Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3, 403-425 2025 Publisher: Learning Gate DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate © 2025 by the authors; licensee Learning Gate History: Received: 7 January 2025; Revised: 13 February 2025; Accepted: 17 February 2025; Published: 6 March 2025 * Correspondence: wanghenny@apps.ipb.ac.id Developing a top talent readiness model for public service institution: A soft systems methodology (SSM) approach Henny Wang1*, Mohammad Syamsul Maarif2, Nimmi Zulbainarni3, Harri Kuswanda4 1,2,3,4School of Business, IPB University, Bogor, Indonesia; wanghenny@apps.ipb.ac.id (H.W.). Abstract: In today’s dynamic era of change, public service institutions must maintain a competitive advantage to ensure sustainable performance. This advantage can be achieved by delivering high- quality public services, supported by talented employees. However, developing top talent is no simple task; it requires an approach that is not only systematic but also aligned with the organization’s evolving dynamics. This study employs Soft Systems Methodology (SSM) to develop a conceptual model for top talent readiness in public service institutions, through BPJS Ketenagakerjaan as a case study. SSM is applied to explore various stakeholder perspectives and to understand the complexities within the top talent management system. The findings indicate that the success of this model depends on full support from top management, the ability to accurately identify key positions, a clear and objective talent identification process, and the integration of career planning and individual development with the organization’s overall strategy. Additionally, the study highlights that the approach based on The Performance-Competence-Credibility framework can serve as an alternative method for top talent identification, complementing existing frameworks such as the Nine-Box Talent Grid. These insights provide valuable guidance for public service institutions in designing a more effective and sustainable top talent management system. Keywords: Conceptual model, Public service institution, Soft Systems Methodology (SSM), Talent identification, Talent management, Top talent. 1. Introduction Change is constant and accelerating in today’s era of Volatility, Uncertainty, Complexity, and Ambiguity (VUCA). These rapid changes often create turbulence within organizations, requiring them to enhance their capabilities to remain competitive and survive in an increasingly demanding environment [1]. To navigate these challenges, organizations must establish a sustainable competitive advantage. According to the 2019 Mercer survey [2] competitive advantage through digitalization alone will not yield the desired impact unless accompanied by humanization. The Resource-Based View (RBV) theory suggests that a sustainable competitive advantage is derived from organizational resources that are valuable, rare, difficult to imitate, and non-substitutable. Human resources meet all these criteria and, therefore, serve as a key driver of sustainable competitive advantage [3, 4]. However, not all employees within an organization meet these criteria. Only high-performing and high-potential talent can act as a strategic asset that ensures long-term organizational success [5]. Consequently, identifying, managing, and actively developing talent is crucial in today’s business landscape. Investing in talent management strategies is essential to ensure the availability of highly skilled human resources who possess a global mindset. Talent management serves as a catalyst for organizations to gain a competitive advantage. Research has shown that effective talent management contributes significantly to sustainable competitive advantage [6]. Moreover, talent management practices play a critical role in shaping business dynamics 404 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate [7]. The primary objective of talent management is to enhance individual performance [8-10] while optimizing workforce potential to add value to the organization, both in the present and in the future. In other words, talent management supports individual contributions to organizational success [11-14]. Talented employees significantly impact organizational productivity in both the short and long term [15]. From this perspective, identifying and retaining high-quality talent is critical for organizations today [16, 17] including public service institution. According to Bozeman [18] public sector organizations differ from their private-sector counterparts in three key areas: government ownership, funding sources, and political control. Public sector organizations create value by providing essential public services [19]. One such entity in Indonesia is BPJS Ketenagakerjaan, a public service institution responsible for administering employment-based social security programs. On 31 December 2013, BPJS Ketenagakerjaan was formally established as a public service institution under the direct oversight of the President of the Republic of Indonesia. The organization administers five key Employment Social Security Programs: Work Accident Insurance/ Jaminan Kecelakaan Kerja (JKK), Unemployment Benefit/ Jaminan Kehilangan Pekerjaan (JKP), Old-Age Savings/ Jaminan Hari Tua (JHT), Pension Insurance (JP), and Death Insurance/ Jaminan Kematian (JKM). Mahfudz [2] highlighted that BPJS Ketenagakerjaan’s transformation was driven by a commitment to improving services for both existing and potential participants in Indonesia’s workforce social security system. While this transformation was initially mandated by Law Number 24/2011 on the Social Security Administering Body/ Badan Penyelenggara Jaminan Sosial (BPJS), the organization itself actively pursued change. BPJS Ketenagakerjaan sought to transition from an institution-oriented approach to a customer-oriented model. In line with Mahfudz [2] Susanto [20] emphasized the importance of a shared vision among BPJS Ketenagakerjaan personnel to shift their mindset from profit- driven objectives to a focus on public service excellence. Human capital management plays a crucial role in organizational transformation. The 2023 BPJS Ketenagakerjaan Integrated Report outlines the organization’s ongoing commitment to enhancing participant experiences and continuously improving service quality. According to Wicaksana [21] transformation is about preparing for the next phase of an organization’s journey. Transformation encompasses changes in strategy, organizational structure, culture, and technology. A shift in organizational paradigm is fundamental to building a sustainable competitive advantage, particularly as business and technology evolve rapidly. To fulfil its mandate, BPJS Ketenagakerjaan operates based on six value creation capitals (financial capital, human capital, manufactured capital, natural capital, intellectual capital, and social capital). Among these, human capital and intellectual capital are particularly crucial for fostering innovation and improving operational efficiency. Given this, BPJS Ketenagakerjaan must establish a comprehensive, standardized, and systematic talent management framework to develop a workforce that embodies dedication, competence, and integrity. Talent management is an integral part of BPJS Ketenagakerjaan’s human capital management system. Article 24 of Law Number 24/2011 stipulates that the Board of Directors is responsible for overseeing operational activities and ensuring that participants receive their entitled benefits. To fulfill this mandate, the Board of Directors holds full authority to define the organizational structure, key responsibilities, workflow procedures, and personnel policies. As a result, Board of Directors has full control over talent management policies and initiatives. Through an integrated talent management approach, organizations can develop top talent who are ready to drive sustained organizational success. Although various studies confirm that talent management enhances individual and organizational performance, some research presents conflicting findings. Prasetya, et al. [22] in their study The Influence of Talent Management and Knowledge Management on Employee Performance, found that talent management does not directly impact employee performance. Similarly, Ivana and Marzuki [23] reported no significant correlation between talent management and employee performance. Research by Abdullahi, et al. [24] suggests that talent management fails to yield significant results if not accompanied by adequate employee engagement. A 405 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate Fuller, et al. [25] article titled Hidden Workers: Untapped Talent also indicates that talent management does not always lead to performance improvements, often due to inadequate implementation. These mixed findings suggest that, while talent management generally contributes to performance improvements, its effectiveness depends on proper execution. Given the substantial investment required—in terms of effort, cost, time, and commitment—organizations, including BPJS Ketenagakerjaan, must ensure that these investments generate tangible performance improvements. Sustainable success can only be achieved if talent identification, development, and succession planning are seamlessly integrated, ensuring that top talent is fully prepared to drive organizational excellence. Therefore, public service institution must design a top talent readiness model that supports sustainable organizational performance. 2. Method This study employs the Soft Systems Methodology (SSM), a qualitative approach designed to analyze and improve complex human activity systems. Soft Systems Methodology (SSM) is a methodological approach introduced by Peter Check land to help organizations visualize their goals by designing a system of human activities aimed at achieving these objectives. In contrast to the hard systems approach, which is more structured and engineering-based, SSM places greater emphasis on the human and social aspects of a system. The SSM approach consists of seven sequential steps, which are: Step 1 Identifying the problem situation, understanding the issues perceived as problematic within the current system. Step 2 Expressing the problem situation, documenting the different stakeholder perspectives and concerns. Step 3 Formulating root definitions of relevant purposeful activity systems, root definition serves as a foundation for developing conceptual models. Step 4 Developing a conceptual model, constructing a framework based on the previously defined root definitions. Step 5 Comparing the conceptual model with real-world conditions, evaluating how well the proposed model aligns with the actual system. Step 6 Identifying desirable and culturally feasible changes, determining changes that are both systematically beneficial and culturally acceptable. Step 7 Implementing actions to improve the problematic situation, taking practical steps to resolve the identified issues. In this study, step 7 which involves the implementation of real-world improvements; was beyond the research scope and, therefore, was not conducted. 406 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate Figure 1. Seven Steps Soft Systems Methodology (SSM) Approach. Source: Checkland [26]. Analyzing information from unstructured human perceptions can be effectively conducted using SSM, as this methodology has evolved from a rigid hard system approach into a soft system approach, which acknowledges reality as inherently problematic. SSM is highly useful for analyzing stakeholder viewpoints across various domains to find solutions and address challenges. When analyzing real-world problems, SSM provides a structured yet flexible information framework, allowing for a more systematic approach. Considering that developing a top talent readiness model for public service institution involves complex, dynamic, and continuously evolving human activity systems, SSM is considered the most appropriate approach. This complexity arises from the thoughts, conversations, and actions of individuals with differing roles, objectives, and perspectives [27]. This study engaged seventeen experts, including regulators, academics, management representatives, and human resources practitioners, for in-depth interviews or focus group discussions. These individuals were selected based on their experience and direct involvement in talent management. 3. Applying Soft Systems Methodology (SSM) Analysis 3.1. Step 1: Identifying the Problem Situation At this stage, the initial step for researchers in understanding the problematic situation is conducting the first analysis, which focuses on intervention analysis. This involves identifying three key parties related to the problematic situation under study [27]. These three roles include (1) the client, (2) the practitioner, and (3) the issue owner. The client refers to an individual or a group that triggers the intervention in the problematic situation being examined. The practitioner is the individual or group responsible for conducting the research investigation. Meanwhile, the issue owner is an individual or group that is specifically considered as the primary focus or is directly affected by the situation and the findings of the investigation. The issue owner represents the stakeholders or those impacted by the situation or by any efforts undertaken to improve it. According to Checkland and Poulter [27] and Hardjosoekarto [28] the focus is on the functions of these three roles rather than on specific individuals or groups. Consequently, an individual or group may assume one or multiple roles simultaneously. 407 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate Table 1. The First Analysis (Intervention Analysis). Role Role Description Actor Client An individual or group that triggers an intervention in the problematic situation being examined. 1. Supervisory Committee: ▪ Prof. Dr. Ir. M. Syamsul Maarif, M. Eng. ▪ Dr. Nimmi Zulbainarni, S.Pi, M.Si. ▪ Dr. Harri Kuswanda, S.Sos., M.S.M. 2. Researcher: Henny Wang Practitioner An individual or group responsible for conducting the research investigation. 1. Researcher: Henny Wang Issue Owner An individual or group specifically considered as the primary focus or affected by the situation and the investigation results. 1. Top Management of BPJS Ketenagakerjaan 2. Human Capital (HC) and Learning & Development (L&D) Division of BPJS Ketenagakerjaan In addition to the first analysis, this stage also involves the second analysis (social analysis) and the third analysis (political analysis). The second analysis focuses on understanding the broader social context, allowing researchers to develop a more comprehensive depiction of real-world situations [28, 29]. According to Checkland and Poulter [27] the second analysis centers on three key social elements: roles, norms, and values of the actors involved. The actors in this analysis include stakeholders: Top Management (Board of Directors), Board of Commissioners, The Supervisors of Top Talent, HC and L&D Division, and Assessment Institution. Roles refer to the social positions that distinguish the authority and responsibilities of different actors. Norms represent the expected behaviors associated with each role. Values are the fundamental principles that guide stakeholders in fulfilling their roles and adhering to norms. These three social elements are deeply interconnected, dynamic, and continuously evolving over time in response to real-world changes. 408 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate Table 2. The Second Analysis (Social Analysis). Stakeholder Identification of Roles, Norms, and Values Top Management (Board of Directors) Role Responsible for the operational management of BPJS Ketenagakerjaan, ensuring that participants receive their benefits appropriately; including setting directions and fundamental principles for top talent readiness, approving policies, and actively participating in their implementation and evaluation Norms AD/ART, Board Manual, Integrity Pact, Code of Ethics, Company Regulations Values Faith, Excellence, Exemplary Leadership, Harmony, Integrity, Empathy, Enthusiasm Board of Commissioners Role Conducts supervision, provides advice, recommendations, and considerations to the Board of Directors regarding policies and implementation in BPJS management, including policies and implementation related to top talent readiness Norms AD/ART, Board Manual, Integrity Pact, Code of Ethics, Company Regulations Values Faith, Excellence, Exemplary Leadership, Harmony, Integrity, Empathy, Enthusiasm Superiors of Top Talent Role Assess, mentor, develop, evaluate, and provide feedback to top talent Norms Integrity Pact, Code of Ethics, Company Regulations Values Faith, Excellence, Exemplary Leadership, Harmony, Integrity, Empathy, Enthusiasm HC and L&D Division Role Design policies and programs for top talent readiness, implement, evaluate, and make improvements in the top talent readiness process Norms Integrity Pact, Code of Ethics, Company Regulations Values Faith, Excellence, Exemplary Leadership, Harmony, Integrity, Empathy, Enthusiasm Assessment Institution Role Conduct competency and potential assessments to identify top talent Norms Integrity Pact, Code of Ethics, Cooperation Agreements Values Faith, Excellence, Exemplary Leadership, Harmony, Integrity, Empathy, Enthusiasm The third analysis aims to conduct a political study that influences the real-world situation under investigation [29]. In the Soft Systems Methodology (SSM), it is strongly believed that politics plays a crucial role in shaping various aspects, including determining what can and cannot be done. The focus of the third analysis is on: (1) the process of identifying the arrangement or disposition of power and (2) the process of understanding the nature of power embedded within the actors. 409 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate Table 3. The Third Analysis (Politic Analysis). Stakeholder Power Disposition and Form of Authority Top Management (Board of Directors) Power Disposition Has the power to set the direction and fundamental principles of the top talent readiness Form of Authority Has formal authority to approve and establish policies and allocate resources in the top talent readiness program Board of Commissioners Power Disposition Has the power to influence the direction and fundamental principles of top talent readiness through advice, suggestions, and recommendations to the Board of Directors Form of Authority Has the authority to ensure compliance and effectiveness of top talent readiness policies and to hold the Board of Directors accountable for policy implementation Superiors of Top Talent Power Disposition Has the power to influence the development and readiness of top talent through guidance, feedback, and developmental support Form of Authority Has the authority to assess, mentor, evaluate, and develop top talent under their responsibility HC and L&D Division Power Disposition Has the power to determine standards, policies, and systems used in top talent readiness and provide recommendations to management Form of Authority Has the authority to design, manage, and evaluate policies and programs for top talent readiness throughout the organization Assessment Institution Power Disposition Has the power to determine the quality and readiness of top talent based on the assessment results Form of Authority Has the authority to conduct assessments and provide objective recommendations to the organization regarding the readiness and competencies/potential of top talent In identifying situations deemed problematic, the researcher conducted a series of Focus Group Discussions (FGDs) and in-depth interviews with experts. Several key themes emerged as common threads from these discussions and analyses: First, objectivity and transparency are recurring concerns in the management of top talent. The identification of top talent is based on performance evaluations and potential assessments, which are subsequently mapped within the nine-box matrix. However, these categorizations may shift following validation by supervisors. This adjustment is understandable, as certain factors may not be fully captured through performance evaluations and assessment results alone. Supervisors, who interact with employees on a daily basis, provide valuable insights and observations that complement these formal assessments. To address concerns regarding objectivity and transparency, it is essential for employees to trust both management and the HC division whom responsible for talent management. This trust can be built through clear, well-communicated policies and guidelines. Additionally, beyond simply having structured policies in place, management and HC division must actively foster strong relationships with employees—both formally and informally. When employees feel a genuine connection with leadership and HC division, they are less likely to perceive hidden agendas in the talent identification and selection process. Second, as highlighted in the first point, fostering employee trust requires well-defined policies and clear communication. Employees need to fully understand what constitutes talent and top talent, why top talent readiness is essential, what the selection criteria are, how the process unfolds, how it is implemented, and how they can participate or contribute. In practice, top talent readiness intersects with multiple HC functions. At BPJS Ketenagakerjaan, HC Division is responsible for identifying and managing top talent, while the L&D Division oversees talent development programs. Therefore, it is crucial to establish a comprehensive and well-integrated policy framework that ensures alignment, 410 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate consistency, and coherence across all talent-related initiatives. This approach helps prevent redundancy, misalignment, or conflicting policies that could hinder effective top talent readiness. Third, an organization’s top talent readiness strategy must align with its broader strategic objectives. Thus, it is important to clearly define the purpose of top talent programs and their expected impact on the organization. The BPJS Ketenagakerjaan 2023 Integrated Report underscores the organization's commitment to continuously enhancing participant experiences and transforming service quality to meet the diverse needs of its members. Achieving this vision requires a pipeline of leaders and key position holders who are equipped with the necessary competencies, particularly in non-technical skills that drive transformation and sustainable performance. Fourth, the success of top talent readiness initiatives hinges on the collective efforts of multiple stakeholders—it is not solely the responsibility of HC and L&D Division. Top management (Board of Directors) plays a critical role in ensuring the success of these initiatives. Their active support and involvement are essential, as leadership commitment sets the tone for the entire organization. When senior leaders demonstrate a strong commitment to top talent readiness, they inspire supervisors to take an active role in nurturing and preparing their employees for future leadership positions. To foster this culture, organizations must instill a “leader as a people developer” mindset, encouraging supervisors to genuinely invest in the growth of their subordinates. When leaders take pride in their employees' success, it helps mitigate negative attitudes, such as feeling too busy to mentor, fearing that top talent will be recruited by other leaders, or worrying that subordinates might surpass them in rank. A true people-developer leader provides continuous feedback, offering constructive guidance while also recognizing achievements, thereby fostering a culture of continuous growth and development. Fifth, for top talent to thrive, career development must be supported by structured career consultations and well-defined career paths. Career consultations serve as a platform to understand employees’ career aspirations. However, these aspirations should not be granted automatically—they must be supported by the necessary competencies and aligned with the organization’s strategic needs. The process of aligning individual aspirations with the organization's career pathways should serve as a foundation for crafting personalized development plans for top talent. Sixth, in top talent readiness, effective communication must extend beyond simple dissemination of information. To ensure lasting internalization, talent management principles should be deeply embedded within the organization's culture, fostering ongoing engagement. Employees should not only be aware of top talent readiness programs but also develop a deep understanding and appreciation for them. Ideally, talent management should become an integral part of employees’ daily experiences, naturally embedded within the organization’s way of working. 3.2. Step 2: Expressing the Problem Situation At this stage, based on the situations and issues identified in the first step, the researcher structures the problem situation and illustrates it using a rich picture diagram. The purpose of this visualization is to highlight relationships, provide assessments, and utilize symbols to represent the situation while indicating connections relevant to potential solutions. There is no rigid or classical technique, nor is artistic skill required in creating a rich picture, as it serves as a comprehensive depiction of the problematic situation [27]. 411 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate Figure 2. Rich Picture. 3.3. Step 3: Formulating Root Definitions of Relevant Purposeful Activity Systems In step 3, the researcher enters the system thinking phase, which involves: (1) defining the root definition and (2) developing a conceptual model based on the purposeful activity system. The root definition is determined based on the rich picture created in the previous stage, aiming to describe the transformation process and situational changes that occur in the real world. It serves as a statement that outlines the elements, functions, and objectives within the system. Forbes [30] defines the root definition as "a statement that defines what the activity is and why it can be considered meaningful." According to Wilson [31] it is a way to capture and understand the essential purpose that needs to be achieved, rather than something that exists in the real world. The root definition follows the PQR formula, as proposed by Checkland and Scholes [29]: “A system to do P by Q in order to achieve R.” This root definition is then refined and finalized using the CATWOE analysis, followed by performance measurement criteria based on the 3E framework (efficacy, efficiency, and effectiveness). Hardjosoekarto [28] notes that in practice, this 3E framework has evolved into a more comprehensive 5E framework (efficacy, efficiency, effectiveness, elegance, dan ethics). Once the root definition is established, the researcher proceeds with constructing the conceptual model [27]. At this stage, the model is developed based on a purposeful activity system. Checkland and Scholes [29] describes a conceptual model as a representation of system activities, with elements structured as verbs to outline the necessary actions. This model is derived from the root definition, and its verb structure follows a logical foundation. While each model remains relevant to the situation being analyzed, it does not necessarily represent the situation itself. If the root definition answers the question "What is the 412 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate system?", then the conceptual model focuses on "What must the system do to align with the defined purpose?" In this study, the root definition formulated using the PQR structure is as follows: “Designing a conceptual model for top talent readiness (P) through systematic and objective management, comprehensive, transparent, and well-defined policies, as well as adaptive and sustainable change management (Q), to ensure that top talent contributes to the sustainable performance of public service institution (R).” The root definition is tested and refined using the CATWOE analysis, which consists of six key elements. The results of this analysis, mapped to each element, are presented in the following table: Table 4. CATWOE Analysis based on Root Definition Element Definition Application in This Study C Customers Individuals or groups who are directly or indirectly impacted, either positively or negatively, by the transformation process within an organization Top Talent A Actors Individuals or groups responsible for carrying out activities related to the transformation process (T) Top Management (Board of Directors), HC and L&D Division, Supervisors of Top Talent T Transformation Process The process of converting inputs into outputs, which can be either tangible or intangible The transformation process involves shifting from the current management of top talent—along with its associated challenges—towards a more systematic and objective approach. This transition is supported by comprehensive, clear, and transparent policies, along with an adaptive and sustainable change management framework. W Worldview The perspective, framework, or underlying rationale that gives meaning to the root definition and the transformation process (T) within the given context The readiness of top talent is a strategic initiative aimed at ensuring the continuous availability of competent leaders and key position holders. This effort is designed to enhance the long-term performance and sustainability of BPJS Ketenagakerjaan. O Owners Individuals or groups who have authority over the system and the power to modify or terminate the transformation process Top Management (Board of Directors), HC and L&D Division E Environmental Constraints External factors that pose challenges or limitations to the transformation process (T) Budget constraints and regulatory policies imposed by governing authorities The model for top talent readiness is a transformation process that shifts the current management of top talent—along with its associated challenges—toward a more systematic and objective approach. This transformation is supported by comprehensive, clear, and transparent policies, as well as an adaptive and sustainable change management framework (‘T’). It serves as a strategic initiative to ensure the continuous availability of high-caliber leaders and key position holders, ultimately enhancing the long-term performance and sustainability of BPJS Ketenagakerjaan (‘W’). The key actors responsible for driving this transformation process include Top Management (Board of Directors), HC and L&D Division of BPJS Ketenagakerjaan, and supervisors of top talent (‘A’). The beneficiaries of this transformation are the top talents themselves (‘C’), while the issue owners are Top Management (Board of Directors) and the HC and L&D Division of BPJS Ketenagakerjaan (‘O’). The primary challenges faced in this process involve budget constraints and regulatory policies set by governing authorities (‘E’). The next step in this process is to conduct a performance measurement analysis using the 5E framework—which consists of efficacy, efficiency, effectiveness, elegance, and ethics—as outlined below: 413 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate Table 5. 5E Analysis based on Root Definition. Elemen Definition Application in This Study Efficacy Evaluates whether the transformation process of the targeted activity system can indeed take place as intended Ensuring the continuous availability of highly capable leaders and key position holders who can effectively contribute to enhancing the long-term performance of BPJS Ketenagakerjaan Efficiency Assesses whether the transformation is carried out with optimal resource utilization, ensuring minimal waste The top talent readiness process is carried out in a structured and well-directed manner, ensuring optimal allocation of resources, including manpower, time, and costs, to achieve targeted outcomes Effectiveness Measures the extent to which the transformation of the activity system contributes to achieving broader and more ambitious goals The achievement of measurable performance targets for top talent, positively impacting organizational sustainability and the realization of BPJS Ketenagakerjaan’s vision and mission Elegance Examines whether the transformation process is executed in a refined, seamless, and well-structured manner The top talent readiness process is conducted harmoniously, with clarity and transparency, fostering trust, full support, and active participation from all relevant stakeholders. Ethics Determines whether the transformation process is morally justifiable and aligns with ethical considerations Prioritizing the principles of fairness, clarity, transparency, and objectivity, with a strong foundation in data-driven decision-making This structured approach ensures that the transformation of top talent management is not only feasible and resource-efficient but also strategically aligned, ethically sound, and sustainable for the long-term success of BPJS Ketenagakerjaan. 3.4. Step 4: Developing a Conceptual Model At this stage, the researcher develops a model without directly referring to real-world conditions. This means that the conceptual model is constructed based on the researcher’s ideas, which are grounded in relevant theories and formal rules. As a result, systems thinking plays a crucial role in this process [27]. According to Fitriati [32] the development of a conceptual model must adhere to the following principles: ▪ The conceptual model must be constructed using words derived from the root definition, without linking it back to any specific situation. The researcher should incorporate various activities or groups of activities into the conceptual model, ensuring they are supported by the wording within the root definition. ▪ The researcher must use terminology that accurately describes the activities within the transformation process. This is essential, as each activity in the conceptual model can serve as a foundation for refining the root definition, further system analysis, and the development of a more detailed conceptual model. ▪ The conceptual model must be justifiable. Therefore, it should establish clear relationships that explain the availability of resources and include a dedicated monitoring and supervision subsystem to ensure accountability. The conceptual model for top talent readiness to enhance the sustainable performance of public service institution, as developed in this study, must begin with securing full support from top management. Without this foundational commitment, subsequent activities will not be executed optimally. The next steps is (1) identifying key positions based on risk assessment; (2) determining an objective, data-driven method for identifying top talent; (3) developing individual career planning guidelines along with success indicators; (4) establishing individual development planning guidelines along with success indicators; (5) creating placement guidelines. All these activities must be reinforced by (6) standardizing policies and implementation guidelines; (7) implementing change management based on organizational culture; (8) conducting regular monitoring and evaluation; and (9) continuously improving the process. 414 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate Figure 3. Top Talent Readiness Model for Public Service Institution. 3.5. Step 5 And 6: Comparing the Conceptual Model with Real-World Conditions; And Identifying Desirable and Culturally Feasible Changes At this stage, the conceptual model that has been developed is compared with actual conditions in the field. As described by Fitriati [32] in the comparison phase, the conceptual model is evaluated against a theoretical framework aligned with the research interest. This can be achieved through discussions or interviews, referencing the elements within the conceptual model that has been established. The process involves posing relevant questions such as: “What is the reality in practice?”, “How is this process carried out?”, “Who is responsible for it?”, “When does it take place?”, “How is it justified?”, and so forth. The insights gained from aligning the model with real-world conditions serve as valuable input for formulating improvement actions. 415 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate Table 6. Comparison of the Conceptual Model with Real-World Conditions and Improvement Actions. Conceptual Model Activities Actual Conditions in the Real-world Existing Gaps Proposed Improvement Actions Activity (0) Obtaining full support from top management There are seven Directors who have expressed their full support. The full and collective support, along with the engagement of all Board of Directors, can be further strengthened. Conducting regular discussion forums attended by all Directors, specifically to review key talent- related matters, set priorities, and ensure consistent support and commitment from the Directors. Activity (1) Identifying key positions based on risk management Talent management has been implemented to all positions All positions are considered a priority. Identifying crucial leader and key positions that must always be available. Activity (2) Determining an objective, data-driven method for identifying top talent A nine-box grid assessment has been conducted to identify top talent. The supervisor validation process is conducted as a follow-up to the nine-box grid. Establishing the most suitable method for talent identification aligned with organizational needs. Activity (3) Developing individual career planning guidelines along with success indicators Career consultation activities are ongoing. Talents would benefit more from clearer references and guidelines to better support their career development. Creating career planning guidelines for top talent, along with success indicators that align with career paths and organizational needs. Activity (4) Establishing individual development planning guidelines along with success indicators Individual development plans are available. The development plan is in the process of being tailored to align more closely with individual career plans. Establishing guidelines for talent development plans, including success indicators, to ensure alignment with individual career planning. Activity (5) Creating placement guidelines Placement guidelines and policies such as the Career Score System (CSS) have been implemented, using specific criteria and standards. The talent placement process could be further structured and refined. Reviewing placement guidelines to ensure alignment with career paths, organizational short-term and long- term needs, and making necessary improvements. Activity (6) Standardizing policies and implementation guidelines Several policies related to talent management are already in place. Room for improvement in the integration of the entire talent management process. Developing a comprehensive HC Policy and its derivatives to ensure a structured talent management process and systematic succession planning. Activity (7) Implementing change management based on organizational culture Talent management has been socialized among employees. Not all employees fully understand the talent management process. Designing a structured socialization program that effectively communicates the management approach, fosters trust, and integrates organizational culture into the process. Activity (8) Conducting regular monitoring and evaluation Monitoring and evaluation have been conducted. Room for improvement in the established mechanism for continuous monitoring to ensure program sustainability Establishing a systematic and data- driven monitoring and evaluation system with clear indicators. Activity (9) Continuously improving the process Improvements are made when issues arise. There is room for improvement in structuring and embedding continuous improvement as a routine agenda. Adopting a continuous improvement approach based on the PDCA (Plan- Do-Check-Act) cycle. 416 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate 4. Discussion 4.1. Activity (0) Obtaining Full Support from Top Management Suryanto [33] stated that implementing talent management concepts requires strong commitment from organizational leaders and all levels of the organization. Warman [34] emphasized that fostering awareness and engagement among top executives is essential in preparing top talent for the future. Davis, et al. [35] argued that a successful talent management strategy must be accepted and supported at the Board of Directors level. Seno [36] highlighted that managerial success is influenced by the confidence, commitment, and support of top leadership. The pivotal role of senior executives significantly determines whether talent management programs can be effectively implemented. Aprinto, et al. [20] suggested that talent management policies reflect the dedication of organizational executives to empowering a pool of talented employees who will drive the organization’s strategic initiatives. Without such executive support, top talent may struggle to thrive, as they risk being overshadowed by broader social dynamics within the organization. 4.2. Activity (1) Identifying Key Positions Based on Risk Management Identifying key positions within an organization is essential, considering that excessive investment may occur if all positions are managed as part of the talent pool. Once these key positions are identified, they must be filled with individuals who demonstrate both high potential and strong performance. Zulkarnain [5] emphasized that systematically identifying specific roles that play a critical role in organizational success is a fundamental step, as not all positions contribute equally to an organization's strategic objectives. Therefore, greater focus should be directed toward roles that significantly impact the organization’s strategic goals [3]. It is crucial to highlight the identification of key positions that have the potential to create a distinct competitive advantage for the organization [37]. Aprinto, et al. [20] pointed out that ensuring a sustainable pipeline of competent leaders and employees across all organizational units is vital for executing strategy effectively. Meanwhile, Afdal [38] defined key positions as roles that significantly influence organizational performance in areas such as revenue, cost, quality, customer engagement, or other aspects deemed critical to the organization’s strategy. At BPJS Ketenagakerjaan, the principle of risk management incorporates human and cultural factors, with the objective of creating and preserving value by enhancing performance, fostering innovation, and supporting the achievement of organizational goals. Risk is defined as the effect of uncertainty on objectives. In operational activities, a shortage of leaders and key positions could lead to participant dissatisfaction with BPJS Ketenagakerjaan’s services. From a strategic perspective, such shortages could hinder sustainable performance achievement and slow down the organization’s transformation process. 4.3. Activity (2) Determining an Objective, Data-Driven Method for Identifying Top Talent Despite extensive research demonstrating that effective talent management contributes to improved individual and organizational performance, several challenges arise during its implementation. Under an inclusive approach, talent is defined as all employees within the organization, each requiring development opportunities and equal career prospects [39]. However, given the limited number of human resources dedicated to talent management and budget constraints for employee development, an exclusive approach is necessary. In this approach, talent is defined as the top 10% of employees with the highest performance and potential [39]. Consequently, targeted talent identification is crucial, ensuring that the most capable employees receive priority for development. Rahman [40] conducted a study on public sector organizations in Pakistan and found that selecting the right individuals for key public sector positions remains a challenge. Similarly, Poocharoen and Lee [41] examined talent management practices in the public sector by comparing approaches in Singapore, Malaysia, and Thailand. Their findings suggest that government organizations should adopt both inclusive and exclusive approaches in their talent management strategies, ensuring that the right 417 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate individuals are entrusted with its execution. Poocharoen and Lee [41] argue that an inclusive approach should involve employee development efforts, including internal training programs. The literature underscores that talent management encompasses activities and processes that systematically identify key positions that contribute uniquely to an organization’s sustainable competitive advantage. A talent pool consists of top talent prepared to assume leadership responsibilities in the long term. Employees within a talent pool come from diverse backgrounds, each with specialized expertise in their respective fields. At BPJS Ketenagakerjaan, the talent pool comprises employees with high potential, strong competencies, and outstanding performance. Based on this definition, individuals included in the talent pool must meet three criteria: potential, competence, and performance. Potential refers to intellectual, emotional, and psychological intelligence; competence signifies superior knowledge, skills, and work attitudes; while performance reflects high achievements. Talent selection is based on performance evaluations, competency assessment results, achievements in leadership development programs, professional accomplishments, recognition, and adherence to disciplinary policies [20]. Competency assessment through an assessment center is a key method used by BPJS Ketenagakerjaan to map employee competencies. In this approach, multiple assessors (multi-assessor) evaluate candidates using various assessment tools (multi-tools) to gather behavioral evidence and measure the extent to which participants possess the required competencies for a given role. This process ensures that the right individuals are selected for the right positions. The assessment center also analyzes supervisory and managerial capabilities to identify strengths and areas for development, serving as a basis for further talent development programs. Beyond competency assessments, top talent mapping also incorporates individual performance data. Employee performance management at BPJS Ketenagakerjaan is governed by Board Regulation Number 35/2018 on Strategy-Based Employee Performance Management Guidelines [42]). This system aligns employee performance management across the Head Office, Regional Offices, and Branch Offices with organizational and unit-level objectives. BPJS Ketenagakerjaan evaluates employee performance using Key Performance Indicators (KPIs) [20, 42]. Additionally, employee performance scores are integrated with competency assessments through a 360-degree multirater evaluation. The weight distribution between KPIs and competency assessments varies based on job level, with higher- ranking positions placing greater emphasis on KPIs. The outcomes of these evaluations serve as the foundation for top talent mapping and identification, using the nine-box talent grid. A validation process follows, conducted by supervisors, which may result in adjustments to the initial mapping. Employees in top talent box may either retain their top talent status or be reassigned, while employees initially outside top talent box may be recognized as top talent based on managerial validation. This process is often perceived as subjective by employees. However, it is a necessary step, given that certain factors influencing talent identification may not be fully captured in performance evaluations or competency assessments. Managerial validation, based on direct observations and daily interactions, provides a more comprehensive perspective on employee potential. A similar approach to top talent mapping and identification is applied at BPJS Kesehatan. Employee performance evaluations and competency level assessments are plotted on a talent diagram (nine-box grid). Following this mapping process, a talent committee conducts a validation process to assess the accuracy of employee placement within the grid, particularly in the star talent (top talent) category. The committee determines whether employees classified as star talent should retain their designation or be reassigned [38]. To ensure transparency and acceptance of the talent mapping and identification process, BPJS Kesehatan consistently conducts socialization and internalization efforts, fostering understanding and engagement among employees and leadership. Based on discussions with practitioners and experts, the perception of subjectivity among employees arises because the validation process carried out by superiors can result in an employee moving between categories, either entering or exiting top talent box. Consequently, performance and competency/potential assessments seem to have little impact, as the final decision ultimately rests with the superiors. 418 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate According to experts, the validation process by superiors is a reasonable necessity, considering that certain factors are not captured in performance evaluations and competency/potential assessments. These factors include political intelligence and work ethic, which require observation and validation by superiors who interact with employees daily. Hartley [43] a professor of public leadership at The Open University Business School, states that political intelligence is a valuable tool for influencing and engaging stakeholders. It also helps leaders understand others and achieve organizational outcomes. Political intelligence involves understanding the existing situation and leveraging it for individual advantage. Historically, politics has been perceived negatively in the management world, often associated with manipulative, cunning, and self-serving behavior. However, politics is not solely about conflict but also about creating sufficient agreements to work more productively as an organization. Political intelligence is often referred to as the 'art of getting things done.' It involves working in competitive and conflict-prone situations to achieve organizational and social goals. Hartley [43] cites research evidence indicating that individuals apply their political intelligence across various workplace situations. These skills are essential for leaders when interacting with people within their organizations, including dissenting groups, peers, partners, and superiors. In a survey conducted by Hartley in the UK, 1,500 respondents identified situations where political skills were most frequently applied. Out of 15 options, the highest percentage—76%— indicated that political skills were particularly valuable when working with influential individuals within the organization. Although the term 'political intelligence' generally carries more negative than positive perceptions, these skills are, in fact, essential for individuals within an organization. Workplace politics is a natural and neutral aspect of professional life. In reality, political skills are a necessity, and when used appropriately, they can be leveraged to create positive outcomes for both individuals and organizations. Horth and Miller [44] found that individuals with strong political intelligence have better career prospects, are seen as more promotable, and are less likely to experience career failure. Political intelligence is the ability to maximize and utilize relationships to achieve organizational, team, and individual goals. Those who struggle with workplace politics or deliberately avoid and ignore it risk missing out on significant opportunities, connections, and resources. According to Horth and Miller [44] organizational politics is a topic that is sometimes controversial and frequently debated. Many leaders in large organizations express frustration at having to acknowledge the presence of politics, let alone engage in political behavior to advance their careers. They question the ethics of behaving in ways that may feel inauthentic, manipulative, or self-serving. Therefore, political intelligence must be balanced with a strong work ethics. In the Kamus Besar Bahasa Indonesia (KBBI), ethics is defined as the study of what is good and bad, as well as moral rights and obligations. Work ethics, in simple terms, can be described as a set of principles related to morality, particularly human behavior. More specifically, work ethics concern what is morally right, honorable, and generally acceptable within an organization, society, or group [45]. Work ethics encompass attitudes, perspectives, habits, characteristics, or attributes related to an individual’s, a group’s, or even a nation’s approach to work [46]. They can also be understood as a belief system about work that is considered good and right by individuals or groups, which is then reflected in their actual work behavior [47]. According to Wakhyuni and Dalimunthe [48] work ethics consist of several key indicators: responsibility, diligence, efficiency, and respect for time. Responsibility involves a sense of accountability not only to one’s immediate supervisors or workplace but also, on a deeper level, to a higher spiritual or moral calling. This means that an individual recognizes that their responsibilities extend beyond professional obligations and are ultimately a reflection of their integrity and ethical commitment. The integration of political intelligence and work ethic aligns with Mayo's theory. According to Mayo [49] and Mahfudz [2] individual capability includes the criterion of 'the network and range of personal contacts,' which refers to having an extensive network or connections, particularly with individuals related to one’s profession—similar to political intelligence. Additionally, the criterion of 419 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate 'the value and attitudes that influence action' suggests that values and attitudes shape behavior in the workplace—similar to work ethic. Political intelligence and work ethic are two essential elements that shape credibility. Political intelligence enables individuals to understand power dynamics, build strategic relationships, and communicate effectively, while work ethic ensures that every action and decision is grounded in moral values. When political intelligence and work ethic operate in tandem, trust emerges. Building credibility is not merely about skillfully navigating political situations but also about upholding ethical values in every decision and action. Credibility is the logical and rational basis for trustworthiness. The higher an individual's or source’s credibility, the greater the likelihood that their conveyed information will be accepted and trusted by others [50]. In implementing the top talent readiness in public service institution, the assessment of credibility—including political intelligence and work ethic—is conducted by superiors through the formation of a talent committee. Given the large number of employees, the establishment of talent committees can be carried out at each organizational layer. Based on discussions with experts, employees’ perception that performance and competency/potential assessments have little impact— since final decisions ultimately rest with superiors—can be mitigated by incorporating performance and competency/potential evaluations alongside credibility assessments by the talent committee (superiors) in the talent identification process. This alternative approach can be considered alongside the current method, which relies on the nine-box model with superior validation. Under this measurement approach, the weight given to superiors’ assessments is 40%, while performance and competency/potential assessments each hold a weight of 30%, making up a total of 100%. The results of performance evaluations, competency/potential assessments, and credibility assessments are expressed in numerical values. These individual scores are then compiled and ranked from highest to lowest within each organizational level. The identification of top talent follows the Power Law Distribution approach, where the top 10% of employees with the highest scores are classified as top talent. According to Aguinis and O'Boyle Jr [51] as cited in Ekananta [52] employee productivity has seemingly shifted toward a distribution model that allows for the emergence of star performers. The Power Law Distribution is defined by its tail, where approximately 30% of total productivity is contributed by the top 10% of employees, while 50% of productivity comes from the top 25% of employees. In the context of preparing top talent, the top 10% of employees—are identified as top talent. Figure 4. Top talent identification method based on performance, competency/potential, and credibility, with results processed using the power law distribution. The Power Law Distribution approach aligns with the objective of preparing top talent within public service institution, which is to ensure the availability of leader and key positions within the organization. Therefore, the purpose of mapping based on performance, competency/potential, and credibility is to identify top talent. Aprinto, et al. [20] stated that the talent management approach 420 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate emerged precisely due to the failure of conventional human resource management concepts, which tended to treat all employees equally in terms of opportunities and career development. Traditional HR approaches that apply uniform treatment to all personnel often result in management spending more time addressing underperforming employees rather than focusing on developing the organization’s top talent. According to research conducted by the Corporate Leadership Council [53] it is estimated that only 15% of individuals demonstrate both high performance and high potential. Meanwhile, Gallardo, et al. [39] suggested that talent comprises the top 10% of employees in terms of both performance and potential. 4.4. Activity (3) Developing Individual Career Planning Guidelines Along with Success Indicators Competency serves as the foundation for determining career progression, ensuring that the right individuals are placed in key positions within the organization [20]. The development of individual career plans must be supported by: (1) career consultations to gather career aspirations from top talent and (2) career pathways and maps that illustrate positions with the highest likelihood of being achieved based on overall competency similarities. The organization not only provides direction but also aligns individual career plans with the organization's career framework. This alignment is crucial because every top talent has their own expectations regarding their career trajectory. However, these expectations cannot always be fully realized, as they must be balanced with the needs of the organization. Therefore, a guidance phase is necessary—an effort to help top talents achieve their aspirations. This is facilitated through career counseling and informational support services [33]. According to Afdal [38] career management is fundamentally a process of balancing individual career aspirations—including values, interests, and competencies—with organizational needs, ensuring the availability of successors for key positions. The implementation of career management is carried out through career pathways, which illustrate both vertical and lateral career movements from one position to another in the pursuit of higher roles. The purpose of career pathways is to support the achievement of organizational objectives by ensuring the availability of competent personnel. A career pathway outlines the sequence of positions based on the required competencies and work experience. It also establishes the necessary competency, performance, and experience requirements for advancement to higher positions [2]. Career mapping provides a visual representation of roles that have the highest probability of leading to target positions based on overall competency similarities. Competency also serves as a fundamental criterion in career development, particularly for promotion considerations to higher positions. Having a career map is like using Google Maps for a journey—it serves as a guide, providing direction and clarity in navigating career progression toward the intended destination. 4.5. Activity (4) Establishing Individual Development Planning Guidelines Along with Success Indicators Aprinto, et al. [20] and Mahfudz [2] argue that competency serves as the foundation for developing an Individual Development Plan (IDP). Based on performance evaluations or assessment results, if a gap is identified between job requirements and employee competencies, an IDP can be formulated to bridge this gap by providing appropriate training. According to Warman [34] the availability of talent development resources includes assignments such as job enrichment and job enlargement, as well as long-term training programs. Afdal [38] states that competency development for employees at BPJS Kesehatan is implemented using the 70:20:10 model, referring to Arets, et al. [54] as a framework that helps organizations expand their focus on learning and development beyond classroom training and courses. This model aims to build a more resilient workforce and foster a culture of continuous learning. Arets, et al. [54] explain that the 70:20:10 model consists of: 70% derived from experiences, experimentation, and reflection; 20% gained from working with others; and10% obtained through formal interventions and structured learning. 421 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate The 70:20:10 model is also known as a combination of formal learning, social learning, and experiential learning [55]. According to Ekananta [56] these three elements play a significant role in the success of talent development, each contributing in different ways. Formal learning helps individuals progress from lacking ability to being capable, social learning encourages individuals to move from reluctance to willingness, and experiential learning transforms actions into meaningful contributions. 4.6. Activity (5) Creating Placement Guidelines Warman [34] in his research, states that BPJS Ketenagakerjaan provides various talent development resources, including accelerating the availability and readiness of top talent through rotation and transfer programs, career assurance, and job placement. Once talent has been developed, an eligibility evaluation is conducted to determine their suitability for placement, aligning with their previously designed individual career plan in the third stage. HC Division must design guidelines that define when a top talent is deemed ready for a new placement, based on specific required criteria. The development of a competency-based career management system is aimed at managing and facilitating employee career progression, ensuring alignment with strategic goals while also accommodating individual capabilities and career preferences. Employee career management is structured based on performance and competency, ensuring alignment with organization’s vision, mission, and core values. The Human Capital function plays a crucial role in formulating policies and facilitating career management while maintaining fairness, objectivity, and organizational needs [2, 20]. 4.7. Activity (6) Standardizing Policies and Implementation Guidelines To develop a world-class workforce, a structured system is essential to ensure that human capital policies and decision-making are both effective and accurate. According to Agus Susanto in Aprinto, et al. [20] human capital policies are designed to drive organizational transformation through the implementation of human capital management systems, organizational culture development, and human capital information systems. These policies have proven successful in fostering a harmonious work environment, cultivating a high-performance culture, setting leadership examples, and developing a competent workforce. Meanwhile, top talent management policies are specifically aimed at ensuring the availability of strong leadership to support the successful execution of long-term strategies. The design of top talent readiness, as outlined in previous steps, must be formalized into policies and implementation guidelines to provide a clear and structured framework for all relevant stakeholders in executing these initiatives effectively. 4.8. Activity (7) Implementing Change Management Based on Organizational Culture To ensure the smooth and successful implementation of top talent readiness, socialization alone is not enough; a continuous process of internalization is required. Therefore, change management plays a crucial role in its execution. Afdal [38] defines change management as a systematic and structured process for managing the transition from the current state to the desired future state. Effective change management enables organizations to mitigate risks, minimize resistance, and maximize the benefits of transformation. It serves as a strategic effort to ensure that organizational transformation occurs swiftly and with minimal disruption. According to Wicaksana [21] organizational change refers to transformations in structure, processes, or culture that occur in response to internal and external factors. Strong organizational values provide a solid foundation, helping institutions navigate change while staying resilient. These values serve as the core of organizational culture, shaping decision- making and behavior. Integrating change management with organizational culture is essential for top talent readiness, particularly in shifting mindsets among key stakeholders, including leaders. Mahfoozi, et al. [11] conducted an empirical study that highlights the existence of a managerial mindset pattern among public sector managers. The study identified a positive relationship between talent management and key latent variables, such as talent management mindset and talent management strategy. The research also 422 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate demonstrated that a talent management mindset is characterized by the belief in attracting competent employees, distinguishing talent based on performance, providing growth opportunities, and fostering strong relationships with employees—all of which contribute to gaining a competitive advantage over other organizations. Mahfoozi, et al. [11] findings indicate that focusing on talent management mindset and strategy significantly enhances the success of talent management in the public sector [5]. Effective leadership is a key driver in building a strong system [42]. Leadership behavior is particularly vital in the public sector, as it plays a pivotal role in driving transformation and making a meaningful impact. Leadership attitudes significantly influence talent development by fostering continuous learning, transferable skills, and the ability to strengthen, create, and sustain talent pools within public institutions [5]. At BPJS Kesehatan, Afdal [38] highlights that leaders must possess teaching and mentoring capabilities, which differentiate leadership from other competencies. Effective mentors should demonstrate technical expertise and master key skills, including: understanding how to motivate others; recognizing and appreciating employee achievements; identifying and leveraging individual strengths, providing constructive feedback, and demonstrating a willingness to support and guide. Leaders at BPJS Kesehatan bear the responsibility of nurturing future leaders. Similarly, at BPJS Ketenagakerjaan, Mahfudz [2] emphasize that it is the duty of supervisors to ensure that employees deliver exceptional performance. An organization’s ability to achieve its strategic goals is heavily dependent on leadership execution—bridging the gap between trust, values, and behaviors with strategy, structure, and business processes. 4.9. Activity (8) Conducting Regular Monitoring and Evaluation and Activity (9) Continuously Improving the Process The journey toward peak performance is a long and continuous struggle, involving a cycle of execution, evaluation, execution, and so on. This reflects the idea that processes are never-ending cycles. The cycle exists because change is inevitable. The process of change encompasses development, continuity, and repetition. Development occurs when society evolves from something simple to diverse and complex. Continuity happens when people adopt existing practices and sustain previously established activities. Repetition refers to instances where significant past events recur, driven by similarities between one situation and another. An organization's existence is heavily influenced by its ability to navigate this cycle, adapt to change, and sustain its progress. As stated by Afdal [38] sustainability refers to the ability to persist and thrive over time. At its core, sustainability is driven by change. Therefore, for an organization to remain sustainable, it must be ready to embrace and adapt to change. In Deming [57] introduced the PDCA (Plan-Do-Check-Act) cycle, a systematic approach to quality management aimed at fostering continuous improvement within organizations. Implementing the PDCA cycle consistently helps organizations cultivate a work culture centered on quality enhancement and innovation. Organizations that faithfully apply the PDCA cycle experience continuous quality improvements, as refinement processes are carried out repeatedly based on measurable evaluation results [58]. 5. Conclusion This study emphasizes the critical importance of developing a Top Talent Readiness Model to enhance the sustainable performance of public service institution. By applying the Soft Systems Methodology (SSM) approach, this research identifies key challenges and offers structured solutions for effectively managing top talent. The findings highlight that the successful implementation of a top talent readiness model requires several key elements: (1) strong leadership commitment from top management to support and integrate top talent readiness initiatives into the organization’s overall strategic framework; (2) an objective and transparent top talent identification process, incorporating performance, competency/potential, and credibility assessments to ensure a fair and data-driven selection process, (3) a well-structured career development framework that aligns individual aspirations with organizational needs through clear 423 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 9, No. 3: 403-425, 2025 DOI: 10.55214/25768484.v9i3.5224 © 2025 by the authors; licensee Learning Gate career pathways and tailored development plans; and (4) an adaptive change management strategy, deeply embedded in the organizational culture, to facilitate top talent transformation while minimizing resistance to change. Additionally, this study introduces the Performance-Competency-Credibility Framework, with results processed using the Power Law Distribution approach, as an alternative method for identifying top talent. This methodology is designed to accommodate the organization's needs, specifically in identifying top talent for leadership roles and other critical key positions. At the same time, it ensures that performance and competency/potential are carefully considered throughout the entire identification process, from start to finish. By implementing these strategies, public service institution can foster a high-performance culture, ensure the continuity of leadership and key positions, and drive long-term organizational success. Future research should explore the practical application of this model across various public institutions to assess its broader impact and effectiveness. 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