Wednesday, September 29, 2010

Revenues, sustainability and efficiency

A successful economic activity at its core is driven by an obsession: to raise revenues on a sustained basis through efficiency? But it is founded on integrity?

For example: It is a disgrace for a banker to say that our economy will suffer if it is founded on integrity; it is likewise a disgrace if the Aquino Administration does not deal with illegal gambling – even if it’s simply perceived? The administration was elected on the professed commitment to slay corruption – they have to demonstrate resolve, and that means being proactive to eliminate any tinge of illegal gambling?

It is not easy to create a culture that is credible; but it is a requisite to attain excellence, thus success. (And credibility can’t be overemphasized. Or why the CEO of HP had to go.) The late Teodoro Valencia was able to demonstrate that Luneta could be a clean and pleasant environment. And because he did, everybody supported the cause. The bottom line: he created a successful Luneta Park because he had the resolve . . . that snowballed into a culture?

Without the foundation of integrity, an economic activity is bound to flounder? How can an administration create a culture of efficiency absent integrity? Why do managers of (not self-sustaining) GOCCs have the nerve to defend their fat bonuses? A CEO of an enterprise founded on integrity can simply knock on the heads of subordinates to support the cause? George W. Bush as president was not well liked (not even by the writer) but he was right when he said: if you’re not with me, you’re against me?

And so in the case of the Aquino Administration it can knock on the heads of subordinates, for example: ‘Fix the perceived problem of illegal gambling. And tell me how soon; and let me know when you’ve fixed it!’ Christmas is coming, but fixing a problem has to be characterized by a true sense of urgency? Why the need for swiftness? Because driving the country’s revenues on a sustained basis through efficiency is a much more daunting challenge – or why we remain underdeveloped despite decades of trying? And so paving the way – to minimize if not eliminate distractions – for the administration to be able to focus and tackle a formidable task is an imperative?

It is encouraging that the administration has spelled out its priority infrastructure projects. It would be ideal if in fact they are aligned to a set of strategic industry initiatives that will drive economic output and raise GDP substantially. It is the kind of alignment that government can adopt from the private sector. Likewise the communications team can get the administration geared up for efficiency – and set a high performance bar – by making it a policy to update media on its efforts, for instance: ‘The president is expecting the cabinet to reconcile the JFC’s (Joint Foreign Chambers) proposal on the 7 strategic industries with its own by “x” time. He has simultaneously asked the cabinet to dovetail the infrastructure priority projects to support the eventual strategic industries by “y” time; and the program to ensure funding via PPP by “z” time.’ (And this is where strategic thinking and innovation come into the mix?)

The administration could also be transparent on the reality of its social programs to overcome poverty, thus: ‘The administration’s budget cannot fund all the requisite programs so we will prioritize which ones will get funded ahead of the others. And the president has asked the cabinet to announce this by “z” time. Since we cannot fund all the projects we have to continue driving efficiencies and cost savings. For example, the president wants to announce the abolition of non-performing GOCCs by “a” time. And every government agency will submit their “zero-based” budgets by “b” time, to which they must adhere to. The administration will also present and as importantly explain to Congress these initiatives and their timelines so that they could support and accelerate enacting the requisite legislations – for the nation to realize these ambitious programs.’ (It is encouraging that the Tourism secretary has presented to legislators the reality of our tourism industry, and how far behind we are from our neighbors; and thus what we must do to drive tourism.)

Governing is not easy. The CEO of a major European global company recently, when asked what the most critical requirement of the job is, without hesitation, said: “He or she must first decide if indeed they want the job”.

No comments:

Post a Comment