EVALUATING CHANGE MANAGEMENT IMPLEMENTATION IN BUSINESS TRANSFORMATION OF PELITA AIR

• Main Author: Yusri Mahardika, Ivan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/83245
• Institution: Institut Teknologi Bandung

Indonesia as the archipelago country with 17,000 islands creates an air transportation system that becomes the most effective and suitable transportation to transport people and goods domestically among other transportation. Indonesia, also known as the world’s fourth most populous country which generates air transportation serve large market for society needs across Indonesia. In order to maximise these opportunities, Pelita Air as the airline company developing action and innovation to serve society needs by transporting people and goods in the unique geography and accessibility challenges of Indonesia. Pelita Air as one of the subsidiary companies of Pertamina Group which established in 1963 start to support internal air transportation for Pertamina oil and gas exploration business. In order to develop its business portfolio and thrive, Pelita Air expanded business and took some opportunities by creating several change managements of business transformation into a commercial air charter operator, regular flight business, aircraft maintenance, airport operator and also training center. In order to achieve a continuous improvement during the change management execution especially for the recent regular flight implementation in 2022, the evaluation of change management of regular flight implementation should be conducted in Pelita Air. The method of this research form uses qualitative research with analytical technique using the John Kotter 8 step change model and DICE score framework to analyse and evaluate the change management strategy that was implemented by Pelita Air. John Kotter 8 step change model used as a comparative strategic framework in the process of change management implemented which could evaluate and optimise the change management process. The DICE score framework used as a formulation to assess the possibility of success of the change management based on objective measures and track the projection of change management that is implemented through four main factors which are duration, integrity, commitment and effort. The result based on the John Kotter 8 step change model showed Pelita Air still has a space for the improvement during change management execution. The first step of change management in establishing a sense of urgency, there are several supporting factors such as financial condition, market opportunities, operation development and government instruction which lead the change initiatives. It is also important for Pelita Air to identify especially the threat factor during the regular flight implementation such as human resource’s capability in managing and operating the regular flight operation as Pelita Air has a failure in maintaining and competing the regular flight operation in 2005. The second step of change management in creating the guiding coalition, there are several main factors such as appoint critical key leader, coalition member, team objectives and stakeholder collaboration. It is important for Pelita Air to conduct a double check the weak area of the team include the appointment of key person with a good track record as Pelita Air experienced several times change leader to reduce the risk or major impact during the change management execution. The third step of change management in developing a vision and strategy, there are several main factors such as value of change, implementation strategy and capture company’s future condition. It is important for Pelita Air to improve a clear vision and strategy as it will reduce ambiguity or blurred direction to improve employee’s direction on how they have to perform for the success of the change goal. The fourth step of change management in communicating the change vision, there are several main factors such as attain employee’s motivation, clarify strategy, organizational development, new corporate culture and employee’s benefit. It is also important for Pelita Air to develop a regular employee’s feedback check to know any anxiety or negative thought to counter and reduce the number of rejection and neutral perception from the employee regarding the change initiatives. The fifth step of change management in empowering broad-based actions, there are several main factors such as competency enhancement, technological support, training and workshop. The evaluation recommends for Pelita Air to conduct a team builder workshop in enhance team engagement, sense of belonging for company’s project and make the change implementation move faster. The sixth step of change management in generating short-term wins, there are several main factors such as operation development, customer growth and stakeholder confidence enhancement. It recommends for Pelita Air to conduct a recognition and reward system for every part who take a part for the change success by provide a tangible incentives or professional growth which show the appreciation for hard work and dedication during the change implementation. The seventh step of change management in consolidating gains and produre more change, there are several main factors such as the target goal and change performance evaluation. As the change implementation show a deviated result according to the total aircraft fleets acquisition and route of flight provided, the tools such as feedback surveys and regular workload check should be conducted through regular review meetings to providing a mitigation action and keep the change implementation on track. The last step of change management in anchoring new approach in culture, there are several important factors such as new behavior, culture legacy, change ideals and values. The highlighted culture required during the change implementation are adaptability, competency, collaboration and loyalty as these cultures become a crucial part to provide a strong foundation for navigating and embracing the change. It recommends for Pelita Air to keep the momentum for about eight years and incorporate the change ideals or values within current and future staff to make the change stick as a new behaviour legacy. While the result for the DICE score framework is 13.33 which the total score indicated in the win zone even Pelita Air still face several risks during the change execution. There are three highest score which are the Commitment of Senior Management (C1) factor with 3.72 score, Integrity of the team (I) factor with 3.44 score and Effort from the employee (E) factor with 2.23 score. These concern factors indicate the regular flight implementation in Pelita Air still need for an improvement to reduce the DICE score below 13 for better change execution result. The recommendation based on the change management evaluation in regular flight business transformation in Pelita Air can be used to keep on track of the execution of change management plan activities in line with company strategy as a primary strategic goal being pursued by the management of the company.