Case Study: Ensuring sustainable Board effectiveness for a public entity under pressure
A Board of Directors established to oversee a state public entity under intense community and media scrutiny had been replaced with all new members for the second time in 12 months. Significant public commitments were made by the Minister responsible to improve governance within the entity. A public commitment was also made to quickly establish the new members into an effectively functioning Board to tackle pressing organisational risks.
IG Partners were engaged to ensure that appropriate governance processes were established to guide the Board’s execution of its accountabilities and obligations, ensured it worked effectively and provided the necessary support to the Executive team.
Using our proven approach, we worked closely with our client to meet these objectives.
Key was the development and delivery of a greatly simplified governance framework supported by key documents, including a manual for the department on how the framework operates in practice. As part of this, we clarified, codified and summarised who should do what and how to ensure the Board’s governance accountabilities are met.
Our one-on-one and group coaching throughout the life of the project ensured that this framework was both fit-for-purpose and owned by the Executive team and the Board of the entity. This coaching also provided a significant development uplift of the team, providing them with skills transferable to other roles.
A key success factor for our client was the experience of the IG Partners team. With deep governance and business backgrounds across government and the private sector, we were able to quickly establish the governance needs of the entity and translate that into simple and effective products that will endure in the business.
For our client, the tailored coaching and engagement provided at every stage ensured that the governance framework had a real and practical level of ownership in the entity.
Case Study: Ensuring compliance and embedding discipline
IG Partners was commissioned to undertake a tailored review of all governance structures and processes for an ASX listed global manufacturing company.
The purpose of the review was to assure compliance with ASX listing rules and corporate governance guidelines.
We conducted a Board effectiveness review which examined how the Board worked with management to create value and optimise business results.
The review resulted in an enduring governance culture and operating discipline across the business and a high performing Board of Directors.
Case Study: Rapidly cranking up performance at an Australian nickel mine
An Australian nickel mine asked IG Partners to help them improve their productivity when it was being squeezed by increasing costs and falling nickel prices.
Our client said that there were four key aspects of our approach that ensured program success; our team’s deep, on-site mining experience, strong engagement with all the mine workers and integrated approach.
IG Partners drove the project with clear day-to-day objectives while maintaining a higher order view of the overall project’s progress and delivered significant gains for the mine. These included:
- 23% headcount reduction with no negative impact on safety or production
- 17% increase in average mill feed rate
- Record milled tonnes production
- 14% increase monthly
- 4% increase on a quarterly basis
- Record nickel metal production
- 20% increase monthly
- 8% increase on a quarterly basis
- Significant increase in concentrate grade
- Test work initiated with potential to further improve concentrate grades
- Extended shutdown interval from four to six weeks, with no issues observed
Case Study: Three months to 40% through-put improvement
IG Partners reviewed the performance of a multi-commodity concentrator to identify the possible causes of through-put constraint, undertaking a detailed capacity review to establish causes and build recommendations.
Our operational team delivered a 180-day plan to arrest the decline and return to installed performance.
Within three months we had achieved 40% through-put improvement for this leading zinc producer.
Case Study: Improved outcomes through disciplined planning
A Hong Kong Stock Exchange listed Australian-Chinese mid-tier global resources company that explores, develops and mines base metal deposits around the world contracted IG Partners to work for one of its major assets, a large copper mine in Peru, South America. This open-pit mine, located at altitude of about 4,300 metres above sea level, is a polymetallic mine with significant mineral resources and ore reserves of copper with an estimated mine life of at least 20 years.
The copper concentrate is transported by truck and rail to the port, located more than 600km from the mine. The transport involves using a large fleet of trucks owned and operated by several contractors.
Logistics slowdown and higher than anticipated production resulted in closing inventory of 200kt of copper concentrate at the mine site. Some of the problems included:
- inadequate road maintenance, contributing to delays and longer transport cycles compared to the design plan
- attracting qualified truck drivers was the bottleneck to getting more trucks in the system
- limited supervision and intervention from the client in terms of the operation of the logistics chain. This was principally left to the contractors and performance was being managed through contracts. Consequently, provision of data was problematic
- the client did not appear to have access to raw data around truck activities to enable assessments to be made of lost operating hours, reasons and potential opportunities
The IG Partners diagnostic process involved a combination of offsite analysis followed by onsite verification and testing of analytical outcomes.
The results of IG Partners’ work delivered:
- The dramatic reduction of the copper concentrate stockpile in the mine from 200kt to 70kt in less than 90 days
- More robust data capture, analysis and reporting process
- A greater sense of urgency and accountability within the logistic team which translated into improved outcomes through disciplined initiative planning, monitoring and execution
Case Study: 10 weeks to 14% reduction in supply costs
A resources company that is a significant producer of silver, lead and zinc in Australia contracted IG Partners to work for its major asset, a lead/zinc mine in New South Wales. It is an underground mine located with an estimated mine life of at least 10 years.
IG Partners conducted a diagnostic to understand opportunities across several work fronts including maintenance and reliability, supply processes, supplier relationships and practices and external spend management.
IG Partners found:
- A significant proportion of materials and services were procured by direct purchase, which had cost and productivity implications
- Gaps in relationships between supply, work planning and work execution drove inefficient practices
- Competitive price checking was often not done
- External spend management lead to quality and cost inconsistencies
The intent of the support program was to identify opportunities to reduce costs immediately in external spend and improve alignment against business priorities.
IG Partners delivered the following in less than 10 weeks:
- 10 work packages were tendered and a further five directly negotiated resulting in price reductions up to 37%
- An overall spend reduction of 14% with third-party suppliers
- Greater penetration of items catalogued being added to contracts, ensuring prices being set as negotiated, and a reduction in direct purchasing effort
Case Study: A model way of operating
An ASX top 50 global business asked IG Partners to develop, implement and embed a new operating model that would enable the organisation to be successful in changing market conditions and position it for cyclical upturn.
The new operating model set clear regional and functional accountabilities and responsibilities with transparent measurement and reporting, and improved the effectiveness of the way they interact with customers.
It set the parameters for performance at the central level, while the four regional management teams are accountable for end-to-end customer service delivery, and on-the-ground operational and financial performance.
- Successfully realigned the organisation of more than 10,000 employees across from Africa, Asia, Australia, Europe, Middle East, North America and South America
- Embedded the new operating model which improved:
- responsiveness to customers
- customer and employee experiences worldwide
- senior management engagement
- transparency about their performance
- ability to recognise the achievements of employees
Case Study: 15% total cash cost reduction
IG Partners was asked to review and analyse the production, maintenance and cost performance of a mid-tier nickel operation.
Based on the detailed analysis of cost performance within the value chain, IG Partners provided our client with a set of comprehensive recommendations and rapid action implementation.
A 15% total cash cost reduction opportunity was identified by leveraging internal demand and capacity as well reducing supplier rates.