LEADING ORGANIZATIONAL
CHANGE
DR. Tb. Donny Syafardan

Best Practice
of
Organizational
Change
Transformation
Business
Restucturing
Business
Process
Reengineering
Total Quality
Management
Etc.
Etc.
2

FORCES DRIVING THE NEED FOR
MAJOR ORGANIZATIONAL CHANGE
More Large-Scale Changes in Organizations
Structure change Mergers, joint ventures, consortia
Strategicchange Horizontal organizing, teams, networks
Culture change New technologies, products
Knowledge management, enterprise New business processes
resource planning E-business
Quality programs Learning organizations
More Threats
More domesticcompetition
IncreasedSpeed
International competition
Global Changes, Competition and Markets
• Technological Change
• International Economic Integration
• Maturation of Markets in DevelopedCountries
• Globalization and open economy
More Opportunities
Bigger markets
Fewer barriers
More international markets
Source: Adapted/ Based on John P. Kotter, The New Rules:
How to Succeed in Today’s Post-Corporate World
(New York: The Free Press, 1995). 3

Types of Organizational Change
Adaptive
Change
Innovative
Change
Radically
Innovative
Change
Reintroducing
a familiar
practice
Introducing a
practice new
to the
organization
Introducing a
practice new
to the
industry
 Degree of complexity,
cost, and uncertainty
 Potential for
resistance to change
Low High
4

Incremental vs. Radical Organizational Change
Continuous
progression
Paradigm-breaking
burst
Through normal
structure and
management
processes
Transform entire
organization
Affect
organizational
part
Create new structure
and management
Technology
improvements
Breakthrough
technology
Product
improvement
New products,
new markets
Sources: Based on Alan D. Meyer, James B. Goes, and Geoffrey R.
Brooks, “Organizations in Disequilibrium: Environmental Jolts and
Industry Revolutions,” in George Huber and William H. Glick, eds.,
Organizational Change and Redesign (New York: Oxford University
Press, 1992), 66-111; and Harry S. Dent, Jr., “Growth through New
Product Development,” Small Business Reports (November 1990): 30-40.
Incremental Change Radical Change
5

Strategy
Structure
Process
People
CHANGE IN TARGET
6

Sequence of Elements for
Successful Change
Environment
Suppliers
Professional
Associations
Consultants
Research
literature
Customers
Competition
Legislation
Regulation
Labor force
1. Ideas
2. Needs
3. Adoption 4.Implementation
5. Resources
Internal
Creativity and
Inventions
Perceived
Problems or
Opportunities
Organization
7

ENABLING FACTORS FOR
SUCCESSFUL CHANGE
Leadership
Capacity
Capability
Culture

DYNAMIC ROLE OF LEADERSHIP IN
ORGANIZATIONAL CHANGE
Leadership
Capacity
Capabiliy
Culture
Strategy Structure
System
Shared-
Value
GOAL
Driver Enabler Changes Output

SEEING
VISIONING
STRATEGIZING
RISKING
ENROLLING
DELEGATING
INSPIRING
PERFORMING
OBJECTIVESROLES AND RESPONSIBILITIES
Adaptation: Leading Change, John Kotter, Harvard Business School Press, 1996.
VISION
STRATEGIES
CHALLENGE
RISK
ACTION
LEADERS
MOVEMENT
ENERGY
PASSION
CHANGE
LEADERSHIP
10

PLANNING
BUDGETING
ORGANIZING
STAFFING
GUIDING
CONTROLLING
REASSURING
MONITORING
OBJECTIVESROLES AND RESPONSIBILTIES
Adaptation: Leading Change, John Kotter, Harvard Business School Press, 1996.
PREDICTIBILITY
ORDER
CONSISTENCY
ZERO DEVIATIONS
STABLE PERFORMANCE
SHORT-TERM RESULTS
MANAGEMENT
11

A COMPARISON
CHANGE MANAGEMENT CHANGE LEADERSHIP
 Change is a threat to be
controlled
 Change is “managed” through
methods and tools
 Selected change managers are
most qualified to handle change
 Issues and problems can be
cleaned up “after the fact”
 Change is a competitive
advantage to be embraced
 Change is “led” through the heart
and mind
 A team of change leaders is
required to lead change
 Issues and problems can be
mitigated proactively
12

CHANGE MANAGERS AND CHANGE LEADERS
 Leadership is required for change
 “A change team made up only of managers – even
superb managers who are wonderful people – will
cause major change efforts to fail.” (John Kotter)
 Leaders and managers need to work together
 Leadership drives and management controls
SUCCESSFUL CHANGE TEAMS
75% Leadership + 25% Management
Adaptation: Leading Change, John Kotter, Harvard Business School Press, 1996.

CHARACTERISTICS OF CHANGE
LEADERS
 Change Leaders Should
Be:
 Moral and adhere to ethical
standards
 Competent
 Knowledgeable
 Open
 Concerned
 Perceived as motivated by
truth; not having vested
interest in change Source: S Fox and Y A Hamburger “The Power of
Emotional Appeals in Promoting Organizational Change
Programs,” Academy of Management Review,
November 2001
14

REASONS FOR FAILURE OF
ORGANIZATIONAL CHANGE INITIATIVES
 Difficulty changing the culture of the organization
 Lack of staff commitment and understanding
 Lack of education, communication and training
 Responsibility without sufficient authority
 Lack of effective ‘Champions’
 Loss of momentum after opening hype
 Lack of funding
Source: William L Cunningham

REASONS FOR FAILURE OF
ORGANIZATIONAL CHANGE INITIATIVES
 Lack of quantifiable long term benefits (ROI)
 Lack of organizational learning (lessons learned –
lack of iterative culture)
 Satisfaction with status quo
 Over-focus on tactical, isolated solutions rather
than a strategic solution
 Trying to do everything at once – over ambitious
Source: William L Cunningham

REASONS FOR FAILURE OF
ORGANIZATIONAL CHANGE INITIATIVES
 No accountability; lack of clear ownership
 Tools unable to support processes
 People not skilled enough to support
processes
 No structured Project Management
Source: William L Cunningham

RESISTANCE TO CHANGE
 20-50-30 rule:
 20% of the people in an organization will embrace
change and welcome it
 50% are ambivalent
 30% are resistant and may sabotage or undermine the
change process
 Nearly 80% of an organization’s staff will need to
be convinced that the change is a good one and
worth the stress involved in making it.

SOURCES OF RESISTANCE TO CHANGE

OVERCOMING RESISTANCE TO CHANGE
 Encourage active participation in the
change process.
 Provide education and communication
about the change process.
 Facilitate the change process by making
only necessary changes, announcing
changes in advance, and allowing time to
adapt to change.

Do you have an army of
sleepwalkers?
Source: Jack Smalley / 2013
The Opposite of Employee Engagement
Employees who don’t leave –
the under-performing and disengaged
The “quit-and- stay”
phenomenon
There are 9-to-5er’s who
show up to work everyday
but who have “checked
out” mentally.
TODAY’s CHANGE LEADERS CHALLENGE

$300
Source: Jack Smalley / June 19 2013
Employee disengagement
costs businesses
billionin lost productivity every
year.
Are your profits
melting away,
employee after
employee?
Over 13 million
employees & over
32,000 business
units surveyed show
of employees
in most companies
are not engaged in
their work.
Customer retention vs.
employee retention
67%
TODAY’s CHANGE LEADERS CHALLENGE

LEADING THE PROCESSES OF ORGANIZATIONAL CHANGE
 Change Leader
 tries to change the behavior of another person or
social system.

LEWIN’S THREE PHASES OF CHANGE

LEADING CHANGE STRATEGIES

LEADING THE PROCESSES OF ORGANIZATIONAL CHANGE
 Checkpoints for Successful Change
 Benefit—make sure people involved see a clear
advantage in the change.
 Compatibility—keep the change as close as possible
to existing values and experiences.
 Simplicity—make the change as easy as possible to
understand and use.
 Triability—allow people to try the change step-by-
step, making adjustments as they go.
 Change leader's task:
 create a felt need for change

LEADING ORGANIZATIONAL CHANGE
 Establish a Sense of Urgency
 Form a Powerful Guiding Coalition
 Develop a Compelling Vision and Strategy
 Communicate Widely
 Empower Others to Act on the Vision
 Generate Short-term Wins
 Consolidate Gains and Create Greater
Change
 Institutionalize Changes in the Organizational
Culture

KOTTER’S EIGHT STEPS FOR LEADING
ORGANIZATIONAL CHANGE
Create and implement a communication strategy
that consistently communicates the new vision and
strategic plan
4) Communicate the change-
vision
Create a vision and strategic plan to guide the
change process
3) Develop a vision and
strategy
Create a cross-functional, cross-level group of
people with enough power to lead the change
2) Create the guiding
coalition
Unfreeze the organization by creating a compelling
reason for why change is needed
1) Establish a sense of
urgency
DescriptionStep
28

KOTTER’S EIGHT STEPS FOR LEADING
ORGANIZATIONAL CHANGE
Reinforce the changes by highlighting connections
between new behaviors and processes and
organizational success
8) Anchor new approaches in
the culture
The guiding coalition uses credibility from short-
terms wins to create change. Additional people are
brought into the change process as change
cascades throughout the organization
7) Consolidate gains and
produce more change
Plan for and create short-term “wins” or
improvements
6) Generate short-term wins
Eliminate barriers to change, use target elements
of change to transform the organization
5) Empower broad-based
action
DescriptionStep
29

PT POS INDONESIA CASE
f r o m s l o w s n a i l s t o f l y i n g h i g h p i g e o n s
POS INDONESIA
REVOLUTION
towards a trusted network company
130

POS INDONESIA PAST HISTORY
Pos Indonesia Vicious Circle
Poor Financial
Performance
Low Investment
Low Quality
Low Mail Volume
1-31

1-32

1-33

POS INDONESIA
TRANSFORMATION PROGRAM
1-34

2016
2013-2014
2009-
2012
Value Creation
Revitalitation
2015
IPO
Develop new business line
Grow in new products
and services
Expand into new
Segments and
businesses
35

1-36

37

Internet
Modem
CDMA-GPRS
eMobile Pos
38

ICT READINESS
LAN Post Office
BTNBMI
Telecom
municat
ion
provider
Multi
Finance
Credit Card
Electrici
ty/
Water
Switching
Engine
Host Gateway
Provider
Data Center
Switching
Engine
Host -Posindo
Taxes
BILLER
Data
Reconcile
&
settlement
CitIbank
VSAT
MPLS
Radio Link
Post
Offices
Agent
GPRS/3G
• Inhouse development :
 Desktop based
 Web based
 Mobile /smartphone
based
• Billers connection alternatives
:
 Data collocation
 Host to Host through
switchers
 Direct Host to Host
• International standard
application:
• SAP FICA (Giro, Fund
Distribution)
• IFS (International
Financial Services –
UPU)
• Western Union Host to
Host
• Eurogiro Money Transfer
(on progress)

Kantor Pos Pemeriksa
Kantor Pos Cabang
Ruang Vestibule/Front Office

V.S
REVOLUTIONARY MOVEMENT
Business Infrastructure
Financial Performance Financial Performance
Business Infrastructure
Revolutionary movement of the company has change Financial Performance, business
infrastructure, ICT Infrastructure, Organizational Structure, and Operational & Accounting
System, etc
1-41

All employees and
management are having the
same mentality and behavior
to treat the business of the
company as their own, so they
will work sincerely to achieve
the objective of the company.
All employees and management
are having the same mentality
and behavior to be innovative in
creating new businesses, and
to have courage to face risk and
uncertainty, in the environmental
change for the purpose of
achieving the stable profit and
growth.
Transformational leader is a
leader who is able to anticipate
changes of business and
economic environment,
internalize it into the
management system and
implement it through the
change management. Three
pilars of leadership principle,
vision, values and courage,
must be adhered to
transformational leader.
Leadership, Entrepreneurship Spirit, and sense of belonging are
strategically important in building organizational behavior in order to
achieve transformation objectives
42

CORPORATE CULTURE
Pos Indonesia efforts to build strength corporate value​​ within the whole
human resources.
To be the leading network company in Indonesia by 2016 through the provision of reliable mail, parcels,
logistics, retail, and property services and trusted financial services.
a. We are committed to provide our customers with an efficient and on-time delivery.
b. We are committed to provide our employees a safe and enjoyable working environment.
c. We are committed to provide our shareholders with the best returns and continued growth.
d. We are committed to provide a positive contribution to our communities.
e. We are committed to behave in a transparent and trustworthy manner to all of our stakeholders.
Strategic tools have been interprated into vision & mission and corporate
culture, and followed by strategic mapping and programs
43

PSO Mail Warehousing REMITTANCE
ASSET
MANAGEMEN
T
E-COMMERCE NETWORKING
PARCEL
Commercial
Mail
AdMail
Freight
Forwarding
Regulated
Agent
Transportation
POSPAY
BANK
CHANNELIN
G
FUND
DISTRIBUTIO
N
HOSPITALITYPOST SHOP INTERNET
CONTENT
Pos Market
Chain (Rural
Logistics)
Logistics Post Co Bhakti
Wasantara Net Co
Postal Courier Postal Financial
Services
Retail Post Property Post
SCM
Consulting

Strategic priorities and strategic inisiatives have been difined for each business and
supporting function, to run revitalisation and transformation programs

URAIAN
T A H U N
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Pendapatan 1.254.529 1.410.204 1.396.481 1.665.380 1.803.265 2.325.843 2.487.797 2.678.421 3.078.786 3.403.953
Biaya 1.251.750 1.645.664 1.541.507 1.796.973 1.826.937 2.396.592 2.389.531 2.633.399 2.922.318 3.191.621
Laba/Rugi 2.779 (235.460) (145.027) (131.593) (23.672) (70.749) 98.266 45.022 156.468 212.332
Profit Margin 0,22 (16,70) (10,39) (7,90) (1,31) (3,04) 3,95 1,68 5,08 5.33
0.22
(16.70)
(10.39)
(7.90)
(1.31) (3.04)
3.95
1.68
5.08 5.33
(20.00)
(15.00)
(10.00)
(5.00)
0.00
5.00
10.00
(500,000)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Kinerja PT POS INDONESIA
Pendapatan Biaya Laba/Rugi Profit Margin
1-46

TERIMAKASIH