Currently
State owned enterprises (SOEs) in Sri Lanka are going through issues due to a
lack of vision and corporate strategies to achieve goals and objectives. More
than everything, the tone at the top does not demonstrate honesty and ethical
behavior when conducting its operations. SOEs need to be governed by a strong
Board and be led by a Chairman with extensive business acumen and who could
demonstrate commitment to honesty, ethical strength, reliability, and fairness
through action.
Laksala’s current Chairman (Mr. Muhammed Hamza) and the Board which comprises with
representative from the Treasury and the Line Ministry have set the tone by
defining management’s leadership and commitment towards openness, honesty,
integrity, and ethical behavior.
Laksala’s Chairman is adopting all best practices in the corporate sector to
ensure it run as a profitable organization which functions with a set of
processes to create, communicate and deliver value to the customers and manage
customer relationships so as to benefit the organization and the
stakeholders.
SOEs
that are carrying out commercial operations are provided with all the support
by the Treasury and the Government Auditors. Treasury officials and the
Government Auditor understand the nature and type of the operations the SOEs
are conducting. However, if the management team is weak and if they do not lead
by example, then the SOEs are unable to comply with the required laws and
regulations by the Government. Nobody can blame red tapes and the auditors for
inefficiencies in SOEs. If the management is planning its activities, identify
and manage risks, the SOEs can be operated by effectively and efficiently by
complying with laws and regulations.
Many
SOEs do not have standard operating procedures (SOPs), due to this boards who
get appointed through the ministry with political changes, do conduct
operations according to their whims and fancies. Therefore the best course of action
the SOEs should adopt is to appoint SLIDA to draft SOPs for the SOEs. Laksala
has taken initiatives to appoint SLIDA to draft its SOPs already.
Further,
when state owned enterprises initiate and attempt to operate with a vision by
devising strategies to execute the corporate goals and objectives, the external
forces especially the competitors attempt to sabotage the internal operations
and bring disrepute to the organization by applying all hostile methods. It is
true that SOEs conduct its operations under strict guidelines with many red
tapes. However, when SOEs are carrying out commercial operations and taking
initiatives to run as a corporate by adopting best practices, the internal and
external forces who cannot withstand change suddenly remember all guidelines
and taking action to remind the management and general public of all such
guidelines to sabotage the operations.
I
strongly believe that all SOEs in Sri Lanka should appoint Chairmen and Boards
with business acumen to run the operations with a clear long term vision with
properly laid down corporate plans. Further, the policies related to human
resources (HR), especially performance evaluation should be KPI driven and not
to adopt departmental and ministry HR practices to SOEs.
By Madhura De Silva, CEO/ Director General, Laksala