Manage Talent for Growth 3 February 2018

Manage Talent for Growth
Case Study at PT Sierad Produce, Tbk
EMBA Class of PGN, IPMI International Business School, 3 February 2018
Prepared by Yunus Triyonggo, PhD.

Yunus Triyonggo
S-1 Teknologi Industri Pertanian IPB
S-2 Magister Management UNDIP
S-3 Sekolah Bisnis IPB
HR Trainee – Manager : PT Indofood Sukses Makmur, Tbk. (9 years)
Personnel & GA Manager : PT HM Sampoerna, Tbk. (1 year)
HRBP : PT Unilever Indonesia, Tbk (8 years)
VP HR : PT Nestle Indonesia (2 years)
Chief of Human Capital Development : PT Sierad Produce, Tbk (until now)
Organisasi:
- Dewan Pakar PMSM 2016-2019
- Pendiri LSP MSDM Indonesia
- Ketua Umum Indonesia Human Resources Institute (IndHRI)
- Wakil Ketua Komtap Standarisasi Kompetensi Ketenagakerjaan Kadin

Hobbies : tenis meja, jogging


Agenda
 Poultry business opportunity
 Our Story – Sierad Produce
 Talent Management at Sierad

Poultry business opportunity

4

Poultry is the fastest growing animal protein...

Millions of tonnes

Global production of beef, fish, pork and poultry
450

Change
1960-2009


9.7 x

400
350

Poultry

300

4.7 x
Pork

250
200

3.9 x
150

Fish
100

50

Beef
0
1960

1970

1980

1990

Source: FAO

2000

2.3 x

Indonesian should consume more Chicken & Egg


40
30
20
10
0

Broiler Consumption
(kg/capita/year)

Consumption per capita
36
28

16
7
Indonesia

8
Philipines


Thailand

Singapore

Malaysia

Egg Consumption
(egg/capita/year)

400
300

0,3 Bird/
Month
OR
1 bird /
3 months

3 birds /
month


Consumption per capita
304

311

200
100

64

87

1,6 egg/
WEEK

93

1 egg/
DAY


0
Singapore

Indonesia

Thailand

China

Malaysia

Source : BPS

DOC & Feed are steadily growing
In Mio Birds

National DOC (Broiler) Production

3000

2500

2500

2000

2200
2000

1500

1700
1274

1000
500

717

0

97

832

885

01

02

1027

977

03

04

1120


1250

1300

07

08

1400

1470

09

10

650
359

414


98

99

00

In Mio Tons

05

06

11

12

13

National Feed Consumption

16,000
14,000

15,00
13,80

12,000

12,70

10,000

10,66

8,000
6,000

14

6,50

4,000

5,00

4,80

5,75

6,50

7,20

03

7,20

7,60

6,80

7,10

04

05

06

07

8,13

8,13

08

09

11,20

3,70

2,000

2,60

0,000
96

97

98

99

00

01

02

10

11

12

13

14

Sierad Produce

We are in the business of
providing an essential nutrition for
the development of better
generation of Indonesia

Further Processed Foods in the future...
Today in USA, further
processing accounts
for 60% of the value

Projection of
Indonesia’s
current state

50 years ago in
USA, whole birds
accounted for 83%
of the value

Source: Marrel Townsend

Evolution of Foods Industry in the USA
The trend is happening is much shorter period of time in Indonesia

Source: Goldman Sachs

Market: Poultry value chain is broken into six key steps

DESCRIPTION

Feed

DOC

 Poultry feed
with
engineered
diet from corn,
soybean,
nutritional
additives
 Comes in
mash,
crumble &
pellet
forms

• Broiler feed

TYPICAL
PRODUCTS

S • Layer feed
LT
A C • Other feed
CU
(e.g., Breeder
I
D P
feed)
O
YR
T
P • Does not

Broilers

Slaughter-

Further

house

Processed

 One day
old broiler
and layer
chicks
produced at
breeder
farms and
hatcheries

 Broilers are
chicken bred
for meat
production in
commercial
broiler farms

 Broiler
chicken
slaughtered
and
packaged in
modern SHs

 DOC grown to
market weight
and sold as live
birds to
General Trade
or Modern SHs

 Sold as
fresh,
chilled or
frozen

• Broiler DOCs

• Live birds sold
to traditional
market

• Fresh/froz
en chicken
from SH

• Layer DOCs

• Live birds sold
to Modern
slaughterhouses

 Processed
chicken
produced in
processing
plants
 Sold as
packed,
frozen, precooked or
ready-to-eat
meals

• Further
processed
poultry
- Frozen
processed
(e.g.
Nuggets)

include
nonpoultry feed

Source: Company management presentations, Analyst reports (JP
Morgan, Maybank, Credit Suisse), Industry practitioner interviews,
Bain experience

Pre-cooked
Ready to
eat meals

Eggs

 Eggs
produced by
layer
birds in
commerci
al layer
farms

• Commer
cial eggs

Sierad Produce, Our Stories

Sierad Produce Milestones
2011

2009

Acquisition
Of Belfoods
Indonesia

Retail Food Business

2001
1985
Incorporated in
6 Sept 1985
(as a subsidiary of
PT Anwar Sierad
Tbk ,incorporated
in 1981)

Parent-subsidiaries merger
(internal merger)

1997
1993
Jabon
Slaughterhouse built

1996
Listed in JSX, Dec 27th

Further Processed Food
Established

July 2014
Acquired by GS Group

Sierad Produce Supply Chain

Out of Sierad operation
Owned by Sierad

Free market

Free market
Super/
hyper market

Consumer

Feedmill

Balaraja, Tangerang Plant & Sidoarjo-East Java Plant

Breeding

Sukabumi, Bogor & Lamongan Farms
16

Hatchery

Sukabumi & Lamongan Hatchery Plants

Commercial
Farm

Sukabumi, Cianjur, Tangerang, Bogor Commercial
Farms

Slaughterhouse

Bogor & Mojokerto Slaughterhouses

Food Processing

Bogor Further Processing Plant

Talent Management

Talent & Business

Telent Readiness

Future

Current

• How looks like? • New profiles?
• Talent war?
• Availability?
• New technology?
• Is it sufficient?
• New animal disease?

Gaps?

• Feed sales volume double in
2020
• Farming keeps steady
• Foods triple in 2020
• Better margin portfolio
• New further processed foods
innovations

Business Strategy
Specific Organizational & Talent Implications of Strategy
1. Build Customer Centricity
and strengthen the Sales
& Marketing capability in
the Foods and Feed
organization to innovate
and boost significant
growth of differentiated
profitable products by
creating the high
performance culture and
providing competent
team.

Business Strategy
Specific Organizational & Talent Implications of Strategy
2. Build an international
standard innovation
team that will create
trending, attractive
and affordable
products aligned to
the changing life style
needs of consumer
by forming responsive
and reliable Foods
R&D team.

Business Strategy
Specific Organizational & Talent Implications of Strategy
3. Create a One-Sierad thinking within the organization by busting
the silo mentality and creating a working system that
encourages close interdepartmental collaboration.

Business Strategy
Specific Organizational & Talent Implications of Strategy
4. Enhance Poultry
operation efficiency
and supply high
quality live birds to the
Foods Division with
emphasis on
traceability and foods
safety to align with
international standard
by creating Quality
Mindset.

2 main parameters in Talent Development
• Mission Critical Roles (MCR)/ Hot Job
• Top Talent/ Asset/ Hipo (High Potential)

27

Mission Critical Roles (MCR)/ Hot Job Definition







Makes a significant contribution to NPS
Significantly impact to Growth & Innovation
Technical complexity
Has key interface or decision making responsibility/ authority
Critical to growing SIPD capability as a business
A position where significantly more to talent would enhance
the business model
• A position where variability in performance of the job holder
significantly impacts on the success of the business.
Normally the Hot Jobs is ¼ from the total Job Titles

28

Matriks Kategori Talent (MKT)

Kesinambungan Kinerja
(Apa dan Bagaimana)

Tinggi

Sumber Daya
(1/3)

Potensi Tinggi
(2/3)

Bintang

Sumber daya
(1/2)

Sumber Daya
(2/2)

Potensi Tinggi
(3/2)

Perlu Perhatian
(1/1)

Perlu Perhatian
(2/1)

Berpotensi
(3/1)

Rendah
Rendah

----------------- Potensi Talent ----------------

Tinggi

Organizational Structure Mapping 2017
Chief Executive Officer
Budi Santosa, 53

HR Director
Edy Sembada, 50

SBU Feed Director
Edward T, 47

SBU Farming Dir
Samsir S, 51

SBU Foods Director
Markus K, 45

Chief Fin. Officer
Endang S, 52

HRBP Poultry
Udianto, 42

Feed Operation
Ronald, 42

Breeding
Mahmud, 46

Head of Sales
Vacant

Corp Fin Contr.
Steven, 40

HRBP Foods
Agus H, 43

Feed Sales
Dondi, 45

Hatchery
Hidayat, 58

Head of Mkt
Wiryo S, 42

Corp Treasury
Sumarni, 50

Quality Impr.
Suparno, 50

Feed Tech
Masgi M, 59

Commercial
Sumardi, 52

Head of RPA
Bagas D, 54

Foods Div Contr
Grace, 34

Poultry Health
Heru AP, 60

Head of Mfg
Sukamto, 52

Feed Div Contr
Fabiola, 39

Live Bird Sales
Haris, 52

Head of R&D
Vacant

Head of IT
Deden P., 41

Color Code
Red Box
- 56 and up in age
Yellow Box - 50 -55 in age
Green Box
- Below 50 in age
Blue Background - MCR

Purchasing Dir
Wahyu S, 58

Commodity
Procurement
Vacant
Gen Purch.
Agnes, 50
MEP Puch.
Samsul, 49
Exim
Vacant

Head of CCC
Tatang, 54
Strat Perf Mgt
Vacant
Strictly Confidential

Performance Against Values
Senior Manager Level
Randy

Santoso

EE

Bambang

Performance

Dondi
Hasbi Iqbal

Sahrul G.

Agus H.
Susana

Sudihanto
Hidayat
Tampubolon

Rasuna Said
Udin

CME

Indra Widjaja
Imam

Tari

Virnawati
Hasto P
Sudarnoto

Dirgantara
Maman A.

DN

Dondi Samsir

DN
Too soon: Andrew T.

Adi Sulkan

CME

Nonik

Grace
Barurohim
Nina
M. Irwansyah
Adi Santosa

Sanusi H.
Mahmud

EE

Values
Strictly Confidential

31

Suggested Action Plans
consistently exceeding
agreed individual
business targets

•Recognise and reward
•Provide feedback
•Mentor/coach to improve
Leadership
•Acknowledge contribution

WHAT

Inconsistent in meeting
agreed individual
business targets

•Specific goals &
objectives

•Set clear Milestones
•Provide feedback
•Coach Monitor/track
•Decision to continue
or end employment
Inconsistent in
meeting
expectations

Recognise and reward
•Challenge/stretch
•Expose
•Coach

•Reward
•Milestones
• Provide feedback
•Training
•Coach to improve
delivery

Potential
Capacity

Consistently
exceeding
expectations

Success Plan – Foods Division
Name
: Edward Tanudjaja
Current Position : Head of Warehouse & CS (2012-16) Education
Previous Position: Logistic Manager

: S1 Management STIE Jakarta

Assessment Summary: Sudarno has a well-rounded experience in warehousing management and just last year was
exposed to handle the customer service roles. His track record in finished goods warehousing and managing the products
delivery to customer led to significant improvement in service level up to 98%. He needs to be exposed also in factory
operations or sales as an options of his career development.

Possible Target Positions within two years:
National Sales Manager
Factory Manager

Performance Rating:
2014 : A
2016: A
2015: B+
2017: A

SUCCESS PLAN for Edward Tanudjaja
Key Strengths
1
Knowledge

2
Experience

3
Competencies

4

Personal
Attributes

Development Needed

Intervention Plan

• Strong knowledge in
warehouse & logistics
management.

• Knowledge of Sales and
marketing.

• Attend training on Sales &
Marketing.

• Implementation of good
warehousing management
and customer services.

• Lack of experience in Day-today Factory Operations.

• Attend the monthly meetings in
Factory. (Q1 2016)
• Reassign to Factory as Factory
Director(Q4 2016)

• Planning and Organizing
skills.
• Operational Decision Making

• Leadership skills development
– use more coaching than
directing.

• Enlarge leadership
responsibilities by asking him to
lead a cross-functional work
team.
• (Q2 2016)

• Adapts to new challenges
well
• Positive in orientation

• Could be highly opinionated
that tend to push people away.

• Assign a BU CEO as mentor
• (Q1 2016)

Why Talent Day ?
• Sierad has commitment to double the feed and triple foods sales

• Talent Readiness is the key of success
• Talent Development as strategic approach
• Leader’s commitment to spend time on people
• Talent Day  Talent Calibration, Development, and
Succession Planning
• Done by Line Managers, facilitated by HR Business Partner

When : Twice a year
March
Why

Prepare to April adj.

Scope

Manager to Sr Manager

Aim

Output

September
Prepare to October adj.
GM - up

Make it more visible

Calibrate, review the dev.
and successor

Talent List and
their Development

Talent Calibration, Dev.
and Succession Plan

Talent Development

2/3/2018

36

Succession Plan

Talent Management Program 2018
Goals: Strengthen the Feed & Foods Sales team & Foods R&D to support the business growth (to be
1.000 tons Foods/month, and achieve 34% Feed volume growth)

RECRUITMENT
(BUY/ RENT)

DEVELOPMENT
(BUILD)

• Feed: Senior Nutritionist
• Farming: 2nd layer Head of
Breeding, Head of
Hatchery
• Foods: Sales Head, R&D
Head, Regional Sales
Manager, Key Account
Manager

• Total assessment of Foods Sales Team;
Competency-based learning program
• Build Customer Intimacy Culture for Feed
and Foods Sales Team
• Start Sierad LEAD Program
• Develop internal candidates for Head of
Feed Sales, Head of Commercial Farm,
Head of Poultry Health

RETENTION
(KEEP)
• General Management
Training for ETs
• Provide stretching
assignment for TTs
• Focus on productivity
incentive schemes

TALENT MANAGEMENT INITIATIVES 2017
1. Accelerate hiring process

2. Conduct Talent profile mapping and
robust capability building program
especially for Sales Team

3. Provide stretching
assignment for TTs
and development
program for ETs

Talent Readiness Assessment Chart

No. of Talent based on
readiness for promotion

Grade

Total
No. of Talent

2 yr

1 yr

Now

Director

4

0

2

0

Ass. Director

2

1

1

0

Sr. Manager

7

3

1

0

Manager

5

4

3

0

Jr. Manager

10

5

2

3

EMERGING TALENT Spv/Officer

7

4

2

1

Sr. Staff

0

0

0

0

Staff

0

0

0

0

17

11

4

TOP TALENT

Total 35