The Productivity Improvement Program

1. Reinventing Local Governance in the Philippines over the past 12 years . . . . The ProductivityImprovement Program CITY GOVERNMENT OF NAGA, PHILIPPINES

2. Brief Description • A program to revitalize and enhance City Hall by directly addressing the roots of the maladies that have constrained LGUs from consistently delivering quality service • Has transformed LGU employees into highly-motivated public servants proud of their city and organization; and driven not by rules but by a community-owned vision and mission • As an institutional mechanism, has become the mother of city government programs leading to such innovations as Kaantabay sa Kauswagan, People Empowerment and others

3. Program Focus • Tackles the problem of how to bring about adequacy, efficiency, effectiveness and equity in the delivery of public services amidst competing sectoral demands. • Focus Areas: • the provision of sufficient services to meet the requirements of the population • getting the optimum outputs with minimum expenditures • the capability to produce results as desired and planned, encompassing quality and level of service • accessible and acceptable services based on the principle "the greatest good for the greatest number."

4. Specific Objectives • Set response time in the delivery of services to its barest minimum • Pursue specific projects and activities aimed at inducing and sustaining peak productivity levels in all departments and offices • Encourage employees to come up with viable ideas and suggestions to further improve productivity • Constantly upgrade the skills and competence of employees • Institutionalize a cost reduction system • Set up a feedback mechanism for the public

5. Program History/Implementation • Started in 1988 by the new administration of Mayor Jesse Robredo. Given the problems at that time, the city instituted confidence-building measures starting with its people at City Hall • Implementation of a better compensation package • Setting up of a system based on aptitude and competence • Activation of the Merit and Promotions Board (with an employee representative to eliminate patronage) • Cultivation of an “atmosphere of competition” • Adoption of a more open, deliberative and participative system of management Set

6. Program History/Implementation • Named PIP in 1995, introducing: • Application of private sector HRM techniques • Intervention focused on improving productivity through employee empowerment (people change) and improvements in systems and procedures (systems change) • “Contract of Deliverables” or “Performance Pledges” introduced • Won the Galing Pook Award • Institutionalized, in 1997, through Ordinance No. 97-002

7. Program History/Implementation • Quality Service Improvement/Public Service Excellence Program (QSIP/PSEP), 1998-2000 • While PIP, originally, was productivity-focused, QSIP/PSEP are customer-oriented • Introduced the whole dimension of service quality improvement with the customer as king and city hall as a service provider rather than a bureaucracy • Service vision and values • Service audit • Service improvement • Key moments of truth

8. Program Results • Set response time in the delivery of services to its barest minimum • Developed a functional performance metrics system through departmental Performance Pledges • Pursue specific projects and activities aimed at inducing and sustaining peak productivity levels in all departments and offices • Program and organizational development initiatives led to the conceptualization and implementation of innovative programs in diverse fields of governance such as Emergency Rescue Naga, Kaantabay sa Kauswagan, Metro Naga Development Council, Socialized Program for Empowerment and Economic Development, Local Initiatives for Economic Activities and Partnerships (LEAPS), City Government Computerization Program, and Naga Early Education and Development

9. Program Results • Encourage employees to come up with viable ideas and suggestions to further improve productivity • Institutionalized annual awards for outstanding employees and organizations • Institutionalized Very Innovative Person (VIP) contest that yielded productivity improvement measures Developed a functional performance metrics system through departmental Performance Pledges • Constantly upgrade the skills and competence of employees • Regularly conducted in-house trainings, seminars and workshops for the rank-and-file • Networked with other institutions that offer external avenues for training

10. Program Results • Institutionalize a cost reduction system • VIP contest yielded practical measures for cost reduction • Periodic review of government procurement program identifies areas for improvement • Cost-conscious budgeting policies on MOOE levels helped contain cost across departments (up to 25% on MOOE) • Set up a feedback mechanism for the public • Suggestion boxes and regular dialogues • New development: I-Governance Program

11. Emerging Lessons • PIP is a product of human effort to improve upon the traditional ways of doing things • It is largely a people-led system. This affirms the fundamental premise that people are the LGU’s most precious resource • Service improvement is not anchored on access to substantial financial resources • On the contrary, it works because one is able to overcome prevailing resource limitations

12. Emerging Lessons • An empowered workforce leads to more innovations • PIP has been instrumental to the development and innovations in government programs. It is the mother of all of Naga’s award-winning programs

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