Prof. Datuk Dr. John Antony Xavier Graduate School of Management Universiti Putra Malaysia 10 th May...

Prof. Datuk Dr. John Antony Xavier

Graduate School of Management

Universiti Putra Malaysia

10th May 2012

Performance Management in the Malaysian Public

Service: Wallowing in the Core or Tinkering at the

Frontier?

OUTLINE

Evolution of performance management Who drives performance management? Issues in performance management How we solve them Lessons from the Malaysian experience

Prof. Datuk Dr. John Xavier 2

MALAYSIAN PUBLIC SERVICE HRMSTRATEGIC AGENDA

A HIGHPERFORMANCEPUBLIC SERVICE

SETTING STRATEGICDIRECTION

BUILDINGWORKFORCE COMPETENCY

IMPLEMENTINGQUALITYSTAFFING

MANAGINGPERFORMANCE,RECOGNITIONAND REWARDS

ENSURINGORGANISATIONAL

CAPACITY

SHAPING A HIGHPERFORMANCE-WORK CULTURE


MALAYSIA HAS COME A LONG WAYIN PERFORMANCE MANAGEMENT

Reform Date

1. Programme and Performance Budgeting System (PPBS)

1968

2. Micro-Accounting System (MAS) 1987,1992

3. Modified Budgeting System (MBS) 1990

4. Productivity Improvement 1991

5. Total Quality Management 1992

6. Clients’ Charter 1993

7. ISO 1996

8. Benchmarking 1999

9. Key Performance Indicators (KPIs) 2005

10. Treasury Strategic results areas and strategic KPIs 2007

11. Auditor-General’s Star Rating on Financial Management

2007

12. MAMPU’s Star Rating System on Public Management 2007

13. KPIs for Departmental Heads 2008

14. National Key Results Areas and Ministers’ KPIs 2009

15. Outcomes-based budgeting 2011


WHO DRIVES THESE REFORMS?

Bulk of reforms under Mahathir’s leadership

None had the impact as that of the Government Transformation Programme and its NKRAs and MPKIs


NAJIB (OUR PRIME MINISTER) HAS CALLEDFOR WHOLE GOVERNMENT TRANSFORMATION

TO DELIVER OUTCOMES FOR THE CITIZENS


PM’s cabinet announcement

speech (9th April 2009)

…represent our nation’s top strategic priorities…

…focus on outcomes…

“…introducing a new paradigm for performance through rigorous use of KPIs…

…these goals will hold my Government accountable to the Rakyat…

…I will be personally involved in reviewing theprogress…”

PM’s 100-Day speechintroducing N-KRAs

… the breadth and depth of the initiative is unprecedented…

We are committed to undertake this transformational process…

“… the country’s leadership… will bring a new approach to face a new age…

… involve deep commitment and high demands from civil servants”

PM’s Statement on Government Transformation

(12th Sept 2009)

“ Our real work will begin as we make the transformation of government services happen”

“ The KPI / KRA offer clear measures designed to ensure that the government is working to better serve the needs of Malaysians”

“ The Government is set to begin the transformation process”


National Key Result Areas align with: 1Malaysia, People First, Performance Now

People First

National Key Result Areas

Crime Prevention

Reducing Corruption

Access to Quality and Affordable Education

Raising the Living Standard of the Low-Income Earners

Upgrading Infrastructure in the Rural and Interior Regions

Improving Public Transportation

Strengthening National Unity

Government for the People

Enhanced PublicService Delivery

Performance Now

1 Malaysia

Delivering on One Malaysia, People First, Performance Now

Reducing crime

Improving urban public transport

Fighting corruption

Raising living standards of low income householdsWidening access to quality and affordable education

Improving infrastructure in rural areas

Lead Ministry

MOHA

MOT

KPWKM

MOE

BHEUU

MRRD

MINISTERS HAVE BEEN SELECTED TO DELIVER IMPACT ON ONE

OF THE SIX NKRAS IN ADDITION TO THEIR OWN SET OF KPIS


http://www.sxc.hu/browse.phtml?f=download&id=754489

http://www.sxc.hu/browse.phtml?f=download&id=1198566

GTP – BUREAUCRATS DEFERRINGTO THE LEVIATHAN

Political intervention in service deliveryimprovements was inevitable after the 2008political tsunami . It’s now about political survival

Coordination lynchpin Political side – PM/DPM Public Service - The Chief Secretary of the Government

cum Head of Service PM heads the monthly reviews of NKRA performance

and six-monthly MKPI reviews The Chief Secretary chairs all reform coordinating

committees Stakeholders are consulted


PMS: WALLOWING AT THE CENTRE OR TINKERING AT THE FRONTIER?

Ministers’ KPIs NKRAs – emulating best practice but

formulation and implementation one of its kind


We took a radical approach

6 + 1Labs

A

Open Day

B

GTP Roadmap

C

Monthly & Annual Comms

D

Establish in detail whatneeds to be done

Share lab output withpeople and seek their feedback

Tell the people whatwe are going to do

Tell the people whatwe have delivered

4 months

We are the only Government who is doing all of the above


PMS: WALLOWING AT THE CENTRE OR TINKERING AT THE FRONTIER? NKEAs – another pioneering effort in the

steps of NKRAs Renewed focus on outcomes Integrating planning and budgeting –

Capital budgeting (5-year plans) and operational budgeting (OBB)

Aligning performance with the national agenda

Source: EPU

GRAPPLING WITH PERFORMANCE ISSUES

Ensuring enforcement OBB will hit the agency pockets for non-

conformity: integrated approach (combined operating

and development expenditure) to PMS NKRA – a huge success as it is

politically-driven from the top Pressure upon the public service to

demonstrate its relevance Alignment between department head’s

KPIs and Minister’s KPIs


GRAPPLING WITH PERFORMANCEMANAGEMENT ISSUES

Plethora of initiatives Difficulty of measurement Data availability and integrity Lack of alignment to the national

agenda of agency goals and budget structures

Gaming and number crunching The elusive outcomes – how to measure

them? Flagging interest after the ‘flavour’ is

goneProf. Datuk Dr. John Xavier 15

GRAPPLING WITH PERFORMANCE ISSUES

Question zero – Measurement of what? What are we trying to accomplish?


The most common form of stupidity is forgetting

what we are trying to do- Nietzsche

ARE WE OVER MEASURING?

OBB: 5 strategic thrusts 24 KRAs 30 programmes 200 KPIs to measure outcomes



GRAPPLING WITH PERFORMANCE ISSUES:CASCADING KPIS

• SEC-GEN

Tier 1

• DY SEC-GEN (P)• DY SEC-GEN(O)

Tier 2

• DIVISION DIRECTORS

Tier 3

HOW DO WE SOLVE THESE PERFORMANCE ISSUES?

Data management – Leverage data from NKRAs

Plethora of initiatives - Integrate performance assessments of central agencies in the CEO scorecard


ClusterPerformance Dimension

Weight- age

Rating

KPI1

BT2

OT3

ET4

ST

National Competitiveness

10% 3 6 8 10

10% 3 6 8 10

Public Service Delivery

Efficiency & Effectiveness

20% 6 12 16 20

20% 6 12 16 20

Governance & Accountability

10% 3 6 8 10

10% 3 6 8 10

Civil Service Transformational

Leadership

10% 3 6 8 10

10% 3 6 8 10

• National Competitiveness Index

• Auditor-General’s Rating

• MAMPU Rating

• Behavioural Competency Assessment

• Climate for Performance Employee Satisfaction Index

(Assessed by direct reports)

(3600 assessment by KSN & KPPA (LNPT), selected KSUs/KPs and direct reports)

Agency Specific

Personal Effectiveness

30% 60% 80% 100%

Scorecard: Director General , Economic Planning Unit ( EPU )

• Quality of Consultation (Assessed by Minister)• Clients’ Charter Compliance Index

• GDP Growth RateCommon Across

Civil Service

Agency-specific KPIs •Strategic KPIs (Treasury)• Achievement of macro economics targets by 2010

GDP (5%) Unemployment of less than 3.5%Bumiputera equity ownership of 30%Eradicating poverty to 2.0%Eradicating hardcore poverty to 0%

• 80% achievement of National Development Expenditure

HOW DO WE SOLVE PERFORMANCE ISSUES?

Difficulty in performance measurement – proxy indicators, process measurement

Gaming – benchmarking KPIs and targets with other countries


SUSTAINING THE REFORMS ALA NPM

Responsive governance and citizen participation

Focus on the touch points of the public Low-hanging fruits before the high-

hanging ones NKRA driven Persistent follow-up


LESSONS FROM THE MALAYSIAN EXPERIENCE

Problem-solving approach vs. best practice approach

Wave-like strategy on PMS Must be politically driven from the top


LESSONS FROM THE MALAYSIAN EXPERIENCE IN PMS

Getting KPIs right takes several cycles We will only learn by doing We won’t get it right the first time

KPIs are only one part of performance management. We must follow-though with regular

reviews of performance Use feedback to:

improve departmental performance determine rewards and consequences



Performance management is one important part of ensuring delivery

Other critical elements:managing perceptions and expectationsbuilding capacity leadership commitment to stretch targetsstructure, systems and processes link between performance and reward



Resources must match targets Quick wins to maintain momentum Focus on few key results areas that

are most important for the public Buy-in if there is a clear link

between KPIs and public happiness If KPIs are seen only as assessment

tools, they might be sabotaged Better no KPIs than wrong KPIs


THANK YOU FOR LISTENIN

G!

[email protected]@putra.upm.edu.my

Prof. Datuk Dr. John Antony Xavier Graduate School of Management Universiti Putra Malaysia 10 th May...

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