performance management: wallowing in the core or tinkering...
TRANSCRIPT
Prof. Datuk Dr. John Antony XavierGraduate School of Management
Universiti Putra Malaysia10th May 2012
Performance Management in the Malaysian Public Service:
Wallowing in the Core or Tinkering at the Frontier?
Evolution of performance management Who drives performance management? Issues in performance management How we solve them Lessons from the Malaysian experience
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A HIGHPERFORMANCEPUBLIC SERVICE
SETTING STRATEGICDIRECTION
BUILDINGWORKFORCE COMPETENCY
IMPLEMENTINGQUALITYSTAFFING
MANAGINGPERFORMANCE,RECOGNITIONAND REWARDS
ENSURINGORGANISATIONAL
CAPACITY
SHAPING A HIGHPERFORMANCE-WORK CULTURE
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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
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Bulk of reforms under Mahathir’s leadership None had the impact as that of the
Government Transformation Programmeand its NKRAs and MPKIs
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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 thistransformational 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 transformationof 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”
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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 households
Widening access to quality and affordable education
Improving infrastructure in rural areas
Lead Ministry
MOHA
MOT
KPWKM
MOE
BHEUU
MRRD
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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
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Ministers’ KPIs NKRAs – emulating best practice but
formulation and implementation one of its kind
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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
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
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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
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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 gone
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Question zero – Measurement of what? What are we trying to
accomplish?
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The most common form of stupidity is forgetting what
we are trying to do- Nietzsche
OBB: 5 strategic thrusts 24 KRAs 30 programmes 200 KPIs to measure outcomes
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• SEC-GEN
Tier 1
• DY SEC-GEN (P)• DY SEC-GEN(O)
Tier 2
• DIVISION DIRECTORS
Tier 3
Data management – Leverage data from NKRAs
Plethora of initiatives - Integrate performance assessments of central agencies in the CEO scorecard
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Cluster Performance Dimension
Weight-age
Rating
KPI1
BT2
OT3
ET4
ST
National Competitivenes
s
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 PerformanceEmployee 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
Difficulty in performance measurement –proxy indicators, process measurement
Gaming – benchmarking KPIs and targets with other countries
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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
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Problem-solving approach vs. best practice approach
Wave-like strategy on PMS Must be politically driven from the top
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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
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Performance management is one important part of ensuring delivery
Other critical elements: managing perceptions and expectations building capacity leadership commitment to stretch targets structure, systems and processes link between performance and reward
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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
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[email protected]@putra.upm.edu.my