCOUNT 54,661 57,180 60,325

VOTE allocation 62,906 64,542 68,092

Less: VOTE expenditure 62,906 64,542 68,092

Surplus - - -

TRADE

Amount transferred from VOTE 54,661 57,180 60,325

Course fees 115,046 120,798 126,838


Less: Trade Expenditure 168,581 176,691 185,859

Surplus 1,126 1,287 1,304

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MTEF allocations per Economic Classification MTEF allocations per Economic Classification (VOTE) (VOTE)

R'000 11/12 12/13 13/14

VOTE



Capital Assets 2,034 2,135 2,252

Transfer to Trading Entity 54,661 57,180 60,325

Total 117,567 121,722 128,417

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Goods and Services MTEF Allocations (VOTE)Goods and Services MTEF Allocations (VOTE)

R'000 11/12 12/13 13/14


Audit costs 1,646 1,751 1,859

Lease payments 4,748 4,939 5,211


Computer services 6,274 6,665 7,192


Travel and subsistence costs 3,863 3,240 3,427

Total 35,369 35,630 37,590

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MTEF Allocations (TRADE)MTEF Allocations (TRADE)

R'000 Medium Term Estimate

TRADE 11/12 12/13 13/14

Course Fees 115,046 120,798 126,838

Transfer from the VOTE 54,661 57,180 60,325


Total TRADE Expenditure 168,581 176,691 185,859



Surplus/Deficit 1,126 1,287 1,304

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Goods and Services MTEF Allocations Goods and Services MTEF Allocations (TRADE)(TRADE)

R'000 11/12 12/13 13/14


Audit costs 2,549 2,677 2,811


Lease payments 12,648 13,457 14,278

Staff training and development 1,260 1,323 1,390


Training delivery expenditure 69,028 72,479 76,103

Total 105,570

110,529

116,389

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Training delivery expenditure MTEF (TRADE)Training delivery expenditure MTEF (TRADE)

R'000 11/12 12/13 13/14

Trainers (IIC & Service Providers) 53,543 56,220 59,031

Venues and facilities 12,007 12,607 13,238

Material costs 618 649 682

Travel and subsistence 2,861 3,003 3,152

Total 69,028 72,479 76,103

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Organisational performance in 2009/10 –Trade Organisational performance in 2009/10 –Trade

PALAMA facilitated the training of 39,844 officials in 2009/10, translating to approximately 130,927 person training days

Executive development programmes (including Project Khaedu, induction, and protocol and diplomacy) offered to 2,350 participants

Gender mainstreaming initiatives rolled out, including the establishment of a virtual social discussion forum with more than 1,300 participants

E-learning programmes were introduced and there has been a high percentage of participation, including the successful completion of the SCM: Bid Committee online course by more than 50% of participants

Roll-out of the Public Service induction programme has resulted in 22,632 new public servants being inducted

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Successfully rolled out training on SCOA in partnership with National Treasury, during which training was provided to 4,869 officials

Rolled out training on the government-wide Monitoring & Evaluation system through the development of six M&E courses, and 1,750 officials being trained

Development of the Trainer Professional Development Framework - nine workshops were convened with national and provincial trainers

Capacity building for trainers was also done through the annual Public Sector Trainers Forum, during which approximately 500 delegates participated

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Ten existing courses were reviewed and upgraded and another ten new courses were developed, including courses in developing HRD Implementation Plans and Strategic HR Planning

Established two regional sites (in Polokwane & Cape Town) to increase PALAMA’s visibility and reach at provincial and local levels

Developed a Training Needs Analysis methodology and tools to improve the identification of training needs

Facilitated the Regional Capacity Building project with donor funding for post-conflict countries (Rwanda, Burundi & Southern Sudan) to strengthen institutional systems and capacity building

Facilitated a training of trainers programme during which 35 participants from 15 African Anglophone countries participated

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Organisational performance in 2009/10 – Vote Organisational performance in 2009/10 – Vote

Establishment of database and physical repository for all contractual agreements

Finalisation of PALAMA’s Promotion of Access to Information Act (PAIA) Manual

Finalisation and implementation of HR delegations

Refinement and implementation of the outsourced delivery model in relation to IT services and facilities management

Implementation of personalised security system

Reviewed and enhanced strategic planning and reporting cycle processes and systems

Stabilised Information Technology system – IT infrastructure upgrade

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Corporate governance compliance in 2009/10Corporate governance compliance in 2009/10

Audit Committee Audit Committee functioning in terms of approved Audit Committee

Charter and convened 5 times during 2009/10

Internal Audit 3-year rolling internal audit plan approved and implemented

Risk Management Risk management charter and plan approved and implemented Risk register reviewed and updated Risk Management Committee established and functioning in

accordance with the charter Fraud policy and prevention plan approved and implemented

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Human resource oversight Human resource oversight

Personnel costs Personnel expenditure of R44,1m

Employment and vacancies A total number of 242 posts, with 172 being filled – representing a

vacancy rate of 29%

59 new appointments and transfers into the Academy and 16 exits from the Academy were effected

Employment equity 58% female and 42% male representation

3 employees with disabilities representing 1.7% of the filled posts

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Organisational performance in 2009/10 challenges Organisational performance in 2009/10 challenges Achievement of person training days

71% of the target of 185,000 was achieved Various factors contributed to this achievement rate, post-election re-

organisation in many government departments, programme costs, budget constraints and lack of coordination capacity in some provinces

Establishment of the Advisory Council Further consultations required with the Minister in order to understand the

nature and form of such a council

PALAMA communication, branding and corporate identity A draft strategy was developed but not approved and implemented Elements of communication, marketing and branding were nonetheless

implemented successfully

Enterprise resource planning EA strategy was approved, however the implementation of the system was put

on hold due to budgetary constraints

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Organisational performance in 2009/10 – challenges Organisational performance in 2009/10 – challenges PALAMA cost of programmes

Cost of the programmes perceived to be too expensive - direct consequence of PALAMA’s current costing model

Provision of training Dependency on service providers to complete work timeously or the

non-delivery of service providers - affects planned timeframes for course development

Signing of formal working agreements with departments and provinces could not be achieved - different approaches preferred

Programme development Approval of programmes by the respective ETQAs - influences the

approval and roll-out readiness of accredited programmes

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Auditor-General’s Audit and Management Auditor-General’s Audit and Management ReportReport

Both the Vote and the Trade Account received an unqualified audit opinion

Management letter covers the following areas for improvement; Contents of the strategic plan with more specific and measurable

objectives, outcomes, outputs and targets. Effective performance monitoring, evaluation and clear

corrective actions where performance is not meeting set targets. Human resource planning and verifications for new

appointments Complete overall of Human Resource policies to ensure a full

compliment for PALAMA policies. Risk management with a focus on monitoring controls, IT

environment security and provisions for business continuity in the event of a disaster.

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ManagementManagement Improvement PlanImprovement Plan

Strategic plan supported by an annual performance plan, the latter being reviewed with a focus on improving measurable outcomes, outputs and targets for approval by the Minister by the end of second quarter .

HR Plan developed and aligned to the prescribed framework and capacity requirements of the Academy will be completed by the end of the second quarter.

A process is set with specific timelines for completion of required PALAMA policies will be completed by the end of the calendar year.

Risk control improvement measures as proposed by the Auditor-General will be implemented by the end of the calendar year.

Palama’s audit committee will closely monitor the implementation of the Management Improvement Plan during their quarterly meetings.

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Thank you

Documents

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