Weighty slogan on an empty wall

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.