Best practices on change leadership on Indonesian context, based on interview with 20+ Indonesian C - level executives. Materials presented during the 7th GI Net: on December 18, 2012, by Dr. Hana Panggabean

1. A Global Indonesian Network Series
GLOBAL MIND, LOCAL ACT:
THE ART OF CHANGE LEADERSHIP
Dr. Hana Panggabean, Prof. Dr. Hora Tjitra, & Dr. Juliana Murniati
December 2012
Monday, December 17, 12

2. Funding'Partner'-'Global'Change'Alliance'(GCA)
Global Change Alliance (GCA)
•All consultancies of the GCA work on the basis of a Senior Expert
structure of consultants
•All in all the GCA-platform comprises about 125 people
•Our work is based on the congruence model of organizational change
(developed in the USA)
•Our partners are:
- C4 Consulting, Germany (Duesseldorf)
- Ascend Partners, France (Paris)
- Comma Consulting, Great Britain (London)
- Veritas Partners, LLC, USA (New York)
- Tjitra&associates, China (Shanghai)
• www.globalchangealliance.com
Zhejiang University Columbia University Atma Jaya Catholic University
Hangzhou, China New York, USA Jakarta, Indonesia
Tjitra Management Consulting
Hong Kong ■ Shanghai ■ Jakarta ■ Hangzhou
Global Indonesian Network / 2012, December 2
Monday, December 17, 12

3. Learning'to'know'each'other
Who are you and your role in your organization?
What are the main interest of your organization
on the topic of our roundtable discussion ?
Would you mind to share some highlights of your recent experiences in
leading and managing change ?
Global Indonesian Network / 2012, December 3
Monday, December 17, 12

4. Agenda
Our Research of
1 Leading & Managing Large Scale Change
2 Methodology and Participating C-Executives
3 Insights from the CEO: Art in Change Leadership
4 Grooming Global Leaders for Indonesia
Global Indonesian Network / 2012, December 4
Monday, December 17, 12

5. Successful'organizational'transformation'and'
change'management'require'multiple'approaches
Influencing factors in order of relevance to success (C4 Consulting, 2007)
• Strategic change failures
are commonly related to
Insufficient commitment of the 61％
human issues, not technical leadership team
issues
(Kotter & Cohen, 2002). Unclear objectives and visions 56％
of the change process
Lack of leaders’ competence in
56％
• The study in Chinese professionally dealing with
context reveals the most
Disunity on the top leadership 56％
challenge during the level (no one-woke approach)
change management in
Chinese enterprises is lack Lack of support from the line 52％
management
of competent talents
(Wang, 2003). Incomplete or delayed 50％
information to the employees
• The survey from German Insufficient support in coping
with fears and resistance
46％
leading companies found
the reasons for the failure Neglect of psychological 43％
in managing large-scale factors during project planning
change are relevant with
soft issue, inconsistency of Insufficient human resources 37％
change objectives Lack of trust in communication
(C4 Consulting, 2007). between employees and 36％ Very relevant or
management essential
0 10 20 30 40 50 60 70
Global Indonesian Network / 2012, December 5
Monday, December 17, 12

6. The'Eight'Critical'Stages'in'Transformations
1 Establishing a sense of urgency
2 Forming a powerful guiding coalition
3 Creating a vision
4 Communicating the vision
5 Empowering others to act on vision
6 Planning for and creating short-term wins
7 Consolidating improvements and still producing changes
8 Institutionalizing new changes
Source: Kotter, 2000,
Leading Change:Why transformation efforts fail
Harvard Business Review
Global Indonesian Network / 2012, December 6
Monday, December 17, 12

7. “Big'stories”'of'change'in'organizations
Garuda Indonesia
IBM
Mandiri
Xerox
Nintendo
Change is Leader !
Global Indonesian Network / 2012, December 7
Monday, December 17, 12

8. Leadership is not culture free!
๏ Leaders grow up in specific cultural context, in which they learn and develop their
value system.
๏ The influence of leaders own value system in behavior is inevitable.
๏ Leaders work in cultural contexts which may or may not be the same with theirs.
Studies on leadership and culture
Hofstede’s cultural dimensions
GLOBE Studies:leadership across 61 cultures
Global Indonesian Network / 2012, December 8
Monday, December 17, 12

9. 'Indonesian'Leadership'Style
77 78
80 73
Hierarchical Acceptance ? 60 53
66
90 83 46
44
% Yes
38
70 40
68 27
23
17 18
50 20 10
% Yes
42 43
45
31
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“Ing ngarsa sung tulada The “Bapakism’ style
Leader is a father figure, head of the family, supporting,
Ing madya mangun karsa caring, unconditional acceptance rather than strong
directing
tut wuri handayani “ (Tjitra, Panggabean, Murniati, 2012; Brandt, 1997)
Ki Hajar Dewantara Smoothness, calmness, subtle, avoid harshness –’halus’
(Tjitra, Panggabean, Murniati, 2012)
Indonesian leaders scored highest in the dimension of
consideration for others in comparison with leaders from ASEAN
founder countries (Malaysia, Singapore, Thailand, and the
Phillipines)
Taormina and Salvarajah (2005).
Global Indonesian Network / 2012, December 9
Monday, December 17, 12

10. Agenda
Our Research of
1 Leading & Managing Large Scale Change
2 Methodology and Participating C-Executives
3 Insights from the CEO: Art in Change Leadership
4 Grooming Global Leaders for Indonesia
Global Indonesian Network / 2012, December 10
Monday, December 17, 12

11. Leading'&'Managing'Large'Scale'Change
RESEARCH OBJECTIVES:
•Attempting to understand more deeply where leaders’ successes and failures exist in
leading large scale change – through their own report of self learning as well as their
assessments of their organization’s capacity to change.
•Understanding the human dilemmas the leaders faced when becoming the leader of a
large scale change, also looking at the kinds of solutions that address these dilemmas.
•Capturing the challenges of change as represented by both the leader and the
organization.
Qualitative In-Depth Interviews Quantitative Online Survey
EXPECTED RESULT:
•Systematic study on the challenges of change, especially success and failures in leading large
scale change.Comprehensive and systematic findings on the current dilemmas and
contradiction that leaders faced in leading large scale change, also with the potential
solution.
Global Indonesian Network / 2012, December 11
Monday, December 17, 12

12. Participating'CEO'and'C-Level'Executives'in'Indonesia
Global Indonesian Network / 2012, December 12
Monday, December 17, 12

13. Overview'of'the'respondents'in'Indonesia'and'Singapore
Job$Position Amount Industry Amount
CEO / Chairman 15
Finance / Banking 6
C - Level / Commissioner 4
Conglomerates 2
EVP, SVP & VP 3
FCMG 2
Organizational$Type Amount Manufacturing 1
Multinational Company 5
Trading / Retail 4
Asian SME 4
Specialist
Asian Large Company 12 (Construction, Pharmaceutical, 6
Technical Services)
Global Indonesian Network / 2012, December 13
Monday, December 17, 12

14. Participating'CEO'and'C-Level'Executives
in'France,'Germany'and'the'US
Global Indonesian Network / 2012, December 14
Monday, December 17, 12

15. Grounded'Theory'Analysis'
supported'with'Atlas.ti'QDA'Software
Global Indonesian Network / 2012, December 15
Monday, December 17, 12

16. Agenda
Our Research of
1 Leading & Managing Large Scale Change
2 Methodology and Participating C-Executives
3 Insights from the CEO: Art in Change Leadership
4 Grooming Global Leaders for Indonesia
Global Indonesian Network / 2012, December 16
Monday, December 17, 12

17. CHANGE'FRAMEWORK
TwoSides of OneCoin
Strategic Planning & Change Leadership
Stages of Change
(WHY and WHAT)
Strategic Planning
Sustainable System
Get the Buy-in
from the TOP
One Team, Merakyat
Passion for One Voice
Learning Leadership
Tools
Change Leadership
(HOW and WHO)
Global Indonesian Network / 2012, December 17
Monday, December 17, 12

18. Passion'for'Learning
๏ Change is identical with learning
๏ Technical excellence resulted from prior
tracks pave the way for learning, provide
sense of confident and esteem.
๏ Learning is adapting.
๏ Abundant learning strategies and
patience.
Becoming Role Model (Panutan)-
‘Start with me’ rather than “Me too”
.
Global Indonesian Network / 2012, December 18
Monday, December 17, 12

19. “Saya hadapi kenyataan pahit itu dan berani mengakui bahwa kita gagal, berani
menyatakan bahwa kita tidak tahu. Contohnya pada saat kami mau mulai
mengembangkan bisnis baru, divisi consumer. Pada saat itu kami berkumpul
dalam satu ruangan dengan 200-an orang., lalu saya bicara dalam ruangan itu
‘Yang mengerti consumer business itu siapa sih?’
Yang jelas bukan saya, melainkan orang-orang baru yang kita rekrut. Orang-
orang yang usianya masih muda.Tapi, baru ketemu kita saja mereka sudah takut.
Sehingga akhirnya saya katakan, ’We must learn from them.”
“Saya kan harus banyak belajar lagi. Saya tidak pernah belajar mengenai
sekolahan. Kalau membangun gedungnya, saya tahu, gampang. Tetapi
sekarang, saya diminta membangun sekolahan dan isinya. Waduh, Erwin Tenggono,
kurikulumnya, guru-gurunya, tantangannya apa ya? Terus buat model bisnisnya Presiden Direktur
PT Anugrah Argon Medica
itu bagaimana ya? Minusnya berapa tahun ya? Nah, itu kan saya nggak tahu
Pak, jadi itu yang harus saya pelajari.”
Courage
Janti Komadjaja
CEO Total Bangun Persada
to become
“the learner”
Global Indonesian Network / 2012, December 19
Monday, December 17, 12

20. Glocal'Case:
Technical)excellence)for)you
“The next process is your customer”
The culture-adequate motivation key
Personal achievement with empathy
Budi Setiadharma,
Presiden Komisaris
PT Astra International
Global Indonesian Network / 2012, December 20
Monday, December 17, 12

21. One'Team'One'Voice
๏ Communicating the change, socialization is key.
๏ Critical issue: acceptance
๏ Be in Charge! – taking responsibility
‣ Personal encounters
‣ Road Show
‣ The presence of leader
Relationship-oriented
๏ Management sharing
๏ Data as common language
๏ Authenticity & Self Confident
Global Indonesian Network / 2012, December 21
Monday, December 17, 12

22. “Saya sampai harus menuntun (dan mengajak) mereka “Jangan tanggung, once you hit on the
untuk bikin planning. ‘Ayo bikin planning sama-sama. gas pedal jangan (katakan): ‘Aduh,
Yuk, kita susun sama-sama sampai keluar angkanya.’ kayaknya nggak jadi deh, kayaknya
Begitu keluar angkanya, saya terus bilang ke mereka, nggak mungkin ini.’
‘Oh, kalau angkanya seperti ini, berarti tahun ini berarti Jangan begitu. You just go full speed at it!
harus mencapai sekian, tahun ketiga berarti harus sekian, Karena kalau ragu, mundur lagi, nanti
dan tahun keempat sekian…” orang lain akan challenge you lagi.
I think you just got to be certain, with a
straight face and saying that this is the
best thing that is going to happen to the
Janti Komadjaja
CEO Total Bangun Persada firm.”
“Setiap kami mengadakan training, Pak Teddy selalu hadir.
Terakhir itu tahun lalu, ketika kami mengadakan Triputra
Executive Program. Tigor Siahaan,
Semua eksekutif perusahaan kita kumpulkan lagi di
Chief Country Officer
Citibank Indonesia
Bogor, dan Pak Teddy kira-kira hadir sampai waktu makan
siang. Begitu makan siang selesai, beliau langsung pulang
ke Jakarta;
ya begitulah, kami butuh beliau hadir, karena figurnya
penting untuk kami.”
Aribowo Mondrowinduro,
Direktur HRD Triputra Group
Global Indonesian Network / 2012, December 22
Monday, December 17, 12

23. Glocal'Case:
Con1ident)and)authenticity
๏ Roll out failure in AAM
๏ Being honest
‣Open mind
‣Promoting ‘gotong royong’
‣No Impression management!
Erwin Tenggono,
Presiden Direktur
PT Anugrah Argon Medica
Global Indonesian Network / 2012, December 23
Monday, December 17, 12

24. 'Merakyat
๏ Majority change problems are people
issues. Leaders apply people-oriented
problem solving strategies.
๏ Social investment of change leadership
๏ Human relation competence is
imperative, yet regarded as skill rather
than personal trait
๏ Understanding the culture: people &
organization
Global Indonesian Network / 2012, December 24
Monday, December 17, 12

25. “Kesulitan itu selalu datang dari orang-orang yang
berada di sekitar,” “…yang paling sulit biasanya itu: people
just don’t wanna change.
Janti Komadjaja
CEO Total Bangun Persada Tigor Siahaan
Chief Country Officer Citibank
Pemimpin tidak bisa hanya mengandalkan komitmen dari pimpinan puncak. Agar perubahan
berjalan mulus, penerimaan dan komitmen karyawan tidak bisa dianggap remeh.
Pada saat resistensi muncul, strategi menghadapinya juga harus disesuaikan dengan budaya
organisasi.
Gaya IBM yang impersonal pasti berbeda dengan gaya ASTRA yang berorientasi kuat pada
unsur manusia. Jadi kalau ada masalah, gaya IBM yang lugas pasti gagal kalau diterapkan di
ASTRA yang mengutamakan pelibatan.
Y.W. Junardy
President Komisaris Rajawali Group
Global Indonesian Network / 2012, December 25
Monday, December 17, 12

26. Glocal'Case:
Social)investment)in)leading)change
๏ Delivering the bad news
๏ Make time for people
๏ Know your people
‣ The social investment smoothened
decisions in critical situations.
Rudi Pesik,
DHL Indonesia
Kopi Kamu
Global Indonesian Network / 2012, December 26
Monday, December 17, 12

27. Leadership'Tools
๏ Role Modelling (Panutan)
๏ Reward & Punishment:
‣ Intangible rewards: recognitions, support.
‣ Reluctance to use punishments, tend to perceive
sanctions as reward for good employees.
๏ Buy In
๏ Spirituality
‣ Work as divine responsibility
‣ Faith in God serve as strength , especially for
critical decisions
Culture-specific Indonesian style:
๏ Ing ngarsa sung tulada
๏ Motivating leadership
๏ Relying in Supreme Being rather than
individual competence.
Global Indonesian Network / 2012, December 27
Monday, December 17, 12

28. “Keberhasilan itu hanya bisa kalau si leader kasih
contoh. Jadi, saya mau nggak mau, saya harus pakai belt “Panutan, ya… mentor… Kalau tidak ada mentor, kalau
sehari-hari, saya harus datang tepat waktu. bawahan mau bertanya, mereka mau cari ke mana?”
Rully Basana T.P. Rachmat
CEO TUV Rheinland Indonesia Chairman Triputra Group
Kerja sukses, kemudian bergerak cepat semuanya, tapi kalau
“Anda harus benar-benar menghitung kalau terjadi
nggak diikuti dengan wisdom, jadinya ya nggak keluar
perubahan, maka stakeholders tidak dirugikan, itu
dengan maksimal. Ada yang seperti itu. Makanya saya bilang,
langkah awal. Kita harus yakin betul. Hitung-
seminggu sekali tuh disempatkan untuk... ya itu...
itungannya harus jelas di dalam kepala kita.
pendekatan agama…
Makmur Jaury Cyrillus Harinowo
CEO Mensa Group. Komisaris BCA, mantan direktur BI
Global Indonesian Network / 2012, December 28
Monday, December 17, 12

29. Glocal'Case:
Legacy)of)a)leader:)Becoming)an)inspiring)role)model
๏ Becoming a model for hands on leadership
๏ Commitment in developing people
๏ “Tak kenal maka tak sayang”
๏ Ultimate legacy of Indonesian leader: an inspiring mentor
Suhartono,
CEO FIF
Global Indonesian Network / 2012, December 29
Monday, December 17, 12

30. Agenda
Our Research of
1 Leading & Managing Large Scale Change
2 Methodology and Participating C-Executives
3 Insights from the CEO: Art in Change Leadership
4 Grooming Global Leaders for Indonesia
Global Indonesian Network / 2012, December 30
Monday, December 17, 12

31. Grooming'global'leadership'for'Indonesia'
๏ Leadership is regarded more as skill than personality traits.
๏ Leadership development program should focus more on:
‣ Interpersonal skill, which is evidently a competitive advantage for the
global Indonesians.
‣ Awareness on cultural influence in leadership, both individual and
organizational level.
๏ Facilitate passion for learning: learning courage and capacity
๏ Mentoring system
Global Indonesian Network / 2012, December 31
Monday, December 17, 12

32. Book$Launch
19$January$2013
Global Indonesian Network / 2012, December 32
Monday, December 17, 12

33. A Global Indonesian Network Series
Thank You
Contact us via …
Mail to:
hana.panggabean@atmajaya.ac.id
hanaatmoko@yahoo.com
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Global Indonesian Network
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Visit us at http://globalindonesian.net
33
Monday, December 17, 12