Indonesia must step up professionalism<\/p>\n
THERE will be no outright givens, no certainties of investment
\nand economic prosperity, in the fiercely competitive business
\ntimes looming ahead, management experts warn.<\/p>\n
Staggering technological advancements have made the global
\nvillage a reality, traversing borders and bringing the latest
\ndevelopments into even the most remote areas in the world.<\/p>\n
The dynamics of conducting business have changed inexorably.
\nThe era ahead will call for solid, effective management for
\nIndonesian businesses to steer themselves on the course of
\ngreater professionalism, say Djunaedi Hadisumarto and John
\nPrasetio, both members of the board of judges for Indonesia for
\nthis year's Asian Management Awards, which were presented last
\nnight at the Jakarta Hilton International Hotel.<\/p>\n
Other members of the board of judges for the awards from
\nIndonesia include Rachmat Saleh, president commissioner of Bank
\nMuamalat and part of the Governing Board of the Asian Management
\nAwards, and H. Surasa of the Indonesian representative office of
\nthe Asian Institute of Management.<\/p>\n
Djunaedi and Prasetio caution that Indonesian businesses will
\nno longer be able to rely on their traditional attractions of
\nvast resources and a cheap labor force because the race for
\nforeign investment is now more heated than ever.<\/p>\n
The opening up of China over the past decade, its remarkable
\nindustrial and economic growth, as well as the forthcoming boost
\nto its might with the return of Hong Kong to its domain in 1997,
\nhave slashed the number of investment opportunities for other
\ncountries in Asia.<\/p>\n
The belated acceptance of Vietnam back into the fold of
\nbusiness and politics will pose a further threat to economic
\ngrowth in neighboring countries.<\/p>\n
Globalization<\/p>\n
Djunaedi, assistant for Economic Affairs at the Office of the
\nCoordinating Minister for Economy, Finance and Development
\nSupervision, and Prasetio concur that a deliberate, concerted
\napproach to changes in management practices in Indonesia is
\nneeded -- and fast.<\/p>\n
Prasetio, managing director of the accounting firm of
\nPrasetio, Utomo and Co., compares globalization to a virus which
\nhas already infected Indonesia, but many companies are lagging
\nbehind in rising to its challenges.<\/p>\n
His diagnosis for meeting the onslaught of globalization is
\nthe push towards professionalism in all aspects of running a
\ncompany.<\/p>\n
\"Indonesian companies must really go with professionalism in a
\nmost aggressive way,\" Prasetio says. \"Many Indonesian companies
\nare trying to take advantage of global trends, which is great.
\nBut the traditional mindset of conducting business in Indonesia
\nmust change so that they can operate under global norms.\"<\/p>\n
Part and parcel of developing professionalism is the need to
\nidentify the core business sector of the company and devise the
\nappropriate strategy to achieve goals, Prasetio says.<\/p>\n
He describes some managers as employing a \"hit-or-miss
\napproach to business...they go from one business to another
\nwithout everdeveloping a really successful strategy in any one.\"<\/p>\n
He advises that managers must put concerns on huge profits on
\nhold for the sake of developing professional practices which will
\nbe beneficial in the long run.<\/p>\n
\"Some companies are too bottom-line oriented. Managers who are
\noverly profit oriented will have problems. But those with a
\nmission of what they want to accomplish know to how survive
\nthrough developing their core business.\"<\/p>\n
Recent financial scandals in the banking sector have further
\nhighlighted the importance of professionalism, Djunaedi adds.<\/p>\n
\"There is a real need for professional attitudes among bank
\nemployees. People can learn from the recent cases and see them as
\nimportant lessons in implementing professional banking
\npractices.\"<\/p>\n
Family business<\/p>\n
Both men pointed to the traditional family-dominated structure
\nof Indonesian business, in which the reins of power are handed
\nover from the patriarch to his scion, with family members
\nwielding power in diverse aspects of the company.<\/p>\n
In many cases this fosters the development of a closed, rigid
\nmanagement system where the top administrator feels responsible
\nfor all aspects of the running of the business and wary of
\ndelegating power to all except his family circle, Djunaedi
\nstates.<\/p>\n
\"If we define professionalism we are actually talking about a
\ngreater reliance on professional skills. Attitudes must change
\ntoward this goal, instead of placing the interests of the family
\nfirst.\"<\/p>\n
The prevalence of nepotism within the management structure,
\nwhich Djunaedi attributes to traditions within Indonesian and
\nAsian societies, will hopefully diminish as people realize the
\nlimits they place on expansion.<\/p>\n
\"The challenge will then be to develop professional management
\npractices and training of people to be more professional,\" he
\nsays.<\/p>\n
Not all companies where younger family members take over from
\ntheir relatives remain entrenched in the old guard style of
\nmanagement, Prasetio says.<\/p>\n
But he praised the willingness to adapt to the demands of a
\nchanging world at Bank Bali.<\/p>\n
In 1991, Bank Bali was recognized for outstanding Information
\nTechnology; in 1992 for Financial Management; and this year, it
\nreceived double honors in the categories of People Development
\nand Information Technology.<\/p>\n
When the bank's founder and now chairman, Djaja Ramli, named
\nhis son, Rudy Ramli, to the post of president in mid 1992, the
\nmove marked a gradual transition to a younger generation of
\nmanagers, not the mere continuation of established ways, Prasetio
\nsays.<\/p>\n
\"Rudy Ramli was educated in the U.S. so his management view is
\none more suited to these changing times,\" Prasetio says. \"He has
\nshown himself to have his individual vision of management for
\ntoday.\"<\/p>\n
Ramli has brought in a host of new managers and his leadership
\nis working well. In the past few years, Bank Bali has weathered
\ndifficult economic times to emerge as one of the strongest and
\nmost respected banks in Indonesia and Asia.<\/p>\n
Information<\/p>\n
An end to the aversion towards divulging information and
\ndiscussing business practices will spur greater economic
\ndevelopment for businesses in general, both men agree.<\/p>\n
Fears of losing advantage to competitors and making them privy
\nto company secrets have led many companies to keep tight-lipped
\non their formulas for success, Prasetio says.<\/p>\n
\"Information is still expensive in Indonesia. In America, for
\ninstance, one can open up a copy of a business magazine and find
\nout how a company became successful and adapt their example to
\none's own case; the information is readily available.\"<\/p>\n
Prasetio qualifies this by stating that globalization and the
\npresence of younger managers with more cosmopolitan experience in
\nthe business world will force change.<\/p>\n
\"Here, we are still very closed but that is changing. The
\nolder generation of managers is fading away and that will bring
\nin new leadership. Younger managers are more willing to open up.\"<\/p>\n
Both Prasetio and Djunaedi were in agreement that greater
\ndistribution of information should be accompanied by the
\nperception that competitiveness within the workplace is not
\nsomething to be disdained or viewed as a threat.<\/p>\n
This will require a shift in values, Djunaedi concedes,
\nbecause competitiveness runs against the grain in the communal,
\nclose-knit society of Indonesia which covets the concept of
\nrukun, the maintenance of harmony in all relationships. To pit
\noneself against others in achievement risks upsetting the
\nharmonious balance.<\/p>\n
Djunaedi relates his own experience as a university dean when
\nhe moved to implement an honors program.<\/p>\n
\"I received a lot of criticism from my colleagues, who said I
\nwas trying to treat people differently and creating distinctions
\nbetween them. For me it was the same as having performance
\nscholarships for students who had showed their potential, in
\ncontrast to just awarding scholarships based on need.\"<\/p>\n
Prasetio says a positive view of competitiveness is sure to
\ndevelop among the younger generation of business people.<\/p>\n
\"I'm speaking as an older person here when I say that we are
\nbrought up to be tolerant. We learn that it is very important to
\nbe careful to avoid jealousy, trying always to refrain from
\ncreating envy among other people from our actions. But this is
\nchanging. Young people today are more accepting of taking a
\nhigher profile role than their predecessors were.<\/p>\n
The Asian Management Awards is one means to opening up
\nIndonesian business to development and putting it on the
\ncompetitive track with its counterparts in other Asian countries,
\nDjunaedi believes.<\/p>\n
\"The companies are willing to disclose their data and this is
\nvery beneficial,\" he says. \"More openness on issues and problems
\nthese companies have overcome will help in the growth of the
\nscience of management.\"<\/p>\n
Window: ...greater distribution of information should be accompanied
\nby the perception that competitiveness within the workplace is not
\nsomething to be disdained or viewed as a threat. This will
\nrequire a shift in values, because competitiveness runs against
\nthe grain in the communal, close-knit society of Indonesia...<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesia-must-step-up-professionalism-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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