The real test of Government Optimization law

On August 4, 2025, President Ferdinand R. Marcos Jr. signed Republic Act 12231, or the Government Optimization Act, granting the President authority to reorganize, merge, or abolish executive branch agencies to build a more efficient and responsive bureaucracy. The law aims to cut duplication, streamline processes, and improve frontline services, but its real test lies in execution. Rightsizing must go beyond mere downsizing and instead serve as a strategic effort to align structures and manpower with evolving national priorities — an area where government can learn much from private sector best practices in restructuring and workforce optimization.

One key lesson is the need to align organizational structure with strategy. Companies that restructure begin by clarifying long-term goals and then redesigning their teams to achieve them. Firms shifting toward digital solutions, for instance, reorganize around technology and customer experience rather than outdated silos. Government should take the same approach, ensuring that agency mandates reflect priorities such as digitalization, social protection, and climate resilience. In this way, optimization becomes more than cutting positions; it becomes a tool for improving performance.

Another critical lesson is the need for evidence-based workforce planning. In the private sector, rightsizing decisions are driven by data — workforce analytics, workload studies, and performance metrics — rather than guesswork. The newly formed Committee on Optimizing the Executive Branch (COEB) can adopt the same approach by conducting manpower audits to identify redundancies and skill gaps. Beyond plantilla positions, the focus should be on actual work requirements and future needs. Tools such as skills mapping, workload analysis, and performance dashboards can make rightsizing more rational, transparent, and defensible.

The human side of reform is just as important. Private sector restructuring often fails when employee welfare is ignored, but succeeds when workers are treated as partners in change. Transparent communication, retraining programs, and opportunities to transition into new roles help maintain morale and reduce resistance. Government can follow this example by informing civil servants early, involving them in consultations, and providing reskilling pathways in areas like digital literacy, project management, and frontline service delivery.

Technology also plays a pivotal role. Many companies pair rightsizing with automation and digital platforms, enabling them to deliver more with fewer staff. The banking sector, for instance, reduced redundant positions while expanding digital services for customers. The government can adopt the same model by fast-tracking e-governance initiatives in business registration, licensing, and social protection. Linking rightsizing with modernization ensures that efficiency gains are not only maintained but amplified.

Rightsizing should be seen as a continuous process, not a one-time event. In the private sector, firms regularly monitor outcomes, track performance, and adapt when results fall short. Government can institutionalize the same practice through the COEB by setting clear benchmarks such as faster processing times, fewer overlapping functions, and higher citizen satisfaction. Through this approach, optimization goes beyond paper reorganization and becomes a measurable improvement in public service.

Equally important is the commitment to ethical and social responsibility. The private sector has long recognized that restructuring handled with fairness and compassion helps preserve trust. For the government, this responsibility is even greater because it is directly accountable to the people. Rightsizing must therefore be transparent and just, supported by redeployment opportunities, retirement benefits, and safety nets for affected employees. In this way, efficiency is achieved without sacrificing justice.

The Government Optimization Act is a bold step toward modernizing the Philippine bureaucracy. Its true promise lies not merely in cutting redundancies but in building a government that is agile, accountable, and genuinely centered on citizens. This vision, however, will only be realized if rightsizing is carried out thoughtfully and guided by private sector best practices. Aligning structure with strategy, grounding decisions in evidence, valuing employee welfare, embracing technology, institutionalizing monitoring, and upholding ethical responsibility are all essential to making rightsizing a platform for renewal rather than disruption. In the end, success will not be judged by the number of agencies merged or abolished, but by the quality of services experienced by the public. If implemented efficiently, RA 12231 can transform the Philippine bureaucracy into a leaner, smarter, and more effective engine of national development.

Read More at: https://www.manilatimes.net/2025/08/26/business/top-business/the-real-test-of-government-optimization-law/2173299 

Severo C Madrona Jr is a Professional Lecturer at the Department of Commercial Law, RVR College of Business, De La Salle University. With a public policy and business development background, he writes about strategic leadership, labor economics, and fiscal policy.