The University of the Philippines in the 21 st Century:

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1 The University of the Philippines in the 21 st Century: Helping the Philippines Become Globally Competitive Through Strategic and Operational Excellence* (Copyright 2015 by Maria Victoria A. Grageda-Smith & Steven S. Smith) By Steven S. Smith and Maria Victoria A. Grageda-Smith

2 Introduction: Presentation structure What are the key factors that will increase the Philippines global competitiveness? World Economic Forum (WEF) Global Competitive Index (GCI) How can U.P. help the Philippines become more globally competitive? Strategic excellence Operational excellence Examine some highlights of U.P. s current program of action.

3 What is Global Competitiveness? the set of institutions, policies, and factors that determine the level of productivity of a country* level of productivity, in turn, sets the level of prosperity that can be reached by an economy productivity level also determines the rates of return obtained by investments in an economy, which in turn are the fundamental drivers of its growth rates** World Economic Forum measures global competiveness through a Global Competitive Index based on 12 pillars.

4 Sustainable Development & Sustainable Competitiveness Sustainable development: development that meets the needs of the present without compromising the ability of future generations to meet their own needs. definition captures dimensions of development that go beyond the usual boundaries of economic growth in order to include both the tangible & intangible necessities of life. Sustainable competitiveness: places more emphasis on the importance of productivity as a driver of prosperity and long-term growth

5 Measuring global competitiveness : The 12 pillars of the World Economic Forum (WEF) global competitive index (GCI) 1. Institutions 2. Infrastructure 3. Macroeconomic environment 4. Health and primary education 5. Higher education and training 7. Labor market efficiency 8. Financial market development 9. Technological readiness 10. Market size 11. Business sophistication 12. Innovation 6. Goods market efficiency

6 WEF s GCI Framework

7 Subindex Weights & Income Thresholds for stages of development

8 Philippines Key Indicators

9 Countries Stages of Development

10 Philippines' GCI Report Card

11 Philippines GCI Analysis & Summary 1 Up seven places, the Philippines (52nd) continues its upward trend. The country s gain of 33 places since 2010 is the largest over that period among all countries studied. The results suggest that the reforms of the past four years have bolstered the country s economic fundamentals. The trends across most of the 12 pillars are positive, and in some cases truly remarkable. In the institutions pillar (67th), the Philippines has leapfrogged some 50 places since In particular, there are signs that the efforts made against corruption have started bearing fruit: in terms of ethics and corruption, the country has moved from 135th in 2010 to 81st this year. The recent success of the government in tackling some of the most pressing structural issues provides evidence that bold reforms can yield positive results relatively quickly. A similar pattern is observed in terms of government efficiency (69th) and the protection of property rights (63rd).

12 Philippines GCI Analysis & Summary 2 Finally, the Philippines has made significant strides in terms of technological adoption (69th, up eight). The country is one of the best digitally connected developing Asian nations, close behind Malaysia (60th) and Thailand (65th). The same cannot be said of infrastructure, however, which remains poor (91st), especially with respect to airport (108th) and seaport (101st) infrastructure. The situation is just as worrisome in the labor market, which suffers from rigidities and inefficiencies: the Philippines ranks a mediocre 91st in this dimension and almost no progress has been made since Finally, security remains an issue (89th), in particular in terms of costs that the threat of terrorism imposes on businesses (110th).

13 Philippines Greatest Problems for Doing Business

14 Philippines GCI Requirements

15 Fifth pillar: Higher education and training Quantity of education Quality of education On-the-job training

16 Sixth pillar: Goods market efficiency intensity of domestic and foreign competition quality of demand conditions

17 Seventh pillar: Labor market efficiency labor market efficiency and flexibility meritocracy gender parity in the workplace efficient use of talent

18 Eighth pillar: Financial market development Financial and banking system must have: efficiency stability trustworthiness

19 Ninth pillar: Technological readiness measures the agility with which an economy adopts existing technologies to enhance the productivity of its industries specific emphasis on fully leveraging information and communication technologies (ICTs) in daily activities and production processes for increased efficiency and enabling innovation for competitiveness.

20 Tenth pillar: Market size Domestic market size Foreign market size

21 A globally competitive Philippines Higher education and training Goods market efficiency Labor market efficiency Financial market dev t Tech readiness Market size Leadership Integrity + Political will!

22 a great University for a globally competitive Philippines. AGILE*: Approach: multi/interdis cip-linary Global expertise network Innovative process & technology Leadership & Political Will Efficient use & dev t of extensive knowledge base S E Strategic Excellence O P Operational Excellence

23 Dual Elements of Excellence Strategic Excellence Alignment of U.P. s core competencies with Philippine s GCI needs Operational Excellence Efficiency Tools

24 Strategic Excellence: Philippines GCI Requirements* Higher education & training Goods market efficiency Labor market efficiency Financial market dev t Technological readiness Market size

25 U.P. s core competencies Education R & D* Leadership & Public Service

26 Alignment of U.P. s core competencies with Philippines GCI requirements U.P. s core competencies Global Competitiveness R.P. s key GCI requirements

27 U.P. s Vision for Strategic and Operational Excellence

28 h2 realize u.p. s vision H2 make U.P. a great university, taking a leadership role in the development of a globally competitive Philippines? U.P. as a think-tank for Philippine governance & public policy development and implementation to fulfill key factors to transition Philippines to greater global competitiveness

29 Strategic excellence: U.P. Charter as Mission statement

30 Strategic Excellence: U.P. as Philippines Leadership Think-Tank Define U.P. s area of influence and control in affecting Philippine national goals & policies: Assess U.P. Charter goals vis-a-vis Philippine national goals Assess & develop partnership with Philippine government: create opportunities to inform & affect Philippine government policy &implementation Assess & develop collaborations with private sector investors and entrepreneurs

31 Strategic Excellence: Educating Philippine s largest & most crucial resource Filipinos! EE vs. ER mentality* Educating for the next level** The problem of brain-drain *** Global positioning of Philippine talent**** The role of language: Filipino vs. English*****

32 Strategic Excellence: Democratizing Student Population 1

33 Strategic Excellence: Democratizing Student Population 2

34 Strategic Excellence: Democratizing Student Population 3 Need to substantially address poverty issues: Democratizing student population goes hand-in-hand with democratizing economic opportunities for all Filipinos H2 bridge gap between extreme wealth and extreme poverty by building a bigger and stronger middle class U.P. School of Economics & U.P. Law Center: H2 translate research and knowledge into effective Philippine economic policy, legislation & implementation *

35 Achieving Operational Excellence Technology Technology

36 Efficiency Tools Organizational Efficiency Span of Control RACI Process Efficiency Brown Paper Gantt Chart Leaky Pipes Technology Technology Efficiency Technology Stack Workflow Rules Engine

37 Brown Paper: Documenting the Process Who Activity 1 Activity 2 Decision Yes Who Activity 3 Activity 4 No Who 1. Follow the paper 2. Attach actual forms or web site pages 3. Don t enter into computer 4. Identify activity duration (range & mode) 5. Identify process duration (range & mode) 6. Quantify Leaky Pipes Activity 5 Activity 6

38 Recent Technology & Implications for Process Conformity Who Activity 1 Activity 2 Decision Ye s Who Activity 3 Activity 4 N o Who Activity 5 Activity 6 Workflow ensures conforming to a process with zero tolerance for exceptions. Rules Engine ensures quick & consistent decisions with explanation.

39 RACI: Roles & Responsibilities Activity 1 Activity 2 Decision 1 Activity 3 Activity 4 Activity 5 Activity 6

40 RACI: Vertical & Horizontal Review 1. Exactly 1 Accountable 2. At least 1 Responsible 1. Too many Accountable? 2. Too many Responsible? 3. If someone is only Consult or Inform for all activities, are they really necessary for this process? Too many squares filled? How to change Responsible to Consult? How to change Consult to Inform? How to eliminate Inform?

41 Greatest challenges in effecting transformative change Transcending tradition Political will of top leadership Communication Overcoming group think of subsidiary leaders and groups

42 Conclusion & Summary Strategic excellence: focus on U.P. s core competencies that contribute most to fulfilling Philippines GCI requirements to catapult Philippines to next stage of global competiveness Operational excellence: practice vital change management & efficiency tools