The KUMBA way : establishing a winning mindset for superior performance

Marupen, Fergus Conan Salvador (2004-12)

Thesis (MBA)--Stellenbosch University, 2004.


ENGLISH ABSTRACT: KUMBA Resources (KUMBA) is a listed mining company on the Johannesburg Securities Exchange (JSE), with an annual turnover of about seven billion Rand. Their main operations consist of iron ore, coal, heavy minerals, base metals and industrial minerals. In this study project the writer will attempt to define the process followed by KUMBA to establish a winning mindset to ensure superior performance. The basic objectives defined for this study are to: • Define the process that KUMBA followed to develop a set of values for the organisation. • Explain the process followed to develop a validated questionnaire to measure the values. • Discuss the process that was followed to develop a system to support the process. • Lastly, to discuss the results of the actual ratings in June 2003 and the recommendations made after the completion of the process. The KUMBA Way was defined as a vehicle to drive this process. Core to this process is the KUMBA Values. Strategically, KUMBA decided that their values would be a distinctive lever in the company that will ensure superior performance. KUMBA then embarked on a process to develop one set of values for all the KUMBA mines. The end result was the foundation (minimum behaviour required by KUMBA) and motivational (behaviour that can be developed to achieve overall business success) values. Foundation Values: • Integrity • Respect • Accountability • Fairness • Caring Motivational Values: • We do it together • People make it happen • Let's do it • We do it better every time KUMBA also used the framework of transformational leadership and the competency model of Jay Hall as basis to entrench their values in the organisation. These processes are driven at business unit level and the line managers took the ownership of this process. A further decision KUMBA took was to measure their values. A validated questionnaire was needed to be able to deal with the process. Two pilot studies were conducted to validate the questionnaire and the questionnaire passed the criteria of reliability and validity. The questionnaire scored an overall Cronbach Alpha of 0,88. This result was higher than the minimum requirement of 0,6 for a self constructed questionnaire. A process was also followed to develop an in house system to support the overall measurement process. This system was based on the 360-degree approach. The actual measurement of the values took place in June 2003 and the results were outstanding. The results of the actual ratings compared very favourably to the results of the pilot studies. The results of the actual assessment must still be forwarded to Deloittes and Touche Human Capital Corporation to do a final Cronbach Alpha analysis. This will allow KUMBA to determine if the increase in the number of participants influenced the overall reliability and validity of the questionnaire. Furthermore, KUMBA also needs to revisit the process after one year to examine whether the measurement of these values contributed to the overall improvement of the organisational culture.

AFRIKAANSE OPSOMMING: KUMBA Resources (KUMBA) is 'n mynbou maatskappy wat op die Johannesburgse effektebeurs gelys is en het 'n jaarlikse omset van sewe miljard rand. Die basiese bedryf bestaan uit ystererts, steenkool, swaar minerale, basiese metale en industriële minerale. Die skrywer gaan, met hierdie studie, probeer om 'n wen gesindheid te skep ten einde superieure prestasie te lewer. Die basiese doelwitte vir hierdie studie word as volg gedefinieer, naamlik: • Definieer die proses wat KUMBA gevolg het ten einde een stel waardes vir die organisasie te ontwikkel. • Verduidelik die proses wat gevolg was om 'n vraelys te valideer wat die waardes sou meet. • Bespreek die proses wat gevolg was om 'n stelsel te ontwikkel wat hierdie proses sou ondersteun. • Laastens, om die resultate van die werklike meting in Junie 2003 en aanbevelings na afloop van die proses te bespreek. Die KUMBA manier was as voertuig gedefinieer om hierdie proses te dryf. Kern tot hierdie proses is die KUMBA waardes. Strategies het KUMBA besluit dat hulle waardes 'n hefboom gaan wees wat hulle graag na 'n onderskeidende vlak dryf ten einde superieure prestasie te verseker. KUMBA het met 'n proses begin om een stel waardes vir al sy besigheidseenhede te ontwikkel. Die eindresultaat was die KUMBA "Foundation" waardes (minimum gedrag wat deur KUMBA vereis word) en die "Motivational" waardes (gedrag wat ontwikkel kan word ten einde besigheid-sukses te kan bereik). "Foundation" waardes: • Integriteit • Respek • Toerekenbaarheid • Regverdigheid • Sorgvuldigheid "Motivational" waardes: • Ons doen dit saam • Mense laat dit gebeur • Kom ons doen dit • Ons doen dit beter elke keer KUMBA het ook die raamwerk van transformele leierskap en die bevoegdheidsproses van Jay Hall gebruik om waardes in die maatskappy te vestig. Hierdie prosesse was gedryf deur die besigheidseenhede en die lynbestuurders het eienaarskap van die proses geneem. 'n Verdere besluit wat KUMBA gneem het, was om hulle waardes te meet. 'n Gevalideerde vraelys was benodig vir hierdie proses. Twee loods-studies was afgeneem om die vraelys te valideer en die vraelys het aan die kriteria van geldigheid en betroubaarheid voldoen. Die vraelys het 'n algehele Cronbach Alpha van 0,88 behaal. Hierdie resultaat was hoër as die minimum vereiste van 0,6 vir 'n selfgekonstrueerde vraelys. 'n Proses was ook gevolg om 'n in-huis stelsel te ontwikkel wat die algehele metingsaksie sou ondersteun. Hierdie stelsel was gebaseer op 'n 360°-benadering. Die werklike meting het in Junie 2003 plaasgevind en die resultate was uitstekend. Die resultate van die werklike meting het baie goed vergelyk met die resultate van die tweede loods-studie. Die resultate van die werklike meting moet nog steeds aan Deloitles en Touche gestuur word ten einde 'n finale Cronbach Alpha te doen. Dit sal KUMBA in staat stel om te bepaal of die toename in die aantal deelnemers enigsins die algehele geldigheid en betroubaarheid van die vraelys beïnvloed het. KUMBA moet ook hierdie proses na 'n jaar hersien om te bepaal of die meting enigsins 'n bydrae tot die algemene organisasie-kultuur lewer.

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