Strategic Goals

Strategic goals are identified to accomplish the organization's Mission Statement and pertain to the
organization as a whole, rather than to a specific department. Goals identify what an organization wants to
achieve, preserve, reduce or eliminate. Strategic goals provide an organization, specifically its management,
with a sense of direction by stating quantified performance targets.

The strategic goals developed within the business planning process provide a utility with its core priorities
and a set of guidelines for virtually all daily managerial decisions. Strategic goals should be written down and
management should know what they are at all times. When managers are faced with the prospect of making a
decision, they should always refer to the stated strategic goals and act in a way that helps to achieve those
strategic goals.

Strategic goals should direct the operations of the utility in key areas as a whole. Such areas may include all
the aspects of billing and collection, water demand management, integrated water resource planning and
management, environmental issues, water quality, community involvement, customer satisfaction, etc. In
addition, aspects such as management of human resources, financial management, and customer service can
be addressed specifically in the strategic goals.

Strategic goals are critical because they provide the important element of accountability to the strategic
planning process. The senior management of the utility is responsible to their Board of Directors, local
government, or other governing authority for achievement of measurable objectives. Other members of
management should be made fully aware and held accountable for achieving performance relative to specific
objectives in their areas of operational responsibility. In some utilities, compensation and other rewards are
tied to the achievement of specific measurable goals stated in the utilitys business plan, or the action plan of
the particular operating unit of the utility.

A utility can have many important goals, but having too many can defeat the purpose of strategic and
business planning. When determining strategic goals, the key is to prioritize.

The strategic goals should address the major issues being faced by the utility, and its management, over the
next five years, in carrying out its Mission Statement. These issues should have been identified and prioritized
as to urgency.

Strategic Goal must be Specific, Measurable, Time Bound, Achievable and Acceptable

1. Specific - A Strategic Goal must be clearly stated in specific terms so that

There is no confusion as to the meaning and purpose of the goal.
2. Measurable - A Strategic Goal must be measurable in quantitative terms so
that it can be monitored and assessed objectively, which in turn, facilitates
evaluating progress towards achieving the goal.
For example, observe the difference between the two following statements
in terms of achieving a goal:

The reduction of non-revenue water will be priority of the utility.

As compared to:
Non-revenue water will be reduced to an average level of 14% of water
supplied to the system.
 3. Time Bound - A Strategic Goal should be stated such that it is accomplished
within a specified time frame, say from one to five years. When
stating a longer-term for a strategic goal, it is advisable to state interim
target goals to be met.

For example, if the is to increase the bill collection efficiency rate to 95% by
the end of year 4 of the business plan, and if the efficiency rate is currently
at 25%, then interim goals could be stated as, The interim bill collection of
goal for end of Year 1 is 35%, end of Year 2 is 50%, end of Year 3 is 70%
and rnd of Year 4 is 95%.
4. Achievable - While a Strategic Goal should be challenging, it must also be
Realistically possible to achieve the goal as stated. If a strategic goal is
unrealistic, employees may become unmotivated because they will never be
able to reach it.
5. Acceptable - If the work force of the utility does not accept a particular
Strategic Goal, achieving it will be difficult. Effective management requires
that the work force take ownership for achieving the stated Strategic Goals.
If they do not understand why they are being asked to achive a particular
Strategic Goal, or the impact that the Strategic Goal will have on them and
the utility, once achieved, they will not pursue it with commitment and
determination.

Strategic Goals:

Strategic Goal Measurement of Performance

Assure Water Quality Maintain water potability passing all parameters set in the Philippine
National Standards for Drinking Water 2007.
Increased Billed Water Increase the amount of produced water that is billed, such that the
Production Utility is billing 85% of its water production, as measured at the
sources, by the end of 2017, 86% by 2018, 86.5% by 2019, 86.4% by
2020 and 86.3% by 2021.
Acces to Potable Water Increase by 79% Barangays with acces to potable water by the end of
2017, 82% by 2018, 85% by 2019, 88% by 2020 and 90% by 2021.
Become Financially Achieve full cost recovery, to include annual interest and capital
Sustainable repayments on current loans, and a defined annual contribution to a
capital repair and replacement reserve by the end of 2021.
Maintain Ideal Non- Achieve acceptable percentage of unbilled water to water production by
Revenue Water Limit 15% to 14%.
 I. Assure Water Quality

Strategic Goal Addressed

Regular monitoring of water quality. Bacteriological testing of water supply

in all service areas. One(1) sample for every 5,000 population served. Sixteen
(16) samples for the year 2018, eighteen(18) samples by the year 2019,
twenty(20) samples by the year 2020, twenty-two(22) samples by the year 2021
and twenty-four(24) samples by the year 2022.

Responsible Division / Key Manager

The Production Division is the sole division responsible division to

addressed this strategic goal.

Description of Primary Actions

1. Physical and chemical test for every pumping stations must be conducted
twice a year.
2. Every pumping stations must have a chlorinating machine for disinfection
of water supply, well maintained by operator on duty.
3. Monthly bacteriological test, water samples taken in different areas of
coverage.
4. Regular flushing in every end point of distribution lines.

Schedule of Task and Key Milestones

TASK 2017 2018 2019 2020 2021

Physical & Chemical Test 26 28 30 32 34
Disinfection of Water Supply 347,000 357,410 367,820 374,760 381,700
Monthly Bacteriological Test 192 216 240 264 288
Regular Flushing 144 144 144 144 144
 Application of Investment Capital

TOTAL COST
ITEM QUANTITY UNIT COST (MILLION 2017 2018 2019 2020 2021
(PHP) PHP)
Laboratory 1 sample 3,500.00 91,000.00 98,000.00 105,000.00 112,000.00 119,000.00
Test Fee
Equipment &
Chemical 1,564,000.00
Supplies
Laboratory
1 sample
Test Fee
Fuel
Consumption

Measurable Improvement in Performance

1. 96% of Physical and Chemical Test by the end of 2017.

2. 98% of Physical and Chemical Test by the end of 2018.
3. 98% of Physical and Chemical Test by the end of 2019.
4. 100% of Physical and Chemical Test by the end of 2020.
5. 100% of Physical and Chemical Test by the end of 2021.

II. Increased Billed Water Production

Strategic Goal Addressed

Increase the amount of water billed, the collection efficiency increase 85%
by the end of 2017, 86% by the end of 2018, 86.5% by the end of 2019, 86.4% by
the end of 2020 and 86.3% by the end of 2021.

Responsible Divisions / Key Manager

The Production Division and Commercial Division are responsible divisions

for implementing these primary actions described below.
 Description of Primary Action

This field of the Performance Improvement Action Plan (PIAP) describes the
primary actions that will be undertaken to achieve the stated strategic goal.

1. Install Production meter at each of pumping station, at the inlet and

outlet of each storage reservoir and inlet of turned-over subdivisions.
2. Install water meters to all service connection.
3. Identify and eliminate all illegal connections and unregistered
connections based on the finding of the inventory and routine field
investigations.
4. Absolutely refrainment concessionaires from giving or allowing
connections from its premises to another apartment dwelling, etc.

Schedule of Task and Key Milestones

This field of the PIAP illustrators the utilitys planned schedule for the action
needed to achieve the stated strategic objective.

TASK 2017 2018 2019 2020 2021

Install production meters

Install water meters to all
service connections
Identify & eliminate illegal or
unbilled connections
Absolutely refrainment
concessionaires from giving or
allowing connections from its
premises to another
apartment dwelling, etc.

Application of Investment Capital

This field of PIAP details the capital cost estimate for each capital investment
to be made by utility from its capital investment sources to implement the stated
PIAP, and when those investment will be made during the planned period.
 TOTAL
UNIT COST
ITEM QUANTITY 2017 2018 2019 2020 2021
COST (MILLION
PHP)
Install production meter 1 1 1 1 1 1
Install water meter to
1000 750 1000 1000 1000
new concessionaires
Elimination of illegal
12 12 18 18 18
connection
Household inventory 60 60 60 60 60

Measurable Improvement in Performance

This field of the PIAP lists the measurable interim milestones of the overall
strategic goal to be achieved within the planning period of the business plan.
These interim milestones also provide the basis for monitoring the progress
toward the achievement of the strategic goal during the years of implementation.

1. Bill 86.63% of water production by the end of 2017.

2. Bill 86.07% of water production by the end of 2018.
3. Bill 86.15% of water production by the end of 2019.
4. Bill 86.18% of water production by the end of 2020.
5. Bill 85.17% of water production by the end of 2021.