Sarmiento to LGUs: Adopt the Performance Governance System

Press Release
October 27, 2015

QUEZON CITY – Interior and Local Government (DILG) Secretary Mel Senen Sarmiento has urged the local government units (LGUs) to adopt and use the Performance Governance System (PGS) in their programs and projects.

The PGS is the local adaptation of the Balanced Scorecard developed in the US, a performance management and measurement tool that translates organizational goals into breakthrough results using a set of performance indicators or metrices.

The balanced scorecard process translates organizational strategy into concrete and quantifiable outcomes by measuring whether the operational activities of an organization are aligned with its larger-scale and longer-term objectives and strategies.

"Kahit gaano kalaki ang pera ng barangay, munisipyo, city o probinsya, kung hindi naman gagamitin ito sa tama, wala rin," Sarmiento said during his first flag-raising ceremony at the DILG Central Office in Quezon City recently.

With the expected double increase in the Internal Revenue Allotment (IRA) in 2018, he has repeatedly encouraged local chief executives to come up with a strategic goal map that will advocate the prudent use of the PGS.

The DILG Secretary said he used the PGS method during his mayoral stint in Calbayog City which enabled his city to hit almost a billion plus revenues for his city.

He said the PGS will be more effective if the local governments have a strategic plan to follow. “Kahit na bilyon nga yan eh, kung wala talagang plano, sayang ang pera,” he said.

The DILG Chief said he will steer the Local Government Academy (LGA), an attached agency of the DILG, to conduct appropriate training programs that will direct the LGUs to the right direction which would match the overall, long-term plan of the national government.

"Dapat kung ano ang gusto ng komunidad, yun ang masunod to ensure sustainability. Hindi ang kagustuhan ni Mayor o ni Kapitan," he added.

According to the DILG Secretary, capability, bankability, competitiveness and governance will be the four main facets by which LGUs will be measured through the PGS.

He also highlighted the importance of the said management tool in nation-building as it unifies and directs all government agencies to one direction using a standard criteria.

He is confident that by using PGS properly, everyone, even those in the lowest rank in the office, will understand what are the goals, the hits and the misses of a respective agency and they too can contribute on how to address the missed opportunities and improve for the better.

“It’s a scorecard, a one pager thing na dapat pati utility sa opisina naiintindihan, rating the Department. May target ito. Pag red font, meaning failing grade; green font, we hit the target; blue font, we exceeded the target,” Sarmiento explained.