How to make public companies work
Author: Dr. William T. Muhairwe, Managing Director, National Water and Sewerage Corporation.
Title: Making Public Enterprises Work (MPEW). From Despair to Promise: A turn Around Account.
Publisher: Fountain Publishers & IWA Publishing, London. New York.
Price: UGX 75,000 (US $40.00).
Reviewed by: Dr. Robert K. Rutaagi, Consulting Director, Pragma Consultants Ltd.
By early 1990s, most public enterprises in Uganda were doing badly in terms of management, funding and political support. Therefore, the need and debate for reform was great.
The NRM Government frantically invited the famous Brettonwood sisters: the World Bank, the International Monetary Fund and the International Development Association to assist with their standard prescription of liberalisation, privatisation, and decentralisation.
By 1993, the Enterprise Development Project and the Public Enterprise Reform and Divestiture Secretariat (PERDS), had been established to implement the reforms. In his book, “Making Public Enterprise Work,” Dr. Muhairwe elucidated the socio-econo-political environment surrounding the public sector in general, citing NWSC as its microcosm.
After reading MPEW, I was impressed by his deep understanding of the challenges of NWSC. It is one thing to understand Uganda’s public sector, but it is quite another to marshal up all human and non-human resources and manage them well like NWSC management has done.
NWSC’s fortunes can be better revealed by its strengths, weaknesses, opportunities, threats analysis (SWOTA) faced between 1998 and 2010. NWSC is a public monopoly, serving a public good (water). The Government and donor support, since 1970, has been good.
NWSC has had stable, strong and qualified CEOs. NWSC has had good basic infrastructure, which is fundamental for any success. Water is not only but also NWSC’s raw material cum final product with inelastic demand and supply.
Weaknesses included state ownership, political interference, corruption, poor incentives, reliance on foreign skills and resources, negative attitudes of stakeholders, debt burden, inefficiency, poor corporate image, sabotages, lack of trust etc.
Fortunately, these weaknesses became managerial opportunities for the motivated, dynamic, visionary and indefatigable Muhairwe, through transformational change management programmes. He innovatively and dynamically implemented well-calculated change management programmes which he has ably explained in MPEW.
NWSC’s opportunities are synonymous with its strengths and, hence, do need repetition emphasis: protracted government and donor support, inelastic supply and demand of water as a natural resource raw material and final product. A good opportunity deserves another good opportunity – excellent management led by a visionary and motivated CEO – Dr. Muhairwe.
Threats include: privatisation, periodic draughts, diminished donor support, debt burden and possible court action for delayed financial obligations before solutions were found by the Muhairwe-led management and board.
The NWSC management team has managed to achieve great results. Making Public Enterprises Work is a master-piece which articulates the success story that eludes many public enterprises.
MPEW is, simply, an epitome and embodiment of a success case study of a lucky public enterprise in an era when the mourning tears of some dead public enterprises and the euphoria of some resurrected and re-baptised private-owned enterprises, after either privatisation or expropriation, have not dried up. The success of NWSC is not only eloquently demonstrated in black and white in MPEW but is also beautifully displayed on
Muhairwe’s office wall with deserving magnificent awards: East Africa’s Most Respected Enterprise Winner, UMA Best Exhibitor, E.A Star Performer, Best Employer of the Year, ITF Best Exhibitor, Energy Management Awardee, Bentley Innovation Awardee, Golden Management Star & URA Vantage Award.
Finally - NWSC is an excellent case study. ‘Making Public Enterprises Work’ is an eloquent exposition by the very actor and driver of the team responsible for the enviable success radiating from Jinja Road, NWSC headquarters, nationally, continentally and globally.
MPEW is a good gift I highly recommend for the professional manager, policy-maker, any leader, academic, researcher, student and you.
God bless you all. |
