The finance perspective presents a huge challenge for any governmental organization in the Philippines. The Philippine Army (PA) is no exception. As is the case of other Philippine governmental organizations, the PA is called upon to do so much with so little. It, therefore, has to think hard on how it can carry out its mandate with the very limited resources the Philippines can provide.
The Army, after deep thinking and analysis, has come up with two strategic priorities in this regard: The first is to "institutionalize good governance" and the second is to "adopt best practices in resource management." In other words, it proposes to get as much bang as possible from every buck that the government can provide it and that it can generate from its existing assets.
Under "good governance," the PA proposes to go through all the stages of the Performance Governance System (PGS), which adapts the balanced scorecard framework to Philippine conditions. Thus, it seeks to be initiated into the PGS in 2010; by the end of each succeeding year, it shall have moved to the next higher levels (compliant in 2011 and proficient in 2012) until it reaches the 4th and highest, i.e., institutionalized level by 2013. By 2016, it shall have produced breakthrough results, using the PGS, such that it can apply for the Maharlika Hall of Fame Award for good governance (domestic); by 2022, after even more breakthrough results have been shown to be sustainable, it can aim for the Global Hall of Fame for good governance. By 2028, due to its being at "par with Asia's best," the Philippine Army shall be a textbook case study for a transformation through proper public governance practices.
Under the priority of "adopting best practices in resource management," the PA is putting forward four initiatives with corresponding measures and targets. These are:
1. The installation and eventual institutionalization of a "logistics management system." This would entail the enhancement of "battalion and division support system as well as of the ASCOM (including acquisition, storage, distribution, maintenance and disposal)." After initiation in 2010, this shall be 75 percent "in place" by 2016, further enhanced (up to 85 percent) in 2022, and fully operationalized (100 percent) by 2028.
2. The "engagement with Congress for the approval of the desired budget." The eventual target is for 1 percent of GDP to be allotted for the Philippine Army.
3. The "development of idle assets" of the PA for generating a continuing stream of income as a supplement to budgetary support from the national government. The eventual target is for 10 percent of the PA's annual requirements to be met by contributions from these "developmental projects."
4. The "establishment of an effective and efficient performance evaluation system" would align actual performance much closer with programmed targets. This would bring costly variances down to the minimum.
It is clear from the above that the Philippine Army intends to take a pro-active stance in rising to the challenge of being asked to accomplish so much on the basis of so little. Its identification of the two priorities under this perspective says it all: First, it seeks to raise the standards of its governance practice; and second, it seeks to observe best practices in resource management: Thus, no waste, no leakage, no inefficiency, and no assets lying idle and staying unproductive.
