2. Fostering Improved Performance Through Change Management and Team Work Presented to UNRA By Dr. William T. Muhairwe Managing Director, NWSC-Uganda June 25 th 2009

3. 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 World Old Vision (2003- 2006) To be the Pride of the Water Sector in Africa Current 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

4. 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 CareHigh operating Expenses (adm, medical, transport Low Collection Efficiency (60-70%)High Debt Burden 100 million $ Huge level of Debtors of about 14 monthsPoor 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”.

5. 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

6. Main Performance Drivers Team 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

7. Main Performance Drivers Attitude 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

8. Key Achievements Performance. Indicator 19982008 Service Coverage 48%72% Water prodn/day 120,547166,173 Network coverage Increased by > 50 % Staff per 1000 connections 367 New connections per year 3,31725,000 Total connections 50,826225,808 Coll. Efficiency 60%94.7% Unaccounted water 60%37% (Global) Proportion metered accounts 65%Almost 100% Annual turnover as at June Ushs 21 billionUshs 84 billion Profit (After. Dep) as at June Ushs 2 billion loss Ushs 3.3 billion Surplus

9. Possible Similarities: NWSC/ UNRA NWSC 1998UNRA !!!!!! Possible problems High UFWHigh pilferage of road works materials Poor work AttitudePoor work attitude Poor Customer relationsPoor Customer relations (compensation) Corrupt Field staff Huge DebtsHuge Debt Resources (1 Trillion shs) Poor Organizational cultureBusiness as usual attitude Shoddy management of projectsProjects overruns, delayed completion Huge inefficient labour forceLow staff productivity High administrative costsHigh cost of projects administration

10. 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

11. 10 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

12. Services offered by NWSC 11 Core Services Advisory Services Capacity building Technical Assistance  Organizational behaviour change  Institutional development  Contract design & incentive systems  Asset management  Project management  Systems development Billing, Block mapping Development & Strategic plans / Annual plans Establishment of M & E Units