©18-ICIT: 21-23/4/14 at UiTM-Sarawak ST-0: Distinguished Keynote Speech Paper #: 00-1DK P- 1 KEYNOTE ADDRESS: Enhancing Growth and Productivity through Best Practices in Quality Management YB Tan Sri Datuk Amar Haji Mohamad Morshidi bin Abdul Ghani Sarawak State Secretary 1.0 Opening Bismillahirahmanirahim Assalamualaikum and Good Morning Distinguished Chairmans, Prof Dato Dr Jamil Haji Hamali, Rector, Universiti Teknologi Mara Sarawak, Prof Sam Ho, Founder Chair Asia Pacific Business Excellence Standard Academy, Distinguished participants, Ladies and Gentlemen, I would like to thank the organizer for inviting me to deliver a keynote address to this prestigious event of the 18th International Conference on ISO and TQM. I am glad that this conference is being held in Kuching for the first time and hopefully at other times. To all foreign delegates, I would like to say “Selamat Datang” or Welcome to Kuching, the City of Cats and the capital city of Sarawak. I wish you a pleasant stay in our quaint city during the course of your conference from 21st to 23rd April 2014. I understand that this conference is being organised by UiTM in collaboration with APBEST or Asia Pacific Business Excellence Standard Academy, International 5-S Organisation, Sarawak Convention Bureau, and SIRIM, with the theme ‘Enhancing Growth and Productivity through Best Practices in Total Quality Management’. This theme of growth and productivity resonates well with us in the Sarawak Civil Service as we are in the midst of undertaking our transformation journey towards achieving the vision of a world class civil service. Towards this objective, the concern for good governance, total quality management and excellent public service delivery are of prime importance in ensuring that the needs and expectations of our stakeholders, customers and the people on the ground are being delivered to their satisfaction and, ultimately our goal to be a high income state by 2030 and improving the quality life of our people are realized. 2.0 Global Overview of TQM and ISO Total Quality Management or TQM and International Organization for Standardization or commonly known as ISO has been part of us for a long, long time. Their existence is evident from the longevity of this conference which is been held for the 18th time this year. As you all know, TQM is a holistic approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal. It aims to transform the organization through progressive changes in the attitudes, practices, structures, and systems. Total Quality Management brings about the evolution of numerous tools and approaches as well as the introduction of various best practices both in the private as well as in the public sector organizations. ISO is one of these practices. ISO certification provides assurance of quality management which in turn provides assurance to our customers of the safety, reliability and good quality of our goods and services. ©18-ICIT: 21-23/4/14 at UiTM-Sarawak 3.0 ST-0: Distinguished Keynote Speech Paper #: 00-1DK P- 2 Development of TQM and ISO in Malaysia and Sarawak In Malaysia, the concept of these quality systems were embraced in the 90s where at that time quality and productivity were seen as the most important strategic issues facing top management. The quality systems were introduced into the public service departments and agencies throughout the country to increase productivity, efficiency and effectiveness. The road to the adoption and implementation of these quality systems has been long and challenging but the results have been shown to be rewarding. The journey began, specifically ISO, in 1997 following a circular issued by the Public Service Department of Malaysia which was implemented throughout the country. In Sarawak, the implementation of the MS ISO 9000 standards in the Sarawak Civil Service began in 1997 with the 1994 version, followed by the updated 2000 version and 2008 version which is currently being used. The strong commitment of the Sarawak Civil Service or SCS towards ISO best practices was demonstrated through the inaugural certification of 91 state agencies for MS ISO 9000:1994 from the year 1994 to 2003. Up to date, the number of state agencies which has acquired, or in the process of acquiring accreditation using the latest version is 132. The State of Sarawak has been very rigorous in its efforts to improve the quality of service to its people at the grassroots level. An efficient and effective delivery system is crucial to ensure that we can administer the state of Sarawak well in spite of the challenges in the quality of life, living conditions and geographical locations of its people. Thus, the adoption of TQM provides the right platform for achieving excellence in our service delivery. 4.0 Sarawak Civil Service (SCS) Transformation Journey It is a calling that require us to reassess all aspect of our work in a systematic manner, plan, and execute changes that are required so as to ensure that we will remain relevant in this globalised and extremely dynamic environment. Hence, the need for our Civil Service transformation agenda. Today, I would like to share with you, a case example and our experiences in driving the transformation and innovation initiatives in SCS. Our transformation model is homegrown and highly contextual. Its adaptive in nature as initiatives are phased based on the readiness of our organizations .I must say, it is a work in progress. Later I will also highlight some key quality initiatives and tools which form the basis of our transformation model. We embarked on our State Civil Service transformation in 2010 with the vision to be a World Class Civil Service. To achieve this vision, the State Civil Service mission statement was also reviewed to focus on High Performance Team and Excellent Service Delivery. This transformation requires that the State Civil Service subscribe to a set of core values that include Integrity, Kind and caring, Professionalism, Sense of Urgency and Ownership, Team Spirit and Result Oriented. In tandem with the national agenda that is “People First, Performance Now” there is a need for us to put greater emphasis to deliver excellent services to our stakeholders and customers with a greater sense of urgency. We need to make deliberate effort into getting everyone on board to participate actively in this transformation journey. The civil service needs to adopt and adapt to a new work culture and at the same time be creative and innovative in their work processes and procedures to address the challenging needs of our customers. To achieve this aspiration to be a World Class Civil Service we need to re-examine the ways we conduct our business, address public expectations and demands. This necessitated the introduction of quality initiatives which we called Key Focus Activity (KFAs) and enhancement of Innovative and Creative Circle (ICC). KFA which is a top-driven initiative look at small improvements with high impact in improving government efficiencies, where as ICC promote the enculturation of creativity and innovativeness among the support staff. Having envisioned this transformation in 2011, we accelerated the change momentum by creating change leadership team. This involves a shift in focus to SCS Talent Management. HR Talent ©18-ICIT: 21-23/4/14 at UiTM-Sarawak ST-0: Distinguished Keynote Speech Paper #: 00-1DK P- 3 Management which includes Recruitment and Selection, Performance Management, TED and Continuity Planning is considered as a key component in ensuring the successful implementation of this transformation. Having the right people with the right aptitude and attitude is a necessity and the HR Transformation initiative will addressed this issue comprehensively. In 2012, seven critical areas were introduced to catapult the transformation process. The seven areas include Managing Culture Change, HR Talent Management, Managing Customer Needs, Innovation and Creativity, e-Government, Project and Programme Delivery Excellence and Financial Management Transformation. In 2013, the 8th Action Plan, that is, Sarawak Excellent Administration of Legal Services (SEALS) was introduced. This plan is the final and completes the cycle of all the key areas in achieving our transformation objectives. Apart from the introduction of SEALS during HPT Retreat 2013, HPT Solutions were also introduced, aims at enhancing inter-agency collaborations to resolve common issues, find innovative solutions and develop “quick wins” as to increase our productivity and improved our service delivery to our people. SCS 10-20 Action Plan In the State Civil Service, the quest for total quality management is manifested through the implementation of SCS 10-20 Action Plan. This ten-year action plan covering a period from 2010 to 2020 is a comprehensive and structured framework consisting of eight (8) key areas that aims at transforming the SCS to become highly efficient and effective in its service delivery. All the eight areas are spearheaded by six (6) government agencies and they stressed on the importance of good governance, ethics, standards, process improvement, systems development and corporate values, to ensure the continuous provision of quality services to the stakeholders, customers and citizens. ©18-ICIT: 21-23/4/14 at UiTM-Sarawak ST-0: Distinguished Keynote Speech Paper #: 00-1DK 5.0 Some Key Quality Initiatives in SCS 10-20 Action Plan 5.1 Focus Activity (KFA) P- 4 This is the fifth consecutive year that Key Focus Activities (KFAs) are being implemented to address areas of improvement specifically on the work processes and procedures that will generate big fast results and create high impact in the service delivery of the State Civil Service. Through the KFA initiatives, the State Civil Service has deliberately embarked on making complicated work processes simple for customers without compromising integrity and quality of the service itself. These KFAs are also implemented to address public complaints, facilitate ease of doing business and ultimately improve the quality of life of our people. From the year 2010 until 2013, a total of 462 KFAs have been approved for implementation. Of the total 462 KFAs, 377 were those involving Process Improvement while the remaining 85 were on Systems Development. This KFA initiative has continued to unveil some outstanding results. For example, in 2011, a project by the Ministry of Public Utilities and Sarawak Energy Berhad (SEB) was to reduce state-wide electricity theft from 7% to 4% of total energy generated within 18 months. This initiative resulted in the reduction of 2% in electricity theft at a savings of RM36 million to SEB. For 2012 another impactful KFA, e-LA2 (Local Authority System) under the Ministry of Local Government and Community Development has resulted in the significant reductions in arrears of rates by 27% amounting of RM12 millions. ©18-ICIT: 21-23/4/14 at UiTM-Sarawak 5.2 P- 5 Paper #: 00-1DK ST-0: Distinguished Keynote Speech Number and Categorization of KFAs 2010 Agency Ministries Chief Minister’s Department State Departments Resident Offices Local Authorities District Offices Statutory Bodies & GLCs Total 5.3 2011 2012 2013 Process Improvement (PI) System Developm -ent (SD) PI SD PI SD PI SD 19 1 22 2 11 2 11 1 10 10 16 9 10 3 10 6 20 10 7 2 5 2 3 0 27 18 2 - 9 2 0 - 25 11 5 - 1 2 1 - 18 8 3 - 2 2 0 - 24 5 35 12 26 5 27 0 118 154 102 88 Innovative and Creative Circle (ICC) The focus on creativity and innovation is a natural progression for the State Civil Service as we embark on our transformation journey. Through platforms such as the Innovative and Creative Circles (ICCs), government departments and agencies will be able to nurture the spirit of creativity and innovation among civil servants particularly among the support staff. Inculcating the culture of creativity and innovation through a systematic approach such as the ICCs will also enable the civil service to generate creative ideas, encourage positive values and introduce new ways of doing things that will help solve problems and create value for the organisation. Towards this end, SCS has been at the forefront of ICC movement in the nation. • • • 5.4 Winning both Management and Technical Categories for 2 consecutive years in National ICC Convention 2011 and 2012. Most number of ICC teams nationwide (to date there are 232). Pioneering Nation Hybrid ICC team. HPT Solution HPT Solution which was generated during HPT Retreat 2013 is home grown innovative approach, similar to BOS, where inter-agencies heads working in synergy to resolve issues and problems that affect the customers and public at large. It covers broad matters on service delivery issues and problems where solutions are needed at the highest level of department and agencies to help enhance our service to the ©18-ICIT: 21-23/4/14 at UiTM-Sarawak ST-0: Distinguished Keynote Speech Paper #: 00-1DK P- 6 people and the business sectors. Some are long standing problems which in the present age of technology and increasing demand from people and businesses require us to find a definite solution. Twelve HPT Solutions were deliberated in HPT Retreat 2013, whereas another 15 in 2014. Examples are ‘Project Delivery Excellence for Issuance of Occupational Permit’ and ‘Tender and Contract Administration Excellence’, both are meant to facilitate ease of doing business. 5.5 Sarawak Civil Service Quality Award (AKPANS) This award includes Chief Minister Quality Award, High Performance Award, Counter Service Award and Key Focus Activity Award. This award is more than a mere recognition and acknowledgement of the efforts of the various government agencies in practicing and pushing forward the quality initiatives in SCS. It is a deliberate effort to drive them to embrace the fundamentals of excellent administration and competitiveness in their service delivery, especially to their stakeholders and customers. Through AKPANS the elements of good governance and excellent service delivery can be translated into actionable programs and initiatives that will ultimately benefit the rakyat. The criteria of for Chief Minister Award covers Organisational Leadership, Financial Management, Human Resource Management, ICT Management, Enculturation of Excellent Organisation, Customer Service, Organisational Achievements, and Community Development. 5.6 Balanced Scorecard (BSC) Sarawak Civil Service has adopted BSC framework as a means to measure our performance. We have the rare distinction of being the first and only civil service in Malaysia implementing BSC Civil Service wide. We envision that in the next three (3) years the Sarawak Civil Service will be the model state in Malaysia as a foremost BSC practitioner. To date we have a total of 13 units in Chief Minister’s department, 12 ministries, 5 technical departments, Residents and district offices are now implementing BSC. 5.7 The Way Forward for Quality Movement in SCS Transformation Journey The implementation and practice of these quality systems in the beginning was arduous and required patience and total commitment, more so, in transforming the service delivery. While in the past it is sufficient for the public service to be mere administrators and regulators, current demands in customer expectations have required SCS to transform itself to become a more proactive facilitator and efficient service provider to the customers and the people it serves. The Sarawak Civil Service is proud to be the first civil service in Malaysia to undertake this transformation through innovative and quality initiative on a service-wide scale. We will persist in this journey to achieve our vision of ‘A World Class Civil Service’ and supported by a mission ‘To provide Excellent Service Delivery through High Performance Teamwork’. The SCS 10-20 is our commitment to transform SCS to be more highly effective in its service delivery and to transform the state to be a high income economy towards a better quality of life of its people. We will not falter in our duty to leave behind a better deal for the future generations to enjoy. 6.0 Conclusion To conclude, I would like to thank the organisers again for inviting me to share my thoughts on the theme of this conference which is also close to my heart. I would like to congratulate them for their commitment and hard work and the smooth planning of this conference is evident of that. I hope our foreign delegates will enjoy your stay here in Kuching. This historical city of 700,000 is worth exploring. I hope you have the opportunity to see and hear the sights and sounds of Kuching and its many attractions. Finally, I wish you all a fruitful and productive conference. Thank You.
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