NuStar s Approach to Sustainable Culture through Servant Leadership

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1 NuStar s Approach to Sustainable Culture through Servant Leadership

2 NuStar Energy - Corporate Overview One of the largest independent petroleum pipeline and terminal operators in the United States 9000 miles of pipeline 82 terminal and storage facilities 7 Regions - 2 International, 5 Domestic 95 million barrels of storage capacity 1700 employees Operations in United States, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, and the United Kingdom

3 NuStar Energy Culture No. 37 on Fortune s 100 Best Companies to Work For list No. 32 on Fortune s 100 Best Workplaces for Millennials No. 9 on Fortune s 50 Best Workplaces for Giving Back No. 11 on Fortune s 30 Best Workplaces to Retire From 27 VPP STAR Sites 100% United Way Participation Chairman of the Board Bill Greehey sets tone that employees are No. 1 Asset Take care of employees and they will take care of the business, customers, environment and communities

4 NuStar Leadership Model CEO, Brad Barron visits sites on a routine basis and participates in every VPP Star Site Celebration CEO visibly supports the VPP process and creates opportunities to talk to employees at all levels and get their feedback CEO sets clear expectations that Executive Leadership will be visible in the field and both develop and understand culture Executive Leadership visits sites on routine basis and conducts employee roundtables and site tours Regional Management creates cultural expectations and is responsible for ensuring consistency trust but verify Site Management understands culture and engages and empowers employees through leadership, ownership and feedback

5 Defining Leadership John Maxwell notes: Leadership is influence. Nothing more and nothing less. Just because someone has a title, doesn t mean that person is a leader People don t care how much you know until they know how much you care Leadership shapes culture Culture shapes beliefs and behaviors Beliefs and behaviors shape actions Today s organizations are diverse and complex and require strong servant leadership to drive positive cultural change Leaders must engage employees to own the processes

6 Maxwell s Five Levels of Leadership Level One Position People follow you because of your title (they have to) Level Two Permission People follow you because of who you are and they begin to give you permission to lead them Level Three Production People follow you because of what you have done for them and the organization Level Four People Development People become lifelong loyal followers because of your mentorship Level Five Pinnacle People follow you because of your legacy (who you are and what you represent)

7 It Starts with Leadership Leaders must: Be visible and approachable go to those they lead and inspire and engage them Exhibit integrity and personal accountability Be committed to development of self and employees Delegate and transfer ownership to employees Empower employees to own the processes Create an atmosphere of trust and credibility Create an atmosphere absent of fear of reprisal Be consistent words and actions are aligned Humility vs. Ego place others above self Cast and communicate the vision

8 Benefits of Servant Leadership Employee empowerment and ownership Trust and credibility Cultural alignment Improved teamwork and productivity Development of future leaders Consistent actions Predictable outcomes Reduced frequency of incidents

9 Applications of Servant Leadership Empowerment and Ownership Developing emerging leaders Delegating responsibility and authority Recognizing achievements and success Trust and Credibility Ensure items are tracked to completion Management by Walking Around - MBWA One on one discussions with employees Cultural Alignment Recognizing and rewarding positive behaviors Employee roundtables/discussions Communicating the vision

10 Applications of Servant Leadership Improved Teamwork and Productivity Engaging employees or teams in problem solving Celebrating team successes Consistency and Predictable Outcomes Ensure processes and procedures are valued Ensure concerns are tracked to completion Understanding the impact of decisions Employee roundtables/discussions

11 Summary Servant Leadership provides the following benefits: Cultural evolution Increased trust and credibility Organizational alignment Improved communication Which results in: Interdependency about the team and not about me Employee ownership and accountability Improved productivity and business results Employee satisfaction Overall, it establishes the platform for a safer, more stable and reliable working environment which produces predictable outcomes.

12 Questions? Rob Hill West Region General Manager 9280 West Stockton Blvd, Suite 220 Elk Grove, California