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6/18/2012
1
HIGH SPEED,
LOW COST,
STRATEGIC
ORGANIZATION
TRANSFORMATION
@ BANK MANDIRI
6/18/2012
2
TABLE OF CONTENT
• BANK MANDIRI PROFILE
• BANK MANDIRI HISTORY
• SUCCESS FACTORS SOLUTION
• SUMMARY
• E-MANDIRI EASY VIDEO
BANK MANDIRI PROFILE
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BANK MANDIRI PROFILE
8996 ATM 92.874 EDC
28.183 employees
1537 branches in Indonesia
Cayman Island
Singapore
Timor Leste
Shanghai
5 Overseas Offices
Hong Kong
8 Subsidiaries
BANK MANDIRI REMAINS ON TRACK TO BECOME
INDONESIA'S MOST ADMIRED FINANCIAL INSTITUTION
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KEY FINANCIAL HIGHLIGHTS
SHARE INFORMATION
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AWARDS FOR BANK MANDIRI
9
2007
2008
2009
• The Best Local Private
Bank in Indonesia
• The Best Bank In
Indonesia 2009
Asia’s Best Companies
for Corporate
Governance
Bank Of The Year 2009
Indonesia
The Best Bank
In Indonesia 2008
Bank Of The Year 2008
Indonesia Overall Best Managed
Company in Indonesia
– Large Cap
Bank Of The Year 2007
Indonesia • Best Overall for Corporate Governance in
Indonesia
• Best for Disclosure and Transparency
2010
Asia’s Best Companies
for Corporate
Governance
Most Admired Company
in Banking 2010 The Strongest Bank
Award 2010 in Indonesia Best Bank
in Indonesia
Best Bank
in Indonesia
• Best Trade Finance Bank
• Best Cash & Liquidity
Management Bank
• Best Financial Supply
Chain Bank in Indonesia
2011 Best Domestic Bank,
Best Domestic Debt
House, Best Private
Bank, Best Domestic
Interest Rates,
Asia’s Best
Companies for
Corporate
Governance
Best Bank
in Indonesia Best Private Bank in
Indonesia, Best
Bank in Indonesia
Best overall
managed company
in Asia – Banking
and Financial
The Best Public
company in Banking
Category
The Most Trusted Company
Corporate Governance
Perception Index
The Most Trusted Company
Corporate Governance
Perception Index
The Most Trusted Company
Corporate Governance
Perception Index
The Most Trusted
Company
Corporate Governance
Perception Index
BANK MANDIRI HISTORY
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BANK MANDIRI HISTORY
PAT BMRI in Tn Rp
• 2 Oktober 1998
Bank Mandiri
established
• 13 Maret 1999
Central Bank
liquidates 38
Banks
• 31 Juli 1999
4 state owned
Banks (BBD,
BDN, Bapindo &
Exim) merges into
Bank Mandiri
1998-1999
• 14 Juli 2003
BMRI IPO for 20% stake
2000-2004
1.2
2.7
3.6
4.6
5.3
2000 2001 2002 2003 2004
• Increased growth in
performance not
supported by strong
fundamentals.
• Devaluation of
Thai Bath
• Central Bank
liquidates 16
Banks
1997
Asia
Economy
Crisis
16 Mei 2005
Stakeholders
appointes new
BOD
2005
NPL
Gross
26.7% Rp. 603 Bn
Rp. 1,076
Employees
demotivated
Secondary
Crisis
BMRI
PAT
Share Price
Nov 2005 • Head count reduction from 26.600
to17.620
• Branch reduction from 740 to 546
• Consolidations 9 systems into 1
• Transferred Rp. 103 triliun bad loans to
IBRA
THE 2 OPTIONS AVAILABLE TO THE BOD
Bank Mandiri chosed to take the difficult road to become a Regional
Champion Bank using the Dominant Multispecialist Bank Strategy
LARGE LOCAL BANK
REGIONAL CHAMPION
BANK
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TO ACHIEVE THE VISION THE BANK
TRANSFORMED FOUR AREAS
Culture
Business
Growth
Strategic
Alliances
Control
NPL
3
2 1
4
• Performance based organisation
• Redefining performance mgmt system
• Implementation of higher ethical standard
• Implementation of new corporate culture
• Leadership and Talent Development
• Focus on managing bad loans
• Strengthen risk management system at
3 levels: underwriting, monitoring and
restructuring & collection
• Develop and manage alliances across
SBU
• DA clear strategy and value preposition
for each business segment
• An optimum distribution network
• Sales and Service culture
• Non – organic growth to acquisition
… IN 3 PHASES
2005
Back on Track Build the fondation
Outperform the Market
Consolidate
Shaping the End Game
Improve and Grow
2008 2010
• Net NPL < 5%
• Increase Provision for
Loan Coverage
• Business and
profitability growth
above market
• Competitive ROE
• Optimum PBV
• Dominate market share
in all segmen
• Market Cap above USD
10 Bn
Key
Indicators
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FIRST PHASE OF TRANSFORMATION
ACHIEVED THE DESIRED OUTCOME
1.14
Asset Size
(Bio USD)
Ma
rke
t C
ap
ita
liza
tio
n (
Bio
US
D)
184 132 138 88 70 30 65 42 33 39 53 41 10 46 24 23 6
Data as of 25 /05/2010, Source: Infinancial; Dow Jones; Bloomberg
SUCCESS FACTORS SOLUTION
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BUSINESS CASE
• To achieve its 2014 vision and maintain its leadership position Bank Mandiri
needs to get the highest levels of productivity from all its employees.
• Highest productivity requires highest levels of engagement.
• How do we build the highest levels of engagement?
• According to Gallup engagement is built through:
Growth
Teamwork
Individual Contribution
Basic Needs
• Opportunities to learn and grow in past year
• Progress discussion in last six months
• I have a best friend at work
• Co-workers committed to quality
• Mission/purpose of company
• At work, my opinions seem to count
• Someone at work encourages my development
• Supervisor/someone at work cares about me as person
• Recognition last seven days for good work
• Do what I do best every day
• I have the materials and equipment I need to do my work right
• I know what is expected of me at work
How satisfied are you with Mandiri as a place to work?
BUSINESS CASE
• For any company operating in a growth market, it is easy to add up resources to
grow, however it is unsustainable in long term.
• Mandiri’s transformation has to be sustainable, a “multiplication” strategy or
“DOING MORE WITH THE SAME OR LESS”.
• In the past Mandiri did grapple with strategic transformation using ERP but with
disappointing results in terms of costs, time, and the desired behavioral change.
• So the new SOLUTION has to be different and completed quickly and efficiently
as the competition within the banking sector is heating up significantly.
• Hence, the STRATEGIC TRANSFORMATION needed is “DRIVE PRODUCTIVITY BY
ENGAGING EVERY MANDIRIAN, QUICKLY, EFFICIENTLY, EFFECTIVELY &
SUSTAINABLY”.
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BUSINESS CASE
• Organisational apathy resulting from previous transformation exercises had to be
overcome with ease of use and massive organisational empowerment.
• Mandiri has to spend 5% of payroll cost in for HC Development & Training, but
limited operating and capital expense budget. How SF can help optimize
Development & Training Budget utilisation?
• SF uses a cloud model, which means we do not need large investments in IT or IT
personnel.
• In the past Mandiri Line Managers only functioned as a Business Manager but
never acted as People Manager.
• In the past Performance Management System is only a rewarding tool. SF will
empower Mandiri Line Managers to act as People Manager.
SUCCESS FACTORS VS. ERP Success Factors Large Scale ERP
Cost Multiplier 1 x (over 5 years) 3.5 x (over 5 years)
Budget Source Development & Training Capital & Operational Expense
FTE Needed 3 ~ 15
Implementation
Timeline
9 months for all HC modules Minimum 2 years for administrative
HC processes
Scope All Employees HR Teams
Infrastructure Not Required Significant needs
Rollout
frequency
Multiple within short periods Multiple within long periods
Training • Number of Trainers: 4
• 1 month TTT for ~ 800
employees
• 1.5 months EUT for 25.000
employees
• Number of Trainers: 20
• 1 month TTT for ~ 20
• 2 months EUT for ~ 200 HR
Team
User Friendly Yes No
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INTRODUCTION TO E-MANDIRI EASY • e-Mandiri EASy is electronic Mandiri Employee Appreciation System.
• Empowered by Success Factors, the online system integrates HC processes via
internet.
BEFORE e-Mandiri EASy AFTER e-Mandiri EASy
• Decentralised HC processes • Centralised and integrated HC processes
• Managing execution is not easy and
manageable. • Accessible via internet 24x7, hence easy to
manage
• Limitation on Time and venue • Flexible. All processes can be accessed anywhere and every time.
• Problem managing hardcopy • All files are in softcopy/e-file
SF NOVELTY
• Integrates seamlessly with our HC Strategy and supports all HC functions
excluding payroll.
Mandiri HR Strategy
e-MANDIRI EASy (Success Factors)
GOAL MANAGEMENT
PERFORMANCE MANAGEMENT
COMPENSATION MANAGEMENT
CAREER & DEVELOPMENT
PLAN
SUCCESSION MANAGEMENT
360 DEGREE REVIEW
LEARNING (ELMS)
In progress
JAM (EKMS)
In progress
EMPLOYEE
PROFILE
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SF NOVELTY
GOAL MANAGEMENT
PERFORMANCE MANAGEMENT
COMPENSATION MANAGEMENT
CAREER & DEVELOPMENT
PLAN
SUCCESSION MANAGEMENT
360 DEGREE REVIEW
LEARNING (ELMS)
In progress
JAM (EKMS)
In progress
EMPLOYEE
PROFILE
1. Organisation Development is mapped to CAREER & DEVELOPMENT PLAN
Mandiri HR Strategy
e-MANDIRI EASy (Success Factors)
SF NOVELTY
GOAL MANAGEMENT
PERFORMANCE MANAGEMENT
COMPENSATION MANAGEMENT
CAREER & DEVELOPMENT
PLAN
SUCCESSION MANAGEMENT
360 DEGREE REVIEW
LEARNING (ELMS)
In progress
JAM (EKMS)
In progress
EMPLOYEE
PROFILE
2. Workforce Fulfillment is mapped to EMPLOYEE PROFILE
Mandiri HR Strategy
e-MANDIRI EASy (Success Factors)
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SF NOVELTY
3.Learning & Development is mapped to 360 DEGREE REVIEW and CAREER &
DEVELOPMENT PLAN
GOAL MANAGEMENT
PERFORMANCE MANAGEMENT
COMPENSATION MANAGEMENT
CAREER & DEVELOPMENT
PLAN
SUCCESSION MANAGEMENT
360 DEGREE REVIEW
LEARNING (ELMS)
In progress
JAM (EKMS)
In progress
EMPLOYEE
PROFILE
Mandiri HR Strategy
e-MANDIRI EASy (Success Factors)
SF NOVELTY
4. Employee Relations is mapped to EMPLOYEE PROFILE
GOAL MANAGEMENT
PERFORMANCE MANAGEMENT
COMPENSATION MANAGEMENT
CAREER & DEVELOPMENT
PLAN
SUCCESSION MANAGEMENT
360 DEGREE REVIEW
LEARNING (ELMS)
In progress
JAM (EKMS)
In progress
EMPLOYEE
PROFILE
Mandiri HR Strategy
e-MANDIRI EASy (Success Factors)
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SF NOVELTY
5. Performance Management & Rewards is mapped to GOAL MANAGEMENT,
PERFORMANCE MANAGEMENT and COMPENSATION MANAGEMENT
GOAL MANAGEMENT
PERFORMANCE MANAGEMENT
COMPENSATION MANAGEMENT
CAREER & DEVELOPMENT
PLAN
SUCCESSION MANAGEMENT
360 DEGREE REVIEW
LEARNING (ELMS)
In progress
JAM (EKMS)
In progress
EMPLOYEE
PROFILE
Mandiri HR Strategy
e-MANDIRI EASy (Success Factors)
SF NOVELTY
6. TALENT & SUCCESSION MANAGEMENT is mapped to SUCCESSION MANAGEMENT
GOAL MANAGEMENT
PERFORMANCE MANAGEMENT
COMPENSATION MANAGEMENT
CAREER & DEVELOPMENT
PLAN
SUCCESSION MANAGEMENT
360 DEGREE REVIEW
LEARNING (ELMS)
In progress
JAM (EKMS)
In progress
EMPLOYEE
PROFILE
Mandiri HR Strategy
e-MANDIRI EASy (Success Factors)
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SF NOVELTY
CULTURE & LEADERSHIP is mapped to JAM (EKMS) and 360 DEGREE REVIEW
GOAL MANAGEMENT
PERFORMANCE MANAGEMENT
COMPENSATION MANAGEMENT
CAREER & DEVELOPMENT
PLAN
SUCCESSION MANAGEMENT
360 DEGREE REVIEW
LEARNING (ELMS)
In progress
JAM (EKMS)
In progress
EMPLOYEE
PROFILE
Mandiri HR Strategy
e-MANDIRI EASy (Success Factors)
SF NOVELTY
Strategy & Tactical HC Practices is mapped to Mandiri EASy Policies, training
materials and infrastructure
GOAL MANAGEMENT
PERFORMANCE MANAGEMENT
COMPENSATION MANAGEMENT
CAREER & DEVELOPMENT
PLAN
SUCCESSION MANAGEMENT
360 DEGREE REVIEW
LEARNING (ELMS)
In progress
JAM (EKMS)
In progress
EMPLOYEE
PROFILE
Mandiri HR Strategy
e-MANDIRI EASy (Success Factors)
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SF IMPLEMENTATION TIMELINE
Jan 11 Mar 11
Apr 11 Jun 11
Oct 11 Dec 11
Jul 11 Sep 11
Phase 1
• Compensation Mgmt
• EUT Compensation
Management
• Total Mandiri FTEs: 2 Phase 2
Phase 3
Training
• Goal Management
• TTT Goal Management
• Total Mandiri FTEs: 2
• Performance
Management
• Development Plan
• Talent Classifications
• Succession Planning
• 360 Degree
• Total Mandiri FTEs: 4 • TTT for all modules
• EUT for all modules
• Total TTT FTEs: 4
GO LIVE
7 modules, 9 months, 3 Mandiri FTE
• Our business case has been achieved through Success Factors
• Fast Implementation Time
• Cost Effective
• Efficient
o HC Team can manage system severally
o Increase HC efficiency by accelerating all HC processes
o Reduce HC FTE to manage HC processes
• Engage every individual in Mandiri
• Significantly increase employee participation in personal development
• Develop coaching culture
• Enable line managers to value and retain top performing talent
• Empower line managers to make people decisions
SUMMARY
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THANK YOU TEAMS!
Belinda Wlossak (SF)
Ben Corser (SF)
Dean Blundell (SF)
Doug Mecimore (Aasonn)
Raymond Kuo (SF)
Sandeep Gudur (SF)
Susan Fisher (SF)
Valerie Mahan (Aasonn)
Vicky Zani (Aasonn)
Andi Wibisono (DDI)
E-MANDIRI
EASY
VIDEO
