Appropriate Solutions: Appropriate Solutions: Drivers, Regulators & InnovatorsDrivers, Regulators & Innovators

Fred van ZylFred van Zyl

3 September 20073 September 2007

South Africa a country of opportunitiesSouth Africa a country of opportunities

• Many challengesMany challenges

• Requiring creative solutionsRequiring creative solutions

Social developmentSocial development

Economic developmentEconomic development

Effective & sustainable servicesEffective & sustainable services

Environmental protection.Environmental protection.

However – limited sector initiatives & effective However – limited sector initiatives & effective outcomes (success stories but also many failures outcomes (success stories but also many failures and/or negative performances)and/or negative performances)

South Africa a country of opportunitiesSouth Africa a country of opportunities

• Present solutions influenced by:Present solutions influenced by:– Funding (Financial viability)Funding (Financial viability)– TimeframesTimeframes– Human Resources: skills, capacity and abilityHuman Resources: skills, capacity and ability– SustainabilitySustainability– Water scarcityWater scarcity– Local physical & demographic factorsLocal physical & demographic factors– Poverty situation & affordabilityPoverty situation & affordability– Management skillsManagement skills– AttitudeAttitude– ““Closed box” culture & approach.Closed box” culture & approach.

??

And what about ………. ?And what about ………. ?

• Achieving basic services targets ?Achieving basic services targets ?

• Intermediate sanitation solutions ?Intermediate sanitation solutions ?

• Project comebacks ?Project comebacks ?

• Drinking water quality ?Drinking water quality ?

• Water losses ?Water losses ?

• Asset management ?Asset management ?

Focus of Presentation:Focus of Presentation:

Appropriate Solutions:Appropriate Solutions:

Drivers, Regulators & InnovatorsDrivers, Regulators & Innovators

11

22

Issue 1: Appropriate Technology vs. Issue 1: Appropriate Technology vs. Appropriate SolutionsAppropriate Solutions

3 x Insights3 x Insights

• Construction of a road Construction of a road *Functional & useful*Functional & useful

• Construction of a house Construction of a house *Functional & useful*Functional & useful

3 x Insights3 x Insights

Construction of a water pipelineConstruction of a water pipeline

……… ……… and then………and then………

………………NOTHING !NOTHING !

Water InfrastructureWater Infrastructure

No Services !No Services !

Water Services is an Integrated Business!Water Services is an Integrated Business!

++ ++

==

So : What do we understand under So : What do we understand under

………….Appropriate ????.Appropriate ????

Appropriate…: Some definitionsAppropriate…: Some definitions

• Suitable - fittingSuitable - fitting• ProperProper• RightRight• CorrectCorrect• HappyHappy• DeservedDeserved

– MeritedMerited– MeetMeet– JustifiedJustified– Warranted.Warranted.

Do we Do we share & share &

own these own these definitionsdefinitions

??

And …….. : What do we understand And …….. : What do we understand under: “Appropriate… Solutions”under: “Appropriate… Solutions”

• Solutions … for what?Solutions … for what?• Appropriate … for what?Appropriate … for what?• Driven by specific needs, outcomes, Driven by specific needs, outcomes,

purpose & driving forcespurpose & driving forces• Appropriate solution:Appropriate solution:

– Exercise/Process/Deliberation/Thinking Exercise/Process/Deliberation/Thinking activity… of finding acceptable outcomeactivity… of finding acceptable outcome

– This is what planning, design & strategic This is what planning, design & strategic thinking is really about.thinking is really about.

What do we understand under: What do we understand under: “Appropriate… Solutions”“Appropriate… Solutions”

• Solutions … for what?Solutions … for what?• Choice and integration of water resource, Choice and integration of water resource,

infrastructure, delivery systems, service infrastructure, delivery systems, service levels, implementation, O&M, levels, implementation, O&M, management, funding, impact, compliance, management, funding, impact, compliance, institutional, etcinstitutional, etc

• Driven by specific needs & driving forcesDriven by specific needs & driving forces• To achieve a specific and acceptable To achieve a specific and acceptable

outcomeoutcome

Water Supply & Sanitation ElementsWater Supply & Sanitation Elements

Water, sewerage and effluent infrastructureWater, sewerage and effluent infrastructure

ConsumersConsumers

Bulk supply infrastructureBulk supply infrastructure

ReticulationReticulation

IndustrialIndustrialSanitationSanitationServicesServices

Water Water ResourceResource EnvironmentalEnvironmental

SocialSocial

ManagementManagement

Institutional arrangementsInstitutional arrangements

Financial arrangementsFinancial arrangements

TreatmentTreatment

DomesticDomestic

Groundwater Groundwater

Surface waterSurface water

DischargeDischarge

Driving Driving & &

ImpactinImpacting Forces g Forces + support+ support

Driving Driving & &

ImpactinImpacting Forcesg Forces

Water, sewerage and effluent infrastructureWater, sewerage and effluent infrastructure

ConsumersConsumers

Bulk supply infrastructureBulk supply infrastructure

ReticulationReticulation

IndustrialIndustrialSanitationSanitationServicesServices

Water Water ResourceResource EnvironmentalEnvironmental

SocialSocial

ManagementManagement

Institutional arrangementsInstitutional arrangements

Financial arrangementsFinancial arrangements

TreatmentTreatment

DomesticDomestic

Groundwater Groundwater

Surface waterSurface water

DischargeDischarge

Driving Driving & &

ImpactinImpacting Forces g Forces + support+ support

Driving Driving & &

ImpactinImpacting Forcesg Forces

Sustainable ServiceSustainable Service

Water, sewerage and effluent infrastructure

Environmental

Social

Management

Institutional arrangements

Financial arrangements

Customer

Bulk supply infrastructure

Reticulation

CustomerSanitationServices

Water Resource

Soft/Business

Hard Infrastructure

Water Services as a BusinessWater Services as a Business

Solution…?Solution…?

• Solution = an act of solving a problem or Solution = an act of solving a problem or difficulty = figuring out, unravel, solvedifficulty = figuring out, unravel, solve

• The act of separating or breaking or dissolving The act of separating or breaking or dissolving components of a … problem, situation or components of a … problem, situation or challengechallenge

• Solve but also Dissolve = Disappear… make a Solve but also Dissolve = Disappear… make a problem go awayproblem go away

• Think about this!Think about this!• It is a art and a science!It is a art and a science!• It is about winning!It is about winning!

Issue 2 :Issue 2 :

Drivers, Regulators & InnovatorsDrivers, Regulators & Innovators

22

1. Drivers1. Drivers

• Core driver = PurposeCore driver = Purpose

• What is our purpose/objective?What is our purpose/objective?

Ensure quality of life!Ensure quality of life! This is presented ito social, economic, This is presented ito social, economic,

environmental, prosperity driversenvironmental, prosperity drivers

Core DriversCore Drivers

PurposePurposeBegin with the end in mind!Begin with the end in mind!

What is our Purpose?What is our Purpose?Outcome? And associated conditions?Outcome? And associated conditions?

•Basic supplyBasic supply•Basic sanitationBasic sanitation•Free Basic ServicesFree Basic Services•Economic Economic developmentdevelopment•BusinessBusiness•Environmental Environmental protectionprotection•Service qualityService quality•Water qualityWater quality•Health & Social Health & Social servicesservices

Begin with the end in mind!Begin with the end in mind!

What drives & influence the purpose?What drives & influence the purpose?

PurposePurpose

PoliticalPolitical

ConstitutionalConstitutional

LegalLegal StrategicStrategic

HealthHealthDignityDignity

BusinessBusinessCustomersCustomers

SocialSocial

EconomicEconomic

EnvironmentalEnvironmental

Values &Values & PrinciplesPrinciples

What drives & defines prosperity What drives & defines prosperity objectives?objectives?

• CultureCulture• DignityDignity• ValuesValues• Social conscienceSocial conscience• Quality of life principlesQuality of life principles• Need for economic growth & developmentNeed for economic growth & development• SecuritySecurity• PoliticsPolitics

What are the implications ?What are the implications ?

2. Core Regulators: Requiring Process2. Core Regulators: Requiring Process

Purpose / Purpose / OutcomeOutcomeNeedNeed

Solutions finding processSolutions finding process

What guides and controls the effort/action What guides and controls the effort/action to find appropriate solutions :to find appropriate solutions :

• Business principlesBusiness principles• Professional norms and requirements …. Plus integrityProfessional norms and requirements …. Plus integrity• Standards & normsStandards & norms• Legal requirements:Legal requirements:

– Planning ActsPlanning Acts– Sector ActsSector Acts– Municipal ActsMunicipal Acts– Environmental ActsEnvironmental Acts– Etc.Etc.

• DoRA: Technical, Institutional (ownership, implementation, DoRA: Technical, Institutional (ownership, implementation, operations and maintenance) & financial agreement plus operations and maintenance) & financial agreement plus arrangementsarrangements

No clear guidance on appropriate solutions! But impliedNo clear guidance on appropriate solutions! But implied It is also an habit of insight & creative management.It is also an habit of insight & creative management.

So: Do We have appropriate solutions for?So: Do We have appropriate solutions for?

• FinancingFinancing• Viability and affordabilityViability and affordability• Service qualityService quality• FunctionalityFunctionality• Institutional arrangementsInstitutional arrangements• Resource availability – water strategyResource availability – water strategy• Pressure & time challengesPressure & time challenges• Life cycle managementLife cycle management

• As part of our technical/technology solutions ?As part of our technical/technology solutions ?

Life cycle planningLife cycle planning Cost of the BusinessCost of the Business

Planning Design Procure Construct Operate Maintain Refurb.

0,2% 2% 17% 44%

Typical % of Total Cost over the Life of Water Supply InfrastructureTypical % of Total Cost over the Life of Water Supply Infrastructure

37% Financing Cost

Based on actual local government case study (Paul le Roux)Based on actual local government case study (Paul le Roux)

Regulators: ProductsRegulators: Products

ProductsProducts

Product Product SpecificSpecific

ProfessionalProfessional ValidityValidity OutcomeOutcome

Impacting FactorsImpacting Factors

Regulators: ProductsRegulators: Products

ProductsProducts

Product SpecificProduct Specific•SABS/SANSSABS/SANS•ContractsContracts•Designs & Designs & standardsstandards•RegulationsRegulations•ConditionsConditions

ProfessionalProfessional•StandardsStandards•IntegrityIntegrity•EnvironmentalEnvironmental•Water Water resources resources strategiesstrategies•Professional Professional institutions & institutions & mandatemandate•PRIDEPRIDE

ValidityValidity•FeasibilityFeasibility•SustainabilitySustainability•ViabilityViability•AcceptabilityAcceptability

OutcomeOutcome•ValueValue•ExpectationsExpectations•FunctionalityFunctionality

Impacting Factors: Physical conditions, resources, funding, Impacting Factors: Physical conditions, resources, funding, management, risks, leadership, creativity, ownership, rewardmanagement, risks, leadership, creativity, ownership, reward

**

Validators - 1Validators - 1

• FeasibilityFeasibility• ViabilityViability• ExecutabilityExecutability• AffordabilityAffordability• SustainabilitySustainability• InstitutionalInstitutional• FinancialFinancial• AcceptabilityAcceptability• LogicLogic• FunctionalityFunctionality• PracticalityPracticality• Risk & Vulnerability.Risk & Vulnerability.

Validators - 2Validators - 2

• AcceptabilityAcceptability– SocialSocial– EconomicEconomic– PoliticalPolitical– EnvironmentalEnvironmental– StrategicStrategic– BusinessBusiness– LegalLegal– TechnicalTechnical– ResourceResource– FinancialFinancial– Institutional.Institutional.

Need to be Need to be proactively proactively defined & defined &

continuously continuously referencedreferenced

= Appropriate= Appropriate

PurposePurposeNeedNeed

Solutions finding processSolutions finding process

1122

Products & DeliverablesProducts & Deliverables33

Solving process = Solving process =

• Discussion/Debate = (Latin) beat to piecesDiscussion/Debate = (Latin) beat to pieces

• Dialogue: Dia = through, logue = trust, Dialogue: Dia = through, logue = trust, comfortcomfort

• Options.Options.

The BoxThe Box

• Out of the boxOut of the box

• Outside the boxOutside the box

• Break the boxBreak the box

• = Creativity, smart thinking + insight, = Creativity, smart thinking + insight, comprehension & logical application.comprehension & logical application.

• Inside the box = focus, frameInside the box = focus, frame

Think Win-Win!Think Win-Win!

• SuccessSuccess

• FunctionalityFunctionality

• Cost effective.Cost effective.

Negative solutions: Serious ThreatsNegative solutions: Serious Threats

AbusersAbusers

• MisuseMisuse

• AttitudeAttitude

• Lack of Lack of professionalismprofessionalism

• Under-minersUnder-miners

• MentalityMentality

IgnoranceIgnorance

• ThreatsThreats

• Lack of insightLack of insight

• MaturityMaturity

• NaivetyNaivety

• BlockageBlockage

• RisksRisks

Appropriate Solutions !Appropriate Solutions !

Conclusion: no formal legal prescript on Conclusion: no formal legal prescript on what constitutes “appropriate”what constitutes “appropriate”

• It is the art & science of creative thinking It is the art & science of creative thinking & deliberation& deliberation

• With effective products as outcomesWith effective products as outcomes

• Product of smart & creative champions.Product of smart & creative champions.

Find the Solution !Find the Solution !

EndEnd

What drives Water Services Objectives?What drives Water Services Objectives?

•Basic supply Basic supply •Basic sanitationBasic sanitation•Free basic servicesFree basic services•Environmental protectionEnvironmental protection•Drinking water qualityDrinking water quality•Water for businessWater for business•Effective useEffective use•Service qualityService quality•Waste water management.Waste water management.

Performance AreasPerformance Areas•Social conscienceSocial conscience•PoliticalPolitical•HealthHealth•DignityDignity•Water scarcityWater scarcity•Customer serviceCustomer service•Customer careCustomer care•Business principlesBusiness principles•MoneyMoney•Reflected in Constitution, Reflected in Constitution, Acts, regulations, policies Acts, regulations, policies & strategies& strategies

DriversDrivers