Friends, I’ve been pondering something for a while now: are today’s mining companies truly structured for success?
Hear me out… Although business models, roles and organisational structures can and do evolve over time, the economic, geopolitical and environmental context in which most mining companies find themselves today is likely significantly different to what it was five or 10 years ago… Hell, it’s probably even different to 12 months ago. Most mining-related businesses simply aren’t built to move that fast.
The needs of stakeholders, consumers and society in general is also changing. For example, many tier one miners now have purpose statements that hinge around ‘providing the materials that society needs for a clean, green future in a way that respects people and the planet’.
It’s a noble ambition, but are they really built with that as their primary purpose, or are they still operating under a model that prioritises shareholder returns above all else? Just as purpose changes and grows, so too should the business structure, systems and processes. (This dichotomy is one reason why so many mining organisations are struggling to realise their lofty environmental, social and governance ambitions – they’re just not designed for it.)
Likewise, as businesses, are junior miners optimised for prospect and/or project generation, or are their operating models, core skillsets and incentives skewed towards capital raising, because that’s their lifeblood?
Sometimes it’s pertinent to take a step back and ask whether the way in which businesses are built truly supports their future ambitions and values. And whether they have the right systems, reporting structures, teams and skills in place to deliver on them.
Don’t get me wrong, some companies are ingeniously designed. Also, I know that change on this scale isn’t quick or easy, especially given that the way in which the mining industry at large functions hasn’t fundamentally changed in… well, forever. But unless companies take the time to consider their structural suitability, they could be setting themselves up to fail from the get-go. And that will not achieve the transformational effect that leading organisations are collectively envisioning.
newsWhat do you think? We have a whole month of content themed around ‘taking a fresh look at mining and metals organisations’ on The Intelligent Miner during April. Come join us and let’s explore the possibilities together.
Carly