Presentation to the Parliamentary Portfolio Committee on Public
Presentation to the Parliamentary Portfolio Committee on Public Works – cidb Annual Performance Plan 2016/17 6 April 2016 by: Ms Hlengiwe Khumalo Acting CEO 1
Overview I. II. Vision, Mission & Values Mandate: • why do we exist? III. Strategic Goals: • what are we going to do? IV. Priority Programme Outputs: • what and when will we do it? V. Organizational Re-design and development VI. Governance matters VII. CEO’s Office VIII. Resources • • Human Capital Budget 2
I. Vision, Mission & Values 3
I. (i) - VISION A transformed construction industry that delivers sustainable value in a manner that is responsive to the socio-economic needs of South Africa 4
I. (ii) - MISSION We exist in order to create an inclusive, sustainable and competitive construction industry by regulating, developing and transforming the construction industry through: - monitoring and enforcement, - standards and guidelines, - capacity building and - forging partnerships. 5
I. (iii) - VALUES Service Excellence | Integrity | Innovation | Leadership | Cooperation and Teamwork | Personnel Development 6
II. Mandate 7
II. The cidb is Mandated to: 1) Provide strategic leadership to construction industry stakeholders 2) Promote sustainable growth of the construction industry and the participation of the emerging sector 3) Promote improved performance and best practice of public and private sector clients, contractors and other participants in the construction delivery process 4) Promote uniform application of policy throughout all spheres of government and promote uniform and ethical standards, construction procurement reform, and improved procurement and delivery management – including a code of conduct 5) Monitoring and regulating the performance of the industry and its stakeholders, including the registration of projects and contractors 8
Alignment with NDP, Government and Minister’s Priorities 9
Alignment with NDP National Development Plan Chapter 3: Economy and Employment Chapter 4: Economic Infrastructure cidb alignment to NDP § Develop and capacitate the industry to deliver quality infrastructure (Goal 2 - CAPACITATION) § Contribute to the transformation of the construction industry (Goal 3 - TRANSFORMATION) § Strengthen and enhance compliance with the cidb regulations to reduce construction risk (Goal 1 – COMPLIANCE ENHANCEMENT) Develop and capacitate the industry to deliver quality infrastructure (Goal 2) § Chapter 14: Fighting Corruption § Strengthen, implement and enforce the cidb regulations to reduce risk, fraud and corruption in the sector (Goal 1) 10
Alignment with DPW Strategic Goals Transformation in the construction sector Contribute to the transformation of the construction industry (Goal 3) Combating fraud and corruption Strengthen, implement and enforce the cidb regulations to reduce risk, fraud and corruption in the sector (Goal 1) 11
Alignment with Minister’s priorities Government outcomes Outcome 4: Decent Employment through inclusive growth. cidb alignment § Build, capacitate and enhance compliance in the industry to deliver quality infrastructure in the country (Goal 2) § Contribute to the transformation of the construction industry (Goal 3) 12
III. Strategic Goals 13
III. STRATEGIC GOALS 1) Strengthen and enhance compliance with cidb regulations to reduce construction risk, all forms of fraud and corruption in the sector 2) Build and capacitate the industry to deliver quality infrastructure 3) Enhance transformation of the construction industry 4) Position the cidb as a knowledge authority in the industry 5) Maintain financial sustainability 6) Provide an excellent service to contractors and clients 7) Optimize organizational design that supports the effective delivery of the mandate 8) Strengthen and maintain good relations with stakeholders through effective communication 14
IV. Core Programme Priorities 15
IV. PRIORITY PROGRAMME OUTPUTS (CORE FUNCTIONS) A] B] C] D] Construction Registers Service Construction Industry Performance Procurement and Delivery Management Provincial Offices and Contractor Development 16
A – CONSTRUCTION REGISTERS SERVICE 17
A - Construction Registers Service (CRS) 1) Amendments to CID Regulations 2) Pilot online contractor registration system 3) Enhance registrations processes (optimal design, workload balancing, staff product knowledge) 4) Zero tolerance approach to fraud and corruption within registrations process 18
A - Construction Registers Service (CRS) • Number of Registrations Grade CE EB EP GB ME SW Total 1 28136 1850 6579 60250 6466 23680 126961 2 1736 161 201 2332 329 743 5502 3 1009 59 121 669 127 256 2241 4 970 128 263 927 201 207 2696 5 727 114 199 588 146 187 1961 6 824 67 207 718 141 130 2087 7 465 46 98 362 66 74 1111 8 171 10 40 146 41 39 447 9 78 2 22 48 29 14 193 Total 34116 2437 7730 66040 7546 25330 143199 Note: Contractors may be registered in multiple classes of works CE – Civil, EB/EP – Electrical, GB – Building, ME – Mechanical, SW – Specialist class of works 19
A - Construction Registers Service (CRS) • No. of Registrations; Black, Women and Youth Ownership % Grade CLASS OF WORK CE EB EP GB ME SW Total %Black Owned 1 28136 1850 6579 60250 6466 23680 126961 96. 43 32. 47 28. 83 2 1736 161 201 2332 329 743 5502 93. 91 36. 23 26. 24 3 1009 59 121 669 127 256 2241 91. 52 34. 88 24. 46 4 970 128 263 927 201 207 2696 84. 52 31. 14 17. 31 5 727 114 199 588 146 187 1961 79. 52 29. 00 14. 11 6 824 67 207 718 141 130 2087 75. 69 29. 84 9. 63 7 465 46 98 362 66 74 1111 68. 95 26. 05 8. 27 8 171 10 40 146 41 39 447 51. 64 22. 42 3. 27 9 78 2 22 48 29 14 193 20. 53 14. 21 3. 68 2437 7730 66040 7546 25330 143199 95. 08 32. 43 27. 73 Total 34116 %Women Owned %Youth Owned Note: Contractors may be registered in multiple classes of work CE – Civil, EB/EP – Electrical, GB – Building, ME – Mechanical, SW – Specialist class of works 20
A - Construction Registers Service (CRS) Black Owned Upgrades and Downgrade for 2015 (GB and CE) Grade General Building Civil Engineering Upgrades From Downgrades From N/A 365 144 30 1009 500 188 37 N/A 7&8 1164 458 161 28 9 N/A 0 N/A 2 1 2 to 4 5&6 254 122 20 Note: Contractors may be registered in multiple classes of work CE – Civil Engineering, GB – General Building 21
A - Construction Registers Service (CRS) • Amendments to CID Regulations • • • Significant changes to Register of contractors were introduced through Regulation amendments gazetted in July 2013. These included the removal of the requirement for contractors to have registered professionals in their full time employ for the purposes of cidb registration, reduction in Annual Turnover requirements, among other amendments. The cidb continually scans the environment to ensure that the Register of Contractors serves as a macro risk management tool for the public sector and provides a framework for the development of emerging contractors. Further amendments have been identified. 22
A - Construction Registers Service (CRS) • During the 2016 -17 financial year further amendments have been identified and will be gazetted for public comment, subject to approval by the Minister of Public Works. These include, among others: • Grade 1 registration - introduction of entry level requirements which will enable increased and improved advisory service to contractors • Improved appeals process • Requirement for subcontractors to be cidb registered • Tender Value Limit increases 23
A - Construction Registers Service (CRS) • Pilot on-line registration service: During the 2016 -17 year the cidb will pilot an online contractor registration system • The pilot will allow the cidb to refine the system • Contractors will be able to lodge applications and upload supporting documents through the cidb website • This will allow for improved customer service and will reduce the burden on contractors in terms of travelling to cidb offices • Will reduce the administration overhead on the cidb in the management of the Register 24
A - Construction Registers Service (CRS) • Enhance registrations processes (optimal design, workload balancing, staff product knowledge): • Harness the Customer Relationship Management (CRM) software platform for improved communication to contractors • Business Process Management (BPM) best practice will be prioritised • Reassess the Quality Control function • Continue with training notices and training workshops for client facing staff members at the registration service points. This will ensure that staff provide a high quality advisory service. 25
A - Construction Registers Service (CRS) • Zero tolerance approach to fraud and corruption within registrations process • • • All cases are investigated. Investigations Officers and Investigations Committee in place. Fraud Management Committee established Rollout fraud awareness programme to head office and provincial offices including revised conflict of interest policy Internal and external newsletters to include a focus on fraud awareness Review existing policies, internal controls, fraud hotline 26
A - Construction Registers Service (CRS) • • Roll-out of Project Assessment Scheme Roll-out of Contractor Recognition Scheme • • Roll-out of cidb Register of Professional Service Providers (PSPs) Enhance roll-out of cidb Skills Strategy • Monitoring the performance of the industry 27
B – CONSTRUCTION INDUSTRY PERFORMANCE 28
B - Construction Industry Performance (CIP) • Roll-out of cidb Project Assessment Scheme: • Project Assessment Scheme promotes improved performance of public and private sector clients, and the development of the construction industry (Section 23 of CIDB Act) • Consultation on the cidb Best Practice Fee was concluded in 2015 (0, 2% of contract value) • Draft Regulation for the Project Assessment Scheme will be published for public comment in 2016/17 • Scheme will lay the foundation for the implementation of cidb Standards in 2016/17 which includes among others, developmental goals on public and private sector contracts: • • • around 500 contractors will receiving developmental support per year around 6 000 learning opportunities per year for FET learners / artisans around 1 500 learning opportunities per year for candidates 29
B - Construction Industry Performance (CIP) • Roll-out of cidb Contractor Recognition Scheme: • Contractor Recognition Scheme establishes minimum acceptable standards necessary for running a contracting company and for supervising building and construction works; • cidb encourages contractors to be recognised by the cidb in terms of the best practices and standards that have been published • Scheme introduces a degree of uniformity in which contractors can present their performance and track record will assist clients to manage their risk and better assess functionality cidb aims to introduce developmental support for contractors in 2016/17 for emerging contractors to be recognised in terms of the Contractor Recognition Scheme; • • • around R 500 m developmental support over 5 years 30
B - Construction Industry Performance (CIP) Developmental Support: Best Practice Fee; (subject to Board approval) Item Assessment of prior learning (APL) Top-Up training in line with cidb Competence Standard Construction Management Systems (CMS) Mentoring on CDPs Contractor Performance Reports; Adjudication Sponsorship of Construction Mentor Training (C-Mentor) World-Skills Rm; 5 Year Total 23 Number; 5 Year Total 4 600 Contractors 17 2 125 Contractors 102 2 040 Contractors 207 1 380 Contractors 5 100 Contractors 5 179 Mentors 67 13 400 Learners Unit 31
B - Construction Industry Performance (CIP) • Roll-out of cidb Register of Professional Service Providers (Ro. PSPs): • cidb has initiated consultations with stakeholders on the development of the cidb Register of Professional Service Providers • Draws on learning from the cidb Register of Contractors, industry practice and international practice • Grading based on best annual turnover, registered professionals, track record • Intended that draft regulation will be published for public comment in 2016/17 pto 32
B - Construction Industry Performance (CIP) • Enhance roll-out of cidb Skills Strategy comprising: • cidb Standard for Developing Skills through Infrastructure Contracts: • • • cidb Employment Skills Development Agency (ESDA): • • required for implementation of cidb Standard for Developing Skills rotates learners between construction projects to obtain required experiential learning monitors progress of learners (logbooks, etc) cidb Post Graduate Conference • • implemented through cidb Project Assessment Scheme around 6 000 learning opportunities per year for FET learners / artisans Held biennially Doctoral Workshop: • Held biennially - to be held in NMMU in 2017 33
B - Construction Industry Performance (CIP) • Skills Strategy cont…… • World. Skills to • • promote youth and skills enhance the status of all vocational educational channels cidb to organize sector and trade specific regional, provincial and national World. Skills competitions Participantion in the World. Skills international competition once every two years • Collaboration with DHET and CETA • cidb is facilitating the establishment of World. Skills South Africa Construction Chapter; cidb is targeting regional and national competitions in the construction sector in 2016, and participation in a minimum of one trade in the 2017 international World. Skills Competition • 34
B - Construction Industry Performance (CIP) Monitoring the performance of the industry: • Provides deep understanding of construction industry • Annual reports on state of transformation, contractor development, employment, supply and demand • Quarterly reports on business conditions • Status reports: • Drivers of the Cost of Construction (2016) – • with DPW Reducing Red Tape in Construction (2016) 35
2015 Construction Industry Indicators Contractor • Quality Decreasing satisfaction of performance of contractors by clients and construction quality: • likely to be due to slowdown in infrastructure spend, increasing competition, reducing profit margins 36
Employment and Labour in Construction (December 2015) • cidb report notes the increase in labour unrest and its negative impact on the delivery of government infrastructure: – due to unrealistic community expectations or to other community based political issues – usually involving Community Liaison Officers (CLOs) and Ward Councillors • The cidb is developing recommendations in this regard: – standardisation of contract participation goals (CPGs) – grievance procedures and resolution mechanisms 37
C – PROCUREMENT AND DELIVERY MANAGEMENT 38
C - Procurement & Delivery Management (PDM) • • • Infrastructure Delivery Management Client Recognition Scheme Prompt Payment Client capacitation Compliance Forensic investigations 39
C - Procurement & Delivery Management (PDM) • Infrastructure Delivery Management • Align Gateway Reviews to requirements in the National Treasury’s Standard for Infrastructure Procurement and Delivery Management. A Gateway Review System requires decisions to be made before proceeding from one stage in a project to the next. A Gateway Review process is designed to provide independent guidance and assurance that projects are successfully delivered 40
C - Procurement & Delivery Management (PDM) • Client Recognition Scheme – Develop framework for a Client Recognition Scheme to encourage performance improvement in infrastructure procurement and delivery by government departments – Intent to work with National Treasury to develop a framework for a Client Recognition Scheme – Elements of the Scheme to include: • • Client performance reports Competence Standards and Framework for Construction Procurement Alignment to the IDMS and Gateway reviews Alignment to Auditor General reports on audit outcomes, budget spend, and delayed payments 41
C - Procurement & Delivery Management (PDM) • Prompt Payment – Finalise process towards draft regulations to provide recourse to suppliers, on late payment which is threatening the sustainability of the construction industry and the growth of smaller contractors and subcontractors – Introduce payment of automated interest on invoices not paid within 30 days – Regulations are currently being subjected to a constitutional test with the Office of the Chief State Law Advisor 42
C - Procurement & Delivery Management (PDM) • Client Capacitation • • The cidb provides training and capacitation to all organs of state on various elements of the cidb prescriptions The training is conducted at no cost to clients The initiative seeks to train government officials on cidb prescripts to facilitate compliance Complexity, level of skills and competence required prompted the cidb to develop the Construction Procurement Competence Standard for public sector officials. The rollout of this standard is to be done in collaboration with the National Treasury & Office of the Chief Procurement Officer (OCPO) as it straddles the procurement reform initiatives of the NT. 43
C - Procurement & Delivery Management (PDM) • Legal and Compliance – Development of standards for a Client Integrity Management System • • Bringing down levels of fraud and corruption within government Setting standards & transparency requirements within the procurement value chain in the cidb SFU – Anonymous fraud reporting hotline • • • External to the cidb Reports are received and investigated Pertain to matters external and internal to the cidb • • • Under investigation Concluded / Sanction (where applicable) High Court matters – Quarterly reports submitted to the cidb Audit and Risk Committee on all cases 44
C - Procurement & Delivery Management (PDM) • Compliance Monitor for the Public Works Family and other departments as at the end of December 2015 45
C - Procurement & Delivery Management (PDM) • Forensic investigations • • CIDB conducts compliance monitoring and forensic investigations on compliance to the cidb prescripts and the Code of Conduct. For forensic investigations, reported cases are internally investigated and legitimate cases are handed to external experts Where parties are found guilty, a formal enquiry process is followed. An Investigating Committee made up of external legal team hears the case using the “Adi Alterem Partem” rule. Sanctions issued on behalf of the Investigating Committee are published on the cidb website. 46
C - Procurement & Delivery Management (PDM) 47
D – PROVINCIAL OFFICES AND CONTRACTOR DEVELOPMENT 48
D - Provinces and Contractor Development (PCD) a) Enterprise Development b) Monitoring contractor development c) Efficient and effective contractor registration 49
D - Provinces and Contractor Development (PCD) • Enterprise development: • Expand entrench NCDP awareness and implementation of Contractor Development Programmes (CDPs): • increase alignment of Contractor Development Programmes (CDPs) to the National Contractor Development Programme (NCDP) • rollout NCDP to local government • Strengthening the enabling environment for Contractor Development: • • harmonise cidb cross programme contractor development initiatives strengthen collaboration and partnerships locally and internationally • Enhanced monitoring and reporting on Contractor Development Programmes • Capacitating clients for contractor development through awareness and programmatic support 50
Expand entrench NCDP awareness and implementation of CDP (CDPs): Lessons learnt Key NCDP elements and principles: Alignment: • Ensuring sufficient in-house or outsourced capacity for the management of the CDP • Almost all CDPs still suffer from appropriate human resource constraints; most staff are not sufficiently skilled on contractor development. Provincial Offices Assisting • Setting targets for budgets, number of projects and contractors to be developed • Ensuring continuity of appropriate work for the duration of CDP • Most active CDPs have clear objectives, contractor targets but no budgets. This has been highlighted as matter for urgent attention by the implementing clients • Exit from programme on the basis of achieving predefined criteria • Reporting to the cidb on contractor development initiatives using prescribed reporting mechanisms • Development of contractors still not structured to achieve measurable improvement in-term of NQF level due to lack of funds for training. Being addressed in conjunction with the CETA • Improvements but slow 51
D - Provinces and Contractor Development (PCD) Enhance monitoring and reporting on contractor development Currently there are 18 CDPs reporting using our CDP Monitoring System, with a total of 937 contractor registered. 400 350 300 250 200 Series 1 150 100 50 EC GP KZN LP NW WC NC FS 316 73 355 76 90 27 0 0 0 EC GP KZN LP NW WC NC FS 52
D - Provinces and Contractor Development (PCD) Enhance Monitoring and reporting on Contractor development cont. • The cidb has introduced electronic monitoring system of contractor development programmes with the following benefits: • • Standardised reporting Single point of reporting User friendly system Real time monitoring for cidb 53
D - Provinces and Contractor Development (PCD) Enhance Monitoring and reporting on Contractor development cont. . Challenges: • • • Some clients have registered Contractor Development Programme but have not yet added contractors The current system captures only contractors developed using the direct targeting strategy. (It is envisaged to expand it to include contractors developed using indirect targeting. ) Uptake of the system by client is quite slow. (creating awareness and client capacitation will be intensified) Addressing these challenges will significantly increase the number of contractors participating in CDPs. 54
D - Provinces and Contractor Development (PCD) • Efficient and effective registration and support services 98% of compliant Grade 1 applications processed within 48 working hours 55
V. ORGANISATIONAL REDESIGN (OD) PROJECT 56
Background of OD • • • The cidb Board wants to implement an organisational structure that will enable them, not only to achieve the mandate, but to better service the cidb customers and stakeholders in general. To achieve this, an organisational architecture project was launched which would be performed in two phases. The services of Holistic Human Resources (H 2 R) were contracted to execute Part one of the project. Part one dealt with the review and assessment of the cidb “As. Is” situation. Part two will be dealt with from April 2016 and this is the more detailed phase that will deal with the re-configuration of the entity in terms of design, job profiling, skills assessments and competency assessments. Work Dynamics has been contracted to conduct the OD project. This will be done so as to optimize the notion of a “High Performance Organization” that delivers value. 57
Enabler Criteria: Weighted Scores 58
Results Criteria: Weighted Scores 59
Mandate • • No golden thread running from mandate to process, organisation structure, job profile and ultimately the incumbent filling a post. This principle is the backbone of creating and maintaining organisational architecture. Mixed reaction towards the current cidb mandate - lack of a common view and interpretation. Current circumstances call for a relook to make mandate relevant. Too much focus on contractor’s register - need to focus more on other functions e. g. transformation and development. Stakeholders (Board, Exco, Management, DPW, etc. ) are clearly sitting at different levels of understanding and interpretation of terminology such as transformation, regulatory, development and influencing - creates a problem for the HOW. There are various interpretations of the mandate at various levels. The bottom line is that understanding should be much broader in terms of expanded transformation and development functions. Alignment required between cidb’s mandate and departments e. g. Public Works and Human Settlements. A total and thorough review of the cidb mandate is required - if the mandate changes the entire cidb will have to realign to it. 60
Strategy • • Should be a closer link between strategy/risk management/audit. Quality (or continuous improvement) programme missing. If quality improvement does take place, it is in isolation and not in a concerted manner. Strategic planning done for compliance sake (ticking the boxes) rather than an attempt to move the cidb forward. There also seems to be a lack of sufficient capability and capacity to ensure: – Strategic planning is done in an integrated way (no silo planning); – Alignment between national and provincial strategy, processes and structures; and – Adequate strategic measurement and performance management. Formal identification and definition of a business model, supported by an operating model and value chain is also not prevalent. The issue of branding and marketing the cidb is falling short from expectations. While not directly related to the hard issue of strategy, this soft issue of culture seems to be a burning issue. Not obvious if people in the cidb are sharing and living up to a common organisational-wide value system. If there is a value system, it is mostly undetected, below the radar and not ingrained in the moral fibre of the organisation. 61
Capability Maturity Model 62
Business Processes • • Although examples were found of processes managed at level 3, the norm is level 2. It is characteristic of this level that some of the processes are repeatable, possibly with consistent results. • Process discipline is unlikely to be rigorous, but where it exists it may help to ensure that existing processes are maintained during times of difficulties. , these were isolated and were not regarded as the norm enterprise-wide. • It is characteristic of processes at this level that there are sets of defined and documented standard processes established and subject to some degree of improvement over time. 63
Recommendations of the analysis – enterprise architecture • • • Continue with the process of reconfiguring the organisational architecture. Include findings and recommendations from the status quo report into the strategic and annual performance plans. Confirm/Define/Redefine cidb’s mandate. Develop a business model, supported by an operating model, value chain, value proposition and business processes. Redefine/Define process norms and standards based on scientific principles. Develop the correct capacity levels and capability requirements. Conduct job grading based on readjusted job descriptions. Perform benchmarking to ensure best practices are incorporated into the new design. Continuously consult stakeholders such as the DPW, National Treasury and customers to ensure a design consistent with their requirements. Address the issues identified in the culture survey in tandem with the organisational architecture design. Intensify initiatives to combat fraud and corruption - lifestyle audits, security vetting / security clearance of employees, consider some of the cidb divisions to be national key points. Consider a system of rotating programme and senior managers. 64
Design Principles – for OD • Work centric. • Accountability for end-to-end processes. • Core purpose of the function and process cohesion. • Focused delivery versus organisational projects. • Designing for client service. – – – Give customers choice; Provide access anytime anywhere; Enable customers to help themselves; Personalise every customers interaction; Know your customers. • Design for IT integration. • Horizontal Structures. • Maturity. 65
Conclusion of the enterprise architecture analysis • • • Despite many problems, there are rays of hope; people, systems and processes that can be gelled to take the cidb to a high performance entity. Redesigning cidb’s organisational architecture will require a fundamental rethinking and thorough redesign of mandate, strategy, process, structure and job designs to achieve dramatic improvements in service delivery and performance. Hard issues are perhaps easier to focus on because they are more visible, recognizable and measurable - in some ways they also seem easier to address. However, the underlying cause of hard issues is often found in the soft, human issues – the fundamental attitudinal or mind-set issues of people. Soft issues consist of less tangible aspects that are much more subjective and less easily measured or charted than the hard issues. To improve performance, both the hard and soft issues need to be tackled in tandem. 66
Way-forward 2016/17 – on OD • • Project execution Ancillary projects – Skills Audit – Competency assessments – Job profiling – Performance management system revamp etc. • Possible outcomes: – Revised structure • • • Re-definition of jobs/specs Review of job grades New placements 67
VI. CEO’s OFFICE 68
VI. CEO’s Office • Strengthen and maintain relationships with stakeholders through effective communication • • Stakeholder engagement Information dissemination 69
VI. CEO’s Office • Stakeholder engagement • • Constitute National Stakeholder Forum (NSF) Convene meetings of National Stakeholder Forum and of working committees Finalise a 2 -year programme of action for the National Stakeholder Forum (Section 13 of the cidb Act of 2000) Engage stakeholders provincially through 9 Provincial Stakeholder Liaison meetings to broaden consultation Consult stakeholders on planned amendments to the Construction Industry Regulations aimed at improving contractor registrations, including Grade 1. Consulting stakeholders on critical transformation issues emerging from NSF and the cidb’s strategic and policy response Institutionalise good practice stakeholder engagement models Consultation with staff on planned organisational development to align cidb structure, processes, system, and skills to cidb mandate 70
VI. CEO’s Office • Information dissemination • Strengthen cidb capacity and tools to disseminate information to stakeholders including, among others: • • • Advertising Website General mass media Publications Sms alerts to registered contractors on advertised construction tenders Strengthen leadership capacity to communicate to staff in response to cidb culture study findings including among others: • • Establishing the intranet Staff information sharing forums 71
VII. GOVERNANCE MATTERS 72
Plans for 2016/17 • • Shareholder Compact with DPW Performance assessment review of the Board and its committees Review of the Board committees Finalise inputs to the review of the cidb Act • Embark on a review of the cidb Strategic Plan and consequently the Annual Performance Plans – A PESTLE analysis will be used as a framework or tool to analyse and monitor the macro-environmental (external environment) factors that have an impact on an organisation. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis. PESTLE looks at the following elements in terms of the environmental scanning: political, environmental, societal, technological, legal and economical 73
Training on Organisational Performance Management The 11 -Steps to Excellence hybrid, outcomes-based Methodology™ [™Institute for Performance Management] 1. Institutional arrangements and stakeholder analysis 2. Self and the organisation 3. Strategic planning 4. Performance reporting 5. Performance management 6. Performance risk management 7. Performance-based budgeting 8. Annual and operational planning 9. 0 versite and performance evaluation 10. EPM and competency development 11. Organisational design and development 74
VIII. RESOURCES - HUMAN CAPITAL - FINANCIAL 75
Staff Establishment Construction Registers Service (CRS) Construction Industry Performance (CIP) Procurement & Delivery Management (PDM) Provincial Offices & Contractor Development (PCD) CEO’s Office Corporate Services Total 2015/16 64 9 9 2016/17 64 9 9 76 76 13 53 224 • Review of Structure is dependent on proposed organizational design • No changes effected from 2015/16 76
Budget per programme Programme Construction Registers Services (CRS) Construction Industry Performance (CIP) Procurement & Delivery Management (PCD) Provincial Offices & Contractor Development (PCD) CEO's Office Corporate Services Total Adjusted Medium-term Appropriation Expenditure Estimates (Rk) 2015/16 2016/17 2017/18 2018/19 29 607 22 236 26 335 27 915 11 170 9 708 11 225 11 041 13 078 14 019 29 870 29 380 35 029 37 131 13 329 49 897 145 098 12 619 14 904 15 798 41 013 48 634 51 372 125 997 149 477 158 423 11 497 12 188 77
Budget per economic classification Adjusted Medium-term Appropriation Expenditure Estimates 2015/16 2016/17 2017/18 2018/19 Economic classification Current payments Compensation of employees Goods and services Professional Fees Payments for capital assets Capital Equipment Total 142 098 81 354 33 899 26 845 120 997 86 343 24 552 10 102 144 477 91 600 42 778 10 099 153 423 97 097 45 610 10 716 3 000 145 098 5 000 125 997 149 477 158 423 78
Projected revenue and expenditure Adjusted Medium-term Expenditure Appropriation Estimates 2015/16 2016/17 2017/18 2018/19 Revenue Government grants Finance Income Registration fees Total revenue 65 626 8 568 70 904 145 098 52 059 6 178 67 760 125 997 74 984 3 940 70 553 149 477 75 203 4 334 78 886 158 423 Current expenditure Compensation of employees Goods and services Professional Fees Total current expenditure 81 354 33 899 26 845 142 098 86 343 24 552 10 102 120 997 91 600 42 778 10 099 144 477 97 097 45 610 10 716 153 423 5 000 Nil Capital expenditure Capital assets acquisition Budgeted Surplus 3 000 Nil 79
Revenue contribution splits per grades % Contribution to revenue per grades(Cummulative) 2% 33% 39% 19% Grade 1 Grade 2 -3 Grade 4 -6 Grade 7 -9 Fines & W/Offs 7% 80
Revenue comparison year Cumulative revenue per month (y/y) 80, 000. 00 70, 000. 00 60, 000. 00 50, 000. 00 2013/2014 (Act) 40, 000. 00 2014/2015 (Act) 2015/2016 (Act) 30, 000. 00 20, 000. 00 10, 000. 00 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 81
Budget cut as announced by National Treasury Adjusted Medium-term Expenditure Appropriation Estimates 2015/16 Government grants reduction Baseline reduction 2015/16 and 2016/17 MTEF revision of 2016/17 – 2018/19 15 760 Total effect of budget cut 15 760 2016/17 2017/18 2018/19 23 640 Total 39 400 10 000 15 000 20 000 45 000 33 640 15 000 20 000 84 400 82
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Thank You 84
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