AXIS Telekom is the fastest growing national GSM mobile operator in Indonesia. Working with Hay Group, AXIS was able to analyse and build employee committment - vital to innovation. AXIS takes a real interest in its employees' opinions and implementing ideas that could lead to true growth and development. Its strategy of transparency and progressiveness makes it a game-changer in a market where business practices can be described as traditional and even staid. Read to find out how AXIS Telekom is able to Engage, Enable and take Action!

1. 1
Engage, enable, action!
Real results for real commitment at AXIS Telekom
ƒƒ
1st April 2013
AXIS Telekom is the fastest growing national
GSM mobile operator in Indonesia. The
company provides 2G, 3G and BlackBerry
Services nation-wide and covers the world
• Owned by Saudi Telecom, through 418 international roaming partners in
the largest network and
infrastructure mobile services
165 countries
company in Middle East
and North Africa, and Maxis
Communications Berhad
(Maxis), the leading mobile
communications services Challenges of a diverse market
provider in Malaysia. Spanning two years, AXIS In order to run a telco on a sales
• The telco has approximately Telekom worked with Hay Group, and marketing operating model,
800 employees focused on a global consulting firm, to people management is a key
customer service, and business analyse and build employee driver of success. This is why AXIS
and technology development. committment at AXIS. takes a real interest in its employ-
• The company claims that its ees’ opinions and implement-
pre-paid and post-paid GSM Competing for market share in ing ideas that could lead to true
services are the most affordable, Indonesia’s booming telecommu- growth and development.
reliable and transparent in nications industry is a challenge
the Indonesian urban centre
not to be sniffed at. Launched in In addition to the challenges of
market.
• Adherence to and respect for
2008, AXIS has since carved out a operating in a fast-paced niche
corporate governance and niche for itself with a strong focus segment, AXIS will face a
values, and code of conduct are on Indonesia’s urban centres and transition test as its first Director
core to the AXIS culture. a subscriber base comprising of Human Resources since
• Currently No.3 in the Indonesian mainly digital-savvy Generation establishment, Wahyudin
telco sector, it remains focused Y-ers. Adikusumah, is set to retire by the
on entrenching its position end of 2014. Mr Adikusumah is
in its niche segment through Currently, AXIS has more than credited as one of the key
innovation, customer-centricity 70% population coverage in architects of setting the culture
and packages tailored to the Indonesia, covering Java, Bali, for the company.
Gen-Y market. Lombok, North Sumatra, West
Sumatra and Riau. The company Understanding the AXIS culture
achieved this by introducing a The company’s growth is depen-
different approach in the market- dent on its ability to innovate.
ing of its products and service Its strategy of transparency and
offerings by being simple, easy- progressiveness when dealing
to-understand and straight-for- with customers makes it a game-
ward tariff plans. Their promise is changer in a market where
to “to make it easy for customers business practices can be
to get what they want, when they described as traditional and even
want it.” staid.

2. 2
Our Goal: Our Strategy: Campaign Idea:
TO ATTRACT TO SHOW OFF
NEW TALENTS
To re-establish and
OUR STRENGTHS
 Our achievements
THE
QUALITY
reinforce AXIS as a & growth
unique, innovative  Our stakeholder
and dynamic supports
organization in order
OF
 Our humane
to attract motivated,
factors
creative, ambitious
and hard-working  Our emotional
LIFE WITH A
talents to grow approach
together in AXIS in  Our direct TWIST
driving better business communication
performance
1
AXIS’s employer value proposition in action
“Our focus on innovation translates to a focus on our experienced candidates were typically from
people. We hire and groom people whom we see as companies that were often diametrically different
being good fits with our company ethos and vision,” from AXIS in culture and practices.
said Mr Adikusumah .
He added, “This is one of the major reasons why we
Establishing employee loyalty hasn’t been a major decided to embark on this Employee Effectiveness
problem for AXIS – its turnover rates of three to five diagnostics project with Hay Group. Another push
percent are one of the lowest in the region and factor was our commitment to business sustainability.
possibly the lowest in Indonesia– but retaining the You cannot sustain market growth and capture mind
best people is. share without first cementing employee loyalty.”
Mr Adikusumah also lamented the fact that many of “To do that, you need to put your money where your
the company’s brightest and best were poached, par- mouth is. If you conduct an employee survey to get
ticularly in mid-career. This created a perennial opinion and comment on what is great about the
hiring conundrum for AXIS. Replacing those mid- company and on what needs fixing, then you have
career talent was not simple when the pool of to follow up with real action to improve what is good
and fix what needs fixing.”
“ Our focus on innovation translates to a focus on our people.
We hire and groom people whom we see as being good fits
with our company ethos and vision. “
Mr Wahyudin Adikusumah
Director of Human resources, AXIS TELEKOM

3. 3
Bridging the generation gap
AXIS is not alone in the recruitment generation-gap ƒƒ Not only must there be a Career Management System,
challenge. By 2020, Indonesia will have the third fastest- there must be clear communications to employees
growing workforce in the world. The population will stand about the objectives, measurements and expectations
at 262 million, 60% of which will be living in cities. of them.
ƒƒ Awards and recognition: be it a certificate
As such, the workplace in Indonesia is facing a generation-
of appreciation or a restaurant voucher,
al adjustment of values, learning and working styles that
acknowledgement of good work must be
will have a huge impact on how leaders think and act.
instantaneous and consistently delivered across the
In preparation for this seismic shift, what can companies organization.
in Indonesia do to ensure continued growth? What are the ƒƒ Engage employees in discussions about their
gaps between employee expectations and our HR tools? career aspirations and development needs – today’s
How can these gaps be bridged? younger generation want an active hand in planning
A Hay Group study, Managing across Generations in Indo- their future rather than being passive recipients of
nesia – Mind The Gap (February 2013), revealed interest- management’s will.
ing insights on managing employees in Indonesia: ƒƒ The leadership skills of managers and the climate they
generate are of paramount importance in motivating
and retaining employees.
ƒƒ Benefits are a very important motivating factor for
all three generations, that is, the Baby Boomers,
Generation X and Generation Y. This is a
phenomenon seldom reported in other countries and
seems to be a peculiarity of the Indonesian market.
ƒƒ The reasons employees join a company are usually not
the same reason for their leaving. With the exception
of competitive pay, employees join a company because
they are attracted to the employer brand or corporate
reputation. However, once they are on board,
competitive pay becomes a hygiene factor.
ƒƒ The experience of the older generation is a valuable
resource. Tap on their willingness to share and mentor
their younger colleagues and companies will be
assured that institutional knowledge is kept within
their confines.
“ This is one of the major reasons why we decided to
embark on this Employee Effectiveness diagnostics
project with Hay Group. Another push factor was our
commitment to business sustainability. You cannot
sustain market growth and capture mind share without
first cementing employee loyalty.”
Mr Wahyudin Adikusumah
DIRECTOR OF HUMAN RESOURCES, AXIS TELEKOM

4. 4
Heart of the AXIS model: Commitment to change
Hay Group developed a model for AXIS that realizes worth of implementation time and not every 12
the full potential of its Employee Effectiveness value months as a matter of course.
proposition:
The reason for this is that action plans need time to
ƒƒ Employee surveys give voice to employee opinion bear fruit. And it is only after results start to emerge
and highlight the company’s strengths and that employees can give lucid comments on whether
weaknesses; or not a plan has met its objective. Otherwise,
ƒƒ Workshops attach accountability and ownership companies will run the risk of capturing the teething
to the task of addressing issues to improve pains of executing a new initiative and not the results.
company performance;
ƒƒ 12-month implementation periods set Mr Adikusumah said, “This model suits us to a T
benchmarks against which those action plans can because it crystallizes our commitment to regular self-
be assessed. assessment and to our growth engine, which is
getting people who innovate. This survey gives us
Figure 1 charts the components of one cycle in the insight not only into how engaged our employees
model. AXIS will complete three of these cycles over a are feeling but also how tthey are being supported to
period of about four years. succeed.”
The approach that a company takes to engagement “We are not interested in conducting employee
and enablement is a major component of Hay Group’s surveys for the sake of it. When nothing is done
value proposition. In the AXIS model, the second subsequent to the surveys, they become an
survey was scheduled to take place after 12 months’ administrative chore and employees become
disillusioned,” he added.
Figure 1: Cycle of AXIS’s employee effectiveness diagnostics
Employee survey
• Strong internal communications to
publicize survey
• Survey framework customized to AXIS’
requirements for optimal capture of the
employee voice
• Survey form automated to flash on
employees’ workstation screens on day of
survey
Workshops
• Series of three workshops to implement
action plans based on survey results: Implemention
• Identify board sponsors for particular areas
of improvement/action item; • All action plans communicated with
• Each board sponsor to identify champion/ employees
change manager and a supporting team to • Change management teams have 12
implement action item months to implement their action plans
• Board sponsor together with change • Employee survey conducted again after
manager and team members to share 12 months from implementation
action plans with the entire change team,
ie: other board sponsors and their change
management teams.

5. 5
Promoting employee effectiveness survey at Axis Telekom
Desktop wallpaper on all employees’ computer screens
during survey period
Left: Posters and standing banners on all internal working
areas during survey period
Top: article in internal employee magazine
“The transparency in this company is
unconventional but refreshing and I
appreciate the fact that my opinion really
does matter.”
tan ka fung
General manager, it ESS

6. 6
From insights to action plans to execution
AXIS’ progressiveness as an employer in favor Mr Adikusumah said, “Thanks to this survey, we
of openness and transparency had required know that we cannot let up on our efforts to train
some employees to adjust, but the seemingly employees to do their jobs better. In addition, we
unconventional strategy has paid dividends. need to continue building eomployees’ commitment
to the company and what we do for our customers.
To ensure that there is clarity, a strong internal
For us, Hay Group’s emphasis on engagement and
communications campaign was launched, explaining
enablement has been the most powerful and realistic
the reasons for the survey and the motivation for the
solution for us; it helps us to pinpoint and connect
entire Effective Employee diagnostics process. As a
employees’ feelings to corporate practices.”
result, the survey achieved a 94% participation rate
across all departments. He added, “The level of transparency that we operate
under assures employees that their opinions are
The survey results (Figure 2) highlighted that the
important. The results have been put to practical use
company was strong in managing performance,
by the HR team; we are already working on improving
collaboration and had a clear and promising direction,
our training cycle as well as our communications
when compared to high-performing companies in
tactics.”
Indonesia. However, training and commitment to the
company did not fare as well.
Figure 2: A snapshot of effectiveness at AXIS.
versus indicative norm
Collaboration +13%
Clear & promising direction +5%
Quality & customer focus -2% Note: The questions asked in the
survey were grouped into 16
Employee engagement -7%
dimensions. To the right are all
Performance management +4% dimensions listed, as well as the
Authority & empowerment +1% comparison to high-performing (HP)
companies. The HP comparison shows
Resources 0%
how AXIS exceeds the HP benchmark.
Work, structure, process -1%
Respect & recognition 0%
Confidence in leadership -3%
Training -11%
Development opportunities 0%
Pay & benefits 0%
Employee enablement +2%
“I like the teamwork and integrity between
departments. If we agree on something, then I
am always assured that it will be carried out to
the best of our abilities.”
Octavia
region sales manager, bali & Nusa tenggara

7. 7
Engaging and enabling employees for success
Many organizations focus on the concept of employee engagement and with good reason. Continuous change and
the need to do more with less make it essential that employees are aligned with organizational objectives, and are
willing to contribute discretionary effort.
But our research suggests that engaging employees alone is not sufficient to promote maximum individual and
organizational performance. To get the most from employees, leaders must not only motivate their employees but
also enable them to channel their extra efforts productively by providing the necessary support for success.
Therefore the focus is shifted from employee engagement to effectiveness - Hay Group’s unique value proposition.
Hay Group’s Total Effectiveness Framework
n Clear and promising direction
Confidence in leaders
n
n Quality and customer focus
Engagement
n Respect and recognition n Commitment
n Development opportunities n Discretionary effort Financial success
n Pay and benefits
Drivers Employee Customer satisfaction
effectiveness
n Performance management
Authority and empowerment
Enablement
n
Employee performance
n Resources
n Training n Optimized roles
n Collaboration n Supportive environment
n Work, structure and process
As Hay Group studies have shown, there is a significant financial benefit from ensuring
employees are enabled
Employee Employee Customer Financial
performance retention satisfaction success
Increase in
employees above Customer
Reduction in satisfaction
peformance turnover rates Revenue growth
expectations rates
High
engagement only 10% -40% 71% x2.5
High engagement
+ high enablement 50% -54% 89% x4.5
Based on linkage case studies using Hay Group’s global normative database
“ This survey gives us insight not only into how
engaged our employees are feeling but also how they
are being supported to succeed.”
Mr Wahyudin Adikusumah
director of human resources AXIS TELEKOM

8. 8
Looking ahead
“ Team dynamics are AXIS’ senior management believes the “The results of the engagement study
already very strong. employee effectiveness survey will are proof of the AXIS culture that
This process of help them in the long run to bench- we have been nurturing for the past
mark against Indonesia’s, even Asia’s, eight years; this is not something that
developing action high-performing companies. They are happened overnight. What we have
plans through confident that the Employee Effective- achieved is making sure that what we
ness diagnostics project will keep the preach is actually implemented and
workshops and that it is having the desired positive
company’s dynamism levels high.
communicating that effect on our employees.
with all staff will no In future surveys, AXIS will continue to
ask the same core questions so as to Our people are at the core of what we
doubt encourage allow for year-on-year comparisons. The do. It is very important for them to be
even more cross- leadership recognizes that, while it was effective; for them to be able to achieve,
functional teamwork.” tough to get to the top, it is even for them to be creative, innovative and
tougher to stay there! Mr Adikusumah enabled to deliver our brand promise to
Purnama Gandapradja believes that this longitudinal view will our customers.”
Senior Manager HR Services &
Employee relations only benefit the company because “it
will be the management’s report card, Putting it in place laid the foundation
as submitted by the employees.” for sustainability in many aspects –
retaining top talent, seamless business
He commented that that Hay Group’s continuity grounded in employee
Employee Effectiveness diagnostic loyalty regardless of who’s in charge,
project validated the Board of Directors’ and continued development of the
focus and efforts on creating a positive company’s growth engine of
office culture. innovation.
Want to know more about total employee effectiveness?
Contact
Nidthia Chelvam
Managing Consultant
e| Nidthia.Chelvam@haygroup.com
About Hay Group
Hay Group is a global management consulting firm that works with leaders to transform strategy into
reality and to help people and organizations realize their potential. Visit www.haygroup.com/id.