1. P
2010
PT Kereta Api
Indonesia (Persero)
Changes Management
Fath Ade Surya, Iskandar Muda, Ivan Immanuel, Kresna Satria,
Obaja Kurniawan, Ricardo Rahmat, Clelie Albert
WM 63
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2. 1 Company Profile
The presence of railway industry in Indonesia started with the constructions of
railways in Kemijen village, Friday June 17 1864 by dutch governor, Mr. L.A.J Baron Sloet Van
Den Beele. The constructions was the initiative of “Naamlooze Venootschap Nederlandsch
Indische Spoorweg Maatschappij” (NV.NISM) lead by Ir.J.P de Bordes from Kemijen to
Tanggung village (26 Km) with train width of 1435 mm. The railways open for public
transport in Saturday, august 10 1867.
The success of NV.NISM in building railways between kemijen – Tanggung
,continued by building railways which connected Semarang – Surakarta (110 Km), finally
pushed investor’s interest to build railways in other area. This is why the growth of railways
industry in 1864 – 1900 is high.
Beside java, railways building also take place in Aceh (1874), North Sumatra (1886),
West Sumatra (1891), South Sumatra (1914), even in 1922, the construction also occur in
Sulawesi between Makasar – Talakar. In Kalimantan, even though the construction have not
finish, the study of railways betweenPontianak – Sambas (220 Km) was done.
After the Indonesia’s independence proclamation in august 17 1945, KA employee
which united in “AngkatanMoedaKeretaApi” (AMKA) take over the raiways company from
Japanese. This historical event occur in September 28 1945. After the take over,
“DjawatanKeretaApiRepublik Indonesia” (DKARI) was established.
1.1 Vision and Mission
1.1.1 Vision
To become the best railways service provider focusing in customer service and to
fulfil stakeholder’s expectations.
1.1.2 Mission
Conducts the business of railways and its supporting business, through its business
practice and best organization models to provide the added value to its stakeholders and
environment based on 4 main pillars : Safety, On Time, Service, and Convenience.
2 External and Internal Condition of PT Kereta Api Indonesia (Persero)
2.1 External Condition :
1. Low customer satisfaction and trust
2. Competition with LCC (Low Cost Carrier), several routes closed due to economical
factors
3. The only one railways provider in Indonesia
4. Opportunities to become favorable transportation is high, because of traffic jam in
Jabodetabek is bad.
5. Lots of investor willing to invest in railways industry
2.2 Internal Condition :
Jumlah Kecelakaan, Korban, dan Faktor Penyebab
JUMLAH Jumlah Korban
TAHUN
KECELAKAAN Meninggal
2005 102 36
2006 116 50
2007 159 31
2008 147 45
2009 90 57
The table above shows the accident data from 2005 to 2009, it shows that the accident
rate is high even the rate decrease in 2009 to 90 accidents. But if we see it from the
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3. numbers of casualties, 2009 have the highes number of casualties which is 57 people. The
factor caused the accident in 2008 are human error factor (33%) and infrastructure factor
(23%). In 2009 the human factor still become the dominant factor in causing the accidents
which is 25%, and the infrastructure factor is 24%.
1. Low On Time performance
Rata-Rata Kelambatan dan Ketepatan Kereta Api (Menit)
Rata-Rata Kelambatan (Menit) Rata-Rata Ketepatan (%)
Kereta Api Penumpang
2008 2009 2008 2009
Kedatangan 5 6 81 78
Berangkat 37 35 32 31
Kereta Api Barang
Berangkat 97 115 26 27
Kedatangan 111 115 25 28
The table above shows the on-time performance of PT KAI. From the table we can
conclude that the performance still far from expectation. In 2009 the on-time
performance decrease 78% for arrival and 31% for departure.
2. Low level of education among its employee and most of the employee’s age are over
50.
KOMPOSISI KARYAWAN PT KAI
Tingkat Pendidikan Jumlah Usia Jumlah
S3/Post Graduate 0 <30 2979
S2/Graduate 93 31-40 6073
S1/Under Graduate 452 31-50 6037
D3/Diploma 449 51-56 10448
SLTA/High School 9771 JUMLAH 25537
SLTP/Secondary School 6850
SD/Elementary School 7922
JUMLAH 25537
From the table above we can see that PT KAI’s employee age composition is mostly
between 51-56, and from education background, the employee mostly are senior
high school graduate.
3. The construction of double-rail in Jabodetabek haven’t finished
4. Currently serve java and Sumatra island
5. Currently haven’t met the company’s vision and mission
6. Currently there is no barrier between regulator and operator in railways industry in
Indonesia
From data that show above, we tried to classify PT. KAI’s internal problems to
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4. The biggest problem are Human Resource Problem. This is reflected on low quality
of human resource and high level of accident caused by human error. Low rate of on time
performance and high level of passenger without tickets also caused by the low quality of
human resource and irresponsible third-party group. The basic change can be started with
improving the human resource.
Refering to “Leading Change” by John Kotter, the other problems also consisted in
human resource problem which are management problem and leadership problem. Both of
them have different role and responsibility in directing the organizational change. Both of
the role must be work excellently if we want a successful change.
Management Leadership
Planning and budgeting: Establishing direction:
Establishing detailed steps and timetables Developing a vision of the future—often
for achieving needed results, then the
allocating the resources necessary to make distant future—and strategies for
it happen producing the changes needed to achieve
that vision
Organizing and Staffing: Aligning people:
Establishing some structure for Communicating direction in words and
accomplishing plan requirements, staffing deeds to all those whose cooperation may
that structure with individuals, delegating be needed so as to influence the creating of
responsibility and authority for carrying teams and coalitions that understand the
out the plan, providing policies and vision and strategies and that accept their
procedures to help guide people, and validity.
create methods or systems to monitor
implementation.
Controlling and problem solving: Motivating and inspiring:
Monitoring results, identifying deviations Energizing people to overcome major
from plan then planning and organizing to political, bureaucratic, and resource
solve these problems. barriers to change by satisfying basic, but
often unfulfilled, human needs.
Produces a degree of predictability and Produces change, often to dramatic
order and has the potential to degree
consistently produce the short-term And has the potential to produce
results expected by various stakeholders extremely
(e.g., for customers, always being on useful change (e.g., new products that
time; for stockholders, being on budget) customers want, new approaches to labor
relations that help make a firm more
competitive
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5. 3 The Changes Strategy and Implementation
The change Implemented with eight stage of leading change by John Kotter in
PT.KAI. Usually in an organization which applying change management directly implement
stage 5-7. Stage 1-4 and 8 usually missed and assume as unimportant. Stage 1-4 focusing on
“defrost” the status-quo. Stage 5-7 focusing on “new practice”. And stage 8 focusing on
“grounding the change” which is the final change and very important stage in “anchoring”
the successful change in order that the organization didn’t come back to its original
condition before the change. These are the steps which should be implemented step-by-step
and perfectly :
3.1 Establishing a Sense of Urgency
Very important steps in starting the change is to establish the sense of urgency. This
factor can guarantee the other steps to be accomplished and accepted by all stakeholders.
But this is also quite difficult because of there aren’t critical factor that threathened all side.
The factors caused from lack of sense of urgency in PT.KAI are :
Based on the factors above, we need to emerge the sense of urgency in all level of
PT.KAI. The steps that can be implemented to increase the sense of urgency are :
Ways to Raise Sense of Urgency Implementation Sample PIC
1. Show the critical condition faced Showt the data about the  Accident data CEO
to the top management deterioration and  On-time
shortage which should be performance data
improved  Infrastructure and
facility data
 Financial data
2. Set high target that should be Set profit target,  On time CEO
achieved productivity target, safety performance
target, and customer increase to 95%
satisfaction target
 Accident level
decrease by 70%
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6. 3. Stop performace measurements Set the KPI based on  Use KPI based Director of
based on functional goal company’s business according to Human
performance Balanced Score Resources
Card
4. Show customer satisfaction data Use small group to  Use Quality Director of
and company’s image to all respond available data Control Circle Marketing
stakeholders (QCQ)
5. Make discussion forum about the Top management should  Monthly Coalition
company’s weakness, avoid facilitate monthly discussion forum Team
adorn the news discussion about the
company’s current
condition
6. Inform all employee with Explain about  Utilize the CEO and
information about opportunities opportunities in the monthly Director of
and profit in the future if they future on routine discussion forum Human
change discussion Resources
3.2 Creating the guiding coalition
In implementing the change we need to build coalition with other parties who have
influence in making policy. We should pay attention to the optimal composition, level of
trust, and goals. Coalition members should consist of members which have:
• Position Power : Coalition member should be the people which have power and
access to do change. Usually consist of top management.
• Expertize : Have various point of view, came from various discipline and have
experience in its field. Usually consist of senior manager.
• Credibility : Member of coalition are people with best reputation and credibility, so
they can increase trust and minimize resistance.
• Leadership : The important point in this criteria is every member should have good
leadership ability. Because this coalition is the foundation in creating changes. Every
member are needed in spreading the change.
Steps in creating coalition :
1. Finding right person with above criteria.
2. Build trust
3. Develop goals
The Parties that should be involved in creating the coalition :
1. CEO
2. BOD (Board of Director)
3. Senior area manager with ability to articulate vision and have experience and ability
to spread change
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7. 4. Expert, professional and other parties which have good reputation to implement
cultural change and also have access with policy and have power to coordinate
change with related parties, which are :
a. Ministry of transportation
b. Professional consultant
c. Employee Representative
d. Customer Representative, we can use representative from railfans
community which currently have lots of members and very active. They
even have their own magazine which discuss everything about train.
3.3 Developing a vision and strategy
Vision refers to a picture of the future with some implicit or explicit commentary on
why people should strive to create that future. Form that perspective, vision is an essential
part for make a change. Through the vision and strategy, changes that made in the
organization will be directed to a common purpose.
Based on that idea, current strategy and vision of PT KeretaApi Indonesia (Persero)
can still be used. This is because the currentvision already answer the internal problems of
PT KAI.
So, the vision for PT KAI to do change is “Being the best railway service providers who focus
on customer service and meet the expectations of stakeholders.” Beside that, to get that
vision company must improve their condition, especially in 4 main pillar :safety, timeliness,
service,convenience.
3.4 Communicating the change vision
Last phase in “defrosting” the status quo is communicating the change vision.
Communicating the change vision is an important part in spreading change agenda. Usually
when the stage of building sense of urgency didn’t worked as expected or not optimal will
result in resistence in change. The truth is, reality doesn’t have to be seen as a bad thing.
Generally resistence is a form of respond and feedback. Feedback and respond can be
utilized to get better format in doing change. According to Kotter, there are several things
which can cause resistence. For every factor and condition, he have mapped the congruent
strategy.
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8. Source: Choosing Strategy for Change. by John Kotter and Leonard A. Schlesinger. Harvard
Business Review 2008
The method chosen are based on prediction of resistence that might be happen. From
analysis of the factor that cause lack of sense of urgency can be seen that resistance which
occur will direct at the form of education and change facility. These are the main elements
to form effective communication :
1. Simplicity : all jargon and techno-babble must me eliminated
2. Metaphor, analogy, and example : A verbal picture is worth a thousand words
3. Multiple forums : big meeting and small, memos and newspapers, formal and
informal interaction-all are effective for spreading the words
4. Repetition : ideas sink in deeply only after they have been heard many times
5. Walk the Talk, or Lead by Example : Behavior from important people that is
inconsistent with the vision overwhelms other forms of communication
6. Give-and-Take : two-way communication is always more powerful than one-way
communication (listen and be listened to)
7. Explanation of seeming inconsistencies : Un-addressed inconsistencies undermine
credibility of all communication.
3.5 Empowering Broad-Based Action
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9. The major hindrance faced when actualize company’s vision can be divided to 4 important
parts, System, Structure, Skill and Supervisor.
Formal structure
Formal structure Lack of skills resulting in bad
Lack of skills resulting in bad
action from employee
action from employee
hinder the action
hinder the action
Employee understand the
Employee understand the
vision, but still trapped in in
vision, but still trapped
system of firm
system of firm
Staff and information system
Staff and information system Boss prevent employee’s
Boss prevent employee’s
hinder the action
hinder the action action in creating new vision
action in creating new vision
From the picture above, we can see that employee who have willingness to acualize the
vision of PT.KAI, but they trapped at the system of the firm.
Gap between vision and structural hindrance :
Vision Structure
Focusing on customer service In reality, PT.KAI put its focus on
railways operation
Fulfill the stakeholder’s expectation But, low productivity resulting in high
cost. This is caused by high operational
expense of the company
When the structural hindrance cannot be removed, it will cause employee become tired in
doing transformational change in actualizing PT.KAI’s vision.
Providing Training Needs
To perform improvement, training is needed. But, the training done by PT.KAI often not
appropriate. For example, there are many accident caused by human error.
Synchronizing System with Vision
To synchronize system with the company’s vision which focusing on customer service and
stakeholder’s interest, needs the role of Human Resource Development which is brave and
assertive in providing leadership needed to change the system to become congruent with
PT.KAI’s company vision.
3. 6 Generating Short-Term Wins
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10. Short term wins have role such as : Provide evidence that sacrifice are worth it; Help fine
tune vision and strategy; Undermine cynics and self-serving resisters; Build momentum;
keep bosses on board.
Based on role from short term wins, the change process done by PT.KAI should have short
term wins. Focus of the change is human resource related to 4 factors, safety, convenience,
and service. So, several short term wins that PT KAI can implement are :
1. Accident rate of train decrease by 70% in 1 year
2. Human factor as the main cause of the accident decrease to 10% from 33%
3. On Time performance increase to 95% in 1 year
4. Employee composition who aged more than 50 decrease by 30% in 1 year
5. Employee who have D3 educational level, increase by 15% in 1 year
6. Net Income growth 200% from the previous period in 1 year
7. Giving bonus to best employee every month in 1 year ahead
8. Customer satisfaction increase to 90% in 1 year
3.7 Consolidating Gains and Producing More Change
According to Kotter, one of the main errors why many change projects fail is that people
tend to declare victory too early. A sustainable and successful has to run deep. Quick wins
are only the beginnings of what it is needed to be done to achieve long-term change.
So put in place a Human Resources change project in Pt KAI needs quick wins, but not only :
the management will have to build on these first success and improve continuously its
human resources management.
Actions to put in place in order to build on the change:
 It will be necessary to put in place regular meetings to take stock of the situation
and develop new projects on this basis: on areas which still need to be changed or
on improvement areas identified.
Indeed each success provides an opportunity to build another action or project. But
to improve its change management, change actors have to assess the precedent and
analyze the outcomes. To assess what worked and what didn't enables to identify
what you can improve. Each will be the opportunity to do an assessment of success,
to identify errors and the areas of improvement.
Following the evaluation of the change process and its outcomes, the change agents
will have to set new goals on this basis. As in every successful project they'll to put in
place a precise provisional planning with deadlines for each action to do.
 Put in place employees' surveys :
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11. In line with the assessment meetings, one way to evaluate the first results on the
human resources will be to launch an employees' survey. Moreover, the
management and change actors will have to come to meet the employees for
informal discussion and interview.
First it will enable to know how the change is perceived by employee, what they
think to still have to be improved and in what way. To have the employees
'feedbacks which are on the day-to-day field will be interesting information, knowing
better than anybody the day-to-day operations, they can bring ideas and creativity.
Secondly to be consulted and involved will participate to improve their motivation
and their commitment in the Pt KAI Company. Indeed, one better way to obtain
motivation and involvement from its personnel is to recognize their role in the
organization and to be grateful for it.
3.8 Anchoring New Approaches in The Culture
Culture which developed in PT KAI in the future is the culture called “Customer Oriented
Culture” and “Employee’s Discipline Culture”. Customer oriented means customer
satisfaction is the main factor we should pay attention to, and employee’s discipline means
the whole employee obey the rule and also obey to give maximum service to the customer.
4 Conclusion
From our perspective the problem of PT Kereta Api Indonesia (Persero) are human
resources problem that effect the four pillars of customer convenience, safety, on time
performance, and services. That pillars is important to compete in transportation industry.
Because of that that problem must be solved immediately. So, John Kotte’s 8 Steps can be
implemented to do a changes in PT Kereta Api Indonesia (Persero).
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