Bank CIMB Niaga Board of Directors Meeting: Strategic Alignment Workshop Hotel Dharmawangsa, Jakarta 24 – 25 September 2008 Day 1
Welcome Dato’ Mohd. Shukri Hussin CIMB, President Commissioner
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Creating Strategic Alignment & Creating Our Future Pak Arwin Rasyid, CEO Bank CIMB – Niaga Page 3
Workshop Agenda – Day 1 14.00 – 14.30
Welcome: Dato’ Shukri
14.30 – 15.00
Creating Strategic Alignment and Creating Our Future
15.00 – 15.30
4 Picture Introductions
15.30 – 15.45
Expectations and Concerns
15.45 – 16.00
Presentation of Executive Interviews
16.00 – 16.15
Discussion and Validation of Interview Findings
16.15 – 16.30
Break
16.30 – 17.30
Power of 3 Discussions
17.30 – 18.00
Geography of Trust Page 9
Workshop Agenda – Day 2 8.30 – 9.00
4 Picture Introductions (cont’d)
9.00 – 9.45
Review – Preview
9.45 –10.15
How Great Teams Work
10.15-10.30
Break
10.30-11.30
Plenary Discussion
11.30-13.00
Commit to Action: Initiatives and Priorities
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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
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Let me introduce myself…
Job Challenge
What I do for fun
Name:
Happiest moment in my life
Who I admire
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Expectations + Concerns?
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Our Expectations Of You…
Mobile phones on silent Punctuality Be present Be open and candid Privacy and confidentiality of what other say
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Presentation of Executive Interview Findings
1. Team Dynamics 2. Differences in the two groups 3. Risks and Obstacles
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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
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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
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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
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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
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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?
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BREAK
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Power of 3: Direction, Leadership, Environment & Values
Direction
Alignment Coordination & Control
Accountability
External orientation
Leadership
Learning
Execution Capability
Motivation
Environment & values
Source: McKinsey Global Organisation and Leadership Practice Page 22
Renewal
Power of 3: Direction, Leadership, Environment & Values
Instructions: Form 3 Groups. Each group spends 20 minutes discussing one of the following topics. 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? Page 23
Power of 3: Direction, Leadership, Environment & Values 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
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Geography of Trust
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Geography of Trust
3 types of trust: 1. Personal trust 2. Expertise trust 3. 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
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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 Page 27
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
Source: ©2005 Cambridge International Group Limited Page 28
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
Source: ©2005 Cambridge International Group Limited Page 29
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
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Dinner Groupings Pairs? (To ask Shukri)
O N DO
T N I T PR
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Bank CIMB Niaga Board of Directors Meeting: Strategic Alignment Workshop Hotel Dharmawangsa, Jakarta 24 – 25 September 2008 Day 2
Review and Preview
1. Day 1 content 2. Dinner Talk 3. Goldman Sachs Article: (Leadership Development at Goldman Sachs)
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Workshop Agenda – Day 2 8.30 – 9.00
4 Picture Introductions (cont’d)
9.00 – 9.45
Review – Preview
9.45 –10.15
How Great Teams Work
10.15-10.30
Break
10.30-11.30
Plenary Discussion
11.30-13.00
Commit to Action: Initiatives and Priorities
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How Great Teams Work
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Basics of a High Performing Team PERFORMANCE RESULTS
C A
Technical/ function Interpersonal
Mutual
Small number of people Individual
Y LIT BI TA UN
Problem solving
O C
LS L I K S
Specific goals Common purpose Meaningful purpose
COLLECTIVE WORK PRODUCTS
COMMITMENT
Source: The Wisdom of Teams; Jon R. Katzenbach Page 36
PERSONAL GROWTH
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 Page 37
The Team Performance Curve
PERFORMANCE IMPACT
4. Real Team
1. Working Group Leap of faith required
5. High Performance Team Exceptional personal commitment required
3. Potential Team
TEAM EFFECTIVENESS
2. Pseudo-team The Wisdom of Teams; Jon R. Katzenbach
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The Team Performance Curve 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
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The Team Performance Curve 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
4. Real Team 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
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The Team Performance Curve
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
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The 5 Dysfunctions of a Team
Inattention to RESULTS
Status and Ego
Avoidance of ACCOUNTABILITY Lack of COMMITMENT Fear of CONFLICT Absence of TRUST
Source: Patrick Lencioni, 5 Dysfunctions of a Team, 2002
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Low Standards Ambiguity
Artificial Harmony
Invulnerability
The 5 Dysfunctions of a Team
Dysfunction 1: Absence of Trust
Dysfunction 2: Fear of Conflict
No conflict No commitment to decisions Environment of ambiguity
Dysfunction 4: Avoidance of Accountability
Leads to sub-optimal decision-making
Dysfunction 3: Lack of Commitment
Occurs when members are reluctant to be vulnerable with one another
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
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BREAK
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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)
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Commit to Action: Initiatives and Priorities for 1st Year
Action
Who
Accountable
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When
Next Steps
Follow up on action plan during next Board Meeting / retreat Talent assessment for mission critical positions in Bank CIMB Niaga
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