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The 4 Disciplines of Execution "Operating System" Supporting Transformation of Bank Mandiri

Saturday, 8 October 2011

 

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Oleh : Roza Sibarani/Dunamis FranklinCovey


As one of the leading banks in Indonesia, Bank Mandiri constantly strives to enhance its performance. One of the strategic initiatives known as Human Capital Transformation was launched under the acceleration program - Human Capital Value Creation that was announced in 2009. To support this transformation process, the 4 Disciplines of Execution (4DX) methodology was selected to build a culture of execution in the organization of Bank Mandiri.

The 4DX methodology that was applied in Bank Mandiri was the Manager Certification Process which included the following stages:
1. Pre Consult: During this stage the three most important goals at the corporate level or Wildly Important Goals (WIGs) were determined and the Execution Quotient (xQ) Survey, which measured the organization's capability to perform the execution was carried out
2. Manager Work Session: During this session, the team unit WIGs were examined for the "line- of-sight" or alignment to the corporate WIGs. Lead Measure or the activities of the major drivers to the attainment of the team unit WIGs were also defined in this workshop

3. Team Work Session: The team leaders as sponsors of this session finalised the team unit WIGs, Lead Measures and created the scoreboard with their respective teams. By having been involved in the process, the team members became more committed to the goals defined
4. The 4DX implementation process focused on working on the activities of the major drivers and the status of attainment was reviewed every week at the WIGs Session. During this process, the Dunamis Consultant Team conducted regular Coaching for each Work Unit

At the end of the process, the second xQ survey was initiated.

Although it was a Pilot Project, the achievement of the Batch 1 was extraordinary, 5 Group Heads were awarded the Gold Certificate with the achievement as follows:
1. Agro-Based Groups: The volume of credit increased 108 %
2. Group International Banking & Capital Market Services: All WIGs & Lead Measure achieved > 100 %
3. Credit Recovery Group 2: Workout increased 163.5% and Billing 'ekstraakuntabel' loans increased 114.4 %
4. Group Retail & Consumer Risk Management: Net Profit Lost (NPL) decreased significantly from 2.73% to 2.43 %
5. Group Jakarta Commercial Sales: Controlling the NPL from 3.54% to 2.5% and the number of partners increased 183 %

In Batch 2, 21 Head of Regional Office and Group Head were awarded a Gold Certificate for successfully achieving a WIG (Wildly Important Goal). Among them was an achievement by the Central Operations Group who successfully perform at efficiency of Rp 11.16 billion or reach 197.17 % of target.

Achievement in both the first and second batch impact significantly the enhancement of organizational performance. With the launch of the third batch, then the performance of Bank Mandiri is expected to be increased according to the potential that exists.


http://tgblogsite.com/adminlrm/2011/08/10/a-case-study-from-bank-mandiri/