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proud smile was clearly written on Erry Sunarli’s face, when he was named one of the Top 10 Indonesia Future Business Leaders 2011 by SWA magazine. For the executive assistant to the chairman of the KMK Group – a multinational footwear manufacturing company producing global premium brands (Nike and Converse), this achievement was a matter of pride as well as recognition of his efforts thus far. However, Erry acknowledges that these achievements are shared by all KMK Group employees.

Erry asserts that his success cannot be separated from the company philosophy that always puts the interests of employees above all else. “KMK is committed to providing the best quality products and to being a great place to work with its Human Touch Management philosophy. In conducting business, we focus on people, diversity, the environment and local community,” said Erry.

Erry explained that in creating a strategic framework KMK uses human values and societal values as its decision making criteria. The company treats employees as family, with people being the most important asset in the company. “Therefore, KMK is willing to invest in the human side of organization, an investment that cannot be justified by immediate financial return but can help create a sustainable institution,” he added.

“I can say I have been a part of and have witnessed the manufacturing evolution in our company”
he said. “It is hard to imagine, you start to work at the company with only 10 people, which has now become more than 17,000 employees. And I am happy to be part of the process.” said Erry who has been working for the company for more than 18 years in various managerial positions. He participates in high level operation initiatives, including turnaround management and reorganization.

In line with the company philosophy, KMK encourages employees to continue develop their skills and knowledge by providing a further education program.

In 2001, KMK received an award from then president BJ Habibie for initiating a formal education program for employees in the company. During the period 1999 to 2007, 800 employees graduated from junior and high school.

Others training programs are also held in the company such as supervisory skills, lean manufacturing system, health and safety, and managerial skills.

For the management level, the company conducts multi-leadership training regularly and key managers are sent overseas for training to improve their competency.

“We have 13 NOS or lean sensei. Our people are the foundation of our success and the key to our future” said Erry.

According to Erry, KMK also has a unique management team. A combination of Indonesians and expatriates from Korea, Taiwan, China and Japan provide value for the company.

“We are diverse in nationalities but united by a culture that believes our diversity makes us stronger.
We have a coherent identity based on mutual respect and trust”, he added.

He explained that business is a primary pillar of society. In manufacturing its products, the company use processes that minimize any negative impact on the environment and that conserve energy and natural resources, as well as ensuring the safety and health of its employees, communities and consumers.

“This is what we call sustainable manufacturing”, said Erry who is a graduate of Gadjah Mada University majoring in international relations.

By collaborating with customers and other footwear manufacturers, in 2003, KMK established PT RCI (Recycle Centre Indonesia), the first recycling centre for footwear manufacturers in the country.

This is part of its corporate social responsibility. KMK’s chairman together with labor union leaders and several members of the board of directors visit an employee’s house and community in the area twice a month. This program began in 1998. “We call it Kunjungan ke Rumah Karyawan”, said Erry, who explained that it creates positive relationships and boosts employee engagement.

KMK’s investment in the community and its employees is seen by the recognition it has achieved. KMK hosted a dialogue between employees and all footwear business entities with president Megawati in July 2004.

The footwear company received the Green Factory Award from the governor of Banten in 2006 and an award for Best Company in EHS system in 2007.

In the same year, KMK received an award as Best Company in Managing Female Workers from President Susilo Bambang Yudhoyono and in 2010 as Best Company in Promoting Employee Health from the minister of health.

Erry explained that while volatility in the world economy continued this year, KMK kept focusing on innovation. “We also place a high premium on innovation” he said. Innovation according to Erry is an important part of KMK’s strategic plan.

The company gains input from the management, employees, customers and even business partners related to improvement of products, processes or the working environment. Innovation has become part of the company culture.

“In 2004, we received the Nike Innovation Excellence Award and in 2005 received the Best Nike Indo Manufacturing for Excellence,” said Erry.

“We believe that to have sustainable growth in the current business environment amid an atmosphere of uncertainty, and to be a great company we need to continue to innovate and create more value for stakeholders as well as to care for our people and society. All this is based on our principle of Human Touch Management.”