Change management

Hendra Kusnoto
Advisor of GCG & Change Management
PT ANTAM Tbk
Presented for Faculty of Psychology UGM
4th
December 2011, Yogyakarta

““God will not change people’s fate ifGod will not change people’s fate if
they do not change it themselves”they do not change it themselves”
(Al-Qur’an, Ar-Ra’d: 11)(Al-Qur’an, Ar-Ra’d: 11)
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‘R U MAD’?
Are You Ready for
“Making A Difference”?
An Initiative of the Education Foundation

‘Learning is an experience, everything
else is just information.’
(Albert Einstein)

‘The mind is not a vessel to be filled,
but a fire to be ignited.’
(Plutarch)
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 What is Change?
 Two Sides of Change
 People Oriented Change
 Organizational Change
 Managing Resistance to Change
 Tools for Change
 The Problems of Change
 The Best Practice of Change
 Antam’ Experience
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 ”Change is inevitable. In a progressive country
change is constant.” (Benjamin Disraeli,1804 -
1881)
 ”We must become the change we want to see”
(Mahatma Gandhi, 1869 - 1948)
 ” Change the way people think, and things will
never be the same” (Steve Biko, 1946 - 1977)
 ”If we don't change our direction we're likely
to end up where we're headed” (Chinese
Proverb)

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 To change is to take different actions than previously.
To take different actions than previously means to
make different choices. Different choices produce
change. The same produce sameness, a reinforcement
of the status quo.
 Change management is defined as the systematic
deployment of change management programs, tools
and processes throughout an organization.
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 The goal of CM :
 Create competitive advantage or economic
value of an organization
 Improve the utilization of human capital
 Ensure vision/projects meet their goals
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Change:
•Economic
•Politic
•Social
•Technological
Customers
Suppliers
Business partners
Organization
Indirect impacts
Direct impacts

Discontinuities in the business environment
Old New
Confidence and rigidity Insecurity and openness
Permanence and certainty Turbulence and uncertainty
Incremental change Revolutionary change
Facts and theories Values
Logic Intuition
Boundaries and disciplines Interest, issues and problems
Organization Adaptation
Attitudes Feelings
Personalities and vested interest Principles & business philosophy
Quantity Quality and post – quality
Getting ahead Achieving balance and harmony
Drives Needs
Producer centered Customer centered
Focus on activity Focus on output
Conflict and rivalry Cooperation and consensus

Old New
Command and control Two-way communication & sharing
Bureaucracy hierarchy Horizontal relationship
Absolutes Solutions relative to context
Simplicity Diversity and relative complexity
One-dimension maximization Multi-dimensional trade – offs
Answer Question
Solutions Temporary accommodation
Sanction Consent
Authority Encouragement
Departmentalism and procedures Business processes
Discrete problems Holistic issues
Uniformed customers Demanding customers
Homogenous customers Diverse customers
Standard products and services Tailored products and services
Local customers International customers

Old New
Established relationship Integration and fragmentation
Sales Account management
Individuals Teams
The self and the organization The group and the environment
The ‘here and now’ The consequences and the future
Unsupported Facilitating processes & technology
‘Hoarding’ by the few Empowerment of the many
Single discipline Multi – disciplinary
Diversification Focus
Generalization Segmentation
Knowledge Competence
Teaching Learning
Specialist teaching institution Integration of learning & working
Initial qualification Continual updating
Lifetime practice Functional mobility

Old New
Career ladders Succession of projects
Standard employment Various patterns of work
Commodity products Search for differentiation
Limited competition Open competition
Barriers to entry Diversity of supply
Cartels and oligopoly Competition and choice
Zero – sum relationship Positive – sum collaboration
Independence and dependence Interdependence & partnersh

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 Any organization is facing today’s business
challenges:
 * Severe competition
 * Rapid change in technology, communication
and information
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 To have competitive supremacy, increasing profits,
and
maximum control over organization’s destiny it is
essential to innovate, learn quickly and respond
quickly
 Being aware of the environment and trends outside
the organization and working with those within the
organization who are keen to make change a
strategic
approach to required change
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 What is Change?

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 People Oriented Change: before changing
other people, we have to change our self,
first!
 Organizational Change: changing the
strategy, policy, system and procedures for
achieving an high performing organization
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 What is Change?

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 Changing the mindsets:
Creating hope
 Building beliefs
Shifting paradigms
Courage to Take Action
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 Creating hopes

Dream..
Dream …
Dream …
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Adapted from Ackerman (1997)
Developmental of change
• Improvement of existing situation
Time
Performance
• Transitional change
Implementation of a known new state
Management of the interim transition
state over a controlled period of time
Transformational change
• Emergence of a new state,
unknown until it takes shape,
out of the remains of the old
state; time period not easily
controlled
OLD
state
NEW
state
Transition
Birth
Growth
Plateau
Chaos
Death
Re-emergence
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Creating a New VisionCreating a New Vision
 Vision is a reality that has not yet come to be
 Vision is not a dream
 Vision reflects a depth and breadth of understanding
that
enables one to detect patterns or trend, and it guide a
leader through the present and into the future
 A vision of the future is more than just a plan or a goal.
It
a picture of what we want to be in the future
 Leader have a responsibility to transform the vision into
reality
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Creating a New VisionCreating a New Vision
A true vision must provide a clear image
of desirable future – one that represents
an achievable, challenging, and
worthwile long – range target toward
which people can direct their energies
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Yes, I’m sure that I can be happy
because of ….
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Values and BeliefsValues and Beliefs
 Values and beliefs are the critical dimensions in
leadership
effectiveness because they serve as the basis for
direction
and action
 A person with vision who cannot articulate beliefs and
values and inspire others is a dreamer, not a leader
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Tom Peters and Waterman describe the seven basic beliefs
shared by the excellent organizations they studies:
 Belief in being the best
 Beliefs in the importance of the details of execution
 Beliefs in the importance of people as individuals
 Beliefs in superior quality and service
 Beliefs that most members of the organization should be
innovators
 Beliefs in the importance of informality to enhance
communication
 Beliefs and recognition of the importance of economic
growth
and profits hendra kusnoto 27

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Ray Kroc, founder of Mc Donald’s, provide a good example of
the leader’s role in promoting and protecting values. The
stated values of McD are quality, service, value and
cleanliness.
Motorola, the first winner of MBQNA is a organization with a
strong belief system. Its stated “seven attributes of a quality
system”. The attributes are follows:
• Extend leadership and quality commitment form top to
bottom
• Communicate to every employee so that each knows that his
or her individual contribution helps
• Train every employee and teach them the corporate
language hendra kusnoto 28

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• Establish challenging goals and very high standards
• Recognize success in achieving quality through
incentives and other rewards
• Create a participative and cooperative culture
throughout the organization and between divisions
• Develop a high quality, creative, receptive, and
adaptive
work force by developing employees to their fullest
potential
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So I have to change all the
ways that I have done…..
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OLD PARADIGMS NEW PARADIGMS
THE
BUSINESS
Ore-Mining Exploitation
Up-stream industry
Mining-Based Processing
Down-stream industry
THE
OPERATIONS
Local and Domestic
organization (Mind-set)
Local standards
Global and International
Operations (Mind-set)
World-class standards
THE QUALITY Good organization Great Institution
THE PEOPLE People = Costs People = Human Capital,
Strategic Assets and
Strategic Partners
LEADERSHIP Managers are promoted Leadership is earned.
You do not need a title to
be a leader.
Transactional Leaders Transformational Leaders
Effective Managers
should be nice and
kind.
Effective Leaders deliver
results.
LEADERSHIP
DEVELOPMEN
T
Survival of the fittest
(By Nature)
Development of the
fittest (By Nature +
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THE CULTURE Strategy and Culture
are independent and
standing alone
Culture can drive or drag
Strategy
Build Any Culture Build High Performance
Business Culture
DEVELOPMENT Training Learning
Class Training –
Training is one way &
knowledge transfer.
Learning can be any where
and by any means. The role of
Interventions are key.
Training = Costs (Key
word: REDUCE!)
Development = Investment
(Key word: MEASURE THE
RETURNS!)
COST Efficiency Effectiveness (Cost
Conscious-ness is still
important)
Bureaucratic
Operations
Speedy + Agile Operations

EMPLOYMEN
T
Attracting mediocre
people
Employee of Choice –
Ability to attract the best
talent
The dullest = the
brightest
Employer of Choice –
Ability to retain the best
people
Life-time employment Life-time employability
KNOWLEDGE Knowledge =
Certification
Knowledge is the ability to
act
BUSINESS Business is dirty, the
ends justify the means.
Business with ethics.
Business is noble. To
improve the quality of life
of mankind.
Business is complex.
You need
sophisticated solutions
to play.
Business is simple. The
business principle uses
common sense.
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• Leader must possess the discipline, determination, and
courage necessary to get the job done. “A unique feature
of the human brain is its ability to form mental images of
the future and to translate these images into reality though
leadership and action”.
• Leaders must possess more than vision and values. They
must discipline, energy, determination, zeal, and courage
to carry them through the difficult periods and more
important, to keep them moving forward during thee good
times as well.

Turning Point
“The road stop here, what got you here, won’t get you
there”
GoodGood
Great
Great
First Curve
Second
Curve

2003 2008 (20XX)(2012) 20112003
Long-TermLong-Term
PlanPlan
StrategicStrategic
ScenarioScenario
History
Old Paradigms
Industrial Economy
Continuous Improvement
Future Vision
New Paradigms
Knowledge Economy
Innovation and Breakthrough
Extrapolation
Projection
Interpolation
Strategic Scenario - A Transformation ApproachStrategic Scenario - A Transformation Approach

GAP
BAUBAU
THE ROAD STOPS HERETHE ROAD STOPS HERE
STRATEGICSTRATEGIC
INITIATIVESINITIATIVES
STRATEGICSTRATEGIC
TARGETSTARGETS

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Capacity for changeCapacity for change
(resources)
• Capacity here means resources and these are staff time and,
where appropriate, money. To implement change you need to
identify the resources that will be required before you proceed
and make sure these are provided. Often, the cost benefits from
implementing energy efficiency measures and waste
minimisation programmes can provide the financial resources for
an ongoing programme of improvement
• It is usually the organisation’s own employees that have the
information, intuition, ideas and instincts necessary for
implementing change effectively. When given the capability and
the opportunity to participate in improvement programmes, it is
employees who often can find the greatest cost savings and
efficiency improvements
37

“We are what we repeatedly do. Excellence
then, is not an act, but a habit” – Aristotle
“Energy is equal to desire and purpose” - Sheryl Adams
Having got the other three factors in place (pressure, a clear
shared vision and capacity) you now have to implement the
planned change.
Keeping up momentum is what matters here and
implementing the PLAN – DO - CHECK – ACT
management methodology is essential to maintaining the
effectiveness and appropriateness of the change. Good
monitoring and analysis of the resulting data is essential.
> Make sure you continue to keep employees informed of
progress
38

 What is Change?

* Theory E
Theory E has as its purpose the creation of economic value,
often
expressed as shareholder value. Its focus on formal structure
and
systems. It is driven from the top down with extensive help
from
consultants and financial incentives. Change is planned and
programmatic
* Theory O
Theory O has as its purpose the development of the
organization’s
human capability to implement strategy and to learn from
actions
taken about the effectiveness of a changes made. Its focus is
on
the development of a high – commitment culture. Its means
consist of high involvement, and consultants and incentives are
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Theories E and O of ChangeTheories E and O of Change
Purpose & MeansPurpose & Means Theory ETheory E Theory OTheory O
PurposePurpose Maximize economic value Develop organizationalMaximize economic value Develop organizational
capabilitiescapabilities
LeadershipLeadership Top – downTop – down ParticipativeParticipative
FocusFocus Structure & systemsStructure & systems CultureCulture
PlanningPlanning ProgrammaticProgrammatic EmergentEmergent
MotivationMotivation Incentives leadIncentives lead Incentive lagIncentive lag
ConsultantsConsultants Large/knowledge –Large/knowledge – Small/process drivenSmall/process driven
drivendriven

Dimensions
Of Change
Theory E Theory O Theory E and O Combined
Goals Maximize shareholder
value
Develop organizational
capabilities
Explicitly embrace the paradox
between economic value and
organizational capabilities
Leadership
Manage change
from the top down
Encourage participation
from the bottom up
Set direction from the top
and engage the people below
Focus Emphasize structure
and systems
Build up corporate
culture, employees’
behavior and attitudes
Focus simultaneously on the
hard (structures and systems)
and the soft (corporate culture)
Process Plan and establish
programs
Experiment and evolve Plan for spontaneity
Reward System Motivate through
financial incentives
Motivate through
commitment – use pay
as fair exchange
Use incentives to reinforce
change but not to drive it
Use of
Consultants
Consultants analyze
problems and shape
solutions
Consultants support
management in shaping
their own solutions
Consultants are expert
resources who empower
employees

• Incremental Change Strategy – taking
necessary changes in sequential order
• Fundamental Change Strategy – the whole
organization and its relationship will
simultaneously change

MANAGEMENT
CHANGE
Generate energy, allocate resources, shift
paradigms, develop transformation team, develop
transformational leaders at all levels
STRATEGY
CHANGE
Product portofolios, market repositioning, value
proposition, competitive advantages, the winning
formula, business success model (KPI, strategic
initiative)
STRUCTURAL
CHANGE
Realignment and rebuilding of policies, management
systems, organization structures, business
processes, enabling technology
CULTURAL
CHANGE
Cultural assessment, value definition, a set of
behaviors, socialization, internalization,
externalization (Moments of Truth), reassessment
Fundamental ChangeFundamental Change

CULTURE
Business Acumen
A Culture of Excellence
THE STRATEGY MODEL
The Strategy Model for Fundamental ChangeThe Strategy Model for Fundamental Change
LEADERSHIP
Results-Based
Transformational
CHANGE
Fundamental, Strategic and Comprehensive
First WHO then WHAT
STRUCTURE & SYSTEMS
Accountability
Relationship
THE SOCIAL
CAPITAL

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BUSINESS
TRANSFORMATION
TECHNOLOGY CHANGE
PROCESS CHANGE
PEOPLECHANGE
Source : AGILE Change
Results
1. Anticipate Change
2. Generate
Confidence
3. Initiate action
4. Liberate thinking
5. Evaluate results
1. Phase One:
FOCUSED
Communicate
Vision, Strategy
and
commitment
2. Phase two:
Fast Target
3. Phase three :
Build on going
capability
The Business Transformation Implementation ofThe Business Transformation Implementation of
Change Model (Simplified Framework)Change Model (Simplified Framework)
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 What is Change?

Before change After
change
Desired
Condition
Current
Condition
Restraining
forces
Driving
forces
RF
DF
RF
DF
Lewin’s Force Field Analysis Model
Restraining and Driving ForcesRestraining and Driving Forces

Level of AcceptanceLevel of Acceptance
49

Awareness Desire Knowledge Ability Reinforcement
Business
Need
Concept and
Design
Implementation
Post-
implementation
Phasesofachange
project
Phases of a change for employees
Successful
Change

AwarenessAwareness05/13/13hendra kusnoto 51

DesireDesire

KnowledgeKnowledge

AbilityAbility

ReinforcementReinforcement05/13/13hendra kusnoto 55

 What is Change?

  Analysis “Force Field”
  Planning and Strategy ”Strategic Triangle”
  Implementation ”8 Steps”
  Supporting implementation ”Cycle of
Change”
 ”Storytelling”

Desired state
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58
DRIVING
FORCES
RESTRAINING
FORCES
CURRENT STATE
Kurt Lewin
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Operational
Capacity:
Ability to
deliver results
Legitimacy and
Support:
Comes from
authorizing
environment
Creating Public Value, Mark H. Moore
• Mission
• Goals
• Objectives
• Value
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In developing a change strategy, a leader must bring three
elements into coherent alignment:
•The change strategy must be substantively valuable in
the sense that the organization or the program produces
things of value to overseers, clients, and beneficiaries at
low cost in terms of money and authority.
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•It must be legitimate and politically sustainable. The
organization or program must be able to continually
attract both authority and money from the political
authorizing environment to which it is ultimately
accountable
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•It must be operationally and administratively feasible in
that the authorized, valuable activities can actually be
accomplished by the existing organization with help from
others who can be induced to contribute to the
organization’s or program’s goal.
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“People will not make sacrifices, even if they
are unhappy with the status quo, unless they
think the potential benefits of change are
attractive and unless they really believe that
a transformation is possible.”
The Heart of Change (John P. Kotter and
Dan S. Cohen)
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 Increase urgency
 Build the guiding team
 Get the vision right
 Communicate for buy-in*
 Empower action
 Create short – term wins
 Don’t let up
 Make change stick
* “70% of people’s problems need no other solution than understanding”
“Resolving conflict”, McConnon
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If A + B + D > Z, then C
C = Change
A = Dissatisfaction with the status quo
B = Knowledge about first practical steps
D = Shared vision of the future
Z = Costs of change (economic, psychological)
Adapted from Richard Beckhard’s Change Equation
C= f (A+ B + D) > Z
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Daryl R. Conner
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Explain
complex
idea to
spark
action
Image
Transmit
values
Further
team work
Tame the
grapevine Share
information
and
knowledge
Lead
people
into the
future
“Squirrel Inc.” Stephen Denning
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 Important to factor in the change process
 Techniques to work with change:
- Force Field Analysis,
- Strategic Triangle,
- 8 Steps model, Change Equation
- Cycle of Change, Storytelling

 What is Change?

 If change without direction business as
usual
 Change for better and the importance
of change is adapting to new era and
survival
70

For most organizations, the problems with
managing change derive from two key areas:
Too many unnecessary changes caused by cross
-
functional misunderstandings;
And too many well-intentioned changes made in
later stages without adequate consideration of
their negative impact
71

These four factors for failure then lead to the “treadmill
effect”:
• No time for reflection, planning and learning
• No improvement in design and implementation
• Increasing need to do something
• Increasing failure and unplanned consequences
• Go back to 1. and repeat
72

“The main dangers in this life are the people who want to
change everything or nothing” - Lady Nancy Astor
Before looking at the four factors for success, recognising
the four factors for failure in managing change can help
identify problems more rapidly, and can show where
initial action should be concentrated:
• Lack of consistent leadership
• De-motivated staff kept in the dark
• Lack of capacity: budget cuts, no spend-to-save policy,
short-term approach to investment, stressed out staff
working hard just to stand still
• Lack of initiative to “do something different”
73

 Change process goes through a series of phases that, in
total require a considerable length of time
 Skipping steps creates only an illusion of speed and
never produces a satisfying result
 Critical mistakes in any of the phases can have a
devastating impact, slowing momentum and negating hard
won gains
 Even very capable people often make at least one big
error
74

 Not Establishing a Great Enough Sense of Urgency
 Not Creating a Powerful Enough Guiding Coalition
 Lacking a Vision
 Undercommunicating the Vision by a Factor of Ten
 Not removing obstacles to the New Vision
 Not Systematically planning for and Creating Short-Term
Wins
 Declaring Victory Too Soon
 Not Anchoring Changes in the Corporation’s Culture
75

 Transformation requires the aggressive cooperation of
many individuals
 Change by definition always demand leadership
 The message that the status quo is more dangerous
than launching into the unknown must be given

 Successful transformation requires a minimum “critical” mass
 Guiding coalition members must include those that operate
outside of the normal hierarchy
 Teamwork is essential
77

 In failed transformations, you often find plenty of plans
and programmes, but no vision
 A vision says something that clarifies the direction in
which an organization needs to move
78

 In more successful transformation efforts, executives use all
existing communication channels to broadcast the vision
 Communication comes in both words and deeds
 Nothing undermines change more than behaviour by
important individuals that is inconsistent with their words
79

 Too often,an employee understands the new vision and wants to make
it happen. But something appears to be blocking the path,
 Organization structures, systems and procedures can seriously
undermine transformation efforts.
 The worst of all are bosses who refuse to change and make demands
that are inconsistent with the overall effort.
80

 Without Short-Term wins, too many people give up or actively
join the ranks of those who have been resisting change
 Short-Term wins help keep the urgency level up and force
detailed analytical thinking that can clarify or revise visions
81

 While celebrating a win is fine, declaring the war won can
be catastrophic.
 Changes must sink deeply into an organizational culture.
 New approaches are fragile and subject to regression.
82

 Change sticks when it becomes “the way we do things around
here.”
 There must be a conscious attempt to show people how the new
approaches, behaviours, and attitudes have helped improve
performance.
 Take sufficient time to make sure that the next generation of top
management really does personify the new approach.

 What is Change?

Pressure for
change
Clear shared
vision
Capacity
(resources)
Action (and
performance)
3
Policy and action plan in
place
Regular reviews
Active commitment from top
management
3
High level of awareness and
support at all levels
Staff highly motivated
3
Resources (staff and
funding) routinely committed
Cost savings re-invested for
further improvements
3
Action being taken and
embedded throughout the
organisation
Monitoring and reporting of
progress
2
Policy agreed and
communicated to all staff
2
Representatives from all
levels of management chain
involved in planning process
and drawing up action
plan(s)
All staff given opportunity to
make an input
2
Key staff working on plans
and projects.
Staffing and funding needs
identified and resources
becoming available
2
Wider engagement across
the organisation
‘Low-cost’ and more ‘no-
cost’ measures implemented
1
Board level “champion”
appointed
Drafting of policy
1
Key and supportive staff
identified for assisting in
drafting policy, taking action,
and driving the process
1
“Champion” appointed at
middle management level (to
support the Board’s
“Champion”).
Training & development
needs assessment
1
Commencement of action at
some levels of the
organisation.
Some ‘no-cost’ measures
implemented
0
No explicit policy
‘Business as usual’, no
forward planning
Lack of consistent
leadership & responsibility
(buck-passing)
0
De-motivated staff kept in
the dark
No communication.
General mistrust
0
No investment. High stress
levels in over-worked and
under-valued staff
No training & development
0
Zero action
(or limited to crisis
management)
85

Vision
Vision
Vision
Vision
Vision
Skills
Skills
Skills
Skills
Skills
Incentives
Incentives
Incentives
Incentives
Incentives
Resources
Resources
Resources
Resources
Resources
Action Plan
Action Plan
Action Plan
Action Plan
Action Plan
Change
Confusion
Nervousness
Gradual Change
Frustration
False Starts

 How Things Will Be Better With the Change
 More Than Sloganeering
 Leaders and Change Agents Need Their Own
Individual Visions and Need to Know How That
Fits Into the Organization’s Vision
 People Need to See How They Fit Into That
Vision

 Develop Detailed, Multi-dimensional Plans
 Change Description
 Business Objectives
 Human Objectives
 Key Role Map
 Vision
 Detailed Activities, Resources, Timelines
 Measurements
 Recognize That This Is a Journey
 Will Need to Adapt Plan As Needs Change

 There Is a Need to Develop a Comprehensive Plan
for the Change
 There Is a Need to Get the Organization Ready for
the Change
 But If It Takes Too Long, People Lose Interest and
Motivation
 So, Plan for Short Projects That Will Engage the
People

 The Past Bounds Future Success
 Identify Critical Success Factors From Previous
Successful Changes in the Organization
 Surveys
 Interviews
 Lessons Learned Sessions
 Acknowledge Past Failures
 Explicitly Plan on Countermeasures

 At All Levels Within the Organization
 Teach Them Their Job
 Establish a Clear Vision
 Articulate That Vision
 Communicate With the Affected Groups
 Focus Energies on Their Direct Reports
 Monitor Progress
 Eliminate Obstacles
 Recognize and Reward Short-term Wins
 Stick With It for the Long Haul

 Create a Key Role Map of the Formal Organization
 Sponsors (at All Levels)
 Change Agents
 Targets
 Augment With Identification of Informal Organization
Key People (Understand Why They Have This
Influence)
 Opinion Shapers
 Gate Keepers
 Idea Champions
 Develop an Understanding of Their
 Level of Influence
 Level of Commitment to the Change

 Assess the Organization on Their Readiness for This
Particular Change
 Surveys
 One-on-One Discussions
 Understand Where People Are
 Early Adopters
 Late Adopters
 Laggards
 Are There Outside Organizations That Are Influencers?
 Understand Their Frames of Reference and Develop
Communication Strategies

 Avoid the Dedicated Resistors, Focus
on Early Adopters (About 20% of the
Population)
 Helps to Get Some Early Wins

 Get People Involved Early in the Planning
 Even If They Can’t Plan “What”, They Can Plan “How”
 They Are Changed by the Act of Participating in
Planning the Change
 Surfaces Resistance Early and Can
Potentially Manage It

 Substitute One Fear for Another
 Make the Anxiety Associated With Not Changing
Greater Than the Anxiety of Changing
 Intentionally Create Disorder
 Remove the Mechanisms That Allow People to
Stay the Same

 Keep It Simple – No Jargon
 Use Language of the People
 Use Storytelling
 Use Different Mediums
 Memos
 Group Meetings
 Stories in Newsletters
 One-on-one Meetings
 (Have Different Levels of Impact)
 Change Style of Communication Depending Upon
 Where You Are in the Change
 Who You Are Communicating With
 Walk the Talk, Be Honest

Sample
Memo From Director General to Manager:
Today at 11 O'clock There Will Be a Total Eclipse of the Sun. This Is When the
Sun Disappears Behind the Moon for Two Minutes. As This Is Something That
Cannot Be Seen Every Day, Time Will Be Allowed for Employees to View the
Eclipse in the Car Park. People Should Meet in the Car Parking Area at Ten to
Eleven, When I Will Deliver a Short Speech Introducing the Eclipse, and
Giving Some Background Information. Safety Goggles Will Be Made Available
at a Small Cost.
Memo From Manager to Department Head:
Today at Ten to Eleven, All Staff Should Meet in the Car Parking Area. This
Will Be Followed by a Total Eclipse of the Sun, Which Will Disappear for Two
Minutes. For a Moderate Cost, This Will Be Made Safe With Goggles. The
Director General Will Deliver a Short Speech Beforehand to Give Us All Some
Background Information. This Is Not Something That Can Be Seen Every Day.

 In Terms That Have Meaning to Individuals and Teams
 Ask Them What a Reward Would Look Like to Them
 Highly Visible
 Reward Throughout the Change, Not Just at the End

 Plan for Goals (Long and Near Term) That Are
Measurable, Tangible and Clear
 Explicitly Tied to Vision
 Not a Count of Activities
 # Of People Trained in CM Projects/programs
 # Of Procedures Written
 Performance Results That Matter to Customers,
Employees or Shareholders
 Reduction in Delivered Defects
 Reduction in Cycle Time
 Reduced Escaped Defects Resulting in Reduced
Rework

 Things Often Get Worse Before They Get Better
 Increase the Communication
 Change the Medium and Words
 Focus on What Is Ahead
 Provide As Much Information As Possible
 Allow Resistance to Surface and Manage It

 Resistance Can Be at Systemic or Behavioral Level
 Systemic – Lack of Appropriate Knowledge,
Information, Skills and Managerial Capacity
(Cognitive)
 Behavioral – Reactions, Perceptions and Assumptions
(Emotional)
 Acknowledge the Pain of Changing

 Letting Go of Familiar Past (Perhaps a
Romanticized View)
 Confronting Feelings About an Uncertain Future
 Dealing With Loss of Face
 Redesigning a Focus on New Realities
 Working on These in Public, Facilitated Forums
Allows People to Constructively Express Their
Anxiety and Anger and Helps to Reduce
Passive-Aggressive Inertia and Sabotage

 Resistance Is
 Inevitable
 A Natural Function of Change
 Manageable
 Resistance Is Not
 Necessarily Logical
 A Sign of Disloyalty
 To Be Taken Personally
 A Sign That the Change Project Is Out of Control

 Train Managers As Facilitators for the Change
 Helps Them to Demonstrate Active Commitment
to the Change
 Can Immediately Reinforce the Training on the
Job
 Trainers Are Generally Not Held Accountable for
Achieving Results
 Development and Delivery Are Much Less
Important Than Group Dynamics and the
Perception That Leadership Is Interested

 Study Groups
 “On-the-Dash” Coaching
 Web-based
 Classroom Training

 Educate Leaders of the Change As Well As the
Targets of Their Roles in the Change
 To Be Open to Change
 To Anticipate Change, Not Just React to It
 To Accept That Change Causes Stress and to
Developing Coping Mechanisms

 Simultaneously Pushing for Change While Allowing Self-
learning to Unfold
 Being Prepared for a Journey of Uncertainty
 Seeing Problems As Sources of Creative Resolution
 Having a Vision, but Not Being Blinded by It
 Valuing the Individual and the Group
 Incorporating Centralizing and Decentralizing Forces
 Being Internally Cohesive, but Externally Oriented
 Valuing Personal Change Agency As the Route to System
Change

“The Ultimate Measure of a Man Is Not
Where He Stands in Moments of Comfort,
but Where He Stands at Times of
Challenge and Controversy”
(Martin Luther King, Jr.)

 What is Change?

112
Draft

Agenda
Arah dan Model Transformasi
Strategi Transformasi
Langkah-langkah Transformasi
Daftar Isi

Arah Transformasi
Visi 2020Visi 2020
Visi 2020 Antam adalah: ““To be a global mining based
corporation, with healthy growth and world-class standards”.
Pengertian:
 Global diartikan sebagai meningkatkan ukuran dan
praktek, dan mengembangkan operasi di luar negeri
 Mining based diartikan sebagai berbasis sumber daya
mineral, diversifikasi bisnis, dan integrasi;
 Healthy growth diartikan sebagai pertumbuhan diatas
rata-rata perusahaan sejenis, dan
 World class standards diartikan sebagai kemampuan
organisasi untuk menerapkan prinsip-prinsip operational
excellence menuju high performing organization
berdasarkan kaidah-kaidah best in class performance
Visi 2020 Antam adalah: ““To be a global mining based
corporation, with healthy growth and world-class standards”.
Pengertian:
 Global diartikan sebagai meningkatkan ukuran dan
praktek, dan mengembangkan operasi di luar negeri
 Mining based diartikan sebagai berbasis sumber daya
mineral, diversifikasi bisnis, dan integrasi;
 Healthy growth diartikan sebagai pertumbuhan diatas
rata-rata perusahaan sejenis, dan
 World class standards diartikan sebagai kemampuan
organisasi untuk menerapkan prinsip-prinsip operational
excellence menuju high performing organization
berdasarkan kaidah-kaidah best in class performance

Arah Transformasi (samb)
Visi 2020Visi 2020
 Visi 2020 di atas menunjukkan bahwa di masa depan
akan Antam memposisikan dirinya menjadi
perusahaan global yang bergerak dalam bisnis
berbasis komoditas tambang dan beroperasi di manca
negara
 Untuk merealisasikan Visi Antam tersebut dibutuhkan
konsep manajemen transformasi yang mampu
dijadikan pedoman bagi segenap pimpinan Antam
 Konsep manajemen transformasi dimaksud
diwujudkan dalam bentuk model transformasi Antam
sebagai berikut:
 Visi 2020 di atas menunjukkan bahwa di masa depan
akan Antam memposisikan dirinya menjadi
perusahaan global yang bergerak dalam bisnis
berbasis komoditas tambang dan beroperasi di manca
negara
 Untuk merealisasikan Visi Antam tersebut dibutuhkan
konsep manajemen transformasi yang mampu
dijadikan pedoman bagi segenap pimpinan Antam
 Konsep manajemen transformasi dimaksud
diwujudkan dalam bentuk model transformasi Antam
sebagai berikut:

Model Manajemen Transformasi
• GCG
• Arahan
Strategik
• Nilai-nilai
Perusahaan
• GCG
• Arahan
Strategik
• Nilai-nilai
Perusahaan
Kebijakan
Bisnis
Sistem&
Prosedur
Pertumbuha
n
Pertumbuha
n
Stuktur
Organisasi
KinerjaKinerja
Kapabilitas
Organisasi
Rencana
Strategik
Sistem
Manajemen
Kinerja
Kepemimpinan Korporat
Persyaratan Bisnis KSF Hasil

Model Manajemen Transformasi (samb)
 Untuk melakukan transformasi, Antam telah
mempersiapkan serangkaian persyaratan bisnis
seperti GCG, arahan strategis dan nilai-nilai
perusahaan yang berfungsi sebagai landasan untuk
mencapai visi
 Untuk mengimplementasikan visi, Antam telah
mempersiapkan Rencana Jangka Panjang Perusahaan
(RJPP) yang berfungsi sebagai pedoman manajemen
di dalam menjalankan strategi korporat
 Antam telah mempersiapkan stuktur organisasi,
kebijakan bisnis, sistem manajemen kinerja serta
sistem dan prosedur
 Untuk melakukan transformasi, Antam telah
mempersiapkan serangkaian persyaratan bisnis
seperti GCG, arahan strategis dan nilai-nilai
perusahaan yang berfungsi sebagai landasan untuk
mencapai visi
 Untuk mengimplementasikan visi, Antam telah
mempersiapkan Rencana Jangka Panjang Perusahaan
(RJPP) yang berfungsi sebagai pedoman manajemen
di dalam menjalankan strategi korporat
 Antam telah mempersiapkan stuktur organisasi,
kebijakan bisnis, sistem manajemen kinerja serta
sistem dan prosedur

Model Manajemen Transformasi (samb)
Antam telah mempersiapkan serangkaian
persyaratan bisnis dengan baik sebagaimana
perusahaan pada umumnya. Untuk mencapai
keberhasilan transformasi, Antam perlu
mengembangkan kapabilitas organisasi
(organization capability) yang merupakan faktor
kunci keberhasilan di dalam proses transformasi
Antam perlu mengembangkan strategi
transformasi yang tepat berdasarkan strategi
korporat sebagai berikut:
Antam telah mempersiapkan serangkaian
persyaratan bisnis dengan baik sebagaimana
perusahaan pada umumnya. Untuk mencapai
keberhasilan transformasi, Antam perlu
mengembangkan kapabilitas organisasi
(organization capability) yang merupakan faktor
kunci keberhasilan di dalam proses transformasi
Antam perlu mengembangkan strategi
transformasi yang tepat berdasarkan strategi
korporat sebagai berikut:

Agenda
Daftar Isi

Strategi Transformasi
Strategi Korporat:
Optimize core commodity
business or Continuously to
increase cost efficiency,
effectiveness and
competitiveness
Selectively diversify mining-
based businesses or Smartly
optimize high potential value
business integrations
Strive for operations
excellence and technology
development
Strategi Korporat:
Optimize core commodity
business or Continuously to
increase cost efficiency,
effectiveness and
competitiveness
Selectively diversify mining-
based businesses or Smartly
optimize high potential value
business integrations
Strive for operations
excellence and technology
development
Strategi Transformasi:
Fokus pada peningkatan
efisiensi
Pengembangan kemampuan
kewirausahaan dan inovasi
bisnis
Mengembangkan kemampuan
operations and performance
excellence di seluruh
organisasi
Fokus pada peningkatan
efisiensi
Pengembangan kemampuan
kewirausahaan dan inovasi
bisnis
Mengembangkan kemampuan
operations and performance
excellence di seluruh
organisasi

Strategi Transformasi
Strategi Korporat:
Balance leverage on asset
performance, profitability,
shareholders value,
community welfare and
environment conservation
Effectively develop people
capability and capacity
Strategi Korporat:
Balance leverage on asset
performance, profitability,
shareholders value,
community welfare and
environment conservation
Effectively develop people
capability and capacity
Mengembangkan high
purpose organization
purpose people and culture
purpose organization
purpose people and culture

Agenda
Daftar Isi

Langkah-langkah Transformasi
1. Meningkatkan sense of urgency
2. Membentuk tim pemandu (guiding team)
3. Merumuskan arahan strategis (visi, misi dan
strategi korporat)
4. Mengkomunikasikan arahan strategis
5. Memberdayakan pimpinan dan pegawai
6. Menjalankan proyek manajemen transformasi
7. Mengkonsolidasikan transformasi
8. Membangun budaya perusahaan baru
1. Meningkatkan sense of urgency
2. Membentuk tim pemandu (guiding team)
3. Merumuskan arahan strategis (visi, misi dan
strategi korporat)
4. Mengkomunikasikan arahan strategis
5. Memberdayakan pimpinan dan pegawai
6. Menjalankan proyek manajemen transformasi
7. Mengkonsolidasikan transformasi
8. Membangun budaya perusahaan baru

Langkah 1:
Meningkatkan Sense of Urgency
Saat ini kita semua mengetahui bahwa Direktur
Utama telah menyampaikan pesan kepada
segenap pimpinan dan pegawai untuk
meningkatkan kesadaran bahwa kita harus
berubah seiring dengan transformasi
lingkungan bisnis yang ditandai dengan krisis
finansial global
Dirut menekankan bahwa dampak krisis
terhadap Antam cukup signifikan, yaitu
turunnya harga komoditi dan pendapatan
perusahaan
Saat ini kita semua mengetahui bahwa Direktur
Utama telah menyampaikan pesan kepada
segenap pimpinan dan pegawai untuk
meningkatkan kesadaran bahwa kita harus
berubah seiring dengan transformasi
lingkungan bisnis yang ditandai dengan krisis
finansial global
Dirut menekankan bahwa dampak krisis
terhadap Antam cukup signifikan, yaitu
turunnya harga komoditi dan pendapatan
perusahaan

Meningkatkan Sense of Urgency (samb)
Untuk mengatasi dampak tersebut, Dirut
menekankan perlunya upaya-upaya perbaikan,
efisiensi dan inovasi di segala bidang sehingga
kita bisa mengatasi persoalan
Selanjutnya ditegaskan bahwa setiap pemimpin
berkewajiban untuk meneruskan pesan ini
kepada para pegawai di lingkungannya dan
menjalankan program-program yang berkaitan
dengan peningkatan efisiensi dan inovasi
Untuk mengatasi dampak tersebut, Dirut
menekankan perlunya upaya-upaya perbaikan,
efisiensi dan inovasi di segala bidang sehingga
kita bisa mengatasi persoalan
Selanjutnya ditegaskan bahwa setiap pemimpin
berkewajiban untuk meneruskan pesan ini
kepada para pegawai di lingkungannya dan
menjalankan program-program yang berkaitan
dengan peningkatan efisiensi dan inovasi

Langkah 2:
Membentuk Tim Pemandu (Guiding Team)
Unsur Pimpinan Transformasi:
 Promotor Transformasi: Direktur Utama
 Sponsor Transformasi: Seluruh anggota
Direksi
 Koordinator Manajemen Proyek
Transformasi: Direktur Sumber Daya Manusia
Unsur Pimpinan Transformasi:
 Promotor Transformasi: Direktur Utama
 Sponsor Transformasi: Seluruh anggota
Direksi
 Koordinator Manajemen Proyek
Transformasi: Direktur Sumber Daya Manusia

Membentuk Tim Pemandu (Guiding
Team)
Unsur Pengelola Proyek ManajemenTransformasi:
 Project Manager Transformasi adalah pimpinan
Proyek Managemen Transformasi
 Eksekutif Transformasi adalah semua pimpinan
satuan kerja di Kantor Pusat dan unit-unit
 Agen Transformasi adalah pegawai yang
ditugaskan menjalankan proyek transformasi
Unsur Pengelola Proyek ManajemenTransformasi:
 Project Manager Transformasi adalah pimpinan
Proyek Managemen Transformasi
 Eksekutif Transformasi adalah semua pimpinan
satuan kerja di Kantor Pusat dan unit-unit
 Agen Transformasi adalah pegawai yang
ditugaskan menjalankan proyek transformasi

Langkah 3:
Merumuskan Arahan Strategis
Tim Perumus dan Sosialisasi Arahan Strategis
telah dibentuk
Hasil kerja tim adalah rumusan arahan strategis
yang memuat rumusan visi, misi, strategi dan
arahan yang akan dipergunakan oleh Tim RJPP
dan tim-tim lainnya
Saat ini perumusan arahan strategis sedang
dalam tahap penyelesaian
Tim Perumus dan Sosialisasi Arahan Strategis
telah dibentuk
Hasil kerja tim adalah rumusan arahan strategis
yang memuat rumusan visi, misi, strategi dan
arahan yang akan dipergunakan oleh Tim RJPP
dan tim-tim lainnya
Saat ini perumusan arahan strategis sedang
dalam tahap penyelesaian

Merumuskan Arahan Strategis (samb)
Apabila rumusan arahan strategis telah disetujui
oleh Komisaris, maka tahap selanjutnya adalah
mensosialisasikannya kepada seluruh pegawai
Pihak yang paling tepat untuk mensosialisasikan
arahan strategis adalah Unsur Pimpinan
transformasi dibantu oleh Tim Sosialisasi Arahan
Strategis
Apabila rumusan arahan strategis telah disetujui
oleh Komisaris, maka tahap selanjutnya adalah
mensosialisasikannya kepada seluruh pegawai
Pihak yang paling tepat untuk mensosialisasikan
arahan strategis adalah Unsur Pimpinan
transformasi dibantu oleh Tim Sosialisasi Arahan
Strategis

Langkah 4:
Memberdayakan Pimpinan dan Pegawai
Untuk mensukseskan manajemen transformasi,
maka manajemen Antam perlu memberdayakan
pimpinan dan pegawai di semua level organisasi
Proses pemberdayaan dapat dilakukan dengan
cara:
 memberikan kesempatan untuk mengajukan
ide-ide baru mengenai transformasi
 memberikan kepercayaan untuk menjalankan
proyek manajemen
 mendelegasikan tugas-tugas kepemimpinan
Untuk mensukseskan manajemen transformasi,
maka manajemen Antam perlu memberdayakan
pimpinan dan pegawai di semua level organisasi
Proses pemberdayaan dapat dilakukan dengan
cara:
 memberikan kesempatan untuk mengajukan
ide-ide baru mengenai transformasi
 memberikan kepercayaan untuk menjalankan
proyek manajemen
 mendelegasikan tugas-tugas kepemimpinan

Langkah 5:
Menjalankan Proyek Manajemen
Transformasi
Untuk menjalankan strategi transformasi
dengan baik, Unsur Pimpinan Transformasi
Antam perlu menjalankan serangkaian
proyek manajemen transformasi sbb:
Untuk menjalankan strategi transformasi
dengan baik, Unsur Pimpinan Transformasi
Antam perlu menjalankan serangkaian
proyek manajemen transformasi sbb:

Proyek Manajemen Transformasi
Tujuan: Membangun kapabilitas organisasi Antam untuk
mensukseskan proses transformasi
Proyek Manajemen Tujuan
• Peningkatan Efisiensi dan Inovasi - meningkatkan efisiensi,
dan inovasi proses,
sistem dan produk
• Pengembangan Budaya Perusahaan - mengembangkan budaya
perusahaan PIONEER, team
building dan budaya
pembelajaran
• Pengembangan Kapabilitas Operasi - meningkatkan kualitas
(Manajemen Mutu) berbasis berbasis operations and performance
Malcom Baldrige danTQM excellence

• Pengembangan Kepemimpinandan - meningkatkan kompetensi
Pegawai berbasis high purpose kewirausahaan pemimpin
organization dan pegawai yang concern
pada masyarakat dan
lingkungan
• Alignment Kebijakan dan Sistem - mengembangkan dan
Manajemen Strategis menyelaraskan kebijakan
dengan sistem – sistem
manajemen strategis (GCG,
Arahan Strategis, SMK,
SMUK, dll)

• Pengembangan Organisasi dan Proses - menyediakan organisasi
Bisnis dan proses bisnis yang
memiliki nilai tambah tinggi
• Pengembangan Teknologi - meningkatkan daya saing
perusahaan berbasis
teknologi yang sesuai
dengan strategi korporat

Langkah 7:
Mengkonsolidasikan Transformasi
Koordinator Manajemen Proyek Transformasi
melakukan konsolidasi semua proyek
manajemen perubahan agar tercipta sinergi yang
efektif dibantu oleh PMO dan ICT
Koordinator tersebut juga berkewajiban menjaga
stamina setiap pihak yang terlibat di dalam
manajemen transformasi Antam melalui
pemberian motivasi, fasilitas dan imbalan
Koordinator Manajemen Proyek Transformasi
melakukan konsolidasi semua proyek
manajemen perubahan agar tercipta sinergi yang
efektif dibantu oleh PMO dan ICT
Koordinator tersebut juga berkewajiban menjaga
stamina setiap pihak yang terlibat di dalam
manajemen transformasi Antam melalui
pemberian motivasi, fasilitas dan imbalan

Langkah 8:
Membangun Budaya Perusahaan Baru
 Koordinator Manajemen Proyek Transformasi
bertugas mengkoordinasikan semua kegiatan
yang berkaitan dengan implementasi proyek
manajemen transformasi dengan pengembangan
budaya perusahaan baru
 Pada saat ini Tim Perumus sedang mengkaji nilai-
nilai budaya perusahaan yang perlu dikembangkan
di lingkungan Antam. Hasil kerja tim ini akan
dipergunakan oleh Pengelola Proyek
Pengembangan Budaya Perusahaan
 Koordinator Manajemen Proyek Transformasi
bertugas mengkoordinasikan semua kegiatan
yang berkaitan dengan implementasi proyek
manajemen transformasi dengan pengembangan
budaya perusahaan baru
 Pada saat ini Tim Perumus sedang mengkaji nilai-
nilai budaya perusahaan yang perlu dikembangkan
di lingkungan Antam. Hasil kerja tim ini akan
dipergunakan oleh Pengelola Proyek
Pengembangan Budaya Perusahaan

Langkah 8:
Membangun Budaya Perusahaan Baru
 Pengelola Proyek Pengembangan Budaya
Perusahaan berkewajiban melakukan survey
budaya perusahaan dan mengembangkan
budaya perusahaan baru berdasarkan nilai-nilai
PIONEER
 Di dalam melakukan sosialisasi nilai-nilai
PIONEER, Pengelola Proyek Pengembangan
Budaya Perusahaan melakukan kerjasama
dengan Tim Sosialisasi Arahan Strategis
 Pengelola Proyek Pengembangan Budaya
Perusahaan berkewajiban melakukan survey
budaya perusahaan dan mengembangkan
budaya perusahaan baru berdasarkan nilai-nilai
PIONEER
 Di dalam melakukan sosialisasi nilai-nilai
PIONEER, Pengelola Proyek Pengembangan
Budaya Perusahaan melakukan kerjasama
dengan Tim Sosialisasi Arahan Strategis

 Questions and comments, please…
 Thank You, and Good Luck…..
 hendra.kusnoto@antam.com
 hendra.koesnoto@yahoo.co.id
 HP: 081519028097

Change management

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