1. TRANSFORMATION OF UGANDA MANAGEMENT INSTITUTE INTO A BUSINESS-ORIENTED PUBLIC ENTERPRISE By Dr John Kiyaga-Nsubuga Deputy Director, UMI October 2003

2. UMI’S Status Before the Transformation Set up in 1969 as the Institute of Public Administration to cater for in-service training of public servants Set up in 1969 as the Institute of Public Administration to cater for in-service training of public servants Attached to the Ministry of Public Service (MPS) as one of the departments. MPS controlled the institute’s personnel and set their remuneration levels Attached to the Ministry of Public Service (MPS) as one of the departments. MPS controlled the institute’s personnel and set their remuneration levels Charged Government pre-determined fees for courses Charged Government pre-determined fees for courses

3. UMI’S Status Before the Transformation Content of postgraduate diploma programmes [Diploma in Business Management, Diploma in Public Administration, Diploma in Human Resource Management) approved by Makerere University, which also made the awards. Content of postgraduate diploma programmes [Diploma in Business Management, Diploma in Public Administration, Diploma in Human Resource Management) approved by Makerere University, which also made the awards. Government subvention inadequate to meet recurrent costs or to upgrade the Institutes facilities (for FY 1992/93 it was approximately £90,000) Government subvention inadequate to meet recurrent costs or to upgrade the Institutes facilities (for FY 1992/93 it was approximately £90,000)

4. Institutional Transformation: Phase 1 (1987 – 1990) (supported by ODA) Survey done by consultant architects to determine the degree of rehabilitation required on the Institute’s physical infrastructure. Survey done by consultant architects to determine the degree of rehabilitation required on the Institute’s physical infrastructure. Remedial work undertaken comprising roof replacement, and repairs to windows, walls, plumbing, electrical and kitchen installations Remedial work undertaken comprising roof replacement, and repairs to windows, walls, plumbing, electrical and kitchen installations

5. Institutional Transformation: Phase I (1987 –1990) (supported by ODA) cont.. Improvements made on existing classrooms through addition of air conditioning, sound proofing and other acoustic improvements Improvements made on existing classrooms through addition of air conditioning, sound proofing and other acoustic improvements

6. Institutional Transformation: Phase I cont… Three additional classrooms and further office space created in the annex building Three additional classrooms and further office space created in the annex building

7. Institutional Transformation: Phase II ( Supported by ODA through Glasgow Caledonian University, UK) Institutional Transformation: Phase II ( Supported by ODA through Glasgow Caledonian University, UK) Objective: To enable the Institute to contribute to the effectiveness of the Public Service Reform Programme that started in 1989. i. Conditions set by Donors Government to provide suitable budgetary provision and to release the funds for running and maintaining the Institute.Government to provide suitable budgetary provision and to release the funds for running and maintaining the Institute.

8. Government to revise the Uganda Institute of Public Administration Act and to pass it into law to allow the Institute to operate autonomouslyGovernment to revise the Uganda Institute of Public Administration Act and to pass it into law to allow the Institute to operate autonomously Government to appoint a substantive principal of the Institute (the existing one had been in acting capacity for a long time) Government to appoint a substantive principal of the Institute (the existing one had been in acting capacity for a long time)

9. As an interim measure, Government to allow the Institute to sell its services to outside organisations and to apply the income towards its activities (provided public service training takes precedence over other activities). As an interim measure, Government to allow the Institute to sell its services to outside organisations and to apply the income towards its activities (provided public service training takes precedence over other activities). The Principal to prepare a corporate plan for the Institute. The Principal to prepare a corporate plan for the Institute.

10. ii. Activities (a) Enactment of new legal framework Uganda Management Institute Statute enacted by Parliament in 1992 giving the Institute corporate status and substantial autonomy, under the control of its own Board, to among other things:

11. Establish and run its own certificate, diploma and degree programmes, and give its own awardsEstablish and run its own certificate, diploma and degree programmes, and give its own awards generate its own resources and apply those resources to the running of its activitiesgenerate its own resources and apply those resources to the running of its activities hire and manage its own personnelhire and manage its own personnel

12. (b) Systemic and Structural Changes Staff retrenchment exercise to weed out non-core staff (some redeployed back into MPS, others let go with severance packages)Staff retrenchment exercise to weed out non-core staff (some redeployed back into MPS, others let go with severance packages) New organisational structure developed and implementedNew organisational structure developed and implemented All professional staff job descriptions revisedAll professional staff job descriptions revised

13. UMI staff formally transferred out of the public service and issued new three-year contracts, with improved terms and conditions of service. UMI staff formally transferred out of the public service and issued new three-year contracts, with improved terms and conditions of service. A major recruitment exercise for professional staff undertaken, including appointment of a new Deputy Director and new Heads of Department A major recruitment exercise for professional staff undertaken, including appointment of a new Deputy Director and new Heads of Department A register of part time associate consultants established (to assist full time professional staff) A register of part time associate consultants established (to assist full time professional staff)

14. A new staff appraisal system designed and agreed A new staff appraisal system designed and agreed Short course portfolio reviewed and a prospectus for new short courses launched in 1995/96 Short course portfolio reviewed and a prospectus for new short courses launched in 1995/96

15. A new commercial accounting and financial management system designed to improve the Institute’s financial planning and management capacity (SAGE software installed, later replaced by NAVISION). A new commercial accounting and financial management system designed to improve the Institute’s financial planning and management capacity (SAGE software installed, later replaced by NAVISION). A costing and pricing structure developed to maximise revenue earning potential A costing and pricing structure developed to maximise revenue earning potential

16. Long course portfolio revised; courses modularised and new ones developed Long course portfolio revised; courses modularised and new ones developed A draft marketing strategy developed A draft marketing strategy developed A rigorous quality assurance system put in place comprising student evaluations at the end of every course (whether short or long); weekly evaluations for all certificate, diploma and postgraduate diploma courses; monthly meetings between the Deputy Director and class representatives; and A rigorous quality assurance system put in place comprising student evaluations at the end of every course (whether short or long); weekly evaluations for all certificate, diploma and postgraduate diploma courses; monthly meetings between the Deputy Director and class representatives; and

17. control points at module leader, course manager, Division Head, Deputy Director and Academic Committee levels

18. (c) Immediate Impact Significant increase in income from short courses, in spite of increases in course fees in 1994/95. That year, revenue from short courses constituted 57.6% of total revenue. Previously was ~20%Significant increase in income from short courses, in spite of increases in course fees in 1994/95. That year, revenue from short courses constituted 57.6% of total revenue. Previously was ~20% Sharp decline in staff turn-over following the introduction of enhanced terms and conditions of service. There was no staff turn-over in 1995 at all.Sharp decline in staff turn-over following the introduction of enhanced terms and conditions of service. There was no staff turn-over in 1995 at all.

19. Increased demand for modularised programmes, especially those running in the evening. Increased demand for modularised programmes, especially those running in the evening.

20. (d) Current Operations A networked Local Area Network (LAN) computerised management information system is in placeA networked Local Area Network (LAN) computerised management information system is in place The Finance Division provides management with information on the Financial status on a weekly basisThe Finance Division provides management with information on the Financial status on a weekly basis

21. Each Division develops an annual plan indicating the scale of its proposed activities and revenue forecasts. Every course must be justified in terms of its revenue potentialEach Division develops an annual plan indicating the scale of its proposed activities and revenue forecasts. Every course must be justified in terms of its revenue potential A ten-year strategic plan (2003-2013) is in place and is being implemented.A ten-year strategic plan (2003-2013) is in place and is being implemented.

22. The Institute generates 85% of its recurrent expenditure. Government subvention constitutes 15% (mainly for utilities). The Institute generates 85% of its recurrent expenditure. Government subvention constitutes 15% (mainly for utilities). Current annual budget is ~US$1.2million (in1998/99 was ~US$0.8million) Current annual budget is ~US$1.2million (in1998/99 was ~US$0.8million) All management, administrative and teaching staff have annual performance agreements based on the new staff appraisal instrument. Everyone in the Institute has a three-year contract. All management, administrative and teaching staff have annual performance agreements based on the new staff appraisal instrument. Everyone in the Institute has a three-year contract.

23. Business has greatly expanded. From January 1996 to August 2003 the Institute conducted 690 short courses which have benefited 14,557 participants. In the same period 4,399 participants attended long courses (certificate, diploma and postgraduate programmes). The Masters in Management Studies (MMS) degree programme is over-subscribed by 100%.Business has greatly expanded. From January 1996 to August 2003 the Institute conducted 690 short courses which have benefited 14,557 participants. In the same period 4,399 participants attended long courses (certificate, diploma and postgraduate programmes). The Masters in Management Studies (MMS) degree programme is over-subscribed by 100%.

24. (e) Challenges Inadequate space/infrastructure (classrooms, office space, etc..) to handle all the business Inadequate space/infrastructure (classrooms, office space, etc..) to handle all the business Inadequate capital expenditure to invest in big infrastructure projects (e.g. office and classroom blocks). But we have invested resources in improving grounds, establishing a LAN, buying computers and accessories, buying furniture, maintaining buildings, etc Inadequate capital expenditure to invest in big infrastructure projects (e.g. office and classroom blocks). But we have invested resources in improving grounds, establishing a LAN, buying computers and accessories, buying furniture, maintaining buildings, etc

25. The Institute’s outreach programmes need to be greatly expanded to meet demand outside Kampala. The Institute’s outreach programmes need to be greatly expanded to meet demand outside Kampala. Inadequate resources to pay for teaching staff’s capacity enhancement programmes, especially PhDs. Inadequate resources to pay for teaching staff’s capacity enhancement programmes, especially PhDs.