Ensuring sustainability of organisational change: understanding the impact of levels of work

Dr Stanley Arumugam Group OD & HRD Manager Sasol Limited 21 June 2006 CRF Breakfast Seminar

Key organisational messages

Too much is going on at the same time This looks great and I hope we can make it work Is this really important to my performance We dont see how everything fits together These bloody consultants we do all the work anyway Another new initiative how long will it go I like the new direction and energy of our leadership Give me the rules and the templates to do Lets ignore it and see if it goes away It doesnt feel like the effort is adding value There are so many conflicting demands on us What will make a difference to the bottom line What must I do to make me look good

Sasol Integrated Organisational Transformation

Global Growth JV expansion through technology & cultural synergy
Qatar, China

Employer Branding Stakeholder Value Proposition

Attraction, reputation, CSI, employer of choice

Corporate Citizenship committed to SA capacity building

Broad based BEE, Govt. relations, skills dev

Optimising Existing Business Operations

Synfuels, Turbo, Mining, Polymers, Solvents

Talent Pipeline fully performing employees at all levels

Performance management, succession, Talent review, retention

Sustainability ensuring enduring Organisation

Governance, compliance leadership, safety, environmental .

DNA optimal organisational design

Structure, business model

Learning Organisation agility and change Capacity

Development, knowledge management, Change management

Enterprise values based leadership & culture change

Leadership style, culture, values

Change and transformation challenges:

accountability for different work & results
Corporate citizenship & competitive advantage Organisation Whats in it for our organisation ? Good - Great team Strategic operational execution & optimisation Whats in it for my team ? Independence Interdependence

Making it happen delivering agreed results

me

Whats in it for me ? Survival Significance

Anatomy of change
V 5-10 IV 3-5 III 1-3 II 6-12 I 1-6 m Strategy: Deep dialogue about the why LT vision transformational Strategic Operational: Translate strategy into operational execution Project team vs. Business Manager performance accountability Operational: Implementation & embedding of change outcomes Middle management accountability vs. Delegation support teams Service: Ensure application in day to day work Supervisors get bombarded with multiple initiatives Quality: Work within given organisational rules Will do what is clearly established in rules & procedures

Implementation actions New initiative introduced Project team get going New initiative introduced

Implementation actions Project team get going

Decline

Why change doesnt always lead to transformation

Organisations do not recognise the different levels of work accountability & how this translates to change management Often employees at different levels are disempowered through external consulting practices license to operate Employees are not given an opportunity to see the big picture Change becomes project driven instead of developmental Short term goals are achieved at the expense of long term behavioural transformation Initiatives are treated as ends in themselves instead of parts of a whole system change

For considerationthinking differently about change management

Share the big picture with employees at all levels and dont change it within a performance year vision, mission, road map Senior leaders must become visible change champions singing off the same hymn sheet enterprise perspective Define change outcomes in the context of agreed work accountabilities translate change based on work complexity Embed change outcomes in performance contracts at all levels what you measure is what you get ensure significant KPAs Ensure external consultants serve managers in achieving their performance outcomes move quick wins to sustainability Continuous open and honest dialogue with employees at all levels shared accountability and celebration of change outcomes Reinforcement of desired behaviour deal with people not aligned to organisational vision, values and change journey

In closing
whats important for my manager, makes me deeply passionate
Organisational change is a key management accountability Ensure managers are clear about what is important for the organisations Be sure that what is important is driven by integrity meets both ST and LT goals of the organisation Successful change leads to transformation of behaviour which shows in the results Change and transformation is about leaving a legacy