Strategic Change Leader MM Eksekutif Muda - I Tjahjono Soerjodibroto September 1, 2009.

Presentasi berjudul: "Strategic Change Leader MM Eksekutif Muda - I Tjahjono Soerjodibroto September 1, 2009."— Transcript presentasi:

1 Strategic Change Leader MM Eksekutif Muda - I Tjahjono Soerjodibroto September 1, 2009

2 2

3 3 CHANGE FOR BUSINESS SURVIVAL Industri Telekomunikasi: operator, hardware supplier Industri Infrastruktur: PLN Industri Airline: budget airline Industri Mobil: hybrid car Industri Peternakan: integrasi Industri Farmasi: obat generik, kemasan Industri Perbankan: UMKM Industri Pertanian: organik, bio-fuel

4 4 Right Thing Wrong Thing Done Well Done Poorly Right Products/Services Death Trap Detour Business Adjustment/ Recovery Target market Products/Services Technology Cost Structure Competency, etc Business Challenge Matrix

5 5

6 6 My immediate goal is to work from this low point in our business upward so we can return to profitability as soon as possible. To do that, I first want to build an unwavering commitment throughout the company to “strive to make better cars”—in other words, I want Toyota to have a “product-focused management” Rather than asking, “How many cars will we sell?” or, “How much money will we make by selling these cars?” we need to ask ourselves, “What kind of cars will make people happy?” as well as, “What pricing will attract them in each region?” Then we must make those cars. June 25, 2009 Akio Toyoda President, Toyota Motor Corporation

7 7 What is your reaction and response? NORMAL CONDITION (happen gradually): A.Anticipative, or B.Unaware / Neglected and Denying GLOBAL CRISIS (taken by surprise): A.Quick response thru Restructuring and Alignment, or B.Denying and think we are still OK

8 8 UNDESTANDING THE CEO MIND

9 9 Driver for Change from CEO perspective Is there enough market to grow? CEO Should we stick with the current business only? Will share- holders agree for additional capital? Is there any other alternative? Should we go for IPO? Can we enter new markets? Can we differentiate? Should we form alliances or acquire? Do I know my customers? Customers will have a choice Impact of the coming deregulation? How should we finance the expansion plan? Shareholder expectation? Is my organization structured to evolve? Should we continue to support low end market? Are we ready to enter new business? Who are my competitors? Do I have the right team to cope with this change? New market opening up Should we expand or diversify Will they support our new expansion plan? What should it look like? How fast? How should roles be defined? How can we restructure the cost? Should we apply cross- subsidy? What should I do about my cost of capital? Can I compete? Where should I source future funds? What will be needed for preparation? Is there enough market opportunity? That I do know How can I motivate and get commit- ment? That I don’t know Can the business evolve fast enough? Can we lock our customers? New geographies What do they want? Can we compete? Existing and new markets Impact of new technology on my cost base?

10 10 Driver for Change Organization Capital Information Capital Human Capital Teamwork Alignment Leadership Culture Supply Production Distribution Risk Management Operation Management Processes Selection Acquisition Retention Growth Customer Management Processes Opportunity ID R&D portfolio Design/develop Launch Innovation Processes Environment Safety and Health Employment Community Regulatory and Social Processes PriceQualityAvailabilitySelectionFunctionalityServicePartnershipBrand Product / Service Attributes RelationshipBrand Customer Value Proposition Long-Term Shareholder Value Improved Cost Structure Increased Asset Utilization Expand Revenue Opportunities Enhanced Customer Value Learning and Growth Internal Process Customer Financial Productivity StrategyGrowth Strategy

11 11 Business Process in Monetary Terms MONEY TALKS ! PEOPLE LISTEN ! Source: Chase, et. al

12 12 UNDERSTANDING THE CONSQUENCES

13 13 ChangeManager AsDirector AsNavigator AsCaretaker As Coach/ Nurturer AsIntepreter

14 14 Characteristics of four different types of Change: Change type Expenses of single exercise Length of each exercise Ambiguity of results Continuous process improvement ClearestShortest (could be days) Smallest Process revolution Product/service improvement Strategic changesLargestLongest (could be years) Most ambiguous

15 15 CHANGE MUST BE COMPLETE Gorontalo: sosialisasi jagung Excelcomindo: Minute Factory Danamon: Danamon Simpan Pinjam PT KA, PLN, Busway?

16 16 Customer Touch Points  Layanan ke customer dapat melalui beberapa service area :  Pre-journey  Pre-flight  In-flight  Post-flight  Post-journey  Layanan ke customer dapat melalui beberapa service area :  Pre-journey  Pre-flight  In-flight  Post-flight  Post-journey Pre-journey Pre-flight In-flight Post-flight Post-journey 1. Website (DQ) 2. Call Center (DE) 3. Sales Office (DI) 4. GFF Center (DI) 5. Service Center (DI) 6. Ticket Sales (Airport) (DF) 7. Customer Service Desk (DI) 8. GFF Membership Service (DQ) 9. Check-in Service (DN) 10. Transfer Service/Desk (DF) 11. Executive Lounge (DF) 12. Boarding Gate (DO) 13. Cabin Service (DN) 14. Cabin Comfort (DE) 15. Lavatory (DE) 16. Onboard Catering (DN) 17. In-flight Entertainment/IFE (DN) 18. Amenity Kit (DE) 19. Sales on Board (DF) 20. Arrival Assistance (DO) 21. Baggage Delivery (DO) 22. Lost and Found (DO) 23. Customer Affairs (DQ) 24. Loyalty Program (DQ)

17 17 Huawei’s Management Transformation CEO’s wisdom: Be prepared since winter is coming

18 18 Huawei’s Management Transformation Huawei’s Value Transformation China-based Strong innovation of Products & solutions Low cost R&D resources Leading supplier in emerging market Global delivery capabilities with speed to market Brings the best TCO benefits to customers World class management practice Widely accepted by high-end markets Fully audited by multi- National operators High quality, reliability & large-scale deployment

19 19 Huawei’s Management Transformation Huawei works with top management consultancies to bring World-class expertise to the company IBM consulting Human Resources & ESOP HayGroup Towers Perrin PriceWaterhouseCoopers IBM consulting Integrated Product Development and Integrated Supply Chain Financial Management Quality Control Organization Transformation FhG M E R C E R

20 20 UNDERSTANDING THE REJECTION (THE PSYCHOLOGY OF CHANGE)

21 21 People and Change INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LATE ADOPTERS DIEHARDS # OF PEOPLE TIME

22 22 Stakeholders = Customers Executive, CEO Transform the business Leads in the competition Reduce Cycle Time Stay nimble and innovative Line Manager Make my numbers Increase customer satisfaction Better controls Stamp the competition Training/HR Manager Get them trained Cut cost Satisfy the user department Meet my plan target Worker/Learner Improve my skill Earn more money Keep at leading edge Simple procedure And not confusing

23 23 Every individual are different…. Different treatment is the logical consequence… Not Able Not Knowing Not Willing Communicated and Involved Educated and Trained Counseled, Incentives, Special Treatment Douglas K. Smith Taking Charge of Change

24 Emotional Responses to Corporate Changes DenialThe ‘It won’t happen’ syndrome Fear‘When will it happen?’ ‘What will happen to me?’ Anger‘We’ve been sold out’ - Resentment towards those considered responsible SadnessMourning and grieving for what’s past AcceptanceRecognition of futility - positive approach starts to develop ReliefThings actually better than expected InterestIncreasing feeling of security LinkingRecognition of new opportunities Enjoyment‘It is really working out well’ How long and when it’ll be finished?

25 25 The main obstacles often came from the middle management. They refused to change or sacrifice their interests... Because of this, numerous top-down reform measures were either stopped halfway or did not attain the expected result Li Jiaxiang, the former CEO of Air China Problem with middle management?

26 26 The most demanding part of company reform was to change the mindset of the middle management. The reason for this was simply that changes proposed by the senior management were acclaimed by the ordinary staff, while for the people in the middle, the changes meant that they would either lose something or be forced to make some changes. Therefore, the most challenging part was to transform the attitudes of the middle management. Louis V. Gerstner Jr., the former CEO of IBM Problem with middle management?

27 27 Remember Pendulum Effect

28 28 FOUR KINDS of COMMITMENTS at FOUR LEVELS SPIRITUAL COMMITMENT INTELLECTUAL COMMITMENT and EMOTIONAL COMMITMENT INTELLECTUAL COMMITMENT or EMOTIONAL COMMITMENT POLITICAL COMMITMENT Committed Human Energy Source: DICK RICHARDS, The Art of Winning Commitment

29 29 RELA - PAKSA DIPAKSA untuk BERUBAH agar menjadi TERPAKSA Karena TERPAKSA harus BERUBAH, maka menjadi BISA BERUBAH Setelah BISA BERUBAH, lama kelamaan menjadi BIASA dengan yang baru Karena sudah menjadi BIASA maka tidak akan merasa ada PERUBAHAN

30 30 PENGALAMAN PENERAPAN PERUBAHAN: BIOFARMA Sense of Urgency –Delisting dari WHO, Okt 2004 Visi: –Rubah budaya indoor ke outdoor Upaya: –Pengenalan Budaya di luar industri farmasi –Benchmark ke industri farmasi lain –K/s dengan pihak asing Short wins: –Kepercayaan Arabio, Japan Polio Research, Bexter –Diakui kembali oleh WHO, Okt 2005

31 31 PENGALAMAN PENERAPAN PERUBAHAN: PEGADAIAN Sense of Urgency –Pegadaian sebagai ukuran kemiskinan Visi: –Menjadi Lembaga Keuangan yang modern & dinamis Upaya: –Perbaikan sistem keuangan, sdm, logistik –Benchmark ke perusahaan lain –Perbaikan citra –Budaya: “Merasa Dibutuhkan” ke “Kami Membutuhkan Masyarakat” –Pertumbuhan adalah harga mati Short wins: –Hasil audit Wajar Tanpa Syarat pertama kali –Logo dan tampilan baru kantor Pegadaian –Motto “Melayani Masalah Tanpa Masalah”

32 32 PENGALAMAN PENERAPAN PERUBAHAN: WIJAYA KARYA (WIKA) Sense of Urgency –Persaingan antar BUMN dan dengan swasta Visi: –WIKA STAR 2010, Menjadi Pelopor di Jasa Konstruksi Upaya: –Rubah pendekatan Human Resources ke Human apital –Karyawan sebagai aset untuk didorong “Kekuatannya” –Penerapan gaji dengan sistem merit, komponen insentifnya lebih besar –Kultur Paksa Rela: Dipaksa agar jadi Terpaksa; Karena Terpaksa jadi Bisa; Karena Bisa alkhirnya jadi Biasa –Penerapan NLP Short wins: –Prestasi meningkat secara bertahap

33 33 PENGALAMAN PENERAPAN PERUBAHAN: PENGAWAS BANK INDONESIA Sense of Urgency –Banyak bank bangkrut setelah krismon, BLBI jadi beban Visi: –Perubahan dalam Good Governance secara timbal balik BI dan industri Upaya: –Pengawas: “Know your Bank” –Bankir: “Know Your Customer” –Pengawasan: dari “compliance based” ke “risk based approach” –Benchmark: konsep baik dari satu bank dijual ke bank lain –Kebijakan BI: dari Top Down (pemikiran BI semata) ke “diwacanakan” dahulu ke pasar –Penerapan kewajiban sertifikasi “Risk Officer” untuk tiap bank dan diulang/update

34 34 PENGALAMAN PENERAPAN PERUBAHAN: SEMEN GRESIK GROUP Sense of Urgency –Saling berebut pasar padahal harus hadapi Kompetisi luar Visi: –Defragmentasi untuk tingkatkan margin & cegah over-supply Upaya: –Restrukturisasi –Perbaikan Revenue Management, Cost Management dan Utilization –Menghapus iklim “silo” –Penerapan KPI yang jelas –Motto: “Lakukan dari sekarang, lakukan diri sendiri, dan lakukan dari yang kecil” Short wins: –Progress dari Restrukturisasi –Peningkatan profit melalui efisiensi dan harga saham –Persetujuan Rencana Pabrik baru –Persetujuan Rencana Power Plant

35 35 PENGALAMAN PENERAPAN PERUBAHAN: KORAN TEMPO Sense of Urgency –Distribusi ke Agen telat sehingga sering ditinggal Visi: –Menjadikan bisnis Koran Tempo sebagai “cash cow” Upaya: –Menghilangkan mitos ”cetak tengah malam” –Ubah jam kerja Redaksi sehingga bisa naik cetak jam 23 –Adakan Piket (hanya 5% dari Redaksi) untuk tampung bila masih ada berita malam yang penting (meledak) Short win: –Koran Tempo tiba di Agen paling pagi –Oplag di beberapa lokasi naik 2 kali Tantangan Baru: –Pesaing bayar Agen untuk menahan Koran Tempo

36 Hope this sharing is a useful session