Manage Talent for GrowthCase Study at PT Sierad Produce, Tbk

EMBA Class of PGN, IPMI International Business School, 3 February 2018Prepared by Yunus Triyonggo, PhD.

Yunus Triyonggo

S-1 Teknologi Industri Pertanian IPB

S-2 Magister Management UNDIP

S-3 Sekolah Bisnis IPB

HR Trainee – Manager : PT Indofood Sukses Makmur, Tbk. (9 years)

Personnel & GA Manager : PT HM Sampoerna, Tbk. (1 year)

HRBP : PT Unilever Indonesia, Tbk (8 years)

VP HR : PT Nestle Indonesia (2 years)

Chief of Human Capital Development : PT Sierad Produce, Tbk (until now)

Organisasi:

- Dewan Pakar PMSM 2016-2019

- Pendiri LSP MSDM Indonesia

- Ketua Umum Indonesia Human Resources Institute (IndHRI)

- Wakil Ketua Komtap Standarisasi Kompetensi Ketenagakerjaan Kadin

Hobbies : tenis meja, jogging

Agenda

Poultry business opportunity

Our Story – Sierad Produce

Talent Management at Sierad

4

Poultry business opportunity

0

50

100

150

200

250

300

350

400

450

1960 1970 1980 1990 2000

Mil

lio

ns o

f to

nn

es

Global production of beef, fish, pork and poultry

Poultry is the fastest growing animal protein...

Fish

3.9 x

Change

1960-2009

2.3 xBeef

4.7 x

Pork

9.7 x

Poultry

Source: FAO

7 8

16

28

36

0

10

20

30

40

Indonesia Philipines Thailand Singapore Malaysia

Broiler Consumption (kg/capita/year)

0,3 Bird/Month

OR1 bird /3 months

3 birds /month

Consumption per capita

Consumption per capita

1,6 egg/WEEK

1 egg/DAY

6487 93

304 311

0

100

200

300

400

Singapore Indonesia Thailand China Malaysia

Egg Consumption (egg/capita/year)

Source : BPS

Indonesian should consume more Chicken & Egg

National DOC (Broiler) ProductionIn Mio Birds

National Feed Consumption

DOC & Feed are steadily growing

In Mio Tons

6,50

4,80

2,60

3,70

5,005,75

6,507,20 6,80 7,10 7,20 7,60

8,13 8,13

10,6611,20

12,70

13,80

15,00

0,000

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

717

359 414

650832 885

1027 977

12741120

1250 13001400 1470

1700

20002200

2500

0

500

1000

1500

2000

2500

3000

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

Sierad Produce

We are in the business of providing an essential nutrition for

the development of better generation of Indonesia

Further Processed Foods in the future...

Projection of

Indonesia’s

current state

Source: Marrel Townsend

50 years ago in

USA, whole birds

accounted for 83%

of the value

Today in USA, further

processing accounts

for 60% of the value

Evolution of Foods Industry in the USA

The trend is happening is much shorter period of time in Indonesia

Source: Goldman Sachs

Poultry feed

with

engineered

diet from corn,

soybean,

nutritional

additives

Comes in

mash,

crumble &

pellet

forms

One day

old broiler

and layer

chicks

produced at

breeder

farms and

hatcheries

Broilers are

chicken bred

for meat

production in

commercial

broiler farms

DOC grown to

market weight

and sold as live

birds to

General Trade

or Modern SHs

Broiler

chicken

slaughtered

and

packaged in

modern SHs

Sold as

fresh,

chilled or

frozen

Processed

chicken

produced in

processing

plants

Sold as

packed,

frozen, pre-

cooked or

ready-to-eat

meals

Eggsproduced bylayer

birds in

commerci

al layer

farms

• Broiler feed

• Layer feed

• Other feed

(e.g., Breeder

feed)

• Does not

include

non-

poultry feed

• Broiler DOCs

• Layer DOCs

• Live birds sold

to traditional

market

• Live birds sold

to Modern

slaughter-

houses

• Fresh/froz

en chicken

from SH

• Further

processed

poultry

- Frozen

processed

(e.g.

Nuggets)

- Pre-cooked

- Ready to

eat meals

• Commer

cial eggs

DE

SC

RIP

TIO

N

SLTA CCUI PDY OT R

P

TY

PIC

AL

PR

OD

UC

TS

Source: Company management presentations, Analyst reports (JP Morgan, Maybank, Credit Suisse), Industry practitioner interviews,

Bain experience

Feed DOC BroilersSlaughter-

houseEggs

Further

Processed

Market: Poultry value chain is broken into six key steps

Sierad Produce, Our Stories

Incorporated in6 Sept 1985(as a subsidiary ofPT Anwar Sierad Tbk ,incorporated in 1981)

Further Processed FoodEstablished

Listed in JSX, Dec 27th

1985

1993 1996

1997

2001

2009

JabonSlaughterhouse built

Parent-subsidiaries merger(internal merger)

Retail Food Business

2011

AcquisitionOf BelfoodsIndonesia

Sierad Produce Milestones

July 2014

Acquired by GS Group

Sierad Produce Supply Chain

Free market

Consumer

Super/

hyper market

Free market

Out of Sierad operation

Owned by Sierad

Feedmill

Balaraja, Tangerang Plant & Sidoarjo-East Java Plant

16

Breeding

Sukabumi, Bogor & Lamongan Farms

Hatchery

Sukabumi & Lamongan Hatchery Plants

Commercial

Farm

Sukabumi, Cianjur, Tangerang, Bogor Commercial Farms

Slaughterhouse

Bogor & Mojokerto Slaughterhouses

Food Processing

Bogor Further Processing Plant

Talent Management

Talent & Business

• Feed sales volume double in

2020

• Farming keeps steady

• Foods triple in 2020

• Better margin portfolio

• New further processed foods

innovations

Telent Readiness

Current Future

• How looks like?

• Availability?

• Is it sufficient?

• New profiles?

• Talent war?

• New technology?

• New animal disease?

Gaps?

Business Strategy

Specific Organizational & Talent Implications of Strategy

1. Build Customer Centricity

and strengthen the Sales

& Marketing capability in

the Foods and Feed

organization to innovate

and boost significant

growth of differentiated

profitable products by

creating the high

performance culture and

providing competent

team.

Business Strategy

Specific Organizational & Talent Implications of Strategy

2. Build an international

standard innovation

team that will create

trending, attractive

and affordable

products aligned to

the changing life style

needs of consumer

by forming responsive

and reliable Foods

R&D team.

Business Strategy

Specific Organizational & Talent Implications of Strategy

3. Create a One-Sierad thinking within the organization by busting

the silo mentality and creating a working system that

encourages close interdepartmental collaboration.

Business Strategy

Specific Organizational & Talent Implications of Strategy

4. Enhance Poultry

operation efficiency

and supply high

quality live birds to the

Foods Division with

emphasis on

traceability and foods

safety to align with

international standard

by creating Quality

Mindset.

2 main parameters in Talent Development

• Mission Critical Roles (MCR)/ Hot Job

• Top Talent/ Asset/ Hipo (High Potential)

27

28

Mission Critical Roles (MCR)/ Hot Job Definition

• Makes a significant contribution to NPS

• Significantly impact to Growth & Innovation

• Technical complexity

• Has key interface or decision making responsibility/ authority

• Critical to growing SIPD capability as a business

• A position where significantly more to talent would enhance the business model

• A position where variability in performance of the job holder significantly impacts on the success of the business.

Normally the Hot Jobs is ¼ from the total Job Titles

29

Matriks Kategori Talent (MKT)

Berpotensi(3/1)

Sumber Daya(1/3)

Potensi Tinggi(2/3)

Bintang

Potensi Tinggi(3/2)

Sumber Daya(2/2)

Sumber daya(1/2)

Perlu Perhatian(2/1)

Perlu Perhatian(1/1)

----------------- Potensi Talent ----------------

Rendah Tinggi

Kesin

am

bungan K

inerja

(Apa d

an B

agaim

ana)

Rendah

Tinggi

Organizational Structure Mapping 2017

Strictly Confidential

Color CodeRed Box - 56 and up in ageYellow Box - 50 -55 in ageGreen Box - Below 50 in ageBlue Background - MCR

Chief Executive OfficerBudi Santosa, 53

Chief Fin. OfficerEndang S, 52

Purchasing DirWahyu S, 58

HRBP PoultryUdianto, 42

HRBP FoodsAgus H, 43

Corp Fin Contr.Steven, 40

Corp TreasurySumarni, 50

Foods Div ContrGrace, 34

Gen Purch.Agnes, 50

MEP Puch.Samsul, 49

EximVacant

Head of ITDeden P., 41

SBU Farming DirSamsir S, 51

Head of CCCTatang, 54

HR DirectorEdy Sembada, 50

SBU Foods DirectorMarkus K, 45

Head of SalesVacant

Head of MktWiryo S, 42

Head of RPABagas D, 54

Feed Div ContrFabiola, 39

SBU Feed DirectorEdward T, 47

Head of R&DVacant

Quality Impr.Suparno, 50

BreedingMahmud, 46

HatcheryHidayat, 58

CommercialSumardi, 52

Poultry HealthHeru AP, 60

Feed OperationRonald, 42

Feed SalesDondi, 45

Feed TechMasgi M, 59

Live Bird SalesHaris, 52

Commodity Procurement

Vacant

Head of MfgSukamto, 52

Strat Perf MgtVacant

Performance Against Values

Strictly Confidential31

Pe

rfo

rman

ce

DN

EE

CME

Senior Manager Level

EECMEDN

Values

Randy

Grace

Barurohim

Sudarnoto

M. Irwansyah

Rasuna Said

Sudihanto

Imam

Dondi

Nonik

Hasbi Iqbal

Tampubolon

Agus H.

Dondi Samsir

Santoso

Virnawati

Hasto P

Udin

Susana

Tari

Hidayat

Adi SantosaDirgantara

Nina

Mahmud

Too soon: Andrew T.

Maman A.

Adi Sulkan

Indra Widjaja

Bambang

Sahrul G.

Sanusi H.

Suggested Action Plans

Inconsistent in meeting

agreed individual

business targets

consistently exceeding

agreed individual

business targets

•Recognise and reward

•Provide feedback

•Mentor/coach to improve

Leadership

•Acknowledge contribution

Recognise and reward

•Challenge/stretch

•Expose

•Coach

•Set clear Milestones

•Provide feedback

•Coach Monitor/track

•Decision to continue

or end employment

•Reward

•Milestones

• Provide feedback

•Training

•Coach to improve

delivery

•Specific goals &

objectives

Consistently

exceeding

expectations

Inconsistent in

meeting

expectationsPotentialCapacity

WHAT

Success Plan – Foods Division

SUCCESS PLAN for Edward Tanudjaja

Assessment Summary: Sudarno has a well-rounded experience in warehousing management and just last year was

exposed to handle the customer service roles. His track record in finished goods warehousing and managing the products

delivery to customer led to significant improvement in service level up to 98%. He needs to be exposed also in factory

operations or sales as an options of his career development.

Name : Edward Tanudjaja

Current Position : Head of Warehouse & CS (2012-16)

Previous Position: Logistic Manager

Education : S1 Management STIE Jakarta

Knowledge

1

Experience

2

Competencies

3

Personal

Attributes

4

Key Strengths Development Needed Intervention Plan

• Strong knowledge in

warehouse & logistics

management.

• Knowledge of Sales and

marketing.

• Attend training on Sales &

Marketing.

• Implementation of good

warehousing management

and customer services.

• Lack of experience in Day-to-

day Factory Operations.

• Attend the monthly meetings in

Factory. (Q1 2016)

• Reassign to Factory as Factory

Director(Q4 2016)

• Planning and Organizing

skills.

• Operational Decision Making

• Leadership skills development

– use more coaching than

directing.

• Enlarge leadership

responsibilities by asking him to

lead a cross-functional work

team.

• (Q2 2016)

• Adapts to new challenges

well

• Positive in orientation

• Could be highly opinionated

that tend to push people away.

• Assign a BU CEO as mentor

• (Q1 2016)

Performance Rating:

2014 : A 2016: A

2015: B+ 2017: A

Possible Target Positions within two years:

National Sales Manager

Factory Manager

Why Talent Day ?

• Sierad has commitment to double the feed and triple foods sales

• Talent Readiness is the key of success

• Talent Development as strategic approach

• Leader’s commitment to spend time on people

• Talent Day Talent Calibration, Development, and

Succession Planning

• Done by Line Managers, facilitated by HR Business Partner

Why Prepare to April adj.

Scope Manager to Sr Manager GM - up

Aim Make it more visibleCalibrate, review the dev.

and successor

OutputTalent List and

their Development

Talent Calibration, Dev.

and Succession Plan

Prepare to October adj.

When : Twice a year

March September

362/3/2018

Talent Development

Succession Plan

Talent Management Program 2018

Goals: Strengthen the Feed & Foods Sales team & Foods R&D to support the business growth (to be 1.000 tons Foods/month, and achieve 34% Feed volume growth)

RECRUITMENT(BUY/ RENT)

1. Accelerate hiring process

DEVELOPMENT(BUILD)

RETENTION(KEEP)

• Feed: Senior Nutritionist• Farming: 2nd layer Head of

Breeding, Head of Hatchery

• Foods: Sales Head, R&D Head, Regional Sales Manager, Key Account Manager

• Total assessment of Foods Sales Team; Competency-based learning program

• Build Customer Intimacy Culture for Feed and Foods Sales Team

• Start Sierad LEAD Program• Develop internal candidates for Head of

Feed Sales, Head of Commercial Farm, Head of Poultry Health

2. Conduct Talent profile mapping and robust capability building program especially for Sales Team

• General Management Training for ETs

• Provide stretching assignment for TTs

• Focus on productivity incentive schemes

3. Provide stretching assignment for TTs and development program for ETs

TALENT MANAGEMENT INITIATIVES 2017

GradeTotal

No. of Talent

No. of Talent based on readiness for promotion

Director

Ass. Director

Sr. Manager

Manager

Jr. Manager

Spv/Officer

Sr. Staff

Staff

4

2

7

5

10

7

0

0

0

1

3

4

5

4

0

0

2

1

1

3

2

2

0

0

0

0

0

0

3

1

0

0

2 yr 1 yr Now

TOP TALENT

EMERGING TALENT

Total 17 1135 4

Talent Readiness Assessment Chart