Critical overview of performing people the Kumba Way

Piater, Margaretha (2004-03)

Thesis (MBA)--Stellenbosch University, 2004.

Thesis

ENGLISH ABSTRACT: Kumba Resources is one of the largest South African-domiciled mining groups. After completing an extensive and hard-hitting re-engineering drive Kumba Resources engaged in making its operations more efficient and to create growth opportunities to realise its vision: UT0 outperform the mining and minerals sector in creating value to all stakeholders through exceptional people and superior processes". The vehicle used in Kumba to achieve its vision is the Kumba Way. The Kumba Way is built on foundational values of Integrity, Respect, Accountability, Fairness and Caring. The motivational values, People make it happen,We do it together, Let's do it and We do it better every time create the energy and commitment to continuously improve performance The Kumba Way is a process that aims to achieve world-class performance throughout the organisation. It will create value for all shareholders and a strong competitive advantage by focusing on three areas: • The organisation-wide acceptance and internalisation of a common vision and set of values, creating an open, positive and trusting environment. • The establishment of governance processes, which provide the framework and tools to challenge and measure the performance of all employees. • Operational excellence, which involves identifying best practices across and beyond the organisation and institutionalising them. The People Performance Process, a governance process with target setting, is the driver for performance within Kumba Resources. The process was designed on best practices identified within the organisation as well as those proven in high-performing organisations worldwide. Leading organisations, well aware of the crucial role workers play in their organisations' productivity and, ultimately, in its profitability, make every effort to continually elicit optimum performance, from their employees. They do so by identifying and reinforcing successful behaviours while flagging and correcting unproductive performance. The People performance Process developed by Kumba consists of the following elements: • Inputs to the process are cascaded targets, generic and jobs specific outputs as well as the way the organisation values are lived. • Individual performance contracting was developed to ensure a clear understanding of what level of performance is required as well as what behaviour is expected in achieving the outputs. • Continuous observation and feedback focuses on creating the mindset within Kumba to ensure that feedback on performance is a continuous process and not restricted to only twice a year formal feedback. • Measuring performance implies measuring the objective achievement as set out in the performance contract as well as living the motivational values that will be measured with a 360-degree questionnaire. • Peer comparison is part of the process to ensure equity and fairness by making use of ranking of employees and considering the impact of uncontrollable on performance. • The formal performance feedback affords managers the opportunity to recap on the continual feedback given but most important it facilitates focusing on increasing performance in the future. • Measuring and auditing of the process ensures fair and equitable application and achievement of process objectives. • Consequence management implies that positive and negative consequences are linked to the level of performance as well as the way the motivational values are lived. A blended learning approach was followed consisting of E-Iearning providing "intellectually get it" and workshops support "emotionally get it". Change management was seen as a cornerstone for the implementation of the process. Line management need to take ownership of the process and therefore cooperation and buy-in are essential. A pilot implementation of the process was completed involving all top and senior managers within Kumba and already vast positive movements are evident. Kumba has not yet completed implementation in terms of the execution of the process across the organisation, but the continuous focus on changing mindsets and behaviours together with performance improvements will assist Kumba to become the high-performing organisation it aspires to become.

AFRIKAANSE OPSOMMING: Kumba Resources is een van die grootste Suid-Afrikaans gevestigde mynbou groepe. Na voltooing van 'n omvangryke en kragtige "re-engineering" fokus Kumba Resources op die verhoging van effektiwiteite in hul bestaande bedrywe sowel as op die identifisering van groei geleenthede ten einde hul visie te verwenslik: "Om die mynbou en mineraal sektor te uitprestreer ten einde waarde te ontsluit vir alle belanghebbendes deur uitsonderlike mense en superieur prosesse". Die voertuig wat Kumba gebruik om sy visie te verwenslik is die "Kumba Way". Die "Kumba Way" is gefundeer op die waardes van Integriteit, Respek, Aanspreeklikheid, Billikheid en Omgee. Die motiverende waardes "Mense laat dit gebeur, Ons doen dit saam, Kom ons doen dit saam en Ons doen dit beter elke keer" skep die energie en verbintenis tot deurlopende verbetering. Die "Kumba Way" het ten doelom wêreldklas prestasie reg deur die organisasie te bereik. Dit skep waarde vir alle deelhebbers en 'n sterk mededingende voordeel deur op die volgende drie areas te fokus: • Die organisasie-wye aanvaarding en internalisering van 'n gemene visie en waardes ten einde 'n oop, positiewe en vertrouens-wekkende omgewing te skep. • Die daarstelling van leidende prosesse as raamwerk en gereedskap om prestasie van alle werknemers te daag en te meet. • Die bereiking van bedryfsuitmuntendheid deur die identifisering van beste praktyke binne en buite die organisasie asook die institusionalisering daarvan. Die mens prestasie proses is tesame met doelwitstelling 'n leidende proses wat prestasie binne Kumba aandryf. Die proses is gefundeer op beste praktyke geidentifiseer binne die organisasie sowel as in hoë presterende organisasies wêreldwyd. Leier organisasies is deeglik bewus van die rol wat werkernemers speel in die produktiwiteit binne hulorganisasie en uiteindelike die winsgewendheid, en doen dus alles moontlik om optimale prestasie van werknemers te bewerkstellig. Ten einde dit te verwesenlik is dit nodig om suksesvolle gedrag en prestasie te versterk en onproduktiewe gedrag en prestasie waar te neem en reg te stel. Die mens prestasie proses wat deur Kumba ontwikkel is bestaan uit die volgende elemente: • Insette tot die proses word verkry van doelwitstelling, generiese en spesifieke posuitsette en organisasie-waardes. • Individuele prestasie kontraktering het ten doelom 'n duidelike begrip van die vlak van prestasie en die besondere gedrag wat vereis word om doelwitbereiking te verseker. • Deurlopende observering en terugvoer het ten doelom 'n ingesteldheid te ontwikkel dat prestasie en gedrag terugvoer deurlopend moet geskied en nie net formeel twee maal per jaar nie. • Meting van prestasie impliseer die meting van doelwitbereiking soos ooreengekom in die prestasiekontrak sowel as die leef van. die motiverende waardes wat deur middel van 'n 360-grade vraelys gemeet word. • Portuur vergelyking is deel van die proses om gelykheid en billikheid in die proses te verseker deur gebruik te maak van rangorde plasing en inagneming van die inpak van onbeheerbare aspekte op prestasie. • Formele prestasie terugvoering gee bestuurders die geleentheid om die deurlopende terugvoer saam te vat, maar die belangrikste is om te fokus op die verbetering van toekomstige prestasie. • Meting en ouditering van die proses is nodig om die billike en eenvormige toepassing van die proses sowel as die bereiking van proses doelwitte te verseker. • Gevolgbestuur impliseer dat positiewe en negatiewe gevolge met die vlak van prestasie verbind word, sowel as die wyse waarop die waardes gelewe word. 'n Gemengde benadering tot opleiding is gevolg bestaande uit elektroniese leer om 'n begrip vir die proses te ontwikkel en werkwinkels om die vaardigheid van toepassing, te ontwikkel. Veranderingsbestuur is gesien as een van die hoekstene vir implementering van die proses. Lynbestuur moet eienaarskap van die proses aanvaar en daarvoor is hulle insette en inkoop essensieel.Die toets-implementering van die proses is gedoen op die top- en seniorbestuursvlak binne Kumba en 'n beduidende positiewe verandering is reeds bewerkstelling. Kumba het egter nog nie bereik wat nodig is om die hoë presterende organisasie te wees wat dit aspireer om te wees nie, en daarom is 'n deurlopende fokus op die verandering van ingesteldheid en gedrag tesame met 'n verhoging in prestasie nodig.

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