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2

We in the Philippine Navy believe that our vast waters serve to connect rather than divide the islands that make up our proud maritime nation. Our waters, teeming

with abundant natural resources, are our nation’s great blessing, and in them lies one of the keys to our security and progress as a country.

In the same way, it is our shared aspiration of a peaceful and progressive Philippines and a prosperous life for our countrymen that connects the different

institutions in the government, private sector, and the civil society. We all have the same end in mind; and in the recent years, we have seen ourselves gradually converging and rowing together to reach that end.

Through the Islands of Good Governance 2015 initiative of the National

Competitiveness Council (NCC) and the Institute for Solidarity in Asia (ISA), we were able to accelerate this convergence. The Philippine Navy is one with this group of good governance trailblazers – this archipelago of institutions working together to

strengthen performance excellence towards global competitiveness of our beloved country.

With our Sail Plan 2020 as our guide, we were able to fulfill the commitments

we made in 2013 to be a Sentinel of the Sea, a Standard of Excellence, and a

Bastion of Innovation. It is a feat only made possible through our people – our sailors,

marines, civilian personnel, and reservists – who are working persistently to accomplish our mission and put flesh to our aspirations, the support of the national

leadership, the untiring assistance of our partners in NCC, ISA, and other PGS practitioners, and the faith of our stakeholders – the Filipino people – who continue to

dream and believe with the Navy. But the journey does not stop here. Even as we have exceeded our

breakthrough commitments, the IGG is but one waypoint in our journey towards our vision. Our Navy will be sailing on, continuing to live up to the values of good

governance as we sustain our momentum towards modernization. It is our rudder that will keep us steady when sailing in turbulent waters of challenges within and outside our organization. It is the north star that will guide us back on our track whenever we

have to adjust our course to accommodate inevitable and necessary changes.

With our personnel and stakeholders onboard our Sail Plan journey, our Navy shall continue gaining headway, covering more waypoints, fulfilling its vision to become a strong and credible force that effectively protects our seas and secures our

bright future as a maritime nation.

CAESAR C TACCAD

Vice Admiral, AFP Flag Officer In Command, PN

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4

5

6

7

The Philippines is a maritime nation.

History has shown that we are a seafaring people, and our country’s geography

has given us exceptional seamanship and strong affinity to the waters. Indeed, destiny

has made it our primary responsibility to protect our nation’s rich maritime

resources and harness our capabilities to effectively manage and control our seas.

Given this imperative, the

Philippine Navy (PN) has taken up the crucial role of being the guardian of our archipelago from its inception

more than a century ago. Article II, Section 3 of the Philippine

Constitution states that: “The Armed Forces of the Philippines is the protector of the people and the State. Its goal is to secure the sovereignty of the state

and the integrity of the National Territory.” As the naval arm of the AFP, the PN is the major service of the AFP that provides the naval component force for our country’s

defense and protection. The PN’s effectiveness, however,

has been constrained by enormous internal and external challenges that have left it

trailing behind the navies in the region and in the world. For a long time, our Navy’s organization, assets, and equipment had

fallen to conditions that considerably reduced its ability to effectively perform its

mandate. It has suffered from benign neglect in terms of modernization and capability build-up.

It likewise lost many real estate under its custody because it had no real strong

justification to back its claim to keep and develop them. And just like its platforms, the Navy was using doctrines, which embody the way they perform their operations that

are outdated and obsolete.

8

The Birth of the Sail Plan

These realities, a stronger call for good governance, and the increasing

demands of the ever-changing security environment where it operates caused the Navy to take a more purposive look on the way it does things and the direction that its organization is taking. After a thorough strategic assessment, the Navy saw the glaring

need for a turn-around.

From November 06 to 08, 2006, a group of Navy Officers, from the rank of Rear Admiral and Commodore down to Lieutenant and Ensign, guided by Dr. Jesus P. Estanislao and the Institute for Solidarity in Asia (ISA), and other renowned

personalities representing the Navy’s stakeholders, crafted the current North Star of the PN in its attempt to turn its organization around: the PN Strategic Sail Plan 2020.

Commonly called the “Sail Plan,” it serves as the Navy’s strategy for

organizational development. The Sail Plan outlines the specific and concrete steps

that the Navy will take in order to realize the shared aspiration of its men and women: that by 2020, we shall be a strong and credible Navy that our maritime nation can be

proud of.

In crafting the Sail Plan, the Navy took a deliberate assessment of the strategic issues it is confronting in the areas of executive focus, doctrine development, resource planning and management, personnel development, facilities, planning process,

leadership, and the link between the budget and the strategy. Based on the issues i t identified, the Navy determined the ideal state of its organization that will be able to

support effective execution and sustainment of naval and maritime operations, in support to the accomplishment of the AFP mission.

9

The development of the PN Sail Plan 2020, designed to be the Navy’s accompanying framework of the DND’s and the AFP’s major thrusts, provide direction

and focus in undertaking its mandated tasks, a management tool that details the journey that the Navy will embark on towards attaining the vision of being a strong and

credible force.

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11

A. THE PHILIPPINE NAVY STRATEGIC SAIL PLAN 2020

1. PN CHARTER STATEMENT

As the Navy’s developmental strategy, the Sail Plan is composed of the PN Charter Statement; the Governance Strategy Map; and the Enterprise Scorecard, also known as the FOIC, PN Balanced Scorecard.

The PN Charter Statement is composed of the vision, mission and core

values of the Navy. The Charter Statement provides a grounded framework from which every plan or program that the organization will undertake shall be aligned. It also serves as a reminder to every sailor, marine, civilian personnel,

and reservist of their professional objectives and an inspiration for them to better serve the country, the Navy, and its stakeholders.

The PN Vision articulates what the Navy aims to realize and achieve

within a definite time horizon. It is a long-term goal that describes the aspiration

of the Navy in so far as the course it would take in the future is concerned.

“By 2020, we shall be a strong and credible Navy that our maritime nation can be proud of.”

The Mission states the Navy’s mandate and its specific contribution to

the achievement of the Higher Headquarters’ mission. It gives the Navy a clear

direction in continuing its efforts to further develop its capabilities as a major service of the Armed Forces of the Philippines.

“To organize, train, equip, maintain, develop and deploy forces for prompt and sustained naval and maritime operations to accomplish the

AFP mission”

The Core Values serves as the foundation of the efforts to further build

the Navy organization. It outlines the principles, standards and ideals that every Navy personnel must observe in performing their functions. It serves as a guide

in molding and sustaining the character and lifestyle that will uplift the individual performance of every Navy personnel and ensure the organization’s overall mission accomplishment.

Honor Solidarity Dedication Leadership Patriotism Professionalism

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2. STRATEGY MAP

The PN Governance Strategy, also known as the PN Strategy Map, tells

the story of how the Navy intends to reach its desired state by 2020. It serves

as the basis for all capability-development initiatives of the Navy. Anchored on the PN Charter Statement, the PN Strategy Map links the three (3) strategic themes, five (5) perspectives and 12 strategic objectives.

The PN Strategy Map provides the visual illustration of the cause-and-effect relationship among the strategic objectives of the Sail Plan with the

ultimate objective of achieving the vision of the Navy. These strategic objectives address the Navy’s strategic issues that were identified in 2006.

The Strategic Objectives are grouped into five perspectives: Personnel,

Organization, Resources, Capability, and Accomplishment.

The strategy map is read from bottom up, starting with the Personnel

perspective, highlighting the fact that the sailors, marines and civilian personnel

of the Navy are the foundation of its success and effectiveness. This perspective pertains to the investments that must be made to upgrade the

motivation, values, knowledge and skills of people in the organization. The Organization perspective, on the other hand, pertains to the improvement in the systems and processes of the Navy. The Resources perspective

corresponds to the effective, efficient and transparent management and utilization of the Navy’s financial resources while the Capability perspective

contains the development of its platforms, assets, equipment, and facilities. Finally, the Accomplishment perspective contains the Navy’s desired

outcomes: a secured maritime environment and satisfied stakeholders. The 12 strategic objectives likewise address the strategic themes of Mission Responsiveness, Maritime Security and Maritime Prosperity.

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3. PN GOVERNANCE SCORECARD

The PN Governance Scorecard, commonly known as the FOIC, PN Balanced Scorecard (BSC), was crafted to manage the implementation of the

PN Strategy Map. It translates the objectives contained in the strategy map into defined performance measures, targets and initiatives. The BSC also serves as the primary guide of the Navy in monitoring the progress and attainment of the

desired strategic objectives of the Sail Plan. It gives a clearer view of the specific projects, programs and activities that the Navy has to undertake in

order to address the current challenges it is facing and to take advantage of its strengths and opportunities.

An effective BSC is an ever-evolving, dynamic tool that is able to adapt to the changes in the strategic issues of the organization. Hence, along the

journey of implementing the Sail Plan, the Navy also regularly revisits and revises the BSC of the FOIC, PN. The first-ever FOIC, PN BSC was crafted in 2006. As the Navy progressed in the implementation of the Sail Plan, the PN

saw the need to rationalize the measures and strategic initiatives contained in the FOIC, PN BSC as some of them were no longer responsive. Some are also

not strategic but were rather operational and tactical in nature. With this concern, the PN revised its BSC in 2010 during a Strategy Review of the Sail Plan. This brought improvements in the way the PN manages the FOIC, PN

BSC. Measures of strategic objectives were trimmed down from 31 to 22. The initiatives contained in the BSC have become more concise and strategic. A

strategy review was again conducted in 2012 to verify the validity of the objectives, measures and initiatives in the FOIC, PN BSC. This was followed by an intensive PN Officers Core Team Training in 2013 which aimed to further

cascade the strategy of the PN to its units and individual personnel. Finally, in December 2014, the PN Sail Plan Review served as an avenue for the PN to

further rationalize the existing objectives, measures, and initiatives in the FOIC, PN Balanced Scorecard. Additionally, the PN was able to validate the alignment of the PN objectives and initiatives to the AFP Transformation Roadmap 2028.

To date, the PN Governance Scorecard has 12 strategic objectives, 25

measures, and 14 strategic initiatives which are more responsive to the needs of the Navy and its stakeholders, both internal and external.

14

PERSPEC-TIVES

STRATEGIC OBJECTIVES

MEASURES

2015 2020 INITIATIVES 1st

Qtr 2nd

Qtr Targ

et

Personnel 1. Develop Highly

Competent & Motivated Professionals

(N1)

A. Personnel

Readiness Rating (N1)

62%

66% 75% 95% 1. Sustain the PN Education

and Training Strategy (N8)

100% B. % of

Personnel with at Very

Satisfactory PER Rating

(N1)

99.6% 100

%

C. Morale and Discipline

Survey Rating (TNIG)

95.66%

94.72%

95% 95% 2. Institutionalize the Human

Capital Strategy (N1)

Organization 2.Develop

Sound & Appropriate Maritime

Doctrines (N8)

A. No. of

priority keystone doctrines

developed (N8)

3 3 5 TBD 3. Establish

PN Doctrines Development Strategy (N8)

B. No. of support

doctrines and administra

tive manual developed

(N8)

3 3 7 TBD

C. Percentage of

promulgated doctrine/

manuals tested and

evaluated (N8)

65.64%

81.82%

80% 95%

3. Achieve Responsive

Naval Reservists Program (N9)

A. No. of Mission

Capable Reserve Units (N9)

2 12 4. Institute a Sustainable

PN Reserve Force Development

Strategy (N9)

FLAG OFFICER IN COMMAND, PHILIPPINE NAVY

BALANCED SCORECARD

15

4. Adopt Dynamic & Responsive

Naval Organization (N3)

A. % of completed Initiatives

IAW the Reorganization Plan

of AADS (N3)

12%

16% 33% 100% 5. Build a Responsive Naval Force

Structure (N3)

B. No. of

PN Units with ISO Certified

Processes (NSO)

14 14 14 14 6. Pursue

ISO-Certified Processes (NSO)

C. Number

of Subordinate Units of

ISO-Certified PN Units

with Cascaded Processe

s (NSO)

13 13 22 TBD

Resources

5. Attain Adequate Financial

Resources (NRMO)

A. Total Estimated Monetary

Value of Mission Essential

PAPs Contracted by PN

with external stakehold

ers (NRMO)

10M

28M 909M

TBD 7. Pursue Opportunities for other

sources of funds (NRMO)

6. Ensure Balanced

Financial Programs (NRMO)

A. % of Budget

Allocation Intended for UFO

Executed (NMFO)

43%

58% 90% 90% 8. Strengthen

Resource Management System

(NRMO)

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Capability 7. Achieve a Responsive Naval

Sustainment System (N4)

A. Supply Readiness Rating

(N4)

100

%

TBD 9. Develop a PN Logistics Management

Strategy (N4)

B. Mission Critical

and Mission Essential

Equipment Readines

s Rating (N4)

77%

78.26%

75% 95%

8. Develop Reliable Naval

Facilities (N4)

A. Facility Readines

s Rating (N4)

84%

85% 75% 95% 10. Implement

the PN Basing Strategy (PN

REMO) B. Number

of Completed

Infrastructure Projects

Contributory to Major

Final Output (TNCE)

25 109 207 TBD

9. Develop

Responsive Naval Capabilities

(N5)

A.

Percentage Capability

Development Plan Acquired

for Horizon One (N5)

9.5

%

9.5

%

9.5% Measu

re to be

replac

ed by % for

Horizo

n Two

11.

Implement the PN Capability

Development Plan (N5)

Accomplishme

nt

10. Optimal

Level of Operational Readiness (N3)

A.

OPREVAL Rating (N3)

62

%

66% 73% TBD 12. Improve

Operational Readiness Management

Program (N3)

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11. Secured Maritime Environment

(N2)

A. Increase the

number of MSA Platforms

(N2)

21 21 31 TBD 13. Enhance Efficient Data Collection &

Reporting System on Naval

Operations (N3) B.

Increase the

number of Engagements in

Strategic Level (N3)

7 13 TBD TBD

C. Number

of Patrol in PH Critical

Areas (N3)

767 1012

2650 TBD

12. Highly Satisfied

Stakeholders (N7)

A. PN Units

Satisfaction Rating (TNIG)

87.50%

TBD 14. Implement a

Dynamic Strategic Communicati

ons Plan (N7) B. Unified

Commands Satisfactio

n Rating (TNIG)

89.4

0%

TBD

C. Public Satisfactio

n Rating (N7)

S HS

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4. Breakthroughs: Realizing the Aspirations of the Sail Plan

Since the crafting of the PN Strategic Sail Plan in 2006, the PN has achieved major breakthroughs geared towards genuine organizational

transformation and development. The following are the achievements in the Sail Plan as reflected by the measures and initiatives in the FOIC, PN BSC for the years 2010-2014.

Personnel Perspective

“Increased Motivation and Competence of PN Personnel”

Initiatives:

1. Human Capital Strategy

2. Education and Training Strategy 3. Integrated Personnel Management System

Measures:

A. Morale and Discipline Survey Rating

2010 2011 2012 2013 2014

Actual Target Actual Target Actual Target Actual Target Actual Target

93.82% 86% 93.27% 86% 93.90% 86% 94.20% 86% 91.26% 86%

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B. Personnel Readiness Rating

2010 2011 2012 2013 2014

Actual Target Actual Target Actual Target Actual Target Actual Target

74.13% 65% 75.93% 70% 83.42% 73% 80.85% 85% 85%

C. Training Readiness

2010 2011 2012 2013 2014

Actual Target Actual Target Actual Target Actual Target Actual Target

72.66% 70% 76.62% 75% 83.98% 80% 97% 85% Measure became a major component of Personnel

Readiness Rating

86% 86% 86% 86% 86%

93.82%93.27%

93.90% 94.20%

91.26%

80%

82%

84%

86%

88%

90%

92%

94%

96%

2010 2011 2012 2013 2014

Target Actual

65%70%

73%

85%

74.13% 75.93%

83.42% 80.85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2010 2011 2012 2013 2014

Target Actual

20

Organization Perspective

“Enhanced core processes of sustainment systems and organizational capability to

manage, execute and sustain operations”

Initiatives:

1. ISO-Certification of PN Units and Offices 2. Development of Doctrine Management System

3. Full Operationalization of PN R&D Units (FMWC, NRTDC, ONSS)

Measures:

A. Number of PN Units with ISO-Certified Systems and Core Processes

70%75%

80%85%

72.66%76.62%

85%

97%

0%

20%

40%

60%

80%

100%

120%

2010 2011 2012 2013 2014Target Actual

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2012 2013 2014

Actual Target Actual Target Actual Target

4 4 6 6 10 10

*Note: Target and Actual are overlapping

B. Percentage of Existing Doctrines Reviewed

2012 2013 2014

Actual Target Actual Target Actual Target

9.00% 20% 55% 40% 70% 40%

20%

40% 40%

9.00%

55.00%

70.00%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2012 2013 2014

Target Actual

4

6

10

4

6

10

0

2

4

6

8

10

12

2012 2013 2014

Target Actual

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Resource Perspective

“Increased efficiency of PN financial resource management and link of budget to

strategy”

Initiative: Linking of Budget to Strategy

Measures:

A. Percentage of Budget Allocation intended for the Key Result Areas of the President’s Social Contract

2010 2011 2012 2013 2014

Actual Target Actual Target Actual Target Actual Target Actual Target

97.04%% 95% 97.30% 95% 96.99% 95% 96.99% 95% 99.84% 95%

95% 95% 95% 95% 95%

97.04%97.30%

96.99% 96.99%

99.84%

92%

93%

94%

95%

96%

97%

98%

99%

100%

101%

2010 2011 2012 2013 2014

Target Actual

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B. Percentage of Budget Allocation for the Unit Final Output

2012 2013 2014

Actual Target Actual Target Actual Target

75.40% 70% 75.99% 70% 75.99% 70%

Capability Perspective

“Increased Operational Readiness of PN Units”

70% 70% 70%

75.40%

75.99% 75.99%

67%

68%

69%

70%

71%

72%

73%

74%

75%

76%

77%

2012 2013 2014

Target Actual

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Initiatives:

1. Acquisition of new capabilities and platforms 2. Development of Maritime Situational Awareness Platforms 3. Development of the Active Archipelagic Defense Strategy (AADS)

Measures:

A. Operational Readiness Evaluation Rating

2010 2011 2012 2013 2014

Actual Target Actual Target Actual Target Actual Target Actual Target

66% 78.56% 68% 77.01% 79.97% 77.01% 83.49% 73% 83.49% 73%

B. % of Capability Development Program Implemented

2010 2011 2012 2013 2014

Actual Target Actual Target Actual Target Actual Target Actual Target

88% 100% 100% 100% 10% 20% 30% 25% 88% 100%

55% 55% 55%

66%68%

70%73%

64.71% 66.65%

71.66%

78.56% 77.01%79.97%

83.49%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2007 2008 2009 2010 2011 2012 2013

Target Actual

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With these breakthroughs in the PN Sail Plan, the Navy has fostered a culture of professionalism, good governance and leadership excellence. From

a legacy-based Navy, the Navy has become more strategy-driven, giving priorities to the strategic needs of the organization and personnel instead of personal interests. This further resulted to diminishing silos in the organization.

Huge adjustments to align with the new plans of a new leader were already avoided. It also enabled the PN to focus and maximize its efforts and resources

on key areas of improvement such as personnel competency, organizational excellence, resource management efficiency, capability upgrade and stakeholder satisfaction. From tactical to routine way of thinking, PN personnel,

from the senior leaders down to the junior officers have started to think long -term and more strategic. These are just some of the definite manifestations that

the Navy has indeed transformed and has institutionalized the Sail Plan in the organization.

Notably, the roots of the three PN IGG commitments can be traced through the initiatives in the Sail Plan that serve as vital components in bringing

the change in the Navy organization.

20%25%

100% 100% 100%

20%25%

100%

10%

30%

88% 88%

100%

10%

30%

88%

0%

20%

40%

60%

80%

100%

120%

2007 2008 2009 2010 2011 2012 2013 2014

Target Actual

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B. IMPLEMENTING THE STRATEGY

1. Cascading the Strategy

The PN Strategic Sail Plan 2020 was translated into operational terms following the Performance Governance System (PGS) of the

Institute for Solidarity in Asia and the Balanced Scorecard (BSC) Framework of Drs. Robert S. Kaplan and David P. Norton.

With the unique nature of the PN as a military organization,

cascading and alignment was done using a top-down approach.

Through this, scorecards at all levels of the PN organization—from the Flag Officer in Command, PN (FOIC, PN) down to the individual Navy

personnel—are synchronized in achieving the objectives of the Sail Plan.

Cascading started in 2010 and was completed in 2013, when the PN Sail Plan reached the individual level. Notwithstanding this, the PN

continues to revalidate the PN Sail Plan and realign the initiatives of PN Units.

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To ensure alignment

and synchronization, all PN units and staff

use a customized framework on the Balanced Scorecard.

Their template is composed of input,

output, and outcome perspectives. The input perspectives—

Personnel, Organization,

Resource and Capability—focuses on the attainment of the objectives and the implementation of the initiatives that

build the capacity and capability of the organization, which will then lead to the overall readiness of the PN, mission accomplishment and stakeholder

satisfaction. On the other hand, the Accomplishment perspective is the output and outcome perspective because it contains the result and the impact of the individual contributions and achievements completed in the P-O-R-C or “input”

perspectives.

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Functional Second Level Scorecards

The PN is composed of 21 second-level units: two (2) type

commands, five (5) support commands, eight (8) support units and six (6) operational commands.

Each of these units performs peculiar tasks that are all crucial in

achieving the Navy’s mission. PN units developed and

aligned their respective strategic initiatives with each other to ensure

that there are no gaps or duplication of tasks in the second level of the PN organization. Timelines have also been aligned to ensure synchronization and smooth implementation of the initiatives.

All 2nd Level PN Units, except for its Naval Operating Forces (NOFs),

derive their strategies and respective scorecards solely from the enterprise level. For the case of the NOFs, the input perspectives of Personnel, Organization, Resources, and Capability are derived from the Enterprise

Strategy of the Navy while the Accomplishment perspective is derived from the Unified Commands of the AFP.

Lower Level Scorecards

Commitment of lower unit levels to accomplish the objectives of the PN Sail Plan is best exemplified by their dedication to effectively and efficiently

execute the strategy through the use of the BSC. Sub-units have their own scorecards that are aligned with higher level scorecards through the cascading process of directly deriving their contributions from the unit BSC. Through this,

tasks are assured to be distributed productively and effectively.

Staff within headquarters also crafted their own office scorecard. Their scorecards serve as the extension of unit and sub-unit scorecards as they are the owners and managers of the objectives, measures and initiatives contained

in their respective unit and sub-unit scorecards.

Functional Individual Scorecards

As of October 2015, the PN has a total of 20,054 functional individual

scorecards of its personnel. This figure comprises 91% of the PN’s current strength, excluding those personnel assigned at AFP and other units outside

the PN.

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At the end of the day, it is the individual PN personnel who will determine the success and sustainability of the Sail Plan. It is the individual who will carry

out the implementation of the initiatives provided in the FOIC,PN BSC. As such, every PN personnel—officer, enlisted personnel, and civilian employee—have the proper knowledge and right commitment to give their contributions for the

attainment of the vision of the Navy as reflected through the Individual Scorecards. The Individual Scorecard contains two perspectives: professional

and personal. The professional perspective reflects the direct contribution of the personnel to the Sail Plan based on his or her core function and job description. On the other hand, the personal perspective comprises the

personal development of the individual personnel – his/her well-being in terms of the physical, social, emotional, mental and spiritual dimensions, among

others.

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2. Embedding the PN Sail Plan into the Organization

The PN has continuously endeavored to ensure that the thrusts of the Sail Plan are aligned to and supportive of the policies, guidance and thrusts of

the Higher Headquarters and pertinent national government agencies. In the same way, the Navy aligns internal support systems and processes to the Sail Plan and ensure that this will facilitate effective implementation and

improvement of systems and processes. .

Aligning to the DND, DBM, AND GHQ AFP

The Defense System of Management (DSOM) is the overarching system

of the Department of National Defense (DND) that links capability development

to planning, programming, budgeting, execution, and performance review. It provides the mechanism for the DND to ensure the effective and transparent

implementation of the AFP Modernization Program. DSOM has four (4) component systems namely: the Defense Strategic Planning System (DSPS); the Defense Capability Assessment and Planning System (DCAPS); the

Defense Acquisition System (DAS); and the Defense Resource Management System (DRMS).

The Sail Plan, as the Navy’s organizational development strategy, aligns

with the Active Archipelagic Defense Strategy (AADS), the Navy’s operational

strategy. Using the DCAPS as its framework, the Sail Plan provides the AADS’ required development of doctrines, organization, training, leadership, people,

materiel and facilities (DOTLPMF).

31

The Sail Plan also enables the PN to adhere to the Organizational Performance Indicator Framework (OPIF) of the Department of Budget and

Management (DBM) as it embodies the specific objectives and initiatives that will directly accomplish the Navy’s Major Final Output based on its

mandate.The Navy is able to facilitate the identification, planning, and programming of activities and projects that directly contribute to MFOs through the Unit, Office and Individual Scorecards aligned to the FOIC,PN BSC.

Because of the said link, priority in terms of budget is given to the Plans, Action Plans and Programs (PAPs) which are defined in the PN Sail Plan for the given

fiscal year according to a unit or office’s mission and/or core function.

Linking the Budget to the Strategy

The PN Annual Plan and Budget Development Guidance (PN APBDG)

provides the general direction in conducting the Annual Plan and Budget (APB) development process of PN, incorporating therein the results of the major processes of the DSOM. Good governance practice is emulated in the budget

formulation cycle, since the budget development process being implemented in the PN is guided by the concepts of Public Expenditure Management (PEM)

and the Organizational Performance Indicator Framework (OPIF) of the Department of Budget and Management, among others.

This results in the higher percentage allocation of the overall PN Budget to Major Final Outputs (MFOs) and Unit Final Outputs (UFOs). In the PN APB

for CY 2015, around 90% of the total PN Budget is allocated for strategic initiatives (MFOs and UFOs), and 10% for support to these initiatives and for management and administration expenses.

32

The Resource Development Guidance issued by the Naval Resource Management Office (NRMO) every year is largely based on the priority

initiatives under each objective of the Sail Plan. Through this mechanism, the Navy is able to achieve a balanced financial program because it provides the

sustainment of operations and development of capabilities despite the limited resources given by the national government.

Aligning the FOIC, PN Command Guidance

The Command Guidance is the

document issued by the Flag Officer in

Command of the PN (FOIC,PN) that outlines the strategic

thrusts of his leadership and the

specific tasks under these thrusts. It translates the

guidance and policies from the Higher

Headquarters to tasks specific for the Navy as one of the AFP’s major services. As it contains the general policy direction by the head of the Navy, the Command Guidance serves as one of the main reference for annual planning

and execution of the entire organization.

Since 2006, every Command Guidance of the incumbent FOIC,PN has echoed the strategic direction and specific thrusts of the Sail Plan. The Command Guidance has since been structured according to the five

perspectives of the Sail Plan: Personnel, Organization, Resources, Capability, and Accomplishment. By so doing, the Sail Plan is institutionalized as a

reference for policy and decision making of the FOIC,PN and his Command Team.

In using the Sail Plan as a reference for his Command Guidance, the incumbent FOIC,PN signifies his commitment to the Sail Plan and signals all

Navy personnel, particularly the members of the Command Team, to follow suit. The Command Guidance then becomes an effective mechanism to ensure alignment within the organization. In addition, as the policy directions provided

in the Command Guidance are given priority in budget allocation, it also becomes an effective tool to ensure that initiatives of the Sail Plan are provided

with resources.

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3. Champions of Good Governance

The Center for Naval Leadership and Excellence

The Center for Naval Leadership and Excellence (CNLE) is the PN’s fully-functional Office of Strategy Management, serving as an independent office directly reporting to the Flag Officer in Command, PN. It is primarily

tasked to oversee the implementation of the PN’s developmental strategy, the PN Strategic Sail Plan 2020.

The Center has been actively monitoring the execution of the PN’s

developmental roadmap and the changes encountered along the way, since its inception in 2008. For seven years and counting, CNLE has initiated and

conducted various initiatives, which led to the successful and sustained implementation of the PGS in the Navy. These initiatives include the alignment of the PN strategy across all levels; review and validation of the

PN strategy; regular conduct of cascading and alignment to second level units and to individuals; and strengthened and more rigorous execution of

the PN Sail Plan communication plan.

PN Sail Plan Officers

The cascading and alignment across all HPN staff and PN units served

as one of the major challenges for CNLE as an OSM, primarily because of its limited manpower. To address this, CNLE partners with a group of dynamic and dedicated Sail Plan champions called Sail Plan Officers. Well-equipped with

the knowledge on strategy formulation and execution, every member is capable of assisting CNLE in monitoring and overseeing the implementation of the Sail

Plan.

34

Currently, each HPN staff offices and every PN unit has a designated Sail Plan Officer. For the HPN staff, Sail Plan Officers are the Executive Officers

and Deputies while for PN units, they are the Chiefs of Staff. Through this set-up, the PN assures that the strategy is effectively executed through proper management and implementation. Sail Plan Officers function as the primary

personnel accountable for the implementation and update of their office/unit Governance Scorecards. Not only do they help in the management of the

strategy but also they efficiently assure that cascading is done down to the individual level through supervising cascading and alignment sessions.

The PN Board of Advisers

The PN Board of Advisers (BoA) serves as the Navy’s Multi-sectoral

Governance Coalition. It was first convened in 2009 as the PN’s advisory board which provides the needed external perspectives and appropriate guidance on

the key issues and concerns of the PN, and also acts as a channel for networks that can help the PN find solutions to pressing issues. The PN BoA meets bi-monthly.

35

The PN BoA primarily exists to advise and assist the PN in identifying

key priorities and strategic issues in accordance with the PN Sail Plan 2020; and provide insights in aligning the PN’s policies, plans and programs with the

political, socio-economic, cultural and moral development needs of the organization.

As representatives of PN external stakeholders, the PN BoA also assists the PN on possible ways to generate resources in order to sustain the Navy’s

present and future plans and programs. This was realized through the creation of the Support Your Navy Foundation (SYNF), an independent body that seeks to raise greater financial support to the PN from external stakeholders.

The current PN BoA CY 2015-2016 is composed of the following:

36

Aileen San Pablo Baviera, PhD.

Professor, Asian Center University of the Philippines Diliman, Quezon City

Mr. Jarius Bondoc

Columnist, Philippine Star

Atty. Jay Batongbacal

Director, Institute for Maritime Affairs and Law of the Sea

Hon. Margarita R. Songco

Deputy Director General National Economic and Development Authority

VADM Eduardo Ma R Santos AFP (RET)

President, Maritime Academy of Asia and the

Pacific

Architect Miguel C. Guerrero III

Co-Managing Partner

Asian Architects

Ms. Doris Magsaysay Ho

President and CEO

Magsaysay Group of Companies

Atty. Antonio A. Oposa Jr.

Founder, Batas ng Kalikasan

Foundation

Ms. Maria Ressa

CEO and Chief Editor Rappler Inc.

Atty. Gilberto Teodoro Jr

Former Secretary, Department of National Defense

Hon. Leticia Ramos-

Shahani

Former Senator

Dr. Corazon DB Claudio

Environmental Change and Climate Change Expert

Hon. Joseph Emilio Abaya

Secretary, Department of Transportation and

Communication

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C. REPORTING AND MONITORING MECHANISM

Another important mechanism to ensure the effective and timely

implementation of the Sail Plan is an effective reporting and monitoring system which enables the Navy monitor the execution of specific strategic initiatives, identify best practices that can be duplicated as well as difficulties and

challenges to execution that should be addressed, and assess the over-all responsiveness of the strategy.

1. Strategy Review Meetings

Strategy review meetings

serve the following purpose:

a. Update on the strategy

execution providing the

top leadership a

chance to reflect on

progress and proposed

areas of strategic

adjustment;

b. Evaluate the strategy

based on the following:

Actual vs Target

Progress of

initiatives

Responsiveness of

the strategy

Impact of the strategy to the organization’s development; and

c. Identify actions that can be done to address issues on the strategy

The PN has three types of strategy review meetings at organizational

level while at unit level, there are two types, based on frequency and who are required to attend.

38

Strategy

Review Meeting

Frequency Scope Attendees

Enterprise Level

Sail Plan

Meeting

Every first and

third Thursday of the month

Quick Overview of

Strategic Initiatives and updates on the Strategic

Initiatives

Presiding Officer: Director,

CNLE

Attendees: Headquarters Philippine Navy (HPN) Staff

Sail Plan Officers

Sail Plan Staff Conference

Monthly (first Monday after the Sail Plan

Meeting)

Issues discussed and action plans formulated during the Sail Plan

Meeting

Presiding Officer: Chief of Naval Staff (CNS)

Attendees: HPN Staff

Command Conference

Quarterly -Status of the enterprise strategy.

-Responsiveness of objectives to the strategy

Presiding Officer: FOIC,PN

Attendees: Unit Commanders and HPN

Staff

Second Level Units

Unit Sail Plan Meeting

Monthly

Quick Overview of Strategic Initiatives

Presiding Officer: Unit Chief of Staff

Attendees:

1.Objective owners 2.Measure Owner 3.Initiative Owner

Unit

Command Conference

Quarterly Status of the Unit BSC:

-Targets -Accomplishments of

initiatives

Presiding Officer:

Unit Commander

Attendees: Sub-unit commanders and

Unit Staff

The PN employs a bottom-up approach on reporting mechanism

wherein submission of reports follow the accountability on the Balanced

Scorecard owners at the same time allows immediate actions for some issues. The initiative manager and measure owner submits a report to the objective

owner regarding the status of action plans. Consequently, for the HPN staff, the objective owner submits a comprehensive report to CNLE. In the case of units, objective owners submit the report to the Chief of Staff whom in turn

consolidates all the reports and submit to CNLE. The Center in turn, collates all the reports and renders a presentation to the PN top leadership on the quarterly

Command Conference.

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2. PN Electronic Performance Governance Reporting System

Launched in September 2014, PN Electronic Performance Governance Reporting System (e-

PGRS) is a web-based software that facilitates effective and

efficient reporting and monitoring of the Sail Plan. The first phase (2014) features the automation of

the first level scorecards (FOIC, PN BSC and HPN Staff

Scorecards). Last June 2015, the second phase was completed with the automation of second level

scorecards—all of the 21 Unit Scorecards can now be viewed

online. Through the e-PGRS, Sail Plan Officers can update their respective office and unit

scorecards anywhere and anytime. Further, members of the PN Command Team can easily know the status on the achievement of targets and

accomplishment of initiatives 24/7. The PN e-PGRS also serves platform for any member of the Navy and

external stakeholders to learn and appreciate the basic components, details and updates on the Sail Plan as Sail Plan books, brochures and other

publications can be accessed by anyone.

The e-PGRS can be accessed at http:// cnle.navy.mil.ph/pn_epgrs.

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D. SUSTAINING THE STRATEGY

1. Link to Rewards, Recognitions and Incentives

Best Sail Plan Implementing Unit Award

In 2013, the PN began incentivizing exemplary contribution to the Sail

Plan execution through the Best Sail Plan Implementing Unit Award. The award aims to honor the invaluable commitment and contribution of PN units to genuine and sustained organizational transformation, and to provide motivation

to those that excelled in effectively implementing their respective initiatives under the Sail Plan.

Link to Performance-based Bonus

The PN uses the Annual General Inspection (AGI) Rating as one of the

basis for the awarding of the Performance-based Bonus (PBB), which the

government started implementing in 2012. With the integration of the Sail Plan to the AGI, effectiveness in implementing Sail Plan initiatives have also become

a basis for the ranking of each PN unit for the PBB.

41

With the AFP’s implementation of

the Performance Evaluation Rating

(PER) for uniformed

personnel and the

Civil Service Commission’s

Individual Performance

Commitment and

Review (IPCR) for civilian personnel,

individual scorecards has

been officially adopted by the entire AFP as one of the bases for performance

evaluation and the PBB. For the PN, the framework of the individual scorecard is almost similar to the the PER and IPCR, making it effective and efficient for

the PN personnel to accomplish their expected contributions to their units and offices.

2. Governance Program

In order to ensure that the Sail Plan is integrated to the organization, the

PN has aligned its internal systems and processes with the roadmap’s thrusts.

As discussed in the previous sections, the budget system has been designed in a way that utilizes the Sail Plan, among other guidance, as the bases for

prioritizing projects and programs. Likewise, the Sail Plan has also been utilized to link the different systems and program required by the national government and the higher headquarters, namely the AFP Modernization Program, the

DND’s DSOM, and the DBM’s OPIF.

To reinforce this seamless integration, the Sail Plan has also been effectively aligned with the PN’s operational strategy, the Active Archipelagic Defense Strategy (AADS). Doing so has allowed the PN to manage its

operations and organizational development in a more strategic manner.

But governance is more than just systems and processes. For a public organization like the PN, governance entails the exercise of transparency and accountability. It requires the strengthening of integrity among its personnel and

in the processes involved in its operations. The PN’s integrity development and the Sail Plan are two mutually reinforcing initiatives. On one hand, building

integrity in the PN increases the sense of responsibility and level of performance among the individual personnel and units in implementing the Sail Plan as it makes them more aware of their accountability and it provides them

with a deeper appreciation of the meaning of public service. In the same way, the Sail Plan as a transformation program innately reinforces the values and

professionalism in the PN.

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With this imperative, the PN has subscribed to the Integrity Development Review project of the Office of the Ombudsman from 2010-

2015. With this integrity development program in place, the PN aims to further institutionalize transparency and accountability through the Integrity

Management Program launched by the Office of the President and the

Ombudsman in 2015.

This is further complemented by the adoption of various values -enhancement program, specially the 7 Habits of Highly Effective People

Signature Program.

Further, the PN sustains and continues to strengthen its collaborative

and synergistic partnership with the PN Board of Advisers, evidenced by the continuing initiatives that are borne out of the open discussion on strategic

issues the PN is facing. Same could be said about the core team - composed of the Center for Naval Leadership and Excellence and the Sail Plan Officers of individual units and staff offices of the Headquarters Philippine Navy – and

the Command Team, with the former providing sound inputs to decision-making, and the latter listening and acting accordingly.

3. The Sail Plan Caravan

“Napakahalaga ng ginagampanan nating indibidwal na tungkulin upang

makamit natin ang ating vision. Kaya sa mga kapwa ko Enlisted Personnel, at maging sa iba pang mga personnel, napaka-importante na ibigay natin ang buong dedikasyon sa pagtatrabaho. Sabi nga nila, ‘we need the hearts and

minds of our people.’ Kaya’t magtulung-tulong tayo upang makamit natin ang ating vision.”

This was the reflection that Master Sergeant RAMON B CABEGUIN

PN(M) shared during the closing of the first leg of the 2015 PN Sail Plan

Caravan – an initiative that provides the avenue to strengthen commitment of PN personnel to the Sail Plan by enhancing their knowledge and skill in

implementing initiatives under the transformation roadmap. The first Leg of the 2015 Sail Plan Caravan was held last 25-27 August 2015 at Headquarters Naval Forces Southern Luzon (NFSL), Rawis, Legazpi City.

43

The Caravan aims to motivate each sailor, marine, reservist, and civilian personnel of the Navy to Think Good Governance, Think Transformation, and

Think Sail Plan by integrating three main activities: Governance Coaching for the senior leaders; Sail Plan Alignment with the Sail Plan officers and key

managers and implementers of Sail Plan initiatives; and Sail Plan Info Drive for all members of the PN units.

To date, the PN has conducted a total of three (3) legs, to include the

NFSL, the Headquarters Philippine Navy and Headquarters Support Group (HPN & HSG), and the Naval Reserve Command (NRC).

4. PN Governance Forum Series

Complementing the abovementioned governance programs, the PN took the initiative to open the minds of its men and women to the best practices

in leadership and governance from the different sectors of our society. This effort was realized through the PN Governance Forum (PNGF) Series.

44

The PN Governance Forum Series has the overarching theme of Best

Practices in Leadership that Lead to Good Governance. Now on its seventh year and is set under the theme “Pursuing Transformation, Innovation, and

Excellence.” It showcases topics that range from pertinent issues on security

and globalization to basics of naval leadership and values – all to keep the men and women of the Navy abreast to the evolving security landscape and firmly

anchored to their sworn duty to defend and protect our seas and people.

5. Sail Plan Boot Camp

The Sail Plan Officers play a crucial role in the implementation of the Sail Plan. Therefore, it is an imperative that they have the competence as well as

the motivation in performing their role as managers of the Sail Plan initiatives of their respective unit. To address this, the PN has launched its first ever Sail Plan Boot Camp last April 2015. Set under the theme “Unleashing the Hero in

You,” the Boot Camp provided the Sail Plan Officers of the Navy with the right mindset, knowledge, and tools to effectively manage the Navy’s developmental

strategy, the PN Strategic Sail Plan 2020. They strengthened not only their capacities but also, and more importantly, their heart and commitment to transformation and good governance.

45

6. Strategy Communication

As part of managing the change and in order to get everyone onboard

the Sail Plan, the importance of effective communication of the Sail Plan within and even outside the Navy cannot be overemphasized. Gains must be regularly communicated in order to sustain the momentum of implementation and boost

the commitment of Navy personnel to the Sail Plan. Likewise, it is important to keep everybody updated regarding changes and updates on the components

of the Sail Plan. To address these, the Navy employs various media and avenues.

Sail Plan Books

The publication of two volumes of the Sail Plan has also helped the PN in communicating its strategy to its personnel. The first volume, published in 2006, outlines the general aspirations of the sail plan while the second,

published last 2014, serves as a technical guide on the Sail Plan Management Process.

46

Sail Plan as part of PME and TI&Es

Professional Military Education (PME)

courses provide a fast, effective and cost-efficient way to

communicate and cascade the Sail Plan to

every Navy personnel. In 2009, the Navy, through its Naval

Education and Training Command and the

Philippine Fleet, made the Sail Plan and the

Balanced Scorecard

System a part of the Management Module of two very important Commissioned Officer Career Courses of the Navy: the Naval Command and Staff Course, and

the Command-at-Sea Fleet-up Course respectively. Currently, steps have been taken to formally include the Sail Plan in the curriculum of all PME Courses not only for commissioned officers, but also for non-commissioned officers who

form the majority of the personnel in the Navy. At the end of each course, every Navy personnel undergoing training or schooling has to submit his/her

Individual Balanced Scorecard (BSC) in order for him/her to graduate. The Sail Plan is also included in the Troop Information and Education

(TI&E) of offices and units of the Navy to ensure that all personnel are updated on the development under the Sail Plan. The TI&E is a weekly two- to three-

hour session among the personnel of an office where they can discuss various subjects in order to enrich their knowledge.

Publications and Other Media

The Navy regularly publishes updates and information about the Sail Plan through its official publication, the monthly Rough Deck Log. Videos on

the Navy and the Sail Plan have also been released, as well as brochures and other collaterals. Coffee Table Books and customized calendars of the Navy also feature the Sail Plan. And with the growing power of social media, the

Navy has put up the official Facebook Fan Page of the Sail Plan in order to reach a wider audience among the Navy’s internal and external stakeholders.

47

Picture of the Future Art Competition

This 2015, the PN conducted its first ever Picture of the Future Art Competition. The Picture of the Future is a nationwide competition that

highlighted the different facets of the Navy by 2020 in relation to its role as the guardian of the Philippine archipelagic waters. Composed of two categories namely: painting (external stakeholders) and digital art (PN personnel), it aims

to increase the awareness and, subsequently, appreciation of each PN personnel to the significant achievements and milestones of the PN Sail Plan.

At the same time, it intends to increase our stakeholders’ awareness to the Navy’s role for lasting peace, progress and national development. Through this contest, the Navy uncovered talents and creativity while stimulating critical

thinking. Overall, the Navy received 30 entries coming from as far as Davao, Cebu and La Union.

48

E. ACCOMPLISHMENTS: VALIDATION FROM EXTERNAL STAKEHOLDERS

The transformation and performance excellence exhibited by the PN have gained for the organization the admiration of its stakeholders, as well as

the trust to the PN’s integrity in fulfilling its commitments.

In 2011, then Flag Officer in Command, Vice Admiral Alexander P Pama

AFP(Ret), received the Bulung Pulungan Manila Forum Exemplar Award for “setting a clear direction where the PN is headed as set forth in the PN Strategic

Sail Plan with a vision of having a strong and credible Navy...” In 2014, the PN became the first in the entire defense sector to receive

the PGS Institutionalized Status and the Gold Trailblazer Award for Good Governance. This accomplishment is a solid affirmation that the PN has

successfully institutionalized the strong foundation of good governance in its organization.

49

In 2015, the Church of Jesus Christ of Latter-Day Saints awarded the PN with Family Values Award in recognition of the many programs [it] instituted that

promotes the importance of marriage and family values.”

50

51

BREAKTHROUGH COMMITMENT # 1: SENTINEL OF THE SEA

“Increase the number of linked and functional Maritime Situational Awareness Platforms (MSAP) from 21 in 2013 to 31 by 2015.”

To be a Strong Sentinel of the Sea, the PN made the commitment to increase

its Maritime Situational Awareness (MSA) capability. Doing so will support more informed, effective, and dynamic conduct of territorial defense and security operations,

allowing the Navy to be a stronger pillar of national development by performing its role and encouraging convergence in promoting a secured maritime environment.

When the IGG initiative was first launched in March 2013, the PN committed to increase the number of Maritime Situational Awareness Platforms (MSAPs) from 21

to 31. Since then, the PN expedited its efforts to ensure that the commitment is achieved. To date, the PN has a total of 36 MSAPs, which is composed of different

categories such as Littoral Observatory Stations (LOS), Littoral Monitoring

Detachments (LMDs), Mobile Observatory Vessel (MOV), and Mobile Observatory Aircrafts (MOAs), exceeding its initial target of 31.

BENCHMARK 2013

TARGET 2015

ACTUAL 2015

21 31 36

MSAPs Number

Littoral Observatory Stations (LOS) 20

Littoral Monitoring Detachments (LMDs) 9

Mobile Observatory Vessel (MOV) 1

Mobile Observatory Aircrafts (MOAs) 6

Total 36

Believing that one cannot combat what one cannot see, maritime situational

awareness becomes a crucial component in protecting the maritime interests of our

country. The effective integration of the PN’s constabulary and military roles, which

relies on the ability to know and assess the activities occurring in the five (5) domains

(sea, undersea, air, land and cyberspace) is at the heart of MSA. It builds a strong

foundation for Maritime Operations as it provides the critical information when needed

before appropriate and timely response can be deployed.

52

As MSA is a prerequisite for

Maritime Operations, the potency of

the latter is dependent on the

effectiveness of the former. It facilitates

the correct discernment of the tangible

and intangible security challenges

affecting the archipelago, thus allowing

once to craft the appropriate strategy

and capability to address an

adversary’s “center of gravity” and

protect one’s own at all levels of

conflict.

The strategic objective of MSA

is to ensure effective maritime

information support in order to facilitate

effective division making for maritime

operations and support to national and

regional cooperation for maritime

security, development and

governance.

In order to accomplish this

objective, the PN strengthens its initiative on building and sustaining the capabilities

of MSAPs, which are the main sources of MSA.

DEFINITION OF TERMS

A. PN Maritime Situational Awareness System (PN MSAS)

- is the organized and established procedure of collecting all-source

information through sensors and intelligence operations to establish and maintain a Common Operating Picture in the maritime environment.

B. Maritime Research Information Center (MRIC)

- unit primarily responsible for the collection, processing, analysis and

dissemination of maritime strategic intelligence to the Naval Operation Center (NOC). Serves as the national grid for managing information from regional, interagency, inter-service, and private sector partners.

53

C. Maritime Situational Awareness Center (MSAC)

- serves as the hub for all the information gathered through sensors and

intelligence operations; other PN units, and other maritime agencies in its AOR.

D. Maritime Situational Awareness Platform (MSAP)

- is a field station, facility or mobile asset that is fitted with sensors and

communications equipment for the purpose of gathering information within the maritime environment in order to achieve situational

awareness E. Linked

- ability to communicate information through secured means from one platform to the other.

F. Functional

- ability to detect and monitor targets (visual and/or electronic) and report

pertinent information to MSAC through any available means (HF Radio and/or VSAT)

FUNCTION OF MSAS

• Collect data through all-source information systems such as sensors

and intelligence operations • Establish and maintain common maritime operating picture through

MSAC and MRIC • Provide secured network support to operating units through appropriate

technology to assure computer network defense.

• Engage other services and partners for collaborative assessment through interagency approach with the maritime interagency partners,

the academe, and the private sectors.

TYPES OF MSAPs

A. Littoral Observatory Station (LOS)

A platform equipped with all the essential CEIS equipment such as

RADAR (with or without EO-IR camera), Automatic Identification System (AIS) receiver, Radio Direction Finder (RDF), binocular, communications equipment

(i.e., HF radio–military spec/COTS), VHF marine band, and VSAT connectivi ty.

54

B. Littoral Monitoring Detachment (LMD)

A platform equipped with AIS receiver and/or RDF, binocular,

communications equipment (i.e., HF radio, VHF marine band). An LMD has a 40–80NM detection range.

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C. Mobile Observatory Vessel (MOV)

A mobile platform equipped with radar (with or without EO-IR camera), AIS receiver, RDF, binocular, communications equipment (i.e., HF radio, VHF marine

band), and VSAT connectivity.

D. Mobile Observatory Aircraft (MOA)

MOA enables better maximization of resources since it can be deployed and

can operate anywhere within the territorial waters of the Philippines. Moreover, it enables the naval forces to respond quickly to any immediate maritime threat within

its mandatory reporting area.

KU-Band VSAT Ground Station

AgustaWestland Helicopter (AW- 109E)

BRP GREGORIO DEL PILAR (PF 15)

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ACCOMPLISHMENTS

Through its enhanced MSAS capability, the PN is able to conduct informed naval and maritime operations. These contributes to a stronger defense of our

territory and a more secured maritime environment that is conducive to local and international trade. It likewise promotes a secured environment where our local fisherfolk and other maritime stakeholders can pursue livelihood and activities at

sea.

At the same time, the MSAS allow the PN to strengthen maritime cooperation among agencies in the country as well as those of our regional partners. Such synergy harnesses the strengths of these agencies, providing for an avenue to

collaborate and sustain the protection of our maritime interests.

Below are the specific accomplishments of the PN MSAS.

A. Support to Territorial Defense Operations

Since its inception in 2011, different LOS have reported a total of 324 instances of foreign vessel sightings in Bajo de Masinloc and Kalayaan Island Group (KIG). Up until now, the LOS have continuously been monitoring foreign vessel

movements in key areas in the West Philippine Sea.

These WPS reports by PN MSAS helped when the Philippines submitted its memorial to the Arbitral Tribunal that is hearing the case it brought against the People’s Republic of China under the United Nations Convention on the Law of the

Sea in January 2013.

Britten Norman Islander

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B. Support to Secured Maritime Environment

Maritime situational awareness was enhanced as result of the PN MSAS. From

01 January 2010 to June 2015, the PN through the MRIC monitored and ensured the security and safe voyage of 314, 856 vessels that have transitted in the country’s critical Sea Lines of Communication (SLOCS). This basically composed the

baseline data of vessels monitored passing in our archipelago.

29429

5017754338

7384177513

29558

2010 2011 2012 2013 2014 2015

Foreign and Domestic Vessels Monitored by the Different LOS

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C. Saving Lives and Properties at Sea

From 2010 up to present, the PN MSAS have been instrumental in approximately 50 search and rescue operations which resulted to roughly 1,500

persons and 50 watercrafts successfully rescued. It can be noted that the main effort of the MSACs and LOS was timely monitoring of these incidents and coordinating

with the Naval Forces or the nearest station of the Philippine Coast Guard.

2

86

11

22

9

2010 2011 2012 2013 2014 2015

SEARCH AND RESCUE OPERATIONS

SEA LINES OF COMMUNICATION (SLOCs)

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Nr of lives saved: Approximately 1,525 lives

September 2009 - Super Ferry 9 disaster at the High seas of

Baturampon Point in the coast off Zamboanga

May 2010 - 2 missing pumpboat at Pangutaran, Sulu

October 2010 – ML Asma aground at Bongao, Tawi Tawi due to bad

weather

November 2010 – MB Abduhalim capsized at Baluk Baluk, Basilan

January 2011 – ML Rapida capsized at Baluk Baluk, Basilan

January 2011 – ML Farhara2 with engine trouble at Sulu Sea

August 2011 – MV Hai Cheng w/ engine trouble at Balabac, Palawan

05 February 2013 – LOS PILAS reported the grounding MV LADY LYN

and fourteen (14) crew members were successfully rescued

19 February 2013 – MSAC-WM reported the grounding of a passenger

boat in Basilan that led to the rescue of its sixty (60) passengers

02 and 06 April 2013 – LOS MANGSEE and MSAC-West monitored the

arrival of undocumented Filipino from Sibugo and Banguey Island,

Malaysia to Mangsee Island and assisted in the distribution of relief

goods.

23 June 2014 – MSAC-W reported the recovered HUB 18 at vicinity off

West Philippine Sea

14 August 2014 – LOS TINACA, LOS MAASIM and MSAC-EM for their

close monitoring for the successful rescue of MV CHELSEA DONATELA

04 January 2015 – LOS TAGANAK was instrumental to the rescue of

eleven (11) persons onboard ML PRINCESS JOA

One of the major search and rescue operations involving the MSAC and LOS was the search and rescue of the Malaysian flagged Barge “Hub 18” in the West Philippine Sea. The inter-agency collaboration among RECAAP, PN ILO to RSN-

IFC, the PN and other local maritime agencies led to the successful rescue of the ill-fated barge. Intelligence fusion in the regional level and the vital role played by

the PNMSAS has proven effective in maritime search and rescue operations. It has been proven that immediate response from any individual or agency decreases the loss of lives and damage to property. This is manifested in the successful search

and rescue operations conducted by the different MSACs and LOS.

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D. Enforcing Maritime Laws: Successful Joint Maritime Interdiction

Operations

January 2011 - February 2013

• Vessel loaded with illegal forest product apprehended in Sulu

• Vessel loaded with smuggled cigarettes apprehended in Tawi-Tawi • Vessels transporting smuggled petroleum

products from Malaysia intercepted in Tawi-Tawi

•Hong Kong-registered vessel caught poaching intercepted in Tawi-Tawi •Vietnamese fishing boat with Vietnamese

crew apprehended in Tawi-Tawi •Vessels loaded with smuggled goods

apprehended by authorities in Tawi-Tawi •Apprehended vessel loaded with sacks of imported rice and other taxable items in Sulu

•Container van loaded with used clothing apprehended in Ozamis City

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• ML LADY JJ loaded with imported rice from Sabah apprehended in Tawi-Tawi

• MSAC-WM reported the apprehension of one hundred twenty-two (122) undocumented passengers possible victims of human trafficking aboard

ML ALONA in Taganak • MSAC-WM reported the apprehension and rescue of a vessel loaded

with human trafficking victims in Taganak

•

E. Linkage with Maritime Stakeholders

MRIC has been instrumental in establishing a robust linkage with the following maritime stakeholders:

Philippine Coast Guard, and Philippine National Police-Maritime Group;

Fishing Companies;

PLO / BCOs: Manado, Marore, Miangas & Tarakan, NGOs/ISAC;

Regional: Singapore, Bahrain

LGUs

F. Info-sharing with other Agencies

One of the MRIC’s way of enhancing inter-agency cooperation and

collaboration is through the conduct of an inter-agency information sharing seminar.

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As a result, an inter-agency website was conceptualized and crafted last December 2010. The website, which is designed to facilitate paperless and

seamless exchange of maritime information, was launched last 28 Jan 2011 with the Secretary of National Defense, Hon. Voltaire T. Gazmin, then Flag Officer in

Command,PN, Alexander P Pama, and other maritime partners gracing the event. In September 2015, the PN with the National Coastwatch Center held the

National Coast Watch System Inter-Agency Information Sharing Seminar participated by the different agencies and office/department of the municipality of

Surigao including representatives from the Philippine Ports Authority (PPA), Philippine Coast Guard (PCG), PNP Maritime Group, Local Disaster Risk Reduction and Management Office (LDRRMO), and Bureau of Fisheries and Aquatic

Resources (BFAR).

G. Info-sharing through Regional Partnership

The MRIC has also established connectivity with International Fusion Center

(IFC) in Singapore through ASEAN Information Sharing Portal (AIP), and United States Pacific Command through CENTRIX and APIIN thus enhancing information sharing through regional partnership.

63

BREAKTHROUGH COMMITMENT # 2: STANDARD OF EXCELLENCE

“Increase the number of ISO-certified PN units and offices from four (4) in

2013 to ten (10) by 2015.”

In the Organization Perspective of the Sail Plan, the PN

highlighted the need to have a strong organizational structure and synchronized systems and processes in order to effectively execute its mission and

proficiently respond to the changing needs of its stakeholders. One of the primary initiatives of the PN under this perspective is

for its units’ processes to be accredited with ISO 9001:2008 Quali ty Management System (QMS) Certification given by the International

Organization for Standardization. This directly acts upon PN’s objective to have a Dynamic and Responsive Naval Organization.

BENCHMARK

2013

TARGET

2015

ACTUAL

2015

4 10 14

To date, the Navy has 14 units and offices that have ISO-certified processes – a strong testament of its continued commitment to deliver excellent service to support its naval and maritime operations that will ultimately

strengthen the defense and protection of our territory and sovereignty.

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It was in January 2012 when the PN Finance Center (PNFC) was awarded with the said certification, making it the first unit in the Armed Forces of the Philippines and

the Defense Department to obtain ISO Certification. Three (3) more PN units – the Naval Education & Training Command (NETC), the Office of the Naval Adjutant

(OTNA), and the Navy Personnel Management Center (NPMC) – simultaneously underwent the same certification process after PNFC.

Six (6) more units followed suit in 2013, increasing the adherence of the PN to Quality Management principles set forth in the ISO 9001:2008 Certification.

While the PN has essentially reached its target of 10 units with ISO-certified processes in 2013, it pursued its objective of sustaining a dynamic and responsive

naval organization by identifying other processes that should adopt Quali ty Management principles. Thus, in 2014, four (4) additional units underwent the

certification.

The PN is now on the phase of sustaining these certifications. In order to maximize the benefits of this initiative, the units are now on the process of cascading

their Quality Management Systems to other units and offices which use the same process. This ensures that quality is maintained in the entire PN organization, regardless of the location.

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Impact on PN Organization and Stakeholders

To be a “Standard of Excellence” means that the PN’s support systems and processes are at par with global standards and responsive to the needs of its

stakeholders. This entails adherence to quality management principles, validated by the ISO 9001:2008 Certification. This is also in compliance to Executive Order No. 605, Institutionalizing the Structure, Mechanisms and Standards to Implement the

Government Quality Management Program, Amending for the Purpose Administrative Order No. 161, S. 2006. By having its processes ISO 9001:2008-certified, the PN is

able to identify gaps and redundancy as well as areas for improvement of its support services that are crucial to sustaining its naval and maritime operations, namely: human resource management, training, logistics, finance, hospital administration, and

maintenance and repair. Likewise, by institutionalizing the quality management system, the PN is able to synchronize these individual processes to deliver maximum

and excellent results for its internal stakeholders, and consequently, its external stakeholders, primarily the Armed Forces of the Philippines (AFP) Unified Commands.

Since the PN started enhancing its processes using the ISO 9001:2008 model in 2011, it has enhanced the efficiency of these processes that resulted to savings in

terms of financial resources, time, and man-hours.

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A. Increased Morale through Customer Satisfaction

Morale among the recipients of the services increased because of faster, better quality services provided to them, such as processing of payroll and

clearances, and repair and maintenance of ships and other assets. For instance, patients of Cavite Naval Hospital (CNH) are very satisfied

with the Health Care Services provided to PN personnel, civilian employees and other stakeholders. Out of 829 respondents, more than 70% rated the CNH

very satisfactory for 1st Semester 2015. Records of complaints on delay of services of the Naval Logistics Center (NLC) have also significantly reduced.

B. Cost-Savings for the PN

Process inefficiencies are a leading cause for losses on resources. Through the ISO certification, the PN was able to address these inefficiencies,

resulting to savings not only on its resources entrusted by the public, but also on man-hours of its personnel.

For instance, in the case of the Office of the Naval Adjutant (OTNA), the

Centralized Clearance System transfers the processing of clearance and

monitoring of cases from 11 clearance-issuing offices to the OTNA. Whereas in the past, PN personnel would need at least five days to process all these

clearances required for promotion, re-enlistment, and other purpose, not to include money for transportation. T oday, they only need a minimum of one (1) day to acquire all the clearances required.

34%

1.47

1.080.97

2012 2013 2014

Reduction in Cost of Check Issuances

Cost in Million Pesos

1.47

1.08

0.97

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The PNFC marked a total of 34% reduction in the cost of check issuance by requiring PN personnel, including their allottees, to shift to ATM mode of

payment of pay and allowances.

Year 2014 2015 (1st Sem only) Total

Amount (PhP) 10,679,713.98 8,398,055.40 19,077,769.38

Through the conduct of payroll cleansing of PNFC, the PN was also able

to recover overpayment from unauthorized payment to PN personnel amounting to Php 34,178,322.27 from 2014 to 2015. C. Improved Performance of Units with ISO Certification

Conforming to the standards of quality management system, the units of

the PN have also marked a significant increase in their performance. Services are now delivered in a timely manner, and performance targets are also being

accomplished, if not exceeded. For the Philippine Navy Finance Center (PNFC), Finance Service Units

are now strictly observing the prescribed two (2) days validation period of claims. For NLC, the processing of request and issuance of supplies to PN units are now on time.

In addition, the PNFC has also started using the Financial Data Entry

System or FINDES, in partnership with the Land Bank of the Philippines. Findes is an improved version of DOS-based Payroll Crediting System (PACS) to a Windows-based system. The system also provides validation of individual

accounts of personnel from the PN IPMS payroll against the existing data base of LBP, thereby capturing all invalid accounts that requires corrective actions

prior payment/disbursement. The new system has the following advantages:

1. Minimal logistical items (click) such as cd (compact disc) or usb and

print outs. Previously, the PNFC was utilizing two(2) boxes of floppy discs and multi-pages of credit payrolls every month;

2. Support various printer modules; 3. Improved security features; 4. Users administration function (user friendly); and

5. Can be restored to all types of storage media (CD, USB, external drive, etc)

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PNFC also launched the Pay and Allowance Inquiry Kiosk. It is an in-

house project development of the Center that can respond to the overwhelming inquiries of PN personnel regarding their pay and allowances, loan

ammortizations and contributions to government and non-governments agencies. The said inquiry system can be securely accessed by PN personnel and can outrightly answer the inquiries with regards to their earnings and

deductions.

In the case of the Navy Personnel Management Center, performance targets on recruitment, promotion, and retention of personnel are now accomplished 100%.

D. Best Practice Sharing with other Agencies

These benefits of the ISO certification on the PN and its personnel also

triggered the desire for other agencies in the AFP to also adopt the ISO 9001:2008 QMS. Last October 2015, the GHQ AFP through the Office of

Strategic Studies and Strategy Management (OSSSM) held a best practice sharing on ISO certification with the PN through the Naval Safety Office (NSO).

BREAKTHROUGH COMMITMENT # 3: BASTION OF INNOVATION

“Fully operationalize three (3) PN Research and Development units and office by

2015.”

As a modernizing force, research and technology are vital for the PN. Even as

it is only on the phase of catching up to the advances in technology, the PN envisions

to become a Bastion of Innovation and improve its organizational capability to manage, execute and sustain operations through the full-operationalization of its Research and

Development office and units namely the Office of the Naval Strategic Studies (ONSS), the Fleet-Marine Warfare Center (FMWC), and the Naval Research and Technology Development Center (NRTDC).

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These offices and units were newly activated or reactivated in 2012 in order to provide the needed strategic studies and guidance to the PN, given the changing

maritime environment and to fill-in the gap in the PN’s capability needs in terms of technology and doctrines, among others.

The ONSS conducts environmental scans and assessments of the strategic space, identifying current and emerging key security challenges. The NRTDC develops the means, which is the technology needed to address these security

challenges. While the FMWC develops doctrines and concepts as well as scenario-based plans. The synergy among these three units and offices will produce strategy-

driven, doctrines-based capabilities, allowing the PN to attain an optimal level of

operational readiness.

R &D UNIT BENCHMARK

2013 TARGET

2015 ACTUAL

2015

ONSS Not

Operational Fully

Operational Fully

Operational FMWC

NRTDC

To be fully operational, the PN committed that these units and office must at

least be mission-capable by 2015, under the Operational Readiness Evaluation

Rating (OPREVAL). The OPREVAL has three areas: Personnel; Equipment; and Facility.

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Categories

R1 Fully Mission

Capable

R2 Mission

Capable

R3 Partially

Mission Capable

R4 Not Mission

Capable

Personnel 85-100% 75-84% 51-74% 0-50% Equipment 85-100% 75-84% 51-74% 0-50% Facility 85-100% 75-84% 51-74% 0-50%

As of October 2015, all three PN research and development (R&D) office and units are fully operational with an OPREVAL rating of Mission-capable. Accomplishments

To become a fully-established R&D unit or office takes time. Within the short period that these entities were reactivated, they were all able to substantially contribute in the capability development of the Navy through the production of regular strategic

reports, review of relevant doctrines, conduct of multilateral and bilateral exercises, review and validation of various doctrines, and proposals of various technological

innovations for the Navy.

The following summarizes the accomplishments of these three entities:

A. Naval Research and Technology Development Center

1. Naval Research and Development Strategy 2014 to 2020

Linked to the PN Strategic Sail Plan 2020, this work serves as the developmental

strategy of NRTDC in order to become a fully-mission capable Research and

Development Unit. Through this strategy, NRTDC aims to become a strategy driven

organization by providing the needed technology that will address the PN’s capability

gaps as determined in the organization’s capability plan. The institutionalization of the

NRDS 2014-2020 is NRTDC’s major contribution to mainstream good governance in the Navy’s Defense Acquisition System.

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2. Institutionalizing Quality Management Systems

To further cement the elements of good governance in NRTDC’s organizational systems, it obtained its ISO 9000:2009 certification in January 2015.

3. Publication: Benchmarking Foreign Research and Development Organizations

for Developing Comparative Advantage

NRTDC’s groundbreaking initiative of benchmarking with the experiences and good

practices of the Council for Scientific and Industrial Research (CSIR) – South Africa, and

the Armaments Corporation of South Africa, SOC, Ltd. (ARMSCOR) Research and

Development Department to benchmark standards of comparative and competitive advantage among defense R&D organizations.

4. Establishment of the NRTDC Triad

Its purpose is to manage and sustain a strong and multi-disciplinary R&D capability in order to enhance NRTDCs capacity to conduct of directed, relevant and quality R&D.

5. Collaboration with Local Defense Industry

As sustainability of defense modernization depends largely on capacity of a strong

local defense industry, NRTDC has embarked on forging collaborations with REGULUS

Space Tech, Inc; Pobletech, Inc.; Manila Observatory; and the Society of Naval architects and Marine Engineers (SONAME).

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6. Capability Development and Policy Formulation

NRTDC conducted a Conference and Workshop on Cyber Defence and Security

and Radars and EW. It likewise led the formulation of a National Policy for Space

Technology Development and Utilization. It also provided POL and Paints Testing

Evaluation for Effective Technology Management.

7. Production of Eight (8) Technical Evaluations:

Technical Evaluation on Mine Hunter Vessel

Technical Evaluation on Mistral 3 and Manpads

Technical Evaluation on Submarine Technology and Knowledge

Training

Technical Evaluation on HAROP Missile System

Inputs on the UAV Systems Recommended for the PN

Technical Evaluation on Wing In Ground Craft

Technical Evaluation on Laser Homing Attack Missile

Technical Evaluation on Larsen and Toubro (L&T) Ro-Ro Vessel

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8. Creation of Six (6) Research Publications and Manuals:

PN’s Facebook Vulnerability Study

Assessment of Unmanned Combat Air Vehicles (UCAVs)

Draft NRDC Triad Memorandum of Understanding (MOU) and Briefer

Internship Program Manual of Operations

Technical Reference of Part Numbers on the Spares for JCPV PHASE

3 Restoration and Sustainment of 76mm 62-Calibre Compact Gun

Planned Maintenance System: Upkeeping the PN’s 76mm 62-caliber

Compact Guns

Submitted Project Proposal for Funding “Project Buhay”

B. Office of the Naval Strategic Studies

OFFICE OF NAVAL STRATEGIC STUDIES

2014 -

2015

PHILIPPINE NAVY

Outputs

Policy Reviews and Recommendations

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Monographs Monograph on Balintang Channel Incident;

Monograph on Chinese Expansion in the Asia-Pacific Maritime Domain

Case Studies Case Study on the Government Agencies and

International Navies Response on Typhoon

Yolanda

Policy Review Policy Considerations in Naval Operations

PN Foreign Post-Graduate Education

Commentaries Internal policies; national policies and

doctrines; proposed bills

Strategic Assessments

Strategic Assessment on Japan

Strategic Assessment on US (version 2)

ASEAN Economic Integration

Bimonthly Assessments

Special Reports

Chinese Coast Guard Blocks Ayungin Detachment Reprovisioning

13th International Institute for Strategic Studies

Asia Security Summit

Special Report on China’s Plan to Build Five

Lighthouses in Disputed Features in the Paracels

Special Report on Amendments to the Law on the Protection of Military Installations (MIS) of the People’s Republic of China

Special Report on Cyber Espionage of the People’s Liberation Army (PLA) Against the

Philippines

2nd Special Report on Cyber Warfare: Impacts

and Recommendation for the Philippines

PLA-Navy South Sea Fleet

Special Studies

Typhoon Yolanda Case Study

Philippine Maritime Economic Opportunities (Input to N5 for Regulatory Assessment Model)

Research Paper on Littoral Warfare

Naval Mine Warfare: A Defensive Option for the PN

UAV Systems: Recommendations for the PN

Submarine Programs in Asia: A PN Perspective

Reference Materials

Reference Material for FOIC, PN Lecture to

PMA Cadets (AADS and PN Shift from ISO to TDO)

Presentation on WPS and KIG for C, PF Lecture to NDCP

21st ISS Reference Material

ICC WPS Reference Folder for VCOM, PN

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Reference Paper on Naval Roles and Aligned Policies

Activities Conducted

2015 PN Maritime Symposium

AADS Strategy Management and Execution Workshop

ASEAN Navy Workshop on the Common HADR Protocols

PN Reservists Symposium 2014

5. AADS Workshop Series 2014

C. Fleet-Marine Warfare Center

1. Doctrines Review and Validation/Conduct of Bilateral and Multilateral Exercises

The unit facilitated the review and validation of 15 PN doctrines. They have also

continuously facilitated the conduct of bilateral and multilateral exercises.

2. Contribution to Research and Development

Research and Development Strategy documents and doctrines were

formulated. These include the formulation of the Fundamentals for Force Level

Training, and the future plans for the Active Archipelagic Defense Strategy (AADS).

3. Improvement of PN Operations

The unit developed the six (6) Year Exercise Plan to align naval exercises with the

PN Strategy; developed a METL-based Exercise Evaluation System, which emphasized

the Mission Essential Task of the participating unit; organized a Red Cell, which addressed

the PN strategic objective of a Responsive Naval Reservist program; and conducted

Doctrine Family Conference to review the PN Doctrine Hierarchy to prioritize Warfare doctrines required for the AADS implementation

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4. Stakeholder Satisfaction

Unit received certificates and Plaques of Appreciation from the bilateral and multilateral

engagements it has participated in.

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As the Navy continues to sail towards its vision, it ensures that its Institutionalization in the PGS Pathway and the conferral of the Island of Good

Governance go beyond the accomplishment in paper.

Through the best practices, lessons learned, and recommendations from the Institute for Solidarity in Asia, and various representatives from its stakeholders who joined the navy in its transformation journey, the Navy will continue to improve its Sail

Plan and three IGG Commitments.

A. Enhancement and improvement of the Islands of Good Governance Breakthrough Goals

The PN will continuously improve the processes and systems involved

in the three PN IGG Commitments. For the Sentinel of the Sea, the Navy will upgrade the Littoral Observatory Stations and Littoral Monitory Detachments in terms of personnel, training, materiel and capability. The Navy will further

endeavor to strengthen its partnerships with other government agencies and non-government organizations for an integrated, efficient and effective conduct

of situational awareness in the seas. For Standard of Excellence, the Navy will ensure that it shall reap the full

benefits of the 14 ISO Certified Units and Offices through cascading the ISO Certified processes to all relevant PN units and offices. This 2015, the Naval

Safety Office and the Center for Naval Leadership and Excellence started institutionalizing the cascading process as part of governance mechanism.

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Lastly, as a Bastion of Innovation, the three Research and Development units and office will be further integrated for a holistic approach on studies and

research. They shall work in synchrony on increasing the absorptive capacity of the Navy for current and future defense technology, strategic assessment

and planning, and force integration and training.

B. Ensuring the responsiveness of the PN Sail Plan 2020

Five years away from the vision year, the Navy will never falter to ensure that

its organizational development strategy—the PN Strategic Sail Plan 2020—is up-to-

date and responsive to the demands of the ever changing environment. To do this,

the Navy will continue the conduct the Annual PN Sail Plan Review, where the

organization is able the assess the responsiveness and relevance of the

objectives, measures and initiatives to the needs of the organization and its

people; evaluate the performance and progress of the organization in all the

strategic perspectives and determine the action plans needed to be undertaken

in order to address these the issues, and to continuously align to higher

headquarters strategies.

C. Alignment with DND and AFP Transformation Roadmaps

As a second-level unit of the AFP and third-level unit of DND, the PN will continue to ensure that the thrusts of the Sail Plan are aligned and fully-

supportive of the aspirations and initiatives of the AFPTR and DND PDTR 2028, respectively. With the AFP approaching its first base camp in 2016, the PN will hold another strategy review to assess the points of alignment it has to make

to the new basecamps of the AFPTR.

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