1 Cheers to new Partners!Dr. Jesus P. Estanislao, ISA founding chairman, congratulates the six Performance Governance System (PGS) Partners moving up the pathway.

2 Opening ActThe NEA Lights and Sounds Chorale gave a rousing musical performance with its heartfelt rendition of “Tayo’y Mga Pinoy.”

New PGS PartnersISA signed three Memoranda of Understanding with three new PGS partners: 3 The Department of Interior and Local Government, represented by Sec. Jesse M. Robredo (center);4 The Development Academy of the Philippines (DAP), represented by its president, Antonio Kalaw, Jr.; and with the League of Cities of the Philippines (see story on page 1).

New ISA Associates5 Mr. Joseph Ferdinand Escobal, Facilitator and Director of True North Strategic 6 Ms. Marie Escueta, EDUCHILD Executive Director, who also graciously lent her hosting talent to the event

The “Christmas Capital of the Philippines” becomes the second Philippine public institution to join the ranks of more than 130 of the world’s best-managed organizations.

The City of San Fernando in Pampanga has been elevated to the Palladium Balanced Scorecard (BSc) Hall of Fame for Executing Strategy – the “gold standard” for organizations that use the Harvard-pioneered Balanced Scorecard management system to achieve and sustain breakthrough results.

City Mayor Oscar S. Rodriguez received the trophy from Palladium Group founder and director Dr. David Norton and Asia Pacific managing director Matthew Tice at the awards ceremony at Sofitel Hotel last Sept. 22. Another Philippine organization elevated to the 2010 Hall of Fame was the Lopez-owned First Philec Solar Corporation.

“After Iloilo City, we now have the City of San Fernando to receive a recognition as prestigious as the Palladium Hall of Fame. With one city at a time, the country can embrace good governance using the BSc as a tool to measure performance,” said Institute for Soldarity in Asia (ISA) chairman Jesus P. Estanislao. Mr. Tice said the country now tops the region with the most number of institutions at the Hall of Fame.

“We are very much honored to receive the BSc Hall of Fame Award,” said Mayor Rodriguez. “This prestigious award not only helps reaffirm the status of San Fernando as a world-class city, but also raises our nation’s pride by having globally recognized local government units.”

The Palladium Group commended the city for its breakthrough results that include the following: • having the largest percentage of middle-class families at 38%; • registering 66 new businesses with a capital of P5 million and up; • posting a P506-million increase in local income;• having a 99% client satisfaction rating; and • reducing the standard processing time for business permit applications to 1.28 hours.

For the full stories, download the soft copy of the MKAP Bulletin on www.isacenter.org.

More cities to follow governance pathwayPutting more teeth into President Benigno S. Aquino III’s vow to use governance as a platform for social development, the League of Cities of the Philippines (LCP) has partnered with the Institute for Solidarity in Asia (ISA) for a project that will roll-out the Performance Governance System in LCP’s 120 member-cities.

The project will start this September. It seeks to create a strategy map that will enable the cities to pursue a single strategic and unified direction to attain their vision. Signing the agreement last Sept. 21 were LCP president Oscar Rodriguez and ISA president Francisco C. Eizmendi.

The Institute for Solidarity in Asia (ISA) hosted a cocktail reception at the Sofitel Philippine Plaza last Sept. 22 to welcome its new Partners and Associates. The event also capped a successful afternoon of Revalida sessions and served as a celebration of ISA’s growing family of helping hands.

ISA raises a toast to new Associates, Partners

5 snapshots

Day Zero: Dinagyang Festival

Hosted by the City of Iloilo

SAVE THE DATE!

New Sectoral Partners7 Dr. Jesus Estanislao and Mr. Francisco Eizmendi with Ms. Vicci M. Tomas and Ms. Cathy Hufana-Ang of the Institute of Internal Auditors of the Philippines (IIAP)8 Dr. Estanislao and ISA President Francisco Eizmendi with Mr. Chris Frianeza, Director General of the Philippine Chamber of Commerce and Industry

US rewards world’s ‘most hardworking people’ with $434-M anti-corruption grant

The Millennium Challenge Corporation (MCC), an independent organization funded by the US Congress to fight global poverty, recently approved a $434-million grant with the Philippine government to run anti-corruption reforms in the public sector.

In her speech at the signing ceremony last Sept. 24 in New York City, US Secretary of State and MCC Chairperson Hillary Rodham Clinton reiterated the organization’s desire to help Filipinos help themselves.

“I’m not sure there’s any group of people anywhere in the world that works harder than Filipinos,” Sec. Clinton declared. “But let’s be very honest here. Too many of them feel like they cannot progress in their own country.”

According to the MCC, the five-year compact with the Philippines is intended to support reforms and investments to modernize the Bureau of Internal Revenue, expand and improve a community-driven development project, Kalahi-CIDSS, and rehabilitate a secondary national road in Samarprovince.

In response to MCC’s announcement, President Benigno Aquino III reiterated the administration’s fierce commitment to governance. “The Performance Governance System indicators are being refined and already introduced in six national agencies – education, health, public works, transportation, internal revenue, and the police,” said Mr. Aquino, assuring Secretary Clinton and the MCC that the agencies in-charge will carry out the MCC-funded projects with transparency and internal integrity.

“All the aid, all the assistance in the world would be meaningless if it ended up stolen or misspent,” the President stressed. He thanked the MCC for entrusting the Philippines with the resources needed to continue the fight against poverty.

The Fine Prints

MOMENTOUS OCCASION (L-R) Finance Secretary Cesar Purisima, President Benigno Aquino III, MCC CEO Daniel Yohannes, and US Secretary of State Hillary Clinton presided the signing ceremony at the Waldorf Astoria Hotel in New York City last Sept. 24.

Coverage of the Philippine Compact• Revenue Administration Reform Project ($54.4 million)• Kalahi-CIDSS ($120 million)• Secondary National Roads Development Project ($214.4

million)

Administrative Costs • approximately $37 million: administrative and oversight

costs of the projects, including the cost of administration, management, and auditing as well as fiscal and procurement agent services and environmental and social oversight

• $8.26 million: cost of monitoring and evaluation of the compact

Expected Results• Kalahi-CIDDS project: to benefit over 5 million by 2030• Road project: to impact nearly 300,000 people• Revenue Administration Reform Project: expected to have

broad impacts throughout the economy, thus making nearly all citizens project beneficiaries

Source: MCC Fact Sheet, Aug. 9, 2010

6 behind the headlines

01.23.11The Mahal Ko Ang Pilipinas (MKAP) Bulletin is published by the Institute for Solidarity in Asia, a non-profit organization that advocates public governance reform.

ISA Secretariat Office:9/F Philamlife Tower 8767 Paseo de Roxas St., Makati City, 1200Tel: 886.36.52 or 845.28.67www.isacenter.org

Their goals are simple and the journeys they took to get to the top are arduous and long. And these five world-class institutions – all belonging to the Palladium Balanced Scorecard Hall of Fame for Executing Strategy® – shared a clear strategy.

“For most of the world, Palladium Group founder Dr. David Norton said, “there are islands of strategy and islands of execution.”

For Infosys Technologies Limited, one of the world’s biggest IT firms, these islands are connected by a single bridge: a strategy road map that will help Infosys become a “transformation partner” to all its clients. Harnessing powerful technology and investing in an array of processes and systems, the IT leader is able to shepherd its 160,000-strong organization

towards this single direction. Using a “surround sound,” Infosys ensures that its strategy is communicated in all directions of the organization.

Like Infosys, size also matters to Lockheed Martin Enterprise Information Systems, a U.S. aerospace, defense, and global security company. With more than 140,000 employees worldwide and 939 facilities around the world, the company used the Balanced Scorecard (BSc) to remain on top of its game. This process involved asking questions such as “where else can we do this” and “what can we innovate” after passing each company milestone.

After using the BSc to create cross-functional “theme teams,” Kiwibank became New Zealand’s fastest-growing financial institution. It also helped the International Islamic University Malaysia “think out of the box” as a non-profit organization by linking its budget to strategy.

SUMMIT SPEAKERS (Clockwise from top) Prof. Dato’Mohd Azmi Omar, Dean of Malaysia’s International Islamic University; Lyn Hamill, Director Strategic Planning, Mater Health Services (Australia); Craig Holloway, Head of Strategy Execution, Kiwibank Limited (New Zealand); Sanjay Purohit, Vice President & Group Head-Planning and Assurance, Infosys Technologies Limited (India); and Lance Freedman, Strategy Management Subject Matter Expert, Lockheed Martin (USA)

2 3 4global best practices spotlight

Secret strategies of a bank, a hospital, a defense contractor,a university, and a six-billion dollar IT company

A 104-year-old mission-oriented organization, Australia’s Mater Health Services, also adopted the BSc model to face the challenges of sustainability.

World’s apart, these five organizations adopted clearstrategic roadmaps and saw their organizations transform into world-class status.

If a picture indeed paints a thousand words, then the strategy map should prove to be a powerful tool in an organization’s strategy – whether it be competing in the global arena, battling corruption, or navigating the tumultuous waters during crises.

In a roundtable discussion at the 2010 Palladium Asia-Pacific Summit on Sept. 22, Dr. David Norton, Palladium Group founder and director, and Dr. Jesus P. Estanislao, founding chairman of the Institute for Solidarity in Asia (ISA), discussed how the Balanced Scorecard (BSc) strategy map could serve as a powerful communication tool to enable all stakeholders to understand the strategy of an organization, and translate it into actions they can take to help it succeed.

“The strategy map provides a visual representation of the organization’s strategy. Successful leaders may have the intuition to succeed, but they still structures. They liked the strategy map because this supports their intuition,” said Dr. Norton, co-author of the Harvard-designed BSc with Dr. Robert Kaplan.

Pioneered in the 1990s, the BSc cut a path in business as a more rigorous way to measure performance by measuring what is usually considered incalculable, such as human capital, information and culture. In the Philippines, the ISA adopted the BSc model and applied it to public governance.

Dr. Estanislao said having a strategy map is also important during crisis situations and in pursuing governance reforms. “In a crisis, you can moderate the greed by communicating well, especially when you cut down on resources,” he said.

Both experts believe “more missionaries are getting into organizations,” which should “bring about the wheels of change, especially in the bureaucracy.”

Armed with a strategy map, reformists could “drown the evil of corruption in an abundance of good” by serving as a mechanism to promote transparency in the organization, Dr. Estanislao stressed.

Leaps and bounds:6 PGS Partners level up

The government must ensure a level playing field to foster dynamism in the private sector, fuel confidence and spur greater economic activity.

“If you are fair and consistent in the application of laws and rules, then very quickly we can be the country and the economy that we can only dream about today,” said Elpidio Ibañez, president of First Philippine Holdings Corp.

In a presentation made on behalf of Oscar M. Lopez, chairman emeritus of Lopez Holdings Corp., Mr. Ibañez shared the conglomerate’s insights into driving strategy execution at the Palladium Asia-Pacific Summit last Sept. 23.

He attributed the Lopez Group’s enduring leadership to its survival strategies in the face of competition and often in an uneven playing field, often sacrificing personal gain in favor of “constantly serving stakeholders’ guaranteed success.”

Mr. Ibañez also apoke about “accepting the cost of doing business” and having an involved leadership that plays an active part in pushing for real change.

Level playing field key to a dynamic private sector

First Philippine Holdings Corp. President Elpidio Ibañez at the Palladium Summit

The events that transpired at the Leyte and Samar Rooms of the Sofitel Philippine Plaza on Sept. 21 would have made Blaise Pascal very proud. Earnestness, in the words of the 16th century mathematician and philosopher, is “enthusiasm tempered by reason.”

On that day, six national institutions presented in a series of Revalida sessions their earnest vision for a meaner, cleaner system of governance.The Performance Governance System (PGS) Revalida is a rite of passage for ISA-mentored national government agencies, local government units, and professional associations to determine their level in the Governance Pathway.

During the event, PGS Partners demonstrated and reaffirmed the successes they have achieved, as measured in their respective Governance Scorecards. Presenting before a panel of experts chaired by ISA President Francisco C. Eizmendi, Jr. were the following:• Development Academy of the Philippines (DAP), led by its president, Antonio D. Kalaw, Jr., and Ms. Magdalena L. Mendoza, senior vice president for programs; • the Department of Social Welfare and Development (DSWD), represented by Secretary Corazon “Dinky” Soliman, Undersecretary Alicia R. Bala, and Assistant Sec. Mateo G. Montano; and • the Philippine Army, led by Col. Angelito M. De Leon.

In the latter stages of the PGS, three institutions exhibited their hard-earned achievements before a panel headed by ISA Founding Chairman Dr. Jesus P. Estanislao. Under the direction of Undersecretary David J. Lozada, Jr. and Assistant Sec. Pauline Jean P. Rosell-Ubial, the Department of Health (DOH) succeeded in its quest to become PGS-Compliant. Commodore Jose Luis M. Alano steered the Philippine Navy’s aggressive campaign to become PGS-Proficient. The National Electrification Administration’s (NEA) three-year crusade, piloted by Administrator Edita S. Bueno, paid off as it achieved PGS-Institutionalized status.

Conferment rites for the six PGS Partners were held at the Palladium Asia-Pacific Summit on Sept. 23. Present at the ceremonies were Dr. Jess Estanislao and Mr. Frank Eizmendi of ISA, and the Palladium Group Founder Dr. David Norton and Asia-Pacific Head Matthew Tice.

Desire, Blaise Pascal wrote, is the cause of all our voluntary acts. The constant introduction to and movement of partners in the Governance Pathway is proof that many significant elements in society are moving in accordance with the vision of a justly and efficiently governed nation.

SCENES AT THE REVALIDA(From top) No other than DSWD Secretary Dinky Soliman defended the governance scorecard of the department. Commodore Jose Luis Alano’s three-year crusade to make the Philippine Navy PGS-Proficient finally ended. A panel of experts review the DAP’s governance scorecard.

Of strategy maps, missionaries, and governance devils

ROUNDTABLE DISCUSSION (L-R) Palladium Group Founder Dr. David Norton, ISA Founding Chairman Jesus Estanislao, and moderator Matthew Tice, Managing Director, Palladium Group (Asia Pacific), discuss the challenges of governance and strategy execution.

Founded in 2000, the Palladium Balanced Scorecard Hall of Fame for Executing Strategy® program today has a roster of 140 honorees that span the private and public sectors in more than 20 countries. Winners are selected based on the quality of their BSC implementation and the results they demonstrate over a period of at least two years. Go to www.thepalladiumgroup.com for more details.