DEWA has implemented the best principles of Corporate Governance for State Owned Enterprises in line with the recommendations of the OECD 2015. The guidelines of the World Bank and best practices of electricity and water providers worldwide have also been adapted and adopted. There is a comprehensive Governance Framework, Governance Policy and Governance Charter that have been implemented.
DEWA is 100% owned by the Government of Dubai. Its nine member Board is appointed by the Government of Dubai by a legal statute issued by HH The Ruler of Dubai. Eight of the members are independent and non-executive. The Managing Director and CEO is also appointed by statute. The MD & CEO is authorized to manage all the activities and functions of DEWA. The Board members declare any conflicts of interest / related parties. The Executive Regulations of the Board detail the scope and functions of the Board. The Board may also set up permanent or temporary committees whenever there is a need.
The Governance Framework includes the classic components of governance such as Board oversight, a clear organization chart and span of control, a well documented strategy and proper delegation of financial and administrative authorities. There are a full suite of management level committees and comprehensive policies covering all functions. A Code of Conduct and Ethics and an Employee Handbook aid in dissemination of good governance elements within DEWA. In keeping with international guidelines, DEWA adopts the three lines of defense model with management and supervision being the first line; risk, compliance, legal and governance being the second line and internal audit as the third line. The external auditors and the Government audit also enable a broad based control review system.
Governance in DEWA also incorporates technology governance, project governance, procurement governance, sustainability governance and water governance.
DEWA’s Governance is certified compliant under British Standard BSi 13500 on Corporate Governance. DEWA has also won recognition and awards for its good governance.
A sustainable innovative world-class utility.
We are committed to the happiness of our stakeholders and promoting Dubai’s vision through the delivery of sustainable electricity and water services at a world-class level of reliability, efficiency and safety in an environment that nurtures innovation with a competent workforce and effective partnerships; supporting resources sustainability.
For Generations to come.
• Stakeholders Happiness
• Good Governance
Federal and local.
Residential, commercial and industrial.
Top management, middle management. non-supervisory and others.
Strategic and main partners.
SUPPLIERS & SUB-CONTRACTORS
Strategic, core and basic.
PROVIDERS OF CAPITAL & INVESTORS
Institutional investors both local and foreign/banks, financial services and Independent power producers.
SOCIETY AND FUTURE GENERATION
Environmental organisations, general public and media.
The strategy map provides a clear visual indicator of how the themes and the four perspectives of the third generation Balanced Scorecard interrelate to each other and form the overall strategy of the organisation.
The map is a visual interpretation of an organisation’s strategy.
It shows a logical, step-by-step connection between Themes, Perspectives and Strategic Objectives. It shows a cause-and-effect relationship from the bottom row (Support, Learning and Growth Perspective) to the top row (Triple Bottom Line Perspective) via Internal Processes and Stakeholders Perspectives.
Strategic Planning & Execution Framework
Phase one - Strategic Plan Preparation and Approval:
The first phase entails the Preparation and Approval phase of the seven-year Strategic Plan of DEWA, which reviewed annually, then formulated and driven by the leaders and top management in DEWA. This is in line with the first principle of being a Strategy-Focused Organisation, i.e. Leadership involvement, and the second principle, i.e. translating it into DEWA’s strategy.
Phase two - Strategy Communication:
Communication is a continuous process that clearly bridges the gap between work knowledge and the strategic path chosen by top management and plays an integral role in ensuring the cascading and alignment of Divisions towards DEWA’s overall strategic direction. It also includes promoting a stronger culture of strategy throughout the organisation. Divisional heads play an important role in communicating strategy to develop employees’ commitment by empowering them with the information and direction they need to help them achieve their strategic direction. A vitally-important element is ensuring two-way communications – employees should be able to provide feedback to ensure that the communicated strategy is both understood and implemented.
Phase three - Cascading & Alignment:
After the approval and endorsement of the Strategic Plan and its communication, this phase largely involves preparing and aligning Divisions with the strategic direction of DEWA by establishing clear linkages to DEWA’s Strategy Map. This phase involves cascading DEWA’s strategy map and Balanced Scorecard, which contains the themes, strategic objectives, corporate KPIs and targets for the Divisional Strategy Maps and Balanced Scorecards, using the contributory approach. This phase also includes motivating, communicating and aligning all employees with DEWA’s overall strategic direction; ensuring that strategy is embedded in their everyday jobs by linking strategy and incentives to their smart objectives and performance appraisals. This alignment creates a synergy at the corporate level and ensures that DEWA is heading in the right direction.
Phase four - Implementation & Execution:
This phase ensures the effective implementation and execution of the corporate strategy map through the cascaded Divisional Strategy Maps and Balanced Scorecards. Defined Divisional Balanced Scorecards will have their objectives, KPIs and targets, along with their employees’ smart objectives and appraisals, aligned to the Corporate Balanced Scorecard. Divisions will be responsible for their respective Divisional Balanced Scorecards and reporting their performance. Performance Management oversees the processes.
Phase five - Assessment & Review :
This phase involves the assessment and review of the Strategic Plan. Corporate Performance is assessed based on the performance of the Themes, Strategic Objectives and achievements of the KPI targets in DEWA’s Balanced Scorecard and monitoring initiatives.
As weights have been defined in Phase One – Preparation and Approval – for each theme, strategic objectives and corporate KPIs, this phase takes into account the performance of all Divisions. This also includes the reporting on the performance of DEWA’s Strategy Map and Balanced Scorecards to top management through the Strategic Executive Summary Reports.
Phase six - Innovate, Improve & Adapt:
In line with DEWA’s aim to continuously innovate and improve, as per the concept of Excellence, Corporate Strategy reviews DEWA’s Strategic Plan annually. This requires reviewing and updating the plan as and where deemed necessary and finding and adapting existing processes to best practices for Strategic Planning.
Strategy Management System
The strategy management process for Dubai Electricity and Water Authority in terms of formulation, execution, explanation, communication, assessment and update of its strategic plan is implemented on an annual basis using the third generation of the Balanced Scorecard that includes themes on the strategy map along with the concept of having Theme Champions.
It’s broken down into strategic objectives, corporate KPIs and initiatives which split across the four perspectives.
The four perspectives are:
Triple-Bottom-Line Perspective: This is a modified perspective in the Balanced Scorecard and strategy map, which incorporates sustainability into business decisions through accounting for the three dimensions: financial, social and environmental and thus, allowing to manage performance in a broader business context.
Stakeholder Perspective: Is a modified perspectives in the Balanced Scorecard and strategy map, which expands the focus of DEWA’s value creation to all stakeholder categories.
Internal Processes Perspective: Is one of the four perspectives in the Balanced Scorecard and strategy map, which focuses on the strategic priorities for various business processes leading to the satisfaction of both customers and shareholders.
To learning and growth: Is one of the four perspectives in the Balanced Scorecard and strategy map, which focuses on the priorities to create an environment that supports organisational change, innovation, and growth to achieve excellence in our operations, and to create the necessary potential and improvements that should be available in DEWA.
The Balanced Scorecard shows a cause-and-effect relationship between the four perspectives. The Key Performance Indicators (KPIs) are based on the need to provide leading and lagging indicators of an organisation’s performance.
DEWA uses the third generation Balanced Scorecard to manage and measure the performance of its strategic direction, broken down into the themes, strategic objectives and corporate KPIs.
Key Performance Indicators
Key Performance Indicators (KPIs) are significant measurements used to track and manage performance against strategic objectives. A KPI measures progress in the performance of an objective critical to the organisation’s strategic direction.
Corporate-level KPIs are determined under each Strategic Objective on DEWA’s Strategy Map to assess the overall progress in executing the corporate strategy. Selected KPIs should be understood, acceptable, have a well-defined formula and, above all, measurable.
Our country is blessed and so are we, living in this good land