1 Engage, enable, action! Real results for real commitment at AXIS Telekom 1st April 2013 AXIS Telekom is the fastest growing national GSM mobile operator in Indonesia. The company provides 2G, 3G and BlackBerry Services nation-wide and covers the world • Owned by Saudi Telecom, through 418 international roaming partners in the largest network and infrastructure mobile services 165 countries company in Middle East and North Africa, and Maxis Communications Berhad (Maxis), the leading mobile communications services Challenges of a diverse market provider in Malaysia. Spanning two years, AXIS In order to run a telco on a sales • The telco has approximately Telekom worked with Hay Group, and marketing operating model, 800 employees focused on a global consulting firm, to people management is a key customer service, and business analyse and build employee driver of success. This is why AXIS and technology development. committment at AXIS. takes a real interest in its employ- • The company claims that its ees’ opinions and implement- pre-paid and post-paid GSM Competing for market share in ing ideas that could lead to true services are the most affordable, Indonesia’s booming telecommu- growth and development. reliable and transparent in nications industry is a challenge the Indonesian urban centre not to be sniffed at. Launched in In addition to the challenges of market. • Adherence to and respect for 2008, AXIS has since carved out a operating in a fast-paced niche corporate governance and niche for itself with a strong focus segment, AXIS will face a values, and code of conduct are on Indonesia’s urban centres and transition test as its first Director core to the AXIS culture. a subscriber base comprising of Human Resources since • Currently No.3 in the Indonesian mainly digital-savvy Generation establishment, Wahyudin telco sector, it remains focused Y-ers. Adikusumah, is set to retire by the on entrenching its position end of 2014. Mr Adikusumah is in its niche segment through Currently, AXIS has more than credited as one of the key innovation, customer-centricity 70% population coverage in architects of setting the culture and packages tailored to the Indonesia, covering Java, Bali, for the company. Gen-Y market. Lombok, North Sumatra, West Sumatra and Riau. The company Understanding the AXIS culture achieved this by introducing a The company’s growth is depen- different approach in the market- dent on its ability to innovate. ing of its products and service Its strategy of transparency and offerings by being simple, easy- progressiveness when dealing to-understand and straight-for- with customers makes it a game- ward tariff plans. Their promise is changer in a market where to “to make it easy for customers business practices can be to get what they want, when they described as traditional and even want it.” staid.
2 Our Goal: Our Strategy: Campaign Idea: TO ATTRACT TO SHOW OFF NEW TALENTS To re-establish and OUR STRENGTHS Our achievements THE QUALITY reinforce AXIS as a & growth unique, innovative Our stakeholder and dynamic supports organization in order OF Our humane to attract motivated, factors creative, ambitious and hard-working Our emotional LIFE WITH A talents to grow approach together in AXIS in Our direct TWIST driving better business communication performance 1 AXIS’s employer value proposition in action“Our focus on innovation translates to a focus on our experienced candidates were typically frompeople. We hire and groom people whom we see as companies that were often diametrically differentbeing good fits with our company ethos and vision,” from AXIS in culture and practices.said Mr Adikusumah . He added, “This is one of the major reasons why weEstablishing employee loyalty hasn’t been a major decided to embark on this Employee Effectivenessproblem for AXIS – its turnover rates of three to five diagnostics project with Hay Group. Another pushpercent are one of the lowest in the region and factor was our commitment to business sustainability.possibly the lowest in Indonesia– but retaining the You cannot sustain market growth and capture mindbest people is. share without first cementing employee loyalty.”Mr Adikusumah also lamented the fact that many of “To do that, you need to put your money where yourthe company’s brightest and best were poached, par- mouth is. If you conduct an employee survey to getticularly in mid-career. This created a perennial opinion and comment on what is great about thehiring conundrum for AXIS. Replacing those mid- company and on what needs fixing, then you havecareer talent was not simple when the pool of to follow up with real action to improve what is good and fix what needs fixing.” “ Our focus on innovation translates to a focus on our people. We hire and groom people whom we see as being good fits with our company ethos and vision. “ Mr Wahyudin Adikusumah Director of Human resources, AXIS TELEKOM
3Bridging the generation gapAXIS is not alone in the recruitment generation-gap Not only must there be a Career Management System,challenge. By 2020, Indonesia will have the third fastest- there must be clear communications to employeesgrowing workforce in the world. The population will stand about the objectives, measurements and expectationsat 262 million, 60% of which will be living in cities. of them. Awards and recognition: be it a certificateAs such, the workplace in Indonesia is facing a generation- of appreciation or a restaurant voucher,al adjustment of values, learning and working styles that acknowledgement of good work must bewill have a huge impact on how leaders think and act. instantaneous and consistently delivered across theIn preparation for this seismic shift, what can companies organization.in Indonesia do to ensure continued growth? What are the Engage employees in discussions about theirgaps between employee expectations and our HR tools? career aspirations and development needs – today’sHow can these gaps be bridged? younger generation want an active hand in planningA Hay Group study, Managing across Generations in Indo- their future rather than being passive recipients ofnesia – Mind The Gap (February 2013), revealed interest- management’s will.ing insights on managing employees in Indonesia: The leadership skills of managers and the climate they generate are of paramount importance in motivating and retaining employees. Benefits are a very important motivating factor for all three generations, that is, the Baby Boomers, Generation X and Generation Y. This is a phenomenon seldom reported in other countries and seems to be a peculiarity of the Indonesian market. The reasons employees join a company are usually not the same reason for their leaving. With the exception of competitive pay, employees join a company because they are attracted to the employer brand or corporate reputation. However, once they are on board, competitive pay becomes a hygiene factor. The experience of the older generation is a valuable resource. Tap on their willingness to share and mentor their younger colleagues and companies will be assured that institutional knowledge is kept within their confines.“ This is one of the major reasons why we decided to embark on this Employee Effectiveness diagnostics project with Hay Group. Another push factor was our commitment to business sustainability. You cannot sustain market growth and capture mind share without first cementing employee loyalty.” Mr Wahyudin Adikusumah DIRECTOR OF HUMAN RESOURCES, AXIS TELEKOM
4Heart of the AXIS model: Commitment to changeHay Group developed a model for AXIS that realizes worth of implementation time and not every 12the full potential of its Employee Effectiveness value months as a matter of course.proposition: The reason for this is that action plans need time to Employee surveys give voice to employee opinion bear fruit. And it is only after results start to emerge and highlight the company’s strengths and that employees can give lucid comments on whether weaknesses; or not a plan has met its objective. Otherwise, Workshops attach accountability and ownership companies will run the risk of capturing the teething to the task of addressing issues to improve pains of executing a new initiative and not the results. company performance; 12-month implementation periods set Mr Adikusumah said, “This model suits us to a T benchmarks against which those action plans can because it crystallizes our commitment to regular self- be assessed. assessment and to our growth engine, which is getting people who innovate. This survey gives usFigure 1 charts the components of one cycle in the insight not only into how engaged our employeesmodel. AXIS will complete three of these cycles over a are feeling but also how tthey are being supported toperiod of about four years. succeed.”The approach that a company takes to engagement “We are not interested in conducting employeeand enablement is a major component of Hay Group’s surveys for the sake of it. When nothing is donevalue proposition. In the AXIS model, the second subsequent to the surveys, they become ansurvey was scheduled to take place after 12 months’ administrative chore and employees become disillusioned,” he added. Figure 1: Cycle of AXIS’s employee effectiveness diagnostics Employee survey • Strong internal communications to publicize survey • Survey framework customized to AXIS’ requirements for optimal capture of the employee voice • Survey form automated to flash on employees’ workstation screens on day of survey Workshops • Series of three workshops to implement action plans based on survey results: Implemention • Identify board sponsors for particular areas of improvement/action item; • All action plans communicated with • Each board sponsor to identify champion/ employees change manager and a supporting team to • Change management teams have 12 implement action item months to implement their action plans • Board sponsor together with change • Employee survey conducted again after manager and team members to share 12 months from implementation action plans with the entire change team, ie: other board sponsors and their change management teams.
5 Promoting employee effectiveness survey at Axis Telekom Desktop wallpaper on all employees’ computer screens during survey period Left: Posters and standing banners on all internal working areas during survey period Top: article in internal employee magazine“The transparency in this company isunconventional but refreshing and Iappreciate the fact that my opinion reallydoes matter.”tan ka fungGeneral manager, it ESS
6From insights to action plans to executionAXIS’ progressiveness as an employer in favor Mr Adikusumah said, “Thanks to this survey, weof openness and transparency had required know that we cannot let up on our efforts to trainsome employees to adjust, but the seemingly employees to do their jobs better. In addition, weunconventional strategy has paid dividends. need to continue building eomployees’ commitment to the company and what we do for our customers.To ensure that there is clarity, a strong internal For us, Hay Group’s emphasis on engagement andcommunications campaign was launched, explaining enablement has been the most powerful and realisticthe reasons for the survey and the motivation for the solution for us; it helps us to pinpoint and connectentire Effective Employee diagnostics process. As a employees’ feelings to corporate practices.”result, the survey achieved a 94% participation rateacross all departments. He added, “The level of transparency that we operate under assures employees that their opinions areThe survey results (Figure 2) highlighted that the important. The results have been put to practical usecompany was strong in managing performance, by the HR team; we are already working on improvingcollaboration and had a clear and promising direction, our training cycle as well as our communicationswhen compared to high-performing companies in tactics.”Indonesia. However, training and commitment to thecompany did not fare as well. Figure 2: A snapshot of effectiveness at AXIS. versus indicative norm Collaboration +13% Clear & promising direction +5% Quality & customer focus -2% Note: The questions asked in the survey were grouped into 16 Employee engagement -7% dimensions. To the right are all Performance management +4% dimensions listed, as well as the Authority & empowerment +1% comparison to high-performing (HP) companies. The HP comparison shows Resources 0% how AXIS exceeds the HP benchmark. Work, structure, process -1% Respect & recognition 0% Confidence in leadership -3% Training -11% Development opportunities 0% Pay & benefits 0% Employee enablement +2%“I like the teamwork and integrity betweendepartments. If we agree on something, then Iam always assured that it will be carried out tothe best of our abilities.”Octaviaregion sales manager, bali & Nusa tenggara
7Engaging and enabling employees for successMany organizations focus on the concept of employee engagement and with good reason. Continuous change andthe need to do more with less make it essential that employees are aligned with organizational objectives, and arewilling to contribute discretionary effort.But our research suggests that engaging employees alone is not sufficient to promote maximum individual andorganizational performance. To get the most from employees, leaders must not only motivate their employees butalso enable them to channel their extra efforts productively by providing the necessary support for success.Therefore the focus is shifted from employee engagement to effectiveness - Hay Group’s unique value proposition. Hay Group’s Total Effectiveness Framework n Clear and promising direction Confidence in leaders n n Quality and customer focus Engagement n Respect and recognition n Commitment n Development opportunities n Discretionary effort Financial success n Pay and benefits Drivers Employee Customer satisfaction effectiveness n Performance management Authority and empowerment Enablement n Employee performance n Resources n Training n Optimized roles n Collaboration n Supportive environment n Work, structure and process As Hay Group studies have shown, there is a significant financial benefit from ensuring employees are enabled Employee Employee Customer Financial performance retention satisfaction success Increase in employees above Customer Reduction in satisfaction peformance turnover rates Revenue growth expectations rates High engagement only 10% -40% 71% x2.5 High engagement + high enablement 50% -54% 89% x4.5 Based on linkage case studies using Hay Group’s global normative database “ This survey gives us insight not only into how engaged our employees are feeling but also how they are being supported to succeed.” Mr Wahyudin Adikusumah director of human resources AXIS TELEKOM
8 Looking ahead“ Team dynamics are AXIS’ senior management believes the “The results of the engagement study already very strong. employee effectiveness survey will are proof of the AXIS culture that This process of help them in the long run to bench- we have been nurturing for the past mark against Indonesia’s, even Asia’s, eight years; this is not something that developing action high-performing companies. They are happened overnight. What we have plans through confident that the Employee Effective- achieved is making sure that what we ness diagnostics project will keep the preach is actually implemented and workshops and that it is having the desired positive company’s dynamism levels high. communicating that effect on our employees. with all staff will no In future surveys, AXIS will continue to ask the same core questions so as to Our people are at the core of what we doubt encourage allow for year-on-year comparisons. The do. It is very important for them to be even more cross- leadership recognizes that, while it was effective; for them to be able to achieve, functional teamwork.” tough to get to the top, it is even for them to be creative, innovative and tougher to stay there! Mr Adikusumah enabled to deliver our brand promise to Purnama Gandapradja believes that this longitudinal view will our customers.” Senior Manager HR Services & Employee relations only benefit the company because “it will be the management’s report card, Putting it in place laid the foundation as submitted by the employees.” for sustainability in many aspects – retaining top talent, seamless business He commented that that Hay Group’s continuity grounded in employee Employee Effectiveness diagnostic loyalty regardless of who’s in charge, project validated the Board of Directors’ and continued development of the focus and efforts on creating a positive company’s growth engine of office culture. innovation. Want to know more about total employee effectiveness? Contact Nidthia Chelvam Managing Consultant e| Nidthia.Chelvam@haygroup.com About Hay Group Hay Group is a global management consulting firm that works with leaders to transform strategy into reality and to help people and organizations realize their potential. Visit www.haygroup.com/id.