Description
The research focused on assessing implementation of the turnaround management strategies in a water board. The location of the research was a water board located in the economic heart of South Africa, Rand Water.
1
The paper stems from research by MP Mokubung for his MBA dissertation at the NWU
Potchefstroom Business School, North-West University
"#$% &
ASSESSING THE IMPLEMENTATION OF A TURNAROUND MANAGEMENT
STRATEGY IN A WATER BOARD
Mpheteng P Mokubung
1
,
Potchefstroom Business School,
North-West University,
Potchefstroom, South Africa
[email protected]
Tel +27 18 299-1472
Christoff J. Botha (Corresponding Author)
Potchefstroom Business School,
North-West University,
Potchefstroom, South Africa
[email protected]
Tel +27 18 299-1472
Andries J du Plessis
Department of Management and Marketing
Unitec Institute of Technology
Private Bag 92025
Auckland, New Zealand
Tel: +6498154321
E-mail: [email protected]
"
ASSESSING THE IMPLEMENTATION OF A TURNAROUND MANAGEMENT
STRATEGY IN A WATER BOARD
ABSTRACT
The research focused on assessing implementation of the turnaround management strategies
in a water board. The location of the research was a water board located in the economic
heart of South Africa, Rand Water. The research approach was quantitative methodology,
which involved distribution of questionnaires as part of field work in the water board.
The area of focus in the water board was Strategic Asset Management Division which was
selected because of its huge impact in the planning and execution of the capital projects.
Infrastructure or capital projects form the core of the business sustainability; they ensure the
future of the water as well as the region of the country. Various literatures were reviewed
pertaining to the turnaround management strategies and certain inferences were made.
Models can be developed utilizing regression tools pertaining to the turnaround plans and
adaptation of these models based on conditions or certain unique aspects is recommended to
be done.C
Keywords: Turnaround, Recovery, Water Board, Renewal.
INTRODUCTION
Market challenges pose danger to the sustainability and perpetuity of the business and results
in pre-mature termination of business ventures. The water boards, water services authorities,
water utilities, and municipality-linked water entities are not immune to the market forces
even if the approach of the public sector is different from the private sector but the business
imperatives are still valid for both. There are similarities in both sectors that includes
appointment of the board that is accountable to the stakeholders, appointment of accounting
officer, governance principles apply and due care practices also form the basis of delivering
the services required. According to South African Government’s Comparative Information on
Basic Services (2009:11), Water, sanitation and electricity have been legislated as basic
services in South Africa, and therefore, requires special scrutiny from the Government
#
ZDepartments in the way that they are distributed amongst the population and how backlogs
need to be addressed pertaining to these services.Businesses in all sectors are faced with
prospects of failures if they are unable to deliver on their mandates from their stakeholders.
Water boards which have been established for the provision mainly of potable water and in
certain cases, sanitation services are governed by myriad pieces of legislation and most
notable ones are the Water Services Act No. 108 of 1997, Public Finance Management Act
No. 1 of 1999, Public Finance Management Amendment Act No. 29 of 1999, and the
National Water Act No. 36 of 1998.
There are many Acts in Parliament that have a direct impact on the water boards to carry out
their mandates. Some of these Acts that are in prominence in the operation of water boards
are Occupational Health and Safety Act No. 85 of 1993 (OHS Act), Construction Industry
Development Act No.38 of 2000 (CIDB Act), and the Amended New Environmental
Management Act No. 14 of 2009. (NEMA), Public Finance Management Amendment Act
No. 29 of 1999 (PFMA), Water Services Act No. 108 of 1997, National Water Act No. 36 of
1998. There are other legislations that are also applicable in the industry. The water boards
are in terms of their operational structure report to the Minister of Water Affairs through the
Board of Directors.
The research concentrated in the Strategic Asset Management Division of Rand Water. Rand
Water is a water board that has been established in terms of the Water Services Act No. 108
of 1997 to serve mainly Gauteng, parts of Mpumalanga and other parts of the Northern Free
State with potable water. The motivation for undertaking the research at Rand Water was
necessitated by the need to address turnaround management strategies wherever they occur.
Rand Water is the flagship of the water boards in South Africa in many parameters such as,
volume rates of water purified, and distributed, length of pipeline network, the size of
Gauteng population compared to other provinces, as well as the size of Capital Expenditure
that is utilised on ayearly basis for the infrastructure development.
PROBLEM INVESTIGATED
$
Recovery plans and turnaround strategies are implemented in the corporate sector, state-
owned entities, and in governments departments. Some of the turnaround strategies have been
successful, whilst others have failed dismally. There must be a golden thread that is
underlying successful turnarounds, and this need to be identified, and applied to other future
interventions in different industries and sectors. This research concentrated on turnarounds
applied for ailing or distressed capital projects in a water board.
The assessment conducted looked at the most effective ways of executing or implementing
the turnaround management strategies, and recovery plans in the South African water sector,
focusing on an identified water board. The purpose of the survey was to further understand
the turnaround management strategies, and recovery plans as applied to the project
environment of a water board. Information obtained from this research can be useful in
extracting phenomenological description of themes, and patterns. At this stage in the
research, the turnaround management strategies, and recovery plans will be defined generally
as the actions taken to bring about a recovery in performance in a failing project, company or
even in an organization.
RESEARCH OBJECTIVES
Primary Objective
The primary objective of the research was to evaluate the turnaround strategies and recovery
plans that have been executed and implemented in the project environment within the water
sector in South Africa.
Secondary Objective
The other objective of the research was to understand how the turnarounds are undertaken on
capital projects in a water board. The focus on the capital projects is of significance due to the
impact of infrastructure development in the water board, and also the service delivery. The
effects of service delivery model selected and deployed on communities serves as a link to
how people view success or failure of implementers of government policies
%
LITERATURE REVIEW
Turnaround management strategies or the turnaround plans have been implemented in the
public sectors as well as in the private sectors. Some of the case studies that are prominent for
the private sector entity include Tata Motors Way Case Study. According to the Tata Motors
Turnaround Case Study shown in the Tata Motors Limited Annual Report 2004-2005 (2005:
205) showed the following points below:
Tata Motors Turnaround
According to Tata Motors Limited Annual Report 2004-2005 (2005:205), Tata Motors
embarked on a turnaround plan due to a loss of 6 % of turnover incurred in 2001. This
occurred as a shock to the executives of Tata Motors, and it necessitated to re-look at their
strategy at that time and assisted in shaping their future strategies including the turnaround
journey. The other performance indicators that showed that the turnaround plan was required
included a decline in earnings per share (EPS), and no dividends for financial years
2000/2001, 2001/2002. Some of the questions that needed to be responded to were:
• What is happening to the industry globally?
• Which segment would drive the future growth for the company?
• What would be the main drivers of the business in the new scenario?
The initiatives of Tata Business Excellence Model, and Balance Score Card were utilized as
the platforms for the turnaround plan which was implemented.
There were 3 distinct phases of the turnaround strategy:
• Phase 1: 2001 to 2003 Cost Reduction Initiatives
Cost reduction measures included a massive cost cutting, improvement in working
capital management, fund raising, and deployment within the company.
• Phase 2: 2003 to 2006 Domestic and International Growth through
NewProducts, Sales and Services
&
• Phase 3: 2006 and beyond Long-term growth from increased business in
LCVs, new products, and new geographies
Some elements of the Tata Motors Turnaround Strategy:
• Balanced Scorecard Framework:
o Finance
o Customers
o Business Processes
o Learning and Growth
The Tata Motors Turnaround Case Study can illustrate that many factors were considered
when embarking on a turnaround strategy. Some of the indicators could also be consistently
poor in results over a number of financial years for a certain company. Pressure to act or turn
around could come from different sources all at once or individually. Stakeholders form a
crucial element input due to their role of expecting increasing results, and dividends each and
every year for the company.
Turnaround Management Strategies in the South African Context
In the local, South African setting there have been a number of turnarounds that have been
undertaken. Some notable ones being South African Airways went through a major
turnaround, Transnet has developed a Four-Point Turnaround Plan, Masilonyana Local
Municipality has gone through a turnaround plan, and McCarthy Group went through a
turnaround plan as well under the guidance of Brand Pretorius. The list of turnarounds
undertaken, whether succesfully or unsuccessfully, are too many to be counted. There must
be some event or series of events that leads to a turnaround to be embarked on. The
turnaround plans have not been limited only to a particular sector of our society, but it cuts
across all walks of life. In the case of the South African Airways, and South African
'
Broadcasting Corporation, it seems as if they have been operated under the turnaround plans
for a number of years.
There is not a lot of literature in the form of academic books that have been written on the
turnaround management strategies, and recovery plans in South Africa. There are documents
that companies and organisations intended for their own use in guiding the turnarounds that
are publicly available.
The problems listed above are wide ranging including people management, financial
management, strategic management, and risk management. The required response needed to
also be wide-ranging in order to be able to address these challenges adequately. It could be
assumed that the turnaround plan or a series of the turnaround strategies since 2004/2005 has
finally yielded results as Transnet has been performing well in recent years. Transnet went
through tumultous years, and has finally settled or stabilised and is currently going through
the implementation of Market Demand Strategy with a roll-out of massive capital investment
over a number of years.
In the previous financial year 2012-2013, Transnet has shown improvement since the
conception of the turnaround plan was devised. It has gone through a number of changes over
the years of different boards and Chief Executive Officers. Some elements of the turnarounds
are also linked up to the top management team that you have in an organisation or company.
Determinants of Turnaround Management Strategies
According to Merriam-Webster Online Dictionary (accessed 12 September 2013), defines
determinant as an influencing or determining element or factor. Various researchers have
been conducting research in the field of turnaround management strategies with their focus
on different outputs. Some of the research carried out in the past showed what factors or
influencing factors are applicable to the turnaround strategies or recovery plans.
(
Some of determinants of the turnaround strategies as per Makgeta (2010:42) are:
• Cost Reductions
• Efficiency Initiatives
• Changes in Management
• Performance Measures
• Financial Structure
• Firm Size
RESEARCH METHODOLOGY
A quantitative research methodology was undertaken to uncover some of the variables that
contributes to the turnaround management strategies. The quantitative method undertaken
involved the distribution of questionnaires to managers and other employees in the project
environment of the water board in order to assess their views on the turnaround management
strategies, and also to determine if there were any interventions done in the past and
currently. The questionnaires also focused at the outcome of the intervention whether positive
or negative. The questionnaires to employees and managers in the water board also addressed
issues of lessons learnt.
Population
The population of the research consisted of the project environment of the Strategic Asset
Management Division of Rand Water. The water sector in South Africa is characterised by
National Department of Water Affairs, Water Boards, and Municipality-linked water entities,
Catchment Management Authorities, Municipalities, and Implementing Agents e.g. Mvula
Trust, TCTA and others stakeholders. These entities deal with water, sanitation, and water
related services. The focus in the research was based on the potable water side of the
business, which is the primary mandate of water boards. Sanitation and other activities were
considered as secondary for the purpose of this research.
)
Sample and Sampling Method
A conveniece sampling method was used. The sample for the research project was made up
statistically for applicable employees within the project environment of the Rand Water. The
estimate used to calculate quantity required pointed out that approximately 82 questionnaires
that were distributed to employees who formed part of estimated 313 possible participants
head count within the Strategic Asset Management Division. It must also be taken into
consideration that only about 30 % of 273 employees were sampled due to approximately 15
% vacancies amounting to 47 employees. The Strategic Asset Management Division is
headed by a General Manager who reports to the Chief Operating Office. The direct reports
of the General Manager: Strategic Asset Management are: a) Senior Manager: Project
Controls, (b) Senior Manager: Assets, c) Senior Manager: Special Projects, and d) Senior
Manager: Capital Projects. The sample undertaken represented a 30 % response rate which is
a statistically acceptable percentage for the purpose of the project.
The research aimed to obtain a response rate of 80 % which was 82 questionnaires out of a
total of 103 questionnaires distributed to the participants. Gatekeepers or Managers of
different areas (Division, Departments, and Sections) were contacted to gain permission to
their employees or subordinates in order to collect information. Permission to conduct the
research was sought from the Senior Manager: Capital Projects by the Researcher.
The Research Instrument
The research instrument used was an open-ended questionnaires targeted to employees in the
project environment of Rand Water. Various instruments that were used in the past to gather
research information on this topic was adapted to meet the requirements of the research and
utilised for the purpose of the objectives. The turnaround strategy was not assessed (See
Annexure 1 – Questionairre).
RESULTS
*+
Regression was utilized for the purpose of making predictions for the purpose of the research.
These methods were explored further and the most appropriate ones were applied. Some
methods were employed further to reveal any other factors or attributes that have been
missied initially. Some included conducting Post Hoc Tests and Exploratory Statistics.
Reliability and Validity
Reliability was calculated for all questionnaire items: Statements 1 to 15 with a Cronbach’s
Coefficient Alpha of 0.632. Reliability for all questionnaire items excluding item 15 in the
questionnaire but including statement 1 to 14 and excluding statement 15, were calculated. A
Cronbach’s Coefficient Alpha of 0.670 was measured.
One-Way Anova
One-way ANOVA was used to determine factor scores for two cases from the questionnaire
and compare it against B3 (Occupation Levels) in the questionnaire. The effect sizes were
then determined.
Table 1: Anova and effect sizes
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:F=F
**
Factor Scores:
Effect Sizes for Supervisory level of 0.07, 0.10, 0.14, and 0.23 were obtained in comparison
to the factor scores of Middle Management, Senior Management, Specialist and other
occupation level respectively. In this case, the effect size is small and it denotes no practical
significant differences between those factor scores and effect sizes above.
Comparison of other level factor scores against the specialist effect size yielded effect size of
0.12 and therefore denotes a small effect, which is of no practical significant difference
between other occupational level and specialist level.
Factor Scores 2:
For effect sizes of 0.01, 0.13, 0.07 and 0.42 of Middle Management, Senior Management,
Specialist and other occupation levels as compared to Supervisory level effect size. The
results are showing a small effect that is of no practical significant difference.
The effect sizes of 0.13, 0.08 and 0.42 were obtained for the Middle Management effect size
as compared to the Senior Management factor score, Specialist factor score, and other
occupation level factor score respectively. These are still in the range of around 0.2, and
below 0.5, which means a small effect and no practical significant difference was detected.
Factor scores of 2 are for Statements from C1 to C14 in Section C of the research instrument
excluding Statement 15 which comprises of Statements C15.1 to C15.6. The comparisons of
other level factor scores against specialist level effect size yields 0.36. This is also below 0.5,
which means small effect which has no practical significant differences between other and
Specialist. This is higher, but still comparable to the results obtained for all the statements in
the questionnaire. (Please see Annexure A)
Table 2: Anova analysis
*"
Sum of
Squares df Mean Square F Sig.
Fact_score
Between
Groups 0.314 4 0.079 0.375 0.826
Within Groups 16.144 77 0.21
Total 16.458 81
Fact_score2
Between
Groups 0.280 4 0.07 0.477 0.753
Within Groups 11.302 77 0.147
Total 11.582 81
Post Hoc Tests were done as part of an exploratory data analysis, but they did not yield
significant results to be discussed here.
T-Tests
The T-tests were conducted based on Gender, and compared to the different statements that
are in the questionnaire Section C.
Statements are all falling in the range of effect size and are equal to 0.2. They all have a small
effect compared to Gender. This therefore, has no practical significant difference.
The following statements are in the effect size range of around 0.5. They have medium effect
that has a practical visible difference.
Table 3: Gender against Statements (Medium Effect)
Statement Code Statement Effect Size
*#
C3
The causes of declines in
companies can be identified 0.62
C5
There is a general sequence of
successful recovery actions 0.65
C6
A water sector institutional re-
alignment project is well known 0.63
C11
Determinants of successful
turnarounds are well known 0.45
Statement C9 has an an effect size of 0.76 which is close to 0.8, and therefore has a large
effect. Statement C9 has a practically significant difference on the gender variable.
Table 4: Gender against Statements (Large Effect)
Statement Code Statement Effect Size
C9
Consolidation and dis-establishment of water
boards was necessitated by business decline 0.76
MANAGERIAL APPLICATIONS
In the case of Senior Management factor score, Specialist factor score and other factor score,
the following effect sizes were obtained for comparing with Middle Management
respectively, 0.17, 0.25 and 0.29. In all these three cases, effect size is around 0.2 which
denotes a small effect and therefore, no practical significant difference between combined
Senior Management, Specialist, other levels as compared to the Middle Management taking
into consideration the factor scores for all statements in the questionnaire.
Comparison between Specialist Level factor score and Senior Management effect size
yielded 0.03, and between other Occupation Level factor score and the Senior Management
effect size which yielded 0.15. In both cases, effect size is smaller than 0.2, denoting a small
*$
effect. This means that there is no practical significant difference between Specialist Level
and Senior Management Level, and it also applies between other Occupation level and Senior
Management level.
For a specialist factor score and other occupation level factor score as compared to the Senior
Management effect size, 0.07 and 0.30 are obtained respectively. These are also in the
category of 0.2 denoting a small effect which has no practical significant difference between
them. These are also in line with what was obtained for all statements made in the
questionnaire.
It can be deduced from the above that there seems to be a certain pattern that can be detected
in the implementation of the turnaround plans. Certain factors or determinants demonstrate a
better behaviour than others when tested in a turnaround management environment. Models
can be developed pertaining to the turnaround plans. Models development need to be adapted
in certain cases as it cannot be applied universally.
It can also be noted that the turnaround plans can be applied in the case of distressed and
ailing projects. It does not require the entire organisation to be subjected to a turnaround plan,
but when a problem has been detected in a certain division, branch or department. There will
be interfaces between the affected area with the rest of the organisation or company. It can
also be shown through results obtained that there is some understanding of South African
Water Sector Institutional Re-alignment Project. The study also indicated that various
institutions, organisations, and companies embark on turnaround plans. Turnaround plans are
not concentrated in certain industries as demonstrated by the case studies
CONCLUSIONS
It can be deduced from the research that there seems to be a certain pattern that can be
detected in the implementation of the turnaround plans. Certain factors or determinants
demonstrate a better behaviour than others when tested in a turnaround management
*%
environment. Models can be developed pertaining to the turnaround plans. Models
development need to be adapted in certain cases as it cannot be applied universally.
It can also be concluded that the turnaround plans can be applied in the case of distressed and
ailing projects. It does not require the entire organisation to be subjected to a turnaround plan,
but when a problem has been detected in a certain division, branch or department. There will
be interfaces between the affected area with the rest of the organisation or company. It can
also be shown through results obtained that there is some understanding of South African
Water Sector Institutional Re-alignment Project. The research also indicated that various
institutions, organisations, and companies embark on turnaround plans. Turnaround plans are
not concentrated in certain industries as demonstrated by the case studies.
The research undertaken by the researcher is meant to contribute to the field of the
turnaround management strategies or recovery plans. The turnaround management strategies,
and turnaround plans are applied in all fields and in all sectors of businesses. The research in
this field is normally shrouded in mystery or secrecy due to the conditions that managers find
themselves in or their businesses in when they decide or are brought in to embark on a
turnaround exercise.
There has been a lot of turnaround plans undertaken, but the details of the results or outcomes
are not normally released to the public or made into publicly available documentation.
Contributions will be made in terms of an application in a certain sector, what sort of
determinants can be considered, and also the value that can be derived from doing such
research.
The real world requires an application of tested theory to obtain the desired results. Decisions
to appoint a turnaround practitioner is not taken lightly, but is prompted mostly by the
shareholders in the business undertaking. The stakeholders also have a role to play as well as
company executives and top management. The turnarounds can also be undertaken in small
strides in sections, departments, divisions, and branches. The normal trends seen are to bring
an outsider into a troubled company in order to bring to normality the operations. This is
influenced by the lateral thinking, and lack of baggage or even empathy.
REFERENCE
*&
Makgeta, M. 2010. Turnaround Determinants of Distressed Firms funded by the Industrial
Development Corporation. MBA Mini-Dissertation. Gordon Institute of Business Science:
University of Pretoria.
Rand Water Annual Report 2010-2011
Rand Water Integrated Annual Report 2011-2012
Sloma, R.S. 1999. The Turnaround Manager’s Handbook. Washington: Beard Books.
South Africa. 2009. Amended New Environmental Management Act No. 14 of 2009.
South Africa. 2009. Comparative Information on Basic Services.
South Africa. 2000. Construction Industry Development Act No. 38 of 2000.
South Africa. 1998. National Water Act No. 36 of 1998.
South Africa. 1999. Public Finance Management Act No. 1 of 1999.
South Africa. 1997. Water Services Act 108 of 1997.
South African Department of Public Works Annual Report 2011-2012.
Tata Motors Limited Annual Report 2004-2005.
Welman, C., Kruger, F. & Mitchell, B. 2010. Research Methodology. 3
rd
Ed. Cape Town:
Oxford Southern Africa.
www.abyss.uoregon.edu/~js/glossary/correlation.html Accessed on 20 October 2013.
www.acts.co.za. National Water Act No. 36 of 1998. Accessed on 4 August 2013.
www.acts.co.za Public Finance Management Amendment Act No. 29 of 1999. Accessed on
13 August 2013.
www.acts.co.za. Water Services Act No. 108 of 1997. Accessed on 5 August 2013.
www.businessinsider.com Accessed on: 23 July 2013.
ww.cqu.edu.au Accessed on 21 October 2013.
www.dictionary.com Accessed on 3 August 2013.
*'
www.dplg.gov.za. Accessed on the 19
th
January 2013
www.dwaf.gov.za Accessed on 3 August 2013.
www.flysaa.com Accessed on 24 July 2013.
www.masilonyana.local.gov.za Accessed on 24 July 2013.
www.michiganturnaroundplan.com Accessed on 24 July 2013.
www.pmi.org Accessed on 3 August 2013.
www.publicworks.gov.za Accessed on 25 July 2013.
www.purplemath.com Accessed on 20 October 2013.
www.thetimes.co.za. Accessed on 12 September 2013.
www.transwerk.co.za. Transnet 4-Point Turnaround Strategy. Accessed on 24 July 2013.
ANNEXURE A: QUESTIONNAIRE
A. INTRODUCTION
This questionnaire is forming part of mini-dissertation titled “Assessing turnaround management
strategies in a water board” The Researcher is compiling Mini-dissertation as a partial fulfilment
towards Masters in Business Administration (MBA) at the North-West University Potchefstroom
Business School. The researcher is conducting this study for academic purposes under the
supervision of Professor Christoff Botha (018 299 1672). Identities of respondents will not be
revealed. The research is conducted following the Ethical Guidelines of the North-West University.
For further enquiries, the Researcher, Mr Mpheteng Mokubung can be contacted on 071 759 9792 or
[email protected].
You are requested to complete the questionnaire and the information will be used for academic
purposes. It will take approximately 15 to 20 minutes to complete the questionnaire. Thanking you in
advance.
B. DEMOGRAPHIC INFORMATION
Please tick in the appropriate category.
1. AGE CATEGORY (YEARS) 20 to 30 31 to 40 41 to 50 51 to 60 Other
1 2 3 4 5
2. OCCUPATION
3. OCCUPATION LEVEL
3.1 Supervisory 1
3.2 Middle Management 2
3.3 Senior Management 3
*(
3.4 Executive 4
3.5 Specialist 5
3.6 Other (Specify) 6
4. EDUCATION LEVEL
4.1 No Matric 1
4.2 Matric 2
4.2 Diploma 3
4.3 Three-Year Degree 4
4.4 Four-Year Degree 5
4.5 Post Graduate Qualifications
(Specify)
!!!!!!!!!!!!
6
4.6 Other 7
5. GENDER
5.1 Male 1
5.2 Female 2
C. QUESTIONS
Instructions: Please tick on answering
Five (5) Point Likert Scale is used
To what extent do you agree or disagree with the statements below?
SCALE 5 4 3 2 1
Totally
agree
Agree Neither
agree nor
disagree
Disagree Totally
Disagree
1. The strategy of your
company embraces
uncertainty.
2. Turnaround
companies differ in
their structural
characteristic from
non-turnaround
companies.
3. The causes of
declines in
companies can be
identified.
4. Characteristics of
successful turnaround
managers are known.
5. There is a general
sequence of
successful recovery
actions.
6. A water sector
Institutional Re-
alignment Project is
well known.
*)
7. Reduction or
suspension of capital
expenditure is a sign
of turnaround
strategy.
8. Turnaround
management
strategies are
common in water
boards.
9. Consolidation and
dis-establishment of
water boards is
necessitated by
business decline.
10. Skills sets required
for turnaround plans
are different from
normal management.
11. Determinants of
successful
turnarounds are well
known.
12. Factors contributing
to distressed projects
are well
communicated to
stakeholders.
13. There are well
documented
turnaround lessons
learnt in the
company.
14. Causes of demise of
other water boards
are well understood in
the industry (eg.
Botshelo Water,
Bushbuckridge
Water, Namakwa
Water, etc)
15. Determinants of
turnaround
management
strategies are:
15.1 Cost reductions
15.2 Efficiency initiatives
"+
15.3 Changes in management
15.4 Performance measures
15.5 Financial structure
15.6 Company or Organisation
size
16 Additional comments:
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
THANK YOU VERY MUCH FOR COMPLETING THIS QUESTIONNAIRE.
doc_999748340.pdf
The research focused on assessing implementation of the turnaround management strategies in a water board. The location of the research was a water board located in the economic heart of South Africa, Rand Water.
1
The paper stems from research by MP Mokubung for his MBA dissertation at the NWU
Potchefstroom Business School, North-West University
"#$% &
ASSESSING THE IMPLEMENTATION OF A TURNAROUND MANAGEMENT
STRATEGY IN A WATER BOARD
Mpheteng P Mokubung
1
,
Potchefstroom Business School,
North-West University,
Potchefstroom, South Africa
[email protected]
Tel +27 18 299-1472
Christoff J. Botha (Corresponding Author)
Potchefstroom Business School,
North-West University,
Potchefstroom, South Africa
[email protected]
Tel +27 18 299-1472
Andries J du Plessis
Department of Management and Marketing
Unitec Institute of Technology
Private Bag 92025
Auckland, New Zealand
Tel: +6498154321
E-mail: [email protected]
"
ASSESSING THE IMPLEMENTATION OF A TURNAROUND MANAGEMENT
STRATEGY IN A WATER BOARD
ABSTRACT
The research focused on assessing implementation of the turnaround management strategies
in a water board. The location of the research was a water board located in the economic
heart of South Africa, Rand Water. The research approach was quantitative methodology,
which involved distribution of questionnaires as part of field work in the water board.
The area of focus in the water board was Strategic Asset Management Division which was
selected because of its huge impact in the planning and execution of the capital projects.
Infrastructure or capital projects form the core of the business sustainability; they ensure the
future of the water as well as the region of the country. Various literatures were reviewed
pertaining to the turnaround management strategies and certain inferences were made.
Models can be developed utilizing regression tools pertaining to the turnaround plans and
adaptation of these models based on conditions or certain unique aspects is recommended to
be done.C
Keywords: Turnaround, Recovery, Water Board, Renewal.
INTRODUCTION
Market challenges pose danger to the sustainability and perpetuity of the business and results
in pre-mature termination of business ventures. The water boards, water services authorities,
water utilities, and municipality-linked water entities are not immune to the market forces
even if the approach of the public sector is different from the private sector but the business
imperatives are still valid for both. There are similarities in both sectors that includes
appointment of the board that is accountable to the stakeholders, appointment of accounting
officer, governance principles apply and due care practices also form the basis of delivering
the services required. According to South African Government’s Comparative Information on
Basic Services (2009:11), Water, sanitation and electricity have been legislated as basic
services in South Africa, and therefore, requires special scrutiny from the Government
#
ZDepartments in the way that they are distributed amongst the population and how backlogs
need to be addressed pertaining to these services.Businesses in all sectors are faced with
prospects of failures if they are unable to deliver on their mandates from their stakeholders.
Water boards which have been established for the provision mainly of potable water and in
certain cases, sanitation services are governed by myriad pieces of legislation and most
notable ones are the Water Services Act No. 108 of 1997, Public Finance Management Act
No. 1 of 1999, Public Finance Management Amendment Act No. 29 of 1999, and the
National Water Act No. 36 of 1998.
There are many Acts in Parliament that have a direct impact on the water boards to carry out
their mandates. Some of these Acts that are in prominence in the operation of water boards
are Occupational Health and Safety Act No. 85 of 1993 (OHS Act), Construction Industry
Development Act No.38 of 2000 (CIDB Act), and the Amended New Environmental
Management Act No. 14 of 2009. (NEMA), Public Finance Management Amendment Act
No. 29 of 1999 (PFMA), Water Services Act No. 108 of 1997, National Water Act No. 36 of
1998. There are other legislations that are also applicable in the industry. The water boards
are in terms of their operational structure report to the Minister of Water Affairs through the
Board of Directors.
The research concentrated in the Strategic Asset Management Division of Rand Water. Rand
Water is a water board that has been established in terms of the Water Services Act No. 108
of 1997 to serve mainly Gauteng, parts of Mpumalanga and other parts of the Northern Free
State with potable water. The motivation for undertaking the research at Rand Water was
necessitated by the need to address turnaround management strategies wherever they occur.
Rand Water is the flagship of the water boards in South Africa in many parameters such as,
volume rates of water purified, and distributed, length of pipeline network, the size of
Gauteng population compared to other provinces, as well as the size of Capital Expenditure
that is utilised on ayearly basis for the infrastructure development.
PROBLEM INVESTIGATED
$
Recovery plans and turnaround strategies are implemented in the corporate sector, state-
owned entities, and in governments departments. Some of the turnaround strategies have been
successful, whilst others have failed dismally. There must be a golden thread that is
underlying successful turnarounds, and this need to be identified, and applied to other future
interventions in different industries and sectors. This research concentrated on turnarounds
applied for ailing or distressed capital projects in a water board.
The assessment conducted looked at the most effective ways of executing or implementing
the turnaround management strategies, and recovery plans in the South African water sector,
focusing on an identified water board. The purpose of the survey was to further understand
the turnaround management strategies, and recovery plans as applied to the project
environment of a water board. Information obtained from this research can be useful in
extracting phenomenological description of themes, and patterns. At this stage in the
research, the turnaround management strategies, and recovery plans will be defined generally
as the actions taken to bring about a recovery in performance in a failing project, company or
even in an organization.
RESEARCH OBJECTIVES
Primary Objective
The primary objective of the research was to evaluate the turnaround strategies and recovery
plans that have been executed and implemented in the project environment within the water
sector in South Africa.
Secondary Objective
The other objective of the research was to understand how the turnarounds are undertaken on
capital projects in a water board. The focus on the capital projects is of significance due to the
impact of infrastructure development in the water board, and also the service delivery. The
effects of service delivery model selected and deployed on communities serves as a link to
how people view success or failure of implementers of government policies
%
LITERATURE REVIEW
Turnaround management strategies or the turnaround plans have been implemented in the
public sectors as well as in the private sectors. Some of the case studies that are prominent for
the private sector entity include Tata Motors Way Case Study. According to the Tata Motors
Turnaround Case Study shown in the Tata Motors Limited Annual Report 2004-2005 (2005:
205) showed the following points below:
Tata Motors Turnaround
According to Tata Motors Limited Annual Report 2004-2005 (2005:205), Tata Motors
embarked on a turnaround plan due to a loss of 6 % of turnover incurred in 2001. This
occurred as a shock to the executives of Tata Motors, and it necessitated to re-look at their
strategy at that time and assisted in shaping their future strategies including the turnaround
journey. The other performance indicators that showed that the turnaround plan was required
included a decline in earnings per share (EPS), and no dividends for financial years
2000/2001, 2001/2002. Some of the questions that needed to be responded to were:
• What is happening to the industry globally?
• Which segment would drive the future growth for the company?
• What would be the main drivers of the business in the new scenario?
The initiatives of Tata Business Excellence Model, and Balance Score Card were utilized as
the platforms for the turnaround plan which was implemented.
There were 3 distinct phases of the turnaround strategy:
• Phase 1: 2001 to 2003 Cost Reduction Initiatives
Cost reduction measures included a massive cost cutting, improvement in working
capital management, fund raising, and deployment within the company.
• Phase 2: 2003 to 2006 Domestic and International Growth through
NewProducts, Sales and Services
&
• Phase 3: 2006 and beyond Long-term growth from increased business in
LCVs, new products, and new geographies
Some elements of the Tata Motors Turnaround Strategy:
• Balanced Scorecard Framework:
o Finance
o Customers
o Business Processes
o Learning and Growth
The Tata Motors Turnaround Case Study can illustrate that many factors were considered
when embarking on a turnaround strategy. Some of the indicators could also be consistently
poor in results over a number of financial years for a certain company. Pressure to act or turn
around could come from different sources all at once or individually. Stakeholders form a
crucial element input due to their role of expecting increasing results, and dividends each and
every year for the company.
Turnaround Management Strategies in the South African Context
In the local, South African setting there have been a number of turnarounds that have been
undertaken. Some notable ones being South African Airways went through a major
turnaround, Transnet has developed a Four-Point Turnaround Plan, Masilonyana Local
Municipality has gone through a turnaround plan, and McCarthy Group went through a
turnaround plan as well under the guidance of Brand Pretorius. The list of turnarounds
undertaken, whether succesfully or unsuccessfully, are too many to be counted. There must
be some event or series of events that leads to a turnaround to be embarked on. The
turnaround plans have not been limited only to a particular sector of our society, but it cuts
across all walks of life. In the case of the South African Airways, and South African
'
Broadcasting Corporation, it seems as if they have been operated under the turnaround plans
for a number of years.
There is not a lot of literature in the form of academic books that have been written on the
turnaround management strategies, and recovery plans in South Africa. There are documents
that companies and organisations intended for their own use in guiding the turnarounds that
are publicly available.
The problems listed above are wide ranging including people management, financial
management, strategic management, and risk management. The required response needed to
also be wide-ranging in order to be able to address these challenges adequately. It could be
assumed that the turnaround plan or a series of the turnaround strategies since 2004/2005 has
finally yielded results as Transnet has been performing well in recent years. Transnet went
through tumultous years, and has finally settled or stabilised and is currently going through
the implementation of Market Demand Strategy with a roll-out of massive capital investment
over a number of years.
In the previous financial year 2012-2013, Transnet has shown improvement since the
conception of the turnaround plan was devised. It has gone through a number of changes over
the years of different boards and Chief Executive Officers. Some elements of the turnarounds
are also linked up to the top management team that you have in an organisation or company.
Determinants of Turnaround Management Strategies
According to Merriam-Webster Online Dictionary (accessed 12 September 2013), defines
determinant as an influencing or determining element or factor. Various researchers have
been conducting research in the field of turnaround management strategies with their focus
on different outputs. Some of the research carried out in the past showed what factors or
influencing factors are applicable to the turnaround strategies or recovery plans.
(
Some of determinants of the turnaround strategies as per Makgeta (2010:42) are:
• Cost Reductions
• Efficiency Initiatives
• Changes in Management
• Performance Measures
• Financial Structure
• Firm Size
RESEARCH METHODOLOGY
A quantitative research methodology was undertaken to uncover some of the variables that
contributes to the turnaround management strategies. The quantitative method undertaken
involved the distribution of questionnaires to managers and other employees in the project
environment of the water board in order to assess their views on the turnaround management
strategies, and also to determine if there were any interventions done in the past and
currently. The questionnaires also focused at the outcome of the intervention whether positive
or negative. The questionnaires to employees and managers in the water board also addressed
issues of lessons learnt.
Population
The population of the research consisted of the project environment of the Strategic Asset
Management Division of Rand Water. The water sector in South Africa is characterised by
National Department of Water Affairs, Water Boards, and Municipality-linked water entities,
Catchment Management Authorities, Municipalities, and Implementing Agents e.g. Mvula
Trust, TCTA and others stakeholders. These entities deal with water, sanitation, and water
related services. The focus in the research was based on the potable water side of the
business, which is the primary mandate of water boards. Sanitation and other activities were
considered as secondary for the purpose of this research.
)
Sample and Sampling Method
A conveniece sampling method was used. The sample for the research project was made up
statistically for applicable employees within the project environment of the Rand Water. The
estimate used to calculate quantity required pointed out that approximately 82 questionnaires
that were distributed to employees who formed part of estimated 313 possible participants
head count within the Strategic Asset Management Division. It must also be taken into
consideration that only about 30 % of 273 employees were sampled due to approximately 15
% vacancies amounting to 47 employees. The Strategic Asset Management Division is
headed by a General Manager who reports to the Chief Operating Office. The direct reports
of the General Manager: Strategic Asset Management are: a) Senior Manager: Project
Controls, (b) Senior Manager: Assets, c) Senior Manager: Special Projects, and d) Senior
Manager: Capital Projects. The sample undertaken represented a 30 % response rate which is
a statistically acceptable percentage for the purpose of the project.
The research aimed to obtain a response rate of 80 % which was 82 questionnaires out of a
total of 103 questionnaires distributed to the participants. Gatekeepers or Managers of
different areas (Division, Departments, and Sections) were contacted to gain permission to
their employees or subordinates in order to collect information. Permission to conduct the
research was sought from the Senior Manager: Capital Projects by the Researcher.
The Research Instrument
The research instrument used was an open-ended questionnaires targeted to employees in the
project environment of Rand Water. Various instruments that were used in the past to gather
research information on this topic was adapted to meet the requirements of the research and
utilised for the purpose of the objectives. The turnaround strategy was not assessed (See
Annexure 1 – Questionairre).
RESULTS
*+
Regression was utilized for the purpose of making predictions for the purpose of the research.
These methods were explored further and the most appropriate ones were applied. Some
methods were employed further to reveal any other factors or attributes that have been
missied initially. Some included conducting Post Hoc Tests and Exploratory Statistics.
Reliability and Validity
Reliability was calculated for all questionnaire items: Statements 1 to 15 with a Cronbach’s
Coefficient Alpha of 0.632. Reliability for all questionnaire items excluding item 15 in the
questionnaire but including statement 1 to 14 and excluding statement 15, were calculated. A
Cronbach’s Coefficient Alpha of 0.670 was measured.
One-Way Anova
One-way ANOVA was used to determine factor scores for two cases from the questionnaire
and compare it against B3 (Occupation Levels) in the questionnaire. The effect sizes were
then determined.
Table 1: Anova and effect sizes
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JI K L4)9:8*)2* M)3*5?-@ 945 D*-)
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:F=F**
Factor Scores:
Effect Sizes for Supervisory level of 0.07, 0.10, 0.14, and 0.23 were obtained in comparison
to the factor scores of Middle Management, Senior Management, Specialist and other
occupation level respectively. In this case, the effect size is small and it denotes no practical
significant differences between those factor scores and effect sizes above.
Comparison of other level factor scores against the specialist effect size yielded effect size of
0.12 and therefore denotes a small effect, which is of no practical significant difference
between other occupational level and specialist level.
Factor Scores 2:
For effect sizes of 0.01, 0.13, 0.07 and 0.42 of Middle Management, Senior Management,
Specialist and other occupation levels as compared to Supervisory level effect size. The
results are showing a small effect that is of no practical significant difference.
The effect sizes of 0.13, 0.08 and 0.42 were obtained for the Middle Management effect size
as compared to the Senior Management factor score, Specialist factor score, and other
occupation level factor score respectively. These are still in the range of around 0.2, and
below 0.5, which means a small effect and no practical significant difference was detected.
Factor scores of 2 are for Statements from C1 to C14 in Section C of the research instrument
excluding Statement 15 which comprises of Statements C15.1 to C15.6. The comparisons of
other level factor scores against specialist level effect size yields 0.36. This is also below 0.5,
which means small effect which has no practical significant differences between other and
Specialist. This is higher, but still comparable to the results obtained for all the statements in
the questionnaire. (Please see Annexure A)
Table 2: Anova analysis
*"
Sum of
Squares df Mean Square F Sig.
Fact_score
Between
Groups 0.314 4 0.079 0.375 0.826
Within Groups 16.144 77 0.21
Total 16.458 81
Fact_score2
Between
Groups 0.280 4 0.07 0.477 0.753
Within Groups 11.302 77 0.147
Total 11.582 81
Post Hoc Tests were done as part of an exploratory data analysis, but they did not yield
significant results to be discussed here.
T-Tests
The T-tests were conducted based on Gender, and compared to the different statements that
are in the questionnaire Section C.
Statements are all falling in the range of effect size and are equal to 0.2. They all have a small
effect compared to Gender. This therefore, has no practical significant difference.
The following statements are in the effect size range of around 0.5. They have medium effect
that has a practical visible difference.
Table 3: Gender against Statements (Medium Effect)
Statement Code Statement Effect Size
*#
C3
The causes of declines in
companies can be identified 0.62
C5
There is a general sequence of
successful recovery actions 0.65
C6
A water sector institutional re-
alignment project is well known 0.63
C11
Determinants of successful
turnarounds are well known 0.45
Statement C9 has an an effect size of 0.76 which is close to 0.8, and therefore has a large
effect. Statement C9 has a practically significant difference on the gender variable.
Table 4: Gender against Statements (Large Effect)
Statement Code Statement Effect Size
C9
Consolidation and dis-establishment of water
boards was necessitated by business decline 0.76
MANAGERIAL APPLICATIONS
In the case of Senior Management factor score, Specialist factor score and other factor score,
the following effect sizes were obtained for comparing with Middle Management
respectively, 0.17, 0.25 and 0.29. In all these three cases, effect size is around 0.2 which
denotes a small effect and therefore, no practical significant difference between combined
Senior Management, Specialist, other levels as compared to the Middle Management taking
into consideration the factor scores for all statements in the questionnaire.
Comparison between Specialist Level factor score and Senior Management effect size
yielded 0.03, and between other Occupation Level factor score and the Senior Management
effect size which yielded 0.15. In both cases, effect size is smaller than 0.2, denoting a small
*$
effect. This means that there is no practical significant difference between Specialist Level
and Senior Management Level, and it also applies between other Occupation level and Senior
Management level.
For a specialist factor score and other occupation level factor score as compared to the Senior
Management effect size, 0.07 and 0.30 are obtained respectively. These are also in the
category of 0.2 denoting a small effect which has no practical significant difference between
them. These are also in line with what was obtained for all statements made in the
questionnaire.
It can be deduced from the above that there seems to be a certain pattern that can be detected
in the implementation of the turnaround plans. Certain factors or determinants demonstrate a
better behaviour than others when tested in a turnaround management environment. Models
can be developed pertaining to the turnaround plans. Models development need to be adapted
in certain cases as it cannot be applied universally.
It can also be noted that the turnaround plans can be applied in the case of distressed and
ailing projects. It does not require the entire organisation to be subjected to a turnaround plan,
but when a problem has been detected in a certain division, branch or department. There will
be interfaces between the affected area with the rest of the organisation or company. It can
also be shown through results obtained that there is some understanding of South African
Water Sector Institutional Re-alignment Project. The study also indicated that various
institutions, organisations, and companies embark on turnaround plans. Turnaround plans are
not concentrated in certain industries as demonstrated by the case studies
CONCLUSIONS
It can be deduced from the research that there seems to be a certain pattern that can be
detected in the implementation of the turnaround plans. Certain factors or determinants
demonstrate a better behaviour than others when tested in a turnaround management
*%
environment. Models can be developed pertaining to the turnaround plans. Models
development need to be adapted in certain cases as it cannot be applied universally.
It can also be concluded that the turnaround plans can be applied in the case of distressed and
ailing projects. It does not require the entire organisation to be subjected to a turnaround plan,
but when a problem has been detected in a certain division, branch or department. There will
be interfaces between the affected area with the rest of the organisation or company. It can
also be shown through results obtained that there is some understanding of South African
Water Sector Institutional Re-alignment Project. The research also indicated that various
institutions, organisations, and companies embark on turnaround plans. Turnaround plans are
not concentrated in certain industries as demonstrated by the case studies.
The research undertaken by the researcher is meant to contribute to the field of the
turnaround management strategies or recovery plans. The turnaround management strategies,
and turnaround plans are applied in all fields and in all sectors of businesses. The research in
this field is normally shrouded in mystery or secrecy due to the conditions that managers find
themselves in or their businesses in when they decide or are brought in to embark on a
turnaround exercise.
There has been a lot of turnaround plans undertaken, but the details of the results or outcomes
are not normally released to the public or made into publicly available documentation.
Contributions will be made in terms of an application in a certain sector, what sort of
determinants can be considered, and also the value that can be derived from doing such
research.
The real world requires an application of tested theory to obtain the desired results. Decisions
to appoint a turnaround practitioner is not taken lightly, but is prompted mostly by the
shareholders in the business undertaking. The stakeholders also have a role to play as well as
company executives and top management. The turnarounds can also be undertaken in small
strides in sections, departments, divisions, and branches. The normal trends seen are to bring
an outsider into a troubled company in order to bring to normality the operations. This is
influenced by the lateral thinking, and lack of baggage or even empathy.
REFERENCE
*&
Makgeta, M. 2010. Turnaround Determinants of Distressed Firms funded by the Industrial
Development Corporation. MBA Mini-Dissertation. Gordon Institute of Business Science:
University of Pretoria.
Rand Water Annual Report 2010-2011
Rand Water Integrated Annual Report 2011-2012
Sloma, R.S. 1999. The Turnaround Manager’s Handbook. Washington: Beard Books.
South Africa. 2009. Amended New Environmental Management Act No. 14 of 2009.
South Africa. 2009. Comparative Information on Basic Services.
South Africa. 2000. Construction Industry Development Act No. 38 of 2000.
South Africa. 1998. National Water Act No. 36 of 1998.
South Africa. 1999. Public Finance Management Act No. 1 of 1999.
South Africa. 1997. Water Services Act 108 of 1997.
South African Department of Public Works Annual Report 2011-2012.
Tata Motors Limited Annual Report 2004-2005.
Welman, C., Kruger, F. & Mitchell, B. 2010. Research Methodology. 3
rd
Ed. Cape Town:
Oxford Southern Africa.
www.abyss.uoregon.edu/~js/glossary/correlation.html Accessed on 20 October 2013.
www.acts.co.za. National Water Act No. 36 of 1998. Accessed on 4 August 2013.
www.acts.co.za Public Finance Management Amendment Act No. 29 of 1999. Accessed on
13 August 2013.
www.acts.co.za. Water Services Act No. 108 of 1997. Accessed on 5 August 2013.
www.businessinsider.com Accessed on: 23 July 2013.
ww.cqu.edu.au Accessed on 21 October 2013.
www.dictionary.com Accessed on 3 August 2013.
*'
www.dplg.gov.za. Accessed on the 19
th
January 2013
www.dwaf.gov.za Accessed on 3 August 2013.
www.flysaa.com Accessed on 24 July 2013.
www.masilonyana.local.gov.za Accessed on 24 July 2013.
www.michiganturnaroundplan.com Accessed on 24 July 2013.
www.pmi.org Accessed on 3 August 2013.
www.publicworks.gov.za Accessed on 25 July 2013.
www.purplemath.com Accessed on 20 October 2013.
www.thetimes.co.za. Accessed on 12 September 2013.
www.transwerk.co.za. Transnet 4-Point Turnaround Strategy. Accessed on 24 July 2013.
ANNEXURE A: QUESTIONNAIRE
A. INTRODUCTION
This questionnaire is forming part of mini-dissertation titled “Assessing turnaround management
strategies in a water board” The Researcher is compiling Mini-dissertation as a partial fulfilment
towards Masters in Business Administration (MBA) at the North-West University Potchefstroom
Business School. The researcher is conducting this study for academic purposes under the
supervision of Professor Christoff Botha (018 299 1672). Identities of respondents will not be
revealed. The research is conducted following the Ethical Guidelines of the North-West University.
For further enquiries, the Researcher, Mr Mpheteng Mokubung can be contacted on 071 759 9792 or
[email protected].
You are requested to complete the questionnaire and the information will be used for academic
purposes. It will take approximately 15 to 20 minutes to complete the questionnaire. Thanking you in
advance.
B. DEMOGRAPHIC INFORMATION
Please tick in the appropriate category.
1. AGE CATEGORY (YEARS) 20 to 30 31 to 40 41 to 50 51 to 60 Other
1 2 3 4 5
2. OCCUPATION
3. OCCUPATION LEVEL
3.1 Supervisory 1
3.2 Middle Management 2
3.3 Senior Management 3
*(
3.4 Executive 4
3.5 Specialist 5
3.6 Other (Specify) 6
4. EDUCATION LEVEL
4.1 No Matric 1
4.2 Matric 2
4.2 Diploma 3
4.3 Three-Year Degree 4
4.4 Four-Year Degree 5
4.5 Post Graduate Qualifications
(Specify)
!!!!!!!!!!!!
6
4.6 Other 7
5. GENDER
5.1 Male 1
5.2 Female 2
C. QUESTIONS
Instructions: Please tick on answering
Five (5) Point Likert Scale is used
To what extent do you agree or disagree with the statements below?
SCALE 5 4 3 2 1
Totally
agree
Agree Neither
agree nor
disagree
Disagree Totally
Disagree
1. The strategy of your
company embraces
uncertainty.
2. Turnaround
companies differ in
their structural
characteristic from
non-turnaround
companies.
3. The causes of
declines in
companies can be
identified.
4. Characteristics of
successful turnaround
managers are known.
5. There is a general
sequence of
successful recovery
actions.
6. A water sector
Institutional Re-
alignment Project is
well known.
*)
7. Reduction or
suspension of capital
expenditure is a sign
of turnaround
strategy.
8. Turnaround
management
strategies are
common in water
boards.
9. Consolidation and
dis-establishment of
water boards is
necessitated by
business decline.
10. Skills sets required
for turnaround plans
are different from
normal management.
11. Determinants of
successful
turnarounds are well
known.
12. Factors contributing
to distressed projects
are well
communicated to
stakeholders.
13. There are well
documented
turnaround lessons
learnt in the
company.
14. Causes of demise of
other water boards
are well understood in
the industry (eg.
Botshelo Water,
Bushbuckridge
Water, Namakwa
Water, etc)
15. Determinants of
turnaround
management
strategies are:
15.1 Cost reductions
15.2 Efficiency initiatives
"+
15.3 Changes in management
15.4 Performance measures
15.5 Financial structure
15.6 Company or Organisation
size
16 Additional comments:
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
THANK YOU VERY MUCH FOR COMPLETING THIS QUESTIONNAIRE.
doc_999748340.pdf