Overview of Organizational Performance Indicator Framework

1. Overview ofOrganizational Performance Indicator Framework DEPARTMENT OF TOURISM 10 September 2008 By: Director RICALINDA N. ADRIATICO

2. OUTLINE • Organizational Performance Indicator Framework (OPIF) • OPIF as key component of Public Expenditure Management (PEM) • Logical Framework Approach to OPIF • Performance Indicators • DOT’s FY 2008-2009 Budget

3. Public Expenditure Management (PEM)is a public sector resource allocation system that: • Gives reasonable assurance that new expenditures approved for a budget year can be funded over the medium term, and • Accords priority to expenditures that are oriented towards achieving desired outcomes.

4. PEM OBJECTIVES • Aggregate Fiscal Discipline • living within our means • Allocative Efficiency • spending on the “right things” or “right priorities” • Operational/Technical Efficiency • obtaining the best value for money

5. KEY COMPONENTS OF PEM • Medium-Term Expenditure Framework (MTEF) • Organizational Performance Indicator Framework (OPIF) • Accountability/Flexibility Mechanism • Performance Incentives Consequences • Support Mechanism

6. Organizational Performance Indicator Framework (OPIF) • A mechanism that induces government agencies to focus their efforts on delivering high/medium priority programs/activities/projects (PAPs) at reasonable cost and qualities. • A set of guidelines and structures for the identification of performance indicators of government organizations.

7. The Logframe Demonstrating a causal link between what you do, why, and how

8. What is a Logframe? Links outcomes and outputs • Systematic and reasoned description • Helps relate organizational activities to its outcomes

9. Alternative Terminology for OPIF OPIF Terms Results Chain Societal Goal Impacts Sectoral Goals Organizational Outcomes Outcomes MFOs Outputs P/A/Ps Activities

10. Societal Goals • Societal benefits derived from cumulative sectoral impacts • Highest level of goals – the end points to be aimed for • Are longer-term impacts achievable over a long period • Influenced by a broad range of factors, some are beyond agency’s control • Government’s ultimate policy objective, i.e. Government has the primary role in specifying outcomes • Medium-Term Philippine Development Plan (MTPDP) or other policy statements by the President • Reflective of the Millennium Development Goals

11. Societal Goals “Economic growth towards poverty reduction”

12. Sectoral Goals • Longer term sectoral impacts derived from the organizational outcomes • Influenced by a broad range of factors, some are beyond agency’s control • Intermediate, high level end-point leading to the Societal Goal • Government specifics sectoral goals, as intermediate outcomes towards the ultimate societal goals

13. Sectoral Goals “Increased contribution of tourism to the national economy”

14. Organizational Outcomes • Concrete short to medium term impacts on, or benefits to clients and the community • Contribute to achievement of sectoral and societal goals • Departments are able to strongly influence outcomes

15. Organizational Outcomes “Increased international visitors” “Diversified tourism products and services” “Increased quality of visitor experience” “Widen tourism beneficiaries”

16. Major Final Outputs • Goods and services that a department or agency is mandated to deliver to external clients, funded by the Budget • Consumed outside of the department or agency (i.e., end user is external) • Achieved through implementation of programs, activities and projects (PAPs) • Contribute directly to attainment of organizational outcomes • Within the control of the department or the agency • Tangible and more easily quantified than outcomes

17. Major Final Outputs “Tourism promotion services for international and domestic visitors”

18. Programs/Activities/Projects (PAPs) Key activities or integrated group of activities (programs) and projects undertaken by the department/agency to achieve MFOs

19. Programs/Activities/Projects (PAPs) MFO 1 – Tourism promotion services for international and domestic visitors • Participation in international travel fairs, exhibits, and conferences • Public relations and information dissemination • Promotion of tour packages • Organization and promotion of special events • Production of information materials and collaterals • Conduct of sales missions

20. Influence and Accountability in the LOGFRAME Societal Goal Which leads to… Sectoral Goals Which leads to… Increasing Capacity to Influence Increasing Level of Accountability Organizational Outcomes Which leads to… MFOs Which leads to… P/A/Ps

21. Constructing a Logframe • Can be “top-down”, or “bottom-up” • Top down: starting with outcomes and working “down” to outputs and activities • Bottom up: starting with activities and outputs and working “up” towards outcome • Source documents include: • Mandates and legislation • Government planning (such as MTPDP, SPM, etc.0 • Policies • Performance monitoring and/or evaluation reports • Departmental planning • Should be produced through a stakeholder consultation process

22. How is a Logframe Used? • Tells a story about why, what and how your agency delivers its services • Helps agency focus on core activities that deliver benefits • Helps set priorities for allocating resources by identifying critical outputs and activities • Can be used as the basis for corporate planning • Provides direction towards identification of performance indicators

23. Performance Indicators • NBC 501 (2005) defines performance indicators as: “performance measures to be used for the assessment of the delivery of MFOs contributing to organizational outcomes”

24. Performance Indicators • Two types of Performance Indicators: • For Organizational Outcomes • For MFOs • Performance indicators for MFOs are important, but it is also important to monitor outcomes • Initial focus under OPIF is on performance indicators for MFOs

25. Performance Indicators Quantity Quality HowWell did we do it? ( % ) Client satisfaction, access, timeliness, accuracy, cost HowMuch did we do? ( # )

26. Performance Indicators Efficiency Did we do it right? Effectiveness Did we do right thing?

27. Performance Indicators Output Indicators: • No. of promotion and information drives undertaken in key tourist markets • No. of media invitees • No. of tour operators accredited Outcome Indicators: • No. of tourist arrivals • Tourism receipts • No. of jobs generated

28. Characteristics of Good PIs • S - Specific – relate to results you are trying to achieve • M - Measurable – stated in quantifiable terms • A - Achievable – realistic in what is to be achieved • R - Relevant – logically related to MFO described • T - Time-bound – stated with target dates

29. FY 2008 Budget The funds to cover the FY 2008 requirements for 10% Salary Increase, including corresponding adjustments in Year-End Benefits (YEB) and government counterpart contributions in PHILHEALTH, ECIP and RLIP of national government personnel pursuant to: EO No. 611 – effective July 2007, and EO No. 719 – effective July 2008 SARO – Released the full requirements till December 31, 2008, while NCA – Released up to September 30, 2008.

30. FY 2008 Budget Released Allotment is equivalent to: PS = January 1 to September 30, 2008 MOOE & CO = Jan. 1 to Mar. 31 (Obligational Authority)plus 50% of the Not Needing Clearance (NNC) of the ABM or April 1 to August 15 requirements

31. FY 2008 Budget “For Later Release” is subject to the results of the Agency Performance Review (APR) as provided under NBC No. 515 dated March 25, 2008, re: Guidelines on the Release of Funds for FY 2008.

32. FY 2008 Budget • Results of the APR covering the period January to June, 2008 shall be used as basis in determining the necessity of additional release of funds to cover the 4th quarter operating requirements of the agency. • The APR shall be based on the submission of the ff: • Budget Execution Documents (BEDs) • Physical and Financial Plan • Monthly Cash Program • Estimate of Monthly Income • Budget Accountability Reports (BARs) • Quarterly Physical Report of Operations • Quarterly Financial Report of Operations • Quarterly Report of Actual Income • Statement of Allotment, Obligations and Balances • Monthly Report of Disbursements

33. FY 2008 Budget • “Needing Clearance” portions pertains to the Congressional Initiatives which shall be released upon submission of the following: • Endorsement of the following: • Lower House – Speaker of the House and Chairman, Committee on Appropriations • Upper House – Senate President and Chairman, Committee on Finance • DOT Secretary • Project Profile • Performance Targets/Outputs consistent with the OPIF

34. FY 2009 Budget • Increase in RATA

35. FYs 2007 - 2009 Budget

36. In everything you do put GOD first, and He will direct you and crown your efforts with successProverbs 3:6

37. Thank You and Good Day to Everyone!