change and transformation: engaging the hearts and minds of people. the british american tobacco south africa experience.

15% Global Market Share who are we? BAT South Africa one of top nine markets Number two in the Tobacco Industry Factories in 64 Countries 81,000 Employees Presence in 180 Countries

Confidence Levels of Employees where did we come from? ISSUES Different views on Transformation New BAT Organisation Business Issues Organisation Climate

Implementation transformation process Assessment (follow-up diagnosis) Organisation diagnosis Strategy Intervention Design CHANGE

3 July 2002 UnfreezeMobiliseRealiseReinforceSustain 18 winning in our world 2000 focus group outcome winning in our world 2000 focus group outcome SCORING SCALE

3 July 2002 High Performing Organisations Strategic Direction Consumer Focus Employee Development Culture & Climate Communi- cation Leadership high performing organisations

3 July 2002 Design and development of interventions the journey roadmap Briefing of Management Teams Top Management: Understanding of role and behaviour Organisation-wide communication Be pro-active - lead and manage process behind the scenes No. 1 for Everyone Engage the hearts and minds Agree & embed a common process

3 July 2002 Strategic direction Communication Leadership Employee development Culture the journey - examples

3 July 2002 Guiding Principles Values Individual KRA’s/KJO’s DEPARTMENTAL KRA’s FUNCTIONAL KRA’s COMPANY STRATEGY, OBJECTIVES & KRA’s G lobal V ision O ur V ision achieving line-of sight

leadership pipeline CORE DEVELOPMENT LIVING BEHAVIOURS ACCELERATED DEVELOPMENT LEADERSHIP EDUCATION NEXT AGENDA

3 July 2002 Emotional Intelligence Functional Training Management Development A.I.D.S. Personal Mastery Free to Win 6.63% of Payroll Project Management employee development Hearts and Minds

3 July 2002 Drive the journey No 1 For Everyone OPEN MINDED ENTERPRISING SPIRIT STRENGTH FROM DIVERSITY FREEDOM THROUGH RESPONSIBILITY Consumer Focus Belonging Map StandardsSupport VisionConfidenceTeamwork Living the Vision Road shows Briefing sessions Company Scorecard Brand awareness campaigns Building Company Image New Offices Performance Management Enhance Decision making MD’s Breakfast Sessions Marketing Conference Free to win Career Management (CDM) Training & Development (PCD) Anniversary events

3 July 2002 UnfreezeMobiliseRealiseReinforceSustain 18 winning in our world focus group outcome winning in our world focus group outcome 2428 SCORING SCALE

results Leadership and Culture Exceed business objectives Good “Your Voice” and WoW results Pride and confidence in the organisation Better succession pools/ Equity Profile Big picture is clear Openness and informality High standards High energy

key learnings: elements critical for success key learnings: elements critical for success Personal leadership, drive, behaviour of Managing Director Accurate assessment of current reality in organisation Transformation is an ongoing process Use external resources if necessary. Change strategy tied to business strategy Top Team Leadership Success leads to: More Energy, Commitment and Pride Integration of HR processes Integrate work on leadership and culture HR team that can use their initiative, knowledge and skills HR Team - resources and “freedom”