Transforming HR

Telkomsel to become
Business Partner

Human Resources Management

 Background

Krisbiyanto
• 11 years Banking experience in Indonesia
• 18 years experiences in overall Human Resources area in
national and multinational companies
• Currently working as VP Human Resources for PT
Telkomsel Tbk
• Previously SVP Human Resources Group PermataBank.
• IBRA - The HR Coordinator for Merger 5 Banks (Permata)
• Senior Vice President of Human Capital Group, Bank
Universal Tbk.
• Citibank, N.A., Jakarta, ABN Amro, Pertamina,
• Human Capital Chairman
• Active speakers in many HR Forums in Indonesia and
overseas

Human Resources Management

 Drivers of Indonesian
Wireless Telecommunication

Economic Growth Increase

Competition in
Wireless Sector

Indonesian
Wireless
Industry

Technology Evolution of User

Evolution Behavior

Regulation

Human Resources Management

Background and Four Key Challenges
With the predicted growing of the organization into 4,000 employees and
the customer base of approximately 35 million customers at the end 2006
and also to handle complex HR issues in the future, it is necessary for
Telkomsel to strengthen its Human Resources Group
From its Business Plan Telkomsel face at least four key challenges in
the next 5 years such as:
 Empowering Leadership Position in Industry:
– further grow the cellular market and industry
– set product & service as the standard for the industry
– increase role in cooperating with regulators and local government
– perform cost leadership
 Building Strategy in Market Penetration, Market & Product
Development:
– Selling more product/services innovation to existing customers,
including niche strategy
– Timely deployment of technologies, network coverage & capacity
– Resource & capabilities to expand the business portfolios–
Develop attractive new business model
– Alliances with strong parents in driving higher level quality of
market Human Resources Management
Background and Four Key Challenges
 Driving Business Capabilities & Innovation by strengthening partnership
& collaboration:
– Facilitate more lucrative partnership with other players across the industry
value chain
– Facilitate business incubator for the purpose of leveraging and enriching
business portfolios.
– Partnership with strong allies for total business solutions to market segments

 Strengthening Organizational Capabilities and Managing Risk in

Business Competitiveness:
– Outsource non core business activities.
– Define competitive business portfolios along the industry value chain
– Improve business & organization responsiveness
– More focus in retaining customers to anticipate competitors/new entrants’
aggressive moves.

Human Resources Management

 Developing HR Strategic Imperatives
Vision
The Indonesian wireless
telecommunications solutions company

Mission Statement
First choice wireless telecommunications solutions
provider in Indonesia working in partnership with
shareholders and other alliances to create value for
shareholders, employees and the nation

Organizational Core Competencies

Cellular network services provider
Relationship manager

Strategic Imperatives

1. Business Growth & Profitability

HR
4 Key 2. Leading Network Coverage & Quality
Strategic
Challenges 3. Pioneer in Product & Business Development Imperatives
4. Excellent Customer Management

5. Professionally Managed Operator in Indonesia

Human Resources Management

 HR Telkomsel’s Strategic Imperatives

• Building Organization Capabilities

– (talent esp. leadership and competency, synergy, technology)
• Enhancing the Outsourcing strategy
• Improving the Organization Design
– (alignment and coordination)
• Improving the Performance Management
– (building the challenging KPI, and performance alignment)
• Strengthening the Organization Culture
– (sales, service)
• Developing World Class HR Management
– (managerial and technical competencies)

Human Resources Management

 Improving Strategic Partnership,
Building Share Service and Identify Potential Outsourcing

Outsourcing

Strategy Change
Partnership Management

Shared Service

Administrative Organization
Expert Enablement

Outsourcing

Human Resources Management

 Quick Needs in Developing World
Class HR Management

• Improving the HR competencies;

• Improving synergy with parent companies
(Telkom Group and Singtel Group)

• Clarifying expectations, improving the

strategic roles and benchmarking with the
worldwide practices;
• Eliminating in-efficiency
• Developing excellent HRIS;
– ( building share service, and self service capability)
• Re-designing the Outsourcing strategy

Human Resources Management

 HR Challenges on Managing
Administration

– Reduce time spent by HR on

administrative activities
– Increase speed of providing analysis
– Deliver information to employees in an
accurate & timely manner
– Increase speed of providing analysis
– Deliver information to employees in an
accurate & timely manner

Human Resources Management

 Reducing of Time Consuming in HR
Transactions
 Record Maintenance  Recruiting Administration  Reporting & Access to Information
 Benefits Administration  Performance Measures

Example : Traditional HR Communication Model

Employee needs to HR provides employee

Employee calls HR
change address for with form (DAY 2)
(DAY 1)
company records

Confirmation

~~

HR provides confirmation HR inputs information Employee completes

to employee (DAY 5) into system (DAY 4) form, submits to HR
(DAY 3)

Example : Optimal HR Communication Model

Employees and Management as user of HRIS.
Application, Server, Transmission, and operation of HRIS are mostly outsourced

Human Resources Management

 HR and Technology
Automating HR Processes can help reduce HR’s Administrative burden
Performance Review
• Performance
Keeps track of Review Due Dates Report / Analysis
Review Report / Analysis
• Identify absence trends
• Informs managers when due
• Keeps track of Review Due Dates • Identify
• Conducts absence
turnover trends
analysis
• Maintain supplementary views from managers, peers,
• subordinates
Informs managers when due • Conducts
• Evaluate turnover
recruitment costsanalysis
• Maintain supplementary views from • Evaluate recruitment costs
managers, peers, subordinates

Technology
Technology

Personal Changes Internal Recruiting

Personal
• Employee Changes
to maintain own personal
Internal Recruiting
• Maintain employees’ skills &
competence
• Maintain employees’ skills
information
• Employee to maintain own • Search for qualified internal
&candidates
competence
when needs arise
personal information
• Search for qualified internal
candidates when needs arise

Human Resources Management

 HRIS Scope

Comprehensive HRMS Solutions

CRM

Recruitment
i - Recruitment SCM
Work Structure Employee Data

Payroll (Indonesia)
HR Budgeting Salary Admin Finance

Core HRMS Benefit Admin iLearning

Compensation Project

Absence Admin Time and Labor

Career & Succession
EAM
Qualification Tracking
Training Admin
Competency Profile
3 rd Party

Self - Service HR Intelligence Workflow

Human Resources Management

 Implementation Stages

Phase 2 B Dec 2006

Phase 2 A 28 Sep 2005 Oracle Core HR

- Organizational Mgmt
Oracle Core HR - Employee data
- Organizational Mgmt - Payroll
- Employee data - Recruitment
- Payroll - Absence Admin
- Recruitment
- Absence Admin - Competency Framework
- Career Plan
- Performance Appraisal
Phase 1 Juni 2005 Self Service - Employee Transfer
- Leave - Claims (reimburse)
- Overtime Assignment
Oracle Core HR and Overtime Admin
- Organizational Mgmt •Oracle iRecruitment
- Training Request
- Employee data •Oracle iLearning
- Payroll - Reassignment
•Oracle iExpense
•Oracle Learning •Oracle HR Intelligent
Self Service (view only) Management System
- ePayslip
- Personal Information •Oracle Time and Labor

Human Resources Management

 HRIS Implementation and Segregation of Duties
VP HR

HRIS Strategy Deployment HR Account Line managers

Strategy Policy,
Management Decision,
Program

Feedback

Strategic Control,
Monitoring and evaluation

Key Success • Solid team , Clear Guide
Factors • Fighting spirit, Team Work
• Completed staff work
Key Failures • Data structure & types
Factors • Module handling skill
• Lack on control
• Clear business strategies needs
• Clear stages & Coordination
• Strategic analytical control
• Lack on communication strategy
• Limited Internal com media
being used
• Passion, motivative relation
• Clear business needs &
Functional views
• Lack on communication skill
• Unclear strategic& practical
messages ??
• Clear role on HR strategy
• Clear deployment benefits
• Link to his/her performance
• Never learns to build a
leadership via HR strategy
• Rational vs Subjective

Human Resources Management

Sample Telkomsel HRIS in Updating
Personal Information

Human Resources Management

HR Challenges in Implementation

– Commitment across HR Group and

Organization
– Readiness Level of the Organization
– Change the Paradigm (what is it for me
issues)
– Change the existing working process (self
services is easy to say but difficult to do,
“I have no time to do that…, that’s HR job”

Human Resources Management

HR Challenges in Implementation

– Maintaining and updating the HRIS is

another issues (adding and modifying the
features, and utilizing the information)
– Not every HR modules are ready to plug in
the system
– Always something new to add in the
system
– Socialization and Communication

Human Resources Management

 HRIS Enhancement

• Web hris.telkomsel.co.id & oracle self

1 service (employee search, transaction, birthday, special
info, cv etc)

2 • Email email@telkomsel.co.id
(access through pda, mobile phone, approval, alert etc)

• Mobile sms & sim toolkit application

3 (sms or SIM application toolkits, outstanding leave,
overtime, etc)

Human Resources Management

Human Resources Management