• Two PH govt institutions win global award for positive impact



    THE city government of Balanga and the Philippine Navy have awarded the prestigious 2016 Palladium Balanced Scorecard Hall of Fame for Executing StrategyTM. These two government organizations are the fourth and fifth Philippine government institutions to be inducted into the global hall of fame, an annual search set up in 2000 by Drs. Robert S. Kaplan and David P. Norton, creators of the Balanced Scorecard.

    The award, which is the global benchmark for outstanding strategic execution, was given at the Shaping the Future through Positive Impact Summit 2017 in London on March 21. Bataan 2nd District Rep. Jose Enrique Garcia III and Chief of Naval Staff Rear Admiral Gaudencio Collado, Jr. received the recognition on behalf of their respective organizations.

    Previous public sector winners from the Philippines include the cities of Iloilo (2010), San Fernando, Pampanga (2010), and San Fernando, La Union (2015). Notable public sector honorees include the Barcelona City Council (2009), US Federal Bureau of Investigation (2010), and the UAE Ministry of Interior (2014).

    As members of the international hall of fame, the cases of the city government of Balanga and the Philippine Navy can now be studied by institutions worldwide that are seeking their own breakthroughs and transformations.

    The city government of Balanga, the capital of Bataan, was cited for its creative strategy, which not only sees the city becoming a university town by 2020 but at the same time develop its knowledge industry so it can link education efforts to economic results. One of the most impressive transformations in the cityis the net contribution of local economic enterprises, which rose to P36.08 million in 2015 (the date of application for the award) from a negative figure of P2.03 million in 2007, the year Balanga designed its current strategy. Despite beginning with zero funding from public-private partnerships, Balanga can now count on more than P268 million in investments; the city is also able to double its number of government scholars from 1,535 in 2007 to 2,921.

    The Philippine Navy is the first national government agency to be inducted into the hall of fame. Pursuing a 2020 vision of becoming “a strong and credible Navy that our maritime nation can be proud of”, the organization worked on using technology to improve financial processes as well as communication efforts. This has resulted in an increased operational readiness which was pegged at 90.38 percent in 2015 against 67.93 percent in its baseline year, 2008. In terms of safeguarding Philippine maritime territories, the country can now count on 36 Maritime Situational Awareness Platforms operating 24/7 to provide key information for governance, development, and security undertakings, coming from a baseline of 8 in 2008. This also means that the organization is able to monitor more foreign and domestic vessels passing through Philippine waters—with the figure rising from 3,016 in 2008 to 45,859 in 2015.

    Both institutions were endorsed for the award by the Institute for Solidarity in Asia (ISA), an advocacy group founded by civil society leader Jesus Estanislao. ISA implements good governance programs to improve public service delivery at the national level, and raise community incomes at the local level.


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    1. BSC’s perspectives for an organization’s vision and strategy formulation are four-fold: Financial, Customer, Internal Business Processes and Learning and Growth. It is against these perspectives that the metrics for measuring company performance quality are defined and assessed. Quite obviously these perspectives and metrics are without question clear and explicitly applicable to private sector organizations. But is it as directly applicable for public sector organizations ?

      Some inherent “weaknesses” of BSC, as listed by some consultants, are: 1) The system is quite rigid and static; 2) The system is extremely organization/company-specific; 3) The system does not provide firms the possibility to make an external comparison (bench marking). Some remaining challenges in applying it BSC in the public sector revolve around the four perspectives themselves. For example, defining who the customers are of certain government agencies can be vague (like SSS in the long past) that is why their computerization was for so long and at significant costs was directed to back-office (accounting system), rather than the front-line, processes (member-facing processes) because they were then still unaware that their true customers are the SSS members and their beneficiaries and not their finance department. On the Financial perspective on the other hand, since public sector agencies are virtual monopolies in their assigned “trades” (customers have no other choice to avail relevant services but the government agency tasked to addressed those services, where is financial excellence measured against except maybe in the budget management aspect but that is a more internally-focused metric rather than in relation to external (competition which is in-existent) benchmarks.

      But bottom-line, it is very good that government is now made to use modern management science tools and techniques to improve their services at reasonable costs. It can only finally bring the two Es (efficiency and effectiveness) into the biggest and most-expensive-to-run-organization in our country.