CONTOH

By Dato Sri Idris Jala

CEO of PEMANDU /

Minister in Prime Minister’s Department

3rd November 2010

KLIF Innovation Forum 2010

Keynote Address

1

Innovation has 4 elements1. Must have customer

/ people needs

2. Must have

commercial

value

3. Must be done

by people in

the workplace

4. Leads to invention,

novel applications

and/or new ways of

working

2

Innovation and

customer needs

1. Target customer segment – real or

perceived

2. Unique customer value proposition (CVP)

3. Trade offs

4. Reasons to believe CVP

5. Price

1

3

Innovation must have

commercial value

1.Must be translated into commercial

value (i.e customers are prepared to

pay for the CVP)

2.Pricing depends on the novelty and

uniqueness of the innovation

3.Intellectual property rights are used

to retain value for the organization.

2

4

Innovation must

involve people in the

workplace

• Universities, research institutes, labs,

incubators

• Private organizations

• NGOs

• Communities

• Examples – Apple, Samsung, Toyota,

Google continue to innovate

3

5

The outcomes of

innovation is in 3 forms….

1. Inventions (eg: airplanes – Wright brothers, Telephone –

Alexander Graham Bell)

2. Applications based on previous inventions (either new or

improvements, eg: turbprop aircraft, jets, mobile phone, Ipod,

Ipads, etc)

3. Novel ways of working (eg: focused activities, labs, Open days,

aligned and leveraged management techniques, virtual office,

new marketing and sales techniques, new policies, improved

processes, etc)

Most modern day innovations are a combination of (2) and (3)

4

6

The Cantas story….4

Increase average productivity of

harvesters

Reduce dependence on foreign

labor in Malaysia

To reduce production cost so that

it can be affordable to the small

holders

Economic Transformation Programme

NKEA : Oil Palm

7

Transformation involves

innovation on novel

ways of working

(i.e doing things).... the 3rd outcome of innovation

8

Generally, there are two

school of thoughts on

transformation…

Being(“Character”)

Doing(“Action”)

Being(“Character”)

Doing(“Action”)

1 2

Yin

Yang

Yin

Yang

9

2 school of thoughts…

Yin-Yang approach

1. Strategic Intent – Run an

innovation programme and people

will innovate to achieve the big

results fast

2. Design an innovation programme

3. Set up an institute of innovation

4. Conduct innovation courses /

seminar / conferences and put all

employees through a 10 year

Innovation Programme

Very little / no innovation with

longer time to achieve results

Yang-Yin approach

1. Strategic Intent – change the way you

do things in order to deliver Big

Results Fast

2. Innovative ways of prioritization / focus (KRAs)

3. Innovative ways of problem-solving (lab)

4. Innovative ways of instituting discipline (PSM, DTF)

5. Innovative ways of delivering results (KPI, performance assessment / ranking)

Big Results Fast

10

For innovation to happen,

we must begin with “Action”

Being(“Character”)

Doing(“Action”)

1

11

What does it mean by

“Action” ?

• Innovative ways of prioritization / focus (KRAs)

• Innovative ways of problem-solving (eg: lab)

• Innovative ways of instituting discipline (PSM, DTF)

• Innovative ways of delivering results (KPI, performance assessment / ranking)

12

Innovative ways of prioritization & focus

1. Determine clear outcome, example:

• P&L improvement (say 20% increase) ?

• Crime reduction (20% reduction) ?

• Per capita income increment of 100% ?

• Productivity improvement (by 40%) ?

2. Identify Key Results Areas (KRAs) which directly impact #1

above, if not they are NOT priorities (i.e stop doing)

3. Focus resources (people, money, material, time / commitment)

on the KRA. Example : NKRAs (GTP) / NKEAs (ETP)

13

Lab to accelerate delivery / outputs - FAST

Lab Approach

• Manhours : 10 hours x 6 weeks x 5 days = 300 hours

Steering Committee Meeting

Manhours : 2 hours x 4 times year x 3 years = 24 hours

Task Force / Technical Committee Meeting

Manhours : 3 hours x 12 times year x 3 years = 108 hours

3 years

(132 hours)

6 - 8 weeks

(300 hours)

Task Force Approach 1

2

14

GTP & ETP are innovative to achieve Big Result Fast

Implement

Labs

Open Day

1Msia GTP Roadmap

Radical / Innovative

Roadmap / Strategy

Feedback / Syndication

Action Plan

Implement

Conventional

1.5 yrs

1.5 yrs

2 mth

1 mth

15

We must also inject innovative ways of

delivering results..

• Establish olympic targets / KPIs (will cause

staff to unleash talent)

• Publish the KPIs / targets (will cause the

staff to have no choice but to deliver)

• Publish performance ranking (eg: Balai

Polis ranking, school ranking, etc)

• Reward performance (eg: High Performing

Schools (HPS)) and consequence

management for non-performance

16

Innovative ways of problem solving :

Intercity Transport Terminals (ITT)

Puduraya

South

North

East

Coast

South

Current New / Proposed

1,000 buses into Puduraya ~500 buses into Puduraya

40,000 cars into the city

to pick-up the bus

passengers

Puduraya

Gombak

South

North

East

Coast

Bandar

Tasik

Selatan

South

17

Innovation example :

Bus Expressway Transit (BET)

Current route

▪ Over 30 stops

▪ Passing through congested

Federal Highway

KL

Sentral

Sri MudaShah Alam

Federal Highway

Bus Expressway Transit

▪ Limited to 4 stops

▪ Using underutilised KESAS

highway with toll priority

KESAS Highway

Current

BET

~75~75~65

~29~35~33

KESAS

Sri Muda – KL

Sentral

NPE

Subang mewah -

Sentral

Grand Saga

Kota Dsra - SentralPenchala

Sg Long -

Sentral

~ 75

Potential reduction in journey times

mins

~ 29

10yrs

Stalemate

10 days

Solved in

18

Innovative ways of instituting “Discipline of

Action” & “Leverage”

Discipline of Action + Leverage

• To design monitoring mechanism /

framework to ensure things get

done.

• To set up frequent meetings to

ensure progress and address

problems

• Maximizing existing

resources (people,

materials, etc) to

deliver the results

19

Example of innovation in institutionalizing

“Discipline of Action”

PSM Meetings1

•NKRA front-line•~500,000 at federal

and state level•(1.2 million civil

servants)

•Ministry •DMO +

Ministerial• teams

•PEMANDU

•PM /• Cabinet

DTF Meetings3

Ministerial

Operational

Meetings2

20

The outcome of GTP….

innovating to get

Big Result Fast

16%

drop in

Index

Crime

Jan-Sep

2009

Jan-Sep

2010

157,537

132,355

-16.0%

-25,182

38%

drop in

Street

Crime

Jan-Sep

2009

Jan-Sep

2010

29,596

18,299

-38.1%

-11,297

2.4 million

increase in

LRT ridership

54,569 children

are benefiting from

1,358 pre school

classes

9,816 schools

(primary & secondary)

have been

ranked

49% reduction of

hardcore poor

Jan 2010 Sept 2010

44,463

22,559

3716government

contracts

have been

published on line

myprocurement.treasury.gov.my

648people were

arrested

for corruption

208 corruption

offenders

published

in MACC

website

www.sprm.gov.my

Corruption Index

(Malaysia)

4.55.2

3.6

4.54.4

6.3

4.6 4.6

TI IMD PERC WEF

Corruption Perception Index / Scores from 4 Surveys

2009 2010

TI = Transparency International

IMD = IMD World Competitiveness Index

PERC = Political & Economic Risk Consultancy

WEF = World Economic Forum

Recap of four elements of

innovation1. Must have customer

/ people needs

2. Must have

commercial

value

3. Must be done

by people in

the workplace

4. Leads to invention, novel

applications and/or new

ways of working

32

Thank You

33

Most transformation programmes / lab will fail if you do not

apply the “6 Principles of Transformation”

33

The Game of

Impossible

Anchoring on

KRA

Discipline

of Action

Situational

Leadership

Winning

Coalitions

Divine

Interventions

1

2

3

4

5

6

•Olympic targets

•Conquer the fear of failure

•Anchor all activities to the key result areas (KRAs)

•Plan and track results (daily, monthly, quarterly)

•Reward and celebrate success

•Directive in the beginning of the journey

•Empower in the later part

•Collaborate with key partners and stakeholders

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