6 Secrets of

Transformational Leadership

YB Senator Dato Sri Idris Jala Minister in the Prime Ministers Department, CEO of Performance Management and Delivery Unit (PEMANDU), Malaysia

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!

Doing
It operates its business totally differently Action

Being
Character

It becomes a totally different organisation

The Transformation Formula

Fundamental change of your action, will result in change of your organisations character Doing (Action)
drives

Being (Character)

Turnaround programme is an excellent way to change the doing side of the equation Transformational Leadership develops via the following formula:

Acting your way into a new way of being

Malaysias Transformation Has Begun

1 Malaysia (People First, Performance Now) Government Transformation Programme Economic Transformation Programme

Vision 2020

Political Transformation

National Transformation Policy

10th & 11th Malaysia Plan

GTP Delivered 121% Of Its Target

NKRA Overall Performance 2010
NKPIs Urban Public Transport Crime Rural Basic Infrastructure Education Low Income Household Corruption 2010 Actual 1 International Panel Review Committee
Sir Michael Barber
Partner, McKinsey UK; ex-Head of Prime Ministers Delivery Unit (PMDU) of Tony Blair Administration

107% 168% 91% 156% 79% 121%

2

Ravi Balakrishnan
IMF Resident Representative, Singapore

Michael Hershman
Co-founder of Transparency International; Current CEO of the Fairfax Group

Sergei Dodzin
Senior Economist, Asia & Pacific Department International Monetary Fund

Stephen Sedgwick
Australian Public Service Commissioner

Kwak Seung-Jun
Chairman Presidential Council for Future and Vision

Agreed Upon Procedure (AUP)

Overall Composite Scoring

121%

Transformational Leadership:

Secret #1

Game of the Impossible

Transformational Leaders make the impossible happen

1 2 3 4

Stand-based future managing the present from the future Set Olympic targets (very few precedence, difficult to justify) Conquer the fear of failure conversations! Create a game so large, it will consume you

Everyone thought GTP 2010 targets were impossible

Rakyat are supportive of GTP They are happy with the initiatives under the NKRAs And are confident we will deliver But can we deliver big results fast ?

84%
Agreed

8,500
attended (KL, KK, Kuching)

75%
Agreed

71%
Agreed

31%
Agreed

Crime rose for 3 years prior to GTP

196,780

209,582

211,645 209,825

Types of crime Theft Snatch theft Motorcycle theft Car theft Van/lorry/heavy machinery theft Break-in (night) Break-in (day) Robberies without firearms Gang robberies without firearms Robberies with firearms Gang robberies with firearms Assault Rape Murder

Property theft

Violent crimes 2006 2007 2008 20091

Hotspot-based deployment
The Kuala Lumpur Story Pre-NKRA 1 Contingent, 5 Districts 22 Balais (Stations) 501 Sectors 2,892 police officers deployed for street patrolling
ILLUSTRATIVE

NKRA Approach 1 Contingent, 5 Districts 22 Balais (Stations) 11 hotspots, eg Pudu, Bukit Bintang 2,892 police officers deployed to patrol at hotspots

5.8 police officers

assigned to patrol Bukit Bintang every day

263 police officers

assigned to patrol Bukit Bintang every day

Large-scale mobilisation in three 3 waves

14,222

7,402

8,140

29,764

From the Jungle to the City From Back-Office to Front-line From Non hotspot to Hotspots
14,222 officers deployed to 50 crime hotspot area KL: 2,892 Selangor: 5,223 Johor: 3,366 P. Pinang: 2,741 7,402 personnel reassigned from backoffice to front-line 4,013 civil servants transfer to PDRM Balai back-office 8,140 Polis Hutan deployed to fight crime in hotspots on rotation Each rotation with Kuala Lumpur (1,000), Selangor (1,000), Johor (1,000), and Pulau Pinang (1,000)

2010 Full Year Results

(January December 2010)
-32,305 -15% 209,825 177,520 38,037 24,837 - 35% -13,193

Crime

Jan-Dec 2009

Jan-Dec 2010

Jan-Dec 2009

Jan-Dec 2010

15% drop in
Index Crime

35% drop in
Street Crime

Transformational Leadership:

Secret #2

Anchoring on KPIs

ETP: Anchoring on GNI per capita

1 2 3

Decompose the recommendations / projects into contribution to GNI per capita Make each lab member accountable to the justify the contribution to GNI per capita The whole lab members should and challenge the proposals by the private companies or recommendations

NUMBERS DO NOT LIE

Incremental GNI impact of ~USD 250 billion by 2020

Nominal GNI USD billions CAGR ~6% 86 112 138 2020 GNI per capita: USD 15,000 523

188

2009 GNI

1 Entry Point Projects (EPPs)

2 Business Opportunities (BOs) 11 Sector NKEAs

3 Growth in other sectors

2020 GNI Target

Transformational Leadership:

Secret #3

Discipline of Action

Discipline of Action

1 2 3 4

Agree what constitutes success and measure Breakdown action plans into detailed activities Plan and track results, alongside action plan Roll your sleeves and get into the details
THIS IS REALLY HARD BUT EXCITING WORK!

Examples of Discipline of Action: Lab Action Plans

Actual example taken from Crime Lab

Must clearly nail down the action plans in the lab : What activities required? When is the estimated date of completion? Who will do the work? What is the estimated investment / budget required?

Discipline of action requires constant monitoring e.g. via Blackberry

Weekly reports

xxx

Leverage + Discipline of Action

Discipline of Action Meetings

Ministerial Meetings
Weekly (6-7 hrs / week)

Weekly

Problem Solving 2 Meetings (PSM)

Delivery Task Force (DTF) Meetings

NKRA front-line ~500,000 at federal and state level (1.2 million civil servants) Ministry DMO + Ministerial teams

PEMANDU DPM / Cabinet

Monthly (6-8 hrs / month)

ETP Governance Structure to ensure delivery

Secretariat ETP Updates, Annual Report
Monthly, Annual

Economic Council
Weekly

NKEA Steering Committee

Monthly

Investment Monthly Committee

Bi-Monthly

Lead Ministries

EPP / BO owners

Year-round

Respective Ministries / EPP owners

Transformational Leadership:

Secret # 4

Situational Leadership

Situational Leadership
Change leadership style based on team development
Orientation Dissatisfaction Resolution Production

Productivity (Competence)

Morale (Commitment) STAGE 1 STAGE 2 STAGE 3 STAGE 4

Directive Style

Empowering Style

Transformational Leadership:

Secret # 5

Winning Coalition

Winning Coalition
No man is an island

1 2 3 4

GLC Conflicting shareholders requirement i.e. government versus investors; business versus politics Investor Relations Staff Engagement Collaboration with competitors

ITS ALL ABOUT MANAGING POLARITIES

> We conducted town halls, labs, Open Days

Transformational Leadership:

Secret # 6

Divine Intervention

Two Experiential Human Paradigms

Human beings have limited control / influence over what happens

40%
controllable

60%
uncontrollable

Life is a continuous reduction of options

time

How do you obtain divine intervention ?

1 2 3

On values and actions Be a Good Human Being Ethics Operate from the White, not from the Black / Grey Self Renewal Solitude & Reflection (Theory of Enough)

white

grey

black

Recap: The 6 Secrets of Transformational Leadership

The Game of Impossible KPI Anchorage Discipline of Action Situational Leadership Winning Coalitions
30

Divine Interventions

Malaysia in Transition
1 Malaysia (People First, Performance Now) Government Transformation Programme Economic Transformation Programme

Vision 2020

Political Transformation

National Transformation Policy

10th & 11th Malaysia Plan

THANK YOU
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