Lekwa Local Municipality 2013/14 - Co-operative Governance and ...

(c) Models help align strategic planning and performance management by directly linking keyperformance areas to priority areas in the strategic plan, in the case of municipalities, it isthe IDP;(d) Having a clear model allows a municipality to agree on what areas of performance should beintegrated, managed and measured and what values should inform indicators and standardsof achievement, based on the context that best fits the municipality.6.7 Criteria of a Good Performance ModelThe following characteristics should guide the choice of a performance model:(a) It must be simple to develop and its implementation must be able to be cascaded to thelower employee levels with ease and must be easy to replicate at all other levels;(b) The model must ensure that there is a balance in the set of indicators being compiled;(c) The balance created by the model must encompass all relevant and priority areas ofperformance;(d) The key performance area perspectives must be aligned to the IDP objectives;(e) The model must be able to timeously diagnose blockages in the system;(f) It must be easy to replicate at all levels; and(g) It must integrate with other municipal systems and processes.6.8 The Municipal Balanced Scorecard Performance ModelThe Municipal Balanced Scorecard Model (BSCM) requires the use of scorecards as a systematic approach toassessing internal results that ensures that there is a balance in the set of indicators being compiled. It hasbeen developed as a means to measure performance by combining both financial and non-financial indicatorsto create a balance between financial and other critical functional areas in the Municipality. By combiningfinancial and non-financial indicators in a single report, the Balanced Scorecard aims to provide managers withricher and more relevant information about the activities being managed than can be provided by financialindicators alone. The Balanced Scorecard model groups indicators into four perspectives namely the financial,customer, internal and learning and growth perspectives. Within the municipal context, the BalancedScorecard has to be adapted to measure performance within developmental areas that are relevant tomunicipal service delivery and local government. Strategic planning through the IDP requires thatmunicipalities must align their key performance areas around all the areas that cut across every functionalarea of a municipality. The municipal scorecard will measure the Municipality’s performance according to thefollowing perspectives and aligned to the Key Performance Areas:(a) Municipal development perspective: to assess whether the desired development indicatorsaround the performance areas of social and economic development is achieved (LocalEconomic Development);(b) Service delivery perspective: to assess the municipality’s performance in the overall deliveryof basic and infrastructural services and products (Basic Service Delivery);(c) Institutional development perspective: it relates to input indicators that measure thefunctioning of the municipality in areas such as human resources, strategic planning andimplementation, performance management and all other indicators that seek to develop andmanage the municipal institution (Municipal Transformation and OrganisationalDevelopment);(d) Financial management perspective: to measure the municipality’s performance with respectto management of finances (Financial Viability and Management);(e) Governance process perspective: measures the municipality’s performance in relation to itsengagements with its stakeholders in the process of governance structures and goodmunicipal governance processes (Good Governance and Public Participation).The Performance Management framework to be adopted by Lekwa Local Municipality as that of the MunicipalBalanced Scorecard sets out:(a) The objectives and benefits of a performance management system;(b) The principles that will inform the development and implementation of the system;210 | P a g e