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MANAGEMENT

CHANGE
IN AJB BUMIPUTERA 1912

OUR TEAM MEMBER :


1
2010 2015 2016-2017 2018
1912 2012
Bumiputera OJK plan to Satuter team took AJBB Begin to sold
BUMIPUTERA OJK start to Management (run off), PT insurance
Faced restructuritat
was Founded supervision AJB was found, several product, find
financial ion
collaboration failed. new BoD
problem

VISION MISSION
• Providing high quality life insurance
To become a strong , modern, products and services as
and profitable national insurance participation for national
development through leveraging
company supported by well-being of Indonesian people.
professional human resources • Operating numerous education and
training to ensure employee
that highly value idealism and competence growth and to increase
mutualism. well-being and productivity in order
to improve company service quality
for policyholders.
• Encouraging motivating and
innovative working environment to
enhance effective and efficient
company internal business process.
2

PORTER’s 5 FORCES

OPPORTUNITY
• Increase 10% in political
conditions will increase life
insurance income around 0.4% ANALYSIS

PESTEL Analysis
• The greater the economic
growth, the consumption of
insurance products will increase
• Annual increase of health costs 1. Supplier Power - FAVORABLE
in Indonesia has reached 36%
over the past 10 years 2. Buyer Power - UNFAVORABLE
3. Rivalry Among Competitors -
UNFAVORABLE

THREAT
The difficulties of insurance 4. Product Substitutes - FAVORABLE
claims caused a decrease in public 5. New Market entrants- UNFAVORABLE
confidence in the insurance
industry
3
Functional analysis
Function Factors Trend/Data/Projection or Impact

Is the employee morale high ? Lack of integrity.

Management
Are organizational reward and
Lack of control
control mechanism effective?

Sales Force Bumiputera using insurance agent as their sales force.

Marketing
Price Higher than competitor.

Segmented customer Gender, age and behaviour.

Liquidity, Expense Claim and


Finance management has deficit in their financial performance,
Premium Growth Ratio.

Production/
Product So many product variation.
Operation
Bumiputera already change their system from
IT IT, Customer Care and Service
convensional to online.
4
Key Internal Issue
Lack of Integrity and Financial
Professionalism 02 Difficulties

01
03

No special regulation Needs of


for mutual insurance 04 Raising Capital
5
BUSINESS MODEL CANVAS
6
8 STEPS KOTTER
Step 1 : Step 2 : Step 3 :
Create a Sense of Urgency Form a Powerful Coalition Create a Vision for Change
Ø Reorganizing the board of “To be a trustworthy partner in life
Ø Many individuals disguised as
insurance that generated profitable
directors
regional heads acting as BPA investment based on professional,
Ø The elected candidates needs transparent and customer oriented
Ø A failed restructuring attraction value”
to pass the fit and proper test Ø Providing high quality life insurance
by OJK
products and professional services
Ø Coalition with the third party
Ø Mis-management and no good especially for claim.
like PPM as an independent Ø Selection and training to form honest
corporate governance (GCG) and talented employees with high
institution competence.
Ø No law that regulates the
Ø Encouraging motivating and
Ø Coalition with Insurance
company legal entity mutual in innovative working environment to
University in Indonesia, like enhance effective and efficient
Indonesia company internal business process.
STIMRA Ø Optimizing assets, labor and expense.
6
8 STEPS KOTTER
Step 5 : Step 6 :
Step 4 :
Empowering Employees Planning for and creating
Communicate the Vision
For Broad-Based Action short-term wins
Ø Must implement check and Ø High achieving employees and
Ø Each boss of all divisions can balance systems "SAMBAL” agents can also be rewarded with
(Saksikan, Amati, Bantu Aksi
give an examples of actions bonus or any financial incentive
& Lakukan)
to his/her subordinates Ø Empower them to work with Ø Once the targets are achieved, the
orientation of policy holders.
Ø Give mentoring in each management could announced
Ø Give power to all branch to
division make decision immediately through any means,
Ø Insurance agent need to
collaborate in one system such as meeting, email blast,
Ø Create and develop training in social media postings, and official
align with their needed
competency and social skills letter.
6
8 STEPS KOTTER
Step 7 : Step 8 :
Consolidating Gains and Anchor the changes in
Producing More Change corporate culture
Ø Top executives need to believe Ø Change people mindset with Conclusion
that considerable change is always give motivation and speech By becoming a limited
to them.
absolutely essential company, AJB Bumiputera
Ø In the recruitment process,
Ø Make new program that wrap trainings will be given to
can be more developed,
in unique abbreviation align especially in raising more
candidates and new employees to capitals as well as being more
with integrity acquire the culture emerged from transparent and professional
Ø Push change leader to create the change
new change agents Ø Always rejevunate reward and
Ø Create and monitor KPI and punishment system in accordance
set higher goals to shifting era.
Ø Get used to adapt with new Ø Hold some informal out-of-office
activities for employees and agents
technology in digitalization
Ø A talent pool must be established
to thoroughly select the next
change leaders