Transcription
Crisis Leadership: Rising to theChallengeDr. Mpilo NgubaneChief Learning OfficerCity of Durban, South Africa1
Table of content1. Definition of Crisis Leadership2. Elements of a crisis3. Characteristics of Crisis in a Municipality4. Crisis Management Process5. Turn‐Around Strategy in both Municipalities6. Conclusion2
DEFINITION OF CRISIS LEADERSHIP It is the process by which an organisation deals with amajor unpredictable event(s) which threatens tocripple the organization, its stakeholders, or thegeneral public. It is the application of strategies designed to help anorganization deal with a sudden and significantnegative event. It is the ability of employees, managers or individualsto deal with an emergency situation.3
ELEMENTS COMMON TO DEFINITIONA threat to theorganizationThe elementof surprise oremergencyA shortdecision timeA need forchange4
COOMB’S TYPES OF onalmisdeedsWorkplaceviolenceRumours.5
CHARACTERISTICS OF CRISES INMUNICIPALITIES Performance is persistently below the acceptablelevel. Lack of trust and deep internal conflicts. They cannot extricate themselves. They are always vulnerable. Require turn around to revert to normality. Morale and motivation of staff is extremely low. Deterioration is the face of the organization.6
SIGNS OF CRISIS: GOVERNANCE Conflicts over allocation of resources.Misalignment of processes (IDP & Budget).Worst opinion of the Auditor‐ General.Secrecy and distortion of information.Non‐ compliance with the laws and regulations.Lack of effective oversightInternal controls are extremely weak.No risk management in place.7
GOVERNANCE CONTINUED . Acrimonious relationship between the Mayorand City Manager. Poor relations between the Mayor and theSpeaker. Lots of political interference in administration. Alternative views in Council are suppressed. Rampant corruption, irregularities andmismanagement. Concerns from the public are ignored.8
VITAL SIGNS OF CRISIS: HUMAN RESOURCES Prevalence of ghost employees. Low levels of productivity and poorperformance. High rate of absenteeism and lack ofdiscipline. Unions have an upper hand. Excessive use of overtime andaccumulation of unresolved labourdisputes.9
VITAL SIGNS OF CRISIS: SERVICE DELIVERY Inability to meet constitutional obligations. Crime, sewage spillages, water leaks,electricity outages, wearing paint, brokenablutions. Common service delivery protests. Poor quality of workmanship. Humans with visible signs of poverty. Urban decay.10
VITAL SIGNS OF CRISIS: FINANCIALMANAGEMENT Cash flow problems Inability to pay salaries and creditors Assets cannot be physically verified Increased debtors and inability to collect revenue Missing financial records Excessive overtime claims Irregularities in Supply Chain Management Over expenditure in the budget Staffing budget exorbitantly high No realistic revenue projections or sources Rampant corruption in SCM, HR, City police, ProjectManagement, City Planning.11
CHARACTERISTICS OF SUCCESSFUL CRISISLEADERSSeeing thingsthrough whatthey areStrategy Listen tounpopularadviceCalm,Courageousand positiveTake risk inthe face ofriskUse of 80%rulePrepare toadmitmistakes12
DEMOGRAPHICS OF BOTH MUNICIPALITIESMANDENIuMNGENISIZE545 square kilometres1567 square kilometresPOPULATION147 808109 867HOUSEHOLDS45 67837 943WARDS1713COUNCILLORS3523STAFF301504BUDGETR290m (USD 21m)R406m (USD 30m)13
CHALLENGES IN 2 MUNICIPALITIES Financial MismanagementCorruptionMisallocation of fundsPoor service deliveryFraudNepotismLoss of trust14
SOLUTION External and objective personTurn Around StrategyCrisis Leadership TeamStakeholdersDevelop Matrix ( what, who, how,when) Develop communication plan15
“Good governance isnot fire fighting or crisismanagement. Insteadfor adhoc solutions theneed of the hour is totackle the root cause ofthe problems”Nevendra Modi“Ifyou do notchoose to do it inleadership timeupfront you do it incrisis managementtime down theroad”Stephen Lovely16
Thank youQuestions17
DEFINITION OF CRISIS LEADERSHIP It is the process by which an organisation deals with a major unpredictable event(s) which threatens to cripple the organization, its stakeholders, or the general public
