Organisational, cultural transformation as a lever for driving high performance - Sne Mkize

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

Sne Mkhize | Senior Vice President | Sasol Group Human Resources

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EVP video

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one sasol: values and culture are critical to our success

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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

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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

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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 Sasols brand and the way Sasol sets out to achieve goals.

Enablers to leverage; relatively high perceptions of:

1. Quality and Safety - Sasols provision of quality products and services - Senior leaderships 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

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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

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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

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three critical behaviours identified to make the new operating model work

critical behaviours are anchored in sasols 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

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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 Im 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

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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)

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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

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

The 10 Sasol Leadership Competences

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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