The document discusses elements of innovation and approaches to transformation. It outlines four elements of innovation: 1) having a customer need, 2) commercial value, 3) involvement of people in the workplace, and 4) leading to new inventions, applications, or ways of working. It contrasts two approaches to transformation - a "yin-yang" approach focusing first on developing people's innovative character, and a "yang-yin" approach beginning with innovative actions and ways of working to achieve fast results. The document argues the latter approach is more effective for driving innovation and cites examples from Malaysia's Economic Transformation Program to illustrate innovative ways of prioritizing, problem-solving, instituting discipline, and delivering results to achieve big changes quickly.

1. CONTOH
By Dato Sri Idris Jala
CEO of PEMANDU /
Minister in Prime Minister’s Department
3rd November 2010
KLIF Innovation Forum 2010
Keynote Address

2. 1
Innovation has 4 elements
1. Must have customer
/ people needs
2. Must have
commercial
value
3. Must be done
by people in
the workplace
4. Leads to invention,
novel applications
and/or new ways of
working

3. 2
Innovation and
customer needs
1. Target customer segment – real or
perceived
2. Unique customer value proposition (CVP)
3. Trade offs
4. Reasons to believe CVP
5. Price
1

4. 3
Innovation must have
commercial value
1.Must be translated into commercial
value (i.e customers are prepared to
pay for the CVP)
2.Pricing depends on the novelty and
uniqueness of the innovation
3.Intellectual property rights are used
to retain value for the organization.
2

5. 4
Innovation must
involve people in the
workplace
• Universities, research institutes, labs,
incubators
• Private organizations
• NGOs
• Communities
• Examples – Apple, Samsung, Toyota,
Google continue to innovate
3

6. 5
The outcomes of
innovation is in 3 forms….
1. Inventions (eg: airplanes – Wright brothers, Telephone –
Alexander Graham Bell)
2. Applications based on previous inventions (either new or
improvements, eg: turbprop aircraft, jets, mobile phone, Ipod,
Ipads, etc)
3. Novel ways of working (eg: focused activities, labs, Open days,
aligned and leveraged management techniques, virtual office,
new marketing and sales techniques, new policies, improved
processes, etc)
Most modern day innovations are a combination of (2) and (3)
4

7. 6
The Cantas story….
4
 Increase average productivity of
harvesters
 Reduce dependence on foreign
labor in Malaysia
 To reduce production cost so that
it can be affordable to the small
holders
Economic Transformation Programme
NKEA : Oil Palm

8. 7
Transformation involves
innovation on novel
ways of working
(i.e doing things)....
the 3rd outcome of innovation

9. 8
Generally, there are two
school of thoughts on
transformation…
Being
(“Character”)
Doing
(“Action”)
Being
(“Character”)
Doing
(“Action”)
1 2
Yin
Yang
Yin
Yang

10. 9
2 school of thoughts…
Yin-Yang approach
1. Strategic Intent – Run an
innovation programme and people
will innovate to achieve the big
results fast
2. Design an innovation programme
3. Set up an institute of innovation
4. Conduct innovation courses /
seminar / conferences and put all
employees through a 10 year
Innovation Programme
Very little / no innovation with
longer time to achieve results
Yang-Yin approach
1. Strategic Intent – change the way you
do things in order to deliver Big
Results Fast
2. Innovative ways of prioritization /
focus (KRAs)
3. Innovative ways of problem-solving
(lab)
4. Innovative ways of instituting discipline
(PSM, DTF)
5. Innovative ways of delivering results
(KPI, performance assessment /
ranking)
Big Results Fast

11. 10
For innovation to happen,
we must begin with “Action”
Being
(“Character”)
Doing
(“Action”)
1

12. 11
What does it mean by
“Action” ?
• Innovative ways of
prioritization / focus (KRAs)
• Innovative ways of problem-
solving (eg: lab)
• Innovative ways of instituting
discipline (PSM, DTF)
• Innovative ways of delivering
results (KPI, performance
assessment / ranking)

13. 12
Innovative ways of prioritization & focus
1. Determine clear outcome, example:
• P&L improvement (say 20% increase) ?
• Crime reduction (20% reduction) ?
• Per capita income increment of 100% ?
• Productivity improvement (by 40%) ?
2. Identify Key Results Areas (KRAs) which directly impact #1
above, if not they are NOT priorities (i.e stop doing)
3. Focus resources (people, money, material, time / commitment)
on the KRA. Example : NKRAs (GTP) / NKEAs (ETP)

14. 13
Lab to accelerate delivery / outputs - FAST
Lab Approach
• Manhours : 10 hours x 6 weeks x 5 days = 300 hours
Steering Committee Meeting
Manhours : 2 hours x 4 times year x 3 years = 24 hours
Task Force / Technical Committee Meeting
Manhours : 3 hours x 12 times year x 3 years = 108 hours
3
years
(132 hours)
6 - 8
weeks
(300 hours)
Task Force Approach1
2

15. 14
GTP & ETP are innovative to achieve Big Result Fast
Implement
Labs
Open Day
1Msia
GTP Roadmap
Radical / Innovative
Roadmap /
Strategy
Feedback /
Syndication
Action Plan
Implement
Conventional
1.5 yrs
1.5 yrs
2 mth
1 mth

16. 15
We must also inject innovative ways of
delivering results..
• Establish olympic targets / KPIs (will cause
staff to unleash talent)
• Publish the KPIs / targets (will cause the
staff to have no choice but to deliver)
• Publish performance ranking (eg: Balai
Polis ranking, school ranking, etc)
• Reward performance (eg: High Performing
Schools (HPS)) and consequence
management for non-performance

17. 16
Innovative ways of problem solving :
Intercity Transport Terminals (ITT)
Puduraya
South
North
East
Coast
South
Current New / Proposed
1,000 buses into Puduraya ~500 buses into Puduraya
40,000 cars into the city
to pick-up the bus
passengers
Puduraya
Gombak
South
North
East
Coast
Bandar
Tasik
Selatan
South

18. 17
Innovation example :
Bus Expressway Transit (BET)
Current route
▪ Over 30 stops
▪ Passing through congested
Federal Highway
KL
Sentral
Sri Muda
Shah Alam
Federal Highway
Bus Expressway Transit
▪ Limited to 4 stops
▪ Using underutilised KESAS
highway with toll priority
KESAS Highway
Current
BET
~75~75
~65
~29~35~33
KESAS
Sri Muda – KL
Sentral
NPE
Subang mewah -
Sentral
Grand Saga
Kota Dsra - Sentral
Penchala
Sg Long -
Sentral
~ 75
Potential reduction in journey times
mins
~ 29
10yrs
Stalemate
10days
Solved in

19. 18
Innovative ways of instituting “Discipline of
Action” & “Leverage”
Discipline of Action + Leverage
• To design monitoring mechanism /
framework to ensure things get
done.
• To set up frequent meetings to
ensure progress and address
problems
• Maximizing existing
resources (people,
materials, etc) to
deliver the results

20. 19
Example of innovation in institutionalizing
“Discipline of Action”
PSM Meetings1
•NKRA front-line
•~500,000 at federal
and state level
•(1.2 million civil
servants)
•Ministry
•DMO +
Ministerial
• teams
•PEMANDU
•PM /
• Cabinet
DTF Meetings3
Ministerial
Operational
Meetings
2

21. 20
The outcome of GTP….
innovating to get
Big Result Fast

22. 16%
drop in
Index
Crime
Jan-Sep
2009
Jan-Sep
2010
157,537
132,355
-16.0%
-25,182

23. 38%
drop in
Street
Crime
Jan-Sep
2009
Jan-Sep
2010
29,596
18,299
-38.1%
-11,297

24. 2.4 million
increase in
LRT ridership

25. 54,569children
are benefiting from
1,358 pre school
classes

26. 9,816 schools
(primary & secondary)
have been
ranked

27. 49% reduction of
hardcore poor
Jan 2010 Sept 2010
44,463
22,559

28. 3716
government
contracts
have been
published on line
myprocurement.treasury.gov.my

29. 648
people were
arrested
for corruption

30. 208
corruption
offenders
published
in MACC
website
www.sprm.gov.my

31. Corruption Index
(Malaysia)
4.5
5.2
3.6
4.54.4
6.3
4.6 4.6
TI IMD PERC WEF
Corruption Perception Index / Scores
from 4 Surveys
2009 2010
TI = Transparency International
IMD = IMD World Competitiveness Index
PERC = Political & Economic Risk Consultancy
WEF = World Economic Forum

32. Recap of four elements of
innovation
1. Must have customer
/ people needs
2. Must have
commercial
value
3. Must be done
by people in
the workplace
4. Leads to invention, novel
applications and/or new
ways of working

33. 32
Thank You

34. 33
Most transformation programmes / lab will fail if you do not
apply the “6 Principles of Transformation”
The Game of
Impossible
Anchoring on
KRA
Discipline
of Action
Situational
Leadership
Winning
Coalitions
Divine
Interventions
1
2
3
4
5
6
•Olympic targets
•Conquer the fear of failure
•Anchor all activities to the key result areas (KRAs)
•Plan and track results (daily, monthly, quarterly)
•Reward and celebrate success
•Directive in the beginning of the journey
•Empower in the later part
•Collaborate with key partners and stakeholders
•A lot of things are outside of our control (>60%)