Organizational Transformation for Business Sustainability and Growth in Public Service Corporations

Public service companies are essential in society, providing reliable, affordable, high-quality services focused on customer satisfaction while meeting stakeholder expectations and regulations for sustainable business growth. Strategy innovation is necessary to achieve these goals. In Indonesia, public service companies are particularly consolidated by state-owned enterprises (SOEs), which the government fully owns. SOEs innovate by forming holding companies, which the government sees as the most effective way to create synergy. Studies show that 60%-70% of organizational changes fail, highlighting the importance of successful transformation in public companies. Ensuring smooth transitions with minimal disruption while maintaining service quality is crucial for good organizational performance in public service corporations. Efficiency in transformations and transitions can be achieved through change management. This study evaluates various change management factors and frameworks, examining their impact on organizational performance using the 7s McKinsey Change Model. The research involves a literature review, surveys, and descriptive statistical analysis. The results indicate that change management factors in the McKinsey model influence organizational performance. However, the optimal change management model for public companies remains undetermined, presenting opportunities for further research.