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Achieving Results through Strategic Performance Management System (SPMS) EO No. 80 s, 212

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Pursuant to Executive Order (EO) No. 80, s.2012 (Directing the Adoption of a Performance-Based Incentive System for Government Employees) and Memorandum Circular (MC) 2012-01 (Guidelines on the Cascading of Department Performance Targets in line with EO. No. 80) issued by the Administrative Order (AO) 25 Inter-Agency Task Force (IATF), a Performance Based Incentive System (PBIS) consisting of the Productivity Enhancement Incentive (PEI) and the Performance-Based Bonus (PBB) shall be adopted in the National Government beginning Fiscal Year (FY) 2012

The PBB shall be characterized by a system of ranking Delivery Units and personnel within a Department/Agency according to their contribution to their respective Department/Agency performance. Such performance shall be measured by verifiable and sustainable indicators based on their Major Final Outputs (MFOs), commitments to the President supportive of the priorities under EO 43, s. 2011; and good governance conditions specified in various Memorandum Circular Issued by the IATF through the use of the Strategic Performance Management System (SPMS).

Every task/job is accountable for adhering and performing to some level of standards or compliance. Standards of operating excellence may include a a compliance standard, specific quality standard, a legal standard, or some other metric of best practices. ‘Timely and accurate’ is a perfectly
acceptable operating standard against which many outcomes need to be performed. Everyone should have a clear understanding of the operational standards within which they’re paid to achieve business results. Thus, Individual indicator, Division/Office level success indicators must contribute and align with the Agency level success indicators. Success indicators should be SMART – Specific, Measurable, Attainable, Realistic, and Time-bound. Taken together the above can be used to accomplish the Major Final Output (MFO) listed in the Office Performance Commitment Review (OPCR). From the President to the Janitor, every position is accountable for achieving certain and specific business outcomes and results. Yet, too often successful performance is viewed or defined as having accomplished tasks, not as having achieved outcomes, reflect on these instances:

  • Answering phone calls is a task. Making sure every customer at the other end of the phone has a fantastic service experience is an outcome.
  • Implementing a new marketing strategy is a task. Gaining a 20% increase in market share as a result of an excellence executed marketing strategy is an outcome.
  • Swinging a bat and hitting the ball is a task. Scoring home runs is an outcome.

TEAM APPROACH TO PERFORMANCE MANAGEMENT
SPMS GUIDELINES PROVIDE FOR CASCADING OF ORGANIZATIONAL UNIT’S COMMITMENTS/GOALS TO INDIVIDUAL STAFF MEMBERS SUCH THAT INDIVIDUAL WORK PLANS OR COMMITMENT AND RATING FORMS ARE LINKED TO OFFICE/DIVISION/UNIT WORK PLAN OR COMMITMENT AND RATING FORM

Advantages of Performance Management
For Managers
Clarify definitions of job/success criteria
Increase motivation to perform
Increase self-esteem
Enhance self-insight and development

Advantages of Performance Management
For Managers
Communicate supervisors’ views of performance more clearly
Managers gain insight about subordinates
Better and more timely differentiation between good and poor performers
Employees become more competent

Advantages of Performance Management
For Organizations

Clarify organizational goals
Facilitate organizational change
Fairer, more appropriate administrative actions
Better protection from lawsuits

For more info on effective implementation of SPMS email me at jaimemenorjr@yahoo.com

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