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Book Details
Abstract
Public enterprises remain the most dominant medium of service provision in both developing and developed countries. During the 1990s and early 2000s, the outcry about poor performance of public enterprises was overwhelming. Nobody at that time and even now has managed to design a ‘blue print’ solution. And yet, the fact that service provision through public enterprises is here to stay is the blunt truth.
In Making Public Enterprises Work - From Despair to Promise: A Turn Around Account, Dr. William Muhairwe, the Managing Director of National Water and Sewerage Corporation of Uganda, discusses the approaches used to turnaround an under-performing state enterprise into a remarkable success story. Drawing on decades of experience, taming ‘struggling’ institutions, Dr. Muhairwe enumerates practical steps taken to make a significant difference in service delivery, for the benefit of any form of enterprise. Combined with facts, simplicity and fun, this book presents a unique account of methods used for constructive engagement and dialogue with donors, government officials, workers, suppliers and, indeed, the public/customers. All chapters are interspersed with tested lessons that any enterprise can benchmark to address its service delivery challenges. It is a great handbook for those involved in re-engineering their businesses.
Making Public Enterprises Work contains unique home-grown turnaround reform steps that can help to revamp under-performing enterprises. It is the first book to demonstrate that performance contracts combined with incentives can work wonders in public enterprises. The book discusses how incentive rewards can spread to all levels of staff and encourage wholesome teamwork. It also looks at how enterprises can work without industrial unrest in very difficult conditions. In addition the book demonstrates how public enterprises that have been listed for privatisation can provide alternative restructuring steps.
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"Well functioning, effective utilities hold the key to addressing Africa's water and sanitation service challenges. The National Water and Sewerage Corporation in Uganda, under the inspired leadership of William Muhairwe, offers both evidence of what can be achieved, and clarity on how to transform a once failing public water utility. The experience and knowledge documented in these pages is a 'must-read' for sector professionals worldwide." PAUL REITER, Executive Director, International Water Association (IWA)
"From grass to grace, this book makes a journey of a visionary man, a group full of purpose and an institution that understands the need to rise above adversity. [Its] a representation of the best in leadership and focus; a show of tenacity; a story of how management delegation, autonomy and trust in staff conquer the rot in institutional behaviour; a demonstration of structured incentives at work." ATO BROWN, SDN-AFCE1 The World Bank
"Inspired by modern management, Muhairwe shows how change can be led by managers in a public enterprise if given a chance." MEIKE VAN GINNEKEN, The World Bank, Central African Republic
"… an in-depth insight in the energetic battle to improve performance in a public enterprise and certainly deserves to be read." CLAUDIA RADEKE, First Vice President, KfW and SUSANNE MAUVE, KfW
"… a unique, firsthand account of how a successful reform can be done in practice… a must read for those engaged in the difficult task of reforming public enterprises." PHILIPPE MARIN, The World Bank, Washington DC
"The genius work of empowering staff with the ‘carrots, sticks and sermons’ to cause a cultural revolution and institutionalize excellence." RICHARD FRANCEYS, PhD, Cranfield University, UK
"A page-turning story of enlightened and brave leadership able to use internal incentives to bootstrap a public enterprise to much-improved performance… a road-map for other would-be reformers on the political and technical ingredients of success." JOHN BRISCOE, GORDON MCKAY Professor, Harvard University
"This book makes for essential reading for any practitioner that seriously wants to better understand how performance can be improved within a public domain." ALDO BAIETTI, The World Bank Institute Washington DC
"An uplifting account about overturning a fallacy… a demonstration by Dr. Muhairwe that it can be done and done successfully… a highly recommended read for all managers and leaders in the throes of overseeing change in their respective fields." ROBERT KABUSHENGA, CEO Vision Group
'This book demonstrates how visionary leadership and ownership by the beneficiary institution can utilize development support to reform and accelerate service delivery... a must read for international development partners." DR. THOMAS SCHILD, Country Director and Hermann Plumm, GTZ, Germany
Table of Contents
Section Title | Page | Action | Price |
---|---|---|---|
Half title | 1 | ||
Title | 3 | ||
Copyright | 4 | ||
Dedication | 5 | ||
Contents | 7 | ||
About the Author | 9 | ||
Preface | 11 | ||
Introduction | 15 | ||
Part One: TOUGH JOB: COULD IT BE DONE? | 17 | ||
Chapter One: Serving Against all Odds | 19 | ||
In the eye of the storm | 21 | ||
Interference from the high and mighty | 22 | ||
From bad to worse | 23 | ||
Serving against all odds | 25 | ||
Part Two: DOWN TO WORK: THE TURNAROUND | 33 | ||
Chapter Two: Setting the Priorities | 35 | ||
The 100 Days Programme | 35 | ||
Shocked into a promise | 36 | ||
Oh! Why did I say it? | 37 | ||
More shocking encounters | 39 | ||
Marketing the 100 days Programme | 42 | ||
On the drawing board | 45 | ||
From dream to reality | 49 | ||
Trophies and bull roasting | 50 | ||
Winners and losers | 52 | ||
Reaping the fruits | 56 | ||
Good ending, but what next? | 60 | ||
Chapter Three: Focusing on the Customer and Financial Viability | 63 | ||
Service and Revenue Enhancement Programme | 63 | ||
Searching for the next step | 64 | ||
SEREP implementation strategies | 67 | ||
SEREP rewards, gains and constraints | 74 | ||
Job well done, but more challenges | 79 | ||
Chapter Four: A Pat on the Back | 87 | ||
First Government Performance Contract | 87 | ||
A nod to continue | 88 | ||
Performance contract targets | 90 | ||
Financing and monitoring of PC I | 92 | ||
PC I implementation | 94 | ||
Chapter Five: Swinging the Pendulum from the Centre to the Grassroots | 97 | ||
Area Performance Contracts | 97 | ||
Background of the APCs | 98 | ||
Drafting the APC framework | 98 | ||
APC secure staff support | 99 | ||
Taking on the APCs mantle | 101 | ||
The APC on the ground | 103 | ||
The stick and the carrot | 107 | ||
Support Services Contracts (SSCs) | 107 | ||
Gauging progress and re-energising the APCs | 110 | ||
APCs achievements | 111 | ||
Bringing more towns on board | 111 | ||
Impact of the APCs on the PC I performance | 114 | ||
Chapter Six: The Group Incentive Mechanism | 123 | ||
Stretch-out Programme | 123 | ||
In praise of Jack Welch and Spencer Johnson | 124 | ||
Selling the stretch-out concept | 130 | ||
Modus operandi | 137 | ||
Jinja Area workout | 139 | ||
The stretch-out mental revolution | 142 | ||
Matching words with deeds | 143 | ||
From their business to our business | 144 | ||
Stretch memories and experiences | 144 | ||
Summing up the gist of stretch-out gains | 146 | ||
Refining the reward system | 146 | ||
Stretch shortcomings | 147 | ||
Chapter Seven: The Individual Incentive Mechanism | 153 | ||
One-Minute Management Programme | 153 | ||
Group contribution: Tapping into individual participation | 154 | ||
The dilemma of stretching at headquarters | 156 | ||
A timely idea: The one-minute manager | 156 | ||
The basics of the one-minute management concept | 157 | ||
Turning the pyramid upside down | 165 | ||
Putting one-minute management in action | 168 | ||
Building high performing teams | 174 | ||
Monitoring and evaluation | 176 | ||
Towards a new corporate culture | 177 | ||
Our gains | 180 | ||
Chapter Eight: Reshaping the Partnership with the Government | 183 | ||
Second Government Performance Contract | 183 | ||
Key objectives of PC II | 184 | ||
Distinguishing features | 185 | ||
Implementation of the second performance contract | 187 | ||
Chapter Nine: An Alternative Approach to Privatisation | 191 | ||
Internally Delegated Area Management Contracts | 191 | ||
Initiation of IDAMC concept | 194 | ||
Marketing IDAMC | 195 | ||
Preparation of the IDAMCs | 195 | ||
Launching the IDAMC | 199 | ||
Duties, rights and obligations | 200 | ||
Breaches, penalties and arbitration | 203 | ||
IDAMCs’ management fee structure | 204 | ||
IDAMCs’ implementation | 205 | ||
IDAMC I achievements | 206 | ||
Critics proved wrong again! | 209 | ||
The third performance contract 2006–2009 | 209 | ||
The second phase of IDAMC | 210 | ||
Looking back and further ahead | 211 | ||
Chapter Ten: A New Approach to Performance Monitoring | 217 | ||
The Checkers System | 217 | ||
Traditional monitoring approaches | 219 | ||
The genesis of checkers | 222 | ||
Widening the buy-in planning process | 225 | ||
The harmonisation process | 230 | ||
The Checkers System at work | 233 | ||
Part Three: SO FAR SO GOOD | 237 | ||
Chapter Eleven: Performance Balance Sheet | 239 | ||
Snapshot of our performance | 242 | ||
The challenges ahead | 249 | ||
Part Four: NOT ALONE: PARTNERS’ ROLE | 259 | ||
Chapter Twelve: Winning the Much Needed Goodwill | 261 | ||
The Donors | 261 | ||
At the lowest ebb | 262 | ||
Inculcating a positive attitude towards donors | 265 | ||
Courting donors | 267 | ||
Were initial efforts convincing? The World Bank’s view | 274 | ||
Eventual payoff: positive attitudes start evolving | 275 | ||
Donors become real-life partners in service delivery | 277 | ||
NWSC donor-funded projects since 1998 | 280 | ||
Trivialities can be detrimental to citizens | 284 | ||
Donors continue to talk about NWSC’s reforms | 285 | ||
It counts a lot to be appreciated | 286 | ||
Chapter Thirteen: In the Shadow of Privatisation | 291 | ||
The Government | 291 | ||
In the eye of the storm | 293 | ||
In the shadow of privatisation | 296 | ||
Actions start speaking louder than words | 298 | ||
Friends and allies | 306 | ||
Chapter Fourteen: Public Partnership Reconstructed | 319 | ||
The People's Voice | 319 | ||
Negative customer perceptions and their effects | 320 | ||
Measures to change customer perceptions | 321 | ||
Measures pay off: moving in the right direction | 328 | ||
Customers argue against complacency: demand for more | 332 | ||
Our own independent assessment | 334 | ||
Honoured at home and abroad | 337 | ||
Emulating our success | 339 | ||
The right to know; the duty to inform | 341 | ||
Compliance with the Master’s Voice | 344 | ||
In conclusion | 345 | ||
Chapter Fifteen: Behind the Scenes | 347 | ||
The Invisible Partners | 347 | ||
Hard times: understanding who to work with | 348 | ||
Surely, something had to be done | 350 | ||
Challenges with the measures taken: staff protests | 357 | ||
A timely lending hand: the Board and Union support | 358 | ||
The campaign for change | 359 | ||
Doing the inevitable | 361 | ||
Other staff concerns | 367 | ||
In their own words | 369 | ||
David Isingoma | 369 | ||
Silver Mugisha | 370 | ||
Charles Odonga | 371 | ||
Johnson Amayo | 372 | ||
Encouraging managers and staff initiatives | 374 | ||
Chapter Sixteen: Friends in Need | 377 | ||
Suppliers and Service Providers | 377 | ||
Need for credit facilities and discounts | 378 | ||
Shortfalls in the procurement system | 379 | ||
One-by-one corrective measures | 380 | ||
The turnaround: confidence restored | 384 | ||
Advice, information and training | 385 | ||
The black sheep | 387 | ||
Two tales of friends in need | 389 | ||
The service provider’s perspective | 389 | ||
The supplier’s perspective | 391 | ||
Looking back | 391 | ||
In conclusion | 392 | ||
Part Five: YES WE DID | 395 | ||
Chapter Seventeen: Can Public Enterprises Perform? | 397 | ||
Final Thoughts | 397 | ||
The privatisation debate | 397 | ||
Reforming public enterprises without changing ownership | 399 | ||
Proactive management | 400 | ||
Setting focused priorities | 401 | ||
Putting the customer first | 402 | ||
‘Do-it-yourself’ approach | 403 | ||
Investing in the workforce | 404 | ||
Stretching dreams and plans to the ‘stars’ | 405 | ||
Making the case for public enterprises | 405 | ||
A move to access financial markets | 407 | ||
Looking back to forge ahead | 408 | ||
Acknowledgements | 413 | ||
Acronyms | 417 | ||
Bibliography | 421 |