Finding The Best Leaders - Assessment · PDF fileFinding The Best Leaders : Best Practice Assessment Centres of . ... and also assessment center report. ... −Assessor Training

Finding The Best Leaders : Best Practice Assessment Centres of

C-Level Executives in an Indonesian State – Woned Company

Sidharta Tedja is a consultant of SHL Indonesia. He is responsible to design and implement assessment center. He is also responsible to train the assessors, quality check of assessment process, and also assessment center report. He is a profesional psychologist, trained as a user of OPQ (certified by SHL Hongkong) and certified assessor by HRAS Telkom and BPI. Sidharta graduated from Faculty of Psychology, Maranatha Christian University,Bandung.

Finding The Best Leaders : Best Practice Assessment Centres of

C-Level Executives in an Indonesian State – Woned Company Sidharta Tedja

SHL Indonesia

© 2016 CEB. All rights reserved Version: 1.1 Last modified: 21 10 2016

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Finding the Best Leaders in Indonesian State-Owned Enterprises

Best Practices in Assessment Centers for C Level Executives of Indonesian State-Owned Enterprises

40th International Congress on Assessment Center


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Agenda

Indonesian SOE context & Challenges

Assessment Challenges

Indonesian SOE Leader challenges

Case study: Picking the best of the best

Competencies & Personal & Leadership style

Key take aways:


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Indonesian SOEs Context


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Revenue: 1997 trillion IDR

Total Profit: 158 trillion IDR

Total Asset: 4586 trillion IDR

Total SOE: 119

SOEs with gov owning minority shares: 24

Out of the top ten biggest capitalization in the Indonesian Stock Exchange market, five are SOEs.

Source: Ministry of SOE Indonesia, Indonesia investment

Indonesian State-Owned Enterprises


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Various Industries: − Water, waste & recycle management

− Forestry, fishery, agrobusiness

− Manufacture

− ICT

− Financial service

− Trading

− Professional service

− Transportation & Logistic

− Hotel & Restaurant

− Mining

− Oil & Gas

− Energy

− Construction

− Real estate

Differences in performance and issues faced

Issue : To be the top Bank in ASEAN region by 2020

Total Assets: 910.063.bil IDR

Number of employees: 36.737

Current issue: Merger

Total Asset: 84.435.bil IDR

Number of employees: 1477

(Source: Annual Report)

Indonesian State-Owned Enterprises


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SOE Ministry role:

− To manage state owned assets through SOEs.

SOE Ministry vision:

− To professionally develop SOEs in order to increase SOE value.

SOE Ministry mission:

− To establish modern organisations in accordance with good governance.

− To increase SOE’s competitiveness in national, regional and international level.

− To increase SOE’s contribution to the national economy.

Indonesia’s Ministry of SOEs


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For SOEs where the majority stakes are owned by the government, the Ministry could appoint the SOE’s director.

Appointment of SOE directors is regulated by Ministry regulation which states that director level candidates must pass a fit and proper test which uses assessment center methodologies.

Indonesia’s Ministry of SOE”s Role on SOE leadership Selection


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The use of assessment center methods includes:

− Job analysis

− Behavioral classification

− Assessment techniques

− Multiple assessment simulations

− Multiple assessors

− Assessor Training

− Recording behavior

− Reports and data integration

Personality test result

Two competency sets – Global and Domestic (could be assessed for both or either one)

Standardized report format and rating criteria

Multiple consultant

Assessment Requirements


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Operational assessment issues: − Variations in the number of participants. − Ensuring the same assessment standards.

Vast organisational differences − Organisation issues. − Industry challenges. − Company values.

Same type of leader? Other criterias might need to be considered


Information on leadership style could be the key deciding factors


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Indonesia’s SOE Leadership Challenges

SOE should be viewed more than just a business to gain profit, but also for its contribution to creating societal values.

A very clear vision should connect all relevant levels and aspects of government strategies and other possible societal outcomes.

SOEs and also their leaders have to consider multiple stake holders. Maintaining internal – external balance by not only ensuring sound internal management, but also leveraging external influences by co-creating value with other stakeholders.

(Source: PwC, 2015)


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Global Competencies set

Integrity

Building Business

Partnership

Global Business Savvy

Driving Execution

Customer Orientation

Strategic Orientation

Visionary Leadership

Change Leadership

Job Motivation

Empowering

Managing Diversity

Intercultural Empathy

SOE Director Competency List

Domestic Competencies set

Integrity

Enthusiastic

Innovation & Creativity

Building Business Partnerships

Business Acumen

Customer Orientation

Strategic Thinking

Driving Execution

Visionary Leadership

Change Leadership

Aligning Performance for

Success

Empowering

Key concepts Strategic Visionary Change & Innovate Execute Develop/empower Partnership Global Business Diversity

Presenter

Presentation Notes

Key words dari hal2 inti di kompetensi direktor sehingga bisa dikaitkan ke network leader. Issue ceb juga bisa jadi validating juga dari pwc misalnya.


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Other Challenges: The Organizational Enviroment has Changed


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Employees’ Work is More Interconnected


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Senior Leader Challenges


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CEB Leadership Model


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Case Study : Picking the Best of the Best

Assessment for CEO level candidates

Assesses are current BOD (7 pax) of blue chip State-Owned Enterprise.

Assessment Result ( based on competencies rating) − Six candiates are recommended

to be the next CEO. − One candidate is recommended

with some development notes. − How do you choose one out of six

candidates?

Presenter

Presentation Notes

Masukkin juga data blue chip vs non blue chip. Bagian soal solusi ditambahkan lebih banyak, mungkin 1/3 misalnya.


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Best Practice


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Gather information on the company’s business context and its strategic objective. − Analyzing business information such as

company’s annual report or other publicly avaible data.

− Visionary interview − Information gathered through the

assessment’s commisioning manager.

Summarize key critical business requirements of their leaders.

Interpreting Assessment Results in Business Context


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Relating the company’s strategic context with information from the assessment results.

What would be the impact of the candidate’s strength, development areas, leadership style to the company?

− Which candidate would provide strong leadership during the company’s changes?

− Which candidate would ensure execution of complex strategy?

− Would the candidate be comfortable in taking hard, unpopular decision?

Understanding Assessment Results in Business Context


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Other aspects of personality which are not covered by competencies but relevant to performance may need to be considered, especially in selection processes with limited number of candidates.

Information could be gathered through personality questionnaire (especially if comfirmed through observation and interview).

Other models or HR concept

(Leadership, HiPo) might provide usefull information.

Discuss Additional Key Information


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A dashboard or other format of very brief summarization of results would be useful, especially when decision makers have to choose between short listed candidates.

Brief Executive Summary

Mr. A Mr. B Mr. C

Com

pe-

tenc

ies

(tota

l) Above requirement 9 9 9 Meet requirement 3 2 2 Below requirement 0 1 1

Sum

mar

y Strength

- Broad consideration and strategic perspective.

- Finding unique new business opportunities.

- Business acumen

- Strong strategic perspective, define clear vision.

- Strongly oriented to achieve target and execute strategy.

- Innovative on problem solving and finding new business opportunities.

- Couragesly pushing for changes, even if he have to take unpopular decision

Dev area

- Careful on deliberation, at times indecisive.

- Less likely to consider interpersonal relation or subordinate concern

- Take more time and effort to lobbying others.

- Less concern to develop star performer.

Presenter

Presentation Notes

Ganti dengan tabel bila memungkinkan


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Standardisation of assessor skills is critical, especially for assessments with a large number of participants.

Involve only competent and experienced assessor.

Ensure that assessors understand the company’s business contex, which would then help the Competency Based Interview process.

Ensure quality by monitoring the assessment process and report. Feedback to assessors would also ensure the quality of results.

Assessor Briefing & Training


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Provide value by linking the the assessment results with possible impact towards the company’s overall strategic plan.

Rich insight could be achieved through qualitative analyses based on information from observation, interview and personality questionnaire. This insight may be critical in helping decision makers to select the next leader.

Consider of applying latest research based leadership or other talent model to provide critical insight, both in shaping the selection criteria and/or understanding the impact of your talent on the company.

Ensure standardisation of assessor’s skills and knowledge.

Key Take aways


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Thank You

Sidharta Tedja Senior Consultant, SHL Indonesia 62215154131 [email protected]

Documents

Finding The Best Leaders - Assessment · PDF fileFinding The Best Leaders : Best Practice Assessment Centres of . ... and also assessment center report. ... −Assessor Training