By: Terence Creamer
26th October 2007
So in the context of a skills-stretched economy, it is little wonder that the group is playing a leading role in efforts to deal with a challenge that has the potential to undermine both its growth prospects, as well as those of the country as a whole.
But one outward sign of the group's seriousness about the skills challenge is the fact that even its proposed R18-billion black economic-empowerment (BEE) deal, which was unveiled on September 10, has sought to embed education and training into the fabric of the transaction.
Apart from selling a 3% stake in the company to black citizens, 1,5% to selected BEE groupings and 4% to Sasol employees, the country's largest BEE transaction to date also sets aside 1,5% for the so-called 'Sasol Foundation' ' a vehicle being established to support education and training initiatives, particularly in the areas of science and technology.
Details still have to be finalised, but the foundation is likely to engage in projects that will benefit historically disadvantaged communities throughout the country, but more specifically communities close to Sasol's operations in Sasolburg and Secunda.
Executive director Nolitha Fakude, who has overall responsibility for group human resources, corporate affairs and BEE, tells Engineering News that the foundation is part of what Sasol perceives as being a 'sustainable response' to the skills challenge.
'We have to respond to our immediate challenges, but we also want to help in dealing with gaps in the entire education value chain, which starts with the schooling system,' Fakude explains, stressing, in particular, the need to address inadequacies in maths and science education.
'For this reason, we are not only increasing our budget for bursaries to bring more graduates into the business, or accelerating artisan training, but also working with others, including the Department of Education, on a more holistic approach to the problem.'
Her remarks come as a new report, entitled 'Doubling for Growth: Address- ing the maths and science challenge in South Africa's schools', which has been compiled by the Centre for Development and Enterprise, shows that the domestic schooling system continues to produce far fewer passes in maths and science (particularly at higher grade) than the country's growing economy requires.
SCARCE-SKILLS REPOSITORY
But while Fakude is deeply concerned about the current 'flaws' in the education and training system, Fakude believes the 'virtuous circle' being created by economic growth is offering a unique opportunity to grasp the nettle.She even believes that, if upscaled appropriately and in a way that bolsters and safeguards quality, the initiatives currently emerging could reposition the country as a 'repository for scarce skills', which could, ultimately, even be exported abroad.
'In the short term, the skills shortage is a real threat. But if a longer-term perspective is taken ' not only by Sasol, but by business and government as a whole ' there is no reason why the attention currently being given to the development of more technically qualified people could not result in South Africa actually building a talent pool that could, in future, be drawn upon by others as is currently the case with a country such as Thailand, whose skills we lean on from time to time,' Fakude avers.
For this reason, she is a strong supporter of the current cooperative response being pursuer under the aegis of the public'private partnership known as the Joint Initia- tive for Priority Skills Acquisition, or Jipsa.
In fact, Sasol CE Pat Davies sits on the Jipsa task team, chaired by Deputy President Phumzile Mlambo-Ngucka, which advises on how the training and skills development efforts of the public and private sectors could be aligned to the needs of the economy and South Africa's aspiration to raise its growth rates to 6% a year by 2010.
In fact, the corporation has set aside some R140-million to support efforts to qualify 830 artisans, such as welders and instrumentation mechanics, for its own needs and those of the broader economy over the next three years. The first intake of trainees has entered the system and is linked with other efforts being pursued by the Chemical Industries Education and Training Authority, or Chieta.
The company is also seriously considering the creation of a 'Sasol Academy' to overcome some of the current physical constraints in the training environment.
To accelerate the entry of graduates into the company, Sasol's bursary budget has also been enlarged from R26-million to R36-million and has been extended to students entering their second and third years of study.
Previously, only first-year students were offered bursaries, but Fakude explains that the decision to open the scheme to those already in tertiary institutions should help fast-track the entry of graduates into the company.
POOLING CREATES VISIBILITY
The other key short-term mitigation strategy involves a far more integrated approach to talent management, which seeks to place the needs of the group as a whole at the heart of the human-resources operational ethos.This philosophy of the 'whole being greater than the sum of the parts' is currently also guiding all other strategic and operational decisions at Sasol and is the outcome of the company's so-called 'Project DNA' ' an intervention modelled on best corporate practices globally.
The upshot has been the reorganisation of the group into three distinct business clusters, namely the South African energy cluster, which is currently the dominant entity in the group, the global chemicals cluster, and the international energy cluster.
From a human-resources perspective, this clustering has effectively enlarged the talent pool and enables executives, managers and workers to be managed from the centre where there is greater visibility of group drivers.
It is also aligned with an ambitious recruitment programme currently under way to increase the staff complement at Sasol Technology by 25%, or 400 people, ahead of a major project push, which is likely to involve capital expenditure of some R65-billion over the next three years.
In fact, a new division, referred to as Global Venture Support, has been established to house the new recruits and facilitate their induction.
At this stage, it means that, prior to their deployment to specific projects, these individuals are being placed into operating facilities in a bid to expose them to both Sasol's corporate culture and some of its unique technologies.
For instance, there are currently about 200 Nigerian nationals that have been placed within the South African synfuels business in an effort to pass on vital Fischer-Tropsch experience, while the Escravos gas-to-liquids project is being built in Nigeria.
'SASOL WAY' EVOLVES
Fakude tells Engineering News that, put together, the planned domestic expansion (across all the clusters) and prospects for a possible rapid internationalisation of the group are generating renewed urgency for the development of a coherent strategic response from a human-resources perspective.A significant amount of effort is, thus, being given both to fully defining a so-called 'Sasol Way', and to embedding its main values, as well as the group's unique operational and cultural elements, into the hard and soft structures and disciplines of the company.
She reports that three 'golden threads' have emerged strongly including a drive for continuous improvement at all levels, from plant operation to advancing career paths; an emphasis on accountability; and a desire 'to make a difference'.
'These elements, and perhaps others, are being incorporated into everything we do, and we believe it will enhance our value proposition as we move into new territories,' Fakude explains.
But another key theme for Fakude is that of transformation and employment equity, which she claims to be gaining traction.
Just two years ago, the company was heavily criticised for its perceived slow pace of transformation, with all its executives, at the time, being white and male.
Today three of the four executive directors are black South Africans in the form of CFO Christine Ramon, South African energy cluster head Benny Mokaba, and Fakude herself, with Davies making up the full executive complement.
Fakude adds that 48% of all managers are now black, up from 43% two years ago, and that she is confident that the company will meet the 52% employment-equity target set for 2008.
'I am confident that we are making real progress, but that does not mean we can relax. In fact, we have identified some areas in need of serious attention and are putting in place strategies to address some of the gaps,' she concludes.
Edited by: Creamer Media Reporter





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