Business transformation is needed for a company to be better, more profitable and sustainable. One of the keys to business transformation is good leadership because the leader will make decisions and direct the company to the vision and mission.
To become a profitable and sustainable company, Krakatau Steel has started business transformation since the end of 2019. It was mentioned by Silmy Karim, The CEO of PT Krakatau Steel, in a guest lecture session in the MBA program, School of Business and Management (SBM) Bandung Institut of Technology (ITB).
PT Krakatau Steel is a state-owned company focusing on producing Steel. Silmy said that, in the initial stage of transformation, PT Krakatau Steel has successfully performed loan restructuring and kept the company’s sustainability in the future. Furthermore, production increased 61percent from 2020 to 2021, and Gross profit increased 48 percent from 2020 to 2021.
Silmy explained that leadership plays an essential role in business transformation. “Leadership is the key to turn around the business because the leader is a person who will make decisions,” he said Tuesday (14/9/2021).
He added that, in Krakatau Steel, Silmy empowered potential young leaders in each work unit and equipped them with the necessary training to carry out leadership and managerial functions in their perspectives unit. It aims to allow potential young leaders to face challenges and experience anticipating the challenges.
In addition, to be a good leader in organizational transformation, Silmy noted some points that leaders need to pay attention to. First, networking skill is critical. “A network will facilitate problem-solving and seize the opportunity,” said Silmy.
Second, communication skill is a must, and the leader should be able to communicate well with supervisors, colleagues, and subordinates. In the organizational transformation of PT Krakatau Steel, Silmy communicated to all employees about the company’s future initiative, past achievement, challenges being faced, and the changes in the company.
Lastly, the skills needed for a leader in organizational transformation are identification skills to look for opportunities, problem mapping skills to identify strategic and non-strategic issues, decision-making skills, and execution. “Execute decisions well without leaving a problem in the future,” highlighted Silmy.
