VALUES can transform an institution, if not a nation. Take a look at Paul O'Neil, who was chief executive officer of Alcoa, an aluminium-can manufacturer, from 1987 to 1999.
He took over Alcoa at a disastrous time when the company was losing money and its market share was plunging. Some 15,000 workers were on strike, new product lines had failed, and the unions were angry.
O'Neil felt that the only way to turn the company around was to emphasise worker safety.
Alcoa's workers work with metals that are heated up to 1,500ºF and where machines could rip a man's arm off in a moment of carelessness.
Through his emphasis on employee safety, O'Neil turned Alcoa around. Its stock price quintupled between 1989 and 1999.
A similar story played out when Satya Nadella took over Microsoft in 2014 as its CEO. In his 2017 book Hit Refresh, Nadella tells how he embedded a culture of coopetition.
Instead of just competing with other companies and individuals, Microsoft would collaborate with them to reach its highest potential. And so, he tore down silos across divisions so that the company would work as "One Microsoft".
The result? Microsoft's share price has increased tenfold under Nadella's watch.
Prime Minister Datuk Seri Anwar Ibrahim has initiated a similar transformation through the Madani concept. In promoting rule of law, Madani reinforces the Rukun Negara.
In launching the Madani Economy on Thursday, the prime minister reiterated that Madani, comprising the values of good governance, trust, respect, innovation and inclusion, is the key to the nation's prosperity.
One trait that contributes to national affluence is competitiveness. And Madani is relevant here.
As businesses become more productive, the nation becomes more competitive and prosperous. Such a situation becomes a magnet for foreign investments; which spins the virtuous cycle of competitiveness even faster.
Good governance — a quintessential element in Madani — ensures that the public sector is transparent, accountable and fair. This is imperative. As Acemoglu and Robinson in their 2012 book Why Nations Fail argue, strong institutions promote national prosperity.
Since 2019, we have dropped six rungs in the global corruption index to 59.
Meanwhile, economic powerhouse China and Vietnam are being tough on corruption.
Rivalry among businesses on a level playing field and the shared trust engendered by Madani between government and people can encourage innovation.
This will ensure businesses' sustainable growth and continued relevance. Most of the rich countries are wealthy largely because of their innovative prowess.
As with Nadella's concept of "One Microsoft", the Madani spirit of inclusiveness should fuel improvements in business processes and technology as the diverse workforce collaborates and leverages collective knowledge and expertise.
In the larger context, national unity is a potent force for competitiveness.
More work needs to be done, however. Madani requires greater clarity and dissemination. In the pursuit of competitiveness, the government can take the following two steps to embed the virtues espoused by Madani.
First, although the values are universal, Madani specifically needs to be understood by all segments of society.
That would require campaigns nationwide and internationally. The government needs to explain what Madani stands for and
its impact on the nation's welfare.
Second, the public sector and business associations across communities should be brought into frequent dialogues to promote Madani and to refresh these stakeholders on the crucial importance of Madani to competitiveness.
Pemudah, or the Special Task Force to Facilitate Business, would be one such forum.
The inculcation of the Madani values and their impact on competitiveness is a task for everyone, including the public service and businesses.
A greater understanding of Madani would contribute towards achieving the nation's target of making Malaysia among the top 12 (now top 32) in the global competitiveness index in 10 years.
* The writer is AIMST University vice-chancellor
