The governance challenge is real and relevant. There is an on-going need to showcase governance not only at the level of qualitative and purely word-based interpretations but more so to associate it with the perspective of measurable targets and metrics. The underlying theme is: words, slogans and rhetoric are great, and only if they are connected with, and lead to, corresponding actions that produce desired outcomes. This is the underlying theme behind the Institute for Solidarity in Asia’s (ISA) Performance Governance System (PGS).
The PGS is hinged on the Balanced Scorecard technology (BSC), a management tool for tracking performance developed at the Harvard University Business School. PGS translates statements of governance and vision to actionable strategies and commitments leading to the realization of breakthrough results. Working under the tenet of true and genuine good governance, these breakthrough results operate to make the unit more sustainable and more responsive to its purpose. Inherent in the design of the system is strategic private-public partnership between the organization and the sectors it closely interacts with, as well as transparent executive leadership. As such, this system will revolutionize and institutionalize a new culture of governance that can realize very concrete and tangible results in two (2) to three (3) years from the time a Partner enters the system.
The Performance Governance System is a participatory process in line with the principles and best practices of good governance and responsible citizenship. It calls for effective, sustained, and systematic contributions from individuals and institutions for the common good of their institution or community and of the Philippines as well as the long term development of the Filipino.
How does the PGS benefit ISA’s Partners?
PGS Partners have yielded breakthroughs in delivery of social services, stakeholder satisfaction, and financial autonomy. The PGS has been tailored to institute governance reforms under the motto that “governance attracts capital.” Capital inflows can be used to attain economic viability, address the needs of critical social sectors or membership, improve human capital, upgrade the quality of life of constituents or service for members, and become more competitive.
How can the PGS be sustained?
The term limits of elected and appointed officials pose a challenge to continuity and progress in many governance situations. To promote strategies that can be sustained in the long-term, the PGS involves stakeholders from the private sector as well as career civil servants. They play an oversight role in the implementation of the strategy. By building capacity around the stakeholders, changes in leadership are less likely to disrupt progress in the implementation of long-term plans.
What are breakthrough results?
The term ‘”breakthrough results” is used to define a benchmark of transformation in accomplishing strategic goals. Breakthrough results are sought in four area: learning and growth, internal processes, finance, and social impact.
The PGS strategic planning process is initiated by identifying 15-20 year long-term goals with target “breakthrough results” positioned as milestones every 3-5 years. These are to track progress.
Sample results include improved tax collection efficiency, an increased number of water-sanitation facilities, increased literacy rates or increased efficiency in issuing business licenses and permits.
How does ISA install the Performance Governance System?
Realizing clear, concrete and tangible results requires expertise. The Institute for Solidarity in Asia (ISA) is the sole institutional partner of the creators of the Balanced Scorecard (Harvard Business School) through its management consultancy outfit, Palladium Executing Strategy. It taps on its local partners (management and strategy consultants) and the experience of various heads of both private and public organization seated on ISA’s Board of Trustees and Fellows as it guides its Partners through the PGS. This is ISA’s guarantee that the PGS process has a perfect fit with the BSC Technology that has brought results to various organizations around the world.
If ISA sees that an organization is executing the PGS effectively, it can nominate the Philippine public institutions to be part of the world-renowned Balanced Scorecard Hall of Fame.
