GMC’s holistic view is the cornerstone of our success. The whole system is Greater than the sum of its parts


Our Holistic Perspective


Optimizes the process from orebody to product to market

Identifies value destruction of silo efforts

Integrated Planning



  Limits the effect of variability

  Provides a rapid decision-making process to align business objectives within ever-changing constraints

  Can seize value opportunities with certainty

  Create stable and predictable organizations

Major elements are: articulating the vision, managing process interfaces, jointly mapping solutions, disciplined execution of plans and providing agile potential solutions to threats

Alignment of stakeholder plans and external agencies, operational management of real-time information and the escalation of performance data gap-closing initiatives, improvement studies, monthly plan threats, KPI alignment and reconciled forecasts

Vital step to harness the digital agenda in mining

The New Paradigm


First-mover advantage will capitalize on the new world order.


A new global order

Current common practices will be challenged and new practices will be created based on a worldview increasingly influenced by opposing worldviews

Complex ethical dilemmas are arising, driven by the conflict of economic growth versus environmental protection and national survival versus global participation

For various reasons, new ore bodies will become increasingly difficult to acquire and more expensive to operate. Resource security motivations will begin to dominate government and business actions

Businesses will have to adapt to internal and external dynamics


Businesses will have to adopt new capabilities required


Old Paradigm

New Paradigm

Strategic Management

  • Western World View
  • OECD dominated global economy
  • Annual strategic positioning (3-5 year horizon)
  • Capabilities - Build critical mass of funds; Comply with government regulations; Position strategic business units for future strategic advantage
  • Clear Brand Identity
  • Understand well-defined societies
  • Content Centric
  • Developing an all-encompassing worldview; Western worldview, Eastern worldview, Asian worldview and African worldview
  • Strategic positioning is event-driven (much broader context)
  • Capabilities - Build critical mass of positive opinion; Influence government regulations; Position within peripheral entities for future strategic advantage where the division between competitors, suppliers, and clients become blurred
  • Pervasive presence
  • Identify emerging societies
  • Process and Digital-centric

Financial Management

  • Cost management
  • Financial reporting dictates management actions
  • Procurement is about pricing & most advantageous pay structure
  • Volatility resistant Cost Management
  • Value creation & destruction reporting to dictate management actions
  • Procurement is about pricing, security of supply and pro-local support

Marketing

  • Customer demand driven products
  • Information-based Market intelligence
  • Orebody driven product
  • Scouting-based market intelligence (counterintelligence model)

Research & Development

  • In-house capability to ensure competitive edge
  • Solutions: Design, pilot, and implement within a well know context of over-supply and developed world dominance
  • Outsource capability with specialized partners across disciplines
  • Simulated solutions

Organizational Design

Functional led organizational design:

  • The end to end value chain forms the basis of organizational design
  • Unstable operations and management induced complexity

Structural variability led organizational design:

  • The orebody is the constant with its inherent structural variability
  • The process is design-based on the structural variability of the orebody
  • Stable operations and reduced management complexity

Intellectual Capital Management

Human Resources:

  • Individual capability dependent
  • Sensitive to individual skill loss

Organizational Reporting:

  • Is based on organization structures and functional areas
  • Management meetings needed to agree on actions needed based on management reports

Human Resources:

  • Knowledge network dependent
  • Robust to scarce skills

Organizational acumen:

  • The Organizational dashboard is developed based on the core process and the Organizational Blueprint
  • This dashboard picks up all variances which threaten organizational stability and resultant value destruction
  • The “variance reporting” instructs work in relevant areas and minimizes meetings
  • Digital decision support

Technical Competence

  • Management applies simple unit based process control and monitoring
  • Experience-based cause and effect analysis
  • A few internal “experts” could hold the knowledge required to sustain operations

Human Resources:

  • Management applies Whole System Dynamic Integrative Software solutions to create insight into decisions. These software solutions will support them in managing the information overload caused by:
    o The high level of automation
    o Remote Operating Centers
    o Data management complexity increased as a result of data volume sourced from Internet of Things
  • Remote Simulation and advanced analytics-based cause and effect analysis
  • Organizational knowledge embedded in Whole System Integrative Software solutions

Valuing Diversity



Diversity is often diminished to race, sex, and religion

A broader view needs to be adopted to include diversity of function, worldviews, specialist areas and management approaches

Move from tolerating diversity as a matter of social acceptance to valuing diversity as an important business imperative for value creation

Diversity creates context for every decision

Structural Variability



In mining, variability is inherent to the value chain

Absorbing structural variability leads to minimizing complexity and leads to the lowest cost platform

Failure to absorb structural variability leaves value on the table

Businesses need to align orebody capability to the market

In mining, structural variability can be managed through rate, inventory, systems and management processes that give management the ability to best manage the variation associated with the structural variability


Why Companies Fail to Manage Structural Variability


Specialization, silo and geological focus adds management induced variability which leads to unstable operations

Whole System focus is required to absorb structural variability effectively

There is no one standard solution to absorb structural variability because each company has different orebodies, infrastructure, and market dynamics

Many companies invest in ideological philosophies such as zero inventory, six sigma which leads them to believe that these ideas are directly applicable to mining – in mining it needs to be applied within context of structural variability


Consequences if not managed include


Secondary complexity which increases cost

Prevention of insight into the effects of decisions on the total value chain

Increasing complexity which leads to non-value add actions by management - The management effort is then based on today’s tonnage rather than building tomorrow’s capabilities

Risk of increasing variability as a result of management reactivity to control the adverse impacts of inherent variation