Orientation in OODA - Discerning Opportunites to Improve the DENR Business Model for Titling Services

Orientation is basically analysis and synthesis of Observations in the light of new information and previous experiences (Boyd says Orientation is also influenced by one’s genetic heritage and cultural traditions).  Each person Orients himself in a different way – consider a game of chess, where both players observe exactly the same pieces on the same squares, but see different opportunities and threats.

When we looked at DENR’s old business model for issuance of titles, we observed several things.

First, with regards to Customers, it was noted that prior to RA 10023 the only two ways Residents got their titles were to either buy it from the State (through a Miscellaneous Sales Agreement) or go through the judicial process. Both could be costly; the latter could take a long time. RA 10023 provided a great opportunity to speed up titling for Residents.

DENR’s Value Proposition is uncontested – it is indeed the authority for public land titling and it does have the most experience in this area. But while clients find it convenient to deal with the DPLI (and it gives them peace of mind), some clients can’t access these services because of their physical distance from the CENRO office.

The capability of the organization to Relate with its Customers through DPLIs is limited by the number of DPLIs. This means a low ceiling for the number of applications that can be processed and a low number of Free Patents issued.

Analysis of the Delivery Mechanism reinforces these last two ideas. One CENRO, with 4 to 6 DPLIs, covers several LGUs. The distance between the CENRO Office and the farthest LGUs can be a disincentive for applicants; it can also prevent the CENRO from effectively informing potential beneficiaries about RA 10023. A simile illustrates this point – if one thinks of the CENRO as a Jollibee serving several Municipalities with a small crew, it’s easy to see how clients from the farther Municipalities may not be motivated enough to come and eat – and when they do, they might have to wait some time to be served.

Of DENR’s Key Partners, the LGU stands out as a potential source of Resources. When motivated, LGUs can invest personnel, funds, transportation, equipment and social capital for titling activities. This has been borne out by the “LGU-led” titling activities in Maribojoc (Bohol) and Agusan del Sur. In Agusan, the LGU even placed its own survey personnel and equipment under the supervision of DENR (and DAR).

This is significant because looking at its Key Resources, DENR has limited supply of personnel and equipment. Here the LGU again becomes significant because they can supply one intangible resource that is very important when government agencies talk with people on a sensitive issue such as titling: LGUs have so much social capital. LGUs provide most of the basic and frontline services to individuals and families so the latter usually have a favorable attitude towards LGUs. On the other hand, DENR is often seen as a strict enforcer of environmental laws.

A very significant improvement in the Key Activities for titling is Systematic Adjudication.  Instead of waiting for applicants to walk in, the agency reaches out to Barangays in Cities or Municipalities and systematically goes through each Sitio to educate potential beneficiaries. They receive and process applications en masse. Systematic adjudication was introduced in the LAMP project (funded by AusAid) and has proven to be a cost-effective method for mass titling.

DENR’s Income Stream has to remain unchanged because it can collect only what has been authorized by law. What could change is the volume of collection – when more applications are processed and more Free Patents are issued, DENR collects more application fees.

The Cost Structure also remains the same – DENR incurs the same costs for titling. However, when LGUs are involved, they contribute funds, personnel and equipment to the titling effort.  The overall budget and expenses for titling increases but DENR does not have to spend more.

How can these insights and opportunities be brought together to design a new Business Model for titling? The Team that worked on the Property Rights for Economic Progress (of which I was fortunate to be part) took the better part of a year to figure it out. The new Business Model was not designed all at once – it took several iterations to test ideas, fail, and test again. In the next blog post this new Business Model will be described.