About OIM Analyse. Improve. Sustain. Proven track record since 1985 Partners with several blue-chip companies throughout Southern and Central Africa Business performance specialists in three key areas Integrated approach with an emphasis on sustainability Services relate directly to mining industry OIM’S SUPERVISORY EXPERTISE Thought leaders in supervisory development organisation Developed a proven performance coaching framework More than 1000 supervisors have benefitted from our programme
Mechanisation vs Modernisation
Mechanisation | Automation | Digitisation Current industry focus: All mining houses are focused on greater efficiencies through mechanisation | automation | digitisation The two core focus areas are: The combination will fundamentally change − New equipment and technology how we work − Big data The benefits are clear − The production of more safer tons through advances in equipment and technology − The use of real-time data and analytics for trend analysis and better decision making
Mechanisation | Automation | Digitisation The ideal: Fully autonomous mines in the long term Realistically in the near future: Most mines will be a mixture of manual, semi and fully autonomous Technology vs culture and skills The truth is – technology is easy; culture and skills are more difficult Most “failures” are caused by an engrained culture which cannot be changed overnight Most companies understand that both of the above need to be addressed and will: − Retrain the relevant employees in the technical skills needed or employ relevant skills − Launch a staff awareness campaign and culture change project
Modernisation: Culture, People, Operations Profitability Growth Image/Legitimacy People and organisational Operational obstacles/challenges obstacles/challenges THE RIGHT CULTURE Trust, tolerance and teamwork Sound decisions and ability to execute Behaviour Urgency Attitude Low resistance to change – agility Views through an IMPROVED MINDSET that is built on a foundation of X X Holistic Understanding Effective Leadership Effective Systems Organisational and of people, business, global Qualities that build trust operational political, economic and other Style that mobilises talents All integrated & aligned realities Techniques that achieve goals
Front-line leader skills Cost avoidance and intangible benefits Right people Improved skillsets Right roles Structure, roles, and efficiencies competencies Right structure Right time Sustainability • Mindsets • Skillsets • Toolsets Efficiency Employee & stakeholder Tangible benefits engagement Measurable ROI Intangible benefits Improved culture, behaviour and labour stability Modular (integrated vs stand alone) | Flexible (sequence) | Now and then (short- and long-term benefits)
The effective execution of any business plan heavily relies on supervisory effectiveness yet, very little effort is placed on changing how the frontline/supervisor leads and manages
Comparative pre-assessment results 5.00 4.00 2.88 COMPETENT 2.84 3.00 2.80 2.79 2.78 2.74 2.72 2.65 2.65 2.64 2.62 2.62 2.55 2.53 2.51 2.46 2.40 2.33 2.19 2.14 1.98 2.00 1.00 0.00 Assertiveness Communication Skills Interpersonal Analysis & Problem Leading & developing Planning & Organising Overall Sensitivity Solving others Engineering Mining Plant
The current state of supervisory competencies Competent in role Not competent in role 12% 6% Partially competent in role 82% * Exceeds requirements of role= 0%
The current state of supervisors Average score per day element – mining 5.00 COMPETENT
Learning potential APIL assessment – learning potential by department (n = 79) 15% lower average: Required level Some potential in development & training 20 24% limited or poor 18 17 17 Severe limitations in development & training 16 14 14 13 12 12 12 10 8 6 6 6 5 5 5 5 4 4 4 4 4 3 3 3 3 3 2 2 2 2 2 1 1 1 1 0 0 0 0 0 0 0 Excellent Good High Average Average Low Average Rather Limited Poor Engineering Finance Processing Mining Group Total The scores of test battery may be integrated to derive an overall evaluation of learning potential on a 7-point scale For the supervisory group a total of 17 (24%) employees had a “rather limited” score indicating severe limitations in develop ing and training these employees
Mine overseer’s confidence level in supervisors Plan Execute Review 7% 11% 25% 31% 56% 27% 60% 45% 25% 7% 2% 5% Consequence management Focus on the weekly schedule Plan Attendance & shift planning Level of Ad-hoc & non-scheduled work Consistent leadership Adherence to procedures Shift handovers (supervisors) Use of Initiative Execute Understanding impact of in-pit conditions on Schedule Schedule Compliance considered throughout shift Extent to which close supervision required Shift mobilisation impact on DOH Ratio of Admin VS Pit-Time Feedback consistent & accurate Review Articulates reason(s) behind performance Hand-overs formal and consistent 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not Confident Slightly Confident Moderatly Confident Very confident
Reality survey: May|June 2019 Consequence management Focus on the weekly schedule Plan Attendance & shift planning Level of Ad-hoc & non-scheduled work Consistent leadership Adherence to procedures Active Interaction e.g. Shift handovers Use of Initiative Execute Understanding impact of mining conditions on Schedule Schedule Compliance considered for shift/day Extent to which close supervision required Structured handovers impact on operational performance Ratio of Admin VS Shift execution Feedback consistent & accurate Review Articulates reason(s) behind performance Hand-overs formal and consistent 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not Confident Slightly Confident Moderatly Confident Very confident
The management maturity matrix Capability (DILO) CONSERVATIVES HIGH-FLYERS High Stage 3 to 5 management maturity Stage 3 to 5 level of management maturity + ( Conceptual ) with low performance. ( Conceptual , Ownership & Innovation ). Performance (scorecard) Indicates that the supervisor is achieving Adoption driving improved performance. “mechanical” compliance, but is not yet Enhanced use of OM operational tools. leveraging the toolsets to effectively Leverage as “Reference Points” to less C A P A B I L I T Y Role (DILO) manage their processes. mature areas. Aim: Assessments move from = non-conformist NON-CONFORMISTS OPPORTUNISTS Measure to high flyer Stage 1 to 2 management maturity Stage 1 to 2 management maturity Capability ( Informal & Compliant ). Normally first ( Informal & Compliant ) High-performance 4 to 6 months. Mechanical compliance with rating is synthetic: little or no benefit realisation. Due to overcapacity / low targets or effective High risk period > 6 months’ formal informal management approaches or intervention is required: enhancing “Transactional” leadership style complementary skillset, increase reporting “Sustainability Risk” as far as maintaining level Low frequency, intensive coaching etc. of performance is concerned. Low P E R F O R M A N C E High Measure Scorecard = Performance KPIs
The management maturity matrix Mining supervisor development assessments Legend Final Role (Dilo) Assessment: Compared to Q3 2017 Interim Role (Dilo) Assessment: Compared to Q2 2017 Baseline Role (Dilo) Assessment: Compared to Q1 2017 Scorecard
The supervisor SOLUTION
Embedding behavioural change through coaching 80% 10% 10% We link to measure real operational improvement + + COMPETENCIES COACHING THEORY
Mining: pre- vs post-assessment 5.00 4.00 3.22 3.14 3.05 2.96 2.93 COMPETENT 2.82 2.84 3.00 2.81 2.81 2.67 2.57 2.55 2.45 2.06 2.00 1.00 0.00 Assertiveness Communication Skills Interpersonal Analysis & Problem Leading & developing Planning & Organising Overall Sensitivity Solving others Pre-assessment Post-assessment
Role execution Average score per day element - mining 5.00 4.00 3.00 2.79 2.74 2.72 2.71 2.58 2.27 2.22 2.20 2.20 2.09 2.00 1.68 1.65 1.63 1.63 1.58 1.00 0.00 Start of Shift Team Meetings Shift Execution End of Shift Average Day Elements Baseline Interim End of Project
The current state of supervisory competencies A F T E R B E F O R E
Mine overseer’s confidence level in supervisors B E F O R E A F T E R Not confident Moderately confident Slightly confident Very confident
The impact on performance Some highlights GOLD MINE 54% ▲ in meters per rig 86% ▲ in tons per rig GLOBAL IRON-ORE PRODUCER 14% ▲ per day of saleable and stacked tons MANGANESE MINE Total product tons 9% ▲ SOUTH AFRICAN IRON-ORE PRODUCER Total ROM tons 14% ▲ 10% ▲ productivity tons per employee 25% ▲ planned maintenance ZIMBABWEAN CEMENT PRODUCER Revenue 40% ▲
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