TRANSFORMATIVE LEADERSHIP

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TRANSFORMATIVE LEADERSHIP

• My Personal Experience
• Manila, 8 November, 2001

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Background

• Rajawali Citra Televisi Indonesia (RCTI)
• Established in 1989, RCTI is Indonesias 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.

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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.

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The Challenges

• 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.
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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
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Establishing a Great Enough Sense of Urgency

• Our first step was to consolidate the business
  and re-organise 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.

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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 companys
  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.

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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 cant 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.

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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.

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Empowering Others to Act on the Vision

• 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.
• No organization has the momentum, power, or time
  to get rid of all obstacles. But the big ones
  must be confronted and removed.

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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.

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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 companys
  culture, new approaches are fragile and subject
  to regression.
• Renewal efforts take not months but years

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Institutionalizing New Approaches

• Two factors in institutionalizing change in
  corporate culture
• A conscious attempt to show people how the new
  approaches, behaviors and attitudes have helped
  improve performance.
• 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 is
  removed.

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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.

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Programming Content

• Regular Programs ? Programming Division
• News Current Affairs ? News Division.

Marketability vs Idealism
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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.

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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
  talk-shows that displays 2 different
  perspectives, men and women. Example Angin Malam
  (Late Night Show).

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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.

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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.

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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.

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Thank You