1. CHANGE MANAGEMENT
PT KERETA API INDONESIA (Persero)
Clelie Albert
Fath Ade Surya
Iskandar Muda
Ivan Immanuel
Kresna Satria
Obaja Kurniawan
Rikardo Siahaan
2. COMPANY PROFILE
PT KAI is the state owned company which are in the transportation industry,
namely train. PT KAI now serves the wider community both in terms of local
transportation (in a particular city) or inter-city.
VISION
To become the best railways service provider focusing in customer
service and to fulfil stakeholder’s expectations
MISSION
Conducts the business of railways and its supporting business, through its business
practice and best organization models to provide the added value to its stakeholders and
environment based on 4 main pillars : Safety, On Time, Service, and Convenience
3. LOW COST CARRIER AIRLINES LOW CUSTOMER TRUS &
SATISFACTION
External Environment
2005 -2010
•The only one railways provider in Indonesia
• Opportunities to become favorable transportation is high
•Lots of investor willing to invest in railways industry
5. ON TIME PERFORMANCE
90
80
81%
70 78%
60
ARRIVAL ON TIME
50 (PERCENTAGE)
40 32 %
DEPARTURE ON TIME
30 (PERCENTAGE)
31%
20
10
0
2008 2009
180
160
140
120
100
NUMBER
80
60
40
20
0
2005 2006 2007 2008 2009
ACCIDENT NUMBER 102 116 159 147 90
VICTIM NUMBER 36 50 31 45 57
6. Employee’s Education Background
2%
0% 0% 2%
S3/Post Graduate
31% 38% S2/Graduate
S1/Under Graduate
D3/Diploma
SLTA/High School
SLTP/Secondary School
27% SD/Elementary School
Employee's Age Composition
12%
41% 24%
<30
31-40
31-50
23% 51-56
7. Other Condition 2005-2010
•The construction of double-rail in Jabodetabek hasn’t finished
•Just serve Java and Sumatera island
•haven’t met the company’s vision and mission
• No barrier between regulator and operator in
railways industry in Indonesia
9. 8 Stage of Leading Change
Anchoring New Approaches in
The Culture
Consolidating Gains and Producing
More Change
Generating Short Term Wins
Empowering Broad Based Action
Communicating The Change Vision
Developing Vision & Strategy
Creating Guiding Coalition
Establishing a Sense of Urgency
11. 1 2 3 4 5 6 7 8
Establishing Sense of Urgency
Ways to Raise Sense of Urgency Implementation Sample PIC
1. Show the critical condition faced Show the data about the Accident data CEO
to the top management deterioration and shortage On-time
which should be improved performance data
Infrastructure and
facility data
Financial data
2. Set high target that should be Set profit target, On time CEO
achieved productivity target, safety performance
target, and customer increase to 95%
satisfaction target
Accident level
decrease by 70%
3. Stop performace measurements Set the KPI based on Use KPI based Director of
based on functional goal company’s business according to Human
performance Balanced Score Resources
Card
12. 1 2 3 4 5 6 7 8
Establishing Sense of Urgency con’t
Ways to Raise Sense of Urgency Implementation Sample PIC
4. Show customer satisfaction data Use small group to Use Quality Director of
and company’s image to all respond available data Control Circle Marketing
stakeholders (QCQ)
5. Make discussion forum about the Top management should Monthly Coalition
company’s weakness, avoid adorn facilitate monthly discussion forum Team
the news discussion about the
company’s current
condition
6. Inform all employee with Explain about Utilize the CEO and
information about opportunities opportunities in the future monthly Director of
and profit in the future if they on routine discussion discussion forum Human
change Resources
13. 1 2 3 4 5 6 7 8
Creating the Guiding Coalition
STEP CREATING GUIDING COALITION
•Finding right person who have position power,
expertize, credibility, leadership.
•Build trust
•Develop goals
The Parties that should be involved in creating the coalition :
• CEO
• BOD (Board of Director)
• Senior area manager with ability to articulate vision and have experience
and ability to spread change
• Expert, professional and other parties (Dirjen Perhubungan, Employee
Representative)
• Customer Representative
14. 1 2 3 4 5 6 7 8
Developing Vision and Strategy
STILL USING their Vision
VISION : “To become the best railways service provider focusing in customer
service and to fulfil stakeholder’s expectations.”
Strategy
Improvement in 4 pillars : Safety, On Time, Service, and Convenience
15. 1 2 3 4 5 6 7 8
Communicating the Change Vision
Source: Choosing Strategy for Change.
by John Kotter and Leonard A. Schlesinger.
Harvard Business Review 2008
16. 1 2 3 4 5 6 7 8
Empowering Broad-Based Action
GAP : VISION and STRUCTURE
Vision Structure
Focusing on customer service In reality, PT.KAI put its focus on railways
operation
Fulfill the stakeholder’s expectation But, low productivity resulting in high cost.
This is caused by high operational expense
of the company
IMPLEMENTATION
Providing Training Needs
To perform improvement, training is needed.
Synchronizing System with Vision
the role of Human Resource Development which is brave and assertive in
providing leadership needed to change the system to become congruent
with PT.KAI’s company vision.
17. 1 2 3 4 5 6 7 8
Generating Short-Term Win
• Accident rate of train decrease by 70% in 1 year
• Human factor as the main cause of the accident decrease
Generating Short Term Wins
to 10% from 33%
• On Time performance increase to 95% in 1 year
• Employee composition who aged more than 50 decrease by 30%
in 1 year
•Employee who have D3 educational level, increase by 15% in 1 year
•Net Income growth 200% from the previous period in 1 year
•Giving bonus to best employee every month in 1 year ahead
• Customer satisfaction increase to 90% in 1 year
18. 1 2 3 4 5 6 7 8
Generating Short-Term Win
Quick wins are only the beginnings of what it is needed to be done
to achieve long-term change. So put in place a Human Resources
change project in Pt KAI needs quick wins, but not only : the
management will have to build on these first success and improve
continuously its human resources management.
19. 1 2 3 4 5 6 7 8
Consolidating Gains and Producing
more Change
IMPLEMENTATION
• It will be necessary to put in place regular meetings to take stock of the
situation and develop new projects on this basis: on areas which still need to be
changed or on improvement areas identified
• Put in place employees' surveys : launch an employees' survey.
Moreover, the management and change actors will have to come to meet
the employees for informal discussion and interview.
20. 1 2 3 4 5 6 7 8
Anchoring New Approaches in New Culture
NEW CULTURE
“CUSTOMER ORIENTED CULTURE”
Customer satisfaction is the main factor we should
pay attention to
“EMPLOYEE DISCIPLINE CULTURE”
The whole employee obey the rule and also obey to
give maximum service to the customer
