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Group 1 Case Study : Ignasius Jonan Presenting for: MM MBA UI 2013

Group 1 Case Study : Ignasius Jonan Presenting for: MM MBA UI 2013. Nicholas 1306356545 - Donny 1306356412 - Fahrul 1306357030 – Pamela 1306420163 - Ulung 1306357636 - Bakry 1306420245. I suppose leadership at one time meant muscle…. But today….

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Group 1 Case Study : Ignasius Jonan Presenting for: MM MBA UI 2013

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  1. Group 1 Case Study : Ignasius Jonan Presenting for: MM MBA UI 2013 Nicholas 1306356545 - Donny 1306356412 - Fahrul 1306357030 – Pamela 1306420163 - Ulung 1306357636 - Bakry 1306420245

  2. I suppose leadership at one time meant muscle… But today… It means : Getting along with people

  3. Agenda Profile of Ignasius Jonan 1 Implementation of Leadership & OB concepts 2 Analysis 3 Recommendations & Solutions 4

  4. Agenda Profile of Ignasius Jonan 1 Implementation of Leadership & OB concepts 2 Analysis 3 Recommendations & Solutions 4

  5. Ignasius Jonan The mastermind of PT. KAI tremendous business growth • 1986 : Airlangga University Faculty of Economics • 2005 : - International Relations and Affairs, Fletcher School of Law and Diplomacy, USA- Harvard Law School, Amerika Serikat & Columbia University • 2001 – 2006 : • Managing Director PT Bahana Pembiayaan Usaha Indonesia • 2006 – 2008 : • Citi Group Director • 2009 – now : • Managing Director PT KAI Mr. Ignasius Jonan

  6. Ignasius Jonan The mastermind of PT. KAI tremendous business growth Assigned to be the CEO of PT KAI in Feb 2009 At that time , the company has suffered loss = IDR 83.4 billion At the end of 2009, PT KAI has reached profit up to = IDR 153.8 billion

  7. A man with many respect & acknowledgements from others His leadership has eliminated the feodalism behaviors which is only focus on to please the Boss and has occurred for a long time in the state-owned enterprises. It is a centralistic and manipulative behavior. Prof. RhenaldKasali, Ph.D, Great Lecture at FE UI Jonan is a Leader 3.0 which is a leader that foster the human spirit of the team. People respect him, not fear him.. HermawanKertajaya, CEO and Founder MarkPlus Inc. The hardwork and determination from Jonan and his team, has given the Indonesian people a great hope that we could manage our public transportation wisely to address the social needs. Najwa Shihab, Editor in Chief Metro TV

  8. Agenda Profile of Ignasius Jonan 1 Implementation of Leadership & OB concepts 2 Analysis 3 Recommendations & Solutions 4

  9. Implementation of Leadership & OB concepts • Change  Kotter’s 8 Step to Leading Organizational Change • Culture  Methods to Change Organizational Culture • Leadership  Kouzes & Posner’s 7 Essentials of Encouraging

  10. A. Kotter’s Eight Steps for Leading Organizational Change • Establishing the sense of urgency • Forming a powerful guiding coalition • Creating a vision • Communicating the vision • Empowering others to act the vision • Planning for and creating short-term wins • Consolidating improvements and producing more change • Institutionalizing new approaches

  11. 1.Establishing the sense of urgency • Service is not for human

  12. 1.Establishing the sense of urgency (cont.) • Dangerously Inhumane

  13. 2.Forming a powerful guiding coalition • Cooperation with stakeholders • Police Force  security support • BCA, BNI, Bank Mandiri, CIMB  online ticket purchase and payment • BNI  financial support (cash management) • Jokowi  underpass at Bintaro intersection • Indomaret, Alfamart  ticket purchase • XL  Wi-Fi service on train and Free Public Phone at certain stations

  14. 2.Forming a powerful guiding coalition (cont.) • Telkom  technology provider

  15. 2.Forming a powerful guiding coalition (cont.) • Communication with stakeholders

  16. 3.Creating Vision • THE DOABLES, NOT THE DREAMS • Freight from 16 million tones per annum in 2008 to 60 million tones per annum in 2020. (TO DATE 27 million tones) • Commuter service from 400,000 passengers a day in 2008 to 1,500,000 passengers a day in 2020. (TO DATE 700,000).

  17. 3.Creating Vision (cont.) • Service for Human Being Air-conditioned Economy Class Trains Waiting Room at Train Stations

  18. 4.Communicating The Vision

  19. 4.Communicating The Vision (cont.) • New Symbols, New Spirit Change Corporate Identity, focus to stakeholder

  20. 5.Empowering Others • Empowerment means trust

  21. 5.Empowering Others (cont.) • Personnel Composition • High School Graduates from 9.771 in 2008 to 20.024 in 2013 • Below High School Graduates from 14.777 in 2008 to 5.259 in 2013 • University Graduates from 901 in 2008 to 1.475 in 2013.

  22. 5.Empowering Others (cont.) • Utilizing Information Technology

  23. 6.Planning for and Creating Short-Term Wins • Boarding Pass Policy • 100% Occupancy Capacity for All Classes of The Train • No More Standing Ticket • Prohibition of peddlers and smoking onboard the train • Economy-class Train with AC • Call Center 121 • Drive Thru Ticket Purchase

  24. 7.Consolidating and Creating More Changes “IT IS ALWAYS IMPOSSIBLE UNTIL IT IS DONE” – NELSON MANDELA

  25. DepokBaruStation AFTER BEFORE PondokRanji Station

  26. New Face of Bogor Station Stasiun Bogor

  27. E-Ticketing

  28. 8.Institutionalizing New Approaches • Code of Conduct • Reward and Punishment System • Good Corporate Governance

  29. 8.Institutionalizing New Approaches (cont.) • Key Awards after 3 years of transformation • THE BEST BUMN IN PUBLIC SERVICE, 2013, 2012. • THE BEST TRANSFORMATION COMPANY BY SWA, 2013. • THE BEST BUMN IN GCG, 2013. • ONE OF THE MOST FAVORITE COMPANIES BY SPS, 2013, 2012. • THE BEST BUMN, 2012. • THE BEST BUMN IN MANAGEMENT, 2012.

  30. B. Changing Organizational Culture • Changing organizational culture involves a teaching process - Edgar Schein

  31. Embedding Culture in KAI (1) • Formal statements of organizational philosophy

  32. Embedding Culture in KAI (2) • Slogans “You are our Priority” • You are our customer, whether you are a part of Indonesian railway or not. • Customer should be the priority in achieving prime service. • Collaboration between individuals and among departments is therefore essential to achieve prime service.

  33. Embedding Culture in KAI (3) • Explicit rewards Reward & Punishment System • Top performers will get benefit like promotion, acknowledgement letter, opportunity to study abroad • Low performers will be retrained. If the performance not increase, will be layed-off

  34. Embedding Culture in KAI (4) • Organizational activities, processes, or outcomes leaders attend to shift the old paradigm: PRODUCT ORIENTED  CUSTOMER ORIENTED Integrity is the key He tolerates the lack of knowledge ; but never tolerates the lack of integrity

  35. Embedding Culture in KAI (5) • Deliberate role modeling, training

  36. C. Kouzes & Posner’s Leadership Model • Kouzes and Posner research on leadership development considers five practices: • Model the way • Inspire a shared vision • Challenge the process • Enable others to act • Encourage the heart 7 Essentials of Encouraging

  37. The Seven Essentials of Encouraging – Kouzes & Posner (2003) •  Set Clear Standards •  Expect the Best •  Pay Attention •  Personalize Recognition •  Tell the Story •  Celebrate Together, and  •  Set the Example

  38. The Seven Essentials of Encouraging – Set Clear Standards • Leaders are clear about the performance and behavior standards they expect everyone to meet.

  39. The Seven Essentials of Encouraging – Expect The Best • Empower people to do the exceptional and meet the toughest challenges.

  40. The Seven Essentials of Encouraging – Pay Attention • “Caring By Walking Around” (CBWA)

  41. The Seven Essentials of Encouraging – Personalize Recognition • Leaders know what people have contributed … so that person understands the importance of his or her contribution. • Expression of appreciation that comes personally from the leader, not delegated to an assistant or co-workers. • Gave Tag Heuer watch to an employee who turned off electrical substation in Semarang to stop unattended running train.

  42. The Seven Essentials of Encouraging – Tell The Story Stories can give examples of peers who overcame obstacles or achieved success under circumstances that are recognizable to co-workers.

  43. The Seven Essentials of Encouraging – Celebrate Together • Celebrate together as a community. • Make people feel like part ofsomething larger, like they allhave a stake in a common goal. • Improved teamwork, higherperformance.

  44. The Seven Essentials of Encouraging – Set The Example • Make leaders believable • “Do What You Say You Will Do.”

  45. Agenda Profile of Ignasius Jonan 1 Implementation of Leadership & OB concept 2 Analysis 3 Recommendations & Solutions 4

  46. Strength, Weaknesses, Opportunities and Threats (SWOT Analysis) W

  47. Strength - Education Education id.linkedin.com/pub/ignasius-jonan/36/3a9/7b4

  48. Strength – Professional Qualities Education id.linkedin.com/pub/ignasius-jonan/36/3a9/7b4

  49. Strength – Achievements Education • Marketer of the Year in Transportation - Indonesia Marketer Association – 2013 • Honorary Member - Indonesia Marine Corps, Cavalry Regiment - 2013 • The Best CEO of State Owned Enterprise - 2013 • Accountant of the Year - Indonesia Association of Accountant - 2013 • The Golden Action Award - Rakyat MerdekaPost – 2013 • The Most Innovative CEO - Gatra Magazine - 2013 • The CEO of Choice - Swa Magazine - 2013 • The One of Best CEOs of State-owned Enterprise in Indonesia - BUMN Track and Ministry of State Owned Enterprise - 2012 • One of the 6 Most Favorite CEOs - Tempo Magazine - 2012 • Marketer of the Year in Transportation Sector - Indonesia Marketer Association - 2012 • The One of Best CEOs of State-owned Enterprise in Indonesia - BUMN Track and Ministry of State Owned Enterprise - 2011 • Indonesian Railways was awarded as • One of the Best SOEs in Transportation - Infobank Magazine - 2013 • the Most Innovative State-owned Enterprise in Public Service in 2011 and 2012 • The Most Innovative State-owned Enterprise in 2012 • one of the 5 Most Favorite Companies by Indonesian Printed Press Association in 2012 • one of the Most Favorable Patrons in Sports by Ministry of Sports and Youth of Indonesia, 2011 id.linkedin.com/pub/ignasius-jonan/36/3a9/7b4

  50. Weaknesses Education • Lack of technical skills • Lack of operational knowledge • Depended on assistance from senior managers at the first start • Micro-managing at the first start

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