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