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PT Kapal Api Global

Organization Development: Measuring Success Beyond Productivity

Dias Murtadho

Dias Murtadho

Dias Murtadho is a dynamic HR professional and Asia's Most Promising Chief People Officer for 2024. Currently serving as the Head of Talent Management and Organization Development at PT Kapal Api Global, he focuses on talent identification, succession planning, and performance management across eight business units. Dias is dedicated to fostering organizational development and enhancing employee engagement through innovative strategies and programs, including the GDP Inspire initiative aimed at cultivating future leaders within the company.

Through this article, Murtadho highlights the importance of intangible assets, such as employee well-being, in measuring organizational effectiveness beyond traditional financial metrics. The author argues that focusing on employee well-being can lead to improved performance, productivity and a positive work culture. The author also emphasizes the importance of including intangible metrics in organizational assessments and decision-making processes.

In today's dynamic business environment, organizations are constantly seeking ways to improve their effectiveness and productivity. While traditional financial metrics have long been used to gauge success, they often paint an incomplete picture. Nowadays there are new OD metrics exploring how to measure the impact of OD initiatives beyond just productivity gains. Traditionally, organizational effectiveness has been measured through financial metrics such as revenue, profit margin and return on investment (ROI). While these metrics are important, they often fail to capture the full picture of an organization's health, which has a crucial impact on business delivery. The role of OD has transformed from only talking about boxes, reporting lines and span of control to more VUCA and intangible aspects within the company. Many of the key benefits of OD initiatives fall under the category of intangible assets. These are assets that are not easily quantified in financial terms, but they play a vital role in an organization's success.

“Organizations that prioritize the well-being of their employees are more likely to attract and retain top talent, improve productivity and create a positive work culture.”

In today's fast-paced and demanding work environment, employee well-being has become a critical factor in organizational success. Organizations that prioritize the well-being of their employees are more likely to attract and retain top talent, improve productivity and create a positive work culture. OD plays a pivotal role in fostering employee well-being and creating a sustainable future for organizations.

As one of the biggest coffee producers globally, Kapal Api Group sees the importance of wellbeing and approaches it in a holistic way through 4 pillars:

Mental Wellbeing

Social Wellbeing

Physical Wellbeing

Financial Wellbeing

Mental wellbeing is a state of mind characterized by a sense of balance, contentment and overall satisfaction with life. It encompasses emotional, psychological and cognitive health. When individuals experience positive mental wellbeing, they are better equipped to cope with challenges, build strong relationships and make sound decisions. Kapal Api Group provides a psychologically safe environment for its employees, where ideas and experiments are welcome.

Social wellbeing refers to an individual's sense of connection, belonging and support within their social networks. It involves having meaningful relationships, strong social connections and a sense of community. When individuals have strong social support systems, they are less likely to experience loneliness, isolation, and stress. When you join Kapal Api Group, you will find a second family for life. The relationship extends just beyond work. People come to the office each morning with a smile and purpose.

Physical wellbeing is a state of optimal physical health that includes a healthy diet, regular exercise, adequate sleep and overall physical fitness. It involves taking care of one's body and preventing health problems. When individuals prioritize physical wellbeing, they are more likely to have higher energy levels, improved cognitive function and a stronger immune system. It reflected in Kapal Api Group’s investment in the new fitness center and also regular exercise clubs for its employees, such as yoga, poundfit, badminton, football, etc.

Financial wellbeing refers to an individual's financial security and stability. It involves having a clear understanding of one's financial situation, managing money effectively and meeting financial obligations. When individuals have financial wellbeing, they are less likely to experience stress and anxiety related to money. Kapal Api Group actively collaborates with prominent financial institutions to raise awareness and knowledge of financial management.

The above metrics are intangible assets that are often overlooked in some organizations, yet they can have a profound impact on the organization’s performance. There is much research that has proven that organizations with a focus on employee wellbeing will likely outperform their peers.

I am inviting all HR professionals and also business leaders to start taking these intangible metrics more seriously. Companies may have different approaches to implementing it. The simplest one is to take it into your board meetings. Or you can have it as your corporate-collective KPIs. One thing to remember is that it takes time to see the impact. You have to be persistent and patient in implementing it in your organization.

The articles from these contributors are based on their personal expertise and viewpoints, and do not necessarily reflect the opinions of their employers or affiliated organizations.
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