Accelerating a digital economy is no longer just an option but a must. The United Nations reported that digital technologies have reached 50% of the developing world’s population and helped transform societies. Meanwhile, the paper “The Role of the Digital Economy in Rebuilding and Maintaining Social Governance Mechanisms” suggests that digitization improves society at all levels, from the automation of businesses to new opportunities to human behavior and social relationships, especially interactions between governments and citizens.
Malaysia is not an exception. The COVID-19 pandemic forced traditional brick-and-mortar businesses to pivot online, and millions of Malaysians followed. This is evident in their shopping, entertainment, and education needs.
The digital economy has been identified as a key economic growth area (KEGA) in realizing the Shared Prosperity Vision 2030, a blueprint released in 2020 by the government. It reflects the aspiration of making Malaysia a country that develops sustainably while achieving equitable economic distribution and inclusive growth. According to the Shared Prosperity Vision 2030, Malaysia should have clear policies and raise awareness on enabling citizens to adapt to the future economy instead of leaving them as mere consumers. Hence, MyDIGITAL was launched.
MyDIGITAL is a national initiative that epitomizes the government’s aspirations to successfully transform Malaysia into a digitally-driven, high-income nation and a regional leader in the digital economy. MyDIGITAL’s three goals are to inspire decision-makers to become creators, users, and adopters of innovative business models; use human capital to flourish in the digital economy; and cultivate a consolidated ecosystem that empowers society to embrace the digital economy. To meet these objectives, six strategic thrusts have been identified:
Drive digital transformation in the public sector.This can be accomplished by leveraging digital technologies, data, and digital intelligence, improving public servants’ digital skill sets, and enhancing the quality of online services. By the end of the year, the goal is for all ministries and agencies to provide cashless payment options and 80 percent cloud storage across the government. In the short term, transforming the Administrative Modernization and Management Planning Unit (MAMPU) will fuel digitalization and adapt to emerging digital technologies.
Boost economic competitivenessby accelerating digital adoption, empowering digital management, and shaping emerging business models through digitalization. Businesses that embrace technology and build on the digital economy will generate value and thrive as the economy transforms. The goal is to have Malaysian industries be powered by innovative ideas and models. With economic growth led by local entrepreneurs, the focus will be on productivity and improving livelihoods. This will bring in new industry players, resulting in a more vibrant and innovative economy.
Establish enabling digital infrastructure to help individuals participate in the digital economy. Through a conducive digital environment provided by seamless and extensive digital connectivity, the government and businesses will be able to operate with ease and continuously innovate. Malaysia has made significant progress in improving the state and coverage of such key infrastructure. Broadband, data centers, and submarine cable landing stations are among the digital infrastructures targeted by this thrust. These infrastructures enable data generation, flow, exchange, consumption, and storage.
Build agile and competent digital talentto ensure that digitalization is successfully embedded across talent development, various levels of education, and the upskilling and reskilling of the existing workforce. The key challenge for Malaysians as job requirements change and new jobs surface is to acquire the necessary skills to remain relevant. To thrive in the evolving digital economy, current and future workforces should be well-equipped with digital skills.
Create an inclusive digital society to bridge the digital divide and ensure that everyone benefits from the digital economy. There are numerous government initiatives and programs in place to improve the well-being of society. However, a digital divide persists across income, strata, age, gender, and skill sets. To create a digitally responsible society, ethical behavior in the use of digital technology will be prioritized. This will be expressed through the improvement of safety and ethics in digital activities and transactions and through cybersecurity. For instance, companies can leverage existing initiatives, such as the Information Security Governance, Risk & Compliance Health Check Assessment.
Establish a trusted, secure, and ethical digital environment that allows businesses and society to fully reap the benefits of digital services without jeopardizing safety, data security, privacy, dependability, or ethical standards. The development of a holistic ecosystem is required, and this may involve a regulatory framework and cyber security capabilities to prevent threats or breaches that can disrupt the digital economy.
Twenty-two strategies, 48 national initiatives, and 28 sectoral initiatives support these strategic thrusts. Phase 1 began in 2021 and will last until 2022, when the foundation for digital adoption will be strengthened. In Phase 2 (2023-2025), inclusive digital transformation will be prioritized, and Phase 3 (from 2026 to 2030) will position Malaysia as a regional leader in digital content and cyber security.
MyDIGITAL’s mission is to ensure that all Malaysians benefit from the opportunities of the digital revolution. To realize this, active participation from strong partnerships and between all stakeholders are necessary. With MyDIGITAL’s implementation, the rakyat’s standard of living and well-being are expected to improve, businesses will be able to optimize resources and expand their operations and market, and the government will be able to provide more efficient and effective services.
The COVID-19 pandemic has forever altered how organizations around the world operate. In the IBM Institute for Business Value’s study “COVID-19 and the future of business Executive epiphanies reveal post-pandemic opportunities,” 55 percent of respondents say the pandemic has resulted in “permanent changes to their organizational strategy.” An even larger 60 percent say COVID-19 has “adjusted their approach to change management” and “accelerated process automation,” with 64 percent acknowledging a shift to more cloud-based business activities.
In planning, one of the most important aspects organizations nowadays must tackle is workplace strategy. According to Gallup’s most recent survey on what employees want going forward, five in 10 say they want hybrid work arrangements for the future. For organizations worldwide, this means planning and managing moves to hybrid work environments.
What is a hybrid work strategy?
Hybrid working environments are the out-turn of the COVID-19 pandemic and refer to corporate arrangements by which some employees operate on-site while others work from home. The manifestation of more flexible working conditions in times of the COVID-19 pandemic has shifted employee expectations and desires greatly as far as the perceived benefits of in-person work. Consequently, organizations who do not embrace remote working conditions as part of their overall short-term and long-term workplace strategy may be at an increased risk of employee turnover, disengagement, and inability to attract and retain talent in the future.
Crafting the hybrid work strategy
One of the main aspects organizations must understand about hybrids is that there is no standard approach to it. Short-term planning will most likely imply experimenting with working schedules and juggling on-site and remote working arrangements to find the best fit for the organization. As for long-term planning, organizations will have to agree on their strategic position regarding a hybrid working model and relate it to their specific organizational context. A strategy plan that embraces the future outlook of a hybrid working environment should therefore consider the following:
The overall strategic position of the organization towards hybrid working as well as the development of internal policies and procedures to support that position;
A communication plan to share the organization’s hybrid working model with all employees and other stakeholders of the organization;
An approach to the adoption and dissemination of new technology as well as reviewing existing systems and equipment for updates and renewal;
A plan to put in place the necessary security measures that ensure system integrity and data protection;
A training and development plan for managers to enhance their skills in effectively coordinating remote individuals and teams; for employees to understand the operational and legal implications of hybrid working
Performance management as part of the hybrid work strategy
As part of a hybrid work strategy, organizations generally have to adapt to increased remote working requirements. In this context, performance may become harder to observe, and managers will ultimately have to admit that they can no longer monitor every aspect of performance, nor should it be necessary for them to do so. Planning for a hybrid strategy would therefore have to consider the following:
The re-configuration and re-design of the performance management system and processes to fit the purpose of a remote working environment;
A shared organizational culture that embraces flexibility encourages presenteeism and stimulates the right remote working approaches and behaviors;
The re-shaping of managerial skill and aptitude to manage performance based on outcomes, contribution, and value;
Principles of communication that promote regular social and human connection opportunities to support employee engagement and team building
Measures introduced to ensure staff safety in the workplace
In terms of physical working place, many organizations may feel the need to proceed in a cautious wait-and-see mode while taking active steps to increase the safety of their working environments and ensure the well-being of their employees. Some straightforward actions in this respect can refer to the following:
Altering working space layouts by moving workstations apart and having employees work back-to-back or side-to-side (rather than face-to-face);
Staggering shifts – having employees start and finish work at different times – or staggering break times as a way of reducing the number of people in the workplace or taking breaks at any one time;
Reducing the number of meetings or the duration of such meetings as a temporary measure to maintain social distancing
Short-term vs. long-term hybrid strategy
The last question one has to answer here is: “Does our organization plan for a short-term hybrid strategy or a long-term one?”. When planning a hybrid strategy short-term, an organization must absolutely think “workplace value proposition.” This involves the benefits employees have for returning to on-site work. It’s quite clear that pointing to job requirements as the primary reason employees must return to the office will not work. In this context, organizations may need to focus on the distinct opportunities that an on-site environment creates as opposed to a remote one and find the best way to effectively communicate them.
When planning for a hybrid strategy long-term, executives have already accepted that pandemic-related changes in strategy, management, operations, and budgetary priorities are here to stay. These are generally organizations with an international structure with employees working from different parts of the world, companies that operate through digital tech and cloud adoptions, and entities that are more project-based and service oriented, rather than product-based with intricate supply-chain networks.
So when adopting a hybrid working model and strategy, it is mainly important that one considers the organization itself, the roles that meet remote work criteria, the interdependency level of team members, and individual comfort with work from home conditions and protocols.
References:
CIPD (2021), Planning for Hybrid Working, Advice on how organizations can plan and manage a move to hybrid working. Available at: Planning for hybrid working | CIPD
IBM Institute for Business Value (2020), COVID-19 and the future of business Executive epiphanies reveal post-pandemic opportunities. Available at: COVID-19 and the future of business (ibm.com)
The restaurant industry was hit hard by the pandemic. It has to manage many changes, and the most challenging one is retaining talent. According to the National Restaurant Association’s State of the Restaurant Industry (2022) report, more than one million jobs in the hospitality and restaurant industries remain unfilled, and 78 percent of restaurant operators lack the staff to meet customer demand. Data also shows that three out of every four employees intend to quit their jobs within the next year.
In order to mitigate talent management concerns, Chipotle, an American fast-casual restaurant chain with a presence in the United Kingdom, Canada, Germany, and France, developed new strategies and launched programs that are focused on meeting employee expectations and boosting employee experience.
Retention strategies
Chipotle’s benefits program, Cultivate Me, provides its employees with a best-in-class benefits and perks package. It includes bonuses (annual and quarterly), education assistance and debt-free degrees, free meals (one free meal per day), paid time off, assistance program (free access to counselling), 401(k) retirement savings, healthcare services and advocacy, and benefits in Chipotle partners (discounts in big brands and gyms).
Observing that the turnover rate raised continually in the industry, Chipotle launched learning and upskilling programs. Employees are given multiple options, ranging from high school diploma programs and college classes to courses teaching high-end computer networking skills. The company also introduced a mentoring program for future executives.
Another initiative to boost employee retention was asking employees about the tasks they want automated. The restaurant chain started its automation efforts by developing together with Miso Robotics an autonomous kitchen assistant that makes tortilla chips. The robot called Chippy is already being tested and is soon to be integrated into restaurants, leaving employees to focus on more important tasks. The company also started implementing a new digital scheduling program and upgrading its learning portal. As stated by Brian Niccol, CEO of Chipotle for QSR magazine, the brand’s automatization’s radar scans for those “jobs people don’t love doing.”
The restaurant chain also launched a new Learning Management System, the Spice Hub, where restaurant employees can enhance their skills through gamification, social learning, personalized learning paths, and instructor-led training.
Chipotle ended 2021 in need of 20,000 employees, who should fill its 200 restaurants. Like most of its competitors, Chipotle raised wages as the first step in employee attraction. But that is an initiative that only makes the company keep up with the market. Since the entire restaurant industry is struggling, Chipotle needed to do something more for its employees. That is how Chipotle promotes its differentiator: equitable access to education and mobility.
Chipotle partnered with Guild Education, a private company that helps companies manage their education assistance benefits, to carry out a national Back-to-School campaign. It aims to attract and maintain interest in school for those employees that can either balance work and online schooling or decide to follow a path of on-campus education. Leveraging its educational benefits in the national campaign, Chipotle’s recruiting team has received 7,500 total applications.
Evaluating employee performance
Broadly, an employee’s performance is periodically evaluated by a representative of the company. The evaluation should result in new goals for improvement and rewards for desirable results.
Chipotle replaced its annual performance review with more regular review sessions. Its performance review now comprises at least four meetings per year. During these sessions, managers ask employees four questions. The so-called 4×4 conversation contains the following questions:
What are your most significant accomplishments since we last met?
What are the most important things you will focus on before meeting next?
What obstacles are you encountering right now?
What can I do better or differently as your manager to support you?
This type of review and the questions themselves consider the employee as the owner of the evaluation. Employees give feedback to the company and challenge themselves with new objectives.
The employees’ performance can be acknowledged through benefits, recognition, compensation, and rewards. Since the beginning, Chipotle has rewarded its employees with prizes. If prior, the employees were rewarded with free menu entrees, now, Chipotle employees can win multiple Chipotle goods and a variety of discounts from Chipotle Partners.
As a result of all Chipotle restaurant chain’s efforts to retain employees in 2021, they managed to:
Internally promote 90% of restaurant management roles
Promote almost 19,000 team members
Offer free and confidential Employee Assistance Program (EAP) services to all Chipotle Employees in need of mental and emotional support
Achieve a Human Rights Campaign Corporate Equality Index score of 100
Establish an inclusive, award-winning culture
At Chipotle, the company’s values have been agreed upon altogether with employees. The leadership team defined an initial set of values that were later discussed with employees. The fact that the leadership team involved all employees in such a decision empowers them and increases their loyalty.
Culture is from the beginning communicated and present in all interactions inside a team. One of the first ingredients of culture reinforcement is investing in people. Increasing communication within all organizational levels and enhancing collaboration can strengthen teams, leading to an increased retention level and a high-performance culture.
“The pandemic and its impact on tourism, jobs, and revenues offer an unprecedented reminder of the need to rebalance our relationship with people, planet, and prosperity. The green transformation of the sector is needed, not just for the planet, but also for tourism itself, boosting competitiveness and increasing resilience.” – UNWTO Secretary-General Zurab Pololikashvili
While the world is seeking to adapt to the “new normal” set by an ongoing pandemic, the future of the tourism industry remains highly uncertain. According to the UNWTO World Tourism Barometer released in January 2022, global tourism registered an increase of 4% in 2021, with 15 million more international tourist arrivals compared to 2020. Still, these levels remain 72% below the pre-pandemic year 2019. Meanwhile, the latest UNWTO Panel of Experts survey reveals that most experts (64%) agree that international tourism will not reach the 2019 levels until 2024 or later.
Beyond the economic and social disruption, the pandemic crisis has disclosed existing structural weaknesses in the tourism sector, along with breaches in governmental and industry preparedness or response capabilities. Fragmented sectors and differences in the nature of tourism; seasonality; consumption of natural resources; impacts on climate change; and relative importance of tourism in the economy are only some of the shortcomings, as shown by the OECD Tourism Paper in 2021.
Moreover, recent studies indicate that the demand for tourism is undergoing significant behavioral changes towards more sustainable travel patterns that were amplified by the pandemic. For instance, a 2021 Eurobarometer survey showed that 82% of European citizens are inclined to include more sustainable practices in their travel habits, such as consuming locally sourced products, reducing waste and water consumption, traveling off-season or to less-visited destinations, and choosing transport alternatives based on their ecological impact. These results are supported by another survey conducted by Booking.com across 30 countries worldwide that gathered insights from 29,000 travelers. Seventy-three percent of the participants in the survey would be more likely to choose an accommodation if it has implemented sustainability practices.
Such studies prove that there is an increasing need for developing more sustainable and resilient models of tourism, supported by policymakers and service providers. In other words, a change of paradigm is needed, and green transformation policies and strategies seem to be the approach that will bring resilience and balance between “the needs of people, planet, and prosperity” in the tourism ecosystem.
The role of green transformation in sustainable industry recovery
Green transformation is not a new concept for the world economy, and it emerged as a trend in the tourism industry even before the pandemic. In a broad sense, the concept refers to “combining economic growth with caring about the environment to guarantee a high quality of life for present and future generations, at the level which is attainable due to civilizational development, as well as to an effective and rational use of the available resources” (Cheba et al., 2022, p.1).
In particular, green transformation involves an integrated approach that relies on combining legal regulations, innovative technologies, strategies, and clear initiatives to create sustainable and environmentally friendly markets. As the pandemic hastened the call for a green transformation in tourism, worldwide organizations and policymakers are planning strategies, key actions, and targets to achieve long-term competitiveness and sector recovery.
There is a general consensus that the industry must continue to build digital skills, implement digital solutions, create sustainable infrastructure, and address sustainable travel patterns. In early 2022, the European Commission’s Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs released the Transition Pathway for Tourism, a report that introduces a set of strategy recommendations for the tourism ecosystem, based on the objectives of the European Green Deal. Within this report, the European Commission refers to the “tourism ecosystem” as businesses that work in sectors such as food and beverage services, on-line information and services providers (tourist offices, digital platforms, travel technology providers), travel agents and tour operators, accommodation suppliers, destination management, attractions and passenger transport (pg. 2).
Some of the key strategies and their related targets are as follows:
Passenger transport companies (aviation, water, and land transport) should reduce Greenhouse Gasses (GHG) to become climate neutral by 2050.
European cities and regions should develop sustainable mobility for climate-neutral cities, by implementing mobility plans and by doubling the high-speed rail traffic by 2030.
Buildings have to become more energy and resource-efficient, and energy support must move towards sustainable renewables.
Hospitality and all tourism services should implement circular models and diminish their environmental footprint. This includes reducing by half the amount of non-recycled waste by 2030 and lower food waste, single-use plastics, air pollutants, and water pollution while increasing water efficiency.
Each destination or tourism service provider should build their communication strategy on transparency towards sustainability and environmental footprint, thus guiding and empowering consumers’ choices.
Furthermore, the World Tourism Organization considers that “transforming tourism operations for climate action continues to be of utmost importance for the sector to remain in line with the international goals.” To support that, three main goals and actionable ways for their achievement were introduced in the Recommendations for the transition to a green travel and tourism economy:monitor and report CO2 emissions from tourism operations; accelerate the decarbonization of tourism operations; and engage the tourism sector in carbon removal.
Green transformation strategies in practice
Around the world, different practices of strategy planning and ongoing actions stand as evidence for the shift to a green travel and tourism economy as a roadmap for sustainable and resilient growth.
In the recovery from COVID-19, Kyoto (Japan), “a city where history and culture give rise to hope,” reconfigured its urban development and tourism strategy in 2021. The recovery strategy aims to develop the city as a higher-quality destination for both residents and tourists while supporting the Sustainable Development Goals (SDGs) recommended by the United Nations.
Harmony between the life of residents and tourism, allowing the local populace to feel enriched
All actors are involved in refining the “light of Kyoto” and improving tourism quality.
Tourism industry leaders become more active, and entrepreneurship of new businesses in the fields of tourism and culture flourish, contributing to improve the vitality of the city and cultural inheritance
Ensuring flexible, strong, safe, secure and environmentally sustainable tourism that can cope with various crises, such as infectious diseases and disasters
Establishing the city’s credentials as an attractive MICE city, welcoming people from all over the world, recognizing diversity, and contributing to world peace
Measuring the progress towards achieving their vision is ensured by key performance indicators set for each of the five goals, which are meant to be evaluated on a regular basis. Several examples of KPIs included in the strategy plan are as follows:
% Full-time employment in the tourism sector
% Satisfaction level of tourism workers
% Tourism businesses whose products and unit prices have increased
% Tourism businesses contributing to the local community
% Tourism businesses that take into consideration the environment
# International conferences held
One distinctive feature of the Kyoto strategy is the Code of Conduct for Sustainable Tourism in Kyoto (Kyoto Tourism Morals), which aims to provide “guidelines for the tourism industry and its workers, tourists, and residents to work together in united efforts to maintain harmony in Kyoto, and to preserve Kyoto for future generations.”
“Rebuilding tourism is also an opportunity for transformation with a focus on leveraging its impact on destinations visited and building more resilient communities and businesses through innovation, digitalization, sustainability, and partnerships.” – 2020 Tourism Policy Brief, United Nations
This article originally appeared in the 23rd PERFORMANCE Magazine – Printed Edition. Download your free copy from TKI Marketplace or get one in print via Amazon.
Compared to previous decades, the world has more innovative and safer cities that take better care of their citizens. A smart city represents an area that uses information and communication technology (ICT) to enhance administrative performance, disseminate information to the public, and boost the standard of services and the welfare of residents. A 2022 study reports that between 2000 and 2016, there was a global decline in the number of deaths from lower respiratory infections among children under the age of five, which fell by 54%, and roughly 13% overall.
Making a city smarter has been identified as the most effective method for enhancing residents’ quality of life and tackling urban challenges. According to a 2022 top from Ranking Royals, the smartest cities in the world have developed in the Nordic countries (namely Norway, Finland, and Denmark), Singapore, Switzerland, Taiwan, New Zealand, Spain, Austria, USA, and South Korea.
Boosting Sustainability and Citizens’ Wellness
While getting smarter, urban regions have implemented sustainable systems and tools that contribute to the Green Deal agreement. The EU Green Deal’s primary goal is to achieve climate neutrality as the first continent by 2050. That will lead to a cleaner environment, cheaper energy, smarter transportation, new jobs, and a better lifestyle. The strategies of smart cities aim to improve life quality for inhabitants by using innovative technologies and saving resources.
For example, in Graz, a smart city in Austria, energy efficiency is considered essential for future developments. In 2010, the “Smart City Graz” project, whose purpose was to transform the territory into a sustainable and energy-autonomous urban district, was launched.
Denmark demonstrates its strength and sustainability level by covering the needs for energy production without using foreign energy resources. It secures its place as the greenest country in the world by continuously practicing a sustainable economy. For instance, a 2020 case study presents one of the wealthiest areas in the world, a Danish island called Bornholm. Bornholm’s wealth comes from developing new energy market mechanisms to control energy networks with a high proportion of renewable energy resources.
To support sustainable initiatives and contribute to citizens’ welfare, Vitoria-Gasteiz city (Spain), the European Green Capital of 2012, launched a secure bicycle parking network called VGBiziz. It is a low-cost initiative comprising 9 parking sites for around 400 bikes (including electric and cargo bikes). In 2009, Valencia, Spain’s largest city, joined the Covenant of Mayors, and in 2010, it announced its first Sustainable Energy Action Plan (SEAP). The agreement should reduce GHG emissions by 40% by 2030 in accordance with the goals set forth by the Mayors’ Covenant on Climate and Energy Program. By using the VLCi Platform, a global platform for smart city management, Valencia moves forward with its Smart City Strategy.
In the 2022 Environmental Performance Index (EPI) rank, Denmark received the highest EPI score (77.90), with 14.90 points increase compared to last decade. The Environmental Performance Index is a tool for measuring the environmental performance of a state’s policies. The United Kingdom earned the second position with a very close score, 77.70. Finland occupied the third place with 76.50 points, followed by Malta (75.20), Sweden (72.70), and Luxembourg (72.30).
How to Monitor and Improve Citizens’ Wellness
Sustainability concerns not only the welfare of the planet, but also the well-being of its inhabitants. The environment can positively or negatively impact human health. People need good resources to evolve and stay healthy: fresh air, good food, and drinking water. But how can people know if they have all of these? To evaluate life quality, municipalities usually use publicly available and updated key performance indicators (KPIs), such as:
# Outdoor air pollution
# Air quality complaints
# Risk Management Index
# Environmental Sustainability Index (ESI)
% Households with a reliable supply of water
% Drinking water compliance rate
% Households with access to safe water
% Satisfaction with food quality
Since respiratory infections are influenced by air quality, specific KPIs for measuring the air level of pollution should be included in weather updates. Individuals that suffer from chronic respiratory conditions such as asthma and chronic obstructive pulmonary disease (COPD) are susceptible to the negative effects of air pollution. Asthma and COPD are aggravated and triggered by air pollution, raising respiratory morbidity and mortality. Also, cholera, diarrhea, dysentery, hepatitis A, typhoid, and polio are just a few of the illnesses that can spread due to contaminated water and poor sanitation. People are exposed to health risks when water and sanitation services are absent, unsatisfactory, or improperly managed.
Leaders can use key performance indicators to improve quality of life and make decisions based on the results. Some KPIs, which they can consider are:
# Initiatives to promote greater environmental responsibility
# Water recycled and reused
% Current projects that are environmentally friendly
% Waste reused, recovered, or recycled
By monitoring the energy-related KPIs, community leaders can see if they can satisfy the needs of citizens, using only renewable energy resources. Additionally, KPIs such as # Initiatives promoting greater environmental responsibility and % Current environmentally friendly projects help raise environmental protection awareness.
To advance your knowledge and skills among professionals in identifying most effective KPIs for your organization and its use in measuring performance, be a Certified KPI Professional and Practitioner. The certification in KPI Measurement courses of The KPI Institute are designed to help practitioners understand the KPI measurement challenges and ways to address them. Invite your colleagues and enroll now! For further information, visit kpiinstitute.org.
