Issue.3 March 2010

EDITORIAL TEAM
Editor In Chief

Dato’ Abdul Aziz Abu Bakar
Contributors

Chow Sang Hoe, Ernst & Young
Professor Dr Daniel Quinn Mills, Harvard Business School

Professor Dr Didier Cossin, IMD International
Creative Designer

Poon Chin Chin, Perception Management
Photographer

Muhammad Hafiz Mahmood
Printing

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Malaysian Directors Academy (MINDA)
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ISSUE NO.3 - MARCH 2010

BoardView

FROM THE CEO’S DESK - pg2
PROGRAMME HIGHLIGHTS 2009/2010 - pg4
MINDA ALUMNI - pg17

FEATURED ARTICLES

THAT WAS THEN, THE FUNCTIONS AND CRISIS RISK THINKING
THIS IS NOW RESPONSIBILITIES
OF A BOARD By Professor Dr Didier Cossin
By Chow Sang Hoe IMD International
Ernst & Young Advisory Services Sdn Bhd By Professor Dr Daniel Quinn Mills Risk thinking used to be reserved for the
Back in January 2009, Ernst & Young Harvard Business School back office - not any more. The
published Opportunity in Adversity, an What is proper governance for a confusion and the impact of risk has
in-depth study into the issues executives business organization? increased dramatically, and those
faced as they dealt with the economic It is for the company to have an companies that have developed special
downturn. Using the concept of a stress executive team which manages and skills, flexibility and acumen, have gained
pendulum, we explained that companies administers the firm and a board of a terrific advantage.
can identify the right course of action to directors which helps the executive
take by mapping their location between team to build the business. pg12
cash flow and cash burn on the pendulum.
pg10
pg7

KDN PP16092/03/2010(023636)

2 FOREWORD

FROM THE CEO’S DESK

Welcome to the third edition of our newsletter. This is the IMD, leading discussions on the topic “Board’s Response to
first newsletter to be issued under the direction of the new Turbulent Times” and, our CEO Roundtable where Sir John
MINDA team, and I trust that you will notice the differences. Bond, Chairman of Vodafone spoke on “The Creation of a
Originally called MINDA Newsletter, the name change, we Global Company and Its Pitfalls – Leadership Matters”. We
feel, better reflects the objective and purpose of this opened 2010 with our first Breakfast Talk where we invited
newsletter. I am also pleased that BoardView has been Professor S. Young of Caux Roundtable and Professor D.
enhanced to carry articles directly relevant to MINDA’s Hunter of Minnesota State University to discuss “Moral
Roles and Mission, which the feature articles in this issue Foundation on Good Governance” in the context of 11
reflect. religions, with particular emphasis on Islam.

As you might be aware, I took over as Chief Executive We also recently launched our new Corporate Website and
Officer of MINDA on 1st October 2009. MINDA has updated Corporate Brochure by the Second Finance Minister
survived its incubation phase, and in my opinion passed with witnessed by the GLICs and GLCs Directors, as part of our
flying colours. Much was learned and valuable experience concerted efforts to create awareness and reach out to our
gained during these three years, and I trust that our Alumni GLC community. The Minister in his speech, encouraged
members have benefitted from all our programme offerings. MOF Inc companies to be part of MINDA’s extended target
market going forward. This is indeed good news for MINDA
However, it is now time to take MINDA to the next level, i.e. where the extension of our target market will add to the
providing engaging and stimulating programmes to boost the variety of MINDA programme offerings.
effectiveness and performance of Boards. I am excited to
have been appointed to lead MINDA for I believe this Another piece of good news is that we moved into our new
organization stands on the cusp of fulfilling its objective – to Plaza Sentral office, giving us finally
enhance Boards’ Effectiveness; which is possible given our a place to call home. So, do visit us
unique value propositions. at our new premises where we
have available a Director’s room
This newsletter was revamped as part of MINDA’s next step. and full accessibility to our wide
Learning does not stop when our participants leave the array of books relevant to Boards.
room; rather, it is a continuous process, and BoardView will And, last but not least, do visit or
be part of that process, through its relevant and insightful new website, www.minda.com.my
articles. and give us your valuable comments
and feedback.
Much has happened since the last newsletter; we had our
MINDA Board Forum in Langkawi where we had Professor I hope that you will enjoy this
Dr Q. Mills from Harvard and Professor Dr D. Cossin from inaugural issue of BoardView.

MINDA’S APPOINTMENTS 3

MINDA’S APPOINTMENTS

The Malaysian Directors Academy would like to make the following announcements pertaining to the structure of its Board of
Directors:

Appointments

The following persons have been appointed to the Board of Directors of the Malaysian Directors Academy:

Dato’ Abdul Aziz Bakar, Ms Shahnaz Al-Sadat bt.
as Director and Chief Tan Sri Sheikh Abdul
Executive Officer Mohsein, as Director
Dato’ Aziz is a veteran of the Human Resource
industry. His distinguished career includes Ms Shahnaz is an accountant by training, holding an MBA from
tenures at such notable multinational the IMD and certification as a CPA from the Malaysian
corporations as Shell, Telekom Malaysia and Institute of Certified Public Accountants, a CA from the
RHB Bank. Dato’ Aziz has initiated many changes Malaysian Institute of Accountants, a CIA from the Institute of
in his previous postings, revamping and Internal Auditors (United States of America), and an LLB
transforming HR practices for the benefit of the (Hons) from the University of Nottingham, United Kingdom.
staff. He has also spent 4 years working in Shell‘s
London office as a Shareholder Representative Ms Shahnaz is currently an Executive Director with Khazanah
for Hong Kong and China. Dato’ Aziz is an Nasional Berhad. Prior to this appointment, she was a
alumni of the Royal Military College and a Director and the Chief Financial Officer of Khazanah Nasional
graduate of Economics from Universiti of Malaya. Berhad, for the period 2004 – 2007. Preceding this position
was her 3 year tenure with Malaysia Airlines, where she
Dato’ Aziz joined MINDA as its Chief Executive served as General Manager, Internal Audit and as a member of
Officer on 1st October 2009. the Management Committee. She honed her considerable
skills in Arthur Andersen where she spent 9 years as Auditor
and Consultant.

MINDA extends a warm welcome to Dato’ Aziz and Ms Shahnaz. We are glad to have them on board and look
forward to their wealth of experience to bear on our operations.

Resignations The Board and management of
MINDA thank En Abdullah and Prof Dr
The following persons have resigned from the Board of Directors of Ulrich for their dedicated service
the Malaysian Directors Academy: during their tenure and wishes them
the best of luck for their future
undertakings.

En Abdullah Abdul Professor Dr Ulrich
Hamid, Director Steger, Director

3

4 PROGRAMME HIGHLIGHTS

PROGRAMME HIGHLIGHTS 2009/2010

PROGRAMME DESCRIPTION GALLERY

CEO Roundtable with Sir John Bond, the Chairman of Vodaphone Plc, was the guest
Sir John Bond speaker at MINDA’s 2009 CEO Roundtable, held at the
Mandarin Oriental in Kuala Lumpur. Sir John Bond has had 45
21 October 2009 years of experience in managing global financial institutions
Mandarin Oriental, Kuala Lumpur and has sat on the Boards of various global companies from
different industries, such as automotive and
telecommunications. It was this wisdom and experience that
Sir John Bond shared with the 21 participants, as well as
inviting questions and comments from the floor.
MINDA’s Roundtables are closed events designed to provide
close networking and knowledge sharing between MINDA,
Boards and the Guest speaker.

Directors Forum Held over a span of three days at the Sheraton in Pulau
Langkawi, the 2009 Directors Forum focused on the topic
22 – 25 November 2009 ‘Board’s Roles in Response to Turbulent Times’. The topic
Sheraton, Langkawi, Kedah was divided into 3 broad areas: Leadership, Finance and Risk
Management. The participants shared their experiences with
each other and also found the Forum to be a conducive
platform for the sharing of issues.
MINDA Directors Forums are open programmes for GLCs
which provide for facilitated learning backed by case studies.
Two-way learning is encouraged through interaction
between participants.

Breakfast Talk with Prof. Dr Durran Hunter & Dr Stephan Young were invited to
Prof. Dr Durran Hunter share with the audiences their views on moral foundations for
& Dr Stephan Young good governance. Around 30 GLCs Directors attended the
event. During the event, Prof. Hunter shared the basic theory
5 February 2010 of Neuroscience, Behavioral Generics, Phychology and
Mandarin Oriental, Kuala Lumpur Evolutionary biology with regard to guidance for good
governance. Dr Stephan Young gave examples of foundations
of good governance consistent with Qur’an fundamentals on
the concept of Khalifah, Amanah, Ijtihad and Shurah in doing
business.

CoSec Briefing 2010 The CoSec briefing is an annual session to update Company
Secretaries on MINDA’s progress and to share the
24 February 2010 Programme calendar for the year. MINDA CEO, Dato’ Abd
JW Marriott, Kuala Lumpur Aziz Bakar took the opportunity to conduct the session and
network with 22 Company Secretaries that attended the
Website & Brochure session.
Launch by Menteri The CoSec briefing is also intended to gather feedback and
Kewangan II suggestions for the improvement of MINDA’s programmes
and services.
24 February 2010
JW Marriott, Kuala Lumpur MINDA’s official website and brochure was launched by the
Menteri Kewangan II, Y.B. Dato’ Seri Ahmad Husni bin
Mohamad Hanadzlah. The event was attended by 156
GLIC/GLC Board members, other invitees and Company
Secretaries.
MINDA’s website was launched as part of MINDA’s
concerted efforts to create awareness and reach out to the
GLC community.
Please visit MINDA’s website at http://www.minda.com.my



6 FEATURED ARTICLE - ONE

In identifying a future leader, the following points also need In addition to having a good Leadership Framework, an
to be considered: effective & robust Performance Management System
coupled with a relevant Competency and Shared Value
Does the candidate have a strong business mind-set? corporate culture, need to be put in place. Using Key
Does the candidate display a passion for the Performance Indicators and Balanced Scorecards as part of
company’s customers? the strategy map, the system ideally should seek a way to
Does the candidate deliver excellent results? integrate the company’s business goals into the candidates’
Is the candidate a risk taker? personal goals.
How strong are the candidates motivation and
coaching abilities? At MINDA, we are involved in developing the skills,
Does the candidate think in a systematic manner? knowledge and mind-sets of the current set of Directors,
How strong is the candidates learning agility? and because Boards are facing the likelihood of having to find
Has the candidate experienced a joint venture their own successors, ensuring the supply of future
environment? Directors becomes an imperative. We believe that the best
Is the candidate excited by change and comfortable place to source these future Directors is from within the
with uncertainties? organisation’s Top Talent pool. A member of management
Is the candidate externally focused? that has been identified and groomed to lead the
And last but not least, does the candidate possess organization at Board level, somebody who has gone
‘Helicopter’ qualities ? through the stringent and robust processes, would be an
ideal “Timber” to lead future Boards to greater heights.

To deliver results, the organisation must be aligned and the levers are leadership (human system)
& structure / process (work system)…..

Organisational Business
Re-con guration Results

Structure

Culture Organisation Alignment

Leadership Process
& Talent

Business Process
Re-engineering

FEATURED ARTICLE - TWO 7

THAT WAS THEN, THIS IS NOW

By Chow Sang Hoe
Ernst & Young Advisory Services Sdn Bhd

That was then… Performance wheel

Back in January 2009, Ernst & Build yoRuerevbaulsuianteess flOexpibtiimlitiyzeof
Young published ‘Opportunity in stakeholders’ model operations
Adversity’, an in-depth study into confidence
the issues executives faced as
they dealt with the economic The
downturn. Performance

Using the concept of a stress pendulum, we explained that Enhance capital Wheel Strengthen
companies can identify the right course of action to take by and deployment management
mapping their location between cash flow and cash burn on
the pendulum. talent

stress pendulum Revitalise Broaden your
tmhaenwagaey ryiosku market reach

Cash flow Cash burn Accelerate
decision-making
and execution

AcqPuoisrittfioolniSouopoppplpiteiormrsittzauabntiliiiottyniesLiquiWdoitrykMianrmgkaectnaarpgietaeaslsmeessntment BusicnaepssitCuanloirtuecrslottrssuuurceptuerrivnigsion Insolvent The wheel is designed to help companies think about where
Cost reduction they should focus their management time and resources,
StakehADossilvdeeetrrsimtimtpuaraenirsamgeenmtent tressed based on the eight goals. Let me explain what these goals are.
Success Dis
1 Reevaluate your business model. Embed
Downturn Stressed innovation and constantly challenge your existing business models
against the new business environment. The market has changed,
In recent months, the market has begun to see modest and so must traditional business models. Companies are
recovery. Our interactions with clients suggested that a new revisiting their business models, particularly segment
performance agenda is emerging. However, this agenda will profitability and how their customer profiles have changed.
not be based on “business as usual”. Rather, the crisis has There is also an increased focus on core competencies. In
significantly altered many conventional business sectors such as asset management, insurance and parts of the
assumptions, practices as well as paradigms. banking industry, the key priorities also include improving risk
management, strengthening stakeholder confidence and
…this is now improving transparency.

Recognizing this, our new program ‘Lessons from Change’ 2 Optimize the flexibility of your operations.
seeks to help companies prepare for the rebound and more Improving the responsiveness and flexibility of the organization to
importantly, succeed in this new economy. Based on insights drive down cost, improve efficiency and adapt more quickly to
from our service partners and clients across the globe, changes in the market. Cost reduction may not be a sustainable
‘Lessons from Change’ highlights eight performance goals. strategy, but it remains a cornerstone of management
These goals form what we call the performance wheel. practice in most companies. In the short term, we have seen
companies take a number of immediate actions, mostly
relating to cost- cutting: cutting workforce, delaying programs

3

8 FEATURED ARTICLE - TWO

and reducing capacity. Looking forward, we believe that the recession is the increased need for detailed scenario
flexibility of operations is key, where companies can serve planning – i.e. developing contingency plans in case of
their markets profitably regardless of the changing disruption to business. The crisis has shown that many
environment. More companies are now seeking a flexible companies had gotten it wrong. The risk models were not
and nimble business model that can shift resources, people robust, the scope of assessment too narrow and infrequent.
and infrastructure without incurring significant costs or Companies need to move towards a risk framework that
causing organizational upheaval. includes strategic decision making as they consider the
unthinkable and work back from the worst case scenarios
3 Enhance capital availability and deployment. that could happen to the business.
Reflect the continued importance of cash and constricted funding
by enhancing the availability and deployment of capital for a more 7 Strengthen your management talent. Gain,
flexible and robust balance sheet. One area where we are retain and deploy a management team that is capable of
seeing many companies carrying out major reviews is in the addressing the complex market and organizational environment.
area of tax, both from a strategic and tactical viewpoint. There is growing recognition that, going forward, companies
Given that traditional funding may be constrained as banks will need new skills and new ways of deploying these skills.
recapitalize, a key objective is to enhance internal capital Companies need to ensure that they have the right talent to
where available. drive the new business models. We are seeing an increasing
trend in strategic hiring, where companies hire talent and
4 Broaden your market reach. Broaden your global skills from more entrepreneurial fields outside their sector.
market reach and product/service mix to exploit opportunities,
achieve optimum returns and mitigate risk. Whilst we are seeing 8 Build your stakeholders’ confidence. Regain
businesses act to focus on their core competencies, there and retain stakeholder confidence through transparency and
are also indications that companies are broadening their better communication on financial and nonfinancial performance.
customer base to tap into emerging opportunities. The Timely and transparent communication with stakeholders is
speed with which a company can take an existing product one of the keys to success, not just on financial reporting but
into a new market makes it a potential source of rapid increasingly, on areas of sustainability and governance. Even
short-term improvements. governments now recognize the need to step up in
communicating. The crisis has demonstrated just how
5 Accelerate your decision-making and important it is for both regulatory and business entities to
execution. Make and execute decisions more quickly to take inform that proper controls and high standards of
advantage of shorter windows of opportunity and respond more governance are in place.
quickly to adverse developments. A faster, more dynamic
market calls for decision-making that is closer to the market. In a wide reaching survey, we asked over 500 of our global
However, economies of scale, strategic intent and brand client service partners how their respective clients viewed
management require that this is balanced by appropriate the importance of these goals. The results showed that all
controls and processes. Few companies have yet to get this goals are relevant to all sectors but their relative importance
balance right, but it is a critical goal to aim for. varies depending on how the sector has been affected and
how companies are seeing their challenges. Nevertheless, all
6 Revitalize the way you manage risk. Identify the of these goals require attention. Typically, progress on all is
full risk complexity of the market and develop a strong control necessary for a company to optimize its competitive position.
framework for your business. What has become clear during

FEATURED ARTICLE - TWO 9

What is the impact on future performance of the Do we have the right information systems and
following goals? organizational structure to assess market opportunities
and respond quickly in implementation?
Performance goals Overall impact
on future Can we quantify, assess and manage critical risks in
order to make informed business decisions?
performance (%)
How do we assess and measure the outcome of the
Reevaluate your business model 76 multitude of projects that we have? Are we able to
track their progress and make them accountable to the
Optimize the flexibility of your operations 74 business bottom line?

Enhance capital availability and deployment 72 How can we ensure that our reporting and
communication with stakeholders evolve in response
Broaden your market reach 71 to business changes, new regulations and market
sentiment?
Accelerate your decision- making and execution 71
As the questions above have indicated, the starting point is a
Revitalize the way you manage risk 68 deep understanding of your market, a realistic assessment of
how it has changed and a clear understanding of future
Strengthen your management talent 68 trends. This will set the challenge for your company. Each
sector, even each company, will have a different set of
Build your stakeholders’ confidence 61 priorities. We believe that our performance wheel provides a
framework for you to identify YOUR priorities and set the
Source:“Lessons from Change”, EY whitepaper, 2009 agenda for action.

So how can this help you as a Board Member? Chow Sang Hoe is a Partner of Ernst & Young
Advisory Services Sdn. Bhd. He has more than 21
The key message from our research suggests that companies years experience in business advisory services,
should enter discussions with their management team to specializing in financial services. Chow has worked
identify which of these are key business issues, and what the with government organizations and private
priorities are moving forward. Suggested questions that enterprises on their corporate strategies and
companies can use in their brainstorming sessions with their business models as well as implementation of their
management team include the following: transformation.

How well did our strategy stand up to the downturn? The information contained in this article is intended to
What major changes have we made as a result? provide general guidance. It is not intended to replace the
specific advice which should be sought from an
When was the last time our company conducted a appropriate professional advisor before taking any
fundamental review of our strategy? Is it still fit for particular course of action. Neither Ernst & Young
the environment moving forward? Advisory Services Sdn. Bhd. nor any other member of the
global Ernst & Young organization can accept any
Which market(s) will be the most important for our responsibility for loss occasioned to any person acting or
growth in the short, mid and long term? How do our refraining from action as a result of any material in this
investment plans prioritize these markets? article. On any specific matter, reference should be made
to the appropriate advisor.
How does our cost base compare to industry
benchmarks? With competitors and new players?

What role do outsourcing/shared service centers play
in our operational strategy?

How can we use technology to boost our business
growth and enhance operational efficiencies?

10 FEATURED ARTICLE - THREE

THE FUNCTIONS AND
RESPONSIBILITIES OF A BOARD

Professor Dr Daniel Quinn Mills Finally, a board must always oversee the financial
Harvard Business School performance of the firm and evaluate the performance of its
executive leadership and the strategy of the firm. Where any
What is proper governance of these things is lacking, the board must insist that they be
for a business organization? rectified quickly, or the executive team replaced. This is very
difficult to do, a host of interpersonal and business matters
It is for the company to have intervening. But where there is inadequate performance, if a
an executive team which board cannot act effectively to rectify the matter, then board
manages and administers the members should leave.
firm and a board of
directors which helps the EXHIBIT 1 . THE FUNCTIONS OF A BOARD OF
executive team to build the DIRECTORS
business. There is
considerable responsibility To Help Build The Firm
in the actions of the firm’s To Help Finance The Firm
executives and the board To Provide Support For The Firm’s Executive
for the interests of stakeholders, so that both the executive Team
team and board are required to be composed of To Evaluate The Firm’s
knowledgeable and effective persons. Exhibit 1 presents the • Financial Performance,
key functions of a board of directors. • Leadership Performance, And
• Strategy
The board should contribute to the successful building of the
firm. This is not solely the responsibility of the executive In Asia boards are frequently composed of people who are
team but instead extends to the board. Similarly, financing not expected to help build the firm nor to help make
the firm (especially where it is growing and moving into new decisions, but instead are expected to oversee that the
markets) is not solely the responsibility of the executive administration of the firm operates within regulations
team, but also that of the board. Supporting the executive established by the government. This is fine so far as it goes,
team so that it can do a better job of managing, financing and but a major opportunity is lost for the board to help build the
growing the firm is a critical responsibility of the board. business.
Sometimes boards and board members get themselves into
conflicts with top executives of a firm. These conflicts may The contributions that a properly constituted board can
have their origins in disputes over policies and actions of the make to a firm which is trying to grow and expand in the
firm; but may also have their origins in personality conflicts. world economy are several. It should help generally in
Often the conflicts come to involve both policy and building and sustaining the firm, as we discussed above. In
personality issues. Sometimes these conflicts continue over particular, the board should support the company’s
long periods, sapping the effectiveness of the executive team executives wherever and whenever needed. It should help
and the board. raise money for the firm if necessary and oversee the finances

Where there is a conflict of this nature, it should be resolved
quickly. Either the executive team should be replaced, or it
should stay and the board or board members should be
replaced. Without confidence and cooperation between
executives and the board, a company is likely to stagnate and
become prey to its competitors.



12 FEATURED ARTICLE - FOUR

CRISIS RISK THINKING

By Professor Dr Didier Cossin
IMD International

Risk thinking used to be today’s world, nothing should surprise us anymore. We need
reserved for the back office to open our minds to new risks, to all risks, and somehow
- not any more. The prepare ourselves for them. While preparation can never
confusion and the impact of fully prepare an organization for the actual risks, it still helps
risk has increased frame the mind, the organization and the network so that
dramatically, and those those prepared can react faster, better and stronger.
companies that have
developed special skills, Threats and opportunities may come from many different
flexibility and acumen, have sources. For example, the bankers’ traditional view of risk
gained a terrific advantage. residing in markets, credit or operations has been blown to
pieces (and the Basel II Accord is certainly threatened).
We find that best practices Suddenly, risks are converging, interconnecting and
are aligned along the complexifiying each other. Supply of capital, disruption of
markets, volatility of values address at once the credit side,
following four dimensions: the market side and the operations of banks. Thus, we cannot
rely on our old estimates. Instead, we must put the plan on
1 Physical health check – What are we exposed to? the drawing board again. For this, we suggest the following
2 Mental health check – Are we capturing the right four-step process for technical risk mastery:

problems? 1 Identify your Risks
3 Strategic check – Are we doing the right moves?
4 Governance check – Are we well structured for Identifying risks is too important to be left to a bottom up
approach. Your employees – whether it is a single person or
continued awareness? a single department – will often miss the big picture. The view
of the top level of management must be fed by bottom up of
Slippage on any one of the four dimensions may doom a reporting (with open lines of communication in the
company to failure or underperformance. When times were corporation).
good, underperformance was often acceptable because
everybody was doing well. In today’s tough times,
underperformance is no longer acceptable.

In the following paragraphs, we discuss, in more detail, the One well-known company, when they started risk reporting
four dimensions critical to maintaining adequate risk fitness. to their board, decided to conduct a large survey, which
It is important that corporations focus on all four dimensions involved most employees. They then compiled the data and
to ensure success. reported their findings to the board. The major risk – i.e. the
one that was consistently rated as having high impact on each
The Physical Health Check: Technical Risks and every employee – was VAT compliance, which was
hardly a major corporate risk. Thus, the compilation of
First and foremost, a physical health check is necessary. By individual employees’ views of major risk, without the benefit
now, every firm should be aware of where it hurts. Ideally, of top-management’s view, may not result in a good view of
they will also be aware of where its major clients and risk for the whole corporation. However, the bottom up
suppliers are feeling pain. We are puzzled by companies that approach and listening to different viewpoints is still
are almost surprised when they encounter difficulties. In important as the following example illustrates. In April 2007,





FEATURED ARTICLE - FOUR 15

Strategic Check B. Smart or stupid? Once the move is well identified (and this
can be done for clients and suppliers as well), one needs to
As major shifts happen, strategies need to be revisited. Holding question it. Is the strategy smart? Overall, smart moves will:
on to past strategies does not make sense. But developing new
strategies, or adjusting passively to the markets, is not much 1 Lever the company’s distinctiveness, i.e. its objectives,
better. While strategic thinking is complex, and the building of
strategies requires much work - from client and competitor values, culture and capabilities, in terms of skills and
awareness to abilities to build on one’s core distinctiveness - resources, and its resources, in terms of assets, clients
there are ways to test overall strategic choices for their and partners.
pertinence. The question we ask is simple: Is your strategy shift
a smart move? 2 Not fall into psychological traps, such as we can beat

A. Typical strategies: There are a limited number of typical the competition no matter what we do; we know what
strategies. Using Paul Strebel’s framework, all big moves can be the customer needs or we never admit defeat; we
classified into five categories:1 always move forward.

1 Going for growth: which happens when you roll out a 3 Address significant market opportunities.

2 product for example. First, assess the strategy and the move considered. Then
Restoring profitability, as when a company needs confront competitors’ moves, customers’ needs and value chain
opportunities. Then use change management techniques
restructuring. together with quality leadership, align the organization towards
the newly defined goal and consistently drive success. Of
3 Finding a new game, when a company attempts to course, even smart strategies can fail: The environment can
change, the competitors can move unexpectedly, etc. Then
reinvent oneself. comes the need to possibly align again, revisiting all previous
risks. High quality leaders will recognize this. But, of course,
4 Relaunching growth, when a company levers its mistakes can also be made at the leadership level. This takes us
to our next and last level of risk, governance.
distinctiveness to differentiate itself from competitors or
Governance Check
substitutes.
Leaders fail. It happens. It is not the worst problem by itself.
5 Realignment, when a company realigns its value Leaders are human and while the selection process may be
rigorous, good leaders in some circumstances may prove to be
proposition to its customers through a revised value bad leaders in others. The problem comes when a failing leader
is in place for too long. This is where governance risk happens.
chain with capability development, for example with In order to control for that risk, governance rules need to apply.
Not to constrain but simply as a matter of fact, to make sure
process efficiency. that leadership failure, when it happens, does not become too
costly to the organization. There are some well-known
governance risk factors that can be self-checked in any
organization. In particular, classic risk factors include:

1 A poorly defined role of the board
A domineering CEO
2

3 An inefficient board: size, independence,

personalities, the role of outsiders, the structure of

the board committees, all matter

1 Strebel, P. and Ohlsson, A.V., Smart Big Moves: A Story of Strategic Breakthroughs. Harlow: FT Prentice Hall, 2008.

3





18 ALUMNI LIST

NO NAME COMPANY PROGRAMME
34 Hassan Jaafar PLUS Expressway Bhd KNB ND Programme 2007 / KNB ND Programme 2008 /
MINDA Directors Forum 2009
35 Hiroyuki Kudo CIMB Group
36 Idham bin Ismail Khazanah Nasional Berhad MINDA Directors Forum 2009
37 Ismael Fariz Ali Khazanah Nasional Berhad KNB ND Programme 2008
38 Izlan bin Izhab Malaysia Airport Holdings Berhad Programme for Building High Performance Directors 2007
39 Jamilah Hashim Khazanah Nasional Bhd KNB ND Programme 2007
40 K. Ravindran PLUS Expressway Berhad KNB ND Programme 2007 / KNB ND Programme 2008
41 Kamarulzaman Mohamed Zin Khazanah Nasional Berhad MINDA Directors Forum 2009
Programme for Building High Performance Directors 2008
42 Khairil Anuar Abdullah Apollo Hospitals Enterprise Limited / KNB ND Programme 2008
43 Khairuddin Ahmad RHB Bank Berhad
44 Lau Tiang Hua Malaysia Building Society Berhad KNB ND Programme 2007
45 Lau Yin Pin Tenaga Nasional Berhad Programme for Building High Performance Directors 2007
46 Lim Kheng Guan Telekom Malaysia Berhad Programme for Building High Performance Directors 2007
47 Lodin Wok Kamaruddin Boustead Holdings Berhad Chairman’s Forum 2008
48 Mat Rabi Abu Samah Langkawi Tuna Corporation Berhad Programme for Building High Performance Directors 2007
49 May Quah Bee Fong Khazanah Nasional Berhad Chairman’s Forum 2008
50 Md Ali Md Dewal PT Bank Lippo Tbk KNB ND Programme 2007
51 Md Anwar Md Nor Lembaga Tabung Angkatan Tentera KNB ND Programme 2008
52 Md Nor Md Yusof Bumiputra-Commerce Holdings Berhad KNB ND Programme 2007 / Chairman’s Forum 2008
53 Michael Jude Fernandez Khazanah Nasional Berhad Chairman’s Forum 2007
54 Michelle Lim KNB ND Programme 2007
55 Mohamad Hashim Ahmad Tajudin Khazanah Nasional Berhad MINDA Directors Forum 2009
Chemical Company of Malaysia Berhad KNB ND Programme 2008
Programme for Building High Performance Directror 2007
56 Mohamad Hashim bin Ahmad Tajudin Chemical Company of Malaysia Berhad / Chairman's Forum 2008

57 Mohamed Arif Nun Silterra Malaysia Sdn Bhd Programme for Building High Performance Directors 2007 /
Chairman’s Forum 2008
58 Mohamed Azman Yahya Pharmaniaga Bhd
KNB ND Programme 2007 / Chairman’s Forum 2008 /
59 Mohamed Khatib bin Abdul Hamid Pantai Holdings Berhad KNB ND Programme 2008

60 Mohamed Zain bin Mohamed Yusof Faber Group Berhad KNB ND Programme 2007 / Chairman’s Forum 2008
KNB ND Programme 2007/ Chairman’s Forum 2007 /
61 Mohammad Zainal Shaari Khazanah Nasional Bhd Programme for Building High Performance Directors 2008 /
Chairman’s Forum 2008 / KNB ND Programme 2008
62 Mohan Rajasooria Khazanah Nasional Bhd
Programme for Building High Performance Directors 2008
63 Mohd Azlan Hashim Proton Holdings Berhad KNB ND Programme 2007
KNB ND Programme 2007
64 Mohd Izani Ashari Khazanah Nasional Berhad Chairman’s Forum 2007
MINDA Directors Forum 2009

ALUMNI LIST 19

NO NAME COMPANY PROGRAMME
65 Mohd Nadziruddin Mohd Basri Khazanah Nasional Bhd KNB ND Programme / Programme for Building High
Performance Directors 2008
66 Mohd Radzi Hj Mansor Telekom Malaysia Berhad Chairman’s Forum
67 Mohd Rafik Shah Mohamad Langkawi Tuna Corporation Berhad KNB ND Programme 2007
68 Mohd Sheriff bin Mohd Kassim PLUS Expressway Bhd KNB ND Programme 2007, KNB ND Programme 2008,
Chairman’s Forum 2008
69 Mohd Shukri Hussin Bumiputra-Commerce Holdings Berhad
70 Mohd Yusof Hussian Bumiputra-Commerce Holdings Berhad Chairman’s Forum 2008
71 Mohd Zuki Hj Kamaluddin Island & Peninsular Bhd Programme for Building High Performance Directors 2007
72 Muhamad Fuad bin Abdullah Island & Peninsular Bhd Chairman’s Forum 2007
73 Muhammad Rais Abdul Karim Malaysian Directors Academy (MINDA) Programme for Building High Performance Directors 2008
74 Nasution Mohamed Penerbangan Nasional Bhd Chairman’s Forum 2008
75 Noorizah binti Hj. Abd Hamid PLUS Expressway Berhad KNB ND Programme 2007
76 Oh Kim Sun Pharmaniaga Bhd MINDA Directors Forum 2009
77 Ong King How Khazanah Nasional Berhad Chairman’s Forum 2008
78 Raja Arshad Raja Tun Uda Asia Capital Reinsurence Sdn Bhd KNB ND Programme 2008
KNB ND Programme 2007 / Chairman’s Forum 2007 /
79 Rosenah Mohd Hassan Selat Tebrau Sdn. Bhd. KNB ND Programme 2008
80 Roslan A. Ghaffar Malaysia Resources Corporation Berhad
KNB ND Programme 2008
81 Rosli Sharif Faber Group Berhad Programme for Building High Performance Directors 2007
Programme for Building High Performance Directors 2008
82 Rozana Makhzan Biotrophics Malaysia Berhad KNB ND Programme 2008
83 Samsudin Osman BIMB Holdings Berhad Chairman’s Forum 2007
KNB ND Programme 2007
84 Shahazwan Harris Khazanah Nasional Bhd KNB ND Programme 2007 / MINDA Directors Forum 2009
KNB ND Programme 2007
85 Shahnaz Al-Sadat binti Abdul Mohsein Khazanah Nasional Bhd / UEM Group KNB ND Programme 2008
KNB ND Programme 2008
86 Shahridan Faiez Mohideen Abdul Kader Khazanah Nasional Berhad KNB ND Programme 2008
Programme for Building High Performance Directors 2007
87 Shasidharan A/L Prapakaran Khazanah Nasional Berhad Programme for Building High Performance Directors 2008
Chairman’s Forum 2007
88 Sufyan Abdul Jabbar Khazanah Nasional Berhad KNB ND Programme 2007

89 Suriaghandi a/l Suppiah Khazanah Nasional Berhad KNB ND Programme 2007
KNB ND Programme 2007
90 Syed Muhamad bin Syed Abdul Kadir Bumiputra-Commerce Holdings Berhad KNB ND Programme 2007, KNB ND Programme 2008

91 Syed Saleh Syed Abdul Rahman Lembaga Tabung Haji Programme for Building High Performance Directors 2008
92 Tan Poh Keat Telekom Malaysia Berhad Programme for Building High Performance Directors 2008

93 Tunku Mahmood Fawzy Tunku Khazanah Nasional Bhd
Muhiyiddin

94 Wan Muhamad bin Wan Ibrahim TIME dot Com
95 Yeo Keng Un Khazanah Nasional Bhd
96 Yeoh Keat Seng Malaysian Technology Development
Corporation Sdn Bhd, Biotrophics
Malaysia Berhad

97 Zainal Abidin Alias Faber Group Berhad

98 Zainal Azwar bin Zainal Aminuddin TH Plantation Berhad