GCG SET TO START SECOND YEAR OF MONITORING PERFORMANCE OF GOCCs
The Governance Commission for GOCCs (GCG) is set to start the second annual Performance Agreement Negotiations (PAN) with GOCC Boards beginning August 2014. This requires GOCCs to make strategy maps and performance commitments for CY 2015 on how they will achieve breakthrough results and contribute to the President’s development agenda through their respective mandates.
The PAN embodies one of GCG’s mandates to institutionalize a performance-oriented culture in the GOCC Sector by creating performance scorecards for each GOCC. Performance indicators must strategically focus on measuring the financial viability and social impact of a GOCC.
Accordingly, all GOCCs have been required to measure their Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margins. On the other hand, social security institutions such as the Social Security System (SSS) and Pag-IBIG will instead track their Net Profit margins in order to monitor both financial viability and the pay-out of benefits to their members.
For service delivery, all GOCCs must have customer and/or stakeholder satisfaction surveys conducted by independent third parties from the private sector. GOCCs can also propose other performance indicators for their respective operations. The determination of breakthrough results will be based primarily on historical performance for each measure.
Together with a GOCC’s compliance with Good Governance Conditions such as the filing by all officers and employees of their Statement of Assets, Liabilities and Net Worth (SALN) and compliance with anti-red tape statutes and transparency guidelines, the Performance Evaluation System (PES) serves as basis for the granting of GOCCs’ Performance-Based Bonus (PBB) for officers and employees and Performance-Based Incentive (PBI) for their directors.
Performance scorecards of specific GOCCs can be viewed by the public on GCG’s website, www.gcg.gov.ph. The Governance Commission also invites everyone to participate in the performance evaluation of GOCCs by sending their comments or suggestions on the current measures and targets of the GOCCs to email@example.com.
Bea Nadine V. Barte
(02) 328 – 2030 to 34