streamlining the Philippine bureaucracy, mandating entrepreneurship training to government employee nearing age 50, encouraging early retirement, establishing business using GSIS insurance policy as collateral, improving local business climate, coordinating training institutions, preparing for better retirement after government service, having younger and more talented government workforce

1. Hilario P. Martinez 1
ORGANIZATIONAL
PERFORMANCE

2. The CHALLENGE
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3. Recommending a Strategy
Develop Entrepreneurship among
Government Employees for an Innovation-
Inspired Corps of Civil Servants and a
Productive Post-Service Citizenry
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4. Vision Statement
It is the vision of the State
to enhance the human
and intellectual capital of
the bureaucracy to ensure
delivery of quality public
service and a healthier
and more productive life
of its employees after
their tour of duty
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5. Goal and Objective
The strategic goal shall be
to ensure the continuous
flow of innovations and
development-oriented
government programs
and projects
The strategic objective
shall be to ensure the
maintenance of highly
competitive government
employees and the
creative employ of such
resources, in-service and
beyond
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6. Hilario P. Martinez
HUMAN RESOURCE SITUATION in
the PHILIPPINE PUBLIC SERVICE
6

7. Competitive government employees shift to
private employment upon the instance of better
opportunities while the majority opt to pursue
public service until retirement
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OVERSEAS
PRIVATE SECTOR
SOME GOVERNMENT
EMPLOYEES
7

8. Mandatory retirement at age 65,
optional at 60 years old
Nearing
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Will there be
another salary
increase?
...getting tired...
What will I do
after? How
will I do this?
Will I have enough to
tide me over? My
medical bills, diet,
maintenance. . .
What if …?
8

9. The Government is the single biggest
employer of about 1.5 million workers
Number of
Personnel
Fund for Personal
Services (PS)
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too
little for
MOOE
& CO
9
NOTE: MOOE – Maintenance & Other Operating Expenses
CO – Capital Outlay

10. Qualification standards for
employment and promotion
Private Enterprises Government Agencies
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CSC*-protected
security of tenure
HRD
10
* CSC – Civil Service Commission
Civil Service
-Prescribed

11. How did it get to this situation?
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Tour of duty
policy in
government
service: at
least 20
years in the
service
Qualification
standards,
hiring and
promotion
practices in
government
employment
are not at
par with the
best HR
practices in
the private
sector
Patronage
often times is
the general
rule rather
than the
exemption
Security of
tenure and
eligibility rule
in
government
employment,
apparently
breeds
complacency
and promotes
incom-
petence
Many
government
agencies
have
overlapping
functions,
roles,
jurisdictions,
and lacks
inter-agency
coordination
in planning
and execution
Some socio-
economic and
management
assumptions
are no longer
valid, or at
least,
conflicting
with evolving
realities in the
global and
local market
11

12. Concerns of would-be 60- and 65-
year old retirees
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13. Retiring at 60 or 65! that’s old...
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Rest and
Recreation?
Can I still
get a job?
Can I still
afford these?
13

14. Health Issues upon retirement
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Cost of
Hospitalization
Cost of Good Health
and Stamina
Cost of Medicine &
Professional Help
Will my retirement
benefits afford
these needs?
14

15. Can I still put up my own business
after retirement?
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16. STRATEGIC OPTIONS
Finding the Option that cost the least but the most multiplier
effect
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Business

17. Strategic Options
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1 2 3
4 5
17

18. Option # 1: Maintain status quo
Advantages:
will not create heightened
tensions among government
employees
Disadvantages:
will not decrease PS1
spending
may not improve stimulus
to professionalize to
higher levels of service
and performance
does not assure
productivity of
employees after
retirement
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1 – Personal Services
Business as usual
18

19. Option # 2: Pursue legislation in re-
engineering the bureaucracy
Advantages:
may decrease the number
of departments and
agencies, and lessen
redundancy
may facilitate coordination
among departments and
agencies
Disadvantages:
may increase tension in the
bureaucracy
may not decrease PS
spending in the short term
may increase pressure on GSIS
to fund greater than normal
number of early retirees
may tend to be too big to
manage even in the medium
term
Hilario P. Martinez
Mr. SPEAKER!!!
One Minute recess
19

20. Option # 3: Pursue legislation in
privatizing more public agencies
Advantages:
may attract more private
sector participation in public
service
may accelerate
professional development
of government employees
may accelerate
decentralization
Disadvantages:
may
increase
tension in
the
bureaucracy
may
increase
pressure on
GSIS to fund
greater than
normal
number of
early
retirees
Implementa
tion may
take greater
time due to
social,
economic
and political
conside-
rations
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NOTED!!!
Objection,
Mr. Speaker!
20

21. Option # 4: Abolish security of tenure for
levels 2 and 3, replacing it with annually
renewable service-contract based on
performance and merit
Advantages:
May accelerate professional
development and greater
responsiveness of public servants
May pave the way the
establishment of a competency-
based system for public service
May accelerate decentralization
and streamlining of operations
May provide greater impetus for
a better system of performance
measurement
Disadvantages:
Hilario P. Martinez
Our study
indicates . .
.
No valid
basis . . .
No legal
basis, Your
Horror!
21

22. Option # 5: Implement mandatory
entrepreneurship development of
government employees in preparation
for early retirement
Advantages:
An executive order may be issued
to implement a bureaucracy-wide
entrepreneurship development
program
may encourage early retirement
while giving way to competency
standards development and
workforce replenishment
may improve “life after public
service” outlook of government
employees
may spur greater banking activity,
better economy of communities
and ensure livelihood of would-be
retirees
Disadvantages:
May not decrease PS
spending in the
short term
May increase
document processing
activity in GSIS due
to lending banks’
verification
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23. Comparative Analysis of Sector Impact
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N – negative tendencies
Y – positive tendencies
1 – includes GSIS & local banks
2 – professional service providers
Legend :
Employee
Acceptance
NGA/LGU
Support
Financing
Institutions 1
Training
Institutions 2
Local
Economy
Option 1
(Status Quo)
I M P A C T / E F F E C TStrategic
Options
Option 2
(Re-engineering)
Option 3
(Privatization)
Option 4
(Service Contract)
Option 5
(Entrepreneurship)
23

24. Recommendation . . .
Comparatively,
Option #5 is the
option that may
encounter the
least resistance
It is the option
that may cost the
least but may
result in greater
outcome mutually
beneficial to all
sectors concerned
It encourages
greater
participation from
concerned sectors:
employees, NGAs/
LGUs, banks, NGOs,
training institutions
and business
It may be
implemented on a
massive scale with
minimum
disruption in
government
operations
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25. KEY PLAYERS IN OPTION #5
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26. The Government Service Insurance
System (GSIS)
Building Members’ Fund
Member-
Employees
premium
contribution
with
government
counterpart
Interest
earnings
from
membership
loans and
property
insurance
Investments
in Financial
Markets
Providing for Benefits and
Privileges
Salary, policy, education,
provident, calamity and
housing loans
Insurance proceeds
Retirement/pension
proceeds
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27. Organizations engage in Capability
Building Programs:
Government
Agencies
Private
Professional
Corporations
Industry-
specific Training
Institutions
Non-
Government
Organizations
Civic
Organizations
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The increase in client-government agencies requiring
assistance in imparting entrepreneurship capabilities in
retiring government employees triggers increase in
professional training providers, business models and
training delivery schemes

28. Financing Institutions
Social Service-Oriented
Public and Private
Institutions
•Government Agencies
•Non-Government Organizations
Government Banks
Commercial Banks
Rural Banks
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The increase in would-be-entrepreneurs
out of a pool of trained retirees requiring
financial assistance have a commensurate
increase in the financial market,
particularly in developing communities

29. Department of Trade and Industry
(DTI)
Trade and
Industry
Regulator
The government
agency in-charge of
entrepreneurship
training programs
Undertakes Small and
Medium Enterprises
Development assistance
and trade fairs
Maintains economic databases on
business activities and enterprises,
including trade and investment
statistics
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Plays an important role in guiding
would-be retirees in transitioning to
being successful business venture

30. LGU - The Provincial Government
Responsible for the formulation, update and
implementation of the Provincial Medium-
term Development Plan (PMTDP)
It shall disseminate to all agencies concerned
a compendium of all priority industries and
economic activities identified in the PMTDP
Responsible for coordination of nominees for
entrepreneurship training of government
agencies within the province
The LGU shall establish the schedule of the
training programs in coordination with all
nominating government units in the province
In coordination with DTI-recommended
training institutions, it shall cause the conduct
of the entrepreneurship training programs
It shall ensure that all financing institutions
in the province for this project are legitimate
and duly recognized by Government
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PROVINCIAL CAPITOL
30

31. Selected segment of government
employees’ market:
male and female
approaching the
age of 50 years old
holding a regular
permanent
appointment
in any agency in
the NGAs, LGUs,
GOCCs, and GFIs
with valid GSIS
Insurance Policy
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32. Hilario P. Martinez 32
GENERAL FEATURES OF OPTION # 5
The pursuit of the program to develop the entrepreneurial
skills of government employees in preparation for early
retirement while a workforce development program is being
implemented on a parallel stream

33. An insurance policy as a collateral for
investment
All regular government employees are
insured under the GSIS where premiums
are paid through mandatory monthly
salary deductions
Such instrument is mainly for retirement
gratuity purposes and for a specific term
and period of coverage
With an Insurance Policy in force, regular
employees may avail of policy and salary
loans until maturity or retirement,
whichever comes first
Aside from interest earned from loans
made by regular employees, GSIS invest
the Fund to generate more funds to pay
the retirement pensions of retirees
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GSIS Insurance
Policy
33

34. Conceptogram . . .
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3
GSIS/Bank
GSIS Insurance
Policy (Collateral)
4
Employees
with own
business
part-time
5
Employee
retires
after 2
years for
full-time
business
6New Employees,
Better Skills and
Fresher Ideas
7
34
BUSINESS
DEVELOPMENT
COURSE
Government
Employees
1
Nearing
Age 50
2

35. young, evolving
workforce
pays
loan
develops
business
General Process Flow
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GSIS
staff
=< 50
yrs old
provides training
Graduate employee
applies for bank loan
UPDATED
WORKFORCE
DEVT. & MGT.
PROGRAM
declines
retires w/ pay
UPDATED
COMPETENCY
STANDARDS
Ent.Dev.P
Service Provider
Hire new talents
Promote most qualified only
Early retiree
w/ own business
ENTREPRENEURSHIP
TRAINING
Insurance
policy
Re-categorized
De-prioritized
NGAs/LGUs
35

36. Parallel and Phased
Implementation Process
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PHASE 1
PHASE 2
PHASE 3

37. Phase 1 - Preparing the groundwork
activities
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Coordinating with
concerned
government
agencies
Defining provincial
priority economic
activities
Ensuring readiness
of Training
Institutions and
programs
37

38. Phase 2 – Implementing the
Entrepreneurship Development Program
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39. Phase 3 – Renew the workforce
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See www.slideshare.net for the following related project concepts:
1. “Standardizing Appointive Positions in Government” and
2. “Competency Assessment System for the Phil. Civil Service”
*

40. IMPLEMENTATION MECHANICS
OF OPTION #5
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41. Projected Trend of Competency Standards
Development for Government Position Titles* while
this Entrepreneurship Training cum Early Retirement
scheme is being implemented
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0
100
200
300
400
500
600
700
800
900
1000
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Position Titles w/o CS Position Titles w/ CS
* Please refer to proposed “Competency-based HRD System for Public Servants”
41

42. Selecting Employees for Yearly
Entrepreneurship Training
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* Referenced from current year
Employees approaching 50
years of age*
Employees with no
promotion* for the last 6 years
or more
Employees who have served
for at least 15 years*
Employees with no pending
administrative or criminal
case
42

43. Training for Business/Entrepreneurship
PROVINCIAL GOVERNMENT LED
Training and coaching to be
delivered by contracted
professional organizations
Business project should be the
employees’ choice: single proprietor,
group venture, or family-based
Project-based training: business
plan development, implementation,
evaluation
Proposed business site: preferably
in employees’ residential area or
birthplace
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44. Ensuring Maximum Gains – Coordinating
Training for Business/Entrepreneurship thru
the Provincial Governments
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Provincial Government-
Synchronized Training
Program for
Entrepreneurship
Development
Municipalities and
Cities within the
Province
Nat’l Gov’t Agencies
at Provincial Level Employee-Candidates with
Province-specific
Entrepreneurship project
Nominees
Nominees
Training
Schedules
44

45. Initiating and Developing the Business
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GSIS insurance policy as collateral
to secure business loan from local
banks/financing institutions
Supervised implementation of
business (agency-employer,
training institution and bank)
Two-years of business
development and loan payment
period
45

46. Encouraging Government Employees to
Retire Early
All government agencies to allocate funds
annually for entrepreneurship training of their
respective workforce approaching 50 years old
Employees who have successfully completed the
entrepreneurship training maybe accorded work
schedule flexibility in order to ensure the success
of their business project
Availing employees may get their early retirement
pay/cash surrender value of their insurance
(whichever is applicable at the time) staggered in
annual payments as allowed by GSIS
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47. Re-Categorizing/Re-Prioritizing 50 y/o
Employees Declining Entrepreneurship
Training and Early Retirement Option
Lowered priority consideration in future
availment of off-site local and overseas staff
development opportunities
Required to submit verifiable proofs of
acceptable performance level and personally
attributable accomplishments for two
successive years when seeking promotion
Accorded higher priority consideration in job
rotation and re-assignment as a mode of on-
the-job training
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48. EXPECTED RESULTS
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49. Summary of Anticipated Results
Gradual but progressive streamlining of the bureaucracy
while deliberately preparing government employees for
opportunities in the private sector after early retirement
Younger, productive retirees from government service
with businesses of their own
Continuous inflow of younger and better skilled recruits
in government service with fresh ideas
Progressive development of competency standards for
government positions while effecting streamlining
processes
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50. Greater
activities in
banking
system,
especially
rural banks,
servicing new
entrepreneurs
Economic
activities in
communities
nationwide
enhancing
MSMEs and
use of
indigenous
resources
Promotes
entrepreneurship
and
correspondingly,
the growth of
more training
institutions and
related providers
Value-adding of
GSIS insurance
policy as a valid
instrument/
collateral in
small business
financing
applications by
government
employees
Summary of Anticipated Results
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51. The Primary I-P-O-O
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+
+
INPUT P R O C E S S OUTPUT O U T C O M E
B A N K F I N A N C I N G
EARLY
RETIREES
51

52. Chronology of Effects, particularly
in the Regions
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MORE TRAINING
INSTITUTIONS
MORE MICRO and
SMALL ENTERPRISES
SHORT TERM MEDIUM TERM LONG TERM
MORE HAPPY
EARLY RETIREES
MORE PROGRESSIVE
and COMPETENT
WORKFORCE IN GOV’T
MORE TRAINING
PROGRAMS DEVELOPED
MORE and BETTER
COORDINATED
PROVINCIAL
TRAINING SESSIONS
52

53. The Next Steps …
•Firm up profile of government employees, to focus on
age, business inclination and motivation for business of
staff
For NGAs/LGUs:
•Make arrangement for use of GSIS policy as collateral
•Make arrangement to facilitate payment to early retirees
For GSIS:
•Firm up industry/economic priorities of LGUs
•Accreditation of training institutions and enterprise
development programs
For DTI in
coordination
with DILG:
•Firm up guidelines for local financing institutions for
micro-financing using GSIS instrument
For Bangko
Sentral ng
Pilipinas:
•Formulate the general guidelines for a Workforce
Development Program in a Competency-based System
Framework
For CSC:
Hilario P. Martinez 53

54. Action Points
Discussion with GSIS re use of policy contract
as collateral for business loan purposes
Discussion with bank associations for
extension of financial assistance to
government employees
Discussion with league of mayors and
governors for support and identification of
entrepreneurial opportunities
Discussion with industry associations for
support and linkaging
Discussion with associations of training
institutions for preparation of appropriate
training packages
Consultation with government employee
associations to promote early retirement and
entrepreneurship
Hilario P. Martinez 54

55. Hilario P. Martinez 55