Professional Documents
Culture Documents
New Directions
Reengineering the Sri Lanka Red Cross
Palk Bay
Kilinochchi
Mullaitivu
Bay of Bengal
Anuradhapura
SRI LANKA
Kurunegala Matale Kandy Kegalle Gampaha Nuwara Eliya Badulla Ampara
Colombo
Colombo City
Monaragala
Ratnapura Kaluthara
INDIAN OCEAN
During the last 18 months, an external consultancy led the re-engineering process and that itself proved a challenge. Handing over such a sensitive, critical and people-centred assignment was a great risk for SLRCS. But we were open and transparent, allowing the consultants to be as independent as possible and at the very highest level. In no way did we interfere nor did we reject their personalized and highly sensitive methodologies. The entire process was successfully completed by the Chief Consultant of PASS Asia, Samantha Pathiratna, and facilitated by the Advisor to the President, Gamini Pinnalawatte, on behalf of the CGB and myself. Furthermore, I would like to mention our National Secretary, Nimal Kumar, and first Vice President, Bharatha Jonikkuhewa, for their commitment to the reengineering recommendations. While the process itself is by no means over, I feel it fitting 18-months after the start to describe the journey we have taken so far and to share the challenges and lessons learnt. Although the re-engineering process is unique to the Sri Lankan context and designed specifically for SLRCS, my motivation to document our experience is to provide a guide that any sister society or, for that matter anyone with the Movement, facing a similar challenge can refer to. When I most needed it there was no reference material available within the Movement, either at IFRC or other national societies, which illustrated how to deal with a situation of this nature. I had no idea where to start. I believe some valuable and practical methodologies and tools have been developed and used over the course of re-engineering our society. And a lot of valuable lessons learnt. It would give me great satisfaction to know that the information outlined here could prove in some way useful to another national society and also as a case study within the Movement.
In my experience, it is not uncommon for small national societies to go bankrupt and collapse after a major disaster. Most get used to the international support that follows large-scale disasters and are unable to continue without the same structure, benefits, and approach as before. A huge challenge presented itself to our national society after the 2004 tsunami. In the space of a few years, our staff numbers ballooned from 80 to more than 1,000 people. The challenge for the Movement when a small national society artificially balloons after a disaster is how to keep it from imploding once operations end. After the massive tsunami operation how was SLRCS going to scale down and retain its core competent, minimum structure in order to ensure implementation of its longer-term programming? How would we restructure the national society? How could we separate management and governance roles that had become entwined during the demands of the tsunami operation? How could we sustain and improve the services of SLRCS to the community? Finally, could we establish the right mindset, for change? As president wanting to uphold my small national society, I did not want SLRCS to breakdown. I thought it was essential to be prepared, and to do so at least one year in advance. The idea of re-engineering SLRCS - to streamline and make it more efficient, to build on learning, knowledge and experience gained during the tsunami disaster experience, and to strengthen post-disaster programming - was the result. Throughout the entire process, my sole intention was to ensure that our national society, which found itself in a highly pressurised and demanding scenario after the tsunami, survived in a sustainable manner. Ours was a complex internal situation. After more than 70 years, changing the system of working posed a huge challenge. The most difficult part was a change in attitude. I seriously believe if you cant change the attitude of people, then the process itself will fail. We needed our Red Cross team to have a positive mind-set and the willpower to create a change within SLRCS. The task the local consultants undertook was merely a guideline for change within the national society. Implementing that change was, and remains, the challenge and the responsibility of SLRCS. T overcome the huge challenge before us we focused on three main approaches: building an efficient branch network (chairperson and branch executive officer) o that is transparent, professional and self-sustainable with the focus on improved services for the most vulnerable; creating a vibrant, transparent, accountable management team, led by the director general, to support the 26 branches and provide a high quality of beneficiary services; and restructuring REDMO, the commercial arm of SLRCS, and expanding its business ventures to generate more funds for the national society to undertake more programming for vulnerable and marginalized populations in the country. Right now I think we have successfully completed 60 to 70 per cent of the re-engineering process. I can feel the difference in attitude right down to the unit (sub-branch) level. With the direction set, Im fully confident that in the next few years we can achieve what we have set out to do and am hopeful of a 100 per cent success in our endeavour. .
introduction
In August 2008, the president of the Sri Lanka Red Cross, Jagath Abeysinghe, posed two key questions to his national society. Are we really harnessing the full potential of the national society? Will programmes be able to continue once the tsunamioperations are over? He sensed a crisis looming in SLRCS with the ending of the tsunami recovery operation, and in an effort to forestall it, and build a more sustainable national society, identified the need for radical change within the organisation. There was fear theentire SLRCS system could collapse and my responsibility was to safeguard the national society and to avert a potential crisis, he said. Initial, conventional efforts by SLRCS to deal with the problem included implementing a change management process and adopting the IFRC-led scale down without harm approach. While useful, these exercises did little to spur any noticeable change within the society. The president recognized that unorthodox measures were needed if there was to be any hope of change. He started to discuss options to address this with SLRCS governance and management.
As someone familiar with most IFRC references related to restructuring, downsizing and organisational re-engineering, Al Panico, Head of the IFRC Asia Pacific Zone Tsunami Unit, maintained that, the SLRCS reengineering process is a locally originated, unique process with unbelievably brilliant results. I wouldnt hesitate to mention that you [SLRCS] could sell this process to other countries . It is noteworthy that while the re-engineering process originated from the president, it was neither a directive by him alone nor a call from Movement partners, but a collective effort by both the CGB and management to elicit change. While on an official visit to Sri Lanka in 2009 the Secretary General of IFRC, Bekele Geleta, declared that, [SLRCS] can become the best national society in Asia, or perhaps in the world, if it implements the re-engineering process with genuine commitment and in an effective manner . This booklet summarizes the process and early outcomes of that effort, as well as challenges and lessons learnt by SLRCS in its bid to become the best national society in Asia .
Collective effort
In-country partner, German Red Cross (GRC), contributed 50 per cent of the total financial investment towards phase one of the re-engineering process and felt it was a worthy venture to support. As the country coordinator explained, we were watching seriously. As a main core sponsor for phase one Im quite happy and satisfied with the change and results .
Why Re-engineering?
When the Asian tsunami hit Sri Lanka in 2004, Red Cross volunteers from all over the country came forward to assist with the enormous operation. T ogether with Movement partners and other stakeholders, the SLRCS responded to make a major contribution to the tsunami-recovery programme. The massive Red Cross Red Crescent programmes that grew from the operation were primarily in non-core (i.e. non-traditional) areas, with special focus on 13 branches located in tsunami-affected districts. Over the course of the next few years, more than 800,000 Swiss francs was spent on projects, with 35,000 houses built, infrastructure for 72 health facilities put in place, and multiple livelihood schemes and water and sanitation systems undertaken. Five years later, with the tsunami operation nearing completion, SLRCS acknowledged that it was not possible to sustain their now enlarged post-tsunami structure not just in terms of staff numbers but also staff capability. The national society needed to downsize. And it needed to do so while ensuring a stronger society than pre-tsunami that refocused on, and had built capacity in, the core areas of programming and national society sustainability. Furthermore, during the early stages of the tsunami, due to the limited number of experienced personnel at management level, governance had taken an unprecedented role in running operations. Now was the time to re-establish a clear delineation of roles between management and governance, back in line with the national societys constitution. A formal process for change was set in motion on 1 August 2009.
Process overview
Phase 1
1 August 2009 - 15 February
2010 (6-months)
The scope of re-engineering has been described by PASS Asia as the fundamental re-thinking and radical redesign of SLRCS processes to bring about dramatic improvements in critical, contemporary measures of performance, such as accountability, transparency, quality, professionalism, responsibility, service and speed to provide humanitarian services to the vulnerable communities in Sri Lanka . The consultants initiated change at SLRCS through a three-phased process. The first two phases were managed by PASS Asia thought a transference approach with increasingly shared roles with the national society. As per the goal, SLRCS management is leading the third phase.
Phase 2
16 February - 15 August
2010 (6 - months)
Phase 3
16 August 2010 onward 180-day intensified capacity
building programme
Good to Great
Development of new strategies & policies New core structure & core positions New job profiles Policy committees & monitoring panels Staff interviews & re-appointments
Staff training & development Resource mobilization Policy orientation Performance management Monitoring, evaluations & reviews Leadership & management competencies Management-led, governance supervised
and IFRC, ICRC & PNSs supported
70% reappointment interviews completed 36 draft interim recommendations Separation of management & governance
Phase one
Managing change in a 74-year old organisation is no easy task. So how did PASS Asia intend to engage with SLRCS, a national society with an established and dedicated board of governors, 26 distinct branch offices and, at its height after the tsunami, an expanded structure of over 1,000 staff working alongside various Movement partners, and steer them towards change? For years, branch chairs had become accustomed to running their offices autonomously. National headquarters, flushed with cash from the tsunami operation, had become comfortable with an enlarged staff structure. Volunteers who had previously worked purely for charity had come to expect payment for their services. How would the total human resource base of SLRCS react to change?
According to Tissa Abeywickrama, director general (DG) of SLRCS, the change was very much to deal with a human concern the perception of long-serving staff in adjusting to changes that were inevitable with scaling down of SLRCS post-tsunami operations . The consultants aimed to set the tone of the first phase by fostering an environment that took the perceptions of employees and governance seriously. They began with orientation sessions to explain the process to governance and management at headquarters and the 26 branch offices. Core staff at national headquarters (NHQ), IFRC, ICRC, and partner national societies (PNSs) also participated in the process. A brochure that described the process,
available in English, Sinhala, and T amil, was widely circulated within the national society, and similar information was posted on the SLRCS website. Throughout this highly sensitive process, SLRCS followed its guiding principles and philosophy of dedication, sacrifice and courage. The president, who demonstrated stability and kept the momentum going, down to top governance, set a strong example. At every level, the national society was urged to cooperate in the process to steer SLRCS towards a better future.
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Interview process
Over a six-week period starting in August 2009, in premises outside SLRCS, an independent panel comprising 19 resource persons carried out the one-to-one interviews. Confidentiality was ensured throughout the interview process. During the course of the interviews, the already completed questionnaires were rewritten, this time without mention of the persons name, and the original documents were destroyed. Results of all 302 interviews were presented to the president, national secretary, vice presidents, chairman finance commission, chairman task force, CGB members (as a group), deputy-DGs and executive directors. Throughout the RSPA process, the function played by the re-engineering progress review committee (RPRC) in supporting sensitive and demanding situations as well as expediting approvals, was crucial. In addition to the one-on-one interviews, a group of ten consultants conducted unannounced visits to the various departments of SLRCS headquarters and assessed everything from the buildings location to the presidents working environment, from drivers working conditions to the cleanliness of toilets. Four groups of consultants visited seven branch offices around the island to carry out similar assessments.
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Draft recommendations
Both quantitative and qualitative data collected from the RSPA process was presented as 36 draft interim recommendations to the CGB. The recommendations summarized key challenges faced by the national society after the tsunami, among them the need to separate governance and management roles, revise the SLRCS core structure, and develop new policies and guidelines. T ensure the re-engineering process moved forward it o was essential to first address these issues.
The 36 recommendations that follow set out to: o o o o o o o o o o o o o o o o Strengthen CGB capacity Elect an independent inquiry board Create new terms of reference for the president Recommend set-up of advisory committee Establish an international desk position Develop new terms of reference for the national secretary Empower the chairman finance commission (CFC) with a mechanism and strategies to advise CGB Set up commission to undertake independent risk management and audit activities Develop new terms of reference for branch governance Set up governance rewarding committee Re-appoint all NHQ and branch staff within first two weeks of January 2010 Develop new core structure for SLRCS Establish national policy and monitoring committee (NPMC) Set up virtual policy and monitoring committees as CGB sub-committees Formulate technical committees Set up Whistle-Blower policy
o o o o o o o o o o o o o o o o o o o o o
Set up independent human resources committee Enhance cooperation with IFRC, ICRC and PNSs Renew relations with IFRC, ICRC, PNSs and other donors Introduce new international delegates recruitment policy and system Develop new policy on international visits for governance and management Relocate SLRCS into new premises Establish new performance and reward management system Develop Decent Work for All policy and strategy Introduce excellent HR environment for productivity Launch 5-S week and productivity awards in 2010 Develop and present management plans and budget Set up new management and supervision systems Introduce beneficiary satisfaction and feedback mechanism Set up media, communication and image building policy and strategy Introduce vehicle and transport policy Set up learning and development desk Produce documents in Sinhala and T amil Initiate change management facilitation and HR development Develop volunteer incentives package Review and launch youth strategic plan Streamline fundraising and income generation programmes (IGP) at SLRCS
Within weeks these recommendations were approved by the CGB, and by 15 December 2009 changes began to take place in the national society.
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15 to 16 months back there was resistance by some branches to the [idea of a] change of governance and management. Change first happened at national headquarters, with top governance, and then trickled down to branches. Governance has run the society for over seven decades so its difficult to change overnight. But branches are committed to change. SLRCS Vice President Bharatha Jonikkuhewa
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In January 2010, a major capacity building workshop was arranged for all governance and senior management of SLRCS. The purpose of the workshop was to provide a progress report on the re-engineering process, discuss the new guidelines and job descriptions, set up new mechanisms and strategies for emergencies, and discuss follow-up of the first phase. During the same period all core staff, from the DG to branch staff, were formally informed of the staff re-appointment process, and of the interview process that would follow later the same month [this process continued into phase two].
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PASS hotline
In addition to the two monitoring bodies, PASS Asia set up and managed a trilingual (Sinhala/T amil/English) hotline on 15 December 2009 for branch and NHQ employees, governance, management, and Movement partners to record any issues related to management failure, misconduct or poor performance. The purpose of the service was to help management improve its capacity, while ensuring transparency and productivity.
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Key Tasks
1.1. Develop brochure to introduce concept (Sinhala/T amil/English) 1.2. Design and approval of RSPA questionnaire 1.3. Orientation sessions 1.4. RSPA with governance, management, IFRC, ICRC and PNS 1.5. Develop T oRs for CMC and RPRC 1.6. Produce methodology, strategies and action plan for the re-engineering process 2.1. Review of SLRCS constitution, policies and guidelines 2.2. Streamline existing policy, technical and management committees. 2.3. Set up new committees with T oRs in agreement with all parties 2.4. Prepare committee guidelines for governance and management
Remarks
Original plan to interview random sample (20) in RSPA process. Finally 302 interviews conducted
02
Review existing structures and set-up new structures & mechanisms for policy, technical and management committees at branches and NHQ
Guidelines for president, national secretary, chairman finance commission and branch chair man completed Rules and procedures manual completed RPRC request a trial period for implementation of draft guidelines (December 2009 to February 2010) New JDs drafted for DG, heads of department, executive directors and BEOs Institute of Personnel Management (IPM) carried out activities
03
Review existing structures and set-up new core structures, core positions and improved systems for branches and NHQ Set up performance management and reward management (PMRM) systems at branch and NHQ
3.1. Design and conduct HRM scoping study to finalise core positions, suitability of exiting HR systems, and new requirements for building capacity at branches and NHQ 3.2. Produce new version of job descriptions for all positions in branches and NHQ 4.1. Design and launch PMS at branches and NHQ together with per formance appraisal tools for staff 4.2. Establish performance appraisal mechanism and strategies 4.3. Set-up mechanisms to continue, discontinue, reward, promote, demote etc. based on performance levels.
04
Institute of Personnel Management (IPM) carried out activities New systems not introduced for appraisals due to time constraints. PASS conducted alterative appraisal methods Draft PMRM system completed
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Reengineering the Sri Lanka Red Cross 05 Facilitate change management process through building capacities
5.1. Design and facilitate compulsory training and development schedule 5.2. Development of identified training modules 5.3. Deliver and evaluate training programmes 5.4. Produce report on future training requirements to facilitate change management process Only 1 formal training session was designed. A number of formal and informal reviews were completed This task was outside the consultants original scope of work
06 07 08
Operational modalities and coordination mechanism (OMCM) Managing international affairs Managing communications achieve results to
This task was not achieved due to time constraints T completed oR Work still ongoing Communication systems was in place
7.1. Introduce structures, strategies and systems for managing international affairs with IFRC, ICRC, PNS and other stakeholders 8.1. Introduce improvements for internal and external communications 8.2. Set up strategies for effective use of telephone, email, fax, internet and mobile communications 9.1. Provide recommendations to redesign human resource environment 10.1. Present regular updates to RPRC and CMC 10.2. Submission of final report with lessons learnt 10.3. Submit report on Phase Two interventions
09 10
Improve human resource environment Monitor, evaluate and report on the reengineering process
RSPA interview findings provided the necessary recommendations Nine RPRC and six CMC reports produced 12 monthly progress updates produced
Additional Tasks
01 Design, implement and report on employee re-appointment interviews 02 Reviews and management progress reporting mechanism
1.1 Design employee history form and re-appointment scoring system 1.2. Data analysis of re-appointment interviews 1.3. Verify and submit re-appointment results The task started in Phase One and was completed in Phase Two
02
1.1 Design employee history form and re-appointment scoring system 1.2. Data analysis of re-appointment interviews 1.3. Verify and submit re-appointment results
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Several of the above policies and guidelines challenged long-standing practices, for instance Red Cross culture, and the traditional power base of branch chairmen. Even under normal circumstances some of these policies (for example, the whistle blower policy) are considered risky to implement and are deemed a threat But, of course, in the long run they benefit the organisation and require strong leadership, dedication and commit. ment for effective and efficient implementation.
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Besides policy development, one of the most extensive changes that emerged from the 36 recommendations was in the core structure. From just 80 staff pre-tsunami, the organisation had a total of over 1,000 employees working at SLRCS national headquarters and with PNSs in more than a dozen branch offices. With tsunami-operations winding-down, it was time to scale back and restructure the organisation. In line with revising the core structure, SLRCS had to also re-appoint its entire core staff. The latter step was to have a much wider impact on the national societys morale. Job descriptions and guidelines for governance and senior management had been drafted in the first phase, including those for branch governance and branch executive officers (BEOs).
Designed by IPM
The reputable Institute of Personnel Management (IPM), an independent, professional body in Sri Lanka, was appointed by the RPRC and CMC and approved by CGB to devise a new core structure for SLRCS. The methodology to gather information was developed by IPM and approved by the RPRC. It provided for extensive interviews with the president, national secretary, vice presidents, CGB, advisor to the president, branch chairmen and BEOs, and with senior personnel from IFRC, ICRC and PNSs. The structure was re-designed taking into account available resources, existing technical programmes and potential for future funding support from partners. From here, IPM was able to shape the new core structure by identifying and proposing any existing positions that needed to be abolished, changed, offered a promotion (e.g. BEOs), as well as the creation of new positions. The proposed new structure, which with the availability of resources could be modified as and when necessary, was approved by the CGB. Understandably, as noted by the former SLRCS head of operations about staff job security, there was a cloud of uncertainty within SLRCS with the IPM recommendations .
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Staff re-appointments
Staff re-appointment interviews that started in the first phase of the re-engineering process continued into the second. Between 4 January and 11 March 2010, 137 staff from NHQ and 71 from branches were re-interviewed by professionals from IPM. A rigorous set of criteria was used for the interviews, including a scoring system, professional certificate verification, and observations. Over 70 core staff eventually lost their jobs as positions were discontinued, causing an immediate drain of institutional knowledge from SLRCS. Retrenched staff were compensated using a gratuity and compensation plan developed by SLRCS, and fine-tuned by the consultants together with SLRCS. Staff terminations were not based on the interview findings but on subsequent performance appraisals and the finalisation of the new core structure. Final decisions on terminations were made by the CGB, with recommendations by the RPRC. The process and timing were, once again, understandably extremely challenging. The SLRCS head of HR and administration said the re-engineering process affected staff at SLRCS. Staff reduction was too sudden, especially for administration and HR, he said. Once the new core structure and core positions were in place, the consultants developed 41 new job profiles (descriptions and specifications), introduced new employment terms and conditions, and instituted a performance appraisal guide. One significant change in the core structure was the elevation of the BEO role, with a new job description that exercises at branch level the same management responsibilities as the director general has at a national level.
The early outcomes of such fundamental change are impacting on different stakeholders in different ways. The Vavuniya branch chairman said he thought the re-engineering process was a good idea, but he was not happy with all aspects of it. The power pyramid structure should be reversed, he said. The new structure has resulted in powers being centralised, which from our branch perspective, has slowed down the decision making process . The IFRC disaster management (DM) delegate had a different view. According to him, with the re-engineering process there is dramatic reduction in interference by governance with operational and management issues. The DG role has become stronger and each and every staff member now knows his or her roles and responsibilities .
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The ICRC cooperation coordinator was more optimistic about the process. I find the re-engineering process a fascinating project, refreshing in the sense that the Movement and IFRC OD approaches were put on hold to allow a new innovative approach to take place Yet, he also expressed some . concern that, the first and second phase of the process saw a decrease in the functionality of SLRCS leading to confusion in reporting lines and an overall lack of action. Within the process we need to identify why the SLRCS exists, which is to service communities and the vulnerable people of Sri Lanka . The action phase set off many questions for staff within the national society as well as Movement partners. Some change had taken place, but systems were not yet properly in place and gaps existed. SLRCS was to start fine-tuning the re-engineering process.
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Remarks
T oRs finalized for various committees Policy committee members selected (via newspaper ads) Orientation and induction workshop held for new committee members Developed new formats for agenda, minutes & other documents Drafted plan for CGB capacity building session Conducted capacity building session in July 2010 Drafted Code of Ethics and Good Governance guidelines Finalized guide submitted to CGB for approval in August 2010 Developed performance appraisal guide Amended existing human resources policy Policy developed in August 2010 President, NS, advisor and consultant begin vis its to branches and provide orientation on new guidelines and job descriptions. Confidential discussion held with top management to review
performance and assess progress of changes implemented
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Reengineering the Sri Lanka Red Cross 07 Establishment of advisory reporting mechanism for finance commission (including advisory services) Ensure smooth functioning of finance commission 08 09 10 Implementation of Whistle Blower policy and strategy Development & implementation of Decent Work for All policy and strategy Development of media policy and strategy
Produced awareness material (stickers, leaflets, posters) Whistle Blower policy completed in August 2010 Decent Work for All policy completed August 2010 Media policy finalized in August 2010 Drafted T for finance commission oR Recruitment process begins for Finance Commission members
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PhaSe thRee
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The 180-day programme provided branches space to re-think and re-design their future approach, with a stipulated number of days within which to create and carry out a plan of action. It was essential that these plans considered a range of issues such as how to raise funds through income generation and other fundraising activities in order to bear future administration costs, what types of service programmes were needed and how to design and implement them for beneficiaries, and how to strengthen and develop youth and volunteer participation. In addition, plans had to focus on good governance practices including ways to strengthen branches and build up the image of Red Cross, and how to foster relationships with various stakeholders - from district health, education and disaster management authorities to the corporate sector. Prior to implementation, each branch presented its plan of action to a special panel appointed by the president, which beside himself comprised the national secretary, advisor to the president, DG, IFRC, ICRC, PNSs and the chief consultant.
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During the two-day meeting, the president had sent another strong, clear message to the branches. If, after the 180-day period, any branch is found financially incapable of standing on its own feet or is not operating up to standard, then there is no need for such a branch to continue According to . the president, these branches would not be serving a purpose in the community. Thus, the 180-day programme served as a decision-making time. Branches could accept the programme or not. They could decide whether or not they wanted to implement the newly formed policies. Ultimately, the future of each branch would rest with itself.
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The main objective of the review team was to assess progress made against the plan of action, which branches had presented some months earlier. As part of the review, a scoring system was developed to ascertain where each branch stood in the 180-day programme. According to the review team, the purpose was not to compare one branch with the other but, as expected, some branches viewed it quite differently. Now theres competition between branches, which I like, and we are working hard to make sure Matara is the best branch in SLRCS, said the general clerk. Each branch review was conducted over the course of three days. On day one, prior to meeting with the branch, the review team conducted confidential assessments with both Red Cross and non-Red Cross beneficiaries without the knowledge of the branch. The branch visit started on the second day with an orientation. At this time the team presented its scope of work and assured the branch that its brief was to conduct the review with confidentiality, transparency, accountability, without bias or preferential treatment. The team stressed that except for formal sharing at the end of the review process, monitoring results would not be disclosed. After the presentation, each branch was given the opportunity to share reasons, if any, for delays in reaching set targets. This was followed by individual interviews with a member of the branch committee, the BEO and accountant. Interviews were also conducted with volunteers and youth members.
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During the appraisal, the team reviewed and verified various documents including: branch committee meeting minutes (to ensure participation and decision making by the entire branch committee and not just the chairperson); bank balances and statements (for financial accountability); and monthly progress reports. By checking the latter documents, the team aimed to corroborate if branch activities had been taking place and to ensure that the chairperson understood and adhered to the new branch structure and its programmes. It also served to check if SLRCS divisions and units were active and growing. The review committee provides an opportunity to show our progress, said the chairman of the Galle branch, his team prepared and fully ready to cooperate in the assessment process. The reality is that if we dont show change our branch may be dissolved or merged with another branch . Not all branches were as accommodating or as welcoming of the review team. According to the team leader, we have encountered sensitivities from BEOs and chairmen who either dont agree or are unhappy with some of the interview questions. Nevertheless, over the course of three months, the team carried out its brief to visit and appraise each and every Red Cross branch in Sri Lanka.
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Reengineering the Sri Lanka Red Cross Besides Red Cross branches, interviews were conducted with government agencies and other partners to measure cooperation and stakeholder satisfaction. Among the government representatives interviewed were district secretary, divisional secretary, disaster management coordinator (DMC), health officials, heads of educational and social services, and Grama Niladhari (GN). There was also a separate questionnaire for SLRCS beneficiaries aimed to assess community impact and beneficiary satisfaction. According to the divisional secretary in Galle, since tsunami related activities scaled down in early 2010, he has had limited interaction with the branch. Between December 2004 and February 2010, I had a good working experience with the Red Cross. In the early days there were misunderstandings that arose from miscommunication with both the Red Cross and other NGOs but these were rectified early on. Generally our discussions were open and transparent. Nevertheless he was aware of some recent branch initiatives and explained that, there is a big demand for education in our area, especially by middle-class families for English medium education. The set up of Victoria International School is a very positive move by the Red Cross in Galle. The vice-chairwoman of the village disaster management centre (VDMC) in Ahungalle GN division said they had strong links with the branch from September 2007, when the Red Cross helped establish the VDMC, right until early 2010. We have noticed a reduction in activities since then. A few months ago, the branch invited us to a meeting and shared that they were going through some sort of change, she said. The meeting, organised by the Galle branch, was one of a series held in the district to explain the 180-day programme to stakeholders.
Results of review
As each field review was completed, the team leader compiled a full set of documents for analysis by the review committee chairman. The review committee then prepared an evaluation and scoring report. Next, the review committee submitted the completed report to the president who contacted the branch for a formal hand over of the report. Branches identified with any urgent gaps for improvement were contacted straightaway with immediate, short-term or long-term recommendations for change. Those branches identified as needing to make immediate changes were required to present a plan of action, with implementation expected to take place within one month. At the end of the 180-day period, results of all 26 confidential branch reviews were presented in a final report to the president, CGB, DG, IFRC, ICRC and PNSs and will enable them to determine how best to support branches with implementation of the third and last phase of the re-engineering process. Specifically, the report will enable the DG to design a master plan for SLRCS with short, medium and long term interventions, for at least three to five years, with the support of IFRC, ICRC, and PNSs.
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Re-engineeRing
fRoM the BRanCh PeRSPeCtive
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One legacy of the Asian tsunami for the Red Cross in Galle is a three-story building ideally located a few kilometres from the prominent seaport and fortified city. Initially the branch had ambitious plans to set up a hotel and restaurant on the premises and, as in the past, expected NHQ to provide financial backing. However, with the launch of the 180-day programme responsibility quickly shifted. As the branch chairman said, before the re-engineering process the attitude of the branch was to depend on NHQ for its future direction and funding. We quickly realised we needed to change our attitude if we were to survive and I believe we have .
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The branch explored various business options that didnt require NHQ intervention. Within three-months a joint venture agreement was signed with the education institution The Victoria International College (TVIC) to set up a franchise in Galle. The partnership is on a profit sharing basis, with a 60 per cent share going to TVIC and the remaining 40 per cent to the Galle branch. Investment for the infrastructure was borne by the branch while the education and marketing aspects are handled by TVIC. Classes in the pre-school section began in January 2011. Plans are underway to open the primary school in 2012 with the secondary section proposed for 2013. According to the BEO, the branch is already thinking about expanding. In the future wed like to be able to purchase the adjacent land so we can build a badminton court and swimming pool for the college. This will increase our income and enable us to run bigger Red Cross programmes, he said.
The RIMES (regional integrated, multi-hazard early warning system) project is another direct result of the branch taking the initiative to seek external donors to fund projects, in this case the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP). With its focus on early warning systems for tsunamis, cyclones and other hazards in Asia and Africa, the five-year project between RIMES and the Galle branch will concentrate on five communities in flood prone areas. The chairman explained that, in the first six months RIMES and the branch will carry out assessments, with one coordinator, two field officers and one volunteer from each division; activities will be developed subsequently This is a collaborative project between the Red Cross and local govern. ment authorities in Galle including the meteorological, geological and agricultural departments. The DMC is set to come on board once the project begins later in 2011.
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She shared her recent experience with the Polpitigama, Mawathgama, and Ibbagamuwa divisions, which conducted a joint needs assessment in Poltigama. For the first time, new activities were planned together that included establishing medical camps, maternal and child health projects, upgrading wells in drought-affected areas, providing psychosocial support to women who work abroad (as domestic workers), and setting up a childrens library and club as well as youth circles. The efficient results of the assessment can be attributed to the ability of BEOs who now make decisions themselves, without having to go through the process of first getting approvals from each of the specialists at NHQ. There are obviously issues that need to be addressed to ensure this new approach works fully, but as the DG said, this process will take time as the various technical specialists need time to become proficient in areas outside their expertise .
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Reengineering the Sri Lanka Red Cross over to the branch by beneficiaries of the tsunami who no longer had use for them. The plan is for these cloth bag kits to be sold house-to-house by Red Cross volunteers and at commercial first aid courses. The aim is to reach a monthly sales target of 100,000 rupees and eventually to expand business to other Red Cross branches across the country. Spurred on by the challenge of long-term targets and goals, the branch expanded into other project areas identified under its 2010 plan. The most successful of these has been the establishment of micro-finance groups in all ten Matara Red Cross divisions. T oversee the entire process, one o qualified micro-finance manager has been appointed at the branch and one at the community level. The project launched in January 2011 and the identification of vulnerable people to participate in the project is well under way at the Red Cross divisional units.
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speakers. The branch has four divisions but only two are fully functional so we want to address this; we also aim to establish a fourth division in Vavuniya South, a predominantly Sinhala community. We are not independent as a branch so the 180-day programme is useful to help us develop ourselves. We will need financial and professional support in the beginning but after that, we can look after our branch on our own .
Tangible progress
By January 2011, the branch had made noticeable progress towards achieving its action plan under the180-day programme notably with the formation of the Vavuniya South division and 11 units. Moreover, with 93 per cent of its administrative costs covered through income generation activities at the branch and divisional levels, its long-term financial sustainability appears set. Membership recruitment had also successfully expanded to 80 per cent. Change is apparent in other aspects of the programme including implementation of good governance practices and the synergy maintained between governance and management. On a scale of 1-10, the branch now also rates its relationship with stakeholders at 8 and continues to make strides in nurturing relationships with other groups in the district.
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Red Cross machinery organization (REDMO) was established during the tsunami-recovery period in order to make use of heavy equipment, primarily trucks and excavators, donated by the Korean Red Cross Society after field operations ended. The business was registered under Sri Lankan law as a limitedby-guarantee company with tax-free benefits. Initially SLRCS set aside some funds to operate the company, which functioned solely on hiring out its heavy equipment. While REDMO was established with much optimism, both SLRCS governance and management were unable to focus much attention or time on the venture due to the priorities of the tsunami operation. Before long, complicated management issues together with little experience of running a big business drove the company into debt. During this period, the re-engineering process at SLRCS was underway and through its connection to SLRCS, REDMO was also identified for change. Recognizing that raising funds in an efficient way was integral to the future of the national society, the president sought to convert REDMO into the official business arm of SLRCS.
RedMo
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Conclusions
The re-engineering process at the SLRCS continues today. Plenty has been achieved in just over 18 months; some of it has gone well, some not so well. But a profound change has occurred, nonetheless. Governance and the management team clearly own the process and culture of change within the society, making the RPRC, CMC, and consultants involvement minimal and SLRCS involvement very high. Critical processes are ongoing and it is difficult to measure impact and make conclusions while procedures are still in transition. Even though the 180-day programme has ended, realistically many of the 36 recommendations that emerged from phase one and two may take SLRCS another three to five years to complete. Certainly some key recommendations including a clear delineation of roles between management and governance, the establishment of a new core structure and development of essential policies and guidelines, have been realised. Furthermore, REDMO had been restructured and expanded to generate more funds for the future financial sustainability of SLRCS. However, major challenges still lay ahead for the national society. Some of the new and amended policies, such as the whistle blower decent work for all beneficiary satisfaction, and transport policy, are embedded in the , , ongoing third (implementation) phase and branches, governance and management are expected to adhere and comply with these policies. As part of the process, an independent inquiry board, new finance commission, and independent mediator (to handle grievances against members of SLRCS governance including the president) will shortly be appointed. Clearly, there is a continued and strong need for monitoring and supervision of phase three of the re-engineering process. The president and CGB have an enormous task on their hands as does the DG and management, who must be given a free rein to organise the national society. There is a need for the DG and management team to develop a solid, long-term plan to support implementation of the third phase. This includes capacity building of branch governance, as well as staff at NHQ and branches, to enhance performance, and designing new projects and raising funds for the benefit of vulnerable people at the village level. One of the challenges for SLRCS is to remain true to the recommendations of the reengineering process, for instance in the separation of governance and management, and by maintaining accountability, integrity and transparency.
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So is the re-engineering process a success? According to the former IFRC head of core programmes in Sri Lanka, we did not believe that change at this stage could happen (particularly a separation of governance and management) but it has She believes that it is the Movements responsibil. ity to assist SLRCS sustain the change and deepen the impact of its work with vulnerable communities and there is a lot that can be learnt from the re-engineering process . The ICRC cooperation coordinator recognized that the achievements to date are very significant but they have taken place with the undertone of crisis and anxiety. He qualified the process as, leaning towards success, but its too early to see if it will end successfully Change is taking place . at SLRCS but the challenge is how the national society will manage under this new change, especially when a new crisis arises. There is no other choice for the SLRCS than for the re-engineering process to succeed. But it entails no one letting down their guard, he said. From the perspective of the CRC country coordinator, while the overall process has been quite positive with many lessons learnt, it has been difficult for Movement partners. He believes the impact of change will only be seen in 6 to 12 months from now and that meanwhile, there needs to be a transition period thats acceptable between partners and SLRCS with PNS taking the lead in the implementation of new projects . The SLRCS national secretary said he believes that, we are on the right track and 100 per cent happy with the process. By mid-2011 we will clearly know if [re-engineering] has worked. At programme level the changes will take time to happen. T angible results will not be immediately visible .
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A team achievement
At times it was thought that the process was a near impossible undertaking, overly ambitious and with too much to achieve. With his far-sighted vision, the president relied on three forces (the branch network, the DG and his management team, and REDMO), to achieve his plan to re-engineer SLRCS, hopeful that it would also be the vision of his national society. Working hand-in-hand as one team, with dedication, commitment, and a sense of responsibility while adhering to the Movements seven principles and the presidents three forces has , enabled SLRCS to stay the course. Eventually this will lead the national society to achieve its dream of successfully re-engineering SLRCS. The SLRCS re-engineering process challenged traditional methods and policies of governance and management in the Red Cross Red Crescent Movement. Ultimately, the reason for its accomplishments and the buy-in by the national society can be credited to the fact that it did so without challenging the core principles of the Red Cross.
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acronyms
BEO CBDRM CFC CGB CMC CRC DG DM DRC DRR FYDP GN HR ICRC IDP IFRC IGP IPM NRC NHQ OD PASS (Asia) PNS RIMES RPRC RSPA SLRCS UN-ESCAP Branch executive officer Community based disaster risk management Chairman finance commission Central governing board Consultancy review committee Canadian Red Cross Director general Disaster management Danish Red Cross Disaster risk reduction Five-year development plan Grama Niladhari Human resources International Committee of the Red Cross Internally displaced people International Federation of the Red Cross and Red Crescent Income generating programme Institute of Personnel Management Netherlands Red Cross National headquarters Organisational development Productivity Alternatives for Sustainable Solutions (Asia) Partner national society Regional integrated, multi-hazard early warning system Re-engineering process review committee Rapid status and performance appraisal Sri Lanka Red Cross Society UN-Economic and Social Commission for Asia and the Pacific
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annexe 1
Sunil Dissanayake, Hon VP 2 SLRCS Nimal Kumar, Hon NS SLRCS Prasanna Dassanayake, CFC Neville Nanayakkara, former DG Tissa Abeywickrama, acting / current DG Gamini Pinnalawatte, Advisor to the President of SLRCS Samantha S. Pathirathna, PASS Asia Chief Consultant
Management Other
Andreas Lindner, Country Coordinator GRC Olav Aasland, Country Representative NRC John Entwistle, former Country Coordinator DRC Gamini Pinnalawatte, Advisor to the President of SLRCS Samantha S. Pathirathna, Chief Consultant
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annexe 2
DDG
BEO (26)
Head of Operations
Integrated Functions
Head of Service
Finance Controller
OD Specialist
DM Specialist
Health Specialist
Manager IT
Accountant - 2
Manager Finance
Youth Officer
Media Officer
Warehouse Officer
Cashier
Other Staff
Management Assistant
Media Coordinator
Warehouse Assistant
Office Assistant
Office Assistant
Drivers 9
Office Assistant
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