SINCERE For A Better Work And Life
08 December 2022
Article by Inzi Almuntadzar - 3rd Winner of 2022 SINCERE Article Writing Competition
PT Freeport Indonesia (PTFI) has basic values called SINCERE (Safety, Integrity, Commitment, Respect, Excellence). The five values are the values of employee behavior, actions, and activities so that SINCERE becomes the unique identity of PTFI employees.
A framework is needed to elaborate on SINCERE values in PTFI employees' behavior, actions, and activities. A framework that can be used is McKinsey's 7-S framework. Thomas J. Peters and Robert H. Waterman first introduced this framework in their book In Search of Excellence. The 7-S Framework is Strategy, Structure, System, Styles, Staff, Skills, and Shared Value. Next is a diagram of the 7-S Framework (see picture). By using the 7-S framework, PTFI employees are expected to be able to implement SINCERE values in their workplace and their daily lives. The 7-S framework can be divided into two categories: Hard S's and Soft S's (see table). In general, Hard S's focuses more on organizations that are made in such ways so that all of the organization's elements can collaborate. On the other hand, Soft S's focuses more on one element of the organization, namely employees, who are the company's most valuable asset. The following is a discussion of 7-S in the context of SINCERE at PTFI.
Strategy is planning that's carried out by elaborating existing or potential goals, policies, and elements. The following is an implementation of SINCERE values in a strategic framework that can be applied in the workplace:
SINCERE is used as a value to resolve conflicts. The relevant values are Respect and Integrity. The Respect value must be maintained when conflicts arise in the workplace. We respect differences of opinions while being honest, transparent, and responsible (Integrity) in resolving problems and conflicts. With a problem and conflict resolution strategy based on SINCERE values, it is hoped that no party feels hurt so that properly resolved conflict can lead to trust and eventually more productive employees.
SINCERE is used as a value in communication and interaction. PTFI employees have diverse backgrounds. Differences in culture, age, character, education level, and career path often create obstacles when communicating and interacting. In response to those differences, the respect value can be applied so that employees feel comfortable in communicating and interacting. This, of course, will increase the organization's productivity because the employee's smooth communication and interaction directly provide smooth production process activities.
Structure describes the organization's structure or hierarchy that shows the work, functions, responsibilities, and authorities that form a network. The implementations of actions and behaviors in the context of SINCERE can be carried out by:
Develop an organizational structure based on the Excellence, Integrity, and Commitment values. The manager's foresight when recruiting new members or managing the organization is needed not only from a technical point of view (Excellence) but also considering a non-technical point of view, such as Integrity and Commitment. Non-technical aspect is as important as the technical aspect because this aspect determines whether a team in an organization can work together to achieve a goal or otherwise divide the team.
Systems are processes and procedures within a company that determines day-to-day activities. A system can be a collection of elements or components that exist in a company and interacts with each other to achieve a goal or result. A running system is usually accompanied by an SOP (Standard Operating Procedures). The following is the implementation of SINCERE values in a system:
Always pay attention to the Safety, Integrity, Respect, and Excellence values when designing and making SOPs. The Safety value ensures safety protection for employees so that work or production processes will not experience losses caused by safety. The Integrity value ensures that SOPs must be based on existing regulations so that employees have a legal umbrella when working. The Respect value ensures that SOPs respect human rights, cultural values, and religious values so that employees' actions and behaviors when working will feel safe and comfortable. Lastly, the Excellence value ensures that employees work using the best methods, tools, and equipment as well as the skills and knowledge to achieve goals and results.
After making the SOP based on SINCERE, the next step is to implement the SOP based on the Integrity and Commitment values. The Integrity value means that employees must be honest, transparent, and responsible when carrying out the SOP. Honesty and transparency ensure that every job has an SOP and is responsible for meeting the requirements contained in the SOP. The commitment value implies that employees pay full attention to SOPs, are serious about implementing them, and give their best so that the SOP can be carried out and obeyed at work.
Describe the organization's leadership style. PTFI's leadership style changes as leadership changes. This doesn't only happen in PTFI; every organization and company will experience the same thing. This change is a challenge and an opportunity for the company to grow. The following is the implementation of leadership style in the context of SINCERE at PTFI:
Complement leadership style with SINCERE. Although PTFI has introduced several leadership training, one of which is Situational Leadership®, there is nothing wrong with equipping it with SINCERE values. Integrity, Commitment, and Respect make Situational Leadership® stronger. A leader without honesty, transparency, and responsibility (integrity) will lead to distrust. A leader without understanding, proactive, and caring (Commitment) will lead to conflict. Without mutual respect and Respect, it will cause a sense of antipathy.
Synergy and collaboration of leaders and employees using SINCERE. PTFI employees have cross-generational backgrounds, starting from Generation X, which tends to be logical and rigid, Generation Y, which tends to be curious and confident, and Generation Z, which tends to be egocentric and creative. With such composition, the SINCERE value is needed so that the synergy and collaboration between employees are successful. These values are Integrity, Commitment, and Respect. Although employees' generations are different, if the leaders and employees act honestly and responsibly towards their work, are committed and caring to answering all existing challenges, and respect all differences, synergy and collaboration will be successful in creating a productive organization.
It is an element of how the organization manages employees in terms of number, needs, abilities, rewards, motivations, recruitment, and training. For PTFI, employees are a valuable asset that must be maintained so operations can continue running. Not only maintained, but employees also get development and opportunities to gain new skills and knowledge to support their work. PTFI employee development is also inseparable from the SINCERE values. Here are the implementations that can be done:
Employee development (empowerment) based on Commitment, Respect, and Excellence. Commitment-based development means that the company is responsive, caring, and willing to allocate resources to develop employees' skills and knowledge on an ongoing basis. Respect means that the company respects gender, culture, and abilities differences so that employees' development can be carried out fairly and wisely. Excellence means the company gives the best and latest training for employees. Work methods and science are constantly evolving, so companies must be sensitive and want the best for employees.
Employee's career path planning is based on Respect and Excellence values. The company plans a career program for potential employees based on the Respect value, which means all employees have equal opportunities, both men and women. In addition to gender, age and experience must also be considered not to limit career opportunities. The Excellence value means that the company considers aspects of the employee's ability and knowledge. Abilities and knowledge are not limited to technical aspects but also non-technical aspects such as leadership style, conflict management, and behavior. By paying attention to the SINCERE values in managing employees, it is expected to contribute optimally to the company so that the company can be sustainable.
It is an ability possessed by employees or organizations. Employees and organizations must have authentic and unique competencies or abilities to compete and help the company achieve its goals. The SINCERE value used in this case is the Excellence value. The following is the implementation of the Excellence value that PTFI can do:
Continues Improvement Program. Employees' and organizations' competence must implement continuous improvement and development. Currently, technology and science continue to develop, so it requires organizations to continue updating their competencies. High management commitment and support for this program are needed so that employees and organizations can continue to improve their competencies.
Lesson Learned and Knowledge Management Program. There are 2 types of knowledge, tangible and intangible. Tangible knowledge is easy and practical, whereas intangible knowledge requires knowledge management. Intangible knowledge is abundant and able to make real contribution to employee's excellence. Therefore, the Lesson Learned program is needed so that there is a transferring process from intangible to tangible. Once again, Commitment and support from management is need so that knowledge within the organization can be maintained and developed.
7. Shared Values
Is a value, norm, or standard that applies in the company. PTFI itself already has a value called SINCERE (Safety, Integrity, Commitment, Respect, Excellence). In the McKinsey 7-S framework, the SINCERE value exists as the center or the value that must underline other frameworks. Several SINCERE implementations for each framework have been explained, and for the last discussion about Shared Values, we will discuss how to implement these values in each framework.
SINCERE Mind. This program aims to instill the SINCERE values in the employees' minds. One way is that employees should discuss SINCERE (engagement) more often not just in a formal discussion setting. SINCERE can be discussed in casual chats during breaks or outside of work hours. The role of supervisors and management roles are needed so that the work atmosphere is comfortable for employees to express their opinions so that the discussion setting is more open. When discussion happens often, the supervisor's role is needed to slip SINCERE material into the discussion. Thus, employees will discuss SINCERE more often. The more it happens, it will become a habit, and hopefully, SINCERE will become the employees' mindset.
SINCERE Day. The program embeds the SINCERE themes in a day. For example, employees wear clothes or shirts that match one of the values. It doesn't have to be all employees, but it can start from a small group of employees. Management's creativity and support are very needed for this program to run. According to the strategicmanagementinsight.com site, for these frameworks to run properly, there are several steps taken:
- Identify areas that are not aligned in its implementation within the organization. Look at the relationship between one framework with another framework. Is it strong/weak, consistent/inconsistent?
- Determine what and where changes are needed. This second step is based on the data from the first step. Areas that require special attention, immediately make change management.
- Make changes and monitor the impact of these changes on the framework and the framework as a whole. Did anything change for the weaker or the stronger?
The next step is to monitor and periodically review the implementation of each framework. Change can happen when a framework is not running effectively and optimally. It is hoped that by using the McKinsey 7-S framework, employees and companies can benefit from the SINCERE values, namely a better work and life.
Implementing SINCERE using the McKinsey 7-S framework is expected to bring about change for PTFI employees and organizations. For employees, SINCERE can provide change towards better work and life. For PTFI, SINCERE is the foundation to achieve organizational goals, namely to benefit the nation, society, and the environment in which we operate and realize our hopes through the best service for Indonesia.
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