Strategic Alignment Workshop Presentation

Strategic Alignment WorkshopStrategic Alignment Workshop

Welcome: Dato’ Shukri

Creating Strategic Alignment and Creating Our Future

4 Picture Introductions

Expectations and Concerns

Presentation of Executive Interviews

14.00 – 14.30

14.30 – 15.00

15.00 – 15.30

15.30 – 15.45

15.45 – 16.00

Discussion and Validation of Interview Findings

Break

Power of 3 Discussions

16.00 – 16.15

16.15 – 16.30

16.30 – 17.30

Workshop Agenda – Day 1

17.30 – 18.00 Geography of Trust

4 Picture Introductions (cont’d)

Review – Preview

How Great Teams Work

Break

Plenary Discussion

9.00 – 9.45

9.45 –10.15

10.15-10.30

10.30-11.30

Commit to Action: Initiatives and Priorities11.30-13.00


8.30 – 9.00

Objectives of this workshop

Objectives

Discuss mission, vision and values required to drive growth and performance in Bank CIMB Niaga

Explore issues and challenges around the top leadership team and what needs to be done the first year following the merger

Desired Outcomes

Meeting of minds on:

What the top team hopes to achieve going forward as the new entity

Corporate philosophy, culture and values that are required to align Group and achieve desired vision and future

Let me introduce myself…

Name:

Job Challenge What I do for fun

Who I admireHappiest moment in my life

Expectations +Concerns?

Our Expectations Of You…

Mobile phones on silent

Punctuality

Be present

Be open and candid

Privacy and confidentiality of what other say

Presentation of Executive Interview Findings

1. Team Dynamics

2. Differences in the two groups

3. Risks and Obstacles

About the Interviews

10 Executive Interviews were conducted with individuals with selected Board of Directors and Board of Commissioners (in alphabetical order):

1.En Abdul Farid Alias

2.Pak Arwin Rasyid

3.Ibu Catherine Hadiman

4.Gan Pai Li

5.Pak Henk Mulder

6.Pak James Rompas

7.Dato’s Mohd Shukri Hussin

8.Pak Roy Tirtadji

9.Ibu Sri Hartini Urip Simeon

10.Ibu Thila Nadason

1. Team Dynamics

Board members are strong individuals, but weak as a team

Board members need to get over their differences some of which are ‘petty’

There seems to be a higher level of acceptance of each other compared to before

Directions and ambitions of new group are not clear yet

General desire of board members to move forward as a new entity

2. Differences between Niaga and Lippo*

NIAGA LIPPO

Family culture, warm and nice Entrepreneurial, sales-driven culture

Long-serving staff New staff with diverse backgrounds

Standardized pay, high internal equity Many special hires with higher pay

High team accountability but low individual accountability e.g. 90% of population’s performance rated satisfactory

High individual accountability e.g. 40% of population’s performance rated satisfactory

Low external orientation Dynamic, agile, flexible to change

Strong credit and risk management culture More ‘flexible’ rules and policies

Long-standing service quality Straightforward and simple customer service

Caters to upper end of market Caters mainly to low to mid-end Chinese businessmen

Reserved and polite communication Direct and straightforward communication

BOC not involved in making executive decisions BOC involved in making executive decisions

*Based on executive interviewees’ opinions on self and each other

3. Risks and Obstacles

Catering to two different markets may result in loss of key customers

Potential Loss of key talent if:

Salary harmonization not handled/communicated properly

Best jobs not reserved for best people, only those with connections

Lack of buy-in from Niaga employees on new business model

Immediate need to drive a strong HR agenda which is aligned with the business strategy

Discussion and Validation of Interview Findings

Do you agree with the findings?

If not, which points do you disagree with?

Did anything come as a big surprise?

Any other comments?

BREAKBREAK

DirectionDirection

Coordination & Control

Coordination & Control

AccountabilityAccountability

External orientationExternal orientation

LearningLearning

CapabilityCapability MotivationMotivation

Environment & values

Environment & values

Alignment

Execution

Renewal

Source: McKinsey Global Organisation and Leadership Practice

Leadership

Power of 3: Direction, Leadership, Environment & Values

Instructions: Form 3 Groups. Each group spends 20 minutes discussing one of the followingtopics. Make sure to flip chart your key points.

Group 1

Direction:1. What is the direction/vision of Bank CIMB Niaga?2. What are the barriers that may hinder our achievement of the direction/vision?3. What are the priorities that need to be addressed for us to achieve our direction?4. How can we ensure that the direction/vision for the bank is widely understood by

employees?

Group 2

Leadership:1. What leadership skills and competencies are required by us/our leaders to lead the

organization towards achieving its vision?2. What are the barriers that may hinder our ability to build these skills and

competencies?3. What are the priorities that need to be addressed for us to build the necessary skills

and competencies?4. How can we ensure that we as a board are respected throughout the Bank and

demonstrate inspirational leadership?


Group 3

Environment and Values:1.What kind of culture and values do we want to build?2.What are the barriers that may hinder the building of our desired culture and values?3.What are the priorities that need to be addressed for us to build the desired culture?4.How can we ensure that the culture and values we want are:

Clearly defined Produces employee behavior that support our strategy Helps recruitment and retention of us


Geography of Trust

3 types of trust:

1. Personal trust2. Expertise trust3. Structural trust

Trust is dynamic: understand how your trust in others changes as your career progresses

Develop your ability to cultivate relationships along all dimensions of Trust

Geography of Trust

Personal Trust

Trust at its most basic and widely understood

Develops in workplace because of shared tasks

Based on faith in a person’s character and integrity

Source: ©2005 Cambridge International Group Limited

Personal Trust

When you know the advice you’re getting is sound because of a person’s competence and knowledge in a specific subject area

Expertise trust focuses on the thinking abilities of someone else


Structural Trust

When someone’s current or future position or role

affects your confidence about how they deal with you

Changes the most as you become more senior -

your position changes the dynamics between you

Extent of structural trust is significantly influenced

by an individual’s need to advance his goals, position, advocacy or self-interest


Evening Learning Experience

‘Two is Company’ Dinner Talk:

Should trust be given or earned?

What is our level of Personal, Expertise and/or Structural trust of each other?

If Trust does not exist how can we create levels of trust together?

HBR Reading

Leadership Development at Goldman Sachs by Boris Groysberg, Scott Snook (2006)

Discipline of Teams by Jon R. Katzenbach and Douglas K. Smith

Dinner Groupings

Pairs? (To ask Shukri)

DO NOT PRINT

Bank CIMB Niaga Board of Directors Meeting:Bank CIMB Niaga Board of Directors Meeting:Strategic Alignment WorkshopStrategic Alignment Workshop

Hotel Dharmawangsa, Jakarta

24 – 25 September 2008

Day 2

1. Day 1 content 2. Dinner Talk3. Goldman Sachs Article:(Leadership Development at Goldman Sachs)

Review and Preview

4 Picture Introductions (cont’d)

Review – Preview


Break

Plenary Discussion

9.00 – 9.45

9.45 –10.15

10.15-10.30

10.30-11.30

Commit to Action: Initiatives and Priorities11.30-13.00


8.30 – 9.00

Basics of a High Performing Team

PERFORMANCE RESULTS

PERSONAL GROWTH

COLLECTIVE WORK PRODUCTS

SKILL

SACCO

UNTABILI

TY

COMMITMENT

Problem solving

Technical/ function

Interpersonal

Mutual

Small number of people

Individual

Specific goals

Common purpose

Meaningful purpose

Source: The Wisdom of Teams; Jon R. Katzenbach

Six Elements of a Team

“A team is a small group of people with complementary skills who are committed to a common purpose, specific performance goals and common approach, for which they hold themselves mutually accountable for the team’s results.”

Source: The Wisdom of Teams; Jon R. Katzenbach

The Team Performance Curve

The Wisdom of Teams; Jon R. Katzenbach

PE

RF

OR

MA

NC

E

IMP

AC

T

TEAM EFFECTIVENESS

1. Working Group

2. Pseudo-team

3. Potential Team

4. Real Team

5. High Performance

Team

Leap of faith required

Exceptional personal commitment required


1. Working Group

No significant performance need to become a team

No common purpose, performance goals, joint work-products that requires mutual accountability

Members share info, best practices, make decisions to help each other perform within his/her area of responsibility

2. Pseudo – Team

Could be a significant performance need, but not focused on achieving it

Weakest of all groups, contributes least to company’s performance

Sum of the whole less than the potential of the individual parts


3. Potential Team

Significant performance need, and really trying to improve its performance impact

May require more clarity about purpose, goals, work-products, approach

Not yet established collective accountability

Small number of people with complimentary skills who are equally committed to a common purpose, performance goals and common approach for which they hold themselves mutually accountable (2) Pseudo Teams

4. Real Team


5. High Performance Team All the conditions of a Real Team

Members are also deeply committed to one another’s personal growth and success

Significantly outperforms all other like teams; outperforms all reasonable expectations given its membership

The 5 Dysfunctions of a Team

Inattention to RESULTS

Avoidance ofACCOUNTABILITY

Lack ofCOMMITMENT

Fear ofCONFLICT

Absence ofTRUST Invulnerability

Artificial Harmony

Ambiguity

Low Standards

Status and Ego

Source: Patrick Lencioni, 5 Dysfunctions of a Team, 2002

The 5 Dysfunctions of a Team

Dysfunction 1: Absence of Trust Occurs when members are reluctant to be vulnerable with one another

Dysfunction 2: Fear of Conflict Leads to sub-optimal decision-making

Dysfunction 3: Lack of Commitment No conflict No commitment to decisions Environment of ambiguity

Dysfunction 4: Avoidance of Accountability No Commitment to clear plan of action No peer-to-peer accountability for

performance and results

Dysfunction 5: Inattention to Results No peer-to-peer accountability Rise of individualism Collective results

suffer

Source: Patrick Lencioni, 5 Dysfunctions of a Team, 2002

BREAKBREAK

Plenary Discussion: Discipline and Dysfunction of Teams

What we look like as a team What kind of Team are we?

Which dysfunctions do we have as a team?

What other barriers are there to becoming a high performance team?

Team behaviors/protocol/ decorum What kind of behaviors should we stop?

What kind of behaviors should we start?

What are basic team rules/protocol we need to agree on and abide by? (E.g. disagreements, problem-solving)

Commit to Action: Initiatives and Priorities for 1st Year

Action Who Accountable When

Next Steps

Follow up on action plan during next Board Meeting / retreat

Talent assessment for mission critical positions in Bank CIMB Niaga

Strategic Alignment Workshop Presentation

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