Strategy for Strengthening Organizational Capacity: Organizational Transformation through Capacity Development

Yogyakarta, April 30th 2021━The Department of Politics and Government (DPP) of FISIPOL UGM held a Lecture Series of Strengthening Public Organizational Capacity entitled ‘Strategy for Strengthening Organizational Capacity: Organizational Transformation through Capacity Development’. This event is a series of online lecture series broadcast through the Youtube Channel of the DPP Fisipol UGM. On this occasion, the guest lecturer who was presented was Silmy Karim, who currently serves as the President Director of PT. Krakatau Steel (Persero). This event took place from 07.30 a.m. to 10.00 a.m. and was attended by around 180 participants. In general, this lecture discussed how the efforts to strengthen the organizational capacity made by PT. Krakatau Steel to be able to survive the crisis conditions, and survive in the midst of quite rapid changes.

Starting his session, Silmy Karim gave a little intermezzo which at the same time spurred quite an inspirational spirit. In his speech, he revealed that it is important for us to have a principle that we must be able to become competitive people. This principle is also a belief that he holds, as an effort to be able and motivated by global competitiveness. As a CEO with tens of thousands of employees, Silmy explained that in a career it is very necessary to be concerned with the organization. It means the ability to choose the right person, the right system, the right coaching method, and efforts to strengthen the capacity of the right public organizations need to be considered in order to further become harmony which can directly change an organization.

As a company that had experienced a severe crisis to minus conditions and had a debt of up to 2 billion dollars, PT Krakatau Steel was rescued by Silmy by carrying out restructuring steps in 2018. In such a situation, restructuring was carried out by cutting the overly bureaucratic organizational structure, from 7 layers into 5 layers. This is done with the aim of making the decision-making processes to become more effective.

After carrying out various institutional capacity strengthening, the next moment is to carry out institutional transformation efforts. In this case, PT. Krakatau Steel has four strategic steps: first, creating a transformation team, which consists of young people. In addition, they also formed a Young Change Leader group as an effort to bridge the differences between generations, then held training and leadership through coaching sessions. And as part of a society that is not immune from technological developments, the last step that can be taken is transformation in digitization.