A strategy and leadership consultant, Dr Victor Abbey, has suggested strict implementation of key performance indicators (KPIs) to ensure effective and efficient management of State-Owned Enterprises (SOEs).
The suggestion to the Government of Ghana is in response to a question of what corrective measures the leadership can institute to curb anomalies in the SOEs.
It comes on the back of President Akufo-Addo’s instruction to the Director-General of the State Interest and Governance Authority (SIGA) to collaborate with the Auditor-General to investigate the causes of some infractions recorded in the institutions.
According to the President in an address to some chairpersons of the state entities who visited him at the Jubilee House on Monday, October 3, 2022, the Auditor-General’s report on the institutions “clearly shows an increase in infractions which demands answers from all [State Entities]”.
President Akufo-Addo reiterated that the specified entities in the report were set up to “provide efficient public services, promote public economic activities and contribute to our GDP, reduce our imports, increase our exports and thereby strengthen our economy while creating jobs for our people”.
“However, the current trend of affairs neither portrays that picture nor reflects positively on the managers of our specified entities, oversight institutions and the government itself.”
To him, the development indicates poor supervision and management as well as poor enforcement of implementation and sanctions of the needed measures.
However, to change the narrative of the loss-making entities and build value for the people of Ghana, Dr Victor Abbey said one of the measures to adopt to that effect is the KPI system.
He believes that with the KPI system implemented, the Chief Executive Officers of the various SOEs would be kept on their toes to ensure that the management of the institutions achieves indispensable business objectives to spur the growth and development of the entities and the economy at large.
“KPIs must be given to the CEOs (measurable ones) so that at the end of the day, the CEO of the state-owned enterprises must be accountable…based on the KPI,” he opined in an interview with 3FM monitored by Angelonline.com.gh.
Dr Victor Abbey added that the management boards of the enterprises must also be given measurable KPIs to ensure their effectiveness which will, in the long run, eliminate the fractions often recorded in the entities.