Transcript TRANSFORMATIVE LEADERSHIP

TRANSFORMATIVE
LEADERSHIP
My Personal Experience
Manila, 8 November, 2001
Background
Rajawali Citra Televisi Indonesia (RCTI):
• Established in 1989, RCTI is Indonesia’s first private
terrestrial TV station.
• Connected to the first family.
• Was the number 1 station for 10 years.
• The largest TV network with 47 relay stations across
the country.
• 1200 employees; Approximately 70% had been with
the company for over 7 years.
• The crisis in 1998 caused the station to go in the ‘red’
(US$ 10.9 million).
• A management change in May 1999.
Market Situation
• Highly competitive, especially with 4 new
entrants last October 25, 2001.
• Adex growth estimated at 15%. Growth in
2000 was approximately 40-45%.
• Lack of skilled people.
• Price (bonusing) War.
• A cluttered advertising environment.
• Shareholders’ knowledge & understanding of
the business is minimal.
The Challenges
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Entering RCTI is like entering an English Club.
Never experienced working with a female boss.
A complacent organization.
Staff questioned my capabilities.
Strong image.
How to sustain eroding shares and maintain its
position in the market place.
Steps to Transforming an
Organization
Establishing a Sense of Urgency
Forming a Powerful Guiding Group
Creating a Vision
Communicating the Vision
Empowering Others to Act on the Vision
Planning for and Creating Short-Term Wins
Consolidating Improvements & Producing More Change
Institutionalizing New Ways
Establishing a Great Enough
Sense of Urgency
• Our first step was to consolidate the business and reorganise the company. Our priority was the News
department.
• The renewal target was the entire company hence the
CEO was key.
• Employees were skeptical of the new management. We
had to show immediate results.
• Our greatest difficulty was to drive people out of their
comfort zones. There was no sense of urgency.
 The urgency rate had to be pumped up to a level so
that the transformation process could take place.
Forming a Powerful Guiding
Coalition Group
• A high sense of urgency within managerial ranks helps
enormously in putting a guiding coalition together.
• We needed to get these people together, help them develop a
shared assessment of the company’s problems and
opportunities, and create a minimum level of trust and
communication.
• Off-site retreats, for 2-3 days, are one popular vehicle for
accomplishing this task.
• To speed-up the process we replaced non-productive and
inexperienced managers with qualified managers. 70% of our
managers were replaced within 9 months.
 In a large company the coalition needs to grow from 20-40
range before progress can be made.
Creating a Vision
• To ensure a successful transformation the guiding group with
the BOD developed a picture of the future that is easy to
communicate and appeals to customers, stockholders, and
employees.
• A vision goes beyond numbers. A vision says something that
helps clarify the direction in which an organization need to
move.
• The guiding group were required to develop a clear and
compelling statement of where all of this is leading.
 Rule of Thumb: If you can’t communicate the vision to
someone in 5 minutes and get a reaction that signifies both
understanding and interest, you are not yet done with this
phase of transformation.
Communicating the Vision
• Transformation is impossible unless hundreds or
thousands of people are willing to help.
• Employees will not make sacrifices, even if they are
unhappy with the status quo, unless they believe that
useful change is possible.
• Without credible communication, and a lot of it , the
hearts and minds of the troops are never captured.
 ‘Walk the Talk’ at different levels of the organization.
Work with them and show them what you know.
Empowering Others to Act on
the Vision
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Successful transformations begin to involve large
numbers of people as the process progresses. The more
people involved, the better the outcome.
To some degree, the guiding group/ coalition must
empower others to take action simply by successfully
communicating the new direction.
Renewal also requires the removal of obstacles.
– Organizational Structure.
– Compensation or performance-appraisal systems.
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No organization has the momentum, power, or time
to get rid of all obstacles. But the big ones must be
confronted and removed.
Planning for & Creating
Short-term Wins
• Real transformation takes time, and a renewal effort risks
losing momentum if there are no short-term goals to meet
and celebrate.
• Without short-term wins, too many people give up or actively
join the ranks of those people who have been resisting
change.
 Look for ways to obtain clear performance
improvements, establish goals in the yearly planning
system, achieve the objectives, and reward the people
involved with recognition, promotions, and even money.
Consolidating improvements
and Still Producing More Change
• After working hard, managers may be tempted to
declare victory with the first clear performance
improvement.
• Premature victory celebration kills momentum.
• Until changes sink deeply into a company’s
culture, new approaches are fragile and subject
to regression.
 Renewal efforts take not months but years
Institutionalizing New
Approaches
Two factors in institutionalizing change in corporate
culture:
1. A conscious attempt to show people how the new
approaches, behaviors and attitudes have helped
improve performance.
2. To make sure that the next generation of top
management really does personify the new
approach.
 Until new behaviors are rooted in social norms
and shared values, they are subject to
degradation as soon as the pressure for change
Results
• Net profit in 1999: US$ 580,000
2000: US$ 5.6 million,
after a US$ 1.6 million program write-off over 2
years.
• Settled outstanding debt of US$ 20 million to
foreign major suppliers by end December 2000.
• Simplified the organization by eliminating the 3rd
layer and reducing the number of managers.
• Improved compensation structure & incentive
scheme, including the performance appraisal
system.
• Positioned ourselves as a non-partisan and
independent station.
Programming Content
• Regular Programs  Programming Division
• News & Current Affairs  News Division.
Marketability vs Idealism
Programming Content
• Regular Programming  Audiences
Shares
• News & Current Affairs  Image
- Trust & Credibility comes from the news
programs
- Stations are willing to lose money on this.
News & Current Affairs
• Today the market tends to favour more the negative
as opposed to the positive aspects of women. This is
what sells.
• We can not change overnight but we should
consciously make slow changes. Hence, programs
like Selamat Datang Pagi (a morning show) and
Buletin Siang (Mid-Day News). Including 30% of the
newsbreaks is surrounding and aimed at women.
• The next step was to develop controversial talkshows that displays 2 different perspectives, men and
women. Example: Angin Malam (Late Night Show).
Promotion of Transformative
Leadership
• Invite TV management, including Head of News, to
present a proposal on Transformative Leadership .
Show how they will benefit from the association.
Point out how this will differ them from the ‘crowd’
• Help train the TV journalists on this subject. Offer
yourselves as a resource. Begin with light then move
to hard news.
• Launch the program with a major event.
• To develop TV programs, infotainment style, that
displays/shows transformative leadership in the
market place and how to manage those changes.
Work with content providers. Example: Perempuan
on Metro TV.
Promotion Transformative
Leadership
• To develop supporting programs utilising
available and relevant media mix.
• To conduct seminars on Transformative
Leadership. Insert in news segments.
• Once the management sees the value of
having/ carrying such a program, then they
will increase airtime for this.
Conclusion…
• Women have to work much harder than
men to be accepted. Be ourselves.
• Separate professionalism from
friendship.
• Follow your female instincts when
making the final decision.
• The success could not have been
achieved without the support and
understanding of the CEO.
Thank You