6 Secrets of Transformation

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
“Action”

It operates its It becomes a

business totally totally different
differently organisation

Being
“Character”
The Transformation Formula

You fundamentally change your action and this will result

in a change of your organisation’s character

Doing Being
Drives
(Action) (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”
“Actions” bring about
changes in “Character”

Actions Actions Actions

Ideas Results

Changes in the “Character” of the

organisation
The 6 Secrets of Transformation
The Game of ▪ Olympic targets
Impossible ▪ Conquer the fear of failure

KPI
Anchorage
▪ Anchor on Key Performance Indices

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

Action ▪ Reward and celebrate success

Situational ▪ Directive in the beginning of the journey

Leadership ▪ 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%)
5
 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

1 from the future”

2 Set “Olympic” targets (very few precedence,

difficult to justify)

3 Conquer the fear of failure – conversations!

4 Create a game so large it will consume you

When Game of the Impossible
was first applied to GTP (2009),
GTP Open Day
everyone Feedback
thought -
it was impossible…
What do the rakyat think about GTP?

1 Rakyat are 84%

supportive of GTP Agreed

2 They are happy

75%
8,500 with the initiatives
under the NKRAs Agreed
attended
(KL, KK, Kuching)
3 And are confident 71%
we will deliver Agreed

4 But can we deliver 31%

big results fast ? Agreed

7
Note: Does not include responses with no answers .* Across different NKRAs
 Game of The Impossible:
Real examples in GTP

1 CRIME
2 LOW INCOME HOUSEHOLDS

• 99.75% achievement in reducing

• Reduction of street crime
by 35% 44,463 hardcore poor
• Reduction of index crime
• 4,000 women entrepreneurs trained
by 15%

URBAN PUBLIC TRANSPORT RURAL BASIC INFRASTRUCTURE

3 • 2.43 million passenger increase in
4 • 775km of rural roads completed (103%)
• 27,209 household connected with
LRT
• 192% improvement in BET ridership electricity (107%)
• 16,926 new houses built (102%)

EDUCATION CORRUPTION
5 • 9,814 schools have been ranked
6 • 831 people arrested for corruption
• 1,486 pre-school classes have started • 294 corruption offenders listed on the
 55,056 additional children have website
benefitted • 3,787 Government contracts published
 Crime
Crime rose for 3 years prior to GTP

Types of crime
209,582 211,645 209,825
196,780 ▪ Theft
▪ Snatch theft
▪ Motorcycle theft
▪ Car theft
▪ Van/lorry/heavy machinery theft
Property ▪ Break-in (night)
theft ▪ Break-in (day)

▪ Robberies without firearms

▪ Gang robberies without firearms
▪ Robberies with firearms
▪ Gang robberies with firearms
Violent
▪ Assault
crimes ▪ Rape
▪ Murder
2006 2007 2008 20091
 Crime
Hotspot-based deployment
The Kuala Lumpur Story ILLUSTRATIVE

Pre-NKRA NKRA Approach

• 1 Contingent, 5 • 1 Contingent, 5
Districts Districts
• 22 Balai’s (Stations) • 22 Balai’s (Stations)
• 501 Sectors • 11 hotspots, eg
Pudu, Bukit Bintang
• 2,892 police officers
deployed for street • 2,892 police officers
patrolling deployed to patrol at
hotspots

5.8 police officers 263 police officers

assigned to patrol Bukit assigned to patrol Bukit
Bintang every day Bintang every day
 Large-scale mobilisation Crime

in three 3 waves

14,222
+ 7,402
+ 8,140
= 29,764

From the Jungle

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

13
 Crime
Other initiatives in 2010

496 CCTVs
4,979*
RELA & JPAM
*4,979 =
3,663 RELA + 1,316 JPAM

installed at members were

12 PBTS deployed to the hotspots

753
Balai Police
358,811
Rakan Cop Members
Ranked & awarded (public)
were activated
 Crime

-32,305

-15% -13,193
209,825
177,520 38,037 - 35%
24,837

Jan-Dec Jan-Dec Jan-Dec Jan-Dec

2009 2010 2009 2010

15% drop in 35% drop in

Index Crime Street Crime

(Results : January – December 2010)

Anchoring
on KPIs
 ETP: Anchoring on GNI per capita

 Decompose the recommendations / projects into

1 contribution to GNI per capita

 Make each lab member accountable to the justify

2 the contribution to GNI per capita

 The whole lab members should and challenge the

3 proposals by the private companies or
recommendations

NUMBERS DO NOT LIE

 Incremental GNI impact of
~USD 250 billion by 2020
2020 GNI
Nominal GNI
per capita:
USD billions USD 15,000

CAGR 523
~6%
86

112

138
188

2009 GNI 1 Entry Point 2 Business 3 Growth in 2020 GNI

Projects Opportunities other Target
(EPPs) (BOs) sectors

11 Sector NKEAs
 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

1
2 Breakdown action plans into detailed activities

3 Plan and track results (alongside action plan)

4 Roll your sleeves and get into the details

THIS IS REALLY HARD WORK BUT EXCITING!

 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

Examples:
• Project progress updates
• NKEA highlights, lowlights and head-ups
• NKEA reports
 PEMANDU + Ministry + Civil Servants work together…
Leverage + Discipline of Action
Ministerial Weekly
Discipline of Action Meetings

1
Meetings
Weekly
Problem Solving (6-7 hrs / week)
2
Meetings (PSM) •NKRA front-line
•~500,000 at federal
and state level
Delivery Task Force •(1.2 million civil
servants)
3 (DTF)
Meetings •Ministry
•DMO +
Ministerial
• teams

•PEMANDU

•DPM /
• Cabinet
Monthly
(6-8 hrs /
month)
ETP Governance Structure
is key
PM Engagement with EPP Owners
Secretariat
ETP Forum / Private Sector Owners on overall
update

Semi-Annual

Weekly monitoring & NKEA update

with dedicated sessions to problem
Economic Council solve major issues

Weekly

NKEA Problem Solving sessions at the

Investment
Monthly
Steering NKEA level led by Lead
Committee Minister(s). Investment Committee Lead
Committee
headed by MITI; MIDA will also be Ministries
Monthly
involved.

EPP / BO Year-round
Implementation of the EPPs / BO Respective
owners Ministries / EPP
owners
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

Winning
Coalition
 Winning Coalition

No man is an island

GLC – Conflicting shareholders’ requirement i.e.

1 government versus investors; business versus politics

2 Investor Relations

Staff Engagement
3
4 Collaboration with competitors

IT’S ALL ABOUT MANAGING POLARITIES

Stakeholders that we need to engage &
syndicate

PM , Cabinet,
Ministries

Associations State
/ Chambers Governments
of Commerce Lab Core
Members

NGOs /
Special
Public Interest
Groups
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

1 Human beings have

limited control / influence
over what happens 40% 60%
controllable uncontrollable

2
Life is a continuous
reduction of options time
 How do you get
divine intervention?
(1)
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
 How do you get
divine intervention?
(1)
2 On Ethics

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

• Step into the “grey” but step back into

the “white” (never stay in the grey too grey
long)

• If you stay in the “grey”, your

conscience is modified to see “grey” / black
“black” as acceptable

The quality of an individual is reflected in

the standards they set for themselves.
- Ray Kroc
 How do you get
divine intervention?
(1)
3 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