STEPPING UP

LEADERSHIP AT MACDOW

www.mcconnelldowell.com

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Stepping Up Leadership at MacDow

CONTENTS
From the CEO Leadership for a new era Our blueprint for success Leadership pathways Setting up for success Developing leaders Putting it into practice Leadership behaviours 03 04 05 06 07 09 11 12

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FROM THE CEO

I am pleased to introduce you to McConnell Dowells new leadership framework outlined in this booklet. It comes at an important time for us. Our business and operating environment is changing and our roles are becoming more complex. Being equipped to navigate these changes is critical to our success going forward. Developing leaders has always been a priority at MacDow and we are proud to grow our own. This new framework helps us do this consistently across all leadership levels, all businesses and all geographies. No matter where you are within the MacDow group of companies or what role you play, you can look to this framework for guidance on what is expected of you, and what you can expect of your people. Please take time to read and apply the material in this booklet. For further information or questions, please refer to your Manager or HR Manager. I look forward to working with you to lead MacDow into the future. David Robinson CEO

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Stepping Up Leadership at MacDow

LEADERSHIP
FOR A NEW ERA

For some time, our business and operating environment has been changing. Economic conditions are tough and competition has increased. Projects are larger scale and clients more demanding. Our roles have increased in complexity. More than ever before, we have to manage and influence multiple stakeholders often with conflicting interests. Leading in this dynamic environment requires new capabilities of our leaders at every level. To capture our new requirements, we have developed a leadership framework outlining the capabilities, pathways and profiles of leaders for success at MacDow. This framework is a practical tool designed to guide behaviour and development and comprises: 3 The MacDow Wheel 3 Leadership Pathways Outlining the leadership capabilities for success Describing the different leadership levels at MacDow

3 Leadership Success Profiles Detailing the focus and mix of activities leaders undertake 3 Leadership Development Setting out our principles for developing leaders

WHO dOEs tHIs ApplY tO? This framework applies to everyone across all business units from newly appointed employees to seasoned senior leaders and executives.

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OUR BLUEPRINT
FOR SUCCESS
At MacDow, weve outlined the leadership capabilities required for success in the MacDow Wheel (see below). Grouped into four areas, the capabilities describe the leaders we value. They are aligned to the MacDow values and bring them to life. No one capability is more or less important than any other. A leader is not successful if they deliver on one capability but sacrifice another. Experience shows that truly successful leaders who achieve outcomes do so through the effective use of all capabilities. To understand how the capabilities translate into practical activities for your leadership level, refer to the detailed Leadership Behaviours starting on page 12 of this booklet.

wE VAlUE lEAdErs wHO...

REsUlts lEAdErsHIp

Sets and upholds high standards of performance. Mobilises resources, overcomes barriers and has the conversations needed to execute to plan in accordance with financial, schedule and safety objectives. Demonstrates a deep understanding of customer needs and uses this to build influential customer relationships which deliver win-win, high value, safe outcomes.

Assembles A grade teams and sets them up for success. Collaborates and communicates across teams, business units and alliance partners to leverage interdependencies and create organisational value.

PEOplE lEAdErsHIp

Identifies talent and invests in our people to realise their potential through effective communication, coaching, mentoring and providing stretch opportunities for growth.

Champions the MacDow values through actions, behaviour and communication. Proactively challenges behaviours in others which arent aligned with our values. Actively learns through self reflection, seeks feedback and tries new things. Manages ambiguity and uses this to allow innovative solutions to emerge.

PErsONAl lEAdErsHIp

Takes a helicopter view and identifies meaningful patterns in the external environment which impact future success. Thinks critically, systemically and innovatively to enable better business decisions. Understands how business works, anticipating financial, legal, safety, environment, quality and contractual implications. Negotiates astute commercial outcomes & makes sound commercial decisions.

THOUGHt lEAdErsHIp

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Stepping Up Leadership at MacDow

LEADERSHIP PATHWAYS
AT MACDOW
At MacDow, we have a number of leadership roles each requiring a different focus, mix of activities and level of capability. To understand how the roles differ and what leaders need to pick up and let go as they transition to the next level, we have created Leadership Pathways. While not prescriptive, the pathways are a useful reference to check that you are operating at the appropriate level for your role. You can also use them to help plan your career and identify development opportunities.

Individual Contributor Focus Mix In the business, playing the game

Frontline Leader

Mid Tier Leader

Senior Leader

Executive Team Member On the business, shaping the game

Technical 90% People 10% Pick Ups 3 Applying your technical and functional capability 3 Doing the job yourself 3 Showing others

Technical 50% People 20% Management 20% Client 10% 3 Organising others 3 Planning and reporting 3 Looking at ways to improve 3 Managing costs / income of particular area

People 33% Management 33% Client 33% 3 Building and enabling teams 3 Managing bottom line 3 Bringing in client perspective 3 Working across teams and projects

People 30% Client 30% Management 20% Strategy 20% 3 Managing complexity across portfolios 3 Leveraging organisational synergies 3 Developing long term client and partner relationships 3 Developing leaders 3 Active involvement in the operations 3 Project by project planning & solutions 3 Divisional competition 3 Short term expediency
Transition 4 New Executive Leader

People 30% Management 25% Strategy 25% Client 20% 3 Articulating vision, purpose, direction and culture 3 Establishing business wide strategies and priorities 3 Influencing the operating environment 3 Positioning business for the long term 3 Traditions of little future value 3 Let go of the pieces and focus on the whole

Let Gos

3 Doing the job yourself 3 Doing one thing at a time 3 Having favourites 3 Near enough is good enough
Transition 1 New Frontline Leader Transition 2 New Mid Tier Leader

3 Specific details, tasks & short term actions 3 Operating in own team only 3 Covering for teams shortcomings
Transition 3 New Senior Leader

Technical 3 Long term thinking 3 Strategic objectives People 3 Developing client and partner relationships Management

3 Technical or functional activities 3 Communication 3 Delegation 3 Engaging/Motivating 3 Team Building 3 Recruiting 3 Schedule & planning 3 Budget 3 Operational Risk

Strategy

Client

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FOR SUCCESS

SETTING UP
In our experience, people work best when they know what is expected of them. To ensure that leaders understand the unique requirements of their role, we have created a number of Leadership Success Profiles outlining the knowledge, experience, behaviours and personal attributes required for success. These profiles can be used to set expectations (of self or other) and can assist when recruiting new talent or identifying areas for development.

FrONtlINE LEAdEr
Critical Knowledge What knowledge is required for success in this role? 3 Working knowledge of company systems 3 Activity cost control 3 Work methods 3 Crew management 3 Relevant qualification Critical Behaviours refer to the Wheel* What behaviours are required for success in this role? 3 Build Teams 3 Develop People 3 Think Strategically 3 Operate Commercially 3 Adapt & Learn 3 Live the Values 3 Partner with Customers 3 Drive Performance
*Refer to the detailed Leadership Behaviours starting on page 12.

Critical Experiences What experiences are required for success in this role? 3 Proven experience on relevant projects 3 Capacity to manage required work function 3 Work crew leadership/looked after a small team 3 Planning 3 Conflict resolution 3 Handling difficult environments Personal Attributes What attitude/motivations are required for success in this role? 3 A will to succeed 3 A positive attitude 3 Personal and career ambition 3 Motivated to build a Crew/Team 3 Prepared to be accountable for results and outcomes

MId tIEr LEAdEr

Critical Knowledge What knowledge is required for success in this role? 3 Thorough knowledge of company systems 3 Section cost control 3 Functional outcomes 3 Workforce management 3 Relevant qualification Critical Experiences What experiences are required for success in this role? 3 Proven experience on relevant projects 3 Capacity to manage work function 3 Evidence of conflict resolution 3 Evidence of successful relationship building 3 Contract management 3 Performance management 3 Recruitment and selection of teams Personal Attributes What attitude/motivations are required for success in this role? 3 A will to develop self reliance, resilience, capacity and intellect 3 Personal and career ambition 3 Motivated to build a section/project team 3 Passionate about the power of successful teamwork 3 Prepared to be accountable for results and outcomes 3 Action and solution oriented

Critical Behaviours refer to the Wheel* What behaviours are required for success in this role? 3 Build Teams 3 Develop People 3 Think Strategically 3 Operate Commercially 3 Adapt & Learn 3 Live the Values 3 Partner with Customers 3 Drive Performance
*Refer to the detailed Leadership Behaviours starting on page 12.

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Stepping Up Leadership at MacDow

FOR SUCCESS
SENIOr LEAdEr
Critical Knowledge

SETTING UP
Critical Experiences What experiences are required for success in this role? 3 Proven experience on relevant projects 3 Evidence of successfully leading multiple groups 3 Evidence of successfully maintaining long term sustainable relationships 3 Managed project teams 3 Section/Function management 3 Delivered outcomes in ambiguous environments What knowledge is required for success in this role? 3 Industry leader in specialist skills and business models 3 Business Unit cost control 3 Business Unit team management 3 Strategic outlook for the Business Unit 3 Commercial management 3 Setting accountabilities 3 Relevant qualification Critical Behaviours refer to the Wheel* What behaviours are required for success in this role? 3 Build Teams 3 Develop People 3 Think Strategically 3 Operate Commercially 3 Adapt & Learn 3 Live the Values 3 Partner with Customers 3 Drive Performance
*Refer to the detailed Leadership Behaviours starting on page 12.

Personal Attributes What attitude/motivations are required for success in this role? 3 Personal and career ambition 3 Composure and resilience 3 Motivated to build teams across Business Unit 3 Motivated to deliver profitable outcomes 3 Client and market oriented mindset 3 Passionate about harnessing the power of teams to drive success 3 Comfort with ambiguity

EXECUtIVE
Critical Knowledge What knowledge is required for success in this role? 3 Corporate cost control 3 Corporate strategy 3 Executive team management 3 Commercial management 3 Strategic outlook for the organisation 3 Promotion of industry skills development Critical Behaviours refer to the Wheel* What behaviours are required for success in this role? 3 Build Teams 3 Develop People 3 Think Strategically 3 Operate Commercially 3 Adapt & Learn 3 Live the Values 3 Partner with Customers 3 Drive Performance
*Refer to the detailed Leadership Behaviours starting on page 12.

Critical Experiences What experiences are required for success in this role? 3 Proven experience on relevant projects 3 Proven ability to lead and manage a business unit 3 Driven and led teams 3 Demonstrated evidence of business improvements 3 Evidence of driving high performance throughout the business

Personal Attributes What attitude/motivations are required for success in this role? 3 A desire to shape the business and leave a legacy 3 Genuine intent to foster success in others 3 Strong external, market and client orientation 3 Composure and presence 3 Role model for leadership 3 Significant comfort with ambiguity

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DEVELOPING
LEADERS
Developing leaders is a priority at MacDow. We are passionate about growing our own. We are committed to improving the quality of leaders at all levels across MacDow today while building their capability for tomorrow. We know that quality development happens through a partnership between an employee and their employer. MACDOw wIll sUppOrt YOU BY: 3 Aligning leadership programs to the MacDow leadership capabilities 3 Targeting mentoring and support for leaders moving from one layer of leadership to the next 3 Selecting the right people to participate in leadership programs 3 Ensuring leaders actively support the development of other WHAt YOU CAN dO There are a number of things you can do to develop yourself as a leader such as: 3 Building your capabilities according to the MacDow Wheel 3 Being mentored and supported along the way 3 Learning from the real challenges in your job on a day by day basis 3 Realising that it takes time to learn, practice and embed new skills and ways of working 3 Taking accountability for your own development leaders 3 Demonstrating executive commitment to leadership development 3 Measuring and monitoring the effectiveness of our investment in leadership development 3 Realising that leadership development is a long term investment

WANt tO KNOw mOrE? For further information on the leadership development opportunities available at MacDow, visit the MacDow intranet.

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Stepping Up Leadership at MacDow

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PRACTICE
The leadership framework is designed to be a practical tool to guide behaviour and development. Some ways you can consider using it: FOr CUrrENt lEAdErs 1) Understand what is expected of you as a MacDow leader 2) Think through the behaviours and activities for your leadership level and identify any changes you could make 3) Have a conversation about what you expect of the leaders within your team 4) Incorporate this framework into your performance and development conversations 5) Identify any gaps and areas for development (for yourself or team) and make a plan to work on them 6) Use the success profiles to help you recruit talent 7) Get feedback from your own leader FOr AspIrING lEAdErs 1) Talk to your leader about the framework and what it will take for you to reach a leadership position 2) Identify any gaps and areas for development and make a plan to work on them 3) Have a conversation with your team members and peers about leadership FOr EVErYONE Even if youre not in an official leadership role, we can all demonstrate leadership. Some actions you can take: 1) Understand what is expected of leaders at MacDow and align your behaviours accordingly 2) Identify any gaps and areas for development and make a plan to work on them

PUTTING IT INTO

HAVE YOUr sAY wANt tO KNOw mOrE? For further information on this leadership framework and how it applies to your role, please contact your Manager or HR Manager. You can also visit the MacDow intranet for frequently asked questions and more. We welcome your feedback on this leadership framework and how it will be beneficial for you. Email your comments to:

leadership@macdow.com.au

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Stepping Up Leadership at MacDow

LEADERSHIP

BEHAVIOURS
Mid Tier Leader Explains what needs to be done in the context of overall project objectives Maximises effectiveness by selecting and deploying a high performing team Identifies interdependencies within and between projects and connects people through collaboration Senior Leader Translates organisational strategy into long term plans and objectives for the Business Unit Builds diverse teams that capitalise on individual expertise, capabilites, styles and backgrounds Creates collaborative relationships across business units and alliance partners to create value Executive Team Member Communicates a compelling strategic direction and future for the organisation Builds a team based culture across the organisation

To ensure youre clear on the specific behaviours required for your leadership level, we have created detailed Leadership Behaviours for each capability in the MacDow Wheel (refer page 5). Please note that the titles in the tables below (eg. Frontline Leader, Mid Tier Leader) refer to leadership levels not specific job titles (although some are the same). If you are having difficulty identifying the appropriate leadership level for your job, please talk to your Manager or HR Manager. BUIlds TEAms Assembles A grade teams and sets them up for success. Collaborates and communicates across teams, business units and alliance partners to leverage interdependencies and create organisational value.
Frontline Leader Explains what needs to be done and provides necessary information and support Appropriately matches the right personal skills, experience and competencies to tasks Shares information within and across related teams

Breaks down organisational silos to drive success

DEVElOps PEOplE Identifies talent and invests in our people to realise their potential through effective communication, coaching, mentoring and providing stretch opportunities for growth.
Frontline Leader Accurately identifies strengths and development needs of direct reports Demonstrates support and commitment to others learning Mid Tier Leader Has a clear understanding of the mix of skills, capabilities & styles needed in the team Makes self available to provide regular and constructive one-onone feedback to support others development Delegates effectively as a method for developing talent Senior Leader Understands the capabilities required by the business unit / project to deliver on its objectives Proactively mentors key talent and future leaders to support their longer term development Opens doors for talent, facilitating opportunities to support their development Ensures successors are developed for own role and other key roles in the business unit / project Executive Team Member Understands the capabilities required by the organisation to deliver on the long term strategy and objectives Champions development within the organisation, visibly supporting learning initiatives Fosters cross-organisation, external and alliance opportunities which support development of key talent Stewards organisational talent processes to ensure supply of appropriately skilled leaders and critical resources for business success

Actively mentors others by transferring own knowledge and skills Ensures successors are developed for own role

Ensures successors are developed for own role and for other key roles in the team/ project

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THINK StrAtEGICAllY Takes a helicopter view and identifies meaningful patterns in the external environment which impact future success. Thinks critically, systemically and innovatively to enable better business decisions.
Frontline Leader Asks probing questions to understand the root cause of issues Plan ahead to respond to the next 12 months' business challenges Draws information from a range of sources to make better decisions Responds positively to new ideas and approaches Mid Tier Leader Uncovers patterns across the project to identify systemic changes required Plans ahead and foresees business challenges up to 2 years ahead Uses a range of different sources to benchmark project performance and stay up to date with current best practice Identifies and advocates new and better ways of doing things Senior Leader Scans a broad range of information and quickly identifies critical areas of material impact Creates strategy and plans to position the Business Unit for success up to 5 years ahead Builds a deep understanding of external factors affecting the industry, clients and suppliers Creates step change through innovation Executive Team Member Integrates information from disparate sources to build new understanding for the organisation Creates strategy and plans to position the organisation for success up to 10 years ahead Continually scans a broad range of information from around the world to identify new opportunities and potential risks Creates an organisational environment which fosters innovation

OpErAtE COmmErCIAllY Understands how business works, anticipating financial, legal, safety, environment, quality and contractual implications. Negotiates astute commercial outcomes and makes sound commercial decisions.
Frontline Leader Tracks and monitors performance against budget and schedule Mid Tier Leader Demonstrates a sound understanding of drivers of cost and profit across the project and manages profitability at project level Understands what is commercially achievable and makes sound business decisions. Can effectively balance commercial and non-commercial factors in negotiation Gathers appropriate information to build robust budgets, cost estimates and forecasts across the project, creating and maintaining project cashflows Senior Leader Manages profitability of business units, demonstrating a deep understanding of how the business works, and the business drivers of cost and profit Understands and navigates complex commercial structures to deliver value to the business Negotiates comfortably in complex scenarios to deliver short-medium term value Builds robust budgets and cost estimates across entire programs of work Executive Team Member Manages profitability of the whole business, anticipating the impact of external forces, including market fluctuations and global business changes and challenges Is recognised as a role model for commercial leadership within the organisation Negotiates comfortably in complex scenarios to deliver long term value Establishes effective practices for financial management across the organisation

Understands legal and commercial frameworks required in own area of responsibility Is confident negotiating outcomes in own area of responsibility Can build cost estimates for their area of responsibility

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Stepping Up Leadership at MacDow

LEADERSHIP

BEHAVIOURS
Mid Tier Leader Actively seeks feedback in order to develop and improve self Senior Leader Deliberately places self in situations which will generate rich feedback and self insight Champions change and actively invites opposing points of view Demonstrates flexibility in leadership style to enhance effectiveness Can hold the tension in ambiguity to allow innovative solutions to emerge Executive Team Member Is a role model for the process of seeking feedback, developing self-insight and modifying approach accordingly Fosters an environment of continuous learning and 'Fair Blame' Demonstrates leadership presence which instils confidence in others Proactively manages ambiguity to generate opportunity for the organisation Proactively seeks opportunities to try out new approaches and behaviours Observes personal impact in interactions and adapts behaviour appropriately Adapts well to change and displays a positive outlook when faced with ambiguity

AdApt & LEArN Actively learns through self-reflection, seeks feedback and tries new things. Manages ambiguity and uses this to allow innovative solutions to emerge.
Frontline Leader Listens to, and responds to feedback effectively

Is open to learning new things

Keeps emotions and moods in check to ensure they do not interfere with relationships or decision making. Perseveres to achieve goals, even in the face of obstacles

LIVE tHE VAlUEs Champions the MacDow values through actions, behaviour and communication. Proactively challenges behaviours in others which arent aligned with our values.
Frontline Leader Actively demonstrates behaviours aligned to the MacDow values Mid Tier Leader Speaks up to ensure that others behave in accordance with the MacDow values even when it is difficult to do so Demonstrates the MacDow values even when under situations of pressure or difficulty Proactively addresses situations which may result in behaviour that is contrary to the MacDow values Senior Leader Challenges the behaviour of others, including senior colleagues, to ensure alignment to values Seeks new ways to embed the MacDow values in the business Executive Team Member Inspires external market confidence through consistent role modelling of the values Uses every opportunity to reinforce the MacDow values in order to build organisational alignment Creates a culture where the MacDow values are consistently 'lived' across the organisation

Comfortably communicates and reinforces the MacDow values with others Proactively responds to situations inconsistent with the MacDow values (e.g. see something, say something, do something.)

Creates a culture where the MacDow values are consistently 'lived' within the business unit

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PArtNEr wItH CUstOmErs Demonstrates a deep understanding of customer needs and uses this to build influential customer relationships which deliver win-win, high value, safe outcomes.
Frontline Leader Responds effectively to customer needs Mid Tier Leader Proactively explores innovative approaches to add value to the customer relationship Follows up with customers to ensure requirements are met Develops and maintains productive working relationships with a network of key customers Effectively explores alternatives with customers to reach win-win outcomes for the project Senior Leader Initiates and manages multiple contacts into the customers organisation to create impact beyond individual projects Takes steps to systematically measure and improve customer satisfaction in the Business Unit Acts as a trusted advisor or confidant to key customers Leads negotiations that deliver win-win, high value and safe outcomes Executive Team Member Partners with customers to create new value delivery models which shape the industry dynamics Sets and upholds standards of customer service across the organisation Influences customers through contribution to their internal strategy discussions Leads and fosters a culture of win-win relationships with customers that add strategic business value

Seeks and acts on feedback from customers Builds productive working relationships with immediate customers Recognises customer needs and balances these with business needs when negotiating outcomes

DrIVE PErfOrmANCE Sets and upholds high standards of performance. Mobilises resources, overcomes barriers and has the conversations needed to execute to plan in accordance with financial, schedule and safety objectives.
Frontline Leader Sets clear and challenging goals for direct reports Identifies and implements improvements to local processes and practices Regularly reviews performance and provides constructive feedback Recognises and rewards individual and team performance Mid Tier Leader Sets clear and challenging objectives and goals for the project/team Puts in place system-wide practice changes to overcome barriers and deliver performance Has the difficult conversations needed to re-direct performance of individuals and teams Recognises and rewards project team performance Senior Leader Sets clear and challenging objectives and goals for the business unit Creates a performance driven culture across the business unit or project Creates significant turnaround in performance in business units or projects Recognises and rewards Business Unit performance Executive Team Member Sets clear and challenging strategic objectives and goals for the organisation Creates a performance driven culture across the organisation Makes difficult decisions where required to re-align business units, service lines and strategies to deliver value to shareholders Creates an organisational culture which celebrates success and learns from failure

LEADERSHIP

AT MACDOW

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