Aligning business strategy with people management agenda

1. Talent pipeline approach to career and
succession management:
Dr Stanley Arumugam
2006
Knowledge Resources Conference

2. Presentation overview
Career and Succession Management Principles
The succession management challenge
Understanding supply and demand dynamics
Identifying and assessing your leadership talent pool
How can you grow your succession pool
Key success factors for succession management
Sasol Career and Succession Management Case Examples
Business case informing supply-demand dynamics
Using the Leadership Pipeline as a framework
Bursary and graduate development – feeding the talent pipeline
ALDP – building leadership capacity through accelerated development

3. Succession management – a key business issue

4. The succession challenge
.S t r a t e g y v s S u c c e s s io n
D a n g e r o u s a s s u m p t io n s m a d e b y
:e x e c u t iv e s
Assume leadership is a given
Leadership only exists at the top
Imported leadership provides instant capacity
Talent is infinitely resilient and will rise to any challenge

5. Succession – Relay
individuals > teams
what > how
now > legacy
patriarchy > stakeholder
great
companies
lessons
learned

6. Six mistakes that can undermine
succession management
MISTAKES
Focus people’s development on a
specific job (replacement
planning)
Inaccurate identification of
potential leaders
Poor diagnosis of development
needs ‘one size fits all’
Having a limited range of
development solutions
Development plans are never put
into action
No ongoing support and
reinforcement by senior
management
SOLUTIONS
Build a robust system of talent
pools to meet immediate and
emerging business needs
Be more systematic in selection
Results based vs. competency
based diagnosis
Be more creative in identifying
development options
Ownership by immediate manager
and mentor
Senior management must drive
the system
Managing succession risk !

7. What leadership capacity is available ?
“Lieutenants in good standing
The CEO’s ‘network’
High priests
Emerging leaders
Old warriors
Catalysts
Leadership supply and demand
Capacity is a question of who has the skills for a particular task
and how much time they have to spend on it”

8. Strategies for building a strong
leadership pipeline
Growth strategies
Career management - leaders
Structured leadership development
involving action learning
Purposeful rotation into challenging
job assignments
Shadowing more experienced
leaders in valued roles
Bursary and graduate development
Leading change and
transformation projects
Accelerated leadership
development programmes
Acquisition strategies
Proactive recruitment
Headhunting for critical posts
JV leadership mobility
Industry and national partnerships
Turnaround leadership
Leadership catalysts
Growing Talent Pools
Example: GE – Fortune 500

9. Growing internal talent pools
Ref: DDI

10. Sasol’s integrated value chain
Explorati
on and
Productio
n
Syngas
Production
Fuel
products
Co-products
Chemical
products
Fisher
Tropsch
Conversion
coal
natural gas
feedstock
crude oil
Refine & blendFuel
components
Chemical
processe
s
Chemical
components
3rd
party producer
Source: Sasol
planning
picking
preparing
placing
performing

11. Employment Value Proposition
key strategy for growing the talent pipeline
People
Organisation Work
Opportunity
Rewards
5 EVP
Categories
Increase the size of the
available talent pool
Increase individual-
organisational fit
Improve employee
commitment and
retention
“organisations with managed EVP’s are able to
effectively source from more than 60% of the labour
market” CLC 2006

12. Business case: career and succession management
Strategic
“themes”
Financial
Operational
Organisation
Workforce
requirements
Labour market
realities
Workforce
strategies
Growth Globalisation Gearing EVA
GTL/CTL
hubs
Integrated chemicals
business
SA growth
Operational
safety
Joint
ventures
Shared
services
Integrated
facilities
± 1000 secondees
> 6000 local hires
Leadership in complex
environments
Technical skills
and experience
Transformation
GTL industry
growth
DG shortage
in SA
SA growth,
projects
Global skills
shortage
Accelerated
sourcing
Leadership
development
Technical
development
Retention
Skills
transfer
Organisational health Multifaceted diversity
Retirement
waves
New ventures Existing businessTransformation
Succession Management
10 Year People Planning

13. Assessing leadership capacity
Sasol Leadership Pipeline Sasol 9 Box Talent Review
Ron Everest (8)
Simone Shelly(11)
Frank Moodley(12)Andy Dlamini(12)
Vukani Mlaluka (5)
George
Masondo(7)
Mastery
Doreen Selebe(5)Brian Bennet(6)
Bev Jensen(4)
Trever Naidoo(9)
Bongi Ntuli(6)
Growth
Toya Tambo(1)
Cynthia Sithebe(2)
Mpho Zondi(5)David Noko (5)
James Briggs (7)
Sarah Morobe(3)
Turn
Potential
Exceptional
4-5
Full Performance
3
Not yet full
1-2
3 Year PERFORMANCE (Track record and behaviours)
health of the leadership pipeline
critical talent pools and supply dynamics
understanding our internal talent
# 1# 1
# 3# 3
# 5# 5
# 6# 6
# 4# 4
# 2# 2
1. Manage Self
2. Manage Others
4. Functional Manager
6. Group Manager
3. Manage Managers
7. Enterprise Manager
5. Business Manager

14. Identifying, selecting and developing leaders
Corporate
Talent Review
Pipeline-9 Box
BU
Dept
SBU
Division
CBP’sCareer & Succession
Assessment
What?
• performance
• potential
How ?
Performance Review
Pipeline CDI
Psychometrics
• CPA
• Style
Outcome?
• PDP
• Career Coaching
Talent Management
Strategies
• Leadership development
• Purposeful rotation
• New assignments
• Re-deployment
• Coaching roles
• Shadowing roles
• Project management
10 Year People Plan

15. Risk & opportunities strategies
Supply and Demand Mitigation Plans
Macro Supply
Macro Demand
Sasol Demand
↑ Gap
↑ Talent War
Potential Risk to Sasol
CSI Partnership
(Growing the pipeline)
Focus on English, Maths &
Science education
Schools participating:
FY 05/06: N = 80
FY 06/07: N = 150
Alignment to ensure
dedicated talent pipelines
Strategic Talent Planning
’10 year people plan’
Growth Strategy
& People
Planning
Graduate
Spend
EE
Targets
240
185
99
23
246
207
103
23
207
175
81
17
199
161
86
18
256
193
116
23
0
100
200
300
400
500
600
2003 2004 2005 2006 2007
White African Indian Coloured
Business
Growth Needs
Retention Risks
BU ownership
6-12% turnover
Key Levers:
Org Culture,
Remuneration,
Challenging Work
Retention Plans
Graduate
Development
2 x 18 month
rotational
programme
CBP/BU
ownership
Building the national
skills pool
Align to National Skills
Initiative (JIPSA, AGISA)
• New Talent Pool
• Unemployed Graduates
National Skills
Partnership
Dedicated Sasol
Employee Bursary
Scheme ‘EVP’
Internal & External PR
and Comms
Increase Employment
Brand Equity
Technical Skills Bursaries
Increasing business need for
technicians, technologists
Strategic
Recruitment
Supply 2005 Supply 2006
N = 500
81
Bursaries
N = 1678
195
Bursaries
335%

16. ALDP Candidate
Mapping on the
Integrated Managerial /
Technical Pipeline
# 1# 1
# 3# 3
# 5# 5
# 6# 6
# 4# 4
Manage
Business
Manage
Group
Manage
Multi-function
Manage Self
Expert/Consultant
Manage
Others
Manage
Enterprise
Function
Manage Self
Operational
# 2# 2
Manage Self
Technical/Professional
Manage
Function
Manage
Managers
Manage
Enterprise
# 7# 7
Manage
Enterprise
Sub-Function
Quality
Service
Practice
Strategy
7
5
9
5
N=26

17. The End – Questions ?
stanley.arumugam@sasol.com
Phone: 011-4413148
Group HRD – SASOL

18. Keys to best practice succession management
Smooth transitions.
2. The ‘ right ’ developmental assignments.
3. Meaningful appraisals and feedback.
4. Appropriate selection criteria.
5. A range of good choices.
http://www.humanresourcesmagazine.com.au/articles/dd/0c02a0dd.asp
Robert Fulmer is academic director for Duke Corporate Education.Email: Robert.Fulmer@Dukece.com

19. Increasing internal leadership capacity
Reconfigure leaders roles and responsibilities. Few job
descriptions call upon post holders to utilize their full potential. Much
latent leadership energy can be liberated by redefining roles.
Create a network to integrate leadership energies. While
reconfiguration involves structural change, networking is about
association between people with like interests.
Align and realign leaders around the essentials. People behave
according to their beliefs, not what they might have agreed to in a
meeting.
Raise leaders aspirations. Visions of a brighter future are uplifting
Improve leaders resilience. While people can adapt their approach
and style to some extent…leaders are often thrown into situations
where their knowledge does not apply and their style is inappropriate

20. Demand for leadership capacity can be reduced
There are two key ways to inhibit demands on leadership
without sacrificing the goal of transcending ordinary
performance:
1. Limit demands in non-essential matters. Senior
executives often spend time on activities that add little value
or have nothing to do with wider performance aims.
2. Design the change program to conserve and build
capacity. It can be tempting to call for all hands on deck and
launch as many parallel initiatives as there are people to lead
them.

21. Waves of critical initiatives
“We have found that the wisest course is to sequence initiatives carefully and launch in
the best wave only those most critical initiatives that have adequate leadership capacity
driving them. This means structuring, timing, and staffing initiatives wisely:”
Structuring involves determining the scope of the project, how it relates to other
initiatives, and, above all, how tackling this one best might shed light on how to approach
other projects with greater economies in time and money. More importantly, tackling the
right one will unleash more energies in the organization, thus moderating if not reducing
the leadership burden.
Timing presents a tough judgment call: how long should leaders be given to come up
with an initial answer, mobilize the organization, and institutionalize the new way? Sound
judgment is needed in deciding not only how long leaders will take to complete a given
task, but also how much stretch they can absorb.
Staffing then becomes critical. It means selecting the right leader for the right task and
pending opportunities to build more potential capacity into the first wave so that younger
talents can be coached to lead later efforts.
Finding opportunities to build more potential capacity into the first
wave will allow younger talents to be coached to lead later efforts