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The Enhancement of key Leadership Competencies in Middle Managers

CONTENTS

• Project Background and Scope

• Development Process

• Findings

• The way forward

2

ABOUT ESKOM

• Strategic 100% state-owned

electricity utility, strongly

supported by the government

• Supplies approximately 90% of

South Africa’s electricity

• Performed 191 595 household

electrification connections

during the year

• As at 31 March 2019:

• 6.2 million direct

customers (2017: 5.6 million)

• 30 (including 1 nuclear)

operational power stations

with a nominal generating

capacity of 44 172MW

• Total sales of 208 319GWh

• Approximately 387 633km of

cables and power lines

• 39 292 employees, inclusive

of subsidiaries 3

ELECTRICITY SUPPLY CHAIN

4

GENERATION PLANT MIX

Type Number of stations

Number of units

Nominal capacity (MW)

Percentage of total nominal capacity

Coal-fired 15 88 37 868 83.1%

Hydroelectric 6 16 600 1.3%

Pumped storage 3 10 2 724 5.9%

Nuclear 1 2 1 860 4.0%

Gas 4 20 2 409 5.2%

Wind 1 46 100 0.1%

Total nominal capacity 30 124 45 561 100.0%

5

DIVISIONAL STRUCTURE

Group Executive

Generation

Power Station General Manager

Middle Manager

Maintenance

Middle Manager Operating

Middle Manager

Engineering

Middle Manager Projects

Middle Manager Risk & Assurance

Middle Manager

Compliance

Middle Manager

Production

Middle Manager Finance

Context:

• The Generation Sustainability department identified specific

managerial and leadership competencies as key enablers for

Generation success and the move towards world-class

performance.

• A Management Enhancement Programme (MEP) for Generation

middle managers were developed and implemented.

• Against this background the declaration of managerial and

leadership competence, after the completion of the MEP, became

essential.

Purpose:

• To develop and implement an assessment centre to determine the

level of specifically identified behavioural, managerial and leadership

competence as demonstrated by Maintenance and Operating

Managers.

• To use the outcomes of the assessment centre to identify individual

and collective development gaps.

CONTEXT AND PURPOSE

PROJECT SCOPE

Generation

LeadershipFaculty

8

PROCESS

Framework Review

Alignment

Design

Pre-Implementation

Implement

9

FRAMEWORK REVIEW & ALIGNMENT

10

• Current Eskom Leadership Framework underpins the four (4) leadership pillars.

• Consists of 14 competencies, with three broad focus areas (Leading Self, Leading Others and Leading the Organisation).

• Process included a review of the current competency names and definitions, and the relevance thereof within the organisation.

• Behavioural indicators formulated

• Peer reviewed

FRAMEWORK REVIEW & ALIGNMENT

11

• Reviewed the current MEP modules and aligned to the Eskom Leadership Framework

• This ensures that an individual can be declared “competent” or “not yet competent” upon completion of the programme.

Competency Competency Definition MEP Module Behavioural Indicators

Building Effective

Teams

Blends people into teams and creates

strong morale, energy and spirit in the

team. Consistently fosters and

leverages collaborative relationships

within and across teams.

Leading in my Role

Teams

Mobilises team into action (i.e. sets goals

and monitors progress).

Encourages all team members to work

together towards achieving objectives.

Business Acumen Knows how Eskom businesses work.

Knowledgeable in current and possible

future policies, practices, trends and

information affecting his/her business.

Is aware of how strategies and tactics

work in the marketplace.

Executing my Role

•Cascading business

goals

Able to identify issues impacting the

business.

Understands the forces impacting on

profitability and sustainability.

SME’s

• Ensures buy-in

• Provides information regarding simulated content for exercises

Behavioural Experts• Structured content

• Design exercises & formulate BARS

12

DESIGN

PRESENTATION

GROUP

EXERCISEROLE-PLAYCASE STUDY

EXERCISE ELEMENTS

Analysis Exercise

• Analyse information, provide SWOT, Business Case & Implementation plan

• Entire day (needs to manage own time)

Development Discussion

• Conduct a development discussion & populate IDP

• 25 min for role-play

Best Practice Forum

• Develop actions to address people challenges

• 25 min for discussion

Presentation Exercise

• Consolidation of analysis findings

• 30 min for presentation and questioning

13

HR Pack Technical Pack

Participant Instructions

Administrator Instructions

Scoring Protocol

ASSESSMENT MATRIX

Competency Analysis Role Play Group Presentation

Building Effective Teams •

Business Acumen • •

Change Leadership • •

Communication & Engagement • • • •

Customer Orientation • •

Embracing Diversity • •

Emotional Maturity • •

Judgement & Decision Making • •

Learning Orientation •

Managing Talent • •

Results Orientation • •

Stakeholder Management • •

Strategy Generation & Alignment • •

14

PRE-IMPLEMENTATION

• Assessor Training

• 15 assessors were identified to attend training

• All from a behavioural background

• Diverse in terms of race, gender, age, experience

• Behavioural Training focussed on ORCE principles and an overview of the 4 exercises

• Frame-of-reference training provided assessors with the opportunity to score a “simulated” exercise completed by SME

15

OVERVIEW OF ASSESSMENTS

Process Profile (CPP))

What level of complexity is the

individual comfortable with?

How do they go about solving

unfamiliar problems?

Hogan Personality

Inventory (HPI)

Everyday strengths and development

areas

How will they behave in the

work environment?

Hogan Development survey (HDS)

What behaviourswill emerge during

times of stress?

How it might damage

relationships and derail own behaviour

Emotional Intelligence (EQ)

How do they manage

emotions?

How do they relate to others?

How do they express

themselves?

Day-in-the-life simulation

Demonstrated competence and

skills

16

PRE-IMPLEMENTATION

• 2 Pre-testing sessions were conducted

• Maintenance March & April

• Operating June & July

• Both groups included current employees that:

• Have attended the MEP

• Are currently in the position, or in a one level down grade

• Represent the diversity of Eskom in terms of age, gender, ethnicity and experience

17

ASSESSMENT DAY

18

Introduction & Instructions

Analysis ExerciseDevelopment Discussion

Best Practice Forum Group Discussion

Presentation Evaluation

ASSESSMENT PROGRAMME

PRE- IMPLEMENTATION FINDINGS

19

GENDER DISTRIBUTION

n=30

• As expected, the Eskom environment is still male dominated, specifically within the generation environment.

• An interesting observation is that the majority of females were from the Maintenance Environment.

20

Male70%

Female30%

AGE DISTRIBUTION

n=30

• Utilised 5 categories to display the age distribution of the pilot group:

• > 25

• 25 – 35

• 36 – 45

• 46 – 55

• 55 >

• The group is dominated by the typical Generation X individuals, with all participants being in the category of 36 – 55.

• This is interesting, especially at the M15 level, which is supervisory, that there were no younger candidates nominated to participate.

21

36 - 45 years73%

46 - 55 years27%

GRADE DISTRIBUTION

• The focus of this particular project is not only determining the development areas of current M18 employees, but also to identify the opportunities for growth within the two lower bands.

• The majority of the group came from the M18 band, which are individual's that are typically functioning and Maintenance and Operating Managers.

• Approximately 57% of the group were from the M15-16 bands.

• The high number of lower band employees could also be due to the timing of the Maintenance pilot when M18 were “held back” due to work demands.

22

M1520%

M1637%

M1843%

n=30

DAY-TO-DAY WORKSTYLE (HPI)

61

51

38

53

70

63

69

0

10

20

30

40

50

60

70

80

90

100

Adjustment Ambition Sociability InterpersonalSensitivity

Prudence Inquisitive Learning Approach

%ile

score

23

Low High

Adjustment Open to feedback; Moody & Critical Calm; Resistant to feedback

Ambition Good team player; Complacent Energetic; Restless

Sociability Quiet; Socially reactive Outgoing; Attention-seeking

Interpersonal Sensitivity Direct; Cold Friendly; Conflict Averse

Prudence Flexible; Impulsive Organised; Inflexible

Inquisitive Practical; Uninventive Imaginative; Poor Implementer

Learning Approach Hands-on; Technology Averse Interested in learning; Intolerant

DAY-TO-DAY FREQUENCIES (HPI)

7%

24%

41%

17%

3%

10%

10%

24%

31%

28%

21%

7%

31%

14%

41%

34%

14%

48%

38%

17%

14%

28%

10%

17%

14%

52%

41%

62%

0% 20% 40% 60% 80% 100%

Adjustment

Ambition

Sociability

Interpersonal Sensitivity

Prudence

Inquisitive

Learning Approach

Low Below Average Above Average High

24

BEHAVIOURAL RISK (HDS)

55

4341

55 53

73

54

48

70

83

52

0

10

20

30

40

50

60

70

80

90

Excitable Skeptical Cautious Reserved Leisurely Bold Mischievous Colorful Imaginative Diligent Dutiful

%ile

25

Excitable Easily annoyed; emotionally volatile

Skeptical Mistrustful; cynical

Cautious Too conservative; risk averse

Reserved Aloof and remote; indifferent to others' feelings

Leisurely Uncooperative; stubborn

Bold Arrogant; entitled and self-promoting

Mischievous Charming and fun; careless about commitments

Colourful Dramatic; noisy

Imaginative Impractical; eccentric

Diligent Perfectionistic; Micromanaging

Dutiful Respectful and deferential; eager to please

RISK FREQUENCIES (HDS)

13%

33%

43%

20%

20%

10%

23%

10%

10%

7%

27%

33%

37%

13%

13%

10%

10%

27%

53%

7%

13%

33%

30%

10%

33%

47%

50%

27%

23%

23%

40%

0%

17%

23%

20%

10%

20%

20%

53%

27%

13%

43%

80%

23%

Excitable

Skeptical

Cautious

Reserved

Leisurely

Bold

Mischievous

Colorful

Imaginative

Diligent

Dutiful

No Risk Low Risk Moderate Risk High Risk

26

EMOTIONAL INTELLIGENCE FREQUENCIES (EQ-i)

27

14%

3%

7%

7%

7%

3%

10%

21%

3%

3%

7%

17%

79%

52%

72%

72%

55%

55%

62%

76%

62%

79%

66%

52%

45%

66%

52%

21%

34%

21%

21%

38%

38%

34%

14%

17%

17%

31%

41%

38%

34%

48%

3%

0% 20% 40% 60% 80% 100%

Optimism

Stress Tolerance

Flexibility

Impulse Control

Reality Testing

Problem Solving

Social Responsibility

Empathy

Interpersonal Relationships

Independence

Assertiveness

Emotional Expression

Emotional Self Awareness

Self Actualization

Self Regard

Underdeveloped Effective Enhanced Very High

WORK ENVIRONMENT FREQUENCIES

7%

24%

21%

24%

17%

7%

Operationalfor Diagnostic

DiagnosticAccumulation

Diagnostic forTactical

TacticalStrategy

TacticalStrategy for

ParallelProcessing

ParallelProcessing

28

Operational Level

Individuals who are better suited to the Operational workenvironment prefer direct involvement with practical, clearlystructured operating tasks that have obvious and clear rulesfor success. They deal with routine tasks that have clearlinear procedures, using their knowledge to complete thetask.

Diagnostic Level

Individuals who are best suited to the Diagnostic workenvironment may have an analytical or sequential approach,following clear, linear procedures to diagnose and solveproblems. They often have specialist or good technicalknowledge in their field.

Tactical Strategy Level

Individuals best suited to Tactical work environments tend toevaluate systems and practices, make practical decisionsabout the best way to get things working efficiently, and planhow resources can best be deployed.

Parallel Processing Level

Individuals who are best suited to Parallel Processingenvironments tend to focus on broad strategy. Theseindividuals plan and implement business solutions, balancingand juggling resources between different so that these areused most effectively,

Pure Strategy Level

These individuals prefer to work with abstract, broad,sweeping issues – chaos, macro-economic factors, potentialindustry partners and environmental impact. They ofteninitiate change that may impact the whole industry andcreate a future through philosophical leverage.

PROBLEM SOLVING STYLES FREQUENCIES

3%

20%23%

30%

43%

33%

10%7%

20%

27%

13%

33%

57%

23% 23%

29

Logical Looks for logical evidence, follows reasoning processes through in a rule-based manner May facilitate effective strategic thinking.

Analytical Works systematically; has a precise and detailed approach. May constrain effective strategic thinking.

Structured Identifies core elements and formulates generalisations. May constrain effective strategic thinking.

Reflective Checks information carefully, precisely and even repeatedly. May constrain effective strategic thinking.

Trial-and-Error Has a vague and unsystematic approach to problem-solving. May constrain effective strategic thinking.

Reactive Works quickly but inaccurately. May constrain effective strategic thinking.

Memory Automates rules and integrates information. May constrain effective strategic thinking.

Explorative Explores different types of information thoroughly. May constrain effective strategic thinking.

Learning Is adaptable, flexible and able to acquire new ways of thinking. May facilitate effective strategic thinking

Integrative Tends to synthesise discrepant, fragmented and ambiguous information into a coherent whole. May facilitate effective strategic thinking.

Metaphoric Views problems symbolically. Combines elements of information in unusual ways. May facilitate effective strategic thinking.

Holistic Tends to see the big picture without losing sight of the detail. May facilitate effective strategic thinking.

Intuitive Often relies on previous knowledge and experience. May facilitate effective strategic thinking.

Quick Insight Grasps ideas and reaches conclusions relatively quickly. May facilitate effective strategic thinking.

OVERALL COMPETENCY FREQUENCIES

30

* The graphs below indicate the percentage of leaders whose overall results place them into one of four summary categories

Significant Development Required Some Development Required Potential Strength Strength

3%

13%

12%

7%

23%

10%

43%

30%

40%

13%

77%

45%

20%

20%

47%

7%

59%

37%

43%

47%

33%

47%

53%

60%

23%

34%

57%

63%

37%

40%

6%

47%

30%

33%

20%

10%

7%

27%

21%

23%

17%

17%

53%

24%

10%

3%

10%

Building Effective Teams

Business Acumen

Change Leadership

Communication and Engagement

Customer Orientation

Embracing Diversity

Emotional Maturity

Judgement and Decision Making

Learning Orientation

Living the Eskom Values

Managing Talent

Results Orientation

Stakeholder Management

Strategy Generation and Alignment

COMPETENCIES FREQUENCIES

10%

10%

0%

3%

3%

7%

3%

0%

3%

3%

0%

13%

7%

27%

27%

7%

13%

20%

20%

13%

3%

13%

17%

13%

47%

13%

50%

40%

90%

60%

53%

50%

67%

83%

43%

63%

53%

30%

63%

13%

23%

3%

23%

23%

23%

17%

13%

40%

17%

33%

10%

17%

Building Effective Teams

Business Acumen

Change Leadership

Communication and Engagement

Customer Orientation

Embracing Diversity

Emotional Maturity

Judgement and Decision Making

Learning Orientation

Managing Talent

Results Orientation

Stakeholder Management

Strategy Generation and Alignment

Competency Potential

31

20%

17%

23%

57%

7%

7%

30%

23%

33%

40%

43%

20%

43%

37%

17%

20%

27%

13%

37%

23%

20%

40%

33%

27%

27%

27%

27%

43%

17%

50%

40%

40%

20%

37%

13%

20%

33%

13%

13%

40%

7%

17%

40%

23%

27%

20%

13%

13%

10%

Displayed Competence

Significant Development Required Some Development Required Potential Strength Strength

Competency Potential refers to the candidates’ potential todemonstrate a certain competency. It is measured usingpsychometric assessment instruments.

Displayed Competence refers to the candidates’ actual ability todemonstrate a certain skill. It is measured using a businesssimulation exercise

RESULTSA COMPARATIVE VIEW: MAINTENANCE vs OPERATING

COMPETENCY POTENTIAL

2,62,7

2,8 2,92,8

2,7

2,82,9

2,9

3,1

2,8 3,0

2,4

2,7

1,0

1,5

2,0

2,5

3,0

3,5

4,0

Operating Maintenance Generation

33

DISPLAYED COMPETENCE

2,6

2,4 2,4

3,0

1,8

2,73,0

2,8

2,32,5

2,12,1

2,1

2,4

1,0

1,5

2,0

2,5

3,0

3,5

4,0

Operating Maintenance Generation

34

OVERALL COMPETENCE

2,62,5

2,6

2,9

2,2

2,8

2,8 2,8

2,6

3,1

2,6 2,5

2,22,4

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

Operating Maintenance Generation

35

OBSERVATIONS

• Both sets of managers show potential, yet there is a lack of skill in displaying

the leadership behaviours.

• Middle management within these two department are focussed on learning

and will likely remain up to date with changes, however they may have a

tendency to resist change, and only a few could act as natural change agents.

• There is a clear difference between managers from Operating and

Maintenance. Does the on-the-job training of Operating look different to that

of Maintenance?

• How affected are the two manager groups by recent events within the

organisation and country? Is it possible that the Maintenance managers has

more “opportunity” to derail, due to the current situation?

• Their natural inquisitive nature, tend to impact on their ability to implement.

Their ideas might be interesting and good, but in most cases somewhat

impractical. The high level of derailment on diligent, is likely to inflate these

impractical ideas and lack of implementation.

• What role does divisional culture play in the display of the Leadership

behaviours?

36

IMPLEMENTATION AND RECOMMENDATIONS

• Post the pre-testing, minor modifications were made to BARS and content of the exercises.

• Gap areas within the MEP were highlighted and adjustments made.

• The exercise were signed off by the business owners in January 2020 and planning for roll-out is currently underway.

• Could consider utilising the exercise as a DAC, and provide MEP participants the opportunity to complete the simulation prior and upon completion of the programme.

• In conjunction with the MEP, Eskom could consider providing coaching or mentoring programmes for individuals.

37

THANK YOU

Marita Becker

Assessment Manager

beckerm@eskom.co.za

Gerda van der Merwe

Director: Professional Services

gerda@jvrafrica.co.za

Sabrina Dixon

Senior Consultant

Sabrina@jvrafrica.co.za

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