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Clock Exercise

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Values Based Leadership

The Development Process

Why

The Motivation

WhatThe focus

HowThe Deliverables

WhenA Call to Action

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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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VALUES

• Safety• Caring • Customer Focus• Commitment

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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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STAKEHOLDERS

• Customers• Employees • Trade Unions• Government• Shareholders• Suppliers and Contractors• Local Communities• NGOs and Special Interest Groups• Media

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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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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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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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• 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 -> 556Domestic 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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4 Key Strategic Objectives 2014 Performance vs. 2015 Goals

• Maintaining our license to operateB-BBEE Rating Level 7 -> Level 6Scio-economic Spent (Rm) 16.3 -> 30.5Environmental Expenditure (Rm) 63.0 -> 20% of

Capital Expenditure• Driving Profitability

10 consecutive quarters of lossPlant Capacity Utilization (%) 69.5 -> 94.7

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How do you create value into the future while meeting the mission

and living the values?

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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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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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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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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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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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Leadership is autobiographical.If I don’t know your life story,

I don’t know a thing about you as a leader.

Noel TichyUniversity of Michigan

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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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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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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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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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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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A Leadership Transformation

What people want from their Leaders

► Direction* ►Hope ► Trust ► Results

Warren BennisAuthor – 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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►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 Challenge

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• 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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Culture By Design

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Your Basic Role

Leadership appears to bethe art of getting others to want to do something

you are convincedneeds to be done.

Vance PackardThe Pyramid Climbers

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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“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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Daniel Pink – Drive: The Surprising Truth About What Motivates Us

• Autonomy

• Mastery

• Purpose

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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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• 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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Executive DerailmentThe Ten Fatal Flaws

Insensitivity Coldness, AloofnessBetraying a Trust Overly AmbitiousOver-Managing Overly TacticalUnable to Handle Crisis Unable to Adapt to a BossOverly Dependent on a Mentor Poor Staff Selection

Morgan McCall, JrThe Lessons of Experience

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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?

2023-04-15

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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?

A Call to Action

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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?