Task C:Supporting Electricity Sector Reformdocuments.worldbank.org/.../03-Task-C-Manpower-and...• Manpower benchmark with regional peers for the overall company and for the key business

World Bank

Task C:Supporting ElectricitySector Reform

Deliverable 2.3: Manpower/ OrganizationalRationalization Review

Strictly privateand confidentialDraft

15 December 2017

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15 December 2017Strictly private and confidential

Draft

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2

Disclaimer and copyright note

This document has been prepared only for the InternationalBank of Reconstruction and Development ("IBRD") and solelyfor the purpose and on the terms agreed with the IBRD in ouragreement dated 21 March 2017 relating to Task C.

The scope of our work was limited to a review of documentaryevidence made available to us. We have not independentlyverified any information given to us relating to the services.

We accept no liability (including for negligence) to anyone elsein connection with this document. We have agreed with youthat the report will be provided by you to GECOL for theirconsideration. We would ask that it not be provided to anyoneelse unless otherwise agreed in writing by us.

This is a draft prepared for discussion purposes only andshould not be relied upon; the contents are subject toamendment or withdrawal and our final conclusions andfindings will be set out in our final deliverable.

© 2017PricewaterhouseCoopersLLP

All rights reserved. In thisdocument, 'PwC' refers to theUK member firm, and maysometimes refer to the PwCnetwork. Each member firmis a separate legal entity.

Please seewww.pwc.com/structure forfurther details

Introduction

Analysis of GECOL Manpower

GECOL Manpower Sizing Recommendation

GECOL re-skilling recommendation

Appendix

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The manpower/organizational rationalization review report is the fifthdeliverable of Task C

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4

Strategy forinstitutionaldevelopment

ERP Systemreview

Process mapping &identification of gaps in

staff, skills, perform.

Manpower / org.rationalization review

Tariff frameworkreview

Tariff structureset-up and reform

pathway

Tools (excel model)& Trainings

Improving financialperformance of

customer service

Improving technicalperformance

2.1

2.2

2.3

2.4

3.1

3.2

3.3

4.1

4.2

Review and finalreport

Customer serviceperformanceimprovement

Financial performanceassessment &financial models

InstitutionalDevelopment

Project set-up /Inception report

1 2 53 4

Findings review andfinal report

5.1

Data collection

1.1

Workshop & Training

6

Methodology, team andapproach validation

1.2

PMO (progress reporting)

7

Focus of

this report

Source: Task C inception report

1 Structuring the deliverable

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The next sections will focus on the analysis of the issues identified in therapid assessment report and sector performance and structural sectorreform reports and the measures to reach the objectives.

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Analysis of GECOLManpower

GECOL re-skillingrecommendation

GECOL Manpower SizingRecommendation

• Analysis of manpower development since 2008• Detailed analysis of key Business Units• Analysis of key qualifications• Analysis of ageing structure• Outlook for future headcount• Manpower benchmark with regional peers for the overall

company and for the key business units

• Proposing prioritized reskilling initiatives• Detailed action plan and guidelines for priority initiatives• Timeline definition for key initiatives

• Analysis of business unit manpower needs based onbenchmark KPIs

• GECOL manpower need assessment

Next sections approach & focus

Initial issues analysis• Short summary analysis the issues identified in the rapid

assessment report and sector performance and structuralsector reform reports and their implication

2 Overview of storyboard structure

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GECOL is an overstaffed utility company with an urgent need of re-skillingthe staff

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Issues

Overstaffed

No functional HRdepartment

Lack of BoDcommitment on HR and

Training topics

Skill needs are not met

• Compared to regional utilities GECOL is heavily overstaffed• Manpower increased by more than 30% in the last 5 years• GECOL is misused as an employment vehicle for Libya

• Roles of a “normal” HR department are spread over differentdepartments

• Influence on manpower and skill set is very limited

• HR Strategy is not in place• Training Strategy was discussed within BoD but never approved

• Increasing cost base• Increase of subsidies• Tariff increase

• Hiring follows no strategy andincreases the manpower on apermanent basis

• New hires don’t fit needs

• HR matters are not considered tobe crucial for the company

• Re-Skilling through training ismissing

• Capabilities and skills don’t match with the needs• Employees with wrong skills are hired• New hires are allocated to departments and units on a random basis• Succession planning issues are not reflected in the skill set

• Overstaffed departments needeven more employees as the rightskills are still missing

• Retirements could lead toknowledge lost in critical areas

Implication

The issued mentioned here are a summary of the analysis of the upcoming sections


Introduction




Appendix

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Draft

Overall Headcount increased by 13,088 FTEs between 2008 and 2017 or bymore than 40%. Since 2010 the increase was 10,933 FTEs or about 31% (allnumbers excl. Police and Collaborators)


8

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DepartmentFTEs

2008

FTEs

2010

Total FTEs 3/2017

(Excl Police &

Collaborators)

Total FTEs 3/2017

(Incl Police &

Collaborators)

Board of Directors 289 298 658 882

Public relations 228 242 350 428

Generation General Dept 3,092 3,468 4,560 4,939

Control general department 1,057 1,359 1,647 1,678

Distribution General Dept 11,492 11,928 15,074 15,461

Planning General department 138 139 163 164

Distribution projects 668 685 914 1,072

Contracts & Development Accounts General Dept 150 163 197 207

Financial affairs 343 352 416 429

Procurement & Stores General Dept 594 608 964 1,132

HR 682 703 1,097 1,154

Services General Dept 1,957 1,847 2,540 2,785

ICT 346 359 432 438

Internal Audit 763 805 893 903

Transmission projects 165 173 253 253

Legal 108 130 166 179

Consumer services 5,867 6,080 7,835 8,829

Transmission General department 1,480 1,826 2,552 2,577

Meduim voltage 2,952 3,348 4,594 4,806

Generation Projects 123 136 277 387

Total 32,494 34,649 45,582 48,703

Generation 3,215 3,604 4,837 5,326

Distribution 15,112 15,961 20,582 21,339

Supply 5,867 6,080 7,835 8,829

Transmission 2,702 3,358 4,452 4,508

Support 5,598 5,646 7,876 8,701

Total 32,494 34,649 45,582 48,703

Source: GECOL Data ID #017, received 05/04/2017 from GECOL

Generation Departments

Colour Legend

Distribution Departments

Supply Departments

Transmission Departments

Support Departments

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Since 2008 the overall headcount increased by 10,000 employees till 2015or around 30%. Highest increase was see in the distribution department.

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Source: GECOL Data, received 31/10/2017 from GECOL, deviation to 2008 and 2010 figures used in other analysis is due to the fact that this figures don’t includethe PR department and that the ERP does not extract the historical data in a standard report and the staff had to work on them on individual basis.

Generation Departments

Colour Legend

Distribution Departments

Supply Departments

Transmission Departments

Support Departments

General Department (# FTEs) 2008 2009 2010 2011 2012 2013 2014 2015

Board of Directors 518 527 541 566 610 669 689 724

Generation 3,076 3,234 3,452 3,593 3,793 3,940 4,024 4,143

Control 1,042 1,083 1,344 1,374 1,407 1,483 1,534 1,599

Distribution 11,397 11,623 11,835 12,063 12,360 13,236 14,037 14,522

Planning, Studies & Development General Dept 136 136 138 140 143 155 156 160

Distribution Projects 665 673 682 687 727 737 758 804

Contracts & Development Accounts 150 154 163 165 168 169 176 186

Financial Affairs 345 350 354 355 367 368 371 403

Procurement & Stores 587 589 600 605 634 642 661 785

HR & Communictaions 673 683 694 699 771 847 869 921

Services 1,802 1,865 1,912 1,975 2,080 2,104 2,128 2,234

ICT 344 351 358 363 369 385 399 425

Internal Control 757 788 800 814 831 834 836 870

Transmission projects 164 169 172 175 177 181 185 196

Legal Affairs 107 119 129 133 135 136 136 152

Consumer services 5,826 5,974 6,039 6,064 6,193 6,428 6,613 6,790

Transmission 1,482 1,583 1,825 1,962 2,019 2,219 2,477 2,513

Meduim Voltage 2,718 2,978 3,100 3,170 3,240 3,641 3,921 4,072

Generation projects 122 128 134 137 139 142 146 163

Total 31,911 33,007 34,272 35,040 36,163 38,316 40,116 41,662

Generation 3,198 3,362 3,586 3,730 3,932 4,082 4,170 4,306

Distribution 14,780 15,274 15,617 15,920 16,327 17,614 18,716 19,398

Supply 5,826 5,974 6,039 6,064 6,193 6,428 6,613 6,790

Transmission 2,688 2,835 3,341 3,511 3,603 3,883 4,196 4,308

Support 5,419 5,562 5,689 5,815 6,108 6,309 6,421 6,860

Total 31,911 33,007 34,272 35,040 36,163 38,316 40,116 41,662


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Increase of FTEs in all Business Units since 2008 till 2015. Highest increasewith 60% in the transmission unit, lowest increase

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Source: GECOL Data, received 31/10/2017 from GECOL, deviation to 2008 and 2010 figures used in other analysis is due to the fact that this figures don’t includethe PR department and that the ERP does not extract the historical data in a standard report and the staff had to work on them on individual basis.

3,198 3,362 3,586 3,730 3,932 4,082 4,170 4,306

14,780 15,274 15,617 15,920 16,32717,614 18,716 19,398

5,8265,974 6,039 6,064 6,193

6,4286,613

6,790

2,6882,835

3,341 3,5113,603

3,8834,196

4,308

5,4195,562

5,6895,815

6,108

6,309

6,4216,860

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2008 2009 2010 2011 2012 2013 2014 2015

FTE Development 2008 – 2015 (Business Units)

Support

Transmission

Supply

Distribution

Generation


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Since 2008 especially Distribution and Generation departments increasedtheir manpower substantially. Also the department for the BoD increasedtheir manpower by 16%. The overall increase was 5%

11

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16%

7%6%

7%

4%

2%

5%4%

3%

8% 8%

4%3%

2%

7% 7%

4%

9%

7%

16%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Manpower development in GECOL departments since 2008

2008 -2017 2010 -2017 average change p.a. since 2008


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Draft

Headcount by qualification shows that around 30,000 FTEs have atechnical background (engineers or technician). Around 3,800 FTEs have afinancial background and around 3,600 FTEs work for manual services

12

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- 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

Distribution General Dept

Consumer Services General Dept

Medium Voltage Networks General Dept

Generation General Dept

Services General Dept

Transmissionا General Dept

Control Generfal Dept

Procurement & Stores General Dept

HR & Communictaions General Dept

Distribution Projects General Dept

Internal Control General Dept

Board of Directors

ICT General Dept

Financial Affairs General Dept

Transmission Projects General Dept

Contracts & Development Accounts General Dept

Legal Affairs General Dept

Planning, Studies & Development General Dept

Generation Projects General Dept

Electricity Defence General Dept

Qualification of employees in different departments in 2017

Engineers Financial Medical Software Research Services (manual) Technician Trainees Translators


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Headcount by Age shows that the demographic pyramid is not balanced.Middle Aged staff is the majority and less young employees work forGECOL

13

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Age Group

GECOL No. of

Employees GECOL % Optimum % 1)(18 - 30) 5,209 12% 25%

(31 - 40) 14,517 32% 25%

(41 - 50) 17,031 38% 25%

(51 - 60) 7,618 17% 15%

(61 - 65) 693 2% 10%

TOTAL 45,068 100% 100%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

(18 - 30) (31 - 40) (41 - 50) (51 - 60) (61 - 65)

GECOL No. of Employees Optimal GECOL No. of Employees

1) Optimum pyramid should have an equal balanced structure according to severalexperts in the utility sector like “BET Aachen”, “Verbund Sustainability Report” etc


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Applying the optimum Ageing Structure on the Tripoli South PowerStations shows that the stations should employ younger employees toreplace future retirements accordingly

14

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TripoliSouthPowerStationAging

# FTEs % of totalFTEs

- 30 15 7.5%

31 - 40 61 30.7%

41 - 50 71 35.7%

51 - 60 44 22.1%

61 - 65 8 4.0%

TOTAL 199 100.0%

Source: GECOL, 7 November 2017, HR Department

15

61

71

44

8

50 50 50

30

19

0

10

20

30

40

50

60

70

80

-30 31 - 40 41 - 50 51 - 60 61 - 65

Optimum Ageing Structure

Actual FTE Structure Optimum FTE Structure


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Draft

45,58247,908

50,35852,941

55,66258,531

61,55664,746

68,110

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2017 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E

ESTIMATED MANPOWER DEVELOPMENT

Generation Distribution Supply Transmission Support Total Linear (Total)

If the manpower increase would continue as since 2008 the totals FTEs in2020 would be around 53k FTEs and in 2025 more than 68k FTEs

15

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CAGR 5%

Note: The FTE numbers don’t include police and collaborators


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GECOL, 5.42

ONEE, 1.17

EEHC, 4.37Sonelgaz, 4.66

STEG, 3.41

-

1.00

2.00

3.00

4.00

5.00

6.00

Libya Morocco Egypt Algeria Tunis

Manpower per MW installed capacity

Manpower per MW installed capacity is over the average and also higherthan most of the regional peer companies

16

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FTEs

Average: 3.40 FTEs

7,684 1) 8,262 38,857 19,006 3,599Instal. Capacity in(MW)

FTEsoverall 41,662 9,642 169,933 88,569 12,288

2015 2016 2015/16 2016 2016Financial Year

SOURCE: 1) The installed capacity includes the effective installed capacity NOT the name plate capacity. PWC data ID #22 – Installed and available capacity - Received on 05/04/2017 from GECOL2) Annual Report 2016, ONEE3) Annual Report 2015/16, EEHC4) Annual Report 2016, Sonelgaz5) Annual Report 2016, STEG

2) 3) 4) 5)


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1.17

0.31

0.91

1.34

0.83

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

GECOL ONEE EEHC Sonelgaz STEG


Manpower per Net Generation in GWh

Manpower per Net Generation in GWh is over the average and also higherthan most of the regional peer companies

17

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FTEs

Average: 0,85 FTEs

35,481 30,840 186,320 66,263 14,806Net Generation(GWh)

FTEsoverall 41,662 9,642 169,933 88,569 12,288

2015 2016 2015/16 2016 2016Financial Year

2) 3) 4) 5)

SOURCE: 1) PWC data ID #22 , Received on 05/04/2017 from GECOL2) Annual Report 2016, ONEE3) Annual Report 2015/16, EEHC4) Annual Report 2016, Sonelgaz5) Annual Report 2016, STEG

1)


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30

582

191

99

312

-

100

200

300

400

500

600

700

GECOL ONEE EEHC Sonelgaz STEG


Customers per FTE

Customers per FTE is far below the average and also the lowest within theregional peer companies

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Customers

Average: 296 Customers

1,232 5,611 32,400 8,810 3,837Customersin Thousand.

FTEsoverall 41,662 9,642 169,933 88,569 12,288

2015 2016 2015/16 2016 2016FinancialYear


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47

1,078

317

160

-

200

400

600

800

1,000

1,200

Customers per FTE in Distribution & Supply

Libya GECOL Morocco ONEE Egypt EEHC Algeria Sonelgaz

Customers per FTE in Distribution & Supply is far below the average andalso the lowest within the regional peer companies

19

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1,232 5,611 32,400 8,810Customersin Thousand.

FTEsIn D & S 26,188 5,207 102,227 55,000

Average: 518 Customers

2015 2016 2015/16 2016FinancialYear


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Draft

8.24

16.16

5.51

4.17

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

GWh Net Generation per FTE

Libya GECOL Morocco ONEE Egypt EEHC Algeria Sonelgaz

GWh Net Generation per FTE in Generation is close to the benchmarkswithin the regional peer companies …

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35,481 30,840 186,320 66,263NetGeneration inGWh

FTEsin Generation 4,306 1,908 33,820 15,890

GWh

Average: 8,61 GWh

2015 2016 2015/16 2016FinancialYear


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… but bottom up analysis of Tripoli South Power Station shows that staffnumber is 8 times higher that in benchmark CCGT Plants. Therefore adetailed bottom analysis of all generation units is needed for the future.

21

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Tripoli South Power Station500 MWQualification

# FTEs

Engineers 79

Technician 76

Driver 13

Clerks 8

Fuel Dispenser 7

IT 6

Fire fighter 5

Others 5

TOTAL 199

OtherCCGTsplants

CapacityMW

# FTEs FTE perMW

Norfolk,UK, Start2019

370 30 0.081

Mississippi,US, Start2003

900 25 0.028

Nottinghamshire, UKStart 2013

1,332 50 0.038

AVERAGE 0.049

Averageapplied onTripoliSouthPowerStation

500 25 0.049

Source: GECOL, 7 November 2017, HR Department

Source:http://utilityweek.co.uk/news/lift-off-for-new-ccgt-plant/1296662http://www.power-eng.com/articles/2001/12/intergen-completes-financing-on-900-mw-project-in-mississippi.htmlhttps://www.edfenergy.com/energy/power-stations/west-burton-b-ccgt


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Draft

0.27

0.06

0.69

0.42

-

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

Transmission FTE per km

Libya Morocco Egypt Algeria

Transmission FTE per km Transmission line is in line within the regionalpeer companies

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FTEs

15,996 25,545 44,904 27,838

TransmissionLines inkm

FTEsInTransmission

4,308 1,446 31,096 11,600

Average: 0.29 FTEs

2015 2016 2015/16 2016FinancialYear


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Draft

16%

11%

2%

7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Libya Morocco Egypt Algeria

% FTEs in Support

The percentage of total Manpower working in support units is above theaverage and the highest within the regional peer group

23

World Bank

41,662 9,642 169,933 88,569Total FTEs

FTEsin Support 6,860 1,081 2,790 6,079

Average: 7%

2015 2016 2015/16 2016FinancialYear


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Manpower KPIs for GECOL show that especially distribution and supportdepartments are oversized compared to the peer group

24

World Bank

KPIs related to the overall company performance show that GECOL is overstaffed especially in relationship to the number of customers

KPIs related to distribution & supply show that especially GECOL ‘s distribution department is completely overstaffed

KPIs related to the generation department are more or less in in line with regional benchmarks

KPIs related to transmission show that GECOL is even a bit understaffed compared to regional benchmarks

KPIs related to the support department show that GECOL overstaffed compared to regional benchmarks

Most of the KPIs (with the exception of Generation KPIs) have deteriorated since 2008 and GECOL was muchmore efficient in the past compared to 2015.

Benchmark Manpower KPIs 2008 2010 2015 GECOL Best Average Peer Group

Manpower per MW installed capacity 5.24 4.34 5.42 4.34 3.40

Manpower per GWh produced 1.13 1.07 1.17 1.07 0.85

Customers per FTE 36.93 35.37 29.57 36.93 296.09

Customers per FTE in Distribution & Supply 57.20 55.61 47.05 57.20 518.25

Customers per FTE in Distribution 79.41 76.79 63.52 79.41 293.68

Customers per FTE in Supply 204.53 201.58 181.46 204.53 352.41

GWh produced per FTE in Generation 8.92 9.03 8.24 8.24 8.61

Transmission FTE per km 0.18 0.22 0.27 0.18 0.29

% FTEs in Support 17% 16% 16% 16% 7%


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Overstaffing in Distribution and Supply and Support Units in contrast to(future) understaffing in Generation

Issues

Manpower increase

Mismatch with most ofthe benchmark KPIs

Skill Set Composition

Age structure

1

2

3

4

• Constant Manpower Increase over the last 8 years in all departments• Increase is only justified in the Generation and Transmission Department• Distribution General and Consumer services hired most of the

employees in absolute figures since 2008• BoD Department shoes the highest % increase since 2008• If the increase continues as in the last 8 years, the total FTE number

would reach 53k in 2020 and i68k n 2025

• GECOL’s overall manpower based on generation, installed capacity orcustomer KPIs is not in line with regional benchmarks

• Deep dive in different departments showed a significant overstaffingespecially in Distribution & Supply and in the Support Units

• Generation and Transmission are in line with regional benchmarks

• 30,000 Engineers and Technician seems to be a proper fit for a utilitycompany

• But bottom up examples show that skill needs don’t match with the skillset of the employees

• Employee allocation doesn’t follow the needs

• Manpower need for 2025 has tobe identified for all key businessunits and manpower has to beadjusted according to this needs

• Target KPIs for GECOL for 2020and 2025 have to be identified forthe different Business Units

• Manpower Needs for 2025

• Skills need assessment has tostart

• Based on future needs Re-Skilling process has to start

• around. 5,000 FTEs or 12% are aged below 30• around 20,000 FTEs or 44% are aged below 40• around. 25,000 FTEs or 57% are aged over 40• around. 8,000 FTEs or 19% are aged over 50

• Focus on training of staff agedbelow 40

• Secure knowledge transfer ofgroup aged over 50

Conclusion

25

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Introduction




Appendix

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Draft

4,306

10,44714,680

19,3984,358

4,581

6,790

3,632

3,817

4,308

5,785

5,829

6,860

1,592

1,900

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2015 2020 Average 2025 Average

Manpower needs based on KPIs

Generation Distribution Supply Transmission Support

Based on benchmark KPIs from regional utilities the manpower resizingwould lead to a substantial downsizing

27

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41,662

25,815

30,807


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Draft 28

Overstaffing in Distribution and Supply and Support Units in contrast to(future) understaffing in Generation

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GECOL manpower need assessment

Supply Unit should be reducedby 75% according to benchmarks

Currently Generation is staffed inline with regional benchmarks butincrease in future capacity needs

sharp increase of staff

Distribution Unit needs only25% of staff according to regional

benchmarks

Transmission Unit is more orless in line with regional average

but according to best practicecould be also increased by 30%

Support Units need only 25% ofcurrent staff according to regional

benchmarks

minus 75%

minus 75%

minus 75%

Plus 30%plus 200%


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Draft 29

To reach the Manpower Resizing goals in 2025 only a combination ofintrusive and conservative approaches could work BUT re-skilling is thetop priority action

World Bank

Manpower-related resizing approaches

Immediate Actions Mid Term Actions

After the immediate actions starting after 2020 thefollowing actions should be implemented till 2025

Immediate Actions which should start in 2017/18Re-Skilling is the TOP Priority which has to start

immediately

Freeze Hiring

EarlyRetirement

Institute a hiring freeze as more than12% are aged below 30 and more than40% aged below 40

Prepare an early retirement package foremployees aged over 60 (2% of totalFTEs)

Reallocate

Retrain forinside work

Start immediately to reassignespecially technicians to otherdepartments like the generationdepartment

Leverage current resources to fillunmet needs in the generationdepartment Incentivize to

leave

Offer buyout solutions for non corebusinesses like Health Service, Driver,Translation etc

Dismiss

IncentivizeBuyouts

Ask employees to take voluntary lay-offs

Temporarily or permanently terminateemployment for a group of employeesespecially in D&S

Re

-Sk

illi

ng

Start GECOLAcademy

Train managers and staff professionalsto be hired inside but also outside thecompany


Introduction




Appendix

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Draft 31

The need for GECOL to invest in corporate-wise reskilling is among the keyrecommendation emerging from Task C

World Bank

Proposed reskilling initiatives

Centralizing all HR activitieswithin a core department

within HR

Developing a medium andlong term training strategy

Secure central funding for alltrainings out of GECOL’s

budget

Establishment ofGECOL Academy for all

employees

Ad-hocmanagement contracts for

specific / new plants fortraining purposes

Introduction ofExecutive developmentincluding BoD training

Launch oftarget internal

hiring procedure

Launch of mentoringprograms

(e.g. pairing betweenexperienced employees and

more junior ones)

Approve a general trainingpolicy

e-trainingincreased digitalisation also

in learning solutions

Introduction oftraining incentive schemes

(e.g. trainee programs,talent schemes)

Personnel developmentshould focus on technical and

safety qualifications and ITtraining.

Training should become anintegral part of performance

management

Establishment of structuredsuccession planning

Apprentice training dualvocational training (electrical

engineering and metalworkingtechnician))

Establishment ofinternational exchange

training programs

1

6

2 3 4

5

Lo

wP

rio

rity

Hig

h


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Draft

Centralizing all HR activities within a core department within HR

32

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Human Resources Management

The HR department at GECOL should have theauthority to issue guidelines concerning all issuesrelating to personnel management. Focus should beplaced on the following core functions:

• coordinating personnel planning and management;• preparing a Group personnel budget;• recruiting, personnel marketing and employer

branding;• strategic alignment of the application of labor and

social law, and employer representation ininteractions with employee representatives;

• remuneration and benefits for executives andemployees;

• personnel development/training;• basic questions relating to occupational health care;

and• diversity and inclusion.

1

Actions needed

1. Develop a HR strategy and approve it by theBoD

2. Consolidate in HR department (under MD) allthe HR-related core functions (see the left box)leaving non-core HR activities within SupportServices


PwC


Draft

Developing a medium and long term training strategy

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2

Actions needed and implementation guidelines

1. Assess the skill set of all employees and centralize them in a database

2. Based on a detailed job description in the new organizational structure the skill needshave to be defined

3. The skill needs assessment has to be done on a short, medium and long term basisto consider also the retirement of employees and future expansion plans (especiallyin the generation department)

4. The training strategy has to be developed base on this needs and should add alsoskills required by the overall strategy of GECOL

5. The training strategy has to be approved by the BoD

6. The HR department should be responsible for the implementation of the trainingstrategy

7. The BoD has to review the training strategy on an annual basis


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Draft

Training should become an integral part of performance management

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3

The Performance Management CycleWhat is performance management

It is a means of getting better results from theorganisation, teams and individuals byunderstanding and managing performance within anagreed framework of planned goals objectives andstandards

It can be defined as a process or set of processesfor establishing shared understanding about what isto be achieved, and of managing, rewarding anddeveloping people in a way which increases theprobability that will be achieved in the short andlonger term

The overall aim of performance management is toestablish a culture in which managers, individualsand teams take responsibility for the continuousimprovement of business processes and of theirown skills, competencies and contributions and arerecognised rewarded according to the extent towhich agreed objectives are achieved


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Draft

Approve a general training policy

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4

Guidelines for implementing a proper training policy

As mentioned in the Performance Management Cycle Training should be a reward andnot a punishment for employees. Therefore the following topics have to be addressed inthe training policy:

1. An overall target of training hours per year. Top utility companies provide around:• 30 hours continuous annual education per employee and• around 70 hours annual education per executive

2. Transparent process about training approval for local and international training

3. Clear remuneration and overtime policy. To attend a training should not become anmonetary disadvantage for employees

4. Clear policy about hiring external trainers and training institutions and their payment

5. Training policy has to cover management as well

6. Training policy must be approved by BoD

7. The BoD has to review the training policy on an annual basis


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Draft

Secure central funding for all trainings out of GECOL’s budget

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5

Actions needed

At the moment only soft skill trainings are funded centrally through the FinanceDepartment. Most of the technical trainings are funded though different channels (bysuppliers, part of CAPEX etc). :

1. After centralizing all training activities in the HR department also a centralized trainingbudget has to be implement within the HR department.

2. As we were informed by the former HR manager around 25 Mio. LDs were alwaysforeseen for basic trainings in the past but never approved and spent. Therefore infuture GECOL budgets an amount of min 25 – 30 Mio. LD has to be included fortraining.

3. The get the buy in from the board on the training as well the future training budgethas to be approved as part of the budgeting process by the BoD.

4. Clear payment policy for external trainer and training institutions has to beimplemented


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Draft

Institution of a Corporate Academy should be the core for future capacitybuilding within GECOL

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UnderstandGECOL’sorganisationalgoals andObjectives

• Meet withGECOLmanagement tounderstand indetail, theirneeds,aspirations andchallenges.

• Understand howbuildingcapability willproduce apositive return onGECOLinvestment.

Business Focus

Design and developGECOLs’s CapabilityProgram

• Assess currentcompetencies, identifyknowledge and skillsgaps to be addressed.

• Link learning objectivesto content and selectappropriate platforms todeliver learning.

• Develop customised andcontextualised learningmaterials tailored toGECOL’s business.

• Produce the roadmapand schedule for thelearning journey.

Capabilitybuilding

Deliver solution usingthe best facilitatorsand resources

• Roll-out the capabilitybuilding solution,manage trainingdelivery, administrationand logistics.

• Monitor and controlthe effectiveness ofthe training, testlearning andunderstandingthroughout theprogram.

Deliveringlearning

Evaluate outcomeand effectivenessto GECOL’sorganisation andthe individual

• Carry out programevaluation.

• Review businessfeedback andindividualassessments.

• Update and adaptthe program tomaximise theoutcome ofcapability building..

Mindsetchange

6

All GECOL training activities should be centralised in a training academy and opened also for external parties


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Draft

Integrated Measures and activities for reskilling activities (1 of 3)

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Source: PwC analysis

2018 2019 2020

GECOLDevelop a HR strategy and approve it by the BoDConsolidate in HR department (under MD) all the HR-relatedcore functions leaving non-core HR activities withinSupport Services

Link Performance to pay, training, career development andsuccession planning

Training Policy

GECOLGECOLReview of training policy by the BoD

Approval of the training policy by the BoDGECOL

Appraising performance and providing feedbackMonitoring, supporting and coaching performance

GECOL

Develop a general training policy

GECOL

GECOL

GECOL

GECOL

GECOL

Defining and agreeing on objectives

GECOL

Assess the skill set of all employees

OwnerYearActivities

GECOL

Centralizingall HRactivities

Measures

Developing amedium andlong termtrainingstrategy

Implementperformancemanagement

Develop ageneraltrainingpolicy

Milestone

One shotactivity

HR Strategy

Centralize the skill set in a databaseDefine future skill needs

Capabilities& skills map

Develop a training strategyApproval of training strategy by the BoD

GECOLGECOLGECOL

Implementation of training strategyReview of training strategy by the BoD

GECOL

Performance Managements Objectives

Securetrainingfunding

Training Budget

GECOLGECOLReview of training budget by the BoD

Approval of the training budget by the BoDGECOLImplement a centralized training funding

Develop a trainer payment policy Trainer payment policy GECOL


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Draft


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2018 2019 2020

GECOLAll GECOL training activities should be centralised ina training academy

Executive Training

GECOLContinuous Executive and BoD trainingGECOL

GECOL

Develop Executive development plan including BoD training

Implement e-training

OwnerYearActivities

GECOL

GECOLAcademy

Measures

Structuredsuccessionplanning

e-training

ExecutiveTraining

Milestone

One shotactivity

GECOL Academy

GECOL

Trainingincentives

GECOLIntroduction of training incentive schemes(e.g. trainee programs, talent schemes)

Open the Academy for external parties

Negotiate and sign Ad-hoc management contracts for specific/ new plants for training purposes

GECOLPower PlantTraining

Power Plants Training Contracts

ApprenticeTraining

Implement apprentice training dual vocational training(electrical engineering and metalworking technician)

GECOL

Establishment of structured succession planning


PwC


Draft


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2018 2019 2020

GECOLLaunch of target internal hiring procedure

Establishment of international exchange training programsprograms

OwnerYearActivities

GECOL

InternalHiring

Measures

Mentoringprogram

InternationalTraining

Milestone

One shotactivity

GECOL

Focus in personnel training should be on technical and safetyqualifications and IT training.

Focus onspecifictrainingareas

Launch of mentoring programs (e.g. pairing betweenexperienced employees and more junior ones)

GECOL


Introduction




Appendix

PwC


Draft

The selection of the benchmarked countries was based upon five maincriteria

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No relevant casestudy

Benchmarking selection criteria

Single Buyer

Retail Competition

Vertically IntegratedMonopoly

Wholesale Market

UnbundledSingle Buyer

Vertically IntegratedSingle Buyer

Tunisia EgyptIran Morocco

Algeria KSA JordanQatar

Austria

Chile

Brazil

Korea

European Union

Japan

USA

Long list of countries (Selection) Selection criteria Countries selected

Algeria

Reform lesson

In terms of key takeaways and relevance for theLibyan power sector

Country development

In terms of income levels, political stability,institutional development and macroeconomicenvironment

Country challenges

In terms of countries facing significant challengeslike losses, blackouts, bad debts, etc.

In terms of population served and generationcapacity

Sector size

Data availability

In terms of reliable information and availabledocuments

Tunisia

Egypt

Morocco

Libya Chad

Kuwait IraqLebanon Indonesia

Turkey

India

RussiaKazakhstan

Ukraine


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Draft

Each selected utility company was then assessed under 8 parameters, withthe aim of extracting meaningful manpower KPIs

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Manpower KPIs used in the Benchmark Study

Selected countries Key parameters analyzed in the benchmark

KPIs for differentBusiness Units

• Use KPIs for different BU (Generation,Transmission, Distribution & Supply, Support)

• Detailed KPIs for Distribution and Supply

Comparison

• Show the developments of these KPIs withinGECOL over the last years

• Benchmark latest GECOL KPIs with averageand median of peer group

Overall KPIs

• Use KPIs which are based on the number ofcustomers, installed capacity and electricityproduced

• Use similar integrated utilities in different stages

Recommendation• Derive through a top down approach target

manpower figures

No relevant casestudy

Algeria

Tunisia

Egypt

Morocco


Documents

Task C:Supporting Electricity Sector Reformdocuments.worldbank.org/.../03-Task-C-Manpower-and...• Manpower benchmark with regional peers for the overall company and for the key business