Thu, 01 Sep 1994

Management principles of Bank Bali appreciated

Bank Bali must rank as one of Asia's most outstanding companies if its tally of Asian Management Awards is considered a gauge of excellence.

This year's awards for People Development and Information Technology join honors for Financial Management in 1992 and Information Technology in 1991.

The bank was founded in 1955 as PT Bank Persatuan Dagang but its growth has been particularly pronounced within the last decade, especially in the period 1988 to 1992. During this period the bank's total assets grew from Rp 993 billion to Rp 3.32 trillion. Total deposits rose from Rp 664 billion to Rp 2.06 trillion.

Today it is generally regarded as one of Indonesia's most successful financial institutions. Total assets in 1993 registered Rp 4.14 trillion, a 21 percent growth over the previous year.

Rudy Ramli, president of Bank Bali and son of founder and chairman Djaja Ramli, says his management principles differ little from those of his father.

"There is really not a great difference between what my father considered important and what I consider to be essential to managing a successful company," Ramli says. "If the management as a concept is successful why change it?"

He adds, however, that rapidly changing times have forced the adaptation of those principles.

"Who could have foreseen the crumbling of the Berlin Wall? We are living in a completely different world. That provides more opportunities but also needs greater adaptation to the changes."

Models

Ramli says a gradual restructuring of Bank Bali has occurred since 1989, when new deregulation measures were announced by the Indonesian government.

A pick-and-choose method of several models was used to select the best management models for the bank, he says.

"You cannot take a management model from the U.S. or Japan and apply it to Indonesia without making changes. We have to adapt it to the Indonesian environment so it works without hitches."

The establishment of a strong corporate structure, with established goals, provides the bank with a solid foundation, Ramli adds.

"Everything is tied to three things. Our corporate goal is to become the best bank in management, service, solidity and reliability. The core of our corporate culture is total caring; employer cares for the needs of employees and employees care for the business of the employer."

Ramli is quick to add that he is not interested in creating the largest bank. "Bigger does not necessarily mean better," he adds. "One can be big and still be small. The key is to broaden business into several different core markets. When you are small you can maneuver more easily and adapt."

Receiving awards for outstanding performance is gratifying but it also nurtures an underlying fear.

"You want to push yourself harder to make sure you remain at the top. You start to worry about slipping. Business is like a life-cycle; when you are at the top you can either maintain that position or begin on a downward path."