Amanah & agility journey

✓ Trans & Restructuring &

Advisor & BOD Coach; BOC
IFGL; ISEA
Sabam Hutajulu
CEO Tugu Mandiri Life Ins. Laguboti, North Sumatera
CEO JARDINE LLYOD 2015
THOMPSON Indonesia 2020 Married with two daughters
– Pianist @ Allsaints
CEO Tugu Pratama Indonesia March Board GERHATI: 4 the least, the last, the lost
3,
2011
2017
2015
CFO PT Elnusa Tbk. Now Education
Pertamina Energy Services Pte.
Ltd: HONG KONG & Singapore 2007 Ph.D in Accountancy,
2011 1997 Weatherhead School of Management,
CFO & Admin 2001
Case Western University (CWRU),
Cleveland, OH, USA
University 21 Global – Sing 2005
Global Next University – KL Now Master of Accountancy,
1995
FEUI & ST-PPM Weatherhead School of Management,
1997
Case Western University (CWRU),
PT Pertamina (Persero) 1990
Cleveland, OH, USA
Manager Strategic Planning, 2007
Manager Finance Internal Control 1978 Bachelor in Accounting, Faculty of
1984 Economics, University of Indonesia,
BPKP 1985 Jakarta, Indonesia
Senior Auditor 1989
 Resilient & Agile Management
Accountants during & post Crisis
for survival →thrive→ SUSTAINABILITY
(Management) Accountants are
gate keepers?
April 2011 @ pt xyz: 111 B gone, fish rots in the head!
Oucccchhh………..where are the accountants?!
✓ Cash GONE 111 bio IDR: DOC
✓ Ken Arok; Ken Dedes & Banditos >> Boss Bandito/s
✓ BUDGET (spending) list: overheat→ assets w/o pairing
✓ Window dressing: laba vs.net OCF 200 bio IDR→ COGS 94%
✓ Bullet loan 50 mio USD at 9% interest
✓ About 1.4 tril IDR cash/expenditure were not accountable
since 2007: technically bankrupt (Z-score 1.7)
✓ Share price at IDR 170/share vs Opening at 400
✓ About 1,400 people at risk
Management Accountants: where?

✓ A listed company
✓ BOC, BOD, Komite B & B
✓ Internal Audit
✓ External Audit
✓ Comptroller
✓ Board & GCG Manual
✓ Value & Ethics
✓ from crisis..Crisis…. CRISIS
✓ Pembiaran?
✓ Accountants read & understand the
signals but silent?
Board situation: two chambers→two power?
✓ Indecisive & worry; fear
✓ CFO & Team: "Speech is silver, silence is golden"
✓ Paternalistic: arahan? The 3rd chamber ie shareholder?
✓ Decision: from BOD→ C & C + sunk-cost→ save now & future!
 Management Accountants:

decision making
&
→ The process: Problem Solving
what why how when who ?

We are PAID to solve & decide→

amanah!
 Our MAIN problem is…
BOD decides: PEOPLE→ PROCESS→ OPERATIONS & KPI
 2. The 5 whys?root cause → Toyota way

Problem = resources = cash

20/80 rule?
CULTURE: inferiority & arrogance, silaturahmi
basa-basi & lack of 3K
→ The fish rots from the head: pilkada ! 2 BOD resigns
Root whys→ object to subject
✓ The fish ROTS from the HEAD: multiplier impact
✓ Budaya sungkan: half-hearted, difficult to say NO
✓ Pembiaran: tarsok→ contagious
✓ Belief bahwa: “numbers” are OBJECTIVES!
✓ Sulit mendengar: The King can do no wrong
→ CEO & Chief BOC ganti
→ Reshuffle 65% at BOD-1 and Managers and Ka-Cab
→ 200+ people go
 3.HOW?
Command & Control

transformational
HOPE, FAITH, LOVE
Insolvency vs
illiquidity
LIQUID
 Z Score = 1.79
✓ Turnaround; M&A;
End of Story?
CASH IS KING ! James bond 007
1. SWOT Analysis terkait resesi: scenario planning
2. Top 10 Risks: including PEOPLE & PROCESS + creativity
3. Business Continuity Plan atau Crisis Management Team
4. Stress Test untuk Laba/Rugi dan Cash Flow
5. Cash to Cash Cycle and margin by LOB & Free Cash Flow
6. Asset Liability Management: liquid?
7. Dashboard, EWS, & Monitoring→ guts, reliable & timely
Menuju sehat………..LIQUID

Angka-ANGKA dan organisasi→

konsekwensi !
AMANAH ! life is giving & forgiving:→LOVE→heal !
 39

Act of Leaders
Meeting
service Influence formal or
the needs
and informal
of others
sacrifice

✓ Leaders sudah selesai dgn dirinya! Kalahkan EGO

✓ 3C: to serve internal & CLIENTS→ abt 60% issues
solved
BOD/BOC anak indekost→ the power of WE &
listening
 Execution is KEY
re-SWOT, strategy, risk profiling

Jujur: I’m weak !

To serve the bos SWOT?

STRENGTHS weaknesses

OPPORTUNITIES Threats:
EGO
or….actually…honesty!

Weaknesses strengths

Opportunities
Threats & EGO
 HONEST & Gutsy
&
Analytics & cash based !
Rule Based Languanges→ boring
Mini MBA via Kuliah Jumat: knowledge & 3K
CCC & margin by LOB, geography & client
3. Free Cash Flow/monthly Cash Out Flow
= Survival Months. Example Conservative:
Saldo/COF by month?
https://www.creditguru.com/index.php/bankruptcy-and-insolvency/altman-z-score-insolvency-
predictor-for-non-manufacturers-emerging-markets
 Actions
▪ Let go negative & non-core business
▪ Stop overheat investment & re-deal price w vendors
▪ BOD Collect Cash
▪ Restructure Debt in Feb 2012
 4.When? Momentum theory
Small & now to boost morale
Eg. Cost leadership; kita gajian dari hutang; fasilitas BOD;
makan bersama di warung
 5.by WHO? WE !
The right man: attitude & aptitude

TEAM 3K
Cooperate
Coordinate
Collaborate
 Creativity & innovation:
digital TRANSFORMATION → a.buying & viewing behavior;
b. informed & reliable problem solving; internal startups
 New Loan Jan 2012 > 100 mio USD: < 1 year
2011
EBIT x 6,72 (0,00)
Total Assets
Book Value of Equity X 1,05 0,49
Total Liabilities
(Current Assets – Current Liabilities) X 6,56 0,76
Total Assets
Retained Earnings X 3,26 0,55
Total Assets
Z SCORE 1,79

wps.cn/moban
 Mid 2013: back HEALTHY → XYZ Turn
Around team did it!
✓ “Choose” your BOARD team:
▪ from 2 to 5 NEW BOD; new chief BOC 3x replaced
▪ Choosing people with HEART. Job is amanah:
▪ 220 people out; 65% middle to top replaced: Attitude & Integrity #1
✓ Tell your People & Media: be HONEST WE can solve
✓ EPS School & mini MBA: All are leaders→Problem Solving &
Decision Making!
✓ LET GO negative margin products/services, focus on XXX
✓WE are buddies & You can say NO to boss!
Behind the Share Price Movement:
the speaking numbers!
Lessons Learned & ACTIONED
 The World is VUCA: more crisis!
✓ Market crash, CA deficit; S&P downgraded ratings; interest rate down; PEN
incl. SME/UMKM?
✓ People fight for food, energy, & territory: ego & greed
✓ WW III is on: TRUMP vs. Xin Ji Ping→S&D disrupted
✓ Severe competition
✓ Brother Covid signifies → corporate “ICU” or EXIT
To be a LIVING Company & leader/s →
Transformation for GOING CONCERN

▪ Kongo Gumi (1,400 + years): communicado, disiplin, ideas-

IDEAS; positive thinking & daily transformation
▪ From 1955, only 11% Fortune 500 coys. still alive !
▪ Life span of a S&P 500 coy is 67 years in 1920s vs 15 years
today !
▪ Why? Enron, Lehman; BP; JS; XYZ Tbk and saved
▪ Belanda Masih Jauh: KODAK; NOKIA;
→ Good and bad times: daily transformation→ agile & resilient
 Agility & resilience
a·gil·i·ty
/əˈjilədē/
Learn to pronounce
noun
ability to move quickly and easily→ being human in uncertainty/VUCA/challenging time→
being amanah
"though he was without formal training as dancer or athlete, his physical agility was inexhaustible"
ability to think and understand quickly.
"games teach hand–eye coordination, mental agility, and alertness“
re·sil·ience
/rəˈzilyəns/
1.
the capacity to recover quickly from difficulties; toughness.
"the often remarkable resilience of so many British institutions"
2.
the ability of a substance or object to spring back into shape; elasticity.
"nylon is excellent in wearability and resilience“
Org. agility & resilience: Phil Abernathy
Command & Control: Organization BMI
Managing by Lembar Disposisi
By Gary Bolles- e-parachute
No organization structure!
Raef Lawson Ph.D, 2019
Management Accountants
Fit Purpose in Digital Age
Kita penjaga sawah!
Kalo ada sampah: pungut dan buang !
The signals: who knows & cares?
✓ Margin & ROI menurun; DER naik?; VENDOR komplain
✓ Silaturahmi 3K basa basi
✓ Rapat rapat tertutup & leaders sulit mendengar
✓ TARSOK→ tikus dibiarkan
✓ Key people resigned
✓ Acknowledge VUCA but ye to ACT
Temptations……restructuring
✓ Too much focus on consequences: KPI
✓ PEOPLE→ PROCESS→ EXECUTION (OKR) weakens
✓ Ya sudah, kita jual saja
✓ Menunggu arahan: rule based
Agile & resilient leaders
Transparency: digital
transformation
to be a LIVING/agile Accounting & leaders
▪ Above all: amanah, ihsan, tawakal
▪ HOPE & FAITH→full
▪ Multi functions: accountants etc !
▪ Execution Plan & Action→ OKR & leading indicators
▪ Cooperation; Coordination; Collaboration→
▪ Creativity & Innovation→data mgt & digital transformation
“new” agency theory: our stakeholders
We are AMANAH keepers = LeAdErS
→ do what we PRAY

Compassion

Sincerity
Amanah

knowledge guts
speed
Attitude: passion & perseverance

Linkedin : Sabam Hutajulu Ph.D

IG : sabam.hutajulu