Role of Performance Management in

Achieving Strategic Objectives

Dr Sarinder Kumari
Director
NKEA Tourism
Woody Ang
Associate Director
NKEA Tourism

Performance Management is an essential part of the 8-Step

Methodology

8 STEPS OF
TRANSFORMATION

A structured framework was used to develop and manage the KPIs for
all Ministries

Nations Transformation
Plan (ETP & GTP
Roadmap), Ministry
vision and mission

5
Actions &
Improvements

4
PM-Minister
reviews

Execute and
manage for
performance

Measure
delivery

Establish
KPIs

2
Execute
implementation
plans

3
Performance
monitoring

A 3-way process to establish KPIs for Ministers

Facilitates framework
& Challenges KPIs

Approves
KPIs
Prime
Minister

PEMANDU

Establish Ministers
scorecard
Ministry &
Civil Service

Minister

Proposes KPIs based on

timelines & implementation
plans
3

The Ministers scorecard comprises all key components under the

Ministrys purview
Comparison with last
years target

Minister of Human Resources

KPI

KPI of Qualitative Criteria

Assessment

Weightage

Weightage
10%

NKEA Overall
NKEA
1. Overall GNI (RM bil)
2. Individual NKEA GNI (RM bil)
3. Overall Jobs ('000)
4. Overall Private Investment (RM bil)

Target 2012

2014

10%
Overall
Indicators (ETP)
884
26
14,933
127

Target 2013

Initiatives

2015
960
36
TBD
148

SAMPLE

Initiative description

From MOF Economic Report

Weightage System
NKEA & NKRA
50%
NKEA
NKEA Initiative
1. Building globally-competitive outsourcers (BS EPP#2)
1.1 Number of new jobs created
NKRA
NKRA
1. Low Income Households (NKRA LIH)
1.1 Number of new participants participate
in 1AZAM programme

KPIs (ETP)
8,000

9,100

Initiative KPIs (GTP)

New KPI

SRI & MKRA

30%
SRI
SRI Initiative KPIs (ETP)
1. Strengthening HRM in SME (SRI Human Capital Development)
1.1 Number of new employers registered
2,000
with NHRC portal

5,000

5,000

Increase promotional activities through

advertisement, seminars, radio insetion, etc.

KPIs for Ministrys Own Programmes

MKRA
1. Developing skilled and knowledge workers in safety and health
1.1 Reduction of occupational accident rate
at workplace per 1,000 workers

3.46

3.30

Smart partnership and engagement with

other related agencies (govt., private, NGO,
universities)
Effective enforcement
Compliance support
OSH awareness program

The correct Governance Structure is essential towards successful

implementation of the initiatives
Steering Committee:
Meeting once a month
Initiative owners to provide
progress updates
Make decisions and provides
guidance / direction to the
team
Resolve conflicts
Oversee all other matters
related to workstream

Working level:
Meeting more frequently
(i.e. bi-weekly)
Liaise directly with
PEMANDU

Steering Committee
Chair: Lead Minister / Lead Secretary General
Members:
Public Sector
Deputy Secretary General Ministry xx
Director General of Tourism Board
Director General of Agency xx

Private Sector
President of Association xx
CEO of xx

Secretariat:
PEMANDU

Entry Point
Project 1 Duty
Free Shopping

Entry Point
Project 3
Premium Outlets

Project Mgr:
Head of
Shopping
Secretariat
Malaysia

Project Mgr:
Deputy Sec
Gen, MOTAC

Project Mgr:
Deputy Sec
Gen, NRE

Project Mgr:
Deputy Sec
Gen, MOTAC

Other key
implementors:
Ministry of
Domestic
Trade
Shopping
Secretariat

Other key
implementors:
Wildlife Dept
Forestry Dept
Site Managers
Tourism
Malaysia

Other key
implementors:
Major Events
Unit
Tourism
Malaysia
DBKL
PUSPAL

Other key
implementors:
xx

Entry Point
Project 4 MMBH

Entry Point
Project 7
Malaysia Major
Events

All KPIs are tracked on a weekly basis on a dashboard

Strict deadline for weekly reports:

Friday, 5pm, every week
Non submissions are also reported

League Table Format

Simple traffic light
system as qualitative
indicators
Encourages
competition between
Sectors / Ministries

Performance assessment conducted during the Mid-Year and Year-end

PM-Minister Review Sessions

Minister

Prime
Minister

PEMANDU
CEO

Present to PM on
Scorecard performance to
date
Provide deep dive on
under-performing KPIs

Assess and evaluate

performance
Suggest new focus areas
Facilitates the process

Changes to KPIs can be made during the Mid-Year Review

Target revision upwards

Upward revisions can be done
anytime
Achievement >80% considered for
target revision upwards

Target revision downwards

All changes subject to
the final approval by the
Prime Minister

Justifications must be valid

Mitigation plans need to be put
in place

Validation also done by International Panel Review (IPR) to leverage

external expertise

Sir Michael Barber

Chief Education Adviser
Pearson PLC

The learning from the process

Malaysia has put in place may turn out to
be as important as the impressive
results achieved so far, because it will
make possible further progress in the
future

Michael J Hershman
President
The Fairfax Group

Clearer accountability on effectiveness

Opportunities for continuous
improvements

Both the GTP and ETP exhibit a

steadfast commitment to bring about
meaningful change to government
efficiency and effectiveness

Each Ministers performance assessed by Prime Minister

based on KPI achievements

2014

10

Cabinet Away Day held every year, after the PM-Minister Year End
Review Session

OBJECTIVES:

Reflect on what went well

for the year

Identify areas for

improvement

11

Overall timelines for developing and managing Ministers KPIs

4
PM-Minister Reviews

(Mid Year)

(Year-End)

KPI and
target
setting

Oct-Dec

Jan

Jun

Dec

Cabinet AwayDay

Jan

Mar

3
Implementation
Plan

Weekly, Monthly and Quarterly

Performance Monitoring

KPI and target

Setting

PMs feedback
to his Minister

Feedback loop

5
Actions &
Improvements

12

All KPI achievements are published in the Annual Report

Reports are available in the public domain

Increases Government accountability of initiatives

13

Setting KPIs
Short Guide & Lessons Learnt

KPIs need to be aligned with existing and new policies and plans
GTP / ETP

Malaysia Plans

Other Strategic Plans

Key
Performance
Indicators

Ministry-led initiatives

15

KPIs set need to be outcome based, instead of activity based

Activity based KPIs

Outcome based KPIs

No. of meetings attended

No. of outstanding action items

resolved

No. of visits

No. of successful agreements /

MoU signed

No. of student trainings

conducted

Percentage of students achieving

grade 80% and above

No. of road improvement

projects completed

Percentage reduction of road

fatalities

16

KPIs should also aim to have a measurable impact to the people

Examples
Provide additional income to
rural community
Provide the people with supply of
quality drinking water
Providing more education loans
Increase in employment and job
opportunities for Malaysians
Reduce no of people affected by
flood
Reduce accident cases at
Blackspots

TOUCH POINTS
17

Important pointers in setting KPIs

KPI
Description

Targets

KPI must be clear, specific and measurable:

E.g. Number of clinical trials conducted

Stretched and ambitious to encourage more effort

Set according to an established roadmap with a clear end
objective (i.e. year on year target)

Verification of KPI achievement should be supported by

documentation
E.g. (1): Tourist arrivals (mil) & Value of foreign exchange
earnings (RM bil) supported by Statistics from Immigration
Malaysia & Research Division - Tourism Malaysia

Achievements crafted to be reported frequently (i.e. weekly,

monthly, quarterly, yearly).
Ideal measure only incremental achievements for each year

Supporting
Documents

Measurement
of
achievements

18

In the event there are too many KPIs or focus areas, prioritization is
important to remain focused to achieve the ultimate goal

Too many KPIs

Priority KPIs

Prioritize

Questions to ask:
1. What level of impact will this KPI have on the people?
2. How critical is it to achieve this KPI this year?
3. What interdependencies exists in this regard and why? How can these
interdependencies be worked to ensure these KPIs are achieved?

19

Thank You

20