4 Module Managing Talented Person_cphcm_yogya

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Managing Talented People Critical Element for Succession Plan & Talent Management System

By Pungki Purnadi www.pungkipurnadiassociates.com Yogyakarta, 11th June 2016 & 21st April 2018 Duta Wacana Christian University (UKDW) Yogyakarta as part of Certified Talent Management (CTM) Program Certified Professional Human Capital Management (CPHCM) - Indonesia

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Support the Succession Planning program

Certified Professional Human Capital Management (CPHCM) - Indonesia

Astra International Tbk. – The Pyramid

TOP Management 50 Executives 234 Managers 2.257 Supervisor 12.722 Staff 100.140

Certified Professional Human Capital Management (CPHCM) - Indonesia

Far above average Above average average

PERFORMANCE

Human Capital Value Map 7 CAREER PERSON

CAREER PERSON

3 FUTURE STAR

1 STARS STARS

4

8

POTENTIAL CANDIDATE

2 FUTURE STAR Promotability Rating

CAREER PERSON

Low

9

6

CADET

Medium

ACTIVE 5 LEARNER / RAW DIAMOND

Two or more level One more level Developed within level

High

POTENTIAL Certified Professional Human Capital Management (CPHCM) - Indonesia

Individual Performance Management Individual Performance Plan

Jan Coaching & Counseling

Performance Appraisal

Dec

•

Final review

•

Feedback / Result Communication (Reward & Punishment

Jun Performance Review Achievement/ progress review (January – June)

Certified Professional Human Capital Management (CPHCM) - Indonesia

Leadership Competence Development Program Business Leadership

1 week Astra Development Center Individual Development Programs

Astra Executive Program

Organizational Leadership Astra General Management Program Managerial Leadership

2 week in class 6 months project

Astra Middle Management Program 2 week in class 4 months project Astra First- line Management Program 1 week in class 4 months project

Interpersonal Leadership

Self Leadership

Astra Basic Management Program

1 week in class 3 months self-improvement review

Certified Professional Human Capital Management (CPHCM) - Indonesia

In addressing the capability gaps of the Technical Executives, there is a need to accentuate and refocus the existing framework to develop their cross functional capabilities Managerial Path

Technical Path

SALARY BAND MD/CEO

E7

JOB GRADE

Senior GM

E6

Custodian

L6

Principal

L5

E3

Manager

Staff

L4

E2

People Skills Business Skills

Senior Manager

IT

E4

QS

GM

HSE

E5

Senior Engineers A3

B3

C3

D3

E3

F3

L3

Engineers A2

F2 L2 Junior Engineers

E1

A1

F1 L1

Common Core Skills

Orientation Programme

Technical Induction

ENTRY LEVEL PROGRAMMES

SGDP L1 Programme

OPU Specific Orientation Programme

Cross-functional rotation within the same business Cross attachment to other businesses is not encouraged

Cross-functional rotation Minimum of 2 positions in E1 Maximum of 3 years per position Cross attachments to other businesses are allowed. Approximately 12 to 18

months

LEGENDS A, B, C, D, E, F are examples of functions or disciplines within a particular skill group. Professional Management (CPHCM) - for Indonesia A1, A2, Certified A3 represents position levelsHuman i.e. A1 forCapital Junior Engineer, A2 for Engineer and A3 Senior Engineer.

MYPR LEADERSHIP & PERFORMANCE GRID : E6 Below

1

2

•Distinctive

•Leadership behaviors

465 in QL Quadrant (30.3%) 2

•Effective

3

•Developing

4

6

440

422

512

107

•Needs

3

22

1

Development

•Below

expectations

4 (*) Difference due to: • Staff was not rated

18

•Meets

expectations

3

•Exceeds

expectations

•Outstanding

2

Certified Professional Human Capital Management •Current performance(CPHCM) - Indonesia

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Danamon Talent Management Overview Talent Identification/Review Objective

To assess talent inventories as source of internal talent/bench strength of the organization, based on current performance and future capabilities required of the leadership team as a whole.

Benefit to the Supervisors

• Gives a profile of business’s cumulative leadership strengths and weaknesses. • Identifies skill gaps in order to implement strategy, to make better staffing decisions. • Provides a standard framework for performance review throughout the Bank, upon which staffing and development plans can be created.

Benefit to the Employees

• Provides feedback on individual’s performance, professional skills and potential when measured against organization wide standards. • Enable to review employee’s long-term career objectives and next assignment potential in the context of the Organization’s assessment and their own needs. • Increase the opportunity for taking a proactive role in managing and developing their own careers

Certified Professional Human Capital Management (CPHCM) - Indonesia

Danamon Talent Management Overview The Performance/Potential Matrix CONTRIBUTOR Have held a position long enough to be expected to perform the job adequately.

TURN Have been able to demonstrate competence in at least 2-3 unique contributions expected at a higher crossroads layer. GROWTH Demonstrate excess capacity in their current role, but have not demonstrated the ability to perform at least 2-3 unique contribution skills from a higher crossroads layer. MASTERY Work at learning and using new skills in their role, but do not demonstrate competence or desire for acquiring these unique contributions and skill required at higher organizational layer.

P O T E N T I A L

FULL PERFORMER Consistently meets and occasionally may exceed output requirements.

 Recently promoted (within the last year.)  Must be coached to reach full performance

 Meets the performances standards for the current position.  Demonstrates the capacity to make a crossroads turn in the future.

4B

3A

CONTRIBUTORS

PROMISING

 Fully performing or exceptional in some dimensions, but shows deficiencies in others.  Incumbents should be coached to full performance

 Meets the performances standards for the current position.  Could assume a broader assignment within the current crossroads layer.

4C

3B

CONTRIBUTORS

PROMISING

 Performance falls short of the standards  Provided that business results are not being jeopardized, a performance improvement plan must be executed immediately

 Meets the performances standards for the current position.  Probably capable of Performing effectively in another role of similar management scope.

5

4A

LAGGERS

CONTRIBUTORS

EXCEPTIONAL PERFORMER Demonstrates excellent leadership abilities and achieves results in a way that builds and maintain relationship. • Mastery in current role • Ready to make a crossroads turn.

1

STAR

• Mastery in current role • Ready for a broader assignment within the current crossroads layer.

2A

TOP PERFORMER

• Mastery in current role • Capable of performing effectively in different roles of similar management scope.

2B

TOP PERFORMER

Certified Professional Human CapitalPERFORMANCE Management (CPHCM) - Indonesia

Danamon Talent Management Overview Soft Competencies to Determine Potential Levels Core Competencies Personal Effectiveness Professional Conduct Customer Focus Leadership Competencies Relationship Building

Business Leadership

People Development

Team Leadership

Grade SEVP - VP Change Champion Leads changes, inspires, and motivate; builds commitment

Role Model Maintains organizational credibility and ethics

Creating Customer Value Knows the competition and company’s positioning

Grade SEVP & EVP

Grade SVP & VP

Building Strategic Alliances Promotes

Building Business Partner

collaboration with strategic alliances

Uses interpersonal styles & communication methods

Visionary Leadership

Strategic Decision Making

Creates clear future state & inspire commitment

Builds strategic approach & decisive

Grooming Talents

Aligning Performance for Success

Develops and retains competent people

Guides others to accomplish

Creating High Performing Teams

Integrating Cross Function Teams

Builds strong and productive teams

Facilitates cross function collaboration

Certified Professional Human Capital Management (CPHCM) - Indonesia

Danamon Talent Management Overview The Potential Levels

Turn Potential

The ability & desire to move to a job at a different layer of the crossroads model. Has demonstrated behaviors more than the competency standards in his/her level. Growth Potential

The ability & desire to move to a bigger /more complex job along the same layer of the crossroads model. Has demonstrated behaviors in accordance with the competency Standard in his/her level. Mastery Potential

The ability & desire to keep current with changing job requirements and deepen experience and specialization. Will not move along or to a higher crossroads model. Still need development and lack of some behaviors of the competency standard in his/her level. Certified Professional Human Capital Management (CPHCM) - Indonesia

HOMOTOTALUS criteria 1. Fulfill recruitment global requirements 2. Walk the talk with Total’s values 3. Borderless (at least can work at two continent) 4. Mobility (can move faster at anytime at anyplace of assignment) and Adaptive (can work with so many tribes) 5. Fulfill high potential (vivier) requirement 6. Integrity (free from audit report and fraud indication) 7. Communication (multi language) 8. Consistent High/Outstanding performance and climber’s style (fulfill above standard target) 9. Thinking outside the box (creative innovative) 10. Leadership

Certified Professional Human Capital Management (CPHCM) - Indonesia

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Module Objectives To provide an in-depth understanding and application on how to manage talented people in order to make them happy, motivated, engaged, high performance & productive in the organization Certified Professional Human Capital Management (CPHCM) - Indonesia

JMU R2-16/3/05

VISION - MISSION - VALUES

BUSINESS STRATEGY

Balanced Scorecard

Organization Structure

Salary Structure

Job Design

KRA Critical Moment of Truth (Biz Process)

ORGANIZATION STRATEGY

KPI

SOP - Work Instruction

Corporate Performance Management

One Year Action Plan P-D-C-A

Business Model

Career & Succession Strategy

CULTURAL STRATEGY

Knowledge Management

Job Description

Talent 

C&B

CB HRM

People Develop  -ment

Job Evaluation

 Staffing

 Recruitment

 Performance Appraisal

Job Grade

Workforce Planning Personnel Administration

Organization Management

Career & Succession

C&B Rewarding Management System

Employee Master File

Recruitment Competency & Selection Library

Performance Talent Learning & Management Management Development

Organization Model Management (CPHCM) - Indonesia People Model Certified Professional Human Capital

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Organizational Development & HC Management Model

Learning Development

Staffing

Corporate value

Competency Model

CBHRM

Performance Mgmt

Employee relation C&B

Vision Mission

Job Design

Org. Model & Structure

Job Description

Job Evaluation

Job Grading

Workforce Planning KRA - KPI

Strategy Business Map

Company Score Card

Strategy Initiatives

Performance Appraisal

HC budget Compensation & Benefit

Salary Structure Salary Survey Salary Increment & Bonus

Learning & Development Career Development

16 (CPHCM) - Indonesia Certified Professional Human Capital Management

Talent Mgmt

PILLARS of ORGANIZATION & PEOPLE house OD

Attract

Develop Motivate Retain & Engage Learning & PMS Talent

VMV BSC Recruitment KRA Selection Development Rewarding (Hi-Po) KPI C&B Organization Placement Scholarship Leadership Integration Career (Coaching & (Salary Structure (Induction) CBHRM Counseling) Structure) Job Desc KM Promotion Job Eva Industrial Job Grade Job Rotation Conducive Relations Manpower Assignment Working Succession Planning Environment Retirement Change Mgt

Certified Professional Human Capital Management (CPHCM) - Indonesia

HUMAN CAPITAL FRAMEWORK Corporate Business Plan

Maintain Expansive Strategic Retrench As response to environmental opportunities & challenges

Corp HC

Planning

Integration of maintaining & retrenchment Retirement Analysis Bench strength strategy

Talent Management

Analyze, set direction & control organization congruency with the demand of the strategic business objectives & plan

Organization Strategy, Organization Development, Job Management, HC budget, HCIS, Manpower Planning strategy, Succession & Replacement Planning

Recruitment & Selection, Placement Strategy

Strategy

Retaining

Compensation & Benefits Strategy Industrial Relation Strategy Corporate family Work-family life balance program

Dynamic HC Cycles

Which is led by Corporate Business Plan

Maintaining

Acquiring

Developing Learning &Dev Strategy Performance Mgt Strategy Career Dev. Strategy Competency Dev. Strategy

Certified Professional Human Capital Management (CPHCM) - Indonesia

Principle - Talent Selection "People are not your

most important asset. The RIGHT people are." (Jim Collins) Certified Professional Human Capital Management (CPHCM) - Indonesia

GENERATION GAP

 Optimistic, confident, sociable  Most success driven – ambitious  Want to lead than follow  Extremely confident in their intellectual ability

Extremely tech savvy Biggest risk takers Concern about environment Multi-taskers and fast thinkers Creative and independent thinkers  Financially smart     

Certified Professional Human Capital Management (CPHCM) - Indonesia

Special PMS

Promotion

conditions

IDP

segmenting

Assessment High Performance High Potential

Assessment

Key Positions

Special Assignment

Special Trainig

Talent Management Bridge

Assessment

Right Talent Right Time Right Capabilities Right Place

Certified Professional Human Capital Management (CPHCM) - Indonesia

Effective Talent Management

Certified Professional Human Capital Management (CPHCM) - Indonesia

Talent Management Tools 1. Performance appraisal

2. Potential forecast 3. Measurement scales for performance and potential 4. Core competencies

5. Competencies mapping and weighting 6. Talent segmenting 7. Employee & job demographic

Certified Professional Human Capital Management (CPHCM) - Indonesia

Talent Management Assessment Tools HIGH



STAR (A Type) - Plan multiple moves - Assign special projects



CANDIDATE STAR (B1 Type) - Identify next development opportunities - Plan for bigger challenge in assignments

Performance



CANDIDATE STAR (B2 Type) - Plan next move - Provide extra coaching



CAREER PERSON (C Type) - Keep in place



 LOW

PROBLEM EMPLOYEE (D Type) - Give warning - Performance Improvement Plan - Consider if in a wrong placement

Potential

HIGH

DEADWOOD (E Type) - Manage out

Certified Professional Human Capital Management (CPHCM) - Indonesia

Sample HAV Talent Matrix Implementation 6. TALENT SEGMENTING

Certified Professional Human Capital Management (CPHCM) - Indonesia

Implementing the Integrated Talent Management Position

Incumbents

Actual Talent Pool

Ideal Talent Pool

Executive VP

2

1

6

VP & CFO

1

1

3

VP,HR

1

2

3

VP, R&D

1

0

3

Total

5

4

15

Replacement Summary (Implementation) Certified Professional Human Capital Management (CPHCM) - Indonesia

Example of Segmenting The Talent - Employee Ranking Grid PERFORMANCE

1

P 0 T E N T I A L

2

3

4

5

1

0

2

7

5

2

2

0

3

8

3

1

3

0

1

18

12

6

4

0

0

21

27

18

5

0

0

0

4

8

Superior group

Top group

Grid Key

anomalies

Lower group

Middle group

Certified Professional Human Capital Management (CPHCM) - Indonesia

Critical attributes of High Potential 1. Walk the talk with company values 2.Consistency on outstanding work/job performance 3.How person thinks 4.How a person works with other people 5. How resilient a person is 6.How adaptive a person is 7. How fast a person learning Certified Professional Human Capital Management (CPHCM) - Indonesia

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Managing Talented People Critical Element for Succession Plan & Talent Management System

By Pungki

Purnadi

www.pungkipurnadi.com or www.pungkipurnadiassociates.com

Yogyakarta, 11th June 2016 & 21st April 2018 Duta Wacana Christian University (UKDW) Yogyakarta as part of Certified Talent Management Program Certified Professional Human Capital Management (CPHCM) - Indonesia

30

Certified Professional Human Capital Management (CPHCM) - Indonesia

Tanggung beban

R - Responsible A - Accountable Bertanggung

ARCI • • •

C–

Consulted Tempat berkonsultasi

I–

Informed Diberi informasi

jawab

• • • • • •

•

Jabatan/departemen yang paling akuntabel dalam pengambilan tindakan atau keputusan, termasuk untuk menyatakan Ya/Tidak dan mempunyai kekuasaan untuk melakukan veto Hanya 1 (satu) jabatan/departemen yang akuntabel yang dapat menggunakan A dalam suatu proses tugas/pekerjaan Dapat dikatakan menjadi jabatan yang punya tanggung beban Jabatan-jabatan/departemen-departemen yang mengerjakan sebuah tugas (dianggap sebagai pelaku/doer) yang bertanggung jawab atas Eksekusi/tindakan Tingkat tanggung jawab ditentukan oleh yang akuntabel Tanggung jawab dapat dibagi dan dikerjakan kepada lebih dari 1(satu) jabatan/departemen Jabatan/departemen yang menjadi tempat berkonsultasi sebelum dilakukan pengambilan keputusan atau tindakan akhir Melakukan Komunikasi 2 (dua) arah Berkontribusi untuk menambah nilai (value) dari jenis pekerjaan atau tugas yang dilakukan Jabatan-jabatan/departemen-departemen yang diberi/mendapat informasi setelah keputusan atau tindakan diambil Certified Professional Human Capital Management (CPHCM) - Indonesia

Managing Talented Persons • Who is accountable ? ▫ Line Managers ▫ Top Management

• Who is responsible ? ▫ Human Capital

Certified Professional Human Capital Management (CPHCM) - Indonesia

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Characteristic of your People (Manager and its Talent)

Who am I ? Certified Professional Human Capital Management (CPHCM) - Indonesia

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Certified Professional Human Capital Management (CPHCM) - Indonesia

Mengenal Diri Sendiri Mengenal Otak Kanan-Otak Kiri

Otak kanan — KREATIF — Bentuk, Intuisi, Lagu & musik, Warnawarni, Simbol, Gambar, Imajinasi, Menghayal Otak kiri – ANALITIK — Bahasa verbal, Matematika, Logika, Angka2, Urutan2, Penilaian, Analisis, Linier

Minat : Sesuatu yang jika dikerjakan ‘tidak ada matinya’, selalu antusias, senang bercerita pada orang lain tentang hal tersebut, lupa waktu. Certified Professional Human Capital Management (CPHCM) - Indonesia

DOMINAN

BERKEMAUAN KERAS INDEPENDEN MERASA PUAS DIRI MEMILIKI VISI CEROBOH DOMINAN DINGIN & TIDAK EMOSIONAL

PRAKTIS PRODUKTIF

BERBAKAT ANALITIS

HANGAT & BERSAHABAT BERBELAS KASIHAN TIDAK DISIPLIN

BANYAK BICARA

EMOSI TIDAK STABIL

RESPONSIF

TIDAK PRODUKTIF

SULIT MENGAMPUNI

ANTUSIAS

SARKASTIS

TEGAS PEMIMPIN

INTIM

KEKUATAN

EGOSENTRIS

PEMARAH

KELEMAHAN

KEJAM

PEMURUNG SUKA MENYIKSA

KELEMAHAN

BERPUSATKAN PADA DIRI SENDIRI

ESTELITIS TEKUN

PEMBALAS BERPIKIR NEGATIF

DISIPLIN RELA BERKORBAN

KURANG BERMASYARAKAT TEORITIS PERASA

MEMBESAR-BESARKAN MASALAH

TIDAK PUNYA MOTIVASI SUKA MENUNDA-NUNDAI

RAMAH

TENANG/ KALEM

CUEK MENYELAMATKAN DIRI OBJEKTIF SENDIRI TIDAK TEGAS DIPLOMATIS EFISIEN TERATUR SUKA KHAWATIR PENAKUT DAPAT DIANDALKAN PRAKTIS, HUMORIS EGOIS

KEKUATAN Capital Management (CPHCM) - Indonesia CERMAT Certified Professional Human STABIL

COMMUNICATION By looking at the two continua, it is possible to identify four common communication styles : (Dengan bantuan kedua kontinum, kita dapat mengidentifikasi empat gaya berkomunikasi) Assertive (percaya diri, tegas) 15 12

CONTROLLER (pengawas, pengendali)

9

ENTHUSIAST (sangat berminat, penuh semangat)

6 15

12

9

6

3

3

6

9

12

15

Expressive (bersemangat, berapi-api)

Reflective (penuh pertimbangan) 3 6

ANALYST (pemikir, perenung)

9 12

COACH (pelatih, pembimbing)

15

Receptive (menerima) Your natural style will fall within one of these four styles. However, effective Leaders are able to move from one style to another, depending on the circumstances. (Anda memiliki salah satu dari keempat gaya berkomunikasi. Sebagai Leader yang efektif Anda dapat berpindah dari satu gaya ke yang lain, sesuai dengan situasi) Certified Professional Human Capital Management (CPHCM) - Indonesia

Theory on Managing Talented People Talented people may be superior performance, but they cannot simply be left to get on with it, even though they insist on having freedom of action. So they need attention. Special attention. Managing Talented people, requires you to : • ALERT • ENABLE • INSPIRE

Certified Professional Human Capital Management (CPHCM) - Indonesia

Alerting Talent Check-list for Hierarchies 12345

1. I know who my talented people are 2. I keep comprehensive information on my people 3. I share the capabilities of my talented people widely 4. I understand how my company manages talent 5. I make time for my talented people 6. I am willing to let my talented people move on 7. I always help my talent get their ideas into action 8. I always help my talent focus on the important things

Certified Professional Human Capital Management (CPHCM) - Indonesia

Alerting Talent Check-list for Talented people 12345

1. I know my boss always support my job 2. My boss keep comprehensive information with me 3. My boss share the capabilities of mine toward unit organization 4. My boss always understand how the company manages talent 5. My boss always make time for me 6. My boss willing to let people move on 7. My boss always help me get the ideas into action 8. My boss always help me focus on the important things Certified Professional Human Capital Management (CPHCM) - Indonesia

Enabling Talent Check-list for hierarchies 12345

1. I take an active role in the development of my talent 2. I know my talent’s strengths and weaknesses 3. I always provide time to help my talent reflect on their experiences 4. I help my talent exploit its unique strengths 5. I frequently offer feedback 6. I encourage time for thinking 7. I redirect the focus of my talent when they get stuck 8. I use prompting questions to improve my talent’s thinking 9. I always guide learning towards the needs of the organization

Certified Professional Human Capital Management (CPHCM) - Indonesia

Enabling Talent Check-list for talented people 12345

1. My boss take an active role in the development of me 2. My boss know my strengths and weaknesses 3. My boss always provide time to help me reflect on the experiences 4. My boss help me exploit my unique strengths 5. My boss frequently offer feedback 6. My boss encourage time for thinking 7. My boss redirect the focus of me when get stuck 8. My boss use prompting questions to improve my thinking 9. My boss always guide learning towards the needs of the organization Certified Professional Human Capital Management (CPHCM) - Indonesia

Inspiring Talent Check-list for hierarchies 12345

1. I stand up for my talent 2. I take risks with my own credibility to support my talent 3. I lead by example 4. I absorb the pressure of organizational contradictions 5. I openly disagree with my top management 6. I help talent maintain positive outlook when disappointed 7. I would describe myself as courageous at work 8. I look out for signs of self-doubt in my talented people 9. I am myself at work Certified Professional Human Capital Management (CPHCM) - Indonesia

Inspiring Talent Check-list for talented people 12345

1. My boss stand up for me 2. My boss take risks with his/her own credibility to support me 3. My boss lead by example 4. My boss absorb the pressure of organizational contradictions 5. My boss openly disagree with my top management 6. My boss help me maintain positive outlook when disappointed 7. My boss would describe myself as courageous at work 8. My boss look out for signs of self-doubt in me 9. My boss support to finalize my job at work

Certified Professional Human Capital Management (CPHCM) - Indonesia

The Practice of Managing Talented people The nature of the challenge is principally about aligning expectation (both sides). Shared Political Emergent Complex Individual Active Live Certified Professional Human Capital Management (CPHCM) - Indonesia

The Practice of Managing Talented people SHARED. If the problem is shared, so must be the solutions POLITICAL. The stakes are high with talent. Managing talented people is a political challenge. Political behaviors are most evident around scarce or prized resources, as people compete, and they use such power as they possess, to secure their share. EMERGENT. Unforeseen and unpredictable issues will emerge from a combination of seemingly unrelated factors. So expect the unexpected ! Certified Professional Human Capital Management (CPHCM) - Indonesia

The Practice of Managing Talented people COMPLEX. Managing talented people is a complex challenge. The solution has to be dynamic too. INDIVIDUAL. Talented people in particular tend to have a strong learning towards individuality. ACTIVE. Dealing with talents means doing things. It’s an active process not a passive one. Make things happen. LIVE. No rehearsals, no chance to fluff your lines and do a retake. It all takes place in real time. It’s fast and messy. Certified Professional Human Capital Management (CPHCM) - Indonesia

The Practice of Managing Talented people The good news is there no wrong way to do it. The bad news is there is no right way to do it. Beware of simple or universal prescriptions. The mantra for managing talent : Make sense. Make use. Make sense. Make use. Make sense. Make use.

Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study Of PetroChemical Company

Managing Talented Person Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study Introduction 1

• Advanced Chemical India Corporation (ACI) is founded in 1982 by current owner & president, Mr.Gupta. • Company Vision : “to become a leading global petrochemical company”. • Company Mission : “to serve all client needs with the best product, best people, best service with latest technology with the maximum gain to the shareholders and stakeholders”. • Average employee’s age is 45 years old with average service per employee is 15 years with the company ACI. • Employee movement internal company little bit difficult. • Last three years recruits youngsters with significant numbers. • ACI’s corporate philosophy is Keep High Quality in products. The culture of ACI is basically conservative. • ACI’s overall sales turnover in 2016 hit US$800 million and profit is US$30 million before tax. 60% of ACI’s are sold in domestic market although overseas sales have been growing steadily.

Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study Introduction 2

• ACI originally started producing basic chemical products that are used in clothes. Gradually other applications are developed such as for automobile, home appliances. Some products for homes are sold directly from supermarkets in India with ACI brand. • They have three plants in India and sales offices in US, UK, Hong Kong. Thailand and Malaysia. All plants produce basic chemicals and modified (specialty) products based on needs of clients. • About 2160 employees are hired. Their organization organized by functions. There are 160 employees in HQ, 1500 in production with production engineering, 400 in sales in various branches, and 100 in R&D. HQ covers marketing and corporate functions as Finance, IT, Legal, Purchasing, HR etc.. • ACI uses patents licensed by UK chemical companies. But by developing own products for specific clients, some new patents are developed by ACI and registered. • They also updated the production technology from time to time with significant number of investment. Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study Business Issues • Global competition around ACI is getting severer. Now for low cost (basic) product, ACI is competing with Chinese companies and for high end (modified/speciality) products competitors are US/European/Japanese chemical companies. • As a result of severe competition, though the sales has increased by 5%, the profit has decreased by 20% last year. Both commodity and specialty (high end) chemicals divisions are reducing profits. • Mr. Gupta wants to transform ACI, review its business model and lift ACI into the next era of growth. • He considered that organizational issues of ACI are followings. ▫ Since many Products introduced, profit control for each product is getting difficult. And the final responsibility of each product is not clear. ▫ Functional organization becomes barrier to develop/introduce products in speedy manner. ▫ HQ seems too big and he feels difficulty to manage everything by himself • Therefore he decided to transform ACI from functional to business unit base organization ( basic chemical and specialty/modified chemical units). Also he wants to reorganize HQ and R&D to more value oriented organization • Currently Job based pay and incentives with profit share (for total ACI profit) are used. Mr. Gupta also feels the necessity to change these according to the organization change Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study (1: Petro Chemical Company) ACI’S PREVIOUS ORGANIZATION STRUCTURE Functional Depart

Division Planning

HQ

Finance & Accounting

160 R&D Board of directors

CEO (Gupta)

100

Research

Purchasing & Logistic

Development

IT HR & Labor Relations

Process Engineering

Legal &Intellectual Property Production

X Plants

Control

1500

Y Plants

Engineering

Z Plants Sales

400

Tha Branch

Production

Division have 4-6 management layers

MalBranch HkgBranch UK Branch US Branch

Certified Professional Human Capital Management (CPHCM) - Indonesia

Business Team Organization for Chemical Company - ACI

Division

(Virtual) Companies GM Corporate Service Division

Board of Directors (incl Gupta)

Manager R&D

100

50

Manager Corporate Planning

50

Manager Finance & Accounting

Research

20

Manager Purchasing & Logistic

Development

20

Manager IT

Process Engineering

15

Manager HR & Labor Relations

Manager Planning

GM Basic Chemical Application

1000

Manager X Plant

Manager Y Plant

Control Production

Manager Branches 300 USA - UK

GM Specialty Manager Planning Chemical Manager Z Plant Application

500

5 Manager Legal &Intellectual Property

Control Production

Manager Branches Application THA - MAL -HKG 100 Engineering

New Management *Divisions have teams of 3 management layers. *Each biz unit / team has own P/L *Corporate service cost is charged by number of people by team. *Professional staff of Corporate & R&D uses time charge system *Corporate staff shifted to company

Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study (Job Purpose) Job Purpose • GM Basic Chemical Business Unit is having main accountability to manage two production plants with number employees around 1000 people consisting of Production department, QA/QC, maintenance and Sales at their spreading offices. This position has an authority to set production planning, control the quality and set price on the marketing and sales up to their overseas offices. Dimension of sales target is around US$300M per year. • GM Advance or Modified Chemical Business Unit is having main accountability to manage one production plant with number employees around 500 people consisting of Production department, R&D, maintenance and Sales at their spreading offices. This position has an authority also to set production planning, produce specific product as per customer needs, control the quality and set price on the marketing and sales up to their overseas offices. Dimension of sales target is around US$ 200M per year. Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study (Managing Talented Person ) People Issues

• After Re-organization, Mr Gupta is having difficulty to find the good candidates to fill up the GM Position of his two business units among his talented people. • He has Mr. Subramaniam which is now as Plant Manager X. Mr. Subramaniam is a tempered person but a perfectionist guy in job. He has been respected by his subordinates due to the result of the production which always meet the target. Mr. Subramaniam is a career person, since he started his career since the beginning of ACI and develop the production technology very well. Until now he is still a single man at the mature age. His DISC profile is DC and his communication style is controller. • He has Mr. Kumar which is now as Plant Manager Y. Mr. Kumar is an easy going person and having a good leadership style in managing his plant. Everybody in Plant Y loves him very much. In term of competencies he has the one who always being sent for Leadership training. Mr. Kumar is just married person and still his first baby born. Kumar also quite mature on his age. His DISC profile is DI and his communication style is enthusiast. • He has Mr. Sanjeev who are now as R&D Manager. Mr. Sanjeev is a keen person, patient and persistence. Not many innovative product is produced during his leadership. However his accurate calculation and good judgment on the financial (cost of product) makes him good in the eye of Mr. Gupta. Sanjeev is a family person, sometime he brings his grown children at the office while waiting his end of the working day. His DISC profile is CD and his communication style is analyst. Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study (Managing Talented People) People Issues

• He has Mr. Venkat who are now hold Planning Manager position under Specialty Chemical Product Division. He work side by side with Mr. Rajiv who are the Plant Manager Z. Venkat is a senior and mature person who has career from bottom as operator and getting higher education with scholarship from England. Before holding Planning Manager, he was the second person in charge in R&D Division. He always do some risk analysis during his career which put him good in front of Mr. Gupta. He is also family man with good children education perspective. His DISC profile is CS and his communication style is enthusiast. • He has Mr. Rajiv who are now as Plant Manager Z. Mr. Rajiv is a thinker style person but having a good communication skills. It is proven that he has so many client relationship and can maintain his product sales to the big customers and industries. Rajiv is the bright young person who are having a great career jump from fresh graduate to become a capable engineer and promoted to become Plant Manager. He is in close relationship with another young bright lady engineer at the R&D department. They may be in wedding ceremony next year. His DISC profile is DI and his communication style is coach. • Mr. Gupta still has a strong lady of Ms. Bhindi who are now just handle head of corporate planning. Ms. Bhindi is MBA graduated from Harvard Business School. She just joint ACI 4 years ago and her last three years performance are outstanding and most of the managers agreed that she is the star lady of the company. Before handle Head of Corporate Planning, she was the brightest financial planner in the Finance & Accounting Department. Now she is learning by doing on the production operation by having good relationship with most of all engineers in those three plants. Until today she is still single and no clue that she has special relationship with somebody. Her DISC profile is CD and her communication style is controller. Certified Professional Human Capital Management (CPHCM) - Indonesia

Talent of ACI Managers

Mr. Subramaniam

Mr. Kumar

Plant Manager X

Plant Manager Y 46 th

50 th

Mr. Venkat

Mr. Rajiv

Mr. Sanjeev R&D Manager 48 th

Ms. Bhindi

Plant Manager Z Planning Manager Certified Professional Human Capital Management (CPHCM) - Indonesia Head of Corporate Planning 34 th

Division

:

Manager Corporate Planning (50)

GM Corporate Service

Division Manager R&D (100)

:

Research Development Process Engenering

Manager Planning Board of Directors (incl gupta

GM Basic Chemical Application (1000)

Manager Financial & Accounting (50) Manager Purchasing & Logistic (20) Manager IT (20) Manager HR & Labor Relation (15) Manager Legal & Intecletual Property (5)

Manager X Plant

Control

Manager Y Plant

Production

Manager Brand (300) GM Special Chemical Aplication (500)

Manager Planning

Control

Manager Z Plant

Production

Manager Brand (100)

Aplicaton Engenering

Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study – PetroChemical Company • Based on the above people situation, please recommend the approach to manage ACI Talented employees in order to fulfil 2 (two) key GM Positions in the organization.

• You can give recommendation to each talented person of ACI with its development program

Certified Professional Human Capital Management (CPHCM) - Indonesia

good luck & success! If you need further assistance, please contact me at 08121055000 Or visit www.pungkipurnadi.com or www.pungkipurnadiassociates.com Or sending e-mail to : [email protected] [email protected]

Certified Professional Human Capital Management (CPHCM) - Indonesia

Pungki Purnadi, ST.MM.MHRM. Pungki Purnadi is certified HR practitioner, having more than 27 years experience in handling HR matter. His engineering background education and master human resources management support him to become the innovative HR Practitioner. He had various working experiences regionally and internationally such as with TOTAL Indonesie, MedcoEnergi, Petronas Carigali, WorleyParsons, Petrosea and some years with international management consultant, handling some HR matters in various industries. During his working experiences, he had been assigned to various key HR position domestically & internationally (in France, England, Scotland, Norway, Arab Emirates, Iran, Turkey, Libya, Nigeria, Sudan, Argentine, Australia, Myanmar, Thailand and Malaysia) such as Training & Development Manager, HRD Manager, Country HR Manager, South East Asia Regional HR Manager and Human Capital Director. He is also one of the founders who have an initiative to conduct HR certification in Indonesia such as Certified Human Resources Professional (CHRP); Certified Human Resource Management (CHRM) and Certified Professional Human Capital Management (CPHCM). As HR practitioners, he is very active to run and facilitating several HR program. Certified Professional Human Capital Management (CPHCM) - Indonesia