MM UKM - Bandung 12 Dec 2014 “Business Environment” Session.

MM UKM - Bandung12 Dec 2014

““Business EnvironmentBusiness Environment” Session ” Session

BUILDING STANDARD AND ENHANCE NEW CULTUREBUILDING STANDARD AND ENHANCE NEW CULTURE

Brief Facilitator’s ResumeBrief Facilitator’s Resume

Tony Silitonga has been working for more than twenty five (25) years in different countries, different industries, with different multinationals, such as: IBM, Atlantic Richfield Oil & Gas Company (Indonesia), Standard Chartered Bank (Philippines), Merrill Lynch (USA), China Development Corporation (Taiwan), Indonesian Bank Resructuring Agency (IBRA), and IICD (Indonesian Institute for Corporate Directorship).

He is a member founder of Indonesian Finance Association (IFA), FORESPECT and TRS (Total Recovery Strategist).

Graduated from Bandung Institute of Technology major in Petroleum Engineering, he has got his Master in Business Management (MBM) majoring in Finance and Strategic Management from Asian Institute of Management (AIM), Makati (Philippines), and MBA from Columbia Business School (CBS), New York (USA) Finance-Exchange scholars’ program. Recently, he is finalizing his Dissertation for Doctorate in Business Administration (DBA) from De LaSalle University – Manila (Philippines), major in Finance, Strategic Management, and Good Corporate Governance.

He also serves as Director of Total Recovery Strategist (TRS), Chairman of The Board of Management of FORESPECT, BOD member of Indonesian Institute for Corporate Directorship (IICD, and BOD Member of SPA (Sentra Pemimpin Asia). TRS was founded by Professionals, SOE experts, Corporate Raiders, Entrepreneurs, and Top Ranking Navy who have experienced for more than 25 years within different multinationals, and local corporations, and SOE in different combat areas across the continents. Partners with investment bankers and capital market experts on corporate finance and capital structure analyses, TRS has the ability to combine the innovative, perceptive and holistic insights of a designer with the pragmatic and systemic skills of a planner to guide strategic direction in context of business needs, brand intent, design quality and customer values. TRS create a sustainable commercial advantage by applying innovative and quantitative ideas and systems at a sell side of financial institution. TRS envisions to work together with SOEs, Corporations and Government in their Strategic Planning, as well Strategic Execution on Strategic Restructuring, Strategic Change, Pre-IPO Strategic Design locally, regionally and Globally.

Selected Advisories:Selected Advisories:

Selected Hands-on Selected Hands-on Consultancies:Consultancies:STANDARD CHARTERED BANK, The PhilippinesMERRILL LYNCH, New York, USASTERLING TRANSTRADE, Manila, The PhilippinesDRUGSTORE, INC., Manila, The PhilippinesELNUSA HOLDING CO., Jakarta, IndonesiaGLOBAL FOREST, INC., SingaporeVISEAN ONLINE PTY LTD, Richmond, VIC, AustraliaGRANSTAR MOTOR, Manila, The PhilippinesPT.INHUTANI I, II, III, IV and V Jakarta, IndonesiaTHE WORLDBANK - GICS Implementation based on PP 60/2008 at BPKP

Bagaimana CaranyaBagaimana CaranyaUntuk Selamat bahkan SUKSES ????

Munculnya Negara- Negara

PPORTUGAL

IITALY

GGREECE/YUNANI

SSPAIN/SPANYOL

BBRAZILRAZILRRUSIAUSIAIINDIA /NDIA /IINDONESIANDONESIA

CCHINAHINAKKOREAOREAssingaporeingapore

Lessons on LEADERSHIP

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Are You Ready inAre You Ready in“WINNING The GLOBAL MOMENTUM” ?

The Recent Findings?The Recent Findings?

What Did They Say on Valuation?

CATEGORIES OF INTANGIBLE ASSETCATEGORIES OF INTANGIBLE ASSET

MARKETING-RELATED INTANGIBLE ASSETS: Trademarks, Trade Names, Service marks, Collective marks, Certification marks, Trade dress (unique color, shape, or package

design), Newspaper mastheads, Internet domain names and Noncompetition agreements.

CUSTOMER-RELATED INTANGIBLE ASSETS: Customer lists, Order or production backlog, Customer contracts and related customer relationships and Non-contractual customer

relationships.ARTISTIC-RELATED INTANGIBLE ASSETS: Plays, Operas, Ballets ,Books, Magazines, Newspapers, other literary works ,Musical works such as compositions, Song lyrics, Advertising jingles, Pictures, photographs, Video and audiovisual material, including

motion pictures, Music videos, and television ProgramsCONTRACT-BASED INTANGIBLE ASSETS: Licensing, Royalty, Standstill agreements,

Advertising, construction, Management, Service or supply contracts, Lease agreements, Construction permits, Franchise agreements, Operating and broadcast rights, Use rights

such as drilling, water, air, mineral, timber cutting, Servicing contracts such as mortgage servicing contracts and Employment contracts.

TECHNOLOGY-BASED INTANGIBLE ASSETS: Patented technology, Computer software and mask works, unpatented technology, Databases, including title plants and Trade secrets,

such as secret formulas, processes, recipes. Specifically intangible assets may be defined as:

NATURALRESOURCES

TECHNOLOGY

LEGALPOLITICAL

ECONOMIC

SOCIAL

NEW ENTRANTS

SUBSTITUTE

SUPPLIER RIVALRYBUYER

What is Corporate Governance ?What is Corporate Governance ?“Grandfather” of Corporate Governance Definitionsof Corporate Governance Definitions

Corporate governance Corporate governance is the system is the system by which business corporations are by which business corporations are directed directed and and controlledcontrolled..

The corporate governance structure The corporate governance structure specifies the specifies the distribution of rights distribution of rights and responsibilities and responsibilities among among different participants in the different participants in the corporation, such as, the board, corporation, such as, the board, managers, shareholders and other managers, shareholders and other stakeholders, and spells out the stakeholders, and spells out the rules and procedures for making rules and procedures for making decisions decisions on corporate affairs.on corporate affairs.

By doing this, it also provides the By doing this, it also provides the structure through which the structure through which the company company objectives are setobjectives are set, and , and the means of attaining those the means of attaining those objectives and objectives and monitoring monitoring performanceperformance..

Attributed to: Attributed to: OECD Principles of Corporate OECD Principles of Corporate

GovernanceGovernance, 1999 (revised 2004), 1999 (revised 2004)

Good corporate governance is key to the integrity of corporations, financial institutions and markets, and central to the health of our economies and their stability.


The OECD Principles are organised The OECD Principles are organised into into SIX (6) SIX (6) broad categories:broad categories:

1.1.EEnsuring the basis for an effective nsuring the basis for an effective corporate governance frameworkcorporate governance framework

2.2.RRights of shareholders and key ights of shareholders and key ownership functionsownership functions

3.3.EEquitable treatment of shareholdersquitable treatment of shareholders

4.4.RRole of stakeholdersole of stakeholders

5.5.RResponsibilities of the boardesponsibilities of the board

6.6.DDisclosure and transparencyisclosure and transparency

GOOD CORPORATE GOVERNANCEGOOD CORPORATE GOVERNANCE = = VALUESVALUES


Key Implementation Success ??Key Implementation Success ??



The SOEs Guidelines presented in The SOEs Guidelines presented in the document cover the following the document cover the following areas:areas:

1.1.TThe Ehe Equitable Treatment of quitable Treatment of ShareholdersShareholders

2.2.SState Acting as an Ownertate Acting as an Owner; ;

3.3.EEnsuring an Effective Legal and nsuring an Effective Legal and Regulatory Framework for Regulatory Framework for State-State-Owned EnterprisesOwned Enterprises; ;

4.4.RRelations with Stakeholders; elations with Stakeholders;

5.5.RResponsibilities of Boards of State-esponsibilities of Boards of State-Owned Enterprises.Owned Enterprises.

6.6.DDisclosure and Transparency; isclosure and Transparency; 2005


Priorities for Reforming Incentives in Priorities for Reforming Incentives in CRISISCRISIS in The Financial Markets : in The Financial Markets :

1.1.SStrengthen the regulatory framework trengthen the regulatory framework

2.2.SStrengthen capital adequacy rulestrengthen capital adequacy rules

3.3.SStrengthen understanding of how tax trengthen understanding of how tax policies affect the soundness of policies affect the soundness of financial marketsfinancial markets

4.4.FFocus on integrity and transparency ocus on integrity and transparency in financial marketsin financial markets

5.5.EEnsure accountability to owners nsure accountability to owners whose capital is at riskwhose capital is at risk

6.6.CCorporate structures for complex orporate structures for complex financial firmsfinancial firms

7.7.SStrengthening financial education trengthening financial education programmes and consumer protectionprogrammes and consumer protection

2009


OECD Guidelines for OECD Guidelines for Multinational Multinational EnterprisesEnterprises - Recommendations for - Recommendations for responsible business conduct in a responsible business conduct in a global contextglobal context

1.1. GGeneral Policies eneral Policies

2.2. DDisclosure Policiesisclosure Policies

3.3. TTaxation axation

4.4. HHuman Rights uman Rights

5.5. EEmployment and Industrial Relationsmployment and Industrial Relations

6.6. SScience and Technologycience and Technology

7.7. EEnvironment nvironment

8.8. CCombating Bribery, Bribe Solicitation ombating Bribery, Bribe Solicitation and Extortionand Extortion

9.9. CConsumer Interestsonsumer Interests

10.10.CCompetitionompetition2005

What is What is NACD NACD Model for Excellence Model for Excellence ininCorporate Governance Corporate Governance ??

NATURALRESOURCES

TECHNOLOGY

LEGALPOLITICAL

ECONOMIC

SOCIAL

NEW ENTRANTS

SUBSTITUTE

SUPPLIER RIVALRYBUYER

GOVERNANCE, RISK, &

COMPLIANCE

GOVERNANCE, ETHICS, &

OPERATION

OECD - www.oecd.org/dataoecd/32/18/31557724.pdfBAPEPAM RI - Prinsip-prinsip Oecd 2004 Mengenai Corporate Governance - BAPEPAM RI - Prinsip-prinsip Oecd 2004 Mengenai Corporate Governance - www.bapepam.go.id/pasar_modal/publikasi_pm/kajian_pm/studi-2006/Studiwww.bapepam.go.id/pasar_modal/publikasi_pm/kajian_pm/studi-2006/Studi-Penerapan-OECD.pdf-Penerapan-OECD.pdf

Corporate Governance Corporate Governance PrinciplesPrinciples

which was written by which was written by the the ASXASX Corporate Corporate Governance Council Governance Council (2003), based on the (2003), based on the

OECD (1999) corporate OECD (1999) corporate governance principles.governance principles.

www.griffith.edu.au/www.griffith.edu.au/school/gbs/afe/school/gbs/afe/

symposium/2008/symposium/2008/Barnes.pdfBarnes.pdf

Pedoman Umum Good Pedoman Umum Good Corporate Governance Corporate Governance

KNKG tahun 2006KNKG tahun 2006

ARA – Based on GRIARA – Based on GRI

Global Reporting Global Reporting Initiative (GRI) Initiative (GRI)

supported OECD supported OECD GuidelinesGuidelines

www.globalreporting.org/www.globalreporting.org/information/news-and-press-information/news-and-press-center/Pages/GRI-Statement-center/Pages/GRI-Statement-

Launch-of-the-OECD-Launch-of-the-OECD-Guidelines-for-Multinational-Guidelines-for-Multinational-

Enterprises.aspxEnterprises.aspx

Ethics: Ethics: a branch of philosophy a branch of philosophy dealing with dealing with “THE GOOD”“THE GOOD”

Morals:Morals: individual or culture-individual or culture-bound values that may or may bound values that may or may not have foundation in ethics or not have foundation in ethics or philosophyphilosophy

What is Ethics, Morals & What is Ethics, Morals & Philosophy?Philosophy?“Handbook of Ethics” South-Western College PublishingSouth-Western College Publishing

Ethics or Morals ??Ethics or Morals ??


Ethics or Morals ??Ethics or Morals ??


Some Contrasts Between Ethics and MoralsSome Contrasts Between Ethics and Morals EthicsEthics require scrutiny and careful objective require scrutiny and careful objective

evaluationevaluation MoralsMorals can be arbitrary, contradictory or can be arbitrary, contradictory or

inconsistentinconsistent Something can be Something can be ETHICAL AND MORAL ETHICAL AND MORAL OROR Something can be Something can be ETHICAL AND ETHICAL AND IMMORAL IMMORAL

OROR Something can be Something can be MORAL AND MORAL AND UNETHICALUNETHICAL


Some Contrasts Between Ethics and LawSome Contrasts Between Ethics and Law Something can be Something can be ETHICAL AND LEGALETHICAL AND LEGAL Something can be Something can be ETHICAL AND ETHICAL AND ILLEGALILLEGAL Something can be Something can be UNETHICALUNETHICAL AND LEGALAND LEGAL Something can be Something can be UNETHICAL AND ILLEGALUNETHICAL AND ILLEGAL


ETHICAL ???? -- ETHICAL ???? -- LEGAL ???LEGAL ???


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Where is “Leadership” ?Where is “Leadership” ?Are You a Leader ?Are You a Leader ?

CORPORATE GOVERNANCE CORPORATE GOVERNANCE

FAILURES !!!!

What is “Governance” ?What is “Governance” ?What is A Visionary Leader ?What is A Visionary Leader ?

Are You a Visionary Leader ?Are You a Visionary Leader ?





What is “Governance” What is “Governance” What is A Visionary Leader ?What is A Visionary Leader ?

Visionary leaders are the builders of a new dawn, working with imagination, insight, and boldness. They present a challenge that calls forth the best in people and brings them together around a shared sense of purpose. They work with the power of intentionality and alignment with a higher purpose. Their eyes are on the horizon, not just on the near at hand. They are social innovators and change agents, seeing the big picture and thinking strategically. Visionary leaders anticipate change and are proactive, rather than reactive to events. Their focus is on opportunities, not on problems.


A Leaders’ Vision Of the Future Can Align A Leaders’ Vision Of the Future Can Align Efforts and Help Groups Accomplish MoreEfforts and Help Groups Accomplish More

Groups that lack vision

Groups with vision

Are You in a Group of Visionary Leaders ?Are You in a Group of Visionary Leaders ?

Half of the Fortune 500 companies in 1987 are not Fortune 500 companies today. Many of these companies have FAILED AND CLOSED THEIR DOORS FOREVER. Reasons cited are numerous (“Failures of Vision”, “Identity Crisis”, “Anybody Out There”, “The Glue Sticks, and Sticks”, “Enemies Within”).Escalating challenge of CEO survival (Within 2 years, 57% of the largest 367 companies in USA REMOVED their CEOs ) There are CHANGES in nature of the business, investment, and investors (3 most obvious ones: Constituent Demands are Greater, Expectations are Higher, Competition is Tougher)

What are the Issues onLeadership

& How to ENSURE Survival ?

Why “Governance”Why “Governance”When Discussing Business Ethics & Governance ?When Discussing Business Ethics & Governance ?

Statistical TRUTHSStatistical TRUTHS about about PeoplePeople

Happy Employees Create Value

People have creativity, knowledge, experience,

and ideas that can create value that doesn't land on a traditional P&L.

“Evolving Excellence-2007”


Statistical TRUTHSStatistical TRUTHS about about PeoplePeople

Losses from fraud are likely to be grossly misleading because only a fraction of fraud is reported. Statistically:

• One out of every four persons will steal whenever they can (25%).

• Two out of four persons will steal when they think they can get away with it (50%).

• In total, 75%75% of all persons are potential fraud perpetrators.

Tan Chen Leong CFEIICD-Marcus Evans Forum for Directors16-17 Jan. 2006 – Mulia Hotel, Jakarta


2121stst-Century Corporations-Century Corporations GlobalGlobal

• The timeline for the globalization of companies: The timeline for the globalization of companies: Early days: a company that sold goods overseasEarly days: a company that sold goods overseas Middle period: a company that manufactured and sold Middle period: a company that manufactured and sold

goods in other countriesgoods in other countries 21st Century: a company that is able to call on talent 21st Century: a company that is able to call on talent

and resources around the globe, just as it sells its and resources around the globe, just as it sells its goods and services around the globegoods and services around the globe

SpeedSpeed• Speed in the 21st century company is a business Speed in the 21st century company is a business

strategy built on a virtual network of suppliers, strategy built on a virtual network of suppliers, manufacturers, and delivery firmsmanufacturers, and delivery firms


Key Features of the Key Features of the Competitive Business EnvironmentCompetitive Business Environment

GGlobalizationlobalization

EE-Commerce-Commerce

CChanging hanging demographicsdemographics

IIncreasing ncreasing cultural diversitycultural diversity

TTechnologyechnology

Why “Visionary Leadership”Why “Visionary Leadership”When Discussing Business Ethics & Governance ?When Discussing Business Ethics & Governance ?

Key Features of the Key Features of the Competitive Business EnvironmentCompetitive Business Environment


New Competitive RealitiesNew Competitive Realities DDecline of management hierarchies, with ecline of management hierarchies, with

an increase of networks of specialistsan increase of networks of specialists EEmergence of smaller companies with mergence of smaller companies with

fewer employeesfewer employees IIncrease of technicians to keep networks ncrease of technicians to keep networks

operatingoperating DDecline of the importance of seniority in ecline of the importance of seniority in

compensation compensation OOverall worth based on performance plus verall worth based on performance plus

the market value of a given positionthe market value of a given position




Integrated Enterprise Risk Management Integrated Enterprise Risk Management (I(IEERM)RM) MODEL MODEL


WHAT do We need WHAT do We need to Implement The Principles of “Visionary Leadership” on to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ?Business Ethics & Governance ?


Orang Yang TepatOrang Yang Tepat, Budaya Yang Tepat, Isyu Yang Tepat, , Budaya Yang Tepat, Isyu Yang Tepat, Informasi Yang Tepat, Proses Yang Tepat, &Informasi Yang Tepat, Proses Yang Tepat, &Tindak Lanjut Yang TepatTindak Lanjut Yang Tepat



Orang Yang TepatOrang Yang Tepat, , Budaya Yang TepatBudaya Yang Tepat, Isyu Yang Tepat, , Isyu Yang Tepat, Informasi Yang Tepat, Proses Yang Tepat, & Tindak Lanjut Yang TepatInformasi Yang Tepat, Proses Yang Tepat, & Tindak Lanjut Yang Tepat









Orang Yang TepatOrang Yang Tepat, , Budaya Yang TepatBudaya Yang Tepat, , Isyu Yang Tepat,Informasi Yang Isyu Yang Tepat,Informasi Yang TepatTepat, , Proses Yang TepatProses Yang Tepat, & Tindak Lanjut Yang Tepat, & Tindak Lanjut Yang Tepat


WHAT do We need WHAT do We need to Implement The Principles of “Visionary Leadership” on to Implement The Principles of “Visionary Leadership” on Change?Change?

Orang Yang TepatOrang Yang Tepat, , Budaya Yang TepatBudaya Yang Tepat, , Isyu Yang Tepat, Informasi Yang Tepat, Proses Isyu Yang Tepat, Informasi Yang Tepat, Proses Yang Tepat, Yang Tepat, & & Tindak Lanjut Yang TepatTindak Lanjut Yang Tepat

Change !!!!Change !!!!To Make Different in Some Particular: ALTER

To Make Radically Different: TRANSFORM

To Give a Different Position, Course or Direction

-- Webster’s Collegiate Dictionary

HOWHOWto Implement The Principles of “Visionary Leadership” in to Implement The Principles of “Visionary Leadership” in Building Standards and Enhance NEW CULTURE ?Building Standards and Enhance NEW CULTURE ?

HOWHOWto Implement The Principles of “Visionary Leadership” in to Implement The Principles of “Visionary Leadership” in Building Standards and Enhance NEW CULTURE ?Building Standards and Enhance NEW CULTURE ?

““It is It is notnot the s the strontronggest est of the species that of the species that survives, survives, nornor the the most intellimost intelliggentent, but, but the the

one one most resmost respponsive onsive to chanto changgee.”.” —Charles Darwin—Charles Darwin

Why CHANGE ?Why CHANGE ?

The The greatest danger greatest danger for most of us is for most of us is not that our aim isnot that our aim istoo high too high and we miss it, but that and we miss it, but that it is too low and we reach itit is too low and we reach it..

MichelangeloMichelangelo








Are you Refreshed Are you Refreshed On Business Environment whereas Human On Business Environment whereas Human Resources are NOW as Competitive Resources are NOW as Competitive Advantage Advantage ??

MM UKM - Bandung 12 Dec 2014 “Business Environment” Session.

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