Thursday, July 22, 2010

Kopi Talk The stakeholder support

Hi ManilaB thanks for the article roping in the Stakeholder support theory was developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, business purpose and corporate social responsibility.

I still remembered when I was in Civil services realizing the need that in year 2000 the tide is changing, and so are people's perceptions, community is evolving especially the new generation staff.

However, is easy say than done like many anchor projects and new initiatives were implemented to help the organization realize its vision. These required considerable resources and manpower to roll out successfully. Officers on the ground like us had to cope with new demands, acquire new competencies and cope with change.

To ensure the successful implementation of these strategies, the organization used the three-pronged approach by leveraged on technology, community resources and knowledge management. The simple framework, comprising of the three elements of people, processes and technology. ‘Knowledge’ is defined as the ideas, experiences and insights residing in officers within the organization that are manifested in both explicit and tacit forms. ‘People’ form the pillar of our success, particularly those who display a great disposition towards learning and knowledge sharing. ‘Technology’ is the enabler that aids in the transfer and harnessing of knowledge. Finally, ‘processes’ are the work flow components that connect people to knowledge and knowledge to people. Of course, the journey ahead remains a difficult one, With such a culture, systems process, component platform in place, half the battle is already won. Finally, even the right platform is in place is not perfect, sometime thing to happen maybe like they say nothing is perfect only by faith and act of god.

Posted By ManilaB
Under the first perspective of "stakeholder support," the Philippine Army (PA) has set forth two strategic priorities. These are: "To engage and partner with key stakeholders" and "to develop and communicate a brand image consistent with the Army's core values." For each of these priorities, the Army has to specify the initiatives it proposes to take, the measures by which it tracks the progress it makes, and the targets that it aims to meet by certain dates in the foreseeable future.

These three specific elements - initiatives, measures, and targets - constitute the governance scorecard for each of the priorities.
Under the first priority within this perspective, the Army has proposed three concrete initiatives, with their corresponding measures and targets.

1. First, it proposes to formulate a plan as well as an operational program to engage with key, critical domestic stakeholders. The Army will have to be clear about its "intent" for such engagement; moreover, it will have to choose well the sectors and organizations that it wishes to work with, and whose positive and substantive collaboration it seeks to gain. It will also have to establish a solid framework for constructively working with its stakeholders. This it proposes to do in 2010. Its proposed measure of progress is the percentage increase in the projects it will be undertaking with its stakeholders, and it targets an annual increase (from a base line determined in 2010) of two percent by 2013 and five percent by 2016. The corresponding figures for 2022 and 2028 are 10 percent and 20 percent, respectively.

2. Second, the Army also seeks to "enhance international defense and security engagement." This involves other countries. In conformance with legal and other policy requirements, the PA proposes to enter into partnership agreements through an MoU with its counterpart Army organizations of other countries. Using this measure, the targets the Army sets for 2013 and 2016 are: Three and six countries, respectively. This goes up to nine in 2022 and finally to 12 in 2028.

The target numbers are well-chosen, since there are nine other countries in ASEAN, the presumed first set of target countries, and three big countries in North East Asia that are also active players in the proposed East Asian community.

3. Third, the Army through the selective MoUs it enters into with their counterpart organizations in other countries would look for every opportunity for mutual support and reinforcing development of Army capabilities. As an emerging economy, the Philippines may have to identify sources of grants under mutual defense MOUs. The targets for grants that the Army would secure through these MOUs are US$50 million in 2013 and US$100 million in 2016. Correspondingly bigger grants are set for 2022 and 2028.

As it engages with key stakeholders, both domestic and foreign, the PA proposes to be very pro-active in improving its internal processes and upgrading its capability. In the process of doing so, it also seeks to "develop and communicate a brand image consistent with its core values of honor, patriotism, and duty." In other words, it aims to refurbish its image, based on the substance of its accomplishments in line with its actual observance of its core values.

This would call first of all for a full commitment to its governance program, and then for the creation of a "communication plan" based on actual breakthrough results arising from that program. The measure is the net approval rating for the PA. This is targeted at five percent in 2013, and this should rise gradually to 15 percent in 2016. From that base, it should eventually shoot off to 30 percent in 2022 and to a dramatically high 60 percent in 2028.

The targets are ambitious. But the initiatives as well as the measures that would enable the PA to meet these ambitious targets under this perspective are clear and concrete. Moreover, they are founded upon the imperative of delivering solid, substantive performance as a way of winning minds and hearts of the Filipino people, and especially the active collaboration of key domestic stakeholders as well as the mutual agreement with critical, vital support of other countries.