SEC to implement Balanced Scorecard in SOEs
The State Enterprises Commission (SEC) is to implement the Balanced Scorecard System (BSS) in state-owned enterprises to enhance performance management.
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The balanced scorecard system, an initiative of the SEC, in collaboration with the Balanced Scorecard Institute (BSI), will monitor the performance of the State-Owned Enterprises (SOEs) to improve their financial and management performance.
The BSI will establish a consistent management system and clear accountability that enables each SOE to align its processes and implement strategies for efficient use of public resources.
When fully implemented, the system is expected to ensure human capital development to make for sustainability, reduce debt on the government and efficient operation to meet international best practices.
Manage SOEs efficiently
Speaking at the launch of a performance evaluation framework, the Minister of State in charge of Private Sector Development, Mr Abdul-Rashid Pelpuo, said the initiative was to inject private sector practices into SOEs.
He said the BSS would identify the loopholes that caused poor performance in SOEs and would address them through monitoring and evaluation.
“We definitely want to make SOEs more viable and create wealth, as well as job opportunities for citizens,” he said.
Mr Pelpuo noted that most Ghanaians who managed the SOEs conceived them as “someone’s property”, hence they did not ensure management practices that would drive efficiency.
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He also said the system would replace non-performing and non-efficient staff of the various SOEs with efficient ones to ensure that the enterprises achieved the targets set for them.
Balance Scorecard
The Executive Chairman of SEC, Dr Camynta Baezie, said the BSI would provide training to all boards and strategic planning departments of the 41 wholly-owned SOEs.
According to him, most of the SOEs underperformed compared to their own targets, while others incurred operating losses.
Through the 'Nine Steps to Success' framework of the BSI, he said the SEC would begin a training exercise with nine SOEs.
Training exercise
The enterprises are the: Volta River Authority (VRA), Ghana Grid Company (GRIDCO), Electricity Company of Ghana (ECG), Bulk Oil Storage and Transportation (BOST) and the Ghana Broadcasting Corporation (GBC).
Others are: Ghana Water Company Limited (GWCL), Ghana National Petroleum Company (GNPC), Tema Development Corporation (TDC) and the Graphic Communications Group Limited (GCGL).
Dr Baezie said the framework would instil discipline in the SOEs to improve on their financial and other management performance practices to enable them to move to self-sufficiency and reduce the government’s debt burden.