1. Group 1 Case Study : Ignasius Jonan Presenting for: MM MBA UI 2013
Nicholas Donny Fahrul – Pamela Ulung Bakry

2. It means : Getting along with people
I suppose leadership at one time meant muscle…
But today…
It means : Getting along with people

3. 1 2 3 4 Agenda Profile of Ignasius Jonan
Implementation of Leadership & OB concepts 2
Analysis 3
Recommendations & Solutions 4

4. 1 2 3 4 Agenda Profile of Ignasius Jonan
Implementation of Leadership & OB concepts 2
Analysis 3
Recommendations & Solutions 4

5. Ignasius Jonan The mastermind of PT. KAI tremendous business growth
• 1986 :
Airlangga University Faculty of Economics
• 2005 :
- International Relations and Affairs, Fletcher School of Law and Diplomacy, USA - Harvard Law School, Amerika Serikat & Columbia University
Mr. Ignasius Jonan
2001 – 2006 :
Managing Director PT Bahana Pembiayaan Usaha Indonesia
2006 – 2008 :
Citi Group Director
2009 – now :
Managing Director PT KAI

6. Assigned to be the CEO of PT KAI in Feb 2009
Ignasius Jonan
The mastermind of PT. KAI tremendous business growth
Assigned to be the CEO of PT KAI in Feb 2009
At that time , the company has suffered loss
= IDR 83.4 billion
At the end of 2009, PT KAI has reached profit up to
= IDR billion

7. A man with many respect & acknowledgements from others
His leadership has eliminated the feodalism behaviors which is only focus on to please the Boss and has occurred for a long time in the state-owned enterprises. It is a centralistic and manipulative behavior.
Prof. Rhenald Kasali, Ph.D, Great Lecture at FE UI
The hardwork and determination from Jonan and his team, has given the Indonesian people a great hope that we could manage our public transportation wisely to address the social needs.
Najwa Shihab, Editor in Chief Metro TV
Jonan is a Leader 3.0 which is a leader that foster the human spirit of the team. People respect him, not fear him..
Hermawan Kertajaya, CEO and Founder MarkPlus Inc.

8. 1 2 3 4 Agenda Profile of Ignasius Jonan
Implementation of Leadership & OB concepts 2
Analysis 3
Recommendations & Solutions 4

9. Implementation of Leadership & OB concepts
Change  Kotter’s 8 Step to Leading Organizational Change
Culture  Methods to Change Organizational Culture
Leadership  Kouzes & Posner’s 7 Essentials of Encouraging

10. A. Kotter’s Eight Steps for Leading Organizational Change
Establishing the sense of urgency
Forming a powerful guiding coalition
Creating a vision
Communicating the vision
Empowering others to act the vision
Planning for and creating short-term wins
Consolidating improvements and producing more change
Institutionalizing new approaches

11. 1.Establishing the sense of urgency
Service is not for human
PT. Kereta Api Indonesia ( Persero ) menerapkan kebijakan pembatasan 100 %,
sehingga untuk Kereta Api Jarak Jauh dan Sedang, semua penumpang dijamin mendapatkan tenpat duduk sesuai dengan kelasnya. Sehingga meningkatkan kenyamanan penumpang, kereta api yang manusiawi.

12. 1.Establishing the sense of urgency (cont.)
Dangerously Inhumane

13. 2.Forming a powerful guiding coalition
Cooperation with stakeholders
Police Force  security support
BCA, BNI, Bank Mandiri, CIMB  online ticket purchase and payment
BNI  financial support (cash management)
Jokowi  underpass at Bintaro intersection
Indomaret, Alfamart  ticket purchase
XL  Wi-Fi service on train and Free Public Phone at certain stations
kepolisian telah bekerja sama dengan PT Kereta Api Indonesia untuk mengamankan lintasan kereta yang rawan dicuri.

14. 2.Forming a powerful guiding coalition (cont.)
Telkom  technology provider
kepolisian telah bekerja sama dengan PT Kereta Api Indonesia untuk mengamankan lintasan kereta yang rawan dicuri.

15. 2.Forming a powerful guiding coalition (cont.)
Communication with stakeholders
kepolisian telah bekerja sama dengan PT Kereta Api Indonesia untuk mengamankan lintasan kereta yang rawan dicuri.

16. 3.Creating Vision THE DOABLES, NOT THE DREAMS
Freight from 16 million tones per annum in 2008 to 60 million tones per annum in 2020.
(TO DATE 27 million tones)
Commuter service from 400,000 passengers a day in 2008 to 1,500,000 passengers a day in 2020.
(TO DATE 700,000).

17. 3.Creating Vision (cont.)
Service for Human Being
Air-conditioned Economy Class Trains
Waiting Room at
Train Stations

18. 4.Communicating The Vision

19. 4.Communicating The Vision (cont.)
New Symbols, New Spirit
Change Corporate Identity, focus to stakeholder

20. 5.Empowering Others Empowerment means trust
Eliminate barriers to change

21. 5.Empowering Others (cont.)
Personnel Composition
High School Graduates from in 2008 to in 2013
Below High School Graduates from in 2008 to in 2013
University Graduates from 901 in 2008 to in 2013.
Personnel as elements of change to transform the organization

22. 5.Empowering Others (cont.)
Utilizing Information Technology
Personnel as elements of change to transform the organization

23. 6.Planning for and Creating Short-Term Wins
Boarding Pass Policy
100% Occupancy Capacity for All Classes of The Train
No More Standing Ticket
Prohibition of peddlers and smoking onboard the train
Economy-class Train with AC
Call Center 121
Drive Thru Ticket Purchase
Boarding pass policy  not everyone can enter platform area freely, only those holding
tickets entitled to enter the area. It is conducted by PT KAI for
the comfort, orderliness, and safety of the customers.

24. 7.Consolidating and Creating More Changes
“IT IS ALWAYS IMPOSSIBLE UNTIL IT IS DONE” – NELSON MANDELA

25. Depok Baru Station Pondok Ranji Station
BEFORE
AFTER
Pondok Ranji Station

26. New Face of Bogor Station
Stasiun Bogor

27. E-Ticketing

28. 8.Institutionalizing New Approaches
Code of Conduct
Reward and Punishment System
Good Corporate Governance
Highlight connections between new behaviors and processes and organizational success

29. 8.Institutionalizing New Approaches (cont.)
Key Awards after 3 years of transformation
THE BEST BUMN IN PUBLIC SERVICE, 2013, 2012.
THE BEST TRANSFORMATION COMPANY BY SWA, 2013.
THE BEST BUMN IN GCG, 2013.
ONE OF THE MOST FAVORITE COMPANIES BY SPS, 2013, 2012.
THE BEST BUMN, 2012.
THE BEST BUMN IN MANAGEMENT, 2012.
Highlight connections between new behaviors and processes and organizational success

30. B. Changing Organizational Culture
Changing organizational culture involves a teaching process - Edgar Schein

31. Embedding Culture in KAI (1)
Formal statements of organizational philosophy

32. Embedding Culture in KAI (2)
Slogans
“You are our Priority”
You are our customer, whether you are a part of Indonesian railway or not.
Customer should be the priority in achieving prime service.
Collaboration between individuals and among departments is therefore essential to achieve prime service.

33. Embedding Culture in KAI (3)
Explicit rewards
Reward & Punishment System
Top performers will get benefit like promotion, acknowledgement letter, opportunity to study abroad
Low performers will be retrained.
If the performance not increase, will be layed-off

34. Embedding Culture in KAI (4)
Organizational activities, processes, or outcomes leaders attend to
shift the old paradigm:
PRODUCT ORIENTED  CUSTOMER ORIENTED
Integrity is the key
He tolerates the lack of knowledge ; but never tolerates the lack of integrity

35. Embedding Culture in KAI (5)
Deliberate role modeling, training

36. C. Kouzes & Posner’s Leadership Model
Kouzes and Posner research on leadership development considers five practices:
Model the way
Inspire a shared vision
Challenge the process
Enable others to act
Encourage the heart
7 Essentials of Encouraging

37. The Seven Essentials of Encouraging – Kouzes & Posner (2003)
• Set Clear Standards • Expect the Best • Pay Attention • Personalize Recognition • Tell the Story • Celebrate Together, and • Set the Example

38. The Seven Essentials of Encouraging – Set Clear Standards
Leaders are clear about the performance and behavior standards they expect everyone to meet.

39. The Seven Essentials of Encouraging – Expect The Best
Empower people to do the exceptional and meet the toughest challenges.

40. The Seven Essentials of Encouraging – Pay Attention
“Caring By Walking Around” (CBWA)

41. The Seven Essentials of Encouraging – Personalize Recognition
Leaders know what people have contributed … so that person understands the importance of his or her contribution.
Expression of appreciation that comes personally from the leader, not delegated to an assistant or co-workers.
Gave Tag Heuer watch to an employee who turned off electrical substation in Semarang to stop unattended running train.

42. The Seven Essentials of Encouraging – Tell The Story
Stories can give examples of peers who overcame obstacles or achieved success under circumstances that are recognizable to co-workers.

43. The Seven Essentials of Encouraging – Celebrate Together
Celebrate together as a community.
Make people feel like part of something larger, like they all have a stake in a common goal.
Improved teamwork, higher performance.

44. The Seven Essentials of Encouraging – Set The Example
Make leaders believable
“Do What You Say You Will Do.”

45. 1 2 3 4 Agenda Profile of Ignasius Jonan
Implementation of Leadership & OB concept 2
Analysis 3
Recommendations & Solutions 4

46. W SWOT Strength, Weaknesses, Opportunities and Threats (SWOT Analysis)
Education
Professional Qualities
Soft skills
Achievements
Weaknesses
Lack of technical skills
Lack of operational knowledge
Depended on assistance from senior managers at the first start
Micro-managing at the first start
Opportunities
Market opportunities
From product oriented to customer oriented paradigm
Similar customer service culture to banking
To grow from almost zero growth company
Technology and social media
Threats
Rail accidents
Resistance from old corporate culture
Conflict of interest with municipal government
Conflict of interest with other transportation businesses
Inconsistencies in services
Bad habits of customer and society such as damaging the facility, not buying tickets, illegal and dangerous crossings

47. Education Strength - Education
id.linkedin.com/pub/ignasius-jonan/36/3a9/7b4

48. Education Strength – Professional Qualities
id.linkedin.com/pub/ignasius-jonan/36/3a9/7b4

49. Education Strength – Achievements
Marketer of the Year in Transportation - Indonesia Marketer Association – 2013
Honorary Member - Indonesia Marine Corps, Cavalry Regiment
The Best CEO of State Owned Enterprise
Accountant of the Year - Indonesia Association of Accountant
The Golden Action Award - Rakyat Merdeka Post – 2013
The Most Innovative CEO - Gatra Magazine
The CEO of Choice - Swa Magazine
The One of Best CEOs of State-owned Enterprise in Indonesia - BUMN Track and Ministry of State Owned Enterprise
One of the 6 Most Favorite CEOs - Tempo Magazine
Marketer of the Year in Transportation Sector - Indonesia Marketer Association
The One of Best CEOs of State-owned Enterprise in Indonesia - BUMN Track and Ministry of State Owned Enterprise
Indonesian Railways was awarded as
One of the Best SOEs in Transportation - Infobank Magazine
the Most Innovative State-owned Enterprise in Public Service in 2011 and 2012
The Most Innovative State-owned Enterprise in 2012
one of the 5 Most Favorite Companies by Indonesian Printed Press Association in 2012
one of the Most Favorable Patrons in Sports by Ministry of Sports and Youth of Indonesia, 2011
id.linkedin.com/pub/ignasius-jonan/36/3a9/7b4

50. Education Weaknesses Lack of technical skills
Lack of operational knowledge
Depended on assistance from senior managers at the first start
Micro-managing at the first start

51. Education Opportunities – Market Volume
The rail transportation growth is around 15.6% per year.
People transportation is dominated by railway transport as can be seen in the blue color.
Yet the cargo transportation still is dominated by ships.

52. Opportunities – Customer Demands Increase Demands Quality Services
Education
id.linkedin.com/pub/ignasius-jonan/36/3a9/7b4

53. Opportunities – Growing for Losing
Education

54. Education Opportunities – Technology
to help improvement on Customer Service,
Customer Satisfaction and Corporate Image
Education

55. Education Opportunities – Open Market for
Tourism, Commuter Line, and other Services
Education

56. Threats – Rail Accidents
Education

57. Threats – Social & Political
Education

58. Reasons We Choose Jonan As A Leader
Proven Leadership
Numerous innovations to improve PT KAI
Numerous awards
The Best CEO of BUMN, 2013
CEO of Choice, SWA Magazine, 2012
Golden Action Award by Rakyat Merdeka Daily, 2012
Not afraid of being not popular

59. Problem Identifications due to leadership style
The eviction of local street trader seem to be rough and un-compromise.
Hard and distinct leadership which tends to dictator leadership, eventhough only for some aspect.
As the goal to change the mind set of PT KAI to become customer service oriented, other stake holder’s satisfaction seem to be neglected. Especially, low level and local street traders.
No win-win solution is fully executed by PT KAI for local street trader

60. Problem Identifications due to leadership style
Very firm and no compromise (my way or the high way), this can cause:
direct confrontation for example when he wants to clean up the station from peddlers he uses force to destroy their shops
Losing good employee if they do not agree with his way
Hoping to get fast result (“Not everybody can run a marathon”
Egalitarian
The first time which can causes a back fire because he is lacking the technical know how from the senior management. (fortunately he is a fast learner).
Conflicting with his true style where it should be done his way, no compromise, and fast result
CBWA is a micro management style which shows his lack of trust or fear and shows his needs to control
This will create a lot of work load for the management

61. 1 2 3 4 Agenda Profile of Ignasius Jonan
Implementation of Leadership & OB concept 2
Analysis 3
Recommendations & Strategies 4

62. Recommendation & Strategies
A soft and straight approach and finding better solution (win-win soulution) for local street traders should be done until the agreed solution is developed. However, we also aware that this might take time and higher cost, but still always lesser than a cost of human life.
Build a good communication and discussion, or even develop MoU between PT KAI and relevant stakeholders. The purpose is to maintain relationship with stakeholders as well as to understand stakeholder’s expectation