Strategic Performance Management

System
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The Strategic Performance Management System (SPMS) is a mechanism that links employee performance
with organizational performance to enhance the performance orientation of the compensation system. It
ensures that the employee achieves the objectives set by the organization and the organization, on the other
hand, achieves the objectives that it has set as its strategic plan.

The SPMS Objectives are: (a) to concretize the linkage of organizational performance with the Philippine
Development Plan, Agency Strategic Plan, and Organizational Performance Indicator Framework OPIF; (b) to
ensure organizational and individual effectiveness by cascading institutional accountabilities to the various
levels of the organization; and (c) to link performance management with other HR systems.

The SPMS has the following basic elements:

a. Goals that are aligned to agency mandate and organizational priorities
b. System that is outputs/outcomes-oriented
c. A team approach to performance management
d. Forms that are user-friendly and shows alignment of individual and organizational goals
e. Information systems that support monitoring and evaluation
f. A Communication plan

More importantly, the SPMS complements the Results-Based Performance Management System that is
implemented by the Office of the President and that links organizational performance to societal goals. It is
also linked to the Performance-Based Incentive System (PBIS) that consists of the Productivity Enhancement
Incentive (PEI) and the Performance-Based Bonus (PBB).

The SPMS Process

The SPMS follows a four-stage cycle, consisting of the following:

1. Performance planning and commitment

During this stage, success indicators are determined. Success indicators are performance level yardsticks
consisting of performance measures and performance targets. These shall serve as bases in the office’s and
individual employee’s preparation of their performance contract and rating form.

2. Performance monitoring and coaching

The performance of the office and every individual shall be regularly monitored at various levels. Monitoring
and evaluation mechanisms ensure that timely and appropriate steps can be taken to keep a program on track,
and that its objectives or goals are met in the most effective manner.

Managers and supervisors act as coaches and mentors to provide an enabling environment/intervention to
improve team performance, and to manage and develop individual potentials.
 3. Performance review and evaluation
This phase aims to assess both office’s and individual employee’s performance level based on performance
targets and measures as approved in the office and individual performance commitment contracts.

Part of the individual employee’s evaluation is the competency assessment vis-à-vis the competency
requirements of the job. The assessment shall focus on the strengths, competency-related performance gaps
and the opportunities to address these gaps, career paths, and alternatives.

4. Performance rewarding and development planning

The results of the performance evaluation/assessment shall serve as inputs for the agency’s HR Plan, which
includes identification and provision of developmental interventions, and conferment of rewards and
incentives.

SPMS Rating Scale

The SPMS uses a five-point rating scale, described as follows:

Rating

Numerical Adjectival Description

Performance represents an extraordinary level of

achievement and commitment in terms of quality and
time, technical skills and knowledge, ingenuity,
creativity, and initiative. Employees at this performance
5 Outstanding
level should have demonstrated exceptional job mastery
in all major areas of responsibility. Employee
achievement and contributions to the organization are of
marked excellence.

Performance exceeded expectations. All goals,

Very
4 objectives, and targets were achieved above the
Satisfactory
established standards.

Performance met expectations in terms of quality of

3 Satisfactory work, efficiency, and timeliness. The most critical annual
goals were met.

Performance failed to meet expectations, and/or one or

2 Unsatisfactory
more of the most critical goals were not met.

Performance was consistently below expectations, and/or

reasonable progress toward critical goals was not made.
1 Poor
Significant improvement is needed in one or more
important areas.