Performance Management: wallowing in the core or tinkering...

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

Prof. Datuk Dr. John Xavier 2

A HIGHPERFORMANCEPUBLIC SERVICE

SETTING STRATEGICDIRECTION

BUILDINGWORKFORCE COMPETENCY

IMPLEMENTINGQUALITYSTAFFING

MANAGINGPERFORMANCE,RECOGNITIONAND REWARDS

ENSURINGORGANISATIONAL

CAPACITY

SHAPING A HIGHPERFORMANCE-WORK CULTURE


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


Bulk of reforms under Mahathir’s leadership None had the impact as that of the

Government Transformation Programmeand its NKRAs and MPKIs



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”


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


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

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

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


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


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

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



• 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


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


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


Problem-solving approach vs. best practice approach

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


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 expectations building capacity leadership commitment to stretch targets structure, 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


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

Performance Management: wallowing in the core or tinkering...

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