03 Public Sect Productivity - antonio d kalaw

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“PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT”:

1 “ PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT” by ANTONIO D. KALAW, JR., CESO I President, Development Academy of the Philippines

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2 Naimbag a bigat! (Ilocano) Magandang Umaga! (Pilipino) Good Morning! (English)

Do you know what is a GAZELLE?:

3 Do you know what is a GAZELLE ?

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4 Gazelle

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5 Leopard and Gazelle

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6 COMPETITION MEANS OUTRUNNING OUR COMPETITORS …

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7 WE NEED TO HAVE CONTINUOUS IMPROVEMENT IN THE THINGS WE DO TO BE COMPETITIVE !

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8 CONTINUOUS IMPROVEMENT IS WHAT PRODUCTIVITY IS ALL ABOUT!

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9 OUTLINE OF PRESENTATION Introduction (Leopard & Gazelle Anecdote) DAP & APO: Catalysts of Productivity & Innovation Definition of Terms The Public Sector & Government Challenges/Issues to the Public Sector & the Government Reform Initiatives in Improving Public Sector Productivity & Innovation Concluding Remarks

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10

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11 Career Executive Service Dev’t Program (CESDP) – Career Executive Service Board (CESB) Career Foreign Service Dev’t Program (CFSDP) – Foreign Service Institute (FSI) in the Department of Foreign Affairs Social Indicators Project – Social Weather Stations (SWS) Fishery Resource Management (FIRM) Program – Bureau of Fisheries & Aquatic Resources, DA Medium & Small Scale Industry Assistance Program (MASICAP) – Bureau of Small & Medium Industries, DTI DAP CONTRIBUTION TO DEVELOPMENT INSTITUTION BUILDING

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12 Productivity and Quality Movement and Institution Building Program for Decentralized Educational and Development (PRODED) – National Educators’ Academy of the Philippines (NEAP) Integrated Area Development (IAD) – Ministry of Human Settlements Housing and Land Use Regulatory Board (HULRB) Pag-Ibig Nat’l Housing Authority (NHA) Livelihood Corporation Technology Resource Center (TRC) Tondo Foreshore Project – Metro Manila Development Authority (MMDA) Olongapo Development Plan –Subic Bay Metropolitan Authority (SBMA) DAP CONTRIBUTION TO DEVELOPMENT INSTITUTION BUILDING

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13 VISIONARY FOUNDER OF DAP & THE CES Dr. ONOFRE DIZON “O.D.” CORPUZ DECS Secretary of Education UP President DAP Founding/1st President Human Settlements Commission (HSC) Founding/1st Chairman CESB Founding/1st Chairman

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14 The APO is a non-political, non-profit, and non-discriminatory inter-governmental organization whose mission is to contribute to the socioeconomic development of Asia and the Pacific through enhancing productivity, quality and innovation. Asian Productivity Organization MANDATE

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15 Each country has a National Productivity Organization (NPO)

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16 APO & DAP DAP is the NPO for the Philippines (per DAP Charter) The NEDA Director-General is the APO Director representing the Philippines in the APO Governing Body The DAP President is the: APO Alternate Director, and NPO Head of the Philippines

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17 Training Courses Seminars Workshops Study Missions International Conferences e-Learning Programs Research Study Meetings Forum Productivity Database Technical Expert Service Demonstration and Modeling Projects Observational Study Missions Bilateral Cooperation between NPOs Scholarships DAP as NPO in the Philippines of APO TYPES OF ACTIVITIES

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18 Total Quality Management 5-S Total Productive Maintenance Productivity Measurement Knowledge Management for Innovation ISO Kaizen Labor Management Cooperation Business Excellence Green Productivity Energy Efficiency Sustainable Development in Agriculture SME Development Value Chain Productivity Management Alternative Energy Promotions DAP as NPO in the Philippines of APO PROGRAMS

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20 PUBLIC SECTOR PRODUCTIVITY A FRAMEWORK OF THE INTER-OPERABILITY OF APO SECTORAL PRODUCTIVITY AREAS INDUSTRIAL PRODUCTIVITY SERVICE SECTOR PRODUCTIVITY AGRICULTURAL PRODUCTIVITY LABOR PRODUCTIVITY

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21 OUTLINE OF PRESENTATION Introduction (Leopard & Gazelle Anecdote) DAP & APO: Catalysts of Productivity & Innovation Definition of Terms The Public Sector & Government Challenges/Issues to the Public Sector & the Government Reform Initiatives in Improving Public Sector Productivity & Innovation Concluding Remarks

“PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT”:

22 “ PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT ” Title of Topic:

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23 That part of the economy that provides the basic services of Government to its citizens either by direct production, delivery or allocation “PUBLIC SECTOR”

“PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT”:

24 “ PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT ” Title of Topic:

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25 Technical Definition: Input over Output; i.e., “the more the outputs done with lesser inputs, the more productive” Layman Definition: “ Today is better than yesterday, and tomorrow can be better than today ” “PRODUCTIVITY”

“PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT”:

26 “ PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT ” Title of Topic:

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27 The ratio of government outputs to government imputs The efficiency & effectiveness of government activities The value-added created with taxpayers’ money Marc Holzer & Stuart S. Nagel “PUBLIC SECTOR PRODUCTIVITY”

“PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT”:

28 “ PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT ” Title of Topic:

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29 “INNOVATION” Something… NEW PIONEERING VALUE-ADDING UNIQUE NOVEL DIFFERENT WILD IMAGINATIVE PRACTICAL STRATEGIC REFORMS SIGNIFICANT CHANGES BREAKTHROUGH RESULTS THINKING OUT OF THE BOX INPUT THROUGHPUT OUTPUT

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30 Comprises a set of interrelated political and bureaucratic institutions that govern and exercise power in the name of “common interest.” “GOVERNMENT”

“PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT”:

31 “ PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT ” Title of Topic:

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32 “NATION-BUILDING” The evolution of a society from personal, family, tribal, community, towns, municipalities /cities, province, state/country towards becoming a nation with inter-dependent cultural traditions, religious beliefs, political system and socio-economic conditions

“PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT”:

33 “ PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT ” Title of Topic:

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34 “DEVELOPMENT” The improvement of a country and its people’s economic, political and social well-being measured with indicators such as gross national product (GNP), gross domestic product (GDP), life expectancy, literacy, levels of employment, peace and order, and the like

“PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT”:

35 “ PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT ” Title of Topic:

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36 People participation and involvement in: Visioning the future Planning Decision-making Program development Program implementation Program evaluation “PEOPLE-CENTERED” Nation Building & Development

OUTLINE OF PRESENTATION:

37 OUTLINE OF PRESENTATION Introduction (Leopard & Gazelle Anecdote) DAP & APO: Catalysts of Productivity & Innovation Definition of Terms The Public Sector & Government Challenges/Issues to the Public Sector & the Government Reform Initiatives in Improving Public Sector Productivity & Innovation Concluding Remarks

PRINCIPAL ACTIVITIES OF GOVERNMENT:

38 PRINCIPAL ACTIVITIES OF GOVERNMENT Providing a legal system Producing goods & services – defense, education, health, roads & bridges, etc. Affecting what the private sector produces, through subsidies, taxes, credit, and regulation; Purchasing goods and services from the private sector, which are then supplied by the government to firms and households; Redistributing income, e.g., conditional cash-transfer program

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39 General Public Services Defense Public Order and Safety Education Health Social Protection Recreation, Culture and Religion Housing and Community Amenities Environment Protection General Economic Affairs Sectoral Economic Affairs CLASSIFICATION OF GOVERNMENT’S FUNCTIONS

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40 Tangible and intangible public goods which are oftentimes provided by the government and for which the society pays as a whole through taxes and other means “Public Sector SERVICES”

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41 Public Order &Safety Police services Fire protection Law courts Prisons Education Pre-school Primary education Secondary education Tertiary education Health Hospital services Out-patient services Public health services Social Protection Sickness Disability Old age Survivors Family and children Unemployment Environment Protection Refuse collection, treatment & disposal Sewage systems & water treatment Pollution abatement Economic Commercial affairs Labor affairs Fuel and energy Transport Communication EXAMPLES of PUBLIC SECTOR SERVICES:

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42 OUTLINE OF PRESENTATION Introduction (Leopard & Gazelle Anecdote) DAP & APO: Catalysts of Productivity & Innovation Definition of Terms The Public Sector & Government Challenges/Issues to the Public Sector & the Government Reform Initiatives in Improving Public Sector Productivity & Innovation Concluding Remarks

CHALLENGES OF GOVERNMENT TODAY:

43 CHALLENGES OF GOVERNMENT TODAY Transforming public services to offer what citizens want while keeping taxes down Overcoming and rationalizing fragmentation, duplication, turffing of agencies, processes & programs/projects Building trust and accountability with a skeptical and demanding public Delivering public services more quickly, efficiently, effectively and flexibly Addressing issues on poverty, global /national competitiveness, climate change, international terrorism, food security, fuel & energy, etc.

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44 Rigidity Inefficiency Inferior quality Unpredictability Inequities in distribution Weak coordination of services Other bureaucratic supply failures ISSUES & CONCERNS in PUBLIC SECTOR SERVICE DELIVERY

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45 Ease of Doing Business Global Competitiveness Index Governance Indicators PERFORMANCE MANAGEMENT MEASURES IN PUBLIC SECTOR SERVICE DELIVERY

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46 1) Ease of Doing Business

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47 Measures the regulation and red tape relevant to the life cycle of a domestic small-, medium-, big-sized business firms : Starting a business, Dealing with construction permits, Employing workers Registering property Getting credit, Protecting investors, Paying taxes, Trading across borders, Enforcing contracts, and Closing a business “Ease of Doing Business”

RANKINGS on the Ease of Doing Business:

48 RANKINGS on the Ease of Doing Business 00 COUNTRY RANK 01 Singapore 1 02 Thailand 12 03 Japan 13 04 South Korea 23 05 Taiwan 46 06 Fiji 54 07 Mongolia 60 08 Pakistan 85 00 COUNTRY RANK 09 Vietnam 93 10 Sri Lanka 105 11 Bangladesh 119 12 Indonesia 122 13 Nepal 123 14 India 133 15 Philippines 144 16 Cambodia 145 17 Lao, PDR 156 Source: Asian Productivity Organization ( APO ) 2009

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49 2) Global Competitiveness Index

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50 n country INSTITUTIONS INFRASTRUCTURE 01 Singapore 6.13 6.22 02 Japan 5.08 5.69 03 Taiwan 4.82 5.63 04 Malaysia 4.63 4.97 05 Sri Lanka 4.06 3.82 06 India 4.03 3.49 07 Indonesia 3.98 3.56 08 South Korea 3.98 5.59 09 Thailand 3.95 4.84 10 Vietnam 3.80 3.56 11 Iran 3.74 3.75 12 Cambodia 3.56 2.70 13 Pakistan 3.34 2.75 14 Bangladesh 3.24 2.15 15 Philippines 3.14 2.92 16 Nepal 3.03 1.81 Global Competitiveness Index: Institutions & Infrastructure Global Competitiveness Index: Institutions & Infrastructures NOTE: Competitive ratings among APO countries where “ 1 ” corresponds to “WORST” and “ 7 ” corresponds to “BEST” Source: Global Competitiveness Report 2010

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51 Public Institutions Property rights Ethics and corruption Undue influence Government inefficiency Security Private Institutions INSTITUTIONS

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52 Transport infrastructure Quality of overall infrastructure Quality of roads Quality of rail road infrastructure Quality of port infrastructure Quality of airport infrastructure Energy & communication infrastructure INFRASTRUCTURE

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53 3) Governance Indicators

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54 Voice and Accountability Political Stability Government Effectiveness Regulatory Quality Rule of Law Control of Corruption Governance Indicators

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55 Government’s preparedness to be externally accountable Extent to which the citizens are able to participate in selecting their government, as well as enjoy freedom of expression, freedom of association, and free media Source: Kaufmann et al., 2007 1. Voice and Accountability

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56 Perceptions of the likelihood that the government in power will be destabilized or overthrown by possibly unconstitutional and/or violent means Perceptions of politically-motivated violence and terrorism 2. Political Stability/ Absence of Violence Source: Kaufmann et al., 2007

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57 Quality of public services Quality of the civil service and the degree of its independence from political pressures Quality of policy formulation and implementation, and the credibility of the government's commitment to such policies Source: Kaufmann et al., 2007 3. Government Effectiveness

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58 Ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development Incidence of market-unfriendly policies Perceptions of the burdens imposed by excessive regulation 4. Regulatory Quality Source: Kaufmann et al., 2007

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59 Extent to which citizens have confidence in and abide by the rules of society Effectiveness and predictability of the judiciary (courts, police) Quality of contract enforcement, property rights Likelihood of crime and violence 5. Rule of Law Source: Kaufmann et al., 2007

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60 Extent to which public power is exercised for private gain, including both petty and grand forms of corruption Extent of “capture” of the state by elites and private interests Source: Kaufmann et al., 2007 6. Control of Corruption

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61 25 50 75 100 GOVERNANCE INDICATORS 0

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62 QUESTION: What color(s) do you think the Philippines have to describe its “overall governance scorecard”?

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63 Governance Indicators 2010: BANGLADESH

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64 Governance Indicators 2010: CAMBODIA

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65 Governance Indicators 2010: FIJI

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66 Governance Indicators 2010: INDIA

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67 Governance Indicators 2010: INDONESIA

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68 Governance Indicators 2010: IRAN

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69 Governance Indicators 2010: JAPAN

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70 Governance Indicators 2010: LAOS

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71 Governance Indicators 2010: MALAYSIA

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72 Governance Indicators 2010: MONGOLIA

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73 Governance Indicators 2010: NEPAL

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74 Governance Indicators 2010: PAKISTAN

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75 Governance Indicators 2010: SINGAPORE

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76 Governance Indicators 2010: SOUTH KOREA

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77 Governance Indicators 2010: SRI LANKA

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78 Governance Indicators 2010: TAIWAN

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79 Governance Indicators 2010: THAILAND

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80 Governance Indicators 2010: VIETNAM

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81 QUESTION: What color(s) do you think the Philippines have to describe its “overall governance scorecard”?

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82 Worldwide Governance Indicators 2010: PHILIPPINES

OUTLINE OF PRESENTATION:

83 OUTLINE OF PRESENTATION Introduction (Leopard & Gazelle Anecdote) DAP & APO: Catalysts of Productivity & Innovation Definition of Terms The Public Sector & Government Challenges/Issues to the Public Sector & the Government Reform Initiatives in Improving Public Sector Productivity & Innovation Concluding Remarks

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84 PUBLIC SECTOR PRESSURES FOR REFORM IN THE PUBLIC SECTOR INSTITUTIONAL Globalization of the economy & political system Rise of non-state actors & supranational structures Clamor for devolution SOCIAL Social inequities Marginalization Discrimination Disintegration ECONOMIC More conducive market environment Integration of world economy Deterioration of the environment Human poverty POLITICAL Raise accountability & responsiveness of Gov’t Strengthen public institutions Reduce the size of government Restore public trust and confidence

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85 Productivity How to produce more services with less tax money? Service-orientation How to better connect with the citizens? Devolution How to make programs more responsive and effective? Competition How to use market-style incentives to root out bureaucratic mindsets/pathologies? Accountability for Results How to improve ability to deliver commitment and answerability for failures? CHALLENGES IN PUBLIC SECTOR SERVICE DELIVERY

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86 Better governance, which includes elimination of red tape and corruption Greater decentralization Greater participation and engagement of citizens More open government such as through e-government Greater accountability of the public sector COMMON OBJECTIVES IN PURSUING PUBLIC SECTOR PRODUCTIVITY AND INNOVATION Source: APO Public Sector Productivity Expert Group Meeting, 2010

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87 Output measurement and costing Contracting Privatization of public services Citizen’s Charters to set service standards UNITED KINGDOM REFORM INITIATIVES IN PUBLIC SECTOR PRODUCTIVITY AND INNOVATION

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88 Rightsizing government Procurement reform Customer service improvement IT applications Malcolm Baldridge Quality Awards UNITED STATES REFORM INITIATIVES IN PUBLIC SECTOR PRODUCTIVITY AND INNOVATION

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89 Public expenditure reform Restructuring Quality Awards ASIAN COUNTRIES REFORM INITIATIVES IN PUBLIC SECTOR PRODUCTIVITY AND INNOVATION

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90 Outcome-Focused Citizen-Satisfaction Surveys Customer-Service Standards Red-Tape Reduction e-Government One-Stop-Shop Public-Private Partnerships Horizontal Collaboration CANADIAN REFORM INITIATIVES IN PUBLIC SECTOR PRODUCTIVITY AND INNOVATION

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91 Early /Past Initiatives Current Initiatives Proposed Initiatives PHILIPPINE REFORM INITIATIVES IN PUBLIC SECTOR PRODUCTIVITY AND INNOVATION

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92 EARLY PHILIPPINE REFORM INITIATIVES ON PUBLIC SECTOR PRODUCTIVITY PERIOD TERM INITIATIVES 1973-1986 Marcos DAP’s P&Q promotion Institution Building WIT (QC) in Gov’t 1988-1992 Aquino Government Productivity Improvement Program (GPIP) 1995-1998 Ramos National Action Agenda for Productivity (NAAP) 1998-2000 Estrada Medium-term NAAP

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93 Philippine Quality Awards (RA9013) -DTI/DAP/PSQ Rationalization Program – DBM/CSC Government Procurement Reform Act (RA9184) – DBM/GPPB Integrity Development Review (IDR) – OMB Integrity Development Action Plan (IDAP) – PAGC Moral Renewal Program (MRAP) - PAGC CURRENT PHILIPPINE REFORM INITIATIVES ON PUBLIC SECTOR PRODUCTIVITY

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94 CURRENT PHILIPPINE REFORM INITIATIVES ON PUBLIC SECTOR PRODUCTIVITY Organizational Performance Indicators Framework-Major Final Outputs (OPIF-MFO) – DBM ISO Certified Quality Management Systems (QMS) – DBM/DAP/DTI/DILG/OP Anti-Red Tape Act (RA9485) – CSC/DAP/OMB Performance Management System - Office Performance Evaluation System (PMS-OPES) – CSC National Guidelines on Internal Control Systems (NGICS) – DBM Balanced Score Card (BSC)-based Performance Governance System (PGS) – DAP/ISA

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95 PROPOSED PHILIPPINE REFORM INITIATIVES ON PUBLIC SECTOR PRODUCTIVITY AND INNOVATION Harmonization & Integration of: OPIF-MFO, PMS-OPES, and BSC-PGS Outcome-Focused Citizen-Satisfaction Surveys towards Customer-Service Standards Formulation ARTA: Continuous Streamlining of Processes ARTA: Report Card Surveys & Recognition Awards

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96 PROPOSED PHILIPPINE REFORM INITIATIVES ON PUBLIC SECTOR PRODUCTIVITY AND INNOVATION Development of Productivity Specialists in Government Maximizing Government Resources thru Public-Public Partnerships Enhancing Service Delivery thru Public-Private Partnerships Knowledge Management for the public sector e-Governance/Expansion of One-Stop-Shop thru Inter-Agency Horizontal Collaboration

OUTLINE OF PRESENTATION:

97 OUTLINE OF PRESENTATION Introduction (Leopard & Gazelle Anecdote) DAP & APO: Catalysts of Productivity & Innovation Definition of Terms The Public Sector & Government Challenges/Issues to the Public Sector & the Government Reform Initiatives in Improving Public Sector Productivity & Innovation Concluding Remarks

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98 GOAL To make the Public Sector more: Effective & Efficient …in fulfilling our respective mandates.

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99 Agency-Centered Citizen-Centered Position Based Power Shared Leadership Individual Legacy Shared Values Rule-Centered People-Centered Independent Action Participation Status Quo-Oriented Reform-Oriented JOURNEY OF THE PUBLIC SECTOR IN PRODUCTIVITY & INNOVATION TOWARDS PERFORMANCE EXCELLENCE

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100 JOURNEY OF THE PUBLIC SECTOR IN PRODUCTIVITY & INNOVATION TOWARDS PERFORMANCE EXCELLENCE Bureaucratic Set-up Program-Based Centralized Decentralized Stand-Alone Systems Integrated Systems Agency-Oriented Partnerships Budget-Driven Revenue-Driven Resource Integration Resource Sharing

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101 OUTCOME To attain/achieve… Customer /Citizen Satisfaction Conducive Environment for Business Prosperity & Growth Sustainable Socio-economic Development Reduce Poverty & Improve Quality of Life National & Global Competitiveness

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102 GOVERNMENT OF THE FUTURE “The challenge to government is to move away from opportunistic reform towards more strategic reform: develop a clear vision with passion, building a constituency of stakeholders, devising tactics to achieve measurable results, and communicating this vision and the anticipated results to the public.” OECD, Government of the Future

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103 CLOSING ANECDOTE “The Microsoft Boy”

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104 “ Kaya NATIN ito! ” “WE can do it!” “Yes, WE can.” “AMEN!”

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105 Agyamanak! (Ilocano) Salamat po! (Pilipino) THANK YOU! (English)

“PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT”:

106 “ PUBLIC SECTOR PRODUCTIVITY & INNOVATION IN SUPPORT OF PEOPLE-CENTERED NATION-BUILDING & DEVELOPMENT” by ANTONIO D. KALAW, JR., CESO I President, Development Academy of the Philippines

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