The PGS is hinged on the Balanced Scorecard technology (BSC), a performance management tool developed at the Harvard University Business School. PGS translates vision to actionable strategies and commitments that lead to breakthrough results. Working under the tenet of true and genuine governance, these breakthrough results make the agency more sustainable and responsive to its purpose. Inherent in the design of the system are the strategic private-public partnership of the organization and the sectors it closely interacts with, as well as transparent executive leadership. This revolutionary system institutionalizes a new culture of governance that can produce tangible results within two to three years.
The Institute for Solidarity in Asia (ISA), as the institutional partner of the Palladium Group (creators of the Balanced Scorecard), is the recognized feeder of Philippine public institutions to the world-renowned Balanced Scorecard Hall of Fame for Executing Strategy.
THE GOVERNANCE PATHWAY
The PGS is divided into four (4) stages: Initiation, Compliance, Proficiency, and Institutionalization.
The Initiation stage entails development of a strategy and translating it into a set of measurable targets for learning and growth, operational efficiency, financial viability and social impact on the constituency.
This stage is centered on alignment of resources and people to the strategy. A Compliant status is granted after the organization has formally organized internal and external stakeholders (also known as Multi-Sector Governance Coalition) to be part of the governance process, and consequently passed an audit review.
Proficient status is granted after an audit review of the partner’s strategic performance as measured by its scorecard. Mechanisms for reporting actual performance against targets must be in place. An Office for Strategy Management in charge of strategy execution must be fully functional at this stage.
Institutionalized status is granted after an audit review of a partner’s performance for at least two years of implementing its PGS strategy. The scorecard must show breakthrough financial results and high social impact.