*COOs sign performance bonds
Nigerian National Petroleum Corporation (NNPC) has declared that any if its business units that consistently posts low financial performance would be shut down if it defies interventions to return to viability.
Consequently, the corporation has committed the head of its business units to performance bonds as a way to measure their efficiency in delivering on their key business mandate
Group Managing Director, Dr. MaikantiBaru, committed the Chief Operating Officers (COOs) to sign performance agreements to ensure that all the business units deliver on their mandates. He warned that while the group executive management would provide guidance and other necessary interventions, units that prove irredeemable would beshut down.
“Through SEERCO meeting we are able to note the various businesses of the corporation that are doing well, so that we encourage them to be better; those that are not doing very well, to enable us devise means to salvage them; and those beyond salvaging, we take a hard decision to shut them down in the interest of the corporation” the GMD stated.
According to the arrangement, the COOs would now be guided by a set of key performance indicators contained in the agreements to serve as a management tool for performance measurement.
The performance contracts were the highpoint of a two-day Management Steering Committee meeting to assess the health of the corporation and provide solutions to challenges.
While commending the management team and other participants for their maturity, Dr. Baru charged the COOs to replicate the review exercise at their various business units for efficient service delivery.
He noted that at 41, NNPC needed a change in its operational strategies, especially with the imminent passage of the Petroleum Industry Governance Bill (PIGB), to remain relevant.
Group General Manager, Corporate Planning & Strategy Division, Mr. BalaWunti, expressed satisfaction that the meeting was able to achieve its two key objectives of appraising past performance and setting targets for the coming business year.
“Like you heard from the GMD, there are two broad objectives – to appraise our performance for the fiscal year 2018 and to set targets for the 2019. We now have a performance contract against 2019 and also been able to have a scorecard of each of our business units properly appraised and documented”.
Meanwhile, the corporation has clarified that it has neither 70,000 staff in its employ nor embarking on a staff performance probe.
Group General Manager, Group Public Affairs Division, Mr. NduUghamadu, explained that NNPC has never at a point in its history maintained 70,000 staff strength.