PH Army, Navy Breaking Through with Best Practices

The Center for Excellence in Governance (CEG) together with the Institute of Solidarity in Asia and the Institute of Corporate Directors on Tuesday (Nov. 20) recognized the achievements of the Philippine Army and the Philippine Navy for having earned the prestigious Palladium Balanced Scorecard Hall of Fame award.

The Palladium Balanced Scorecard Hall of Fame is an award that recognizes organizations that have successfully executed their strategies and achieved breakthrough results through the use of Kaplan and Norton’s Strategy Management System.

Philippine Army Transformation Story
Philippine Army Chief, Lt.Gen. Macairog Alberto who shared the Army’s transformation story said, the Philippine Army has been implementing the Army Transformation Roadmap as its strategy since 2010.

“Through the execution of this strategy, which was anchored on Dr. Kaplan and Norton’s strategy management system, and its local adaptation called the Performance Governance System (PGS), the Army has achieved milestone and recognitions. In 2014, it reached the PGS institutionalized status, followed by being awarded with the Islands of Good Governance in 2015,” Alberto said.

The Philippine Army broke down its 18-year ATR into three base camps to create a sense of urgency in achieving its vision to be a world-class army that is a source of national pride. In 2016, it aimed to be a well-equipped Army that has established a respectable image in Southeast Asia. By 2022, it expects to be a modern and respected Army in Asia. By 2028, it aims to fully realize its potential as a world-class army.

Alberto narrated that with a roadmap in place, the Philippine Army set out to work towards its vision. The Army sought industry experts and even its known critics to make up its Multi-Sector Advisory Board (MSAB), a group tasked to review its performance and provide unbiased advice on its initiatives implemented during and beyond the PGS, to help maintain its focus on its vision.

The organization also created the Army Governance and Strategy Management Office (AGSMO) to track performance and make sure the different units’ Balanced Scorecards are aligned to the Army’s overall strategy. Aside from AGSMO, the ATR also depends on the Army Strategy Management Council (ASMC). This comprises of executive officers responsible for operationalizing the strategy and are accountable to the strategic objectives.

“The Philippine Army did not stop at cascading the strategy to the unit level. The organization reached out to its soldiers and civilian employees and encouraged them to create Personal Balanced Scorecards,” Alberto said.

“These personal scorecards help in creating a sense of accountability to the ATR, as well as motivate everyone to become goal-oriented in both their professional and personal lives. This scorecard system has already been institutionalized in the Army, a notable accomplishment for the organization,” he added.

After only a few years since the ATR’s formulation, the Army’s determination to transform itself and regain a positive perception from the people has already reaped results: its net trust rating greatly improved from 52% to 75%; its operational readiness went from 67.6% to 73.0%; and soldiers’ satisfaction ratings averaged 3.9 out of 4, compared to 2.1 in 2010.

Aside from meeting its goals, the Army was also declared one of ISA’s first 12 Islands of Good Governance in 2015.

The Philippine Army passed the on-site evaluation process conducted by a team headed Mr. David McMillan, Director of the Office of Strategy Management of the Palladium Group last 22-24 January 2018.

The PA received formally received the award during the Palladium Positive Impact Summit 2018 on March 14 to 15, held in London, United Kingdom.

Philippine Navy, from budget driven to action driven
The Philippine Navy, the first national government agency to be inducted into the Hall of Fame, began its transformation journey in 2006 after recognizing the need to upgrade its capabilities and gain strategic focus.

Vice Admiral Robert A. Empedrad, PN’s flag officer-in-command said pursuing the 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 its financial, human resource, and operations monitoring and evaluation processes.

He said one example is the development of the Annual Plan and Budget Software, which resulted in increased efficiency and transparency in the management of financial resources.

“Better financial systems and budget planning have allowed the Philippine Navy to acquire strategic resources crucial to its modernization,” he added.

The automation of its payroll system has also resulted in an increase in recovered unauthorized payments to personnel from P11.4 million in 2010 to P13.7 million in 2015.

It also developed a “One Stop Shop” Clearance System and Integrated Personnel Management System, which reduced the processing time of clearances from five days in 2008 to one day in 2015.

Empedrad said these improvements in internal process led to the Philippine Navy reducing instances of corruption, and better fulfilling its mandate, as validated by a 91 percent Unified Command Satisfaction rating from the Armed Forces of the Philippines and a 91.76 percent Stakeholder Satisfaction Rating.

The Philippine Navy’s prestigious 2016 Palladium Balanced Scorecard Hall of Fame for Executing Strategy was given at the Shaping the Future through Positive Impact Summit 2017 in London on March 21. (PIA-NCR)