CIAC STRATEGIC PLANNING WORKSHOP 2014

December 09 and 10, 2014

Green Canyon, San Vicente Road,
Clark Special Economic Zone (Sacobia)

INTRODUCTION

Being in charge with setting the direction of Clark International Airport Corporation (CIAC)
towards the attainment of its vision, mission, and goals, the Corporate Planning Department
organized its annual planning activity – the Strategic Planning Workshop – on December 09
and 10, 2014.

With the objective of aligning and appreciating all the business management tools – Quality
Management System, Departmental / Office Scorecards, Philippine Quality Award, GCG-
Performance Evaluation System, and Strategic Performance Management System – being
used by CIAC on the plans and programs of the departments and offices, CorPlan tapped the
expertise of the Development Academy of the Philippines (DAP). It was also the main intent
of the team to obtain the strategic directives of the new CIAC President and CEO as well as
to come up with action plans pertaining to the aforesaid directives.

The workshop was facilitated by DAP consultant, Mr. Eduardo Fenix, and assisted by two (2)
DAP officers – Ms. Maria Teresa Agustin and Mr. Jason Tabinas. It was attended by CIAC top
management, department managers, assistant managers, office managers, selected
supervisors, and Samahan ng mga Manggagawa sa DMIA president.

STRATEGIC DIRECTIVES

President and CEO Emigdio P. Tanjuatco III presented the strategic directives for CIAC
emphasizing the objective of making CIAC relevant in the Philippine economy. Keeping CIAC
cost competitive and creating a stable revenue base, building customer loyalty and
satisfaction to create a demand, and striving for operational excellence in all areas of the
business were the highlights of P&CEO’s directives (refer to Annex A for the full detail of the
strategic directives).

CIAC OPERATIONS

Current operation and performance of Clark Airport was discussed by Vice President for
Commercial and Business Development Group Darwin L. Cunanan. Air service is 122 flights
per week; projected annual passenger growth rate for year 2014 is -28.15%; and total
revenue as of September 2014 increased by 10% compared to same period of year 2013.
The strategic initiatives of P&CEO were reiterated in the presentation and the drivers and
business tools being utilized by CIAC were given emphasis.

NOTE: All Group Outputs are raw and unedited.

 DAY 1: WORKSHOP PROPER

A. Strategic Planning Requirements from the Governance Commission for GOCCs’s

Performance Evaluation System (GCG-PES) and Strategic Planning Category to the
Business Excellence Criteria

The basics of the Strategic Planning Framework such as the definition of strategy,
strategic planning, and strategic planning model were presented.

Definitions of vision, mission, objectives, key results areas, and performance indicators
(VMOKRAPI) were revisited as well as the concepts of strategies, programs, activities,
tasks, and resources (SPATRES).

In addition, the facilitator gave a lecture on the concept of strategy map, strategic
perspectives (outcomes and drivers), strategic themes, internal process value chain,
logical framework, strategic shift, performance scorecard elements, performance
scorecard, strategic initiatives, and PES & SP Model.

The facilitator discussed the steps in preparing the GCG-PES – 1) knowing your
organization; 2) building your strategy; 3) establishing success indicators; 4) crafting
strategic initiatives – as well as the strategic themes, outcome perspectives and driver
perspectives, and internal process value chain.

The planning processes being practiced by companies awarded with Philippine Quality
Award – Performance Excellence Criteria (Category 2 Strategic Planning); and with
Quality Management System Certification (ISO9001 Clause 5.4 Planning) were
thoroughly explained. The concept of Strategic Planning and Management Model of Dr.
Eduardo A. Morato, Jr. – the VMOKRAPI-SPATRES – was reviewed.

B. Overview of Strategic Performance Management System

The facilitator explained the linkage of the Balanced Scorecard (BSc) to the PES. It
creates an effective management tool for establishing and maintaining vital
communication link between supervisor and employee and for objectively evaluating
and improving employee job performance as well as organizational performance.

The concept of Strategic Performance Management System (SPMS) was discussed. To

ensure the effective development and implementation of the system, the key players and
their roles were highlighted. The key players include SPMS Champion (Agency Head),
Performance Management Team (PMT), Head of Office (Director IV or equivalent),
Division Chief or equivalent, and Individual employees.

The four-stage cycle of SPMS begins with performance planning and commitment,
performance monitoring and coaching; performance review and evaluation; and
concludes with performance rewarding and development planning. Upon completion of
the cycle, the key players then return to the first stage.

NOTE: All Group Outputs are raw and unedited.

 Guided by the facilitator, the Office Performance Commitment and Review Form (OPCR)
and Individual Performance Commitment and Review (IPCR), Major Final Outputs Table,
Target Setting, Steps in formulating OPCR, Steps in formulating IPCR, Data Sources of
Targets, and Monitoring of Accomplishments were discussed.

C. Workshop: Defining the Strategy Development and Implementation Process of CIAC

The different types of planning approaches and requirements for CIAC – on Strategic
Planning Category of PQA Criteria for Performance Excellence Framework (Strategy
Development and Strategy Implementation), ISO9001 Clause 5.4 Planning, CIAC Quality
Planning, and CIAC Planning Process – were explained to the participants.

The facilitator discussed the similarities, differences, alignment, and linkages of the
aforesaid planning approaches.

A sample template (as shown below) that can be used in the strategy development and
implementation process was shown and recommended to the attendees.

D. Workshop: Revisiting the Vision, Mission, Values, and Goals

Guidelines in preparing the vision, mission, values and goals were presented by the
facilitator:

NOTE: All Group Outputs are raw and unedited.

 Definition Guideline
Vision identified picture of the  identify the time period of the vision (5-year period);
organization in the  deadline must be long enough to cover the
future; organizational aspirations;
 must not violate the essence of the mission and core
reflects the long-term values
strategic direction that  must be challenging, but attainable
the organization shall  inspires and creates a sense of destiny
pursue

Mission basic purpose of being  identify stakeholders

of the organization;  clarify stakeholder needs and how you satisfy them
 does the mission statement reflect value, inspiration,
the reason it was plausibility, specificity?
created for  does the mission reflect long or short term goals?
 is it an important representation of your organization’s
culture

Core Values the principles that form the foundation on which the organization performs its work

Goals apply 6 R’s of Objectives: Reach, Responsiveness, Ratings, Returns, Revenues, and
Recognition

E. Workshop: SWOT Analysis and Stakeholder Analysis

The facilitator presented a consolidated SWOT Analysis of CIAC based on the inputs
submitted by the participants prior the planning workshop. The participants were
divided per group – Office of the President & CEO, Office of the Executive Vice President
& COO, Office of the VP for Airport Operations & Management Group, Office of the VP
for Commercial & Business Development Group, Office of the VP for Finance and Admin
Group, and Office of the AVP for Strategic Development and Corporate Management
Group.

Participants prepared a SWOT Matrix and Action Plan based on the consolidated SWOT
Analysis. Outputs of the participants are shown below:

Office of the President & CEO, Office of the Executive Vice President and COO:

STRENGTHS WEAKNESSES
Objective: 1. CRK runway can accommodate 1. Lack or Marketing Plan
WORLD CLASS FACILITIES A380 2. Pending procurement of
2. Strategic Location of CRK NAVAIDS
3. Government support
4. Passenger terminal capacity at 4M
OPPORTUNITIES S–O W–O
1. Catchment area 1-2 , 2-1, 3-2, 3-3, 3-4 1-1 Formulate and implement a
2. ADPi Feasibility Capitalize on strengths 1, 2, 3, 4 to strategic marketing plan to
3. DOTC’s plan for CIAC to penetrate & maximize catchment area realize Opportunities 1-3
become the LCC Hub & make CIAC the LCC Hub. 3-2 Status report on DOTC-
funded procurement of NAVAIDS.
STRENGTHS WEAKNESSES

NOTE: All Group Outputs are raw and unedited.

 THREATS S–T W–T
1. Expanding capacity of 1-1, 1-2, 2-3 1-1 Include in the marketing plan
other airports in the Tap our 1-2 strengths to offset the a strategy that addresses the
Philippines threat of expanding capacity of other impact of competitors on CRK
airports in the country. operations; convert into allies.

STRENGTHS WEAKNESSES
1. The current CIAC president is a Absence of marketing plan
Objective: trustee of the Philippine president
AIR SERVICE GROWTH and the new top leadership has
(Increase passenger and deep sense of integrity and
cargo volume and accountability
destination) 2. Approved security manuals and
programs in compliance with ICAO
17
3. Established networks and good
rapport to concerned agencies
(OTS, PNP-AVSEU, airline, catering
and cargo operators and etc.)
OPPORTUNITIES S–O W–O
1. The future 1-1 Use the linkage of the P/CEO for 1-1/ 2-1 Formulate and
development of CRK securing the assistance of the national implement a strategic marketing
and increase in airport government plan
terminal capacity 2-3 Use established networks to invite
2. Existing bilateral air more airlines to operate
agreements

THREATS S–T W–T

1. Possible suspension/ 1-3 Use the networks to convince 1-1 Formulate and implement a
cease of operations of airlines to stay strategic marketing plan
some airlines at CRK

Office of the VP for Airport Operations and Management Group:

STRENGTHS WEAKNESSES
Objective: Safe/secured location and security Lack of ASD manpower
SAFETY / SECURITY compliant airport
(and environmental
excellence)

OPPORTUNITIES S–O W–O

Increasing number of Clark Visible security improvements Hiring qualified security officers
investors and hosting of measures and facilities and buy appropriate equipment
foreign and local events

THREATS S–T W–T

New terror group- ISIS
• Layered security strategy
• Inter-agency arrangements
security
Capability enhancement:
for • training of personnel (intel
surveillance and profiling
skills)
• security partnership with
other agencies

STRENGTHS WEAKNESSES

NOTE: All Group Outputs are raw and unedited.

 Objective: Availability of space and Terminal 2 Limited to the government
Thematic airport complex Master Plan by ADPi funding
design, open lobby, airport
curb side and check in line
baggage system

OPPORTUNITIES S–O W–O

All design requirement for
thematic airport can be
easily incorporated to the
new terminal 2 design
THREATS
Lack of support from
national government
Incorporate the thematic design to the Explore external sources of
Master Plan funding or joint venture
S–T W–T
Explore partnership (PPP) Availability of external source of
funding

STRENGTHS WEAKNESSES
Objective: Formulated manual (80% 1. Absence of survey (10%
Certified Aerodrome accomplished) accomplished)
2. Absence of Safety
Management System (SMS)
(10% accomplished)

OPPORTUNITIES S–O W–O

Compliance with CAAP
requirements and ICAO
Standards
Continue the formulation of Aerodrome
Manual until completed
 Constant coordination with
CAAP regarding conduct of
survey
 Coordinate with SEMO for
the creation of SMS

THREATS S–T W–T

Stoppage of airport 100% completion of Aerodrome  Device an alternative
operations Manual measure to accomplish the
aerodrome survey to be
formed by a private surveyor
 Hire a consultant

Office of the VP for Commercial & Business Development Group & Office of the AVP for
Strategic Development and Corporate Management Group:

STRENGTHS WEAKNESSES
Objective: 1. Professional employees with 1. Lack of infra, funding,
Culture of Superior Service relevant education, experience and structures and facilities to
(Business Friendly skills provide public land transport
Environment) 2. Airport proximity to Northern and system
Central Luzon with a population of 2. Lack of local and
23M international
3. Availability of land partnership/exposure with
locators
3. Lack of destination and
choice of airline

STRENGTHS WEAKNESSES

NOTE: All Group Outputs are raw and unedited.

 OPPORTUNITIES S–O W–O
1. Build customer loyalty  Provide professional service to our Make CIAC relevant so we may
and satisfaction to clients obtain the support of the
create a demand for national government for our
our services  Provide higher level of customer CAPEX requirements and policy
2. Increase local and satisfaction directives
international activities
that will benefit the  We are able to position Clark as a
economic gateway to Northern & Central
development of the Luzon passengers between Asia,
community Europe and America considering
3. Existing ties with we have a population of 23 million.
community leaders
and stakeholders  Develop direct passenger and
cargo connections to and from the
airport

 Attract the entry of new airlines or

the expansion of existing routes by
offering 5th Freedom Flights as
allowed under President Aquino’s
EO 29 (2011)

 With the available land area to

develop a world-class
infrastructure, locators may also
carefully plan the development of
additional taxiways and utilities,
simultaneous with land parcelation

THREATS S–T W–T

1. Political environment  Encourage more airlines to operate  To become self-sufficient and
(national) in CRK by providing incentives and independent from national
2. Prioritization of other readily available support facilities funding , we have to increase
airports business by increasing
3. Continuity of projects  Implement succession planning efficiency and increasing
4. Credit and liquidity and implement standardization of both aeronautical and non-
shortages processes to have continuity of aeronautical activities
5. Competition from services
other airports
 Convince national government
(supported by data and
performance statistics) that CIAC is
relevant in providing airport
transport services within its
catchment areas and we have
available land to generate and
support additional business
opportunities

Office of the VP for Finance and Admin Group:

NOTE: All Group Outputs are raw and unedited.

 STRENGTHS WEAKNESSES
Objective: 1. Increased airport terminal capacity 1. Absence of marketing plan
Economically self-sufficient of 4 million passengers annually; (need for a clear definition of
& contributing to the 2. Workforce -Good knowledge, skills what we do, who we are,
national economy and attitude (KSA) on delivering what do we have, what do
department mandate and we really need)
programs 2. Incurrence of Cash Shortfall
3. Additional revenues generated
from disposal of the unserviceable
properties.
4. Huge areas available that can be
developed (jurisdiction over
2366.9 has. of the Clark Civil
Aviation Complex (CCAC), source of
aeronautical and non-aeronautical
fees and lease revenues)
OPPORTUNITIES S–O W–O
1. Possible amendment How can Strengths be used to exploit How can weaknesses be
of the Executive Opportunities? overcome to exploit
Order No. 64 (1-5,6,7) Opportunities?
(particularly Strategy: Increase airport terminal (1-5)
addressing the issues capacity of 4 million passengers Strategy: Define the market to be
related to annually able to come up with the
membership in the appropriate marketing
Board, land (4-1) strategies.
ownership and Strategy: Utilize the available land
revenue sharing area. (2-3,4)
2. Privatization of the Strategy: Make use of the
CIAC financial support given by the
3. Full support of DOTC national government.
on the funding of
CIAC projects.
4. Financial Grants from
the Nat’l
Government to
improve airport
facility and
equipment
5. Increasing number of
Clark Investors
6. Airport/Traffic
Congestion – NAIA
7. Absorb future growth
in Philippine air
traffic given CRK’s
proximity to Manila
and NAIA’s inability
to expand long-term
capacity
8. DOTC’s plan of
making CIA the low-
cost carrier hub of
choice
STRENGTHS WEAKNESSES
THREATS S–T W–T

NOTE: All Group Outputs are raw and unedited.

 1. BCDA and CDC not How can Strengths be used to How can Weaknesses be
fully implementing the counteract Threats? overcome to counteract Threats?
provisions of EO 64. (1-5) (2- 4)
2. Absence of a specific Strategy: Intensify marketing/ Strategy: Intensify collection
law or Republic Act to promotional activities efforts
ensure the stability of
CIAC and to strongly
implement or fast track
its development.
3. Incorporation of
terminal fee to airline
ticket vis-a-vis daily
cash inflows to CIAC
4. Capacity to pay and/or
willingness to pay of
locators,
concessionaires, airline
companies
5. Decreasing number of
passengers (terminal
fee collection)

F. Workshop: Review of Strategy Map

The CIAC Strategy Map was shown to the participants.

As instructed by the facilitator, the strategies from the SWOT analysis were written on
paper and posted on the matrix of scorecard perspectives to form the strategy map.

NOTE: All Group Outputs are raw and unedited.

 Moreover, the strategies in the strategy map will be on top of the strategies identified in
the strategy map approved by GCG.

During the workshop, the vision, mission, and core values of CIAC were proposed to be
revised. The proposed changes on the aforesaid items are shown below:

Existing
Vision To be the premier world class airport of
the Philippines by 2020, the secondary
airport by choice by 2017, and a
competitive aviation services center in
the Asia Pacific Region by 2015
Proposed
To be a premier world-class aviation complex in
the Philippines by 2020. The airport of choice by
2017; and a competitive aviation services center
in the Asia Pacific Region by 2015.

Mission To achieve sustained growth, We shall manage and operate a world-class

development of the Clark Civil Aviation aviation complex to achieve sustained growth,
Complex, we shall manage and operate development and competitiveness with impact
world-class air transportation facilities on host communities.
that provide the highest standards of
customer service. We shall ensure the
convenience, utmost safety and
security of our passengers, while
maintaining lasting partnerships with
our business stakeholders and
supporting the socio-economic
development of our host communities.
Core  Accountability,  Accountability,
Values  Integrity,  Integrity,
 Excellence,  Excellence,
 Commitment  Commitment,
 Teamwork,
 Inclusive,
 Corporate Citizenship

Objectives to attain the CIAC vision were identified by the group during the workshop.
Details are shown below:

TIMING VISION OBJECTIVES

Year 2015 Competitive Aviation  Culture of superior service: Business friendly
Services Center environment
 Ample, talented, skilled Human Resources
 Safety, security and environmental excellence
 Aeronautical and Non-Aero revenue
 Facilities and service improvement

TIMING VISION OBJECTIVES

Year 2017 Airport of Choice  Aerodrome Certified
 World class facilities
 Effective and economical approach and departure

NOTE: All Group Outputs are raw and unedited.

 patterns
 Convenient and efficient
 Transportation accessibility and connectivity
 Various business establishments within the airport
terminal
 Competitive business incentives considering ASEAN
integration
 Strong partnership with the public and private sector
and linkages with other stakeholders

Year 2020 A premier world-class  Air service growth: Increase passenger and cargo volume
aviation complex in the and destination
Philippines  Economically self-sufficient and contributing to the
national economy
 Thematic airport complex design: Open lobby airport,
curb side and check-in in-line baggage system
 Service above par
 Numerous international certifications and recognitions

The facilitator presented a template (as shown below) that participants used to plot their
inputs on setting objectives, key results areas, and performance indicators.

CIAC GOALS 2015

VISION OBJECTIVE KRA PI / MEASURE
2015 Ample,  Seamless pooling of Human 1) 70% or more employed
Competitive talented, Resources within the CIAC are
Aviation skilled human residents of the region
Services resources 2) ___% of employees are
Center multi-skilled

 Effective, efficient and responsive 1) ___% rating of Training

Training Program Program

 Availability of ready-now and

ready-later workers

 Matching of employee profile Performance Skills Audit:

with work requirement ___% of compliance

The proposed addition in the CIAC Core Values include team work, corporate citizenship,
and inclusive. Descriptions of each core value are shown below:

VALUE DESCRIPTION
1) Team Work o Building each other’s strengths
o Celebrate accomplishments
o Work together by listening and communicating effectively
o Help each other grow professionally
o Provide feedback in a constructive and caring manner
2) Corporate o We put value in the place that we work
Citizenship o We are committed to contributing by providing leadership in economic
development and social responsibility

NOTE: All Group Outputs are raw and unedited.

 3) Inclusive o Inter-action with professionalism and pride
o Make our airport a welcome place for employees, stakeholders and
visitors

DAY 2: WORKSHOP PROPER

G. Workshop: Setting of Short and Medium Term (1-3 years) Objectives, Key Performance
Indicators and Targets

CIAC GOALS: YEAR 2015

GROUP VMVQ OBJECTIVE KRA PI / MEASURE
Table 1 Competitive Culture of superior Excellent service: 90% satisfactory rating
Aviation service: Business friendly - Strong
Services Center environment partnership with
stakeholders
- Customer
oriented service

Financial o ____ Accounts

sustainability Receivable Turnover
(Improved financial o Number of new
performance) lease agreements
signed
o Number of
concessionaire
contracts signed
o Increased number
of airlines operating
at CRK
o Increased volume of
passengers

Improved airport Increased number of

facilities and equipment and facilities
equipment Improved category
ratings
Compliance with
international
standards

Table 1 Competitive Ample, talented, skilled

Aviation Human Resources
Services Center

Table 2 Competitive Safety, security and

Aviation environmental excellence
Services Center

NOTE: All Group Outputs are raw and unedited.

 To comply to:
o ICAO Annex 17 Safeguard on Civil Attained Standard and
Amendment 14 – Aviation Against recommended Practices
Aviation Security Acts of Unlawful
Manual Interference Established procedures
o National Civil and policies concerning
Aviation Security Compilation of the airport security and
Program (NCASP) standards and safety.
o Airport Security recommended
Program (ASP) practices Updated database for
o Airline Operators aviation security and
Program safety related
o Cargo Facility incidents /accidents
Program
o ICAO Airport Services Approved documented
Manual Part I – standard and operating
Rescue and Fire procedures
Fighting
o ICAO Airport Services Zero Safety Discrepancy
Manual Part 5 – Notice
Removal of disabled
aircraft
o ICAO Airport Services Minimize Operational
Manual Part 7 – Hazard Report to
Airport Emergency acceptable international
Planning Standards
o National Fire
Protection Zero Notice of Violation
Association Standard
(i.e. RA 9514- Fire
Code of the
Philippines)
o ICAO Annex 19 –
Zero Notice of Violation
Safety Management
o ICAO Doc. 9858 –
Safety Management
Zero Notice of Violation
Manual
CAAP AC AN/RSP—01-
Establishment of Local
Runway Safety Team and
runway Safety Program
for Aerodrome Operators
by Mar 2015
CAAP CARANS Part 1-
Aerodrome and Air
Navigation Service Safety
Oversight by Mar. 2015
CAAP AC
139-05-A – Establishment
of Wildlife Hazard
Management at Airports
by Aerodrome Operators
by Mar. 2015
CAAP AC 139-06-A Land
Use at or near the
Airports by Jan 2016

NOTE: All Group Outputs are raw and unedited.

 GROUP VMVQ OBJECTIVE KRA PI / MEASURE
CAAP AC 139-03-A
Ground Vehicle
Operations at
Aerodromes by Mar. 2015

CAAP AC 01-004 –
Acceptable Safety
Management System by
July 2016

To comply with the

Occupational Safety and
Health Standards of the
DOLE by January 2016.

To comply with the Protect ion and Zero Notice of Violation

General Conditions of the mitigation of the
Environmental airport adverse
Compliance Certificate impacts on
(ECC) by January 2016. community health,
welfare and
environment

CIAC GOALS: YEAR 2017

GROUP VMVQ OBJECTIVE KRA PI / MEASURE
Table 2 Airport of Aerodrome Certified
Choice
To complete and rectify Secured and Safe 1. 100% compliance to
deficiencies in the Airport Operations deficiencies in the
submitted Aerodrome complying to Aerodrome Manual.
Manual to CAAP International and
National Standards 2. Aerodrome
and Recommended certificate issued.
Practices
To establish measures in (Audit result)
implementation

Table 3 Airport of World class facilities CRK has bigger o 9.97% annual
Choice (Business/Executive share of passengers increase in
Lounges; courtesy, from its catchment passenger traffic
helpfulness of airport area coming from CRK’s
staff (excluding check-in Happy passengers catchment area
and security);
restaurant/eating o At least 90%
facilities; shopping quarterly passenger
facilities; computer, satisfaction rating
telecom, e-facilities;
availability of clean,
family rooms and gender
sensitive washrooms;
comfortable waiting/gate
areas)

GROUP VMVQ OBJECTIVE KRA PI / MEASURE

Table 3 Airport of Effective and economical More airlines are Publication and

NOTE: All Group Outputs are raw and unedited.

 Choice approach and departure induced to operate Implementation of
patterns at CRK recognizing STAR / SID
savings on fuel cost

CIAC GOALS: YEAR 2020

Table 4 A premier Air service growth: 1. New o New Airlines (one
world-class Increase passenger and destinations: North American Carrier by
aviation cargo volume and Americas (Hawaii, 2015)
complex in the destination Guam/Saipan,
Philippines by Vancouver, Seattle,
2020 San Francisco, Los
Angeles)
2. Increase
Passenger Loads
(CRK Catchment
areas ; North Metro
Manila, Regions 1,
2, 3, CAR)
3. Increase Cargo
Volume (Time
sensitive exports
from SBMA, CDC,
BEPZ, Poro Point,
Bagiuo EPZ
Locators)
Table 4 A premier Economically self- New MRO locator o New MRO with 200
world-class sufficient and that will employ at employees.
aviation contributing to the least 200
complex in the national economy employees.
Philippines by
2020
Table 5 A premier Thematic airport complex 1. Green 1. Christmas Theme
world-class design: Open lobby Christmas year round
aviation airport, curb side and Airport of the (lanterns, activities,
complex in the check-in in-line baggage world uniforms, food,
Philippines by system music)
2020 2. Use of Solar Panels
to supply electricity
to the terminal.
3. Use of recycled
materials for the
Christmas theme
designs and other
projects at the
terminal.
4. Year round
campaign in
environmental
protection (waste
segregation and
proper recycling
and disposal).

GROUP VMVQ OBJECTIVE KRA PI / MEASURE

2. Open Lobby by 1. Coordinate with
conducting airlines, revise

NOTE: All Group Outputs are raw and unedited.

 baggage departure lobby lay-
scanning out, install baggage
immediately at conveyor system
the curbside by that begins at
2020. curbside, formulate
and implement
Open Lobby
procedures that will
include the
corresponding
update on check-in
procedures to
include

H. Setting of Action Plans and Strategic Initiatives, Tasking on Draft Business Plan and
Initial Marketing Plan

After identifying the key results areas and performance indicators of the set objectives,
the facilitator discussed the guidelines in preparing action plans. The concept and
application of Systems Tree in doing a detailed plan were explained and recommended to
the group as well as the usage of Gantt Charts. Illustrations on the application of the
said planning tools are shown below:

NOTE: All Group Outputs are raw and unedited.

 Applying the System Tree and Gantt Chart, participants prepared action plans and
strategic initiatives based on the set objectives. Outputs of each group are illustrated on
the following tables:

Office of the President & CEO, Office of the Executive Vice President and COO:

ACTION PLAN
INITIATIVE: Formulate a strategic marketing plan
Activity/Task Output Responsibility Schedule Resources
1. Determine the products/ o Well-defined Marketing Jan 2015 Inventory of
services that we offer products/ Department facilities available
services for lease rental and
other services
offered
Lease rates
provided by CDC
Activity/Task Output Responsibility Schedule Resources
2. Study the market : o Completed Marketing Jan 2015 Data and other

NOTE: All Group Outputs are raw and unedited.

 • Airlines relevant and Department and statistics
• Service providers detailed Corporate Planning
• Passengers (tourists, profile of the Department
OFWS, business travelers target market
etc.)
segments
• Concessionaires and
locators
• Competitors
3. Identify and set the target o Identified/ MD and CPD Feb 2015 Data and other
market classified statistics
market
4. Determine o Product/servi MD, CPD, March Market profile and
product/service mix ce mix ComRel 2015 competitor
including CSR product/ service
for OFW mix
families
5. Determine product/ o Product/servi MD and CPD April 2015 Market profile and
service price ce price competitor pricing

6. Formulate promotions o Promotion MD June 2015 Personnel and

strategies strategies financial resources

ACTION PLAN
INITIATIVE: Make CIAC a Low Cost Carrier (LCC) Hub
Activity/Task Output Responsibility Schedule Resources
1. Determine the required Identified required EMD, AOD and Feb 2015 Input from the
facilities facilities CPD LCCs

2. Build required facilities Constructed necessary EMD, Finance June 2015 financial
additional facilities
3. Promote and sell facilities LCCs (at least 1) MD Feb 2015 Financial and
(marketing plan) utilizing CIAC as their personnel
hub

Office of the VP for Airport Operations and Management Group:

ACTION PLAN
INITIATIVE: Rationalization of security deployment
Activity/Task Output Responsibility Schedule Resources
1. Provide for training Completed training HRD, ASD 1st Availability of
Quarter CIAC funds
2015
2. Establish a new Efficient guarding ASD 1st Availability of
deployment scheme system Quarter CIAC funds
2015
3. Facility audit Identification of ASD 2nd Assistance from
needed improvements Quarter OTS, PNP and
to security facilities 2015 AVSEC Group

ACTION PLAN

NOTE: All Group Outputs are raw and unedited.

 INITIATIVE: Certified Aerodrome
Activity/Task Output Responsibility Schedule Resources
1. Completion of Aerodrome 100% Completion Safety, AOD, ESD, August
Survey and EMD 2015 Adequate fund
for private
surveyor and
CAAP personnel
a. Allocate budget and
provide requirement
b. Follow-up
implementation of
survey to CAAP
c. Device an alternative
measure for the
conduct of
aerodrome survey
2. Safety Management 100% Completion Safety, AOD, ESD, August Adequate funds
and EMD 2015
See SEMO Balanced
Scorecard

ACTION PLAN
INITIATIVE: Thematic airport complex design, open lobby, airport curb side and check-in line baggage system
Activity/Task Output Responsibility Schedule Resources
1. Creation of thematic
design concept CIAC funds
a. Gathering of design Thematic design EMD January
ideas from CIAC 2015 CIAC funds
concerned
departments
3. Present to management Approved concept EMD February
for approval 2015
4. Incorporate the design Approved detailed Design and build July 2015
design contractor 1.2B (DOTC fund
source)

Office of the VP for Commercial & Business Development Group & Office of the AVP for
Strategic Development and Corporate Management Group:

ACTION PLAN
STRATEGY: Attract New Airlines
INITIATIVE: CIAC to be member of Air Panel, push 5th Freedom Rights
Activity/Task Output Responsibility Schedule Resources
1) Conduct research on Determine which CorPlan, 1st quarter
airlines and foreign airlines and foreign Marketing, AOD
countries seeking 5th countries to target for
freedom rights 5th freedom rights
a. Prepare list of airlines List of airlines Marketing, AOD January
th
requiring 5 freedom 2015
rights to fly CRK
b. Identify potential List of airlines CorPlan January
airlines based on route 2015
development

NOTE: All Group Outputs are raw and unedited.

 2. Advocacy campaign Secure the support of Marketing, CCO, 2nd
CRK stakeholders SCD, Board, OP, quarter Funding for
and other meetings and
executives consultations,
media ads
Activity/Task Output Responsibility Schedule Resources
a. Conduct Resolution of support Marketing, CCO, June 2015
stakeholder’s forum from stakeholders (e.g. SCD
on the significance LGUs, travel agencies,
of 5th freedom rights chamber of commerce,
for Northern and HARPS, locators,
Central Luzon various business
groups)
3. Secure approval from the CRK enjoys 5th OP 3rd Qtr
President of the Freedom Rights 2015
Philippines for
Implementation
a. Prepare all Complete Marketing, August
supporting Documentation CorPlan 2015
documents to be
presented by the
PCEO to Pnoy
4. Upon Pnoy’s approval, CIAC membership and OP
CIAC participates in Air participation in ASA
Services Agreement panel
(ASA) negotiation

Office of the VP for Finance and Admin Group:

ACTION PLAN
INITIATIVE: Utilize the available land area
Activity/Task Output Responsibility Schedule Resources
1) Clarificatory amendment
to EO 64

Make representation to OP- Amended EO64 Top January –

OES and seek early issuance to Management March
clarify jurisdiction of CIAC over and the 2015

NOTE: All Group Outputs are raw and unedited.

 2,367- hectare CCAC to concerned
include full authority to lease agencies
land and collect lease income.

ACTION PLAN
INITIATIVE: Make use of the financial support given by the national government
Activity/Task Output Responsibility Schedule Resources
1) Identify the projects to be
funded by DOTC being our
mother agency
a. Coordination with the Bus-Dev and Jan-March
concerned other concerned 2015
department regarding departments
their projects
proposals

b. Seek approval of CIAC Approved projects Top April 2015

Board of Directors Management
c. Submit to DOTC for its Top May 2015
approval Management
d. Procurement of said Implemented projects BAC, End User June 2015
projects – onwards

I. Presentation on Business Development Committee

VP-Cunanan presented to the group the current tasks of Marketing Department. The
tasks include: Contract Processing, Contracts Monitoring, Locators/Concessions
Management (42 Locators & 30 Concessionaires), Participating in Travel/Tourism
Events/Conferences, and Preparation of Company Collaterals

Revenue sources for CIAC – aeronautical and non-aeronautical – were discussed. It was
explained that Marketing Department needs assistance such as directives from the top
management on marketing priorities, manpower complement, and budget for airport
and airline promotions.

The development and implementation phase of Civil Aviation Complex Master Plan and
establishment of Terminal II (dedicated for Low Cost Carriers) were also explained to the
group.

J. Critiquing of Balanced Scorecards of CIAC Departments and Groups

Due to time constraint, CIAC Departmental Scorecards were not covered in the workshop.

K. Review of Group/Departmental Mandates Identified Opportunities for Improvement

The Group / Departmental Mandates were not also reviewed due to time constraint.

L. Affirmation of Commitment

NOTE: All Group Outputs are raw and unedited.

 DAP Officer, Ms. Agustin, presented the Program Integration of the Strategic Planning
Workshop. Participants’ expectations were met and highlights of the program were
reviewed. Guided by the facilitator, the group were able to come up with direction
setting, formalized strategy development and implementation process, strategic
planning, and commitment setting in the workshop.

Moreover, Ms. Agustin reiterated the tasking of the departments and offices based on
the agreed strategic focus. Said tasking is shown below:

GROUP FOCUS AREA

Airport Operations  Safety, security (and environmental excellence)
 Aerodrome Certified
 Thematic airport complex design: Open lobby airport, curb side and
check-in, in-line baggage system
 Effective and economical approach and departure patterns (deferred
as low priority)
Finance and Admin  Air service growth: Increase passenger and cargo volume and
destination
 Economically self-sufficient and contributing to the national
economy
Commercial Business  Culture of superior service: Business friendly environment
Development  Ample, talented, skilled Human Resources
OP / EVP / Legal  World class facilities
 Air service growth: Increase passenger and cargo volume and
destination

The participants were able to prepare the following outputs during the planning activity:
a. Formalized strategy development and implementation process
b. Proposed revision of vision, mission, values and goals
c. SWOT Analysis
d. Defined Strategy Map
e. Strategic Objectives, Key Performance Indicators, and Targets
f. Strategic Initiatives
g. Tasking on Draft Business Plan
h. Identifying Opportunities for Improvement on Organizational Structure

According to Ms. Agustin, there had been attunement and alignment of expectations
with the items presented and activities conducted in the workshop. As a result, the
participants are engaged with the thrust of the corporation in attaining its vision,
mission, and objectives.

Activities on individual and on organizational affirmation were facilitated by Ms. Agustin.

For the individual affirmation, sending of notes to co-participants was done. On the
organizational affirmation, signing of a commitment board stating the proposed vision,
mission, and core values of CIAC was conducted. Aforesaid activities concluded the two-
day workshop.

NOTE: All Group Outputs are raw and unedited.

 PENDING ITEMS

As the organizer of the Strategic Planning Workshop, the Corporate Planning Department
assessed the course and outcome of the planning activity. The facilitator was able to
discuss and align the different planning approaches used by CIAC. Guidance on the
strategy development, implementation, and monitoring were also provided. The
attendees especially the top management had actively participated in the discussion and
shared their inputs in the workshop. In spite of these, there are items that still need to
be finalized.

Listed below are the pending items that need to be discussed, finalized and approved:
1. Proposed CIAC Vision, Mission, and Objectives
2. The SWOT Matrix
3. The Strategic Initiatives (Action Plans)
4. The Goals (VMOKRAPI) for Year 2015 to 2020
5. Tasking of departments and offices based on the focus area
6. Completion of the KRA and PIs. Preparation of data on the PIs
7. The departmental mandates and scorecards
8. Inclusion of the Directives of CIAC President and CEO on the strategic initiatives,
plans, and programs of the departments and offices

RECOMMENDATION

To finalize and approve the aforesaid pending items, it is recommended that a post
strategic planning activity be conducted immediately such as a plenary session. It is
important to note that the outputs from the planning activity specifically the directives
from the President and CEO and SWOT Analysis are very essential in preparing a
complete and comprehensive CIAC Business Plan. A cross-functional team is proposed to
be formed as participants in the proposed activity.

Prepared by:

KATHLEEN G. DIZON
Economic & Research Officer,
CorPlan Department

Reviewed by: Noted by:

MELISSA D. FELICIANO DARWIN L. CUNANAN, ECE

Assistant Manager, AVP for Strategic Dev’t & Corp. Mgt.

NOTE: All Group Outputs are raw and unedited.

 CorPlan Department VP for Commercial & Bus. Dev’t Group

cc: OP, OEVP, OVP-AFG, OVP-AOMG, OCBDG, RMO

ANNEX A: DIRECTIVES OF CIAC PRESIDENT AND CEO

PROPOSED STRATEGIC BUSINESS PLAN FOR FY 2015

MAKE CIAC RELEVANT – a global economic gateway and the hub of choice for northern
Luzon; secondary hub of choice for metro manila.

Facilitate the ongoing evolution of the airport by providing a response to the capacity
expansion of the existing terminal. Management must strengthen its business foundation to
ensure the future success of the airport’s operation.
This year, the company will not achieve any of the financial targets originally planned and
the significant drop in passenger level must be addressed. To attract more users and improve
profitability, we need to strengthen our business base to ensure that it is solid, flexible and
resilient in the face of event risks such as a sudden drop in passenger volume.
Risk factors: CIAC is subject to business risks that significantly impact its business results.
These include policy of national government and regulating authorities, spread of a virus like
Ebola that could impact passenger volume, changes in international affairs.
Reforms in airport management must take place. This is a key element in the growth strategy
and to enhance the efficiency of the airport operations. In this regard, there should be a
thorough examination of each business activity to qualitatively transform the company’s
business structure and raising organizational productivity.

KEY RESULTS
1. Keep CIAC cost competitive and create a stable revenue base. Value creation for
airport and revenue enhancement.
a. keep airline costs low to initiate or expand service at CIAC; At this point we
have to accept that CIAC is at a weaker bargaining position when it comes to
airlines. What CIAC can control is the length of the waiver of landing fees.
b. Strengthen financial position by diversifying revenues and reduce debt as
appropriate. Aim to increase reserves. Grow profitability of non-passenger
dependent businesses to increase revenue base
c. Implement initiatives to reduce or contain the growth of operating expenses
d. Develop dormant spaces in CIAC area that will enhance value of the entire
region and increase non-aeronautical income
e. Integrate procurement management and clarify division performances on a
consolidated basis
2. Build customer loyalty and satisfaction to create a demand. Airlines see that demand
and may consider adding air service.
a. Identify customer preferences and needs
b. Create a positive brand awareness of CIAC in northern Luzon. Identify
avenues to extend CIAC brand and exposure.
i. CIAC is world-class

NOTE: All Group Outputs are raw and unedited.

 ii. Not frivolous
iii. Professional and responsive
c. Provide friendly and knowledgeable staff at the terminal
d. Better customer convenience for airlines and passengers
i. Deliver a noticeable end to end passenger experience. Easy access to
the airport is a vital component to this. Focus on improving the quality
of access to CIAC further. Provide a more reliable and resilient
transport network
ii. Smoother journeys
iii. Become the hub of choice for northern Luzon; Promote Clark as a
base for tourism for northern Luzon; Strengthen functions for the
airport serving the northern area and contribute to the Philippine
economy

3. Strive for operational excellence in all areas of business; improve capacity utilization
and increase operational efficiency

a. Organizational reform
i. Simplification of organizational structure (downsize from [insert
number] departments and --- divisions as opposed to previous –
departments and--- divisions) to facilitate efficient management and
prompt decision making.
ii. Clarification of roles of administration, planning and operational
departments
iii. Reallocation of human resources
b. Improve business processes
i. Efficient processing chain- Shorter response time
ii. Foster employee engagement, establish comprehensive
communication programs to educate employees of airport-wide
initiatives; update performance management process to ensure
individual employee objectives are aligned with desired company
results and metrics
iii. Initiate a workforce planning and succession process.
c. Sustainability – plan, program, operate and maintain facilities and
infrastructure in a cost effective and customer focused manner
d. Establish systems for business evaluation and monitoring
e. Promote the philosophy of continuous review, evaluation and prioritization of
risks that impact CIAC
f. Proactively engage external stakeholders to develop support of being
northern Luzon’s global economic gateway
i. Consistently communicate with community leaders, stakeholders,
passengers and employees

NOTE: All Group Outputs are raw and unedited.

NOTE: All Group Outputs are raw and unedited.