Action Based Leadership in Global Energy Sector

1. Action Based Leadership in Global Energy Sector Jim Sheegog, BCD, MSW Founder & President, Rowhill Consulting Group

2. November, 2012-A Partnership begins with EQUATE Petrochemical • Our Niche- Rowhill at a Glance www.rowhill.org • Strategic Transformation & Change Consulting • Building Talent Pool Capacity to Drive Enterprise • Assessment for Development expertise • Emphasis on behavioral-based coaching- Post-epidemiologist- where is evidence of leadership? • Our brand is based on going to where leadership challenges exist beyond HQ • 16 years advising & developing operational managers in upstream exploration & production IOC’s & NOC’s, aerospace, advanced materials & technology companies

3. The Story begins- EQUATE Petrochemical Company • Kuwait-based Joint Venture formed in 1995 between multiple national stakeholders and Dow Chemical • Production of Petrochemicals in 1997 • $1.0 B annual turnover • Ranked #22 in global sales volume • Newly appointed CEO • Flat structure, with majority of senior managers part of start up in 1997 • In 2009, started actively developing management talent with world class resources • EQUATE Home Page

4. Leadership Intervention Roadmap

6. EQUATE Strategic Roadmap Our vision and strategy are geared towards five strategic imperatives revolving around Operational Excellence and Growth. We have existing talent and we target excellence. But the challenges ahead may demand new and different talent. Success = Maximize revenue, excel, and achieve a corporate expansion through M&A’s as strategy through talent and leaders who think global and act local where our talent will thrive and achieve a reputation with a brand of operational and business excellence worldwide. Vision Strategy Organization and Talent Management Process Leadership Development Process

7. Organization Challenges-2012 • Cultural Capabilities Survey reported unacceptable levels of staff empowerment, performance coaching, job promotion fairness, & upward decision-making • Senior Talent Pool primarily Executors, not Strategists • CEO Vision required “debottlenecking” internal barriers • Global competition heating up • Board not convinced Leadership Development investment was providing value to future organization

8. CEO & Executive Management Team • CEO Vision 2020 • Asked EMT to partner with Rowhill in defining Leadership Actions that mattered to future- corporate metrics, behaviors, values • Asked EMT to actively sponsor individual managers and teams • Fueling active involvement in Strategic Initiatives • HR asked to make ABL central assessment in talent review • Employee perspectives mattered (culture survey data for managers tied to incentives) • Measurement- Pre/Post/Transfer/ Company-wide metrics

10. Competency Model Competency Groups Cultural Capabilities* Core Technical Competencies* Leadership Code** * Applicable for all employees * * Applicable for People leaders only

11. Leadership Code • Demonstrating Learning Agility • Practicing Clear Thinking • Knowing Yourself Invest in Yourself Personal proficiency is the ultimate rule of leadership, and it starts by knowing yourself, who you are becomes a key predictor of what you can help to become. Personal proficiency comes from knowing your predispositions, strengths, and weaknesses. It is about extracting important lessons from your life experiences and applying them with care, discernment, energy, courage, and humanity. It requires equal measures of self-awareness and self-discipline- a certain quality of mindfulness in going about the interviewed businesses of life and work. It requires having the courage to be bold and take risks while still having the humanity to learn from and share credit with others.

12. Leadership Code-Proficiency Levels for ABL Strategist

13. The Pilot- Design Highlights • Rowhill Partnered with EMT and L&E to Create the First Action-Based Leadership Pilot • 18 Nominations of top tier talent in pipeline to participate in pilot • 3 Strategic Projects chosen from existing CEO Vision and 5 Pillar Strategy to debottleneck EQUATE (HRO, Culture Capabilities, PE Business Team) • Emphasis on reinforcing Leadership behaviors that matter to culture • Assessment tools were designed to measure Pre/post/Transfer changes for individual and organization. Measurement is built around Individual KPI’s and strategic company metrics (Jack Welsh- Measure results and how results are achieved in sustainable manner) • Observation, measurement, and reinforcement of individuals, teams, cross-strategic team activities

14. Defining Action Based Learning • Action Based Leadership builds on coaching and is … • Applying learning that benefits EQUATE • Discovering behaviors that attract followership • Anticipating future of business & building readiness to act • Driving accountability for enterprise results • Coaching is: • Inquiry Driven and Driven through powerful questions • Focused on Individual Development • Encompasses major stakeholders • Includes organization context • Focused on mid to long term Actions

15. Building What Benefits an Organization Enhanced Approach Content Process Context Typical Flow

16. 3 Dimensions of Leadership Strategic Skills Behavioral Skills Task Skills

17. 3 Dimensions of LeadershipIdeal Career Path Inside the leadership box Strategic Skills Behavioral Skills Task Skills

18. 3 Dimensions of LeadershipThe Leadership Story that Aligns Effective Action Strategic Skills Why we make these changes Behavioral Skills How we communicate and coach these changes Business Culture Accomplishment Task Skills What we change and how

20. Measuring Leaders & Organization Results Sprit of ABL Video

21. Part 1: Overview • What is connection to company goals? • How does this help me achieve my departmental goals? • Why is this important? • How will we do it? • Who are external partners? • Will we debunk organization myths? • SOAR model vs. SWOT • Part 1: ABL Overview

22. Part 2: On-Boarding Pilot Participants eLearning Orientation- Internal Branding of ABL • Is this a meaningful addition to my daily work? • Does ABL impact my career future? • Is the Enterprise really committed?

23. Part 3: Planning New Culture Post/Transfer/ Implementation Measures Strategic Business Behaviors Peer Coaching Assignments Cultural Capabilities-Pulse Surveys eLearning Orientation eLearning Orientation- Internal Branding of ABL

24. Part 4: Reinforcing Behaviors Part 4. Reinforcing Behaviors

25. Rowhill Team Roles

26. CEO & EMT as Architects of ABL Strategic Initiatives Developing Strategists

27. Part 4: Reinforcing Behaviors

28. Part 5: Implementing Culture Part 5. Implementing Culture

29. Assessment • Planning • EQUATE Strategic Initiatives • Strategic Organization Design • Strategic & Annual Workforce Planning • Succession Planning • Cultural Capability Survey • Organization • Department • Competency Assessments • Leadership Assessment • Technical Assessment • Behavioral Assessment • Employee Performance Appraisals • Measurement and • Reporting Optimization Development • Induction & Integration • On-the-job Development • Job-specific training • Role Rotation / Role Enlargement • Performance-based Development • Competency Development (Gap closure) • High-potential Development • Technical Mentoring / Technology Expert • Future Leader Development • Leadership Development • Executive Coaching • The EQUATE Culture and Brand • Engagement Initiatives • Development Opportunities • Competitive salaries and incentives • Attractive Benefits Package • Reward and Recognition System Part 5: Implementing Culture Sustaining Enterprise Actions- Active Human Capital Planning Cycle

30. Part 5: Implementing Culture- Integrating ABL & Talent Reviewer Development Plan to Reality Plan Filters Leader Development Plan Internal Assessment Leaders Knowledge and Skills Building External Assessment Competency Application Executive Presence People or Technical Leader? Corporate Social Responsibility Mentoring / Coaching Leadership Group Assignment No Further Development Required

31. Part 5. Implementing Culture: Measurement Stages for Cohort 1 (August 2013) Pre Assessment – Reviews current capabilities against the behavior standards (October 2013)- Mid-Term Assessment of current capabilities against the behavior standards (December 2013) Post Test – measurement of acquisition of standards/skills (May 2014) Transfer – measurement of application of standards/skills (December, 2014) Metric Result – measurement of the influence the applied behavior changes made on organizational metrics Pre/Mid-Term/Post/Transfer – shows acquisition and application of behaviors Metric – shows collective performance outcomes

33. Individual Pre/Post Test

34. Part 1: OverviewObjectives with Behavioral Standards

35. Part 6: Organizational Effectiveness • Is management part of the problem? • Are we creating bottlenecks that impact the company future? • How do we overcome cultural barriers that punish leaders doing exactly what we ask them to do? • Examples- Sustaining departmental silos at cost of enterprise • Rewarding only short-term thinking • Not defining how operational leaders take decisions up the organization to address dilemmas (wicked issues or dilemmas) • Part 6: Organizational Effectiveness

36. Part 6: Organizational Effectiveness

37. Lessons Learned We must unlearn (STOP) before we can see our future Spirit of ABL Video

38. Thank You for Attending! For further information contact: Jim Sheegog +1 (919) 302-3421 Email- jsheegog@Rowhill.org