Implementation of performance contractinga at the National Social Security Fund

Abstract

Performance management is a key strategic issue at the National Social Security Fund (NSSF) because of the Poor performance experienced since its establishment in 1965.Consequentiy, NSSF adopted the application of Performance Contracts in the management of its affairs in June 2005.The broad objective of performance contracting was to come up with a system which can enhance service delivery in a transparent and accountable manner. Resultant outcomes expected include enhanced service delivery in the areas of concern. This innovative strategy includes specification of mutual performance obligations and responsibilities of the parties, signing annual performance contracts and regular monitoring and evaluation of performance. In implementing this good practice, resources and inputs have been used optimally. Results achieved over the last five years are impressive, while useful lessons have been learnt. The good practice is replicable factoring individual organization situations.

The need for the study arose in recognition that successful implementation of performance contracting at NSSF was necessary in improving service delivery for both survival and growth of the Fund. NSSF is now a provident fund, which needs to be converted to social insurance scheme. The conversation process, and indeed the policy reform programme and the corporate strategic plan call for a single-minded dedication and collective responsibility on the part of the entire NSSF fraternity in building a performance oriented culture. Success should be measured by results not by outcome. Performance contracting is one of the government strategies to improve performance of these public organizations. Its implementation process is a challenge because of the management sty-le_ in public institutions. There is multiplicity of principles and state corporations have too many objectives.

A study on the implementation of performance contracting at NSSF was therefore conducted. The case of NSSF under this broad objective of performance contracting first identified general strategy implementation issues; determined the practices and processes involved in strategy implementation and finally looked at the factors that influence implementation of performance contracting at NSSF