UNIVERSITY OF THE PHILIPPINES DILIMAN

Extension Program in Pampanga

Clark Freeport Zone, Pampanga

DESCRIBING ORGANIZATIONAL CULTURE OF

BALIBAGO WATERWORKS SYSTEM, INC.
THROUGH ITS ESTABLISHED VALUE SYSTEM
A Management 201: Management Theory and Practice Paper
August 2018

Submitted by:

CALILUNG, TEDDY O.
2010 – 19481

Submitted to:

Dr. MA. CORAZON P. RODRIGUEZ, DPA

Faculty, Master of Management Program

1
 Describing Organizational Culture of Balibago Waterworks System, Inc. (BWSI)
Through Its Established Value System

The book “Built to Last: Successful Habits of Visionary Companies” by Jim Collins and Jerry Porras
(2002) studied eighteen companies and compared them to their top competitors. They identified
ten timeless management principles that more than one hundred year old companies have
practiced over time that has led them to exist for so long.

One of these timeless principles is building a very strong organizational culture – as they termed it
a “Cult-like Culture”. It states that company longevity is dependent on developing specific and
unique company culture. This tight ideology of what the organization should be must be clear.
However, employees who are not aligned with the company culture are not likely to stay long and
will eventually leave. Meanwhile employees who subscribe to this culture stay with the company,
perpetuate the company culture and this leads to sustainability of the company for the long run
(Collins & Porras, 2002).

Mr. Cristino L. Panlilio, President of Balibago Waterworks System, Inc. (BWSI), is strongly guided by
the concepts of this book of Collins and Porras in leading his more than 700 employees. This is for
this reason why President Panlilio is very much committed in communicating and encouraging
every member of the organization to remember and be guided at all times by its four core values
represented by the four letters P-D-C-P. These core values are: proactive, dynamic, conscientious,
and performance-driven. Please refer to figure 1 on page 2 for the complete description of the
core values.

BWSI has started its operation in 1958 in portions of Brgy. Balibago in Angeles City and Brgy. Dau
in Mabalacat City. BWSI is recognized by the National Water Resources Board (NWRB), the agency
mandated by the Philippine government to regulate the use of natural water resources of the
country, as one of the largest most-efficiently managed provincial water utilities in the country.
After sixty years, BWSI is now operating in sixty branches in fourteen provinces nationwide serving
more or less 200,000 households with safe, clean, potable, and dependable water supply.

If you were to visit the head office of the company in

Angeles City, as you enter the lobby, a glass poster will
welcome you. Clearly written on the glass are the
company vision statement and the four core values which
are considered to be fundamental requirements for being
a BWSI employee.

This glass poster is strategically located at the office

entrance to remind every BWSI employee every day on
the company-wide goal of the organization and always
aspire to be a PDCP employee.

Exhibit 1. Glass poster at the lobby of

BWSI Head Office in Angeles City
2
Figure 1. BWSI’s PDCP Core Values and Their Definition

PROACTIVE
A proactive employee knows how to take initiative. S/he can do his job effectively even with
minimal supervision. S/he does not need a very detailed instruction.
S/he plans and acts ahead of anticipated events that is why s/he is able to avoid mistakes and
accomplish more tasks.
S/he sees possible risks and problems ahead of time and implements control measures to
avoid them.
S/he works in advance; s/he does not wait until the deadline before s/he does the task.
S/he takes control and initiates change

DYNAMIC
A dynamic employee is a highly skilled person who can handle multiple tasks efficiently.
S/he is someone who radiates enthusiasm and energy.
S/he actively participates in meetings and/or discussions and gives his/her comments and
suggestions whenever needed.
He is always up for a challenge; does not easily give up.
He is competitive and a go-getter.

CONSCIENTIOUS
A conscientious employee is someone who has genuine concern for the company, for his/her
co-employees and for the customers.
S/he is honest, trustworthy and reliable.
S/he is very careful and thorough in making decisions; s/he is greatly guided by his/her
principles in life.

PERFORMANCE-DRIVEN

A performance driven employee is a very goal-oriented person.

S/he knows the vision and mission of the company, sets goals which are aligned to the vision
and mission and holds himself/herself accountable in achieving them.
S/he works with an objective and end-result in mind hence accomplishes set goals at all times.
S/he always gives his 100% at work; does not do the task just for the sake of accomplishing
them.
S/he knows his/her craft and he delivers quality results at all times.
Source: Employee Orientation Presentation

Ms. Cristina Isabelle P. Alejandro, Senior Vice-President of BWSI, fully supports the vision of the
president for these values to serve as distinguishing characteristics of every BWSI employee. They
are one in the goal of making every BWSI employee a PDCP employee.

3
Aside from these core values, SVP Alejandro identified other values which she as leader also of the
organization and who is tasked to implement given goals of the President and the Board of
Directors through directing all efforts of the organizations’ members, believes to be essential.
These additional values, according to her, will complement the four core values to create the “right”
organizational culture for BWSI. These are:

Figure 2. BWSI Senior Vice-President’s Secondary Values

Teamwork Multi- Management

& Support Tasking by Objectives

Family-like Lean & Mean Change &

Environment Mindset Fun

SVP Alejandro made clear that among the above six secondary values, “lean and mean mindset”
and “management by objectives” were also actually President Panlilio’s espoused values. SVP
Alejandro shared that the president would often mention these values in conversations and
speeches. But since they did not fit neatly into the PDCP, the president did not incorporate them.
However, because of the perceived importance of these values to the president and as she
observed that these values were actually evident in the company, she decided to include them in
her short list of secondary values.

Inculcating Espoused Values

Between the core values and the secondary values, SVP Alejandro admits that there are more
deliberate and stronger efforts in promoting the PDCP values. BWSI aims to change the
organizational culture through the introduction and establishment of strong values system. This
effort could be seen in various strategies used or being used by the top management to ensure
these values are embedded across and in all levels of the organization. This includes also the
different programs (including both positive and negative reinforcements) launched to encourage,
promote, and develop the desired company culture.

I. Increasing Awareness of the PDCP Core Values

A. Selection of PDCP Employees

First program launched is the explicit communication and promotion of the PDCP core values. SVP
Alejandro knew that the first step to establish strong values system-based culture was to promote
awareness of the PDCP core values.

As she shared, when she came in to BWSI in 2008, she noticed that there was barely an awareness
about the PDCP core values. According to her “some branches had PDCP posters in their branches,
but like many things, it was a signage on the wall that did not mean anything to the employees. And
so, there was one year when I was told that I had a bonus fund of Php 400, 000 to share with the

4
Rank and File employees. Rather than just distributing this amount equally amongst the employees, I
decided to use the money as a reward for employees who possessed and exemplified all the four
core values of PDCP. I launched the program of finding 80 PDCP Employees and each winner would
get Php 5, 000 prize money. The program was a success in generating awareness and
understanding of the core values. In the next year, I reinforced the promotion of PDCP further by
launching the program yet again. Another 80 winners would receive Php 5, 000 each. There was also
some math involved here. At the time, we had around 500 employees. By awarding 80 in the first
year and 80 in the second year, I was sure 160 employees would then have internalized the PDCP by
heart. Meanwhile, for the remainder of employees, awareness of PDCP was developed because they
were required to nominate their colleagues and write specifically why they possessed each value. In
the third year, I promoted the PDCP again through another program, following the format of shows
like “The X-Factor” and “American Idol”. Through these three programs, I was able to achieve the
objective of making all employees aware and begin practicing PDCP in their work.”

Exhibit 2. 2016 PDCP Employee of the Year Selection Audio-Visual Presentation

B. Employee Orientation
Another effort to promote awareness of the PDCP and secondary values is through employee
orientation. All new hires are required to attend a two-day employee orientation seminar starting
on their first day as part of their on-boarding in the company. During said orientation, the PDCP
and secondary values are introduced to them and clearly sets the expectation that every BWSI
employee is a PDCP employee. In this way, a common understanding of the values is supported
and communicated.

C. Performance Evaluation
BWSI also designed a performance-evaluation that captures the assessment of the actual practice
of the core values of an employee. The company’s standard evaluation form is divided into four
major sections: job-related performance, administrative conformance, interpersonal skills, and
PDCP values. During annual performance reviews and evaluation for regularization, every member
of the organization is evaluated on their commitment to the PDCP values and how they reflect
them in the workplace.

5
E. Employee Handbook
After signing of employment contract, every employee is given an employee handbook which also
contains information on the company values. Employees are encouraged to read and understand
the employee thoroughly to guide them during their employment period in the company.

II. Internalization of PDCP Core Values

The next step after employees are made aware of the PDCP core values is internalization of them.
The management designed specific strategies to enforce practice of both core and secondary
values. Also included in this section are the specific situations where the management has practiced
the four core values.

A. Jump Start Seminar

SVP Alejandro is committed in inculcating these core values to employees. As a concrete example,
during the 2018 Jump Start, a seminar attended by all managers to kick off the year, which was
held in Pasay City last February 8 and 9, SVP Alejandro talked about the four functions of
management with focus on the importance of planning in the success of any activity or project.
Using sample branch operations activity, she demonstrated how to effectively plan by making a
very detailed to-do list to ensure nothing is missed out. She always advises everyone to have a
visual run-through of the event so they may think of all possible scenarios and problems they may
encounter and do the necessary preventive actions. In short, be proactive.

In addition, when a program was introduced related to the accomplishment of targets, she always
reminds everyone on how to effectively plan and strategize to ensure success. She conducts
informal mentorship to her employees on how to be strategic and do effective planning to be
more efficient in their respective roles.

B. Actual Branch Operations Immersion

As a leader, you cannot take your team to places you have never been before. A new program was
introduced to improve the collection efficiency of the revenue centers and to reduce long
outstanding accounts receivables through the offering of easier payment terms to active and
inactive customers. However, few revenue centers were able to introduce the program.

In order to show how SVP Alejandro envisioned the program to work and fully serve its objectives,
she invited the members of the management committee to participate in the roll out of the
program in Apalit, Pampanga last August 16, 2018. Despite their busy schedule, the SVP herself,
together with the Vice-President for Operations, all of the Area Managers, the Assistant Vice-
President for Accounting, selected Branch and Accounting Managers were asked to be collectors
for a day and be the one to go house-to-house to introduce said program. This actual branch
operations immersion helped them, being pertinent members of the company, learn and
understand how the program works and to see it in real life so they know how to roll it out in their
respective areas. Activities like this help for the continuous development of employees and practice
the second core value — be dynamic.

C. Putting Employees’ Welfare First

During the onslaught of “Habagat” in most of the provinces in Luzon, the management constantly
monitors the situations of its employees. The SVP orders suspension of work in those areas

6
severely affected by floods and offers “work from home” for those who will have difficulty reporting
to office. The management also extended some assistance to those employees who were flooded
through emergency calamity loan and distribution of relief goods.

D. “Winners Bonus” Program

To encourage “Performance-Driven” behaviour, SVP Alejandro launched the “Winners Bonus”
Program. The program is designed to financially incentivize those branches or department which
would be able to hit their set targets for the year. If they successfully hit all the targets, meaning
100% attainment of their respective key performance indicators (KPIs) received and signed at the
beginning of the year, every member of the team will get a bonus equivalent to his/her one month
salary.

E. Document Grading System

Effective November 20, 2017, SVP Alejandro introduced a grading system for document
preparation to promote a “Performance-Driven” organization. All of the Vice-Presidents and
selected company officers were designated as “evaluators” and were given stamps to evaluate all
the paperworks (memo, reports, check vouchers, fund replenishments, cash advances, reports,
legal documents, deed of sale, etc.) that pass through them. The overall objective of this new
system is to encourage employees to ensure complete staff work was done prior to submission.
The evaluators would give the document with the following ratings: 3 for excellent/exceeds
expectations; 2 for satisfactory; and 1 for poor/needs improvement. For those papers graded with 1,
they will be returned to the owner for revisions to satisfy requirements for higher standards.

F. Team Building by Branch/Department

Deviating from the usual practice of having one company-wide outing, SVP Alejandro decided to
have team building by branch or department instead last year. Specifically, she requested the
facilitator to ensure employees do “affirmations” to foster greater understanding and stronger
bond among people of the same branch or department.

G. Creating a Family-like Environment

BWSI cares for its employees. Almost everyone knows one another. The constant expression of top
management in thanking the employees and recognizing their contribution to the success of the
company is what promotes the feeling of meaning and purpose for employees.

During any company-wide event such as summer outing and year-end parties, the top
management does not want special treatment. As an example, during after-event assessment of a
certain company seminar held February this year, President Panlilio and SVP Alejandro specifically
pointed out that they do not want plated meals prepared for them if the dining set-up is buffet.
They prefer to join the line at the buffet station and get their food for themselves together with all
of the employees. Also, President Panlilio would always visit each table of the employees to
personally greet them.

H. Multi-Tasking
Individual job duties and responsibilities are never restrictive to give employees the opportunity to
explore and attain their maximum potentials. The ability to accomplish multiple diverse tasks
simultaneously is a trait common to every BWSI employee. This is very evident in employees who
are handling multiple positions such as plumber/meter reader/pump operator/collector.

7
I. Lean & Mean Mindset
As a company, employees exhaust all possible ways to keep expenses low as they clearly
understand that the company has limited resources and thus, these resources must be utilized in
the most efficient and effective way possible. One simple practice that you can observe in the
organization is the discipline that air condition units are only turned on at 8AM. Some conference
halls’ air conditioning units can only be open once the minimum number of people in the room is
met. The top management is also very conscious in the approval of requested budget for capital
expenditures.

J. Management by Objectives
BWSI trusts its employees that they could accomplish given goals with their own initiatives and
innovative strategies guided by the company’s core values. It promotes macro-management and
critical and outside-the-box thinking for everyone.

Managers are given a whole realm of decision making in managing various company resources
such as money, machine, material, and manpower. President Panlilio and SVP Alejandro do not
encourage managers to come to them for decision-making every step of the way. This is possible
because the organization structure is well-defined and the authority given to each position is also
clear.

K. Change and Fun

Everyone embraces change and is always seen as inevitable. It plays a significant role in the
organization’s continuous improvement. SVP Alejandro, in most of her communications, constantly
encourages employees to be willing to change by telling them that “if they do not change, they will
become obsolete”. No matter how busy or demanding the schedule can be, BWSI staff still find time
to laugh.

Assessing Enacted Values

Now that the core values and the secondary values of BWSI and the specific strategies adopted by
the management to ensure awareness and practice of these values have already been described,
this section explains how major employee groups view these things in the organization.

The proponent of this study has decided to conduct a simple survey participated by twenty-five
selected employees representing various levels (rank and file, supervisory, managerial, and
management committee) and length of stay in the organization (0 to 2.99 years, 3 to 5.99 years, 6
to 9.99 years, 10 to 15 years, and more than 15 years) to know their awareness of the values and
their individual thoughts to some questions. Let it be noted that the survey conducted does not
attempt to make a general conclusion as the researcher acknowledges that would require more
and certain statistical analysis.

Below are the profiles of those who participated in the survey in terms of rank and length of service
in the company:

8
Table 1. Profile of the Twenty-Five Survey Participants

Major Employee Groups

Length of Service Management Total
Rank & File Supervisory Managerial
Committee
0 to 2.99 years 1 1 1 3
3 to 5.99 years 2 1 2 2 7
6 to 9.99 years 1 2 1 1 5
10 to 15 years 1 1 1 2 5
more than 15 years 2 1 2 5
Total 6 5 6 8 25

Of the twenty-five employees who were asked if they know the core values of the organization and
what are these core values are, all of them (100%) were able to identify the company’s core values.
Twenty respondents (80%) spelled out the PDCP (Proactive-Dynamic, Conscientious, Performance-
Driven). Only one respondent (4%) answered “PDCP” while another one (4%) identified the core
values and included some description of each one. Two respondents (8%) gave the English and
Filipino versions of the core values and one (4%) provided the Filipino version only of the core
values.

On the subject of how did they come to learn these values, Figure 3 below provides the graphical
representations of the responses of the participants.

Figure 3. Participants’ responses on how did they learn the PDCP core values.

Agos Newsletter
Company Events/Meetings/Trainings…
Employee Handbook
Employee Orientation
Everyday Practice/Application
Good Education Rank & File

Management's Constant Reminders Supervisory

Officemate/Superior Managerial
Parental Guidance ManCom
PDCP Awards
Poster
President's Speeches/Reminders
SVP's Speeches/Reminders

0 2 4 6 8 10 12

Based on the responses of the participants on the different factors or individuals that made them
aware of the company core values, the top answer is that these are being discussed during
company events such as town hall, summer outing, year-end party and in meetings, trainings, and
seminars. More specifically constant reminders from the management’s through President Panlilio’s

9
and SVP Alejandro’s speeches during said various events and assemblies are key instruments for
the learning of the participants of the four core values.

Another venue that built the knowledge of the participants on these core values is during
employee orientation where said values are introduced to the new members of the organization
including other company knowledge. Participants identified other instruments such as posters at
the lobby of the head office and those at branches’ offices and employee handbook as
contributing factors for their familiarity on them. Other learning factors include PDCP Employees of
the Year Award where PDCP values are used as criteria for selection, through introduction from
colleagues/superior, everyday application in the workplace, featured on Agos (the official newsletter
of BWSI), parental guidance as one grows up, and good education.

When asked what rating they would give to their colleagues in practicing the core values in a scale
of 1 to 10 (10 being the most practiced and 1 being the least practiced), their average rating is 7.64.

The participants generally have high regards on its company officers when it comes to leading by
example. Following the same scale, participants were also asked to rate below company officers on
how much they practice and how much they are being guided by the PDCP values:

Figure 4. Survey Participants Ratings’ for Company Officers in the Practice of PDCP Core Values
(Leading by Example)

President
Senior Vice President
VP for Operations
VP for Engineering
VP for Accounting
VP for Admin

0 1 2 3 4 5 6 7 8 9 10

The highest rating of 9.84 was given to President Panlilio followed by SVP Alejandro’s 9.72 rating.
The ratings for the Vice-Presidents of four divisions range from 8.17 to 8.72 with VP for Operations
at 8.72, VP for Engineering at 8.60; VP for Accounting and VP for Admin both got 8.17.

Aside from the company’s PDCP core values, participants were also asked to identify what other
values do they think are evident in the organization. The summary of their responses is provided in
Figure 5.

Figure 5. Other Values Identified by the Participants to be Present in BWSI

Spirituality and Religion Erudite Family-Oriented Customer-Focus

Perseverance Commitment Service to Others Work Efficiency Respect
Hardworking Teamwork
Loyalty Passion Limitless Learning Process
Striving for Excellence Honesty Good Humor Love Kindness Fairness
Integrity Discipline Dedication Empathy Lean and Mean Organization 10
Being family-oriented, having teamwork, integrity, and the will to strive for excellence or going
extra miles are the top values that were identified to be present also in the organization.

Most of the employees surveyed agree that “strong family ties” in Filipino households can also be
seen in the organization. For them, BWSI has a “family culture” which “makes the day seem shorter
and gives a lighter feel when the days are long and problematic.”

Participants believe that employees work hand in hand to achieve their goals. One particular
example is how one participant described how teamwork is being practiced in the company. For
him, he sees that each work group volunteers to contribute in case of challenges a branch is facing
like materials and manpower needs.

Integrity, as defined by one participant, is the quality of having strong moral principles and good
character. This is crucial when it comes to building reliability, commitment and trust which translate
into accomplishing the output that is being asked from each individual. Another employee said, for
herself, integrity is evidenced when with or without her immediate superior, she still makes sure
that her duties and responsibilities are being done accurately and efficiently.

Participants also see that BWSI employees have the will to strive for excellence by going extra miles
in their respective roles. Every year the company is raising its standard and improving customer
service and satisfaction. As how one respondent puts it, “the company is committed to its customers
by providing quality basic services. The company has a commitment to excellence. Like what Ma’am
CPA [SVP Alejandro] has emailed to us we should always strive for excellence in all aspects of our
work in BWSI & in our life as well.”

Aside from the said values, results show that spirituality and religion, customer-focus, commitment,
service to others, respect, loyalty, limitless learning process, honesty and lean and mean values are
also considerably present in the organization.

Meanwhile, other values such as erudite, perseverance, work-efficiency, hardwork, passion, good
humor, love, kindness, fairness, discipline, dedication, and empathy also surfaced in the survey
conducted.

Lastly, participants were asked on their overall perception about BWSI as a workplace as compared
to all the companies they know about. They were given five choices to describe BWSI: the best,
among the best, neutral, among the worst, the worst. The summary of their responses on this
question is provided by Figure 6 below.

Of the twenty-five respondents, three (3) or equivalent to 12% consider BWSI as the best company
they know to work for. Eighteen (72%) identify BWSI as among the best workplace they know while
four (16%) participants answered neutral.

11
 Figure 6. Survey Participants’ Ratings on BWSI as a Workplace.

Among the The worst

worst 0%
0%
Neutral The best
16% 12%

Among the best

72%

Table 2. Responses of Major Employee Group on their overall view for BWSI as a Workplace

Major Employee Groups

Rating Management Total Percentage
Rank and File Supervisory Managerial
Committee
The best 3 3 12%
Among the best 2 5 4 7 18 72%
Neutral 1 2 1 4 16%
Among the worst 0 0%
The worst 0 0%
Total 6 5 6 8 25
Percentage 24% 20% 24% 32%

Table 2 summarizes the breakdown how major employee groups responded to the rating of BWSI
as a workplace. Notice that the three employees who consider BWSI as the best company to work
for are all in the rank and file level. All of the five (5) respondents with supervisory level consider
BWSI as among the best companies they know. For the surveyed managers and members of the
management committee, four (4) out of six (6) and seven (7) out of eight (8) recognize BWSI as
among the best workplace they know, respectively.

12
Conclusion

From the presentation of the case of BWSI’s top management efforts in building what they think is
“right” organizational culture for the company through the introduction and adaptation of strong
values system, everyone could learn the importance of conceptualization, communication,
consistency, and commitment in translating that vision into reality.

Since the time the management realized the importance of establishing unique organizational
culture to ensure success and resilience of the organization in the coming years, it was clear to
President Panlilio what specific values every employee should possess – the values that will
differentiate every BWSI employee from other employees in any organization.

A concept as a well-thought idea will mean nothing unless it is transformed into reality. Identifying
the particular core guiding values of BWSI and the complementary secondary values represents
only half of the solution. Failure to put these great plans into action is where most promising
endeavours fail. Those well-written vision statements and carefully selected core values would
mean nothing if there is no effort from the management to translate these ideas into practice.

In the case of BWSI, it has been seen that through the power of strong, clear, direct and indirect
communications in all and across all levels of the organization, awareness and understanding of
the PDCP core values was achieved. In every opportunity President Panlilio and SVP Alejandro may
have where they could share their interpretation of the core values and constantly remind the
employees about them, they grab it.

However, it takes more than making employees to be aware of these values to embed them in the
daily system and processes of the employees. More than verbal communications and reminders
about these values, the leadership of BWSI walked the talk. As leaders of the organization, they are
aware that they hold the great power to influence employees’ behaviour. Consistency from the top
management’s words and actions is a key factor for encouraging employees to also understand
and internalize the values. This is supported by the high regards of the surveyed employees to
company officers in leading by example.

As a result of top management’s strong commitment to these values, employees have also
developed loyalty and commitment to them. Whatever job level or department they may be
currently assigned at, everyone is aware and embraces these PDCP values.

This commitment is also the reason why espoused values of President Panlilio are also the enacted
values of every member of the organization. The highest level of internalization is attained when
these values already became part of their system.

Culture is the spirit of the organization. This supports the finding of Porras and Collins that if you
want to ensure success of your organization, build a “cult-like” culture. In the case of BWSI, leaders
of the organization play a critical role in shaping their desired culture. Partnered with well-thought
concept, utilizing all communication channels, ensuring consistency and commitment, one can
design the “right” culture for his or her organization.

13
Reference:

Collins, J., & Porras, J. (2002). Built to Last. Ney York: HarperCollins Publisher.

14