Assessment Report on the Reformed

Business Permit and Licensing System

in Cagayan de Oro City

Numeriano G. Escalante, Jr.

Noel C. Alegre
Marcel L. Budlong
Zola G. Macarambon
Cecille C. Deuda-Quijano

Capitol University Research and Extension Office

Institute for Development Studies

Funded by the United States Agency for International Development through

Orient Integrated Development Consultants, Inc.

July 2013
 Assessment Report on the Reformed Business Permit and
Licensing System in Cagayan de Oro City

EXECUTIVE SUMMARY OF RESULTS AND FINDINGS

Business Registration Process – Renewal

 The first two of the four-step business permit and license application for renewal begins
with the procurement of the universal application form available in the distribution area
adjacent to the CDO BOSS. He then fills out the application form, submits this with attached
requirements, and moves on to the next steps with a tax and fees assessment. The
applicant, who successfully completes these initial steps, proceeds to the BOSS area which
is a few steps to the right of the distribution area. Payments are made (step 3) inside the
BOSS and all forms and receipts are submitted to the CRS.
 While ideal operations proceed as described in the first three steps, there were observed
instances where the applicant proceeded to the Tax Mapping area to complain, clarify, or
haggle with the assessors over his taxes. After tax delinquencies and other issues were
settled, the applicant went back to where he left the process. The cut was usually on step 1
or step 3; these cuts lengthened the renewal procedure.
 An outdoor waiting area where priority numbers are called out through the BOSS window
for STEP 4 (Claim Business Permit) is a space directly before the City Hall Steps. Overhead
is a tent awning for shade. Throughout the whole process, the waiting area was the most
crowded and left little or no seating on peak days and nonfunctional cover for rain or heat.
(See Figure 1, page 9)

Business One Stop Shop (BOSS)

 An 85.84 square-meter area in the left wing of the City Hall building adjacent to the City
Treasurer’s Office is the designated Assessment Section and Business One Stop Shop in
Cagayan de Oro City. This area is flanked on two sides by a series of windows for
simultaneous assessment, receipt, and release of permit and license applications.
 The office is organized roughly around the steps in securing a business permit. Upon
entrance through the left walkway, application forms are secured and filled out on tables
on the covered walk outside the assessment section. Accomplished forms and required
attachments (e.g. barangay business clearance, community tax certificate/cedula) are
submitted for assessment in the nearest windows. A flowchart in English is tacked on the
wall between the City Treasurer’s Office and the BOSS entrance. This, the researchers
observe, is a nonstrategic location since there is a considerable distance from the actual
starting point outside the assessment section.
 The short distance between the entrance and the waiting area holds two tables. These
 furnishings are often unmanned and without any sign distinguishing one from the other so
that they seem to serve no clear purpose. Upon the researcher’s query, these tables were
found out to be for the Bureau of Fire Protection (BFP) and for a BOSS information officer.
 Several offices and national government agencies are in the BOSS processing. Present as
signatories and collection or approving bodies are representatives of the Bureau of Fire
Protection (BFP), personnel from the City Finance, and Mayor’s Office.
 Amenities in the BOSS area are the barest essentials. Seating capacity and clientele comfort
are highly dependent on peak or non-peak days. Conditions in the waiting area for permits
release only pose discomforts on disagreeable weather conditions.
 One toilet is also supposed to service the area but its location behind the assessment
section deems it inaccessible. Other amenities include a TV inside the BOSS area facing only
the BOSS personnel and one air-conditioning unit. Two units of television were installed in
both the BOSS waiting lounge and the permit release waiting area towards the last three
days of permits renewal. (Figure 2, page 10)
 An assessment of the BOSS operations reveals varying efficiencies on peak and non-peak
days. (See Table 3, page 13)
 Total processing time ranges from 30.7 to 184.5 minutes at a cost that ranges from 749 to
104, 051 PhP. The average waiting time is 68.88 minutes and the average processing or
transaction time is 28.40 minutes. Total processing time on the average is 100.93 minutes.
Signatories are reduced to at least 4 in the BOSS area compared to last year’s 13. The table
above reflects a range (e.g. average 4-5 signatories) to show possible extremes in the
number of signatories. Moreover, client interface is from 8-15 depending on the applicant’s
compliance to each task. Forms including the application, receipts, and certificates total to
eight. Client feedback also reports a speedier processing time in the present application
process compared to last year.
 The number of interface during step 1 is limited to securing the application form and the
submission of documents for assessment. Interface increases to 6 when the applicant fails
to fill out all the information or go to the right window. Required documents during step
1 are application forms, previous business certificates, and worksheet.
 Step 3 involves at least three interfaces unless the applicant stops or postpones the claim
and receipt of his business permit. In some cases, applicants take four interfaces when they
are asked to apply for a new business name or other requirements such as clearance from
the Tourism Office or from the Regulatory Compliance Board (RCB). (See Tables 4 and 5,
page 15)
 Transactions were observed to be significantly lengthy during the peak days than on
non-peak days due to the volume of transactions catered. This is specifically observed for
the waiting time. Processing time, however, during peak days was shorter than during the
non- peak days.
 Total processing time for service businesses that dominate the sample throughout the
week reached 107.67 minutes on peak days. On the average, total processing time for the
service businesses is 84.74 minutes. Total time spent for industry businesses was shorter.
Generally, the business permit application process does not differ among the types of
 industry because all applicants use one universal form. (See Table 6, page 17)

Business Registration Process – New

 Since new applications are comparably fewer than renewals, traffic through the business
registration process is relatively faster and the waiting time, shorter. Further, the BOSS
facilities prove to be more comfortable, the personnel more efficient, and clientele more
satisfied with the service during the new applications period.

 Customer Satisfaction Survey Findings

 Female owners were more inclined to process their own business permits than male
owners. Table 7 shows that a majority (43.3%) of either male or female are owners of the
business while 36.7 % are employees or staff of the business and 19 % are friends or family
members of the business owner.
 Most businesses applying for permits belong to the service industry particularly wholesale
and retail activities including repair of vehicles, real estate activities, accommodation, and
food service activities.
 Most of renewed business permits are relatively new. In Table 11, 46.98 % of the
respondents have businesses that have been in operation for five years and over half of this
(24.33 %) have been in operation between 6 to 10 years. Another 10 % of the businesses
have stayed in business for 11 to 15 years already. Less than 10 % of the businesses were
started from15 to 25 years ago while 10.31 % of them have been operating for over 25
years; one still exists for over 70 years as per survey data.
 Majority of businesses are owned by local Filipinos (96.0 %) but a few are owned by
foreign nationals (1.0 %) or are joint ventures with local owners (2.7%).

Perception of the Process

 Although a considerable proportion of the respondents estimated the processing time for
the renewal of business permits to last for over a day due to unmet pre-registration
requirements such as the barangay business clearance, about 60.00 % of the whole sample
was able to complete the process at the BOSS for over an hour but within the day.
 Most of the clients who were interviewed occasionally revealed that they did not know that
the barangay business clearance is still required prior to the application unlike in the case
of applications done by bookkeepers. (See Table 13, page 22)

Responses by Sex
 One of the complaints expressed by some of the applicants about the renewal process was
“unclear instructions” from BOSS personnel.
 There was an observed a discrepancy between the actual process flows and the
instructions posted as signage outside the CDO BOSS. It was evident that the posting was
 not updated.
 Other observations deemed by some applicants as “unclear” is the requirement of a
barangay “business” clearance, tax mapping bracket, special requirements from Tourism
Office or the Regulatory Compliance Board (RCB). Generally, most of the applicants in the
sample disclosed that instruction for renewal of permits was clear or very clear. (See Table
18, page 25)
 The most common areas of the renewal process where applicants spent most waiting time
were the lounge prior to tax collection and the open-air space outside the BOSS before the
release and claim window. Processing in these areas have become bottle necks in the entire
process during peak days of the renewal period. When asked how they feel while waiting in
these areas, majority of the respondents in the exit interview were either very comfortable,
comfortable, or a little comfortable. (See Table 19, page 26)
 The batch of respondents in this year’s exit interview seemed to have higher standards of
friendliness and helpfulness. Some of them declared staff members inside the BOSS as
impolite, stern, and inconsiderate. More than 50 % of applicants considered the personnel
who served them friendly. In general, a majority of the respondents, at 48.33 % considered
the staff to be at least a little friendly and mentioned pleasing qualities like being
accommodating and calm while working on the client’s application. Another 2.4 % said
otherwise.
 The male applicants seemed easy to please and a large proportion of them found the staff
very friendly (35.30 %) compared to the female counterparts who had more varied
assessments. More male applicants considered the staff very helpful (45.30 %) while
females only rated them as helpful (51.30 %). (See Table 20, page 27)
 As a whole, 87.3 % of applicants were at least satisfied by the service delivered by BOSS.
A considerable 37.8 % disclosed that they are very satisfied.
 A commonly raised issue was the steady and constant rise of business fees and taxes. Some
other respondents also complained of what some of them called an “unfair” tax bracketing.
When asked whether they think the fees they paid are reasonable, about two-thirds or
66.67 % of the respondent applicants affirmed they were reasonable. (See Table 23, page
28 and Table 25, page 30)
 The average cost paid by applicants is Php 4,106.08 up to a maximum observed Php 8,690.
Average time spent during the whole application process is 48 minutes, with processing or
transaction time of about 36 minutes and waiting time of about 8.4 minutes.

Comparative Analysis of the 2012 and 2013 Results

Business registration – Renewal

 The numbers of steps for business permit and license renewal currently remains at four
since last year’s report on the CDO BOSS.
 A good practice of requiring only one document, the barangay business clearance, for
attachment to one universal application form has also been sustained since last year.
 A total of 4 to 5 signatories throughout the whole process, however, is an observed
improvement since last year’s 13.
 Moreover, the whole process only took an average of 1 hour, 41 minutes, and 33 seconds in
the current BOSS while in the past it took 2 days, 1 hour, and 50 minutes.
 While findings in the process of business registration renewals all point to significant
improvements in processing time, the monetary cost this year racks up to at least PhP
749.00, a substantial decrease from last year’s PhP 2, 785.00. (Table 13)

Business One-stop Shops (BOSS)

 Basic amenities at the CDO BOSS include air-conditioning, a waiting lounge, and a flat
screen TV installed only on the last few days of the renewal process when the crowd was at
its largest.
 Streamlining in the process also reduced the number of personnel from last year’s 36 to
only 10 in the various desks. The BFP desk is also the only other outside government
agency represented in the BOSS.
 Perhaps the few good practices not maintained since last year are the continuous service
with no lunch break and the distribution of information kits on the registration process.
 This year, signs and posts referring to the process proved to be nonfunctional since these
were neither strategically located nor updated.

Customer Satisfaction Survey

 Despite the shorter processing time revealed by results of the time-motion study, only
27.3% of the respondents thought that the transactions only cost them less than 1 hour
compared to last year’s 43% (Table 13, p.22).
 With regard the clientele’s satisfaction with the LGU services, last year’s very satisfied lot of
51% dropped to only 37.8 %, 13.2 % lower than the 2012 rating. Several factors can be
considered as variables affecting customer perception of the process like weather
conditions in the open-air waiting area outside the release and claim window and
perceived rise in taxes and fees (Table 22, p.28).
 Applicant comfort while waiting for the business permit processing also dropped from last
year’s very comfortable 70% to this year’s 19.3% (Table 19, p.26).
 While many applicants appreciated the fast-tracked service and air-conditioned
atmosphere inside the BOSS, more still complained of waiting among a large crowd without
adequate seating under extreme weather conditions in the release and claim waiting area.
 The lunch break also interfered with their transaction and delayed the process.
 This year’s batch of applicants were more pessimistic, with only 33.33 % rating the staff as
very friendly compared to 70% of last year’s respondents. Most descriptions pointed at
impolite, stern, tough, or inconsiderate personnel (Table 20, p.27).
 Moreover, when asked whether they think the fees they paid are reasonable, about
two-thirds or 66.67 % of the respondent applicants affirmed they were reasonable, just
about the same rating as last year (Table 23, p.28).
 As to whether they look forward to the same process again next year, a majority of 93.2%,
slightly lower than the 96 % last year said Yes (Table 24, p.29).
 Overall, contrary to findings in the data, however, most of the applicants in the casual
interview admitted the BOSS renewal process this year is better and faster than the last
year.

Recommendations

Business Registration Renewal and New Applications

 Maintenance and periodic updates of the city government website should

provide correct and useful information for business applicants, both prospective
and existing. The webpage should highlight application procedures and
requirements and encourage use of the available downloadable forms. It should
also provide information regarding the satellite BOSS facilities for public
convenience and fast-tracked transactions.
 The CDO BOSS should consider developing an online application system that
should include a tax and fees assessment and other useful applications.
 The existing universal application form should be improved in terms of layout
and information requirements to pave the way to a potential paperless
application process in the future.
 The BPLS should create and develop a computer database of all registered
businesses in Cagayan de Oro City to eliminate repetitive filing procedures and
enable easy retrieval of old accounts.
 Registrations of new business names in the DTI database should be interlinked
with the CDO BOSS database for faster verification.

BOSS Recommendations

 The CDO BOSS should be relocated to the new building at the back of the old building. This
allows a larger workspace and more comfortable processing and waiting areas for business
registrants. A lounge can be set up with amenities like a café and entertainment facilities to
make for a customer-friendly registration experience.
 Posted BPLS procedures should be congruent to actual application steps. Signage should
also be placed strategically to facilitate the transaction.
 A personnel shifting schedule is highly recommended to prevent breaks in the process
flows.
 A dress code should be strictly implemented among the BOSS personnel for identification
 purposes.
 Functional male and female toilets should be installed and made accessible to all the BOSS
clientele.
 An electronic priority numbering system should be installed in the distribution area
windows (Step 1) and business permits release and claim area (Step 4).
 The BOSS should create and maintain a synchronized central database related to BOSS
operations among the offices within the city hall.
 Representatives from the Regulatory Compliance Board and the Tourism Office should be
at post in the CDO BOSS to provide auxiliary requirements (e.g. Customer Relations
Services Certification) for establishments offering internet and other communications
services should.

Customer Satisfaction

 Improvements in the physical amenities should cater to clientele comfort, time, and
cost-savings.
 Further staff development in the form of customer-relations and service trainings should
be organized for CDO BOSS personnel.

Next Steps in the CDO BOSS Process

 The appointment of webmasters for a fully operational online information and application
process
 The transfer of the CDO BOSS to a more physically efficient building with improved
amenities
 The restructuring of BOSS personnel shifts and schedules
 The implementation of a strict dress code policy
 The holding of staff development trainings and seminars
 The restructuring of tax and fees brackets
 The installment of year-round satellite BOSS areas in other government offices and other
convenient locations (e.g. shopping malls) especially for new applicants
 Information dissemination on BPLS requirements and processes by traditional means (TV
and print media, radio, pamphlets, posts, signages) and the internet
TABLE OF CONTENTS
Page

EXECUTIVE SUMMARY ii

INTRODUCTION

Background 1

Objectives 2

Scope of the Study 2

METHODOLOGY

Data Gathering Methods 3

Data Analysis Methods 7

Quality Control Measure 8

FINDINGS

Business Registration Process – Renewal 9

Processing by Industry 14

Business Registration Process – New 16

Process Flows in the BOSS Area 20

Assessment of the Business One-Stop Shop (BOSS) 21

Layout of the BOSS 21

Participants in the BOSS 22

Exit Interview: Customer Satisfaction Survey Findings 23

Profile of Respondents and their Businesses 23

Perception of the Process 27

 Responses by Sex 34

ANALYSIS

Comparison with Joint Memorandum Circular (JMC) Standards 35

Comparison with Principles of an Efficient Business Process 36

Comparison with BOSS Prescriptions 37

Comparative Analysis of the 2012 and 2013 Results 38

Business Registration – Renewal 38

Business One-Stop Shops (BOSS) 39

Customer Satisfaction Survey 39

CONCLUSION AND RECOMMENDED BPLS REFORMS FOR CAGAYAN DE ORO CITY

Conclusion 43

Recommendations 43

REFERENCES 45

APPENDICES
46
ACRONYMS

BFP Bureau of Fire Protection

BOSS Business One-Stop Shop
BPLD Business Permit and Licensing Division
BPLS Business Permit Licensing Systems
BT Business Tax
CDO Cagayan de Oro
CRS Customer Relations Service
DILG Department of Interior and Local Government
DTI Department of Trade and Industry
JMC DTI-DILG Joint memorandum Circular No.1 of 2010
NGA National Government Agencies
RCB Regulatory Compliance Board
SEC Securities and Exchange Commission
SSS Social Security Systems
USAID United States Agency for International Development
LIST OF FIGURES

Page

1 Step by Step Guide in Securing a Business Permit 9

2 Process Flow in CDO BOSS 20

LIST OF TABLES

Page

1 Data Gathering Plan 4

2 Summary of Respondents During the BPLS Renewal Period 6

3 Summary of the Number of Steps, Client Interface, Forms, Costs

and Signatories for Business License Renewal 13

4 Travel, Waiting, and Processing Time of Business Renewal

Categorized by Industry 15

5 Travel, Waiting, and Processing Time of Business Renewal

Process but not completed 17

6 Summary of the Number of Steps, Client Interface, Forms, Costs

and Signatories for the New Business License 19

7 Profile of Respondents by Ownership or Relationship to Owner

and by Sex 23

8 Profile of Respondents by Kind of Business Establishment and

by Business Classification 24

9 Profile of Respondents by Business Size and by Business

Classification 25

10 Profile of Respondents by Length of Time in Operation 26

11 Profile of Respondents by Citizenship of Owners and by

Business Classification 27

12 Duration of Business Permit Processing 27

13 Sources of Application Forms 28

14 Availability of Information Necessary for Business Permit Renewal 28

15 Offices that Did Not Provide Needed Information 29

16 Distribution of Client Responses Regarding the Clarity of

 Instruction by Sex 30

17 Offices that Gave Unclear Instructions 30

18 Distribution of Responses on the Applicant’s Comfort while

Waiting for Business Permit Processing 31

19 Distribution of Responses to “How friendly were the staff?” 32

20 Distribution of Responses to “How helpful was the staff?” 32

21 Distribution of Responses to “How do you feel about the service?” 33

22 Distribution of Responses to “Do you think that the fees you

paid to secure the business permit are reasonable?” 33

23 Distribution of Responses to “How do you feel going through

this process next year?” 34

24 JMC Standard v. CDO BOSS 35

25 JMC Standard v. CDO BOSS – New 36

26 Principles of an Efficient Business Process v. CDO BOSS 37

27 Comparative Summary of Findings per Process Indicator 39

28 Comparative Percent Summary on Total Time Spent in Permit

Processing 40

29 Comparative Percent Summary of Applicant Satisfaction on

Business Permit Processing 40

30 Comparative Percent Summary on the Applicant’s Experience

of Comfort while Awaiting Processing of Documents 41

31 Comparative Percent Summary on Applicant’s Perception on

Staff Friendliness 41

32 Comparative Percent Summary on Applicant’s Perception on

Staff Helpfulness 42

33 Comparative Percent Summary of Applicant’s Perception on

whether the fees are reasonable 42

34 Comparative Percent Summary of Applicant’s Perception on

going through the same process next year 42
Assessment Report on the Reformed
Business Permit and Licensing System
In Cagayan de Oro City
Capitol University Research and Extension Office–
Institute for Development Studies
Numeriano G. Escalante, Jr., Noel C. Alegre, Marcel L. Budlong
Zola G. Macarambon, Cecille C. Deuda-Quijano

Introduction

Background
Good governance is critical to poverty reduction, economic development, and human
development. In times of economic depression, effective business regulation and
institutions can support economic adjustment. In recent years, the Philippines embarked
on business and political reforms to promote good governance. Many of these reforms
targeted unnecessary administrative requirements, a major breeder of corruption (Doing
Business in the Philippines, 2011). While much remains to be done, progress has been
made. Many local governments for example are taking measures to streamline their
business registration and licensing procedures. Supporting these local efforts are national
initiatives, such as the Local Implementation of National Competitiveness for Economic
Growth (LINC-EG). However, two years after, the Philippines is still among the countries
where paying taxes is most costly and difficult, as it slid down a global tax ranking despite
government efforts at ramping up reforms. The country placed 143rd out of 185 economies
in the Paying Taxes report released by the Doing Business Initiative of the World Bank and
the International Finance Corp., as well as financial service firm PricewaterhouseCoopers
(PwC) (Kim Arveen Patria yahoonews, 2012).

Another local initiative, the Investment Enabling Environment Project begun in 2012 to
assess the business permit renewal process and the Business One Stop Shops of its partner
cities, namely Batangas, Iloilo and Cagayan de Oro, as part of the diagnostic phase and
represents the first phase of the INVEST Project’s city-level engagement.

A necessary follow-up to the first phase, this present study seeks to be an objective and
scientific assessment of the city’s “reformed” business registration processes and related
inspection systems. It also furthers a key finding in the preceding impact study that a
 strong business sector is an important criterion in a city’s economic progress.

Over and above this assessment report is Project INVEST, a United States Agency for
International Development (USAID) initiative to improve the country’s enabling
environment for investments by lowering transaction costs in doing business involving
local level regulations and processes in business permit and licensing systems. The project
aims to assist the Philippine government in improving the country’s enabling environment
for investment. To achieve this, the Project will provide technical assistance to lower the
transaction costs involving a local level regulations and processes in business permit and
licensing systems (BPLS) and to improve the capacity of selected local government officials
in planning and promoting investment. The principle behind the INVEST effort is that a
conducive business climate would attract needed investment into these cities. In concrete
terms, INVEST interventions focused on the streamlining and automation of the cities’
business registration and licensing procedures (new registrations and renewals), including
the pre-requirements of national government agencies (NGAs), and improving their
business inspection system. These initiatives are expected to enable the cities to comply
with, and even exceed, the national BPLS standards and the best practices in business
processing in some Southeast Asian countries.

Objectives
The main objective of this study is to assess to the reforms in the business permit and
licensing system (BPLS) undertaken by the city government of Cagayan de Oro in the
following key areas:

 Processing of applications for the renewal of permits to operate businesses;

 Operations of the Business One-Stop Shops (BOSS); and
 Processing of new applications for permits to operate businesses.

Scope of the study

This report is built around analysis of data gathered during the business permit renewal
period from January 7 to 24, 2013 and new registrations from February 4 to 27, 2013 in
Cagayan de Oro City. The four-step CDO BOSS process was tracked for accurate records on
forms, requirements, interface, and signatories. Comparisons between baseline information
generated by a 2012 assessment were made on BPLS renewal in terms of BOSS facilities
and efficiencies and system process flows.
METHODOLOGY

Data Gathering Methods

The data collection method, as prescribed by the Project INVEST team, was designed to
gather quantitative and qualitative information in processing business permits at the
Business One-Stop Shops of Cagayan de Oro City. The study is basically descriptive and was
designed to assess the process of securing business permits. It employed several research
methods including process mapping, time and motion study, process observation, exit
interviews, and documentation of registration requirements.

Assessment of the BPLS Renewal through Process Observation

Respondent sample size is limited to 12 for the time-motion study, 6 selected during peak
days and 6 applicants during non-peak days, or 2 for each of the three major sectors of
Agriculture, Services, and Industry for peak and non – peak days.

For the process assessment of 6 business renewal applicants, 2 from each of three major
industry sectors namely, Agriculture, Services and Industry, were selected randomly such
that different company sizes are represented during the peak days on January 14-21 and
another 6 applicants during the non-peak days on January 7-11. Sampling on a Monday,
Wednesday, and Friday was ideal to capture the various moods of both the client and
service providers that affected the interview process.

The documentation of the business renewal process involved the following tasks: 1)
process mapping documents visually as a flow chart, 2) time and motion study identifying
the specific tasks or sequence of movements and the exact time for each movement, 3)
process observation of action details for every specific task as it occurs, and 4)
documentation of registration requirements and communication materials including
collection of forms required for accomplishment and submission. To facilitate the
documentation of the process, a process table/map was formatted as guide for
documenting the process. A sample copy of the instrument to assess the renewal of
permits and the exit interview is displayed in the Appendix.

Assessment of the BPLS New Applicants through Process Observation

The assessment of the new business registration process starts with the documentation of
process that an applicant has to undergo in applying for a new business permit to operate
in the city. The objective of the activity is also to track accurately the procedure/steps, the
processing time and the documentary requirements that an applicant has to follow before a
permit is finally given to him. The same procedure is implemented for the 6 new business
permit applicants, 2 for each sector agriculture, industry and services during February 4 –
27 after the assessment of the business renewal applicants.

Exit Interviews

Exit interview involves soliciting customer perceptions about the renewal of business
registration. Sample respondents in the study included business owners, business
employee, relatives of owners or other representative of the establishments who were new
registrants or renewal applicants at the Business One-Stop Shops.

Selection of sample respondents was systematic with a random start. The sampling interval
(k)was obtained by dividing the expected number of clients of the sampling day by the
sample size allocation for that day. The sampling interval slightly deviated from k to ensure
that the male-female client distribution is approximately 50-50.

For the exit interview, respondents were 300 renewal applicants, both halves of which
represent equal numbers for both sexes. Table 1 summarizes the data gathering plan in
terms of specific objectives, the information or data required in each objective, the source
of information, data collection method, and the type of statistical or data analysis involved.

Table 1 Data Gathering Plan

Objective Data required Information Data collection Sample/ Data
Source Method Respondents Analysis
Processing of Number of forms, cost, Primary data Time and Business Descriptive
applications for number of signatories, motion study, owners,
renewal of travel time, waiting process relatives, staff,
permits time, process time mapping service provider
Operation of the Area, layout, location, Primary data Process Business owners descriptive
BOSS flowchart, amenities, observation
rest room, chairs,
participants, help desk,
queuing system,
Processing of Number of forms, cost, Primary data Time and Business Descriptive
new applicants number of signatories, motion study owners,
for permits to travel time, waiting relatives, staff,
operate business time, process time service provider
Data gathered for this report was subjected to an analysis supported by benchmarks set by
national JMS standards, qualities of an efficient business process, Business One Stop Shop
(BOSS) recommendations, feedback from the business sector, and an observation of an
established business permit and licensing process.
The researchers attained copies of forms and any communication materials related to the
process (e.g. leaflet with process flow, etc.). They recorded in writing and documented in
photos and videos the communication materials posted in the BOSS or in the locations
where the process took place (e.g., process flow).
 Definition of Indicators

Indicators have also been set in the 2012 Integrated Assessment Report (USAID) as
measures pointing to efficiencies, both gaps and successes, in the business registration
processes in CDO BOSS. The following definitions were used in the study:

 Step – action/s that applicants undertake as part of the process of applying for and/or
processing business permits and licenses.

 Action – written acknowledgement of receipt, approval or disapproval made by the

government agency on the application or request submitted by the client for processing.

 Form – any piece of paper (physical or virtual) that the applicant fills up to undertake the
steps.

 Cost – monetary cost (official fees and out-of-pocket expenses; excludes economic cost)

 Office –the public authority and private establishments that the applicant transacts with

 Signatories – the persons who sign and initial any document given to the applicant.

 Total Length of Time Elapsed – the sum of travel time, waiting time, and processing time
from the time the applicant undertakes the first step within the site to the time s/he
receives the business permit.

 No. of visits (per step) – the interface between the applicant and public official

 Required document – any document asked of the applicant

Customer Satisfaction Survey: Exit Interview

An exit interview followed the BOSS assessment. The interviewers administered the
questionnaire to the applicants as they left the site after completing the renewal of
business registration. This was a face-to-face interview where the interviewer asked the
questions of the applicant and wrote down the applicant’s answer.
 Table 2 Summary of Respondents During the BPLS Renewal Period
DATE MALE FEMALE TOTAL
Jan 7 4 2 6
Jan 8 6 28 34
Jan 9 17 0 17
Jan 10 15 37 52
Jan 11 32 0 32
Jan 12 23 14 37
Jan 14 6 9 15
Jan 15 13 19 32
Jan 16 11 7 18
Jan 17 20 30 50
Jan 18 2 4 6
Jan 19 1 0 1
TOTAL 150 150 300

On hindsight, several problems were encountered in the data-gathering. A number of

respondents who were captured for the time-motion process either refused participation
in the middle of the four-step process or were compelled to stop for the following reasons:
1) problems with required documents (e.g. bringing a barangay identity clearance instead
of barangay business clearance), 2) insufficient cash for tax and other fees, and 3) decision
to continue application at another time. Physical factors also played a part in the
respondents’ accessibility for information-collection. For the most part of the
data-gathering period, the weather condition was mostly cloudy with light to heavy rain.
This coupled with the rush and crowd which doubled as the renewal period neared its end,
made for a slightly irritable and impatient clientele.

On the one hand, the exit interviews were not as difficult to conduct since most of the
respondents became more accommodating towards the end parts of the renewal
application process.

For the exit interview, a total of 300 applicants for renewal of permits were interviewed
after they received their business certificates. A margin of error of 5 % and 95 %
confidence was expected for this sample size assuming at least 75 % of the clients were
satisfied with the business licensing system being evaluated.

Data Analysis Methods

Data was gathered using the INVEST prescribed standardized diagnostic template and
recording instruments and suggested methodologies which include process mapping, time
and motion study, and process observation. Ultimately, the study was guided to completion
by the major objective of describing and assessing the “reformed” processes in order to
establish quantitative and qualitative information for comparison with the 2012 baseline
data against which INVEST project results were measured.

Assessment of the BOSS

The assessment of the BOSS area was done mainly through observation using the following
guide questions:

A. On the Layout of the BOSS

 Is there a designated BOSS area?
 How large is the BOSS area (approximate size)
 How is it organized (layout)? Are the processes/transactions all in one floor?
 Is/Are there easy to understand flowchart/s indicating the steps in renewing
business permit? In what dialect/language is the flowchart?
 Are there amenities, e.g. coffee, TV, air-conditioning/electric fan/s in the
BOSS area?
 Are enough chairs in the waiting areas? If no, please indicate specific area.
 Are there toilets in the BOSS? Or are the toilets near the BOSS?

B. On the Participants in the BOSS

 Which city offices and/or national government agencies are in the BOSS (e.g.
barangay officials, Bureau of Fire Protection, SSS)?
 What are the processes conducted by these offices/agencies?
 Are representatives of these offices always present in the BOSS?
 How long do applicants have to wait before their applications are attended to
by the NG agencies?
 How long do the NG agencies process the applications?

C. On the Operations of the BOSS

 Is there a taxpayers’ assistance/help desk?
 Describe the queuing system. Is the queuing system implemented
properly?
 Is there a difference in the operation of the BOSS area during peak and
non-peak days?
 Did the applicants receive the permit at the end of the process in the BOSS?
If not, is the applicant told to come back another time to get the permit?
  If the permit was not received, what did s/he receive?
 Did the applicants have to leave the BOSS to comply with any requirement
(including photocopying requirements) at any time during the application? If
yes, document what the requirement was.

Collated data were then presented in univariate and bivariate tables. Quantitative and
qualitative responses from the documentation process were encoded and processed
through the use of the Excel-formatted process table provided by INVEST.

Comparative Analysis

Relevant findings on the CDO BOSS process flows as reported in the Integrated Assessment
Report on the Renewal Process and the Business One-Stop Shops of three cities provided
a frame of reference for a comparative analysis with current reforms in the CDO BOSS. The
current BOSS is analyzed for improvements or efficiencies in terms of time, cost, facility,
personnel, accessibility of physical processing space, number of signatories, and clear
directions with reference to this previous assessment report. Client satisfaction was also
reported through an exit interview survey questionnaire; results in which are set against
client satisfaction of the previous year.

Moreover, the national standard according to JMC perspective and assumptions provided a
benchmark for CDO BOSS performance. A five-step process has been set as follows: Step 1:
Securing the Application Form (AF), Step 2: Filing the application for renewal, Step 3:
Submitting the documents for one-time assessment, Step 3: Payment of the Business Tax
and Fees, Step 4: One-time payment, and Step 5: Claiming the Business Permit.
Quality Control Measure

To ensure the quality of data, quality control measures were built into the field operations.
The presence of higher level field personnel, i.e., Lead Researcher and Research Assistants
who were available for regular consultation with field interviewers produced quality data.

Supervision
The Lead Researcher supervised the conduct of the project from its inception to its
termination. He also supervised the roving personnel/s, in this case the Research
Assistants, who checked on the progress of the field operations (data collection) and helped
in the data processing and initial interpretation.

Consistency Checks
For the Structured Interview Schedule, a quality control measure was observed by the
Research Team through inspection of any inconsistencies in interviews and post evaluation
at the end of the day’s work.
 Figure 1 Step by Step Guide in Securing a Business Permit

Source:
http://www.orochamber.net/wp-content/uploads/2012/12/Step-by-Step-Gui
de-Business-Permit-2013.pdf

Findings

Business Registration Process – Renewal

Thirteen business permit renewal applicants were fielded for the time and motion study,
four during the non- peak days and nine during the peak days. Two applicants applied for
an agriculture/forestry/fishery category involved in farming and agri-business activities.
Only one business was involved in the industry category and the remaining 10 applicants
are in the services category such as food and non- food retailing, computer repair, internet
provider, real estate lessor, convenient stores, lending cooperatives, bakery and a school.

The first of the four-step business permit and license application for renewal begins with
the procurement of the universal application form available in the distribution area
adjacent to the CDO BOSS. This area is a covered walk with three long tables and seating for
filling out forms. The same form is downloadable from www.cagayandeoro.gov.ph, a fully
functional but lesser known aspect of the application process which needs disseminating
for increased convenience in the application experience. Next, the applicant attaches a
barangay business clearance to the filled out application form. He then submits these
documents on a first-come-first-served basis to one of seven windows, according to his
business permit numbers. The applicant is called out from these windows and given a tax
and fees assessment. Atmosphere in the distribution area varies on peak and non-peak
days.

The number of applicants steadily increased towards the middle and decreased towards
the end of the application and renewal week. However, much of the observed agitation in
this initial step has little to do with whether it is a peak or non-peak day but the frustration
of having to procure a barangay business clearance before proceeding with the application.
While it is standard procedure to bring a barangay clearance as basic application
requirement, an observed few claimed no knowledge of this requirement which required
them to go back to their respective barangays. Pre-application information on the barangay
business clearance and community tax requirements is given at the assessment section
although they are indicated at the back of the application form as well. Another point of
confusion was the difference between a barangay clearance and a barangay business
clearance, which is the BPLS application requirement. For those applicant who have
complete requirements, STEP 1 which is Secure and Submit Application Form for Business
License ends when the applicant gets his or her tax due worksheet (see Figure 1).

Interface at this step is limited to the procurement of application form in the distribution
area and the submission of documents for assessment. The number of interface increased
from 2 to 4 when the applicant failed to fill out all the information or go to the right
window assigned to them based on the number of their previous permit. Required
documents during this step are application forms, barangay business clearance and the
previous business certificate which is optional if they knew their permit number. Some
applicants pay their community tax at this step amounting to an average of Php 322.30. All
thirteen observed applicants finished this step at an average of 18.89 minutes and an
overtime of 31.99 minutes when some applicant did not follow through the process
directly. Most of their time is spent in the processing of documents through the assessment
window (see Table 2).

After completing the initial step successfully, an applicant proceeds to the BOSS area which
is a few steps from the assessment window following the pathway that turns left, going
straight up the stairs of the City Hall entrance and into a door at the left. Inside the BOSS,
the applicant proceeds to the end of the hall to a table where his documents are
counter-checked by an officer. During peak time, two officers man this small table at the
entrance of the BOSS waiting lounge. Beside this table is a rather inconspicuous START sign
on a board which proves confusing since application already starts earlier. Here, he is
issued a priority number which he brings with him to the waiting lounge. This is a
transition to STEP 2 of the process labeled Pay Assessed Business Tax and Fees as shown in
Figure 1.

Throughout this step, the usual number of interface is 3 starting with one at the customer
relations desk where required documents including the application form, business
barangay clearance, tax due worksheet and community tax certificate are evaluated. The
number of interface is 5 in some cases where the applicant renegotiates or requests a
reassessment of his tax dues but these were exceptional cases. Forms obtained at this
step were payment receipts which are supposed to bear initial signatures of the desk
officers for tax and fees and for the bureau of fire protection certificate. Tax collection
processing time averages to 7.42 minutes and most of their time is spent at the waiting
lounge for about 21.23 minutes. Total processing time at this step is 29.17 minutes with an
average tax collection cost of Php 14, 319.67 as shown in Table 2.

The subsequent step (STEP 3 Submit Documents to Customer Relations Service) was
undertaken in a table behind the Bureau of Fire Protection (BFP) officer’s desk. The BPLO
or a representative of the treasurer’s office validates the documents of applicants and
endorses them to officers at a long table across the tax collection tables and nearest to the
BOSS exit for issuance of new business permit. Two officers check and counter-check the
application documents and receipts of two applicants at a time. The documents are passed
on to two data encoders, one of whom issues a priority number. The applicant then
proceeds to an open waiting area.

While ideal operations proceed as described in the first three steps, there were observed
instances where the applicant proceeded to the Tax Mapping area in the adjacent building
to complain, clarify, or haggle with the assessors over his taxes. After tax delinquencies and
other issues are settled, the applicant goes back to where he left the process. The cut is
usually on step 1 or step 3; these cuts lengthen the renewal procedure.

Step 3 involved at least three interfaces unless the applicant stops or postpones the claim
and receipt of his business permit. In some case, applicants take four interfaces when other
requirements such as clearance from the Tourism office or from the Regulatory Compliance
Board (RCB) are required. In this connection, an applicant reflected that there could have
been no additional delays if BOSS data system was updated and synchronized with related
agencies. Unless the BOSS administration carries out this suggestion, this requirement
from the RCB would be an additional step for tri-media and tourism-related businesses.
At present, the processing time for this step is the shortest of the whole application process
at 6.53 minutes with less waiting and most of the time was taken by checking and posting
of documents.

The last step, STEP 4 labeled Claim Business Permit in Figure 1 is the releasing and
claiming of the permit. An outdoor waiting area where priority numbers are called out
through the BOSS window is a space as the applicant exits the BOSS area and directly
before the City Hall Steps that he passed earlier. Overhead is a tent awning for shade.
 Table 3 Summary of the Number of Steps, Client Interface,
Forms, Costs, and Signatories for Business License Renewal
Name of Step Client Forms Required Cost Signatory Travel Waiting Processing R
Interface (number) Documents (PhP) Time Time Time /a
(number) (min) (min) (min)
Securing and 2-4 2 3 322.30 0 0.838 2.145 15.91 1
Submission of
Application for
Business License
Tax Collection 3-4 2 4 14319.67 2 0.525 21.23 7.42 2

Issuance 3 0 5 15.00 1-2 2.42 0.89 3.41

Release 1 1 0 0.00 1 0.23 44.86 1.88 4

TOTAL/average 9 - 12 5 5 14641.97 4-5 3.66 68.88 28.40 1

Throughout the whole process, the waiting area was the most crowded and left little or no
seating on peak days and nonfunctional cover for heavy rain or heat. The remaining form
that an applicant expected was his new business certificate given by one of the desk
officers. Total processing time was on the average at 46.98 minutes spent mostly on
waiting. Plate License was already paid earlier but the schedule for release is up to three
months after registration. Some applicants had to go back where he started the process to a
table beside the assessment window to get a sanitary permit. The table was manned by
representatives from the city health office.

Table 2 summarizes the number of steps, client interfaces, number of forms, average, total
costs, and signatories for the whole licensing process. Overall, the number of signatories
was from 4 to 5 persons. Moreover, client interface is from 8-15 or an average of 12
persons depending on the applicant’s compliance to each task. Forms including the
application, receipts, and certificates total to eight. Total processing time ranges from 30.7
to 184.5 minutes or an average of 100.93 minutes at an average cost Php 14, 641.97. The
average waiting time is 68.88 minutes and the average processing or transaction time is
28.40 minutes which made waiting time the most time-consuming in the whole process.
Total processing time on the average is 100.93 minutes.

Processing by Industry

Selection of respondents requires two applicants from each major sector – agriculture,
industry and services. However, actual selection of respondents according to this
pre-determined requirement proved to be difficult especially for sectors of industry and
agriculture because of the uncertainty when applicants from this small proportion of sector
in the business will come to apply compounded by the unwelcoming behavior of some
applicants and simply an unfortunate timing. From what transpired in the survey, Table
3 reveals that business permit renewal during non-peak days was limited only to the
service industry as sampled. Other industry categories were not easily available on these
days until the following week.

Transactions were observed to be significantly lengthy during the peak days than on
non-peak days due to the volume of transactions catered. This is specifically observed in
the waiting time. Processing time, however, during peak days was a little shorter than
during the non- peak days. Perhaps for psychological reasons, desk officers tend to work
faster during busy periods. On the average, processing time during non-peak days for
services sector is around 50.34 minutes while processing time during peak days is about
107.71 minutes. Processing time for the industry sector during peak days did not differ
much from that of the service sector spending around 108.2 minutes. Processing time for
the agriculture sector went a little longer in processing at around 119.73 minutes.
 Table 4 Travel, Waiting, and Processing
Time of Business Renewal Categorized by Industry

non-pea Peak
k days days
services service industr agricu
s y lture
Jan 7 Jan 10 Jan 11 Jan 12 Jan 14 Jan 14 Jan 14 Jan 16 Jan 17 Jan 17 Jan 16 Jan 17
nonfood food computer real School convenient Lending real convenient red furniture farming
retail retail repair estate store coope-r estate store ribbon
lessor ative lessor
1.56 4.00 1.23 2.28 0.95 1.91 0.50 2.84 0.99 1.07 0.79 1.07

0.76 44.72 15.92 2.46 37.66 37.97 34.18 145 95.52 159.30 76.08 109.30

28.40 47.38 14.86 37.79 20.08 22.37 18.12 25.80 20.53 21.88 31.15 36.76

30.72 96.10 32.01 42.53 58.69 62.25 52.80 173 117 182.30 108.20 147.20

50.34 107.71 108.20 119.73

min min min
One obvious reason above anything else was the longer waiting time due to increased
number of applicants at that time. Generally, total processing time for business permit
application did not differ much among the types of industry because all applicants in the
survey used one universal application form and they all went through the same number of
steps and signatories except for tourism and multi-media–related businesses that required
additional clearance.

The case of the longer waiting time for agri-based business in the last column of Table 3
seemed to be an isolated cause of delay in processing for some reason. For one, the
applicant was applying permit for two businesses. Second, payment took a little longer due
to confused information of the applicant regarding the mode of payment accepted by the
desk officer as he had only check with him. Third, the applicant went to the treasurer’s
division to transact a change of business name.

Table 4 presents also other applicants who agreed to participate in the time and motion
study but did not continue the application process for varied reasons. The milk distributor
and the Air Internet Station applicants had to go home for money after filling out the
application forms. The travel agency applicant stopped at Step 3 pending the city tourism
clearance and payment for surety bond. The internet business stopped application on
January 11 pending for RCB clearance release which usually takes a day. It was a Friday but
the applicant decided to come back Tuesday for personal reasons. Another internet
business on January 14 also stopped for the same reason. Both of them were not given
their business permit clearance after step 3. The electrical shop stopped after step 1 to get
a barangay clearance. The applicant for Minergy which is a power-generating business
was almost through in step 4 but he decided to come back in the afternoon against a crowd
of waiting applicants in the open area beside the issuance window. The applicant for a
storage facility involved in wholesaling and storage of fertilizer was at step 4 also but he
had to get money to pay additional tax after re-computation of community tax was raised
by the BPLO.

Business Registration Process – New

Obtaining a Mayor’s Permit is one of the different procedures in starting a business. Many
local governments in the Philippines are taking measures to streamline their business
registration and licensing procedures to attract needed investment into their cities. In
Cagayan de Oro, INVEST project has initiated an assessment of the business registration
process for new applicants in 2012. The procedure for new BPLS applications follows the
same four-step process as in BPLS renewal. The period of assessment follows the
respective schedule of filing business permits for new applicants from February 4 to 21.
 Table 5 Travel, Waiting and Processing Time of Business Renewal Process but not
completed
Day Non peak Peak days
days
Date Jan 7 Jan 11 Jan 11 Jan 14 Jan 14 Jan 17 Jan 17 Jan 17
ctivity/Business milk travel Internet internet electrical minergy agri-fertil Air interne
distributor agency shop izer station
Travel time 0.10 0.30 8.79 1.38 0.75 1.81 5.06 2.40

Waiting time 0.17 38.81 7.75 44.10 0.00 30.72 86.7 3.51

Process time 10.84 49.02 48.93 39.87 25.71 19.72 21.9 14.01

Total 11.11 88.13 65.47 89.37 26.46 52.25 114 19.92

The new applicants used the same application form for permit renewal. The forms were
distributed this time by a treasurer’s representative inside the BOSS area as applicants
come in to inquire. After filling up the forms, an applicant goes directly to the Tax Mapping
Division in the adjacent building for an assessment of tax payments and get his tax due
worksheet. This is equivalent to step 1 in Figure 1. The applicant then goes back to the
BOSS area to pay tax and other fees to the same desk officers assigned in the previous week
for permit renewal and thereby completes step 2. The applicant begins Step 3 by
submitting his documents to the treasurer’s representative for validation. The last Step 4
ends with the receipt of business permit from an issuance officer in the BOSS area.

Seven new business permit applicants were asked to participate, 5 of them were in the
service sector, one in an agriculture-based business and one in the industry sector.
Unfortunately, data for the industry sector applicant was not completely tracked down as
she went through several disruptions. Summary result for 6 respondents is shown in
Table 5. Step 1 as displayed in Figure 1 is split into two because the process requires the
applicant to move to another building for tax due assessment. The average number of client
interface is eight. Step 1 may involve two interfaces, one upon securing the application
form and another for submitting back for evaluation and asking for the next step. There are
a total of five forms including two copies of the application form, a tax due worksheet, two
receipts, and the business certificate. Additional forms may include the community tax
certificate, and an RCB clearance for internet or multi-media businesses. Required
documents are application forms, DTI/SEC registration certificate, barangay business
clearance, community tax certificate, RCB clearance, tax due worksheet, and payment
receipts.

The average cost paid by applicants is 4,106.08 (Php) up to an observed maximum of 8,690
(Php). Average time spent during the whole application process was about 47 minutes,
with processing or transaction time of about 36 minutes and waiting time of about 8.4
minutes. Maximum value of the average processing time observed for 6 respondents could
reach 72 minutes, depending on the compliance of requirements and the pacing of
applicants. Longer time was observed in the assessment and issuance because they have to
go to the adjacent building and deal with the secretary or assistant. Delay sometimes
occurs when signatories are not around during the process. Also, without prior experience
with payable taxes and fees, new applicants underestimate these amounts and are
compelled to cut the application for trips to the bank, ATM, or other sources. Since new
applications are comparably fewer than renewals, traffic through the business registration
process is relatively faster and the waiting time, shorter. Further, the BOSS facilities prove
to be more comfortable, the specific personnel more efficient, and clientele more calm with
the process during the new applications period.
 Table 6 Summary Table of the Number of Steps, Client Interface, Forms, Costs,
and Signatories for New Business License

Step No. Name of Step Client Forms Required Cost Signatory Travel Waitin
Interface (number) Documents (PhP) Time Time
(number) (min) (min)
1 Securing form 1 1 0 0.00 0 0.162 0.045
and preparing
documents
2 Tax 2 1 3 0.00 2 0.347 3.12
mapping/asse
ssment
3 Payment 2 2 4 4106.08 3 0.532 2.21

4 Issuance 2 0 7 0.00 1 1.54 1.26

5 Release 1 1 0 0.00 1 0.12 1.75

Total/ 8 5 7 4106.08 7 2.71 8.38

average
 Process Flows in the BOSS area

The Cagayan De Oro Business One Stop Shop process is streamlined against the four-step
CDO BPLS application and renewal flow displayed in Figure 1. An applicant starts the
process by securing application forms from the person seated behind a table in front of the
assessment section. After filling up the requirements and preparing the pre-registration
requirements, the applicant submits his documents through the assessment window
marked in the figure below as number One. Figure 2 demonstrates the direction each step
places the applicant.

Figure 2 Process Flow in CDOBOSS

To manage the queue, 38 square-meter waiting lounge seats 30-40 clients in Step 2 waiting
for their turn to pay taxes as they are prompted by a digital machine. A ramp connects this
lounge to a floor that is about 3 feet lower than the waiting lounge. Taxes and fees are
collected in two long tables running parallel to each other. On this first table are two
cashiers and a representative of the Bureau of Fire Protection (BFP).

The applicant begins step 3 by proceeding to a table behind the tax collection area to
validate documents for issuance of his new permit. Two desk officers manned the table for
issuance and two more officers assist the release of permits in step 4. Applicants pass
through the nearest exit door and wait outside of the BOSS area for their number to be
called.
 Assessment of the Business One Stop Shop (BOSS)

The study funded by USAid through LINC EG, “Securing Business Licenses in Cagayan de Oro
City and its Impact to the Establishment of Local Business “ (CUREXO-IDS, 2010), paved the
way to the establishment of the Cagayan de Oro Business One Stop Shop. Two years after,
the INVEST project follows up the study to assess the improvement of the BOSS
implementation. The BOSS refers to an arrangement where a single common site or
location is designated for all concerned in the BPLS to receive and process applications for
business registration through a streamlined system.

Layout of the BOSS

As shown in Figure 2, the designated area for CDO BOSS is a 123.84 square-meter area in
the left wing of the City Hall building adjacent to the City Treasurer’s Office. This area is
flanked on two sides by a series of windows for simultaneous receipt, assessment,
payment, and release of business permit and licenses.

The office is organized roughly around the four steps in securing a business permit in one
location. Upon entrance to the City Hall premise through the left walkway, application
forms can be secured and filled out on tables on the covered walk outside the assessment
section. Applicants most of the times, however, would have to ask any immediate personnel
where to go next. A flowchart in English is tacked on the wall between the City
Treasurer’s Office and the BOSS entrance. This, the researchers observe, is a nonstrategic
location for the BOSS operation in January 7 - 21 since there is a considerable distance from
the actual starting point outside the assessment section and an applicant does not get to
see it at the start of the process. The procedural steps also on the wall do not match with
that in Figure 1 on the four-step BPLS procedure but is functional for new applicants
during their February 4 – 27 schedule.

Amenities in the BOSS area are the barest essentials. Seating capacity and clientele comfort
inside BOSS and releasing waiting area are highly dependent on peak or non-peak days.
Conditions in the open-air waiting area for releasing of permits only pose discomforts on
disagreeable weather conditions. Big electric fans were placed at the two waiting areas.
Management has not come to a point when they could serve coffee for the clienteles
although they serve coffee to their personnel. Other amenities include one air-conditioning
unit, a TV inside the assessment section and several monitors up the cashier windows
facing the BOSS personnel and other clients. Two units of television were installed in both
the BOSS waiting lounge and the permit release waiting area towards the last six days of
permit renewal.

One toilet is located inside BOSS area but is supposed to service the personnel only since its
location behind the assessment section deems it inaccessible for the clients. The
applicants have to go around the adjacent building if they feel personal discomfort.

Participants in the BOSS

The entrance to the BOSS area holds two tables. These furnishings are often unmanned and
without any sign distinguishing one from the other so that they seem to serve no clear
purpose. Upon the researcher’s query, these tables were found out to be for the Bureau of
Fire Protection (BFP) and for a BOSS information officer. The BFP personnel were at the
beginning of the renewal period but later disappeared towards the last week. Their
presence served as information officer regarding BFP matters. The BOSS information
officer entertains different clients, responds to queries and distributes slips for community
tax application. Clients just come and go and do not stay long around these tables.

Several offices and national government agencies are in the BOSS processing. Present as
signatories and collection or approving bodies are representatives of the Bureau of Fire
Protection (BFP), personnel from the City Finance, and Mayor’s Office. Among the other
agencies that used to be part of pre- application requirements, the BFP is the only NGA
allowed to collect fees inside the BOSS. Personnel from the City Finance help in the
evaluation, assessment and collection of tax and other regulatory fees such as the annual
building inspection fee, tax on billboards, signboards, advertisement, manager’s fee,
business registration plate, garbage fee, health certification fee, mayor’s permit fee,
occupation permit fee, zoning fee, sanitary permit fee and OF certification fee. Personnel
from the Mayor’s office validates documents, encode data and issues business permits.
They are always present throughout the period everyday except on lunch breaks.

An assessment of the BOSS operations reveals varying efficiencies on peak and non-peak
days. On the latter, issuance and release of permits by personnel from the City Finance
was faster on the average at 1.88 minutes and 3.41 minutes compared to the time spent in
other steps. Submission and assessment of taxes was longer at 15.91 minutes on the
average.

Exit Interview: Customer Satisfaction Survey Findings

Profile of Respondents and their Businesses

To obtain feedback from the business permit applicants on their actual experience in doing
transactions an exit interview was conducted. Table 7 shows that a majority (43.3%) of
either male or female are owners of the business while 36.7 % are employees or staff of the
business and 19 % are friends or family members of the business owner. Only 3
respondents or 1.0 % are service providers. Female owners (47.3 %) were more inclined to
process their own business permits than male owners (39.3 %). Among the male
respondents, majority (40.7 %) are employees or staff of the business, followed by owners
of the business (39.4%). Among female respondents, 47.3 % are owners of the business,
32.7 % are staff of the business, and the rest are either friend/family (18.7 %) or service
providers (1.3 %). More male staff transacted the owner’s business than females but it
seems that the type of respondents other than owners does not generally determine
applicant’s sex.

Table 7 Profile of Respondents by Ownership or Relationship to Owner and by

Sex
Type of Respondent Male Female Total

f % f % f %
Business owner 59 39.30 71 47.30 130 43.30
Business staff 61 40.70 49 32.70 110 36.70
service provider 1 0.70 2 1.30 3 1.00
family/ friend 29 19.30 28 18.70 57 19.00
Total 150 100.00 150 100.0 300 100.00

Most businesses applying for permits belong to the service industry particularly wholesale
and retail activities including repair of vehicles (43.0 %), real estate activities (11.0 %),
accommodation, and food service activities (9.0 %). Smaller proportions of other kinds of
businesses are presented in Table 8. Majority of the businesses are owned by single
proprietorship numbering 220 out of 300 applicants (73.33 %). Corporations followed
next with 57 out of 300 (19.0 %) and cooperatives with 17 applicants. Most of the single
proprietorship businesses are into wholesale and retail activities while cooperatives are
mainly financial and insurance activities.

kind of business business Total

classification
single partnership corporation cooperative
agriculture, forestry and 5 0 1 0 6
fishing
(2.3) (0.0) (1.8) (0.0) (2.0)
mining and quarrying 1 0 0 0 1
(0.5) (0.0) (0.0) (0.0) (0.3)
manufacturing 3 0 0 0 3
(1.4) (0.0) (0.0) (0.0) (1.0)
electricity, gas,, steam, and 2 0 0 0 2
air conditioning
 (0.9) (0.0) (0.0) (0.0) (0.7)
water supply, sewerage, 2 0 0 0 2
waste management and
remediation
(0.9) (0.0) (0.0) (0.0) (0.7)
construction 6 0 1 0 7
(2.7) (0.0) (1.8) (0.0) (2.3)
wholesale and retail trade, 109 3 15 2 129
repair of motor vehicles
(49.5) (50.0) (26.3) (11.8) (43.0)
transportation and storage 5 0 4 0 9
(2.3) (0.0) (7.0) (0.0) (3.0)
accommodation and food 20 1 4 2 27
service activities
(9.1) (16.7) (7.0) (11.8) (9.0)
information and 8 0 0 0 8
communication
(3.6) (0.0) 0.0 (0.0) (2.7)
financial and insurance 3 0 14 8 25
activities
(1.4) (0.0) (24.6) (47.1) (8.3)
real estate activities 29 1 2 1 33
(13.2) (16.7) (3.5) (5.9) (11.0)
professional, scientific and 5 1 2 0 8
technical activities
(2.3) (16.7) (3.5) (0.0) (2.7)
administrative and support 8 0 6 3 17
service activities
(3.6) (0.0) (10.5) (17.6) (5.7)
education 0 0 2 0 2
(0.0) (0.0) (3.5) (0.0) (0.7)
human health and social 2 0 4 0 6
work activities
(0.9) (0.0) (7.0) 0.0 (2.0)
arts, entertainment, and 4 0 2 1 7
recreation
(1.8) 0.0 (3.5) (5.9) (2.3)
other service activities 8 0 0 0 8
(3.6) (0.0) (0.0) (0.0) (2.7)
Total 220 6 57 17 300
(100.0) (100.0) (100.0) (100.0) (100.0)

Majority of businesses are micro businesses in terms of employee size (83.33 %), and of
single proprietorship (93.2 %). This implies that the majority of businesses have about 10
employees or less. Table 9 also presents small businesses of about 13.3 %. Only 6 or 2.0 %
are medium size and 1 or 0.3 % is considered large. Among six business partnerships about
two–thirds (66.7 %) are also micro businesses and only about one–sixth (16.7 %) are
considered small. The 57 corporations among the applicants are mostly micro
businesses also with only 38.6 % that are small and 2 (3.5 %) are medium-sized
businesses. The perceptions that we obtain regarding their experience in the application
process comes mainly from individuals in micro businesses.
Table 9 Profile of Respondents by Business Size and by Business Classification
employee size business classification Total

single partnership corporation cooperative

micro 205 4 32 9 250
(93.2) (66.7) (56.1) (52.9) (83.3)
small 13 1 22 4 40
(5.9) (16.7) (38.6) (23.5) (13.3)
medium 2 0 2 2 6
(0.9) 0.0 (3.5) (11.8) (2.0)
large 0 0 0 1 1
0.0 0.0 0.0 (5.9) (0.3)
No response 0 1 1 1 3
0.0 (16.7) (1.8) (5.9) (1.0)
Total 220 6 57 17 300
(100.0) (100.0) (100.0 (100.0) (100.0)

Table 10 shows most of these businesses are relatively new; 47.0 % of the respondents
have businesses that have been in operation for five years and over half of this (24.33 %)
have been in operation between 6 to 10 years. Another 10 % of the businesses have stayed
in business for 11 to 15 years already. Less than 10 % of the businesses were started from
16 to 25 years ago while 10.31 % of them have been operating for over 25 years; one still
exists for over 70 years as per survey data. Most of the micro, small and medium
businesses are new being registered in the first 10 years. Some medium-sized business are
older and the lone large company was the oldest.

Table 10 Profile of Respondents by Length of Time in Operation and by

business size
length of time in operation Employee size Total

Micro small medium large No response

 5 and less 122 16 3 0 0 141
(48.8) (40) (50) (0.0) (0.0) (47)
6 - 10 60 12 1 0 0 73
(24) (30) (16.67) (0.0) (0.0) (24.33)
11 - 15 27 2 0 0 1 30
(10.8) (5) (0) (0) (33.33) (10)
16 - 20 10 2 0 0 0 12
(4.0) (5) (0.0) (0.0) (0.0) (4)
21 - 25 5 0 0 0 0 5
(2.0) (0.0) (0.0) (0.0) (0.0) (1.67)
26 - 30 8 2 0 0 0 10
(3.2) (5) (0.0) (0.0) (0.0) (3.33)
31 and above 11 6 2 1 1 21
(4.4) (15) (33.33) (100) (33.33) (7.0)
no response 7 0 0 0 1 8
(2.8) (0.0) (0.0) (0.0) (33.33) (2.67)
Total 250 40 6 1 3 300
(100) (100) (100) (100) (100) (100)

Majority of businesses are owned by local Filipinos (96.0 %) but a few are owned by
foreign nationals (1.0 %) or are joint ventures with local owners (2.7%). All or majority
of Filipino- owned businesses are into different business classification and only 2 foreign –
owned businesses out of 220 (0.9 %) are single proprietors while one out of 57 (1.8 %) is a
foreign corporation. Some business out of 57 corporations is a joint venture with Filipino
owners (10.5 %).

Table 11 Profile of Respondents by Citizenship of Owners and by Business

Classification
citizenship of owners business Total
classification
single partnership corporation cooperative
Filipino 217 5 49 17 288
(98.6) (83.3) (86.0) (100.0) (96.0)
Philippine-foreign 1 1 6 0 8
venture
 (0.5) (16.7) (10.5) (0.0) (2.7)
Foreign 2 0 1 0 3
0.9% (0.0) (1.8) (0.0) (1.0)
No response 0 0 1 0 1
(0.0) (0.0) (1.8) (0.0) (0.3)
Total 220 6 57 17 300
(100.0) (100.0) (100.0) (100.0) (100.0)

Perceptions of Process
Although a considerable proportion of the respondents estimated the processing time for
renewal of business permits to last for over a day due to unmet pre-registration
requirements such as the barangay business clearance, about 60.00% of the whole sample
was able to complete the process at the BOSS for over an hour but within the day (Table
12). More female applicants completed the renewal within the day than their male
counterparts and more male applicants finished the renewal process over a day compared
to their female counterparts.

Majority of the applicants took their application form only during their pre-submission
preparation at the entrance of the BOSS area. Table 13 indicates 80.0 % referring to these
applicants with another 17.0 % who went directly to the business permit licensing office or
the treasurer’s office. They could be most probably bookkeepers and service providers who
are mostly female (22.7 %).

Table 12 Duration of Business Permit Processing

how long did it take you Male Femal Total
to get the permit e
f % f % f %
less than one hour 35 23.3 47 31.3 82 27.3
more than 1 hour but 91 60.7 89 59.3 180 60.0
within the day
more than 1 day 24 16.0 14 9.3 38 12.7
Total 150 100.0 150 100.0 300 100.0

Table 13 Sources of Application Form

where the form was Male Femal Total
obtained e
f % f % f %
Internet 1 0.7 1 0.3
Business permit licensing 17 11.3 34 22.7 51 17.0
 office/treasurer
business one-stop shop 130 86.7 110 73.3 240 80.0
unspecified source 3 2.0 5 3.3 8 2.7
Total 150 100.0 150 100.0 300 100.0

Most of the clients who were interviewed occasionally revealed that they did not know that
the barangay business clearance is still required prior to the application unlike in the case
of applications done by bookkeepers. Respondent applicants usually obtain the application
form at the alley near the BOSS assessment window but some applicants realized that the
barangay business clearance is required in the application only at the assessment window
and as far in the process as the pre-payment area. Tables 14 reveals that about 12 % of
applicants did not get the required documents needed to have an undistracted process
within the day. More males observed this inadequacy for 24 out of 37 applicants (64.9 %).
The bigger 2.9 % in Table 15 attributed it to lack of barangay business clearance and 2.3 %
for repeated corrections at the assessment window regarding the filling out of forms. The
fees according to them also are not based on clear tax bracket as assessment fees in several
applicants with similar businesses are not uniform. Other comments in Table 15 are
concerned with the distribution area for application forms. About three complained there
was no information for directions; obviously they missed the information at the back of
their application forms. The remaining four applicants complained regarding their process
at the BOSS area particularly at the releasing area and the additional tax payments for
special businesses.

Table 14 Availability of Information Necessary for Business Permit Renewal

availability of male female Total
information
f % f % f %
Yes 126 84.0 137 91.3 263 87.7

No 24 16.0 13 8.7 37 12.3

Total 150 100.0 150 100.0 300 100.0

Table 15 Offices That Did Not Provide Needed Information

from which office did you not get Male Femal Total
information e
f % f % f %
Distribution Area 2 1.4 0 0 2 0.6
no information given 0 0 1 0.7 1 0.3
 Assessment Area 4 2.8 3 2.1 7 2.33
Dako ang bayranan (Fees are too expensive)
not clear bracket in the assessment
Kulang bayad (Not enough funds)
fees to be paid are not explained
barangay 5 3.5 4 2.7 9 2.9
had to go back and forth from one staff to 1 0.7 0 0 1 0.3
another, one building to another
BOSS 1 0.7 0 0 1 0.3
Issuance of priority numbers not in right 0 0 1 .7 1 0.3
sequence
RCB 1 0.7 0 0 1 0.3
Sub-total 14 9.33 9 6.0 23 7.67
No response 136 90.7 141 94.0 277 92.3

One of the complaints expressed by some of the applicants about the renewal process was
“unclear instructions” from BOSS personnel. Table 17 enumerates the applicant’s reaction
to the “How clear were the instructions” question and reflects the most complained about
matters as “no clear direction to the next step” and “any signage or summary of steps”. On
the one hand, an ocular inspection of the BOSS area revealed that there was in fact a step by
step summary of the business renewal process by the stair landing just before the entrance
to the City Treasurer’s office and the Business Tax Mapping Division. This, however, did not
seem to maximize its function where it was located at the time of survey because of its
considerable distance from the BOSS receiving windows where applicants have their first
interface. In addition, there was an observed discrepancy between the actual process flows
and the instructions posted as signage outside the CDO BOSS during the renewal period.
For instance, in the signage at the end of step 1 an applicant has to go to the Customer’s
Relations Officer before going to the assessment section. In the actual process during
renewal period the applicant submits his application form to the assessment window in
step 1. It seemed that the signage is applicable during the new permit application period.

Other observations deemed by some applicants as “unclear” is the requirement of a

barangay “business” clearance, tax mapping bracket, special requirements from Tourism
Office or the Regulatory Compliance Board (RCB). Barangay clearance obtained by most
applicants is applicable to socio-civic and political purposes and not for business related
issues and zoning purposes. Tax mapping bracket are questioned because the fees are not
uniform for similar businesses and some business who incurred losses in the previous year
are meted with the same tax dues. Special requirements from Tourism Office or the RCB
are came up when the applicant is about to complete the process and the applicant cannot
help but to feel dispirited by the interruption. Generally, most of the applicants in the
sample disclosed that instruction for renewal of permits was clear (31.3 %) or very clear
(56.0 %) indicated in Table 16.

Table 16 Distribution of Client Responses Regarding the Clarity of Instructions

by Sex
Clarity of Instruction Male Female Total

f % f % f %
very clear 78 52.0 90 60.0 168 56.0
a little clear 13 8.7 7 4.7 20 6.7
Clear 51 34.0 43 28.7 94 31.3
a little unclear 8 5.3 7 4.7 15 5.0
very unclear 0 0 3 2.0 3 1.0
Total 150 100.0 150 100.0 300 100.0

Table 17 Offices That Gave Unclear Instructions

office or description of complaint office Frequency Percent
Assessment Section 3 0.9
business clearance required before, now it’s barangay
business clearance
BPLD-Tax Collection 4 1.2
Cashier forwards queries to other windows
cedula, Information
no staff for change address
tax mapping
BOSS-Business Permit and Licensing Office 6 1.8
additional requirements demanded, BPLO
payment, repeating priority numbers, not clear
instruction (BOSS collection and issuance)
Instruction (for travel and tours)
no clear direction to the next step
Doesn’t know where to start- no clear direction
no signs
no summary of steps

The most common areas of the renewal process where applicants spent the most waiting
time were the lounge prior to tax collection and the open-air space outside the BOSS before
the release and claim window. Processing in these areas have become bottle necks in the
entire process during peak days of the renewal period. When asked how they feel while
waiting in these areas, majority of the respondents in the exit interview were either very
comfortable, comfortable, or a little comfortable which add up to 88.2 % in Table 18. Most of
them attributed the very comfortable evaluation to the air-conditioned waiting lounge and
the fast processing of transactions while the bigger proportion who declared they were
comfortable appreciated the provision of chairs, shade, air-conditioned waiting lounge, and
fast service. Perhaps the only drawbacks were the long wait, inadequate seating for a large
crowd, and extreme weather conditions. About 11.0 % were a little uncomfortable or very
uncomfortable because of these observations. Other applicants complained of the lunch
break that interfered with and therefore delayed the process.

Table 18 Distribution of Responses on the Applicant’s Comfort While Waiting

for Business Permit Processing
how do you feel while Male Female Total
waiting
f % f % f %
very comfortable 21 14.0 37 25.0 58 19.3
a little comfortable 31 20.7 22 14.9 53 17.6
Comfortable 78 52.0 76 51.4 154 51.3
a little uncomfortable 18 12.0 11 7.4 29 9.7
very uncomfortable 2 1.3 2 1.4 4 1.3
No response 0 0 2 1.3 2 0.7
Total 150 100.0 150 100.0 300 100.0

The batch of respondents in this year’s exit interview seemed to have higher standards of
friendliness and helpfulness. Table 19 reveals that 33.33 % of respondent applicants who
found the staff very friendly as compared to 70 % of last year’s respondents
(INVEST-USAID, Integrated Assessment Report, 2012). Some of them declared staff
members inside the BOSS as impolite, stern, and inconsiderate. More than 50 % of
applicants considered the personnel who served them friendly. In general, a majority of the
respondents, at 96.97% considered the staff to be at least a little friendly and mentioned
pleasing quality like being accommodating and calm while working on the client’s
application. Another 2.4% said otherwise.

Table 19 Distribution of Responses to “How friendly were the staff?”

how friendly were the Male Femal Total
staff e
f % f % f %
 very friendly 53 35.3 47 31.3 100 33.3
a little friendly 27 18.0 18 12 45 15
Friendly 67 44.7 79 52.7 146 48.67
a little unfriendly 2 1.3 3 2 5 1.7
not very friendly 1 .7 1 0.7 2 0.7
No Response 2 1.3 2 0.7
Total 150 100.0 150 100.0 300 100.0

Majority of the applicants considered the BOSS staff helpful (45.3 %) and very helpful (42.0
%) and only a few (1.0 %) said they are a little unhelpful. However, one applicant
commented that the BOSS personnel can do more by maintaining eye contact during
interface and being pleasant to clients they are serving.

Table 20 Distribution of Responses to “How helpful was the staff?”

Helpfulness male female total

F % f % f %
very helpful 68 45.3 58 38.7 126 42.0
a little helpful 21 14.0 14 9.3 35 11.7
helpful 59 39.3 77 51.3 136 45.3
a little unhelpful 2 1.3 1 0.7 3 1.0
Total 150 100.0 150 100.0 300 100.0

Very satisfied applicants numbered up to 37.8 % which brings to 87.3 % who were
generally satisfied. Table 21 also shows about six clients were dissatisfied with the service
rendered by the BOSS staff. Other applicants also noticed that a few personnel inside the
BOSS were a little mean or unfriendly. At least one of them also allegedly cut queues to
prioritize preferred or personal acquaintances. Contrary to findings in the data, however,
most of the applicants in the casual interview admitted the BOSS renewal process this year
is better and faster than the last year.

Table 21 Distribution of Responses to “How do you feel about the service?”

how do you feel about male female total
the service
 f % f % f %
very satisfied 52 34.7 61 40.6 113 37.8
Satisfied 81 54.0 67 44.6 148 49.5
Neutral 13 8.7 19 12.7 32 10.7
Dissatisfied 4 2.7 2 1.3 6 2.0
No response 0 0 1 0.7 1 0.3
Total 150 100.0 150 100.0 300 100.0

A commonly raised issue was the steady and constant rise of business fees and taxes. Some
other respondents also complained of what some of them called an “unfair” tax bracketing.
When asked whether they think the fees they paid are reasonable, about two-thirds or
66.67 % of the respondent applicants affirmed they were reasonable which indicate that
these comments could come from some 33.4 % of other applicants, a considerable
proportion of disgruntled applicants.

Table 22 Distribution of Responses to “Do you think that the fees you paid to
secure the business permit are reasonable?”

Reasonable male femal Total

fees e
f % f % f %
yes 97 65.1 102 68.0 199 66.67
no 52 34.9 48 32 100 33.4
Total 149 100.0 149 100.0 298 100.0

A majority of the respondents (93.2 %) look forward to go through the same process again
next year. About 3.2 % of the applicants expressed the contrary while about 3.6 % are
indifferent. Tables 22 and 23 present the distribution of responses to tax and other fees and
of repeating the process next year.

Table 23 Distribution of Responses to: “How do you feel going through this
process next year? “
 how do you feel about going male female Total
through the same process
next year
f % f % f %
looking forward to it 129 90.8 132 95.7 261 93.2
not looking forward to it 8 5.6 1 0.7 9 3.2
Indifferent 5 3.5 5 3.6 10 3.6
Total 142 100.0 138 100.0 280 100.0
Responses by Sex

Whether the applicant is a male or female might elicit different perception of the
application process. Table 16 shows that more female (60.0 %) respondents found the
instructions in the renewal process to be very clear. However, the distribution is more
spread apart than their male counterparts showing that more of the former are perhaps
confused than the latter. Table 18 shows more female (91.3 %) felt comfortable during the
process inside BOSS than the male (86.7 %).

In Table 19, the male applicants seemed easy to please and a large proportion of them
found the staff very friendly (35.30 %) compared to the female counterparts who had more
varied assessments. Table 20 reveals more male applicants considered the staff very helpful
(45.30 %) while more females rated them as helpful (51.30 %). In general, more females
(99.3 %) rated the BOSS personnel ranging from at least a little helpful to very helpful than
how the males rated them (98.6 %).

Although more male clients (88.7 %) were satisfied by the service compared to the female
(85.2 %), 4 out of 6 of the unsatisfied clients were males (Table 21). Perhaps one reason
might be because male applicants in Table 22 are a little less or not amenable (34.9 %)
about the fees they paid than the female (32.0 %). Although large enough, only 90.8 % of
males look forward to go through the same process next year than 95.7 % of females as
shown in Table 23.
ANALYSIS

Comparison with JMC Standards

There are five standardized process indicators set by DTI-DILG Joint Memorandum Circular
(JMC) No. 1 of 2010 which include the following: 1) Secure Application Form, 2) File
Application for Renewal, 3) Submit documents for One-Time Assessment, 4) One-Time
Payment, and 5) Claim Business Permit. In comparison, the Cagayan de Oro City-BOSS is
up to par with the national benchmarks with its streamlined four-step process.

Table 24 JMC Standard versus CDOBOSS - Renewal

JMC STANDARD
Securing the application form
Filing the application for renewal
Submit documents for one-time assessment
One-time payment
Claiming the business permit
CDO BOSS BPLS
Secure and submit application for business license
Pay assessed business tax and fees
Submit documents to customer relations service
(CRS) for validation
Claim business permit

A unified application form is secured, filled out, and submitted to a window. These three
tasks in a single first step at the CDOBOSS generate a tax and fees assessment, an initial
step that is equivalent to the first three steps in the JMC standard. Payment of assessed fees
follows suit in the CDOBOSS as in JMC Standard step no. 4. Documents are then submitted
to a customer relations officer, just as in the JMC standard third step. However, as per the
researchers’ observation, some applicants were called back from the permits release
waiting area (CDOBOSS Step 4) when discrepancies in their documents are only discovered
in this second to the last step. This is a setback in the CDO BOSS’ good practices evidenced
by a shortened and more convenient application process. Therefore, a more thorough
assessment is suggested in the initial part of the application process. Finally, permits are
released and claimed in the CDO BOSS Step 4, equivalent to JMC Step 5.

For new applicants, there are as many steps in the JMC standard as there are steps in the
CDO BPLS but the tasks vary in every step. Step 1 in CDO BPLS starts from securing the
application form and pre- submission requirements like the barangay clearance to
evaluation of requirements for the customer relations service. In the JMC standard, it takes
two steps to reach these tasks. Step 3 in the JMC is considered step 2 in the CDO BPLS when
the applicant goes to the adjacent building for tax mapping and assessment. The
applicant then goes back to the BOSS area to pay these taxes and other fees in step 3, which
step 4 in the JMC which precedes claiming of the permit in step 5. But this assumes
automatic approval of the documents and fees. For CDO BPLS, step 4 requires validation in
the customer relations service in preparation for issuance of permit. Taxes and Fees are
reviewed and other special requirements such as clearance from the Tourism Office and
Regulatory compliance Board are checked prior to final releasing of permits in step 5.

Table 25 JMC Standard versus CDO BOSS - New

JMC STANDARD CDO BOSS BPLS

Securing the application form
Filing the application for new permits
Submit documents for one-time assessment
Secure and prepare application form for business
license
Submit application to Tax Mapping Division for
assessment
Pay assessed business tax and fees

One-time payment Submit documents to customer relations service

(CRS) for validation
Claiming the business permit Claim business permit

Comparison with Principles of an Efficient Business Process

A mark of an efficient business process is the efficient use of the applicant’s time. A
business process is efficient according to three characteristic criteria: 1) use of backroom
processing by city offices, 2) does not require multiple copies of the same documents and
previous years’ clearances, and 3) number of visits per step.

The use of backroom processing is efficient in that it eliminates interfacing between

applicant and public official thereby reducing chances of discretionary behavior, ergo
corruption. This short-cut also allows the client to make use of the time he is spared from
actual process interface. Requiring multiples of previous years’ documents and records also
sets up room for complicated, time-consuming filing and lost or unknown documents.
Finally, more time is lost when an applicant needs to visit a step more than once.

Table 25 shows how the CDO BOSS measures up to this efficiency standard. Two out of five
signatories are relegated to backroom processing for the city hall and finance offices.
Further, the CDO BOSS does not require multiples or past copies of clearances and other
documents, therefore saving the applicant ample time although some applicants suggested
to remove other “required” information in the form which are already previously encoded
in the computer and does not change all the time. The applicants also were asked to get the
permit number of their previous business certification for queuing purposes. Overall, the
BOSS is efficient in that the steps go from one point of the process to another with no
turn-backs or multiple visits and non-requirement of previous documents and clearances.
 Table 26 Principles of an Efficient Business Process v. CDO BOSS

Efficient Business Process CDO BOSS

use of backroom processing by city offices Two out of five signatories for the city hall
and finance offices

required multiple copies of the same documents None

and previous years’ clearances,
number of visits per step Only 1 visit per step

Comparison with BOSS Prescriptions

The BOSS, by its very definition is a single entity that the investor can go to for approvals of
all the requirements through a streamlined and coordinated process, is designed to reduce
or even eliminate the complexity of the administrative procedures that investors undergo
to start and renew a business.

In comparison, all processes of the BPLS in Cagayan de Oro City take place in one physical
place, the BOSS of the Cagayan de Oro City Hall. This satisfies the “single entity”
requirement in terms of a sole go-to place. However, the BOSS could do much more by
installing officers from clustered barangay units for clearances. Unlike the last year’s
processing time, an applicant can claim his business permit within a day and the BOSS
compliance to the JMC definition has improved.

Moreover, processes are coordinated and streamlined except for isolated cases of
disgruntled tax payers who had to cut in between steps to deal with what they perceive to
be “unfair” billing. In addition, the CDO BOSS can streamline their system even more by
disseminating the availability of a downloadable form and internet posted procedure and
requirements.

Business One-Stop-Shops (BOSS)

The current system for the processing of business permit and license renewals is a far cry
from the previous years. In terms of ease, speed, and the physical accessibility of one
processing desk to another, the present system proves to be more efficient. Table 3 shows
that permits are generated on an average of 100.93 minutes (1 hr and 41 minutes).In the
past, as per respondent observation and recall, the process took more than two working
days to complete. This stark contrast can be attributed to the difference in the number of
signatories; where the applicant had to secure 13 signatories in the past; the present BOSS
only requires seven. The first signatory is obtained upon submission of the application
form, two more from tax assessment, one from the BFP, BT, and upon claim of the business
permit.

Moreover, the present BOSS system maximizes each of the four-step process by requiring
the applicant to fulfill up to three tasks for submission to one window or service desk. In
the past, the one to two-day process necessitated the applicant several trips to and from
the BOSS. Payment stations were also in the same floor but not within close proximity to
each other. The BIR and BFP had desks outside BOSS. This is very different from the
present BOSS where payments (BFP fee, Business Tax) are done in adjacent desks in an
enclosed square space. BIR officer is no longer required in the CDO BPLS at present.

Furthermore, the present BOSS layout and system offers conveniences not offered in the
past. An application form is readily available at the city government website
(www.cagayandeoro.gov.ph). A queuing system was also easily established since the
process has only four major steps with most tasks to be accomplished in desks in close
proximity to each other.

In Cagayan de Oro, BPLS allows bulk processing of multiple accounts through bookkeepers
and the city treasurer’s office. A satellite BOSS is also placed at the DTI office and booths in
Carmen and Cogon markets during the renewal period. This is an efficient but lesser known
and therefore not fully utilized aspect of the CDO BPLS.

Comparative Analysis of the 2012 and 2013 Results

Business registration – Renewal

The numbers of steps for business permit and license renewal currently remains at four
since last year’s report on the CDO BOSS. Number of interfaces also remains at 8.
Table 26 reflects 9 interfaces on the average with return calls by individual transactional
differences. A good practice of requiring only one document, the barangay business
clearance, for attachment to one unified application form has also been sustained since last
year. Table 26 again reflects 5 including forms needed to present at each step such as tax
due worksheets, individual/company tax certificate, application form and receipts. The
number of forms to fill up is 2 copies of application form and the community tax certificate.
Other forms obtained are tax and fees receipts and the business permit. A total of 4 to 5
signatories throughout the whole process, however, is an observed improvement since last
year’s 13. Moreover, the whole process only took an average of 1 hour, 41 minutes
(Table 3) in the current BOSS while in the past it took 2 days, 1 hour, and 50 minutes. While
findings in the process of business registration renewals all point to significant
improvements in processing time, the monetary cost this year racks up on average of PhP
14, 641.47.00, a substantial increase in last year’s PhP 2, 785.00.

Table 27 Comparative Summary of Findings per Process Indicator

 Indicators 2012 2013
Number of Steps 8 4
Number of Interfaces 8 9
Number of required Documents 1 5
Number of Forms 2 5
Number of Signatories 13 4-5
Total Length of time Elapsed 2 days, 1 hour and 50 1 hour, 41 minutes
minutes
Number of visits per office 1 1
Total monetary cost 2,785 – 4,826 749 – 104,051

Business One-stop Shops (BOSS)

Basic amenities at the CDO BOSS include air-conditioning, a waiting lounge, and a flat
screen TV installed only on the last few days of the renewal process when the crowd was at
its largest. Streamlining in the process also reduced the number of personnel from last
year’s 36 to only 10 in the various desks. The BFP desk is also the only other outside
government agency represented in the BOSS.

Perhaps the few good practices not maintained since last year are the continuous service
with no lunch break and the distribution of information kits on the registration process.
This year, signs and posts referring to the process proved to be nonfunctional since these
were neither strategically located nor appropriate for BOSS processing at that time.

Customer Satisfaction Survey

Despite improvements evidenced by a streamlined process and reduced signatories and

requirements in the CDO BOSS, current customer perception of the experience is
pessimistic in contrast to last year’s positive ratings in some indicators. Despite the shorter
processing time revealed by results of the time-motion study, only 27.3% of the
respondents thought that the transactions only cost them less than 1 hour compared to last
year’s 43%. Majority of them at about 60 % thought that processing time took them
more than an hour compared to 34 % last year. In general, 87.3 % of 2013 applicants
thought that they can complete the business permit processing within the day compared to
77 % of 2012 applicants.

Table 28 Comparative Percent Summary on Total Time spent in Permit Processing

Time 2012 2013
 Less than 1 hour 43 27.3
More than 1 hour 34 60.0
More than 1 day 23 12.7

With regard the clientele’s satisfaction with the LGU services, last year’s very satisfied lot of
51% dropped to only 37.8 %, 13.2 % lower than the 2012 rating. Several factors can be
considered as variables affecting customer perception of the process like weather
conditions in the open-air waiting area outside the release and claim window and
perceived rise in taxes and fees. Table 28 shows dissatisfied applicants in the present
year.

Table 29 Comparative Percent Summary of Applicant Satisfaction on Business

Permit Processing
Satisfaction 2012 2013
Very satisfied 51 37.8
Satisfied 47 49.5
Neutral 2 10.7
Dissatisfied 0 2.0

Applicant’s experience of comfort while waiting for the business permit processing also
dropped from last year’s very comfortable 70% to this year’s 19.3%. While many
applicants appreciated the fast-tracked service and air-conditioned atmosphere inside the
BOSS, more still complained of waiting among a large crowd without adequate seating
under extreme weather conditions in the release and claim waiting area. The lunch break
also interfered with their transaction and delayed the process.

Table 30 Comparative Percent Summary on the Applicant’s experience of Comfort

while awaiting Processing of Documents
Comfort 2012 2013
Very comfortable 70 19.3
Comfortable 21 51.3
A little comfortable 7 17.6
 Uncomfortable 2 9.7
Very uncomfortable 0 1.3

This year’s batch of applicants also proved harder to please, with only 33.33 % rating the
staff as very friendly compared to 70% of last year’s respondents. Generally, Table 30
reveals that more 2012 applicants found the BOSS staff last year friendly to very friendly
compared to the 2013 applicant’s perception of the present BOSS staff. Most descriptions
pointed at impolite, stern, tough, or inconsiderate personnel.

Table 31 Comparative Percent Summary on Applicant’s perception on Staff

Friendliness
Friendliness 2012 2013
Very friendly 70 33.3
Friendly 28 48.67
a little friendly - 15
a little unfriendly - 1.7
not very friendly - 0.7
Although ratings for very helpful level went down from 77 % last year to 42.0% this year,
the proportion of those who found the staff helpful increased from last year. However, one
applicant commented that the BOSS personnel can do more by maintaining eye contact
during interface and being pleasant to clients they are serving.

Table 32 Comparative Percent Summary on Applicant’s Perception on Staff

Helpfulness
Helpfulness 2012 2013
very helpful 77 42
a little helpful - 11.7
helpful 19 45.3
a little unhelpful - 1.0

Moreover, when asked whether they think the fees they paid are reasonable, about
two-thirds or 66.67 % of the respondent applicants affirmed they were reasonable, just
about the same rating as last year.
 Table 33 Comparative Percent Summary of Applicant’s Perception on whether the
fees paid are reasonable
Response 2012 2013
Yes 66 66.67
No 34 33.4

As to whether they look forward to the same process again next year, a majority of 93.2%,
slightly lower than the 96 % last year said Yes. There is a slight decrease also of those
who are optimistic about it and the observation of indifferent applicants.

Table 34 Comparative Percent Summary of Applicant’s Perception on going

through the same process next year
how do you feel about going through 2012 2013
the same process next year
looking forward to it 96 93.2
not looking forward to it 4 3.2
Indifferent 0 3.6

Overall, contrary to findings in the data, however, most of the applicants in the casual
interview admitted the BOSS renewal process this year is better and faster than the last
year.

CONClusion and recommended bpls reforms for cagayan de Oro city

Conclusion

Compared to the previous business registration process and the DTI-DILG-JMC, Cagayan de
Oro City BOSS presents a much more efficient and improved process. The process has
improved from more than two days processing to less than two hours on the average
because of improvements in the physical arrangements of receiving and processing
personnel. Furthermore, the reduced number of signatories hastened the transactions.
This, coupled with the shortened registration and renewal steps, resulted to savings in
terms of time and cost for both the applicant and the public officers. It allowed for more
accomplished or completed transactions within the scheduled transaction period.

Recommendations
 Based on conclusions from assessment findings and analysis and the suggestions of BOSS
clientele, the following are recommended:

Business Registration Renewal and New Applications

 Maintenance and periodic updates of the city government website should provide correct
and useful information for business applicants, both prospective and existing. The webpage
should highlight application procedures and requirements and encourage use of the
available downloadable forms. It should also provide information regarding the satellite
BOSS facilities for public convenience and fast-tracked transactions.
 The CDO BOSS should consider developing an online application system that should
include a tax and fees assessment and other useful applications.
 The existing universal application form should be improved in terms of layout and
information requirements to pave the way to a potential paperless application process in
the future.
 The BPLS should create and develop a computer database of all registered businesses in
Cagayan de Oro City to eliminate repetitive filing procedures and enable easy retrieval of
old accounts.
 Registrations of new business names in the DTI database should be interlinked with the
CDO BOSS database for faster verification.
 Representatives from the Regulatory Compliance Board and the Tourism Office should be
at post in the CDO BOSS to provide auxiliary requirements (e.g. Customer Relations
Services Certification) for establishments offering internet and other communications
services should.

BOSS Recommendations
 The CDO BOSS should be relocated to the new building at the back of the old building. This
allows a larger workspace and more comfortable processing and waiting areas for business
registrants. A lounge can be set up with amenities like a café and entertainment facilities to
make for a customer-friendly registration experience.
 Posted BPLS procedures should be congruent to actual application steps. Signage should
also be placed strategically to facilitate the transaction. Included in posted relevant
communications should be the authorized fees for purpose of transparency.
 A personnel shifting schedule is highly recommended to prevent breaks in the process
flows.
 A dress code should be strictly implemented among the BOSS personnel for identification
purposes.
 Functional male and female toilets should be installed and made accessible to all the BOSS
clientele.
 An electronic priority numbering system should be installed in the distribution area
 windows (Step 1) and business permits release and claim area (Step 4).
 The BOSS should create and maintain a synchronized central database related to BOSS
operations among the offices within the city hall.

Customer Satisfaction
 Improvements in the physical amenities should cater to clientele comfort, time, and
cost-savings.
 Further staff development in the form of customer-relations and service trainings should
be organized for CDO BOSS personnel.
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USAID-Project INVEST. Integrated Assessment Report on the Renewal Process and the
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USAID-Project INVEST. Advisory No. 1: Guidelines n the Assessment of the BPLS Renewal
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Appendix 1 CDO BOSS During the BPL Renewal Period, January 7-21, 2013

Plate 1 CDO BOSS Assessment Windows

Plate 2 Bookkeepers' Lane at the Treasurer's Office

 Plate 3 Waiting Lounge for Business Licensing

Plate 4 Tax Collection and Releasing Area

Plate 5Business Permit Release and Claim Window

Plate 6 Waiting Area for Business Permit Release
Appendix 2 Process Table