Enabling sustainable growth through the transformation of Sasol Synfuels from good-to-great

Schoeman, H. S. (2005-03)

Thesis (MBA)--Stellenbosch University, 2005.

Thesis

ENGLISH ABSTRACT: The current transformation of Sasol Synfuels in enhancing overall business performance and realising organic growth is assessed. The framework for the assessment is based on the ideas expressed by Collins (2001), supplemented by other ideas found in the literature relevant to business performance improvement within manufacturing organisations. Gaps and opportunities are identified within the context of three of the Synfuels strategic elements of operations excellence, worldclass people and leveraging technology. Improvement areas identified are the further development of transformational leadership, reduction in fixed costs to ensure more flexibility and reduction in the current size of Synfuels. The development of transformational leadership needs to be extended to create fanatically driven, sheer workmanlike diligence, as well as determination and tenacity creating a culture of a strong disciplined work and performance ethic. Reducing fixed costs to enhance profitability can be achieved by applying risk-reward agreements and application of value based management principles to enhance the understanding amongst all employees of the value drivers of the Synfuels business model. A reduction in the size of Synfuels to facilitate easier change management and a stronger focus on delivering the same business results through the employment of fewer resources is also recommended. Barriers to achieving operations excellence identified are a lack of management consensus and underestimation of the task required to internalise the change management process. Neglecting the basics in achieving the fundamental manufacturing output elements and resistance to daily discipline are identified as the main focus areas. It is further recommended to establish a culture of discipline where employees are allowed to function effectively within the proposed framework of disciplined people, thought and action in combination with freedom to innovate and achieve growth in the business through constant adaptation as this is fundamental to enhancing the current performance of Synfuels.

AFRIKAANSE OPSOMMING: Die transformasie van Sasol Synfuels om die algehele besigheidsprestasie en realisering van organiese groei te weeg te bring is geevalueer. Die raamwerk vir die evaluasie is gebaseer op idees uitgespreek deur Collins (2001) en aangevul met ander idees soos gevind in literatuur relevant tot besigheidsprestasie verbetering in vervaardigingsorganisasies. Gapings en geleenthede is geidentifiseer om organiese groei teweeg te bring binne die konteks van drie van die Synfuels strategiese oogmerke van bedryfsuitnemendheid, wereld-klas mense en die benutting van tegnologie. Areas wat geidentifiseer is wat tot 'n verbetenng in die prestasie van Synfuels kan lei is die verdere ontwikkeling van transformasionele leierskap, vermindering in die vaste koste om meer buigsaamheid te verleen en om die organisasie se grootte te verminder. Die ontwikkeling van transformasionele leierskap moet uitgebrei word om professionele doelgerigtheid sterker te ontwikkel wat sal lei tot die skep van 'n sterk kultuur van werks-en prestasie-etiek, spesifiek gerig op drie gedragsaspekte om fanaties te dryf vir resulate, toegewyde harde werk en vasberadenheid, asook deursettingsvermoë. Verskillende wyses waarop vaste koste verminder kan word deur die toepassing van risiko-vergoeding beginsels en die toepassing van waarde gebaseerde bestuurstegnieke om die begrip van die ekonomiese beginsels van Synfuels se besigheid by alle werknemers te bevorder. Verder word ook voorgestel dat na maniere gekyk word om die grootte van Synfuels te verminder om makliker veranderingsbestuur en 'n meer doeltreffende fokus te plaas daarop om dieselfde besigheidsresultate met minder hulpbronne te behaal. Hindernisse in die bereiking van bedryfsuitnemendheid wat geidentifiseer is, is 'n potensiele gebrek aan konsensus by bestuur in terme van wat bereik moet word terwyl die taak van veranderingsbestuur onderskat word. Nalaat om aandag aan die basiese aspekte om vervaardigingsuitsette te behaal en weerstand teen daaglikse dissipline is ook aspekte waaraan aandag geskenk moet word. Dit word ook aanbeveel om 'n kultuur van dissipline te skep waarbinne werknemers toegelaat word om effektief te funksioneer binne die voorgestelde raamwerk van gedissiplineerde mense, denke en aksie in kombinasie met innoverende denke en deurlopende verbeteringsprosesse groei teweeg gebring deur deurlopend aan te pas aangesien dit fundamenteel is om die prestasie van Synfuels te verbeter.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/50338
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