1. Culture change through leadership Amanda Singleton Group Executive: Corporate Communication Telkom

2. Launching into the global arena Challenges facing SA leaders Addressing local transformation challenges and also Satisfying shareholders Attending to the diverse needs of a complex network of stakeholders while

3. Telkom’s evolution 1991 Commercialisation 1996 Licensed (with a 5-year exclusivity) under new Telecoms Act 1997 Partial privatisation 2002 End of exclusivity 2003 IPO2004 Competition

4. To survive and prosper in a ever-changing environment, adaptability is key SA industries need more than gradual adjustment to changing circumstances; we need to shift paradigms The central challenge: to create and lead an adaptive enterprise Why is corporate culture so important?

5. No CEO can single-handedly make changes to an organisation’s genetic code Lasting organisational transformation requires a change in people –A fundamental shift in ‘the way we do things around here’ –Corporate culture change is a prerequisite for successful business transformation Culture is important: –because it powerfully influences the behaviour of employees –because it is difficult to change and –because its near invisibility makes it hard to address directly Why is corporate culture so important?

6. The emergence of culture Group Interaction Shared Values Norms of Behaviour Positive Results CULTURE A strong corporate culture = values widely shared amongst employees

7. Values provide the roadmap to the vision –shape the culture needed to realise the vision Values mould the behaviour – defines the corporate culture Corporate Culture should accommodate multi culturalism –Umbrella for diverse cultures, languages, backgrounds and national norms Values have value only when: –they are commonly understood –they are unanimously subscribed to –they are lived by everyone The value of common values

8. Telkom’s value system We value people and their diversity We are performance driven We are customer focused We create shareholder value We are a model corporate citizen We act with integrity in everything we do

9. communication “Vision” (to be) Current situation “As is” “Culture” (How to behave along the way) “Strategy” (What do we need to focus on) The strategic fit

10. Vision: –To be a world-class communication company Strategic Goal: –To invest in our employees Value: –We value our people and their diversity Behaviour needed: –No stereotyping, prejudice and discrimination in the workplace –Fair recruitment, an appreciation for the EE imperative –Making full use of the skills of all employees –Open communication on development needs –Regular discussions on performance and improvement areas –Coaching, mentoring and personal development –Creation of opportunities for personal growth –Retention of critical skills A Telkom example

11. 1.Articulate the company’s vision as a concise word picture describing what the organisation aspires to become –Keep it simple, motivational and realistic 2.Develop enterprise strategy as “what to focus on” in achieving the vision 3.Design a set of values 4.Identify behaviours needed from management and employees to execute strategy 5.Communicate all of this in coherent and compelling ways 6.Drive for total contextualisation down to an individual level –The role of every line manager is key Changing corporate culture

12. Committed leadership and clearly defined corporate values distinguish major cultural changes that succeed, from those that fail. The single most visible factor that distinguishes major cultural changes that succeed from those that fail is competent leadership at the top …. Only with leadership does one get the boldness, the vision and the energy needed to create large and difficult changes … John P. Kotter & James L. Heskett Leadership is critical

13. Chief sense makers for the organisation –Providing insights about the business and markets The ability to provide direction – defining a vision The ability to bring vision to reality –Creating strategy to close the gap between vision and current reality The skill to reconnect organisational life with organisational purpose –“Where are we going and why”; –“What is our company’s role in society”; –“What is the context and meaning of this change in strategic direction” What culture change demands of Executive Leadership 1. Conceptual Leadership “Without vision, direction and a sense of purpose, it’s difficult to harness the energy, passion, commitment, and perseverance needed to transform”

14. Leadership is in the first place, PERSONAL Leadership is about truly living the company’s values Leadership is setting an example, being a role model Leadership is consistency between what is SAID and DONE. What culture change demands of Executive Leadership 2. Personal Commitment “One of the most important ways executives can demonstrate their commitment and credibility comes through how they work within their own teams”

15. Effective communication is the oxygen for new-breed leadership Communication is not one-directional –Engage strategically –Listen hard –Create an environment that allows candid feedback/ criticism Communication needs to be regular –In good times and bad –Never skip scheduled engagements Communication has to be open and honest –Own up: take personal responsibility for hard decisions –Resist the urge to spin – it always backfires What culture change demands of Executive Leadership 3. Communication “People need to hear directly from the leader”

16. The time has come... For leaders to step forward and show real leadership

17. Questions?