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TRANSFORMATIVE LEADERSHIP

TRANSFORMATIVE LEADERSHIP. My Personal Experience Manila, 8 November, 2001. Background. Rajawali Citra Televisi Indonesia (RCTI): Established in 1989, RCTI is Indonesia’s first private terrestrial TV station. Connected to the first family. Was the number 1 station for 10 years.

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TRANSFORMATIVE LEADERSHIP

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  1. TRANSFORMATIVE LEADERSHIP My Personal Experience Manila, 8 November, 2001

  2. Background Rajawali Citra Televisi Indonesia (RCTI): • Established in 1989, RCTI is Indonesia’s first private terrestrial TV station. • Connected to the first family. • Was the number 1 station for 10 years. • The largest TV network with 47 relay stations across the country. • 1200 employees; Approximately 70% had been with the company for over 7 years. • The crisis in 1998 caused the station to go in the ‘red’ (US$ 10.9 million). • A management change in May 1999.

  3. Market Situation • Highly competitive, especially with 4 new entrants last October 25, 2001. • Adex growth estimated at 15%. Growth in 2000 was approximately 40-45%. • Lack of skilled people. • Price (bonusing) War. • A cluttered advertising environment. • Shareholders’ knowledge & understanding of the business is minimal.

  4. The Challenges • Entering RCTI is like entering an English Club. • Never experienced working with a female boss. • A complacent organization. • Staff questioned my capabilities. • Strong image. How to sustain eroding shares and maintain its position in the market place.

  5. Steps to Transforming an Organization Establishing a Sense of Urgency Forming a Powerful Guiding Group Creating a Vision Communicating the Vision Empowering Others to Act on the Vision Planning for and Creating Short-Term Wins Consolidating Improvements & Producing More Change Institutionalizing New Ways

  6. Establishing a Great Enough Sense of Urgency • Our first step was to consolidate the business and re-organise the company. Our priority was the News department. • The renewal target was the entire company hence the CEO was key. • Employees were skeptical of the new management. We had to show immediate results. • Our greatest difficulty was to drive people out of their comfort zones. There was no sense of urgency. • The urgency rate had to be pumped up to a level so that the transformation process could take place.

  7. Forming a Powerful Guiding Coalition Group • A high sense of urgency within managerial ranks helps enormously in putting a guiding coalition together. • We needed to get these people together, help them develop a shared assessment of the company’s problems and opportunities, and create a minimum level of trust and communication. • Off-site retreats, for 2-3 days, are one popular vehicle for accomplishing this task. • To speed-up the process we replaced non-productive and inexperienced managers with qualified managers. 70% of our managers were replaced within 9 months. • In a large company the coalition needs to grow from 20-40 range before progress can be made.

  8. Creating a Vision • To ensure a successful transformation the guiding group with the BOD developed a picture of the future that is easy to communicate and appeals to customers, stockholders, and employees. • A vision goes beyond numbers. A vision says something that helps clarify the direction in which an organization need to move. • The guiding group were required to develop a clear and compelling statement of where all of this is leading. • Rule of Thumb: If you can’t communicate the vision to someone in 5 minutes and get a reaction that signifies both understanding and interest, you are not yet done with this phase of transformation.

  9. Communicating the Vision • Transformation is impossible unless hundreds or thousands of people are willing to help. • Employees will not make sacrifices, even if they are unhappy with the status quo, unless they believe that useful change is possible. • Without credible communication, and a lot of it , the hearts and minds of the troops are never captured. • ‘Walk the Talk’ at different levels of the organization. Work with them and show them what you know.

  10. Empowering Others to Act on the Vision • Successful transformations begin to involve large numbers of people as the process progresses. The more people involved, the better the outcome. • To some degree, the guiding group/ coalition must empower others to take action simply by successfully communicating the new direction. • Renewal also requires the removal of obstacles. • Organizational Structure. • Compensation or performance-appraisal systems. • No organization has the momentum, power, or time to get rid of all obstacles. But the big ones must be confronted and removed.

  11. Planning for & Creating Short-term Wins • Real transformation takes time, and a renewal effort risks losing momentum if there are no short-term goals to meet and celebrate. • Without short-term wins, too many people give up or actively join the ranks of those people who have been resisting change. • Look for ways to obtain clear performance improvements, establish goals in the yearly planning system, achieve the objectives, and reward the people involved with recognition, promotions, and even money.

  12. Consolidating improvements and Still Producing More Change • After working hard, managers may be tempted to declare victory with the first clear performance improvement. • Premature victory celebration kills momentum. • Until changes sink deeply into a company’s culture, new approaches are fragile and subject to regression. • Renewal efforts take not months but years

  13. Institutionalizing New Approaches Two factors in institutionalizing change in corporate culture: • A conscious attempt to show people how the new approaches, behaviors and attitudes have helped improve performance. • To make sure that the next generation of top management really does personify the new approach. • Until new behaviors are rooted in social norms and shared values, they are subject to degradation as soon as the pressure for change is removed.

  14. Results • Net profit in 1999: US$ 580,000 2000: US$ 5.6 million, after a US$ 1.6 million program write-off over 2 years. • Settled outstanding debt of US$ 20 million to foreign major suppliers by end December 2000. • Simplified the organization by eliminating the 3rd layer and reducing the number of managers. • Improved compensation structure & incentive scheme, including the performance appraisal system. • Positioned ourselves as a non-partisan and independent station.

  15. Programming Content • Regular Programs  Programming Division • News & Current Affairs  News Division. Marketability vs Idealism

  16. Programming Content • Regular Programming  Audiences Shares • News & Current Affairs  Image • - Trust & Credibility comes from the news programs • - Stations are willing to lose money on this.

  17. News & Current Affairs • Today the market tends to favour more the negative as opposed to the positive aspects of women. This is what sells. • We can not change overnight but we should consciously make slow changes. Hence, programs like Selamat Datang Pagi (a morning show) and Buletin Siang (Mid-Day News). Including 30% of the newsbreaks is surrounding and aimed at women. • The next step was to develop controversial talk-shows that displays 2 different perspectives, men and women. Example: Angin Malam (Late Night Show).

  18. Promotion of Transformative Leadership • Invite TV management, including Head of News, to present a proposal on Transformative Leadership . Show how they will benefit from the association. Point out how this will differ them from the ‘crowd’ • Help train the TV journalists on this subject. Offer yourselves as a resource. Begin with light then move to hard news. • Launch the program with a major event. • To develop TV programs, infotainment style, that displays/shows transformative leadership in the market place and how to manage those changes. Work with content providers. Example: Perempuan on Metro TV.

  19. Promotion Transformative Leadership • To develop supporting programs utilising available and relevant media mix. • To conduct seminars on Transformative Leadership. Insert in news segments. • Once the management sees the value of having/ carrying such a program, then they will increase airtime for this.

  20. Conclusion… • Women have to work much harder than men to be accepted. Be ourselves. • Separate professionalism from friendship. • Follow your female instincts when making the final decision. • The success could not have been achieved without the support and understanding of the CEO.

  21. Thank You

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