MAGISTER MANAJEMEN TEKNOLOGI, SIMT-ITS
Guest Lecture (Online):
STRATEGICMANAGEMENT PRACTICES
INCONSTRUCTIONINDUSTRY
Sapri Pamulu, Ph.D.
President Director
PT. Indah Karya (Persero)
26 Maret 2022
OUTLINE
1
2
3
4
CORE CONCEPT
PRACTICAL CONCEPT
IMPLEMENTATION
WIRATMAN CASE
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CORE
CONCEPT
Barney & Hesterly
Strategy is a firm’s theory about how to gain
competitive advantages
FRED R. DAVID
Art & science of formulating, implementing, and
evaluating, cross-functional decisions that enable
an organization to achieve its objectives
DESS et al.
Analyses, decisions, and actions an organization
undertakes in order to create and sustain
competitive advantages
WHEELEN & HUNGER
Set of managerial decisions and actions that
determines the long-run performance of a firm
SM EVOLUTION
CORPORATE PLANNING:
Medium-term Economic forecasting, Formal
corporate Planning, Diversification and quest
for Synergy,
Creation of corporate Planning departments
QUEST FOR COMPETITIVE ADVANTAGE:
Analysis of resources and capabilities,
Shareholder value maximization,
Restructuring and re-engineering,
Alliances
STRATEGY IN THE NEW MILLENNIUM:
CSR and business ethics,
Competing for standards,
Winner-takeall markets,
Global strategies
1960
1980
2000
1970
1990
STRATEGY AS POSITIONING:
Industry analysis,
Market segmentation,
The experience curve,
PIMS analysis,
Planning business portfolios
STRATEGY FOR THE NEW ECONOMY:
Strategic innovation,
New business models,
Disruptive technologies
SM MODEL (DAVID)
1
STRATEGY
FORMULATION
2
STRATEGY
IMPLEMENTATION
3
STRATEGY
EVALUATION
SM MODEL (THOMPSON)
1
STRATEGY
MAKING
2
STRATEGY
EXECUTION
Point one
Achieving Sustained Competitive Advantage
COMPETITIVE
ADVANTAGE
Point two
Continually adapting to changes in external trends and
events and internal capabilities, competencies, and
resources
Strategic Management is Gaining and Maintaining
Competitive Advantage
Point Three
Effectively formulating, implementing, and evaluating
strategies that capitalize on those factors
PRACTICAL
CONCEPT
KEY ISSUES
In 2016, it was estimated that 67% of well-formulated
strategies failed due to poor execution. There are
many explanations for this abysmal failure rate, but a
10-year longitudinal study on executive leadership
showed one clear reason. A full 61% of the executives
were not prepared for the strategic challenges they
faced upon being appointed to senior leadership
roles.
Ron Carucci (HBR, 11/2017)
80-90% of Enterprises Fail At Strategy Execution
Most organizations have difficulty executing strategy.
V
The Vision Barrier
95% of the typical work force doesn’t understand the
strategy
M
The Management Barrier
85% of executive teams spend less than one hour
per month discussing strategy
They Don’t Manage Strategy
WHY?
There is no generally accepted
way to describe a business
strategy
You Can’t Manage Something
That You Can’t Describe &
Measure!
P
The People Barrier
75% do not link management incentives to strategy
If you can’t manage it,
you can’t improve it.
Kaplan & Norton
R
The Resource Barrier
60% of organizations do not link strategies with
budgets.
NEW
SYSTEM
A Strategy Map and Balanced Scorecard
provides the foundation for a new strategy
execution system
What does it look like?
THE EXECUTION PREMIUM
The Kaplan-Norton six-stage closed loop
management system for Strategy Execution
Financial
F
Financial performance, a lag indicator,
measures the tangible outcomes from the
strategy (Revenue Growth & Productivity)
Customer
C
The customer value proposition defines the
source of value (Satisfaction, Relation &
Branding)
Processes
P
Strategic processes create value for
customers and shareholders (Operation,
Customer, Innovation & Social-Regulatory
processes)
Learning & Growth
L
Aligned intangible assets drive improvement
in the strategic processes (Human,
Information, Organization Capital)
Point one
Most Balanced Scorecard Hall of Fame companies
achieve dramatic results in 2-3 years
COMPETITIVE
ADVANTAGE
Point two
The Problem: The executive sponsor of the BSC
program leaves. The BSC approach is abandoned.
How can we make “strategy management” a sustainable
competitive advantage?
Point Three
Imbed the BSC strategy management approach into
the governance structure:
Integrated system (XPP); Common platform (BSC);
Responsible specialist (OSM)
IMPLEMENTATION
5 Principles of Strategy Implementation
Strategy-Focused Organization
1
2
3
MOBILIZATION
TRANSLATION
ALIGNMENT
MOTIVATION
GOVERNANCE
Mobilize change through
executive leadership
Translate strategy to
operational terms
Align the organization to the
strategy
Motivate to make strategy
everyone’s job
Govern to make strategy
a continual process
4
5
PRINCIPLE 1
Mobilize Change Through Executive Leadership
Executives make
the case for
change
A
Leaders drive
strategy execution
B
Leaders reinforce
strategic priorities
C
Well articulated
strategy exists
D
E
Office of Strategy
Management
established
PRINCIPLE 2
Translate Strategy to Operational Terms
A
Strategy translated to
strategy map
B
Strategy described
in Balanced Scorecard
C
Targets identified for
all measures
D
Strategic initiatives
rationalized
E
Accountability
assigned
PRINCIPLE 3
Align the Organization to the Strategy
.
A
C-ROLE
Corporate role
defined
B
C-CARD
Enterprise scorecard
guides business units
C
B-CARD
Business unit
scorecards guide
support units
D
X-CARD
Scorecards align
suppliers and/or
customers
E
BOD
Scorecards align
Board of Directors
PRINCIPLE 4
Make Strategy Everyone’s Job
A
B
C
D
1
2
3
4
Strategic awareness created
Personal goals aligned
Personal incentives aligned
Competency development
aligned
PRINCIPLE 5
Make Strategy a Continual Process
A
Resource Management
Budget is linked to the
strategy ; Planning for HR/IT
linked to strategy ; Portfolio of
strategic initiatives linked to
themes
B
Key Process
Management
Process improvement linked
to strategy;
Best practice sharing in place
C
Learning and Control
Strategy reviewed and adapted
on a regular basis
Data and analytics guide strategy
.
THE OSM
Strategy Management requires a new way
of managing. You must build a center of
competence to lead these changes.
WIRATMAN
CASE
WIRATMA
N
At a glance
WIRATMAN was established in 1976 by
Professor
Dr. Ir. Wiratman Wangsadinata,
a senior figure in the construction
industry
WIRATMAN
Helping clients build their dreams. We offer our clients visionary planning,
innovative design, high quality engineering and management all under one
roof for a smooth and seamless process.
WIRATMAN
Our reputation for excellence and
creativity stems from a simple
philosophy:
We Want To Build The World
To Be A Better Place
- Barack Obama
WIRATMAN
Spin-off Construction Management Division as Wiratman’s Subsidiaries, PT Wiratman
Cipta Manggala (2014) & Establish PT Wiratman Chodai Indonesia as Foreign Company
Investment with Chodai Co. Ltd. (2015)
WIRATMAN
an independent full service
multidisciplinary
firm headquartered in Jakarta, Indonesia.
Drawing on four decades of proven
expertise in seeing through complex
projects of all sizes from studies, planning
& design, project & construction
management to completion
WIRATMAN
CASE
(CONT.)
WISDOM 2020
WIRATMAN GROUP
WISDOM 2020
WIRATMAN GROUP
WISDOM 2020
WIRATMAN GROUP
WISDOM 2020
WIRATMAN GROUP
WISDOM 2020
WIRATMAN GROUP
WISDOM 2020
WIRATMAN GROUP
STRATEGY IMPLEMENTATION
Wiratman adopt BSC as strategy management system at 2011and BMC as business
model
STRATEGY MAKING
WIRATMAN GROUP
STRATEGY MAKING
Canvas
Workshop
WIRATMAN GROUP
BMC+BSC
STRATEGY MAP
WIRATMAN GROUP
STRATEGY MAP CASCADING
STRATEGIC BUSINESS UNIT SCORECARD
WIRATMAN GROUP
INDIVIDUAL SCORECARD
STRATEGIC INITIATIVES : CLOSE THE GAP
3-YEAR PERFORMANCE IMPROVEMENTS
WIRATMAN GROUP
PTPP CASE
STRATEGI PERUSAHAAN PTPP
50
STRATEGI PERUSAHAAN PTPP
51
TELKOMSEL
CASE
PROSES SM TELKOMSEL 1998
53
PROSES 1 SM TELKOMSEL 98
54
PROSES 2 SM TELKOMSEL 98
55
PROSES 2 SM TELKOMSEL 98
56
PROSES 3 SM TELKOMSEL 98
57
PROSES 3 SM TELKOMSEL 98
58
PROSES 3 SM TELKOMSEL 98
59
PROSES 4 SM TELKOMSEL 98
60
PERFORMANCE SM TELKOMSEL
61
thank you!