Transforming State-Owned Enterprises - Integrity Group Barbados

State-Owned Enterprises (SOEs) are once again back in the news on the proposal that they are to be reorganised for greater efficiency. This has been accompanied by talk of greater union involvement in the process, which suggests that some employee retrenchment is anticipated. I hope the Government is giving consideration to other aspects of organisational change which may have a greater impact on the performance of our SOEs. I would like to suggest a couple of areas that need attention, based on my personal experience in this area.

The first is the issue of political influence in the hiring of employees at Government controlled entities. This was raised as the major concern by a manager of an SOE during a Government committee meeting set up to investigate the SOEs.

Ironically, that manager was also a political appointment with no previous experience in that position. Our political system relies on rewards of employment to recognise the support given to the party in one form or another. This situation is a reality and one that is unlikely to change. However, the political directorate must take responsibility for managing such appointments, so it doesn’t corrupt the governance of the SOE.

The other issue that significantly affects our SOEs is the way they are managed. It is antiquated and completely out of date in achieving good performance. Everyone wants to do the job of the level below them. Ministers want to direct, directors want to manage and managers want to do line work. We do not identify responsibility clearly and then, most importantly, we do not hold anyone accountable. The unfortunate truth is that we have too many senior people who are not competent to do their job.

No amount of reorganising line-level positions will correct this situation.

This is all part and parcel of the way successive governments have managed our national affairs and, in many ways, these shortcomings have been accepted as a fact of life. Correcting this situation requires transformational change and a break from some of our traditions, particularly those that have long colonial roots. This matter was recently addressed by our Prime Minister in her budget speech, in which she spoke of transformational change towards a vision of excellence. I genuinely hope that the transformation is directed at the management and political influence of the SOEs and not just simply at the level of the workers. –  Chris De Caires (IGB)