Can we switch them

off completely or

activate flight

mode

PARASTATAL REFORMS-IS PRIVATIZATION A SOLUTION OR THE PANACEA

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

PREFERRED STATE MODEL

Examples of developmental

states are:

Botswana, Singapore, China,

Malaysia and Mauritius

The winners of today operate on a

developmental state model

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

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

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)

6 D FRAMEWORK (1)

Digitalization

Disruptive Innovation

Deceptive low market growth

at first

Demonetization

6 D FRAMEWORK (2)

Dematerialization

Democratization

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)

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

BENCHMARKING PARTNERSHIPS

Avoidance in

reinventing the wheel

Possible benchmarking

partners are:

Botswana SOEsSingapore SOEsMauritius SOEs

Chinese SOEsMalaysian SOEs

Form benchmarking

(intelligent copying) with

winners

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

ECONOMIC LIBERATION

There are three phases of

liberation:

Phase One: Civil Liberties

Phase two: Political liberation

Phase three: Economic liberation

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)

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

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

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

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

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

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

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

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

STEP SIX: SHORT TERM

WINS

Short term wins are critical

They provide credibility, resources

and momentum

STEP SEVEN: EARLY CONSOLIDATION OF CHANGES

They provide

the waves of

change

Early changes

should be

consolidated

Make change stick

by creating a new

culture.

Continuous new

and winning

behavior

STEP EIGHT: INSTITUTIONALIZATION OF CHANGE

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

PEOPLE DEVELOPMENT

Development does NOT start with financial capital.

Development starts with the development of people. (Fritz Schumacher – Small is

Beautiful)

THANK YOU