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The conceptualization of the Local Productivity and Performance Measurement System in 1982 signified the start of using productivity and performance measurements in the Philippines. The system was introduced by the then Ministry of Local Government, through the defunct Bureau of Local Government. The LPPM was able to generate information benchmark on service delivery capabilities and limitations, as well as budgetary prioritization and allocations of provincial, city and municipal governments, including issues or concerns that were beyond their authority and competence to address. The LPPMS was fully implemented from 1984 until it was discontinued in 1986 due to the belief that its value was already recognized in the local government decision-making process.

The revival of LPPMS in its enhanced version in 1998 was triggered by the increasing clamor from DILG Regional and Sub-Regional Offices in the importance of using such general supervision tools.


Another tool was designed in 2000 as a sequel to the LPPMS. This was the Citizens’ Satisfaction Index System, designed to gauge client views on the reach and quality of basic and essential socio-economic and environmental management services. The CSIS was field-tested in several cities and municipalities nationwide.


Complementing the above-mentioned tools is the Local Development Watch System, which was designed a year later with funding assistance from the Australian Agency for International Development. Since sustainable development was the focus of DevWatch, the indicators crafted were mainly concerned with social well-being, economic prosperity and environmental health. This was field-tested in 36 cities and municipalities. It was implemented in selected local governments for quite sometime.


There are at least two significant lessons that can be drawn from the experiences in the application of the LPPMS. First, information was basically limited to service delivery capabilities and limitations. It did not have the ability to make available information on overall administrative capabilities and development conditions obtaining in a local government unit. Second, it did not address the imperatives of effectively managing the information for development and change at the local level.


Considering the lessons learned, and aware of the evolving notion of governance, the Local Governance Performance Management System, or LGPMS, was developed. With the Bureau of Local Government Supervision taking the lead, stakeholders from various sectors shared time, effort and resources to evolve a pioneering tool which is developmental in nature and strategic in purpose. Significant events in the implementation of LGPMS are as follows: