BINDURA UNIVERSITY OF SCIENCE EDUCATION FACULTY OF COMMERCE GRADUATE SCHOOL OF BUSINESS EXECUTIVE MASTERS IN BUSINESS LEADERSHIP THE CLIENTS’ ASSESSMENT ON EFFECTIVENESS OF REVENUE COLLECTION STRATEGIES IN IMPROVING REVENUE PERFORMANCE: A CASE STUDY OF ZIMBAWE ELECTRICITY TRANSIMISION AND DISTRIBUTION COMPANY (ZETDC) NORTHERN REGION BY WURAYAYI STANFORD (B212503B) SUPERVISOR: Dr. GILBERT KICHINI A DISSERTATION SUBMITTED TO THE BINDURA UNIVERSITY OF SCIENCE EDUCATION IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR AN EXECUTIVE MASTER OF BUSINESS LEADERSHIP (EMB) DEGREE QUALIFICATION BINDURA, ZIMBABWE DECEMBER 2022 i APPROVAL FORM The undersigned certify that they have read and recommended to Bindura University of Science Education (BUSE) for acceptance a Dissertation entitled “THE CLIENTS’ ASSESSMENT ON EFFECTIVENESS OF REVENUE COLLECTION STRATEGIES IN IMPROVING REVENUE PERFORMANCE. A CASE STUDY OF ZIMBAWE ELECTRICITY TRANSIMISION AND DISTRIBUTION COMPANY (ZETDC) NORTHERN REGION” by Wurayayi Stanford in partial fulfillment of the requirements for the degree of Executive Master of Business Leadership (EMB). 15.12.2022 Wurayayi Stanford…………...……… Signature: ………………… Date: ……………….. Student Dr Gilbert Kichini …………………………………...……… Signature: GKichini Date: 20.12.2022 Supervisor …………………………………...……… Signature: ………………… Date: ……………….. GSB Director …………………………………...……… Signature: ………………… Date: ……………….. Faculty Chairperson …………………………………...……… Signature: ………………… Date: ……………….. External Examiner ii RELEASE FORM NAME OF AUTHOR: WURAYAYI STANFORD TITLE OF DISSERATION: THE CLIENTS’ ASSESSMENT ON EFFECTIVENESS OF REVENUE COLLECTION STRATEGIES IN IMPROVING REVENUE PERFORMANCE. A CASE STUDY OF ZIMBAWE ELECTRICITY TRANSIMISION AND DISTRIBUTION COMPANY (ZETDC) NORTHERN REGION DEGREE: EXECUTIVE MASTER OF BUSINESS LEADERSHIP YEAR DEGREE AWARDED: 2022 Permission is hereby granted to the Bindura University of Science Education Library to produce copies of this dissertation for private, scholarly, or scientific research purposes. The author reserves other publication rights for the dissertation or extensive extracts from it to be printed or otherwise reproduced without the author’s written permission. 15.12.2022 Signature: ………………………………………. Date: …………………………… Permanent Address: 380 CHIPINDURA PARK BINDURA ZIMBABWE ……………………………….. E-mail: stanford.wurayayi@gmail.com Cell Number: +263772572400 iii DECLARATION I, Wurayayi Stanford, do hereby declare that this dissertation is a result of my own investigation and research, except to the extent indicated in the acknowledgments, bibliography, references, and comments included in the body of the report, and that it has not been submitted in part or in full for any other degree to any other university. 15.12.2022 …………………………………………… …………………………………….. STUDENT SIGNATURE DATE iv DEDICATION My gratitude and appreciation to the Lord Jehovah the Almighty God for blessing and guiding me through my academic journey. I dedicate this research to my parents Mrs Julia Manyawu- Wurayayi, my dear wife Tendai, and my three boys Benjamin, Blessed and Bethel for their undying support and love during my research and studies. I cherished and shall continue to cherish their continued support and counsel. v ACKNOWLEDGEMENT My gratitude to Dr. Gilbert Kichini, my supervisor whose wisdom, expertise, understanding, guidance and patience added value to my research and experience. I appreciate his vast knowledge and skill in key areas which were pertinent in my research, his belief and motivation kept me going. It was through his persistence, understanding and kindness that I completed this research. vi ABSTRACT Modernizing and developing effective strategies in revenue collection has been a pivotal matter in revenue collection and reduction of debtors balances in the electricity sector or industry globally. The adoption of new and better strategies helps an organization to work more efficiently as well as collecting revenue which is needed to run the utilities on a day to day basis as well as financing capital projects. The importance of liquidity culminated in the current research on the effectiveness of revenue collection strategies as ZETDC Northern Region. ZETDC Northern Region embarked on a serious drive to collect revenue through adopting strategies on its main operations across the region. Innovative and modern revenue collection strategies implemented were supposed to improve organizational structure, training, manpower planning, developing team work among management and staff. The purpose of the study was to assess the clients’ assessment on effectiveness of revenue collection strategies in improving revenue performance at ZETDC Northern Region. The objectives of the research was to find out the collection strategies in place, assess effectiveness of the strategies and propose possible new collection strategies. A descriptive research method was used focusing on qualitative characteristics and status of the vast revenue collection strategies employed by ZETDC Northern Region in improving the revenue performance. ZETDC Northern Region has 800 employees and 145000 clients. The focus was on 20 credit control staff, 18 Customer service officers as well as 13 management staff. A purposive and expert sampling method was employed in this study to select a sample of 24 employees. Data was also collected from registered clients with the view of getting independent comments on better ways of collecting revenue. A sample of 32 clients was chosen with fair representation from each tariff category. In this study, data was collected using structures and open ended questionnaires administered through face to face interactions and emails for those geographically far away. Data was analyzed using a thematic and content analysis to discover emerging major views regarding the effectiveness of revenue collection strategies of ZETDC. Firstly, data was collected, cleaned, sorted and collated. Data matching and coding was done to maintain the temporary employees’ confidentiality. Then, it was entered in a computer, after which analysis was done. Descriptive statistics in the form of pie charts, contingency tables and bar graphs were used to describe the data. Then measures of association were used to examine the relationship between the independent and dependent variables. The major findings were that effective power disconnection improves revenue collection paired with full adoption of performance based contracts. It was further deduced vii that staff plays a key role along revenue collection value chain hence the need to train staff to equip and capacitate them with requisite skills. Monitoring and evaluation was identified as a weak link in the revenue collection value chain and improvement as well as establishment of the same will significantly add to revenue collection. Business process were recommended for automation, staff capacitated with skills like communication, negotiation and customer care with the view of motivating clients to pay before adoption of other harsh credit control measures. In conclusion, it was shown that there is a positive correlation between independent variables which are revenue collection strategies and dependent variable which is revenue collected owing to the role which the strategies play in enhancing revenue collection and reduction in debtors. Key words and phrases: Strategy effectiveness, Revenue collection, emerging strategies, ZETDC Northern Region, disconnections, monitoring and evaluation, strategic management viii Contents APPROVAL FORM ............................................................................................................................................................ i RELEASE FORM .............................................................................................................................................................. ii DECLARATION ............................................................................................................................................................... iii DEDICATION .................................................................................................................................................................. iv ACKNOWLEDGEMENT ................................................................................................................................................... v ABSTRACT ..................................................................................................................................................................... vi LIST OF TABLES ............................................................................................................................................................. xi LIST OF FIGURES .......................................................................................................................................................... xii LIST OF ABREVIATIONS ............................................................................................................................................... xiii GMB Grain Marketing Board ................................................................................ xiii CHAPTER ONE: INTRODUCTION .................................................................................................................................... 1 1.0 Introduction ..................................................................................................... 1 1.1 Background ...................................................................................................... 2 1.1.1 ZETDC Revenue Collection Strategies .............................................................. 6 1.2 Statement of the Research Problem ................................................................ 9 1.3 Research Aim/Purpose of the study .............................................................. 11 1.4 Research Objectives ............................................................................................................................................... 11 1.5 Research questions ................................................................................................................................................ 11 1.6 Underlying Assumptions ........................................................................................................................................ 11 1.7 Justification of the study........................................................................................................................................ 12 1.8 Significance of study .............................................................................................................................................. 12 1.9 Contribution of the study ...................................................................................................................................... 13 1.10 Delimitation/Focus of study ................................................................................................................................ 14 1.11 Limitations of the study ....................................................................................................................................... 14 1.12 Outline of the study ............................................................................................................................................. 15 1.12.1 Chapter 1 .......................................................................................................................................................... 15 1.12.2 Chapter 2 .......................................................................................................................................................... 15 1.12.3 Chapter 3 .......................................................................................................................................................... 15 1.12.4 Chapter 4 .......................................................................................................................................................... 15 1.12.5 Chapter 5 .......................................................................................................................................................... 16 1.13 Chapter Summary ................................................................................................................................................ 16 CHAPTER 2: LITERATURE REVIEW ................................................................................................................................ 17 2.0 Introduction ................................................................................................... 17 ix 2.1 Conceptual Framework .................................................................................. 17 2.2 Theoretical framework .......................................................................................................................................... 19 2.2.1 Mckinsey 7s framework ...................................................................................................................................... 19 2.2.2 SWOT analysis ..................................................................................................................................................... 21 2.3 Empirical literature review .................................................................................................................................... 22 2.3.1 Current ZETDC revenue collection strategies ..................................................................................................... 22 2.3.2 Emerging revenue collection strategies ............................................................................................................. 25 2.4 Research Gap ......................................................................................................................................................... 29 2.5 Chapter summary .................................................................................................................................................. 30 CHAPTER THREE: RESEARCH METHODOLOGY ............................................................................................................. 31 3.1 Introduction ................................................................................................... 31 3.2 Research Design ............................................................................................. 31 3.3 Target population ........................................................................................... 31 3.4 Sample design ................................................................................................ 32 3.5 Data collection ............................................................................................... 33 3.6 Data Analysis .................................................................................................. 34 3.7 Chapter summary .................................................................................................................................................. 34 CHAPTER FOUR: DATA ANALYSIS RESULTS AND DISCUSSIONS ................................................................................... 35 4.1 Introduction ................................................................................................... 35 4.2 Demographic information .............................................................................. 36 4.2.1 Gender ................................................................................................................................................................ 37 4.2.2 Age of respondents ............................................................................................................................................. 38 4.2.3 Educational Qualification .................................................................................................................................... 40 4.2.4 Job Description, section and roles ...................................................................................................................... 41 4.2.5 Employment period at ZETDC Northern Region ................................................................................................. 42 4.2.6 Registered electricity clients ............................................................................................................................... 43 4.2.7 Nature of employment ....................................................................................................................................... 43 4.2.8 Tariff categories for ZETDC Northern Region clients .......................................................................................... 43 4.2.9 Client billing system ............................................................................................................................................ 45 4.2.10 Bill dispatch mechanism ................................................................................................................................... 45 4.3 Revenue collection strategies ........................................................................ 46 4.3.1 Information on issuing of final demand as a revenue collection strategy ..... 46 4.3.2 Information on power disconnection as a traditional revenue collection strategy by employees 47 4.3.3 Information on power disconnection as a traditional revenue collection strategy by clients 48 x 4.3.4 Information on installation of prepaid meters as a strategy responded by employees and clients .................. 48 4.3.5 Information of legal handover as a revenue collection strategy response from staff ....................................... 50 4.4 Emerging revenue collection strategies ......................................................... 51 4.4.1 Aspects of staff training by employees .......................................................... 51 4.4.2 Aspects of business process automation including bulky sms ........................................................................... 52 4.4.2 Aspects of performance based contract and incentive schemes at ZETDC Northern Region 54 4.4.3 Aspects of client education and awareness ................................................... 55 4.4.4 Aspects of monitoring and evaluation including internal controls ................ 55 4.4.5 Open ended questions for electricity clients and employees ........................ 57 4.4.6 Aspects on suggested revenue collection strategies by clients ..................... 58 4.4.7 Aspects on skills set for ZETDC Northern Region staff ................................... 58 4.5 Chapter summary ........................................................................................... 59 CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ..................................................................... 60 5.1 Introduction ........................................................................................................................................................... 60 5.2 Summary of the study ........................................................................................................................................... 60 5.3 Summary of findings .............................................................................................................................................. 61 5.4 Conclusions ............................................................................................................................................................ 64 5.5 Recommendations ................................................................................................................................................. 65 5.5.1 Human capital ..................................................................................................................................................... 65 5.5.2 Business process automation ............................................................................................................................. 67 5.5.3 Monitoring and evaluation ................................................................................................................................. 68 5.6 Suggestions for further studies .............................................................................................................................. 69 5.7 Chapter Summary .................................................................................................................................................. 69 REFERENCES ................................................................................................................................................................. 70 Appendix A: Letter of Introduction .............................................................................................................................. 72 Appendix B : Permission to undertake the study from the University ........................................................................ 73 Appendix C: Questionnaire for staff respondents ....................................................................................................... 74 Appendix D: Questionnaire for ZETDC Clients ............................................................................................................. 78 Appendix E : RESEARCH SUPERVISION CONSULTATION REPORT FORM ..................................................................... 81 xi LIST OF TABLES TABLE 1.1 ZESA POWER GENERATION CAPACITY AND OTHER TARIFF CATEGORIES ......... 4 TABLE1.2: ZETDC DEBTORS AND REVENUE COLLECTION TREND .................................... 7 TABLE 3.1 TARGET POPULATION BY GRADE ................................................................... 32 TABLE 3.2 STUDY POPULATION AND SAMPLE SIZE ........................................................... 33 TABLE 4.1 : SAMPLE SIZE AND RESPONSES FROM EMPLOYEES AND CLIENTS ................... 35 TABLE 4.2: GENDER OF EMPLOYEES RESPONDENTS ....................................................... 37 TABLE 4.3: GENDER OF ELECTRICITY CLIENTS WHO RESPONDED ................................... 38 TABLE 4.4: AGE OF STAFF RESPONDENTS ....................................................................... 39 TABLE 4.5: AGE OF CLIENT RESPONDENTS ..................................................................... 39 TABLE 4.6: EDUCATIONAL QUALIFICATIONS OF STAFF RESPONDENTS ............................ 40 TABLE 4.7: ELECTRICITY CLIENTS’ LEVEL OF EDUCATION ............................................. 41 TABLE 4.8: JOB DESCRIPTION, SECTION AND ROLES OF STAFF RESPONDENTS ................. 41 TABLE 4.9: EMPLOYMENT PERIOD AT ZETDC NORTHERN REGION ............................... 42 TABLE 4.10 REGISTERED ZETDC NORTHERN REGION CLIENTS .................................... 43 TABLE 4.11: NATURE OF EMPLOYMENT .......................................................................... 43 TABLE 4.12: CLIENT TARIFF CATEGORIES ...................................................................... 44 TABLE 4.13 BILLING SYSTEM FOR CLIENTS’ RESPONDENTS ............................................ 45 TABLE 4.14: BILLS DISPATCH MECHANISM ..................................................................... 45 TABLE 4.15: INFORMATION ON REVENUE COLLECTION STRATEGIES BY EMPLOYEES ...... 46 TABLE 4.16: INFORMATION ON POWER DISCONNECTION RESPONSES BY STAFF ............... 47 TABLE 4.17: CLIENTS RESPONSES ON DISCONNECTION AS A STRATEGY .......................... 48 TABLE 4.18: STAFF RESPONSES ON INSTALLATION OF PREPAID METERS ......................... 49 TABLE 4.19 RESPONSES FROM ZETDC NORTHERN REGION CLIENTS ON INSTALLATION OF PREPAID METERS ............................................................................................................ 50 TABLE 4.20: RESPONSES FROM STAFF ON COLLECTION THROUGH LEGAL ...................... 51 TABLE 4.21 ASPECTS OF STAFF TRAINING BY EMPLOYEES .............................................. 52 TABLE 4.22: ASPECTS OF BUSINESS AUTOMATION STAFF RESPONSES .............................. 53 TABLE 4.23: PERFORMANCE BASED CONTRACTS FOR ZETDC STAFF.............................. 54 TABLE 4.24: ASPECTS OF CLIENT EDUCATION AND AWARENESS ...................................... 55 TABLE 4.25: ASPECTS OF MONITORING AND EVALUATION IN ZETDC NORTHERN REGION ...................................................................................................................................... 56 TABLE 4.26: EFFECTIVENESS OF CURRENT REVENUE COLLECTION STRATEGIES RESPONSE BY CLIENTS AND STAFF ................................................................................................... 57 TABLE 4.27: ASPECTS OF SUGGESTED REVENUE COLLECTION STRATEGIES ..................... 58 TABLE 4.28 ASPECTS OF PROPOSED STAFF SKILLS SET ................................................... 58 TABLE 5.1 : SUMMARY OF RECOMMENDATIONS FROM THE RESEARCH FINDINGS ............ 65 xii LIST OF FIGURES FIGURE 1.1: ZESA HOLDINGS, SUBSIDIARIES AND ZETDC ORGANOGRAM (SOURCE ZETDC STRATEGIC PLAN 2021) ...................................................................................... 5 FIGURE 1.2: ZETDC NORTHERN REGION ORGANOGRAM (ZETDC STRATEGIC PLAN 2021) ............................................................................................................................... 5 FIGURE 2.1: ZETD C CONCEPTUAL FRAMEWORK .......................................................... 18 SOURCE-OWN DIAGRAM FOR THE STUDY ........................................................................ 18 FIGURE 2.2: MCKINSEY 7S MODEL ................................................................................ 20 FIGURE 4.1: SAMPLE SIZE AND RESPONSES FROM EMPLOYEES AND CLIENTS .................. 36 FIGURE 4.2: GENDER OF EMPLOYEES RESPONDENTS ...................................................... 37 FIGURE 4.3: GENDER OF ELECTRICITY CLIENTS WHO RESPONDED .................................. 38 xiii LIST OF ABREVIATIONS GMB Grain Marketing Board ZETDC Zimbabwe Electricity Transmission and Distribution Company TIMB Tobacco Industry and Marketing Board ZENT ZESA enterprises ZESA Zimbabwe Electricity Supply Authority ZPC Zimbabwe Power Company SAPP Southern Africa Power Pool FCB Financial Clearing Bureau VUCA Volatile Uncertain Complex Ambiguous NDS National development strategy SWOT Strength weaknesses opportunities threats KEDS Kosovo Energy Distribution Services TANESCO Tanzania Electricity Supply company GIS Geographical information systems 1 CHAPTER ONE: INTRODUCTION 1.0 Introduction The under-collection of taxes is a serious issue that public utility company executives in Africa and elsewhere must deal with. For instance, under-collection of water sales money is an issue in both the United Kingdom and Africa (Clerk, McDonald, & Boden, 2012). Boyle (2014) noted that water sales are the main source of income for African water utilities in a study of water company financial practices. Although these revenues fund high-quality water supply services, consumers' persistent unpaid water bills result in funding gaps. The same result of electricity power providers' inability to collect the money they are owed has led to significant problems like poor maintenance, slow growth and expansion, and ultimately load shedding. Power utilities' debtors' books have been expanding worldwide, in Africa, and in Zimbabwe, but cash flow performance has been deteriorating. This has exposed power utilities to technical insolvency and failure to carry out their mandate, which is sometimes highlighted by the rising number of customer complaints. In order to turn the situation around and turn all revenues and debtors into cash, which will eventually finance the operations of the key sector in the economy because reliable supply of adequate and safe electricity stimulates economic growth, managers and responsible staff in power utilities must invest in strategic management skills and effectiveness. Strategic management includes strategy formulation, strategy execution, and strategic control. The examination of an organization's value chain, goals, and important result areas, including revenue collection, will be crucial. The targeted goals are then created, along with strategies and techniques. The execution or application of the strategies is then followed by control, evaluation, variance analysis, and the development of remedial actions. It is necessary to conduct research on the effectiveness of revenue collection strategies in order to improve revenue performance in Zimbabwe's electricity sector, where rampant energy theft on installed prepaid meters has made it difficult to provide a service to the country. Strategic effectiveness is defined as the capacity to get the desired results out of a strategy, which is typically a challenge with many power utilities. 2 A public power utility firm in Zimbabwe, a nation in the southeast of Africa, served as the subject of this study's focus case. The study's main objective was to determine how well revenue collecting strategies may increase revenue performance in the Northern Region of Zimbabwe Electricity Transmission and Distribution Company (ZETDC Northern Region). In the investigation, I looked into reputable business tactics employed by top management of the power utility to resolve inefficiencies in recouping electricity revenue billed and evaluated any potential fresh strategies that would aid in boosting collections. The study's findings may force all Zimbabwe's public utility company executives to adopt strategies that boost revenue in order to achieve financial sustainability, reduce load shedding, and get ready for future increases in industrial demand and the realization of vision 2030. Since the Covid 19 era, revenue collection has been a problem for many public utilities worldwide. There was a need to monitor or evaluate the effectiveness of revenue collection strategies in relation to revenue performance because many utilities were experiencing problems with working capital and rising debtor accounts. Changes in the business sector, technological advancements, and changes in human capital abilities have surpassed traditional ways of revenue collection. 1.1 Background The word "strategy" first appeared in the sixth century BC in the city of Athens, where it was created to describe a new military and political leadership role. It was created by combining the words agein, which means to lead, and stratos, which indicated an army spread out over the ground. The Chinese military philosopher Sun Tzu stressed the significance of strategy in relation to this practical aspect of leading and managing a big, complicated army by defining it as "The great job of the organization. It is the tao/strategy of survival or extinction in life-or-death situations”. As demonstrated by Tesla, which used electric vehicles as a strategy to increase survivability, strategic effectiveness has been seen as the key to success on a global scale. In fact, the plan worked, and favorable outcomes were attained through improved sales and survival in a competitive corporate environment. This illustrates the necessity of guaranteeing a strategy's efficiency from top leadership all the way down to the ground level and maintaining open lines of communication if a company or utility wants to succeed. The idea of strategic effectiveness is closely related to the subject of the research, which is the efficiency of revenue collection techniques in raising revenue collection performance. 3 Locally, Econet Wireless learned from fixed telephone providers like Telone who were having trouble meeting customer demand due to cash flow issues. Econet enhanced its cash flows by adopting a strategy of prepaid services with minimal post-paid facilities. Econet became one of the emerging high tech firms with stable shareholding as a result of this improvement in collecting, which allowed it to expand into regional and international markets. Because Econet used an effective strategy, it was necessary to conduct research on how well a plan performs in terms of revenue. There are increasing worries about most electric utilities' inability to provide a dependable, economical, and widely accessible service at acceptable levels of financial and technical performance in the majority of Sub-Saharan African nations. Poor performance, a small customer base, poor revenue collection, insufficient power pricing levels, and strict state control have been the main causes of this. The majority of Sub-Saharan countries have started the restructuring and privatization of the power sector in an effort to reverse this negative trend, all of which point to the success of the plan. Rebundling was formerly thought to be the greatest technique, but because it did not produce the desired outcomes, the strategy was changed to unbundling, which is now being taken into consideration by many. A strategy is sometimes described as a company's target market for its products. Choosing what to create and for which market is meant by this. An organization can function without changing its product-market emphasis if the environment is steady (Ansoff, 1990). According to Ansoff (1990), strategy, structure, and environment all work together to improve organizational performance, which eventually affects revenue performance and cash generation capacity. Organizations are reliant on the environment (Ansoff and McDonnell, 1990). They draw their inputs from the environment that is currently in place, and following transformation, they release their outputs into that same environment, which includes clients and other stakeholders (Porter, 1985). The conditions and forces that influence the organization's strategic alternatives and determine its competitive status make up the organization's external environment (Pearce and Robinson, 2003). Therefore, a company must pay special attention to its external environment in order to succeed in attaining its goals, among them the collection of money. According to Porter (1985), firms are forced to think about tactics that will make them more inventive, productive, and efficient as competitive pressures increase. Organizations must make the most of all available resources to increase the efficiency of revenue collection in order to finance business operations. 4 The study focused on Zimbabwe Electricity Transmission and Distribution Company (ZETDC) Northern Region which is one Region under ZETDC, a strategic business unit of ZESA holdings. The Electricity Act, which created the Zimbabwe Electricity Supply Authority (ZESA), as a parastatal that is entirely controlled by the Government of Zimbabwe (chapter 13:05). Zimbabwe's power is produced by ZPC with an installed capacity of 1961 MW, transmitted, and distributed by the ZETDC. Privately owned sugar estates produce an additional 68 MW on a seasonal basis for their own use (Triangle: 45 MW; Hippo Valley Estates 23 MW). 750 kW of mini-hydropower is produced by Rusitu Power Corporation, a tiny private firm. Up to 30% of demand is met by imports, which are provided by the interconnectors in the Southern Africa Power Pool (SAPP). About 4% and 6% of the energy supplied is lost during transmission and distribution, respectively. 1824 MW is the system peak. Table 1.1 following provides a breakdown of the installed capacity and prospective sales: TABLE 1.1 ZESA POWER GENERATION CAPACITY AND OTHER TARIFF CATEGORIES Source : World Bank (Washington DC. 1994) Rebundling of ZESA giving birth to 4 subsidiaries which are Powertel, Zimbabwe Power Company (ZPC), ZESA Enterprises (ZENT), and Zimbabwe Electricity Transmission and Distribution Company were created (ZETDC). Along the value chain of supplying the country with power, the strategic business units of ZESA each make a contribution. The building of thermal generators in Hwange, Munyati, Bulawayo, Harare, among other locations, as well as hydro generation at Kariba and other possible sites, is part of ZPC's responsibility to generate power. 5 Through a well-balanced mix of energy products, ZPC should provide a trustworthy product. Powertel, ZESA's technology division, primarily manages connection, systems support, and information technology for the group of firms. ZENT is a manufacturing, transport, projects, and retail division that offers vital services including vehicle maintenance, transformer manufacturing and repair, as well as significant building projects like the development of transmission networks. Power transmission, distribution, and retailing to end consumers are the areas of expertise for ZETDC, an electrical transmission and distribution firm. ZETDC accepts the product from ZPC for transmission as high voltage before stepping it down to medium voltage and distributing it to customers such as domestic, industrial, commercial, mining, farming, government, parastatals, and local authorities. According to the organogram below, ZETDC is divided into five regions: Harare Region, Eastern Region, Southern Region, Western Region, and Northern Region (See figure 1 below) FIGURE 1.1: ZESA HOLDINGS, SUBSIDIARIES AND ZETDC ORGANOGRAM (SOURCE ZETDC STRATEGIC PLAN 2021) As listed below, the Northern Region is divided into four districts: Marondera district (covering Mashonaland East province), Chinhoyi District (Covering the North western part of Mashonaland west Province), Kadoma district (covering the other part of Mashonaland West province), and Bindura district (covering Mashonaland Central province). Figure 2 below shows the organogram. FIGURE 1.2: ZETDC NORTHERN REGION ORGANOGRAM (ZETDC STRATEGIC PLAN 2021) ZESA ZPC ZENT POWERTEL ZETDC SOUTHERN REGION EASTERN REGION WESTERN REGION HARARE REGION NORTHERN REGION ZETDC NORTHERN REGION BINDURA DISTRICT CHINHOYI DISTRICT KADOMA DISTRICT MARONDERA DISTRICT 6 1.1.1 ZETDC Revenue Collection Strategies ZETDC Northern Region has the sole responsibility of retailing power to various customer categories which include Domestic points, industrial points, commercial points, mining points, farming points, government points, parastatals and local authorities. Electricity is provided to clients mainly in 2 forms, that is, in prepaid meter form and post-paid meter form. Prepaid meter form will entail buying tokens before consuming the product. Post-paid entails drawing power first, meter reading taken at the end of the month and billed at approved rates so as to produce a bill which shows an amount which should then be paid by a client. The billed amounts will form part of electricity debtors should they remain uncollected at the end of the month. Prepaid revenue is collected automatically when tokens are bought while postpaid revenue will require strategies to collect it from clients. ZETDC Northern Region solely relies on revenue collection in delivering its mandate and various measures are used to collect revenue from different customer categories. Since 2020, ZETDC Northern Region has been facing liquidity challenges as a result of non-payment of bills. This resulted in ballooning debtors’ balances, service compromise and poor revenue performance which saw the Region failing to meet its mandate like providing adequate, reliable and safe power, line construction, equipment maintenance, business growth and performing corporate social responsibility activities. In an effort to improve revenue performance, ZETDC Northern Region has been using traditional revenue collection strategies like Issuing a demand for payment, installation of prepaid meters, power disconnection, stop order facility for farmers, set off arrangement for government points, litigation, black listing and equipment recovery. The study therefore aims to assess the effectiveness of the revenue collection strategies in improving the revenue performance or maximization of revenue for ZETDC Northern region given the changes in the business models, the coming in of technology among other business complexities like hyper-inflationary environment. For post-paid and prepaid clients, ZETDC has a team of auditors which does revenue assurance with the view to identify anomalies in metering, meter bypasses, meter tempering, and direct connections among other anomalies which might contribute to power theft. The debtors’ trend analysis, revenue collection and collection index is as shown below in table 2: 7 TABLE1.2: ZETDC DEBTORS AND REVENUE COLLECTION TREND Source: ZETDC Northern Region monthly report, August 2022 Application of traditional revenue collection strategies by ZETDC Northern region saw debtors growing from zwl$0.69 billion in December 2020 to zwl$2.41 Billion in August 2022 as shown in table 2 above. The results points to ineffective revenue collection and possible financial challenges should the trend remain the same. Revenue collection index of 104% in August 2022 as shown in the table 2 above remained below the targeted collection index of 135%. The use of stop orders has been in use for some time especially for seasonal client categories like farming. The option worked for some but buy in large it failed since debt for the same category increased instead of going down. In statistical terms, ZETDC Northern region’s electricity debtors increased by 249% from zwl$0.69bn in December 2020 to zwl$2.41bn in August 2022 as shown in table 2 above. The winter season’s debt is mainly as a result of irrigation activities. Come end of the year, the farmers did not settle their debts, but instead prioritized other commitments like inputs for the summer season. Non-payment of bills was also fueled by side marketing which have left the stop orders idle at GMB and TIMB in most cases thus poor revenue collection. Further, the farmers at times deliver farming proceeds to GMB in a different vendor name from the one on the stop order garnish. As a result, the stop order facility failed to achieve the anticipated collections. Currently revenue collection is through strategies such as Customer final demand after due date, power disconnection, use of stop orders, installation of prepaid meters, handing over to legal for prosecution and finally black listing. A final demand is a written correspondence which notifies a client of the amount due and demand for settlement within a certain period failure of which other credit control measures will be 8 instituted. This normally works well for responsive clients with average to good business ethics. It has been observed that over the years that so many clients ignore this measure of revenue collection. Power disconnection is a measure which follows should a client ignores settlement reminder after the due date and it involves service withdrawal. The process involves preparing disconnection schedules, printed and teams dispatched to manually visit the points to disconnect from the transformer or from the main breaker. The measure has worked for some client categories but has not been useful for farmers, Government points, local authorities and other business clients. This is also attributable to corruption cases which leads to unauthorized reconnections without bill settlement thereby making the measure ineffective. Further to the above, ZETDC Northern Region is heavily affected by politics when applying credit control measures like power disconnection as well as possible write off of debt through government pronouncement which in most cases affects the viability of the business and threat to cash flows. In 2013, debt write off of 80% was authorized for farmers without a compensating effect on revenues hence there is need to implore effective revenue collection measures so as to fund the business and avert load shedding among other odds in the electricity supply industry. Installation of prepaid meters has been fruitful on domestic clients which if completed, will go a long way though the cases of meter bypass are on the rise thus electricity theft, so many clients have been caught on the wrong side by Revenue assurance teams which normally do routine checks on suspicious points. This then complicates the revenue collection process through prepaid meters. To a greater extend the utility improved revenue performance through prepaid meter installation on domestic and small points. Prepaid meters benefits the utility through reducing meter reading costs, billing costs as well as credit control costs thereby improving the revenue performance. This strategy was adopted in 2012 for all small power users. Smart meter installation for large power users is on-going from 2021. The legal route is regarded as the fallback position should engagement and other internal credit control measures fail to yield results. This handover to legal was done in 2017 but still the debt did not go down given the time frame the legal process take. Further, the lawyers could agree on longer payment periods thereby loosing on the value for money. At the end, the legal process proved to be a challenge in improving revenue performance as well as considering the costs involved. In 9 2017, legal processes were done for clients like farmers and other commercials but the success rate was below 30% at the same time debt continued to grow. Eventually, debt handed over to legal was then collected through ZETDC normal credit control which calls for better and effective strategies of collecting revenue from the clients at least costs. Finally, blacklisting becomes an alternative should all collection efforts fail. This option is done through the Financial Clearing Bureau (FCB). A black listed client will need to clear ZETDC debt before being granted a loan by financial institutions thereby the utility recovering its dues though it might take years before recovering. Looking at figures, collections from FCB are so small and insignificant given what the utility is owed thereby threatening the going concern of the utility. In terms of numbers, less than 1% of black listed clients have settled what they owe since most funding is from informal markets and small micro finance institutions which do not regard credit rating as important. This research should then find out the best strategy of collecting from the clients at the same time continuing to provide a critical service for national development. As a result of the failure of the traditional methods in improving the revenue collection performance, there is need to establish new ways of doing business ushered as a result of changes in the business world, change in dynamics and given the Volatile Uncertain Complex and ambiguous (VUCA) environment in which ZETDC is operating. The statistics shows that a status quo might not yield results but change of strategy might work for the better and even improved application of revenue collection measures, stepped up monitoring and evaluation as well as results based approach in revenue collection. 1.2 Statement of the Research Problem ZETDC Northern Region is characterized by an ever increasing debtor’s balances and liquidity challenges which are all a reflection of challenges with revenue collection performance. This then calls for a research on the effectiveness of the revenue collection strategies in enhancing collection performance which will indeed improve the liquidity of ZETDC Northern Region and eventually reducing the debtors’ balance thereby giving life to the parastatal. At the end, the Parastatal should be able to deliver its mandate using the generated revenue should the collection strategies be aligned to the modern trends of doing business. The research seeks to close a gap on effectiveness of the strategies and ramp them up as well as adopting any new and better strategies to enhance 10 revenue collection performance, reduce load shedding, improve service delivery, reduce revenue leakages and minimizing commercial losses. In performance terms, the electricity debtors of ZETDC Northern Region increased from zwl$0.69bn in December 2020 to zwl2.41bn which was a sign of failing collection performance. The level of load shedding had increased as well thereby affecting the business community. The number of operational vehicles dropped from 900 to 300 in the same between 2020 and 2022 since the business could not fund itself as a result of cash flow challenges. Annual planned maintenance of distribution equipment was not done as well, adequate poles were not bought and even transformers all as a result of cash flow challenges threatens survival of the power utility and possible technical insolvency. There have been positives through institution of disconnection blitz across the Region which brought about some good results especially on the USD clients’ debt which then dropped by 71% from us$41m to us$11m between June and July 2022. The rising levels of positive consumer engagement have revealed significant collecting shortcomings that, if fixed, might lower transaction costs in Africa (Crandall & Bodin, 2005). These include the absence of a service ethos at all district management levels, the antagonistic relationship between depots and the business community, the scarcity of or ineffective use of supporting resources, the lack of a facilitation culture in other government agencies, corruption, and illegal relationships. The difficulties give chances for enterprises to collaborate with service providers to effect the required transformation (Crandall & Bodin, 2005). The above researches done to date relates to stable economies with uncontrolled price of electricity as well as with adequate power supply and energy mix. ZETDC Northern Region is in a country where electricity price or tariff is controlled by government, the economy is not stable and business models have changed since the covid 19 era, the grid set up and status of infrastructure is still below regional standards and high level of political influence when credit control is applied. This results in a gap (Environmental differences, business model changes, monitoring and evaluation not covered by researches and a specific collection challenge for ZETDC not explored) which need to be filled by this research conceptualizing effectiveness of revenue collection strategies to ZETDC Northern Region, a company with serious resource shortages. 11 1.3 Research Aim/Purpose of the study The main aim of the research is to ascertain the effectiveness of revenue collection strategies in improving the revenue performance for ZETDC Northern Region. The research identified the new revenue collection strategies which will give birth to a better performing parastatal with improved liquidity thereby assisting all stakeholders to drive national growth through provision of reliable power nationally with minimum commercial losses. A decline in revenue collection threatens the financial viability of public utilities, and that a decline in revenue collection affects business liquidity, profitability and viability hence the purpose for this study. 1.4 Research Objectives 1. To identify the available revenue collection strategies being used by ZETDC Northern Region 2. To assess the effectiveness of revenue collection strategies in improving revenue performance 3. To propose the possible new revenue collection improvement and revenue leakage minimization strategies for improving revenue performance 1.5 Research questions 1. What are the available revenue collection strategies being used by ZETDC Northern Region? 2. How effective are the revenue collection strategies in improving revenue performance? 3. What new revenue collection strategies and revenue leakage minimization strategies could be adopted to improve revenue performance? 1.6 Underlying Assumptions Assumptions are unproven but logical statements of truth without which a study may not progress (Leedy & Ormrod, 2013). My study's design and implementation were based on four assumptions. 1. Sound collection strategies will boost service delivery 2. Research participants will fully participate and would have relevant experience and knowledge in revenue collection in the energy sector. 3. Results from data collection will be generalized so as to draw a conclusion 12 4. A selected sample will fairly represent the population 1.7 Justification of the study The research sought to establish the effectiveness of the current revenue collection strategies being applied by ZETDC Northern Region and their contribution towards collection performance. This will enable assessment and determination of other emerging better strategies of collecting revenue to ensure a self-funding business model with reduced debtors’ book. Specific research on ZETDC’s effectiveness of revenue collection strategies has not been done and covered thereby leaving a gap to be filled by this research. ZETDC Northern Region currently has funding challenges which culminated into failure to buy operational vehicles, failure to repair broken down distribution lines, failure to grow the business, failure to pay for power importation, failure to invest in new power generation equipment all leading to serious load shedding in the country. The new emerging strategies will be recommended for adoption so as to address service provision challenges within ZETDC. 1.8 Significance of study The findings of the research will assist ZETDC management in decision making so as to improve revenue collection performance and eventually service delivery. Furthermore, various government agencies will also make use of the findings to establish causes of parastatal poor performance and coming up with better financing models for the electricity sector as well as assessing the need for a cost reflective tariff which promotes power supply sustainability. The suppliers will also make use of the research outcomes in assessing assurance of payments on services rendered as well as developing supply models which suits the parastatals. The employees will make use of the findings in assessing the security of their employment and prospects of salary adjustments among other employment benefits. The customers will also make use of the outcomes through appreciating the effects of not paying bills, the causes of load shedding, and the best business model for the power utility as well as a possible shift in the financing/business model to match changes in service provider’s operational procedures. Lastly, the study will assist future researchers, academics and scholars who would like to study strategic management and monitoring and evaluation in electricity sector’s revenue collection. 13 1.9 Contribution of the study Business leaders' grasp of the significance of managing revenue collection in all forms of business may be improved by this study. Through increased profitability, the use of revenue collecting tactics in power utility businesses can improve the companies' financial viability. There is a basic connection between increased revenue flow, successful business operations, and excellent customer service. (Baik, Chae, Choi, & Farber, 2013) Practical contribution The results of the study and its recommendations will assist ZETDC management in identifying the weak link in revenue collection and adopt necessary strategies to plug them and improve liquidity of the power utility which will then be used to grow the business and improve service delivery. Improved liquidity and reduced debtors balance through effective revenue collection will increase the borrowing power should there be need for capital projects financing. Knowledge/literature contribution The findings of the research will assist future researchers through adding more knowledge in the research domain which can then be used for various purposes among them guiding other utilities on how collection can be enhanced in a turbulent environment Policy contribution The research findings also added more flesh on what is required to keep the utilities going and usually the operations of power utilities is affected by existing polies and guidelines including statutory instructions. This will then guide the policy makers on how best to craft policies which can support execution of a mandate. Methodological contribution The manner in which a research is done will also add more views on how a qualitative research can be, that is, by assessing effectiveness from the perspective of views from staff and clients instead of results based as a way of collecting more information other business stakeholders. 14 1.10 Delimitation/Focus of study Delimitations are manageable criteria that are utilized to limit the study's scope. (Marshall & Rossman, 2016). The first delimitation was that the geographic location of the chosen case study was close to my place of residence, that is, Mashonaland Provinces. The second delimitation was that I involved a limited number of participants. Conceptual focus The research focused on the effectiveness of revenue collection strategies within the context of ZETDC Northern Region which is one out of the five regions of ZETDC for the reason of it being well composed in terms of big clients in all client categories. The Region further contributes 70% of the ZETDC’s revenue hence the focus on it. Spatial or geographical focus The research was bound in the geographical areas which fall under ZETDC Northern Region which are Mashonaland Central province, Mashonaland East province and Mashonaland west province. The research focused on the mentioned geographical for the purpose of easy of data collection since the researcher could easily travel through the provinces to collect data. Furthermore, the spatial confinement was as well caused by the time which was available to do the research. The geographical focus did not affect the outcome since it had a fair client representation and key players in the energy sector are resident in the three provinces. Temporal focus The revenue collection trend was observed over the period of two years from 2020 to 2022 where major increase in debtors was noted and declining revenue collection as well as deteriorating tools and equipment all culminating from liquidity challenges owing to low revenue collection. The timeframe from 2020 to 2022 has many changes including monetary policy changes, currency deterioration, macro-economic challenges, covid 19 challenges, hyper inflationary environment as well as brain drain within ZETDC time. 1.11 Limitations of the study Limitations are uncontrollable weaknesses inherent in a study (Connelly, 2014). The first limitation was that the study involved only a single case for ZETDC Northern Region just to make 15 it practical since one Region has a fair share of all clients categories and staff capacities knowledgeable to provide the necessary responses through the research. The second limitation was that the location of the study was only in the Mashonaland provinces of Zimbabwe for the reason that the provinces have a fair share of the clients and staff representation. The third limitation was that of a small sample size given limited time and resources thereby use of sample to generalize the results. The samples were taken from all categories of clients and staff which has a direct contribution to revenue collection. The research was self-sponsored as such a limit on data collection given the cost of doing so. The study relied on qualitative data collection through structured and semi-structured questionnaire of which collection, analysis and interpretation was not free from human errors. Modern tools were used to analyze data as a mitigation measure to reduce human errors. 1.12 Outline of the study 1.12.1 Chapter 1 The chapter provided the background to the study, revenue collection strategies, statement of the research problem, the purpose of the study, the research objectives, the research questions, underlying assumptions, justification of the study, significance of the study, contribution of the study, delimitation of the study and limitations of the study. 1.12.2 Chapter 2 A review of relevant literature will be conducted, tying it to the researcher's area of study, the relevant goals, and most crucially, using the scientific process in the review. 1.12.3 Chapter 3 The research methodology, the philosophy, design and research instruments to be used for the research study will be highlighted and justified within this chapter. 1.12.4 Chapter 4 16 The data gathered in the previous chapter together with secondary data will be analyzed using tables and charts. 1.12.5 Chapter 5 The findings, conclusions and recommendations will be proffered based on the triangulation of the primary data, secondary data and the research results obtained from the previous chapter. 1.13 Chapter Summary The chapter first discussed the background of the study, highlighting the problems that ZETDC Northern Region is face pertaining to factors affecting effectiveness of revenue collection. Secondly, the chapter discussed the problem statement and objectives that help to give the scope of the extent of the analysis that need to be done. The significance of this research was presented. Other issues that were covered include the limitations and delimitations of the study. An overview of each chapter of the study was also presented. The next chapter presents a review of relevant literature. 17 CHAPTER 2: LITERATURE REVIEW 2.0 Introduction The theoretical and conceptual underpinning on how revenue collection tactics affect revenue performance is provided in this chapter. It examines empirical research on earlier studies in this field relating to the study objectives and provides a critical assessment of the literature, highlighting any gaps that need to be filled by this research. Finally, a conceptual operational framework that conceptualized all the relevant variables was presented. 2.1 Conceptual Framework A conceptual framework, according to Mbufu (2013), is the connection between variables and a congregative map. In order to improve revenue performance in ZETDC Northern Region, the conceptual framework theory addresses the effectiveness of revenue collection strategies. It is made up of control, dependent, and independent variables. The dependent factors are improved revenue collection and a decline in the debtors' balance, whereas revenue collection tactics are the independent variables. Since staff skills are a significant enabler in connecting independent and dependent variables, different acts and staff skills that affect both the independent and dependent variables are included as control variables. According to Crompton (1991), there is a correlation between effective implementation of collection tactics and efficient revenue collection. He goes on to say that for efficient revenue collection, the more successful the method, the more money is collected and the less money owed by the debtors. The use of the available options to obtain the anticipated revenue will also depend on the existence of a sound and effective legal framework. The legal structure in this case includes sufficient policies, rules, and regulations that control how ZETDC's value chain and revenue collecting division operate. The Conceptual Model, which provides the basis for the research, is shown in Figure 3 below. This network of links between the variables determined by a literature review to be pertinent to the problem situation is logically built, described, and elaborated. 18 FIGURE 2.1: ZETD C CONCEPTUAL FRAMEWORK SOURCE-OWN DIAGRAM FOR THE STUDY The independent variables are techniques that are essential for generating revenue, and their effectiveness in execution has led to outcomes like enhanced revenue performance. A moderating variable is a crucial element in ensuring that the dependent variable is used to produce the desired results. The outcome of applying independent factors along with the moderating variable determines the dependent variable. The revenue collected or the improvement in revenue collection as a result of strategy application was the dependent variable in the ZETDC Northern Region research on revenue collection. The independent variables were methods that were used to collect money. In order to get the desired result, which becomes the dependent variable, the conceptual framework summarizes the research by showing the key drivers that require more time and resources. This is because revenue collection results from strategies that are successfully implemented with the right monitoring and evaluation tools. The conceptual framework clearly states that the dependent variables, such as business process automation, implementation of performance contracts, monitoring and evaluation, carrying out meter audits, staff rotation, and expanding the number of online payment options, will enable revenue collection if the strategies 19 are effectively implemented by skilled and passionate manpower operating in an organization with clear frameworks, accounting manuals, and statutory instruments, among other things. 2.2 Theoretical framework The goal of revenue administrations has typically been to improve revenue collection. The majority of diagnostic work has been devoted to quantifying revenue leakages. The World Bank and the IMF both commonly employ this strategy (Keen, 2003). In the case of ZETDC Northern Region, the utility's ability to achieve its National Development strategy 1 (NDS1) goals, which among other things include doing away with load shedding and giving everyone access to electricity, is made possible by the revenue collected, which is frequently referred to as the main driver in service delivery. As the utility works to power the entire country, ZETDC as a whole is engaged in a total electrification project that, in essence, requires cash or revenue gathered to pay essential components. Many theories do connect to the research in different ways. 2.2.1 Mckinsey 7s framework The Mckinsey 7s framework is a management model developed by Robert H. Waterman Jr. and Tom Peters in the 1980s. It is the main theory in this study since its covers a strategy and the factors which affect the strategic fit of a tactic as well as success of it. The 7s are strategy, structure, system, skills, style, staff and shared values. This concept is based on the idea that these seven components must be in harmony for an organization to function well. The idea highlights the components that must work together in a utility setup to make goal achievement easier. According to the theory, an organization contains seven different components that work together to produce the outcomes at the end of the value chain. In the case of ZETDC Northern Region, which the researcher examined, the collection strategy must be agreed upon by all, the formal reporting structure must be clear, the system must be functional and automated, the staff must have improved skills, the leadership must be appropriate to support the effectiveness of revenue collection, the staff must have the appropriate attitude, and the organization's values must be shared. The theory explains the study of effectiveness of revenue collection strategies at ZETDC Northern Region in that strategies are implemented by employees, who are guided by management and all processes done in the system in which clients are billed. This points to the relevance of the theory to the 20 study and the need to adopt its concept by ZETDC there be need to improve effectiveness of revenue collection. The major weakness of the theory is that it dies bot consider external factors like inflation which also affects its implementation and effectiveness of collection. This weakness however can be mitigated by applying the 7s model as it applies and blending it with situational approaches in strategic management. Figure 4 below shows a summary of the Mckinsey 7s model. FIGURE 2.2: MCKINSEY 7S MODEL Source: Peters (1982). The 7s model is conceptualized as follows: The term "strategy" refers to an action plan created to preserve and increase competitive advantage as well as other maximal target achievement. (Alfred D. Chandler, Jr, 1980, Yayra 2011). Structure indicates the way the organization is organized and who reports to who. Structure divides tasks and then provides coordination. This aspect is critical to ZETDC Northern Region in that the Region covers three political provinces of Mashonaland which requires a functioning structure to coordinate all collection efforts and strategies by commercial managers and sales executives. Systems refers to the daily activities and procedures that staff members engage in to get the domestic revenue collection done. The administrative systems where vital areas that can bring in domestic revenue collection McKinsey, Yayra (2011). Systems are key in facilitating effectiveness of revenue collection strategies as they aid clear audit trails and monitoring mechanisms. Shared Values often called ‘super ordinate goals’ when the model is developed, these are the core values of the organization that are evidenced in the corporate culture and the general work ethic. The core values of the ZETDC Northern Region are client focus, integrity, teamwork, innovation 21 and corporate social responsibility. The values are key in ensuring effectiveness of revenue collection through staff transformation and behavior guidance. Style implies the type of leadership adopted. The leadership style adopted in any organization has direct impact on performance according to Friedman & Rosenman, (2009). ZETDC Northern Region has a fair age mix of staff and heavily unionized which then calls for dedicated leadership which pays attention to detail and remain focused to avoid being derailed by union leaders from the goals of the utility. Staff refers to the general capability of employees. The capabilities depends on several factors like qualifications, experiences, motivation among others. Absence of these might contribute to low goal attainment, such as low revenue collection in the case of ZETDC Northern Region. The staff over the years moved from results based culture of working to time based thereby contributing compromised performance across ZETDC. Skills: the actual skills and competencies of the employees working for an organization are also vital for effective performance. There has been a change in business dynamics as evidenced by changing business models. Staff for ZETDC need training so as to improve flexibility and ability to deliver. Skills acquired 10 years ago might not be relevant in this turbulent environment which requires agile team members. The McKinsey 7Ss model is therefore relevant in this study. If something within an organization or team isn't working well, chances are there is inconsistency between some of the elements identified by this 7s classic model hence its application in the research of ZETDC Northern Region’s revenue collection performance. Proper alignment of the 7s and application will contribute materially to revenue collection which will drive the expected results as per the National Development strategy 2021 to 2025 (NDS1). 2.2.2 SWOT analysis An organization can use a SWOT analysis to identify its internal strengths (S) and weaknesses (W), as well as external opportunities (O) and threats (T) (T). The data is utilized in business planning to assist in achieving objectives like revenue collection, as in the case of this study for ZETDC Northern Region. Strengths are the aspects of revenue collecting that ZETDC excels at, as in this instance, and the SWOT analysis theory truly aids management in identifying the areas that require attention when assessing a process that may not be producing the required results. One 22 of this theory's biggest flaws is that it's subjective, which makes it easy for people to misjudge situations or use it incorrectly. When analyzing the same for an objective evaluation, this shortcoming might be reduced by enlisting the help of outside specialists. Weaknesses describe internal deficits like staff skills gap, resource limitations, remuneration challenges among others all necessary in the study since they as well affect effectiveness of revenue collection strategies. Opportunities describe any external circumstances or trends that favor the demand for an organization’s specific competence like in this case new strategies which can be proposed by staff and clients will be of importance in enhancing revenue collection within ZETDC Northern Region. Threats define any external circumstance or trend (establishment of strong competitors, government deficit, or regulations) that limit free distribution of products or services. SWOT analysis is a key theory in this research in that for revenue of ZETDC Northern Region to be collected, there is need to identify the main causes of non-performance of the current strategies thereby applying the SWOT analysis. In the same view, the SWOT analysis works as a strategic guideline in decision making which is key in making choices like choosing the best strategy to collect revenue from the most difficult tariff category like Farming. The SWOT analysis will assist management in figuring out a best fit strategy to collect all the revenue at the minimum cost possible. This then points to the criticality of SWOT analysis through capitalizing on strengths and exploiting opportunities like government set off and concessions with farmers to collect revenue from source. The research also explored potential collection strategies (opportunities) and weaknesses of the old strategies all cementing the importance of the SWOT analysis as a theory in the research. 2.3 Empirical literature review 2.3.1 Current ZETDC revenue collection strategies  Power Disconnection The factors influencing the regular monthly payment of power bills in Hajvali were examined in the study by Vllasaliu (2015). The proposal took into account the issue of unpaid electricity bills in Hajvali, Kosovo. Surveys, regression analysis, and interviews were some of the analysis techniques. The director of energy supply for Kosovo Energy Distribution Services (KEDS), the 23 director of Kosovo's budget, and a representative from the Ministry of Labour and Social Welfare participated in three professional interviews. A total of forty polls with citizens were also done. To determine the statistical significance of each of the components, regression analysis was conducted using Minitab software. From the data gathered, a number of reasons that contributed to a low collection of electricity bills stood out. The main contributing reason was a shortage of monthly discretionary cash, as energy costs for certain households during the distribution system accounted for about 30% of the whole family budget. On the project, various elements were covered in further detail. According to the Minitab data, there was a 10% level of significance for the absence of discretionary income and customers' knowledge of tariff structures (lack of efficiency measures). To account for any outliers and method mistakes, normality and independence tests were conducted on the only significant quantitative variable. In order to boost the rate of bill collection in Hajvali it was recommended to ensure Electricity cutoffs to all debtors and appliance reconnection costs, reintroduction of daytime discounts on rates and publicity campaigns, seminars, or educational programs to raise awareness of energy efficiency The research by Vllasaliu (2015) points to power disconnection as a traditional revenue collection strategy which ZETDC uses to collect revenue.  Installation of prepaid meters The performance of Tanzania Electric Supply Company Limited's prepaid metering system in terms of revenue collection was studied by (Chaula, 2020). (TANESCO). The study's particular goals were to identify the advantages of prepaid meters for TANESCO, consumer issues with prepaid meters, and the impact of the revenue collection period on prepaid systems at TANESCO. The study focused on the branches in Mbeya. On a monthly basis, the study collected data from yearly reports, financial reports, and certain documents. The results of the study showed that collection expenses and the timing of revenue collection had a negative and considerable impact on TANESCO's profitability in the Mbeya Region. In order to increase the coverage of prepaid meters across the nation, the corporation must therefore quadruple its efforts in debt collection. It was discovered that TANESCO staff occasionally read electric meters inaccurately, which compromised the accuracy of the billing process. It was suggested that TANESCO switch from an electric metering system to a prepaid metering system. The study concluded that the use of prepaid 24 billing system reduced revenue collection costs for TANESCO. This emerging business approach to revenue collection seems smart and ZETDC Northern Region might need to broaden it to all customer categories further to the domestic and small business customers who are already on prepaid. The strategy to target key clients which contribute 80% of the revenue as per the Pareto principle. Dube (2014) investigated how home prepaid meters affected generating money. He did his research from 2012 to 2014 in the Gweru urban district. The purpose of the study was to assess how the household prepaid meter affected the Zimbabwe Electricity Transmission and Distribution Company's ability to generate income (ZETDC). Questionnaires were the main tool utilized in the study's descriptive design technique for data collection. For the purpose of choosing and interviewing respondents, the judgemental sampling method was used. According to the study, the adoption of prepaid meters had advantages, such as the removal of costs associated with collection, arrears, and unpaid bills. Further findings from the study revealed that 67% of ZETDC managers firmly felt that the implementation of home prepaid meters had enhanced revenue generating. He determined that, as stated by the managers, the main issue was power theft committed by interfering with the meter. The researcher's results also revealed that Zimbabwe's electricity supply was insufficient and that blackouts continued to affect ZETDC customers even after they switched to the prepayment system. He recommended that management should consider carrying out awareness campaigns to discourage customers from tampering with prepaid meters From the 2 authors, it is evident that they agree on installation of prepaid meters though there is a concern raised of energy theft which needs to be addressed to ensure effectiveness of the strategy in revenue collection.  Final demand and client engagement Strategies for Maximizing Revenue Collection in Public Water Utility Companies in Malawi were the subject of a research by (Namaliya, 2017). This one-case study's goal was to investigate the reliable business tactics employed by senior management of water utilities to overcome inefficiencies in the collection of water fee revenues. Revenue management, which contains tactical constructions for boosting revenue collection, served as the study's conceptual framework. Five senior administrators of a public water service in Malawi, in the southeast of Africa, were the 25 study's target population. Semi-structured, in-person interviews as well as a study of corporate records were used to acquire the data. Four themes were found through thematic analysis of the data, including methodological triangulation, including innovative techniques, efficient metering and invoicing, customer relationship management, and cutting off water service to clients who owe past-due bills. These themes emphasized reliable business approaches that, for these 5 top managers, worked well for generating money. By raising profits, expanding the water industry, lowering crime by hiring more people, providing potable water to reduce waterborne diseases, and supporting Malawi's citizens' sustainable social and economic development, addressing inefficiencies in the collection of water fee revenues will facilitate positive social change. Namaliya agrees with Vllasaliu (2015) on disconnection when bills are not paid after the due date as well as engaging the client. The two tactics are not exhaustive when it comes to ZETDC given the complexity of its clientele which leaves a gap to be filled by this research through identifying other possible strategies through which revenue collection can be enhanced. Disconnections cannot be used on critical installations like hospitals and government points. 2.3.2 Emerging revenue collection strategies  Staff training and skills upgrade Ngicuru (2017) conducted research on the variables influencing revenue collection in Nairobi, Kenya. This study aimed to identify the variables influencing revenue collection in the Nairobi City County Government. The study's specific goals included: determining the impact of revenue diversification on revenue collection; determining the impact of administration on revenue collection; evaluating the impact of tax structure on revenue collection; and determining the impact of various revenue sources on revenue collection. The research design used in the study was descriptive. The study population had 340 participants, and the Fischer's method yielded a sample size of 180 participants. With the use of SPSS, both descriptive and inferential statistics were used to analyze the data that had been obtained. The study indicated that revenue diversification tactics enhance the amount of money collected. The amount of revenue collected will grow with appropriate tax administration practices, such as hiring competent employees and implementing cutting-edge technology. The report suggests using the most recent technology, skilled personnel, and more innovations for Nairobi City County's various sources of income. 26 The research by Lita (2013) and Ngicuru (2017) both emphasize the importance of hiring qualified personnel for guaranteeing employee competence. Ngicuru also advocates using modern technology to gather information from clients. Lita (2013) brought attention to the issue of poverty, which has an impact on collection overall, including ZETDC. The two authors both offer solutions that are also applicable to ZETDC, but because Zimbabwe's business environment is different from that of the two writers', there may be a vacuum that has to be filled by the present study.  Business process automation eg smart metering and remote disconnection and reconnection "Evaluating reasons for non-payment of vital services in Oshakati town, Namibia" was the title of a study done by Iita (2013). The study's goal was to assess the causes of key services in Oshakati not being paid for. Both quantitative and qualitative research methodologies were used by the researcher. Case studies and descriptive research design were two of the many research methods used in the study. The results indicate that there is a performance gap regarding issues with trash collection and sewage services management between consumer expectations and revenue collection by the municipality. This was a sign of subpar service. According to the study, unlawful water use contributed to non-payments when homeowners disregarded water meters. Additionally, the study indicated that, compared to other tactics used to collect money, poverty and unemployment were inevitable factors influencing how much customers were willing to pay for services. The key recommendations were as follows:  Revenue collection – Implementing a Geographical Information System (GIS) will be beneficial for staff in tracking down unpaid bills because of the block maps that are generated. The study also suggests various methods for increasing income collection, such as door-to-door customer visits.  Recruit qualified and experienced employees – Employing qualified Chartered Accountants to oversee the municipality's financial management systems is crucial. To enhance service delivery and foster a culture conducive to managing debt collections, training is necessary. The recommendations by Iita (2013) supports automation of business processes for ease of use and accessibility which includes development of GIS. The writer coincides with others like Chaula. 27 The writers are differing where Iita (2013) recommended door to door which defies the purpose of using technology as suggested by other writers. This difference and conflicts creates a gap which need to be verified from the field through research to find out if door to door improves effectiveness of revenue collection strategies given the state of roads, geographical coverage and resource limitations. (Ogada, 2013) indicated the influence of System Operational Efficiency on Revenue Collection in Kenya, A Case of Malaba Border Customs Office and concluded that the accountability of customs systems, work flow and ease of doing business influenced positively by embracing system operational efficiency in revenue collection at Malaba Border. Based on the findings the study recommended a need for a continuous upgrading of the systems, in line with prevailing technology other readers analysed above agree with.  Internal controls Adenya (2017) conducted research on the variables influencing the effectiveness of revenue collection by Kenyan county administrations, particularly Kiambu county. Kiambu County had been falling short of its goals for income collection. The evaluation of factors influencing revenue collecting efficiency was the study's principal goal. The particular goals included determining the impact of technology, internal controls, and law enforcement on the effectiveness of revenue collection, as well as the impact of revenue collection human capacity and technology on revenue collection efficiency. Descriptive and survey research designs were used in the study. While secondary data was taken from already published materials, primary data were gathered utilizing questionnaires. The main data was gathered, processed, and presented in tables using the statistical program for social sciences and Microsoft Excel. Using the multiple linear regression, it was discovered that all variables influencing revenue collection (personnel capacity, technology, internal controls, and legal enforcement) were significant. All the writers including Adenya, (2017) agree on the need for personnel capacity through skills upgrade to enhance staff competence. Adenya, (2017 further recommended internal controls and a strategy which was not mentioned by other writers. It was revealed that, revenue collection can improve when internal control system like segregation of duties, reconciliations and physical controls have been put in place. But all writers are putting forward strategies but effectiveness of the same is not addresses since effectiveness is the one that matters. 28  Proper monitoring and evaluation Over the past decades, ZETDC Northern Region has been holding revenue collection meeting and indabas as well as workshops coming up with good strategies. Now the issue is on effectiveness of those strategies since the desired results were not realized as was evidenced by a growing debtors balance, cash flow challenges, poor service delivery as well as failure to maintain the network to the extent that clients are asked to buy network materials should they need power. Research have pointed to the lacking of monitoring and evaluation which in strategic management is a key process because it is a check point and a stage at which challenges can be resolved in order to achieve the desire goals. The employees of ZETDC seems to know the lack of monitoring and evaluation as well as implementation of corrective measures as such passion to achieve then loses track. There have been cases of non-performers being rewarded, such as through an annual bonus for all yet incentives should be for ability to meet a target so that collection targets and application of revenue collection targets can be applied serious. This emerging strategy of monitoring and evaluating utility strategies was plied in Kenya revenue authority and revenue collection improved.  Client education and engagement A research on the non-payment of municipal services in the Vhembe District Municipality, South Africa, was done by Mavhungu (2011). This study sought to determine why residents didn't pay for services provided by the Vhembe District Municipality. The study was empirical and involved a variety of research methods, including expository, historical, and descriptive (case study) research. In this investigation, simple, stratified, and cluster random sampling techniques were employed. The most important data showed that only 8% of respondents thought the services were beyond of reach, 50% thought they were not very affordable, and 42% thought they were. In addition, only 2% of respondents thought the municipal services were very good, 39% thought they were good, 36% thought they were poor, and 23% thought they were very poor. The high level of dissatisfaction among municipal service users may seriously affect how well revenue collection tactics work to increase revenue collection. Regarding improving service delivery and encouraging customers to pay for the services, she recommends the followings: 29  The municipality needs to launch an educational and awareness campaign among the communities to deal with the apparent dependency syndrome The municipality needs to urgently improve the quality of services to ensure that customers’ willingness to pay service is raised This was supported by a research on the efficiency of taxpayer education as a revenue collecting tactic in Kenya (KRA) conducted by (Best, 2004). Determining the efficiency of taxpayer education in KRA's revenue collection was the study's main goal. In Nairobi, where the area was separated into four administrative regions, the study used a descriptive research design. The strata for tax payer sampling were the sub-regions. Primary data was gathered via questionnaires and a sample of 120 taxpayers. Utilizing a combination of quantitative and qualitative methodologies, the data was analyzed. Tables and charts were used to present the findings. The results showed that taxpayer education had improved KRA collection. The results showed that tax payer education had improved the following areas of revenue collection: the public's level of comprehension of various taxes at KRA; tax compliance among non-cooperative taxpayers; reduction of tax evasion; and taxpayers' ease in filing returns. The study suggested that KRA work to enhance the options for tax payers to receive services, encourage participation by all tax payer sectors and categories, streamline the tax process, broaden the scope of electronic tax services, provide targeted taxpayer education programs and guidance instructions to taxpayers, and formulate measures to increase the participation of taxpayers in the tax, and ensure timely response to the dynamics affecting revenue collection from time to time. The two writers agreed on educating clients on the organizational expectations and purpose of paying for services even though applicability of the strategy might need to be further researched to see if it fits well in the context of ZETDC Northern Region. 2.4 Research Gap From the literature analyzed above, it was found out that all writers recommended strategies which could be used to improve revenue collection but the effectiveness of the strategies in a hyper inflationary environment, with more political influence, changed business model by covid 19, a company without adequate resources, a company with deteriorated distribution structure was not addressed as well as key enablers of strategy effectiveness was not as well articulated which leaves 30 a gap which should then be covered by this research. The writers also had different views on some aspects like using GIS to facilitate movement from door to door yet technology could be available to lessen the burden given the geographical coverage of ZETDC and the staff to employee ratio. It has been determined that the general public believes they are not permitted to take part in discussions about their well-being. Due to this, many people have chosen not to pay for the services that were provided to them (Hagg, 1998). The effectiveness of a strategy's implementation and revenue collection are related, claims Crompton (1991). Additionally, it is clear that each utility must have a successful revenue collecting strategy that is in line with its strategic goal (Parkin, 1995). In addition to interventions focused at strengthening revenue collection tactics, addressing these collection difficulties necessitates more significant service delivery improvements, adequate monitoring, and assessment of all measures in relation to the desired outcomes. In strategic management, a well-developed strategy could amount to nothing if it is not put into practice, and all programs depend on how successful monitoring and assessment are done. By examining the variables that impacted the efficiency of revenue collecting tactics in enhancing revenue performance at ZETDC Northern Region, the current study aimed to close these gaps. Although the energy sector is distinct and necessitated specific ways to handle revenue collection, there has been little research on it especially in the Zimbabwean context and ZETDC in particular. The research that is known to the researcher has primarily focused on existing tactics and how they performed in other service industries which might not best fit in the Zimbabwean context and ZETDC Northern region’s business case. 2.5 Chapter summary The chapter outlined the conceptual framework for the study as well as the theoretical framework which was relevant to the study. It further reviewed the literature of studies done in the field of revenue collection as well identifying the research gap which was to be filled by the current study. The next chapter deals with the methods used to gather data, analysis, recommendations and conclusions drawn from the research data. 31 CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Introduction The chapter will give an overview of the methodology used to conduct the research outlining the research design, target population, sampling design, data collection methods, and instruments as well as data analysis and interpretation. 3.2 Research Design The study was done through a sample survey approach since there was a big population covering Mashonaland East, West and Central provinces being the area covered by ZETDC Northern Region. This follows a case study approach which gives deeper insight into revenue collection challenges for utility companies. The descriptive research design was used with a focus on qualitative characteristics and status or views of the vast revenue collection strategies employed by ZETDC Northern Region in improving the revenue performance. The descriptive design describes the current state of affairs as they exist at the time of study (Herve, 1988). He went on to state that with this methodology, data about the variables that are found in a society is gathered. In summary the design deals with incidences of variables (both dependent and independent) as well as the relationships. 3.3 Target population The research targeted the staff of ZETDC Northern Region covering all Districts, that is, Chinhoyi District (Mashonaland West Province), Marondera District (Mashonaland East), Bindura District (Mashonaland Central Province) and Kadoma District (Mashonaland West Province). ZETDC Northern Region has 1500 employees and the focus was on 20 credit control staff, 18 Customer service officers as well as 13 management staff being internal clients. These categories was chosen owing to their daily contribution and level of activity in revenue collection since they are electricity clients in their own right. Further, they also deal with clients as such they can easily share the emerging strategies and recommend improvements on the current strategies. In addition to internal clients (staff), the study also targeted external electricity clients per tariff category across Northern Region. The total of post-paid and prepaid clients was 145000 of which 7500 were post-paid clients 32 and 137500 were prepaid clients, however, due to the homogeneous nature of the cli