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REVIEW OF THE SENIOR MANAGEMENT SERVICE

HR FORUM

20 June 2006

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BACKGROUNDThe SMS Review Report was presented to MANCO and MINEXCO as the initial stages of consultation. Comments were received from managers, the DG and the Minister

After rigorous internal consultation processes with managers from the relevant units and components (e.g. LS, LR, M&E, EP, AC, & SAMDI), the recommendations were reworked and are here forwarded for consideration

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OVERVIEW • Summary of TORs• Methodology• Findings

– Recruitment and Selection– Retention– Mobility– Training– Mobility– Ethics– Quality of Management– Service Delivery– Capacity to Deliver

• Recommendations• Conclusion

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Terms of ReferenceTerms of Reference

The assignment identifies three key deliverables and milestones:

1. To determine, examine and investigate the extent to which interventions that were introduced have-

improved the recruitment, selection and retention of senior managersimproved greater mobility to enable government to deploy individuals across departments at national and provincial levelimproved training and developmentpromoted a high standard of ethical conductestablished a more appropriate labour relations framework

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Terms of Reference (cont)Terms of Reference (cont)

2. Assess the impact that the introduction of the SMS initiative has had on-

The quality of managementService delivery, and The capacity to implement economic developmental programmes of the developmental state

3. Make recommendations for the further improvements or interventions

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MethodologyMethodology

• Primary research:• Survey of senior managers• Questionnaire to HR managers• Focus group discussions with middle managers• Key informant Interviews with recruitment agencies

• Secondary research:• PERSAL• Annual reports / AG reports• ENEs• Business plans / Strategic plans• Other relevant documents

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Recruitment and SelectionRecruitment and Selection

• The recruitment process takes an excessively long time• A larger pool of applicants from outside the public sector is being

attracted for SMS positions. However, the majority of appointments are still from within the public sector

• Competency assessments are not being used across the board despite positive comments from departments that do make use of them

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RetentionRetention• Almost 73% of senior managers hold post graduate qualifications• Factors identified by respondents that cause SMS members to

leave their posts were-– promotion within the public service– financial incentives outside the public service– professional prospects outside the public service

• The proportion of terminations, particularly resignations, to the total number of SMS has fallen over the last four years

• The most significant factor that influences SMS members to remain in their posts is the perceived capacity to deliver on the mandate given the scale of the challenge

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TrainingTraining

• Many believe that training opportunities are sufficient, but lack only the required time to attend

• Others believe that training does not receive adequate attention, that opportunities are not relevant and that it has no bearing on service delivery

• While the vast majority of respondents identified induction and training as important to support them in their performance, the greatest unmet need is for mentorship, coaching, and peer exchange

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MobilityMobility• Movement of senior managers within the public service not as

high as expected. Only 2.5% (03-04) to 5.3% (04 to 05) moved either department or salary level according to PERSAL

• Women and black SMS members are more likely to move positions due to the increased demand for them in the senior ranks to fulfil EE requirements

• 47% of respondents in the interviews have been in their current post for two years or less

• There is very little use of the relaxed provisions for strategicredeployments and secondments

• The attitude of SMS members towards being redeployed or seconded is very positive especially to promotional posts, provided that their needs are catered for and the requirements of the new position are within their area of competence

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EthicsEthics

• The PFMA has had as much, if not a greater impact on the accountability and transparency of the senior managers, than theSMS framework

• Most senior and middle managers are of the opinion that whistle blowing protection measures in place are insufficient to encourage the reporting of corruption and/or criminal acts

• Public Service Code of Conduct not seen as influencing conduct of public servants

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Quality of ManagementQuality of Management

• The general perception is that the Performance Management and Development System (PMDS) is conceptually sound; however, implementation has not led to any significant improvement in accountability or performance of senior managers

• Middle managers generally have a poor opinion of the effectiveness of the SMS initiative in improving the quality of management and/or service delivery

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Service DeliveryService Delivery

• Based on the annual reports submitted to Parliament by departments, the average level of achievement of service delivery targets is less than 50%, with few exceptions

• The instruments used to monitor performance are not sufficient for supporting performance management

• Senior managers cite ad hoc meetings and unscheduled travel second only to staff and other resource shortages as the key impediments to their achievement of performance targets

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Capacity to DeliverCapacity to Deliver• Nearly 72% of senior managers interviewed hold post graduate

degrees, however there is no way to establish whether these qualifications are related to their mandates and responsibilities

• The capacity of departments is coming under ever increasing strain as the workload increases from year to year

• There does not seem to be a commensurate increase in resources, especially personnel, to support implementation of the increased workload

• Planned and unplanned outsourcing is on the increase, even as the proportion of projects that are postponed or not implementedis rising

• Vacancy levels across all ranks are unacceptably high, and are rising over time

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RecommendationsRecommendationsRecruitment and SelectionCertain aspects of recruitment and selection to be centrally coordinated through the centralised information management system.- to facilitate deployment, headhunting and

competency assessment processes. Departments will maintain the authority and final decision making to recruit and select, however they will be guided by national policy covering the three spheres of government

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RecommendationsRecommendationsRecruitment cont….– SMS handbook will provide the guidelines– To strengthen recruitment processes the following

strategies can be considered:• Utilise accelerated development programme for middle

managers to recruit at entry level of the SMS• Provisions for internal headhunting must be strengthened and

linked to the centralised information system • Strengthening head-heading provisions (possible amendments

to Chapter 2 of the SMS Handbook).• Deviations to be considered by MPSA only in exceptional

cases.

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RecommendationsRecommendationsDeployment- Information on DGs at national level is centralised at the DPSA,

this makes it easy to inform the relevant Ministers to facilitate strategic deployment. The same could be done on all SMS levels.

- Provisions for strategic mobility and deployment should be formally structured and supported by a framework of appropriate incentives

- the implementation of strategic deployments must be clearly defined in terms of the PSA and better communicated

- Section 14 of the Act must be extended to give authority to the MPSA to deploy SMS members under specific circumstances in collaboration with the respective EAs

Consider:linking strategic deployments with the use of accelerated development programme (sustainable pools)

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RecommendationsRecommendations- Competency assessments

- The use of competency assessments shouldbecome compulsory for both development andselection as the voluntary implementationcreates the following problems:

- It becomes difficult to create a centralised database of generic management competencies that are available in the SMS

- There is no control in respect of whether the assessment tools used are valid and are in line with the competency framework of the public service

- Using different and sometimes inconsistent assessment tools may result in labour practice challenges

- Strengthen the capacity of GICS in DPSA to continue providing its support in areas of competence

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RecommendationsRecommendationsThe following are the benefits of compulsory competency assessments:- Comprehensive selection strategies are applied and

therefore confirm that only those who possess the required competencies are appointed.

- A centrally managed comprehensive database can be developed to facilitate headhunting and deployment.

- A centrally coordinated and managed database can be linked to skills database can ensure targeted training interventions

- Cost saving for government- The rendering of centrally coordinated recruitment and

selection functions as explained above must be linked with the strengthening of the SMS unit

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RecommendationsRecommendationsCompetency assessment can strengthen theselection process if used in conjunction with otherselection tools, e.g. interviews, security clearanceand reference checks.• Standardised contracting with service providers will be

provided centrally as a service by DPSA • Standardised procedures will be determined centrally at

DPSA• The review and validation of competency assessment tools

will be done centrally• Information on competency profiles of SMS members can be

stored, maintained and reviewed centrally by DPSA

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RecommendationsRecommendations

• Reference checks must be done prior to the interview, and a comprehensive report be shared among all members of the interview panel.

• Referees must be held accountable and must write a comprehensive report on the candidate.

• Exit interviews must be conducted as a standard practice in all SMS positions in the public service and departments must be compelled to report that information to DPSA on a quarterly basis.

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RecommendationsRecommendations- Probation periods to be enforced

– Minimum probation period for SMS is 12 months however no mechanisms to monitor compliance. Probation period as prescribed must be enforced.

- Training and development for SMS members to be customised and informed by a proper needs analysis

– Urgent need for well-conceived orientation, induction, mentoring and coaching programmes for SMS members including DGs.

– Compulsory orientation and induction must be prioritised and should include the three CMCs as mandated by the MPSA as well as Project Management and provided in conjunction with SAMDI - (transitional measures for current SMS should be considered)

– PDPs developed when signing PAs must be based on competency assessment results

– Mentoring and coaching must be prioritised and be linked to PMDS where mentors are trained and recognised in terms of this system

- Guidelines to be developed in terms of training and development and included in the SMS Handbook.

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RecommendationsRecommendations

– Exposure to the coalface of service delivery as mandated by Cabinet must be strictly implemented and monitored.

– All study tours should be needs driven. (Contractual binding may be considered).

- Exchange programmes with regard to DGs may be considered.

- Managers are to be better equipped to deal with the many challenges posed by the dynamic environment and government priorities

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RecommendationsRecommendations- Ethical conduct to be inculcated at all levels of

the SMS- A culture of ethical conduct requires leadership at all

levels, as non-compliance has proved to be the major issue and sanction are not regularly enforced for non-compliance

- HODs must be held accountable for non-compliance and no follow-up on disciplinary measures, failure to do so should constitute a finding on their performance

- Prolonged suspensions, lack of closure on disciplinary actions of SMS members must also be seen as a performance finding on the supervisor

- Awareness of the Code of Conduct and the ethics chapter of the SMS Handbook must be enhanced through rigorous awareness campaigns.

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RecommendationsRecommendations

- Every member of the SMS must have a copy of the Code of Conduct, the Batho Pele principles and the SMS Handbook.

- more emphasis should be placed on the enhancement of ethical issues.

- Greater focus on prevention of corruption by strengthening internal processes

- Cooling-off period must be closely linked to disclosure framework and must be enforced

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Recommendations Recommendations cont.cont.- The functions of managing misconduct and

discipline of SMS members and protection measures for whistle blowers to be strengthened

-Awareness of the whistle blower protection measures through the PDA 2000- and the LRA for all employees is needed to alleviate fears in this regard

-The PSC hotline must be strengthened by bringing the provisions of PDA and LRA to the attention of employees

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Recommendations Recommendations cont.cont.- The PMDS for SMS to be strengthened through identified

mechanisms– All SMS member must be trained on the application and

implementation of the PMDS to ensure alignment with service delivery outputs

– Signing of PAs should include binding agreements on dates and time for performance appraisals

– Follow through on performance appraisals should form part of assessment

– Departments must apply stringent measures to ensure that all SMS members sign their PAs linked to the strategic objectives (Must start at the highest levels, adhere to deadlines)

– Culture of collective accountability to medium term targets should be established

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Recommendations Recommendations

– To link PMDS results with service delivery a 360 degree evaluation for HODs must be considered where recipients of services are clearly identified and their evaluation incorporated in the overall assessment of the HOD

– Auditor-General’s report must be considered when HODs performance assessments are done.

– Strategic plans and annual reports should be inextricably linked

– Reporting on performance against the targets should be a manadatory minimum in the annual report

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Recommendations Recommendations cont.cont.- Formal channels of communication with beneficiaries to be

established or strengthened - Existing mechanisms are sometimes inadequate or self-defeating.

It is vitally important that formal mechanisms are put in place to receive and respond to feedback from beneficiaries on services received

- Job profiles to be reviewed periodically to ensure its validaty

- All SMS vacancies to be filled as a matter of urgency- To address capacity to deliver on programmes and improve service

delivery, departments must prioritise the filling of vacancies in terms of organisational needs and approved budgets

- Establish closer links with further and higher education institutions to employ new entrants

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Recommendations cont.

- Elevate and capacitate the SMS unit in DPSA to effectively deliver on its mandate

– The capacity of the SMS unit within the DPSA must be significantly enhanced in order to make it more effective in supporting both the implementation of the original scope of the SMS initiative, and some of the recommendations made in this report

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ConclusionConclusionAccording to the Terms of Reference as outlined in slide 4 & 5, the research report confirms that since the establishment of the Senior Management Service in 2001, the SMS initiative reflects success in some of the interventions although there is room for improvement as indicated in the findings and recommendations in the following:

• Recruitment• The recruitment of high calibre of leadership and management skills has

seen a significant improvement because the levels of attracting internal and external candidates have dramatically increased.

• Selection• Selection of a high calibre of candidates has also improved since the

introduction of stricter mechanisms through the protocol document was introduced at DDG and DG levels.

• Competency assessments (although voluntary) have also improved the application of stricter selection mechanisms because of the interest it has attracted from departments and a significant improvement of a high calibre of candidates is yet to be seen when the system becomes compulsory.

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ConclusionConclusion cont.cont.Training and development• Training and development seem to be taking place as nearly every

senior manager has been exposed to one form of training i.e. workshops and conferences. However there are significant strides that have to be made to improve targeted training. There is also a need to link training with ASGISA and Joint Initiatives for Priority Skills Acquisition(JIPSA).

• The available framework makes provision for equitable access to training and development of senior managers, however if recommendation 10.4 is accepted, it will result in targeted training.

• There is need to align training with performance. The Core Management Criteria (CMCs) that have been mandated by the MPSA (Financial Management; People Management and Empowerment; Client Orientation and Customer Service if prioritised as training mechanisms and made compulsory will support improved service delivery. There must be monitoring attached to this requirement + Project Management (extra).

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ConclusionConclusion cont.cont.Retention• The findings indicate that senior managers stay longer in the

public service due to job security and the interest to contribute to service delivery for the country’s transformation (Director to DDG).

• Although a large number of appointments is made from within the Public Service, this should not be viewed as a negative but rather an indication that the public servants consider the Public Service as a lucrative career.

• Turnover has significantly improved at all levels of the SMS.

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ConclusionConclusion cont.cont.Mobility• Movement of senior managers from one department to another

occurs on the basis of transfers, either transversal or on promotion mostly initiated by the individual. Although it sometimes results in job-hopping therefore defeating the intentions of strategic mobility.

• Strategic deployment of SMS members is still to be improved if recommendation 10.2 is accepted.

• There is still a high number of SMS members at national than at provincial level where implementation actually takes place. SMS members are keen to be deployed therefore giving the MPSA more authority to deploy them will achieve the purpose.

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ConclusionConclusion cont.cont.Ethical Conduct

• Prescripts have been put in place; there is high degree of compliance, although the ideal of 100% has not yet been achieved. There is a need to introduce stricter non-compliance sanctions, and to embark on awareness campaigns. Future aspirations is to bring compliance of Financial disclosure to 100%, create awareness campaigns for the Code of conduct and monitor whether the Batho Pele Principles are applied when PAs are signed and Appraisals are done.

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ConclusionConclusion cont.cont.Quality of Management

• The PFMA seems to have had a powerful impact on the quality of management and accountability because of its stricter reporting requirements. Similar mechanisms to be contained in the PSA and Regulations can further improve the quality of management and service delivery.

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Future areas of research:

- Recommendations highlighted above are to be further researched prior to implementation thereof.

- Areas for research already conducted such as a Salary Review Panel, the Professional Association, job hopping, head hunting and reference checks need to be revitalised.

- Disclosure framework will have to be further researched and reviewed.