Colloquium:

Evaluation of the current resource allocation

model in the South African Police Service

Presentation by Karel Husselmann

(Doctor in Philosophy (Criminology & Forensic Studies))

2017-02-08

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INDEX

1. Background: “Evaluation of the current

resource allocation model in the South

African Police Service”

2. Direction

3. Governments Impact:

3A. Functions Of Government In

Management Of Resources

3B. Resource Challenge

3C. Director-general: National Treasury

(Lungisa Fuzile)

3D. We Need To Know!!!

3E Government: The generic elements of

Supply Chain Management

3F. Current SCM Challenge

3G. Sourcing Strategies

3H. Government: Differences between the

supply chain for goods and services and

for infrastructure

4. Procurement Strategies

5. Government: Public Administration

6. Way Forward

7. Possible SAPS Model

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Questions…?

• Is there an resource or resource allocation model: Y/N

• Is there a resource model for each policing model: Y/N

• Do we have enough resources: Y/N

• Do we have enough or any resources for the “Community Policing”

concept: Y/N

• Do we have enough budget to buy what we need: Y/N

• What do we prioritize to buy and what not?

• How will this action influence/effect our strategies?

• Back to Basic approach – you do with what you have

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............................... benefit is produced

“Knowledge Management”……………….

“Perception Management”..………………

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Evaluation of the current resource allocation model in the

South African Police Service

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•Economic growth

•Ethical consumerism

•Prosperity

•Quality of life

•Sustainability

•Wealth

We need to understand our buying power, we can……

1. Economic: In economics a resource is defined as a service or other asset used to produce

goods and services that meet human needs and wants. Economics itself has been defined as

the study of how society manages its scarce resources

2. Biological: In biology and ecology a resource is defined as a substance that is required by a

living organism for normal growth, maintenance and reproduction. The main essential resources

for animals are food, water, and territory. For plants key resources include light, nutrients, water,

and a place to grow

3. Computer resources: Is any physically or virtual component of limited availability within a

computer or information management system. Computer resources include means for input,

processing, output, communication, and storage

4. Natural resources are derived from the environment. Many natural resources are essential for

human survival, while others are used for satisfying human desire. Conservation is the

management of natural resources with the goal of sustainability

5. Labour or human resources refers to the human effort in production of goods and rendering of

services. Human resources can be defined in terms of skills, energy, talent, abilities, or

knowledge. In a project management context, human resources are those employees

responsible for undertaking the activities defined in the project plan

6. Capital or infrastructure refers to already-produced durable goods used in production of goods

or services. In essence, capital refers to human-made resources created using knowledge and

expertise based on utility or perceived value(buildings, machinery, railways, roads, and ships)

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1. Background

• Aristotle - classified the functions of a Government into three categories viz., deliberative,

magisterial and judicial.

• The French political philosopher Montesquieu in his book L. Esprit Des Lois (Spirit of Laws)

there is three kinds of power in every political society; legislative power, executive power

and judicial power(Society).

• Executive Power - aspects of the organisation and administration of society as an

governmental responsibility - the operations of the police are accepted as responsibilities of

the executive government;

• Executive power comprehends those aspects of the organisation and administration of

society which are, at any given time, regarded as properly a matter of governmental

responsibility. Understanding as to what matters are properly regarded as the responsibility

of government has changed over time, however such matters have always included the

maintenance of external and internal security, the promotion of law and order, and

keeping of the peace

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1. Background

• Idealistically, police and policing should be performed by highly qualified individuals, supported

by the best tools and resources, discharged with the highest professional standards that produce

good and accountable managerial results that best serve the people

• Government departments in the Republic of South Africa do not have entrée to unlimited funds

and therefore have to manage apportioned financial resources effectively and efficiently.

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The President of the Republic of South Africa,

Dr Jacob Gedleyihlekisa Zuma, during his State Of Nation

Address in Parliament , on 11 February 2016, stated:

“The International Monetary Fund [IMF] and the World Bank predict that the South African economy

will grow by less than 1% this year [2016]. The lower economic growth outcomes and outlook

suggest that revenue collection will be lower than previously expected. Importantly, our country

seems to be at risk of losing its investment grade status from ratings agencies. If that happens, it will

become more expensive for us to borrow money from abroad to finance our programmes of building

a better life for all, especially the poor. We have made an undertaking to spend public funds wisely

and to cut wasteful expenditure. The South African Police Service (SAPS) is undergoing a

turnaround and has adopted the Back to Basics approach to management to rebuild the

organisation and to improve performance at all under-performing police stations. The

situation requires an effective turnaround plan. It is about doing things differently and also

acting on what may not have been acted upon quickly before”

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2. DIRECTION…..

• The Police Minister announced the back-to-basics strategy, which, he said, “focused on every member of

the SAPS reverting to the established regulatory framework, or simply put, doing the basics of policing

properly and consistently”.

• The strategy is based on three fundamental pillars: discipline, enhanced visibility, as well as the

deployment of operations resources to ensure the optimal utilisation of the limited resources that the police

have at their disposal, to ensure that they are applied to the maximum effect, writes Sakhile Mokoena.

• During a debate on the budget votes of the South African Police Service (SAPS) and the Independent

Police Investigative Directorate (IPID), the Chairperson of the Portfolio Committee on Police, Mr Francois

Beukman, said the creation of the two special units was in line with crime fighting efforts as envisaged in

the National Development Plan (NDP)

1. “We welcome the creation of the special units to deal with narcotics and firearms respectively, which will

be based inside the Directorate for Priority Crime Investigation (DPCI). We believe that this initiative will

go a long way in fighting organised crime,” he said.

2. In supporting the R80.8bn allocation to the police, Mr Beukman said “the funds would be used to

procure specialised equipment for public order policing capacity, such as cameras for aircraft, video and

recording equipment, water cannons and armoured vehicles”

3. “From the Committee’s side, we welcome the additional capacity in public order policing units – the

department will receive an increase of R242m in the 2017/18 financial year and R335m in the other

financial year”

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DIRECTION….

• This allocation will ensure that the SAPS will be able to commence with the procurement of the

equipment and specialised devices as indicated in the Farlam Commission

recommendations

• Khayelitsha Commission of inquiry of police inefficiency and break down in relations between

SAPS and the Community

It is clear from the literature that police agencies all over the world are striving for policing methods

that would satisfy community needs (McKenzie, 2005; Geldenhuys, 2005; Stevens & Yach, 1995;

O’Toole, 2004, Wood 2005; Puthpongsiriporn & Quang, 2004; Egharevba, 2005; Chetty, 2004). A

definite trend advocating the move away from traditional crime fighting techniques has developed

over the last few decades, in an attempt to involve communities and to improve service

delivery. This “move” resulted in various philosophies of policing and problem-oriented policing,

community policing and partnership policing emerging as possible solutions to serve communities

better (Stevens & Yach, 1995).

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3. GOVERNMENTS IMPACT

• An government can have a tremendous impact on the allocation of resources in a country. This

is especially true in countries where the government is more deeply involved in the economy,

but it is true even in relatively laissez-faire countries such as the United States

• Countries like the US have governments that can affect the allocation of resources. For

example, the US government subsidizes health care through Medicare and Medicaid and

through the fact that it does not tax the value of health insurance that people get as part of the

compensation for their jobs

• In China, the government is deeply involved in the allocation of resources. It helps to decide

which industries will be promoted. It owns many of the major companies. Because of this, it can

help to decide, for example, whether resources will be devoted to the production of consumer

goods for the domestic market or for export.

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3A. FUNCTIONS OF GOVERNMENT IN MANAGEMENT

OF RESOURCES

1. Governments allocation function - has to provide for public goods. Public goods such as

national defence, government administration and so on are different from private goods.

Because of that government has to allocate resources between private goods and public goods

2. Governments distribution function - Through its tax and expenditure policy government

affects distribution of personal income of households in a manner which is just and fair. As such

it taxes the rich and spends for the schemes which benefit more the poor

3. Governments stabilization function - Economy of a country is affected by economic

fluctuations such as conditions of boom and depression. Such changes benefit some and harm

others. In such a situation appropriate policy measures are required by the government to affect

the levels of aggregate demand. Such measures are called stabilization measures(avoiding

inflation and unemployment)

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3B. RESOURCE CHALLANGE

• One Resource Plan in South Africa for all Government Departments

• Partnership with Business(large-micro)

• Absence of taking responsibility and accountability(top management/local management)

• Environmental degradation

• Over-consumption

• Resource depletion

• Myth of superabundance e.g water

• Budgeting systems(complexity makes it hard for central allocators to adapt and take away incentive from unit/maximize expenditure and no reduction)

• Central control(most common control method is incremental line-item budgeting(previous year’s budget base – usually adjusted for inflation)

• Employee tend to assert ownership

• Productivity becomes impossible

• Treat of quality

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3C. DIRECTOR-GENERAL: NATIONAL TREASURY

(LUNGISA FUZILE) The Review reflects the views of government, business and civil society. It shows a growing

appreciation that SCM reform will require collaboration and that it should be treated as a national

project

BENEFITS:

• Good-quality service delivery will be increasingly possible, with significant improvements in the

welfare of South Africa’s citizens and especially the poor who rely heavily on government for

support

• The economy will grow as economic infrastructure is expanded and efficiently maintained

• Goods, services and infrastructure will be bought at lower costs

• Innovation will result in different approaches to the commodities used in some sectors

• For suppliers, the cost of doing business with the state should decrease substantially.

Transparency and open contracting are critical elements of any public sector SCM system.

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3D. WE NEED TO KNOW!!!

- “while institutional leaders proclaim the need for sustained funding to maintain or increase

access and quality, political figures and the general public wonder why SAPS cannot manage

their costs more effectively”

- Productivity improvement requires from us to that administrative processes be reviewed

and where applicable restructured, reengineered or eliminated ….this can mean that our

resource allocation processes can impact on all other processes

- Resource allocation should mean that knowledgeable people making inform decisions and this

means decisions how they are made and how they are communicated powerfully effects

outcomes

- The same knowledgeable people with the same information and diligence can reach successful

conclusion through a good process but end up a with a failure if they must fight a poor process

every step of the way

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3E. GOVERNMENT: THE GENERIC ELEMENTS OF

SUPPLY CHAIN MANAGEMENT

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3F. CURRENT SCM CHALLENGE

• Supply chain management (SCM) is one of the key mechanisms enabling government to

implement policy – are we??

• Traditionally, SCM has been misunderstood and undervalued. Its strategic importance has not

been recognised, and it has been under-capacitated. The negative effects of inefficient public

sector SCM, particularly in the procurement phase of the chain, are well documented

• Suppliers charge excessive prices; goods and services contracted for and delivered are of poor

quality and unreliable; and there is corruption and waste.

• The value chain management is of strategic importance of SCM to service delivery, value

creation, socio-economic transformation and fiscal prudence. The establishment of the Office of

the Chief Procurement within the National Treasury reflects government’s commitment to quality

service delivery at the right place and time.

• The Office of the Chief Procurement Officer (OCPO), working with all government institutions, will

modernise and oversee the South African public sector SCM system to ensure that the

procurement of goods, services and construction works is fair, equitable, transparent, competitive

and cost effective in line with the Constitution and all relevant legislation

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3G. SOURCING STRATEGIES

Strategic commodities: These are high value goods which are critical to service delivery, have

complex and/or rigid specifications and for which there are few qualified suppliers. The strategy

should be to form long term partnerships with suppliers

Leverage commodities: These are high value goods which are market- or price-sensitive because of

competition in the market; there are many suppliers and many product and service choices. The

strategy should be to maximize government’s buying power and maintain market competition

Bottleneck commodities: These are lower value goods with complex specifications, that have a

substantial impact on service delivery, have few qualified suppliers and not many alternative

substitute products. The strategy in this case should be to manage the supply risk by ensuring

continuity of supply through firm and longer term contracts

Routine/non-critical commodities: These are small, low value individual transactions and everyday

products and services. There are many suppliers and many alternative products. The strategy here

should be to simplify the acquisition process, and reduce the administration of transactions, by as far

as possible automating the purchasing process 19

3H. GOVERNMENT: DIFFERENCES BETWEEN THE

SUPPLY CHAIN FOR GOODS AND SERVICES AND FOR

INFRASTRUCTURE

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GOVERNMENT: INFRASTRUCTURE • Government has adopted the NDP as the country’s framework for economic and social transformation.

The plan aims to accelerate growth, eliminate poverty and reduce inequality by 2030. A key pillar of the

NDP is investment in public infrastructure, with the 2014 Budget projecting this investment at R847

billion over the next three years. Government recognises that infrastructure (also referred to as fixed

capital investment) is one of the pillars that support a better life for all as it serves social and economic

needs.

• RISK: Failure to deliver and maintain infrastructure disrupts the lives of individuals and communities and

has economic consequences. Why???

• The supply chain for public sector infrastructure delivery:

1. The Public Finance Management Act (PFMA) of 1999 requires accounting officers and accounting

authorities to ensure that their institutions have and maintain financial management,

procurement, risk, internal control and internal audit systems.

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INFRASTRUCTURE:PARTNERSHIP

• No Public-Private Partnerships exist

• The Public Sector has turned to the private sector as a partner in providing infrastructure

services.

What needs to happen:

1. Government shortcomings must be addressed

2. The South African construction industry’s performance as it relates to social and economic

infrastructure procured by government is not as good as it should be. Research

commissioned found the industry to be characterised by high levels of enterprise failure,

poor levels of quality and little improvement in processes and productivity.

3. Corruption, fraud, theft and anti-competitive practices within the sector.

4. The limited pool of experienced engineers suitable for management positions, the long

learning curve and the time needed for graduates to acquire management skills remain

significant barriers to transformation.

5. Non standardization of the infrastructure delivery management system.

6. Standardization on the implementation of the Government Immovable Asset Management

Act.

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INFRASTRUCTURE: PARTNERSHIP BENIFITS

7. Need for a best practice, standardised infrastructure delivery management system(IDMS) for

infrastructure delivery and maintenance.

8. Regulatory reform needs to support alternative and innovative delivery models.

9. The OCPO must establish a framework for government’s procurement activities in relation to

the construction industry and related engineering services.

10. The CIDB should be strengthened as a partner in infrastructure delivery and the OCPO

should not duplicate its work. This would avoid multiple centres of infrastructure procurement

regulation.

11. A grading system for engineering services should be investigated, similar to that for

contractors.

12. Support measures, including improving contractor development, should be introduced.

13. The regulatory framework should enable emerging firms to participate

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4. PROCUREMENT STRATEGIES

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PROCUREMENT STRATEGIES

5. GOVERNMENT: PUBLIC ADMINISTRATION

• Public administration – defined as the detailed and systematic execution of public law (Wilson,

1887; Goodnow, 1900)

• Despite basic similarities, the public administration of our times is entirely different from public

services in the past – amongst many others, it is larger and more complex than ever before, and

it is still expanding by the day (Vigoda, 2003)

• Consequently this gave rise to New Public Management (NPM) in the early 1990s (Barzclay,

2001).

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GOVERNMENT: PUBLIC ADMINISTRATION

• In 1992, David Osborne and Ted Gaebler introduced the concept of ‘public entrepreneurship’.

(They proposed a new form of governance that is adaptable, responsive, efficient and effective

– ‘entrepreneurial government’.). ‘Entrepreneurial government’ advocates not a necessary

smaller government but a better government.

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6. WAY FORWARD

1. Government/SAPS should skilfully select alternatives to in-house delivery, such as

contracting out, entering into public-private partnerships, and utilising such devices as

vouchers, volunteers, seed money.

2. Administrators should not run all aspects of programmes but instead empower clients

to participate in management by means of governing councils and management teams.

3. Competition should be injected into the governing process by such methods as bidding for

tasks, internal rivalry among sub-units, and competition among services for clients.

4. SAPS should minimise the number of rules by which they operate. Line-item budgeting,

year-end fund expiration, and detailed job classifications should all be eliminated.

5. Once ‘freed up’, the saps and various governmental organisations should dedicate themselves

to a clear, ‘one-niche’ mission.

6. Review of organisational-performance and fund-allocation should be based on policy outcomes

rather than programme inputs.

7. Clients must be regarded as customers. This calls for allowing choices, surveying attitudes,

making services convenient, training employees in customer contact, test marketing, and

suggestion forms.

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WAY FORWARD

8. SAPS should not just spend money, but earn it as well, for example, by using fees,

shared savings, enterprise funds, entrepreneurial loan pools, and internally-competitive profit

centres

9. SAPS should not just deliver services to meet ends, but prevent needs from arising in the first

place. Centralised institutions should become decentralised, with hierarchical control giving

way to developed authority, teamwork, participatory management, labour-management

cooperation, quality circles, and employee-development programmes.

10. SAPS should not attempt to achieve ends only by command and control, but also by

restructuring markets through subsidy and incentives for investment.

11. Applying the concept of ‘strategic sourcing’, which gives a basis for deciding, for example,

whether to purchase a local commodity which helps to create jobs or one which is wholly or

partly imported.

12. Building relationships with the private sector. This will enable manufacturers and other service

providers to understand government’s current and future purchasing needs so that they can

plan accordingly. It will also increase officials’ knowledge and understanding of the goods and

services available

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WAY FORWARD

13. Identifying and implementing innovative ways to improve employees’ skills and knowledge.

14. Using technology to streamline transactions and improve oversight. Properly implemented,

these reforms will result in a public sector SCM system that complies rigorously with all relevant

laws and regulations, is accountable, provides value for money and ensures good-quality

service delivery. People, processes and technology are critical to achieving this.

15. Improving processes, rules and infrastructure to make it easier for the public sector and its

private sector suppliers to transact

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2018/019

Resource Plan

for 2018/2019

WHAT DO YOU

WANT TO ACHIEVE

• Direction

NDP

Minister

Nat Comm APP16/17

Mission / Vision

Strategies P 1-5

National Office

Provincial Office

Station

Units

WHAT DO YOU

NEED

• To get there!!

Economic

Biological

Computer

Natural

Labour/Human

Resources

Capital

Infrastructure

Other

R/Costs

WHAT DO YOU

HAVE

• At the time

Economic

Biological

Computer

Natural

Labour/Human

Resources

Capital

Infrastructure

Asset Management

(80/20 principle)

• Responsibility

•Accountability

O/S, FUTURE

NEEDS

Now!

Economic

Biological

Computer

Natural

Labour/Huma

n Resources

Capital

Infrastructure

R/Costs

Implement

Resource Plan

(Cost)

• Project

Management

Resource Plan

2016/2017

(Budget)

7. POSSIBLE SAPS MODEL

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The End