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wiring the operation for a successful capital commissioning
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Context
PIP was approached by a multi-billion dollar, greenfield,
mining and processing site to build the management infrastructure
that would be required to operate post commissioning.
Most of the management for the 700 person operating
team had been appointed and were working in parallel
with the construction team, preparing for handover.
The team was drawn from around the world and whilst
most had worked within the client holding company at
different sites, they hadn’t worked together.
PIP was asked to focus on three key elements of the
new management environment:
- Implement a reporting system based on value driver
trees and develop the value drivers into a fully integrated
business model
- Create role clarity around KPIs, establish accountabilities
and obtain the support of the management team
- Implement Results-Actions Reviews (RARs) and build
the operating disciplines (management operating system),
including business coaching
1. Implement reporting system and develop integrated
business model
The Value Driver Trees provide a stand-alone value
structure identifying the KPIs for each operating area.
This was developed in conjunction with operating management
and provided a complete set of KPIs required to build
accountability into the organisation and for performance
improvement purposes.
The individual value-driver trees were combined to
create a fully integrated business model to forecast
outcomes from mine planning information on grades and
outputs and maintenance information on shutdowns. This
model was designed to set baselines driven by physical
information as a basis for robust performance analysis.
2. Create Role Clarity Around KPIs
KPIs, mainly focused on the shareholder value pillar
of the scorecard, were identified in all operating areas
of the plant and allocated down to supervisor level.
Each incumbent’s role was described in a rigorous
accountability framework that identified the value added
by each layer of management. As an example, achieving
the budget was described as follows:
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General Manager. Ensure Overall
Budget is achieved, improves over time, and has
integrity across departments. Establish Site-wide
priorities required to achieve overall Budget. Hold
Managers to account to achieve Departmental Budget. |
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Managers. Achieve Department
Budget and improve this over time. Select between
alternative ways to achieve objectives, providing
guidance to Superintendents on the best way to achieve
Budget. Hold Superintendents to account to achieve
monthly Departmental target. |
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Superintendents. Achieve Area
Budget. Anticipate issues that may arise and plan
pre-emptive action agreeing tasks with Supervisors
and Specialists. Hold Supervisors to account to
ensure that the tasks committed to are done on schedule
and at the appropriate quality level. |
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Supervisors. Deliver Shift Targets.
Identify and correct operational problems as they
arise over the course of the shift. Hold Technicians
to account for individual performance vs. daily
targets. |
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This framework of cascading accountabilities was applied
across all dimensions including safety, people management,
business excellence, quality, and capital expansion.
This was implemented across the organisation in the
following manner:
- Workshops to debate accountability interfaces between
incumbents at a level and between them their managers
and their direct reports
- Facilitated role clarity discussion between each
manager and his/her subordinates
- One-on-one discussion to establish the task linkage
between actions and KPI results
- Workshops on how time and effort should be allocated
to achieve the KPI results, including developing “ideal
day” for supervisors and “ideal week”
for managers and superintendents
- Ensuring that agreed KPIs were reflected in completed
scorecards, position descriptions, skills/competency
profiles for positions, and the performance management
system
3. Implement Results-Action-Reviews and build
the operating disciplines
Implementing Results-Actions Reviews (RARs) was seen
as being critical to the effectiveness and sustainability
of the KPI reporting. These were implemented as a mechanism
for reviewing the business at each level, control, coaching,
and creating conversations to drive performance forward.
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