ONE OF the more challenging but very necessary projects we are doing in the Philippines is implementing the Performance Governance System in key departments.

The path to economic growth and poverty reduction requires many stepping stones. Some of the most important ones are improvements in the following sectors: Transportation; Infrastructure; Health; Education; Climate for business.

In an environment of transparency and accountability, it has to be coupled with greater vigilance against corruption. The National Competitiveness Council (NCC), with the agreement of the Millennium Challenge Corporation, has identified eight Process Improvement Projects (PIPs) dealing with governance and competitiveness that will achieve breakthrough improvements in the above sectors. For these PIPs and reforms to succeed, there must be CULTURE CHANGE in the concerned organizations; change that will institutionalize good governance, not dependent on a single administration. So that even up to 2030, beyond the current or succeeding administration, we as a nation, will have the capacity for sustained development.

The Implementation of the Balanced Scorecard (Performance Governance System) in 12 Key Departments is a priority project of the Private-Public Partnership composed of hundreds of business leaders, coordinated by the Executive Secretary and led by the Private Sector Representative.

Upon the implementation of the Performance Governance System (PGS) in these key departments; it is expected that sustainable culture change will be achieved which can be replicated in the other national government agencies. If successful, the plan is to roll it out even to smaller government offices in the future, such as the local government units.

For the first round, we targeted six government agencies most crucial to achieving our goals of economic growth and poverty alleviation. The Departments of Transportation and Communication, Public Works and Highways, Health and Education. To help build a better business climate, we also focused on the tax bureau and the national police. We launched the PGS among these six agencies last May 2009.

The following are the additional departments which are now being initiated to PGS: Department of National Defense, Department of Budget and Management, Bureau of Customs, Department of Social Welfare and Development, Civil Service Commission, and National Economic and Development Authority.

There are four key parameters of PGS. These are clear direction for transformation, measurable objectives, performance and anti-corruption oriented, and, lastly, private sector involvement. The inputs in the discussions were coordinated by the head of the agency to demonstrate his full support to the program but the younger professionals of the departments were the most articulate in churning out suggestions for improvements. It was made clear by the young professionals that they do not wish to make a career in an agency that is typecasted as ‘corrupt’. They will be doing their best to uplift the agency’s reputation to be at par with the best in the business sector.

Main targets

The main targets are career officials who will stay on to next administrations and institutionalize the process. Special attention were given to the mid- and top-level career officers who stay constant through different administrations.

At the same time, business leaders who are considered as their main stakeholders were invited for their suggestions on where and how improvements can be achieved. The Development Academy of the Philippines joined forces with the Institute for Solidarity in Asia in bringing together the above various elements which are essential for a successful change program mechanism.

The desired outputs are the Charter Statement, the Strategy Road Map, and the Balanced Scorecard. These are illustrated by the initial outputs by the Philippine National Police as shown below:

Key elements of the strategy map and scorecard

Aside from the usual vision, mission and values statements, the group was asked to answer strategic questions based on different perspectives, like stakeholder support, resource management, process excellence, etc.

They then mapped out these answers, and in the process, clearly defined the role of each strategic component in achieving their overall vision. So in this sample Strategy Map from the PNP, you’ll see what strategies they’ve identified as stepping stones to becoming a highly capable, effective and credible police service.

Then they expanded the strategy map into the governance scorecard. For each area, they identified the objectives, measures, and specific targets for different points in time. They also pinpointed specific initiatives that will help achieve these objectives.

Accountability and monitoring

Quarterly review of strategy maps, together with Civil Service Commission and private sector partners (like NCC and chambers of commerce) will work with the departments to review and monitor their progress quarterly.

Initial feedback to the sessions was very positive

1. “The PGS focuses on the objectives of the department and tightens the connection of the programs and services.”
2. “Having the senior employees do the PGS is like doing a blueprint for the next generation.”
3. “We see it as: P-Performance management tool; G-Good grip to our performance; and S-Synchronize our Vision for sustainability.”

Next steps for the six departments

The maps and the scorecards are now being rolled out to every corner of the organization and to all other partners and stakeholders. The goal is to ensure sustainability of the effort beyond 2010. By early next year, other departments will also implement the system.

Governance pathway

The desired governance pathway that starts with initiated phase, to compliant, proficient up to institutionalized stage. In fact, we have already initiated the process. It will take some time before the departments move up to institutionalizing the performance governance system. But we’re confident that this is the right step to take and shall later are some good stories to tell of.

Of transformation, from a culture based on personalities to one based on institutions; from short-term thinking, to long-term; from mere tactics to strategy; and from focus on individual issues to finding opportunities for interconnection, our journey towards a thriving, prosperous nation has begun.

By Cesar B. Bautista
Philippine Daily Inquirer
First Posted 20:32:00 07/04/2010

(The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines. The author is the present private-sector Co-Chairman of the National Competitiveness Council and former Secretary of the Department of Trade and Industry. Feedback at map [at] globelines [dot] com [dot] ph. For previous articles, please visit .)