One of the most effective mechanisms that would guarantee the continuity of the organization’s strategy is the creation of the Office for Strategy Management (OSM). The OSM is seen to be an important unit that oversees everything related to the strategy, from its formulation to its execution, and it is crucial for the OSM to have a direct link to the head of the organization. The OSM defines and clarifies the philosophy of performance management and the process required to execute strategy. The OSM is a unit within the organization that will orchestrate all operations related to the advancement of the identified strategy and makes sure that the personnel of the organization are doing their job in accordance with the strategy, may it be in the movement of measures, the progress of deliverables and other related initiatives, or the harmonization of the day-to-day activities that make up the organization’s operation with the PGS framework. This includes (but not limited to) cascading the strategy to lower-level units, monitoring and evaluating units or offices vis-à-vis their strategic contributions, managing the expectations of the leadership team and the members of the Multi-Sector Governance Council, and liaising with internal and external stakeholders.
General Functions
The OSM Shall be in charge of the following general functions:
Implement a mechanism to generate timely, accurate, and complete reports on key DOH scorecard indicators;
Ensure implementation of integrated performance management system including Performance Governance System (PGS), Quality Management System (QMS), and Strategic Performance Management System (SPMS);
Provide regular feedback and technical assistance to concerned Divisions/Departments/Units/Sections to ensure compliance with reporting requirements and facilitate strategy execution in line with the DOH deliverables.
Coordinate with the focal person/team designated by the Division/Department/Units/Sections for OSM-related concerns in their respective offices;
Provide secretariat support to Multi-Sectoral Governance Council (BMC-MSGC); and
Perform other functions as may be deemed necessary by the MCC/ExeCom.
Specific Functions/Technical Support
Collect data related to the DOH scorecard and monitor overall performance;
Monitor deliverables relative to DOH Indicators;
Collaborate with concerned Divisions/Departments/Units/Sections in monitoring hospital indicators and in generating reports relative to hospital performance;
Provide technical assistance to concerned Divisions/Departments/Units/Sections for the conduct of management review and other performance review activities; and
Collaborate with the PHU in the design and implementation of the DOH Strategies.
STRATEGY MANAGEMENT PROCESS
The nine (9) strategy management processes under the PGS shall be the responsibility of the OSM as defined below:
A. STRATEGY PLANNING
The strategic planning functions of the OSM are the following: Gathering and Analyzing Information; Identifying Critical Issues and Concerns Confronting the Organization; Formulating//Reviewing/Revising the Charter Statements; Developing the Road Map and Scorecards. The activities to fulfill these functions shall be undertaken in coordination/consultation with the specialty center's head and department chair.
1. Gathering and Analyzing Information consists of external and internal assessments and feedback from the stakeholders.
a. External assessment is a process that systemically gathers and interprets relevant data to identify external opportunities and threats from the external world, its competitor, and itself.
b. Internal assessment is an examination of the BMC’s strengths and weaknesses and knowing where the hospital is now and where it plans to go in five (5) years.
c. Stakeholder’s assessment is a management tool that determines the BMC’s response to an individual or organization’s needs and perceptions about the Institution.
2. Identifying Critical Issues and Concerns
Critical issues are concerns that need to be identified clearly to be able to address them properly. This could be done by establishing goals and developing strategies to address issues and concerns, as they are long-standing challenges that significantly impact the Institution.
3. Formulating/ Reviewing/ Revising the Charter Statement (Vision, Mission, and Core Values)
a. Crafting the Strategic Vision.
The vision statement defines the desired future state of an organization, providing guidance as to what it wants to achieve over time.
b. Formulating the Mission
The mission statement defines an organization's purpose: its existence, what’s to be done and the reason for doing it, its competitive advantage, and the public it desires to serve. If a mission statement already exists, the focus is on reviewing or revising it based on a new vision statement.
c. Cultivating and Nurturing Core Values
The core values are the essence of corporate culture, representing Frameworks/principles directing the process of organizational development and growth. Thus, core values are carefully cultivated to ensure the agency understands and appreciates them. A values - audit is a tool to measure how well the agency and its employees live the core values.
4. Developing the Strategy Map (Perspectives and Strategic Objectives)
A Strategy Map (SM) is an internal communications tool in the form of a diagram that captures and communicates how the strategic goals are being pursued and creates value by connecting strategic objectives in explicit cause and effect relationship with each other, using the four (4) perspectives of the Balanced Scorecard: outcome, core, support, and strategic functions. In the process, BMC clarifies its business proposition, determining both its value-added through internal core processes and the value of intangible assets.
The governance perspective of the strategy map is in the established strategic alignment among the officers and employees. This alignment balances the contradictory forces paving the way to determine which among the organization’s key performance indicators and critical success factors are more relevant. With this, the successful implementation of the strategic map is made easier and more significant.
5. Formulating the Performance Governance Scorecard
A Governance Scorecard is a performance metric used in strategic management to identify and improve various internal functions and their resulting external outcomes. The scorecard attempts to provide feedback to an organization enabling management to monitor results. The management uses the governance scorecard as an essential component of PGS as an internal and external mechanism. Internally, the management motivates its people to execute plans and monitors results. Externally, the whole organization is able to articulate the strategy and communicate the details to its stakeholders. Essentially, BMC achieves the principles of transparency and public accountability, to which the PGS is anchored and advocated as well by the MSGC.
B. SCORECARD MANAGEMENT
OSM has the following functions in managing the scorecard:
1. Providing the agency with new updates on methodology and tools related to Balanced Scorecard Management.
2. Ensuring consistency in the scorecard’s terminology and measurement definition.
3. Facilitating consultations relative to the target measure adjustments.
4. Updating the scorecard based on agreed newly identified strategies.
5. Recommending targets, strategic initiatives, or specific programs required to achieve performance targets.
6. Ensuring the integrity of scorecard data.
C. ORGANIZATIONAL ALIGNMENT
OSM coordinates with various workgroups of the entire agency to consistently understand strategies and focus on realizing corporate synergy. The organizational alignment functions of OSM include:
1. Defining on the corporate level the synergies to be created through cross-functional behavior at the second level of the agency.
2. Linking second-level scorecards and unit breakthroughs to corporate strategy and strategic objectives.
3. Linking the various stakeholders to the agency’s strategy.
4. Organizing the management team’s review and approval process of the scorecards developed by the various workgroup units and stakeholders’ expectations.
D. STRATEGY REVIEWS
A performance management review is needed to determine strategic adjustments if needed. OSM, which facilitates the various activities, conducts briefings on the identified issues and ensures that these are properly addressed. Likewise, it maintains the records of the formulated action plans and conducts monitoring activities to ensure that all these are carried out as planned.
E. STRATEGY COMMUNICATION
Cascading the strategy, objectives, performance measures, and initiatives are important in increasing employee awareness which enhances their contribution to the attainment of the strategy. With this, OSM communicates the scorecard to various workgroups and stakeholders to promote a better understanding of the strategy. It also ensures that training and education programs on a balanced scorecard are included in the employee’s competency programs.
F. INITIATIVE MANAGEMENT
Cross-functional and inter-organizational activities are encouraged. These activities involve identifying, selecting, and managing strategic initiatives to achieve corporate objectives. OSM regularly monitors these initiatives to ensure results and recommends consolidation and/or elimination to maximize benefits.
G. FINANCIAL RESOURCES ALIGNMENT
OSM coordinates with the Finance and Administration Department to ensure that human and financial resources programs are linked to the strategy.
H. HUMAN RESOURCES ALIGNMENT
OSM establishes the link between the strategy and the human resources unit's various employee-focused systems and processes. The link enhances the human capital resources, ensuring the strategy's understanding of everyone’s job.
I. BEST PRACTICES SHARING
OSM renders a coordinating role in identifying, institutionalizing, and transferring best practices throughout the agency. Best practices are a set of guidelines, ethics, or ideas that represent the most efficient or prudent course of action.