Streamlining the philippine bureaucracy thru entrepreneurship development
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Transcript of Streamlining the philippine bureaucracy thru entrepreneurship development
A 2-in-1 Approach to Streamline the
Bureaucracy while Stimulating more
Economic Activities in the Provinces
Hilario P. Martinez
Motivating Entrepreneurship in Government Workforce to
Streamline the Bureaucracy
1
The CHALLENGE
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Recommending a Strategy
Develop Entrepreneurship among Government Employees for an Innovation-
Inspired Corps of Civil Servants and a Productive Post-Service Citizenry
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Vision Statement
It is the vision of the State
to enhance the human
and intellectual capital of
the bureaucracy to ensure
delivery of quality public
service and a healthier
and more productive life
of its employees after
their tour of duty
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Goal and Objective
The strategic goal shall be to ensure the continuous flow
of innovations and development-oriented
government programs and projects
The strategic objective shall be to ensure the
maintenance of highly competitive government
employees and the creative employ of such resources,
in-service and beyond
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HUMAN RESOURCE SITUATION IN PHILIPPINE PUBLIC SERVICE
6
Competitive government employees shift to private employment upon the instance of better opportunities while the majority opt to pursue
public service until retirement
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OVERSEAS
PRIVATE SECTOR
SOME GOVERNMENT
EMPLOYEES
7
Mandatory retirement at age 65, optional at 60 years old
Nearing 60
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Will there be another salary
increase? ...getting tired...
What will I do after? How
will I do this?
Will I have enough to tide me over? My
medicines . . .
8
The Government is the single biggest employer of over 1.5 million workers
Number of Personnel Fund for Personal Services
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too
little
MOOE
& CO
9
Qualification standards for employment and promotion
Private Enterprises Government Agencies
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Education & Eligibility
CSC-protected
security of tenure
HRD
10
How did it get to this situation?
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Tour of duty policy in
government service: at
least 20 years in the
service
Qualification standards, hiring and promotion practices in government employment
are not at par with the
best HR practices in the private
sector
Patronage often times
is the general rule rather than the
exemption
Security of tenure and
eligibility rule in govern-
ment employment,
apparently breeds
complacency and
promotes incom-
petence
Many government
agencies have
overlapping functions,
roles, jurisdictions,
and lacks inter-agency coordination in planning
and execution
Some socio-economic
and management assumptions are no longer
valid, or at least,
conflicting with evolving
realities in the global and local market
11
CONCERNS OF WOULD-BE 60- AND 65-YEAR OLD RETIREES
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What if I get
sick?
Can I get my
money ASAP?
What will I do
when I retire?
Will my pension
be enough?
Can I
still work?
How shall I
live?
# ! ? Self-
respect?
12
Retiring at 60 or 65! that’s old...
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Rest and
Recreation? Can I still
get a job?
Can I still
afford these?
13
Health Issues upon retirement
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Cost of
Hospitalization
Cost of Good Health
and Stamina
Cost of Medicine &
Professional Help
Will my retirement
benefits afford
these needs?
14
Can I still put up my own business after retirement?
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STRATEGIC OPTIONS
Finding the Option that cost the least but the most multiplier effect
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Strategic Options
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1 2 3
4 5
17
Option # 1: Maintain status quo: Retire at age 60 (Optional), or at age 65 (Mandatory) Advantages:
will not create heightened tensions among government employees
Disadvantages:
will not decrease PS1 spending
may not improve stimulus to professionalize to higher
levels of service and performance
does not assure productivity of employees
after retirement
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1 – Personal Services
Business as usual
18
Option # 2: Pursue legislation to re-engineer the bureaucracy
Advantages:
may decrease the number of departments and agencies, and lessen redundancy
may facilitate coordination among departments and agencies
Disadvantages:
may increase tension in the bureaucracy
may not decrease PS spending in the short term
may increase pressure on GSIS to fund greater than normal number of early retirees
may tend to be too big to manage even in the medium term
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Mr. SPEAKER!!!
One Minute recess!
19
Option # 3: Pursue legislation in privatizing more public agencies
Advantages:
may attract more private sector participation in public service
may accelerate professional development of government employees
may accelerate decentralization
Disadvantages:
may
incr
ease
ten
sio
n in
th
e b
ure
aucr
acy
may
incr
ease
pre
ssu
re
on
GSI
S to
fu
nd
gre
ater
th
an n
orm
al n
um
ber
of
earl
y re
tire
es
Imp
lem
enta
tio
n m
ay
take
gre
ater
tim
e d
ue
to s
oci
al, e
con
om
ic a
nd
p
olit
ical
co
nsi
der
atio
ns
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NOTED!!!
Objection, Mr. Speaker!
20
Option # 4: Abolish security of tenure for levels 2 and 3, replacing it with annually renewable service-contract based on performance and merit
Advantages:
May accelerate professional development and greater
responsiveness of public servants
May pave the way the establishment of a competency-based system for public service
May accelerate decentralization and streamlining of operations
May provide greater impetus for a better system of performance
measurement
Disadvantages:
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Our study indicates . . .
No valid basis . . .
No legal basis, Your
Horror!
21
Option # 5: Implement mandatory entrepreneurship development of government employees in preparation for early retirement Advantages:
An executive order may be issued to implement a bureaucracy-wide entrepreneurship development program
may encourage early retirement while giving way to competency standards development and workforce replenishment
may improve “life after public service” outlook of government employees
may spur greater banking activity, better economy of communities and ensure livelihood of would-be retirees
Disadvantages:
May not decrease PS spending in the short
term
May increase document
processing activity in GSIS due to lending banks’ verification
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Comparative Analysis of Sector Impact
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N – negative tendencies
Y – positive tendencies
1 – includes GSIS & local banks
2 – professional service providers Legend :
Employee Acceptance
NGA/LGU Support
Financing Institutions 1
Training Institutions 2
Local Economy
Option 1 (Status Quo)
I M P A C T / E F F E C T Strategic Options
Option 2 (Re-engineering)
Option 3 (Privatization)
Option 4 (Service Contract)
Option 5 (Entrepreneurship)
23
Recommendation . . .
Comparatively, Option #5 is the option that may encounter the least resistance
It is the option that may cost the least
but may result in greater outcome
mutually beneficial to all sectors
concerned
It encourages greater participation from concerned sectors: employees, NGAs/ LGUs, banks, NGOs, training institutions and business
It may be implemented on a massive scale with
minimum disruption in government
operations
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KEY PLAYERS IN OPTION #5
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The Government Service Insurance System (GSIS)
Building the Fund
Member-Employees premium
contribution with
government counterpart
Interest earnings
from membership
loans and property insurance
Investments in Financial
Markets
Providing for Benefits and Privileges
Salary, policy, education, provident, calamity and
housing loans
Insurance proceeds
Retirement/pension proceeds
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ORGANIZATIONS ENGAGE IN CAPABILITY BUILDING PROGRAMS:
Government Agencies
Private Professional Corporations
Industry-specific Training
Institutions
Non-Government Organizations
Civic Organizations
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FINANCING INSTITUTIONS
Social Service-Oriented Public and Private Institutions •Government Agencies
•Non-Government Organizations
Government Banks
Commercial Banks
Rural Banks
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The Department of Trade and Industry (DTI)
Trade and Industry
Regulator
The government agency in-charge of entrepreneurship training programs
Undertakes Small and Medium Enterprises
Development assistance and trade fairs
Maintains economic databases on business activities and enterprises,
including trade and investment statistics
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The Provincial Government
Responsible for the formulation, update and implementation of the Provincial Medium-term Development Plan (PMTDP)
It shall disseminate to all agencies concerned a compedium of all priority industries and economic activities identified in the PMTDP
Responsible for coordination of nominees for entrepreneurship training of government agencies within the province
The Provincial Government shall establish the schedule of the training programs in coordination with all nominating government units in the province
In coordination with the DTI-recommended training institutions, it shall cause the conduct of the entrepreneurship training programs
It shall ensure that all financing institutions in the province for this project are legitimate and duly recognized by Government
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PROVINCIAL CAPITOL
30
SELECTED SEGMENT OF GOVERNMENT EMPLOYEES’ MARKET:
male and female
approaching the age of 50 years old
holding a regular permanent
appointment
in any agency in the NGAs, LGUs, GOCCs, and GFIs
with valid GSIS Insurance Policy
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GENERAL FEATURES OF OPTION # 5
The pursuit of the program to develop the entrepreneurial skills of government employees in preparation for early retirement while a workforce development program is being implemented on a parallel stream
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An Insurance Policy as a Collateral for Investment
All regular government employees are insured under the GSIS where premiums are paid through mandatory monthly salary deductions
Such instrument is mainly for retirement gratuity purposes and for a specific term and period of coverage
With an Insurance Policy in force, regular employees may avail of policy and salary loans until maturity or retirement, whichever comes first
Aside from interest earned from loans made by regular employees, GSIS invest the Fund to generate more funds to pay the retirement pensions of retirees
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GSIS Insurance
Policy
33
Conceptogram . . .
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Government
Employees
1
Nearing
Age 50
2
Entrepreneurship
Training Program
3
GSIS/Bank
GSIS Policy (Collateral)
4
Employees with own business part-time
5
Employee retire after 2 years for full-time business
6 New Employees Better Skills and
Fresher Ideas
7
34
young, evolving
workforce
pays
loan
develops
business
General Process Flow
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GSIS
staff
=< 50 yrs
old
provides training
Graduate employee
applies for bank loan
Updated
Workforce
Devt. & Mgt.
Program
declines
retires w/ pay
updated
competency
standards
Ent.Dev.P
Service Provider
Hire new talents
Promote most qualified only
Early retiree
w/ own business entrepreneurship
Insurance
policy
Re-categorized
De-prioritized
NGAs/LGUs
35
Parallel and Phased Implementation Process
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PAYS
LOAN
DEVELOPS
BUSINESS
NGAs/LGUs
GSIS
GRADUATE EMPLOYEE
APPLIES FOR BANK LOAN
RETIRES W/ PAY
EARLY RETIREES
W/ OWN BUSINESSENTREPRENEURSHIP
TRAINING
INSURANCE
POLICY
staff
=< 50
yrs old
En
tre
pre
ne
urs
hip Development P
ro
gr
am
s
Service
Providers
DECLINES
Re-categorized
De-prioritized
YOUNG, EVOLVING
CIVIL SERVICE
WORKFORCEUPDATED
COMPETENCY STANDARDS
HIRE NEW TALENTS
PROMOTE MOST QUALIFIED
RE-CATEGORIZED
DE-PRIORITIZED
CSC
NGAs/LGUs
Updated
Workforce
Deve
lopm
ent M
anagement
and
Program
STAFF & JOB
PROFILES
DECLINES
GSIS
NGAs/LGUs
En
tre
pre
ne
urs
hip Development P
ro
gr
am
s
Service
Providers
DTI
ECONOMIC/BUSINESS ACTIVITIES
TRAINING
AG
RE
EM
EN
T
CO
OR
DIN
AT
E
CONFIRM
PRIORITIZE
TRAINING PROGRAMS
FINANCING
INSTITUTIONS
GUARANTEES
PHASE 1 PHASE 2
PHASE 3
36
Phase 1 - Preparing the groundwork activities
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Coordinating with concerned government agencies
Defining provincial priority economic activities
Ensuring readiness of Training Institutions and programs GSIS
NGAs/LGUs
En
trep
rene
urs
hip
Development Pr
og
ra
ms
Service
Providers
DTI
IDENTIFY ECONOMIC ACTIVITIES
TRAINING
AG
RE
EM
EN
T
CO
OR
DIN
AT
E
CONFIRM
PRIORITIZE
FINANCING
INSTITUTIONS
GUARANTEES TRAINING
PROGRAMS
37
Phase 2 – Implementing the Entrepreneurship Development Program
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PAYS
LOAN
DEVELOPS
BUSINESS GSIS
GRADUATE EMPLOYEE
APPLIES FOR BANK LOAN RETIRES WITH
GRATUITY PAY
EARLY RETIREES
W/ OWN BUSINESS ENTREPRENEURSHIP
TRAINING
INSURANCE
POLICY
staff
=< 50
yrs old
En
tre
pre
ne
urs
hip
Development Pr
og
ra
ms
Service
Providers
DECLINES
Re-categorized
De-prioritized
NGAs/LGUs
38
Phase 3 – Renew the workforce
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YOUNG, EVOLVING
PUBLIC SERVICE
WORKFORCE
UPDATED
COMPETENCY
STANDARDS FOR
GOV’T POSITIONS
HIRE NEW TALENTS
PROMOTE MOST QUALIFIED
BASED ON COMPETENCE
RE-CATEGORIZED
DE-PRIORITIZED
CSC
Updated
Workforce
Deve
lop
me
nt M
an
ag
em
en
t
and
Program
STAFF & JOB
PROFILES
DECLINES
NGAs/LGUs
39
IMPLEMENTATION MECHANICS OF OPTION #5
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Projected Trend of Competency Standards Development for Government Position Titles* while this Entrepreneurship Training cum Early Retirement
scheme is being implemented
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0
100
200
300
400
500
600
700
800
900
1000
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Position Titles w/o CS Position Titles w/ CS
* Please refer to proposed “Competency-based HRD System for Public Servants”
41
Selecting Employees for Yearly Entrepreneurship Training
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* Referenced from current year
Employees approaching 50 years of age*
Employees with no promotional appointment* for the last 6 years
or more
Employees who have served for at least 15 years*
Employees with no pending administrative or criminal case
42
Training for Business/Entrepreneurship
PROVINCIAL GOVERNMENT LED
Training and coaching to be delivered by contracted professional organizations
Business project should be employees’ choice: single proprietor, group venture, or family-based
Project-based training: business plan development, implementation, evaluation
Proposed business site: preferably in employees’ residential area or birthplace
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Ensuring Maximum Gains – Coordinating Training for Business/Entrepreneurship thru
the Provincial Governments
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Provincial Government-
Synchronized Training
Program for
Entrepreneurship
Development
Municipalities and
Cities within the
Province
Nat’l Gov’t Agencies
at Provincial Level Employee-Candidates with
Province-specific
Entrepreneurship project
Nominees
Nominees
Training
Schedules
44
Initiating and Developing the Business
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GSIS insurance policy as collateral to secure business loan from local banks/financing institutions
Supervised implementation of business (agency-employer, training institution and bank)
Two-years of business development and loan payment period
45
Encouraging Government Employees to Retire Early
All government agencies to allocate funds annually for entrepreneurship training of their respective workforce approaching 50 years old
Employees who have successfully completed the entrepreneurship training maybe accorded work schedule flexibility in order to ensure the success of their business project
Availing employees may get their early retirement pay/cash surrender value of their insurance (whichever is applicable at the time) staggered in annual payment as allowed by GSIS
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Re-Categorizing/Re-Prioritizing 50 y/o Employees Declining Entrepreneurship Training and Early Retirement Option
Lowered priority consideration in future availment of off-site local and overseas staff development opportunities
Required to submit verifiable proofs of acceptable performance level and personally attributable accomplishments for two successive years when seeking promotion
Accorded higher priority consideration in job rotation and re-assignment as a mode of on-the-job training
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EXPECTED RESULTS
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Summary of Anticipated Results Gradual but progressive streamlining of the bureaucracy while deliberately preparing government employees for opportunities in the private sector after early retirement
Younger, productive retirees from government service with businesses of their own
Continuous inflow of younger and better skilled recruits in government service with fresh ideas
Progressive development of competency standards for government positions while effecting streamlining processes
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Summary of Anticipated Results
Greater activities in
banking system,
especially rural banks,
servicing new entrepreneurs
Economic activities in
communities nationwide enhancing
SMEs and use of indigenous
resources
Promotes entrepreneurship
and correspondingly,
the growth of training
institutions
Value-adding of GSIS insurance policy as a valid
instrument/ collateral in
small business financing
applications by government employees
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The Primary I-P-O-O
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+
+
INPUT P R O C E S S OUTPUT O U T C O M E
B A N K F I N A N C I N G
EARLY RETIREES
51
Chronology of Effects, particularly in the Regions
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MORE TRAINING
INSTITUTIONS
MORE SMALL
ENTERPRISES
SHORT TERM MEDIUM TERM LONG TERM
MORE EARLY
RETIREES
MORE PROGRESSIVE
WORKFORCE IN GOV’T
MORE TRAINING
PROGRAMS DEVELOPED
MORE and BETTER
COORDINATED
PROVINCIAL
TRAINING SESSIONS
52
The Next Steps …
•Firm up profile of government employees, to focus on age, business inclination and motivation for business of staff For NGAs/LGUs:
•Make arrangement for use of GSIS policy as collateral
•Make arrangement to facilitate payment to early retirees For GSIS:
•Firm up industry/economic priorities of cities and municipalities
•Accreditation of training institutions and enterprise development programs
For DTI in coordination with
DILG:
•Firm up guidelines for local financing institutions for micro-financing using GSIS instrument
For Bangko Sentral ng Pilipinas:
•Formulate the general guidelines for a Workforce Development Program in a Competency-based System Framework For CSC:
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Action Points Discussion with GSIS re use of policy
contract as collateral for business loan purposes
Discussion with bank associations for extension of financial assistance to
government employees
Discussion with league of mayors and governors for support and identification of
entrepreneurial opportunities
Discussion with industry associations for support and linkaging
Discussion with associations of training institutions for preparation of appropriate
training packages
Consultation with government employee associations
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