5. Your Success
In 2014
• 5.5 million tons of saleable steel products
• Largest steel producer in Africa
• Directly employ over 9,000 people and have an
employment impact of nearly 100,000
• Revenue of just under R35 000m
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7. VISION
• To add value to our stakeholders through our market
leadership position in Sub-Sahara Africa by providing
quality steel products safely, being an employer and
supplier of choice while striving to be among the
lowest cost steel producers in the world
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8. STAKEHOLDERS
• Customers
• Employees
• Trade Unions
• Government
• Shareholders
• Suppliers and Contractors
• Local Communities
• NGOs and Special Interest Groups
• Media
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9. MISSION
We aim to achieve our vision by:
• Protecting the health and safety of our employees
• Pursuing operational excellence in all business processes
• Producing innovative high-quality steel solutions for our
customers on time
• Protecting our environment and caring for the
communities in which we operate
• Being a fair employer as well as a career and skills
developer
• Being a responsible corporate citizen
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10. 4 Key Strategic Objectives
• Protecting the health and safety of our people
• Creating a high performance culture
• Maintaining our license to operate
• Driving Profitability
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11. The Risks to the Strategy
• Competition Commission Issues
• Demand and Price Declines
• Available Energy
• Increased Competitor Activity
• Environment and Health Impacts
• Increased Input Costs
• Insufficient Input Material
• Catastrophic Plant Failure
• Supplier Contract Performance
• Safety Performance
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12. • Protecting the health and safety of our people
4 Work-Related Fatalities
Lost Time Injury Frequency Rate 0.56 -> 0.58
• Creating a high performance culture:
Tons of Liquid Steel to full-time (job) equivalent
(HRCe/FTE(t/annum) 418 -> 556
Domestic Market Share Flat Steel 65.5% -> 74.9%
Long Steel 55.1% -> 57.2%
4 Key Strategic Objectives
2014 Performance vs. 2015 Goals
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13. 4 Key Strategic Objectives
2014 Performance vs. 2015 Goals
• Maintaining our license to operate
B-BBEE Rating Level 7 -> Level 6
Scio-economic Spent (Rm) 16.3 -> 30.5
Environmental Expenditure (Rm) 63.0 -> 20% of
Capital Expenditure
• Driving Profitability
10 consecutive quarters of loss
Plant Capacity Utilization (%) 69.5 -> 94.7
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14. How do you create value into the future
while meeting the mission
and
living the values?
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15. Values Based Leaders must be:
• Respectful, but Willing to Forget the Past
• Candid and Truthful about the Present
• Hopeful and Optimistic about the Future
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16. Leadership is what moves
the human spirit forward.
We dull our lives if we don’t view
the challenge of leadership against a grand backdrop-
-a larger destiny.
David Oldfied
Director of the Center for Creative Imagination
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17. A Call to Action
In times of drastic change,
it is the learners
who will inherit the future.
The learned find themselves
equipped to live in a world
that no longer exists.
Eric Hoffer
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18. The Learner Mindset
The basic rationale for learning organizations is that in situations of
rapid change only those that are flexible, adaptive and productive will
excel. ~ Peter Senge ~
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19. The Learner Mindset
Organizations that are continually expanding their capacity to
create their future require a fundamental shift of mind among
their members.
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20. Leadership is autobiographical.
If I don’t know your life story,
I don’t know a thing about you as a
leader.
Noel Tichy
University of Michigan
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21. Storytelling
Everyone Has a Story,
Leaders Just Use Theirs Better
to communicate lessons
in words and actions to inspire curiosity, passion
and commitment.
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22. Storytelling
Research shows that stories have more impact on whether
business people will believe information. A story enhances
belief and buy-in more than simple straight data.
Likewise, storytelling is the oldest way to convey values
and ideals…they are intended to “teach.”
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23. Telling Your Story
Leadership Quotes
What is your example and why are you drawn to it
specifically? Is there some event in your career
that exemplifies the ideals of that statement?
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24. Telling Your Story
Leadership Recipe
What individual has had the greatest impact on your
Leadership Philosophy? It could be a previous
supervisor, a coach, rabbi, teacher, relative, etc. What
did they do and/or say that to this day you remember or
even emulate?
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25. Telling Your Story
Defining “Leadership” Moment
What is one of those defining moments when you had
to make a values based leadership decision?
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26. A Leadership Transformation
What people want from their Leaders
► Direction* ►Hope
► Trust ► Results
Warren Bennis
Author – On Becoming a Leader
* 53% of Employees say they are unsure of the direction the company
is taking…what about the other stakeholders?
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27. ►Challenge the Process
-Search for Opportunities
-Experiment & Take Risks
► Inspire a Shared Vision
-Envision the future
-Enlist others
► Enable Others to Act
-Foster Collaboration
-Strengthen Others
► Model the Way
-Set Examples
-Plan Small Wins
► Encourage the Heart
-Recognize Individual Contributions
-Celebrate Accomplishments
5 Leadership Practices and 10 Behaviors to
support those practices:
Kouzes & Posner - The Leadership Challenge27
28. • What type of language and words were used to describe and
communicate with clarity/confusion the odd figures?
• What must you do to clearly communicate and paint a vision and
direction that is understood and embraced by all in your organization?
• As a leader in your organization, what about “Goals / Roles / Processes
/ Relationships” can you improve upon to gain greater alignment and
buy in that will lead to organizational success?
Leadership Challenge 1
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30. Your Basic Role
Leadership appears to be
the art of getting others
to want to do something
you are convinced
needs to be done.
Vance Packard
The Pyramid Climbers
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31. What are the top three things that workers
want from their jobs, in rank order . . .
• Sympathetic understanding
• Feeling “in” on things
• Good wages
• Promotion/growth
• Loyalty of management
• Interesting work
• Good working conditions
• Tactful discipline
• Full appreciation for work
• Job security
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32. “I don’t feel I am making a difference.”
“I don’t feel recognized for my contributions.”
“I don’t feel I am learning/growing enough.”
“I can make more money elsewhere.”
“I don’t feel I am a ‘fit’ with my colleagues.”
McKinsey & Company, The War on Talent
Why do talented people leave their
jobs?
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33. Daniel Pink – Drive: The Surprising Truth About What Motivates Us
• Autonomy
• Mastery
• Purpose
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34. Barrett Results
• What was an insight or take away from the material?
• So What makes that insight important to you, your organization,
ArcelorMittal?
• Now What will you do differently going forward to have greater
impact?
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35. • To be best in breed....you represent the top of the
game in what you do: ex. McKinsey
• To find a “sanctuary“…your organization’s culture
honors or represents something distinctively rare: ex.
Entrepreneurial- Apple,
• To change the world...your organization can make a
lasting contribution, to leave the world a better place:
ex. UNICEF/Save the Children....
• To grow and learn…your organization offers the best
environment for personal growth and life long learning:
ex. Training & Development- Google (120 hours/year),
• Others…
Why would great performers join your
organization?
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36. Executive Derailment
The Ten Fatal Flaws
Insensitivity Coldness, Aloofness
Betraying a Trust Overly Ambitious
Over-Managing Overly Tactical
Unable to Handle Crisis Unable to Adapt to a Boss
Overly Dependent on a Mentor Poor Staff Selection
Morgan McCall, Jr
The Lessons of Experience
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37. Your Development Behaviors
• Of the values you want to be known for and those you do not - How are you
living these well? Where do you come up short?
• What would you like to do more of or differently to illustrate your strengths
more and eliminate or buffer your weaknesses?
2015-04-23 37
38. Your Development Behaviors
• Why should someone work in your organization and
specifically your team?
• Most importantly, why should someone be willing to be
led and work for you?
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40. What are your “BFOs” from the day?
• What was an insight or take away from day?
• So What makes that insight important to you, your organization,
ArcelorMittal?
• Now What will you do differently going forward to have greater
impact?
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Notas del editor
Desire to be:
High performance in Supplier Management/Customer Focus/Productivity
Create a culture that takes pride in valuing people, productivity performance and being a part of ArcelorMittal
Stakeholders grant the license to stay in business. The relationships with various stakeholders (gov’t, organized labor, communities regulatory authorities) has been less than positive (mistrust) Need a perception of: social uplift, environmental best practices, social and people development = a model of corporate citizen
Desire to be:
High performance in Supplier Management/Customer Focus/Productivity
Create a culture that takes pride in valuing people, productivity performance and being a part of ArcelorMittal
Stakeholders grant the license to stay in business. The relationships with various stakeholders (gov’t, organized labor, communities regulatory authorities) has been less than positive (mistrust) Need a perception of: social uplift, environmental best practices, social and people development = a model of corporate citizen
Plants are underperforming, productivity has lagged and breakdowns have been tolerated as part of the business instead of rare
Rebuilding of the Newcastle plant (cost of R1.8 Billion) will increase capacity – and investment in systems, reconfiguration and equipment will make plants safer, more reliable and productive
Starting to rein in fixed and variable cost increases – iron ore and coal saw modest increases
Drop in international metallurgical coal prices reflected a 9% decline in costs
Increase in Market share for flat and long steel
Penetration of export markets for flat steel increased more than a third
Capacity utilization improved to 86% (excluding Newcastle due to shutdown)
Total electricity bill was 2.9% lower (due to lower production because of Newcastle rebuild
Better logistics and procurement will lead to better value for investors
*Business Unit Managers have been empowered with greater decision-making and given explicit new key performance measures against which they will be measured and rewarded.
