THE CASE FOR CHANGE

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    The PA, being one of the three major service commands of the AFP, believes that there is a need for change. The compelling reasons that justify a transformation program are as follows:

    • The PA needs to adopt best practices in its processes and systems in order to be more effective, responsive, and transparent. Related to this, the organization must synchronize its processes and systems to the current programs of the Defense Department such as the Philippine Defense Reform Program, the Defense System of Management, the AFP Modernization Program, the AFP Capability Upgrade Program, and the AFP Internal Peace and Security Plan Bayanihan.
    •  The PA is generally perceived to be barely capable in performing its functions and in accomplishing its missions given the inadequate force, training, and equipage. Hence, the organization must address identified capability shortfalls in order to make its units and offices fully mission capable.
    •  The PA is constantly plagued with controversies which include the involvement of few in military adventurism, graft and corruption practices, and human rights violations. These create imprints of doubts to the Filipino people of the integrity of men in uniform. Thus, the organization must address its ethical and moral issues that shall raise the level of commitment, discipline, motivation, and professionalism of all personnel and shall promote a culture based on the Army’s Core Values.
    • The PA needs to come up with a sustainable solution to the aforementioned problems. In addition, it must institute good governance and performance excellence which involves thinking beyond the short-term, the self, and single issues and thinking about the long-term, the institution, and interconnected priorities.

    Indeed, the PA believes that a transformation program is needed. And this program is the ARMY TRANSFORMATION ROADMAP.

    Governance, therefore, transcends personalities with focus on institutions. As the PGS aspires to become the governance framework of the PA in active partnership with the stakeholders, it focuses on programs and projects that can continue beyond the current leadership and can survive the changes in the command. These programs and projects can be mechanisms to build a better and stronger PA.

    In effect, perspectives are changed from short-term to long-term resulting in the creation of proactive strategies that address interconnected issues and not of reactive tactics that address mainly a single issue.

    SYSTEM requires situating all activities and components of the PA as mechanisms in reinforcing the strategic direction that the organization intends to pursue. This necessitates:

    •  Looking at the strategic direction of the Philippine Army and relating it to the organization’s current operations;
    •  Linking all the systems of the Philippine Army to work on the strategy; and
    • Allowing the long-term strategy of the Philippine Army to determine the short-term direction that will be pursued by the organization.

    Deliberating through systems will increase the awareness on how the PA and its elements must be analyzed drawing on a stronger command of the cause and effect relationship among the elements of the organization – Core Values, Mission, Vision, Strategy Map, Governance Scorecard, Units and Offices, Internal and External Stakeholders, Strategic Priorities, and Performance Reports. This is best seen by looking at the various perspectives governing organizations in general:

    Concisely, the Performance Governance System meets the good governance and responsible citizenship needs for performance breakthrough results; for governance that is institution-focused, long-term, strategic, and interconnected; and for system that has continuous and sustained efforts with quarterly assessments and recalibrations.

    WHAT DOES THE PERFORMANCE GOVERNANCE SYSTEM ENVISION TO ACCOMPLISH?

    MAIN THING, the Performance Governance System envisions to bring about breakthrough results in good governance and responsible citizenship in the Philippine Army. This is possible through the various systems that will be installed in the organization as a result of using the governance framework.

    The benefits of the PGS are distributed on the four-stage Governance Pathway, namely: Initiation, Compliance, Proficiency, and Institutionalization. Each of these stages contributes to the continuing initiative to formalize the governance culture that is being envisaged for PGS partners.

    THE PGS INITIATION STAGE kicks off the process of the governance culture in the organization. The PGS provides the infrastructure for public officials and citizens to work together in pursuing long-term goals. Embedded in the PGS is a system of scorecards, a tool for monitoring the organization’s progress.

    At the first stage of the Governance Pathway, the strategy will be translated into a clear set of objectives and targets on a balanced perspective of constituency and stakeholders, organizational learning and growth, finance and resource management, and internal processes and infrastructures. The visual representation of the interconnection of the objectives forms part of the Strategy Map which is directed towards achieving the vision. The Strategy Map is guided by the Governance Scorecard which tracks the performance of the organization relative to its commitments.

    At the PGS Initiation Stage, the PA aims to accomplish the following objectives:

    • To allow the Philippine Army to review its strategic direction – Core Values, Mission, and Vision – taking into account the inputs of the stakeholders;
    • To translate the strategic direction into objectives considering a holistic view of the organization;
    • To draw the relationship of the objectives that will capture the strategy of the Philippine Army; and
    • To produce objective indicators and measures of success that will gauge the progress of the organization.

    Initiation, in effect, will cement the long-term strategic direction of the PA that will be the basis of all commitments and initiatives of the organization.

    THE PGS COMPLIANCE STAGE builds on the strategic direction formed at the PGS Initiation Stage. With the direction in place, the second stage of the Governance Pathway intends to galvanize and to align units and processes to the strategy.

    At the PGS Compliance Stage, the PA aims to accomplish the following objectives:

    • To align the units of the Philippine Army to the strategy through a common scorecard system with clear accountabilities;
    • To form a committed group of external stakeholders determined to see the Philippine Army transform and realize its vision; and
    • To enable the full-functioning of the strategy by linking the budget of the Philippine Army with those of the strategic initiatives.

    Alignment is crucial in ensuring the success of the strategy. The process translates the organization-wide commitment into clear accountabilities by the units, which when summed up, attains the organization-wide commitment.

    Compliance, in effect, will facilitate the sharing of accountabilities to the units of the PA until the strategy reaches all units down to the individual level as the organization continues to progress in the PGS Governance Pathway.

    THE PGS PROFICIENCY STAGE sets the platform for successful strategy execution. With the strategy cascaded to the units, the third stage of the Governance Pathway features a thorough analysis and examination of the actual execution. The critical components in the PGS Proficiency Stage are the mechanisms to document and to evaluate the performance of the organization as inputs to the further planning and enhancement of the strategy. The various mechanisms installed are aligned to such functions.

    At the PGS Proficiency Stage, the PA aims to accomplish the following objectives:

    • To formalize a unit that will perform the tasks of the Office of Strategy Management committed to see through the execution of the strategy as well as to oversee the coordinated implementation of the Performance Governance System in the Philippine Army;

    • To develop systems that will institutionalize the review of the strategy in the Philippine Army; and

    • To install mechanisms for reporting on the performance of the Philippine Army.

    Through the constant organization and performance review process, similarly, the constant infrastructure build-up to align units and individuals, partners in the PGS Proficient Stage are envisioned to document breakthrough results from the continuous implementation of the PGS.

    THE PGS INSTITUTIONALIZATION STAGE sees evidence of breakthrough performance in most of the measures specified in the scorecard. Two other crucial expectations are: that the PGS is linked to the performance appraisal of the individual employees and that some form of outreach to propagate the PGS has been done by the organization through its OSM that is expected to evolve into a Center for Leadership at this stage.

    At the PGS Institutionalization Stage, the PA aims to accomplish the following objectives:

    • To document breakthrough results in the Philippine Army after a successful implementation and execution of the strategy;

    • To create mechanisms that will enable an alignment to the Performance Governance System down to the individual level;

    • To formalize a culture of governance in the Philippine Army with the Office of Strategy Management taking on the functions of the Center for Leadership; and

    • To become advocates and champions of governance as well as to propagate the advocacy of governance and the use of Performance Governance System to other organizations.

    Through these mechanisms, the cultures of governance and performance will be well-institutionalized in the PA. The breakthrough performance that the organization is expecting to realize demonstrates the close association between governance and performance. Formalizing a culture of governance will result to the cultivation of a culture of performance in the PA.

    Therefore, the identified benefits derived from using the Performance Governance System is consistent with the objectives set forth in the Army Transformation Roadmap, namely:

    • To determine the organizational and capability gaps, issues, and other challenges that affect the accomplishment of the Philippine Army’s vision, mission, and strategic goals;

    • To establish and set the Philippine Army’s strategic direction by reviewing and validating its current vision, mission, and core values as well as by defining its strategic goals and desired capabilities;

    • To develop the Philippine Army’s institutional strategy that will provide the overarching framework to bring the organization from where it is now towards its vision for the future;

    • To formulate the implementing plans that will translate the broad objectives to specific actions and will enable the Philippine Army to realize its vision and to perform its functions; and

    • To institute a monitoring and evaluation system that will ensure that the plan is implemented accordingly.

    WHY THE PERFORMANCE GOVERNANCE SYSTEM OF THE INSTITUTE FOR SOLIDARITY IN ASIA?

    The Institute for Solidarity in Asia was established in December 2000 with the primary purpose of pushing for comprehensive and systemic reforms at both the national and the local levels. As it envisions to become the leading public governance reform institute in East Asia by 2015, it advocates a paradigm shift from short-term to long-term perspective, from tactics to strategies, from an individual issue problem-solving to interconnected issues problem-solving, and from personalities to institutions.

    Since the Performance Governance System of ISA was first launched in 2004 to a select group of local government units, the system is currently being used by a varied set of public sector organizations, local government units, and national government agencies including government owned and controlled corporations. These institutions have benefitted from implementing the system. To date, more than forty five institutions are making their journey on the four stages of the Governance Pathway including more than thirty local government units from metro giants such as Iloilo City, Marikina City, and San Fernando City to small municipalities such as Bani and Sta. Fe; public sector organizations such as the Accountancy Profession Association and the Nursing Profession Association; national government agencies such as the Philippine Military Academy and the Philippine Navy; and even government owned and controlled corporations such as the National Electrification Administration.

    The PGS partners have spread their wings soaring mightily and reaching greater heights. Two of the most successful partners of ISA include the City of San Fernando and the City of Iloilo.

    The City of San Fernando was awarded the Galing Pook Awards when they entered the PGS, hence, making governance a shared responsibility. Successful breakthrough results include raising a total of Php1.6B of funds outside the City Government Accounts, a satisfaction rating of ninety nine percent, and an improvement in business permits and licensing from two weeks to two hours among others.

    The City of Iloilo proved to the world that Filipinos can be good strategy executioners when it bagged the prestigious Balanced Scorecard Hall of Fame for Executing Strategy given to a few and select institutions world-wide. It demonstrates breakthrough results by having twelve Business Process Outsourcing Locators from initially having none, billions of additional investments in the manufacturing industry, high National Achievement Test Averages, and Billion-mark City Government Income (one of the few cities outside Manila with such income).

    Because of the success of the PGS in local government units, it is used by the National Government – through an order issued from the Office of the President dated July 2009 – as the governance framework in pursuing the Millennium Challenge Corporation Compact Status. The Malacañang Palace saw the potential of the PGS to reform and to transform institutions mandating its adoption to the six national government agencies. These include the Department of Education, the Department of Health, the Department of Public Works and Highways, the Department of Transportation and Communications, the Bureau of Internal Revenue, and the Philippine National Police

    In effect, the PGS is elevated as a policy improvement project of the Government of the Philippines. The Philippines is listed as a Compact Status Partner of the Millennium Challenge Corporation and is due to be given grants.

    Most importantly, the PGS of ISA has guided military and uniformed institutions in identifying and implementing their own strategic initiatives. It enabled the Philippine Military Academy to craft their own Roadmap and the Philippine Navy together with the Philippine Marines and the Philippine Fleet to craft their own Sail Plan. Even the Armed Forces of the Philippines expressed their interest to create their own roadmap but is asked by the Department of National Defense to defer such undertaking. It is because the DND is closely being considered among the next batch of national government agencies to adopt the PGS which also include the Bureau of Customs, the Civil Service Commission, the Department of Budget and Management, the Department of Social Welfare and Development, the Development Academy of the Philippines, the National Economic Development Authority, and the Presidential Management Staff.

    As such, the Army Transformation Roadmap is anchored on the Performance Governance System of the Institute for Solidarity in Asia.

    THE PERFORMANCE GOVERNANCE SYSTEM AND THE ARMY TRANSFORMATION ROADMAP

    The discussions on the Performance Governance System of the Institute for Solidarity in Asia put emphasis on three points:

    • The Performance Governance System is neither a short-term solution nor a quick fix on how things are approached. Rather, it is an institutional governance initiative aimed at transforming organizations.

    • The Performance Governance System banks on a transparent and verifiable performance reporting of initiatives, measures, and targets that are set and accomplished in partner with the stakeholders and the constituents.

    • The Performance Governance System is not a single program or project that can be championed and executed by one unit only. To be more precise, it is a governance initiative championed and executed in all aspects and in all levels in the organization.

    These points, alongside the other points mentioned in the discussions, are the reasons why the Performance Governance System is the framework and the platform to which the Army Transformation Roadmap builds into. Using the three points raised draws a closer look at the said project.

    FIRST, the Army Transformation Roadmap is a long-term initiative. It is not a quick fix. It entails assessing and understanding the Philippine Army as well as uprooting and disabling the issues plaguing the organization to realize its direction. The governance advocated by the Institute for Solidarity in Asia is the same kind of governance the Philippine Army needs to truly launch its institutional governance initiative.

    SECOND, the Army Transformation Roadmap can be self-serving. The results of which can be easily questioned by a scrutinizing public that speaks little of government organizations.

    With a governance scorecard and a measuring tool deeply ingrained in the system, this will enable the Philippine Army to track its progress after executing the Army Transformation Roadmap. The results of these will be objectively reported as the system embeds three essential components:

    • The scores itself are verifiable. The scores as well as the definitions of the scores are well established and are in place.

    • The scores and the measures are available and are open for the public to verify.

    • The system is installed with external stakeholders through whom the Philippine Army holds accountable.

    THIRD, the task of transforming an organization is not easy. Not only will the Army Transformation Roadmap demand so much time in terms of its execution, the project cannot be solely championed by one office or unit. Transforming the Philippine Army entails transforming the biggest service unit of the Armed Forces of the Philippines. As such, it is just but logical to see that the transformation must come across all units in the organization. The Performance Governance System, thus, will provide a mechanism for all units forming the Philippine Army – the top leadership, the senior officers, the field grade officers, the junior officers, the enlisted personnel, the civilian employees, and the reservists – to work together in carrying out the Army Transformation Roadmap.

    To conclude, the Philippine Army envisions to become a world-class Army that is a source of national pride by 2028. This strategic direction charts the destiny that the Philippine Army will pursue in the next three horizons or eighteen years. The Performance Governance System of the Institute for Solidarity in Asia contains all the essential ingredients that will enable the success towards the attainment of the envisioned future in the Army Transformation Roadmap.

    MEDIA CONTACTS

    Ms. Athena Santos
    Tel.0917-513-7364

    OR

    Mr. Manny Hermosa
    Tel. 0917-819-9197

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