[09/07, 05:36] +265 881 18 41 97: 🌐 PUBLIC SECTOR MANAGEMENT

[PSM-426]

🍊 PRESCRIBED TEXTS

- Flynn Norman (2007), Public Sector Management, SAGE Publication

- Rose A. & Lawson A. (1999), Public Services Management, FT Prentice Hall.

🍑 Recommended Texts

-Denhardt, R. & Denhardt, J. (2009). Public Administration: An Action Orientation. Thomson

Wadsworth.

- Scholes, K. & Johnson, G. (2000): Exploring Public Sector Strategy. FT Prentice Hall.

🍞 Please note that your LEAD TEXT BOOK shall be Norman Flynn's "Public Sector Management" almost
all the way except for some topics when I shall be drawing from other sources.

Please strive to attend my class sessions.

Good luck

Chibagali Chikoko Thindwa 🌴.

[16/07, 04:31] +265 881 18 41 97: PSM426 NOTES.

1. GOVERNMENT'S CORE BUSINESS OBJECTIVE

- the upliftment & advancement of quality & equitable living standards of its citizenary through scio-
economic develpment.

2. MALAWI'S PUBLIC SECTOR PROFILE:

🐘 The Central Government

-line Ministries, Departments, & Agencies ( MRA, ACB, RBM, Anti-Monopoloy, etc etc)

🐂 The Local Government

-District Councils, City Councils, Manucipalities

🐎 Statutory Corporations/ Parastatals/ Commissions

-Utilility Organizations (commercial & non-commercial) eg. Power, Water, etc

- Education Institutions
-Food Reserve

-Malawi Trade & Investment Centre, etc, etc..

[16/07, 04:45] +265 881 18 41 97: ⛔ PUBLIC SECTOR ENVIRONMENT & LANDSCAPE

- Stakeholders & interests

⛔ INFLUENCERS, SHAPERS, FORCES of PUBLIC SECTOR MANAGEMENT

- STEEPLE+C factors, both local, international, & global

- Characterization of the business environment as

*DYNAMIC, *VOLATILE/ TURBULENT/ UNSTABLE, & *COMPLEX (INTERCONNECTEDNESS).

[16/07, 04:48] +265 881 18 41 97: ⛔ 4 CORE DISTINCTIONS BETWEEN PRIVATE & PUBLIC SERVICES....?

[16/07, 10:06] +265 881 18 41 97: 📌1. Fact that certain things are SOCIAL/ PUBLIC GOODS, embodied in
the fact that they produce EXTERNALITIES, or that the BENEFITS & COSTS accrue to people other than
those who benefit directly, eg. EDUCATION/ ROADS/ SECURITY.....

- and also fact that people can not be excluded from certain benefits, eg CLEAN AIR/ STREET LIGHTING.

The foregoing "SOCIAL/ PUBLIC GOODS MODEL" proponents' argument is that the PUBLIC SECTOR
should provide services where there is "MARKET FORCE FAILURE".

Scholars NOTE! ...What constitutes PUBLIC Vs. PRIVATE GOOD/ SERVICE will also vary between different
SOCIETIES, ECONOMIC & POLICAL SYSTEMS, as well as DIFFERENT STAGES of ECONOMIC
ADVANCEMENT!

📌2.

[17/07, 06:01] +265 881 18 41 97: 📌 2. The second distinction is HOW SERVICES ARE FINANCED.

-Services are PUBLIC Services if financed mainly by TAXATION, rather than direct payments by individual
customers/ consumer/ users. Added to this distinction is that some Public Services are usually NOT
available for SALE, and that people can NOT necessarily have more if they pay more!

Even those services which are COMMERCIAL in the sense that money is exchanged at point of
consumption are still Public Services, if CONTROLLED through POLITICAL PROCESS and ACCOUNTABILITY
for service delivery is through POLITICIANS, and NOT SHAREHOLDERS.

📌3. Third difference is OWNERSHIP and by WHOM service PROVIDERS are EMPLOYED.

Traditionally, Public Services we're provided by Public Employees in Public Buildings & Premises. This has
changed after advent of OUTSOURCING/ CONTRACTING-OUT and PRIVATIZATION, as a modern more
resources efficient & effective tool of business management, eg. RUBBISH/ REFUSE COLLECTION &
DISPOSAL, in which employees are NOT Public Employees or Civil Servants, nor is the EQUIPMENT.
"BUT", and note, the SERVICE DETAILS are laid out and provided by the LOCAL AUTHORITY or Assembly.

📌 4. Fourth determining factor is WHEN and WHERE goods and services are sold ONLY to people who
pay for them! That's outright private.

In the private sector, the core business TASK is essentially three fold, viz;

(a) to ATTRACT customers/ consumers, i.e. trigger CONSUMERISM

(b) PERSUADE them to pay a price that produces a profit, and

(c) RETAIN them LOYAL.

NOTE, however, that currently, PUBLIC SERVICES also have to ATTRACT people to use them but are
RARELY rationed by PRICE.

SCHOLARS NOTE!- If the foregoing differences did NOT exist, then MANAGEMENT of PUBLIC & PRIVATE
SECTORS would be identical!!!

( 🍇 Please read my personal lecture notes on OUTSOURCING as a Modern Management Technic, which
will be supplied to you through Class Rep.

Patrick Banda!

Next Topic will be PRIVATIZATION......)

🍎Enjoy!

[18/07, 05:51] +265 881 18 41 97: 📌 DIGRESSION on Economic Concept of MARKET FORCE FAILURE.....

Basic principle of Economics is that DEMAND will always create SUPPLY, and that the aggregation of
these two MARKET FORCES will in the long-run create an EQUILIBRIUM. Obviously this principle does
not hold because it is based on that very annoying Economists' assumption of "paribus"! This does not
and will not apply for certain goods & services, particularly of social/ public in nature.

For certain goods and services, demand might exist, but supply maybe constrained by some barriers/
factors, and thus result in either zero or distorted & "Unequitable Supply" distribution of certain
ESSENTIAL GOODS & SERVICES. Example, WATER & ELECTRICITY generation & distribution requires such
massive & expensive investment that if left to market, forces would result in distortions, thus, MARKET
FORCE FAILURE! And therefore Government will usually intervene and invest in such crucial amenities
for socioe-conomic develpment.

[18/07, 06:20] +265 881 18 41 97: ⛔ PRIVATIZATION

Privatization is the transfer of certain Government Concerns/ Businesses into Private Hands.

.... remember Government's Core Business Objective?

The basic underlying assumption and RATIONALE to Privatization is that if you allow CITIZENS to own
economic undertakings then they become empowered to SELF-SUSTAIN and also employ others, and
thus facilitating a more SUSTAINABLE mode of "GDP-GROWTH", the aspiration of all Governments, as it
is an accepted measure of develpment as well as Government Performance.

The Malawi Government adopted this approach through the establishment of the PRIVATIZATION
COMMISSION under the PRIVATE ENTERPRISES ACT of 1996.

Over the years, it successfully divested or liquidated a number of Public Enterprises, which contributed
to the growth of the Malawi Stock Exchange, and increased the general public ownership of previously
Stated Owned Enterprises (SOEs)

[18/07, 08:04] +265 881 18 41 97: +++++++++++++

📌📌 OUTSOURCING

(Sub-contracting)

....today, Many GOVERNMENT'S, Global & Transnational Enterprises, and Corporations are increasingly
advocating and engaged in OUT-SOURCING people, activities, operations and services, mainly for
LOWERING OPERATIONAL COSTS & obtaining QUALITY & SUPERIOR SERVICES and products (Note that
this Management Model has its genesis from private sector, & therefore, a copy-cat)

The model has the following rationale & advantages, vi

1. OUT-SOURCING frees and releases resources, that can then be re-directed & focused on the
Government's Core Business Activities and COMPETENCIES! (the analogy here is Government does not
have competencies in certain areas of activity)

2. Risk- Reduction (Risk Management); eg. The American space Agency, NASA, has released its space
explorations to Private Sector; Russian use of ,"Private Army" in Ukraine; North African Nations use of
Private Armies; advent of Private Police, etc etc

3. Achievement of Operational Excellence, through effectiveness, efficiency (PRODUCTIVITY)

4.INNOVATION & COMPETITIVENESS in the Global arena, from Globalization, which is characterized by *
DYNAMISM * TURBULENCE * VOLATILITY *INSTABILITY & * COMPLEXITY

5. ACCOUNTABILITY

6 TRANSPARENCY

7. DELIVERY SPEED, etc, etc

+++++;+++++++

PSM-426 ASSIGNMENT 1 (INDIVIDUAL)

🚩....What, in your opinion, are the major CHALLENGES to Government OUT-SOURCING as a Public

Sector Management Technique, in the CONTEXT of MALAWI?

+"HAND-WRITTEN"

+DUE DATE & MAX.PAGE VOLUME to be negotiated in Class tomorrow.

🍰🥧🥣 Enjoy, and Bon Appetit....!

[19/07, 05:36] +265 881 18 41 97: ⛔ADVENT of PUBLIC- PUBLIC- PARTNERSHIPS ( PPPs)

📍 Following increased popularity and success stories of PUBLIC PRIVATE PARTNERSHIPs world-wide,
Malawi embraced the PPP-Concept for the first time in year 2005. Institutional review led to the passing
the PPP-Policy in 2009, and later the PPP-Act 2011, as the enabling tools for implementation of PPP.
Following the passing of the parliamentary bill, the MALAWI PRIVATIZATION COMMISSION was renamed
the PPP Commission in 2012 to catylise the Country's PPPs.

📌 JUST WHAT EXACTLY ARE PPPs?

Basically, PPPs are COOPERATIVE institutional arrangements between the Public and Private Sectors.

A Public-Private Partnership is a legally enforceable CONTRACT in which a CONTRACTING AUTHORITY

partners with the private PARTNER to establish, build, expand, improve, or develop infrastructure or
service, or operation/ business, in which the Contracting Authority and the Private Sector Partner
contribute one or more of of the following,

* KNOW-HOW

*FINANCIAL SUPPORT

*FACILITIES

*LOGISTICAL SUPPORT

*OPERATIONAL MANAGEMENT

*INVESTMENT, or

*OTHER INPUTS
for the successful deployment of a product or service, and for which the CONTRACTING AUTHORITY and
the PRIVATE SECTOR PARTNER is COMPENSATED in accordance with a PRE-AGREED PLAN. Typically in
relation to the RISK & VALUE of the undertaken and the OUTCOME to be delivered or achieved!

[19/07, 06:20] +265 881 18 41 97: 🚫 CORRECTION!

Topic & Title should read... PUBLIC-PRIVATE PARTNERSHIPS.

......for future future, I will advocate use of acronym, to avoid same mistake!!, Good morning!

+++++++++++++

[19/07, 06:35] +265 881 18 41 97: ⛔.... (and in that accord, we shall later deal with RISK Identification &
Management.)

[19/07, 07:05] +265 881 18 41 97: ⛔ Usually, the Private Entity infrastructure service delivery functions
that would otherwise have been provided through Public Sector procurement and assumes and assumes
the associated RISKS through a long-term contract (typically ranging from 10 to 50 years). In terurn, the
Private Entity a beneficial/ financial remuneration according to PRE-DEFINED PERFORMANCE CRITERIA,
which may be derived from

(a) Service Tariffs or User Charges

(b) Government Budgets, and or

(c) a combination of the foregoing.

PPPs have lately become as a form of organizing INTERFACE between Public and Private organizations
around the Globe.

PPPs are said to be a "DOUBLE EDGED SWORD" although they signal COOPERATION & DIALOGUE
Sectors and associated with TRUST whose aim is to make the PUBLIC SECTOR closely RESEMBLE the
PRIVATE SECTOR

- with different/ conflicting interests championing!

- usually defined as a more SUITABLE COOPERATION between Public and Private Sectors, in which JOINT
products and services are developed and delivered, in which RISKS, COSTS, & PROFITS are shared, as
opposed to the past when the two entities were viewed as ADVERSARIES/ rivals!....

[19/07, 13:37] P4TR1CK: ~Government had therefore to Re-think; Re-engineer; Re-calibrate; and Re-
configuer its intervention STRATEGY! Thus, the genesis of PPP-Commission!

[19/07, 13:37] P4TR1CK: ~Privatization had TWO major shortcomings 1. Unsustainability, absence of
Recapitalization (Leakages). 2. Loss of the Social Responsibility aspect as Private Sector's core concern is
PROFIT, before PEOPLE & PLANET.
[19/07, 16:33] +265 881 18 41 97: ⛔ good job as usual Patrick! Many thanks! The foregoing post by
Patrick is vital for your compression of transition from Privatization to Triple-"P" Concept...

⛔ Tripple-Ps are associated with extremely HIGH EXPECTATIONS about HOW you can renew and
REFORM Public Sector Service delivery, which has for a very long time been associated with NEGATIVE
POOR SERVICE DELIVERY IMAGE!

⛔ DEEMED ADVANTAGES (POPULARITY of PPPs).

(i) COST & RISK SHARING & HANDLING! Private Sectis renowned for EXPERIENCE in Risk Management.

(ii) CHEAPER FINANCING & COST OVER-RUN REDUCTION

(iii) EXPERTISE & COMPETENCY DRAW

(iv) NEW effective, efficient & SUSTAINABLE PUBLIC SECTOR ECONOMIC MANAGEMENT ORDER! i.e.
through their focus on COOPERATION, RISK MANAGEMENT, LONG-TERM RELATIONSHIP CONTRACTS,
INNOVATION, MARKET/ CONSUMER ORIENTATION and INCLUSIVITY, they represent an ADVANCEMENT
on the the traditional PROCUREMENT & CONTRACTING-OUT, as well as the PRIVATIZATION Model.
WHY? Because they provide an EQUITABLE coverage & blend of STAKEHOLDER INTERESTS ( i.e. PUBLIC,
PRIVATE, PRESSURE GROUPS, NPOs, NGOs, CAUSAL GROUPS, etc... INCLUSIVITY) that is enshrined in the
TRIPLE-P POLICY, as follows, viz:

1. CREATE PUBLIC VALUE

2. PROTECT PUBLIC INTERESTS

3. PROVIDE for EFFECTIVENESS & EFFICIENCY

4. PROVIDE for ACCOUNTABILITY & RESPONSIBILITY

5. AFFECTED INDIVIDUALS to be CONSIDERED ( CORPORATE SOCIAL RESPONSIBILITY)

6.EQUITY; balanced and equitable provisios, WIN-WIN equations!

7. PUBLIC ACCESS & TRANSPARENCY! CHECKS & BALANCES Ensures ACCOUNTABILITY

8. RESPECT for CONSUMER RIGHTS ( as enshrined in the J.F. Kennedy's RIGHTS BILL, ie.

* Right to Safely

* Right to be informed

* Right to choice

* Right to be heard
* Right to privacy

* Right to repair ( recent J.Bidden's)

[20/07, 04:57] +265 881 18 41 97: ****************** ⛔(PPPs continued....

9. Usually embrace VIABILITY, FEASIBILITY, SUITABILITY, & ACCEPTABILITY principle, which guarantees
SUSTAINABILITY

10. Use and involvement of the Private Sector to deliver Public Services is viewed as a SOFTER OPTION
for Government to draw on Private Sector Expertise than the more direct strategy of Privatization &
Sub-Contracting/ Out-Sourcing

11. A BALANCE is achieved in terms of having a say or contributing to POLICY & DIRECTIONAL DECISION
MAKING. This is congruently in line the current REFORM POLICY of bringing the Public Sector CLOSER to
the MARKET (other than Capitsl Hill!), closer to the CLIENT, CUSTOMER, with inherent of ADVANTAGES!
(🚦Students; What are the envisioned advantages here?????)

12. Provide better incentive & motivation for PERFORMANCE, because a failure to perform by the
Private Partner means payment would NOT be effected, or there would be some sanction/ penalty,
usually enshrined in the Contract Docket. Notably, the Contract will include a Key Performance Indicator
schedule. (KPI-Model)

13. Enhanced Public Sector/ Public Service Management- because Government would now be
MANAGING, rather than delve into unchartered territory of OPERATIONAL & Service Provisios, in which
it may NOT be competent!

⛔ "TRIPLE-P" PROCESS.(STEPS).

[21/07, 06:13] +265 881 18 41 97: 🌍🌎ECONOMIC NEWS UPDATE

..... the World Bank punches holes in Malawi Government Rate Policy Position.... it says " tightness of
Malawi's MONETARY POLICY insufficient and weak to contain pressures on inflation, which has
exponentially spiralled upwards for the past two years owing to MONEY SUPPLY INCREASE,

through continued rise in FISCAL DEFICITS!

.....Ndi zimenezo!!!!

____________🌏

[21/07, 06:16] +265 881 18 41 97: ....if you want to read more, Nation Newspaper, 19th July, Business
News, pages 13/14.🌎
[21/07, 07:09] +265 884 41 45 43: The Greenbelt Authority and Mpatsa Holdings Limited on Thursday
entered into a Public Private Partnership Agreement that will see the two parties working together in
irrigation and livestock agriculture projects.

The venture is one of its kind, involving a local company with great capability of contributing to the drive
of escalating agriculture commercialization and productivity.

Chairperson for the Greenbelt Authority's Board of Directors Counsel Wester Peter Kosamu said this
signifies the genesis of a long mile journey that will see Malawians reap the fruits of Government's
investment.

From this agreement a new company named Mpatsa-Greenbelt Mega Farm Limited will be put in place
to manage various projects including the 700 hectares Mega Farm at Khonjeni in Thyolo District where
high value crops will be produced.

Mpatsa Holdings Limited's Chairman Jimmy Korea Mpatsa said the trust that the Malawi Government
has put in his company is already a motivation for the company to deliver.

He said operations under the new company will primarily center around producing in high quantities
and quality to end hunger and earn forex for the country through exports of farm produce.

#SustainableIrrigation #foodsecurity #MalawiGovernment #MinistryOfAgriculture

[21/07, 15:00] +265 881 18 41 97: ⛔ TRIPPLE-P PROCESS

1. Determination & Establishment of OUTPUTS & DELIVERABLES, and CONDITIONS, among which is that
GOVERNMENT/ PUBLIC Partner only pays when PERFORMANCE delivery meets required STANDARDS.

2. One or more of animations take STAKE in the Partnership.

3. Inherent RISKS are identified, established & evaluated, and allocations with ENFORCEABLE
CONSEQUENTIAL FINANCIAL OUTCOMES.

4. Clear articulation of Government RESPONSIBILITIES & ACCOUNTABILITY MECHANISMS established.

5. INCLUSION of MECHANISMS that ensure and secure MONITORING throughout the Contractual period,
with clear KPI-Milestones!

6. Project Evaluation

7. Project CONCLUSION, DISSOLUTION, & EXIT!

⛔ "TRIPPLE-P" INHERENT RISKS.

Students NOTE! There is always Risk in every decision, undertakings and or activity in life!

Government recognizes & acknowledges RISK associated with PPP's, and therefore RISK ASSIGNMENT
and RISK MANAGEMENT is an integral part of particularly the ECONOMIC TYPE of Triple-Ps!

⛔ RISK TYPES!

.......

[22/07, 01:14] +265 881 18 41 97: ⛔ RISK TYPES

Essentially, depending on TYPE of operation/ undertaking, there could more or less be 13 RISK TYPES

viz:

1. Design/ Construction/ Establishment Risk (associated with COST, QUALITY, & TIME)

2. Commissioning & Operating Risk

3. Service Delivery Under- performance Risk

4. Industrial Relations Risk

5. Maintenance Risk

6. Technology obsolescence Risk

7. Regulations & Legal change Risk

8. Planning Risk (could be unrealistic)

9. Price/ Rates/ Levy Risk ( could be unrealistic/ unacceptable/ unaffordable, or overtaken by unforseen
environmental change)

10. Taxation Regime change Risk.

11. Residual Value ( book-value) Risk

12. Demand, or Volume/ Usage/ Consumption Value Risk (may change owing to STEELE+C factors)/
oscillations/ fluctuations.

13. Polical Regime Change.( the urge & desire to want to look different, may bring about even the silliest
& most absurd of changes, with heavy costs! eg. Kamuzu International Airport to Lilongwe International
Airport; Kamuzu Highway; Kamuzu Stadium; Ministries; etc

Note! Management Economists' prescribe an ARTICULATE, INTENSIVE, & EXTENSIVE ENVIRONMENTAL

AUDIT/ SCAN, bordering on the "STEEPLE+C Business Model" for RISK MITIGATION▪️

[22/07, 02:05] +265 881 18 41 97: ⛔RISK MANAGEMENT

Identification of risk involves an overview of the business operations to essentially establish WHAT
COULD GO WRONG, and the RESULTANT CONSEQUENCES & IMPACT.

RISK ASSIGNMENT requires asking & answering the following QUESTIONS

1. What are the likely SOURCES of risk?

2. What is the LIKELIHOOD/ PROBABILITY of the rik presenting itself/ happening?

3. To what extent can the risk be CONTROLLED?

4. What are the CONSEQUENCES of the risk occuring?

5. To what extent can the risk be MITIGATED/ REDUCED?

⛔ GENERIC RISK MANAGEMENT MODEL

(A) CONTAINMENT through CONTINGENCY & RECOVERY PLAN.

(B) HEDGING through forward Contracts.

(C) INSURANCE

(D) Management-

By-Hope (MBH)!

⛔ RISK ASSESSMENT & MANAGEMENT MATRIX.....

[22/07, 05:00] +265 881 18 41 97: 🌴 NOTICE

your PSM- MID-SEMESTER EXAM is scheduled for Thursday, 10th August, 2023, 9.30-11.39am PROMPT.
🌴🌴🌴🌴🌴🌴

[22/07, 10:06] P4TR1CK: PSM-426 ASSIGNMENT 1 (INDIVIDUAL)

....What, in your opinion, are the

major CHALLENGES to Government OUT-SOURCING as a Public Sector Management Technique, in the

CONTEXT of MALAWI?

+"HAND-WRITTEN"

Enjoy, and Bon Appetit....!

GUIDANCE

please spare me the details of "what" OUTSOURCING is all about, surgically isolate the assignment
question 'demands' before putting pen to paper!!!

[23/07, 03:00] +265 881 18 41 97: ⛔

....Class, before proceeding further, the following is another version o 4 MAIN GENERIC STRATEGIES for
RISK MANAGEMENT, viz

1. RISK AVOIDANCE; in which factors that give rise to risk are removed.

2. RISK REDUCTION;

is a strategy that takes cognisant of the fact that it is never in all instances can be avoided or removed;
but that ANALYSIS has enabled the identification of ways of reducing/ mitigating the INCIDENCE and
CONSEQUENCES of risk.

3. RISK TRANSFERENCE;

in which risk is passed on to another, third party, eg. an INSURANCE company.

4. RISK ABSORPTION;
entails ACCEPTANCE of potential risk with the expectation and hope that the incidence & consequences
of risk can be coped with.

(.....end......)

..

[23/07, 03:49] +265 881 18 41 97: Class Note!

I shall be walking you the the traditional RISK MANAGEMENT APPROACH using the "RISK ASSESSMENT
MATRIX" in class this week, (and please Patrick, flag me in class if I do not do this!)

⛔ ADVENT of PUBLIC SECTOR MANAGEMENT REFORMATION

1. STRUCTURE.

The point here is that the Structure of a Public Organization is important because it affects the
PERFORMANCE of Government in terms of EFFECTIVENESS & EFFICIENCY.

Major RE-ORGANIZATION and Structural Changes can its effectiveness and efficiency.

Since the 2000's, there has been a "SHIFT" towards NEW WAYS of organizing Government's Public
Operations. Most notably is the observed shift towards more MARKET- ORIENTED MANAGEMENT & a
focus on PRODUCTIVITY. This Organizational Revolution has transformed the Public Sector into a
COMPLEX MACHINERY, with multi-facetted dimensions! Note that this revolution has to a large extent
been en- vehicled & driven by rapid & unprecedented pace of environmental changes, including
STAKEHOLDER EXPECTATIONS and DEMANDS.

Terms like "JOINT-UP-GOVERNMENT" and "HORIZONTAL MANAGEMENT" (as opposed to the

bureaucratic Vertical Management) are now used to describe advent of the new management towards
greater SYNERGISTIC COHERENCE & BONDAGE. For instance,

current MANAGEMENT REVIEWS envisage and emphasize formation and use of TEAMS & NETWORKING.
These high-capability teams and networks have been branded names such as *CIRCUIT-BREAKERS,
*HARD-WIRED, *SOFT-NETWORKS, *HOT-TEAMS, etc, etc,....

2. ORGANIZATIONAL CULTURE.

[23/07, 09:22] +265 881 18 41 97: ⛔ ORGANIZATION CULTURE.

Integral part of Public Sector Reform is ORGANIZATIONAL CULTURE! This is from from established
emperical evidence that this can have a significant influence on Organizational Behaviour & ultimately,
PERFORMANCE. As is in Private Sector Management, there is currently embracement and for WHOLE
GOVERNMENT combinations of STRUCTURAL & CULTURAL CHANGES in the so-called "SECOND-
GENERATION PUBLIC MANAGEMENT.

⛔ INTEGRATED PERFORMANCE GOVERNANCE:

This is about Performance based work- modelling, eg. re-branding of Government Chiet TECHNOCRATS,
whose predecessors we're called PERMANENT SECRETARIES, to PRINCIPAL SECRETARIES, with TIME-
BOUND CONTRACTS, and whose renewal/ reappointment is strictly based on PERFORMANCE. This also
applied to all key & senior Government Personnel, currently including the DIPLOMATIC CORP! (&
Ministers??)

⛔ STRATEGIC MANAGEMENT & ACCOUNTABILITY;

There is currently overriding trend towards DEVOLUTION & DECENTRALIZATION as a modern of

facilitating effective, efficient and ACCOUNTABLEPublic Service Delivery. This is characterized by
EMPOWERMENT and use of AGENCIES as STRATEGI BUSINESS UNITS (SBUs), granted degree of
AUTONOMY for VERSATILITY, devoid of the traditional GOVERNMENT RED-TAPE / BUREAUCRACY -
these are supposed to be Highly charged & RESPONSIVE WORK-UNITS with clear-cut OBJECTIVES/
DELIVERABLES! They often subscribe to and advocate the Business Model of "STRATEGIC PLANNING"
(Simon MacTarro) and the "SERV-QUAL" Service delivery Models - vivid local example is the recent DE-
LINKING and EMPOWERMENT of Universities from the bureaucratic folds of UNIMA in Zomba for
OPERATIONAL EXCELLENCE!!!!

[23/07, 09:29] +265 881 18 41 97: ⛔ OTHER NEW & CRITICAL TRENDS to PUBLIC-SECTOR
MANAGEMENT.

⛔ PERFORMANCE MANAGEMENT......

[23/07, 18:13] +265 881 18 41 97: ⛔ PERFORMANCE MANAGEMENT

Performance Management and Performance Measurement are for-

(a) Accountability of institutions & Organizations

(b) Accountability of Top/Chief Executives, and

(c) Individuals

to produce QUALITY EXPECTED Public Services and their TIMELY DELIVERY to STAKEHOLDERS.

STUDENTS NOTE! - ACCOUNTABILITY is MORE than just a tabulation or process of showing how 💰
money/ resources have been deployed and spent (as per traditional Accounting). Currently in Public
Sector, more important is DEMONSTRATION & PROOF that the resources have been used
*EFFECTIVELY

*EFFICIENTLY and

*PURPOSEFULLY, i.e. for their INTENDED ALLOCATION.

CATCH'22/ DILEMMA / PARADOX in PERFORMANCE MEASUREMENT however arises from;

1. Different STAKEHOLDERS hold different ideas about

(i) WHAT Public Services are supposed to achieve;

(ii) HOW they should be achieved, and

(iii) the requirement for Executives to effectively BALANCE the variable Stakeholder requirements!
(Typically, between COST, TIME, QUALITY, EFFICIENCY, EFFECTIVENESS, ACCOUNTABILITY, & RULES/
REGULATION COMPLIANCE, an extremely tall order!)

[23/07, 18:24] +265 881 18 41 97: 2. The requirement for Private Sector/ Services to be RESPONSIVE,
FLEXIBLE & VERSATILE, FLEXIBLE, which are attributes which may easily be compromised and lost in the
quest & search for efficiency and OPERATIONAL EXCELLENCE.

A typical example here would be the Business Analogy that " Sometimes REDUNDANT/ SPARE/ IDLE
RESOURCES are necessary to achieve FLEXIBILITY in order to meet variabilities in Service Demand
Volumes"!

[23/07, 18:25] +265 881 18 41 97: ⛔ WHY MEASURE & MANAGE ACCOUNTABILITY?....

[23/07, 19:32] +265 881 18 41 97: Public Sector Institutions and Organizations are are Accountable to
the Public for 3-Things;

1. That monies (& other resources) have been used/ spent on AGREED and in ACCORDANCE with
PROCEDURES,

2. That resources have been used effectively and efficiently, and

3. That the resources deployed have delivered the INTENDED RESULTS/ OUTCOMES/ OBJECTIVES/
BENEFITS/ DELIVERABLES.

At the same time, POLITICIANS are also ACCOUNTABLE for the POLICY DECISIONS they make while
holding PUBLIC SECTOR MANAGEMENT to account for their actions! EXAMPLES~ recent HEAT on
ESCOM, NATIONAL FOOD RESERVE, DOCMA, etc by Parliamentary Committees!

Please note that accounting for HOW 💰 money has been spent is relatively easy despite the mysteries &
myths about the ACCOUNTANCY profession! However, whether resources have been used efficiently is a
question that requires some of OUTPUT, VALUE or BENEFIT of the service provision in comparison to
COST of Provision (COST- BENEFIT ANALYSIS/ PRODUCTIVITY RATE calculus)
Problems of Measurement can also be seen and experienced in HOW to QUANTIFY and MEASURE the
OUTPUTS & VALUE if Schools, Prisons, Hospitals, Roads/ Transport Systems, 👮 Police, Army, etc etc.

The next question of whether the service had achieved the INTENDED RESULT/ GOAL/ OUTPUT/
OBJECTIVE is just as sticky, tricky and dicey!!!🙄😏😶!

[24/07, 06:05] +265 881 18 41 97: ⛔ MANAGEMENT for RESULTS/ OUTPUTS/ OUTCOMES/
DELIVERABLES!

Public Sector Management guru "NORMAN FLYNN" states that ".... MANAGING a BUDGET and
ACCOUNTING for EXPENDITURE is less demanding than MANAGING PEOPLE to PRODUCE a DEFINED &
MEASURABLE RESULT....."!

One other DILEMMA Managers face is in the question.... What if the most EFFECTIVE WAY of RESULT
DELIVERY implies breaking or circumnavigating RULES/ REGULATIONS and PROCEDURES?

Example: COMPETITIVE TENDERING/ PROCUREMENT BIDDING has compelled Managers of Competitive

Units to adopt faster commercial practices of the PRIVATE SECTOR, and overlook Financial
REGULATIONS. There are numerous Worldly cases of managers fired, NOT for dishonesty, but for failing
to recognize the inherent DILEMMA between SPEED and ACCOUNTABILITY/ TRANSPARENCY!

[26/07, 03:06] +265 881 18 41 97: ⛔🎓 SOME "PPP" MODELS

(a) Build, Own, Operate, Transfer (BOOT) - whereby the private sector undertakes to construct, own,
operate, and transfer ownership of the infrastructure to Government after a considerable duration of
Operating the Enterprise.

(b) Build, Operate, Transfer - the private party undertakes to construct, operate, & transfer the
infrastructure back to the Public Sector (BOT).

(c) Build, Own, Operate (BOO) - the private party constructs, owns, and operates the infrastructure with
no phone for transferring to Government ownership of such!

(d) Design, Finance, Refurbish, Operate, Transfer (DFROT) - the private party designs, finances,
refurbishes, operates, and transfers ownership of the infrastructure back to Government after operating
it for a considerable duration of time.

(e) Design, Finance, Build, Operate, Transfer (DFBOT) - the private party undertakes the designing,
financing, constricting, operation, and finally transfers the infrastructure to the Public Party.

(f) Concession/ or Lease - Whereby Public Assets are LEASED or CONCEDED-OUT to the Private Party
( eg. PVHO in case of Malawi)

🚫 MALAWI "PPP" SAMPLES.

📍 Liwonde & Nkhotakota National Parks

📍 Project Fibre Optic International Connectivity

📍 Fibre Optic Domestic

📍 MZUNI, MUST, MUBAS, LUANA Student Accommodation

📍 Sewage Waste Disposal Management for BT, LL, & LL.

📍Mzuzu Shopping Mall

📍Malawi Cargo Centre

📍 Malawian Airlines/ Ethiopian Airlines (collapsed ?)

📍Malawi Lake Service

📍CEAR

📍Salina Sugar

....etc, etc,

[26/07, 17:13] +265 881 18 41 97: 😁 Hi Class! Pse check the calibration of the "Y" & "X" axes! Vertical and
Horizontal! I said in class, inverse calibration of the matrix is perfectly allowed & accepted, as long as
you end up getting an appropriate Risk Intensity configuration with cells spreading from Very-Low,
(LOW-LOW), to Very High (HIGH-HIGH) Cells!

I will nevertheless dwell on this topic as intimated in class, tomorrow morning.

Good night for now and God bless you 🦍

[27/07, 00:37] +265 881 18 41 97: 🌍🌎WORLD NEWS

The American Federal Reserve has once again raised interest rate!!!!!

[27/07, 00:47] +265 881 18 41 97: My Lecture Notes......yes, correct! In PPP model (c), "phone" should
read PROVISION, thus..... "no provision....".

Please correct.

[27/07, 04:12] +265 881 18 41 97: 📍⛔

CLASS

PSE find time to fully acclimatize with the RISK MANAGEMENT MATRIX captured & posted from my
Lecture Notes by Class Rep PATRICK. It's a very simple matrix to comprehend, whether you have
background to Quantitative Analysis/ Methods or not. I will however briefly dwell on it in today's class,
& also elucidate a little on the Consumer Rights Concept, from Stakeholder EXPECTATIONS perspective.

Bon Appetit 🍰🥧!

[27/07, 05:13] +265 881 18 41 97: if recall, you were conditioned to develpment of more advanced
"STRATEGIC MANAGEMENT" MATRICES/ MODELS, eg.

-The General Electric Business Screen

- Boston Consulting Group Model

- Abell & Hammond Investment Opportunity Matrix

-Arthur D. Little Strategic Condition Matrix

-Shell Directional Policy Matrix, etc, etc, so the Matrix at hand should be kindergarten material for you.

Enjoy 🍇!

[27/07, 07:26] +265 881 18 41 97: 🌍 LATEST

NEWS!

The Malawi Government to "CONTRACT-OUT" it's long-standing MOTOR VEHICLES LICENSING portfolio
(to Private Party)!

[28/07, 06:45] +265 881 18 41 97: ⛔ The foregoing SKETCH, represents the GENERAL RISK
MANAGEMENT MATRIX..... from which the following strategy DERIVATIVES can be drawn, viz;

1. RISKS falling in the VH/HH Cell require PRIORITIZATION in attention, and should have CONTINGENCY
PLANS, and articulate & periodic MONITORING (remember the environment is constantly DYNAMIC &
VOLATILE/ TURBULENT!)

2. The foregoing to be followed by RISKS falling in the two H & H Cells.

3. RISKS falling outside of the foregoing three cells require ". MANAGEMENT-BY-EXCEPTION, i.e. Staying
put, and doing nothing UNLESS a certain established THRESHOLD Amber/ Red Line has been crossed!!

Please PATRICK (and CLASS), remind me to digress on the MANAGEMENT-BY- EXCEPTION strategy, with
real world (domestic example from RBM)

[29/07, 04:34] +265 881 18 41 97: ⛔ STAKEHOLDER EXPECTATIONS.

Public Services have a variety of CONSTITUENCIES to whom they have to answer.. and therefore it is
unlikely that all will be interested in, or attach same/ similar VALUE in the same RESULTS.
For PUBLIC SECTOR MANAGERS, this represents a BALANCE DILEMMA and PARADOX, particularly in
instances of "TRADE-OFFs" - i.e., where satisfying one stakeholder upsets another. However, good news
is that good and proficient managers will usually draw up a MAP/ MATRIX of STAKEHOLDER POWER &
INFLUENCE that RANKS Stakeholders in terms of PRIORITY ATTENTION.

However, there must also be efforts NOT to upset the less powerful ( e.g. by providing some MAKE-UP
or COMPENSATORY PACKAGES)

[29/07, 05:44] +265 881 18 41 97: ⛔ MANAGEMENT for RESULTS/ OUT-PUTS/ DELIVERABLES .....~~~.
( continued)

Numerous work-commited Public Sector Managers have been fired in search of EFFICIENCY/ THRIFT/
COST SAVING/ ECONOMY/ VERSATILITY, through for example, OUT-SOURCING, which has meant that
some CONTRACTS have been NEGOTIATED rather than the. PRESCRIBED and VISIBLY TRANSPARENT
TENDERING PROCESS.

NOTE that the MANAGEMENT DILEMMAs come kick in because MANAGING for RESULTS does NOT
replace the need for ACCOUNTING, in it's extended & broader sense!

Similarly, the need for PUBLIC RESOURCE PROBITY/ SCRUTY/ AUDIT is no greater than that in the
PRIVATE SECTOR! As (future) Public Sector Managers, you need to keep these two aspects up your
sleeve at all times!

⛔ INDIVIDUAL and ORGANIZATIONAL PERFORMANCE.

Almost all and particularly KEY PUBLIC SERVANTS have to have a periodic PERFORMANCE APPRAISAL or
EVALUATION, which should form the basis for CONTRACT RENEWAL, REMUNERATION, PROMOTION,
REWARD, & PUNITIVE MEASURES, a process which in itself requires transparency & compliance to law &
regulation!

Scholars, note that Performance Appraisals will usually and often relate to CLEARLY PRESCRIBED
TARGETS, for PERFORMANCE MEASURABILITY!

⛔ JUST WHAT IS TO BE MEASURED EXACTLY?

Essentially, it is the so-called 4E's of PERFORMANCE MEASUREMENT, i.e.

*ECONOMY

*EFFICIENCY

EFFECTIVENES*S, and
*EQUITY.

[30/07, 05:45] +265 881 18 41 97: ⛔🚫

NOTE!

I have an inquiry on "HEDGING" as one form of RISK MANAGEMENT STRATEGY. The simplest example I
have given is of FORWARD CONTRACTS. Forward Contracts are "Fixed Agreements" about future
Transactions/ Operations that that gravitate conditios e.g. PRICES for goods/ services against
environmental dynamics as protection (hedge!) against risk, e.g., pricing of future & current Contracts in
United States Dollars will usually effectively protect you against losses that may result from Currency
Exchange Rate Volatilities/ Fluctuations, particularly when your operations are in a country like Malawi,
with historically well established Currency (Kwacha) depreciation/ devaluations!

[30/07, 11:46] +265 881 18 41 97: ⛔ 4-E's...

* ECONOMY.

Economy is about COST of INPUTS .

* EFFICIENCY is about the COST of CONVERTING or translating those inputs into OUTPUTS

* EFFECTIVENESS is merely/ simply DELIVERY of RESULTS / OUTCOMES, regardless!

* EQUITY is about creation of a BALANCE between varied and sometimes CONFLICTING/ clashing
STAKEHOLDER REQUIREMENTS/ EXPECTATIONS, and MEASURE of PERFORMANCE! (a formidable task
for Public Sector Managers!)

🚫 EFFICIENCY in ECONOMICS

In Economics, there are TWO Definitions of Efficiency, viz;

1. PRDUCTIVE EFFICIENCY, i.e. one that is measured by AVERAGE COST of PRODUCING goods & services,
or simply COST per UNIT of OUTPUT, (or simply PRODUCTIVITY)

2. ALLOCATIVE EFFICIENCY, i.s. about whether the Institution or Organization the APPROPRIATE RANGE
of goods/ services that REFLECTS the PREFERENCE/ EXPECTATIONS of CITIZENARY or their
REPRESENTATIVES ( Politicians/ Whistle Blowers/ Pressure Groups/ Rights Groups/ Movements/ etc, etc)

....at an AGGREGATE level, this is about the DISTRIBUTION of RESOURCES among the MAIN PUBLIC
SECTOR SERVICES of e.g. HEALTH, EDUCATION, DEFENCE, SOCIAL SECURITY (e.g. Food Security in case of
Malawi).

Scholars, please note that this will vary between nations!

⚡!⚡!⚡! magetsi azima kuno panopa! Basi ndangopita Kaye kukaona mbeu!)
[30/07, 13:15] +265 881 18 41 97: 🏁 CORRECTION: ALLOCATIVE EFFICIENCY is about whether the
Instruction or Organization is "providing" the "APPROPRIATE RANGE" of ........

[30/07, 14:46] +265 881 18 41 97: 📍 THE PARETO OPTIMALITY ALLOCATION of RESOURCES states that
there is an allocation of resources the most benefits, i.e. the OPTIMUM POINT; and that shifting and
moving resources from one activity to another would DIMINISH/ REDUCE the TOTAL BENEFITS.

However, POLITICAL PROCESSES of resource allocation in substituting the MARKET FORCES mechanisms
can and does compromise PRODUCTIVE EFFICIENCY!

In other words, and put differently, if the BALLOT BOX is the ONLY mechanism for expressing opinions, it
is a very REMOTE & IMPRECISE way of allocating resources!

In markets which have been introduced into Public Services do NOT allow citizens a great deal of CHOICE
within the services that are offered; they certainly do NOT offer people the CHOICE of HOW their TAX
CONTRIBUTIONS should be SPENT!

🚫 EFFECTIVENESS.

This is about the DEGREE to which those resources allocated to services produce/ deliver the DESIRED
RESULTS.

NOTE!...issues about MEASURING EFFECTIVENESS are partly TECHNICAL!

There are TWO BROAD CATEGORIES of OUTCOME;

1. One is a CHANGE in STATE, eg. the purpose of the service could be HEALTH QUALITY; ROAD
DURABILITY; WATER / AIR CLEANLINESS, etc, etc. Or,

2. CHANGE in BEHAVIOUR, eg. the CRIMINAL JUSTICE SYSTEM aims at changing the offending behaviour
(criminality) of persons convicted of crimes, and those with such intentions, thus called CORRECTIONAL
JUSTICE Systems ( further NOTE that these may be more difficult to MEASURE than the preceding
CHANGES in STATE!)

Measuring EFFECTIVENESS is basically concerned with finding out which services produce the DESIRED
RESULTS, and the MOST ( remember, OUTCOMES of services may be different for different
STAKEHOLDERS, and further that Politicians, TECHNOCRATS, and the Citizenary may have and hold
different DEFINITIONS of service PURPOSE!)

NOTE! Most Governments are now shifting towards the "SMART OBJECTIVES & TARGETS" BUSINESS
MODEL, i.e.

*SPECIFIC

*MEASURABLE
*ATTAINABLE/ ACHIEVABLE

*RELIABLE, &

*TIME-LINE BOUND.

⛔ ADVENT of PUBLIC SERVICE AGREEMENT'S....

[31/07, 04:23] +265 881 18 41 97: 🌍.... this year has registered the highest record of convicts ( akaidi/
anyapala) excellent MSCE score grades, and selected for higher learning at Universities across Malawi!
This has ignited & catalysed debate that maybe we need to re-think and consider en-rolling our kids into
these correctional institutions??🦍🌴

[01/08, 06:23] +265 881 18 41 97: ⛔ PUBLIC SERVICE AGREEMENTS ADVENT.

NOTE!, Public Service Agreements (PSAs) are concerned with OUTCOMES; improvement in

EFFICIENCY, or PRODUCTIVITY, and contain precise PERFORMANCE INDICATORS.

📍EXAMPLE📍

Typically, a GOVERNMENT PSA will have the following CONTENT, viz:

1. An introduction, setting out the Minister or Principal Secretary ACCOUNTABLE for delivering the
commitments, together with the PSA coverage, or some cover Departments/ Agencies for which the
relevant Minister / Secretary is and will be ACCOUNTABLE.

2. The specific AIMS & OBJECTIVES of the Ministry/ Department/ Agency, and the CROSS-CUTTING
AREAS. ( remember, S.M.A.R.T. Objectives!)

3. The RESOURCES that have been allocated to it.

4. KEY PERFORMANCE TARGETS & INDICATORS for the DELIVERY, together with, in some cases, a list of
KEY POLICY INITIATIVES to be delivered!

5. A STATEMENT about HOW the Institution will raise/ increase PRODUCTIVITY (i.e. the STRATEGY)

[01/08, 08:22] +265 881 18 41 97: ⛔ SAMPLE: PSA- British Ministry of EDUCATION.

📍OBJECTIVES:

1. An increase in the coverage of Nursery places for 3-year olds from current/ existing 34% to 60% by the
year 2025, with a focus on deprived areas.

2. The reduction in pupil/teacher ratio from current 10,000 to 5,000 by year 2029.
3. Primary School Catchment Area reduction

4. School Dropout.....

5. An increase in the proportion of those aged between 16/18, who achieve GCSEs at grade G, or
equivalent, from current 90% to 95%, by 2025... etc, etc, etc...

[01/08, 08:23] +265 881 18 41 97: ⛔ PERFORMANCE MEASUREMENT & POLICY EVALUATION:

[01/08, 08:42] +265 881 18 41 97: ⛔ PERFORMANCE MEASUREMENT & POLICY EVALUATION:

[01/08, 09:04] +265 881 18 41 97: Once decided that a set of OUTCOMES is the OBJECTIVE of the
Institution/ Organization, NEXT STEP is HOW their ATTAINMENT/ achievement is to be MEASURED.

There are basically TWO APPROCHES to this, i.e., viz,

(A) Search for a GLOBAL INDICATOR; eg. QUALITY of LIFE, you use International STANDARDS on HEALTH;
the ENVIRONMENT; EDUCATION; CONSUMPTION PATTERNS; HAPPINESS; etc, etc. ( This approach is
referred to as "TOP-BOTTOM". Or

(B) "BOTTOM-TOP" Approach, which entails consulting/ investigating with the SERVICE USER, in order to
establish exactly WHAT OUTCOMES they expect from the service.

Once desired outcomes have been established, then next TASK is EVALUATING HOW BEST to ACHIEVE
the desired Outcomes, i.e. OPTIMIZATION.

[01/08, 09:18] +265 881 18 41 97: ⛔ MANAGING PEOPLE/ PEOPLE MANAGEMENT.You have been told
from your HUMAN RESOURCE MANAGEMENT that Managing People is essentially about

* Human Resource Gap- Analysis

* Recruitment

*Contracting

*Training

*Retention

* Rewarding

*Motivation

*Grievance, &

*Release.

[01/08, 12:23] +265 997 98 85 77: Other Risk "HEDGING" examples are: BACK~ stopper; SCALING;
STABEX; EXIT- Clauses; SURGE-guard;TRIP- switch; BUILD-crack; FUSE, etc~ pse post!