Fostering Improved Performance Through

Change Management and Team Work

Presented to UNRA

By

Dr. William T. MuhairweManaging Director, NWSC-

Uganda

June 25th 2009

Introduction

■ Parastatal set up in 1972 by Decree No. 34■ Mandated to operate on a commercial and financially viable basis.■ Currently responsible for WSS services in 23 large towns of

Uganda.Current Vision (2006-09)

To Be One Of The Leading Water Utilities In The WorldOld Vision (2003- 2006)

To be the Pride of the Water Sector in AfricaCurrent Mission (2006-09)

The Mission of the Corporation to provide efficient and effective water and sewerage services, applying innovative managerial solutions to

the satisfaction of our customers and other stakeholders in an environmentally friendly manner

Old Mission (2003-06)“To be a Customer Oriented Organisation Providing Excellent Water

and Sewerage Services in a Cost Effective Manner

Drivers for Change

Large inefficient work force with conflicting roles: Staff Productivity 36/1000 connections

Corrupt Field Staff

High UFW 60 -65% Monthly Deficit - $300,000

Poor Customer Care High operating Expenses (adm, medical, transport

Low Collection Efficiency (60-70%) High Debt Burden 100 million $

Huge level of Debtors of about 14 months

Poor organizational culture i.e. late coming etc

Quote World Bank at that time:Over the last 10 years, the GOU in partnership with the World Bank and Other Donors have made significant investments (over US $ 100 million) in the Urban Water and Sewerage sector. These investments have contributed immensely in rehabilitating the existing infrastructure under the NWSC management. Unfortunately, these investments have not been matched with the necessary efficient commercial and financial management capacity that can ensure the delivery of sustainable services in the medium to long-term”.

What was Done

Policy level■ Strategic level, change in Board & Management

Operational level■ Operational framework through change

management programmes □ (100 Days, □ Service and Revenue enhancement project

(SEREP), □ Area Performance Contracts (APC), □ Stretch out programme□ Internally Delegated Area Management

Contracts (IDAMCS), □ One Minute Management Concept (OMM), □ Checkers system

See our Website for details: www.nwsc.co.ug

Main Performance DriversTeam Work:■ Collective participation in the development and formulation of the

programmes. ■ Clear roles and responsibilities■ bottom-up approaches to strengthen programme ownership. ■ Devolution of power from centre to areas■ Institution of Performance Contracts (APCs and IDAMCs)■ Work outs through the “stretch out programme” in which workers

were free to air out any of their grievances and needs.■ Competition for managerial responsibility through business plan

preparation and expression of interest also promoted teamwork in the preparation of the business plans.

Corruption:■ Strong incentive systems and equitable gain sharing plans■ Staff involvement and participation■ One Minute management system■ Checkers un announced visits■ Non compromising reprimands for corruption, dismissal, forfeiting of

benefits

Main Performance DriversAttitude Change:

Realisation of need to change, Jobs at Stake, Privatisation Looming, Need to change Business as usual attitude

■ Participation in the development and formulation of the programmes.

■ Performance Contracts for all staff■ Performance based pay■ Empowerment of staff■ One Minute Management Auditing System:

■ Tailor made M&E arrangements and benchmarking of activities

■ Checkers un announced visits: both process ad outputs oriented

■ Strengthening of Audit function through financial and technical audits including technical staff Engineers, Surveyors etc

Key Achievements

Performance . Indicator 1998 2008

Service Coverage 48% 72%

Water prodn/day 120,547 166,173

Network coverage Increased by > 50 %

Staff per 1000 connections 36 7

New connections per year 3,317 25,000

Total connections 50,826 225,808

Coll. Efficiency 60% 94.7%

Unaccounted water 60% 37% (Global)

Proportion metered accounts

65% Almost 100%

Annual turnover as at June Ushs 21 billion Ushs 84 billion

Profit (After. Dep) as at June Ushs 2 billion loss

Ushs 3.3 billion Surplus

Possible Similarities: NWSC/ UNRA

NWSC 1998 UNRA !!!!!! Possible problems

High UFW High pilferage of road works materials

Poor work Attitude Poor work attitude

Poor Customer relations Poor Customer relations (compensation)

Corrupt Field staff Corrupt Field staff

Huge Debts Huge Debt Resources (1 Trillion shs)

Poor Organizational culture Business as usual attitude

Shoddy management of projects

Projects overruns, delayed completion

Huge inefficient labour force Low staff productivity

High administrative costs High cost of projects administration

Lessons■ Hard Working and committed Board of Directors with

mixed skills■ Dynamic utility management team ■ Staff motivated by clear Vision, mission and objectives■ Autonomy and empowerment of staff through

Decentralisation■ Strong M&E through checkers system. ■ Comparative competition between areas/branches■ Financial incentives important■ Increased Customer Focus■ Incorporation of “private management style” efficiency

(less bureaucracy, performance-based pay, “customer-pays-for-a good service” principle etc).

■ Good planning & continuously challenging management teams with new performance targets

■ Outsourcing non-core activities■ Information sharing through benchmarking

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Conclusions

■ A publicly managed utility/organization in the developing world can become efficient, viable and provide good service to its customers if well managed.

■ Efficiencies are possible if the ‘public sector’ adapts strong commercialisation (private sector-like) practices.

■ Management and staff have to embrace change as a constant factor.

■ Incentives key to efficiency and productivity of staff■ Team work and collective responsibility key to change■ We can work together to change UNRA.

“Be the Change you want to see” (Mahatma Gandhi)INNOVATION IS KEY!

In line with the Innovative Programmes, we are currently offering Consultancy services as shown overleaf

Services offered by NWSC

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Organizational behaviour change

Institutional development

Contract design & incentive systems

Asset management Project management Systems

development

Billing , Block mappingDevelopment & Strategic plans / Annual plans Establishment of M & E Units