KPI for Malaysian ministers – does it work?

A prevailing question runs through many minds regarding the issue of setting KPIs for ministers: “Will this be another decorative white elephant?”

The same question was asked of me when I first decided to set KPIs for my staff at SEG International Bhd (SEGi) a few years back, and at Star Publications (M) Bhd earlier this year.

Some people are very happy that our Prime Minister has initiated the KPI project, while many are skeptical or downright critical. Less aware parties think this whole idea is ridiculous. In actual fact, implementation of KPI to the government sector and its staff is nothing new in some countries such as the UK and Australia.

Can we blame the people for reacting the way they do? Time and again our hopes were raised with brilliant suggestions, policies and regulations then dashed by lack of implementation and enforcement.

A Key Performance Indicator is simply a stated goal that measures a person’s performance in a quantifiable manner and reflects organizational goals.

It is a good thing that the ministers are being subjected to KPI now. At least it is some kind of gauge of performance instead of none. However, it would be pointless to have KPIs if they are not well written.

A good KPI should state what must be achieved and how the achievement is clearly measured, without any ambiguity. KPIs must also relate to the section, department or organization that the individual belongs to. But first, we need to know the current standing of each ministry as some basis for which to set the KPIs.

These KPI are then used as a performance management tool and a carrot to encourage individuals to perform better. If the KPI is achieved, what is the reward? If it is not, what is the consequence? These have to be determined, otherwise the KPI is just there as a decoration.

Here is where we start to see the difference between KPI in the corporate sector versus KPI in the government sector. In the corporate sector, employees who achieve or exceed their KPIs are promised financial rewards, a company trip or prospects of promotion.

In the Star, the ex-gratia bonus across the board has been done away with, and in its place, each employee shall be rewarded based on the final assessment of his or her performance.

In SEGi, this system is already very entrenched, with each head of department and centre manager playing a key role in determining what the bonuses and promotion prospects of their subordinates would be.

There is no foolproof system, but where there’s more transparency in the written form, there’s less room for disputes.

What is the motivating factor for government servants? The bonus system in our Malaysian government is set across the board and we all know full well how great the prospects of promotion are. Unless these change, the government must find really good motivating factors other than job satisfaction.

Furthermore, KPIs are only set for the ministers and perhaps the second highest in command. What about the rest of the government servants down the hierarchy?

An organization cannot function optimally nor achieve its goals without cooperation from every individual in it. If staff in the ministry refuse to cooperate with the minister, what can the minister do? There is no such thing as retrenchment or the sack in the government sector.

Next come the favourite questions of all time even after it has been announced that the KPIs will be made public: “Will the KPIs and results of KPI evaluation be genuine? How transparent will they be?”

The Australian and British governments publish every single detail in their government websites pertaining to KPIs, progress reports and evaluations. Are we willing or capable of doing that?

The KPIs are meant to be guidelines but there is always room for error. Corruption still occurs in those countries with the most beautifully written KPIs and reports. At the very least, the people will have some idea, instead of none, of what each ministry is to achieve. From there, they can make a slightly more educated decision for the next election.

It makes good sense that voters be given all the help they can get to make a better informed decision – and the KPIs could be a good tool.