Sne Mkize- Organisational, Cultural Transformation as a Lever for Driving High Performance

better together…we deliver 1

better together ... we deliver 1

Organisational cultural transformation as a lever for driving high performance ASTD Conference March 2015

S’ne Mkhize | Senior Vice President | Sasol Group Human Resources


EVP video


one sasol: values and culture are critical to our success


Upstream Oil & Gas

US Mega Projects

Upstream Operations Downstream

Mining US Operations

Secunda Energy

Secunda Chemicals

Sasolburg Eurasian Operations

International Energy

Southern Africa Energy

Upstream (Operating BUs)

International Operations

(Operating Hubs) Energy Business

(Strategic BUs)

Southern Africa Operations

(Operating Hubs)

Base Chemicals

Performance Chemicals

Satellite Locations

Chemicals Business

(Strategic BUs)

effective 1 July 2014

Natref

our new operating model will change the way we manage our business

Group Functions

our new operating model and management structure


the new operating model requires ways of working that are consistent with our shared values

Complexity: fragmented business units and functions

Simplicity: streamlined, consistent management structure

Siloed structure: independent business unit optimisation

One Sasol bottom line: optimising for the benefit of the whole

South Africa-centric: growth as ‘add on’ to South Africa operations

International: leverage of scale and scope across geographies, including Southern Africa

Function vs. business tension: disconnected priorities

Function & business partnership: functions and businesses working for One Sasol bottom line

Syndicated accountability: decision making by committee

Single point of accountability: clear roles and responsibilities in decision making, even in a matrix structure

Command and control management style: minimal effort on collaboration as a result of lack of respect and trust

Leadership grounded in trust and respect: focus on collaboration and teamwork, trusting in others to deliver; display empathy and inspirational leadership

from to

The end state is aligned with ‘One Sasol’, ‘People’ and ‘Accountability’ values


feedback from the heartbeat survey also indicated what we needed to change

Enablers

High levels of pride in working for Sasol indicates a connection between employees with Sasol’s brand and the way Sasol sets out to achieve goals.

Enablers to leverage; relatively high perceptions of:

1. Quality and Safety - Sasol’s provision of quality products and services - Senior leadership’s commitment to quality - Overall commitment to safety and safe working 2. Alignment and working towards goals - Overall communication and clarity of strategy - Overall efficiency of work processes and practices 3. Growth and development - Overall training and development opportunities

Lower levels of commitment are an outcome of the working environment, influenced by Sasol leaders at all levels.

Barriers to mitigate; relatively poor perceptions of:

1. Managers as leaders - Lack of trust in leadership - Lack of ‘connection’ with leaders - Lack of Excos’ demonstrating the Sasol values - Lack of two-way communication and celebrating successes - Lack of responsiveness and showing appreciation 2. Teamwork and collaboration - Lack of collaboration with colleagues - Lack of openness and trust within BUs/Functions 3. Diversity and inclusion

Maintain levels of pride

Barriers

Improve commitment

51% of employees believe that positive change will result as an outcome of this survey


our shared values

Safety We are committed to zero harm and all that we do, we do safely

People We create a caring, engaged and enabled work environment that

recognises both individual and team contributions in pursuit of high performance

Integrity We act consistently on a set of values,

ethical standards and principles

Accountability We take ownership of our behaviour and responsibility to perform

both individually and in teams

Stakeholder focus We serve our stakeholders through quality

products, service solutions and value creation

Excellence in all we do We deliver what we promise and add value

that goes beyond what is expected

our shared values and high performance culture

high performance culture indicators

Goal clarity and alignment We clearly state our goal and strategy to align the entire organisation on

what we want to achieve and how we want to achieve it

Empowered accountability We create an environment where accountabilities are clear and individuals

act accordingly

Teamwork and collaboration We all work seamlessly as one team towards the same end goal

Stakeholder focus We create a sustainable future together with all our stakeholders

Inspirational leadership We create an environment where we are inspired to be the best that we

can be


in summary our high performance culture means

High performance starts with “Me”

A high performing organisation is built by high performing teams, comprising high performing individuals

Collaborate and deliver

outstanding results & value

High Performance

Culture

Empowered and accountable individuals &

teams

Business Performance

Common game plan

Inspirational leaders

Stakeholder focus

• Clear goals – a common game plan •  Inspired and empowered individuals and teams

• Delivering outstanding results and value as one team • Creating a sustainable future together with our stakeholders


three critical behaviours identified to make the new operating model work

critical behaviours are anchored in sasol’s shared values and high performance culture

common game plan I understand, contribute and commit to our new operating model

and business objectives

one sasol, one bottom line I am a team player and act in the best interest of the Sasol Group

empowered accountability I trust and expect others to deliver and I can be trusted to deliver against

agreed accountabilities


high performing individuals

how do we define a high performing individual?

As a high performing individual I consistently create value for the organisation, my team and myself through:

v alues I live the Sasol Values

a ctions I’m accountable for my actions and meet or exceed commitments and expectations

l earning I continuously develop myself and others

u nity I build relationships and contribute to team performance in order to enhance the One Sasol bottom line

e xcellence I set stretch goals and targets and continuously improve to achieve excellence


the role of the leader in sasol is clearly defined in line with the matrix structure and high performance culture

Sasol leaders have a pivotal role in the transformation of the culture towards a high performing, values driven organisation. The Sasol leadership competencies enable them to: 1.  Inspire and engage their teams to drive high performance

2.  Leverage business acumen to deliver results (in line with the new operating model)

3.  Integrate and balance profitability and sustainability

4.  Grow value through stakeholder partnerships

5.  Leverage diversity and inclusion

6.  Lead for growth and globalisation

7.  Drive a One Sasol mindset and bottom line (in line with the new operating model)


●  Create an atmosphere of respect, trust and confidence

●  Demonstrate the Sasol values and critical behaviours

●  Encourage open dialogue on the behaviours and how they are being lived in the team

Be a role model

●  Give and request real time feedback from team members

●  Ensure behaviours are part of performance conversations and evaluations Encourage Feedback

●  Involve others in finding solutions

●  Set aside time for work discussions and coaching on performance AND behaviours with teams

●  Ensure a focus on the one bottom line Coach

●  Informal and formal recognition processes have been established and are visibly used

●  Team successes are celebrated Recognise

reinforcing mechanisms – role of leaders

●  Clear concise business goals and behaviours have been set and cascaded throughout the organisation

●  Unacceptable actions and behaviours are visibly called to account

●  Behaviours are embedded in the performance management and recruitment processes

Performance and consequence management


Our leadership competencies support our new way of leading in the new era for Sasol

The 10 Sasol Leadership Competences


high performance culture transformation journey

Embed Enable

Team productivity

Service quality

Customer satisfaction

Stakeholder satisfaction

Cost performance

Shareholder return

Business growth

Change Communication and Awareness

Outcome: High performing, Values driven organisation

Values driven leadership (including

behaviour shifts)

Towards 2020 and beyond

Prepare

Review and align rewards and benefits

Review and align performance management

Integrate into leadership development frameworks and

programmes

Alignment of other supportive HR policies and processes

Aligning our operating model

Plan

, do,

revi

ew, i

mpr

ove

2006-2012

Behaviour Shifts

Heartbeat

Leadership: Leading for High Performance

Teams: Collaborating for High Performance

Leveraging Diversity for High Performance

Teams and Individuals Engaged in Safety

Heartbeat Discover Diagnose Decide Deliver


fit-for-purpose change toolkit…

Lead Sasol Programme Based on nomination, enhances

leadership capability to lead in the context of the new operating model and ways of working

Teams Collaborating for High

Performance Strengthens the team’s

understanding of the operating model and how we all contribute to One Sasol bottom line, through the

behaviours

Change Resilience Enables individuals and teams to deal with the implications during the change and “bounce back”

after the change process

Leading for High Performance Enables you to drive performance

and accountability in your team

6

Leading Change Strengthens your ability to engage your team on linking your priorities

to the change plan and lead the change process

1

2

4

5

Interventions for embedding a High Performance Culture during this change process

Team Stabilisation A tool for leaders to guide their

teams through a set of team formation conversations covering accountability, critical behaviours

and other topics

3



High performance culture in practice

better together ... we deliver

integrated into our business strategy

Operations Excellence

Capital Excellence

Business Excellence

Values-driven Organisation

Foundation

Develop and empower high-performing, values-driven people

Continuously improve and grow existing asset base

Deliver on the South African transformation agenda

Sustainable growth

Accelerate GTL growth

Grow related upstream business

Maintain technological lead

Grow all value chains based on feedstock, market and/or technology advantage

Develop and grow low-carbon power generation

Grow shareholder

value sustainably

grou

p im

pera

tives

Nurture and Grow

Expand and Deliver


integrated into hr strategy

18

Sasol Group business strategy

Right talent in the right place at the right 5me to enable Sasol’s transforma5on and

growth strategy

HR strategy objec5ves

Implement a technology enablement pla?orm and build HR capability to drive effec5ve and integrated

service delivery

Deliver the Sasol Employee Value Proposi5on to enable employee engagement and a high performance culture

HR purpose

Build a profitable, sustainable and adap5ve organisa5on of talented, diverse, competent and inspired people, who face the future with confidence

Sasol people philosophy

Grow shareholder value

sustainably

The three strategic objec5ves have been crystallised, they direct execu5on of the HR unique value proposi5on and form the basis of the HR scorecard to enable measurement and repor5ng

We deliver fit-‐for-‐purpose people solu5ons to enable sustainable business performance


OUR EMPLOYEE VALUE PROPOSITION & EMPLOYER BRAND

Together, shaping tomorrow

Our Organisation Our Leaders Our Culture Our Opportunities & Rewards

• A dynamic, technology-driven company that attracts diverse, talented people with a pioneering spirit.

•  High performing leaders who create an environment that inspires our people to be the best that they can be.

•  A high performing, values driven culture that is characterised by

•  Goal clarity and alignment

•  Empowered accountability

•  Teamwork and collaboration

•  Stakeholder focus •  Inspirational

leadership

•  A myriad of challenging career opportunities for talented and engaged people to grow into high-performing employees who are rewarded competitively.

integrated into compelling evp and employer brand

integrated into people and organisa.onal effec.veness framework


integrated into reward framework

Operations Excellence

Capital Excellence

Business Excellence

Values-driven Organisation

Group imperatives Foundation HR strategic objectives Reward philosophy drives

design principles

Develop and empower high-performing, values-driven people

Deliver on the South African transformation agenda

Continuously improve and grow existing asset base

Deliver the Sasol Employee Value Proposition to promote employee engagement and a high performance culture

Right talent in the right place at the right time to enable Sasol’s transformation and growth strategy

Stretching performance targets at individual, team and business levels that drive a positive relationship between rewards and performance

Strong stimuli for employee attraction, retention and motivation

Reward systems are aligned with the company’s approach to risk management

Use rewards to drive a high performance culture

Implement a technology enabled platform and build HR capability

Maintain technological lead

Grow shareholder value

sustainably


developing leadership capability to drive a high performance culture and embed operating model

Lead

Sas

ol P

rogr

amm

e (L

SP)

How

‘Sas

ol’ l

eade

rs le

ad

(GIB

S)

Global Executive Leadership Programme (GELP) (Gel-Net proposed)

Sasol 2020 Leadership Engagement (GIBS)

Sasol Leadership Network Engagement

Managing Self Development programme (MSDP) (CPE: Creating People Excellence)

Managing Others Development Programme (MODP)

Managing Managers Development Programme (MMDP) (USB-ed)

Senior Executive Development Programme (SEDP) (GIBS)

Internal Leadership development programmes

(PE Corporate Services/CDI/The Human Edge/Precision HR/

Louis Allen/Thinking Dimensions/Maurice Kerrigan/Bruniquel & Associates/ 4th Dimension)

LEA

P Fo

cuse

d hi

gh p

oten

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LEAD Sasol programme themes 1

Programme Orientation, Setting the Scene

2 Lead the common goal,

game plan and operating model

3 Inspirational Leadership

4 Build high performance in

individuals and teams

6 Lead stakeholder focus &

sustainability (part of case study)

7 Change Leadership

•  Myself •  My Team

•  My Business

5 Leveraging diversity and

inclusion

How to Lead in Sasol

Better together… we deliver

copyright reserved, 2014, department, company

behaviour moment: empowered accountability in action

•  Do I meet deadlines I have committed to?

•  If I see I cannot meet the deadline, do I signal this timeously?

I trust and expect others to deliver I can be trusted to deliver against agreed accountabilities

Better together… we deliver

copyright reserved, 2014, department, company

behaviour moment: creating an inclusive workplace for high performance

•  What habit(s) do you have that create inclusion and foster teamwork and collaboration across the value chain?

•  When have you realised that you should have utilised the diversity that other teams / business / functions bring which could have positively impact performance?

I behave in an inclusive way and tap into the diversity across our value chain to improve greater performance for Sasol

poster example: communication campaign


continuous measurement through sasol heartbeat

An integrated employee survey with accompanying action-planning and execution to drive employee engagement and enablement

Discover through dialogue

Diagnose through the survey Decide

on appropriate actions Deliver on commitments

Repeated cycles



Q&A

Sne Mkize- Organisational, Cultural Transformation as a Lever for Driving High Performance

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