Effective management of performance information requires a clear understanding of different responsibilities, and the structures and systems involved in managing performance information.

The NLC aims to ensure that the needs of its stakeholders are satisfied effectively, efficiently and economically. The development, implementation and maintenance of a performance management policy for the NLC is critical in meeting the above need.

Performance Management (PM) within the NLC is an integrated management strategy that seeks to:

• create a shared vision of the purpose, aims and values of the NLC;
• to help stakeholders and employees understand their part in contributing to the achievement of organisational aims and goals and maintaining organisational values; and
• in so doing manage and enhance the performance of individual employees and that of the NLC as a whole.

The performance management process comprises planning, budgeting, monitoring and reporting of performance. The diagram below clearly shows the relationship between the processes and also highlights the executive authority’s accountability for the process to Parliament.

 

 

Summary of reporting legislative requirements are tabled below:

Performance management process	NLC
Strategic planning	Treasury Regulations – chapter 30
Budgeting and implementation planning	Treasury Regulations – chapter 30
Implementation	Treasury Regulations – chapter 30
Reporting (in-year and annual reporting)	PFMA, Section 55(2)(a) and Treasury

The NLC’s planning aims to undertake the following:

• A uniform approach to ensure compliance with the PFMA in relation to performance management and reporting.
• Promote an open and transparent management of performance information strategy and measurement process.
• Uphold good corporate governance principles.
  
  

To identify gaps in the capacity of the NLC and to address them

Performance and capacity are interrelated concepts. Organisational performance arises from the use of capacity. Assessing performance information therefore identifies areas where capacity needs building. The NLC will ensure that where gaps in its institutional or human resources capacity are identified, that those gaps will be filled.

To improve the effectiveness, sustainability and efficiency of service delivery

Effectiveness is the degree to which a service, project or programme (activity) undertaken or delivered by or on behalf of the NLC supply the needs of the stakeholders in quantitative and qualitative terms. In order to improve the effectiveness of service delivery, the NLC will seek to continuously improve:

• the quality and coverage of services (i.e. the proportion of people who benefit from or receive a service to all those who need it);
• the functional and financial accessibility of services;
• its information about the nature and the extent of the need for services;
• gathering correct information about the impact (i.e. the change of status that can be attributed to a particular intervention) of services on the lives of people; and
• the setting of clear, transparent and measurable indicators and targets against which the performance of the entity can be measured. Efficiency is the extent to which the NLC produces an output of the desired quality in the desired quantity with the least possible resources. It relates to the quantum of the human, financial and other resources consumed and, where applicable, time taken to deliver each service, project and programme at the specified quality and in the specified quantity. It has to do with how well resources are used to produce specified outputs.
• In order to improve efficiency the Board will ensure that:

  i. the Strategic Plan includes SMART (specific, measurable, achievable, relevant and time-bound) objectives, key performance areas (KPA) and key performance indicators (KPI);

  ii everybody in the NLC knows what those objectives, KPAs and KPIs are;

  iii. standards to measure the achievement of objectives and the use of resources exist;

  iv. continuous actions to improve efficiency are undertaken; and

  v. employees are committed and have the skills and other attributes necessary for continuous improvement of performance.

To ensure effective, economical and efficient use of resources

Effective use of resources requires that resources are used in such a manner to supply the real needs of stakeholders. In order to ensure the effective use of resources, the NLC will improve its information gathering system to provide accurate and complete information to all stakeholders which will address the needs and priorities of all stakeholders and that those needs are quantified.

Efficient use of resources requires that the quantum of the human, financial and other resources consumed and, where applicable, time taken to deliver a service, project and programme at the specified quality and in the specified quantity must be known and continuously reduced. To ensure efficient use of resources the entity will:

a.	set standards to measure the achievement of objectives and the use of resources;
b.	continuously undertake actions to improve efficiency; and
c.	promote the commitment of people within the organisation and that they have the skills and other attributes necessary for continuous improvement.

To promote the loyalty, morale and performance of employees

The performance of the NLC will only improve if all its employees work smarter and better. Therefore, an important component of performance management is an employee performance appraisal system which must be developed in such a way that employees know exactly what would be expected of them and that employees would be involved in setting their own performance objectives.

 

The strategic goals were achieved through the implementation of the following programmes:

Programme 1: Administration and support services

The purpose of the programme is to provide leadership and support to the entire organisation, particularly the core business for effective service delivery. It focuses on general administration and provision of support services to ensure compliance and governance.

	Office of the Commissioner
Description	Corporate strategy development and implementation
	Corporate performance monitoring and reporting
	Governance systems development and implementation
	Internal controls implementation and risk management
	Legal services functions
	Efficiency improvement and systems development
	Human resources management functions
	Legal services

The office of the Executive is constituted by Strategic Planning and Reporting; Internal Audit; Risk Management; Company Secretary; Legal Services and Human Capital Management.

	Finance
Description	Financial planning and reporting
	Development of financial controls and implementation thereof
	Development of procurement strategy and policies in line with PFMA
	Ensure compliance with statutory requirements from a finance perspective
	Payroll function
	Facilities management

The Finance division is constituted by Financial Accounting (NLC & NLDTF), Supply Chain Management, Facilities and Management Accounting Departments.

	Information communication technology
Description	To provide vision and leadership for the planning, implementation and management of information and communications technologies (ICT) that support the National Lotteries Commission’ business
	Direct and manage information communications and technology strategic plans, develop IT policies and governance framework
	Provide leadership and management of ICT services, network communications, transactional computing processes, information management and security
	Developing and maintaining a responsive, reliable, and secure ICT infrastructure
	Maximise the value of technology investments
	Ensure IT system operation adheres to applicable approved policies and governance framework
	Direct development and execution of an enterprise-wide disaster recovery and ICT service continuity plan
	Knowledge management

The Information Technology division is constituted by Application and Development; Infrastructure and Network, Business Analyses and the Support/Solutions Delivery departments.

Programme 2: Compliance and regulation

The purpose of this programme is to ensure compliance and to regulate the entire lottery industry in line with the NLC mandate. It ensures that mechanisms are instituted to ensure compliance with applicable laws and regulations as they relate to the lotteries environment. The programme also plays a role in ensuring adequate monitoring, regulation and policing of lotteries.

	Regulatory compliance
Description	Ensuring that mechanisms are instituted to ensure compliance with applicable laws and regulations as they relate to the lotteries environment
	Monitor, regulate and police society and other lotteries
	Develop and implement enforcement strategy
	Develop and implement compliance strategy
	Develop, implement and monitor service standards
	Education and awareness for voluntary compliance
	Monitor and evaluate the implementation of funded projects

The Compliance Division is constituted by the Lotteries Compliance and Compliance Enforcement departments.

Programme 3: Grant funding and service delivery

The purpose of this programme is to provide administrative support to the distributing agencies and to ensure that the grant funding is distributed according to the legislated mandate. It is responsible for the management of grant funding processes and ensures evaluation of the distribution impact of grants.

	Grant funding
Description	Develop and implement an integrated grant funding strategy
	Develop and implement grant funding policies
	To ensure funding is distributed efficiently and effectively to deserving causes in line with national legislation and NLC policies
	Provincial office support
	Communications, education and awareness, marketing and stakeholder management
	Monitoring and evaluation
	Policy and research

	Service delivery and support
Description	Overall management of the grant making processes in support to the distributing agencies and determine the effectiveness of the grant making process
	Provide clearly defined functions of provincial offices aligned to grant funding processes
	Develop functional strategies
	Ensure implementation of streamlined grant funding processes
	Develop and implement service improvement plan

The Grant Funding and Service Delivery programme is constituted by grant funding operational support, the nine provincial offices, business development and organisational monitoring and evaluation departments.