6 Secrets of Transformation

What is Transformation?

It becomes a totally different

organisation

It operates its business totally differently

Being“Character”

Doing“Action”

• 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!

You fundamentally change your action and this will result in a change of your organisation’s character

The Transformation Formula

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”

Ideas Results

“Actions” bring about

changes in “Character”

Actions Actions Actions

Changes in the “Character” of the

organisation

5

The 6 Secrets of Transformation

The Game of

Impossible

▪ Olympic targets

▪ Conquer the fear of failure

KPI

Anchorage▪ Anchor on Key Performance Indices

Discipline of

Action

▪ Plan and track results (daily, weekly, monthly)

▪ Reward and celebrate success

Situational

Leadership▪ Directive in the beginning of the journey

▪ Empower in the later part

Winning

Coalitions▪ Collaborate with key partners and stakeholders

Divine

Interventions▪ A lot of things are outside of our control (>60%)

Game of

the Impossible

Why Impossible Target?

• No transformation is required if the targets are

low / highly achievable

• If targets are “impossible”, you have to think

outside the box, and do fundamentally

different things in order to achieve it

• Therefore, by definition, real transformation

comes with the Game of the Impossible

Steps to make the “impossible”

happen

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

1

2

3

4

7

Rakyat are

supportive of GTP

GTP Open Day Feedback -

What do the rakyat think about GTP?

They are happy

with the initiatives

under the NKRAs

84%Agreed

75%Agreed

But can we deliver

big results fast ?31%Agreed

Note: Does not include responses with no answers .* Across different NKRAs

And are confident

we will deliver

71%Agreed

1

2

3

4

8,500attended

(KL, KK, Kuching)

When Game of the Impossible

was first applied to GTP (2009),

everyone thought it was impossible…

Game of The Impossible:

Real examples in GTP

CRIME

• Reduction of street crime by 35%

• Reduction of index crime by 15%

1 2

3 4

LOW INCOME HOUSEHOLDS

• 99.75% achievement in reducing 44,463 hardcore poor

• 4,000 women entrepreneurs trained

URBAN PUBLIC TRANSPORT

• 2.43 million passenger increase in LRT

• 192% improvement in BET ridership

RURAL BASIC INFRASTRUCTURE

• 775km of rural roads completed (103%)• 27,209 household connected with

electricity (107%)• 16,926 new houses built (102%)

5EDUCATION

• 9,814 schools have been ranked• 1,486 pre-school classes have started 55,056 additional children have benefitted

6CORRUPTION

• 831 people arrested for corruption• 294 corruption offenders listed on the

website• 3,787 Government contracts published

Crime rose for 3 years prior to GTPCrime

Types of crime

Violent

crimes

Property

theft

2008

211,645

2007

209,582

2006

196,780

20091

209,825

▪ Robberies without firearms

▪ Gang robberies without firearms

▪ Robberies with firearms

▪ Gang robberies with firearms

▪ Assault

▪ Rape

▪ Murder

▪ Theft

▪ Snatch theft

▪ Motorcycle theft

▪ Car theft

▪ Van/lorry/heavy machinery theft

▪ Break-in (night)

▪ Break-in (day)

Hotspot-based deployment

Pre-NKRA

• 1 Contingent, 5

Districts

• 22 Balai’s (Stations)

• 501 Sectors

• 2,892 police officers

deployed for street

patrolling

• 1 Contingent, 5

Districts

• 22 Balai’s (Stations)

• 11 hotspots, eg

Pudu, Bukit Bintang

• 2,892 police officers

deployed to patrol at

hotspots

NKRA Approach

The Kuala Lumpur Story ILLUSTRATIVE

5.8 police officers

assigned to patrol Bukit

Bintang every day

263 police officers

assigned to patrol Bukit

Bintang every day

Crime

13

Large-scale mobilisation

in three 3 waves

From Non hotspot

to Hotspots

From Back-Office

to Front-line

From the Jungle

to the City

14,222 7,402 8,140

▪ 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 back-

office 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)

+ + = 29,764

Crime

496CCTVs

installed at

12 PBTS

753Balai Police

Ranked & awarded

358,811Rakan Cop Members

(public)

were activated

4,979*RELA & JPAM

members were

deployed to the hotspots

Other initiatives in 2010

*4,979 =

3,663 RELA + 1,316 JPAM

Crime

15% drop in

Index Crime

Jan-Dec

2009

Jan-Dec

2010

209,825

177,520

-15%

-32,305

Jan-Dec

2009

Jan-Dec

2010

38,037

24,837

- 35%

-13,193

35% drop in

Street Crime

Crime

(Results : January – December 2010)

Anchoring

on KPIs

ETP: Anchoring on GNI per capita

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

1

2

3

NUMBERS DO NOT LIE

188

523

USD billions

Nominal GNI

Incremental GNI impact of

~USD 250 billion by 2020

112

2020 GNI

Target

Entry Point

Projects

(EPPs)

Growth in

other

sectors

138

2009 GNI Business

Opportunities

(BOs)

11 Sector NKEAs

1 2

86

3

2020 GNI

per capita:

USD 15,000

CAGR

~6%

The Tourism example

Tourism

• Which project has the largest potential GNI contribution?

• Which project can generate the fastest and the largest tourist receipts?

• Which project can generate large number of job opportunities?

• Which project has the largest spin-off effects to the local economy?

Discipline

of Action

Discipline of Action

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 WORK BUT EXCITING!

1

2

3

4

Examples of Discipline of Action:

Lab Action Plans

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?

Actual

example

taken from

Crime Lab

xxx

Discipline of action requires constant

monitoring: e.g. via Blackberry

Weekly reports

Examples:

• Project progress updates

• NKEA highlights, lowlights and head-ups

• NKEA reports

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PEMANDU + Ministry + Civil Servants work together…

Leverage + Discipline of Action

Ministerial

Meetings1

•NKRA front-line•~500,000 at federal

and state level•(1.2 million civil

servants)

•Ministry •DMO +

Ministerial• teams

•PEMANDU

•DPM /• Cabinet

Delivery Task Force

(DTF)

Meetings3

Problem Solving

Meetings (PSM)2

Dis

cip

line

of A

ctio

n M

ee

tin

gs

Monthly

(6-8 hrs /

month)

Weekly

(6-7 hrs / week)

Weekly

ETP Governance Structure is key

ETP Forum

Economic Council

NKEA

Steering

Committee

EPP / BO

owners

Semi-Annual

Weekly

Monthly

Year-round

PM Engagement with EPP Owners

/ Private Sector Owners on overall

update

Weekly monitoring & NKEA update

with dedicated sessions to problem

solve major issues

Problem Solving sessions at the

NKEA level led by Lead

Minister(s). Investment Committee

headed by MITI; MIDA will also be

involved.

Implementation of the EPPs / BO

Secretariat

Respective

Ministries / EPP

owners

Lead

Ministries

Investment

Committee

Monthly

Situational

Leadership

Change leadership style based on team development

Dissatisfaction

STAGE 2 STAGE 3 STAGE 4

Resolution ProductionOrientation

STAGE 1

Productivity (Competence)

Morale (Commitment)

Directive Style Empowering Style

Situational Leadership

Winning

Coalition

Winning Coalition

No man is an island

GLC – Conflicting shareholders’ requirement i.e. government versus investors; business versus politics

Investor Relations

Staff Engagement

Collaboration with competitors

IT’S ALL ABOUT MANAGING POLARITIES

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2

3

4

Stakeholders that we need to engage &

syndicate

Lab Core Members

PM , Cabinet,

Ministries

State

Governments

NGOs /

Special

Interest

Groups

Associations

/ Chambers

of Commerce

Public

1,000-person workshop selected 12 NKEAs

1,000+ movers and shakers (CEO & top leaders) from

200+ MNCs, GLCs, SMEs & Ministries & Govt agencies

500+ member lab from 210 companies, 13 NGOs & 32 government agencies produced ETP roadmap

> 13,000 people attended Open Days

Divine

Intervention

Divine Intervention:

Two Experiential Human Paradigms

Human beings have

limited control / influence

over what happens

Life is a continuous

reduction of options time

40%controllable

60%uncontrollable

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2

How do you get

divine intervention?

(1) On values and actions

• Be a good human being (a pre-requisite

to be a leader)

• Litmus test is a clear conscience

• Conviction is grounded within one’s

conscience

• J. Galtung : Theory of social cosmology

I firmly believe that any man’s finest hour – his greatest fulfillment to all he holds dear - is that moment when he has worked his heart out in a good cause and lies exhausted on the field of battle – victorious.

- Vince Lombardi

1

(1) On Ethics

• Operate in the “white” (not “grey” and

“black”)

• Step into the “grey” but step back into

the “white” (never stay in the grey too

long)

• If you stay in the “grey”, your

conscience is modified to see “grey” /

“black” as acceptable

The quality of an individual is reflected in the standards they set for themselves.

- Ray Kroc

2

white

grey

black

How do you get

divine intervention?

(1) On Self - Renewal

• Good people must learn to live with

solitude (loneliness)

• Solitude : to be alone in deep reflections

for self-renewal

• Be grateful (don’t take things for granted)

• The “Theory of Enough” in the Empty

Raincoat (Charles Handy)

Keep your face to the sunshine and you cannot see the shadows.

- Helen Keller

3

How do you get

divine intervention?