“Succession” must be Indonesia’s theme this year – and certainly for this month. Yet while most successful changes in leadership are celebrated, Indonesians have witnessed mutual finger-pointing and black campaigns with well-publicized successions just around the corne.
There has been front page news over the race for Bank Indonesia’s new governor and hot gossip at major corporations, organizations, institutions and at the national level.
It is no secret that nearing year’s end, everyone will be speculating on the second direct presidential election next year. From the beginning of this year we have seen successions at the helm of the powerful Corruption Eradication Committee (KPK), the top management in Bank Negara Indonesia (BNI) and the conglomerate Bakrie & Brothers.
Coming up are some super-successions, with not only a change in the governor of the central bank but also of the chairman of the Constitutional Court. Towards the end of the year the leaders of the Supreme Court will also end their terms. Even my small organization, HIPMI, composed of 25,000 young entrepreneurs, will select its new leader in July this year.
Thanks to its strict principle of one-term chairmanships, I can not re-elect myself and a new leader must emerge.These events are hyped and hectic, but we should try and learn from outgoing leaders and their successors. Fine examples of succession are rare in Indonesia.
From the days of former Presidents Sukarno and Suharto - the first and second leaders of the country - the transitional period has not a peaceful process, much less a story with a happy ending. Subsequent presidents went down similar unhappy paths.
In the past, it was possible to keep the bickering over most successions involving major state officials hidden behind a screen because of the authoritarian nature of our rulers. That was until reform arrived when Suharto was forced to step down. Now, such bickering is not only revealed, but magnified thanks to a free media, although with all this so-called freedom there is still not much more the public can learn.
So what is a good succession - and why have we as a nation seen so little of it?
Authority
Let’s begin with what a succession is not.
First, a succession is not merely about leaving what one has built in order to have it taken over by a new appointee. Rather, it is about believing that a brighter future is always possible when the authority is handed over to a capable and trustworthy individual no matter what changes he or she will make.
Second, a real succession is not about a senior passing the baton to a junior. Rather, it is about handing over what is already good to become even better.
Third, a succession is not about losing a position. Rather, it is about passing the mandate to lead to others for a better tomorrow.
Fourth, a real succession is not about giving up a title when there is a higher or more powerful one ready for the taking. Rather, it is about releasing authority when there are others better placed to do the job.
Fifth, a real succession is not about appointing a person who looks up to us. Rather, it is about preparing those who are crazy enough to identify our weaknesses and tell us to change course simply because they are concerned about what is better for the organization.
Sixth, a real succession is not so much about competition - it is about sharing the same vision.
Seventh, a real succession is full of celebration, not suspicion.
Salsa partners
Just like a couple in a perfect salsa dance, a real succession celebrates the outgoing leader, hails the incoming successor and places everyone in the organization, company or country, in perfect step.
Let’s learn from Pepsi Co, a company that has evolved through decades of very real and highly envied succession.
Fortune magazine recently amazed and entertained readers with one big question: “What Makes Pepsi Great?” This article featured Indra Nooyi – Pepsi’s first female Chief Executive Officer.
The answer turns out to be beyond the genius of Nooyi and much less about its highly successful soda-free beverage. Pepsi’s success is also much bigger than its well-planned acquisition of Quaker Oats and Tropicana.
And it has little to do with Pepsi’s billion-dollar shift to supporting worthwhile causes into the company’s operation and culture. The answer to Pepsi’s success goes back to three leaders before Nooyi and every period in between.
What makes Pepsi great is a built-in process of preparing and producing a better leader than the current one, a candidate always suitable and driven when the change takes place.
“She is larger than life,” says Roger Enrico, Nooyi’s predecessor. Getting comment from those who led the company before her is not difficult, since she has kept on three of them as respected elders and advisors. “They are my bosses, and my best, best friends,” says Nooyi.
And it is true. Nooyi calls her three seniors from time to time for real business advice and the three welcome her with genuine respect as Pepsi Co. grows bigger and better.
Imagine: three world-class CEOs being available at any one time, all operating with the same intensity as when they were still running the company.
Pepsi, unlike most companies of its size, not only produces leaders, it espouses leadership not as a hollow mantra but believes in it like breakfast, lunch and dinner. Choosing a leader The next million dollar question is: how to choose a successor?
There are many answers, depending on which business books you read. Most say that a great leader prepares his or her successor from day one. So, any time the clock ticks nearer retirement he or she is prepared to hand over the position.
This is not new. What is new is the reasoning behind it - a great leader pursues the best moment to hand off authority when there is a better person prepared to take the leadership role to the next level.
In other words, succession relies less on timing than the need of the organization, companies or countries. Certainly, a few potential successors are better than just one. The best successor will be the individual who shares the same vision and is able to interpret what is in the minds of consumers, investors, and other stakeholders.
Dave Ulrich and Norm Smallwood in their book, Leadership Brand, call this a “unique capability”. In Leadership Brand, a collection of individuals is developed with the long-lasting ability to accept every challenge with the same tenacity, intensity and authenticity.
This is exactly what brands like Pepsi, Coke and Apple have proven. So have local brands such as Mustika Ratu, Teh Botol or Sampoerna. Unfortunately, the same remarkable traits have been absent in members of our parliament and high-ranking state officials.
Choosing a Leader
We can see how the recent successions at KPK and Bank Indonesia were unnecessarily hyped by negative media campaigns and rumors. With such a politically driven succession process the public must question if succession will effect their life for the better. Such a process hardly installs a capable, let alone true leader.
Thankfully, modern Indonesians are far more empowered than those of the past – as consumers, investors or simply voters – and have the power to force a suitable succession when needed. They can do this especially well when their interests are at stake. With such awakening, we must understand that succession is at the core of every leadership.
I firmly believe that a weak leader with a well-meaning succession plan is still a true leader. On the other hand, a strong leader without a succession plan is like a screen saver.
I hope and pray that my own succession at HIPMI in another three months will be smooth and celebrated. I am blessed with so many young entrepreneurs capable of taking this organization from great to outstanding. I hope that my task of grooming several smart successors will be successfully completed when the time comes.
Indonesia has seen very few exemplary successions because Indonesians choose to make them difficult. Once again, succession is like a beautiful dance: It takes two to tango.
By Sandiaga Uno
Source : Globe Asia, April 2008
There has been front page news over the race for Bank Indonesia’s new governor and hot gossip at major corporations, organizations, institutions and at the national level.
It is no secret that nearing year’s end, everyone will be speculating on the second direct presidential election next year. From the beginning of this year we have seen successions at the helm of the powerful Corruption Eradication Committee (KPK), the top management in Bank Negara Indonesia (BNI) and the conglomerate Bakrie & Brothers.
Coming up are some super-successions, with not only a change in the governor of the central bank but also of the chairman of the Constitutional Court. Towards the end of the year the leaders of the Supreme Court will also end their terms. Even my small organization, HIPMI, composed of 25,000 young entrepreneurs, will select its new leader in July this year.
Thanks to its strict principle of one-term chairmanships, I can not re-elect myself and a new leader must emerge.These events are hyped and hectic, but we should try and learn from outgoing leaders and their successors. Fine examples of succession are rare in Indonesia.
From the days of former Presidents Sukarno and Suharto - the first and second leaders of the country - the transitional period has not a peaceful process, much less a story with a happy ending. Subsequent presidents went down similar unhappy paths.
In the past, it was possible to keep the bickering over most successions involving major state officials hidden behind a screen because of the authoritarian nature of our rulers. That was until reform arrived when Suharto was forced to step down. Now, such bickering is not only revealed, but magnified thanks to a free media, although with all this so-called freedom there is still not much more the public can learn.
So what is a good succession - and why have we as a nation seen so little of it?
Authority
Let’s begin with what a succession is not.
First, a succession is not merely about leaving what one has built in order to have it taken over by a new appointee. Rather, it is about believing that a brighter future is always possible when the authority is handed over to a capable and trustworthy individual no matter what changes he or she will make.
Second, a real succession is not about a senior passing the baton to a junior. Rather, it is about handing over what is already good to become even better.
Third, a succession is not about losing a position. Rather, it is about passing the mandate to lead to others for a better tomorrow.
Fourth, a real succession is not about giving up a title when there is a higher or more powerful one ready for the taking. Rather, it is about releasing authority when there are others better placed to do the job.
Fifth, a real succession is not about appointing a person who looks up to us. Rather, it is about preparing those who are crazy enough to identify our weaknesses and tell us to change course simply because they are concerned about what is better for the organization.
Sixth, a real succession is not so much about competition - it is about sharing the same vision.
Seventh, a real succession is full of celebration, not suspicion.
Salsa partners
Just like a couple in a perfect salsa dance, a real succession celebrates the outgoing leader, hails the incoming successor and places everyone in the organization, company or country, in perfect step.
Let’s learn from Pepsi Co, a company that has evolved through decades of very real and highly envied succession.
Fortune magazine recently amazed and entertained readers with one big question: “What Makes Pepsi Great?” This article featured Indra Nooyi – Pepsi’s first female Chief Executive Officer.
The answer turns out to be beyond the genius of Nooyi and much less about its highly successful soda-free beverage. Pepsi’s success is also much bigger than its well-planned acquisition of Quaker Oats and Tropicana.
And it has little to do with Pepsi’s billion-dollar shift to supporting worthwhile causes into the company’s operation and culture. The answer to Pepsi’s success goes back to three leaders before Nooyi and every period in between.
What makes Pepsi great is a built-in process of preparing and producing a better leader than the current one, a candidate always suitable and driven when the change takes place.
“She is larger than life,” says Roger Enrico, Nooyi’s predecessor. Getting comment from those who led the company before her is not difficult, since she has kept on three of them as respected elders and advisors. “They are my bosses, and my best, best friends,” says Nooyi.
And it is true. Nooyi calls her three seniors from time to time for real business advice and the three welcome her with genuine respect as Pepsi Co. grows bigger and better.
Imagine: three world-class CEOs being available at any one time, all operating with the same intensity as when they were still running the company.
Pepsi, unlike most companies of its size, not only produces leaders, it espouses leadership not as a hollow mantra but believes in it like breakfast, lunch and dinner. Choosing a leader The next million dollar question is: how to choose a successor?
There are many answers, depending on which business books you read. Most say that a great leader prepares his or her successor from day one. So, any time the clock ticks nearer retirement he or she is prepared to hand over the position.
This is not new. What is new is the reasoning behind it - a great leader pursues the best moment to hand off authority when there is a better person prepared to take the leadership role to the next level.
In other words, succession relies less on timing than the need of the organization, companies or countries. Certainly, a few potential successors are better than just one. The best successor will be the individual who shares the same vision and is able to interpret what is in the minds of consumers, investors, and other stakeholders.
Dave Ulrich and Norm Smallwood in their book, Leadership Brand, call this a “unique capability”. In Leadership Brand, a collection of individuals is developed with the long-lasting ability to accept every challenge with the same tenacity, intensity and authenticity.
This is exactly what brands like Pepsi, Coke and Apple have proven. So have local brands such as Mustika Ratu, Teh Botol or Sampoerna. Unfortunately, the same remarkable traits have been absent in members of our parliament and high-ranking state officials.
Choosing a Leader
We can see how the recent successions at KPK and Bank Indonesia were unnecessarily hyped by negative media campaigns and rumors. With such a politically driven succession process the public must question if succession will effect their life for the better. Such a process hardly installs a capable, let alone true leader.
Thankfully, modern Indonesians are far more empowered than those of the past – as consumers, investors or simply voters – and have the power to force a suitable succession when needed. They can do this especially well when their interests are at stake. With such awakening, we must understand that succession is at the core of every leadership.
I firmly believe that a weak leader with a well-meaning succession plan is still a true leader. On the other hand, a strong leader without a succession plan is like a screen saver.
I hope and pray that my own succession at HIPMI in another three months will be smooth and celebrated. I am blessed with so many young entrepreneurs capable of taking this organization from great to outstanding. I hope that my task of grooming several smart successors will be successfully completed when the time comes.
Indonesia has seen very few exemplary successions because Indonesians choose to make them difficult. Once again, succession is like a beautiful dance: It takes two to tango.
By Sandiaga Uno
Source : Globe Asia, April 2008
1 comment:
I really admire Indra Nooyi for her success at Pepsi and also her commitment to reducing the company's impact on the environment. She was also in Time's 100 most power people.
http://www.time.com/time/specials/2007/time100/article/0,28804,1595326_1615737_1615996,00.html
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