11. 1 Introduction
The City of Johannesburg identified the need for a Performance Management System (PMS) in the iGoli 2002 process. The PMS serves the purpose of ensuring that activities performed by employees are aligned with the overall objectives of the organisation. Specific steps taken to introduce the PMS include:

• The placing of the top two levels of managers on fixed-term contracts managed in terms of the PMS, and
• Capacity and monitoring mechanisms being put in place to ensure the successful delivery of performance through regular reviews, performance contracts and management development.

The existing PMS must be aligned with the need for another PMS as a core component of the City Development Plan . This will also assist Council in ensuring that the outcomes and achievements of the municipality are aligned to the development priorities and objectives of the City Development Plan and also to ensure that the City Development Plan has a direct bearing on the work of employees.

11.2 The PMS as a component of the City Development Plan
The PMS is a system of measuring the performance of the municipality (including outcomes and impact) in regard to the development priorities and objectives set in the City Development Plan. The PMS is also a means of ensuring accountability. Performance is measured through a number of pre-defined key performance indicators (KPIs).

The City is obliged to:

• Set appropriate KPIs as a yardstick for measuring performance, including outcomes and impact, with regard to the development priorities and objectives of the City Development Plan
• Set measurable performance targets with regard to each of the development priorities and objectives
• Monitor performance and measure and review performance at least once a year in regard to development priorities and objectives and against KPIs and targets set
• Take steps to improve performance where performance targets are not met, and
• Establish a process of regular reporting to Council and the public.

i. Development priorities and objectives
As discussed in Section 6, six Key Strategic Priorities have been identified by the Mayoral Committee for the City of Johannesburg. These are as follows:

• Economic development and job creation
• By-law enforcement and crime prevention
• Service delivery excellence
• Good governance/customer care/Batho Pele
• Inner City, and
• HIV/Aids.

ii. Setting KPIs
KPIs are defined as measures of performance. KPIs must be set as a yardstick to measure performance, including outcomes and impact, with regard to the development priorities and objectives of the City Development Plan.

KPIs must be finalised to measure the achievement of each of the six strategic priorities listed above. Section 10 of this document discusses the sectoral outcomes, outputs, and indicators for each sector. These should be distilled and combined with other existing information (such as the iGoli 2010 research) to define clear KPIs for each strategic priority and should be determined by stakeholder consultation.

iii. Setting performance targets
Measurable performance targets must also be set with regard to each of the development priorities and objectives.

Section 9 of the report discusses indicators and targets for each sector. These should be distilled and combined with other existing information (such as the iGoli 2010 research) to define clear performance targets for each strategic priority.

iv. Monitoring performance
Performance must be monitored on an ongoing basis. In conjunction with ongoing process, there should be a measurement and review of performance at least once a year in regard to development priorities and objectives and against KPIs and targets set.

The ongoing monitoring of performance in the City Development Plan should be carried out by the Corporate Planning Unit, to whom the responsibility for the management of the City Development Plan falls.

The annual performance review should be published as part of the City Development Plan.

v. Improving performance
The City should take steps to improve performance where performance targets are not met.

Both the ongoing review process and the annual performance review may conclude that a number of targets were not met. On deciding that a performance target has not been met, it is critical that the Corporate Planning Unit clarifies remedial action on how the target will be met in the near future or how the KPI might be revised.

vi. Reporting to council and the public
The Corporate Planning Unit must establish a process of reporting regularly to Council and to the public.