Monday, September 24, 2007

Hope for OMECO

OMECO is losing, as we all know. And it seems the present management is inutile -- as they have shown time and again -- in arrestint the monthly deficit of the electric cooperative.
Nonetheless, there is a NEA Memorandum (2006-018), dated 30 June 2006, that is on Annual Roundtable Assessment of A GM's Performance.
What is this? Let us get the salient points.
The intention accordingly is institutional strengthening, being one of NEA major thrust. Under EPIRA, NEA is mandated to prepare the electric cooperatives (EC's) to become competitive in the deregulated electric power industry. To make this happen, the significant role of GM, that is, his competence and level of performance must be gauged.
Going along with this roundtable assessment is NEA's policy to measure GM's competence or lack of it in different aspects of EC's operations, provide adequate feedback mechanism to enhance and develop his skills and thus improve the operations of EC's, and to provide the venue for change of leadership, if results warrant.
How is it to happen?
GM shall be required to undergo the roundtable assessment before a panel of evaluators composed of NEA top management, invited outstanding EC officials and private sector representatives. The Board President or authorized representative of the Board shall be present during the assessment. GM shall be required to submit his annual accomplishment report for presentation to the panel... on or before the end of February of each year. He shall report before the panel of evaluators his major accomplishments, problems and workplan... The EC's performance shall be evaluated based on key performance indicators (KPI).. and the GM's management skills... The results of assessment (including areas for improvement) in a report card form shall be given to the GM and their respective Boards for guidance and monitoring and appropriate action. The Board of Directors of a GM who has not attained improvements in operations and given a very low mark shall accordingly discuss his possible replacement.
For the rating parameters, the following are the KPI's: 1. Net Margin (Positive); 2. Collection Efficiency (95-100%); 3. System Loss (14%); 4. Payment of NPC (current); 5. Payment to NEA (current); 6. Non-Power Cost (P1,500); 7. Average Collection Period (30-45 days); 8. Customer per Employee (1:350); Power Factor (Not <85%).
For GM's management skills and behavior: Technical Knowledge (able to suggest modifications to an existing system or design a new system to improve performance); Communication Skills (presents information and ideas clearly and concisely, with content and style appropriate for the audience; presents opinions and ideas in an open, unprejudicial way; responds effectively without preparation in spontaneous situations); Creativity/Innovation (ability to produce/recommend artistic and new ideas as well as to introduce new methods, devices and ways of doing things in a more efficient and effective manner); Leadership (able to manage group interaction; promotes open discussion and involvement of all participants while not dominating; motivates and empowers others to act; able to gain cooperation from unreceptive people; challenges existing policies and procedures in a responsible manner; create shared organizational values and culture); Integrity (adherence to high moral and ethical standards); Networking (ability to reach out and establish good rapport among the stakeholders).
Papasa kaya dito si GM Labrador?
For this year, GM Labrador was already evaluated and the results of the evaluation already transmitted to OMECO Board for its appropriate action. Actually, on 29 July 2007, NEA received OMECO Board Resolution No. 48, 2. 2007, "Resolution expressing confidence and support of the OMECO Board of Directors to the commitment made by the GM during the Roundtable Assessment." The Board requested that GM Labrador be given enough time to turn-around the coop towards financial viability and operational efficiency.
Talk of an entire Board that is at the behest of the GM...
Tandaan po natin ito, dahilan sa malapit na naman ang eleksyon ng mga miyembro ng Board of Directors ng OMECO.

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