Presented in Panel Discussion on “Revolusi Mental: Creating Shared Value in Public Sector for Sustainable Innovation and Development”, held by NIPA in cooperation with United In Diversity (UID) and Australia-Indonesia Partnership in Economic Governance (AIPEG) Dr. Tri Widodo W. Utomo, MA Deputy Chairman for Innovation National Institute of Public Administration (NIPA) Republic of Indonesia

1. Leadership Training as Shared-Value Creation
Process in Indonesia’s Public Service System
– Strengthening Curriculum for Change –
PEDULIINOVATIFINTEGRITAS PROFESIONALJakarta, June 1, 2016

2. Value & Value Creation …
“valoir” (Fr), means
“be worth”
VALUE
performing activities that
increases the value to
customers and to the
shareholders
VALUECREATION
Source:Source:Source:Source: Soumyalin Santy, Hina Sultana, Sumit
Parida, and Sradhanjali Behera. 2011, Value
Creation Through Mergers & Acquisitions.

3. The traditional view of value creation
(Prahalad & Ramaswamy, 2004, in Lorna Uden, “Co-creation of value in Innovation”)

4. Changing of Costumer Pattern & Its Implication
Active agents
Dialogue
Consumers as resources
Understanding experiences
Consumer knowledge
Passive buyers
Listening
Consumers as buyers
Researching need.
Reliance on experts.
MISSION DRIVEN PUBLIC SERVICES
o Led by target
o Inside out perspective
COSTUMER DRIVEN PUBLIC SERVICES
o Led by costumer’s need
o Outside in perspective

5. Leadership training (LT) as a paradigm shift
LT
Blue Ocean
Strategy
Red Ocean
Strategy
Creating and capturing new demand;
Breaking the value-cost trade off;
To see where you are and how you can
make a difference;
Creating competent leaders and new
values for stakeholders.
Exploiting & fulfil existing demand;
Making the value-cost trade off;
To see where you are and what you
need;
Providing competent leaders.

6. Paradigm shift works along the tool-box …
Adopted from Reinhold Rapp, “How to get out of here?”, Open
House of Innovation GmbH
ERASE
What factors should be
eliminated
RAISE
What factors should be
raised beyond the
organization’s standard?
REDUCE
What factors should be
reduced below the
organization’s standard?
What factors should be
created that the
organization has never
offered?
CREATE
6 Paths of CREATION:
Across organizations.
Across strategic groups;
Across the chain of
stakeholders;
Across complementary
offerings;
Across functional or
emotional appeal;
Across time and trends.

7. Value PropositionAlongtheTrainingPeriod
Leadership
training should
improve trainee’s
competency in
designing value
proposition
Strengthening
curriculum for LT
(1)
PostTrainingPeriod
Public officials have
to be able to define
their values,
understand the
characteristics of
costumer, and
comprehend the
way of delivering
values to the
costumer

8. Value proposition design

9. Characteristic of Leaders
CHANGE LEADERS
PHRONETIC
CHANGE LEADERS
o Effectively innovate
organization
o Successfully deliver new
values
Create change, innovate
organization, and deliver
new values in a
phronetic way …
Strengthening
curriculum for LT (2)

10. Phronetic “Change” Leaders
Ikujiro Nonaka, Knowledge Creating Company
ABILITIES KEY WORDS
Judge Goodness Personal Value, Belief, Relentless Pursuit
Grasp the Essence Empathy, Holistic Perspective, Hypothesis,
Create Shared Contexts “Ba”, Team Work, Mutual Learning
Communicate the Essence Narrative, Rhetoric, Dialogue
Exercise Political Power Dialectic, Coordination, Motivation, Demotion
Foster Practical Wisdom in
Others
Leadership Distribution, Mentoring

11. Conclusion
Improved
Public Service
Improved
Change &
Innovation
Improved
Leadership
Training

12. Thank You …
PEDULIINOVATIFINTEGRITAS PROFESIONAL