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C-Level Executives Profile<br />

in Indonesia:<br />

What’s Hot <strong>an</strong>d What’s Not?<br />

A study <strong>from</strong> 500+ Indonesi<strong>an</strong> C-Level executives <strong>Assessment</strong><br />

Center results<br />

Presented By:<br />

Meitri<strong>an</strong>i Di<strong>an</strong> Utami<br />

Head of <strong>Assessment</strong> Center<br />

PT Daya Dimensi Indonesia


Agenda<br />

Background: About Indonesia<br />

Demographics of <strong>Assessment</strong> Center Methods<br />

Indonesia C-Level Profile Highlights:<br />

Study of 500+ <strong>Assessment</strong> Center Results<br />

Key Insights & Lessons Learned


Background<br />

• Indonesia : country with largest population in South East Asia<br />

- 240 million people<br />

• The capital City: Jakarta – 10 million people<br />

• Multi-ethnic, religion <strong>an</strong>d l<strong>an</strong>guage<br />

• Jakarta is the center of business, m<strong>an</strong>y multinational<br />

comp<strong>an</strong>ies, local corporations, joint ventures, etc.<br />

• Indonesia has a mixed economy in which both the private<br />

sector <strong>an</strong>d government play signific<strong>an</strong>t roles<br />

• According to World Trade Org<strong>an</strong>ization data, Indonesia was<br />

the 27th biggest exporting country in the world in 2010<br />

• Indonesia continues to post signific<strong>an</strong>t economic growth. As<br />

of July 2012, the country's economy baseline outlook for<br />

growth is expected to be 6 percent in 2012 <strong>an</strong>d increase to<br />

6.4 percent in 2013 (The World B<strong>an</strong>k)


Background<br />

continued<br />

Economic<br />

Situation<br />

• Economic Growth: 6.23 - 6.5% (2012 data)<br />

• Inflation rate: 4.9 – 6.2% (yoy 2012 data average)<br />

• Poverty Headcount Ratio: 12.5% (2011 data)<br />

• Indonesia is in Group 5 within the G 20 countries along with nations such as: China, Jap<strong>an</strong><br />

<strong>an</strong>d South Korea<br />

Political<br />

Situation<br />

• Tr<strong>an</strong>sparency has grown over the years into something more imperative in every aspect of<br />

society. The ch<strong>an</strong>ging political situation has enc<strong>our</strong>ages hum<strong>an</strong> res<strong>our</strong>ces m<strong>an</strong>agers <strong>an</strong>d<br />

practitioners in m<strong>an</strong>y org<strong>an</strong>izations to develop <strong>an</strong>d implement effective ways to assess<br />

<strong>an</strong>d portray employees potential.<br />

• The <strong>Assessment</strong> Center is seen as a tr<strong>an</strong>sparent <strong>an</strong>d appropriate tool suitable to the<br />

prevailing needs (measuring tool).<br />

(Vina G. Pendit, <strong>Assessment</strong> Center Adaptation <strong>an</strong>d Implementation in Indonesia, 2011)


Background<br />

continued<br />

<strong>Assessment</strong> Center Method J<strong>our</strong>ney in Indonesia…<br />

Year<br />

Event Descriptions<br />

1988 First <strong>Assessment</strong> Center (AC) Implementation in Indonesia: Largest State-Owned<br />

Telecommunication Comp<strong>an</strong>y: PT TELKOM<br />

1997 – 2000+ AC implementation in various Indonesia corporations:<br />

- Large State-Owned Postal Comp<strong>an</strong>y in Indonesia<br />

- Largest Indonesi<strong>an</strong> Commercial B<strong>an</strong>k<br />

- Largest Private-Owned Holding Corporations (with 77 subsidiaries)<br />

2000+ There is growing need for <strong>an</strong> accurate tools in evaluating Strategic Leader skills <strong>an</strong>d abilities<br />

as democracy <strong>an</strong>d tr<strong>an</strong>sparency replaces old school boy’s network as selection method<br />

2003 – Present AC in selecting government officials:<br />

- Judicial commission Republic of Indonesia<br />

- Corruption Eradication Commission Republic of Indonesia<br />

- University of Indonesia Rector selection<br />

2003 Establishment of Indonesi<strong>an</strong> <strong>Assessment</strong> Center Code of Conduct Task Force<br />

2004 There are more th<strong>an</strong> 8 (eight) <strong>Assessment</strong> Center Providers in Indonesia<br />

2005 Launching of Indonesi<strong>an</strong> <strong>Assessment</strong> Center Code of Conduct<br />

2012 SOE Ministry Official Regulation on applying <strong>Assessment</strong> Center methodology as one of Fit<br />

& Proper Test for selecting SOE Directors


Profile<br />

• 558 C-Level Executives<br />

• 55 Org<strong>an</strong>izations (Large State-Owned <strong>an</strong>d Private-Owned<br />

Comp<strong>an</strong>ies) ; Over 3,000 employees, assets of over USD<br />

100 Million<br />

Background: About Indonesia<br />

Demographics of <strong>Assessment</strong> Center Methods<br />

Indonesia C-Level Profile Highlights:<br />

Study of 500+ <strong>Assessment</strong> Center Results<br />

Key Insights & Lessons Learned<br />

<strong>Assessment</strong> Center Mech<strong>an</strong>ism<br />

• Particip<strong>an</strong>ts played a role as Hypothetical Strategic Leader (C-Suite) in a global comp<strong>an</strong>y. They<br />

engaged in “a day in a life” simulation of C-Level challenges<br />

• Rating system:<br />

– 1 = Need signific<strong>an</strong>t improvement<br />

– 2 = Need some improvement<br />

– 3 = Proficient / Effective<br />

– 4 = Above level required<br />

– 5 = Signific<strong>an</strong>tly above level required<br />

(Rating 4 <strong>an</strong>d 5 Strength )<br />

Study Method<br />

• Data is <strong>from</strong> assessment center results of C-Level executives during<br />

last 2 (two) years – [2011 – 2012]<br />

• Analysis are based on similarities of assessment center method <strong>an</strong>d<br />

design used in evaluating the competencies.<br />

• Analysis using average me<strong>an</strong> rating


INTRAPERSONAL SKILLS:<br />

• Driving for Result<br />

Strategic<br />

Leader<br />

Competency<br />

Profile<br />

LEADERSHIP SKILLS:<br />

• Ch<strong>an</strong>ge Leadership<br />

• Coaching <strong>an</strong>d Developing Others<br />

• Selling the Vision<br />

INTERPERSONAL SKILLS:<br />

• Building Trust<br />

• Developing Strategic Relationships<br />

FOCUSING ON RESULTS (BUSINESS) SKILLS:<br />

• Customer Orientation<br />

• Entrepreneurship<br />

• Commercial Acumen<br />

• Establishing Strategic Direction


Profile of Indonesi<strong>an</strong><br />

Strategic Leaders<br />

(C-Level Executives) – Demographics<br />

Background: About Indonesia<br />

Demographics of <strong>Assessment</strong> Center Methods<br />

Indonesia C-Level Profile Highlights:<br />

Study of 500+ <strong>Assessment</strong> Center Results<br />

Key Insights & Lessons Learned<br />

Telecommunication<br />

Trade & Investment<br />

Real-Estate/ Property Developer<br />

4%<br />

3%<br />

5%<br />

14%<br />

Mining, Oil & Gas<br />

18%<br />

Government, Education & NGO<br />

1%<br />

86%<br />

B<strong>an</strong>king & Fin<strong>an</strong>cial Services<br />

18%<br />

Consumer Goods<br />

3%<br />

Male<br />

Female<br />

M<strong>an</strong>ufacturing<br />

36%<br />

Infrastructures, Utilities & Tr<strong>an</strong>sportation<br />

8%<br />

Agriculture<br />

5%<br />

0% 5% 10% 15% 20% 25% 30% 35% 40%<br />

N = 558


Profile of Indonesi<strong>an</strong><br />

Strategic Leaders<br />

(C-Level Executives) – Demographics<br />

Background: About Indonesia<br />

Demographics of <strong>Assessment</strong> Center Methods<br />

Indonesia C-Level Profile Highlights:<br />

Study of 500+ <strong>Assessment</strong> Center Results<br />

Key Insights & Lessons Learned<br />

Doctorate<br />

3%<br />

Diploma<br />

1%<br />

Above 50<br />

41<br />

194<br />

Bachelors<br />

40%<br />

45-50<br />

38<br />

146<br />

Masters<br />

56%<br />

40-45<br />

34<br />

68<br />

N = 558<br />

30-39<br />

Below 30<br />

17<br />

1<br />

SOE = 426<br />

0<br />

POE = 132<br />

0<br />

0 50 100 150 200


5.00<br />

4.50<br />

4.00<br />

Profile of Indonesi<strong>an</strong> Strategic Leaders (C-Level<br />

Executives) assessed against Executives competencies<br />

– Based on Competency Average Me<strong>an</strong> Ratings<br />

3.50<br />

3.00<br />

2.50<br />

2.00<br />

2.81<br />

2.20<br />

2.30<br />

1.97<br />

2.99<br />

2.62<br />

2.73<br />

2.58<br />

1.84<br />

2.36<br />

1.50<br />

1.00<br />

0.50<br />

0.00<br />

N = 558


C-Level Group Result Cluster/ Domain Analysis<br />

- Based on Competency Average Me<strong>an</strong> Rating<br />

2.81<br />

2.15<br />

• Driving for Result<br />

2.81<br />

• Ch<strong>an</strong>ge Leadership<br />

2.20<br />

• Coaching & Developing Others<br />

2.30<br />

• Selling the Vision 1.97<br />

2.81<br />

2.38<br />

• Building Trust<br />

• Developing Strategic<br />

Relationships<br />

2.99<br />

2.62<br />

• Commercial Acumen<br />

• Customer Orientation<br />

• Entrepreneurship<br />

2.73<br />

2.58<br />

1.84<br />

• Establishing Strategic Direction<br />

2.36


Profile of Indonesi<strong>an</strong> Strategic Leaders assessed against<br />

Executives competencies<br />

– Comparison between 2011 & 2012 C-Level Executives (Average Rating)<br />

3.50<br />

3.00<br />

2.50<br />

2.00<br />

2.81<br />

2.81<br />

2.03<br />

2.26<br />

2.34<br />

2.20<br />

1.98<br />

1.87<br />

2.99<br />

2.98<br />

2.64<br />

2.54<br />

2.76<br />

2.66<br />

2.33<br />

2.63<br />

1.90<br />

1.82<br />

2.28<br />

2.40<br />

1.50<br />

1.00<br />

0.50<br />

0.00<br />

Driving for Results<br />

Ch<strong>an</strong>ge<br />

Leaderships<br />

Coaching & Dev.<br />

Others<br />

Selling The Vision Building Trust Dev. Strategic<br />

Relationships<br />

Commercial<br />

Acumen<br />

Customer<br />

Orientation<br />

Enterpreneurship Establishing Strat.<br />

Direction<br />

N 2011 = 167 N 2012 = 391


Profile of Indonesi<strong>an</strong> Strategic Leaders assessed against<br />

Global Executive competencies<br />

– Comparison between Male & Female C-Level Executives (Average Rating)<br />

2.98 3.00<br />

2.90<br />

2.70<br />

2.82<br />

2.80<br />

2.61<br />

2.74<br />

2.66 2.67<br />

2.63<br />

2.57<br />

2.50<br />

2.30<br />

2.18<br />

2.27<br />

2.27<br />

2.47<br />

2.37<br />

2.36<br />

2.10<br />

1.90<br />

1.93<br />

2.07<br />

1.82<br />

1.94<br />

1.70<br />

N Male = 481 N Female = 77


Profile of Indonesi<strong>an</strong> Strategic Leaders assessed against<br />

Global Executive competencies<br />

– Comparison between Male & Female C-Level Executives (Average Rating)<br />

3.00<br />

2.50<br />

2.46<br />

2.51<br />

Overall<br />

Competency<br />

Average Rating<br />

Overall<br />

Competency<br />

Average Rating<br />

2.00<br />

Male<br />

N Male = 481 N Female = 77<br />

Female


Profile of Indonesi<strong>an</strong> Strategic Leaders assessed against<br />

Executives competencies<br />

– Comparison between SOE vs POE C-Level Executives (Average Rating)<br />

3.50<br />

3.00<br />

2.50<br />

2.00<br />

2.82<br />

2.79<br />

2.22<br />

2.12<br />

2.31<br />

2.26<br />

1.96 1.94<br />

2.98<br />

2.99<br />

2.62<br />

2.61<br />

2.73<br />

2.76<br />

2.60<br />

2.60<br />

1.78<br />

2.03<br />

2.37<br />

2.37<br />

1.50<br />

1.00<br />

0.50<br />

0.00<br />

Driving for Results<br />

Ch<strong>an</strong>ge<br />

Leaderships<br />

Coaching & Dev.<br />

Others<br />

Selling The Vision Building Trust Developing Strat.<br />

Relationships<br />

Commercial<br />

Acumen<br />

Customer<br />

Orientation<br />

Enterpreneurship Establishing Strat.<br />

direction<br />

N SOE = 426 N POE = 132


3.00<br />

2.50<br />

2.00<br />

Profile of Indonesi<strong>an</strong> Strategic Leaders assessed against<br />

Global Executive competencies<br />

– Comparison between Industries (Average Rating)<br />

2.41 2.53 2.42<br />

2.29<br />

2.63<br />

2.25<br />

2.42<br />

2.73<br />

2.61<br />

2.68<br />

1.50<br />

1.00<br />

0.50<br />

-<br />

: Industry Average Norm (2.5)<br />

N = 558


Profile of Indonesi<strong>an</strong> Strategic Leaders assessed against<br />

Global Executive competencies<br />

– Comparison between Industries Vs. Indonesia Industry Norm (Average Rating)<br />

120%<br />

100%<br />

80%<br />

96%<br />

101%<br />

97%<br />

91%<br />

105%<br />

90%<br />

97%<br />

109%<br />

104%<br />

107%<br />

60%<br />

40%<br />

20%<br />

0%<br />

Overall<br />

Competency<br />

Average Rating<br />

N = 558


Profile of Indonesi<strong>an</strong> Strategic Leaders assessed against<br />

Global Executive competencies<br />

– Comparison between Industries Vs. Global St<strong>an</strong>dard (Average Rating)<br />

100%<br />

90%<br />

80%<br />

80%<br />

84%<br />

81%<br />

76%<br />

88%<br />

75%<br />

81%<br />

91%<br />

87%<br />

89%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

Overall<br />

Competency<br />

Average Rating<br />

N = 558


Profile of Indonesi<strong>an</strong> Strategic Leaders assessed against<br />

Critical Skills Needed by Leaders in the Future<br />

– Based on Competency Average Ratings<br />

5.00<br />

4.50<br />

4.00<br />

3.50<br />

3.00<br />

2.50<br />

2.00<br />

1.50<br />

1.00<br />

0.50<br />

2.20 2.30<br />

1.95<br />

0.00<br />

Ch<strong>an</strong>ge Leadership Coaching <strong>an</strong>d Developing Others Selling the Vision


Background: About Indonesia<br />

Demographics of <strong>Assessment</strong> Center Methods<br />

Key Insights<br />

Indonesia C-Level Profile Highlights:<br />

Study of 500+ <strong>Assessment</strong> Center Results<br />

Key Insights & Lessons Learned<br />

• Overall, Indonesia C-Level Executives shows that they are still signific<strong>an</strong>tly behind on<br />

Leadership <strong>an</strong>d Business M<strong>an</strong>agement Skills. It is shown by the assessment result as<br />

follow:<br />

Leadership Skills<br />

M<strong>an</strong>aging the Business<br />

Selling the Vision (1.97) Entrepreneurship (1.84)<br />

Ch<strong>an</strong>ge Leadership (2.20) Establishing Strategic Direction (2.36)<br />

Coaching & Developing Others (2.30)<br />

• Overall, Indonesia C-Level Executives shows effective skills in Building Trust (2.99),<br />

Commercial Acumen (2.73) <strong>an</strong>d Driving for Results (2.81) while demonstrate fair skills in<br />

Developing Strategic Relationships (2.62) <strong>an</strong>d Customer Orientation (2.58).<br />

• According to Cluster/ Domain <strong>an</strong>alysis, Indonesia C-Level executives are mostly effective<br />

in Interpersonal <strong>an</strong>d Intrapersonal skills while quite lacking Leadership <strong>an</strong>d M<strong>an</strong>aging the<br />

Business skills.


Key Insights (cont’d)<br />

• Compare to critical skills needed by global <strong>future</strong> <strong>leaders</strong> (according to global forecast study by DDI – 2012),<br />

Indonesia C-Level executives fall short in mostly Leadership skills (Ch<strong>an</strong>ge Leadership <strong>an</strong>d Coaching &<br />

Developing Others), while maintains effectiveness - mostly – in the area of: result orientation (Driving for<br />

Result – 2.81) <strong>an</strong>d interpersonal skills (Building Trust – 2.99; Developing Strategic Relationships – 2.62)<br />

• On average, Female C-Level Executives (77 pax) are slightly better th<strong>an</strong> their male peers in area such as<br />

Leadership <strong>an</strong>d Interaction Skills. Details per below:<br />

Interpersonal skills (Building Trust – 3.00 vs. 2.98; Developing Strategic Relationships -- 2.66 vs. 2.61)<br />

<br />

<br />

Leadership skills (Coaching & Developing Others – 2.47 vs. 2.27; Ch<strong>an</strong>ge Leadership – 2.27 Vs. 2.18 <strong>an</strong>d<br />

Selling the Vision – 2.07 vs. 1.93)<br />

Customer Focus (2.63 vs. 2.57) , <strong>an</strong>d<br />

Entrepreneurship (1.94 vs. 1.82).<br />

• While the male C-Level Executives (481 pax) demonstrate slightly better skills in Strategic Thinking,<br />

Commercial Acumen <strong>an</strong>d Result Orientation. Details per below:<br />

Commercial Acumen (2.74 vs. 2.67)<br />

Establishing Strategic Direction (2.37 vs. 2.36)<br />

• Industry C-Level <strong>leaders</strong> in 3 (three) industry such as: B<strong>an</strong>king & Fin<strong>an</strong>cial Services, Telecommunication &<br />

Real-Estate/ Property Developer demonstrate quite signific<strong>an</strong>t higher m<strong>an</strong>agerial skills th<strong>an</strong> average<br />

Indonesi<strong>an</strong> C-Level <strong>leaders</strong> (5% <strong>an</strong>d above); while the lowest m<strong>an</strong>agerial skills falls into Government,<br />

Education & NGO sector


Meitri<strong>an</strong>i Di<strong>an</strong> Utami.<br />

Office: +62 21 576 4455<br />

meitri<strong>an</strong>i.utami@dayadimensi.co.id<br />

Th<strong>an</strong>k You

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