Redesigning Indonesia's corporate jungle<\/p>\n
By Michael Sinjorgo<\/p>\n
This is the second of two articles on coping with the
\nchallenges facing Indonesian companies during the economic
\ncrisis.<\/p>\n
JAKARTA (JP): Until last year everybody was so busy making
\nmoney nobody took time to look after their company's system
\ndesign, the big design, the ultimate customer. We got lost in the
\nwoods.<\/p>\n
Now that the crisis has hit, every organization is going
\nthrough immense cost-cutting measures and in the process laying
\noff personnel in whom much training has been invested.<\/p>\n
Unless the workload and the systems are revised as well, these
\nlayoffs will reduce short-term expenses but do nothing for the
\nunderlying problem and long-term competitiveness of the company.
\nIt is this competitiveness which will eventually determine
\nwhether a company survives.<\/p>\n
There is no better time to re-engineer then when one's back is
\nagainst the wall and the creditors are at the door, because most
\nemployees will understand the necessity of the process, hopefully
\nsupport it or at least not attempt to sabotage it.<\/p>\n
Suggested steps:
\n1. Re-engineering has to come from the absolute top of the
\ncompany. It is the leadership which has to give the impetus and
\nsupport to the far-reaching changes that the process will create.
\nThis is strictly a leadership program and if it does not come
\nwith the authority of those at the top, it is a waste of time and
\nnot worth starting.
\n2. Those at the top have to be totally committed to re-
\nengineering. This is not one of the fads going around, but a
\ntotal commitment to putting the systems in place in order to
\nproduce the desired results in the most effective and productive
\nmanner.<\/p>\n
This means that at every step the system itself has to be put
\ninto question. We all work on the assumption that the way things
\nare being done is the only way or the best way. Unless there is
\ntotal commitment from the top, no organization will question this
\nassumption in a meaningful manner. This is like parachuting; one
\ncan't do it half-way.
\n3. The vision and the deadline have to be formulated by the top.
\nThe team in charge of executing the re-engineering process has to
\nknow where to go and when to get there. The timeframe should be
\nshort, one year maximum, in order to create the urgency needed
\nfor the program. Moreover most companies in Indonesia do not have
\na lot of time right now.<\/p>\n
Maybe one way of formulating the vision would be to start with
\nthe question: if we had to start this company today, how would we
\ngo about it?
\n4. Before starting, make sure you have a thorough understanding
\nof what re-engineering is.<\/p>\n
Since a lot of companies in other parts of the world have been
\nthrough the process, there is plenty of literature, research
\nmaterial, data, experience, support and whatever else you need to
\nmake it a success.<\/p>\n
Questions like who should be on the team, what authority
\nshould they have, should we use outsiders, how do we get all the
\nemployees involved and on our side, what are the necessary steps
\nto implement the changes, what are reasonable expectations, what
\nare milestones, what are the problems we will run into, what are
\nthe pitfalls, how will the accountability work, are but some of
\nthe issues that have to be resolved in advance.
\n5. Don't waste your time analyzing the current process. One way
\nof guaranteeing failure is to spend a lot of time, meetings and
\nenergy on studying the current structure. We know it does not
\nwork properly, that is why it has to be re-engineered.<\/p>\n
Most people in the current structure are interested in the
\nstatus quo, in the way things were, in maintaining their current
\npoints of reference, in keeping their jobs, protecting their turf
\nand authority. Getting them into meetings and preparing reports
\non how things work today will only waste their time, convince
\nthem how well the system works and increase their resistance for
\nchange.<\/p>\n
We have to smash the box in which we have immersed ourselves
\nin order to create a better one. This is not about fixing the old
\nbox, this is about building a new one.
\n6. No department and no position can be off limits. Everything in
\nthe company's organization should be allowed to be put into
\nquestion if you want any kind of hope of implementing the
\nchanges.<\/p>\n
If transportation is an issue, the team should be allowed to
\nask: does the president need a Mercedes, what does this car bring
\nto the production process, why do people make business trips?<\/p>\n
A director cannot exclude his or her department from the scope
\nof the team. Remember, this is a structural process and therefore
\ninvolves all kinds of departments and people. This is a
\nparticularly important point in Indonesia, where the traditional
\nculture is very much in favor of pleasing the boss and certainly
\nnot challenging him or her. Look where that got our last
\npresident.<\/p>\n
If the management of the company is not committed to this
\npoint, don't start. Save your money.<\/p>\n
Re-engineering is not for the fainthearted. It will
\nfundamentally change for ever the way your business operates, how
\npeople are compensated, promoted and evaluated. It will deeply
\nchange the way employees relate to one another and the
\nmanagement. It will fundamentally alter the way clients see the
\ncompany and deal with it. What your employees will be doing and
\nhow they will complete their daily tasks may have little
\nresemblance to what is happening today. All this change will
\ncreate tremendous opportunities and anxieties.<\/p>\n
Indonesia's culture and values will play their own role in
\nthis process. There is no use just copying what has been done
\nelsewhere in the world. The fact that it works in the United
\nStates does not mean it will work here in Indonesia. In fact it
\nshould not.<\/p>\n
Re-engineering is all about exploring the great unknown, the
\nuncharted waters, about inventing, about creativity and has
\nnothing to do with copycatting what someone else accomplished.<\/p>\n
The unfortunate truth is that governments seldom lead, but
\nmost of the time follow through on what is perceived to be
\npopular with the public. Making unpopular tough decisions is
\nsomething most politicians will avoid like the plague.<\/p>\n
For business people to wait for the government to put the
\nright structures in place for them to start re-engineering is the
\nsame as asking for a spot on the waiting list for a soon-to-be-
\ndefunct company.<\/p>\n
Leadership and vision is what companies need that will be part
\nof the new corporate Indonesia. If the economy is to rise again
\nto greater growth than before, it will have to be better
\nstructured, more competitive and transparent.<\/p>\n
However, don't wait for the government to build the railroad,
\nyou still will be waiting when the train eventually leaves the
\nstation.<\/p>\n
Re-engineering is a well-worn tool, used in many parts of the
\nworld by thousands of companies when they had their backs against
\nthe wall. This time it is Indonesia's turn to sink its teeth into
\nit and in the process make the methodology a unique asset to its
\nculture, its people and its economy.<\/p>\n
Michael Sinjorgo, CLU, CHFC is a senior financial advisor.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/redesigning-indonesias-corporate-jungle-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }