Culture drives revenue aligning people, process and technology

Discussions about South Africa's municipal financial crisis are often dominated by figures - audit outcomes, revenue shortfalls and debt ratios. Yet, the challenge confronting most municipalities is not primarily a technical or financial one. It is cultural.

- By Thabiso Ndebele | Managing Director | Ntiyiso Revenue Consulting | [e-mail]

Behind every malfunctioning billing system or poor collection rate lies an organisational culture that is not aligned with accountability, service excellence or innovation. In such environments, the link between payment and service delivery is weakened, eroding both trust and compliance.

No technological upgrade or turnaround strategy can succeed without addressing this underlying cultural dimension. Sustainable municipal revenue begins with transforming the mindset and behaviours of the people responsible for delivery.

Revenue management is not solely a financial process - it is a cultural and leadership discipline.

A lesson from the licence line

In 2021, the Road Traffic Management Corporation (RTMC) faced a severe operational challenge - more than 1.5 million driving licence cards had expired during the COVID-19 lockdowns. Testing centres were overwhelmed, citizens were frustrated and revenue performance was declining.

In response, the RTMC leadership set a bold and measurable target - no applicant should spend more than 12 minutes renewing a driving licence card.

This clear vision transformed the institution. Staff were mobilised around a shared purpose, processes were redesigned for efficiency and technology was leveraged to enable faster service. Within months, the backlog was cleared, public sentiment improved and revenue recovered.

This example underscores a key principle - when institutions focus on improving citizen experience, financial performance follows.

Culture determines financial outcomes

Revenue is the financial lifeblood of any public institution. Yet the Auditor-General's 2023/24 report revealed that only 16% of South African municipalities achieved clean audits. The remainder remain locked in a cycle of poor service delivery, weak accountability and financial instability.