off completely or activate flight mode Reforms... · Digitalization Disruptive Innovation Deceptive...
Transcript of off completely or activate flight mode Reforms... · Digitalization Disruptive Innovation Deceptive...
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Can we switch them
off completely or
activate flight
mode
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PARASTATAL REFORMS-IS PRIVATIZATION A SOLUTION OR THE PANACEA
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STATE MODEL
There is tangible benefit for any
A state model is the starting point in the governance of SOEs
The absence of national
vision is
a risky omission for an country
Country to muddle
through its realities
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PREFERRED STATE MODEL
Examples of developmental
states are:
Botswana, Singapore, China,
Malaysia and Mauritius
The winners of today operate on a
developmental state model
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KEY FEATURES OF A DEVELOPMENTAL STATE
1A focus on quality STEM
educational model
2A focus on high performance
SEOs
3The state leads economic
development
4 State is the main investor
5State is the main
entrepreneur
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ROLE OF SOEs
Development of human resources. Development of state capacity. Continuous upliftment of skills. Development of markets. Focus on capturing a dominant
market share
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QUALITIES OF A VALID VISION
It can be communicated in 10 minutes
It requires people mobilization to get
support
It requires resource mobilization for the
things to happen / possible (Peter Drucker)
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6 D FRAMEWORK (1)
Digitalization
Disruptive Innovation
Deceptive low market growth
at first
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Demonetization
6 D FRAMEWORK (2)
Dematerialization
Democratization
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SUPER SOE FORMATION
There is a need to form a
super SOE chaired by
the President /
Nominee
Each parastatal will contribute to assets to the
super SOE
Examples of Super SOE are
TEMASEK Model in
Singaporeand Chinese
SOEs (Standard Bank)
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INTERNATIONAL MARKETS AND
SUPER SOEs
The super SOE will trade in the global markets.
The money should go into a sovereign wealth fund (Norway)
The President will decide on the income distribution to SOEs
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BENCHMARKING PARTNERSHIPS
Avoidance in
reinventing the wheel
Possible benchmarking
partners are:
Botswana SOEsSingapore SOEsMauritius SOEs
Chinese SOEsMalaysian SOEs
Form benchmarking
(intelligent copying) with
winners
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TRADING PARTNERSHIP
The super SOE should have partnership to manage
penetration of international
markets The international
partner should own a maximum of
10% in the super SOE
Remuneration of
international partners is
performance based
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ECONOMIC LIBERATION
There are three phases of
liberation:
Phase One: Civil Liberties
Phase two: Political liberation
Phase three: Economic liberation
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PHASE ONE: CIVIL LIBERTIES
Right to free speech without
fear of repression
Right to form unions
Right to protest against the
government
Right to strike
Right to for civic organizations (Tajamuka,
# This Flag)
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PHASE TWO: POLITICAL LIBERATION
Right to contest for governance power
The right to form political
parties
Right separation of powers doctrine
Right to take government to
court
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PHASE THREE: ECONOMIC LIBERATION
Access to jobs
Access to housing
Access to clean water
Access to education
Economic fairness and
justice
Effective land reform and distribution
(Latin America
Most difficult phase:
Right to own property
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EIGHT STAGES OF SUCCESSFUL LARGE SCALE CHANGE
Create a sense of urgency among key role players
Formation of a guiding team
A heavy dose of empowerment
Short term wins.
Consolidation of early changes
Creation of uplifting
vision and strategies
Communicationof vision and
strategies
Make change stick / sustainable
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STEP ONE: CREATING SENSE OF URGENCY
Create a sense of urgency among key role players
In small organizations the number is 100
In large organizations its
1000
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STEP TWO: GUIDING TEAMA guiding team should have the
following : Credibility Connections
Skills Reputations
Required formal authenticity to provide change
leadership
Single person, weak task force and complex governance structures
undermine change
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STEP THREE: UPLIFTING VISIONS AND STRATEGIES
Clear, simple uplifting visions and strategies.Detailed plans and
budgets are necessary but
insufficient Implementation speed is a must
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STEP FOUR: COMMUNICATION FOR BUY IN
Communication of vision and strategies is
crucial.
Simplicity, symbols and
repetition are key
It builds energy and
understanding to reach a
critical mass
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STEP FIVE: EMPOWERMENTA heavy dose of
empowerment
Removal of action
obstacles and not giving up
power
Focus is on inadequate information
and information
systems as well as individuals
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STEP SIX: SHORT TERM
WINS
Short term wins are critical
They provide credibility, resources
and momentum
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STEP SEVEN: EARLY CONSOLIDATION OF CHANGES
They provide
the waves of
change
Early changes
should be
consolidated
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Make change stick
by creating a new
culture.
Continuous new
and winning
behavior
STEP EIGHT: INSTITUTIONALIZATION OF CHANGE
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MEASURES OF AN EFFECTIVE VISION
A vision is
creating the
leadership
It must be
supported by the
rank and file
It must be
detailed
It must be
inspiring ( Joel
Barker – The
Business of
Paradigm
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PEOPLE DEVELOPMENT
Development does NOT start with financial capital.
Development starts with the development of people. (Fritz Schumacher – Small is
Beautiful)
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THANK YOU