Transforming Public Entities: A path to greater efficiency

TANZANIA: IN an era marked by rapid technological advancements and evolving societal expectations, public entities are under increasing pressure to transform.

This transformation is not merely a trend; it is a necessity for improving services, enhancing citizen engagement and fostering a more efficient government.

In this transformative journey, the Office of the Treasury Registrar (OTR) has emerged as a beacon of progress, spearheading a series of initiatives designed to enhance the performance of State-Owned Enterprises (SOEs).

A key element of these initiatives is the strategic granting of autonomy to public entities, fostering an environment ripe for creativity and enables swift decision-making.

The government’s overarching goal is to empower these entities to adopt a pro-business stance, reducing their reliance on the Central Government and scaling up their contribution to the consolidated fund.

The government believes that it is by allowing these enterprises to operate with greater independence and minimal interference, that they can better meet market demands and improve overall efficiency.

Recently, Mr Nehemiah Mchechu, the Treasury Registrar, announced that 57 SOEs have been granted autonomy as of August 12 this year.

Additionally, other SOEs are being closely monitored for potential autonomy, indicating a commitment to expanding this progressive framework and fostering a more dynamic economic environment.

He aims for all 309 SOEs, with an investment capital of Sh86 trillion as of June this year, to operate efficiently and deliver value for money.

Currently, only 91 of these entities are operating commercially.

This raise concerns as non-commercially viable SOEs place a financial burden on the state, necessitating subsidies that could be better allocated to public services or infrastructure.

This scenario underscores the need for reform, possibly through restructuring or the adoption of market-oriented practices to enhance performance.

However, any changes must carefully balance public interests with economic sustainability to ensure that the objectives of the SOEs align with the broader goals of the state.

On the other side, of the 91 enterprises which are commercially viable, those which are 100 percent owned by the government, are only 35.

On the other side, the majority of commercially viable firms, 56, have the government as a minority shareholder and only 35 as 100 per cent shareholder.

If the majority of commercially viable firms, have the government as a minority shareholder, it suggests that the private sector plays a dominant role in the economy.

This situation can be both a blessing and curse.

With private firms leading, market forces may drive innovation and efficiency, this is a blessing.

These firms are likely to be more responsive to consumer demands and competitive pressures.

However, on the other side of the coin, the government, as a minority shareholder, may have limited influence over the strategic decisions of these firms.

This can mean that public interests are not fully represented in corporate governance.

It is on those grounds that the TR said in the ever-evolving landscape of governance, embracing transformational change within public entities is not merely a choice; it is an imperative.

Transformation is not a walk in the park. However, we have no choice, but to embrace it,” underscored Mr Mchechu.

Barack Obama, the former US President once said: “Change will not come if we wait for some other person or some other time. We are the ones we have been waiting for. We are the change that we seek.”

This is a call to action for individuals within public entities to innovate and drive transformation.

The government’s commitment to transformation not only invigorates public organizations, but also ensures they remain responsive to the aspirations of the communities they serve.

Citizens expect their government to not only provide services, but to do so in a way that is efficient, user-friendly, and innovative.

As populations grow and become more diverse, public entities must adapt to meet the varying needs of their constituents.

This requires a shift from traditional methods to more agile, technology-driven approaches.

Mr Thobias Makoba, the government’s chief spokesperson said recently that for transformation of SOEs to be successful, effective communication is inevitable.

He said clear communication fosters a shared understanding of the vision and objectives behind the transformation process. “

When leaders articulate the reasons for change and the expected benefits, employees are more likely to embrace new initiatives,” insisted Mr Makoba, who doubles as the Director of Information Services Department.

As Simon Sinek, an English-born American author and inspirational speaker on business leadership, aptly puts it: “People don’t buy what you do; they buy why you do it.”

…. The same principle applies to employee engagement – when employees understand and connect with the “why” behind their work, they are more likely to be engaged and committed to the organisation’s success.

Sahara Ventures Chief Executive Officer Jumanne Mtambalike said in the recent past that in public organizations, transformational change typically involves adopting new ways of thinking and operating to improve service delivery, increase efficiency, and meet the evolving needs of citizens.

“This change is systemic, often affecting the entire organization, and aims to shift mindsets, improve capabilities, and enable long-term positive impacts,” he asserted.

Transformational change, He emphasised is different from incrimental change, which focases on small improvements. It requires, he went further to say, reimagining the organisation’s mission, governance, structure, and interaction with stakeholders.

The key drivers of transformational change in public institutions include strong leadership with a clear vision and technological advancements that enhance efficiency and service delivery.

They also include and regulatory shifts that align institutions with new mandates and reforms, and growing citizen and stakeholder demands for transparency, accountability, and better services.

“Together, these drivers push institutions to innovate, adapt, and improve their operations to meet evolving societal needs,” concluded Mr Mtambalike.

Winston Churchill, the former Prime Minister of the United Kingdom once said: “To improve is to change; to be perfect is to change often.”

This highlights the necessity of adapting for sustainable progress.

Dr Lufunyo Hussein, Principal of Bandari College, recently emphasised the importance of adaptation for public entities to improve their efficiency and effectiveness.

He stressed that successful transformation requires a commitment to employee training.

Best practices suggest that organisations should invest up to 10 percent of their wage bill in training during transformative periods to ensure that employees are equipped with the necessary skills and knowledge.

Peter Drucker, Austrian American consultant and educator, once said: “The best way to predict the future is to create it.” This emphasises the proactive role that training plays in shaping the future of organisations.

Across the globe, several public entities are leading the way in transformation: Estonia: Often cited as a digital government pioneer, Estonia has integrated e governance into nearly every aspect of public service.

Citizens can access a wide range of services online, from voting to healthcare, making government interaction seamless and efficient.

Singapore: The Smart Nation initiative aims to harness technology to improve the quality of life for citizens.

With extensive data collection and analysis, Singapore’s government can respond quickly to citizen needs and optimise urban planning.

Barcelona, Spain: By implementing a participatory budgeting process, Barcelona has empowered citizens to have a direct say in how public funds are allocated.

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This initiative has not only increased engagement but has also led to more relevant and impactful projects.

The transformation of public entities is not just a response to external pressures; it is a proactive approach to creating a more effective, responsive and inclusive government.

By embracing technology, prioritising citizen engagement, and fostering a culture of innovation, public entities can navigate the complexities of the modern world and emerge as leaders in public service.

The future is bright for transformed public entities, where efficiency meets engagement, and citizens are at the heart of governance.