Our new operating model, and a simplified and consolidated legal structure, came into effect on 1 July 2014. The new operating model aligns the components of Sasol according to a single value chain, focused on the production of liquid fuels, high-value chemicals and low-carbon electricity. We continue to improve our coal-to-liquids process to ensure safe, reliable and efficient operations with lower environmental impact.
Understanding our operating model structure
To bring greater focus and simplicity to our organisation, it was necessary for us to streamline our corporate structures and reorganise our businesses from a product-based operating model to one structured along our integrated value chain.
Streamlining our structure has resulted in a significant reduction in the number of organisational units at Sasol. The new model leverages economies of scale and scope by orienting organisational units along upstream, operations or marketing and sales lines. Grouping together capabilities allows for much more efficient execution of business activities with a focus on a narrower set of activities, but with a wider span of control.
Fit-for-purpose enterprise functions serve the businesses in a partnership model. From operating independently in the past (where each organisational unit managed its own value chain end-to-end), we now operate in a co-dependent way, and as a component of the overall value chain. As a result, we now all focus on one Sasol, one bottom line rather than on individual business goals.
To reflect our new operating model, our financial reporting has been updated and new reportable segments are restated and presented in the group financial statements for 2015.
Click here for more information on our operating model structure.