Presented by: Florence Mwele Eastern Hydros UNHEALTHY COMPETITION IN ACHIEVING KENGEN’S STRATEGY Presented by: Florence Mwele Eastern Hydros 2017 G2G INNOVATION SEMINAR, ENASHIPAI RESORT & SPA 3RD JULY - 7TH JULY 2017

PRESENTATION OUTLINE 1.0 Introduction 2.0 Problem Statement JOH-KGN001-20071212-JvW-X1 PRESENTATION OUTLINE 1.0 Introduction 2.0 Problem Statement 3.0 Solutions 4.0 Recommendations 5.0 Conclusion

1.1 KenGen’s Vision Statement Our Vision is to be the market leader in the provision of Reliable, Safe, Quality and Competitively priced electric energy in the Eastern African Region. Due to technological changes, we are operating in a very competitive environment and thus each of us has to “Up their Game”

1.3 KenGen’s Revamped Horizon II Strategy JOH-KGN001-20071109-CA-P1 1.3 KenGen’s Revamped Horizon II Strategy *Improve returns of current plants (OPEX) *Ensure profitability of future projects (CAPEX) *Improve PPAs and tariff regulations *Pursue new financing approaches (e.g., partnerships-SPV, asset monetization) *Establish new structures to execute and finance projects (KenGen A/B/C) *Deliver current pipeline and access new geothermal fields (e.g., Magadi, Suswa, Longonot) *Improve organizational health and build required skills/ capabilities (e.g., SPV creation, motivation) 1 2 3 4 5 6 7 7 Key Priority initiatives Vision: To be the market leader, in the provision of reliable, safe quality and competitively priced electric energy in the East African region Strategic pillars Organisational health Enhance annual plan- ing and budget Foster innovation and continuous improvement ` Upgrade IT support/ enablers Capital planning and execution Operational excellence Regulatory and financing Optimise maintenance practices and increase availability Reduce operational and overhead costs Improve operational processes and structure Drive performance management1 Improve leadership health Achieve people readiness for growth2 Improve PPAs/ tariff regulation Implement new CAPEX planning and execution processes Effectively deliver current projects Expand geothermal capacity, incl. new fields Establish new models Pursue new financing approaches +4,100 MW by 2025 1 Incl. talent management, promotion/succession planning, women’s motivation 2 Incl. FTE growth and skill/capability building SOURCE: Team analysis

2.0 Problem Statement The existence of some negative sub - cultures create unhealthy competition within the KenGen workplace.

2.1 Sub-Culture - “What's In It For Me?” Wrong Motivation Selfishness Driven by an Individualism element Employees’ motivations are driven by monetary benefits Employees shun tasks that do not financially benefit them directly Employees abusing the privilege of overtime claims as part of their income

2.2 Sub-Culture-“Them Versus Us” Disconnect exists between employees in Areas and Central Office. Some employees do not see KenGen as their own business hence there is a lack business sense. Some employees only work to please the superiors and not to achieve an objective. Seeking favors or selfish recognition from superiors and creating fear and tension amongst fellow employees.

2.3 Sub-Culture- “Blame Game” Exists as a result of employees not taking responsibility. Exists between departments, divisions and among employees Lack of ownership leading to unnecessary delays in work processes

2.4 Sub- culture of “Inaction or non-implementation” Failure to follow through with agreed upon activities e.g. attending meetings, conferences, seminars Lack of interest in company activities e.g. social events (wellness programs Not meeting agreed upon deadlines e.g. performance appraisals, surveys

2.5 Competition Competition among employees in the workplace is a double-edged sword that can benefit or harm workers A competitive work environment increases production, efficiency, focus, employee motivation & profits. On the other hand, a competitive work environment can create a stressful, pressure-packed environment This can promote infighting among the employees, that can hinder quality of work and affect employee’s self- esteem

2.6 What is Unhealthy Competition among Employees? It is negatively focusing on pointing out individual flaws within employees It is a detrimental activity to the progress in an organization Creates tension and hostility among employees.

2.7 Impact of Unhealthy Competition in Business Management It can lead to a toxic culture. It can hinder the quality of work. It can create a pressure-packed environment. Promote infighting among the employees. It increases the employees’ stress level. Decreases productivity and efficiency. Result-oriented individuals gradually become less productive.

2.8 Examples of Unhealthy Competition in KenGen Hoarding information/ideas –not sharing for fear others shall catch up; steal our ideas Not taking Leave –fear that others shall take up their tasks & may be outshine them, and they get out of lime-light Never seeking opinions/advice –seeks to identify with superiors only; or prefer one-man show

2.9 Examples of Unhealthy Competition in KenGen JOH-KGN001-20071212-JvW-X1 2.9 Examples of Unhealthy Competition in KenGen Underhand tactics –use negative gossip; rumour mills, information lock-up; unwarranted blame-game Remain sulky, gloomy when others accomplish their tasks Downplay events, not celebrating others’ achievements Opiniated employees who feel they are always the best (know-it-all attitude) Saboteurs deliberately destroying other colleagues’ projects, presentations, reports e.t.c

We need to focus on the Company’s goals and objectives. 3.0 Solutions We need to change our mind-set while working individually and collectively We need to focus on the Company’s goals and objectives. We all need to strive to achieve a shared vision in terms of our actions and deliverables

3.1 Solutions Our Leaders should therefore also :- Be the example of the desired change for the implementation of KenGen’s strategy Build impactful relationships with team members and external parties Communicate expectations clearly to their teams Endeavour to be effective and efficient leaders in all circles

4.0 Recommendations Benchmarking should be carried out within and outside the Company Staff motivation and appropriate recognition (awards) at individual level and area level Revive and emulate Change Management from Kipevu Encourage the culture of openness and fair criticism Identifying and shaming unhealthy competition culprits Encourage cross functional activities and programs within the different divisions through mixed team building activities to break the silos 1 2 3

Unhealthy competition adversely affects the delivery of our strategy. 5.0 Conclusions Unhealthy competition adversely affects the delivery of our strategy. The Management should consider implementing appropriate interventions KenGen’s competitiveness and shared direction will only be strengthened through the elimination of unhealthy competition among the employees

ENASHIPAI OATH / DECLARATION JOH-KGN001-20071212-JvW-X1 ENASHIPAI OATH / DECLARATION ‘I (Everyone mentions their name), do hereby confirm and solemnly state that I shall not participate in unhealthy competition whatsoever, and I shall strive to work towards achieving the Company’s objectives’

Thank you