Strategic Planning Proposal for the Finance Office Office of the President-Proper

Prepared by:

Checked by:

Rimel D. Evaristo Presidential Staff Assistant

Elizabeth G. Tejano Division Chief Planning and Management Division

Approved by:

Gloria M. Bundoc Director IV Finance Office

Presented to:

Hon. Nora C. Oliveros Deputy Executive Secretary for Finance and Administration



What is Strategic Planning Strategic planning is an organization's process of defining its strategy or direction, and making decisions on allocating its resources to pursue this strategy. In order to determine the direction of the organization, it is necessary to understand its current position and the possible avenues through which it can pursue a particular course of action. While strategic planning may be used to effectively plot an organization’s longer-term direction, one cannot use it to reliably forecast how the economy will evolve and what issues will the government face in the immediate future. Therefore, strategic innovation and tinkering with the "strategic plan" have to be a cornerstone strategy for the Office of the President-Proper to survive the turbulent “business” climate and helping the administration fulfill its social contract with the Filipino people. In many organizations, this is viewed as a process for determining where an organization is going over the next year or – more typically – 3 to 5 years (medium term), although some extend their vision to more than 5 years (long term). Strategic planning is the formal consideration of an organization's future course. All strategic planning deals with at least one of three key questions among others: "What do we do?" "For whom do we do it?" "How do we excel?" As strategic planning focuses on dealing with the everyday course of an organization’s existence, change as a continuous phenomenon must be acknowledged. Any organization must be able to commit its employees to exhibit a positive attitude towards the acceptance of change. As Blackerby (1994b) defines strategic planning as "... a continuous and systematic process where people make decisions about intended future outcomes, how outcomes are to be accomplished, and how success is measured and evaluated." He further states that strategic planning must include a mission (vision) statement, a needs assessment, strategic objectives (goals), outcome measures (to measure the success of achieving the objectives), strategies to achieve the objectives, and procedures to measure actual and planned performance. As true to any other organization, performing a strategic planning in a government agency, more so in a national level, entails a lot of work and needs support of the higher management – in this case the Office of the Executive Secretary, to be successful. As Jones (1996) put it in his article, “The most frequent criticism of reinvention, reengineering, and quality improvement processes in government is the alarmingly low success rates they seem to have. Lack of top or middle-management support is responsible for some failures, but another factor is often present as well: the lack of comprehensive strategic planning, both for the reinvention effort and for the organization as a whole.”

Running head: STRATEGIC PLANNING PROPOSAL FOR THE FINANCE OFFICE Why Strategic Planning in the Finance Office Since the early 1970’s, government leaders have become increasingly interested in the strategic planning as a result of the wrenching changes that have beset the public sector (Eadie 1983).1 These changes have significantly affected the style of administration of laws and policies of governmental bodies.


Initially, the Finance Office of the Office of the President-Proper will pilot the strategic planning process. As an integral part of the Common Staff Support System of the Office of the President, the Finance Office is tasked to render auxiliary and support services for the internal administration of the OP-Proper. 2 As a forefront in the highest office in the country, the Finance Office provides fiscal management and other related services for the attainment of the organizational goals of the Office – this being the reason why strategic planning process is highly advisable to be implemented first in this office. The implementation of strategic planning in the Finance Office will further streamline the functions of each division thru the careful study and analysis of the strategic planning team which is aimed to result to a more accurate and efficient performance of a completed staff work. Background of the Office3 The Finance Office – constituted by the Accounting Division, the Budget & Fiscal Division, the Cashiering Division, the Payroll & Voucher Division and the Planning & Management Division – is responsible for the proper and timely allocation of funds to support approved programs, projects and activities and the appropriate management control and accounting of funds of the various offices of the OP-Proper. It administers its custodianship function through the efficient and effective budgetary and fiscal control. The Finance Office also gathers and provides relevant data and assists top management in the formulation and consequently, implementation of the OP’s financial policy program. It is likewise responsible for the monitoring of proper and efficient utilization of funds in relation to the attainment of performance targets of the various OP offices. The Finance Office is guided by the following principles: • • • •

Accountability and Transparency Commitment Service Excellence Culture of Professionalism

John M. Bryson and William D. Roering, “Initiation of Strategic Planning by Governments,” Public Administration Review, Vol. 48, No. 6 (Nov. - Dec., 1988), pp. 995. 2 Sec 28(4), Chapter 9, Book III, Executive Order No. 292 dated July 2, 1987 otherwise known as “The Revised Administrative Code of 1987”. 3 “Office of the President of the Philippines – Finance Office Service Manual” pp. 4-5.

Running head: STRATEGIC PLANNING PROPOSAL FOR THE FINANCE OFFICE Vision The Finance Office envisions itself to be an effective and efficient instrument of the Management as a common staff support for the internal administration of the Office of the President towards achieving a high degree of good governance. Mission The Finance Office upholds the state policy of promoting a high standard of ethics in public service. Grounded on the principle that public office is a public trust, it seeks to achieve its organizational goals by promoting a culture of service delivery excellence through professional competence, ethical and moral Objectives The Finance Office, as part of its objectives, pledges commitment of the following: 1. Uphold the principles of integrity, competency and observe ethical standards provided in the Code of Conduct and Ethical Standards for Public Officials and Employees (RA 6713); 2. Ensure that compliance with OP policies and procedures, budgeting, accounting and auditing rules and regulations particularly on the regularity, propriety and completeness of documents are adhered to on all financial transaction of the Office of the President; 3. Observe prudent and judicious implementation of program of expenditures in accordance with budgetary allocations through monitoring and control of financial transactions of offices under the Office of the President as well as locally-funded projects in line with the fiscal policy of the government;


4. Ensure that due professional care is exercised in the evaluation of budget proposals, preparation of the comprehensive budget estimates of the Office of the President and its locally-funded projects as well as for the effective implementation and accountability of the budget execution; 5. Maintain effective communication and coordination pertaining to fiscal concerns to all offices with financial transactions with the Office of the President; 6. Ensure that systems, methods and procedures of the office are improved and updated through continuous review to efficiently and effectively perform its functions; 7. Cooperate and support government programs vigorously especially in its energy conservation thrust.



There has been a relative difference when it comes to strategic planning between the private and public sectors. In the private sector, many measures of success relate to the profitability of the company and all the comparisons have a common basis - the two factors that make success relatively easy to identify. However, measuring performance in government organizations can often be difficult. Government managers can seldom measure success of strategic objectives in monetary terms; instead, they must frequently measure success in terms of the percentage increases and decreases in some external effect (Blackerby,1994b). There is no single approach to strategic planning, and different institutions plan in different ways. This process shall be presented to the Office of the Deputy Executive Secretary for Finance and Administration for review. Changes and modifications will be done accordingly to tailor fit the strategic needs of the Finance Office and will be subject to implementation upon approval. The figure below presents the proposed Strategic Planning Process.

A Strategic Plan Team (StratPlan Team) must be organized who will be the brain of the process. This team must be composed of the Division Chiefs as they are the ones who are better familiar with the processes involved in the everyday business of the Finance Office. The StratPlan Team shall be led by the Head of Office.

Running head: STRATEGIC PLANNING PROPOSAL FOR THE FINANCE OFFICE Although planning will be undertaken by the Director and Division Chiefs, rank and file employees will need to make themselves familiar with this strategic planning process, and the associated monitoring and resource allocation arrangements.


Based on the Service Manual of the Finance Office, there already exist a Mission, Vision and Objectives which is observed and followed by the entity. The next thing to do is align these with the targets/goals to be defined by the StratPlan Team. A demographic census of the employees in the Finance Office must be first conducted including the qualifications background taken into consideration and the table below to be filledup. Number of Employees Male Female Total Not yet graduated (including those currently taking up college or special courses) Graduate of special courses (courses less than 4-years including short-term courses) Undergraduate (those who finished any 4-year degree course) Graduate (PhD and Masteral degree holders including those who are currently taking up further studies) Professionals (CPA, Lawyer, Engineer etc.) Company culture and employee personality also play vital roles in identifying the strengths and weaknesses of an organization. Through this, a more definite and concrete steps can be figured out to carry out a successful strategic planning process. This being said, Organizational Climate and Employee Personality surveys must be conducted. These surveys will be series of questionnaires intended to identify where the employees are now in terms of academic readiness and their tendencies when subjected to change. The Organizational Climate Survey examines employee opinions about the quality of their organization's work climate and can be used to identify opportunities for workplace improvements. Through this survey, the following information can be collected: a. Role-Clarity: Employees clearly understand their job duties and their role within the organization b. Employee/Management Relations: Employee relationships with management are based on trust, cooperation, open communication, and employees believe management is effective

Running head: STRATEGIC PLANNING PROPOSAL FOR THE FINANCE OFFICE c. Respect: Employees value and feel values by their co-workers and the organization d. Communication: Important information is communicated effectively, and employees believe they have a voice in the organization e. Performance/Reward Systems: Employees performance is fairly evaluated, and they are adequately rewarded for their contributions f. Career Development: Employees are provided with adequate training/development opportunities to improve their professional skills g. Decision-Making/Coordination: Decision-making, delegation, and coordination are effective h. Innovation: Work methods are innovative and employees are encouraged to be creative and express new ideas i. Relationships: Employee and customer needs are valued by the organization j. Teamwork/Support: Employees are encouraged to be team players and are provided the support needed to perform effectively k. Quality of Service: Employees are proud of the quality of service provided by their work team and the organization l. Conflict Management: Conflicts are handled openly and fairly and innovative ways of preventing conflicts are used throughout the organization m. Morale: Employees are motivated to perform well and morale is high


n. Direction/Strategy: Employees understand the direction the organization is headed and the organization's vision and goals Employee Personality Survey on the other hand is a standardized measure to reveal aspects of an individual's character or psychological makeup. Though personal bias of the test taker through “respondent faking” can be a possible hindrance in the actual scoring and interpretation of test scores, personality tests are still considered a powerful tool in evaluating an employee and how he compares with his peers with attitude and work performance combined. The widely used employee personality surveys are: 1. Myers-Briggs Type Indicator (MBTI) is a psychometric questionnaire designed to measure psychological preferences in how people perceive the world and make decisions. This 16-type indicator test is based on Carl Jung's Psychological Types, developed during World War II by Isabel Myers and Katherine Briggs 2. The 16PF Questionnaire (16PF) was developed by Raymond Cattell and his colleagues in the 1940s and 1950s in a search to try to discover the basic traits of human personality using scientific methodology. The test was first published in 1949,



and is now in its 5th edition, published in 1994. It is used in a wide variety of settings for individual and marital counseling, career counseling and employee development, in educational settings, and for basic research. 3. The Revised NEO Personality Inventory, or NEO PI-R, is a psychological personality inventory; a 240-item measure of the Five Factor Model: Extraversion, Agreeableness, Conscientiousness, Neuroticism, and Openness to Experience. Additionally, the test measures six subordinate dimensions (known as 'facets') of each of the "FFM" personality factors. Any or combination of these personality tests can help in measuring the employee’s character make-up.

The First Phases of the StratPlan The five (5) Division Chiefs of the Finance Office shall convene on a designated date agreed upon by all. A Strategic Planning Workshop shall be scheduled to be attended by all Division Chiefs to be able to meet the following objectives: 1. Ensure each participant understands the components of the strategic planning process 2. Ensure each participant is provided with the tools to facilitate the process 3. Ensure each participant has the opportunity to clarify the organization’s lines of business and mandate 4. Ensure each participant understands their client base 5. Provide participants with the information needed to support the identification of strategic issues 6. Provide the opportunity to write goals for a specified time frame. The strategic planning workshop will mark the first two phases of the strategic planning process. The purpose of planning is to improve the chances of reaching desirable possible outcomes. The benefits of planning enable an organization to: a. prepare for contingencies that could prevent it from attaining its goals b. prepare a framework for the organization’s orderly growth and progress, and

Running head: STRATEGIC PLANNING PROPOSAL FOR THE FINANCE OFFICE c. have a strategy for the allocation of resources in a manner that will allow the organization to meet its goals4 Review of the Mission and Vision will help in the articulation of the actual and desired physical, social, or economic outcome of the Finance Office. During the workshop, each division shall present their own mission and vision and such shall be checked to see if it is parallel with the existing Mission and Vision of the Finance Office. This is to see if there are amendments needed to the existing one.


Environmental Scan The review of environments of an entity includes the review of both the external and internal components that affects the operation of the office as a whole. Review of external environment includes review of: a. Forces and trends (political, economic, social and technological) b. External clients Review of internal environment includes review of: a. Resources (employee competencies, current technology in use) b. Present strategy (overall strategy, per division strategy, current set-up) c. Performance (employee rating) The internal analysis can identify the firm’s strengths and weaknesses while the external analysis will reveal the opportunities and possible risks which maybe threat to the organization’s success.

Analyzing Strategic Issues Given the information in the environmental scan, the office should match its strengths to opportunities identified while addressing its weaknesses and risks. In analyzing the strategic issues to be faced by the Finance Office the following should be given importance: a. Priority issues of each division b. Goals of each division and eventually the overall goals of the office

California State Department of Finance ,“Strategic Planning Guideliness” (1998), p. 7

Running head: STRATEGIC PLANNING PROPOSAL FOR THE FINANCE OFFICE c. Technology needed to help reach the goal d. Performance indicators to measure the success of the strategies set




Strategy Formulation After the careful analysis of the SWOT and using the same to analyze the strategic issues to be faced by the Finance Office, the members of the StratPlan Team may now interpret the data to be able to formulize strategies. These strategies are to be implemented by means of programs, budgets and procedures. A careful analysis of the resources of the Finance Office is critical in this segment of the process as implementation will involve the organization’s entire resources including the employees and to motivate the staff to achieve the desired outcomes.

Implement the Strategy The manner in which the strategy is to be implemented is also crucial in the success of this initiative. It can have a significant impact in the each employee does his/her work. The Division Chiefs must be clear and careful in communicating to the staff each strategy and the reason behind it. Otherwise, the implementation itself may be a risk factor for the success of the entire objective of this Strategic Planning Process.

Results and Review Careful gathering of data based on the results in also critical in analyzing success of the entire planning and implementation of the process. As there will be adjustments to be made as needed, each result must be taken note of and must be monitored based on the performance indicators set forth in the middle of the process. Evaluation and control may consist of the following: 1. Define parameters to be measured 2. Define target values for these parameters 3. Perform measurements based on performance indicators 4. Compare measured results to pre-defined standards 5. Make necessary changes 6. If needed, review the entire Strategic Planning Process



Appendices Sample Forms and Guides, Questionnaire