By turning the spotlight on enhancing the efficiency of our operations, we are shaping our business for a profitable and sustainable future for the benefit of all our stakeholders – targeting US$100 million cumulative revenue, cost savings and productivity improvements over a four year period to 2021.
TIME FOR CHANGE
The Group has, in recent years, faced short and medium-term price pressures, challenging operational conditions and increasing costs related primarily to deeper mining, increased waste mining and longer haul distances. These factors have placed increasing pressure on margins and cash flow.
In February 2017, the Group identified the need for a formal business review process. A dedicated Business Transformation team headed by the Chief Business Transformation Officer, and fully supported by the Chairman and Board of Directors, was tasked to ensure the successful implementation and ongoing sustainability of all revenue, cost reduction and productivity improvement initiatives. These initiatives were primarily generated by the entire workforce through focussed idea generation sessions to drive bottom-up innovation and ownership.
The organisational health of the Group underpins the success and sustainability of the Business Transformation and through an organisational health index (OHI) survey, areas requiring improvement were identified and addressed. An annual employee culture survey is conducted to keep in touch with the impact of implemented actions and identify other areas of improvement. The self-funded Business Transformation Employee Recognition and Reward Scheme, rewarded all employees who took ownership of and implemented initiatives that contributed to the success of the Business Transformation program.
Through a vigorous planning phase, more than 300 initiatives were identified, targeting cumulative cash cost savings and productivity improvements of approximately US$100 million over a four-year period to end 2021 (net of implementation costs and fees).
The implementation phase of the Business Transformation commenced in the fourth quarter of 2017.
For more information on the Business Transformation tracking, please refer to the Annual Reports and Accounts, Half-year Reports, relevant trading updates and press releases.