Capacity development to enhance selffinancing capability of ITI

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Capacity development to enhance self-financing
capability of ITI

• A.M. Mubarak
• Director, ITI

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Country Profile

• Population 19.4 million
• Area 65,610 sq. km
• Per Capita GDP 856 (lower middle class)annual
  average growth rate of 5 1990-2000
• Sectoral Share of GDP 1990 2000
• Agriculture 23.3 19.7
• Services 49.5 54.6
• Manufacturing 17.5 16.6
• Others 9.7 9.1

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Industrial growth sectors
In Rs. million 000
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ST Infrastructure
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ITI - Background

• 1955 CISIR DFCC were established to promote
  industrial development
• Seed money of Rs. 5 million for 5 years
• In 2002
• Government Grant 87 Mn
• Capital- Rs. 27 Mn Operational- Rs. 60 Mn
• Generated income 52.6 Mn

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ITI - Organisational structure

• 1955 4 Research Sections
• Chemical Technology, Process Engineering, Rubber
  Technology Industrial Analysis Planning
• 1962-72 More Sections created
• Agro-Industries, Food, Fats Oils, Minerals,
  Industrial Economics, Industrial Metallurgy, Wood
  Cellulose
• 1981-84 Scope further expanded
• Environment Pollution, Instrument Centre

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ITI - Organisational structure

• 1993 Major restructuring (SISIR)
• To be market oriented demand driven
• 13 sections merged to 4 Div 2 Units and 8
  Groups
• But gradually increased to 5 Div 14 Groups!
• 1998
• New ST Development Act
• Change of name to ITI

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Vision Mission

• VisionTo be the model institution for
  scientific industrial research and a pioneer for
  self-financing RD to elevate the level of
  technology in Sri Lanka
• MissionTo provide demand driven scientific
  industrial RD and internationally competitive
  technical services to catalyse rapid
  industrialisation for the benefit of the people
  of Sri Lanka

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Technology Focus

• For Economic Growth
• Partner Sri Lankan Industry enabling it to be
  globally competitive
• Assist the nation in deriving enhanced and
  sustainable value from endogenous resources
• For Human Welfare
• Provide ST based solutions to improve the
  quality of life especially of the rural society

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Staff structure - trend
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In 2002 Government Directive.

• To Restructure Public Institutions
• To use public resources productively
• To improve performance
• ITI commenced restructuring with UNIDO assistance
  in 2001
• Several weaknesses identified
• Strategic Road Map for implementation

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Organisational structure

• Rigid departmental structure
• Discourages cross functional activities
• No flexibility in the deployment of staff based
  on demand
• Duplication/under utilization of resources

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Planning

• Inadequacy in financial planning
• No budgets/targets/goals no reviews
• Inadequate manpower planning/cadre
• Overstaffing, top heavy structure high
  proportion of administrative staff
• Inadequate involvement of Managers in
  planning/budgeting

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Management

• Insufficient authority/autonomy
• Lack of management concepts/policies
• No performance reviews
• No financial authority over income earned
• Insufficient collective responsibility/team work

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Other issues

• No motivation
• Poor salaries
• Rewards not related to performance
• No HRD plan
• Marketing weak
• No proper costing/pricing policy

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Strategic Road Map Organisational structure

• Reduce number of Research Divisions
• Food, Environment, Materials, Herbal
• Ad-hoc flexibile Project Groups with cross
  functional activities
• Pool testing services to increase synergy through
  shared resources manpower
• Reduce administrativetechnical ratio to 37
• Outsource non-core activities

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Strategic Road Map Management structure

• Institute/Divisions to formulate business plans
• Decentralised budgets with clear targets/goals
  for Divisions/Groups
• Training in Project planning/monitoring/reviewing
• Systems and procedures to enhance efficiency of
  internal processes
• MIS through computerization of administration
  accounts
• Balanced Scorecard for performance management

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Strategic Road Map Enabling infrastructure

• Modernise equipment facilities
• Chemical Environment -ADB US 2 million
• Microbiology/Metrology/Rubber Plastic UNIDO US
  1 million
• Agro-Food -2KR Japanese Grant Rs. 560 million
• Computerise laboratory services
• Improve enlarge communication channels with
  customers stakeholders
• Enquiry service, web page (http//www.iti.lk)
  etc.,

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Strategic Road Map Improving income

• Seek realise grants from Govt for public good
  research
• Kithul Project for Ministry of Rural economy-2.8
  million
• Seek realise funds from Int. agencies, Industry
  associations etc., for generic RD
• Process food for pregnant mothers JICA Rs. 13.6
  Mn
• Coir Processing Common Funds for
  Commodities/Coir Fibre Exporters
  Associations/CDA US 670,000
• Centre of Excellence for Ceramic Industry
  EU/Ceramic Industries US 1 million

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Strategic Road Map Improving income

• Accreditation to enhance competitiveness
• Chemical/microbiological testing- SWEDAC
  accredited
• Calibration, Rubber testing awaiting assessment
• Authorised analyst
• Registrar of Pesticides, Ministry of Fisheries,
  Tea Board, Fertiliser Secretariat, SASO, CEA
• Offer testing for compliance against
  international standards/regulations EU, EPA, WHO
  etc.,

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Strategic Road Map Rewards Recognition

• Introduce Performance based incentives
• Other methods of recognition
• Best technology commercialised
• Most valuable industrial contract
• Special individual achievement
• Best research paper published
• Most valuable patent filed

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Financial Performance
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Self sustainability
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• Thank you