Manila Water Company: Manila Water Story

Manila Water Story » Transformation Process

Taking on the rehabilitation of a largely dilapidated network was a tremendous task. The first five years were far from smooth sailing as the company was besieged with both internal and external challenges. These problems included a currency crisis in 1997, the El Niño phenomenon in 1998, an arduous arbitration process a little after that, and a myriad of political uncertainties on the national front that increased regulatory pressure on the company.

To ensure the survival of Manila Water, the company's management realized that the process of transformation must begin internally - through its people.

Almost 90 percent of Manila Water's workforce is composed of former MWSS employees. They were a key driving force that brought success to the privatization endeavor. With proper training and motivation, the company was able to bring out the best from its employees whose talent and skills had been honed through many years of dedicated service to the MWSS, and now, to Manila Water.

Empowerment was a crucial element in the transformation. While the top management provided general policies and strategic directions, mid-level managers were given a free hand to plan and implement changes in their respective territories. Skilled workers were transformed into knowledge workers. Cross-functional teams called "clusters" were formed in order to assist the management in formulating key policies and decisions as it focused on certain corporate issues.

Although formal boundaries were in place, the company continues to encourage a "seamless" structure where everyone was free to assist in the corporate programs that may be, strictly speaking, outside of his formal scope of duties and responsibilities. The company makes sure that everyone is involved, in one way or another, in attaining its overall corporate objectives.

As part of the company's management decentralization policy, business areas were further subdivided into smaller and more manageable territorial boundaries in order to allow greater focus and faster response time to customer problems.

Fiscal discipline was another key element in the transformation. The first few years were the survival years for Manila Water. Limited loan funding was available at that time, and the company made sure that it maximized the use of its resources. Projects were implemented through careful planning and prioritization while operating costs were efficiently minimized.

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