MANAGEMENT AND LEADERSHIP

MDP

Module 1

February 2019

Key Themes – Management and Leadership

STRATEGY

ALIGNMENT

PERFORMANCE

Global Context (Competitive

Operating

Environment)

Strategy

OrganisationCulture

(Values, Ethics)

Management and

Leadership

(Governance)

Implementation

(Driving Performance, Competition)

VUCA World: Investor and Trade Challenges

Crises in 2018/2019:

Natural Disasters:

• Severe drought in Africa and Southern Africa (El Niño); implications for agriculture and food prices; consumer price inflation

Rand Currency Fluctuations:

• Rand recently appreciating against US Dollar and foreign currencies, after depreciating by more than 20% over the past three years.

Energy Prices:

• Oil has fluctuated from highs of $147 a barrel to below $33 a barrel recently, with its impact on economies globally (e.g. Nigeria and Opec countries such as UAE)

Global Migration:

• Particularly the wars in North Africa and instability in the Middle East, leading to millions of migrants moving to Europe and other safer countries

Leadership Issues:

• Elections and political crises; Government instability; lack of statesmanship and global leadership; trade wars; Brexit

International Terrorism

• ISIS, Boko Haram and other groupings, regular reports of bombings and civilian deaths, driven by various ideologies

Source: World Health Organisation

2050: World Population Growth

GLOBAL CONTEXT - COMPETITIVE

WEF: Global Competitiveness Report

2018

Competition is Global

“Unlike others, we are not content to settle for

what was accomplished in the past, because life

doesn't stop and it doesn't care about those who

stop because they are content with what they

have achieved.”

HH Sheikh Mohammed bin Rashid Al Maktoum

Vice President, Prime Minister and Ruler of

Dubai

GLOBAL CONTEXT - COMPETITIVE ENVIRONMENT

CONTEXT – South Africa

Competitors

Substitutes

CustomersSuppliers

Social

Economics

PoliticsTechnology

Ecology

Media

Demography

Rules&

regulationsMICRO

ORGANISATION

MACRO

12

SA: Policy Making in a Complex World

13

• Greater regional economic integration is

necessary for long term development

• Many of our problems such as energy

and food security can be solved taking a

regional respective

• Obstacles include infrastructure,

corruption, protectionism and weak

regional institutions

• Global linkages and need for break into

fast growing markets

SA: Vision - Inclusive Economic Growth

14

SA Vision - Social Inclusion and Radical Economic Transformation

• Social inclusion is necessary to transform

the country while reducing poverty and

enhancing opportunity for young people

are critical to building social cohesion

• Despite diverging interests, success will

depend on building partnerships across

society

• Rallying people around the Constitution

and its values

• Active citizenship through enhancing

communication channels between

government and society

• Context (4IR and Employment)

• Marikana Watershed

• Outlook for Mining Sector

• Trade Unions

MINING INDUSTRY SNAPSHOT

STRATEGY: Vision, Mission, Implementation

Game Changers:

• Landscape (Broad Context

- Quantum computing

- Open Intellectual Property (IP - Open Source)

- User control and orientation

- MOOCs and education/knowledge access

- Disruptive technologies

• Technology (Platforms)

- Universal memory

- Multi-core availability 24/7 (always on)

- ‘Internet of things’

- Silicon photonics (big data transfer/networks)

- Cloud computing (data storage)

• Software Applications (How messages delivered)

- Appropriate access

- Natural user interfaces (connectivity)

- Artificial intelligence (users/technology)

Market Intelligence, Research, Data Analytics

Source: Government Communication Service, HM Government, July 2015

Source: Government Communication Service, HM Government, July 2015

Market Intelligence, Research, Data Analytics

Source: N. Chorn

Strategic Alignment: PADI LOGICS (Strategy and Behaviour)

Dominant Logic?

Source: N. Chorn

Strategic Alignment: PADI LOGICS

Source: N. Chorn

Strategic Alignment: PADI LOGICS (Organisation Life Cycle)

Source: N. Chorn

Strategic Alignment: PADI LOGICS (Organisation Life Cycle)

New Cycle?

Source: Donald Sull,

Harvard Business

Review

Strategic Alignment: VUCA - STRATEGIC AGILITY (AND ABSORPTION)

Approach*

- Probing for opportunities

- Mitigating risk

- Staying in the game

Portfolio Agility

Operational Agility

Organisation Resilience (Absorption)

Triple Bottom Line and Sustainability

ORGANISATION CULTURE

• Attitude and atmosphere of a company

• Fit person and culture (unspoken rules)

• Reading the cultural gaps (organ

transplant/rejection)

• Examples: lifestyle, pace of change, internal

competition, power centralised?

Corporate culture is the shared behaviours, experiences,

stories, beliefs, and norms that characterize an organization

NATIONAL PATTERNS OF CORPORATE CULTURE

Source: Riding the Waves of Culture, Fons Trompenaars

INCUBATOR GUIDED MISSILE

FAMILY EIFFEL TOWER

Decentral

Central

Informal Formal

Sweden

France

Belgium

India

JapanSpain

USA

Canada

UK

Denmark Netherlands

Germany

ORGANISATION: VALUES

Values are important or lasting beliefs or ideals shared by the members

of a culture about what is good or bad and desirable or undesirable

Values have a major influence on a person’s behaviour and

attitude and serve as broad guidelines in all situations (dilemmas)

• Values versus behaviours - and performance

• Global organisations?

• Imposed versus emergent culture

• Integrity

• Fun

• Customer Service

• Honesty

• Excellence

• Reliability

ORGANISATION: ETHICS AND GOOD GOVERNANCE

ORGANISATION: ETHICS AND GOOD GOVERNANCE

4IR

- Technology

- Risk Management

- Cyber Security

DEVELOPMENT OF HUMAN CAPITAL

• What are you worth?

• What determines your value in the marketplace?

• Potential and experience

• Trends in supply and demand (across sectors, functions,

• geographies

THREE CAREER PHASES

PHASE 1:

Promise

Perceived Value

(Potential +

Experiential)

PHASE 2:

Momentum

PHASE 3:

Harvest

Value of

Human

Capital

Career Timeline

Career Beginning Retirement

Experiential value

Source: Citrin & Smith, 2003

LEADERSHIP

Styles of Leadership

•Visionary — mobilize people toward a vision. ...

•Coaching — develop people for the future. ...

•Affiliative — create emotional bonds and harmony. ...

•Democratic — build consensus through participation. ...

•Pacesetting — expect excellence and self-direction. ...

•Commanding — demand immediate compliance…

Leadership in an African Context? Ubuntu / Legacy of Nelson Mandela

Situational Leadership

PROBLEM SOLVING - THINKING HATS

Edward de Bono

LEARNING FROM LEADERS

What makes a successful leader?

• To lead is to serve

• Overcome permissions paradox

• 20/80 performance principle

• Practice benevolent leadership

• Find right fit (strengths, passions, people)

LEADER PROFILE: Liu Chuanzhi

• “Perseverance – stick to your

goals and keep trying all the time”

• Lenovo Group Chairman

• 1984: founded Legend as a

distributor of foreign PCs

• 2004: China’s largest computer

manufacturer

• Returning to core computer

business

• 2014: #1 Global Vendor of PCs

At 73, Lenovo's Liu Chuanzhi is still a legend in the world of Chinese business

LEADER PROFILES: South Africa (Mentoring Role)

Source: Donald Sull,

Harvard Business

Review

Strategic Alignment: STRATEGY IMPLEMENTATION

Guidelines / Rules

- Align all behavior/activities with organization objectives

- Adapt to the operating environment and changing context

- Foster co-ordination

- Process for problem solving and making better decisions

- Simplicity is a virtue

WHO Principles of Strategic Communication

Strategic Alignment: ORGANISATION SUPPLY CHAIN

Wheelen/Hunger

Resources: COMPETENCIES

AT QA TD CP CS MP EC IN

Business Core Function

Investment Management

Harvard

Business

School

Resources: COMPETENCIES

AT QA TD CP CS MP EC IN

Business Core Function

Production and Operations Management

Harvard

Business

School

Degree of Authority

Management Dilemmas

Degree of Participation

XX

Reality

Perception

Individual

Communication

Group/Team

Communication

X

Short Term

Objective

Long Term Vision

X

Source: Trompenaars and Voerman, 2009

A Steep Contribution Curve

Pursuing Excellence Through Optimal Organisation Performance

Leadership

Renewal

Transformation

Common Purpose

Competencies

Differentiation

Values Driven

Driving

Performance

Relevance to

Stakeholders

Vision

Mission

Strategy

Making the Future a Reality

for all Stakeholders

Building a Culture to Underpin

and

Deliver Organisation Vision

Leadership and Management

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2019 2020 2021

Organisation

Value

Key Performance Areas and Objectives

Contribution of Effective Organisation Performance

Strategy – plan to achieve objectives

• Vision, Mission and Culture underpin

strategy

• Identifies clear and measurable

objectives with evaluation

• Relevant target markets and

stakeholders

• Plan of activities and a timetable

• Address risks and mitigation

• Leverage of resources – financial and

people

Implementing Strategy - Turning Theory and Plans into Action

44

Organisational Capital and Alignment (Example)

TRANSFORMATION – HIGH PERFORMANCE ORGANISATIONS

• On a large scale

• New ways of working

• New behaviours

• Leadership role?

• People processes as a source of competitive advantage

• Trust and commitment

• Operating Environment

• Strategy

• Culture

• Leadership

• Implementation

STRATEGIC ALIGNMENT?

Up to 50% of senior management time is taken up with people matters.

Senior management spends less than 1% of their time on

strategic planning.

Companies focused on issues have 16% greater profits than

companies focused on business units.

Harvard Business Review

Finding the right issues and then focusing on them is the only

way forward in business today.

Prof. Peter D Skinner Texas A&M

‘A Review of all major Business Schools in the USA’

EFFECTIVE ORGANISATIONS

Tight focus on customers and local markets

Flat structures and decentralized controls

Empowered Management and staff

A concentration on core activities

Controls that are both loose and tight

Consultative decision-making

Truths about LEADERSHIP

• You can make a difference

• Credibility is the foundation of leadership

• Values drive commitment

• Focusing on the future sets leaders apart

• You can’t do it alone

• Trust rules

• Challenge is the crucible for greatness

• Either lead by example or don’t lead at all

• The best leaders are the best learners

• Leadership is an affair of the heart

COMMON PURPOSE

(COMMON GOOD)

MANAGEMENT AND LEADERSHIP

MDP

Module 1

February 2019