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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
2

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


Human Capital Value Map
7 3 1
Far above
average

CAREER FUTURE
STARS
PERSON STAR STARS
PERFORMANCE

8 4 2
CAREER
average

POTENTIAL FUTURE
Above

PERSON
CANDIDATE STAR
Promotability
Rating
9 6 ACTIVE 5 Two or more
CAREER
average

level
LEARNER /
PERSON CADET One more level
RAW
DIAMOND Developed within
level
Low Medium High

POTENTIAL

Certified Professional Human Capital Management (CPHCM) - Indonesia


Individual Performance Management

Individual
Performance
Plan
Jan
Coaching
Jun
& Performance
Counseling Review
Achievement/
Performance progress review
Appraisal (January – June)
• Final review Dec
• Feedback / Result
Communication (Reward &
Punishment

Certified Professional Human Capital Management (CPHCM) - Indonesia


Leadership Competence
Development Program
Business 1 week Astra Development Center
Individual Development Programs
Leadership
Astra Executive Program
Organizational
Leadership
Astra General Management Program
Managerial Leadership
2 week in class
6 months project
Interpersonal Leadership Astra Middle Management Program
2 week in class
4 months project
Self Leadership Astra First- line Management Program
1 week in class
4 months project
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 JOB GRADE
E7

E6 Senior GM
Custodian L6

E5 GM

E4 Senior Manager Principal L5

E3 Manager Staff L4

Cross-functional rotation
HSE
QS
IT

Business Skills
People Skills

Senior Engineers within the same business


A3 B3 C3 D3 E3 F3 Cross attachment to other
E2 businesses is not
L3
encouraged

Engineers Cross-functional rotation


A2 F2 Minimum of 2 positions in
L2 E1
Maximum of 3 years per
Junior Engineers position
E1 A1 F1 Cross attachments to
other businesses are
L1 allowed.
Common Core Orientation Technical SGDP L1 OPU Specific
Skills Programme Induction Programme Orientation Programme Approximately 12 to 18
ENTRY LEVEL PROGRAMMES months
LEGENDS A, B, C, D, E, F are examples of functions or disciplines within a particular skill group.
A1, A2, Certified Professional
A3 represents position levelsHuman
i.e. A1 forCapital Management
Junior Engineer, (CPHCM)
A2 for Engineer - for
and A3 Indonesia
Senior Engineer.
MYPR LEADERSHIP & PERFORMANCE GRID : E6 Below

18
1
•Distinctive 2 3

465 in QL
Quadrant
(30.3%)
2 •Effective 440 422 22
•Leadership behaviors

3 •Developing
6 512 107

•Needs
4 Development
1

•Below •Meets •Exceeds •Outstanding


expectations expectations expectations

4 3 2 1
(*) Difference due to:
• Staff was not rated Certified Professional Human Capital Management
•Current performance(CPHCM) - Indonesia
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 • Gives a profile of business’s cumulative leadership strengths and


Supervisors 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 • Provides feedback on individual’s performance, professional


Employees 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
CONTRIBUTOR
Matrix FULL PERFORMER EXCEPTIONAL PERFORMER
Have held a position long Consistently meets and Demonstrates excellent
enough to be expected to occasionally may exceed leadership abilities and
perform the job adequately. output requirements. achieves results in a way that
builds and maintain
relationship.

 Recently promoted (within  Meets the performances • Mastery in current role


the last year.) standards for the current • Ready to make a crossroads
TURN  Must be coached to reach full position. turn.
Have been able to
demonstrate competence performance  Demonstrates the capacity to
in at least 2-3 unique make a crossroads turn in the
contributions expected at
P future.
a higher crossroads layer. O
T 4B CONTRIBUTORS 3A PROMISING 1 STAR
GROWTH E
Demonstrate excess capacity N  Fully performing or  Meets the performances • Mastery in current role
in their current role, but exceptional in some standards for the current • Ready for a broader
have not demonstrated the T dimensions, but shows assignment within the
position.
ability to perform I deficiencies in others.  Could assume a broader current crossroads layer.
at least 2-3 unique A  Incumbents should be
contribution skills from a assignment within the
L coached to full performance current crossroads layer.
higher crossroads layer.

4C CONTRIBUTORS 3B PROMISING 2A TOP PERFORMER


MASTERY
Work at learning and using
new skills in their role, but  Performance falls short of  Meets the performances • Mastery in current role
do not demonstrate the standards standards for the current • Capable of performing
competence or desire for  Provided that business position. effectively in different roles
acquiring these unique results are not being  Probably capable of of similar management
contributions and skill Performing effectively in
jeopardized, a performance scope.
required at higher another role of similar
organizational layer. improvement plan must be
executed immediately management scope.

5 4A 2B TOP PERFORMER
LAGGERS CONTRIBUTORS

Certified Professional Human CapitalPERFORMANCE


Management (CPHCM) - Indonesia
Danamon Talent Management Overview
Soft Competencies to Determine Potential Levels
Core Competencies Grade SEVP - VP

Personal Effectiveness Change Champion


Leads changes, inspires, and motivate; builds commitment
Role Model
Professional Conduct
Maintains organizational credibility and ethics
Creating Customer Value
Customer Focus Knows the competition and company’s positioning

Leadership Competencies Grade SEVP & EVP Grade SVP & VP


Building Strategic Alliances Promotes Building Business Partner
Relationship Building collaboration with strategic alliances Uses interpersonal styles &
communication methods

Business Leadership Visionary Leadership Strategic Decision Making


Creates clear future state & inspire Builds strategic approach & decisive
commitment
Grooming Talents Aligning Performance for Success
People Development Develops and retains competent people Guides others to accomplish

Creating High Performing Teams Integrating Cross Function


Team Leadership Builds strong and productive teams 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

13
Certified Professional Human Capital Management (CPHCM) - Indonesia
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 ORGANIZATION STRATEGY CULTURAL STRATEGY

Balanced Organization Career &


Scorecard Salary Knowledge
Structure Succession
Structure Management
Strategy
Job Talent   Staffing
KRA
Design
Critical
Moment of KPI
Job C&B CB HRM  Recruitment
Truth Description
(Biz Process) People
Job 
Evaluation Develop  Performance
SOP - Work -ment Appraisal
Instruction
Job Grade

Corporate Performance
Management
Workforce Organization Career & Employee Recruitment Competency
One Year Planning Management Succession Master File & Selection Library
Action Plan

Personnel Rewarding C&B Performance Talent Learning &


P-D-C-A Administration System Management Management Management Development

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Business Model Organization
Certified Professional Model Management (CPHCM) - Indonesia
Human Capital People Model
Organizational Development & HC
Management Model Staffing
Learning
Development

Corporate Competency CBHRM


Employee Performance
value Model
relation Mgmt

C&B

Vision Org. Job Job Job Job Salary


Mission Model & Design Description Evaluation Grading Structure
Structure
Workforce Planning Salary
KRA - KPI Survey Talent
Mgmt
Strategy
HC budget Salary
Initiatives
Strategy Company Increment
Business Score & Bonus
Map Card Compensation
& Benefit

Performance Learning &


Appraisal Development

Career
Development
16 (CPHCM) - Indonesia
Certified Professional Human Capital Management
PILLARS of ORGANIZATION & PEOPLE house
OD Attract Develop Motivate Retain
VMV & Engage
BSC
Recruitment Learning & PMS Talent
KRA
KPI
Selection Development Rewarding (Hi-Po)
Organization Placement Scholarship Leadership C&B
Structure Integration Career (Coaching & (Salary
Job Desc (Induction) CBHRM Counseling) Structure)
Job Eva KM Promotion 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
Analyze, set direction & control organization
congruency with the demand of
Maintain Corporate the strategic business
objectives & plan
Expansive Strategic
Retrench
Business Plan Corp HC
As response to environmental
opportunities & challenges
Organization Strategy, Organization
Development, Job Management,
HC budget, HCIS,
Manpower Planning strategy,

Integration of maintaining & retrenchment


Planning Succession & Replacement Planning

Retirement Analysis
Bench strength strategy
Recruitment & Selection,
Talent Management Strategy Placement Strategy

Retaining Dynamic HC Cycles


Which is led by Corporate
Acquiring
Business Plan

Compensation & Benefits Strategy


Industrial Relation Strategy
Maintaining Developing
Corporate family Learning &Dev Strategy
Work-family life balance program 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,  Extremely tech savvy


sociable  Biggest risk takers
 Most success driven –  Concern about environment
ambitious  Multi-taskers and fast thinkers
 Want to lead than follow  Creative and independent
 Extremely confident in thinkers
their intellectual ability  Financially smart
Certified Professional Human Capital Management (CPHCM) - Indonesia
Talent Management Bridge

Special Assignment
Special Trainig

Special PMS
Key Positions

Assessment
Assessment
segmenting
Promotion

IDP

conditions
High Performance
Right Talent
High Potential
Right Time
Assessment

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

 CANDIDATE STAR (B2 Type)


Performance

- Plan next move


- Provide extra coaching

 CAREER PERSON (C Type)


- Keep in place

PROBLEM EMPLOYEE (D Type)

 - Give warning
- Performance Improvement Plan


- Consider if in a wrong placement
DEADWOOD (E Type)
- Manage out
LOW HIGH
Potential

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
Actual
Position Incumbents Ideal Talent Pool
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 2 3 4 5

1 0 2 7 5 2
P
0
2 0 3 8 3 1
T
E
N 3 0 1 18 12 6
T
I 18
4 0 0 21 27
A
L
5 0 0 0 4 8

Grid Key
Lower Middle Superior Top
anomalies
group group group 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


29

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


ARCI
• Jabatan/departemen yang paling akuntabel dalam pengambilan tindakan
R - Responsible A - Accountable
Tanggung beban

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


Bertanggung

tugas (dianggap sebagai pelaku/doer) yang bertanggung jawab atas


jawab

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
berkonsultasi
Consulted

dilakukan pengambilan keputusan atau tindakan akhir


Tempat
C–

• Melakukan Komunikasi 2 (dua) arah


• Berkontribusi untuk menambah nilai (value) dari jenis pekerjaan atau tugas
yang dilakukan
informasi
Informed

• Jabatan-jabatan/departemen-departemen yang diberi/mendapat informasi


Diberi
I–

setelah keputusan atau tindakan diambil

Certified Professional Human Capital Management (CPHCM) - Indonesia


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

32
Certified Professional Human Capital Management (CPHCM) - Indonesia
Characteristic of your People
(Manager and its Talent)

Who am I ?
Certified Professional Human Capital Management (CPHCM) - Indonesia
34

Certified Professional Human Capital Management (CPHCM) - Indonesia


Mengenal Diri Sendiri
Mengenal Otak Kanan-Otak Kiri

Otak kanan — KREATIF — Bentuk, Intuisi, Lagu & musik, Warna-


warni, 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 KEKUATAN INTIM
BERKEMAUAN KERAS HANGAT & BERSAHABAT
INDEPENDEN MERASA PUAS DIRI BERBELAS KASIHAN
TIDAK DISIPLIN
MEMILIKI VISI CEROBOH BANYAK BICARA
DOMINAN EMOSI TIDAK STABIL
PRAKTIS DINGIN & TIDAK EMOSIONAL RESPONSIF
TIDAK PRODUKTIF
PRODUKTIF SULIT MENGAMPUNI
ANTUSIAS
SARKASTIS
TEGAS EGOSENTRIS
PEMARAH
MEMBESAR-BESARKAN RAMAH
PEMIMPIN KEJAM KELEMAHAN MASALAH

BERBAKAT
PEMURUNG
KELEMAHAN TIDAK PUNYA MOTIVASI TENANG/
SUKA MENYIKSA
SUKA MENUNDA-NUNDAI KALEM
ANALITIS BERPUSATKAN PADA DIRI SENDIRI
EGOISCUEK
ESTELITIS PEMBALAS
MENYELAMATKAN DIRI
BERPIKIR NEGATIF SENDIRI
OBJEKTIF
TEKUN
KURANG BERMASYARAKAT TIDAK TEGAS DIPLOMATIS
DISIPLIN TEORITIS SUKA KHAWATIR EFISIEN TERATUR
RELA BERKORBAN PERASA PENAKUT DAPAT DIANDALKAN
PRAKTIS, HUMORIS

KEKUATAN
CERMAT Certified Professional Human STABIL
Capital Management (CPHCM) - Indonesia
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 ENTHUSIAST
9
(pengawas, pengendali) (sangat berminat, penuh semangat)
6

15 12 9 6 3 3 6 9 12 15
Reflective Expressive
(penuh pertimbangan) (bersemangat, berapi-api)
3
6
ANALYST 9 COACH
(pemikir, perenung) (pelatih, pembimbing)
12

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
Research Purchasing & Logistic

Development IT
R&D
Board of CEO 100 Process Engineering HR & Labor Relations
directors (Gupta)
Legal &Intellectual Property

Production X Plants Control

1500 Y Plants Engineering


Division have
Z Plants Production 4-6 management
layers
Sales Tha Branch
MalBranch
400
HkgBranch

UK Branch
US Branch
Certified Professional Human Capital Management (CPHCM) - Indonesia
Business Team Organization for
Chemical Company - ACI
(Virtual) Companies Division
GM 50 Manager Corporate Planning
Corporate
Service Manager Finance & Accounting
Division 50
Research 20 Manager Purchasing & Logistic

Manager Development 20 Manager IT


R&D
Board of Process Engineering 15 Manager HR & Labor Relations
Directors 100
(incl Gupta) 5 Manager Legal &Intellectual Property
Manager Planning
Control
GM Basic Manager X Plant New Management
Chemical *Divisions have teams of
Application Manager Y Plant Production 3 management layers.
*Each biz unit / team has
1000 Manager Branches
300 own P/L
USA - UK
*Corporate service cost is
charged by number of
GM Specialty Manager Planning
Control people by team.
Chemical Manager Z Plant *Professional staff of
Application Production Corporate & R&D uses
500 Manager Branches Application time charge system
100 Engineering
THA - MAL -HKG *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 Mr. Sanjeev


Plant Manager X Plant Manager Y R&D Manager
50 th 46 th 48 th

Mr. Venkat Mr. Rajiv Ms. Bhindi


Planning Manager Plant Manager
Certified Professional Human Z
Capital Management (CPHCM) - Indonesia
Head of Corporate Planning
34 th
Division
:
Manager Corporate Planning (50)
GM Corporate
Service
Manager Financial & Accounting
(50)
Division
Manager Purchasing & Logistic
: (20)
Manager Research
Manager IT (20)
R&D Development
Manager HR & Labor Relation
(100) Process Engenering (15)
Manager Legal & Intecletual
Property (5)
Manager Planning

Board of GM Basic Manager X Plant Control


Directors Chemical
(incl gupta Application Manager Y Plant Production
(1000)
Manager Brand (300)

GM Special Manager Planning Control


Chemical
Aplication Production
Manager Z Plant
(500)
Aplicaton
Manager Brand (100) 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 :
Pungki.purnadi@yahoo.com
pungki@pungkipurnadi.com

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

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