Big Fast Result in 8 Step Methodology - Malaysia Transformation Journey

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1 Big Fast Result in 8 Step Methodology - Malaysia Transformation Journey 22 nd November 2017 Teoh Ze-han Senior Vice President zehan@pemandu.org

and work approach Public demands and input not adequately heard / obtained Poor accountability.

2 When PEMANDU 1 was tasked to transform the government of Malaysia, challenges they faced P1 P2 P3 P4 P5 P6 P7 P8 Unclear direction, not focused Lack of leadership commitment High level plans not translated into practical detailed implementation programme Rigid Implementation Silo mentality and work approach Public demands and input not adequately heard / obtained Poor accountability. Lack of Transparency and Trust Deficit (Public does not trust the Government) Source: 1 Performance Management and Delivery Unit (PEMANDU) was established in 2009, under the Prime Minister s Office 1

3 What is Transformation? Transformation entails fundamental changes in: The way the organisation DOES its business (Doing) The CHARACTER of the organisation (Being) It is not about minor tweaking! It operates its business differently It becomes a totally different organisation 2

4 Transformational Leadership Popular things The scope of expectations from the People Unpopular things Leadership is about dancing on the edge It is about building political capital (doing popular things the People wants) It is also doing something outside their expectation (unpopular things) Transformation is broadening the scope Transformation Leadership is about disappointing people at the rate they will permit Marty Linsky, Harvard Professor (Transformation Leadership) 3

Hence, in order to organise for implementation, Malaysia adopts the 8- step BFR Methodology 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7

5 Hence, in order to organise for implementation, Malaysia adopts the 8- step BFR Methodology 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1 STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and tracking 8 Steps of Transformation enables the Government of Malaysia, to outline initiatives; to address the problem at hand in order; The BFR 8-Step Methodology to meet its specific objectives; through a process that is inclusive and relevant. 4

Step-1 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in

6 Step-1 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1 STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and tracking Key decision makers ascertain the direction needed to set the National Key Result Areas (NKRAs) and National Key Economic Areas (NKEAs)

7 1,000 Person Workshop 1,000+ movers and shakers (CEO & top leaders) from 200+ MNCs, GLCs, SMEs & Ministries & Govt agencies 6

8 Projecting 2020 GNI Contribution Step 1: Starting list of sectors Sectors GNI per capita USD (2008 prices) Oil & gas and petroleum products 1,421 Financial services (incl Islamic) Electrical and electronics Palm oil and related products Wholesale and retail Tourism Automotive and assembly Education Forestry and related products Rubber and plastic products Telecommunications Metal products & heavy equipment Business services (incl IT & BPO) Construction Food processing Transport and storage Utilities Health services and products 1 Livestock and fisheries Real estate Rice paddy and food crops Others Step 2: X = Malaysia growth potential CAGR 2 (Percent, ) 3.8% 6.3% 3.7% 6.0% 2.8% 8.0% 2.0% 6.4% 3.4% 3.2% 5.7% 2.9% 9.5% 3.4% 4.5% 3.5% 2.2% 8.0% 3.1% 8.3% 3.2% 5.0% Projected 2020 GNI contribution 3 GNI per capita USD (2020 prices) ,034 1,099 1,527 1,435 2,

9 12 National Key Economic Areas (NKEA) identified Oil, Gas and Energy Healthcare Electrical & Electronics Education Communications Content & Infrastructure Tourism Greater Kuala Lumpur Financial Services Business Services Agriculture Wholesale & Retail Palm Oil & Rubber 8

Key social sectors and economic drivers were identified under Malaysia s National Transformation Programme Government Transformation Programme (GTP) Economic

Fighting corruption Assuring quality education OGE Palm Oil and Rubber Financial Services Tourism Competition Standards and Liberalisation Public Finance

rising cost of living Business Services Healthcare Electronics & Electrical Communications Content & Infrastructure Wholesale & Retail Agriculture Education

10 Key social sectors and economic drivers were identified under Malaysia s National Transformation Programme Government Transformation Programme (GTP) Economic Transformation Programme (ETP) 7 National Key Results Areas (NKRAs) 12 National Key Economic Areas (NKEAs) 6 Strategic Reform Initiatives (SRIs) Reducing crime Fighting corruption Assuring quality education OGE Palm Oil and Rubber Financial Services Tourism Competition Standards and Liberalisation Public Finance Reform Public Service Delivery Raising living standards of low-income households Improving urban public transport Improving rural development Addressing the rising cost of living Business Services Healthcare Electronics & Electrical Communications Content & Infrastructure Wholesale & Retail Agriculture Education Greater Kuala Lumpur/ Klang Valley Narrowing Disparities Reducing Government s Role In Business Human Capital Development Target by 2020 : USD444 bil 92% Private 8% Public 9

Step-2 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we

detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1

Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and

11 Step-2 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1 STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and tracking Multi stakeholder environment to identify prioritised initiatives and establish detailed implementation plans

workspace with a full time team working in iterative manner towards

ü ü ü ü ü Solve complex problems/issues Develop a programme to deliver big

12 What is a Lab? What is a lab? An intense problem-solving environment within a dedicated physical workspace with a full time team working in iterative manner towards delivering Big Fast Results When do we use lab? ü ü ü ü ü Solve complex problems/issues Develop a programme to deliver big fast results Secure alignment within organisation Obtain firm mandate from senior leadership, backed by masses Break silo à Intensify cross-functional interaction

facilitation and problem solving skills Dedicated working space and tools (database, templates, etc.

13 What you will see and experience in a lab? Physical (What you see) Radical way of working (What you experience) Best possible key stakeholders and decision-makers with excellent facilitation and problem solving skills Dedicated working space and tools (database, templates, etc.) Full-time and time boxed (typically 6 weeks) Daily log books and war room Intense open debates and handson-deck approach Breakdown of silos and bureaucracy Syndication and experimentation (pushing the boundaries) Radical, practical and innovative solution to achieve BIG FAST RESULTS 12

14 The lab is a busy environment, many parallel discussions going on Source: PEMANDU Associates Lab Archieve

plans Strategic intent Strategic plan Masterplans Strategy

15 There is a difference between a Plan Programme Traditionally most Government will come up with plans (and more plans) 1,000-feet plans Strategic intent Strategic plan Masterplans Strategy document 3-feet plans Projects Action items Timeline Project owner Targets

Step-3 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in

16 Step-3 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1 STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and tracking Open Days GTP Labs: 8,500 people ETP Labs: 13,000 people SRI Labs: 5,000 people Subsidy Labs: 2,500 people

STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS

17 Step-4 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1 STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and tracking Roadmap shared with the People Summary: GTP: 37 pages ETP 55 pages Detailed: GTP: 261 pages ETP: 601 pages 6 minute video

Step-5 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in

18 Step-5 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1 STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and tracking Monitoring of KPIs Prime Minister/ Minister Review Weekly KPI Monitoring Annual Ministry Review / Cabinet Away Day

Step-6 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in

19 Step-6 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1 STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and tracking Implementation and Problem Solving Monthly Steering Committee Meeting Problem solving, on the ground implementation Putrajaya Inquisition This is where delivery takes place

20 Under the PM s Department, PEMANDU facilitates the delivery Before After Prime Minister PEMANDU CEO reports to PM Prime Minister Problem-Solving Meeting (Putrajaya Inquisition) Level 1: Leadership, governance and prioritisation Cabinet Meeting Ministers Ministers Ministers VS PEMANDU monitors and upskill DMO PEMANDU DMO sends updates on lab implementation *MKRA Level 2: Performance management and problem-solving Lead Ministries Lead Ministries Ministries PEMANDU runs labs Delivery labs MDU MDU DMO Lead Lead Lead Ministries Ministries Ministers Ministers Ministers DMO reports to PS / Minister Level 3: Implementation and delivery NKEA/NKRA Steering Committee *Ministerial Key Results Area Role of Performance Management and Delivery Unit (PEMANDU): monitors and evaluates the implementation process by working closely with the DMO and EPP/project owners build institutional capacity and skills to carry out the work better. to leave the system once respective govt institutions have become competent sustainable approach.

As we approach 2020, PEMANDU must begin to hand over full ownership to the civil service to ensure sustainability Since 2009, PEMANDU has catalysed the design and implementation of Transformation in

21 As we approach 2020, PEMANDU must begin to hand over full ownership to the civil service to ensure sustainability Since 2009, PEMANDU has catalysed the design and implementation of Transformation in Government Across Government, Ministries and Agencies have successfully implemented Transformation initiatives across 7 NKRAs and 12 NKEAs Today, after more than 7 years of NTP implementation, the Transition to Full Ownership of NTP by the Civil Service must begin 20

Step-7 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in

22 Step-7 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1 STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and tracking External validation on results achieved

Step-8 3 OPEN DAYS Share lab output with people and seek their feedback 8

validation on results achieved 2 LABS Establish in detail what needs to be

DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION

for monitoring and tracking The Annual Report provides progress updates of

23 Step-8 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1 STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and tracking The Annual Report provides progress updates of projects and KPIs under GTP and ETP Tell the People what we have/have not delivered

24 The Big Fast Results (BFR) Methodology 3 OPEN DAYS Share lab output with people and seek their feedback 8 ANNUAL REPORTS what we have delivered 7 Int l Panel & Audit External validation on results achieved 2 LABS Establish in detail what needs to be done 4 ROADMAP what we are going to do STEPS OF TRANSFORMATION 1 STRATEGIC DIRECTION To ascertain the strategic direction required 6 IMPLEMENTA- TION Problem-solving on the ground implementation 5 KPI TARGETS Setting KPIs for monitoring and tracking Planning / Thinking (10%) Set National Priorities Ensure budget allocation Translate 30,000 ft strategies into 3 ft implementation programmes Secure ownership of Ministries, Agencies and stakeholders Obtain buy-in from the Public Implementation / Doing (90%) Monitoring & Tracking Recursive Problem Solving Assessment and Validation Reporting and communicating

25 3 Secrets of Transformation Pursue the game of the impossible Anchor on true north Develop 3ft Programme and exercise DMS implementation 24

26 #1: Pursue the Game of the Impossible Stand-based future managing the present from the future Set Olympic targets - very few precedence, difficult to justify Conquer the fear of failure Create a game so large, it will consume you 25

27 It is important to set Olympic targets Announce to the world that you will beat Usain Bolt! 26

#2: Anchor on True North Anchoring on the True North and on the right Key Performance Indicators To achieve true north, sharp focus and ruthless prioritisation of limited resources on what really

28 #2: Anchor on True North Anchoring on the True North and on the right Key Performance Indicators To achieve true north, sharp focus and ruthless prioritisation of limited resources on what really matters In a corporate world, decompose the corporate P&L into the lowest segmented level e.g. product P&L, customer P&L, route P&L Identify profitability levers to turn around each of these segmented P&L NUMBERS DO NOT LIE 27

29 The Minister has publicly committed to step down if he fails to meet his KPI for Sabah Note: System Average Interruption Duration Index (SAIDI) is a reliability indicator by electric power utilities or simplistically - average outage duration for each customer served 28

To achieve this KPI, the ministry TRANSFORMED immediately and as a result, Sabah achieved SAIDI of 687 minutes in Dec 2010, surpassing the target set of 700

30 To achieve this KPI, the ministry TRANSFORMED immediately and as a result, Sabah achieved SAIDI of 687 minutes in Dec 2010, surpassing the target set of 700 minutes 3,996 4,030 SAIDI in Sabah ( ) 2,867 1,987 1,867-76% SAIDI: Average outage duration for each customer served 29

31 #3: Develop 3ft Programme and exercise DMS implementation Must have detailed implementation Programme i.e. who does what, when, how, and resources involved A plan without a budget is a draft and wishful thinking Do it relentlessly, Monitor it constantly, Solve problems recursively DMS: Do it relentlessly, Monitor it constantly, Solve problems recursively 30

32 Internationally Accredited Institutions and Awarding Bodies have endorsed the National Transformation Programme (NTP) Case Studies Key Awards Economic Transformation: All About Focus, Competitiveness, and Execution Published: Nov 2012 Authors: Prof Diego Comin & Ku Kok Peng Not available for distribution or download Tying Performance Management To Service Delivery: Public Sector Reform In Malaysia, Published: July 2011 Author: Deepa Iyer Mapping A Transformation Journey: Malaysia s Strategy Development Published: Aug 2014 Author: Elena Lesley The Bloomberg Markets 50 Most Influential list Dato Sri Idris Jala, Minister and CEO of PEMANDU, has been listed among the most influential policy makers. He shares this spot alongside amongst others George Osborne, Chancellor of the Exchequer; Janet Yellen, Chair, U.S. Federal Reserve and Jason Furman Chairman, White House Council of Economic Advisers Doing, Learning, Being: Some Lessons Learned from Malaysia s National Transformation Program Published: January 2015 Author: Charles Sabel, Luke Jordan Driving performance from the center: Malaysia s experience with PEMANDU Published: April 2017, premiered at WB-IMF Spring Meetings Author: World Bank Group Knowledge and Research Centre Bloomberg Philanthropies and Nesta Highlights 20 Leading Government Innovation Teams around the Globe PEMANDU recognised as one of the 20 leading government innovation teams. Press Release Date: 30 th June

33 BFR Methodology has then being applied to prioritise, identify, implement and monitor key initiatives and projects in various governments ILLUSTRATIVE 2 LABS Establish in detail what needs to be done 1 Strategic Direction 2 Labs 3 Open Days 3 OPEN DAYS Share lab output with people and seek their feedback 1 STRATEGIC DIRECTION To ascertain the strategic direction required 4 ROADMAP what we are going to do 4 Roadmap 5 KPI Targets 8 ANNUAL REPORTS what we have delivered STEPS OF TRANSFORMATION 5 KPI TARGETS Setting KPIs for monitoring and tracking 6 Implementation 7 Int l Panel & Audit 8 Annual Reports 7 Int l Panel & Audit External validation on results achieved 6 IMPLEMENTA- TION Problem-solving on the ground implementation

34 And other governments have been keen to adopt Malaysia s model of transformation Russia Oman Nepal Barbados Ethiopia India Tanzania Botswana South Africa MALAYSIA 33

Examples of how the PEMANDU s BFR lab methodology has been applied internationally Tanzania, 2013 2017 South Africa 2014 India, Andhra Pradesh, 2016 Sultanate of Oman, 2016 Labs for 6

(BRN) programme in Tanzania, facilitated by PEMANDU in 2013 In 2014, 2 nd and 3 rd wave of Labs included Improving the Business Environment and the Healthcare sector In 2015, 4 th wave

and Gas Exploration, Aquaculture and Marine Governance 2 nd wave of Labs covered the Healthcare sector India, Maharashtra, 2014 Labs on the Water sector to create a draught-free state

Involved 77 participants representing over 60 organisations 32 initiatives identified 7-man team deployed Labs for 2 areas covering Education and Retail Education lab focused on

focused on growing the retail sector to generate increased investments, jobs and income levels 8 initiatives identified 3 economic sectors and 2 enablers were identified to pilot

35 Examples of how the PEMANDU s BFR lab methodology has been applied internationally Tanzania, South Africa 2014 India, Andhra Pradesh, 2016 Sultanate of Oman, 2016 Labs for 6 focus areas for the programme were conducted: Energy, Agriculture, Transport, Water, Resource Mobilisation and Education Launch of the Big Results Now! (BRN) programme in Tanzania, facilitated by PEMANDU in 2013 In 2014, 2 nd and 3 rd wave of Labs included Improving the Business Environment and the Healthcare sector In 2015, 4 th wave of Labs covered Community Safety (Tanzania police force) 24-man team deployed for BRN implementation Labs for 4 growth areas covering Marine Transport and Manufacturing, Offshore Oil and Gas Exploration, Aquaculture and Marine Governance 2 nd wave of Labs covered the Healthcare sector India, Maharashtra, 2014 Labs on the Water sector to create a draught-free state which would impact 115mil. Involved 77 participants representing over 60 organisations 32 initiatives identified 7-man team deployed Labs for 2 areas covering Education and Retail Education lab focused on improving the Quality of Education across Pre-School, Primary and Secondary levels which will impact the lives of more than 5 million students 18 initiatives identified The Retail Lab focused on growing the retail sector to generate increased investments, jobs and income levels 8 initiatives identified 3 economic sectors and 2 enablers were identified to pilot Tanfeedh labs Priorities in the economic diversification strategy, namely tourism, manufacturing, and logistics, as well as two fundamental cross-cutting areas - finance, and the labour market and employment. 121 initiatives identified Passing of royal decrees: Establishment of an Implementation and Followup Support Unit and will report to the Minister of the Diwan of Royal Court 34

36 And Federation of Russia 35

37 Thank You Level 4 Block A Lot E, Platinum Sentral, Jalan Stesen Sentral, Kuala Lumpur, Malaysia

Operationalizing Transformation to achieve BIG FAST RESULTS

Operationalizing Transformation to achieve BIG FAST RESULTS Most Governments have great strategies and plans but fail to operationalise them into detailed programme for implementation How do we operationalize