6 Secrets of

Transformational Leadership

YB Senator Dato’ Sri Idris Jala

Minister in the Prime Minister’s Department,

CEO of Performance Management and Delivery Unit (PEMANDU), Malaysia

What is Transformation?

Doing

• 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 becomes a totally

different

organisation

It operates its business

totally differently

Being“Character”

Doing“Action”

Fundamental change of your action, will result in change of your organisation’s character

The Transformation Formula

Doing

(Action)

drivesBeing

(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”“Acting your way into a new way of being”

Malaysia’s Transformation Has Begun…

1 Malaysia(People First, Performance Now)

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10th & 11th Malaysia Plan

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National

Transformation

Policy

GTP Delivered 121% Of Its Target

NKRA Overall Performance 2010

Urban Public Transport

Crime

NKPIs 2010 Actual

107%

168%

International Panel Review Committee

1

Sir Michael Barber Partner, McKinsey UK; ex-Head of Prime

Minister’s Delivery Unit (PMDU) of Tony Blair Administration

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

Ravi BalakrishnanIMF Resident

Representative, Singapore

Sergei DodzinSenior Economist, Asia & Pacific Department – International Monetary Fund

Rural Basic Infrastructure

Education

Low Income Household

Corruption

91%

156%

79%

121%

Overall Composite Scoring 121%

Stephen SedgwickAustralian Public Service

Commissioner

Kwak Seung-Jun Chairman Presidential Council for Future and Vision

2Agreed Upon Procedure (AUP)

Game of

Transformational Leadership:

Secret #1

Game of

the Impossible

Transformational Leaders make the

“impossible” happen

� Stand-based future – “managing the present from the future”

� Set “Olympic” targets (very few precedence,

11

2� Set “Olympic” targets (very few precedence, difficult to justify)

� Conquer the fear of failure – conversations!

� Create a game so large, it will consume you

22

33

44

Rakyat are supportive of GTP

They are happy

84%Agreed

75%

1

2

8,500

Everyone thought GTP 2010 targets were

impossible…

with the initiatives

under the NKRAs

75%Agreed

But can we deliver big results fast ?

31%Agreed

And are confident we will deliver

71%Agreed

2

3

4

8,500attended

(KL, KK, Kuching)

Crime rose for 3 years prior to GTP

Types of crime211,645209,582196,780

209,825▪ Theft

▪ Snatch theft

▪ Motorcycle theft

▪ Car theft

▪ Van/lorry/heavy machinery theft

▪ Break-in (night)

Violent

crimes

Property

theft

200820072006 20091

� Robberies without firearms

� Gang robberies without firearms

▪ Robberies with firearms

▪ Gang robberies with firearms

▪ Assault

▪ Rape

▪ Murder

▪ Break-in (night)

▪ Break-in (day)

Hotspot-based deployment

Pre-NKRA

• 1 Contingent, 5

Districts

• 22 Balai’s (Stations)

• 501 Sectors

• 1 Contingent, 5

Districts

• 22 Balai’s (Stations)

• 11 hotspots, eg

Pudu, Bukit Bintang

NKRA Approach

The Kuala Lumpur Story ILLUSTRATIVE

• 2,892 police officers

deployed for street

patrolling

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 mobilisationin three 3 waves

From the Jungle

to the City

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

From Non hotspot

to Hotspots

From Back-Office

to Front-line

to the City

▪ 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)

209,825

177,520

-15%

-32,305

38,037

24,837

- 35%

-13,193

CrimeCrime

2010 Full Year Results

(January – December 2010)

15% drop in

Index Crime

Jan-Dec 2009

Jan-Dec 2010

Jan-Dec 2009

Jan-Dec 2010

35% drop in

Street Crime

Anchoring

Transformational Leadership:

Secret #2

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

11

2 the contribution to GNI per capita

� The whole lab members should and challenge the

proposals by the private companies or

recommendations

22

33

NUMBERS DO NOT LIENUMBERS DO NOT LIE

523

USD billions

Nominal GNI

Incremental GNI impact of ~USD 250 billion

by 2020

112

86

2020 GNI

per capita:

USD 15,000

CAGR

~6%

188

112

2020 GNI

Target

Entry Point

Projects

(EPPs)

Growth in

other

sectors

138

2009 GNI Business

Opportunities

(BOs)

11 Sector NKEAs

1 2 3

Discipline

Transformational Leadership:

Secret #3

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

1

2

3 Plan and track results, alongside action plan

Roll your sleeves and get into the details

THIS IS REALLY HARD BUT EXCITING WORK!THIS IS REALLY HARD BUT EXCITING WORK!

3

4

Examples of Discipline of Action:

Lab Action Plans

Actual example

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

Discipline of action requires constant

monitoring e.g. via Blackberry

Weekly reports

xxx

Leverage + Discipline of Action

Ministerial

Meetings1

•NKRA front-line•~500,000 at federal

and state level•(1.2 million civil

Problem Solving

Meetings (PSM)2

Dis

cip

lin

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f A

cti

on

Meeti

ng

s

Weekly

(6-7 hrs / week)

Weekly

•(1.2 million civil servants)

•Ministry •DMO +

Ministerialteams

•PEMANDU

•DPM /• Cabinet

Delivery Task Force

(DTF) Meetings3

Dis

cip

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e o

f A

cti

on

Meeti

ng

s

Monthly

(6-8 hrs /

month)

ETP Governance Structure to ensure delivery

ETP Updates,

Annual Report

Economic Council

Monthly, Annual

Secretariat

Economic Council

NKEA

Steering

Committee

EPP / BO

owners

Weekly

Monthly

Year-round

Respective Ministries /

EPP owners

Lead

Ministries

Investment

Committee

Monthly Bi-Monthly

Situational

Transformational Leadership:

Secret # 4

Situational

Leadership

Change leadership style based on team development

Dissatisfaction Resolution ProductionOrientation

Productivity (Competence)

Situational Leadership

STAGE 2 STAGE 3 STAGE 4STAGE 1

Morale (Commitment)

Directive Style Empowering Style

Winning

Coalition

Transformational Leadership:

Secret # 5

Coalition

Winning Coalition

No man is an island

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

Investor Relations

1

2 Investor Relations

Staff Engagement

Collaboration with competitors

IT’S ALL ABOUT MANAGING POLARITIESIT’S ALL ABOUT MANAGING POLARITIES

2

3

4

> We conducted town halls, labs, Open Days

Divine

Transformational Leadership:

Secret # 6

Divine

Intervention

Two Experiential Human Paradigms

Human beings have limited

control / influence over

what happens 40%controllable

60%uncontrollable

11

Life is a continuous

reduction of options time

controllable uncontrollable

22

How do you obtain divine intervention ?

On values and actions –

Be a Good Human Being

Ethics – Operate from the “White”,

11

22

white

Ethics – Operate from the “White”,

not from the “Black” / “Grey”

Self Renewal – Solitude & Reflection

(Theory of Enough)

22

33

grey

black

Recap: The 6 Secrets of Transformational Leadership

The Game of Impossible

KPI Anchorage

Discipline of Action

30

Discipline of Action

Situational Leadership

Winning Coalitions

Divine Interventions

Malaysia in Transition…

1 Malaysia(People First, Performance Now)

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National

Transformation

Policy

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