TYING PERFORMANCE MANAGEMENT TO SERVICE DELIVERY: PUBLIC SECTOR REFORM IN MALAYSIA, 2009 – 2011
SYNOPSIS In 2008 Malaysia’s voters expressed deep discontent with government services by handing the ruling coalition, Barisan Nasional, its worst election performance since independence in 1957. Poor service delivery reflected gaps in accountability, disparities in policy planning, and inadequate coordination across public agencies, especially at the ministerial level. After assuming office in 2009, Prime Minister Najib Tun Razak appointed Idris Jala, a politically unaffiliated corporate executive, as a cabinet minister to head the newly created Performance Management and Delivery Unit, known by the acronym Pemandu, which also means “the driver” in Malay. Najib assigned the new agency the job of monitoring and improving the performance of ministries. Idris facilitated policy planning by issuing a roadmap for change, developed by civil servants in eight six-week “lab” sessions held in October and November of 2009. Leveraging his role as an unaffiliated cabinet minister, Idris and his team at Pemandu then set about implementing the roadmap, building a service delivery chain that linked the cabinet minister to the citizenry via the civil service and implementing agencies. Under Idris, Pemandu implemented the Government Transformation Program (GTP), a system that focused ministries on six key results areas, involving measurable service delivery targets against which ministers and inter-ministerial initiatives would be assessed.
Deepa Iyer drafted this case on the basis of interviews conducted in Kuala Lumpur, Malaysia, in March 2011. Case published July 2011.
INTRODUCTION legislatures to the opposition, after ceding just In 2008, loss of support at the polls shocked one in the previous election. Polls indicated that Malaysia’s post-independence ruling coalition, many Malaysians felt increasingly disenchanted Barisan Nasional. In the general elections, the with the status quo under Barisan Nasional. The coalition suffered its worst performance in percentage of Malaysians identifying themselves history. For the first time since 1969, it failed to as “satisfied with the way things are going in the achieve the two-thirds parliamentary majority country” sank to 26% from 72% in 2006.1 required to amend the Malaysian constitution. Just five years before, in 2003, a new era in Barisan Nasional additionally lost five of 13 state Malaysian politics had begun as the country
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emerged from 22 years under a single leader, company, in Malaysia and Sri Lanka, rising to the Mahathir Mohamad. As prime minister, position of managing director at Shell Malaysia. Mahathir had widely publicized “Vision 2020,” a Impressed by his track record, the Malaysian policy agenda for moving Malaysia toward government in 2005 appointed him to head the developed-nation status by 2020, and the “Look ailing Malaysia Airlines, the government-owned East” policy encouraging Malaysia’s public and flag carrier. As chief executive, Idris revitalized private sectors to emulate their East Asian the airline, turning historic losses into healthy neighbors. Mahathir’s handpicked successor, profits in two years. Ahmed Abdullah Badawi, fell short in delivering At the cabinet workshops, Idris talked about on promises to improve service delivery. “The his work at Malaysia Airlines. “I was an outsider public was tired of their sisters and wives having invited to the cabinet workshops to give input on purses snatched, having to pay petty bribes while transformation—on how they might go about it hearing of high-level corruption, having to travel in the public sector,” Idris said. After three on congested roads,” said Koh Tsu Koon, who in months of discussions by the Cabinet and 2011 was minister of national unity and consultants, it became clear that a separate performance management. “They’d had enough, government unit was required to oversee and and all of this added up to the political tsunami of implement the kind of performance monitoring the 2008 election.” needed to revamp service delivery. The new In April 2009, facing pressure from the operation, called the Performance Management coalition to take responsibility for Barisan and Delivery Unit, would require a strong, Nasional’s dismal electoral performance, capable leader. Najib, impressed by Idris’ Abdullah resigned, and his deputy prime experience, offered him the job. The unit, known minister, Najib Tun Razak, was sworn in. With by its acronym Pemandu, or “the driver” in the memory of public discontent fresh in his Malay, was created in September as a mind, Najib knew that he had to deliver results government-linked company, or public agency, fast to keep Barisan Nasional and himself afloat within the prime minister’s office, with Idris at in future general elections. He issued the helm. “1Malaysia,” a policy agenda calling for the Pemandu’s broad mandate was to implement cabinet, government agencies and civil servants to the Government Transformation Program emphasize efficient government, national unity (GTP), which aimed to monitor and improve and ethnic harmony. Its first slogan—“People government performance by focusing ministries first, performance now!”—reflected Najib’s intent on clear targets and initiatives. The GTP system to make the government more accountable to its organized ministries around six key results areas citizens. and set specific targets against which ministers Najib invited Idris Jala, then a prominent and ministerial initiatives would be assessed. Malaysian corporate executive, to several cabinet This case study profiles the implementation workshops between April and July 2009 that of the Government Transformation Program by discussed avenues for change. The 52-year-old Pemandu under the guidance of Idris, and Idris was something of a celebrity in the private demonstrates how including civil servants in sector. A Kelabit tribe member who grew up in initial planning, identifying measurable targets, the remote highlands of Sarawak, on the island of developing a distinct delivery chain, and defining Borneo, Idris attended Universiti Sains Malaysia a clear reporting framework can catalyze a more and Warwick University in the U.K. For 23 years collaborative civil service culture and improve he worked for Shell, a multinational energy service delivery.
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THE CHALLENGE minister’s department. A selection of core Najib’s transformation plan emerged from a performance management initiatives long history of homegrown experimentation in implemented by the Malaysian Public Service is public sector reform. Despite six decades of provided in Table 1. performance management initiatives, These initiatives all suffered from accountability, planning and coordination still coordination failures and ministerial difficulties varied widely among the different ministries that in identifying results-oriented indicators. Xavier constituted Malaysia’s civil service. Efforts to said, “Each program took the public sector enhance efficiency along these lines “were further, but there was still room for more extensive, somewhat unconnected, and, until accountability, better planning and more recently, rarely emphasized measurable measures of outcomes and impact.” Koh, outcomes,” said John Anthony Xavier, professor minister of national unity and performance at Universiti Putra Malaysia and former director management, said, “Past initiatives were largely of research in the Public Service Department. process-driven, not results-oriented. The Several previous efforts had tried and failed perception was that the civil service could not to address these shortcomings in the Malaysian impact citizens directly.” public sector in an integrated way. Past initiatives In linking performance to service delivery, had been run mainly by the Treasury, the Public the most visible reforms in Malaysia had involved Service Department, or the Malaysian high-level, cross-ministerial units. Such agencies, Administrative Modernization and Management including the former Development Planning Unit, a special operation in the prime Administration Unit, the Malaysian
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Administrative Modernization and Management Azman bin Mokhtar, the head of Khazanah; Planning Unit, and the Implementation and Michael Barber, director of McKinsey & Co.’s Coordination Unit had some success in global education practice and former head of the improving public sector efficiency but were Delivery Unit of the U.K. prime minister’s office; constrained by eventually weakened and W. Chan Kim, founder of the Blue Ocean implementation authority and difficulties in Strategy corporate methodology and a overseeing ministry-level activities. management professor at the global business Some of these units sought to improve school INSEAD. Najib gathered opinions on public sector efficiency by infusing ministries with how to create a system that linked ministers better practices in a piecemeal way—organizing directly to the services that were delivered to conferences, distributing promotional materials citizens. He hired McKinsey, the Hay Group and holding occasional training sessions. Other and other consulting companies to devise a basic units, although focused on monitoring and framework. program implementation, lost steam due to inter- Najib arranged several cabinet workshops in ministerial coordination and communication the summer of 2009 to get ministerial agreement problems. On the whole, Idris said, “It was a on a new system. “Cabinet buy-in had to come focus on continuous improvement, which is long first,” Koh said. “We had to convince the and drawn out. It takes years to see any concrete ministers that it couldn’t be business as usual. At results, if at all.” Political support ebbed after first, there was considerable reservation. Some years of operating with meager results. ministers asked, ‘Why do we need this? I’ve been winning elections without all this.’ We FRAMING A RESPONSE responded that winning couldn’t last without Najib had noted the recent turnaround of results.” Eventually, Najib won over the government-linked companies under Khazanah ministers. Koh said, “The prime minister made it Nasional, the government’s investment arm, to clear that this needed to happen. The memory of become more profitable through improved the 2008 election was strong in our minds.” Tan corporate governance. When he took office as Juan Jim, a Hay Group consultant affiliated with prime minister in April 2009, he wanted to the process at this stage, said, “For the first time, explore similar ways to revitalize the entire public ministers actually agreed to be evaluated, to sector and improve service delivery. In early adhere to a corporate-based, formalized April, he called on Koh to lead the effort as evaluation system. This was something new.” minister of national unity and performance. Koh McKinsey’s Barber advocated a sharp focus and headed the Gerakan party, a minority party in the cautioned the cabinet workshops against Barisan Nasional coalition. At one time an spreading the new system too thin. elected member of the legislature, just before the The workshops set about identifying prime minister tapped him for a position, he had indicators to evaluate performance in three areas: been appointed senator in the upper house. The individual ministers, cooperative initiatives prime minister’s call was unexpected. “I was involving multiple ministries, and single-ministry surprised when I was given this portfolio,” Koh initiatives. said. “I’d never done anything like this before, Some work had already been done on and it was so diverse. I’d have preferred indicators for the performance of individual something easier, but we had to hit the ground ministers. When he took office in April, Najib running.” had told each member of his Cabinet to set five Najib and Koh talked with people like preliminary targets, called ministerial key
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performance indicators, or KPIs, for themselves. ministry and minister, and gave attention to Juan Jim, from the Hay Group, said, “This was outcomes that directly affected the public—for Key Performance Indicator, Version 1.0, the very example, responding faster to public complaints first round of meetings to get an initial feel for or reducing the number of road accidents. what the ministers’ baseline ability to measure By July, it was clear that Koh needed a way was like.” Najib and Koh made it clear that target to make the new system of coordinated policy setting was a consultative process. goals (national key results areas, NKRAs), The Cabinet ministers struggled to identify individual ministry goals (ministerial key results valid indicators. Some set low, easily achievable areas, MKRAs), and minister evaluations goals for themselves, and ministries’ operational. He needed a way to specify how to interdependent policies often made it difficult to evaluate ministers according to their indicators identify specific outcomes. Additionally, some and how to achieve the goals set by key results ministries’ outcomes were more measurable than areas. others. Koh said, “Here’s an example: The Koh realized, as well, that a paramount foreign minister joked, ‘As long as we don’t have question remained unanswered: Who would be war, my diplomacy is successful.’ On the other in charge of implementing a mandate that had hand, it is obvious that increasing the number of such sweeping powers and responsibilities? enrolled students in preschools by a specific “Holding such a big portfolio to transform the amount is a concrete KPI for the education government was most challenging indeed,” he minister. We had to turn general responsibilities said, explaining his perspective on the decision. into numbers.” “First of all, I have another challenging portfolio To facilitate inter-ministerial coordination of national unity, besides being the head of the and streamline initiatives managed by multiple Gerakan party. Second, as I was politically ministries, Najib decided to reorganize the affiliated with Gerakan, the other ministers did ministries to focus on policy goals. The cabinet not feel comfortable with my role in workshops assigned consultants to scour implementing ministerial evaluations.” newspaper articles, town-meeting discussions, Recognizing that the implementing online media and public polls to determine the authority needed a leader who had no party areas the public appeared to care most about. entanglements, Najib turned to Idris, who had a Based on the findings, the cabinet selected six record of corporate success and no apparent national key results areas, or NKRAs: reducing political affiliation. In September 2009, Najib crime, fighting corruption, improving student announced the creation of Pemandu as an agency outcomes, raising living standards of low-income within the prime minister’s office, and named households, improving rural basic infrastructure, Idris as director and chief executive. Idris also and improving urban public transport. Najib was given the title of minister without portfolio, assigned a lead minister and ministry to each allowing him to attend all cabinet meetings and goal, with each NKRA involving several other have direct access to both ministers and the prime implementing authorities. He made the national minister. Koh felt that this measure “gave Idris key results areas official on 11 July 2009 to mark the same status as the ministers, and made it clear his first 100 days in office. that the new system was also to be promoted Meanwhile, within ministries, teams listed based on the collective consensus of all ministers.” key policy goals that did not involve inter- Koh remained minister of national unity and ministerial coordination. These 26 ministerial performance, and acted as Idris’ direct supervisor key results areas, or MKRAs, fell under a single and chairman of the board of Pemandu. He also
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served as Pemandu’s voice in Parliament and Ministries were instructed to send their best helped to create macro-level policies for the and brightest operational staff to the labs. Lab performance monitoring system. attendees received their regular salaries during the Idris’ job at Pemandu was to implement the six weeks, as well as a bonus from the prime entire GTP performance monitoring system, minister’s office. When senior civil servants in including the rudimentary framework set by the ministries initially complained about losing their cabinet workshops, and to do so quickly. best staff for six weeks, Idris made it clear that the exercise was important to the nation’s interest. GETTING DOWN TO WORK Idris said the analytical process of each lab Idris started by recruiting staff from the involved “going from 3,000 feet to three feet,” private sector and from among Malaysian that is, starting with the big picture (a single expatriates. Because Pemandu was an agency in national key results area, like reducing crime, for the prime minister’s office, Idris could offer example) and sharpening the focus to inspect its competitive salaries that exceeded civil service pay smallest details. The labs encouraged interviews scales. He sought out dynamic individuals whose with citizens and solicited input from the public work he had respected during his time in the through online feedback and text messaging. private sector, and he scouted innovative public Lab members divided each national key sector veterans as well. He also recruited recent results area into subcategories and developed university graduates. performance indicators within the subcategories before hammering out realistic initiatives to Developing a roadmap using ‘labs’ achieve the targets. For example, in an education To implement the new system, Idris said, he lab on “improving student outcomes,” four focus had to develop a process. At Malaysia Airlines, outcomes were identified: increasing the Idris had presented a preliminary turnaround plan preschool enrollment rate of 4- and 5-year-olds to the board and employees on his first day, then while improving system quality, ensuring that all met with the various stakeholders and fine-tuned children have acquired basic reading/writing and his roadmap into a formal strategy document—all math skills after three years of education, within 100 days. He decided to undertake a developing high-performing schools and lifting similar process at Pemandu, where, he said, “I the performance of all schools in the system, and had to achieve big results fast” in order to build improving the performance of head teachers and and sustain momentum. principals via performance management. Under Idris’ direction, Pemandu organized a Within each of these four outcomes, lab series of “lab” sessions between October and participants devised four to six indicators to December 2009. These gatherings brought define the outcome further, and these indicators together a total of 250 civil servants across all were further broken down into detailed government ministries to brainstorm solutions initiatives. Under the outcome for reading/ and identify targets within the national key results writing and math skills, for instance, one areas. Idris had used the lab methodology in the initiative involved conducting periodic screenings private sector to encourage idea generation. He to identify candidates for a new literacy and personally trained consultants to lead each numeracy program run by the Ministry of session, designing a template to use in the labs. Education. The eight daily labs—one for each NKRA, one Idris, the prime minister, cabinet ministers on “1Malaysia” and one on data management— and the heads of the civil service spent substantial each continued for six weeks. time with each of the labs, monitoring their
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progress and challenging the lab members to set the public attended, and there was so much tough goals and aggressive deadlines. The crime interest and input coming from them.” More lab, for instance, set a target of reducing street than 5,000 citizens attended in Kuala Lumpur crime by 20%. “We encouraged high ambitions alone. using stretched, seemingly impossible targets, but Pemandu compiled the labs’ findings into a to do this we had to encourage everyone to 260-page book, the “Government conquer the fear of failure,” Idris said. “I believe Transformation Program Roadmap,” which was that setting incremental targets is tantamount to released by Najib and made widely available to avoiding transformation.” The crime lab, for the public in January 2010. Idris said, “When instance, set a target of reducing street crime by you put the program out to the public with 20%. concrete promises and commitments, there is The labs ensured a diversity of views by only one outcome: You have to deliver. There is bringing together civil servants from all ministries a lot of opportunity to hide, but after declaring it to debate specific issues. Tengku Azian, director in such a detailed way, you have no choice. It’s a of the education NKRA team at Pemandu, said, salesman’s nightmare. You have to produce a “The lab is an environment where hierarchy is set product and deliver.” aside. We encourage participants to leave their ‘organizational hats’ outside the door. It Resetting targets and evaluating ministers empowers civil servants, giving them a chance to With a detailed roadmap in place, Idris voice ideas that may have been in the works for turned his attention to the ministers’ evaluations, years.” Waitchalla Suppiah, a participant in the which would set the performance monitoring crime lab and a civil servant in the Ministry of system rolling from the top. He found there was Home Affairs, said, “It was very unique—that the still work to do. The initial ministerial key ideas came from us, the people with expertise. performance indicators developed in the summer We were really able to express our thoughts for of 2009, before Pemandu, did not reflect priority improvement.” outcomes. Idris wanted to fine-tune targets and Idris had each lab group translate its link them to national and ministerial key results initiatives and targets into quick wins that were areas. achievable by the end of 2011, and big wins that The task was not easy. “So many people could be achieved by the end of 2012. Lab came to me and said, ‘Idris, can we put out groups also wrote detailed timelines with something that is glossy, that is full of words but deadlines for the steps of each initiative. After without specific targets set out there?’” Idris developing clear implementation strategies, the recalled. To help ministers to devise better teams presented their ideas to the ministries (the targets and plan accordingly, the Hay Group implementing authorities) and local experts. At consultants recommended that ministers should the end of the lab, participants and ministry have “KPI officers” to help them work out details representatives came together to sign cooperation of their key performance indicators. agreements that committed the ministries to The KPI officers worked with their action. respective ministers, other top ministry officials Pemandu then held town hall sessions, and Idris. KPI officers were typically mid-level called “open days,” in Kuala Lumpur, Kuching managerial civil servants who had performed well and Kota Kinabalu, presenting each lab’s finding in their respective ministries. Ministers or senior and soliciting feedback. These events “were civil servants within ministries typically enormous,” Suppiah said. “So many members of nominated younger civil servants to these
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positions, which were perceived as challenging filling in Pemandu’s template. The KPI officers assignments. met frequently with Pemandu to discuss The Public Service Department arranged roadblocks. training for all KPI officers, offering advice on Najib decided to hold evaluations twice a how to coordinate people and win agreement year, in May-June and December-January. Idris when opinions differed. Idris and Najib acted as the mediator for each of these negotiated heavily with the cabinet ministers and evaluations. He compiled presentations that their KPI officers on how to focus and improve detailed the efforts of each ministry and cabinet their targets. They encouraged ministers to align minister. Using the data compiled by KPI their targets with the national and ministerial key officers, the prime minister, Idris and the results areas. An example of a template ministers reviewed scorecards that assigned a developed to facilitate planning is illustrated by green, yellow or red rating to each of the Table 2. minister’s indicators, based on the extent to which From November 2009 to January 2010, each target was achieved. Ministers answered the Najib conducted one-on-one performance prime minister’s questions and the group worked reviews for ministers based on the targets each together to decide on targets for the next had agreed to. He did an initial assessment, evaluation. In a political culture where the prime reviewing ministers’ preliminary indicators and minister selected cabinet ministers according to developing targets further for 2010. KPI officers their parties’ clout within the Barisan Nasional tracked ministers’ performance on outcomes, coalition, Idris’ lack of political affiliation allowed
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him to function as an effective interlocutor. servants manage change themselves rather than to impose change from above. Acting on plans: creating a service delivery chain To help ministries achieve targets and jointly Coordination and resolving problems implement initiatives detailed by the roadmap, After the delivery management offices Pemandu set up subunits for each of the six started to function, Idris organized a reporting national key results areas and one unit to cover all structure to coordinate the various tiers of the 26 ministerial key results areas. Pemandu also system. He convened weekly problem-solving created parallel delivery management offices in meetings of participants in each of the six every ministry, focusing first on the lead national key results areas. Representatives of the ministries under each of the six national key implementing agencies farther down the service results areas. These two organizations—the delivery chain attended, along with Pemandu and subunit at Pemandu and the corresponding delivery management office staff. “These delivery management office in the ministry— meetings were held solely to bring up problems,” worked together to implement initiatives said Azian, director of Pemandu’s education specified by the roadmap. Delivery management subunit. “It’s a highly interactive session where office members met daily and communicated we resolve roadblocks with inputs from Idris, closely with their counterparts in subunits at delivery management office staff, and the division Pemandu to manage and monitor ministries’ heads of the ministry. By holding it on a regular implementation of initiatives. basis, decisions to resolve issues are made The delivery management offices in the quickly.” ministries usually included several staffers who Idris said, “I always believe that people had attended one of the eight labs and therefore actually know the solutions. The good ideas are felt invested in the process and the results. The already there, and people know these ideas, but offices reported to the corresponding Pemandu the reason we don’t move from ideas to results is team for advice and monitoring, but the because there are technical, political, ministries themselves appointed people to the administrative, process, system hurdles.” The offices and provided work space. weekly problem-solving meetings allowed Idris to To implement initiatives that involved monitor each NKRA. In his role as facilitator, significant decentralization (for instance, reducing Idris negotiated divisive issues among cabinet the crime rate by redeploying police officers), ministers, offered suggestions and advice, and, each delivery management office typically set up when necessary, made difficult judgments, relying another delivery management office at the next on support from the prime minister or his deputy. lower tier (for example, at the state or district Once a month, Idris and each NKRA team, levels). delivery management office staff, and other key After the delivery management offices were members of the delivery chain met with the prime created and staffed, the next task was to get the minister in a delivery task force meeting. These offices to function properly and coordinate their meetings served to open lines of communication work with Pemandu subunits. “There were with the prime minister and to demonstrate his structural issues in the beginning,” recalled involvement in the effort. “By chairing the Ravindran Devagunam, director in charge of monthly delivery task force meeting,” Azian said, Pemandu’s corruption subunit. “It took time to “the PM demonstrated his support and operate cooperatively.” In promoting emphasized the work’s importance as a national coordination, Pemandu took pains to help civil agenda item.”
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The meeting structure helped maintain the director of the crime national key results area. momentum of activity at Pemandu and within “Who were we to come in and tell them how to the delivery management offices. “Everyone is do their jobs?” being constantly chased by weekly meetings, Kian Ming Ong, a lecturer and political hence, delivery is required,” said Dr. Chua Hong consultant, explained, “Private sector types do Teck, director of Pemandu’s low-income- things professionally, and sometimes I think it households subunit. Azian agreed. “Although can be hard for efficient people to understand Pemandu engages with the ministries on a daily that the civil service has many people with basis, these weekly problem-solving meetings political inclinations willing to oppose the flow, with the higher management and monthly to sabotage a policy agenda. It’s a cultural sessions with the PM meant that little would fall disconnect.” through the cracks,” she said. Issues of hierarchy and status also affected the system. Teh described his first meeting with Building legitimacy: the external review a senior police officer, who tried to set the tone of In late January 2011, Najib’s government the meeting by asking him, “So, how long have invited prominent international experts to critique you been working in the police force, and how the program. “We needed a look from the much experience do you have?” Teh had to make outside in,” Idris said. The panel included Barber it clear that he did not have such experience and from McKinsey; Michael Hershman, co-founder that he was there in a facilitating capacity. Many of Transparency International; Steven Sedgewick, interviewees indicated that an exacerbating factor the Australian Public Service commissioner; in meetings between Pemandu and ministerial Sergei Dodzin, senior economist at the staff was resentment about Pemandu’s higher International Monetary Fund; and Ravi salaries. Balakrishnan, the IMF’s resident representative Members of delivery management offices in Singapore. and KPI officers faced similar challenges from the The Pemandu team briefed the panel bottom looking up. As civil servants within their members on the entire Government ministries, they walked a tightrope in working Transformation Program, focusing on the key directly with Pemandu. On one hand, results areas. The directors of each NKRA team Pemandu’s initiatives allowed them to voice and gave detailed presentations on their respective implement their own ideas from the labs. On the programs and fielded questions from the other hand, they faced implementation participants. After receiving the panel’s roadblocks within their own ministries. “They comments, the Pemandu team deliberated among had to make it look like they were with Pemandu, themselves and prepared feedback for the prime or with the ministry, but not of Pemandu, or of minister, the Cabinet and Idris. the ministry, depending on which side they talked to,” Ong said. “They had to be double agents of a OVERCOMING OBSTACLES sort.” Structural problems became apparent during Another issue related to ministerial Pemandu’s early days of operation. The clash of structure. Because the chief secretaries of culture between Pemandu’s corporate operating ministries, typically senior civil servants, stayed in method and the ministries’ civil servants was the their jobs far longer than most ministers, the most significant systemic challenge. “We were secretaries often had greater knowledge, seen, initially, as an interfering agent,” said connections and de facto influence than their Eugene Teh, a former McKinsey consultant and corresponding ministers. “The longer a secretary
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general has been around, the less power the had to keep rewarding the civil servants, making minister has,” Ong said. The key performance it clear in initiatives that we were there to help indicator system for chief secretaries run by the them do the things that they had always wanted Public Service Department complemented the to do, but couldn’t, because, for example, the ministerial evaluation system and alleviated this Public Service Commission has strict and difficult tension somewhat. guidelines when requesting additional resources. Strong support from the prime minister We had to portray ourselves as enablers, eased several of these obstacles. “Without that facilitators who fly in to remove red tape.” political will at the top, coordination would have been harder because there were so many priorities ASSESSING RESULTS that strained the system at so many levels,” said On the evening of 27 March 2011, Najib, D. Ravindran, director of the corruption subunit Idris and the Pemandu team released their annual at Pemandu. Additionally, Idris’ communication Government Transformation Program report to system, which emphasized frequent meetings and approximately 7,000 Malaysians gathered in his own role in mediating talks to solve difficult Bukit Jalil Putra Stadium in Kuala Lumpur.3 operational issues, made the system operate more They publicized their progress on the six national smoothly as time passed. Yet, civil service buy-in key results areas. Pemandu’s stated results were remained a key obstacle. detailed and extensive, listed initiative by Idris made it clear to staff at Pemandu that initiative within the key results areas. For they were there to facilitate solutions to example, reported street crime dropped within ministries’ problems rather than to dictate top- one year by 35%, and a survey conducted by down changes, even though direct orders Transparency International’s Global Corruption sometimes proved necessary. “Pemandu acts as a Barometer 2010 showed that 48% of Malaysians facilitator, mediating agency-ministry issues,” felt that the government’s efforts in fighting Azian said. “We are also their sounding board corruption were effective—a sharp increase from for generating and challenging ideas and problem 28% in 2009.4 In rural areas, approximately two solving. The fact remains that the ministries are million people benefited from projects that the ones entrusted to deliver the targets--that civil provided potable drinking water, extended servants are responsible for implementing electrical service, built roads and restored initiatives. The ministries and civil servants take housing.5 full credit for their hard work.” Idris described Achievements stemmed from the prime “carrots and sticks” tactics that he used at minister’s clout in making the system work, the Malaysia Airlines. In one situation, Idris had to system’s decentralized structure with close the airline’s business lounge in Singapore to management offices at each delivery tier, the cut costs. When faced with an uproar, he made it linkage between ministers’ twice-yearly clear that the only alternative was to close down evaluations and their achievement on the key an entire route instead. “That’s a tactic that we results areas, and Idris’ role as an intermediary use a lot here,” Teh said. “The alternative often and coordinator between the different levels of means swallowing a more bitter pill.” the system. The entire exercise “has gotten the Teh described negotiating tactics that he government to become increasingly serious about had learned by observing Idris. “In especially evaluation, transparency and measurement,” challenging situations, we shift to auditing the Xavier said. Several interviewees pointed to the outcome instead of the process,” he said. “We beginnings of a change in civil service culture and
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methodology toward more clearly defined goals compiled the information. and measurable levels of performance and service At one point, Pemandu engaged delivery. PricewaterhouseCoopers (PwC) to ensure that One of the most innovative aspects of the the data inputs used in reporting key performance entire system was Idris’ lab methodology, which indicators aligned with the information provided provided operational civil servants the by participating ministries. The accounting and opportunity to voice ideas and gave them consulting firm also checked the calculations of ownership of reforms. Suppiah, a former key performance indicators against the guidelines member of the crime delivery management office and formulas developed by Pemandu and the in the Ministry of Home Affairs, said, “It was the former lab sessions. The firm’s findings opportunity of a lifetime to be encouraged to highlighted errors, which were then addressed think in such a way and to be given the chance to and corrected. However, Pemandu still depended implement those ideas.” on ministries for its data. PwC suggested ways to Pemandu and Idris’ role within the system improve reporting processes and data quality, and drew near-constant scrutiny from the public and Idris had Pemandu sit down with the relevant frequent criticism from Barisan Nasional’s ministries to consider the proposals during the political opposition. On one hand, the next year. performance delivery system had achieved, on Opponents also accused Najib of setting up paper, significant results quickly. On the other Pemandu as a ploy to assure his own re-election. hand, the public and the opposition increasingly Although Najib and Idris stressed that Pemandu questioned aspects of these results. They was a sustainable project that would continue challenged Pemandu’s budget and the capacity of beyond the electoral cycle, critics noted that most the government to afford such a program. Pemandu employees were hired on three-year Malaysiakini, an online news site, reported that contracts. The International Performance the government paid 66 million ringgit (US$22.2 Review Panel from January 2011 made it clear million) to consultants to initially set up that, while Idris and Pemandu’s work was Pemandu, and that Pemandu’s operating budget commendable, the organization should focus for 2011 reached 729.4 million ringgit ($245.1 more on civil service buy-in in the future. million). The news fueled speculation and “The real question,” said Ismail Adam, a triggered an uproar among the coalition’s political former director general of the civil service, “is opposition. Idris made public statements whether Pemandu is around longer than Najib rebutting this claim and insisted that the is.” Ong had similar thoughts. “Right now, the spending totals were heavily exaggerated. He said entire institution is linked, very much, to Najib’s Pemandu’s 2011 operating budget was 40 million name,” Ong said, “and perhaps depends too ringgit (US$13.5). much on the charisma of a single person, Idris, to Other complaints focused on the quality of hinge the entire system together. We will only the data used for the system’s indicators. Because know what happens at the next election, which is of the decentralization of delivery management on or before 2013.” offices, Pemandu relied on statistics from In September 2010, Najib, pleased with different tiers of different ministries to compile Pemandu’s work on the Government target indices and indicators. Bias, errors and Transformation Program, added a second tampering could occur, depending on how program to its mandate: an Economic frequently data changed hands before reaching Transformation Program intended to turn Pemandu, and on how ministries collected and Malaysia into a high-income economy by 2020,
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generating revenue and creating jobs. Idris and exposed civil servants to analytical rigor and Pemandu’s purview doubled overnight, and Idris granted them voice and ownership of reforms. set about generating similar lab sessions to kick- On the system as a whole, Ismail Adam, a start the economic program. Critics expressed former director general of the civil service who in concern that the original GTP might be placed early 2011 was a consultant at the Hay Group, on the back burner. Several members of said, “I’ve not seen ministries, ministers, and civil Pemandu’s team were given additional portfolios servants coordinating to work so fast before. The within the economic program, doubling some response times were amazing—they were employees’ workloads. “Najib may feel that he working like a light infantry. It amazed me. … gets more political mileage by focusing on the Ask anyone in a ministry what a big win or a economy,” Ong suggested. quick win is, what targeting is, what key Later in 2010, Najib stopped attending the performance indicators are, and they will be able monthly delivery task force meetings on a regular to tell you in an instant. It is a real change in the basis, designating his deputy prime minister to mindset, making us all more results-oriented.” run the gatherings in his stead. In response to Eugene Teh, former McKinsey consultant and concerns that top-level support might be director of the crime national key results area, waning, Idris, Koh and Najib issued several agreed. “The service thinks differently now,” Teh public statements emphasizing the importance said. “They think in terms of this methodology, of the performance monitoring system. because there is so much upper-level support for the system.” John Anthony Xavier, former REFLECTIONS director of the Public Service Department’s To ensure their own political survival, prime research wing, said, “Each such iteration of public ministers sometimes offer exaggerated promises service reform can be compared to the waves of of public sector reform that later evoke cynicism the ocean which, with each gentle swash on the and disappointment. In Malaysia, however, there shore, pushes the tidal watermark even higher.” were two sides to the situation. On one hand, Kian Ming Ong, a lecturer and political Prime Minister Najib Tun Razak’s motivations consultant, said, “Removing distortions in the were surely influenced by Barisan Nasional’s poor public sector is never, ever easy. Certainly, they election performance in 2008. On the other are delivering a more structured, outcome-driven hand, Najib invested significant amounts of time message to the rakyat, the public. But, for the getting cabinet buy-in, developing a methodology public, how visible is a change in civil service and framework for the system, and, most culture? Do they really see it? We need to know importantly, hiring the politically unaffiliated, more about the recipients, the humans behind the respected Idris Jala to implement the system. statistics.” Under Idris’ guidance, Pemandu enabled the Ong wrote “In defense of Idris Jala,”6 an government to deliver on several of its promises. opinion article that was published in July 2010 by Opposition politicians and affiliated media Malaysiakini, Malaysia’s largest non-government- generally treated the entire exercise with owned media outlet. He made the case that Idris, skepticism, although many gave credit to Idris’ while upstanding, charismatic and capable, had ability to take on a mammoth task. However, at strengths that “can often be his liabilities as well, least some civil servants said they felt that the new especially in the […] world of realpolitik. The system had changed how the government fact that he is different and does not come from a operated. They cited the lab methodology as an political background, while seen as positive in the innovation in the Malaysian public sector that public’s eye, is seen as something negative from
© 2011, Trustees of Princeton University 13 Terms of use and citation format appear at the end of this document and at http://www.princeton.edu/successfulsocieties. Deepa Iyer Innovations for Successful Societies some of his cabinet colleagues for precisely the address in year two.7 Navaratnam said those same reason. The end result is that the questions centered on (1) statistical accuracy, (2) substantive changes which Idris wants to bring whether the improvement shown by data would about are undermined from within, sometimes be felt by Malaysian citizens, (3) the sustainability from the very start, to the detriment of the morale of the initial encouraging results, (4) whether the of Idris’ hardworking staff, himself and perhaps system was intended as a vote-getter or as a his family, and most importantly, the people who legitimate long-term initiative, and (5) whether would have been the ultimate beneficiaries from the government would link the system to broader the policy changes which Pemandu is trying to problems of racial equity, religious freedom and achieve under Idris’ leadership. I sincerely hope quality of life. and pray that Idris’ spirit will not flag and that he Idris offered a philosophical view of his work will go on fighting the good fight. For the sake at Pemandu. “I always believe that human beings of the country and of the state, which he so have limited control over what happens to them,” clearly and so dearly loves.” he said. “Who controls the world? Some people Ramon Navaratnam, former Transport say it’s God, others fate, and some call it luck. Ministry secretary general and president of You can do everything and still fail because it’s Transparency International Malaysia, wrote in your destiny to do so. I think that as a leader, if late March 2011 that while the first year’s results my troops and I have done our best, that's all I “have been received like a breath of fresh air,” can ask.” several questions remained for the government to
1 Merdeka Center, “Peninsula Voter Opinion Polls”, March and July 2008. Available at
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