Change Management in Implementation of

Accrual Accounting in Federal Government

of Malaysia
Lau Kar Woh (P!"#"$"%%&
I''aty (inti )ohari (GM*++*%&
Ammsela,my a-p Manic.adass (P!"#"""/%&
0an Ch1ee Guan (P!"#""$"2&
Contents
Executive Summary 1
1 Introduction 2
2 Objective 2
3 Methodology 2
4 Kotter Eight!Ste" Model #or $hange 3
% Ste" 1 Increae &rgency 3
' Ste" 2 (uild )uiding *eam 4
+ Ste" 3 )et the ,iion -ight '
. Ste" 4 $ommunicate #or (uy!In +
/ Ste" % Enable 0ction 11
11 Ste" ' $reate Short!*erm 2in 14
11 Ste" + 3ont 4et &" 1'
12 Ste" . Ma5e It Stic5 1+
13 $oncluion 1.
0"" 1 Soal Selidik Kesediaan Perubahan Terhadap Migrasi ke Arah
Perakaunan Akruan
1/
0"" 2 Tahap Kesediaan Kementerian Terhadap Perubahan 23
0"" 3 $ommunication *ool 2%
0"" 4 Malayian 6ublic Sector 0ccounting Standard 7M6S0S8 2+
0c5no9ledgment 2/
-e#erence 2/
3ote4 *he vie9 ex"reed in thi "a"er are the 9riter o9n: and not
0ccountant!)eneral 3e"artment o##icial re"reentation;
3
5,ecutive !ummary
(aed on Kotters Eight-Step Model for Change a our main #rame9or5: thi
"a"er examined ho9 <ederal )overnment o# Malayia generally and
0ccountant!)eneral 3e"artment "eci#ically manage change during the
tranition "eriod to accrual accounting bai #rom modi#ied cah accounting
bai; *he <ederal )overnment o# Malayia had decided to ado"t accrual
accounting bai a it #inancial re"orting #rame9or5 9ith e##ective #rom 1
=anuary 211%;
*he Kotters Eight-Step Model for Change are 718 increae urgency: 728 build
guiding team: 738 get the viion right: 748 communicate #or buy!in: 7%8 enable
action: 7'8 create hort!term 9in: 7+8 dont let u": and 7.8 ma5e it tic5;
(eide 9e ued Mendelow-Scholes Power-nterest Matri! to ex"lain the
buy!in communication activitie; *hi matrix ma" variou a##ected
ta5eholder according to their "o9er to in#luence organiational trategie
and interet in the organiation activitie: and identi#ie the a""ro"riate
re"one 7action8 9hich leader need to ta5e in order to minimie
reitance and hoc5 a 9ell a 9al5 9ith them to9ard goal;
In concluion: the t9o 5ey to ucce in managing change are
communication and involvement; 4eader hall al9ay communicate the
goal: trategie: develo"ment and achievement to ta5eholder; In order get
ta5eholder u""ort and commitment: leader hall al9ay involve them and
lend a hand along the change "roce;
1
"6 Introduction
$urrently: <ederal )overnment o# Malayia i recogniing #inancial
tranaction bae on modi#ied cah accounting bai;
0ccording to "ew Economic Model for Mala#sia$ Concluding Part - Strategic
Polic# Measures: under the modi#ied cah accounting regime: it i inu##icient
to ho9 a true "icture o# #inancial health o# the government: #ical
tran"arency a 9ell a accountability to the "eo"le;
*here#ore ado"tion o# accrual accounting i eem a mut to #acilitate aet!
liability management: and hence: com"rehenive and "rudent #ical
management; (eide: international good "ractice call #or ex"anding
government #inancial in#ormation to include accrual accounting tatement;
On 11 May 2111: 3ato Seri Mohd >ajib bin *un 0bdul -a?a5: Malayian
6rime Miniter had announced that <ederal )overnment o# Malayia 9ill
ado"t accrual accounting bai 9ith e##ective #rom 1 =anuary 211%;
$6 7(8ective
(aed on Kotters Eight-Step Model for Change a our main #rame9or5: thi
"a"er examined ho9 <ederal )overnment o# Malayia generally and
0ccountant!)eneral 3e"artment "eci#ically manage change during the
tranitional "eriod to accrual accounting bai #rom modi#ied cah accounting
bai;
#6 Methodology
2e have done the tudy mainly by Internet earch beide intervie9 and
obervation;
+6 Kotter9s 5ight:!tep Model for Change
*he Kotters Eight-Step Model for Change may be grou" into three major
"hae@ 718 creating a climate #or change: 728 engaging and enabling the
9hole organiation: and 738 im"lementing and utaining the change; See
Figure ";
Figure " Kotter9s 5ight:!tep Model for Change
2
Source@ 0da"ted #rom $ohen: 3an S;: The %eart of Change &ield 'uide$ Tools and
Tactics for (eading Change in )our *rgani+ation: Aarvard (uine School 6re: 211%:
(oton;
/6 !tep " Increase ;rgency
BIn thi #irt te": change leader mut build a ene o# urgency about the
needed change by heightening energy and motivation; *o do thi: they 9ill
need to reduce #ear: anger: and com"lacency that may have built u" in their
organiation;C
On 31 March 2111: >ational Economic 0dviory $ouncil had iued "ew
Economic Model for Mala#sia$ Part , - Strategic Polic# -irections: dicuing
current ocioeconomic ituation in Malayia a com"are to the develo"ed
countrie: goal and enabler; *he goal o# the >e9 Economic Model 7>EM8 i
#or Malayia to be a develo"ed and com"etitive economy 9hoe "eo"le enjoy
a high Duality o# li#e and a high level o# income 7&SE1%:111 F 21:111 "er
ca"ita by 21218 reulting #rom gro9th that i both incluive and utainable;
One o# the enabler i to trengthen the "ublic ector;
3
Lewin
1. Increae &rgency
2. Build Guiding Teams
3. Get the Vision Right
4. Communicate for Buy-In
. !na"le #ction
$. Create %hort-Term
&ins
'. (on)t *et +,
-. .a/e It %tic/
Engaging and enabling
the 9hole organiation
Im"lementing and
utaining the change
+nfree0e
.o1e
Refree0e
Kotter (1995)
$reating a climate #or
change
*hee 9ere reiterated by "ew Economic Model for Mala#sia$ Concluding Part
- Strategic Polic# Measures on 3 3ecember 2111: 9hich detailed out trategic
"olicy meaure to be ta5en in order to achieve the goal; One o# the
meaure i ado"ting accrual accounting under 6ublic Sector *ran#ormation;
0 9e may ee that the government had created urgency in ado"ting accrual
accounting #rom modi#ied cah accounting in order to achieve the national
goal;
<6 !tep $ uild Guiding 0eams
B*he next te" i to mobilie leader 9ho are #ocued: committed: and
enthuiatic and can lead the change becaue they@
Aave a dee" undertanding o# the 9hy: 9hat: and ho9 o# the change;
Model the BrightC behaviour;
Aold both themelve and other accountable #or the reult;C
<ollo9ing the t9o re"ort on "ew Economic Model for Mala#sia: in <ebruary
2111: 6er#ormance Management and 3elivery &nit 76EM0>3&8 headed by
Senator 3atoG Sri Idri =ala have organied Strategic -e#orm Initiative 7S-I8
4aboratory to dicu and come out the blue"rint;
3uring the S-I 4aboratory: 0ccountant!)eneral 3e"artment ha identi#ied
#our enabler in order to ado"t accrual accounting: ie tandard and "olicie:
la9 and regulation: technology and "roce: and "eo"le;
>o9 and then: 0ccountant!)eneral 3e"artment need to re"ort the
"rogre in im"lementing accrual accounting to 6EM0>3&;
In order to #acilitate the im"lementation: 0ccountant!)eneral 3e"artment
ha etablihed a "ecial unit: ie 0ccrual 0ccounting Im"lementation *a5
<orce; *he main re"onible o# thi ta5 #orce i to trategie "lan on accrual
accounting im"lementation; 0mong other are to develo" accounting "olicy
and tandard: ie Malayian 6ublic Sector 0ccounting Standard 7M6S0S8
baed on International 6ublic Sector 0ccounting Standard 7I6S0S8H to
revie9 and "ro"oe amendment to the <ederal $ontitution and relevant
4
la9: i# necearyH to deign and develo" an integrated accounting ytemH
and to manage change;
Involvement #rom all ta5eholder i vital and mut be 9ell organied; *o
addre thi: <ederal )overnment o# Malayia had iued *reaury $ircular
>o; 4 Iear 2113 &ederal 'o.ernmental Accrual Accounting mplementation;
*hi circular erve a a #rame9or5 in guiding minitrie on im"lementation o#
accrual accounting; In order to enure the im"lementation being e##icient and
utainable: each minitry hall etablih a Miniterial 0ccrual 0ccounting
Im"lementation $ommittee; *hi committee i chaired by $ontrolling O##icer
and it main re"onibility i to overee the develo"ment o# the accrual
accounting im"lementation at the miniterial level; *he tructure o# the
committee i a Figure $;
Figure $ Ministerial Accrual Accounting Implementation Committee
>ote@ 0dditional member are ubjected to the reDuirement o# re"ective minitrie;
26 !tep # Get the =ision >ight
BSte" 3 involve creating a clear: in"iring: and achievable "icture o# the
#uture; *he viion mut decribe the 5ey behaviour reDuired in the #uture tate
%
o that trategie and 5ey "er#ormance metric can be created to u""ort the
viion;C
*he motto #or thi "roject i J'o (i.e /0,1; *hi vivid and im"le motto had
conveyed a clear meage to the "eo"le generally: ta5eholder "eci#ically
that <ederal )overnment had "romied and committed in im"lementing
accrual accounting 9ith e##ective on 1 =anuary 211%; *hi motto erve a a
goal and 9ill tranlate into action "lan: trategie and target;
%6 !tep + Communicate for uy:In
B3uring thi "hae: change leader mut deliver candid: concie: and heart#elt
meage about the change in order to create the trut: u""ort: and
commitment neceary to achieve the viion;C
In thi regard: 9e ued Mendelow-Scholes Power-nterest Matri! to ex"lain
the buy!in communication activitie had been done; *hi matrix ma" variou
a##ected ta5eholder according to their "o9er to in#luence organiational
trategie and interet in the organiational activitie: and identi#ie the
a""ro"riate re"one 7action8 9hich leader need to ta5e in order to
minimie reitance and hoc5 a 9ell a 9al5 9ith them to9ard goal; See
Figure #;
Figure # Mendelo1:!choles9 Po1er:Interest Matri,
L
e
v
e
l

o
f

2
p
o
w
e
r
2igh C. Keep satisfed
Intervention
IFAC, IMF, UNDP, Auditor-General -
engagement
D. Key players Partiipation!
olla"oration
Gov head of department 3 circular4
inter1ie54 /eynote4 to5n hall4
colla"oration
'
*o
5
#. $ini%al e&ort Diretion
Public (people 3 5e"site4 re,orts
Private (accountant! 3 .I#
Conferences
'. Keep infor%ed (d)ation!
o%%)niation
Gov accountin" o#cer! 3
6uestionnaire4 courses4 conferences4
5or/sho,s4 communication tools
*o5 2igh
Level of
1
interest
1
Interet mean ta5eholder have ome level o# interet in organiational activitie;
2
6o9er re#er to ta5eholder have ome degree o# "o9er to in#luence
organiational trategie;
#. Lo1 Interest ? Lo1 Po1er
In thi #irt Duadrant: ta5eholder have lo9 interet in organiational activitie
and alo lo9 "o9er in in#luencing organiational trategie: uch a the "ublic
a a 9hole;
)overnment a a 9hole hould demontrate clear goal: trategie
7roadma"8 and re"ort the "rogre in achieving thoe goal; 6ublic may
acce thi in#ormation by do9nloading variou 9ritten re"ort #rom
6EM0>3& 9ebite 7htt"@KK999;"emandu;gov;my8: uch a )overnment
*ran#ormation 6rogramme and Economic *ran#ormation 6rogramme;
2hile: 0ccountant!)eneral 3e"artment had made ued o# MI0 International
0ccountant $on#erence 2112 and 2113 a a "lat#orm to conveyed the
meage o# ado"ting accrual accounting to the general "ublic: e"ecially
"rivate ector accountant;
'. @igh Interest ? Lo1 Po1er
In thi Duadrant: ta5eholder have high interet!lo9 "o9er: uch a
government accountant: accountant aitant: accountant hel"er and
other accounting o##icer;
<irt: on =une 2113: 0ccountant!)eneral 3e"artment had conducted a
Duetionnaire to gauge a9arene and readine among thee ta5eholder
+
in order to arrange a""ro"riate "rogramme #or them; *he Duetionnaire and
the reult are a "er Appendi, " and Appendi, $ re"ectively;
0ccountant!)eneral 3e"artment i organiing a cou"le o# coure:
con#erence and 9or5ho" a 9ell to train: #amiliarie and "re"are them to
overcome challenge 9ith accrual accounting #rame9or5 ahead; *hi 9ill
eae their tre during tranitional "eriod;
(eide: governmental agencie: ta5e exam"le o# Malayian Maritime
En#orcement 0gency: had lotted in accrual accounting eion in their
#inancial meeting and coure a 9ell;
0ccountant!)eneral 3e"artment i alo uing variou communication tool
to convey the viion: uch a aemblie: dialogue: badge: bunting:
"oter: ne9letter 7&okus Akruan8: ma media: hel"de5 and dedicated
9ebite 7htt"@KK9992;anm;gov;my8; See Appendi, #;
C6 @igh Po1er ? Lo1 Interest
Sta5eholder in thi Duadrant: li5e international body uch a International
<ederation o# 0ccountant 7I<0$8: International Monetary <und 7IM<8 and
&nited >ation 3evelo"ment 6rogramme 7&>368 may have high "o9er due
to their rating or revie9ing "er#ormance or granting aitance aid: but have
lo9 level o# interet in organiational activitie;
In thi regard: on 12 <ebruary 2113 0ccountant!)eneral had igned an
agreement 9ith I<0$ to ho9 commitment in ada"ting International 6ublic
Sector 0ccounting Standard 7I6S0S8 into Malayian 6ublic Sector
0ccounting Standard;
<ederal )overnment o# Malayia had alo 9elcomed hort!term miion viit
#rom IM< on 2% <ebruary 2114 until 11 March 2114; 3uring the viit: IM< had
lent their hand in technical ex"ertie and change management in
im"lementing accrual accounting; *heir contructive comment had been
conidered duly;
2hile 0uditor!)eneral ha "o9er in giving o"inion on 9hether the #inancial
tatement have been "ro"erly dra9n u" in accordance 9ith a""roved
.
accounting tandard: o a to give a true and #air vie9 o# the #inancial
"oition and o# #inancial "er#ormance and cah #lo9; 70rticle 11'718 <ederal
$ontitution: ection /718 0udit 0ct 1/%+ LAct 2/M8 *here#ore it i vital to
involve 0uditor!)eneral along the "roce o# revie9ing and endorement o#
accounting tandard that ued to dra9n u" the #inancial tatement: ie
Malayian 6ublic Sector 0ccounting Standard 7M6S0S8
1
;

A6 @igh Po1er ? @igh Interest
In the #orth Duadrant: ta5eholder have high "o9er and high interet to #orce
change: o conultation and involvement are vital; *hee ta5eholder made
u" o# high level management li5e Miniter: Senator: $hie# Secretary to the
)overnment: Secretary )eneral to the *reaury: Secretarie!)eneral o#
Minitrie: and $hie# 0ccountant;

In thi regard: on 23 March 2113 government had iued *reaury $ircular
>o; 4 Iear 2113 &ederal 'o.ernmental Accrual Accounting mplementation
9hich give guidance to minitrie on im"lementation o# accrual accounting;
*here i alo a video cli" #eaturing intervie9 9ith *an Sri 3r Mohd Ir9an
Siregar 0bdullah: Secretary )eneral to the *reaury dicuing on thi iue;
On 1% 0"ril 211%: *an Sri 3r 0li bin Aama: $hie# Secretary to the
)overnment o# Malayia had delivered a 5eynote during Thought (eadership
Seminar on 3nderstanding and Embedding Accrual Accounting in the
Mala#sian Public Sector at 6ullman 6utrajaya; *he eminar had been
attended by chie# o# de"artment: enior government leader: deciion and
"olicy ma5er: together 9ith ubject matter ex"ert and buine "artner;
1
Malayian 6ublic Sector 0ccounting Standard 7M6S0S8 9hich ada"ted #rom International
6ublic Sector 0ccounting Standard 7I6S0S8: are endored by )overnment 0ccounting
Standard 0dviory $ommittee 7)0S0$8 and a""roved by the 0ccrual 0ccounting Steering
$ommittee 700S$8; )0S0$ i a committee etablihed under the 0ccountant )eneral
3e"artment to develo" M6S0S; )0S0$ chaired by 3e"uty 0ccountant!)eneral 7O"eration8 and
it member are #rom 0uditor!)eneral 3e"artment: minitrie: tate treaurer: tatutory bodie:
"ro#eional accounting bodie: and univeritie;
/
(eide: there 9ere to9n hall eion 9ith 0ccountant!)eneral and
Minitrie $hie# 0ccountant to dicu the roadma" o# im"lementing accrual
accounting;
0ccountant!)eneral 3e"artment alo ee5 collaboration 9ith other
governmental agencie: li5e 0ttorney!)eneral $hamber: Inland -evenue
(oard: -oyal $utom: 6ublic Service 3e"artment: 3e"artment o# ,aluation
and 6ro"erty Service a 9ell a other minitrie;
B6 !tep / 5na(le Action
BIn thi te": leader mut but the barrier that hinder "eo"le 9ho are trying
to ma5e the viion 9or5 by develo"ing and aligning ne9 "rogramme and
deign: and by identi#ying "rocee that are ine##ective;C
0 9e mentioned in Step / 4uild 'uiding Teams: during the S-I 4aboratory:
0ccountant!)eneral 3e"artment ha identi#ied #our enabler in order to
ado"t accrual accounting: ie tandard and "olicie: la9 and regulation:
technology and "roce: and "eo"le: a de"icted in Figure +;
Figure + 5na(lers in Accrual Accounting Implementation
11
a6 !tandards and Policies
In order to benchmar5 9ith international tandard: <ederal )overnment
o# Malayia had decided to ada"t International 6ublic Sector 0ccounting
Standard 7I6S0S8 in the "re"aration o# accrual!baed general "ur"oe
#inancial tatement; *hrough thee tandard: the Duality: conitency
and tran"arency o# "ublic ector #inancial re"orting 9ill be enhanced;
*hee tandard had been develo"ed by International 6ublic Sector
0ccounting Standard (oard 7I6S0S(8: a body under International
<ederation o# 0ccountant 7I<0$8; In thi regard: #ederal government had
igned a memorandum o# undertanding 9ith I<0$ on 12 <ebruary 2113;
*o date 21 =une 2114: 0ccrual 0ccounting Steering $ommittee had
endored 1. Malayian 6ublic Sector 0ccounting Standard 7M6S0S8
9hich ada"ted #rom I6S0S; *o increae acce"tance and
com"rehenibility: thee tandard had been tranlated into national
language: ie Malay language; See Appendi, + #or detail;
11
!ndorse .7%#%s
!sta"lish ,olicies
"ase on .7%#%s
Re1ie5 and
,ro,ose
amendment to
8ederal
Constitution4
8inancial
7rocedure #ct
19' :Re1ised
19'2; <Act $%= and
other acts
7erform ga,
analysis
(esign and
de1elo, accrual
accounting
system
.anage change
(e1elo, human
ca,ital
In1ol1e >nance
and accounting
o?cers in
im,lementation
0ccountant!)eneral 3e"artment had alo iued Accrual Accounting
Policies: Accrual Accounting mplementation 'uidance: &ederal
'o.ernment Accrual Accounting Manual: and Transitional Policies on
Accrual Accounting mplementation;
(6 La1s and >egulations
$ertain o# the la9 and regulation need to be amended to align 9ith
accrual accounting re"orting #rame9or5; *he identi#ied la9 9ere
<inancial 6rocedure 0ct 1/%+ 7-evied 1/+28 LAct 2,M: &nclaimed Money
0ct 1/'% 7-evied 1/./8 LAct 560M: Aouing 4oan <und 0ct 1/+1 LAct
7/M: and >ational *rut <und 0ct 1/.. L0ct 33/M;
c6 Process and technology
)a" analyi had been done on the exiting ytem and buine
"rocee a 9ell; *he ne9 ytem: ie ,'o.ernment &inancial and
Management Accounting S#stem 71)<M0S8 9ill incor"orate 9ith ne9
needH ue centralied "roceing 7a com"are to exiting ditributed
"roceing8H u"grade to S06 E$$' #rom verion 4;+H and u""ort
buine intelligence;
d6 People
One o# the im"ortant trategie in utaining the ucce o# the
tran#ormation i to trengthen the miniterial exiting account diviion in
a"ect o# "eo"le; <ederal government had a""roved the initiative in
Se"tember 2113;
(eide that: on going 0ccountant!)eneral 3e"artment i arranging
variou "rogramme under change management and human ca"ital
develo"ment;
"*6 !tep < Create !hort:0erm Wins
12
B3uring thi te": leader mut reenergie the organiation ene o#
urgency by achieving viible: timely and meaning#ul "er#ormance
im"rovement to demontrate that "rogre i occurring;C
In order to enure the "roject i "rogreing on trac5: it i vital to have an
e##icient and e##ective "roject management; <or thi "ur"oe: a detailed
timeline that laid out each miletone activity i needed to hel" in "lanning:
im"lementing and monitoring the activity; *he 9hole "roject had been bro5en
u" into multi"le hort miletone: o that 9e can declare multi"le hort!term
9in and 5ee" on the momentum; *ogether 9ith continual #lo9 o#
communication: ta5eholder 9ill ee the change i not only "rogreing but
Jta5ing root a 9ell; See Figure /;
13
Figure / 0imeline for Accrual Accounting Implementation
0 9e can notice that the 0ccountant!)eneral 3e"artment had identi#ied
miletone #or the 9hole "roject ince it outet: ie bac5 to year 2111 until
year 211';
In Nuarter 2 in 2111: the core team 70ccrual 0ccounting Im"lementation *a5
<orce8 and )0S0$ 9ere et u": and conultant 9a a""ointed to tudy the
ne9 buine reDuirement; <ollo9ing that: in Nuarter 3: the a9arene o#
thi change 9a created; 0#ter that: ome im"ortant event too5 "lace in the
Nuarter 4; *he accrual accounting "olicie 9ere a""roved; 0long 9ith thi:
ome "ertinent la9 9ere revie9ed and "ro"oed #or amendment to
14
accommodate accrual accounting regime; *hi i a continuing "roce 9hich
i antici"ated to be com"leted by Nuarter 4 in 2114;
In "arallel 9ith thee: ne9 accounting tandard o# M6S0S 9ere alo been
develo"ed baed on I6S0S;
In the econd year: #our major event that tarted u" 9ere core team training:
etting u" o# miniterial accounting diviion 7S038: data collection and
ytem integrator 7SI8 a""ointment; *hee major activitie 9ere continuing
"rogre into year 2113;
In 2113: major activitie that too5 "lace 9ere ytem deign: develo"ment
and teting: 9here the deign "hae antici"ated to be com"leted by Nuarter 3
in 2113: develo"ment and teting o# ytem antici"ated to be com"leted by
Nuarter 3 in 2114; 0long thi: the chie# #inancial o##icer 7$<O8 9ere given
training about their ne9 role in the accrual accounting regime; *hi training
too5 "lace in Nuarter 1 in 2113 until Nuarter 1 in 2114;
*he "roce o# tran#er o# technology 7*O*8 and end uer training 7E&*8 9ill
ta5e "lace in end o# Nuarter 2 in 2114 until end o# 2114;
(y the end o# 2114: accrual accounting ytem 9ill go live;
2hile in 211%: data migration and outcome baed budgeting 7O((8
integration 9ill ta5e "lace and ho"e#ully by the end o# 211% the management
accounting module 9ill go live;
""6 !tep 2 Aon9t Let ;p
B*hi te" i critical to enure that the guilding team are "eriting:
monitoring and meauring "rogre: and not declaring victory "rematurely;C
0 9e mentioned in Step 7 Communicate for 4u#-n: in order to utain
u""ort #rom leader 7high "o9er F high interet8: it i very im"ortant to
involve them and communicate the "rogre o# the "roject; *hi 9ill alo
enure the change i reaching all level in the organiation and ee5
#eedbac5 on it e##ectivene; &ltimately: the momentum i 5ee"ing on;
1%
In thi regard: 0ccountant!)eneral had arranged an array o# to9n hall
meeting 9ith miniterial accountant to dicu about challenge: training
and human ca"ital in im"lementing accrual accounting;
<or the ame reaon: accounting o##iceK miniterial accounting diviion had
organied a erie o# dialogue 9ith uer 7high interet F lo9 "o9er8;
"$6 !tep % Ma.e It !tic.
BIn the #inal te": leader mut recognie: re9ard: and model the ne9
behaviour in order to embed it in the #abric o# the organiation and ma5e the
change Bthe 9ay 9e do buine here;CC
0 9e mentioned in Step / 4uild 'uiding Teams and Step 7 Communicate for
4u#-n: <ederal )overnment o# Malayia had iued *reaury $ircular >o; 4
Iear 2113 &ederal 'o.ernmental Accrual Accounting mplementation; One o#
the element in the circular i etting im"lementation o# accrual accounting a
one o# miniterial 5ey "er#ormance indicator 7K6I8; <rom thi "oint: 9e can
noticed that the government i eriou and committed in im"lementing
accrual accountingH and uing re9ard "o9er to in#luence and re#ree?e the
intended behaviour at the ne9 level;
3ue to limitation o# reource 7time: allocation: trainer: and #acilitie8:
0ccountant!)eneral 3e"artment had ado"ted uer!train!uer a""roach in
training end uer to ue the ne9 ytem; &nder thi a""roach: #irt
0ccountant!)eneral 3e"artment 9ill train accounting o##iceK miniterial
account diviion 7train the trainer: ***8; *hen trainer 9ill train agencie
7a ex"ert end uer: EE&8 and latly EE& 9ill train end uer 7E&8
7re"onible centre8;
0n array o# training and communication had alo been organied to #amiliar
and 5ee" the ta5eholder u"dated 9ith accrual accounting regime;
(eide motto J'o (i.e /0,1: accrual accounting had been et a the theme
#or 0ccountant!)eneral 3e"artment Innovation and Integrity 3ay 2113:
namely Jnno.ation and ntegrit# 8ealise Accrual Accounting 7Jno.asi dan
1'
ntegriti Meralisasi Perakaunan Akruan8; *hi 9ill rein#orce im"act o# the
motto and et the tone to unite leader and ubject to 9al5 together hand!in!
hand in achieving the goal;
Other communication tool include aemblie: dialogue: badge: bunting:
"oter: ne9letter 7&okus Akruan8: ma media: hel"de5 and dedicated
9ebite 7htt"@KK9992;anm;gov;my8; See Appendi, #;
B1t =anuary 211% 9ill not a #ull to" o# accrual accounting im"lementation:
but a tarting "oint o# "aradigm change 9hich involve change in thin5ing:
9or5ing culture: advancement in 5ill and com"etence; It alo mean the
tart o# the ne9 9ay o# doing buine in the government; O *he challenge
#or u i really 9hat 9e do on day!2PC
3atu5 2an Selamah 2an Sulaiman: 0ccountant!)eneral
*o9n Aall Seion: 24 <ebruari 2114
"#6 Conclusion
In concluion: the t9o 5ey to ucce in managing change are
communication and involvement; 4eader hall al9ay communicate the
goal: trategie: develo"ment and achievement to ta5eholder; (eide
leader hall al9ay involve ta5eholder and lend a hand along the change
"roce; *hi 9ill create ene o# o9nerhi" among ta5eholder and
coneDuently devote their u""ort and commitment to achieve the goal hand!
in!hand ultimately;
1+
Ac.no1ledgment
1; 0ccountant!)eneral 3e"artment
2; Malayian Maritime En#orcement 0gency
>eferences
1; O: "ew Economic Model for Mala#sia$ Part , - Strategic Polic# -irections:
>ational Economic 0dviory $ouncil: 31 March 2111: 6utrajaya;
2; O: "ew Economic Model for Mala#sia$ Concluding Part - Strategic Polic#
Measures: >ational Economic 0dviory $ouncil: 3 3ecember 2111:
6utrajaya;
3; $ohen: 3an S;: The %earth of Change &ield 'uide$ Tools and Tactics for
(eading Change in )our *rgani+ation: Aarvard (uine School 6re: 211%:
(oton;
4; O: Ad.anced 4usiness Management and ntegrati.e Case Stud#: Malayian
Intitute o# $erti#ied 6ublic 0ccountant: 2113: Kuala 4um"ur;
%; O: Treasur# Circular "o9 7 )ear /0,5 &ederal 'o.ernmental Accrual
Accounting mplementation: )overnment o# Malayia: 23 March 2113:
6utrajaya;
'; O: &ederal Constitution: )overnment o# Malayia;
+; O: Audit Act ,:16 LAct 2/M: )overnment o# Malayia;
.; O: &okus Akruan su "o9 5 ;<anuari = Mac /0,7>: 0ccountant!)eneral
3e"artment: 2114: 6utrajaya;
/; O: -edicated website for Accrual Accounting mplementation: 0ccountant!
)eneral 3e"artment: htt"@KK9992;anm;gov;my
2/