Zeti Akhtar Aziz: Advancing women's leadership in public life
Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Women in
Leadership Forum "Power sharing in the public sector", Kuala Lumpur, 22 February 2011.
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Introduction
In this twenty-first century, it is human capital rather than physical capital that will define
performance and progress. Women represent half of the world population and therefore half
the potential resource that can drive such performance. This is reinforced by the more recent
trend that increasingly, the majority of those with college education are women. Increasingly
therefore, this group represents a more significant resource potential that can rise to
leadership positions. In emerging economies, where such high powered talent is scarce,
gender has not been of an issue. Women have risen to leadership positions based on their
merits and capabilities.
Women in Malaysia have certainly made significant strides in their participation in all
segments of the Malaysian economy and have demonstrated their ability to lead and to
succeed in both the public and private sectors. It is my honour to be here today to speak at
this Women in Leadership Forum on the topic on "Advancing Women's Leadership in Public
Life: Power Sharing in the Public Sector". In Asia, in particular, women have risen to key
positions and have been given the opportunity to contribute to the nation's progress and
development. In an age of greater demands for performance and in an environment of
increased scrutiny and transparency, the transition to such leadership positions has not been
based on gender. Indeed, it is based on the capability as administrators, policy makers and
thought leaders. Power sharing is therefore the shared power to contribute to the nation
rather than on the power that is wielded. My presentation today will therefore start on the role
of the public sector and its accountabilities before discussing women and leadership in the
public sector, its challenges and some strategies for success.
Accountabilities of the public sector
The role and accountabilities of the public sector differs markedly from the private sector.
Unlike in the private sector, financial measures are generally not the indicator of the
performance of agencies in the public sector. In addition, actions taken by the public sector
have far reaching implications on the economic well being of the public at large and entire
spectrum of businesses. Such actions may even have implications on other countries given
the greater international interdependence that prevails in the current environment. The
responsibility and accountability is therefore immense. History has shown that
mismanagement can greatly damage a nation resulting in high costs to the people of the
country. In contrast, well managed nations have brought great prosperity to its people.
Being in the public sector is all about bringing value and benefits to its citizens. Such benefits
can include improved housing, education, health and transportation. It could also include
eradication of poverty, reduction in crime and environmental sustainability. In the current
environment of greater transparency and enhanced communication channels, there is now
greater awareness of the prevailing circumstances. This has produced high expectations. It
has also reduced tolerance for inefficiency, poor performance, irregular practices and
nondelivery of the results. The expectations are for a public sector that best serves its nation and
that delivers the expected results in the most effective and efficient manner.
Similar to the private sector, the public sector is confronted with a dynamic environment of
rapid change. Approaches that have produced previous successes may now have become
no longer relevant. In these situations, previous skills and capabilities will no longer be
adequate. In addition, it will be the cumulative efforts of all parts of the public sector that will
produce the results. It will no longer depend on a specific part of the system but on several
parts of the system. Previous arrangements will therefore become no longer effective. New
challenges that have become more complex will require new tools and systems to solve
them. The organisation will thus need to be transformed to meet the changing requirements
of the new environment.
To contribute to a nation's progress and development, therefore, demands for the ability to
manage these new challenges. The role of the leadership in the public sector has thus
changed significantly. Successful nations are those that have accorded priority to its human
capital and to organisational review and transformation. Given the scarce high-powered
human capital, there are tremendous opportunities for women with the capabilities to take on
leadership responsibilities in the public sector and thus contribute towards achieving the
greater well being of the population.
Advancing women's leadership in the public sector
As an important component of the human capital resources women are increasingly
becoming a growing force in the talent pool. To advance forward to leadership positions
requires the investment in leadership development. While there are several common threads
in leadership in both the private and public sectors, there are some specific leadership
characteristics that are important for the public sector.
Firstly, it involves having great clarity of the vision - of the objective that needs to be
achieved by the organisation and the results that needs to be delivered. Unlike in the private
sector, this is not measured in terms of financial results. Frequently this may be difficult to
measure in quantitative terms. Nevertheless, it is vital so that the resources and energies of
the organisation can be aligned to achieving the results. Equally important, it allows the
organisation to stay focussed, to stay on course when there are a multitude of pressures that
may disrupt or distract the organisation by different stakeholders that have different
perceptions and expectations on the organisation.
Secondly, is having the ability to articulate this vision with others in the organisation and also
with those that will be affected by the actions taken by the organisation. This is to ensure that
the energies of the workforce will be channelled to achieving the strategic results required.
Very often, the shared vision with those that are affected by the actions of the organisation
also allows for the combined efforts to be mutually reinforcing.
Thirdly, and importantly is knowing and understanding the business and the key elements
that drive the organisation. Knowing how the system works and how the objectives might be
realised. This involves having the knowledge, the skills, the information, the methodologies
and the organisational structures needed to deliver the results. This is important so that the
ideas can be translated into results.
Fourth, given the nature of the business of the public sector and the diverse stakeholders
involved, leadership in the sector requires coordination and integration skills that is able to
pull together diverse thinking and diverse information and the ability to integrate the different
perspectives into a solution that produces the desired outcomes. This will also involve
coordination skills required to bring together not only the different parts of the organisation
but also other organisations in the public sector that can contribute to achieving the desired
results.
Fifth, it involves managing trade-offs. Frequently, actions that need to be taken involve
different implications on different target groups. This may involve interests that are
conflicting. This will therefore involve balancing the trade-offs and managing the risks to the
different interests of the different segments of society.
Sixth, is a skill that is increasingly important in the current environment. It is the management
of crisis. Unlike previously, when conditions were relatively stable, the current environment is
frequently plagued by crisis. During such times of distress and instability, the public sector is
at the forefront in providing a response, in providing a solution to the crisis. In making
decisions, during such times, any delays, inaction or wrong policies can produce widespread
damage to the entire country.
Seventh, is the ability to effectively manage under intense pressures. Such pressures can
emanate from the high expectations of the different stakeholders, the crisis conditions or
from the failure of other parts of the public sector that have implications on your performance.
However, being strategically focussed and having the ability to stay on course avoids being
derailed by such pressures.
Eighth, is then courage and bravery to undertake the responsibilities. At the extreme it
requires having nerves of steel. This is to enable sound decisions at the time of high level of
distress and ensures that the organisation remains calm and cohesive during such times.
Ninth, is having the drive and unwavering perseverance to pursue the vision. The agenda of
public sector which is to ultimately improve the well being of its citizens is a long haul
business which therefore requires perseverance. It often requires several pre-conditions to
be in place, it requires having the enabling environment and the different parts of the public
sector to come together to act cumulatively to deliver the results. Frequently, this
synchronisation does not happen. Strong convictions on the cause, reinforced by the
capabilities and supported by the perseverance increases the potential to produce results
that makes the difference.
Finally, and most importantly is the ability for continuous reinvention. The changing
environment is more globalised, more competitive, more uncertain and ambiguous, more
technologically driven, more prone to crisis, and is subject to greater scrutiny and demands
for greater transparency. This more difficult operating environment demands new skills and
abilities to manage these new challenges. Indeed, the role of leadership is dynamic and has
changed considerably. Reinvention is to support the ability to creatively respond to change.
Building effective organisations
To strengthen our ability to manage the new challenges arising from the changed
environment, equally important is building effective organisations with the capabilities that will
deliver results. This will involve organisational reviews and the continuously modernising of
the organisation so that it can continue to best serve the nation. Such endeavour will require
periodic environmental scans and envisioning to revalidate the strategic thrust of the
organisation. Modernisation efforts then need to be supported by a blueprint of the strategic
steps and initiatives that need to be taken. Women that have the capability must be brought
in at the leadership levels to participate in this process. To increase opportunities for women
would require opportunities for education and for the acquisition of experience and exposure.
After formal education, it is experience and expertise gained from coaching and mentoring
that will further enhance an individual's contribution to organisational effectiveness.
In a modernised organisation, the performance management process demands the highest
level of excellence and the ability to produce the desired results within the specified time
frame. Transformed organisations involve a shift from task based activities to becoming
result oriented with clear focus on the mandate and the key performance indicators. To
incentivise such a performance driven organisation, recognition of performance and the
reward system in place needs to be highly differentiated. For many countries this is yet to be
put in place.
The organisational transformation also needs to place value on life-long learning, knowledge
management and opportunities for greater work life balance. Opportunities for learning are
vital for capability development. Finally, new governance structures also are keys to ensure
the rigour of how decisions are made in the organisation and that there are sufficient checks
and balances to ensure the best decisions are made and the highest level of credibility and
integrity are achieved.
Challenges
While the opportunities are immense for women in the public sector, yet few rise to
leadership positions. While there is still a glass ceiling, as we advance forward into the
future, the foundations are already in place for women to advance forward into leadership
positions. The challenge is to recognise continuous reinvention that is needed - to acquire
new knowledge, new skills, new experience so as to be able to have the new capabilities to
deal with the new challenges.
For a woman who is a mother, wife and daughter, the sacrifice involved is great. The
challenge will be to achieve a balance so that work performance is not being adhered at all
cost. Support systems at the work place and at home is vital. Equally important is time
management, stress management and people management. Finally, more so in the public
sector - as the pressures come from several fronts given the far reaching and wide spread
implications of the actions taken, leadership positions require a high level of courage and
endurance. Having strategic focus and energies aligned to achieving the results reinforces
the ability to cope under such pressures.
Conclusion
Let me conclude my remarks. The demands that leadership in the public sector entails is
immense. Such leadership is about delivering results and making a difference in the lives of
others. To achieve this, there needs to be a conscious need to reinvent ourselves to be able
to rise to the imperatives of duty to the nation. This reinvention involves leadership,
institutional and organisational capabilities to respond to the changes in the environment. It is
with these transformations that we are set to successfully lead.
While women are a growing force in the talent pool, the real power will be a shared power. It
will be women and men working together leveraging on each others comparative strengths,
experience and knowledge that will allow us to make the difference that best suits our
circumstances and that is able to bring us to the best level of performance and progress.