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C-Level Executives Profile

in Indonesia:

What’s Hot and What’s Not?

A study from 500+ Indonesian C-Level executives Assessment

Center results

Presented By:

Meitriani Dian Utami

Head of Assessment Center

PT Daya Dimensi Indonesia


Agenda

Background: About Indonesia

Demographics of Assessment Center Methods

Indonesia C-Level Profile Highlights:

Study of 500+ Assessment Center Results

Key Insights & Lessons Learned


Background

• Indonesia : country with largest population in South East Asia

- 240 million people

• The capital City: Jakarta – 10 million people

• Multi-ethnic, religion and language

• Jakarta is the center of business, many multinational

companies, local corporations, joint ventures, etc.

• Indonesia has a mixed economy in which both the private

sector and government play significant roles

• According to World Trade Organization data, Indonesia was

the 27th biggest exporting country in the world in 2010

• Indonesia continues to post significant economic growth. As

of July 2012, the country's economy baseline outlook for

growth is expected to be 6 percent in 2012 and increase to

6.4 percent in 2013 (The World Bank)


Background

continued

Economic

Situation

• Economic Growth: 6.23 - 6.5% (2012 data)

• Inflation rate: 4.9 – 6.2% (yoy 2012 data average)

• Poverty Headcount Ratio: 12.5% (2011 data)

• Indonesia is in Group 5 within the G 20 countries along with nations such as: China, Japan

and South Korea

Political

Situation

• Transparency has grown over the years into something more imperative in every aspect of

society. The changing political situation has encourages human resources managers and

practitioners in many organizations to develop and implement effective ways to assess

and portray employees potential.

• The Assessment Center is seen as a transparent and appropriate tool suitable to the

prevailing needs (measuring tool).

(Vina G. Pendit, Assessment Center Adaptation and Implementation in Indonesia, 2011)


Background

continued

Assessment Center Method Journey in Indonesia…

Year

Event Descriptions

1988 First Assessment Center (AC) Implementation in Indonesia: Largest State-Owned

Telecommunication Company: PT TELKOM

1997 – 2000+ AC implementation in various Indonesia corporations:

- Large State-Owned Postal Company in Indonesia

- Largest Indonesian Commercial Bank

- Largest Private-Owned Holding Corporations (with 77 subsidiaries)

2000+ There is growing need for an accurate tools in evaluating Strategic Leader skills and abilities

as democracy and transparency replaces old school boy’s network as selection method

2003 – Present AC in selecting government officials:

- Judicial commission Republic of Indonesia

- Corruption Eradication Commission Republic of Indonesia

- University of Indonesia Rector selection

2003 Establishment of Indonesian Assessment Center Code of Conduct Task Force

2004 There are more than 8 (eight) Assessment Center Providers in Indonesia

2005 Launching of Indonesian Assessment Center Code of Conduct

2012 SOE Ministry Official Regulation on applying Assessment Center methodology as one of Fit

& Proper Test for selecting SOE Directors


Profile

• 558 C-Level Executives

• 55 Organizations (Large State-Owned and Private-Owned

Companies) ; Over 3,000 employees, assets of over USD

100 Million

Background: About Indonesia

Demographics of Assessment Center Methods

Indonesia C-Level Profile Highlights:

Study of 500+ Assessment Center Results

Key Insights & Lessons Learned

Assessment Center Mechanism

• Participants played a role as Hypothetical Strategic Leader (C-Suite) in a global company. They

engaged in “a day in a life” simulation of C-Level challenges

• Rating system:

– 1 = Need significant improvement

– 2 = Need some improvement

– 3 = Proficient / Effective

– 4 = Above level required

– 5 = Significantly above level required

(Rating 4 and 5 Strength )

Study Method

• Data is from assessment center results of C-Level executives during

last 2 (two) years – [2011 – 2012]

• Analysis are based on similarities of assessment center method and

design used in evaluating the competencies.

• Analysis using average mean rating


INTRAPERSONAL SKILLS:

• Driving for Result

Strategic

Leader

Competency

Profile

LEADERSHIP SKILLS:

• Change Leadership

• Coaching and Developing Others

• Selling the Vision

INTERPERSONAL SKILLS:

• Building Trust

• Developing Strategic Relationships

FOCUSING ON RESULTS (BUSINESS) SKILLS:

• Customer Orientation

• Entrepreneurship

• Commercial Acumen

• Establishing Strategic Direction


Profile of Indonesian

Strategic Leaders

(C-Level Executives) – Demographics

Background: About Indonesia

Demographics of Assessment Center Methods

Indonesia C-Level Profile Highlights:

Study of 500+ Assessment Center Results

Key Insights & Lessons Learned

Telecommunication

Trade & Investment

Real-Estate/ Property Developer

4%

3%

5%

14%

Mining, Oil & Gas

18%

Government, Education & NGO

1%

86%

Banking & Financial Services

18%

Consumer Goods

3%

Male

Female

Manufacturing

36%

Infrastructures, Utilities & Transportation

8%

Agriculture

5%

0% 5% 10% 15% 20% 25% 30% 35% 40%

N = 558


Profile of Indonesian

Strategic Leaders

(C-Level Executives) – Demographics

Background: About Indonesia

Demographics of Assessment Center Methods

Indonesia C-Level Profile Highlights:

Study of 500+ Assessment Center Results

Key Insights & Lessons Learned

Doctorate

3%

Diploma

1%

Above 50

41

194

Bachelors

40%

45-50

38

146

Masters

56%

40-45

34

68

N = 558

30-39

Below 30

17

1

SOE = 426

0

POE = 132

0

0 50 100 150 200


5.00

4.50

4.00

Profile of Indonesian Strategic Leaders (C-Level

Executives) assessed against Executives competencies

– Based on Competency Average Mean Ratings

3.50

3.00

2.50

2.00

2.81

2.20

2.30

1.97

2.99

2.62

2.73

2.58

1.84

2.36

1.50

1.00

0.50

0.00

N = 558


C-Level Group Result Cluster/ Domain Analysis

- Based on Competency Average Mean Rating

2.81

2.15

• Driving for Result

2.81

• Change Leadership

2.20

• Coaching & Developing Others

2.30

• Selling the Vision 1.97

2.81

2.38

• Building Trust

• Developing Strategic

Relationships

2.99

2.62

• Commercial Acumen

• Customer Orientation

• Entrepreneurship

2.73

2.58

1.84

• Establishing Strategic Direction

2.36


Profile of Indonesian Strategic Leaders assessed against

Executives competencies

– Comparison between 2011 & 2012 C-Level Executives (Average Rating)

3.50

3.00

2.50

2.00

2.81

2.81

2.03

2.26

2.34

2.20

1.98

1.87

2.99

2.98

2.64

2.54

2.76

2.66

2.33

2.63

1.90

1.82

2.28

2.40

1.50

1.00

0.50

0.00

Driving for Results

Change

Leaderships

Coaching & Dev.

Others

Selling The Vision Building Trust Dev. Strategic

Relationships

Commercial

Acumen

Customer

Orientation

Enterpreneurship Establishing Strat.

Direction

N 2011 = 167 N 2012 = 391


Profile of Indonesian Strategic Leaders assessed against

Global Executive competencies

– Comparison between Male & Female C-Level Executives (Average Rating)

2.98 3.00

2.90

2.70

2.82

2.80

2.61

2.74

2.66 2.67

2.63

2.57

2.50

2.30

2.18

2.27

2.27

2.47

2.37

2.36

2.10

1.90

1.93

2.07

1.82

1.94

1.70

N Male = 481 N Female = 77


Profile of Indonesian Strategic Leaders assessed against

Global Executive competencies

– Comparison between Male & Female C-Level Executives (Average Rating)

3.00

2.50

2.46

2.51

Overall

Competency

Average Rating

Overall

Competency

Average Rating

2.00

Male

N Male = 481 N Female = 77

Female


Profile of Indonesian Strategic Leaders assessed against

Executives competencies

– Comparison between SOE vs POE C-Level Executives (Average Rating)

3.50

3.00

2.50

2.00

2.82

2.79

2.22

2.12

2.31

2.26

1.96 1.94

2.98

2.99

2.62

2.61

2.73

2.76

2.60

2.60

1.78

2.03

2.37

2.37

1.50

1.00

0.50

0.00

Driving for Results

Change

Leaderships

Coaching & Dev.

Others

Selling The Vision Building Trust Developing Strat.

Relationships

Commercial

Acumen

Customer

Orientation

Enterpreneurship Establishing Strat.

direction

N SOE = 426 N POE = 132


3.00

2.50

2.00

Profile of Indonesian Strategic Leaders assessed against

Global Executive competencies

– Comparison between Industries (Average Rating)

2.41 2.53 2.42

2.29

2.63

2.25

2.42

2.73

2.61

2.68

1.50

1.00

0.50

-

: Industry Average Norm (2.5)

N = 558


Profile of Indonesian Strategic Leaders assessed against

Global Executive competencies

– Comparison between Industries Vs. Indonesia Industry Norm (Average Rating)

120%

100%

80%

96%

101%

97%

91%

105%

90%

97%

109%

104%

107%

60%

40%

20%

0%

Overall

Competency

Average Rating

N = 558


Profile of Indonesian Strategic Leaders assessed against

Global Executive competencies

– Comparison between Industries Vs. Global Standard (Average Rating)

100%

90%

80%

80%

84%

81%

76%

88%

75%

81%

91%

87%

89%

70%

60%

50%

40%

30%

20%

10%

0%

Overall

Competency

Average Rating

N = 558


Profile of Indonesian Strategic Leaders assessed against

Critical Skills Needed by Leaders in the Future

– Based on Competency Average Ratings

5.00

4.50

4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

2.20 2.30

1.95

0.00

Change Leadership Coaching and Developing Others Selling the Vision


Background: About Indonesia

Demographics of Assessment Center Methods

Key Insights

Indonesia C-Level Profile Highlights:

Study of 500+ Assessment Center Results

Key Insights & Lessons Learned

• Overall, Indonesia C-Level Executives shows that they are still significantly behind on

Leadership and Business Management Skills. It is shown by the assessment result as

follow:

Leadership Skills

Managing the Business

Selling the Vision (1.97) Entrepreneurship (1.84)

Change Leadership (2.20) Establishing Strategic Direction (2.36)

Coaching & Developing Others (2.30)

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

Commercial Acumen (2.73) and Driving for Results (2.81) while demonstrate fair skills in

Developing Strategic Relationships (2.62) and Customer Orientation (2.58).

• According to Cluster/ Domain analysis, Indonesia C-Level executives are mostly effective

in Interpersonal and Intrapersonal skills while quite lacking Leadership and Managing the

Business skills.


Key Insights (cont’d)

• Compare to critical skills needed by global future leaders (according to global forecast study by DDI – 2012),

Indonesia C-Level executives fall short in mostly Leadership skills (Change Leadership and Coaching &

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

Result – 2.81) and interpersonal skills (Building Trust – 2.99; Developing Strategic Relationships – 2.62)

• On average, Female C-Level Executives (77 pax) are slightly better than their male peers in area such as

Leadership and Interaction Skills. Details per below:

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



Leadership skills (Coaching & Developing Others – 2.47 vs. 2.27; Change Leadership – 2.27 Vs. 2.18 and

Selling the Vision – 2.07 vs. 1.93)

Customer Focus (2.63 vs. 2.57) , and

Entrepreneurship (1.94 vs. 1.82).

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

Commercial Acumen and Result Orientation. Details per below:

Commercial Acumen (2.74 vs. 2.67)

Establishing Strategic Direction (2.37 vs. 2.36)

• Industry C-Level leaders in 3 (three) industry such as: Banking & Financial Services, Telecommunication &

Real-Estate/ Property Developer demonstrate quite significant higher managerial skills than average

Indonesian C-Level leaders (5% and above); while the lowest managerial skills falls into Government,

Education & NGO sector


Meitriani Dian Utami.

Office: +62 21 576 4455

meitriani.utami@dayadimensi.co.id

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