‘’Work harder than you think you did yesterday’’0 956
Appalled by the rise of undernourishment during the past one and a half decades reaching an alarming estimated 821 million people by mid last year, the World Congress on Food and Nutrition met in December in Dubai, and focused on ‘Discovering new advances on food and nutrition for global citizens’. Meanwhile in Sri Lanka, SDK United Agri Ventures (Pvt) Ltd with its registered office at Pagoda in Nugegoda and plantations in Anuradhapura and Monaragala, has introduced high nutritional value food in Soya, and a vegetable oil under the name ‘Omega’ to the consumer market at a very affordable price, fulfilling the nourishment needs of Sri Lankans. BiZnomics recently spent time with the Chairman of United Agri Ventures (Pvt) Ltd Athula Senevirathne, listening to his success story. Commencing by revealing that on completing his academic career, his aim was to be a KDU military officer but that circumstances led him in 1986 to join Unilevers where he quickly rose in position as overall in-charge of the company’s 200 acre prawn farm in Chilaw.
During tha period Senavirathne started his own gherkin cultivation employing 28 and subsequently, procured the prawn farm when Unilevers closed it down which became a turning point in his life.
He ran the prawn farm quite successfully catering to many a tourist hotel and customers such as
Japanese Airlines until he reached the top with exports to Australia. Explaining how he ventured into agriculture,
he states: ‘’During one of my trips to Anuradhapura to buy fish feed, a leading politician apprised me of maize and soya bean cultivated, and told me that cultivators were hard hit for lack of buyers for their produce. I then thought that I could do something for them’’. With banks assuring him financial assistance, Senevirathne moved forward, having in mind government decision to halt maize imports.
By Deepal Sooriyaarachchi. Management Consultant, Author, Speaker, and Executive Coach.Former Managing Director of AVIVA NDB Insurance and a Former Commissioner of Sri Lanka Inventors Commission.
The current crisis compels us to review all our operations from a ground zero position without taking knee jerk reactions. Experts who have examined many organizations that have survived major crisis whether they are internal or external driven, tell us one of the most important things is to consider what is the core purpose of the organization, what are the core capabilities of the organizations, and what are the strategic steps that must be taken leveraging them. In that situation what is equally important is asking the question of whether the same strengths will be relevant in the emerging new scenario. In our economy, the public sector plays a significant role. With 1.5 million public servants, more than 600, 0000 pensioners, and all the politicians accounts for at least 40% of the national expenditure.
There had been a number of efforts to rationalize and improve the public sector with various
initiatives. I myself was once volunteered to serve on one such initiative called the National
Administrative Reforms Commission ( NARC). But they were not done at times when the need
is so compelling. In management, we talk of showing the elephant in the room to make change relevant.
The present situation is an ideal moment to approach to Rationalize, Right Size, and Improve
the productivity of the public sector organizations because of a number of reasons.
1. The Current Financial Situation in the country is one of the worst we have been so the need to rationalize expenses is seen as one of the topmost tasks. 2. The last two months gave us ample opportunities to try newer ways of working and service delivery and people have experienced the efficiency and effectiveness of those so we will be able to sell the change. 3. There is a leadership that is visionary and willing to move the change agenda forward.
In order to develop a discussion and to move towards a national action plan the writer wishes to make a few proposals that can have far-reaching consequences. These are written not as an expert on public policy and administration but as a concerned citizen with some knowledge and experience in management.
1. CENTRALIZE VEHICLE OWNERSHIP
Most service organizations even in the public sector employee cost and transportation-related costs account for a high proportion of the overall cost. One can assume the same with the government agencies. I was trying to find out the latest statistics pertaining to the number of vehicles and associated costs but was not possible. But having led a government agency for a short period of three years I have made the following observations.
– Most government vehicles are overused and due to lack of cash flow reasons they are not maintained at optimum levels.
– Due to the very laborious process involved with selling off an old vehicle in many organizations, there are vehicles just left to decay. There are many such yards.
– Vehicle usage is not optimum. Every organization will have a number of vehicles.
– There is a lot of management time spent to ensure the governance processes involved with using these vehicles yet misuses are very common.
– Every institution is duty-bound to maintain detailed running charts and these have to be sent to the AGs department for scrutiny.
Rather than allowing every single organization to own vehicles, re-acquire all the non-strategic vehicles to a central transport service corporation that can be operated as a fully pledged cab company using an ICT platform such as Uber or Pick Me. Preauthorize the Type of vehicle that can be used by different grades of officers and encourage ride-shares by giving bonus points. This will cut down waste, improve efficiency, and be able to provide better quality vehicles for the officers to travel as well. Because this institution’s core responsibility is vehicle fleet management it will ensure proper maintenance and upkeep of vehicles. This kind of arrangement will provide valuable data to manage vehicle usage and resource planning. I am sure this is not a new suggestion.
2. MERGERS AND ACQUISITIONS
In order to optimize the scarce resources suggest organizations that have similar mandates and those that can produce better results through synergy be merged into single entities. To do this meaningfully a high powered cross-functional team must be appointed with Legal, Financial, ICT, Human Resources, and Public Administration experience and expertise. More importantly, those individuals must be those capable of thinking out of the box.
Eg all trading organizations such as state trading Corporations, etc can be brought under LANKA SATOSA.
The businesses that are better done by the private sector the government can exit ie. Salusala and Laksala etc. All research institutes must be brought under a central authority to ensure proper coordination where resource allocation must be done based on the short to medium term needs of the country. This can avoid duplication of limited resources.
There can be many other departments and agencies that do overlapping functions while there are no organizations to address newer issues. These are made more complex of the Provincial Council structure and the plethora of ministries created to accommodate politicians to ensure power consolidation in the parliament. These structural changes will require changes in respective acts and comprehensive M&A work. Before embarking on detailed work a preliminary study should be done to reveal the financial and social impact. However, the starting points could be restructuring commercial organizations.
2. CREATE CENTRALIZED SUPPORT SERVICES.
Centralize all the support services such as Human Resources, Administrative, Procurement, and Finance functions of those clustered entities so they can focus on core delivery function. This model should be tried at least for different institutions under a single ministry.
3. WORK FROM HOME (WFH) and Provide end to end service online.
Identify functions that can be done remotely in as many organizations as possible and create
infrastructure, and work norms for the state employees to work from home, take files home
complete, and deliver on given deadlines. They will have to be monitored not by the number of
hours they work but by the delivery of outputs. This will ease off the pressure on transport, operational costs of offices, and the personal costs of employees. Some institutions can work for less than five days a week without affecting delivery to the public. Encourage the public also to visit the government offices by making prior appointments. There can be some other organizations whose work can be done significantly online ie obtaining ISBN numbers by authors and facilitate online payments and credit card payments.
4. STRENGTHEN THE GRAMA SEVAKA OFFICE
Strengthen the GS office by converting it to the GS division based government contact center by attaching at least one of the newly recruited graduates. His/her job should act as a facilitator between the citizens and different government institutions. He or she should read and explain all the requirements to citizens, certify and upload applications and supporting documents, give clear instructions as to how to approach requirements needed by the government. This should ease the work of service providers, reduce repetitive visits by the citizens. The GS office should be equipped with Internet Connections, Video Conferencing facility, and high speed or at least
a flatbed scanning facility.
5. STRENGTHEN THE POSTAL DEPARTMENT AS THE LAST LEG DELIVERY PARTNER FOR E-COMMERCE.
Allow the post offices to hire three-wheelers so the postman’s delivery area can be increased
and what can be carried too will be enhanced. This way they can specialize in delivering
pensions and such needs of the elderly, thus creating a very powerful user-friendly customer
service. Eventually, the profits can lead the postman to use their own Three Wheelers. POST is
the largest distribution network in the country. It might make sense for the Postal Department to
be converted to a commercial establishment fully owned or as a Joint Venture with a Logistics
company so Sri Lanka Post can be a fully pledged modern distribution network. If not, the
department will continue to be a major cost center without even being able to pay salaries of the
7. DISTRIBUTION OF PHARMACEUTICAL ITEMS.
Leverage the experiences of the recent medicine distribution through post offices and build a centralized platform that can be used by private as well as public pharmacies to distribute
medicine and dispense them to patients. Doctors should send the prescription to the preferred
pharmacy of the customer. They can either collect or get them delivered. This will improve the
regulated medicine consumption. There may be some legislative changes needed to make
8. A PLATFORM TO BOOK GOVERNMENT SPACES
Create a platform such as booking.com where every single meeting room is listed, so they can
be used and shared by different government users and if available even by private sector
organizations. This will generate new income for those institutions.
These are just a few simple ideas that can propel changes in the system if implemented.
The real estate sector is one of the most internationally renowned sectors. In India, the real estate sector is rated the second major sector following agriculture. Until around mid last year the real estate sector in Sri Lanka had been a prospective business investment with good returns. Uncertainity, however, which set in the property market resulted in the residential sector taking a declining trendwith many construction projects being on hold, property developers facing difficulties in re-paying their loans, and some even ending bankrupt.
While property developers are weighed down, being unable to earn expected profits, those who buy apartments to sell them at gains are saddled with cost excursion. In Sri Lanka, land prices keep rising year after year. The Colombo District Land Price Index compiled by the Central Bank reached 132.2 during the first half of 2019 recording an increase of 13.6% compared to the first half of 2018. The sub-indices of land price, namely Residential, Commercial and Industrial have contributed to this increase. The averge price of a residential lot was up 15.3% in 2018 and in Colombo, by 15.5%.
There is evidently a bubble in the market when buying a property with intention to sell it at a higher price although not on a very high scale in Sri Lanka, due to land prices constantly rising. At some point of time this bubble will surely burst where none of the apartments could be sold.
The subdued economic performance which resulted in the drop in the real estate sector is attributed to weak domestic demand, continued tightening in monetary conditions, government consumption spending, stagnant fixed investment, and lower net exports.
The tightening monetary policy enforced on the recommendation of the IMF was one cause that led to drag down domestic demand and investments, and further, inconsistent economic policies driven by instability adversely affected public and private sector investments, the key drivers of economic growth.
The real estate sector, which is described as property consisting land and the buildings on it as well as the natural resources including crops, water, and mineral deposits, is linked with the overall performance of the economy. Hence fluctuations within the sector magnify ups and downs of the overall economy. As a result of this link, large movements in the real estate market tend to amplify fluctuations in the overall economy in addition to potentially destabilising the financial system. An example of this is the financial crisis where the real estate market had vast and disasterous effects on the overall economy on a global scale.