Preparing our future leaders, an insight from Assessment ... - ACSG
Preparing our future leaders, an insight from Assessment ... - ACSG
Preparing our future leaders, an insight from Assessment ... - ACSG
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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