Setting up a Delivery Unit
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  1. Setting up a Delivery Unit Presented by Ms. Tengku Azian Shahriman Executive Vice President Note : Private & Confidential. This material can be only shared with the CLTF BFR Workshop participants and should not be circulated without permission. Should you have any further enquiry regarding this material, kindly contact Engku Fazuin (Tel : +60126956381, Email : engkufazuin.azahan@pemandu.org)
  2. Part 2: Implementation Planning / Thinking (10%) • Strategies, Key Activities & Responsibilities • Organizing • Communication & Engagement Implementation / Doing (90%) • Monitoring • Recursive Problem Solving • Assessment / Validation • Reporting Planning / Thinking (10%) Implementation / Doing (90%)
  3. Setting up a Delivery Unit Source : Institute for Government, Tracking Delivery, 2017 Units don’t always survive transitions in power 1 Weak or ineffective units don’t just represent a waste of resources, it cultivates false sense of security that projects are being properly monitored 2 Delivery units are to fulfil their potential as a means of achieving results in today’s challenging operating environment 3 Common traits of an effective Delivery Unit Strong Leadership Political Support Robust monitoring & tracking framework Routine problem solving resulting in solid implementation Detailed & Implementable Development plans Clear goals & targets Adequate funding from Treasury or DPs to carry out initiatives
  4. Clear identification of key prioritised areas and Targets under development plans are crucial to ascertain effective delivery Source : Institute for Government, Tracking Delivery, 2017, PEMANDU Pakistan U.S.A Malaysia U.K % of Vaccinator attendance rate under GPS Childhood immunization programme Example of prioritised areas 25 90 2014 2015 3.5x Example of targets of prioritised areas Infant mortality rate per 1,000 births in Maryland, at high-risk areas & groups 8.0 6.5 2008 2014 Km of roads built per annum in rural areas with no road access since formation of Malaysia in 1963 10 1,057 2008 2010 Hospital waiting times, the number of people waiting more than a year for surgical procedures 40,000 10,000 2001 2003 -19% -75% ~100x
  5. Capacity of Civil service to deliver goals and targets Source : Institute of Government delivery, 2017, PEMANDU, PDB, Tanfeedh Embedding delivery unit staff members within the wider delivery system 1 Building a leadership coalition 2 Psyche of civil servants towards Delivery Units Strong Political backing? Routine problem solving ? Intense Cooperation Reduced sense of urgency to response Lack of capacity among civil servants Credibility at stake Having delivery staff members embedded in relevant line ministries/departments genuinely support ministries’ /departments’ monitoring of progress of programmes and support capacity building and address the challenges on the ground broadening ownership to a wider group of civil servants and political leaders over time is critical to preventing these units “from limping on, tailing off or being discarded” Ideal direction Global Practice Data-tracking systems, delivery plans and performance metrics3 Transparent performance tracking and database system shared across line ministries/ departments and agencies are crucial to ensure meaningful problem solving and implementation. High Low HighLow
  6. Ownership of prioritised targets and goals across key government ministries/ departments Source : Institute of Government delivery, 2017 National actors Line Ministries Local government Characteristics & Functions • Taskforce to ensure that its top priorities have the necessary level of ministerial ownership • Usually created as part of a government-wide re- organisation of performance management systems which sometimes replicated central delivery units in their own departments • Conduct weekly problem solving meetings, identify cross ministerial issues to be resolved at central level • Mayors and Chief Executives transform the performance of locally administered public services • Often adopt & localize global best practices (at lowest cost) at ground level to smoothen implementation processes to achieve National targets • Issues requiring ministerial interventions are often raised during weekly meetings with Line ministries reps Global Best Practices • PEMANDU, Malaysia • Implementation Unit (Cabinet Office), UK • Tanfeedh Delivery Unit, Oman • Unidad de Cumplimiento de Gobierno, Peru • Delivery Units, Albania • MDUs, Tanzania • Line Ministries in UK (Ministry of Health, defense, etc.) • PADU & DMOs, Malaysia • London Borough of Haringey, UK • Norfolk, UK • Buenos Aires • Governor’s office, Maryland, USA • Central delivery units where a small team gathered and analysed data, mobilised resources in response to identified problems (often in surgical approach) and relentlessly scrutinised performance until outcomes improved • Monitor implementation of prioritised areas weekly, conduct strategic planning and address delivery capacity gaps, escalating issues to the highest level
  7. The Malaysian model : Delivery challenges are resolved through problem-solving avenue involving the PM at the highest level Source : PEMANDU 1 2 3 Steering Committee (SC) Chair: Lead Minister Prime Minister Secretariat: • DMO (supported by PEMANDU) Members: • Representative from different ministries Association: • Agencies and other institutions • Private sector Delivery Management Office (DMO) Members: • Members from lead ministry • Members from other related institutions 4 Owners Entry Point Project (EPP) Advisor: • PEMANDU Unresolved issues are escalated to Unresolved issues are escalated to DMO-owner project meeting Occasionally involves PEMANDU PEMANDU-DMO meeting SC meeting Putrajaya Inquisition Unresolved issues are escalated to once every 6 months monthly weekly weekly or frequent Example : PADU in Ministry of Education
  8. April 2009 : Najib Razak was announced as the new Prime Minister Announced that he will launch Malaysia’s Transformation effort September 2009 : Prime Minister announced the set-up of Performance Management & Delivery Unit (PEMANDU)  CEO : Idris Jala Flashback
  9. We considered various options. TWO guiding principles: Flexibility Confidentiality ▪ Have operational flexibility (free from Government existing processes and procedures)  Able to recruit the best and brightest at competitive market rate in private sector  Fully focus on delivering Government Transformation Programme (GTP) ▪ Have the ability to maintain confidentiality of sensitive info on staff salaries 1 2 What would be the appropriate structure for this unit?
  10. In the end, we landed on this structure: Inside Government Prime Minister’s Department A Government agency / unit within the Prime Minister’s Department  Operationalise the implementation of GTP (and later ETP) PEMANDU (Govt Agency / Unit) Outside Government A Special Purpose Vehicle (SPV) Provide services financial, recruitment and procurement services to PEMANDU(Govt Agency) + PEMANDU Corporation (SPV)
  11. Best of both worlds… Inside Government Prime Minister’s Department PEMANDU (Govt Agency / Unit) Outside Government PEMANDU Corporation (SPV) ▪ Hybrid energetic team (with private sector mindset and speed) ▪ Fair degree of autonomy ▪ Confidentiality maintained ▪ Board chaired by PM and board members comprise of Chief Secretary, including 4 members from private sectors ▪ High powered sponsorship ▪ Embedded within the Government CEO Idris Jala Minister Idris Jala +
  12. Agenda • Background • Organisation set-up • Attracting high-caliber and talented people • Availability & effectiveness of monitoring framework • Availability of funds to implement initiatives & programmes • Q&A
  13. PEMANDU (a Government Unit in PM’s Department) Mandate & Responsibilities ▪ Ensure delivery of GTP and ETP ▪ Conduct independent assessment of performance and progress, give recommendations and highlight areas of attention to Prime Minister and Cabinet Ministers. ▪ Act as a catalyst for change by providing in-house consultancy and advisory to the Government on each transformation program. ▪ Provide active support to the Prime Minister and Cabinet Ministers on all Key Result Areas ▪ Work in partnership with the ministries and civil service to achieve BIG FAST RESULTS 1 2 3 4 5
  14. PEMANDU Corporation (SPV) Mandate & Responsibilities ▪ Recruit top-calibre talents from public and private sector and then second to PEMANDU in PM’s Department. Remuneration package & performance assessment are based on competitive market practices in order to attract top-calibre talents in Malaysia. ▪ Procure the services of external consultancy and professional support only in the beginning until our capacity was built. This is crucial in order for PEMANDU to tap into the best practices and acquire specialist skills and knowledge. ▪ Procure the general services and supplies to ensure smooth running of PEMANDU. This includes advanced IT devices i.e. Smart phone handsets, tablets, servers, etc. ▪ All other tasks to enable PEMANDU carry out its mandate and responsibilities. 1 2 3 4
  15. Agenda • Background • Organisation set-up • Attracting high-caliber and talented people • Availability & effectiveness of monitoring framework • Availability of funds to implement initiatives & programmes • Q&A
  16. PEMANDU Minister & CEO Dato’ Sri Idris Jala GTP NKRA 6 + 1 teams CEO/Minister’s Office Programme Mgmt Team (PMT) Corporate Services (HR, Finance, IT, General Admi) ETP NKEA 12 teams ETP SRI 5 teams Total staff size = 135 Executive = 105 Admin / Support = 30 PEMANDU - Organisation Structure (Overview)
  17. GTP (7x NKRA) EDU LIH Crime RBI CORR UPT Comms Tengku Azian Dr Chua Eugene Ravi Suhaili Alex COL John Low Double Hatting Typical job titles: Directors, Associate Directors, Senior Managers, Managers, Senior Analysts, Analysts Flat structure Individual team – typical structure
  18. Agenda • Background • Organisation set-up • Attracting high-caliber and talented people • Availability & effectiveness of monitoring framework • Availability of funds to implement initiatives & programmes • Q&A
  19. PEMANDU is led by a strong leader with proven track record Senator Dato Sri Idris Jala • Served Shell (23 years) – 4 years in Holland & 4 years in London • Global Business Turnaround & Transformation experience • Appointed as the CEO of Malaysia Airlines to turnaround the business • (loss making of RM 1.23 billion to the highest profit of RM 840 million in 2 years) • Headed PEMANDU as the CEO and also served as a Minister in the Prime Minister’s Department. Currently the Advisor to the Prime Minister on National Transformation Programme • Bloomberg placed Idris Jala among the top 10 most influential policy makers in the world • Served on the Advisory panel for the World Economic Forum (WEF) on New Economic Growth and also on the Advisory Panel of World Bank
  20. MAS: 1 year turnaround to record profit -1500 -1000 -500 0 500 1000 2005 2006 2007 2008 2009 2010 RM -1.23 Bil RM -74 Mil RM 840 Mil RM 264 Mil RM 282 Mil RM 491 Mil Global Financial Crisis Record High Oil Price
  21. The type of work & activities  Dictate the type of people we recruit Traits Skill sets (Ideal) 1) Versatile  able to juggle many things 2) Tenacious  chaser and finisher 3) Strategic thinker 4) Creative & innovative  out-of-the-box 5) Good inter-personnel skills  at stakeholder management 1) Good project management 2) Good at problem solving & analysis (comfortable with numbers) 3) Good with Powerpoint & Excel 4) Strong ability to distill large amount of info in short space of time  provide concise executive summary for senior management
  22. Recruitment Advertisements Online (website) Print (in major newspapers)
  23. How to ensure we recruit the right type? We devise a few ways to assess their abilities and skill sets For senior executives 1) Case study interview; 2) Observation of their performance in Lab For entry level (fresh graduates) 1) Case study interview; 2) Trial period via internship We DO NOT just rely on :  Looking at resume/CV  Standard interviews
  24. To assess the candidate:  Ability to synthesize large amount of information  Analytical skills  Problem-solving skills  Communication and presentation skills  etc… Case Study - Sample (usually 35-40 pages)
  25. (Ref Page 22 and 23) - Question: Do you see any correlation between the charts on Palm Oil versus Palm Kernel Oil ? Case Study – Typical questions  To test the candidate’s ability to read charts and analyse
  26. (More…) Case Study – Assessment Scoresheet  Ensure rigorous and consistent comparison between candidates
  27. Direct Hire from Private Sector Seconded from private sector Previous jobs (non-exhaustive):  Bankers  Consultants  Professional managers and executives from MNCs  Project management  Etc…  Government linked companies (GLC)  Private sector (local and foreign) Competitive remuneration package (private sector level) Seconded from public sector (civil service)  Ministries  Government agencies Top up allowance Current profile of PEMANDU team
  28. One typical question which we receive: How is a small team like PEMANDU able to deliver big results? We practice the Game of Leverage.
  29. Agenda • Background • Organisation set-up • Attracting high-caliber and talented people • Availability & effectiveness of monitoring framework • Availability of funds to implement initiatives & programmes • Q&A
  30. The types of Priorities tracked ? How Priorities are Selected ? How to ensure delivery are on Track ? How to resolve issues ? It is fundamental for a delivery unit to operate with effective monitoring and tracking framework Source : Institute of Government, 2017, PEMANDU • Prime Minister or President’s priorities • Major projects (In terms of financial values, political / legislative needs) • National development priorities • Ministerial Mandates Common themes among global best practices • Donors inputs (World Bank, EU, Delivery Units Romania) • Collective agreements between the Prime Minister and his cabinet members (PEMANDU, Malaysia) • Design Labs focused on priority areas (South Africa) • Online Dashboard (Netherlands, Australia, PEMANDU Malaysia) • Mini-stocktake meetings discuss lower-priorities initiatives (Australia) • Cabinet Meetings update President and ministers (Guatemala, Indonesia) • Problem Solving Meetings scrutinize feasibility of ministerial and departmental proposals (PEMANDU, Malaysia) • Labs bring together experts to solve problems (PEMANDU, Malaysia) • Communities of practitioners identify solutions (Canada’s CRDO)
  31. Example : PEMANDU’s weekly & monthly reporting NKRA / NKEA - Overview NKRA / NKEA – Weekly & Monthly Tracking
  32. Agenda • Background • Organisation set-up • Attracting high-caliber and talented people • Availability & effectiveness of monitoring framework • Availability of funds to implement initiatives & programmes • Q&A
  33. “A plan without a budget is a draft” Careful coordination among stakeholders and a solid understanding of all fiscal issues are important to ensure success of prioritised projects Collaborate and closely involve the finance ministry/Treasury (or a similar authority) early and throughout this process Develop a clear picture of both funding demand (detailed cost estimates) and supply (available government funds) Involve external experts and use international benchmarks to challenge thinking so that estimates are not overstated Where the budget is tight, shortfalls can be bridged in a number of ways, for example, reallocating existing funding to priority areas, improving tax collection, seeking private donor contributions, or collaborating with state-owned enterprises or private sector for co- investment in improvement initiatives 1 2 3 4
  34. Development Partners plays a key role in coordinating the delivery of development commitments through transparent processes 2 Source : PEMANDU Common issues faced across governments 1 3 4 5 6 7 8 To ascertain the strategic direction required Establish in detail what needs to be done Share lab output with people & seek their feedbacks Tell the people what we are going to do Setting KPIs for monitoring & tracking Problem- solving on the ground implementation External validation on results achieved Tell the people what we have delivered Strategic direction Labs Open days Roadmap KPI Targets Impleme ntation PWC Audit Example : BFR® 8 Steps Methodology Silo-ed mentality across government bodies • Weak implementation culture Value for money • Per capita project costs • Project log frame & impacts Capacity issues • Mismatch of skillsets • Manpower shortages Project/program execution • Overambitious targets • Unjustifiable targets or projects Lack of Transparency • Process loopholes • Weak procurement processes • Accountability issues Annual Reports Sir Michael Barber Partner, McKinsey UK; ex-Head of Prime Minister’s Delivery Unit (PMDU) of Tony Blair Administration Michael Hershman Co-founder of Transparency International; Current CEO of the Fairfax Group Stephen Sedgwick Australian Public Service Commissioner Ravi Balakrishnan IMF Resident Representative, Singapore Sergei Dodzin Senior Economist, Asia & Pacific Department – International Monetary Fund Kwak Seung-Jun Chairman Presidential Council for Future and Vision
  35. PEMANDU’s 8-step BFR™ Methodology compliments DP’s initiatives Strategic Direction1 Labs2 Open Days3 Roadmap4 KPI Targets5 Implementation6 External Audit7 Annual Reports8 Intense discussions among Development Partners (DPs) and governments often set implementable strategic directions Development Partners play pivotal roles in stress-testing what works (historically) and what doesn’t Practitioners from various Development partners will share their experiences and provide feedbacks on Lab outcomes, which further enhance implementability Targets set made available for public consumption. This allow DPs to track alignment of DPs funding with committed projects To ensure national targets should always be aligned with key global targets e.g. SDGs etc. DPs often assist implementers via deployment of SWAT team or specialist consultants when necessary Implementation results are further validated by international benchmarks – e.g. PISA results, transparency Index, Global Competitive rankings, etc. Published outcomes often scrutinizes effectiveness of implementation & will surface any gaps in implementation, where DPs can assist
  36. PADU drives Malaysia Education Blueprint initiatives through… • Weekly Status Update Meeting with PEMANDU • Weekly KPI and Milestone reporting via PADU Dashboard Weekly War Room Problem- Solving Meeting chaired by the Minister NKRA Delivery Task Force Meeting chaired by Deputy Prime Minister, every 2 months Creating Discipline of Action and escalate issues for Problem-solving through regular platforms
  37. PEMANDU provides support to PADU by… Providing inter-agency support - example1 • Facilitated TVET supply and demand data from multiple agencies to map TVET supply landscape so MoE and other agencies can set appropriate national targets to avoid oversupply of graduates • Escalate the issue during Delivery Task Force Meetings to obtain DPM directive for all agencies to supply accurate and complete data
  38. PEMANDU provides support to PADU by… Offering an independent view on issues - example2 • Examined and proposed for liberalization of private preschools which is under the purview of MoE, so it is consistent with policy of other Ministries on private childcare centres and schools Steering Committee Meeting (1 Dec 2014) decision: conduct a comprehensive study on liberalising preschool by PADU and PEMANDU
  39. PEMANDU provides support to PADU by… Collaborating in Labs/brainstorming sessions while building capacity in MOE and PADU - example 3 • Co-organized and co-facilitated TVET Lab in 2014 with PADU and while exposing PADU new recruits to the PEMANDU Lab methodology
  40. PEMANDU provides support to PADU by… Researching best practices - example4 • Conducted research for best practices in Sri KDU School, a private schools which scored the best among Malaysian schools in PISA 2012. • Visited and examined the success factors of High Performing Schools in Malaysia • Future project : adopt and transform a low-performing school using the success factors identified from best practices
  41. Efforts are concurrently focused on the set-up, capacity building and empowerment of the Implementation Support and Follow-Up Unit (ISFU) in Oman Act as secretariat to high-level problem solving platforms such as the Steering Committee comprising of ministers and initiative owners Key Activities of ISFUCore Roles & Responsibilities of ISFU 1 Monitoring and Managing Performance 2 Problem Solving 3 Producing consistent implementation reports 4 Creating awareness and communicating progress to the public Provide problem-solving support to Ministries on lab implementation programmes as well as to resolve cross-ministerial issues Facilitate development of detailed implementation plans of the Key Priority Sectors with the other Governmental Ministries Producing reports and communicate the results of the program and projects to stakeholders and the public - - - -
  42. A strong governance structure has been custom-built and being facilitated to constantly problem solve on-the-ground issues Initiative Owners’ Action Working Group Meeting ISFU Escalation (Ministerial Committee) Working Structure Objective Owner/Member  Key Interventions requiring Minister of Diwan’s decision  Direction and guidance  Problem solving  Consolidate updates  Problem solving  Implement initiative  Provide updates  HE Minister of Diwan  HE Sectoral Minister  HE ISFU Minister  ISFU PMT  ISFU Technical teams  Ministry Delivery Unit (MDU)  Working Group Leaders  Initiative Group Leaders  MDU  Working Group Leaders  Initiative Group Leaders  Initiative Group Leaders Steering Committee (SC) Sectoral Ministers & ISFU Minister Pre-SC #1 ISFU PMT & Technical teams Pre-SC #2 Sectoral Ministers & ISFU Minister  Draft SC deck, with problem-solving slides (discussed with MDU)  Draft SC deck, with problem-solving slides (discussed with MDU)  HE ISFU Minister  ISFU Technical Team  Tanfeedh Programme Leads  HE Sectoral Minister  HE ISFU Minister  ISFU Technical Team  Tanfeedh Programme Leads Monthly Monthly Monthly Weekly Frequently Monthly
  43. Recap of 8-Steps methodology Source : PEMANDU PEMANDU’s 8-Steps methodology Implementati on Planning 6 Implementation 7 International Panel & Audit 5 KPI Targets 3 Open Days 4 Roadmap 2 Labs 1 Strategic Direction 8 Annual reports ActionCommitmentComprehensionAwareness What do I need to do? Will this really work? Why are we doing this? What’s happening? Impact 1 3 2 4 5 6 7 8 Being DoingActive monitoring Enforce deliver mechanism to achieve results
  44. PEMANDU is one of the more well known Delivery Units and a lot of case studies have been written Economic Transformation: All About Focus, Competitiveness, and Execution Published: Nov 2012 Authors: Prof Diego Comin & Ku Kok Peng Not available for distribution or download Case Studies Tying Performance Management To Service Delivery: Public Sector Reform In Malaysia, 2009 – 2011 Published: July 2011 Author: Deepa Iyer Mapping A Transformation Journey: Malaysia’s Strategy Development. 2009 - 2010 Published: Aug 2014 Author: Elena Lesley Doing, Learning, Being: Some Lessons Learned from Malaysia’s National Transformation Program Published: January 2015 Author: Charles Sabel, Luke Jordan Driving performance from the center: Malaysia’s experience with PEMANDU Published: April 2017
  45. Agenda • Background • Organisation set-up • Attracting high-caliber and talented people • Availability & effectiveness of monitoring framework • Availability of funds to implement initiatives & programmes • Q&A
  46. Thank You… Q & A
  47. Key lessons can still be derived from PEMANDU, PDB & Tandeefh Lessons Learnt Details 1 2 3 4 Embedding the delivery structure Capacity building the locals is key No funds = no implementation • The governance structure for implementation projects should have clear representations within the current structure of the Government, to avoid roadblocks due to lack of buy-in • Implementation projects require a mixture of capacity building & delivery work to ensure continuity and confidence of the highest level decision makers • There needs to be a conscious effort to schedule regular capacity building & training sessions on the core skills required such as analysis, problem-solving, storylining • Before starting a project, we really need to determine the ability of the Government and/or Development Partners to commit to fund the initiatives in the lab report • We should also determine the appetite and readiness for PPPs before actually pushing for something the Government is not ready to do Timing for budget cycles • Timing of the lab needs to consider budget cycles, in order to be able to catch the budget cycle & get sufficient funding for implementation
  48. YAB PM has agreed for a transition period of 2 years for PEMANDU to hand over full responsibility for the NTP to the civil service • Commencement of Transition period for NTP • Delivery of services shall be overseen by CSDU • NTP delivery conducted by Unit PEMANDU, JPM • Contract signed between Government of Malaysia (“GOM”) and PEMANDU Associates Sdn Bhd • Conclusion of PEMANDU support for NTP delivery (over 2- year period in 2017, 2018) Timeline for PEMANDU Transition 28 Feb 20191 Mar 20175 Jan 2017Before 28 Feb 2017
  49. PEMANDU Associates is a private company formed by the leaders and staff of Unit PEMANDU and applies the BFRTM methodology 1. Independent private management consulting company 2. Established to apply Big Fast Results (“BFR”) methodology to help clients deliver results, whether for Public Sector Transformation or Business Turnaround 3. Founded and led by Dato’ Sri Idris Jala, and supported by former staff of PEMANDU Civil Service Delivery Unit (CSDU) 1. A unit set up under the Economic Planning Unit (EPU) of the Prime Minister’s Department 2. Established to carry on the NTP agenda, lead by Johan Merican and supported by civil servants (including ex-PEMANDU employees) 3. Will receive support and facilitation from PEMANDU Associates for 2 years, as part of the contract to ensure smooth transition of NTP into the civil service CSDU PEMANDU Associates Sdn Bhd
  50. All in all, PEMANDU Associates facilitates the NTP agenda on behalf of CSDU from 1 March 2017 – 28 Feb 2019 Delivery Management Office (DMO) Owners Entry Point Project (EPP) Civil Service Delivery Unit (CSDU) Prime Minister supported by 1 March 2017 – 28 Feb 2019Before… Delivery Management Office (DMO) Owners Entry Point Project (EPP) Prime Minister VS
  51. Results were seen immediately from the first 2 years of implementation in Tanzania’s Development Partners funded projects Source : BRN Annual Report
  52. Thank You Level 4 Block A Lot E, Platinum Sentral, Jalan Stesen Sentral, 50470 Kuala Lumpur, Malaysia