Driving business performance with HR as a strategic partner Chris Low 24/5/18

Agenda Letshego overview and performance The customer value chain The people value chain Creating the right culture and climate

From a proud Botswana heritage to Africa’s leading inclusive Finance Group

We are building a strong foundation to support the delivery of our strategy

In 2017 we executed on a number of key deliverables

And also achieved good growth in a challenging environment

To reliably influence these To effectively manage these HR’s role in the customer value chain (CVC) is critical for business growth IDENTIFY STRENGTHS THE RIGHT FIT GREAT MANAGERS ENGAGED EMPLOYEES LOYAL CUSTOMERS SUSTAINABLE GROWTH REAL PROFIT INCREASE STOCK Performance Management To reliably influence these Customer experience Employee engagement To effectively manage these In summary, we can’t control stock price - but we can influence employee engagement, which as we will see later in the presentation is a leading indicator of business performance measures by profitability, productivity, customer satisfaction and loyalty, and employee retention. However, having talented employee in the right roles is not sufficient to create high performing workplaces. What makes talented people productive? Research has shown that great managers are the key to productive workplaces. They position employees for success, define expectations, give feedback, understand individual needs, understand their strengths, position them for success etc. Greta managers need to get the best out of the employees and everyone has different motivations and needs. Know from the data that the manager is the key driver of employee engagement. The Manager’s role is to create the “engaged” employees who are productive, and drive customer loyalty and business results. Playing to strengths

Delivering on CVC requires a leadership shift Carrying out task to ensure performance Monitoring “Stable” performance Leading “Step Change” performance Doing Informing Inspiring Asking Instructing Guiding Reporting Demanding Stimulating Three hats - Individual Manager Leader

The people value chain – HR has a role to play in all areas 1. Leadership Effectiveness 2. Talent Management and Placement 3. Learning and Development 4. Engagement Hierarchy 5. Compensation Approach

Our leadership competence wheel Leadership development EFI Letshego is investing in building transformation leadership capability Our leadership competence wheel Leadership development Initiatives Executive coaching Leading from within Transformational Leadership Development Centre Leadership conferences and change champions workshops Building capacity Strengthened Group and Country teams Launching a leadership development portal Continuing performance related incentive plans Continue to pursue cross border assignments Ticks of what's there and what's coming How many people have access When everyone will have access Have a computer available at the workshop for directors to interact with the – or flipcharts

Classification & Recruitment Talent management and placement should be at the core of your people strategy Up-skill senior and middle management through the development centre approach Use “Strengthsfinder” tools Complete Leadership competencies assessments Assessment Tool Classify employees into HIPOs, CRs, CCs, UA and UPs Identify all critical positions and underpin with HIPOs Recruit only the best in market Classification & Recruitment Identify a minimum 2 potential successors for all senior management roles Ensure there is a pipeline of management Identify HIPOs as successors Succession Planning Introduce lateral moves, attachments, secondments and promotions as well as international assignments (where possible) Bridge competency gaps through development plans Career Progress

Coaching and Mentoring Classroom and e-learning 05/04/2019 20:42 The L&D Framework is essential to ensuring that you develop great managers and required capabilities WHO Understand the individual competency gap Consolidate training needs analysis WHAT Assess internal and external delivery channels Build internal training capabilities / champions WHEN Annual planner Ongoing learning and mentoring HOW Execute plans and follow through The L&D Mix 70% Self Development On the job Toolkits E-learning 20% Coaching and Mentoring Coaching Mentoring Feedback Q12 – impact planning 10% Classroom and e-learning Lectures / classroom Tests / Assessments Notes / Presentations E - learning

Employee engagement should never be underestimated – Gallup’s Q12 survey Opportunity to learn and grow Progress in last six months (Overall Growth) How can I Grow? Best friend Coworkers committed to quality Mission/purpose of company My opinions count Do I belong here? (Teamwork) Encourages development Supervisor/someone at work cares Recognition in last seven days Do what I do best every day What do I give? (Management Support) I know what is expected of me at work Materials and equipment What do I get? (Basic Needs) This shows a progression to the questions in addressing the journey towards becoming engaged. The bottom of the pyramid shows the more basic and if these are not attended to then the higher ones might not really matter. It is important to build strengths starting from the bottom then gradually moving up. If you give staff lots of opportunity to learn but they do not know what is expected, then you are training people to leave the organisation.

Getting to the right compensation approach is important Understanding Full Cost To Company (basic salary and benefits, both tangible and intangible) Total Package Ensure that reward and recognition is competitive and leads to desired performance behaviors Market Alignment Build Strong employee brand, key people/ critical resources vs non-performers Attraction and Retention Saving Culture Saving for a Better Tomorrow Wealth Creation “Fair, transparent and rewarding” However “employee wellness” or the softer aspects of what is on offer to employees must not be forgotten.

However without the right culture and climate, alignment will not happen Shared vision HR systems & professional standards Performance contracts ALIGNMENT Where is the organisation headed, what is its purpose and strategy, and how supportive is the internal environment? EXECUTION How does the organisation execute its strategy and deliver its services? RENEWAL How does the organisation understand, interact with and respond/adapt its situation the external environment? Career opportunities Reference again Chris’s slide. Openness and trust Collaboration Transparent Discipline Receptive to change Talent acquisition and development 5

EFI Ultimately, building a “simply irresistible organisation” will drive business performance Opportunity to do best Know what's expected Best friend Learn and grow Trust in leadership Our teams should leverage their strengths and have the opportunity to do their best. Our infrastructure should have the materials and equipment to do their work right Our environment will drive employee satisfaction Our people should appreciate and understand what is expected of them. Our people should be able to express their opinion and influence our direction. Our people should be recognised for doing a good job Our people should have a “best “ friend at the work place Our people should feel that leadership and colleagues care for them Letshego staff should believe in the quality and outputs of their colleagues. Our environment should provide opportunity for people to learn and grow. Our leadership should encourage our teams to build capacity and develop their knowledge and understanding. Our teams should believe in the leadership and the direction of the group. Our leadership teams should have sufficient capacity to drive the business forward.