KAMPALA, UGANDA: June 14, 2023: A new research finding has shown that a combination of new public management concepts, staff alignment, and win-win solutions, can turn around ailing public enterprises in Uganda.
In a study published in 2019, Dr. Silver Mugisha, also Managing Director National Water and Sewerage Corporation (NWSC), argues that the key to sustaining high performance and reforming public utilities in Uganda, is by adopting the concept of new public management (NPM) to revolutionize their operations, guided by a balanced scorecard framework.
“This approach shifts the corporation’s focus from solely pursuing positive cash flows to ensuring ‘water for all’ citizens, striking a balance between technical aspects and political aspirations,” he says of the new concept.
Using the case study of the successful NWSC, Dr. Mugisha acknowledges the crucial link between utility operations and environmental protection, implementing sustainable water supply practices that benefit both people and the planet in the long term.
“A key factor contributing to NWSC’s success is the alignment of staff needs with organizational goals. Recognizing the value of its employees, NWSC fosters win-win solutions, creating a motivated and dedicated workforce. This approach not only encourages innovation and efficiency but also enhances service delivery, resulting in improved customer satisfaction and overall performance,” he observes in the study which has been widely cited in different academic journals.
The study
Titled: “National Water and Sewerage Corporation: Sustaining High Performance and Transforming Public Utilities in Uganda,” the study was published with IWA Publishing, a leading international publisher of water, wastewater, and environmental publications. It is a subsidiary of the International Water Association (IWA), a global network of water professionals and organizations dedicated to promoting sustainable water management practices.
Through its publications, IWA Publishing aims to disseminate knowledge, facilitate information exchange, and contribute to the advancement of sustainable water management practices worldwide.
In this study, Dr. Mugisha further observes that an essential aspect of NWSC’s success lies in aligning staff needs with organizational goals. By recognizing the value of its employees and fostering win-win solutions, NWSC created a motivated and dedicated workforce.
“This approach encouraged innovation, efficiency, and effective service delivery, leading to improved customer satisfaction and overall performance,” he observed.
And in a remarkable case of successful utility reforms, the NWSC in Uganda has demonstrated how a public enterprise can sustain high performance over an extended period. The journey, spanning more than 15 years, showcases significant achievements and innovative initiatives that have transformed the water and sanitation sector.
Expansion and Improvements:
For example between 2013 and 2018, NWSC achieved impressive milestones. The geographical coverage expanded exponentially, reaching 240 towns compared to the initial 23.
The number of connections increased substantially from 310,000 to approximately 600,000, enabling more citizens to access clean water and sanitation services.
NWSC’s revenues grew threefold, enabling the corporation to invest in infrastructure development and operational enhancements.
The network growth also witnessed a remarkable improvement, with NWSC now expanding over 2000 kilometers per year, a significant leap from the previous 80 kilometers per year.
Balanced Approach and Environmental Sustainability:
The study found that NWSC adopted the concept of new public management (NPM) to revolutionize its operations.
“A balanced scorecard framework guided the corporation’s activities, shifting focus from solely pursuing positive cash flows to ensuring ‘water for all’ citizens. This comprehensive approach emphasized the importance of balancing technical aspects with political aspirations,” he wrote.
According to his findings, NWSC recognized the nexus between utility operations and environmental protection, leading to sustainable water supply practices that ensure long-term benefits for both people and the planet.
Staff Alignment and Win-Win Solutions:
Additionally, the study found that an essential aspect of NWSC’s success lies in aligning staff needs with organizational goals.
“By recognizing the value of its employees and fostering win-win solutions, NWSC created a motivated and dedicated workforce. This approach encouraged innovation, efficiency, and effective service delivery, leading to improved customer satisfaction and overall performance.”
Lessons and Recommendations:
Dr. Mugisha’s study which has been formatted into a book, provides invaluable lessons and conclusions for utility leaders and policymakers worldwide seeking to reform their utilities and create value for citizens.
Why Uganda’s Public Utilities Are Problematic
One of the biggest quarrels that the general public in Uganda has against public enterprises is the issue of inefficiency and poor service delivery. Public enterprises, which are government-owned entities responsible for providing essential services such as utilities, transportation, and healthcare, have often been criticized for their lack of effectiveness, slow response times, and inadequate provision of services.
The public often complains about frequent power outages, unreliable water supply, long waiting times in hospitals, and subpar transportation services. There is a perception that public enterprises are plagued by corruption, mismanagement, and a lack of accountability, which contributes to their inefficiency.
Furthermore, the public feels that public enterprises prioritize their own interests over the welfare of the citizens. This includes allegations of favoritism in employment practices, lack of transparency in decision-making processes, and a failure to address the needs and concerns of the general population.
The high cost of services provided by public enterprises is another point of contention. Many argue that despite paying for these services through taxes and fees, the quality and reliability of the services received do not justify the expenses incurred.
Who is Dr. Mugisha
Dr. Mugisha holds a Ph.D. in Engineering and Economics from Makerere University, Uganda. His Ph.D. research, which was carried out in collaboration with PURC of the University of Florida, USA focused on areas of performance monitoring, incentive design, and productivity analysis. He was previously a Chief Manager in charge of Institutional Development and External Services at the National Water and Sewerage Corporation (NWSC).
Dr. Mugisha has been with NWSC since 1994 and has risen through the ranks of the Corporation. He has worked on external consultancies in various organizations in Uganda, Kenya, Tanzania, Zambia, Nigeria, Ethiopia, Rwanda, India, and Trinidad and Tobago among others. He has been a Board Member of the International Water Association (IWA) since 2014 and later become the Vice President of IWA. He was also the Vice President of the African Water Association (AfWA). He is a Fellow of the International Water Association and Sense Research School of the Netherlands.
To access his publication, please visit: https://silvermugisha.com/ and https://bit.ly/3CrKQfB
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Rugyendo is an accomplished journalist with a rich background in the media industry in Uganda. With over two decades of experience, Rugyendo has held various roles including cab reporter, Bureau Chief, Managing Editor, and Digital Media Editor at renowned publications such as Daily Monitor and Red Pepper. He has since moved on to found Research Finds News. Throughout his career, he has demonstrated a commitment to delivering high-quality journalism and staying at the forefront of media trends.
In addition to his journalistic pursuits, Rugyendo is currently pursuing a Ph.D. in Journalism and Communication at Makerere University. He has been recognized for his outstanding leadership and commitment to social change as a Desmond Tutu Fellow and Crans Montana New Leader. Rugyendo also serves as the Chairman of Young Engineers Uganda and Uganda Premier League, showcasing his dedication to promoting excellence and growth in various fields.
With a passion for driving innovation and pushing boundaries in media, Rugyendo continues to make significant contributions to the industry. His vast experience, academic pursuits, and leadership roles make him a respected figure in the Ugandan media landscape.
