Weighty slogan on an empty wall

This second part of our series in our weekly column, prepared with the help of marketing expert Hermawan Kartajaya, illustrates the professional views and thoughts of Yaya Winarno Junardy, president director of PT Bentoel Internasional Investama, a publicly listed cigarette manufacturer and distributor. The following ia an excerpt of the recent interview compiled by The Jakarta Post reporter K. Basrie.

In many companies, not only in Indonesia, the vision, mission, commitment, marketing strategy, philosophy, or whatever it is known as -- formulated by the boss and his few subs -- is framed and placed in eye-catching spaces and corners of the firm's walls.

And in many cases, the words, which the executives usually pick from books or training programs, are noteworthy only for the boss, his close companions and the office boys, who are regularly asked to polish the frames. Otherwise, the usually-beautiful frames would otherwise become a sweet home for lizards, spiders and other insects.

In such cases, the words will end there as a slogan and the firm's important messages to achieve its goals touch no one in the company and reach nowhere.

This kind of management culture has gone into the heart of the way many leaders think, and it is difficult to change since the power to change -- again in the mind of the boss -- remains solely in their hands.

Y. W. Junardy of Bentoel refused to join this batch of top executives.

"It's true that we (in any business) have to grow or die. But growth is a process and can be viewed from various angles," he said.

To reach our objectives is never an easy job, he added.

Junardy, also vice president of the Indonesian Marketing Association, or IMA, and former secretary-general of the Asia Pacific Marketing Federation, then shared the three elements in the growth model he applies in his current company, namely commitment, strategy and capability.

"Commitment means the will or the strategic intent to grow and to sustain growth. This has to come first! Then comes the strategy for growth, that is how to apply it and reach the goals," he explained.

The growth capability, Junardy went on, refers to the expertise to maintain the growth.

So, any growth commitment that cannot be translated professionally into a well-managed operational strategy will only become a lousy slogan.

"A superb strategy without the capability to implement it will also be useless," he stressed.

And, he added, the top executive of a company plays a giant role in this process.

"A leader must be able to mobilize and inspire all the people below him. And the company's commitment must be reflected through his leadership," Junardy said.

The character of any growth commitment is holistic, he stressed. "Growth does not only have to do with financial matters but with all sectors in the organization. It must touch all stakeholders."

Thus, a paradigm shift has to be made to allow people in the organization to move together with the same standard.

"If not, no one will align with any one which, in turn, will make it difficult for the top executive to mobilize all the potential the company has," Junardy said.

He cited his current company as an example, a company which grew from a family-run business back in the 1930s into the professionally-run enterprise it is today.

"At Bentoel, all of the people at the top management levels now have no blood relation. We agreed that our paradigm had to be shifted and a change is a rule not an exception," Junardy said.

Besides leadership, the growth commitment also requires a crystal-clear formula to win (also called visioning), resource commitment and a correct reward system.

As for a strategy to achieve growth, Junardy referred to four elements that a company should look at.

These are customer focus, financial matters, internal/external factors, and people as the center.

"Financial performance is the effort of the past. Innovation is much more important for the future and to sustain growth," he warned.

For Junardy, strategic initiatives should cover cost effectiveness (to be lean and mean), quality improvement, innovation (to be different and unique) and digitalization.

"All of the four keys should be aligned and go hand in hand," he said.

Bentoel, also the sole distributor for Philip Morris Indonesia products, which is now the number two mild cigarette producer in the country plans to surpass its rival in the next three years, he said.

At the company, he said, all executives should share their knowledge with others. "We believe that teaching is more effective than participating in a seminar alone."

Therefore, the role and capability of a top executive and his cross-functional strong management team in any organization is crucial to alert everyone about the company goals and how to formulate an outstanding strategy.

"Growth is absolutely necessary. But, it's not a gift. To achieve it, the key is with the people," he said.

So, if we don't achieve our growth objectives in the scheduled time, we have at least accomplished a great deal in addressing the internal management practices, attitudes, and culture.

At least, we have planted seeds that will germinate and bring future returns.

A graduate of Krisnadwipayana University in Jakarta, Y. W. Junardy, 55, is the boss of PT Telekomindo Primabhakti and a commissioner at PT Excelcomindo Pratama. Almost half of his life, he has spent at IBM offices, including those in Hong Kong, Tokyo and New York.