Utilizing the Performance Governance System for PPPs

What is the Performance Governance System (PGS) and how does this enhance public-private partnerships (PPPs)? Can the PGS help “future-proof” PPP policies and projects? What systems must be in place so that PPPs will serve the interests of the people and will be powered by the people themselves?

The PGS, administered by the Institute for Solidarity in Asia, is a strategy management framework for public-sector institutions converting them to islands of good governance. Public-sector institutions, such as national government agencies, governmental instrumentalities and corporations, and local governments, are envisioned to undergo rapid transformation. They shall be guided to move along the four-stage governance pathway of initiation, compliance, proficiency and institutionalization.

In the initiation stage, the vision or game plan is formulated and potential areas for development and growth are identified. The strategy must be cascaded and the office of the strategy management is created to oversee the strategy implementation. This is the compliance phase.

In the third phase, i.e., proficiency, the strategy is sustained through the involvement of the Multi-Sectoral Governance Council (MSGC). In the next stage, which is institutionalization, the organization becomes strategy-focused and is now equipped to achieve breakthrough results and transformative outcomes.

Sustainability of programs and policies, hopefully, is engrained. Graduating from one stage to the next is determined through the use of a scorecard, after vetting in a revalida. “Graduates” are recognized in a public ceremony.

Anchoring these on PPPs:

• Both are strategies, not outcomes. PGS and PPPs are not the desired outcomes. Both are strategies pursued and means employed to achieve transformative outcomes. PPPs are intended to improve the quality of life of Filipinos through breakthrough results, which are promoted under the PGS.
• Organizational readiness. An organization that seeks to engage private-sector proponents in PPP arrangements must be ready. Organizations do not become ready overnight. The whole organization, not just the formal leaders, including the external stakeholders, such as the communities, civil-service organizations and business groups, through the four-stage journey and beyond, must be part of the process. Readiness is gauged through the maturation of the organization as evidenced by the four merit badges of the PGS.
• Ownership through cascading. One of the hallmark features of PGS, also needed for PPPs, is collective and broad participation of all stakeholders. Per the PGS, the organizational vision, values, programs and projects must be developed and promoted by all stakeholders. Cascading is done in all directions. The series of workshops and the formation of the MSGC ensure this. PPP, in whatever form, and other developmental strategies must always be an agenda and action point of the MSGC.
• Same core values. Transformation is not without values. PGS and PPPs are founded on the same values and principles. Everyone must advance transparency, accountability, democracy, trust, respect, collectivity, dialogue and progression. Without these, tyranny, patronage politics and personal interests will reign, and processes may become unethical.

The general welfare, the end-goal, is not elusive for as long as public-sector organizations, preferably into PPPs, embrace PGS.