1

TABLE OF CONTENTS
Page
Eligibility Certification Form
Application Form

Glossary of Terms….................................................................................................... ii

Organizational Profile
P.1 Organizational Description…....................................................................... v
P.2 Organizational Situation…........................................................................... viii

Category 1: Leadership
1.1 Senior Leadership…..................................................................... 1
1.2 Governance and Societal Responsibilities…................................ 4

Category 2: Strategy
2.1 Strategy Development…............................................................... 6
2.2 Strategy Implementation…........................................................... 10

Category 3: Customers
3.1 Voice of the Customer….............................................................. 12
3.2 Customer Engagement….............................................................. 14

Category 4: Measurement, Analysis, and Knowledge Management

4.1 Measurement, Analysis, and Improvement of
Organizational Performance…..................................................... 16
4.2 Knowledge Management, Information, and
Information Technology…........................................................... 20

Category 5: Workforce
5.1 Workforce Environment…........................................................... 22
5.2 Workforce Engagement…............................................................ 26

Category 6: Operations
6.1 Work Processes…......................................................................... 28
6.2 Operational Effectiveness…......................................................... 33

Category 7: Results
7.1 Product and Process Results…..................................................... 36
7.2 Customer-Focused Results…........................................................ 39
7.3 Workforce-Focused Results…...................................................... 39
7.4 Leadership and Governance Results…......................................... 43
7.5 Financial and Market Results….................................................... 46

i
 GLOSSARY OF TERMS

AM Area Manager
AR Accounts Receivable
ARAW-ACI Abacan River and Angeles Watershed Advocacy Council, Inc.
AVP Assistant Vice-President
AWOL Absence Without Leave
BA Branch Accountant
BAIC Branch Asset Inventory Custodian
BDT Business Development Team
BE Branch Engineer
BFP Bureau of Fire Protection
BHAG Big Hairy Audacious Goal
BIA Business Impact Analysis
BM Branch Manager
BOD Board of Directors
BP Business Plan
BWSI Balibago Waterworks System, Inc.
BWU Balibago Waterworks University
CAPEX Capital Expenditure
CBIT Central Billing and Information Technology Team
CENRO City Environment and Natural Resources Office
CFO Chief Finance Officer
CMR Comparative Monthly Report
COVID-19 Coronavirus Disease 2019
CPC Certificate of Public Convenience
CSA Customer Service Associate
CSS Customer Satisfaction Survey
CVAT Customer Validation Audit Team
DENR Department of Environment and Natural Resources
DF Demand Forecast
DILG Department of the Interior and Local Government
DMA District Metering Area
DMS Document Management System
DOH Department of Health
DOLE Department of Labor and Employment
DRP Disaster Recovery Plan
ECC Environmental Compliance Certificate
ELITE System Customer Database and Billing System of BWSI
EM Executive Manager
EngCom Engineering Committee
EPS Earnings per Share
ERP Enterprise Resource Planning
ESC Engineering Services Center
FAC Finance and Accounting Center
FinAcCom Finance and Accounting Committee
ii
FP Financial Projection
GAAP Generally Accepted Accounting Principles
GPM Gross Profit Margin
HOA Homeowners' Association
HRD Human Resources Department
HRIS Human Resource Information System
IA Internal Audit
IATF Inter-Agency Task Force
IIS Interlink Integrated System
IOM Income from Operations Margin
IRR Internal Rate of Return
IS Income Statement
ISO International Organization for Standardization
JO Job Order
KPI Key Performance Indicator
KWH Kilowatt Hour
LGU Local Government Unit
LMS Learning Management System
LOI Letter of Intent
LSC Levels of Service Commitment
LWUA Local Water Utilities Administrator
MCWD Metropolitan Cebu Water District
MLD Million Liters per Day
MOA Memorandum of Agreement
MRF Manpower Request Form
NC Non-Conformance
NMA Network Map Assessment
NPM Net Profit Margin
NRW Non-Revenue Water
NWRB National Water Resources Board
OFS Operating and Financial Statistics
OS Operations Supervisor
OSH Occupational Safety and Health
PDCA Plan-Do-Check-Act
PDCP Proactive, Dynamic Conscientious, Performance-Driven
PFRS Philippine Financial Reporting Standard
PNSDW Philippine National Standards for Drinking Water
PPP Public-Private Partnership
PS Plumbing Supervisor
PSI Pound per Square Inch
PVC Polyvinyl Chloride
QA Quality Assurance
RA Risk Analysis
RC Revenue Center
RevCom Revenue Committee
RMM Risk Management Matrix
iii
ROA Return on Assets
ROE Return on Equity
ROI Return on Investment
RPO Recovery Point Objective
RTO Recovery Time Objective
RVAT Reduced Voltage Auto Transformer
SALINTUBIG Sagana at Ligtas na Tubig para sa Lahat (DILG Program for Water)
SCM Supply Chain Management
SD Systems Department
SEC Securities and Exchange Commission
SIP Safety Improvement Plan
SJHA Safety and Job Hazard Analysis
SL Senior Leadership
SMART Specific, Measurable, Attainable, Resource-Based, Time-Bound
SME Standard Monthly Expense
SOP Standard Operating Procedure
SOs Safety Officer
SSC Support Services Center
SupportCom Support Committee
SWOT Strength, Weakness, Opportunity and Threat
T&D Training and Development
VFD Variable Frequency Drive
VP Vice-President
VPO Vice-Presidents for Operations
WFS Water Filtration System
WP Water Permit
WTP Water Treatment Plant

iv
ORGANIZATIONAL PROFILE services. The profits it derives from these new
investments are secondary to its commitment to
P.1. Organizational Description improving the social and economic well-being and
P.1a Organizational Environment welfare of all its stakeholders who likewise depend
on its operational efficiency and effectiveness.
P.1a(1) Product and Service Offerings
Balibago Waterworks System, Inc. (BWSI), with a BWSI’s growth and development can be attributed
remarkable 65 years of experience in the water to the following core competencies:
industry, has established itself as a leading provider
1. Only water utility company to start from
of potable water in the Philippines. Its reach
nothing (greenfield) and succeed -
extends far and wide, with 82 branches spanning 22
provinces nationwide. Through its unwavering Starting a new water utility from scratch
commitment to excellence, BWSI has successfully requires careful planning and execution,
provided a reliable and sustainable Level III water including designing and building
system to more than 300,000 households within its infrastructure, obtaining necessary permits
franchise areas. and licenses, hiring staff, developing
operational procedures, and securing
Its Levels of Service Commitment (LSC) to the
financing. This ability to execute a well-
nearly two million population that rely on its
thought-out strategy, adapt to changes, and
service are:
make data-driven decisions is a key
1. Water availability 24 hours a day, 7 days a competency of BWSI that helped expand its
week; franchises and provide basic services to
2. Water pressure of at least 16 pounds per previously unserved areas.
square inch (PSI) during peak hours;
3. Water quality passes the Philippine 2. Non-Revenue Water (NRW)
National Standards for Drinking Water Management – NRW level is a measure of
(PNSDW). the operational efficiency of any water
utility company. As of March 2023,
To accomplish this, BWSI undertakes various
BWSI’s groupwide NRW is 14.68 percent
projects to source water from underground aquifers
(over 300 deep wells), surface water (8 Water versus the 40 percent global NRW average.
Treatment Plants [WTPs]), and spring sources (2 Through this effective NRW Management,
spring boxes). The extracted raw water undergoes BWSI can achieve its mission to maintain
treatment before being distributed to its customers an efficient and extensive water system in
through pipe networks and lorry trucks. its franchise areas.

P.1a(2) Vision, Mission, Values, and Culture

3. Designing, Constructing, and Operating
In Category 1 of this document, the organization's
Vision, Mission, Culture, and Core Values are a 1.5 Million Liters per Day (MLD) WTP
enumerated. The main aim and objective of BWSI – BWSI is the first private water utility
is to provide clean and potable water to its company to master the design, construction,
customers and to explore other possibilities to and operation of a smaller capacity WTP in
further expand and improve its productivity and the country. This core competency supports
operational performance. When economies of scale
BWSI’s mission to explore and continually
can be realized it allows for water prices to become
more affordable. Also, BWSI’s main fundamental invest in more infrastructure and services
thrust is to achieve the much desired and coveted for the communities that it serves.
consumer satisfaction since the business
completely and totally depends on its customers,
who provide the revenues so the company can
invest in better technologies to improve its

v
P.1a(3) Workforce Profile Meanwhile, the key drivers that engage BWSI
Eighty-five (85) percent of BWSI’s workforce is in employees include the various events hosted by the
the Revenue Center (RC). These are the company and the different employee recognition
administrative (Customer Service Associate and rewards programs as outlined in 5.2a(2).
[CSA], Teller, Biller, Branch Asset Inventory
Custodian [BAIC]) and operational (Plumber, There are no special health and safety requirements
Meter Reader, Pump Operator) personnel manning for the company. However, BWSI ensures full
the 82 branches of the company nationwide. compliance with the Department of Labor and
Employment (DOLE) Occupational Safety and
The remaining 15 percent of the company’s Health (OSH) requirements.
workforce assigned to the Support Services Center
(SSC), Engineering Services Center (ESC), and P.1a(4) Assets
Finance and Accounting Center (FAC) supports the Fig. P.1-2 lists BWSI’s major facilities, equipment,
RC in achieving its three main objectives: (1) technologies, and functions.
provide excellent service to customers; (2) operate
Fig. P.1-2 Major Facilities, Technology, Equipment, and Their
the water system efficiently and effectively; and (3) Functions
generate revenue for the company.
Since BWSI is gradually shifting to surface water TECHNOLOGY /
NO FACILITY FUNCTION
EQUIPMENT
sources and is continuously searching for 1 Deep Well Pumps and Motors
alternative water sources, it has focused on Pumping Motor Control
Stations Center
strengthening its water sourcing and treatment Disinfection
capability over the past five years by hiring new 2 Water Pumps and Motors
Treatment Motor Control
highly-technical positions such as chemical Plants Center
Conventional Water
engineers, WTP operators and managers, and Treatment Process
project and construction managers. Coagulation
Water
3 Rainwater Flocculation
Clarification Treatment and
Figure P.1-1 presents the profile of BWSI’s Harvesting
Facility Multimedia Filtration Production
workforce in each center in terms of educational Disinfection

attainment, tenure, age, gender, and rank. 4 Water Filtration Multimedia Filtration
System (WFS) Disinfection
Fig. P.1-1 Employee Group Segments based on Educational
5 Water Softener Ion Exchange
Attainment, Tenure, Age, Gender, and Rank
System
Center 6 Sand Separator Hydrocyclone and
Separation
Factor Reve- Eng'g Support Finance
nue Services Services & Acctg
7 Generator Set Internal Combustion Alternative
% of 1085 Total EEs 85% 3% 6% 6% Engine Power Supply
Source
Elementary 21 0 0 0
Educa- High School 342 1 3 0 8 Pipelines / Inline boosters Water
tional Voc / Assoc 175 1 7 1 Water Hydraulic Simulation Distribution
Attainment College 386 28 50 61 Distribution Software
Network
Graduate 3 0 4 2
0-5 496 23 39 36 9 Water Tanks Water Storage
6-10 191 5 14 11
11-15 131 2 8 10 10 Branch Office Elite System Customer
Tenure 16-20 76 0 2 6 Meter Reading Servicing
21-25 26 0 1 1 System Billing
26-30 6 0 0 0 Payment
Collection
31 above 1 0 0 0
Plumbing
18-24 49 1 5 7 Service
25-40 525 25 38 30
Age 11 Warehouses ERP System Storage of
41-55 302 3 18 23
56-75 51 1 3 4 Inventory
Male 690 26 35 15
Gender 12 Head Offices ERP System Administrative
Female 237 4 29 49 HRIS
Rank & File 724 2 25 4 LMS
Supervisor 138 18 24 46 DMS
Rank
Manager 62 9 12 12
Executive 3 1 3 2

vi
P.1a(5) Regulatory Environment Figure P.1-4 BWSI Organizational Chart (Macro-Perspective)

The following are the applicable and relevant

statutory and regulatory requirements that BWSI
strictly complies with in its operations.

Figure P.1-3 List of Statutory and Regulatory Requirements

NO. REGULATORY REQUIREMENTS

AO 2017-0010 Philippine National Standards for Drinking
1
Water
2 R.A. 9275 Philippine Clean Water Act of 2004
3 P.D. 856 Sanitation Code of the Philippines
4 R.A. 7920 New Electrical Engineering Law
5 R.A. 10912 National Building Code of the Philippines 2018
6 R.A. 9514 Fire Code of the Philippines
R.A. 11058 Occupational Safety and Health Standards Act
7
of 2018
8 DOLE Rule 1020 Registration of Establishment
P.D. 1586 Establishing an Environmental Impact Statement
9
System
NWRB Resolution No. 14-0921 Standard Rules and
10 Regulations in the Operations of Waterworks Systems as
Revised 2021
National Internal Revenue Code of 1997 (as amended by
11 R.A. 10963, R.A. 11256, R.A. 11346, R.A. 11467, and R.A.
11534)
Filing of GIS and Audited Financial Statements Annually to
12
SEC P.1b(2) Customers and Stakeholders
13 Payment of Local and Provincial Taxes
14 Securing Mayor’s Business Permits Considered by the National Water Resources
Board (NWRB) as one of the most efficiently-
P.1b Organizational Relationships managed private water utility companies in the
For purposes of administration, BWSI has an Philippines, BWSI maintains operations in 22
organizational system that outlines how the provinces nationwide. Of the 82 branches, 88
operational activities of the company are executed percent of customers are in Luzon, 7 percent in
in order to achieve its goals and objectives. The Visayas, and 5 percent in Mindanao. Fig. P.1-5
rules, roles, and responsibilities of the different describes how BWSI classifies its customers and
component units are defined to achieve streamlined their key requirements and expectations from the
operations. The organizational structure also services being provided.
determines how information flows from and
between levels within the company. BWSI considers the following as its stakeholders:
Customers; Regulators; Shareholders/Owners;
P.1.b(1) Organizational Structure Employees, Suppliers and Contractors, and the
BWSI’s Board of Directors (BOD) determines the Community.
company’s overall strategic plan, directions, and
objectives. Internal and External Auditors ensure P.1b(3) Suppliers, Partners, and Collaborators
BWSI’s compliance with both statutory and
regulatory requirements and the internal control set All listed partners in Fig. P.1-6 play a vital role in
by the company. contributing to and implementing innovations in
BWSI. Suppliers introduce emerging trends in the
As illustrated by Fig. P.1-4, from a macro industry by offering new and innovative products
perspective, BWSI is divided into four (4) centers: or materials that can be used by the BWSI in its
(1) RC; (2) ESC; (3) SSC; and (4) FAC. Each current and new services. Contractors and Software
center has Vice-Presidents who oversee their Developers provide specialized expertise and
operations and report to the President. knowledge in areas such as construction,
engineering, and software development. Lastly,
consultants provide strategic advice and guidance
to BWSI in identifying new business opportunities
and developing strategies for implementing
innovative ideas.

vii
Figure P.1-5 List of Customer Segments and their Key Requirements

CUSTOMER GUARANTY MINIMUM % VS. TOTAL KEY CUSTOMER

DESCRIPTION
CLASSIFICATION DEPOSIT CONSUMPTION CUSTOMER REQUIREMENTS
applications for owned
homes or leased units or
Residential Php 1,500 5 or 10 cu.m. 96.55%
properties where
customers live
from Php • Water available 24 hours a day / 7
accounts with clear signs from 10 cu.m. to
Commercial 1,500 to Php 3.08% days a week
of economic activity 25 cu.m.
5,000 • Water pressure of at least 16 PSI
any business or factory • Water quality that passes PNSDW
Industrial that uses water to produce Php 5,000 25 cu.m. 0.06% • Affordable water service
their products • Excellent Customer Service
government offices and
buildings (national or local)
Government Php 1,500 10 cu.m. 0.22%
including public schools Additional Key Requirement of Bulk
and fire stations Water Accounts:
free for the first
Religious religious places of worship Php 500 0.09% • Minimum volume and pressure
10 cu.m.
high-volume accounts requirement as stated on the
connected with an contract
injection point containing a
Bulk Water Varies Varies 0.001%
flow meter. These
accounts have special
contracts.

Figure P.1-6 List of Suppliers and Partners and Their Roles in is dominated by the two giant water service
BWSI Operations
providers of the country’s capital region –
KEY TYPE OF SUPPLIER / ROLE IN BWSI OPERATIONS
PARTNER / IN ENHANCING
Maynilad Water Services, Inc. and Manila Water
COLLABORATOR COMPETITIVENESS Company Inc.
PVC Pipe Manufacturers Suppliers support BWSI’s
Electro-mechanical Suppliers operations by providing quality Figure P.2-1 2020 Comparative Data of BWSI vs. Competitors
materials & components in order
Chemical Suppliers
to deliver excellent service to its
Plumbing Materials and customers. They are business
Trading Suppliers Gross Net
partners that could deliver cost Water Service Assets Billed
Revenue Income (in Billion
Foundry savings opportunities for BWSI. Provider (in Billion (in Million Customers
PhP)
Contractors provide the labor PhP) PhP)
service and valuable technical
expertise to ensure projects are Maynilad Water
25.66 4,560 156.8 9.7 million
Contractors completed within budget, Services, Inc.
contract period, and compliant Manila Water
24.48 4,950 131.2 6.8 million
with set company/industry Company, Inc.
standards. PrimeWater
2.05 146 16.1 321,590
Software Developers support Infrastructure Corp.
BWSI's goal of transformative Balibago
Software Waterworks 1.77 291 3.2 244,164
digitalization thru the
Vendors/Developers System, Inc.
introduction and implementation
of appropriate software.
Consultants provide valuable Meanwhile, BWSI’s main and direct competitor
Consultants expertise and guidance to BWSI would be PrimeWater Infrastructure Corp.
on how it can further improve its
processes and services. considering the similarities in their business
structure and models, the proximity of their areas
BWSI’s key supply-network requirements include of operations, and the market segments they serve
quality products and services, reliable and timely – highly urbanized areas outside Metro Manila.
delivery, transparent and effective communication,
and flexibility. P.2a(2) Competitive Changes
These key changes are affecting BWSI’s
P.2. Organizational Environment competitive environment. Some of these
P.2a Competitive Environment developments open new business opportunities for
BWSI, but some pose threats to its and other water
P.2a(1) Competitive Position utility companies’ operations.
BWSI is considered one of the top 4 water service
providers in the Philippines in terms of 2020 Gross • Increased and more intense competition;
Revenue, Net Income, Asset Base, and Number of • Continuing population growth and
Billed Customers Data. The water service industry migration from rural to urbanized towns;
viii
 • Increased funding opportunities (e.g. Figure P.2-3 BWSI’s Strategic Challenges

“Sagana at Ligtas na Tubig para sa Lahat” NO. STRATEGIC CHALLENGES

Increasing competition due to the landmark Supreme Court
[SALINTUBIG] financing and Public- ruling on Metropolitan Cebu Water District (MCWD) vs.
1
Private Partnership [PPP]); Adala and businessmen from other industries are now all
interested in the water sector;
• “Build, Better, More Program” of the Climate change and urbanization causing the lowering of
2 underground water tables, compounding the investment
present administration; costs to source water and treat bad-quality water;
• Stronger internet connectivity across the 3
Force majeure situations create challenges in obtaining
water for established franchises;
country, digitalization, and social media 4 Easy target for politics and smear campaigns;
savviness; and 5
Fragmented regulation of the water industry may change the
business landscape;
• Climate change and water scarcity. 6 Piracy/migration of skilled labor;
7 Difficulty in securing Water Permits;
P.2a(3) Comparative Data 8
Increasing cost of electricity and fuel, no strong alternative
sources for the energy of our pumps;
Published Annual Reports and Audited Financial
9 Increasing cost of debt financing and inflation.
Statements of competitors are the primary sources
of comparative and competitive data. The NWRB’s
P.2c Performance Improvement System
“Listahang Tubig”, a program that aims to
BWSI conducts its annual business planning
establish a comprehensive database of water supply
sessions as early as the 3rd quarter of each year as
systems in the Philippines through annual reporting
discussed in 2.1a(1). During these sessions, the
of water service providers, is also a key source of
Business Plan (BP) of RC, ESC, SSC, and FAC
industry data. Meanwhile, BWSI relies on
identifies necessary capital expenditure (CAPEX)
published government statistics and reports and
projects, investments, and resources for the
other online literature for comparative data outside
upcoming year in line with their strategic plans and
the industry.
business operations. Once the BP is approved, the
Financial Projection (FP) is then structured to
With this, the comparative data collected is limited
simulate revenue and expense projections.
to the amount of data disclosed and reported by
other comparable water service providers. The data from the FP become the target of the
P.2b Strategic Context branch presented monthly through its Comparative
Fig. P.2-2 and Fig. P.2-3 present BWSI’s key Monthly Report (CMR). The performance of each
strategic advantages and challenges respectively. branch is documented and monitored through the
CMR as it provides important information on
Figure P.2-2 BWSI’s Strategic Advantages
whether it is operating smoothly based on
NO. STRATEGIC ADVANTAGES important financial and operational Key
Flexible technical and financial capability, able and willing to Performance Indicators (KPIs).
1
take on projects whether small, medium, or large;
Solid legal framework for the water utility franchise business Every month, all Branch Managers (BMs) attend
2
model, with an extended concession period;
3 Competitive tariff rates;
the scheduled Monthly Managers’ Forums to share
4 Financial stability and strong cash flow; and present their performance. These forums,
5 Visionary and supportive leadership from the Board of which serve as an avenue for performance
Directors and President;
evaluation and improvement of key organizational
6 Skilled and experienced top officers with great work values,
attitude, and teamwork; projects and processes, are presided by the Vice-
7 Attractive benefit packages; Presidents of Operations (VPOs) and the Executive
8 Dedicated to finding technological innovations to improve Manager (EM).
customer experience and internal processes;
9 Career growth opportunities for employees;
One of the biggest, most professional, and oldest water
10
utilities in the Philippines (established in 1958).

ix
CATEGORY 1 – LEADERSHIP
Core Values
1.1 Senior Leadership • Proactive --------------Gilas;
The BWSI Leadership is a firm believer in the • Dynamic --------------Sipag at Tiyaga;
principles of “management by objective”. The • Conscientious ------------- Malasakit, and;
Leadership sets the vision, mission, and goals of • Performance Driven ------Kusa.
the company. To realize a “management by
objective” culture, proper orientation and training Our Promise (LSC)
are cascaded to the entire organization. Effective • Water availability 24 hours a day, 7 days a
parameters and policies have to be established to week;
guide managers in decision-making. Therefore, • Water pressure of at least 16 PSI during
decisions are being devolved down to the peak hours;
managers’ level, in many instances. Former • Water quality that passes the PNSDW.
President (from 1998 to 2022) of BWSI, Mr.
Cristino L. Panlilio, who currently serves as the Figure 1.1-1 Execution of Mission Statements
Chairman of the Board (since June 2023), has
Mission Statement Execution / Promotion
prepared three major training modules to achieve
the above purpose, i.e., “MOP SIR D’H20”; “The To maintain an Efficient – the financial KPIs and KRAs
efficient and of the branches are constantly monitored
16 Steps to Getting Promoted Quickly”, and; extensive water and aligned with Philippine and World
“BWSI Tools of Management to Enable and system in our Standards. Expansion of franchise
Sustain Good Governance”. Subsidiary to these, franchise areas. areas is planned and prioritized.

other training modules have been likewise To provide high- Monthly bacteriological testing and bi-
designed to further enhance the capabilities of quality water to our annual physical-chemical testing.
consumers.
middle-level branch managers, i.e., the “BM
Cadetship Program”; the “Leadership Training”; To ensure customer Constant evaluation of customer
satisfaction. satisfaction through our Customer
the “CAPEX Proposal Preparation”, among Validation Audit Team (CVAT) Survey.
others. Everyone is enjoined to generate regular
To apply appropriate Continuous innovation. Installed: (i) Elite
written/verbal updates and feedback. Face-to-face technology to system (customer database and billing
interactions also occur during the monthly Revenue maintain a system), (ii) CodeTech (HRIS), (iii)
Committee (RevCom), formerly called ManCom, competitive Balibago Waterworks University (an
advantage. online learning management system),
Meetings. and; (iv) Interlink Integrated System (the
accounting, purchasing and warehouse
software system).
1.1a Vision, Values, and Mission
To explore and Starting to initiate our social corporate
1.1a(1) Vision and Values continually invest in social responsibility projects, i.e.,
more infrastructure Donating a Toy Library in Laurel,
Vision and services to the Batangas and Passi City, Iloilo;
To promote growth and development in communities that we Contributing to the People’s Park Project
serve. of the Apalit, Pampanga LGU and;
communities by providing quality basic services. Becoming a sponsor for the ARAW-ACI
Adopt-a-Watershed Program.
Mission To expand our Continuous acquisition of new branches
• To maintain an efficient and extensive franchises and and opening new collateral businesses.
water system in our franchise areas; provide basic
services to
• To provide high-quality water and ensure previously unserved
customer satisfaction; areas.

• To apply appropriate technology to To pursue mutually We hold high the needs and welfare of
maintain a competitive advantage; beneficial our stakeholders Therefore as far as:
relationships with
• To explore and continually invest in more our stakeholders. Employees – we provide competitive
infrastructure and services to the compensation and benefit packages;

communities that we serve; Suppliers and Contractors – We

• To expand our franchises and provide basic ensure that we pay our suppliers and
contractors on time;
services to previously unserved areas; and
• To pursue mutually beneficial relationships Regulators – We ensure strict
compliance;
with our stakeholders.
1
 Locality – We cooperate and Supervisor of the Year Award, Employee of the
collaborate with Local Government Units
(LGUs). We participate in local events. Year Award, Accountant of the Year Award,
Engineer of the Year Award and most recently it
launched the CLP Leadership Award.
The current vision, mission, and values of the
organization were crafted using a top-down
Figure 1.1-2 BWSI Rewards and Incentive Programs
approach wherein the BOD, the former President
Panlilio, and the current President (since June Entitled Rationale for Description of Reward
Employees Reward
2022), Ms. Cristina Isabelle P. Alejandro, came
together in 2011 and were subsequently presented All employees Profit Share / A cash reward is given to an
to the management and employees as the basis for Performance employee for good
Bonus performance.
the eventual formulation of the company’s
Strategic Plan. Having been guided by this vision All employees Acquisition of A cash reward of PhP
new franchises 30,000 is given when an
and mission for the past 12 years, the current employee is able to secure a
President Alejandro has organized another new franchise.
Strategic Thinking exercise but this time taking a Pollution Acquisition of A cash reward between PhP
bottom-up approach and involving the supervisor Control approved 5,000 to PhP15,000.
and management base in crafting and proposing the Officers Environmental
Compliance
new vision-mission and strategic plan for the next Certificate
5 to 10 years. The results of this exercise will then (ECC)
be presented to the BOD for approval this coming Branch Land purchase A cash reward for being able
June 2023. Managers to negotiate land purchase.

All employees Initiating an A cash reward for proposing

1.1a(2) Promoting Legal and Ethical Behavior innovation and implementing an
innovation that generates
The Senior Leadership (SL) Team (composed of higher performance for the
the President, Vice-Presidents, and Assistant Vice- customers.
Presidents) of the organization defines “Integrity”
Long-serving Loyalty Award A cash reward is equivalent
as the practice of being honest and showing a employees to an employee’s length of
consistent and uncompromising adherence to stay in the company.
strong moral and ethical principles and standards. Deserving CLP A cash reward is given to
This is emphasized to the entire organization, and; employees Leadership the chosen employees who
Award possess leadership,
all are expected to stand by and live with this value excellence, and integrity.
standard including those who occupy top
leadership positions. The SL should consistently
‘lead by example’; demonstrating that no one is 1.1a(3) Creating a Successful Organization
exempt from the ethical standards thus established. Former President Panlilio envisioned BWSI to
become a company that is “Built to Last” following
All transactions must always be honest and the famous book written by Jim Collins and Jerry
transparent. All must conduct their business and Porras. The basic determinants of success for
responsibilities with the highest degree of BWSI as a “Built to Last” company are the
professionalism. And the SL and the employees following but not limited to: (1) strict
must always be aware of where the boundaries of documentation of policies, procedures, and
ethical and non-ethical behavior lie. That line must standards; (2) priority in the hiring of internally-
never be crossed. A Code of Conduct found in the sourced candidates (This practice strengthens
BWSI Employee Handbook has been adopted and loyalty and fidelity to the company.); (3) the
violations thereof are penalized. Due process shall working environment and culture in the company
always be extended. must be conducive to the achievement of growth
goals (Teamwork is essential.); and (4) SL must
On a positive note, the SL has on the other hand be prepared to take on Big Hairy Audacious Goals
adopted rewards and incentive programs for (BHAGs). This means that the company must be
employees who possess the characteristics it ready to take on calculated risks and must
values. Previously, it launched the Proactive, continually innovate to remain competitive.
Dynamic, Conscientious, Performance-Driven
(PDCP) Awards, after that, it initiated the
2
BWSI is yearly expanding its franchise areas and As far as customers are concerned, the two-way
these must be secured over the very long term by a communication modality is also being continually
Succession Program aimed at achieving the adopted and this shall be thoroughly explained
continuum for expanded progress. For instance, when the Category of Customers is finally
current President Alejandro went through a discussed. Please refer to the full discussion in
rigorous Succession Training Protocol before Category 3 of this document.
being elected as the new President of BWSI to
ensure, as said, sustainability and stability over the 1.1b(2) Focus on Action
long term. Succession planning is not only for the The Leadership of the company focuses on two (2)
top post but also for other key positions in the main events to communicate with employees: (i)
company such as the Vice-President for the first level of communication is to the middle
Operations, Vice-President for Engineering, Area and upper management during the annual Jump
Managers, and other critical and unique Start Seminar (held every December). Thereafter,
competencies such as the Government Licensing the strategy/theme is cascaded to the middle and
Managers. upper management, it is reinforced again during
the, (ii) annual Town Hall meeting (held every
1.1b Communication and Organizational January). In addition to this, during occasions when
Performance all can be together, programs and fun games are
held to instill the virtue of family oneness and
1.1b(1) Communication solidary as this has been found to be very effective
The BWSI Leadership of former President Panlilio in fostering teamwork, commitment, and
and current President Alejandro have long participation in all work activities.
promoted a psychologically safe working
environment that allows employees to In reference to Action Plans, it was noted that
communicate freely and honestly without fear or ongoing short-term planning initiatives are carried
favor. The SL is always available to all employees out to make sure that the directives outlined by the
via text messages, calls, and emails. Formal written Strategic Plan are implemented. The Leadership
communications are certainly preferred for must therefore designate accountable officers from
documentation purpose/s. Orders or within its ranks to ensure that the short-term plans'
Memorandums from the SL are always in writing. goals and objectives are appropriately geared
When making reports, requests, and appeals, the toward their fulfillment, just as it is with regard to
employees are highly encouraged likewise to also the strategic long-term goals and targets.
put these matters in writing.
The Leadership has a specific formula to improve
Figure 1.1-3 General Policies on Customer Care and Complaints performance. The formula is as follows:
Resolution
a. Identify the metric that needs
improvement;
b. Create a policy outlining the objectives,
the means by which personnel can attain
them, the program's timetable, the
evaluation standards, and the benefits of
achieving the objectives. Give the
evaluation standards;
c. Evaluate the submissions and identify the
winners; and
d. Organize a big event to announce winners
of the programs and give rewards.

The Area Managers (AMs) are tasked to ensure that

the rules of the program are followed. They
provide support to everyone to help them achieve
their goals. It must be emphasized that these

3
activities are not about competing against each with creating a clear succession plan for the most
other but rather improving overall performance. important position.

1.2 Governance and Societal Responsibilities The SL provides the present and future direction of
the company; hence they are strictly accountable
1.2a Organizational Governance for their actions given the trust and confidence that
1.2a(1) Governance System have been bestowed on them. An example of this
When former President Panlilio took over trust and confidence in action is the “Check Signing
management from the previous owners of BWSI, and Approving Authority Policy”. The SL has the
he immediately implemented the following: (1) authority to sign checks and approve purchase
adopted proper accounting practices that follow orders, and cash advances, among others. The
Generally Accepted Accounting Principles devolution of approving authority on various
(GAAP) and Philippine Financial Reporting matters allows the President to fully focus on other
Standards (PFRS); (2) created a Systems important concerns of the company.
Department to draft and archive company policies,
operational manuals, procedures, and practices; 1.2a(2) Performance Evaluation
and, (3) established Internal Audit (IA) procedures SLs usually come from middle management. The
to ensure check and balance control. An External annual performance evaluations are conducted in
Auditor was also appointed in compliance with the June of every year. All employees are evaluated
government regulation. The intent was to operate during this period including the SL. The company
a company that would be “built to last.” It was, uses a 360-degree evaluation method wherein an
therefore, important to document all activities to employee is rated by his superior, his colleagues,
learn from past mistakes and follow through with and his subordinates. Performance evaluations are
good and best governance practices, which are shared by the superior to their subordinate for the
usually contained in Audit Reports. subordinate to acknowledge the rating. The
superior then gives the subordinate a coaching
Today, BWSI has over 200 policies, as well as session on the areas where the employee needs to
numerous handbooks, manuals, and memoranda improve.
that have been documented. These policies cover a
variety of topics, including cash handling, financial The performance evaluation results of individual
statement preparation, project implementation, employees are combined with branch/department
relationships with suppliers, contractors, and other ratings plus audit ratings in order to determine the
stakeholders, and employee conduct, among final evaluation score of the employees. This score
others. is used to the determine the amount of salary
The SL allows the officers and employees to run increase the employee receives for the year. The
and operate their respective units and fully computation of salary increase is submitted to the
immerse themselves in all possible areas of Compensation and Benefits Committee of the BOD
operations to ensure that they all know the business for approval before implementation.
of the company. Monthly Managers’ Forums are
conducted so that Managers can share their best 1.2b Legal and Ethical Behavior
practices with all.
1.2b(1) Legal, Regulatory, and Accreditation
In BWSI, the succession process is done through Compliance
training and redundancy. Internal promotion is BWSI, a water utility, is operating in a highly
desired as opposed to filling vacancies by hiring regulated industry. Water rates must be approved
from the outside when vacancies occur. For by both the LGU and the NWRB. The computation
specialized jobs such as in the Engineering Team, of the Water Rates is an integral component of a
the key to succession is redundancy or having two Certificate of Public Convenience (CPC) when
people of the same job title with the same job BWSI applies for the same to the NWRB. The
description. For the most critical position, that of process takes around six months and includes
the President, the Vice Presidents are usually numerous hearings and public consultations. Once
deemed as successors to ensure continuity. To there are no objections, the NWRB releases the
avoid costly misdirection, the President is tasked CPC.

4
BWSI also needs to submit laboratory tests, a Non-Conformance (NC) memo and are subject to
requirement of both Department of Health (DOH) administrative processes by the Human Resources
and NWRB, confirming the potability of our water. Department (HRD).
A bacteriological testing is required to be
submitted on a monthly basis and a physical- The Risk Management Matrix (RMM) is reviewed
chemical test is required twice a year. Moreover, annually whenever the company prepares for its
the Department of Environment and Natural ISO 9001 audit. The RMM is updated if there are
Resources (DENR) requires the company to submit new risks and items that have been de-risked are
the Environmental Compliance Certificate (ECC) removed.
for all new projects so BWSI is actively complying
with this. 1.2b(2) Ethical Behavior
First of all, the SL models ethical behavior by
In instances when the rate increase requested by subjecting themselves to the same policies being
BWSI is rejected by customers and local officials applied to all employees. They “lead by example”.
or when water services fall short of expectations SL files leaves of absence; strictly adheres to
hence complaints are made, it looks for engineering policies that also apply to all employees;
interventions to address the same even if such will meticulously works with the approved budgets and
require new investments from us. To ensure the prudently manages and disburses financial
sustainability of its water supply, it supports, resources; liquidates cash advances; and, works
adopts, and implements watershed management, within the limits of official allowances, among
particularly in the Abacan-River and Angeles others. Nobody is exempted from the rules and
Watershed by adopting 10 hectares there. It is also regulations. For the employees, ethical behavior is
in the process of determining how it can be more expected from them as soon as onboarding
aggressive in water conservation efforts. commences. They are provided extensive general
orientation on matters pertaining to company
Problems that arise as a result of the processing and policies and procedures; culture and values and
delivery of water must be attended to without delay instill professionalism from the very onset. The
– even in the absence of regulations, since as company’s HRD is empowered to handle
mentioned, the safety and health of the public are administrative cases such that when violations of
at stake. Problems could arise in the extraction, rules and regulations happen, immediate sanctions
treatment, and delivery of water to the doorsteps of are imposed to show to everyone that breaches of
its customers. These areas of concern are strictly ethical behavior, for instance, will never be
monitored by the Engineering Services Center allowed and/or tolerated. The IA Team has been
(ESC) of BWSI so that any slip-ups happening also playing a crucial role in seeing to it that all
must be immediately attended to and rectified. transactions undertaken likewise with contractors,
suppliers, and customers are legal and legitimate
Finally, the breakdown of equipment is constantly which would be advantageous not only to BWSI
monitored even by the SL of the company since but to all stakeholders.
failure to do so will certainly impede and/or disrupt
the efficient delivery of water to its customers thus 1.2c Societal Responsibilities
frustrating the promise of BWSI to provide clean
and potable water to its customers on a 24-hour 1.2c(1) Societal Well-Being
basis. It is therefore also important that the SL BWSI’s business as a water utility is a natural
likewise establishes the necessary protocols with contribution to societal well-being. As cliché as it
its suppliers to keep the supply chain line always sounds, “water is life”. Its greatest role for the
open to ensure that spare parts are likewise always community is to provide effective and efficient
available at any given time. water service which is quantified in its LSC. All
employees memorize and know by heart BWSI’s
1.2b(1) Legal, Regulatory, and Accreditation LSC.
Specific employees across the organization are
assigned the responsibility of complying with the Aside from this, communities benefit from having
various regulatory requirements. Employees who a professional water system provider because when
fail or are negligent to respond to such are given a there is such an institution or entity operating in a

5
particular jurisdiction, other investors can be easily In carrying out the structuring of the annual BP, FP,
attracted to make or undertake crucial investments and target setting, the company’s officers employ
thereat. In short, a company like BWSI can trigger the SMART guide.
economic growth in the community in this rather
indirect way. Figure 2.1-1 SMART Goal-Setting

S Specific
1.2c(2) Community Support M Measurable
BWSI is highly supportive of the communities it
serves through partnerships with the local A Attainable

government. It often sponsors local events such as R Resource-Based

barangay sports intramurals, tree-planting or river- T Time-Bound
clean ups, among others. Each LGU has its own
priorities and needs and BWSI supports them in the
areas where they would need its help and The SMART guide ensures that the budgets and
assistance. The company’s support is also key targets set through the BP and FP sessions are
during emergency situations. For instance, when it specific, measurable, attainable, resource-based,
comes to fire, it has an active memorandum of and time-bound. These planning guidelines ensure
agreement (MOA) with the local Bureau of Fire that the budgets and targets, if approved, are
Protection (BFP) wherein it gives free water to put feasible and can be realized. Efficiently allocating
out fires. When there are natural calamities, BWSI appropriate resources where and when they are
supports evacuation centers by sending trucked needed, serves as a propellant that enables the
water, donations of bottled water or, sends goods in company to attain its key strategic objectives,
kind such as food, toiletries, and the like. which are primarily geared toward its stakeholders,
customers, financial performance, learning and
CATEGORY 2 – STRATEGY growth, and its internal processes.
For the branches, the BP and FP session is carried
2.1 Strategy Development through a four (4) stage process as highlighted in
2.1a Strategy Development Process Figure 2.1-2. Stage 1 is composed of the following
analysis: Demand Forecast, KPI Performance, and
2.1a(1) Strategy Planning Process Network Map Assessment. The Demand Forecast
The strategic planning process of the company is analysis factors in the current supply capacity of a
primarily undertaken via year-end Business branch based on the production volume of its water
Planning (BP) and Financial Planning (FP) supply sources, the existing service area/piped
sessions. The BP of the RC, ESC, SSC, and FAC network and customer base, population growth
identify the key CAPEX projects, investments, and rates, unserved areas of the franchise, and the
resources, required by these units in line with their current water demand situation of the respective
strategic plans and business operations for the franchise. The benchmark of the company is to
coming year. The FP of the same units are enable a total supply capacity that can cover 150
structured in order to simulate Revenue and percent of the total demand in a particular franchise
Expense projections based on the proposed BPs. area. This would mean that the company will have
a “buffer” supply capacity that is sufficient to
These planning sessions are initiated as early as the address and cater to an increase in demand of up to
3rd Quarter (Q3) of each year in order to allow 50 percent. This benchmark sets the bar for
sufficient time for BMs and department heads to management to pass judgement on the allocation of
gather critical data that are prerequisites to the funding for the development of additional water
yearend BPs and FPs. Data pertaining to KPIs are supply sources that will address the existence of
key components of the BP and FP. The BP and FP demand and supply gaps identified through the
sessions require the involvement and input of the Demand Forecast, and ensure that all franchises
BMs, Department Heads, the Finance and have sufficient water supply capacity to cater to
Accounting Division, the Engineering Team, and current and future demand. A sample of the
the SL. Demand Forecast template is attached herewith as
Annex 2.1-1.

6
An in-depth analysis of the KPIs of each franchise The location of water supply sources, reservoirs,
is then carried out as a tool by which management critical areas, and the pipe distribution system of
decides what kind of CAPEX projects to program each franchise is documented through a Network
for each franchise. The KPI performance of each Map. These maps allow management a clear
franchise is documented and tracked through the picture of the infrastructure layout of all franchises.
CMR. The CMR is a very efficient KPI dashboard A sample of a Network Map is attached herewith
and tool used by management to ascertain business as Annex 2.1-3.
performance through measurable benchmarks and
reference points. A sample of the CMR is attached The different reports, measures, and analyses that
herewith as Annex 2.1-2. make up Stage 1 are crucial for organizing the
annual BP effectively. They facilitate informed
A critical section of the CMR focuses on the LSC decision-making regarding the specific investment
performance scorecard of a franchise. The three resources needed by each franchise. A
components of the scorecard are as follows: Water comprehensive understanding of the current state
Availability; Water Pressure; and Water Quality. of business of each franchise is a prerequisite for
The LSC scorecard is the report card of the SL to make founded, calculated, and strategic
organization on whether it has achieved its promise decisions that are geared towards enhancing and
to the customers (the LSC). It is a measure of optimizing the efficiency of the water supply and
company performance that helps ensure that the distribution service of each franchise.
company delivers the world-class water utility
service it has committed to its customers and Stage 2 of Figure 2.1-2 focuses on the preparation
stakeholders, as the company enshrines service of the annual BP and FP. Though the said template
quality at its core. is most relevant for branches, the Support
Departments utilize the same template as they
Figure 2.1-2 Annual Business and Financial Planning Process for structure their annual project and resource
Branches requirements. A copy of the Business Plan template
is attached herewith as Annex 2.1-4. The first part
of the BP template focuses on the “Operations
Capex” projects being proposed by the respective
franchise or department. The projects under this
section are usually aligned to business expansion,
improvements, and revenue-generation, hence
carrying more substantial funding requirements. A
description of the type of CAPEX project is first
noted (i.e. deep well drilling, pipe laying,
construction of filtration system, reservoirs). Key
project components are noted in the BP, such as:
project cost; expected additional customers;
expected revenue; depreciation data; and expected
date of completion. These are all critical decision
points when it comes to the approval process of the
BP. The second part of the BP template highlights
the “Other Capex” projects. Some examples of
these projects are as follows: office construction;
tools of the trade; furniture; and service vehicles.
The third part of the BP template is called
“Manpower Compliment”. In this section, the
A thorough Network Map Analysis is then carried respective franchise or department highlights the
out in order to analyze and identify inefficiencies, manpower requirement they are proposing for
weak points, and faults in the current design of the budgeting and hiring for the coming year.
water supply and distribution infrastructure of a
franchise. All franchises have detailed Network The FP constitutes the second component of Stage
Maps designed by their Branch Engineers (BEs). 2 of Figure 2.1-2. For the annual FP, the SL sets the

7
assumptions that will guide and ensure that revenue
and expense forecasts are realistic and are based on The short-term planning process highlighted in
current relevant market conditions that affect the Figure 2.1-2 addresses the short-term strategic
business. Assumptions such as the escalation rate needs of the company. This short-term strategic
on power costs, the percentage increase on salaries development process ensures that the company is
and benefits, depreciation period adjustments, able to sustain its glide path toward continuous
taxes, and tariffs, market basing of interest rates, growth and business integrity. Hence this strategic
and water tariff adjustments are some major development process is conducted periodically, on
assumptions that are set and put into play by an annual basis.
management.
A Medium-Term Strategic Development Plan is
The managers and department heads, jointly with carried out by the company every five (5) years.
the Finance and Accounting Center (FAC), then The five-year strategic plan of the company is
carry out and undertake the structuring of their carried out by a committee constituted by the SL.
respective FPs, after critical assumptions and Macroeconomic conditions, the state of the
parameters are set by management. The Income industry, the political landscape, competitor
Statement (IS) for the forthcoming year is then
comparisons, the competitive advantages of the
projected. Major IS components and profit margin
company, broad-stroke financial forecasting, S-
indicators are then set as the basis of critical
strategic analysis. As a reference, a sample of an curve status, top management profiling, and
FP template is attached herewith as Annex 2.1-5. succession planning, are some of the critical issues
Stage 3 of Figure 2.1-2 then focuses on the covered by the committee in the medium-term
presentation of the annual BP and FP of all strategic review. This process culminates with a
branches and departments to management for SWOT analysis, a sample of which is referenced in
strategic assessment and approval. During this Figure 2.1-3.
stage, the BMs, AMs, and Department Heads,
together with their respective accountants and
engineers, present and defend their BP and FP to Strategic planning on a longer-term time horizon is
the SL. At this stage, the SL may approve the now undertaken through a bottom-up approach. As
proposed BP and FB, or require the presenting unit stated in 1.1a(1), the last high-level vision-mission
to revise or improve their BP and FB further. formulation seminar was held last 2011 wherein
the current vision, mission, and core values of the
Stage 4 of Figure 2.1-2 then tackles the company were crafted and approved through the
presentation and approval of the annual budget by participation of the officers and the SL before
the BOD. In Stage 4, the SL presents the financial presentation to the BOD.
projections for the coming year, focusing on the
proposed budgets for key financial parameters; The comprehensive strategic planning process of
Revenue, Net Income, Gross Profit Margin, Net BWSI, highlighted in 2.1a(1), opens the door to the
Profit Margin, Billed Customers, for consideration realm of innovation, wherein the SL identifies
and final approval by the BOD. areas of the business where new technologies,
programs, process flows, designs, learning and
In line with Stage 4, the SL also presents a development programs, policies, and manpower
consolidated summary of the proposed BP for the resource, are necessitated. The allocation of the
coming year. The said BP shall highlight the right resources to fuel innovation enables
CAPEX summary of projects, the related financial management to mobilize the appropriate projects
resources (budget) required for the proposed that will optimize the company’s strengths and
projects, and the number of projects for every strategic advantages, as well as hedge its risks and
project description/project type. The efficiency weaknesses.
and effectiveness by which CAPEX programs are
implemented throughout the coming year shall
serve as a major factor as to whether management
is able to successfully achieve its proposed
financial projections and targets.
8
Figure 2.1-3 SWOT Analysis Figure 2.1-4 List of Innovation Projects

One of the biggest and most well-established private NO. INNOVATION PROJECTS
water utilities in the Philippines (established in
1958). 1 BWSI Billing System (Elite) (In-House Design)

Flexible technical and financial capability. Has the 2 BWSI Accounting and Supply Chain System (IIS)
capacity to take on major water utility projects.
3 BWSI Learning Management System (BW University)
Solid legal framework for the water utility franchise
business model. 4 BWSI Online Payment Platform (Bayad Center)

An extensive number of operational water utility 5 HR Information and Payroll System (CodeTech HRIS)

S franchises across the Philippines.

A consolidated customer base of more than 300,000

concessionaires (Residential, Commercial, and
Industrial).
6

7
Design/Development of a 1.5 MLD WTP (In-House Design)

Design/Development of Multi-Media Filtration Systems (In-

House Design)

8 ISO9001:2015 Certification from 2018 to 2023

Competitive water tariffs.
Renewable Energy Alternatives (Solar Energy
Financially stable with a strong cashflow position.
9 Technologies)
Disciplined management and supervision of
10 Hydraulic Simulation Program (WATERGEMS)
operations.

Lean and mean / multi-tasking philosophy.

Needs to adopt new technology and systems that 2.1a (3) Strategy Considerations
can enhance process and cost efficiency.
The strategy process flow of BWSI is deliberately
Needs to improve marketing framework and brand comprehensive as noted in Section 2.1a(1).
recall.

W Needs to establish lobbying power at the National

Government Level.

Needs automated processes that will improve control

measures.
All the short, medium, and long-term strategic
development plans that are designed and executed
by the company are geared towards the vision and
mission of BWSI, while being guided by the
Needs to enhance expertise in sewage and company’s core values. But due to the ever-
sanitation business models.
changing landscape of the industry, the company,
There are still a lot of municipalities with no existing
its BOD, and SL need to review and carry out
institutionalized water systems and/or there are periodic vision-mission formulation seminars
water systems but they are poorly managed by the every ten (10) years or so. The SWOT Analysis and
LGU or Water District.
the stakeholder assessment carried out by the
Due to the extensive networks of franchises across company enable the identification of strategic
the country, there are opportunities for BWSI to
diversify into other businesses. advantages and challenges. This then allows the
efficient distribution of the right resources, as noted

O Opportunities in the Private Sector: Private

Subdivisions and Estates, Industrial Zones, and
Commercial Establishments.

The sustained pace of population growth leads to

in Section 2.1a(1) and Section 2.1a(2), intended to
optimize strategic advantages, or address and
mitigate strategic challenges.
continuous growth in demand for potable water
supply services. 2.1a (4) Work Systems and Core Competencies
International expansion and business opportunities. The key work systems of BWSI are focused on: (1)
strategic business planning; (2) the efficient
Deregulation of franchises allows BWSI to enter
poorly served areas and expand our market reach. extraction, treatment, and distribution of potable
water supply; and (3) the effective management of
Increasing competition (industry saturation) due to business operations based on company KPIs.
the Supreme Court ruling on MCWD vs. Adala.
Strategic business planning, as noted above in
Depletion and deterioration of water sources due to Figure 2.1-1, identifies key CAPEX projects. The

T climate change and urbanization.

Occurrence of force majeure events.

Political threats.
timely implementation and commissioning of key
projects and investments directly support the LSC
of BWSI. The SL puts a lot of weight on closely
monitoring the LSCs and KPIs of the company.
Piracy and migration of skilled manpower.
This is done through regular monthly Managers’
9
forums wherein the CMR and financial statements CAPEX projects, are carried out by the Supply
of each franchise are analyzed by management. Chain Management (SCM) Department.
These key work systems are all covered in the Purchasing and inventory management are sourced
strategy development process of the company as and supported by external suppliers that are
noted in Section 2.1a(1). accredited by the SCM Department through the
Quality Assurance and Supplier Assessment
Key processes undertaken by the company, such as procedures of BWSI.
the implementation of CAPEX projects and
investments, are awarded to select accredited 2.1b. Strategic Objectives
contractors with proven track records in order to
ensure the quality and timely completion of 2.1b(1). Key Strategic Objectives
strategic CAPEX projects programmed in the BPs The Key Strategic Objectives and the most
of all the company’s franchises and departments. important goals of BWSI are listed in Fig. 2.1-5
Other key processes, such as the Strategic with their corresponding specific short-term and
Procurement of the materials and equipment long-term actions.
necessary to support business operations and

Figure 2.1-5 Key Strategic Objectives with Short- and Long-Term Actions

2.1b(2). Strategic Objective Considerations

The Strategic Objectives and Goals are a direct amongst varying and potentially competing
outcome of the Strategy Development Process of organizational needs.
the company as discussed and referenced in
Section 2.1a(1). These objectives and goals are 2.2 Strategy Implementation
geared towards addressing and resolving specific
strategic challenges or risks identified by 2.2a Action Plan Development and Deployment
management, through Short-Term and Long-Term
actions, projects, and investments as noted in 2.2a(1). Action Plans
Figure 2.1-5. These objectives and goals are Short-Term and Long-Term action plans are
deemed critical to the future success and growth of developed and are a result of the complete Strategy
the company, hence are prioritized by the SL Development Process of the company explained in
10
Section 2.1a. Short-term plans are focused on the equity and debt funding of projects (70:30 Debt
CAPEX projects and investments identified by the Equity Ratio).
branches, departments, and SL during the annual
BP and FP sessions. Figure 2.2-1 CAPEX Project Approval Limits

APPROVING AUTHORITY AMOUNT OF CAPEX

2.2a(2). Action Plan Implementation VP for Operations up to Php 3,000,000
The efficiency by which projects and investments President up to Php 10,000,000
are turned into reality in accordance with their
Board of Directors Php 10,000,001 above
programmed assumptions and time horizons shall
determine the degree of their impact and value in
attaining their desired objectives (i.e. business 2.2a(4). Workforce Plans
growth, operational efficiency, profitability, In line with the very fluid and dynamic landscape
internal process improvement, etc.). Successfully of the water utility sector, the SL has set learning
harvesting the benefits from these strategic and growth and employee relations as very
objectives shall enable the company to pursue its important facets the company. The HRD up to the
glide path toward leveraging its competencies and Office of the President puts a lot of weight in
strategic opportunities. Some of the strategic addressing changes in workforce
objectives and goals of BWSI are referenced in capacity/capability by designing and implementing
Figure 2.1-5. targeted training programs. These management
programs are geared towards sustained talent
2.2a(3). Resource Allocation development and upskilling manpower resources.
The SL employs different strategies in allocating The various training and educational programs of
its financial resources to support its BPs and BWSI are carried out by the Training and
strategic objectives. On an annual basis, after Development (T&D) Team of the company, which
finalizing its BPs and FPs for the ensuing year, the is a component of the HRD, or via third-party
company prepares a cash flow projection to subject matter experts. The company has allocated
determine the estimated funding requirements for resources and invested in a brand-new Learning
operational expenditures and capital expenditures. Management System (LMS), the BWU, which has
Project approval and resource allocation are become the primary vehicle by which T&D
governed by the SL, up to the level of the BOD, conducts programs, documents, and stores its
subject to the scale of the project/investment and proprietary materials.
the degree of its associated risk or reward. This is
facilitated through stringent CAPEX analysis and Figure 2.2-2 Learning and Growth Programs

approval procedures of the company. As a rule of NO. LEARNING & GROWTH PROGRAMS
thumb, the BOD has set the following primary 1 Branch Manager Cadetship Program
approval parameters: (1) an Internal Rate of Return 2 Branch Engineer Cadetship Program
(IRR) of not less than 12.00 percent and (2) a
3 Executive Coaching Program
payback period of not more than eight (8) years.
4 Mental Health Awareness Program
5 Water Utility Sector Series
The company strictly adheres to approving limits
set by the President. The said approving limits are 6 Transformative Digitalization Workshop

directly correlated to project size, project

complexity, and project risk. The approving limits
2.2a(5). Performance Measures
are provided in Fig. 2.2-1.
The company utilizes its KPIs as primary
performance measures of the BPs of its branches.
Financial risks are mitigated through meticulous
The attainment of major KPIs as monitored
and disciplined financial management carried out
through regular Monthly Managers’ forums is also
by the company’s FAC, under the leadership of the
carefully scrutinized by the SL through the CMRs
Chief Finance Officer (CFO). Decision points
of all operational franchises. The success or failure
undertaken by the SL or the BOD pertaining to the
of a franchise in achieving its KPIs is directly
allocation of resources are grounded on the overall
related to the proper implementation of the BP. The
FP of the company. In line with financial prudence,
CMRs provide management with a broad picture in
the company maintains a healthy balance between
assessing KPI performance via comparative
11
analysis across month-on-month and year-on-year Fig. 7.5-12: Total No. of Billed Customers
time horizons. Fig. 7.5-13: BWSI’s Production and Consumption Data
Fig. 7.5-14: NRW Comparison, BWSI, Philippines,
2.2a(6). Performance Projections South East Asia
Fig. 7.5-15: NRW, BWSI, and Other Private Utilities
Performance Projections of BWSI based on KPIs
are considered in the medium-term and long-term
The management can evaluate performance
Strategy Planning Processes of the company as
estimates using information from the
noted in 2.1a (1). Data pertaining to Customer-
aforementioned key reference points, and these
Focused Product and Service Results serve as
ratings then serve as the benchmark for BWSI's
major reference points for the SL and the BOD in
overall strategy creation process. The SL uses these
determining the quality of the service the company
critical findings as the foundation for its SWOT
is providing to its concessionaires. Metrics on the
analysis and mission-vision discussions to pinpoint
LSC of BWSI are constant performance
strategic problems, strategic goals, and strategic
benchmarks that serve as a compass through which
opportunities.
management stirs the future success of the
business. Hard data and graphical representations
2.2b Action Plan Modification
of these key result areas are referenced in the
As noted in Section 2.2a(5), performance
following sections below:
measures, action plans, and budgets set during the
annual BP and FP are closely monitored by
Fig. 7.1a Customer-Focused Product & Service Results
Fig. 7.1-1: Water availability management. Any major deviations from the
Fig. 7.1-2: Water pressure programmed business plan or noted shortfalls
Fig. 7.1-3: Customers without water quality issues versus financial and KPI projections are met with
corrective action. This may be in the form of: (1)
The market performance of BWSI is measured and expediting the implementation of programmed
assessed using financial and profitability CAPEX projects; (2) authorizing un-programmed
benchmarks which serve as key reference points for CAPEX projects (Ex-CAPEX); or (3) authorizing
the short and long-term performance projections of the re-cast of financial assumptions or targets when
the company. The graphical trend and trajectory of warranted and justified.
these financial and profitability benchmarks
through historic timelines form a substantial basis CATEGORY 3 – CUSTOMER
for strategic decision points. The SL also assesses
these market performance indicators against those 3.1. Voice of the Customer
of its closest competitors and National/Regional 3.1a Customer Listening
data. The market share of BWSI in the water utility
sector is assessed based on data pertaining to 3.1a(1) Current Customers
franchise count, customer growth rate, production BWSI periodically conducts customer surveys as
and consumption data, and non-revenue water. shown in Fig. 3.1-1, to determine their level of
Graphical data on these key result indicators are satisfaction and happiness for the services it
referenced in the following sections below: provides. The survey conducted by the Customer
Validation Audit Team (CVAT) would also give
7.5a (2) Market Performance: the company an idea as to the exact or perhaps
Fig. 7.5-1: BWSI’s Financial Performance unique needs of certain customers. The listening
Fig. 7.5-2: Net Profit Margin approach varies depending on the customer’s type
Fig. 7.5-3: BWSI’s ROA, ROE, and ROI of connection, needs, preferences, and specific
Fig. 7.5-4: BWSI’s ROA vs. PH Water Utilities
situations. These different approaches also
Fig. 7.5-5: BWSI’s ROE vs. PH Water Utilities
consider customers’ communication styles,
Fig. 7.5-6: EPS Comparative
Fig. 7.5-7: BWSI’s Financial Liquidity language barriers, or cultural differences. BWSI
Fig. 7.5-8: Average Collection Period developed a set of survey questions to ensure that
Fig. 7.5-9: BWSI’s Debt-to-Equity Ratio the same are unbiased to also avoid “leading
Fig. 7.5-10: Debt-to-Equity Ratio Comparative questions.”

7.5a (2) Market Performance Step 1: Gathering of Branch data – The number of
Fig. 7.5-11: BWSI’s Operational Branch Growth surveys per area is computed by dividing the
12
number of customers per area by the whole 3.1a (2) Potential Customers
customers being serviced by the branch. Data are BWSI cannot simply enter into a Franchise Area.
based on the latest billing statistics of that branch. Usually, there are already existing water entities
such as water districts supplying water to the
Figure 3.1-1 Customer Satisfaction Survey Process communities. That is why, it uses two basic tools
to listen to its potential customers:

First is the Due Diligence activity, wherein the

Business Development Team (BDT) thoroughly
investigates or assesses the potential franchise area.
This is a critical step, enabling BWSI to make
informed decisions on whether to proceed with the
project. BWSI uses the data to develop strategies to
mitigate potential risks that may impact the success
of the potential project as such will, in the end,
maximize the value of the project.

Second, the BDT together with the local LGU

conducts a Public Consultation through public
meetings. Thereat, potential stakeholders express
Step 2: Face-to-Face Survey / In-Person Survey -
their views and opinions, and share their concerns
If respondents agree to participate in the survey,
about their existing water service provider. By
CVAT approaches them and explains its aim
engaging in this process, the company gains
before asking them the poll's questions.
valuable insights into the actual needs and
expectations of the customers.
Step 3: Get feedback, opinions, and concerns -
CVAT encourages customers to provide detailed
To summarize, all the above activities are being
and honest feedback, opinions, and other concerns–
undertaken to precisely determine the actual water
even those related to the service being provided and
needs and requirements of the customers. The
the demeanor of BWSI employees. The customers
relevant information thus gathered is then used to
are assured that their answers will be kept
make policies and decisions that are needed to
confidential and will only be used to improve the
address customers’ basic needs and expectations.
quality of service BWSI is providing to them.
This is only possible if BWSI has a thorough
understanding of the target community's
Step 4: Offer Incentives – At the end of the survey,
socioeconomic profile and features.
BWSI gives surprise tokens and rewards to
customers to show its appreciation for their loyalty,
3.1b. Determination of Customer Satisfaction
patronage, and time spent participating in the
and Engagement
surveys.
3.1b(1) Satisfaction, Dissatisfaction, and
Step 5: Summarize feedback and analyze results
Engagement
carefully. The final result is reviewed and
BWSI began the Customer Satisfaction Survey
thereafter the same is used for planning purposes,
(CSS) in August 2015 in order to capture,
i.e., improving BWSI’s efficiency in the delivery
understand, and appreciate the reactions of
of expected services.
customers to the services and personnel who
interact with them directly and physically.
Step 6: Corollary to Step 5, Actions Plans are
designed to address identified concerns of
The components of the face-to-face survey, as
customers. The SL reviews recommendations and
shown in Figure 3.1-2, are used by CVAT for all
orders the implementation of Action Plans. On
residential and commercial customers.
occasion, branch-level actions are taken to provide
immediate remedies.
Each area on the survey form is rated by the
customer from 1-5 or not applicable, (1-

13
Unsatisfactory, 2 – Poor, 3 – Satisfactory, 4 – 3.2 Customer Engagement
Good, 5 – Excellent).
3.2a(1) Product Offerings
Figure 3.1-2 Customer Satisfaction Survey Coverage BWSI’s primary product and service offering is the
provision of clean and potable water from source to
tap. BWSI has developed the expertise in
developing groundwater sources taking into
consideration environmental and project viability
concerns. In areas where groundwater is not as
abundant, BWSI develops and implements surface
water treatment systems. BWSI has now its own
10 MLD and 1.5MLD water treatment plant design
to add to its list of capabilities.

To deliver water from these sources, BWSI

constructs a network of pipelines that are designed
to suit the needs of the customers and to comply
with its commitments as stated in P.1a(1) Product
and Service Offerings. The ESC conducts
hydraulic simulations using modern software.
BWSI is now also capable of doing the
construction or pipe-laying works through its in-
house construction subsidiary (Fusecon, Inc.).

Data from the survey are summarized to determine To maintain these pipelines, the branches are
the overall efficiency, productivity, and equipped with well-trained plumbers who are
competence of the branch as promised by BWSI. supported by the Branch Engineers (BEs). Its
The results are readily available for viewing since monitoring systems are also able to determine
BWSI utilizes Google Sheet forms during the pipeline losses through calculation of and
survey. searching for Non-Revenue Water (NRW).
Below is a summary of the product and service
The results and recommendations are submitted to offerings of BWSI:
the SL for analysis in order to address and remedy
situations or factors that may undermine or impede 1. Water source development;
the delivery of expected and promised services. In 2. Laying of pipeline networks;
some instances, immediate remedies are provided 3. Non-Revenue Water (NRW) Management;
to cushion the impact on customers. 4. District Metering Area (DMA) Formation;
5. Bulk Water Services;
3.1b (2) Satisfaction Relative to Competition 6. Water Distribution;
CVAT asks, listens, and gathers information from 7. Deepwell Installation;
customers' concerns and suggestions regarding 8. Water Filtration Systems (WFS);
their past and current experiences whether it was 9. Water Treatment Plant Installation.
from BWSI or competitors’ services as presented
in Figure 3.1-3. 3.2a(2) Customer Support
BWSI prioritizes customer satisfaction therefore
Figure 3.1-3 Standard Questions used by CVAT during CSS
only the most trained employees are tasked and/or
F. MARKETING PROMOTION assigned to attend to the needs of the
1. Are there any other water providers in the area besides BWSI? customers. Guidelines, standards, and procedures
2. If yes, what made you choose BWSI over the others?
3. Were there any marketing promotions during your water are clearly set for customer support
application? activities. Training courses for specific areas of
4. Why did you decide to avail or not avail the marketing promotion?
5. We would also like to hear your comments and suggestions on
expertise are given to help employees continually
how we can further improve our service. improve their customer service skills and
capabilities.

14
 programs to build positive relationships
Information mechanisms to facilitate better with customers and stakeholders, and;
communication with customers are conducted promoting water conservation to ensure the
through the BWSI website, multiple contact long-term sustainability of our operations.
channels, social media platforms, CSAs, CSS, These programs, among others, are:
community forums, and public meetings.
o National Clean-Up Drive Campaigns;
3.2a(3) Customer Segmentation o Project 10,000 (Tree-Planting
BWSI has six (6) primary customer classifications: Activity);
Residential, Commercial, Government, o Waterway Clean-Up (In celebration of
Religious Institutions, Industrial, and Bulk World Water Day);
Water. Commercial Accounts are further o Mangrove Planting and Clean-Up
classified into small, medium, and large accounts. Drive (in Celebration of Earth Hour).
o Supporting barangay events like
3.2b(1) Relationship Management basketball tournaments, feeding
Building and managing customer relationships has programs, and others.
always been a crucial and important objective of
BWSI. Effective customer relationship For all customers, their primary concern is really
management can help increase customer the water service, that they are getting water 24
satisfaction, reduce customer complaints, and hours a day, 7 days a week, with good water
improve the company’s reputation. pressure and good water quality. The company
ensures customers satisfaction by:
BWSI builds and manages customer relationships
by: • Always delivering on our LSC
• Physical Presence – assignment of a • Investing in infrastructure – Continuously
dedicated CSA in every branch to provide investing in new water sources, expanding
responsive and helpful customer service, our pipelines, rehabilitating old lines,
i.e., address any customer inquiries and building reservoirs and boosting stations,
concerns by maintaining open and and putting up filtration systems is the
transparent communication channels with solution to maintaining the LSC. This is
customers. necessary and important to improve service
• Social Media – The branches use social reliability and make customers happy.
media to provide regular updates to
customers on service disruptions or 3.2b(2) Complaint Management
maintenance works through its social media It has been the practice in BWSI to immediately
pages. respond to customer’s concerns and complaints to
• Billing and Payment – offering easy and ensure total customer satisfaction. Please refer to
convenient billing payment options to the Figure 3.2-1 for the step-by-step complaint
customers such as GCash, Bayad Center, handling process.
Barangay Collections, and Over-the-
Customer complaints are reviewed together with
Counter Payment. Flexible payment
the recommendations thereto on a monthly basis to
options (installment payment) are also
determine the status of the services being provided,
offered to customers who have difficulties
especially at the branch level. The processes that
paying their bills.
are undertaken to address customer complaints are
• Public Forums and Public Consultations –
included in the annual business plans, including the
these are being held to get the customers’
need to generate capital expenditures programs to
feedback on expansion programs,
address recurring customer complaints issues.
construction of new water sources,
increasing water rates and/or listening to
their problems and concerns on the
company’s water service.
• Community Engagement – engaging local
communities by initiating outreach
15
Figure 3.2-1 Complaint Handling Process Figure 4.1-1 Key Performance Indicators

STEP RESPONSIBILITY ACTION KPI DESCRIPTION / TARGET

Water passes PNSDW for
Comes to the branch and physical-chemical parameters
1 Customer Water Quality/Potability
expresses his/her concern from the source to the customer’s
water meter
Entertains the customer and Available water 24 hours a day, 7
his/her concerns, asking days a week, even during power
2 CSA Water Availability
pertinent questions to get to the outages and especially during
bottom of the concern. emergencies
Creates Job Order (JO), writing At least 16 PSI for urban areas,
down all the necessary Water Pressure
3 CSA at least 10 PSI for rural areas
information and the customer's Non-Revenue Water
concern 10% or below
(NRW)
Logs JO in the appropriate Log Exceeds or on target based on
Books then accumulates the Revenues
projections
JOs until such time that the
4 CSA Average Daily Exceeds or on target based on
Operations Supervisor (OS) /
Plumbing Supervisor (PS) Consumption projections
comes to retrieve the JO. Average Price per Cubic Exceeds or on target based on
Twice during the day (first thing Meter projections
in the morning and lunchtime), Past Due Rate 5% of Total Receivables
5 OS / PS
the Supervisor will collect the
Exposure over Guaranty
JO from CSA. 150% of water bills
Deposit
Reviews the Jos, arrange them Accounts Receivables -
6 OS / PS logically into groups, and Minimized
Disconnected
assign them to plumbers.
Customer-to-Employee At least 200 customers for every
7 Plumbers Accomplish the assigned JOs Ratio 1 employee

Acknowledges JO by affixing
8 Customer his/her signature on the
assigned space These KPIs are monitored on a monthly basis
9 OS / PS
Reviews JO accomplishments, through the CMR. The data in the CMRs are further
signs them, and returns to CSA
summarized in monthly Operating and Financial
10 CSA Files the JO accordingly.
Statistics (OFS). Information summarized includes
the billed customers, production and consumption,
consumption per residential and commercial
CATEGORY 4 – MEASUREMENT, customers, electric cost per cubic meter, NRW,
ANALYSIS, AND KNOWLEDGE water revenue, net income, average water bill, and
MANAGEMENT average price per cubic meter. The OFS also
compares these data with the previous month and
4.1 Measurement, Analysis, and Improvement the previous year’s statistics and accounts for the
of Organizational Performance growth/decline of these data.
4.1a Performance Management The Finance and Accounting Center (FAC) also
provides monthly financial reports to the
4.1a(1). Performance Measures management and analyzes the organization’s
One of the organization’s main objectives is to financial performance. The monthly financial
deliver on its promised LSC to its customers. package is composed of the following reports:
Accordingly, it measures its operational and
financial performance using metrics that revolve
around the three LSCs identified in P.1a(1). Figure 4.1-2 Financial Reports and their Recipients

The organization’s KPIs are listed and defined FINANCIAL REPORT RECIPIENT

below: Monthly Financial Board Report BOD, Chairman, President

ManCom Financial Report Senior Leadership Team

Area Managers, Branch

Branch Financial Statements
Managers

16
These reports are supplemented by other detailed sections that provide all the information needed by
reports such as monthly accounts receivable (AR) the BM, AM, and the SL:
report which is read in conjunction with the CMR’s
A. Market Growth and Customer Service.
AR ageing report, cash position and cash flow
Provides roll-forward data on the number of
reports, and financial ratios with a focus on Gross
Profit Margin (GPM), Income from Operations billed customers for each month, the service
Margin (IOM) and Net Profit Margin (NPM). coverage of the branch, and the household
population within its pipe network.
The majority of the information provided for the B. Customer Satisfaction. Shows the number of
CMR and Financial Reports is derived from the books and customers enjoying water within
company’s in-house developed Billing System –
the LSCs and the number of books and
the Elite System, and from its externally developed
customers that have water quality issues, less
ERP, the Interlink Integrated System (IIS).
water supply, or low water pressure.
C. Water Supply. Presents the data on the water
Figure 4.1-3 Elite System Dashboard volume of a branch’s water sources, whether it
is from their own pump stations/water
treatment plants or sourced from a third party
(bulk water purchase).
D. Water Balance. This section tracks the
efficiency of the branch’s pipe network and
details the volume of water that were
successfully delivered to the customer’s water
meter (consumption volume/revenue) and the
water losses (NRW) which are accounted and
unaccounted (line losses).
E. Electrical Consumption. As one of the major
operational cost items monitored by the
organization, this section covers information
on the branch’s electric consumption, cost per
Figure 4.1-4 IIS Dashboard KWH, and the branch’s electric efficiency
usage.
F. Customers’ Consumption. This area provides
information on the volume of water
consumption per customer segment, i.e.,
residential, government, religious,
commercial, industrial customers, and bulk
water customers.
G. Financial Information: Balance Sheet and
Financial Performance. Ultimately, the report
methodically ends with the financial results
and financial-related KPIs after presenting all
operational data and KPIs which provides the
story behind the numbers. The Balance Sheet
data in this section focuses on the branch’s
4.1a(2). Comparative Data collection levels and efficiency.

The CMRs contain comparative monthly data and

target KPIs and are divided into the following
17
These are submitted to the Area Managers (AMs) Committee using criteria stated in 2.2a(3).
and are presented to the Vice-Presidents for Approved CAPEX projects are then implemented.
Operations (VPOs) every Monthly Managers
4.1a(4). Measurement Agility
Forum in order to assess and analyze the
BWSI measurement agility involves evaluating its
effectiveness and efficiency of the branch’s ability to adapt quickly to changing conditions and
operations and to track its KPIs and compliance respond to customer needs while continuing to
with the LSCs. Every other month, the operational provide high-quality water services. By focusing
and financial results are presented to the BOD on key indicators such as flexibility of
during Board Meetings. On an annual basis, all the infrastructure, customer responsiveness,
operational and financial information is collected, emergency response, innovation, and technology
adaption, planning and forecasting, risk
historically analyzed.
management, and collaborative partnerships,
Figure 4.1-5 The Components of CMR BWSI can identify areas for improvement and
strive for continued performance agility.
Market Growth and
Comparative Monthly Report

Customer Service
4.1b. Performance Analysis and Review
Customer BWSI strictly adheres to Peter Drucker’s adage
Satisfaction that “You cannot manage what you cannot
measure.” The SL is trained and disciplined to use
Water Supply comparative analysis and business metrics to
support and achieve its organizational goals. Ever
since its inception, the CMR has been the
Water Balance
company’s primary dashboard with which to
record and analyze the performance of the
Electrical company’s revenue-generating franchises.
Consumption
BWSI’s CMR is uniquely its own creation and is
Customers' even more detailed than the Monthly Data Sheet
Consumption which is the performance monitoring report that is
widely used by Water Districts. If there are any
Financial
Performance other water companies that have a CMR similar to
BWSI’s, it’s most likely because they copied
BWSI’s version. The CMR provides all the
operational and financial data that the SL and
4.1a(3). Customer Data
management need to get an accurate picture of each
BWSI communicates to its customers through
franchise’s situation and therefore, solutions-
various programs and structures as discussed in
generation and decision-making are improved
3.1.(a). These protocols also serve as the basis for
because the CMR is so detailed and
direct communications with the customers,
comprehensive.
especially in times or occasions when some
concerns from the latter are brought to the
The CMR is prepared by the BM and reviewed by
attention, particularly at the branch level. When a
the AM. The final versions will then be forwarded
complaint, for instance, is made, a Job Order (JO)
to the Project Monitoring Associate for the
is prepared which is cascaded down to the
preparation of the OFS, which will then be
particular employee or group, i.e., in-house
forwarded to the President, VPOs, and CFO.
plumbers and pump operators, to address or
remedy such complaints. More complex concerns
The Monthly Managers Forum is the main avenue
are identified during annual business planning
for our SL to monitor, manage and further improve
activities, which are all based on the CVAT reports.
operational and financial performance. The Forum
The BM, AM and BE, and other technical staff
takes place over three days due to the number of
from the ESC, will then identify necessary service
franchises that make their presentation. The Forum
improvement projects for presentation to the
is presided over by the VPOs and attended by the
SL. These projects are presented as CAPEX
CFO, Assistant Vice-President (AVP) for
proposals which are reviewed by the CAPEX
18
Accounting, Executive Manager, AMs, BMs, and 4.1c. Performance Improvement
department heads is where each BM presents
his/her CMR. The following data from the CMR 4.1c(1). Best Practices
are scrutinized to determine whether the For the SL and managers of BWSI, it is important
KPIs/KRAs and financial targets are achieved: to introduce “best practices” that have been
gathered both internally and externally to improve
• Billed Customers; overall performance. The Monthly Managers
Forum is also the venue in which the sharing of best
• Production (cu. m.);
practices takes place. This a great way to cascade
• Consumption (cu. m.);
these best practices to the entire organization. In
• Non-Revenue Water (cu. m. and %); addition, the SL is also always on the lookout from
• Unaccounted Line Loss (cu. m. and %); the branches for indicators, information, insights,
• Average Cubic Meter per Customer; trends and data that can be enhanced to improve
• Total Water Revenue and Net Income; existing best practices management and
• Average Water Bill; operational procedures. This is shared with other
• Average Price per Cubic Meter; branches and the SL sees to it that, at all times,
• Disconnections for the Month; these practices are adopted to ensure overall
• Electric Cost per Cubic Meter; enhanced productivity.
• Capex Accomplishment; and
• Others. 4.1c(2). Future Performance
BWSI’s future performance is determined by a
The Monthly Managers Forum is also the venue for range of factors including changes in climate
the SL to give guidance and support to the AMs and patterns, technological advancements, and
BMs. In the event that branch problems are caused evolving regulatory frameworks. Here are some of
by bottlenecks or misunderstandings with the other the key trends and considerations:
centers, problem resolution with the ESC, SSC, and
FAC are also tackled here through the intervention 1. Climate change – changes in climate
of the VPOs. patterns are likely to lead to more frequent
and severe weather events. BWSI will need
Meanwhile, to ensure the LSC is attained, CAPEX to therefore adapt its infrastructure and
projects are implemented by the branches which operations;
are part of their BPs for the year. These are being 2. Population growth and urbanization – as
monitored through the CAPEX Accomplishment the population grows and many localities
Report which shows the number of approved are becoming increasingly urbanized,
CAPEX projects along with the approved budget,
BWSI needs to continually expand its
the ongoing projects, and the completed projects.
infrastructure and services to meet growing
The SL uses all of these data from the CMR, OFS, demand;
and CAPEX Accomplishment Report to determine 3. Technological advancements – new
which branches are performing efficiently and technologies such as data analytics, and
which are performing poorly. The SL creates automation, are likely to transform the way
rewards programs using these metrics to that water utilities operate;
incentivize branches and employees to aim for their 4. Regulatory frameworks – evolving
yearly targets and goals. Examples of our rewards regulatory frameworks, including changes
programs in the past were the Branch the Year in environmental standards, consumer
Awards, Marketing Incentive, and NRW protections, and financial reporting
Reduction Incentive which used all these statistics requirements, will impact the way that
to determine award winners. Salary increases and water utilities operate and deliver services;
performance bonuses are also linked to the
5. Environmental sustainability –
achievement of KPIs/KRAs and annual financial
targets. environmental sustainability is BWSI’s
long-term concern and will undertake
activities and processes to protect the
ecosystem;
19
 6. Customer engagement – the need to made education of employees across the
continually engage customers and Philippines easier and more cost-effective.
communities is necessary to build trust and
Figure 4.2-1 BWU Logo
support for our operations. This will
require BWSI to extend its outreach effort
to the communities it is serving.
4.1c(3). Continuous Improvement and
Innovation
Revenue Committee (RevCom), Support
Committee (SupportCom), Finance and
Accounting (FinAcCom), and Engineering Currently, the complete set of the branch
Committee (EngCom) meetings are conducted operations manuals and other company policies are
once a month. On the other hand, SL meetings also uploaded to the library section of BWU, making
known as Executive Committee (ExeCom) these documents accessible to all employees.
meetings are conducted quarterly. These meetings
are held to discuss performance review findings of Meanwhile, the company transfers knowledge to
branches and support services departments. These its customers and the community through the
are used to evaluate requirements for new strategies conduct of information education campaigns,
and action plans. attachment of informational flyers to their
Statement of Account, posting on the Facebook
Prioritization involves identifying the most critical Pages, and infographic posters at branch offices.
issues and focusing resources and effort on them. For the suppliers, the SCM Team conducts supplier
Support departments identify projects/activities visits. BWSI also partners with its key electro-
based on the performance review findings and rank mechanical and equipment suppliers form them to
them according to urgency, importance, impact on conduct employee training about proper usage and
the organization, and feasibility according to maintenance. To keep the company abreast of the
available resources. latest trends and innovative ideas in the water
industry, BWSI also makes sure its key employees
4.2 Knowledge Management, Information, and attend conferences and expositions such as Water
Information Technology Philippines Conference and Exposition which is
4.2a Organizational Knowledge held every after two years. All these, from
customer needs/preferences data to suppliers’
4.2a(1). Knowledge Management offerings and latest innovations are all critical
BWSI collects, transfers, and preserves workforce inputs of SL during the Strategic Planning Process
knowledge by documenting and translating them as described in 2.1a.
into operations manuals and various training
modules. Since the establishment of the T&D 4.2a(2). Organizational Learning
Section of the HRD in 2015, all methods of training
were conducted using traditional printed modules BWSI’s SL values organizational learning above
and manuals. This system was costly and anything else. This can be seen in the following
unsecured. In March 2020, BWSI reached out to an efforts: (1) investment in the development of the
external software developer company, Taktyl company’s BWU; (2) facilitation of various
Studios, Inc., with expertise in developing learning internal technical and soft skills training; (3)
management systems, to help the company in its sponsorship of participation of select company
goal to digitize its content and training experience. employees in public workshops, seminars, and
After six months, an online learning management executive coaching sessions provided by external
system called Balibago Waterworks University training organizations; (4) provision/sharing of
(BWU) was developed. This innovative good books, magazines, and online news and
educational platform helped the company avoid articles; (5) production and distribution of Agos
costly printing of training materials, it secured Newsletter; and (6) sharing of best practices among
proprietary material from competitors, it enabled branches and departments.
wider sharing of information to employees and it
20
Figure 4.2-2 Sample Training Programs Facilitated/Availed for 4.2b. Data, Information, and Information
the Past 5 Years
Technology
YEAR TRAINING TITLE
Flowmeter and Chlorinator Training 4.2b(1). Data and Information Quality
"A Better Way" Workshop
The data and information quality of BWSI is
Water Quality
Hazard Identification, Risk Assessment, and Control secured by strictly adhering to Data Integrity
2018
Pump and Motor Testing during the software development cycle.
Electro-mechanical Maintenance & Basic
Troubleshooting
This process verifies the Accuracy, Consistency,
BM Cadetship Program Integrity, and Durability property of the database
Hydraulic Simulation and information stored. Testing in a controlled
"A Better Way" Workshop
2019 Non-Revenue Water Management
environment was also made before applying the
Standard First-Aid Training necessary update to existing systems. Servers are
BM Cadetship Program optimized for better performance; their capacity is
BM Cadetship Program
2020 BE Cadetship Program
regularly monitored. The most used business
EQ and 7 Habits of Highly Effective People applications are developed in-house, strictly
Basic Training Course for Pollution Control Officer monitored, maintained, and updated by BWSI's
PQA Application Development
Central Billing and IT (CBIT) Division.
Critical Switch - A Leadership Training
2021 Social Media Page Administration
BM Cadetship Program 4.2b(2). Data and Information Security
BM Retraining Program BWSI's cloud servers’ network and server security
Executive Coaching for SL and AMs
Economic Briefing are managed by one of the biggest and veteran
Personal Finance 101 cloud service providers in the world (VULTR,
Mental Health Awareness Digital Ocean, AWS) with additional layered
Philippine Water Utility Industry Series
Transformative Digitalization Workshop
security implemented by BWSI's CBIT. All of
2022 CAPEX Proposal Preparation Training BWSI's server logs are daily monitored and
Align to the Flow: A Workshop on Vitality and security patches are always kept up to date. Data
Prosperity
The Material Shift: An Inventory Management and information kept on BWSI's business
Training applications are only available to authorized
BM Cadetship Program
employees.
Since BWSI secured its ISO 9001:2015
4.2b(3). Data and Information Availability
certification in 2018, the Plan-Do-Check-Act
BWSI's data are ensured to be always available via
(PDCA) principle has also been integrated into the
network and internet services. Most of BWSI's
key processes of the organization to facilitate
business applications are accessed through web
organizational learning. At the macro level, the
browsers or data access through a software
annual Business Planning exercise of the company
application. Servers are periodically maintained to
is guided by the PDCA principle. BPs are reviewed
avoid downtime that will contribute to the
and adopted before the end of each fiscal year.
unavailability of data. To ensure the availability of
Approved projects and programmed procurements
data in the event of system failures, backups are
in the BPs are implemented prior to or during the
regularly generated.
current year. If the objective behind the
implemented project or procurement is not
4.2b(4). Hardware and Software Properties
achieved, during the Monthly Managers Forum, the
Whenever there is a need to acquire computerized
VPOs are quick to intervene and act on possible
systems from third-party providers, BWSI
challenges. Lastly, NC reports and IA reports are
undergoes a stringent process to make sure that the
also great sources of learning for the organization.
system will be reliable, secure, and user-friendly.
In the NC Form and IA reports, the employees must
Identifying clear project/user requirements, scope,
identify the root cause of the recorded non-
expected deliverables, timeline, and budget. BWSI
conformance, and together with the other
selects an outsourcing partner that has experience
concerned employees, branches, or departments,
in software development and a good track record.
the appropriate corrective action must be agreed
Constant testing and user feedbacks are the tools
upon.
we use to check the reliability of the systems.

21
4.2b(5). Emergency Availability This is called the “plantilla” and the same for each
For the record, BWSI's cloud service providers branch and department has been approved by the
have over 30 worldwide data center locations with President. Managers are also guided by the
at least one (1) data center in every continent to employee-customer ratio which is 1:200 as the
secure the availability of data and servers in case of ideal ratio set by the NWRB.
emergency. Back-up servers are always on standby
and ready to be deployed. BWSI's CBIT backup
In order for the BWSI to become a world-class
process includes Recovery Time Objective (RTO)
institution, it all starts with hiring people with the
and Recovery Point Objective (RPO). RTO defines
how long a system can be down while RPO right attitude and the talent, skills, and
determines the recovery point that is acceptable. competencies that are needed for the different job
For example, BWSI's Elite System has a layered positions. The significance of recruiting should not
backup strategy: be understated since once a relationship between a
company and an employee is established, it can be
Layer 1: Database backups are generated twice challenging to end it.
daily. Noon and at the end of every working day
5.1a(2) New Workforce Member
which is stored on a separate disk of the server and
BWSI shall only employ the most capable persons
a separate copy is uploaded to our cloud storage
and persons with a great attitude and the right skills
services. CBIT secures tertiary copies of backups
and competencies for the job position. Those who
by downloading and storing generated backups to
conduct the recruitment and interviews of
our dedicated storage hardware.
applicants should exercise proper and just
Layer 2: Complete system-level backup every judgment and select individuals with fairness and
week. dignity with a view to their personal potential and
capabilities. Applicants should not be
Layer 3: Remote/Cloud Backups. BWSI's cloud
discriminated against based on their gender, looks,
servers have a daily backup snapshot of the whole
educational attainment, background, or other
server.
matters that are immaterial to their performance of
the work required of them.
CATEGORY 5 – WORKFORCE
Figure 5.1-1 Recruitment, Selection, and Onboarding Process
STEP P-I-C ACTION
5.1 Workforce Environment
Fills out Manpower Request Form
Everyone employed by BWSI is viewed as the 1 Hiring Manager (MRF) and secures approval of
company's most important asset. A knowledgeable applicable authorities.

workforce is more productive and effective if 2

Recruitment Post the job vacancy on the online
Supervisor job portal.
everyone can relate to the goals, hence BWSI Submit resume to the HRD or
3 Applicant/s
believes in involving everyone in the process of apply online.
Recruitment Reviews and processes received
thinking and decision-making. 4
Supervisor applications.
5 Applicant/s Take the assessments.
5.1.a Workforce Capability and Capacity Recruitment Conducts initial interview of
6
Supervisor applicants.
Conducts final interview of
7 Hiring Manager applicants and selects the
5.1a(1) Capability and Capacity successful applicants.
During BWSI’s annual business planning, 8
Successful Completes pre-employment
Applicant requirements.
branches from the RC and departments from SSC,
Facilitates General Orientation of
ESC, and FAC assess manpower needs and future 9 Trainer
New Hires.
requirements for expansion and growth. Any Successful
10 Signs Contract of Employment.
approved budget for manpower in the business plan Applicant
will be incorporated into the FP which includes Issues training plan for new hires
11 Trainer and endorses them to their
salaries, benefits, premiums from government branch/department assignment.
12 Applicant Undergoes job-specific training.
benefits, bonuses, etc. There is a specific number
of employees allowed per branch or department.
22
Given the physical location of some branches, of the organization. The CMMR is the cost centers’
interviews conducted by HRD may need to be done version of the CMR.
remotely. Fig. 5.1-1 explains the BWSI’s
recruitment, selection and onboarding procedure. This performance tracking scheme allows BWSI to
identify areas of strength, weakness and
BWSI ensures that whoever conducts the bottlenecks within the organization and uses it to
recruitment and interviews of applicants should make data-driven decisions to improve overall
exercise proper and just judgment and select performance. By monitoring the performance of all
individuals with fairness and dignity with a view to centers, BWSI can ensure that all departments are
their personal potential and capabilities. Applicants working together efficiently and effectively to
should not be discriminated against based on their achieve the organization's objectives.
gender, looks, educational attainment, background,
or other matters that are immaterial to their 5.1a(4) Workforce Change Management
performance of the work required of them. BWSI management has been very supportive of
adopting changes in various aspects, including the
shift from manual to digital processes. Since 2020,
5.1a(3) Work Accomplishment management has continuously adopted changes by
BWSI has a unique organizational structure that is acquiring new systems such as HRIS, LMS, and
comprised of four (4) distinct centers: RC, ESC, IIS. The CBIT has also built an internal Elite
SSC, and FAC as discussed in P.1.b(1). The RC is System that has had a positive impact on the
primarily made up of branches that generate accuracy and effectiveness of the organization's
revenue for the company. Meanwhile, ESC, SSC, processes.
and FAC are considered cost centers that provide
support services to the RC including Human In addition, BWSI has introduced online payment
Resources, Procurement, Billing and IT, options through Bayad Center and GCash to give
Administrative, Engineering, Warehouse, Quality its customers a wider range of payment channels.
Assurance, Finance, Accounting, etc. These changes have been implemented to keep up
with the ever-changing business environment and
This setup ensures that BWSI's key processes and to provide better services to customers.
procedures are performed efficiently and
effectively, with each department focusing on its By adopting these changes, BWSI has improved its
specific area of expertise and know-how. By operational efficiency and effectiveness, resulting
separating revenue-generating activities from in better customer satisfaction and increased
support functions, BWSI can maximize its revenues. The organization's management has
resources and ensure that all centers are working demonstrated a proactive approach to adapting to
seamlessly together to achieve the organization's new technologies and continuously improving its
overall goals. processes to stay competitive in the market.

BWSI has implemented a performance tracking BWSI has also demonstrated its ability to quickly
scheme to monitor the performance of its branches adapt to unforeseen changes caused by force
in the RC and the effectiveness of the SSC, ESC, majeure events such as floods, earthquakes,
and FAC in providing support services to the RC. typhoons, volcanic eruptions, and others. The
This scheme involves setting yearly targets for organization has been able to act immediately and
each branch and establishing KPIs for the support continuously provide quality service to its
departments. customers even during these events.

To track performance of the SSC, ESC and FAC, When Coronavirus Disease (COVID-19) struck the
BWSI utilizes a Comparative Monthly Monitoring country, BWSI management acted immediately to
Report (CMMR) that highlights the progress of ensure the safety of its employees. The
each department against its monthly target, and; the organization did not lay off any of its manpower
performance of each department in the support and continued to provide complete compensation
centers against their KPIs. These reports are and benefits to its employees on time.
presented to the Vice Presidents and the President

23
BWSI's commitment to its employees' welfare and
its ability to adapt to changing circumstances have At the ground level, BWSI regularly conducts
helped maintain the organization's stability and Safety and Job Hazard Analysis (SJHA) to assure
continuity of service. The management's proactive its employees and workers that they can work
approach in addressing challenges caused by force safely and comfortably in our workplaces. It
majeure events and other unexpected situations has continually monitors the hierarchy of control to
earned the trust and loyalty of its employees and manage risks in the workplace and to guarantee its
customers alike.
workers the level of protection they deserve.
5.1b Workforce Climate
BWSI considers safety and health issues with
utmost concern and interest in all workplaces
5.1b(1) Workplace Environment within the organization’s purview. The planning
BWSI believes that the workplace should always and execution of safety and health protocols are
be designed together with the safety plan that is deemed important to be able to improve
aimed to protect the employees and the assets performance. For this reason, a Safety
working and contained therein. It is aware that Improvement Plan (SIP) has been designed and
there are common hazards in the workplace, e.g., implemented to clearly address such health and
ergonomics, hazardous chemicals and materials, safety concerns. In annual BPs generated by the
mechanical problems, noise pollution, and organization, and in all planning activities, the SL
restricted visibility, among others so, these must be always stresses the need to adhere to and if
controlled and managed so that accidents due to necessary, improve this SIP. BWSI’s SL, in
these factors can be prevented. Once these hazards collaboration with front-line leaders and safety
coordinators, initiate the planning efforts and
are identified, the next step is to implement the risk
suggest attainable goals to improve safety
assessment, control the risk if not eliminate the risk
protocols as such will lead to higher overall general
altogether. BWSI always stresses to all its performance. Individuals with a high degree of
employees the need to follow safety protocols since professional safety-concern-leanings are chosen
some of these risks cannot be totally and trained to serve as Safety Officers (SOs) within
eliminated. The same can only be reduced. In the organization. These SOs lead the safety and
short, serious accidents can be prevented provided health protocols, programs, and activities for each
safety protocols are followed. of their branches.

Figure 5.1-2 Workplace Health and Safety Framework For BWSI, a safety and health program or protocol
is only effective and operative if the workplace
hazards are clearly identified and pinpointed. As
such, regular audits of the workplace are conducted
so that corrective actions can be implemented and
ultimately prevent worker injuries and their
associated costs. BWSI aims therefore for “Zero
Accident” and the basis of the Zero Accident
campaign is for all workers and employees to take
steps or pre-emptive actions to prevent accidents
that can lead to serious and costly injuries. All
these efforts are aimed towards compliance to
health and safety regulatory standards.

24
Figure 5.1-3 Health Safety Performance Goals Measures BWSI also offers bonuses, salary increases and
incentives to reward and motivate employees for
their outstanding performance. Financial assistance
is available to support employees during difficult
times, such as in cases of emergencies or
unexpected personal circumstances.

Figure 5.1-5 Employee Benefits

CATEGORY BENEFITS

Hospitalization (in-patient)
Dental
Health Insurance Annual Physical Examination
Medical Consultation
COVID-19 Medical Care Kit

Massage Therapy
Wellness
Mental Health Programs

Christmas Bonus
Bonuses and Mid-year Bonus
Salary Increase Performance-based Bonus
Annual Salary Increase

Salary and medical loans

Bereavement Donations
Retirement Plans
Transportation Allowances
Sustenance Allowances
Figure 5.1-4 Targets of BWSI OSH Programs Financial
Housing Allowances
Assistance and
Communication Allowances
other allowances
Pants Allowances
Car plans
Wedding Allowances
Birthday Allowances
Death Benefit

All of these demonstrate the organization's

commitment to the well-being and satisfaction of
its employees. Happy employees lead to motivated
performance at work which lead to achievement of
goals and targets.

BWSI has established company policies and

5.1b(2) Workforce Benefits and Policies procedures to ensure compliance with government
BWSI offers a highly competitive compensation regulations and to maintain a safe and productive
package and generous benefits to all its employees, work environment. Each employee is provided
which includes government-mandated benefits and with a copy of the Employee Handbook, as well as
several others. the policies and programs mandated by the DOLE.

The organization's employee benefits package

covers a range of areas, including health insurance, To ensure that these policies are regularly reviewed
retirement package, bonuses, salary increases, and updated, the SL is responsible for reviewing
financial assistance in the form of loans, vacation and approving any new policies or amendments
and sick leave credits, de minimis allowances and before they are disseminated to all employees via
others. BWSI's health insurance package provides email by the HRD. This ensures that employees are
employees with access to quality healthcare well-informed and aware of any changes in policies
services and coverage for medical expenses, while and procedures that may affect their working
the retirement plan helps secure their future environment.
financial stability.

25
5.2 Workforce Engagement BWSI's SL is dedicated to ensuring that all
employees feel connected and included in the
5.2a Workforce Engagement and Performance organization's culture and values. To this end, all
5.2a(1) Organizational Culture activities, events, achievements, and initiatives are
To foster an organizational culture that is communicated to employees via the company's
characterized by open communication, high webmail group, Facebook Group called "Balibago
performance, and an engaged workforce, the SL Aktibo" and “Agos” Newsletter. These platforms
deliberately introduces and establishes a strong serve as hubs for all employees to stay up-to-date
values system. This effort could be seen in various on the latest events, news, and initiatives at BWSI.
strategies being used by the SL to ensure the core Figure 5.2-1 Drivers of Engagement
values are embedded across and at all levels of the
organization. For instance, it has launched CATEGORY PROGRAM FREQUENCY
employee recognition programs such as PDCP Christmas Party Annual
Company-wide Townhall Meeting Annual
Awards and recently, the CLP Leadership Awards. Events Summer Outing Annual
BWSI also provides a comprehensive General Jump Start Meeting Annual
Orientation for new hires and Refresher Corporate Social Medical Mission Monthly
Responsibility
Orientation for employees for regularization. It Events Tree-Planting Semi-Annual
PDCP Award Annual
also facilitates performance evaluations and
Loyalty Award Annual
distributes an employee handbook to ensure the CLP Leadership
Award Annual
SL’s espoused values are inculcated among Recognition and
Branch of the Year Annual
Reward Program
employees. Bida Branch As needed
5S Champion Annual
Top 3 Branch on
The former and the current Presidents of BWSI are OSH Compliance Annual
also consistent in incorporating these core values
into their presentations, conversations, and By prioritizing workforce engagement through a
speeches throughout the company. This approach focus on core values, BWSI has fostered a culture
fosters an environment of psychological safety of collaboration, positivity, and productivity. This
where employees feel comfortable expressing their approach has contributed to the organization's
opinions and proposing changes or improvements. success and has helped to ensure that employees
are motivated and engaged in their work.
The workforce is also empowered by the delegated
5.2a(3) Assessment of Engagement
decision-making capacity to them. The company BWSI firmly believes that when employees feel
has a well-defined approving authority that clearly that management is concerned about them as
defines responsibilities and working relationships individuals, not just as employees, they become
among employees. This system expedites required more productive, satisfied, and fulfilled. When
approval for projects and cash advances, enabling employees are satisfied, they will be able to provide
employees to operate more efficiently and better services to likewise satisfied customers.
effectively. BWSI’s focus on employee engagement has shown
that this has built-up a friendly competition among
5.2a(2) Drivers of Engagement its employees. During company-wide events,
At BWSI, workforce engagement is driven by a employees work and play together and this
focus on the core values of the organization. precisely promotes teamwork, collaboration, and
Whenever the company celebrates events, the SL camaraderie.
ensures that these values are always at the center or
theme of these events. This approach by the SL is By fostering a culture of engagement and
reflected in the organization's commitment to participation, the company has been able to create
creating and organizing engaging and fun group- a workplace environment where employees feel
wide events that foster a sense of community and valued and appreciated. This has contributed to its
family. success as an organization and has helped ensure it
is able to attract and retain top talents.

26
5.2a(4) Performance Management the organization’s need to constantly educate,
BWSI recognizes that performance management is upskill and enhance the personal development of
a crucial tool in achieving the organization's goals. its workforce. Training, cadetship and leadership
Employee performance evaluations are used to programs are developed based on needs
monitor progress, identify areas for improvement, assessment. The SL are adamant about fostering a
and provide valuable feedback to enhance overall culture of continuous learning and employees are
constantly reminded and encouraged to continue
performance. At BWSI, annual performance
improving themselves. This message is repeated as
evaluations are conducted using an online
often as possible during speeches, emails, and other
performance evaluation system that was developed forms of communication. These approaches help
by its in-house IT team. The system has replaced BWSI ensure that its training programs are
manual paper and offline automated processes, responsive and aligned with its strategic goals and
making the evaluation process more efficient and that employees have the competencies they need to
user-friendly. succeed.

The annual performance evaluations are conducted In addition, BWU also supports the
every June, and all employees, including the SL, implementation of various organizational changes
are evaluated using a 360-degree evaluation such as the introduction of new systems (i.e.,
method as outlined in 1.2a(2). In short, everyone is Billing System (Elite System) and ERP System
evaluated and this would mean that even those (IIS) through the facilitation of orientation and
training to the users of these new systems.
belonging to the SL are subjected to evaluation by
the employees themselves. The reason for this is Furthermore, BWSI provides its employees with
simple: The SL should be guided particularly as knowledge on making ethical decisions. Its SL
far as their performance is likewise concerned, and; leads by example to all employees. BWSI has also
the evaluations will give them precisely the been consistent in making a statement to all its
direction and guidance as to how and where the employees that the company will not tolerate
same will lead his/her unit or department to in the unethical behavior based on the decisions it makes
future. on administrative cases it processes.

BWSI believes that performance evaluations are an BWSI aims nothing but to delight its customers. As
integral part of employee development and growth, part of their onboarding process, all new hires of
and uses the results to identify training and the company are required to watch a video about
the Customer Service Attitude that BWSI wants
development needs. It also uses evaluations to
each employee to observe when dealing with its
recognize and reward employees who have
customers. This video integrates customer-focused
achieved outstanding performance. Combined values, beliefs, and behaviors that BWSI promotes
scores are used to determine salary increases and when dealing with customers.
performance-based bonuses for its employees each
year. For the transfer of knowledge from the retiring
workforce, knowledge management was discussed
BWSI takes pride in its performance management in 4.2a(1). Meanwhile, BWSI reinforces new
process, which it believes is fair, transparent, and knowledge and skills on the job through on-the-job
objective. By prioritizing employee development mentoring, follow-up training and support, and a
and using evaluations in its decision-making, it is performance management system.
confident in its ability to achieve its organizational
goals. 5.2b(2) Learning and Development
Effectiveness
5.2b Workforce and Leader Development BWSI uses several mechanisms to evaluate the
effectiveness and efficiency of its learning and
development systems. Firstly, after training,
5.2b(1) Learning and Development System
employees are required to undergo assessment as
BWU managed by the T&D section is BWSI’s to whether they understood the topic of the training.
center of learning and development. BWU supports
27
Secondly, feedback is gathered directly from CATEGORY 6 – OPERATIONS
training participants through a post-training
evaluation survey at the end of each learning 6.1 Work Processes
session. The T&D Team then collates the responses
to identify opportunities for improvement in the 6.1a. Product and Process Design
delivery of training sessions or modules. Part of the
objectives is the assessment as to whether 6.1a(1). Product and Process Requirements
participants have achieved the desired learning The vision, mission, and strategic objectives are
objectives of the program and how these outcomes our company’s bases for its products and services.
translate into operational results such as increased It ensures that the LSCs are met through continuous
billed customers, improved collection efficiency, product innovations and service improvement.
reduced non-revenue water, and financial targets
achievement. Key Work Systems:
• Identification of target customers’ demands
Furthermore, BWSI evaluates workforce and their explicit and implicit needs;
engagement in learning and development by • Water sourcing: Water is sourced from
monitoring participants’ completion rates of their natural sources such as rivers, lakes,
enrolled programs. The company also performs reservoirs, and groundwater;
cost-benefit analyses to assess the efficiency of its • Water treatment: The water is treated at a
learning and development systems. For example, treatment plant to remove impurities and
the development of BWU has reduced the make it safe for human consumption and
manhours spent for every run of the General compliant with government regulations;
Orientation Program from 16 hours to 6 hours. • Water Storage: The treated water is stored
in water tanks or reservoirs before it is
5.2b(3) Career Progression distributed to customers;
At BWSI, career progression for employees is a top • Distribution: The water is distributed
priority. The company prioritizes filling up newly through a network of pipes and valves to
opened positions for higher positions, including customers. The distribution system may
Supervisors, Managers, and SL roles, with internal include pumps, storage tanks, and pressure
candidates. HRD releases announcements for regulators.
available higher positions within the company and
invites interested employees to submit a Letter of Figure 6.1-1 Key Work Systems
Intent (LOI) to the HR Manager. These internal
applicants undergo the applicable selection and
recruitment process; and, successful candidates are
informed of the results of their application. Their
appointments to these positions are then announced
company-wide through corporate email groups.

In addition to these internal recruitments, the SL of

BWSI may appoint specific employees to lateral
positions with different functions, which also
contributes to their career development. These
appointments are not necessarily for higher
positions but provide employees with the
opportunity to develop new skills and experiences.

Succession planning is also an integral part of

career development at BWSI. Items 1.1a(3) and
1.2a(1) discuss in detail how BWSI carries out
succession planning for management and
leadership positions.

28
6.1a(2). Design Concepts 6.1b. Process Management
Water Treatment Process selection is based on the 6.1b(1). Process Implementation
quality of the raw water, compliance with BWSI’s operation centers on water treatment and
government regulations, and operational distribution. It follows a process flow starting from
efficiency. the identification of customers up to the
• Process Design - Refers to the sequence of distribution of water. Its operation is supported by
processes that water goes through to different departments, each playing a role in
achieve the desired quality; ensuring that targets and goals are met as seen in
Fig. 6.1-3.
• Capacity and Flexibility - Consider the
daily demand and the variability in the Testing and commissioning of projects after
quality of the raw water; completion of installation take place for a week to
• Resilience and Redundancy - Are designed ensure that capacity and quality are met based on
to be resilient and have redundancy to design. Three consecutive months of water quality
ensure that the supply is continuous during monitoring is also conducted to ensure accurate
emergencies or equipment failures; dosing of chemicals and compliance with PNDSW.
• Environmental Considerations - Take into
6.1b(2) Support Processes
account the environmental impact of its
The RC is supported by three other centers: ESC,
operations; SSC, and FAC. These Centers are integral to
• Maintenance and Operations - Consider ensuring that the business runs efficiently. Each is
ease of maintenance and operations. This described in Fig.6.1-2. The functions of these
includes plant accessibility, using departments are presented below:
standardized equipment, safety in the
workplace, and skilled operators. Engineering Services Center (ESC)
• Civil Works Division - is responsible for
Overall, the design of a Water Treatment Plant designing, estimating, planning, executing,
(WTP) is based on a thorough understanding of the and managing special projects such as
source water quality, water treatment processes, WTPs, inline booster pumps, reservoirs,
and local regulations. The plant is designed to be and major transmission pipelines;
resilient, flexible, environmentally responsible, • Electro-Mechanical Division - provides
and easy to maintain and operate. technical support to branches and to Civil
Works Division also in terms of designing,
Figure 6.1-2 Design Process
estimating, developing, testing,
maintaining, and troubleshooting electrical
and electromechanical systems and
equipment while ensuring compliance with
relevant regulations and standards;
• Water Quality Division – provides
technical support to branches, responsible
for designing the processes, planning, and
implementing projects such as WTP
(surface water) and WFS (groundwater)
and monitoring the performance of existing
WTPs and WFS;
• Network Management Division - is
responsible for the design of water
networks through hydraulic simulation and
assisting the branch in the analysis of their
water distribution and reduction of NRW;

29
 • WTP Management Division - is responsible Revenue Centers (RC) (These Divisions are also
for overseeing the operations of existing support systems to the branches):
WTPs and ensuring that the KPIs are met. • Project Management Division - is
responsible for managing the CAPEX
Support Services Center (SSC) projects including estimation, execution,
• Human Resources Division– is responsible progress billings and project acceptance;
for managing the organization's human • Regulatory Compliance Division - is
capital, including recruitment, selection, responsible for managing the organization's
onboarding, benefits and compensation, interactions with government agencies,
performance management, employee including maintaining compliance with
relations, training and development, and government regulations, securing permits
compliance with labor laws and and licenses, and advocating for the
regulations; organization's interests with government
• Billing and IT Division - is responsible for stakeholders.
managing the organization's information
technology infrastructure; 6.1b(3) Product, Services, and Process
• Procurement Division - is responsible for Improvement
managing the organization's purchasing The need for continuous improvement is addressed
process; through regular assessment of our customers’
• Central Warehouse Division – receives the future implicit needs.
company’s inventory of materials and The improvements are monitored by holding
supplies and then issues them to the regular RevCom, SupportCom, FinAcCom, and
branches when required; EngCom meetings to discuss KPIs and areas that
• Administrative Support Division - is still need improvement. After these meetings,
responsible for the documents handling and improvement plans are cascaded to the employees
safekeeping as well as facilities through department/staff meetings.
maintenance of the head office;
• Corporate and Legal Matters Division - is 6.1c Innovation Management
responsible for managing the organization's Innovation projects are initiated and personally
legal affairs; monitored by the President. Depending on the
• Business Development Division - is project, the President assigns a Project Lead to be
responsible for the identification and responsible for ensuring the project progresses
acquisition of new business opportunities from ideation, planning, execution, and its final
and development of expansion strategies, stage of successful implementation. To encourage
developing strategic partnerships and innovation, the President rewards the Project Lead
alliances; and project participants with rewards when the
• Asset Management Division - is responsible project has achieved its strategic objectives.
for the acquisition, management, and
Innovation proposals are identified based on the
disposal of the company’s assets while
explicit and implicit needs of our customers and are
ensuring that their value is maximized;
assessed based on cost, benefits, strategic fit, and
• Systems Division - is responsible for the
ease of implementation. Urgency, importance, and
creation, communication, preservation and
impact on the organization are also considered in
revision of the organization's policies and
identifying the prioritization.
memorandums.
RevCom, SupportCom, FinacCom, and EngCom
Finance and Accounting Center (FAC)
meetings are held monthly. In these meetings,
• Treasury Division - is responsible for innovation projects of branches and support
managing the organization's financial departments are discussed. If there are changes
resources;
needed, the action plans are cascaded to the
• Accounting Division - is responsible for individual employees concerned.
preparation of the organization's financial
statements.

30
Figure 6.1-2 Key Work Systems, Work Processes, Requirements, and Measures

KEY WOK SYSTEM KEY WORK PROCESSES KEY REQUIREMENTS KEY MEASURES

Water Availability (Fig. 7.1-1)

Survey of
Water Pressure (Fig. 7.1-2)
Identification of target unserved/underserved areas Timely, Availability,
Customer Without Water Quality Issues (Fig. 7.1-3)
customers’ demands Completeness
Customer Satisfaction Survey Results (Fig. 7.2-1)
Estimation of water demand
Water Permit (Fig. 7.4-4)

Site survey
Timely, Accuracy,
Completeness
Dependable flow
measurement Water Availability (Fig. 7.1-1)
Availability, Accuracy
Water Sourcing Customer Without Water Quality Issues (Fig. 7.1-3)
Water sampling and testing Water Permit (Fig. 7.4-4)
Quality, Availability
Water allocation
Availability, Timely
application/permit

Treatment design Accuracy,

Completeness Water Availability (Fig. 7.1-1)
Project implementation Water Pressure (Fig. 7.1-2)
Water Treatment
Timely, Completeness Customer Without Water Quality Issues (Fig. 7.1-3)
Testing, commissioning, and Customer Satisfaction (Fig. 7.2-1)
energization Quality, Compliance

Accuracy,
Storage capacity design Water Availability (Fig. 7.1-1)
Completeness
Storage Water Pressure (Fig. 7.1-2)
Project implementation Customer Without Water Quality Issues (Fig. 7.1-3)
Timely, Completeness

Water Availability (Fig. 7.1-1)

Water Pressure (Fig. 7.1-2)
Customer Without Water Quality Issues (Fig. 7.1-3)
Hydraulic simulation Accuracy Customer Satisfaction (Fig. 7.2-1)
Distribution BWSI’s Operational Branch Growth (Fig. 7.5-11)
Project implementation Timely, Completeness BWSI’s Number of Customers (Fig. 7.5-12)
BWSI’s Production & Consumption Data (Fig. 7.5-13)
NRW Comparison, BWSI, Phils., SEA (Fig 7.5-14)
NRW, BWSI, and other Private Utilities (Fig. 7.5-15)

KEY SUPPORT
KEY WORK PROCESSES KEY REQUIREMENTS KEY MEASURES
SYSTEM

Engineering:

Civil structure designs and

Civil Works Water Availability (Fig. 7.1-1)
estimates
Water Pressure (Fig. 7.1-2)
Electrical and mechanical
Timely, Accuracy, Customer Without Water Quality Issues (Fig. 7.1-3)
Electro-Mechanical component design and
Effectiveness, Customer Satisfaction Survey Results (Fig. 7.2-1)
estimates
Efficiency, Availability, BWSI’s Number of Customers (Fig. 7.5-12)
Hydraulic simulation and
Network Compliance, Quality BWSI’s Production and Consumption (Fig. 7.5-13)
recommendations
Management NRW Comparison, BWSI, Phils., SEA (Fig 7.5-14)
NRW Management
Completed Projects (Fig. 7.1-5)
Design and calculations for
Water Quality
water treatment processes
WTP operations and
WTP Management
maintenance
Timely, Quality,
Manpower planning and
Effectiveness,
recruitment
Efficiency Total No. of BWSI Employees (Fig. 7.3-1)
BWSI Customer-to-Employee Ratio vs. NWRB and LWUA
Efficiency, Benchmarks ((Fig. 7.3-2)
Training and performance
Effectiveness, Quality New and Enhanced Benefits (Fig. 7.3-3)
evaluation
Salary Increase Rate (Fig.7.3-4)
Human Resource
Effectiveness, Quality, BWSI Turnover Rate vs. Global (7.3-5)
Employee relations
Timely Company-Wide Events Attendance (Fig. 7.3-6)
Total Training Participants (Fig.7.3-7)
Health, Sanitation and
Effectiveness, Quality, BM Cadetship Program Completion Rate (Fig. 7.3-8)
Hygiene, Safety Program
Timely
Compensation and benefits
Accuracy, Timely

31
 Business Process Automation (Elite System)
Efficiency, Payment Processing (Fig. 7.1-4)
Billing and IT Software development
Effectiveness Collection Efficiency Rate (Fig. 7.1-6)
Past Due Rate (Fig. 7.1-7)

Availability, Timely,
Supplier selection and Efficiency, Quality,
management Reliability
Purchase Order fulfillment (IIS)
Procurement Purchasing and contracting Availability, Timely, PO Delivery Report (Fig. 7.1-10)
Efficiency, Quality,
Receiving and inspection of Reliability
materials
Quality

Receives company’s Availability, Timely,

Materials Requisition Slip (MRS)
Central Warehouse materials and assigns them Efficiency, Quality,
PO Delivery Report (Fig. 7.1-10)
to branches Reliability

Documents handling, Logbook of documents

Timely, Efficiency,
Administrative Support transmission, storage and Non-conformances Issued During ISO 9001 audit (Fig.
Reliabilty
safekeeping 7.1-8)

Issuance of updated permits and licenses

Corporate and Legal Provision of legal guidance
Timely, Effectiveness Updated Memorandum of Agreement (MOA) and Deed of
Matters to the company
Contract

Identification of potential Timely, Availability

BWSI’s Operational Branch Growth (Fig. 7.5-11)
markets
Business Development Total No. of Billed Customers (Fig. 7.5-12)
BWSI’s Production & Consumption Data (Fig. 7.5-13)
Securing New Franchises Timely, Availability

Inventory of company’s Timely, Efficiency, Fixed Asset Replacement Form

Asset Management
assets Reliablity PO Delivery Report (Fig. 7.1-10)

Timely, Efficiency,
Writing and cascading of
Systems Effectiveness, SD Memo Coding System
company policies
Reliability

Collection Efficiency Rate (Fig. 7.1-6)

Past Due Rate (Fig. 7.1-7)
Timely, Efficiency, BWSI’s Financial Performance (Fig. 7.5-1)
Treasury
Effectiveness, Accuracy Net Profit Margin (Fig. 7.5-2)
Financial planning BWSI’s ROA, Equity, and Investment (Fig. 7.5-3)
Timely, Efficiency, BWSI’s ROA vs. Water Utilities in the Philippines (Fig. 7.5-
Cash flow management Effectiveness, Accuracy 4)
BWSI’s ROE vs. Water Utilities in the Philippines (Fig. 7.5-
Accounting and financial Timely, Efficiency, 5)
reporting Effectiveness, Accuracy Earnings Per Share Comparative (Figure 7.5-6)
Tax compliance BWSI’s Financial Liquidity (Fig. 7.5-7)
Accounting Timely, Efficiency, Average Collection Period (Fig. 7.5-8)
Effectiveness, Accuracy BWSI’s Debt-to-Equity Ratio (Fig. 7.5-9)
Debt-to-Equity Ratio Comparison (Fig. 7.5-10)
BWSI’s Branch Growth (Fig. 7.5-11)

BWSI’s Branch Growth (Fig. 7.5-11)

Project planning and Timely, Availability, BWSI’s Number of Customers (Fig. 7.5-12)
Project Management
implementation for branches Efficiency BWSI’s Production & Consumption Data (Fig. 7.5-13)
NRW Comparison, BWSI, Phils., SEA (Fig 7.5-14)

Environmental Compliance Certificate

Compliance with government Certificate of Potability
Regulatory Compliance regulations, securing permits Timely, Compliance Building Permit/Certificate of completion (LGU)
and licenses Water Permit (Fig. 7.4-4)
Certificate of Public Convenience (Fig. 7.4-5)

32
6.2 Operational Effectiveness distinguishes between apparent losses and real
losses. This helps identify areas where water loss is
6.2a. Process Efficiency and Effectiveness occurring and take necessary actions to reduce the
BWSI management has a cost-conscious same.
orientation. Following Peter Drucker’s adage that
“You cannot manage what you cannot measure,” In monitoring the expenses of branches, a Standard
cost efficiency benchmarks and cost control Monthly Expenses (SME) plan has been developed
measures are established across the operations of by the Accounting Division to ensure that these
the company. branches are not overspending, and such SMEs will
thus allow for the efficient management of the
The biggest cost items on BWSI’s income organization’s budget.
statement are the Personnel and Management Fees.
BWSI manages this cost using several benchmarks. 6.2b. Supply Chain Management
The first benchmark is monitoring that the total
Personnel and Management Fees do not exceed BWSI supplier accreditation system involves the
20% of Total Revenues. Second, BWSI has set the participation of several departments that are tasked
KPI of having a Customer-Employee Ratio of 200 to evaluate the capability and capacity of suppliers
customers for every 1 employee. It uses this in meeting the needs and requirements of the
benchmark when deciding whether it can afford to company. These suppliers are “categorized” into
hire new employees or increase Plantilla. groups or sub-groups depending on the specifics
and specifications of the materials/items that they
The second biggest cost item on BWSI’s income supply BWSI. The evaluation of the suppliers is
statement is the Power Cost of operating our done by requiring them to submit all pertinent
pumping stations. One of the ways BWSI controls credentials and documents to prove, as said their
its overall operational cost is by optimizing electric capability and capacity to supply. For this purpose,
consumption. The company has started shifting a Supplier Audit Report is prepared and generated
from the use of a Reduced Voltage Auto to detail the basis for the approval and/or
Transformer (RVAT) controller to Variable accreditation of a particular supplier.
Frequency Drive (VFD) to regulate the electric Figure 6.2-1 Supplier Accreditation and Evaluation
consumption of our pumps. By programming
parameters during peak and off-peak hours, the
company is able to manage its water supply
efficiently. Additionally, BWSI is venturing into
solar power technology to save on electric
expenses and contribute to a cleaner environment.
Power cost consumption and efficient utilization
are monitored in our CMR’s section on Electrical
Consumption as discussed in Category 4.1a
Performance Measurement.

For operational benchmarks, BWSI has set a

benchmark for available water supply to be of
150% of daily water demand. This ensures that
enough water supply is available for customers
even during peak hours. This is also monitored in
the CMR in its sections for Customer Satisfaction,
Water Supply, and Water Balance in Category 4.1a
Performance Measurement. There is a plan to
utilize or use a reservoir by 2024 to resolve the
issue of low water supply and the effective
allocation of excess water supply. An NRW
management system has also been developed and
implemented which focuses on water loss and

33
It is also a standard operating procedure (SOP) to experience in the field of Airline
conduct site visits of the business addresses and Operations, Commercial and Private Flight
domiciles of these suppliers to ensure that they are Operations, handling of various aircraft
doing legitimate business transactions with the types and high value assets;
public. To further ensure that required materials 2. The team has conducted inspections in
and/or items are always available when needed, an some branches of the company and made
inventory program of establishing a Stock Level recommendations to the SL to achieve asset
has been initiated so that inventories of branches management goals and objectives. In all
can be closely monitored to prevent these visitations, it was thoroughly
“understocking” or “overstocking.” A web-based explained to all the personnel the need to
system, IIS, was generated for supply chain and establish an asset management
accounting. This has led to efficiency, improved program/system to improve asset handling
accuracy, and effective cost management even standards, documentation, utilization and
when transactions are in effect “paperless.” operating procedures;
Tracking and consolidation of materials become 3. Highly specific policies, procedures, and
easier and more reliable because of the automation training programs will be set and
thus installed. theretofore implemented to ensure an
accurate and appropriate monitoring of all
Meanwhile, one of the integral parts of SCM is the assets of the company with the end goal
Asset Management. Asset management is a process of preserving and prolonging the life of
by which a company manages the assets in its these assets.
business, whether tangible or intangible, by setting
up a monitoring system that tracks the asset 6.2c. Safety and Emergency Preparedness
throughout its useful life cycle. It is also defined as 6.2c(1) Safety
the practice of increasing total wealth over time by To address the above issue of Emergency
acquiring, maintaining, and trading investments Preparedness, the following steps are undertaken:
that have the potential to grow in value. These (1) Identifying potential hazards and analyzing
assets may include real or personal property, what could happen if a disaster occurs. It serves as
buildings, equipment, machineries, software and a basis for the planning and implementation of
hardware, and anything vital to the business such emergency preparedness and response programs.
as employees, staff, and personnel. The plan is shared with all on an organizationally-
wide basis so that everyone knows what to do when
Asset management is impossible without the a disaster or emergency happens. For this reason,
support of good asset records (usually known as an properly trained Emergency Response Teams were
asset register or asset database). This requires (i) created to plan, direct and execute emergency
investing in robust processes for consistently plans. Embedded in these plans are direct disaster
collating and recording information; (ii) gathering response procedures and mechanisms, and crisis
past data; (iii) establishing an asset classification management protocols especially when natural
method; and (iv) investing in a computer system disasters occur, e.g., fire, typhoon, earthquakes,
that contains a number of key modules to allow, for volcanic eruption) happen. (2) Stockpiling of
example, planning and acquisition of assets, needed and critical emergency materials which
maintenance of records, and scheduling of asset shall be used during emergencies. The availability
replacement. of these materials will, in the end, lead to fewer
injuries to employees and personnel and less
At BWSI, the following interventions, procedures damage to existing physical assets. (3) Setting up
and protocols have been put in place to address of needed communication facilities to be able to
asset management concerns: immediately disseminate important information
throughout the entire organization. For this
1. Organize a Team to establish and develop reason, a Communication Plan has been adopted
industry-specific policies in developing an for the purpose, and; (4) Holding of Emergency
Asset Management System for the drills. It allows employees to obtain lessons and
company. Currently, the team is comprised use these to prevent losses and damages.
of highly skilled individuals with extensive

34
6.2c(2). Emergency Preparedness
BWSI has generated its own Disaster Recovery The COVID-19 pandemic has created widespread
Plan (DRP) to allow our organization to quickly and significant disruptions within organizations’
resume work after a disaster-like incident occurs. supply chains, affecting inventory, sales,
That DRP is envisioned to immediately recover the manufacturing, and trade. Because of incidents like
company’s lost momentum from an incident and to, COVID-19, BWSI learned that it is essential to
among others mitigate our losses should there be create a pandemic-proof supply chain framework
any experienced and immediately recover from to help stabilize its operations. It is also important
such losses to ensure continuity of operations. to develop a continuing bond with partners and
Before generating a detailed plan, BWSI often suppliers so that all can immediately respond to
performs a business impact analysis (BIA) and risk each calamity besetting all stakeholders.
analysis (RA), as these established recovery Figure 6.2-2 Emergency Preparation Guidelines

objectives.
BWSI’s Health Program also includes processes
and activities to ensure continuity and how to
handle such unpreventable and unexpected
phenomena like COVID-19. When COVID-19
struck, BWSI immediately incorporated all DOH
and LGU protocols to be able to cope with and
reduce all possible risks of transmission.

Figure 6.2-2 Emergency Preparedness Plan

CATEGORY 7 – RESULTS
Results of BWSI’s performance are presented for
key measures monitored by management. The data
included in this section are mostly between 1-to-5-
year trends (2018-2022). Comparisons with
competitor data are provided but generally limited
due to the scarcity of public information provided
by these competitors.
Where data is available and congruent, comparison
of BWSI’s financial and operating performance are
presented against:
Within the company’s supply chain, an extensive • Manila Water (Consolidated) –
network of people and organizations work to move consolidated results derived from the
products from suppliers to consumers. These
publicly available annual report of Manila
processes are tightly interconnected, meaning any
disruption can create detrimental impacts that Water Company, Inc. and its subsidiaries;
affect the rest of the chain.
• Manila Water (East Zone Concession) – the
BWSI is cognizant of the fact that strengthening its parent company, servicing the eastern side
logistics plan and preparing for every type of of Metro Manila as well as the province of
disaster is sometimes a matter of crucial
Rizal;
importance for survival and continuity. Delays,
shortages, inflation, and other types of threats must
be on our minds all time to maintain our • Manila Water (Non-East Zone) – focused
competitiveness and to continue sustaining on Manila Water’s subsidiary Manila
operations over the long term. Water Philippine Ventures, with core
35
 domestic operating subsidiaries Boracay Figure 7.1-2 Water Pressure

Water, Clark Water, and Laguna Water; 90.0%

• PrimeWater Infrastructure Corp. – a 80.0%

domestic water utility company that has a

% of Customers
similar profile with BWSI particularly on
70.0%
providing water services outside of Metro
Manila;
60.0%

• Water Districts, LGU-Run Utility, Other

50.0%
Private Utilities, and National Data, based 2018 2019 2020 2021 2022
16 PSI and
on Listahang Tubig (Water Register) of Above
55.2% 67.6% 73.3% 73.2% 73.6%

NWRB, which is a national survey of all

water service providers covering service
Fig. 7.1-2 shows that from 2020 to 2022, the
levels I to III.
company was able to maintain water pressure of at
least 16 PSI to an average of around 73 percent of
7.1 Product and Process Results its customers.
Figure 7.1-3 Customers Without Water Quality Issues
7.1a. Customer-Focused Product and Service
Results 99.0%
BWSI continuously strives to meet or exceed its
98.5%
levels of service commitments to its customers.
98.0%
Presented are the LSCs of BWSI over the past 5
% of Customers

97.5%
years, which have seen steady improvement and
97.0%
results of the projects and activities that the
96.5%
company undertook to ensure the availability,
96.0%
pressure, and quality of water delivered to its
customers. 95.5%
95.0%
Fig. 7.1-1 depicts an improvement in water 94.5%
2018 2019 2020 2021 2022
availability. It is noted that from 2018 to 2022, such
Water Quality 96.2% 97.4% 97.6% 98.6% 98.0%
improvement assumed an upward sloping
trajectory – a matter that greatly improved
As far as Fig. 7.1-3 is concerned, the number of
customer satisfaction.
customers without water quality issues has
Figure 7.1-1 Water Availability improved from 96 to 98 percent despite the
challenges brought by deteriorating quality of
90.0%
water from its sources.

80.0% 7.1b. Work Process Effectiveness Results

% of Customers

7.1b(1) Process Effectiveness and Efficiency

70.0% Work process efficiency is crucial for BWSI to
remain competitive and sustainable over the long
term. Optimizing work processes lead to higher
60.0%
productivity and lower costs. Additionally,
improving efficiency makes the organization more
50.0% responsive to customer needs and market demands
2018 2019 2020 2021 2022
while enhancing employee satisfaction and morale.
24 HRS 69.1% 77.6% 80.5% 84.0% 86.6%

36
Fig. 7.1-4 shows the actual average time per As emphasized in 2.1a(1) Strategy Planning
customer processed by Branch Tellers. BWSI Process, the efficiency and effectiveness by which
measures the payment processing time because this CAPEX projects are implemented throughout the
transaction is the most frequent transaction year is a critical factor to ensure the delivery of the
customers have with BWSI. Every month, company’s LSCs to its customers. The impact of
thousands of customers are paying their water bills this improved efficiency in project completion can
at the branch office. be seen in the improvement in BWSI’s service
Figure 7.1-4 Payment Processing
using Figures 7.1-1, 7.1-2, and 7.1-3.

31 Fig. 7.1-6 shows that improving collection

efficiency through established policies and
Processing Time (in seconds)

30
procedures and effective communication with
29
customers is critical for BWSI's success and
28 growth.
27
Figure 7.1-6: Collection Efficiency Rate
26

25 100%

24 90%
2018 2019 2020 2021 2022
80%
Set Average Time Actual Average Time
70%
60%
BWSI sets a 30-second payment processing time 50%
as one of its quality objectives. Since 2018, its
40%
Tellers have been consistently efficient by being
30%
able to process payments within 26 to 29 seconds.
20%
2018 2019 2020 2021 2022
Fig. 7.1-5 presents the steady improvement in
BWSI’s project completion rates over the past four BWSI MANILA WATER PRIMEWATER

years. This reflects its ongoing commitment to

excellence and customer satisfaction. By Prioritizing collection efficiency is critical for
continuing to prioritize effective project BWSI to decrease past-due rates, maintain
management and work process efficiency, it was financial stability, and build strong customer
able to improve the on-time completion rate of the
relationships as illustrated in Figs. 7.1-6 and 7.1-7.
projects being implemented every year. In 2018,
only 48 percent of the projects implemented were Figure 7.1-7: Past Due Rate
completed on time. Four years after, this data has
gone up to 76 percent. 20.00%
18.00%
Figure 7.1-5 Completed Projects
16.00%
160 14.00%
Past Due Rate

140 12.00%
120 10.00%
No. of Projects

100 8.00%
80 6.00%
60 4.00%
40 2.00%
20 0.00%
0 2018 2019 2020 2021 2022
2019 2020 2021 2022

NO. OF COMPLETED PROJECTS ON TIME

BWSI’s past due rate ballooned to above 18
TOTAL NO. OF COMPLETED PROJECTS percent in 2020. This is more than double the
37
‘normal’ past due rate of the company which soften the adverse impact of these events. These
ranges from 6 to 9 percent only. preparations are needed to allow us to manage our
costs and losses should these events indeed occur.
Due to the COVID-19 pandemic, the management The past 2 years have been very challenging for
of BWSI gave customers a longer period to pay BWSI. Its emergency preparedness was constantly
their water bills considering that many people lost tested due to events like manpower transitions, the
their jobs. Its current disconnection policy of 2- onset of the deadly COVID-19, volcanic eruptions,
month pay-or-cut was suspended. Instead, BWSI and earthquakes in some areas in the Philippines,
extended it to a 4-month pay-or-cut. which have caused some problems though
manageable to its operational systems. BWSI
Since situations started to improve the following immediately did some adjustments to cope with
year, with people getting back to their jobs or these events beginning in 2022. It restored focus
finding new ones and with BWSI swiftly and attention to crafting emergency response
introducing an alternative wider range of payment protocols and programs to further strengthen its
channel options (like GCash and Bayad Centers) to ability to mitigate the dire effects of these events.
its customers, the past due rate of the company has In 2023, new protocols were adopted down to the
now returned to its normal level, even exceeding branch level to prepare for events such as fire,
the same level. typhoons, earthquakes, and volcanic eruptions.
BWSI SL has always inculcated in the minds of all
Figure 7.1-8: Non-conformances Issued During ISO 9001 Audit employees the need for vigilance and preparedness.
2.5 Figure 7.1-9 Emergency Prepared-Related Activities
No. of Non-conformances

YEAR
2 FACTOR
2020 2021 2022

Total No. of First-Aiders 8 8 17

1.5

Total No. of ERP Revision 1 1 1

1
Total No. of Emergency
10 15 32
Materials
0.5 Training/Drills Conducted
0 1 2
per Year
Accident and Health Issues
0 65 45 25
Recorded
2018 2019 2020 2021 2022
Communication Reports
1 0 8
Released

Meanwhile, Figure 7.1-8 presents the number of

non-conformances recorded by the auditor during
ISO audits. 7.1c Supply-Chain Management Results
BWSI departments involved in monitoring supply
Ensuring minimal to zero non-conformances in an chain activities critically measure supply chain
ISO audit is essential for meeting regulatory metrics, particularly on the timely delivery of
requirements, maintaining quality standards, and essential materials and/or items. This is very
enhancement of customer satisfaction. By adhering important since delays in deliveries could be costly
to the BWSI operations manual, it was able to for the operations of the company. It is also
consistently achieve its set quality objectives. The emphasized to the suppliers that the delivery of
result of this consistent zero non-conformances needed materials should be, at the very least, made
recorded for the last four years can be correlated to even before the stated delivery period so that
the CSS results in Fig. 7.2-1. indeed delays can be effectively precluded. The
inventory system generates the information to track
7.1b(2) Emergency Preparedness
deliveries and from said system bottlenecks and
Disasters and emergencies cannot be accurately
predicted. On some occasions, there are trends that causes for delays, if ever such occurs, are easily
can be depended on, and; these allow BWSI to pinpointed and theretofore corrected. Starting in
make some necessary preparations to mitigate and 2021, the company has been using a web-based

38
system, the IIS, for all its supply chain processes seen to be inclining over the years due to more
from requisition to ordering and up to the aggressive positive engagement with customers to
monitoring of deliveries. It has been shown that the ensure the delivery of better services.
use of this system has clear cost-saving effects and Figure 7.2-1 Customer Satisfaction Survey Results
has led to the elimination of paper works, in some
instances. Finally, the system has shown that
“order accuracy” has been realized.

4.26
4.20
4.08
4.03

4.06
3.91
3.87

3.89
3.85
3.74
3.72

3.58
SATISFACTION RATING

3.04

3.03
3.01
Figure 7.1-10: PO Delivery Report

120%

100%

80%
% of PO

60% SERVICES PERSONNEL OVERALL

SATISFACTION
40% RATING
2018 2019 2020 2021 2022
20%

0% Scale: 1 Unsatisfactory, 2 Poor, 3 Satisfactory, 4 Good, 5 Excellent

2018 2019 2020 2021 2022

ON TIME DELAY
7.2a(2) Customer Engagement
BWSI has been increasing its information and
listening mechanisms over the years to continually
Note in Fig. 7.1-10 starting in 2018, the delays in reach the promised level of services. The BWSI
the delivery of spare parts and other materials website was launched in 2013 and rebranded in
somehow inclined so that in 2021 delivery delay 2018. In 2021, the management rolled out the
was measured at around 38 percent. This was establishment of Facebook pages for BWSI
trimmed down to about 22 percent in 2022 due to branches to better serve and engage with
the adoption of improved supply chain protocols customers. As of December 2022, 97 percent of
with suppliers. BWSI branches have a Facebook account with
41,093 likes and 42,912 followers, 79 CSAs and 22
7.2 Customer-Focused Results
branches have undergone customer satisfaction
7.2a(1) Customer Satisfaction surveys.
The results of CSS are given to key officers of
BWSI for discussion. The findings or issues 7.3 Workforce-Focused Results
reported through the survey will be used to 7.3a(1) Workforce Capability and Capacity
formulate immediate actions, policies, or measures For the record, BWSI continued to hire and
that will serve as a reference for the generation and onboard new employees to meet the needs of the
adoption of annual project and business plans, organization despite the shocks it experienced
aimed at continually achieving full customer
especially during the pandemic as shown in the
satisfaction.
continued growth of the BWSI workforce in Fig.
In Fig. 7.2-1, the CSS results show the following: 7.3-1. The workforce capacity of the organization
(1) for services, the company’s LSC has has remained intact despite challenges and this
continually been being realized so that in 2022, the demonstrates BWSI's commitment to ensuring that
satisfaction rating reached a maximum of 3.85; (2) the organization, given its main assets – its
satisfaction of customers on personnel services was workforce, will achieve its goals and objective over
rated at a high of 4.26 and the average was noted to the long term.
be at a mark of 4 which merely meant that delivery
of services was greatly appreciated by customers;
and finally, (3) overall satisfaction rating has been
39
Figure 7.3-1 Total Number of BWSI Employees ensure their best performance to likewise achieve
the best customer satisfaction assessment.
1200

1000 Aside from these new and enhanced benefits,

BWSI also considers workplace design to ensure
No. of Employees

800 that employees are comfortable in their work areas

and that each employee has sufficient space in the
600
office during working hours. Fig. 7.3-3 lists the
400 new benefits and enhanced benefits introduced in
the company from 2018 to 2022 and the branches
200 which have been constructed and renovated within
0
the same period.
2018 2019 2020 2021 2022 Figure7.3-3 New and Enhanced Employee Benefits

YEAR NEW ENHANCED OFFICE

BWSI is proud of its efficient workforce. Based on BENEFITS BENEFITS CONSTRUCTION
(C) /
the benchmark of the Local Water Utilities RENOVATION (R)
Administration (LWUA), the customer-to- 2018 • Financial • Zaragoza, Nueva
employee ratio for Water Districts is 130:1. assistance Ecija (C)
during force
Meanwhile, NWRB sets the same at 200:1 for majeure
private water operators. For BWSI, its workforce
can be considered more efficient because its 2019 • Updated • Bereavement • Angeles Head
customer-to-employee ratio ranges from 260 to Multiemployer benefits Office (R)
retirement plan • Increased
280:1 as seen in Fig. 7.3-2. amount for
company loans
Figure 7.3-2 BWSI Customer-to-Employee Ratio vs. NWRB and
LWUA Benchmarks (salary and
medical) up to
15,000.00 pesos
300
2020 • Increased • Sto. Domingo,
amount of pants Nueva Ecija (C)
250
• Capas, Tarlac
Customer to Employee Ratio

allowance
• Increased (C)
200
amount of • Llanera, Nueva
birthday Ecija (C)
150
allowance • Minalin,
• Food allowance? Pampanga (C)
100
• Gabaldon,
50 Nueva Ecija (R)

0
2021 • Bereavement • Laurel, Batangas
2018 2019 2020 2021 2022 Fund/Donation (R)
by employees • General Trias,
BWSI NWRB LWUA and matched Cavite (R)
by company • San Simon,
Pampanga (R)
7.3a(2) Workforce Climate • Macabebe,
BWSI believes that an “involved and empowered” Pampanga (R)
workforce leads to increased productivity and • Zaragoza, Nueva
Ecija (R)
better performance. As such, the company • Arayat,
continuously looks for ways to provide and Pampanga (C)
enhance benefits for its employees. Overall, BWSI • Porac,
Pampanga (C)
understands that providing its workforce with
better benefits will allow it to attract and retain top
talents in the industry and this will promote a
positive work environment for all. The
organization will continue to review and improve
employee benefits and initiatives programs to

40
 2022 • Transit • Increased • Angeles Head BWSI had a salary increase every year without fail.
allowance for capacity Office (R)
transposed allowance for • San Pascual,
Unfortunately, in 2020, due to the pandemic, the
employee Managers and Batangas (C) company was not able to provide salary increases.
• Sustenance Supervisors who • Umingan,
handle big,
BWSI is proud to say, however, that while many
allowance for Pangasinan (C)
transposed medium, small, • Maria Aurora, other companies laid off employees during the
employee and missionary Aurora (C) pandemic, BWSI did not lay off a single employee.
• Capacity branches.
allowance for • Increased Aside from this, what you can observe is that in
Managers and capacity 2021, the total salary increase given was actually
Supervisors allowance for
Branch
higher than in previous years. Whereas in 2018 and
who handle
new/opening Engineers 2019, the total salary increase stayed stable at 6
branch • Increased percent higher than the previous year, in 2021, the
capacity
allowance for BOD approved an aggressive salary increase
Branch package—total salary increases amounted to 16
Accountants
percent higher than the previous year.
• Increased
communication
allowance for
Unfortunately, in 2022, the company was again
Branch unable to provide salary increase because the
Accountants global economy was again beset by factors external
• Covid-care
to the company—the onset of the Russia-Ukraine
medicine kit
war caused the doubling of power costs which
greatly affected BWSI’s profitability since power
In most companies, hiring of employee relatives is was the second biggest income statement expense
conventionally prohibited. However, at BWSI, after personnel and management fees. But BWSI is
many employees refer their relatives to work in the committed to improving the welfare of its
company. And BWSI accommodates these employees so this 2023, another salary increase is
programmed even if the company has not yet fully
referrals as long as they are qualified for the
recovered from the damaging impact of the high
position they wish to apply for. In fact, based on the power costs. BWSI is committed to showing its
2022 report of HRD, 72 employees have been workforce that the company cares for them.
identified with family linkage within the company.
This is a testament to BWSI’s positive work 7.3a(3) Workforce Engagement
environment and culture that many employees 7.3-5 BWSI Turnover Rate vs. Global
want their relatives and children to work at BWSI.
25%
Figure7.3-4 Salary Increase Rate
18% 20%
Turnover Rate

16%
15%
14%
Rate of Salary Increase

12% 10%

10% 5%
8%
0%
6% 2018 2019 2020 2021 2022

4% BWSI Turnover Rate Global Turnover Rate

2% Sources: The State Auditor's Office's Electronic Classification Analysis System

and State Auditor’s Office’s turnover reports from fiscal years 2013 to 2021
0% available at https://hr.sao.texas.gov/Reports/
2017 2018 2019 2020 2021 2022 2023
BWSI has consistently maintained a turnover rate
The graph in Figure 7.3-3 illustrates the impact of below the minimum percentage when compared to
external factors on BWSI's capability to implement the global turnover rate, as indicated in Figure 7.3a.
This signifies that BWSI is performing better than
salary increases for its employees. Prior to 2020,
41
the industry average in terms of retaining its required to complete the 2-day General Orientation
workforce. Program. As mentioned in 5.2b(1), BWSI utilizes
this onboarding program to instill in new hires the
Despite facing various challenges, BWSI has company’s expectations as to how customers
successfully preserved its workforce capacity. This should be served and how the delivery of services
is a testament to the organization's strong can be further improved. Over the past five years,
commitment to ensuring that its workforce, which
BWSI has consistently coached at least 100 new
is its most valuable asset, remains intact and
members and this was continuously being
contributes to the achievement of long-term goals
and objectives. With a stable and capable undertaken even during the COVID-19 pandemic
workforce, BWSI is well-positioned to navigate to sustain operations.
challenges, adapt to changes, and deliver high- Various training programs are being offered to the
quality services to customers.
employees of the company to support even their
In 2018, instead of holding a Townhall Meeting, own personal growth and development. Sample
the SL decided to organize a two-day summer training programs facilitated or availed for the past
outing in Bataan. This provided an opportunity for five years are listed in Fig. 4.2-2.
employees to relax and bond outside of the usual
In recognition of the potential long-term impact of
work environment. the COVID-19 health crisis on employee learning
However, from 2020 to 2022, the Townhall and development, BWSI acted swiftly in March
Meetings and Summer Outings had to be 2020, the same month when the government
discontinued due to the continued dangerous declared the first community lockdown, to develop
prevalence of the pandemic. This was necessary to its own LMS, as outlined in 4.2a(1).
protect the health and safety of our employees
From 2020 to 2021, the T&D Team focused on
during these periods. Despite the challenges, the
developing, testing, and populating the training
organization still found a way to celebrate and
content and modules of BWU. During this period,
connect with all the employees by hosting a virtual
the company was limited to the delivery of its core
Christmas party. This allowed all employees to cadetship programs only as it was still learning how
come together and enjoy the festivities even while
to deliver training programs in the ‘new normal’.
the pandemic was at its height. During the Thus, a decline in the recorded training attendees
company-wide events, awards and recognition
from 2020 to 2021 was observed. However, in
were continued to be extended to lift the morale of
2022, BWSI expanded its reach and capacity in
the employees and their dependents.
delivering learning programs to all employees by
7.3-6 Company-Wide Events Attendance facilitating a wide range of webinars utilizing
Zoom video conferencing as a tool.
1000
900 Figure 7.3-7 Total Training Participants
800 2500
700
Total Attendance for All Trainings
Attendance

600
2000
500
400
300 1500

200
100 1000
0
2018 2019 2020 2021 2022
500
Christmas Party Jumpstart Summer Outing Townhall

0
7.3a(4) Workforce Development 2018 2019 2020 2021 2022
To ensure full integration with the company’s
vision, mission, and values, all new hires are
42
BWSI’s flagship management training program, CLP Leadership Award was launched to identify
the BM Cadetship Program, has consistently leaders amongst the employee base and to promote
produced sufficiently trained and highly-capable the kind of leadership that the company is looking
managers and leaders for its branches. For the last for. Current President Alejandro has successfully
three runs of the program, the company has been used rewards and incentive programs over the
recording at least a 90 percent completion rate years as a way to communicate and engage with the
workforce.
among its enrollees.
Figure 7.3-8 BM Cadetship Program Completion Rate When it comes to communicating and engaging
with the customers and the community, the SL does
100%
this through public forums and consultations. For
90% various reasons, whether it be for expansion of our
80% pipe networks, setting up of new water sources,
70% increases in our water rates and/or to hear their
Completion Rate

60% complaints and concerns. The result of these public

50% forums and consultations is to get the consensus of
40% the public and stakeholders on the issues that
30% concern them and their welfare.
20%
10%
7.4a(2) Governance
0%
BWSI has consistently adhered to the Philippine
2018 2019 2020 2021 2022 Financial Reporting Standards (PFRS) in preparing
its annual financial statements. Moreover, it has
received clean and unqualified opinions from its
external auditors, which manifests BWSI
7.4 Leadership and Governance-Focused
management’s commitment to responsible and
Results
transparent accounting protocols.
7.4a Leadership, Governance, and Societal Figure 7.4-1: Financial Statement Audits
Responsibilities Results
Accounting External Auditor’s
7.4a(1) Leadership Year
Principles Opinion
There are various ways that the SL communicates In accordance with
2018 Unqualified
with and engages the workforce to deploy the PFRS
company vision, values, and policies. Current 2019
In accordance with
Unqualified
PFRS
President Alejandro’s favorite way of engaging the In accordance with
2020 Unqualified
workforce is through competitions and incentive PFRS
programs. One example was when she launched the 2021
In accordance with
Unqualified
PFRS
PDCP Awards. Her objective was to generate In accordance with
amongst the employees an awareness of the 2022 Unqualified
PFRS
company’s core values and for the employees to
internalize these values. BWSI also has an Internal Audit (IA) Team that
performs regular audits of BWSI’s branches and
For three years in a row, the PDCP Awards were departments and examines the organization’s risk
held and the result was that the objectives were management, governance, and effectiveness of
achieved. Another example was when current internal controls. Audited branches and
President Alejandro held a poster-making departments are selected every year based on their
competition. The objective of the competition was location, number of billed customers, operation
to create awareness about the company’s LSC. All date, last audit date, and results. To continually
branches and support departments were invited to improve operations, unsatisfactory results are
join and make a poster that best exhibited the LSC. audited again.
Although there were only three winners, the
competition achieved the objective of making the
employees memorize the LSC. Most recently, the
43
Figure 7.4-2: Internal Audit Results
Barangay
Clearance/ ✓ ✓ ✓ ✓ ✓
Business Permit
Year 2018 2019 2020 2021 2022
Insurance ✓ ✓ ✓ ✓ ✓
Excellent Tax Order of
✓ ✓ ✓ ✓ ✓
Payment
Above
15 12 19 23 4 Mayor's Permit ✓ ✓ ✓ ✓ ✓
Acceptable

Acceptable 9 4 5 10 7 Fire Safety

Evaluation ✓ ✓ ✓ ✓ ✓
Clearance
Satisfactory 1 2 7

Unsatisfactory 5 3 15
BWSI recognizes the utmost significance of
Total Audit 30 16 24 38 33 complying with regulatory requirements
particularly when it comes to WPs and CPCs. Its
primary objective is to ensure that all its water
Fig. 7.4-2 shows that in 2022, there were about 15 sources are properly licensed and that all its
branches that were rated “unsatisfactory”. This
branches possess a valid CPC.
happened because the new audit team implemented
Figure 7.4-4 Water Permit Applications
a far more rigorous auditing protocol. That said, all
the branches are now forewarned to improve the 70
handling and/or management of their operational
60
and financial activities to preclude the occurrence
of instances of being unsatisfactorily rated in the 50
No. of Application

future. 40

30
7.4a(3) Law, Regulation, and Accreditation
BWSI continually strives to comply with all 20
national and local government and agencies’ 10
regulatory requirements, namely:
0
Figure 7.4-3: Compliance with Regulatory Requirements 2018 2019 2020 2021 2022

Water Permit Application Approved Water Permit

Licenses /
Permit /
Registrations /
2018 2019 2020 2021 2022 In recent years, BWSI has made considerable
Certifications progress in obtaining numerous WPs and CPC,
with the exception of the pandemic year, 2020.
SEC and BIR Documents
Despite this setback, it continues to pursue its
General
Information ✓ ✓ ✓ ✓ ✓ mission with the utmost diligence, and it has
Sheet several WP and CPC applications already in the
Audited Financial
✓ ✓ ✓ ✓ ✓ pipeline awaiting approval. Its commitment to
Statements
compliance remains unwavering, and it has taken
Certificate of
Registration
✓ ✓ ✓ ✓ ✓ measures to adjust its operations to adapt to the
Sanitary Permit ✓ ✓ ✓ ✓ ✓
challenges posed by the pandemic. Its priority is to
ensure that it is on track to meet its regulatory
National and Local Gov’t Registrations
obligations, and it is confident that it will be
City Environment successful in this endeavor. Furthermore, it is noted
and Natural
✓ ✓ ✓ ✓ ✓ that the NWRB has recently implemented a new
Resources Office
(CENRO) online licensing system, which has significantly
reduced processing times and improved
Business Permit accessibility for applicants. This new system is a
and License ✓ ✓ ✓ ✓ ✓
Office
testament to the government's commitment to
streamlining regulatory processes and promoting
44
ease of doing business in the water industry. BWSI Conduct & Behavior-
0 0 2 2 0
extra marital affairs
welcomes this development, and it looks forward
to continued collaboration with the NWRB in Drinking while on duty 0 5 1 1 4
ensuring the responsible and sustainable
management of the country's water resources. Falsification of
company ID/Tampered 0 2 1 0 0
ID signature
Forging of
Figure 7.4-5 Certificate of Public Convenience Applications acknowledgment 0 0 2 0 0
receipt from supplier
Gross negligence-
16 improper
0 0 2 0 0
implementation of
14 collection policy
12 Insubordination 0 1 0 0 0
No. of Application

10 Loss/damage to
0 2 1 0 6
company property
8
Negligence-Cash
6 0 2 0 0 0
Advance Liquidation
4 Negligence-Work
13 17 21 28 10
2 Performance

0 Non-observance of
2018 2019 2020 2021 2022 health and safety/Inter-
0 0 13 0 2
Agency Task Force
CPC Application CPC Approved (IATF) protocol
Tampering of OR 0 0 1 0 1
Tardiness 0 22 0 0 0
Looking at 7.4-4 and 7.4-5, the approval rate tends Breach of Trust-Theft 0 0 0 0 1
to be lower than the application submissions Sexual Harassment 0 0 0 0 1
because not all applications are immediately acted Safety & Security-
upon. A case in point was the situation during the Unauthorized 0 0 0 0 1
displacement of CCTV
pandemic where inspections became very irregular,
thus affecting the approval rate. In 2022, the TOTAL 21 60 51 33 35

approval rate somewhat improved with the

installation of the new NWRB board which was 7.4a(5) Society
expected to fast-track all delayed approvals that BWSI provides support to the community through
happened in the past. its various programs, initiatives, and partnerships
with different organizations, as listed in 3.2b(1).
7.4a(4) Ethics
Most of these projects are focused on supporting
In connection with the Company’s Code of
local community activities, environmental
Conduct, below are the number of cases filed and
protection and conservation, and immediate relief
resolved by the Company, to wit:
operations during natural disasters.
Figure 7.4-6 Number of Cases Resolved Fig. 7.4-7 Amount Spent per CSR Projects

No. of Cases 9,000,000.00

2018 2019 2020 2021 2022
Resolved
8,000,000.00

Absence Without 7,000,000.00

3 8 4 0 2
Leave (AWOL)
6,000,000.00
Breach of Trust-giving
in PhP

false information about 2 0 0 0 0 5,000,000.00

a job order
4,000,000.00
Breach of Trust-
0 1 0 0 0
malversation 3,000,000.00
Breach of Trust-
unremitted/undeposited 3 0 2 0 6 2,000,000.00
collection
1,000,000.00
Conduct & Behavior-
Causing harm to a co- 0 0 1 2 1 -
employee 2018 2019 2020 2021 2022

45
7.4b Strategy Implementation Results Figure 7.4-9 Total No. of Water Treatment Plants

BWSI’s strategic planning process involves

medium and long-term strategies for adaptability 7
and to ensure the realization of the proper direction 6
whereto the company intends to evolve in the
future. The targeting and achievement of strategic 5

No. of WTPs
objectives, strategic goals, and the execution and 4
implementation of plans are involved in this
process. 3

2
Per Figure 7.1-1, 7.1-2, and 7.1-3, it is shown that
over the five-year period, significant improvements 1
in the company’s KPIs have been realized, i.e., the 0
number of customers with 24-hour water 2018 2019 2020 2021 2022
availability from 69.1 percent to 86.6 percent;
water pressure of 16 PSI to 64.6 percent of the
customers from 49.4 percent, and; an increase in
the number of customers without water quality 7.5 Financial and Market Results
issues from 96.2 percent up to 98.0 percent.
7.5a Financial and Market Results
Results for strengthening the core competencies The revenue and net income performance of the
show a significant increase in the number of BWSI group is shown in Figure 7.5-1, while the
branches opened and operated as shown in Figure average revenue and net income performance per
7.5-11. BWSI started with 1 branch in 1988 and customer is shown in Figure 7.5-2.
now, it has 82 branches as of the end of 2022.
Developing water sources is a key core BWSI’s revenue and net income in Figure 7.5-1
competency with a total of 358 wells in 2022 from show the effect of taking intelligent risks. The
229 wells in 2018 (Figure 7.4-1). BWSI has also continuing increase in revenue and net income is a
started exploring alternative water sources like result of careful planning and flexible adjustments
surface water sources through the design, of revenue and cost targets.
construction, and operation of 6 WTPs in a span of Figure 7.5-1: BWSI’s Financial Performance
five years (Figure 7.4-9). Figure 7.5-13 shows the
increase in water source production from around 58 2500
million cubic meters in 2017 and now with around 2.10 B
82 million cubic meters. BWSI also prides itself in 2000 1.77 B
1.90 B

maintaining world-class NRW levels of less than 1.55 B

in Millions

15 percent as shown in Figure 7.5-14. 1500 1.31 B

1000
Figure 7.4-8 Total No. of Deepwells

500 259 M 255 M 291 M 417 M 368 M

400

350 0
2018 2019 2020 2021 2022
300
No. of Deepwells

REVENUE NET INCOME

250

200

150 BWSI’s respectable net income shows how it is

100 able to efficiently manage its operational costs and
administrative spending. As shown on the
50
following illustration, despite the larger operations
0
2018 2019 2020 2021 2022
of BWSI’s competitors, its Net Profit Margin
demonstrates its ability to yield higher returns for

46
its stakeholders. As far as 2022 is concerned, the earnings to its shareholders, as shown in Fig. 7.5-4,
ratio of Net Income to Total Revenues somehow 7.5-5, and 7.5-6. This steady improved
declined, this is despite the significant growth rate performance of BWSI over the five-year span is
of Gross Revenues for that year. The reason for this consistent with the operational thresholds thus set
was the sudden surge in power cost which by NWRB and other regulators including financial
negatively impacted on the profitability of the institutions.
company. Figure 7.5-4: BWSI’s Return on Asset vs. Water Utilities in the
Philippines
Figure 7.5-2: Net Profit Margin

16%
Primewater Manila Water Manila Water
14%
Infrastructure (East Zone (Non-East
BWSI Corp Concession) Zone) 12%
50% 10%
8%
40% 6%
4%
30% 2%
0%
20% 2018 2019 2020 2021 2022

BWSI WATER DISTRICT

10%
PRIMEWATER NATIONAL

0%
Threshold by NWRB: 12%

-10% Figure 7.5-5: BWSI’s Return on Equity vs. Water Utilities in the
Philippines
-20% 50%

2018 2019 2020 2021 2022 40%

Return on Equity

30%
Despite lower nominal topline and bottomline
numbers in comparison with its competitors, the 20%
returns provided by BWSI to its equity
shareholders shows how effective the company is 10%

in growing the organization and increasing 0%

shareholder value, as evident from its returns on 2018 2019 2020 2021 2022
asset, equity, and investment, and earnings per BWSI MANILA WATER
WATER DISTRICT PRIMEWATER
share over the past five years:
Threshold by financial institutions: 8%

Figure 7.5-3: BWSI’s Returns on Asset, Equity and Investment Figure 7.5-6: Earnings per Share Comparative
30%
18.00
25% 16.00
14.00
Earnings per Share

20%
12.00
15% 10.00
8.00
10%
6.00
5% 4.00
2.00
0%
2018 2019 2020 2021 2022
-
2018 2019 2020 2021 2022
ROA ROE ROI
BWSI MANILA WATER PRIMEWATER

In comparison with its peers in the water industry,

BWSI accounted for one of the highest returns and
47
The company maintains its liquidity position by Figure 7.5-10: Debt-to-Equity Ratio Comparative

ensuring it collects its receivables on a timely basis, 2.20

2.00
and observes wise spending on its operational
1.80
expenses, while striking a balance between funding 1.60

Ratio
its capital projects and area expansion through 1.40
prudent debt and equity financing. Shown in the 1.20
succeeding illustrations are the liquidity data of the 1.00
0.80
company, and how it empirically compares with its
0.60
competitors. All these are shown in Fig. 7.5-7, 7.5- 2018 2019 2020 2021 2022
8, 7.5-9, and 7.5-10 below. BWSI
Figure 7.5-7: BWSI’s Financial Liquidity Manila Water (Consolidated)

2.50 Primewater Infrastructure Corp

2.00

1.50 7.5 Financial and Market Results

Ratio

1.00
7.5a(2) Market Performance
0.50
The growth of BWSI, as a key service provider in
0.00 the country’s water industry, is shown in the
2018 2019 2020 2021 2022
Cash Ratio 0.32 0.38 0.35 0.34 0.24 succeeding illustrations.
Quick Ratio 0.72 0.83 0.84 0.75 0.66 Figure 7.5-11: BWSI’s Operational Branch Growth
Current Ratio 0.84 1.02 1.05 0.95 0.87
Solvency Ratio 2.32 2.22 2.28 2.34 2.35
80
Total New
Figure 7.5-8: Average Collection Period 70
No. of Operational Branches

2005 Benchmarking Average: 1.7 months 60

3.00 50
Ave. Collection Period

2.50 2.20 2.10 1.93

1.87 1.76 40
2.00
1.50 30
1.00
20
0.50
- 10
2018 2019 2020 2021 2022
0
1998

2000

2002

2004

2006

2008

2010

2012
2014
2016

2018

2020

2022
BWSI WATER DISTRICT
PRIMEWATER NATIONAL

Figure 7.5-9: BWSI’s Debt-to-Equity Ratio

Over the last two decades, as shown by Fig. 7.5-11
and 7.5-12, BWSI has grown almost ten-folds,
100% starting with 1 branch in Balibago, Angeles City,
90% Pampanga, it has increased its footprint
80%
55%
nationwide, signing up 82 franchises, operating
70% 57% 56% 57% 58%
close to 80 branches and serving almost 300,000
60%
Ratio

50% customers by the end of 2022.

40%
30%
20% 43% 45% 44% 43% 42%
10%
0%
2018 2019 2020 2021 2022

Debt Equity

48
Figure 7.5-12: Total No. of Billed Customers Figure 7.5-15: NRW, BWSI and Other Private Utilities
300,000 25.00%
20.00%
275,000 15.00%
10.00%
No. of Customers

250,000 5.00%
0.00%
Manila

% of NRW
225,000 Water
(East Clark Laguna Boracay
BWSI
Zone Water Water Water
200,000 Concessi
on)
175,000 2018 12.91% 11.40% 6.70% 16.70% 13.80%
2019 13.94% 10.40% 7.40% 18.00% 9.80%
150,000 2020 13.87% 15.50% 6.00% 17.90% 21.70%
2017 2018 2019 2020 2021 2022 2021 14.07% 12.80% 4.90% 20.00% 18.50%
2022 13.92% 12.20% 5.80% 22.30% 23.50%
For the past five years, Fig. 7.5-13 shows that
In summary, although BWSI has been in the water
BWSI has sourced between 50 million to almost 90
utility business for 65 years now, it continues to be
million cubic meters of clean, potable water from
very competitive and is slowly expanding its
its deep wells and treatment plants. Moreover, the
market share due to its ability to take on intelligent
company has maintained NRW levels consistent
and calculated risks and its capability to
with acceptable local and international standards as
continually innovate. But given its successes, it
shown Fig. 7.5-14.
continues to recognize that there are still a lot of
Figure 7.5-13: BWSI’s Production and Consumption Data (Water opportunities for improvement that must be
Supply in Cubic Meters)
capitalized on.
BWSI also recognizes the fact that the playing field
80 has become more volatile, uncertain, complex, and
in Million Cubic Meters

in many instances, ambiguous which necessitates

taking on more risks to ensure sustainability over
the long term.
60
BWSI continues to strive to improve its operational
and financial performance. BWSI, as described by
former President Panlilio, is a company that is
40
2018 2019 2020 2021 2022 “built-to-last.” That said, the leadership and all the
Production Consumption
employees need to build on all their
accomplishments, milestone upon milestones and
Figure 7.5-14: NRW Comparison, BWSI, Phils., SEA ambition upon ambitions to prove to all their
stakeholders that this company will more than
37% achieve and realize all the expectations about its
32%
future – a future that is built and created from hard
work and passion to excel and innovate.
% of NRW

27%

22%

17%

12%
2018 2019 2020 2021 2022

Southeast Asia NRW % Philippines NRW %

BWSI NRW %

49