idris jala strategy
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This is not my document. This belongs to Datuk Idris Jala and those who help to make it for him. Just sharing knowledgeTRANSCRIPT
Transformational Leadership
6 Secrets of Business Transformation
Dato’ Sri Idris Jala MD/CEO Malaysia Airlines
April 2009
The 6 Secrets of Business Transformation
Game of theImpossible
P&LAnchorage
DisciplineOf Action
SituationalLeadership
WinningCoalitions
DivineIntervention
1
2
34
5
6
Secret No. 1:The Game of The Impossible
(1) The Game of The Impossible
Steps to making the ‘impossible’ happen:
Set “Olympic” targets (very few precedence, difficult to justify)
Conquer the fear of failure – conversations!
Create a game so large it will consume you
People innovate when their backs are against the wall
Many thought it was impossible to save MAS….
News Strait Times(1st Dec 2005)
01
1b
End ‘05 Apr ‘06
CriticalLevel
RM600m
Cash Crisis
02
-1.3b
-1.7b
2005(9 months)
2006 Full Year
Profit Crisis
We will solve our own problem(PM: “No bail out”)
2005: -RM1.3b loss
BTP 1 Target 2006: -RM 620m2007: +RM 50m2008: +RM 500m
Record profits, record turnaround!Highest profits in 60-year history
’86/
’87
’87/
’88
91/9
2
88/8
9
90/9
1
89/9
0
112151 154
222288
111144
7
261233
319
(260) (700) (259) (417) (836)
337
461
326
(1,252)
(134)
851
92/9
3
93/9
4
94/9
5
95/9
6
96/9
7
97/9
8
98/9
9
99/0
0
00/0
1
01/0
2
02/0
3
03/0
4
04/0
5
Dec
05D
ec06
Dec
07
RM million
-321m
1QFY06
-321m
-177m
240m
122m 133m 113m
364m
242m
120m
2QFY063QFY06 4QFY06 1QFY07 2QFY07 3QFY07 4QFY07 1QFY08 2QFY08
40m 38m
3QFY08 4QFY08
46m
-177m
RM
MAS remained profitable for FY08 despite tough operating environment
(FY08)RM 244 m
10th Consecutive Quarter of Profits
Delta
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ited
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EVA
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*
Briti
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irway
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* Jan-Jun08** Jan-Sep08
Source: Bloomberg
State of the Airline Industry - in 2008
King
fishe
r Airl
ines
Jet A
irway
s
Spic
eJet
5.3b
(Net income in US$)8.9b
5.3b
4.8b
2.1b
1.8b1.2b
894m585m
435m 400m338m
283m213m
591m
115m111m 95m 91m
87m
85m 76m
179m
1.1b
NOT EXHAUSTIVE
138m135m
Secret No. 2:Anchoring on the P&L
(2) P & L Anchorage
Decompose the company P&L into individual route P&Ls
Make each country manager accountable to the personalised route P&L
We want innovative solutions which deliver financial results
The whole organisation should focus on the P&L
Rigorously challenge strategies & activities
Reward people who improve the P&L
THE P&L IS NOT A PLACE TO HIDE
Secret No. 3:The Discipline of Action
(3) The Discipline of Action
Agree what constitutes success and measure
Plan and track results (alongside action plan)
Report and communicate results
Roll your sleeves and get into the details
Innovation needs solid implementation to achieve results
THIS IS REALLY HARD WORK BUT EXCITING!
* Weekly frequencies
We use the lab as a tool to force
Discipline of Action
Secret No. 4:Situational Leadership
Change leadership style based on team development
Dissatisfaction
STAGE 2 STAGE 3 STAGE 4
Resolution ProductionOrientation
STAGE 1
Productivity (Competence)
Morale (Commitment)
Directive Style Empowering Style
Situational Leadership
Leaders must nurture and develop innovation
Secret No. 5:Winning Coalition
(5) Winning Coalition
No man is an island
GLC – Conflicting shareholders’ requirement i.e. government versus investors; business versus politics
Investor Relations
Staff Engagement
Collaboration with competitors
Innovation surface when people work together
IT’S ALL ABOUT MANAGING POLARITY
Secret No. 6:Divine Intervention
2 Experiential Human Paradigms
(1) Human beings have limited control / influence over what happens
(1) Life is a continuous reduction of options time
1
2
40%controllable
60%uncontrollable
How do you get divine intervention ?
On values and actions – Be a Good Human Being
Ethics – Operate from the “White” not from the “Black” / “Grey”
Self Renewal – Solitude & Reflection (Theory of Enough)
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2
3
Thank You