Steve Skarke Executive Vice President Kaneka North America. Lloyd s Register Energy Conference October 18, 2012

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1 Steve Skarke Executive Vice President Kaneka North America Lloyd s Register Energy Conference October 18, 2012

2

3 Kaneka North America LLC Pasadena, Texas

4 Located in Bayport Industrial District 200 Acres 100 Acres Developed 345 Employees 70+ Full-time Contractors Modifier Plant Apical Plant CPVC Plant MS Polymers Plant Nutrients Plant

5 Steve Skarke BSChE, Texas A&M University MSIE, University of Houston 28 years in chemical manufacturing Union Carbide (8 yrs) Kaneka (20 yrs) Site Manager since Leadership Challenge Certified Master Facilitator (In training) Recovering Engineer Leadership Evangelist

6 Management or Leadership? Things Processes Systems Strategy Procedures Policies Training People Relationships Behaviors Development Compliance vs. Commitment

7

8 What Kind of Leader Should You Be?

9

10 Leadership Fundamentals Leadership is everyone s business. Leadership is a relationship. Leadership development is self development. The best leaders are the best learners. Leadership development is not an event it s an ongoing process. It takes practice, deliberate practice, to become a better leader. Leadership is an aspiration and a choice.

11 1 st Law of Leadership If you don t believe in the messenger, you won t believe the message 2 nd Law of Leadership Do What You Say You Will Do

12 Admired Leader 16% Ambitious 35% Broad-minded 22% Caring 68% Competent 25% Cooperative 25% Courageous 34% Dependable 25% Determined 39% Fair-minded 71% Forward-looking 89% Honest 17% Imaginative 4% Independent 69% Inspiring 48% Intelligent 18% Loyal 15% Mature 10% Self-controlled 36% Straightforward 35% Supportive

13 Source Credibility A person is considered believable when they possess the following three characteristics: Trustworthiness Expertise Dynamism Honest Competent Inspiring Credibility is the foundation of leadership.

14 The Results of High Management Credibility: Be proud to say they re part of organization. Feel strong sense of team spirit. See personal values as consistent with organization. Feel attached and committed to the organization. Have sense of ownership of organization.

15 The Results of Low Management Credibility: Produce only if watched carefully. Be motivated primarily by money. Say good things about organization, but criticize it privately. Consider looking for another job in tough times. Feel unsupported and unappreciated.

16

17 Practice #1 Model the Way Commitments: FIND YOUR VOICE by clarifying your personal values SET THE EXAMPLE by aligning actions with shared values

18 KANEKA CORE VALUES March % 10% 20% 30% 40% 50% 60% 70% 80% Safety Continuous Improvement Honesty Teamwork Family Customer Satisfaction Communication Trust Integrity Accountability Quality Respect

19 Our Core Values Align actions with shared values

20 Practice #2 Inspire A Shared Vision Commitments: ENVISION THE FUTURE by imagining exciting and ennobling possibilities ENLIST OTHERS in a common vision by appealing to shared aspirations

21 What is a Vision? A vision is an IDEAL and UNIQUE IMAGE of the FUTURE for the COMMON GOOD..

22 Inspire a Shared Vision

23 Safety Mission Statement

24 Practice #3 Challenge the Process Commitments: SEARCH FOR OPPORTUNITIES by seeking innovative ways to change, grow and improve. EXPERIMENT AND TAKE RISKS by constantly generating small wins and learning from mistakes

25 Practice #3 Challenge the Process Look for new ideas outside the boundaries of the organization. Use investigations to uncover new ideas. Take incremental steps in applying new and innovative solutions. Create a climate in which people are willing to take risks and learn from mistakes. Be sure to follow your MOC process

26 Site Safety Statistics Severity Triangle January September 2012 Loss of Primary Containment 15 An unplanned or uncontrolled release of material from primary containment Severity High TOTAL # OF EMPLOYEE FIRST AIDS 9 TOTAL # OF CONTRACTOR FIRST AIDS First Aids are minor treatment cases that are pre-defined by OSHA and are NOT considered Medical Treatment. 3 Unplanned Combustion Events 2 Fire with open flame or without, smoldering, charring Arcing. Low 17 0 Process Safety Incidents Personnel Safety Incidents TOTAL # OF EMPLOYEES RECORDABLES 0 TOTAL # OF CONTRACTOR RECORDABLES OSHA Recordable Injuries are cases that require Medical Treatment beyond the pre-defined OSHA First Aid List. 0

27 Practice #4 Enable Others to Act Commitments: FOSTER COLLABORATION by promoting cooperative goals and building trust STRENGTHEN OTHERS by sharing power and discretion

28 Enable Others to Act Every employee. is a safety professional, has a strong safety discipline, will not tolerate deviations, and has the authority and responsibility to stop work

29 Enable Others to Act Who is responsible for safety? I AM

30 Enable Others to Act Use Employee Involvement Teams: KESC (Kaneka Employee Safety Committee) KANEKA KARES (Employee Volunteers) KERA (Kaneka Employee Recreation Association) KERT (Kaneka Employee Recognition Team)

31 Enable Others to Act Work on teambuilding activities. Give up Position power to build Personal power. Build Commitment rather than Compliance. Provide resources & support for your team. Remove obstacles. Ensure that challenge is appropriate for the level of skill Move away from being in control to giving over control to others.

32 Use Assessments to Learn About Yourself and Your Teammates Leadership Practices Inventory (LPI) Myers Briggs (E-I, S-I, T-F, J-P) DISC (Dominance, Influence, Conscientiousness, Steadiness)

33 Practice #5 Encourage the Heart Commitments: RECOGNIZE CONTRIBUTIONS by showing appreciation for individual excellence CELEBRATE THE VALUES AND VICTORIES by creating a spirit of community.

34 Practice #5 Encourage the Heart Recognize efforts not just results. Tie recognition to values and shared goals. Include both individuals and teams. Don t be afraid to recognize someone for failing if the efforts were extraordinary. Find time for fun and fellowship.

35 Practice #5 Encourage the Heart

36 Practice #5 Encourage the Heart

37 Practice #5 Encourage the Heart The Seven Essentials of Recognition: 1. Set Clear Standards. 2. Expect the Best. 3. Pay Attention. 4. Personalize Recognition. 5. Tell the Story. 6. Celebrate Together. 7. Set the Example.

38 What will YOU put in YOUR Leadership Bucket?

39 Question?? If you asked your employees who was the most influential leader in their lives. What would be their answer?

40 Closing Thoughts You are the most important leader in your organization. Leadership is learned. Leaders make a difference. First lead yourself. Leadership is in the moment. Moral leadership calls us to higher purposes.

41

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