The next step: Idris hunts for MAS talent

TURNAROUND specialist, Datuk Idris Jala, who has been piloting Malaysia Airlines (MAS) out of a financial mess, is now moving to unleash hidden talents and staff capabilities at the airline.

He is in the midst of a less visible and unglamorous, but vital, internal initiative to build future leaders at MAS and to put succession and career development plans in place.

"This is something we are doing internally on the people side. You won't be able to see it, but it is very important and being done," he said at a briefing for editors in Vancouver, Canada, last week.

"I want to create more future leaders at MAS, and unleashing talent is at the core of the Business Turnaround Plan (BTP) for the airline," Idris said on the sidelines of the annual International Air Transport Association (IATA) meeting.

Having downsized staff by about 3,000 last year, a leaner MAS currently employs about 19,600 people compared with 22,800 at end-2005.

The MAS human resource department is busy revamping and implementing new staff management systems, redesigning training programmes, ensuring clear succession plans for all key positions and working on an employees share option scheme.

All this is expected to see fruition in stages over the next nine months and into 2008.

The first thing Idris did when he took up the MAS job was to establish a small new leadership team and a business council of top officials to ensure quick decision-making.

Then the top 100 jobs in the airline were identified and preferred candidates for the positions and alternatives chosen. Fifty young graduate management trainees were also recruited in 2006 even though a general recruitment moratorium is still in place.

"We are refining the Management Trainee Programme to match the long-term business requirements of MAS. This is a new thing," Idris said.

Now, succession planning for another 400 top jobs at MAS will get under way in the coming months.

"We will tell people upfront of their current assessment, where their potential is and how far we see them going within the company," he added.

Under Idris' plans, top positions in MAS can be held by Malaysians as well as non-Malaysians.

MAS has therefore decided that localisation of overseas jobs is cost-effective in quite a number of its stations abroad. Exceptions are possible only when a Malaysian costs less than a local to hire in particular locations.

"Overseas assignments for Malaysian staff will only be done if they are part of career development and succession planning," Idris said.

MAS has also decided not to renew short-term contract employees as part of the overall effort to downsize, unless their roles are vital.

The airline is in the process of evaluating jobs and scaling salaries according to skills needed and industry standards.

Old-style job titles are being reviewed and changed to give people a sense of pride and recognition befitting the private sector.

"We are doing salary benchmarks to see how to pay staff better. If you pay peanuts, you get monkeys.

"Although we won't be able to pay immediately, we will do so later," Idris said.

While ground crew needs are being addressed, the serious issue of a potential pilot shortage or loss of MAS pilots to other airlines is also being looked at.

Idris plans to send up to 200 cadet pilots annually to the three pilot training schools in Malacca, Kelantan and Trengganu to beat pilot attrition.

Analysts say MAS' plans to unleash talent and choose future managers within the airline are key to its survival in the future in a volatile industry.

"That MAS is openly addressing this is a good thing and something we have not seen generally in government-linked company transformations," said Aseambankers senior analyst Khair Mirza.

"It is impressive to see that such concrete plans are in place and designed to make MAS move forward," he added.