anglogold ashanti uses psychometric testing to improve...

Copyright © 2018 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

CASE STUDY

Christa Degnan Manning, Vice President, Solution Provider Research LeaderBersin, Deloitte Consulting LLP

Overview

AngloGold Ashanti (AGA) is one of the world’s leading producers of gold. Oncerecovered from the company’s 17 active mines in Africa, Asia, Australia, and

South America, the gold is sold and used for a wide range of applications—from high-tech devices to jewelry. Gold mining is an inherently dangerous business, con-ducted deep underground with heavy machinery. The economics of gold also make the business susceptible to outside factors such as geopolitics and exchange rates.

Executives at AGA have committed themselves to making their mines safe and fatality free while also streamlining costs and increasing production to meet demand. To accomplish this, the company’s learning organization recently launched a new talent management solution anchored in psychometric testing. Executives believe these tests will not only help them identify employees with the right skills to succeed—safely—but also improve team results, increase productivity, and help identify and develop future leaders.

AngloGold Ashanti Uses Psychometric Testing to Improve Employee Safety

In This Case Study a Why AngloGold Ashanti made the decision to move to a new global, digital platform for talent management

a The requirements of launching a new global system across a large organization

a The early results of the new platform and forecasts for the future


2 Copyright © 2018 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

Company OverviewAngloGold Ashanti (AGA) is the third-largest gold-mining company in the world as measured by production. Its 62,000 employees mine and operate 17 active gold mines in nine countries: Argentina, Australia, Brazil, the Democratic Republic of Congo, Ghana, Guinea, Mali, South Africa, and Tanzania (see Figure 1). It also has several exploration pro-grams in both established and new gold-producing regions around the world. In 2016, AGA earned approximately $4.08 billion on the produc-tion of 3.6 million ounces of gold.1

Headquartered in Johannesburg, South Africa, AngloGold was founded in 1998 and that year became the first South African company to be listed on the New York Stock Exchange.2 In 2004, it merged with Ashanti Goldfields Company to form AngloGold Ashanti. With thousands of employees working around the world in high-risk work environments—active gold mines—AGA is committed to promoting a strong culture of safety to protect its workforce.

1 Annual Financial Statements, 2016, AngloGold Ashanti, 2016, https://thevault.exchange/?get_group_doc=143/ 1502779781-2016AnnualFinancialStatements.pdf.2 “Company History,” AngloGoldAshanti.com, www.anglogoldashanti.com/company/history.

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Business Environment and ChallengesWhile gold is a straightforward commodity product, the business of gold is remarkably complex. Approximately half of the world’s gold consump-tion is for the jewelry market3, but the precious metal is also used in a wide range of essential products, as well as being an important invest-ment vehicle. Both small- and large-scale investors—as well as central banks—purchase and hold gold as a safety net during volatile geopolit-ical periods. Gold is also used in a wide range of medical, engineering, and technology products. AGA satisfies this global demand by mining for gold at multiple mines on multiple continents.

AGA miners work in some of the most occupationally hazardous work environments in the world. Explosives and heavy machinery are used deep underground, with mining occurring around the clock. Industrial-scale drills, enormous trucks, and trains are used in the mining process. Add to this the ever-present threat of underground seismic activity. AGA has made a companywide commitment to protecting its miners at their job sites. Indeed, the company’s first core value, listed prominently on its most recent annual report, is safety:

We are responsible for seeking out new and innovative ways to prevent injury and illness in our business and to ensure that our workplaces are free of occupational injury and illness.4

This includes adopting the latest technology and constantly improving safety procedures and protocols. Critically, it also includes hiring and retaining safety-minded employees. It means ensuring that employees bring an ethic of safety to work every day and that mining teams are made up of individuals committed to each other’s safety.

Even as the company strives for a perfectly safe workplace, the business is also seeking to expand the scale of its operations. As gold prices move up and down depending on a range of issues, the company must also

3 “Gold Demand Sectors,” World Gold Council, www.gold.org/about-gold/gold-demand/sectors-of-demand.4 Annual Financial Statements, 2016, AngloGold Ashanti, 2016, https://thevault.exchange/?get_group_doc=143/ 1502779781-2016AnnualFinancialStatements.pdf.

Year Founded: 1998

Annual Revenue (FY 2016): $4.08 billion

Employees: 62,000

Headquarters: Johannesburg, South Africa

Figure 1: AngloGold Ashanti at a Glance

Source: AngloGold Ashanti, 2018.

KEY POINT: Safety is AngloGold Ashanti’s first core value, and that means hiring the right employees and ensuring that mining teams are made up of individuals committed to each other’s safety.



improve productivity to meet long-term demand and even out shorter-term fluctuations in demand. Says the company’s head of L&D:

To make this happen, it is critical that we get the right people and that we develop them. We also need to look for potential among our workforce—and that is based on having a true understanding of the workforce and what their skills are.

HR EnvironmentReporting to AGA’s chief human resources officer (CHRO), the head of learning and development (L&D) is responsible for a wide array of talent development matters. This executive is accountable for training all levels of employees, including miners, executive leaders, and supervisors. This pro-fessional also oversees all psychological assessments—a highly regulated business in South Africa—as well as all compliance issues regarding training.

Through four training centers—including two underground centers—staffed by more than 200 people, the L&D teams train more than 30,000 employees a year on technical, behavioral, and leadership skills.

Talent Management TransformationAngloGold Ashanti is in the midst of a major transformation with its talent management solution. At the heart of this transformation is the use of psychometric testing for staff at its operations around the world. This testing provides training executives and leaders with several key insights. It can help them identify employees’ suitability for particular roles, assess individuals’ behavioral style, and place individuals within the company based on their assessment profiles. Critically, executives believe that psy-chometric testing can help them increase the capabilities of AGA’s entire global workforce.

This talent management transformation has been driven by three major factors:

1. Putting employee safety first

2. Improving skills for existing employees and hiring excellent new employees

3. Integrating the fragmented array of talent management solutions being used at the company’s different locations around the world.

At any given moment, 14,000 AGA employees are working underground at mines around the world. Injuries and fatalities have been an extremely unfortunate reality in the mining industry, but AngloGold Ashanti has put employee safety at the heart of its mission. This includes committing the company to eliminating fatalities at its mines5, and it has made great strides toward this end. In August 2017, the company reported for the

5 “Ending mine fatalities most pressing 2017 priority—AngloGold,” Mining Weekly / Martin Creamer, February 21, 2017, www.miningweekly.com/article/ending-mine-fatalities-most-pressing-2017-priority-anglogold-2017-02-21/rep_id:3650.



first time ever that it had achieved three back-to-back quarters without a single fatal accident across all locations. At the company’s “ultra-deep” South African mines, it announced 339 fatality-free days at the end of June 2017. Every one of the company’s operations surpassed a million fatality-free shifts, and many of the company’s sites completed the most recent quarter with no injuries at all. Understanding individual employee behaviors and creating safe mining teams are essential to maintaining this record. Says the company’s head of L&D:

We wanted to see if we could identify a propensity for safety and risk, based on research, and then use that information to structure our teams that work together underground.

Historically, AGA has used a range of psychometric solutions at its different locations around the world. Not only were there different solu-tion providers working in different locations, but their tests were also different, making it impossible to generate accurate assessments and comparisons across the entire workforce. Complicating matters further, the testing process was completely manual, requiring a certified psychol-ogist to score paper tests and report results on an individual basis. For a company with more than 60,000 employees, this scattershot solution was simply not scalable nor particularly valuable.

Launching a Global SolutionIn 2016, learning executives at AGA set out to streamline their talent management solutions and anchor the process in psychometric testing. Executives wanted one comprehensive and global talent management solution that would help leaders and frontline managers identify the skills needed to drive the organization forward. Once the solution was implemented, leaders and managers would know specifically what skills individual team members needed to develop. The learning team also wanted the solution to help it build a robust research database that it could mine to spot trends, patterns, and outcomes linked to key behav-iors, personality profiles, and good business decisions.

As they began their search for a new solution, AngloGold executives argued that any new solution would have to be compatible with the com-pany’s existing and future technology infrastructure across all sites. A cloud-based system, which could be updated on the fly, was identified as the only viable solution for AGA.

The company selected a solution from the South African–headquartered firm TalentSolved (TS). The head of TS is a licensed psychologist, and the company also has a robust cloud-based technology platform. In part because margins in the gold business are narrow and new invest-ments are heavily vetted, tested, and scrutinized, it took six months to get global approval to launch the solution from TS. It took another six months to get through AGA’s rigorous governance process. The solution was examined by AGA’s IT, security, and other departments to ensure that it worked with the company’s different systems and that it also complied with varying regulations around the world. In November 2016,

KEY POINT: A new solution would function as a research database that executives could mine for trends, patterns, and outcomes linked to key behaviors, personality profiles, and good business decisions.



the learning team at AngloGold Ashanti and executives at TS got the go-ahead to launch the global solution.

New Talent Management ModelTS and learning executives at AngloGold Ashanti are using a four-step process as they roll out the new solution. The first phase, “Define,” calls for creating a talent architecture. In the second phase, “Differentiate,” the learning team will look at talent vis-à-vis the needs of the company. The next phase, “Develop,” will entail developing talent to fill any gaps. And the final phase, “Demonstrate,” is when talent will be used to optimize organizational results (see Figure 2).

Figure 2: The TalentSolved Talent Management Model

Source: TalentSolved, 2018.



the learning team at AngloGold Ashanti and executives at TS got the go-ahead to launch the global solution.

New Talent Management ModelTS and learning executives at AngloGold Ashanti are using a four-step process as they roll out the new solution. The first phase, “Define,” calls for creating a talent architecture. In the second phase, “Differentiate,” the learning team will look at talent vis-à-vis the needs of the company. The next phase, “Develop,” will entail developing talent to fill any gaps. And the final phase, “Demonstrate,” is when talent will be used to optimize organizational results (see Figure 2).

Figure 2: The TalentSolved Talent Management Model


ORGANISATION

DEM

ANDSU

PPLY

DEMONSTRATE

DEFINE

INDIVIDUAL

DIFFERENTIATEDEVELOP

INTE

LLIG

ENCE

TALE

NT

ANALYSIS

BENEFIT& DIVERSITYENGAGEMENTEMPLOYEE

ALIGN

ASSESS

ANALYSE

ATTR

ACT

SELECT

DEPLOY

TALENT IN

TEGRATIO

NTALENT OPTIMISATION

TALENT ARCHITECTUREOP

TIMISATION

ORGANISATION

& MOBILITY

WELLNESS

DEVELOPMENT

LEARNING &

MAN

AGEM

ENTPERFO

RMANCE

MAXIMISE TALENTPOTENTIAL



Step 1: Defining Values, Behaviors, and Role ProfilesThe first step in launching the TS solution was to define the values that are critical to AGA’s success and its culture.

Safety is clearly a priority, but we needed to understand what that actually meant and what it looked like in the workplace.

— CEO, TalentSolved

Along with learning executives at AngloGold Ashanti, the team developed a series of behaviors that were linked to safety. Some of these included the following:

• An inclination toward adhering to rules and following instructionsand a propensity to minimize risk

• Using a moral compass to guide decision making and acting withintegrity

• An inclination toward carrying out work methodically in a structuredand planned way

As part of the defining process, the TS and AGA teams also built a complete database of every job role in the company and its profile. The extensive number of roles included senior management; production, financial, and HR managers; back-office functions; frontline employees; and every member of a mining team, including winch operators, loco-motive operators, rock-drill operators, and engineers. Finally, executives had to create a rigorous set of permission rules in the software platform to establish who would be able to access psychometric-testing results. For example, a frontline manager would have access to the results for everyone on his or her team but not those for other teams. Leaders who oversee entire mines would have much broader access.

Step 2: Differentiating TalentWith the role profiles created, the team moved into the second phase of the solution—differentiate—in which psychometric testing began being launched across the company. It will take two to three years to assess the entire workforce, but in the meantime managers can request that an assessment be administered to specific employees. The learning team, for its part, is already providing feedback reports from the testing to teams and individuals, and this process will expand dramatically throughout 2018.

One core feature of the new system is its ease of use. Assessments are now done entirely online, instead of with paper and pencil. For employees who struggle with technology, the learning team has set up a help desk to help guide them through the process. And unlike the previous paper-based manual reports, the new solution integrates with AGA’s enterprise resource planning platform so that data can be shared quickly across the company.

Figure 3 shows an anonymized version of a psychometric-testing report summary for a client-service consultant at AngloGold Ashanti. It includes



an assessment across four categories, including personality match to the job, verbal ability, numerical ability, and error-checking ability, and an assessment as to whether the employee is a good match for the role.

Figure 3: Psychometric Testing Executive Summary


IMPORTANT TO THE JOBSTRENGTHS

Resolving ConflictUnderstanding peopleTeamwork

POSSIBLE DEVELOPMENT

Resolving ConflictUnderstanding people

Documenting FactsEmpowering People

Directing PeoplePursuing Goals

NOT IMPORTANT TO THE JOBSTRENGTHS POSSIBLE DEVELOPMENT

PERSONALITYMATCH

VERBALABILITY

NUMERICALABILITY

ERROR CHECKINGABILITY

The overall fit is based on the candidate’s results from his/her personality and ability assessments.PURPOSEFUL MATCH

RATING:

extensive development is likely to be required.

significant development is likely to be required.

some development is likely to be required.

competent, with little development required.

likely strength, potential for developing and coaching others.

unsuitable match marginal match purposeful match good match exceptional match

HIGHER FITLOWER FIT

From a cursory perspective, the scores obtained by Michelle in terms of the overall personality competency match were average in relation to the role. With reference to the respective roles and commensurate job-match, some development is required. It is clear that value is placed on being people focused. Additionally, the candidate’s aptitude scores are represented below, which can be interpreted utilizing the rating legend. The Team-Type score is reflective of an Connector-Concluder, which is fitting, as this suggests that michelle is a good team player who is supportive, positive, flexible & adaptable. In terms of the Performance-Potential Matrix, Michelle obtained an Average score.



The report also includes a more detailed “Person Job Match Profile” showing how the employee matches up against critical work-related behaviors (see Figure 4). The behaviors are listed in order of importance, and the match criteria are EM for exceptional match, GM for good match, PM for purposeful match, MM for marginal match, and UM for undesir-able match. The matches are also color coded from dark green to green to yellow to orange to red, with green being positive, yellow to orange being caution signs, and red being a warning sign that specific behaviors need to be developed. In the example shown in Figure 4, the employee is a good match in the critical skills of resolving conflict, checking details, following procedures, and producing output. He is an exceptional match when it comes to valuing others, working in teams, and seeking feedback. But the employee needs development—areas marked as a marginal match (MM)—in some critical skills: managing tasks, meeting timescales, and thinking positively.

Figure 4: Individual Job Match Profile


(cont’d on next page)

exceptional match

exceptional match

exceptional match

purposeful match

purposeful match

purposeful match

marginal match

marginal match

marginal match

exceptional match

Resolving arguments; Handling Angry Individuals; Calming Upset People

Producing High Quality Work; Ensuring Accuracy; Finding Errors

Adhering to Rules; Following Instructions; Minimising Risks

Working Methodically; Planning Activities; Setting Priorities

Projecting Enthusiasm; Making Contact; Networking

Putting People at Ease; Welcoming People; Making Friends

Behaving Ethically; Maintaining Confidentially; Acting with Integrity

Being Optimistic; Projecting Cheerfulness; Recovering From Setbacks

Meeting Deadlines; Finishing Tasks; Keeping to Schedule

Working Quickly; Maintaining Productivity; Multi-Tasking

RESOLVING CONFLICT

CHECKING DETAILS

FOLLOWING PROCEDURES

PRODUCING OUTPUT

ESTABLISHING RAPPORT

THINKING POSITIVELY

MEETING TIMESCALES

MANAGING TASKS

UPHOLDING STANDARDS

INTERACTING WITH PEOPLE

MATCHCOMPETENCY

CR

ITIC

ALLY

IMPO

RTAN

T



Step 3: Developing Talent

The promise and potential for this solution is enormous. At the individual level, it will be about helping those people develop more. At the team level, we will be able to show supervisors and managers what kind of team members they have and how they can manage them better.

—Head of L&D at AngloGold Ashanti


Figure 4: Individual Job Match Profile (cont’d)

exceptional match

exceptional match

purposeful match

marginal match

marginal match

marginal match

exceptional match

good match

purposeful match

exceptional match

Trusting People; Tolerating Others; Showing Consideration

Working Participatively; Encouraging Team Contributions; Involving Others in Decisions

Acknowledging Criticism; Encouraging Critical Thinking; Gathering Feedback

Staying Calm; Tolerating Stress; Dealing with Pressure

Applying Practical Skills; Learning by Doing; Utilizing Common Sense

Investing Energy; Using Initiative; Making Things Happen

Adapting to New Challenges; Coping With Changes; Tolerating Uncertainty

Persuading Others; Shaping Opinions; Negotiating

Promoting Personal Achievements; Attracting Attention; Gaining Recognition

Identifying Key Issues; Continuously Improving Things; Making Intuitive Judgements

VALUING INDIVIDUALS

TEAM WORKING

INVITING FEEDBACK

SHOWING COMPOSURE

TAKING ACTION

CONVINCING PEOPLE

IMPRESSING PEOPLE

PROVIDING INSIGHT

purposeful match

purposeful match

purposeful match

Taking up Learning Opportunities; Acquiring Knowledge and Skills; Updating Specialist Knowledge

Showing Empathy; Listening to People; Understanding Motivation

Projecting Inner Confidence; Valuing Own Contribution; Determining Own Future

DEVELOPING EXPERTISE

UNDERSTANDING PEOPLE

CONVEYING SELFCONFIDENCE

EMBRACING CHANGE

ADOPTING PRACTICAL APPROACHES

MATCHCOMPETENCYVE

RY IM

PORT

ANT

IMPO

RTAN

T

RATING:

extensive development is likely to be required.

significant development is likely to be required.

some development is likely to be required.

competent, with little development required.

likely strength, potential for developing and coaching others.

unsuitable match marginal match purposeful match good match exceptional match



While AngloGold Ashanti is only beginning to roll out the talent develop-ment portion of its transformation, its potential is already energizing the organization. The company’s learning team will be using the aggregated data to make science-based predictions on safe performance behaviors and what team behaviors are most linked to improved productivity. At the supervisor level, the psychometric testing will be another tool used to identify and select future leaders.

Step 4: Demonstrating Behaviors for Organization OptimizationLearning executives at AGA are also now using their new talent management platform to identify candidates for the company’s high-potential program, called “The Chairman’s Leadership Program.” As in years past, nominations for the program are submitted from leaders around the world. In 2017, however, for the first time, in order to refine the list from 100 candidates to only 10, the learning team is using the psychometric-testing platform to identify the candidates with the highest likelihood of potential based on a specific set of behaviors.

Business ImpactAngloGold Ashanti has just begun rolling out its talent management solution around the world, but the learning team expects to reap several rewards:

1. The group’s analysis suggests that the new global solution will savemoney compared to the various solutions previously deployedaround the world.

2. By moving the entire process online, the new solution will be moreefficient. It will also equip managers with insights to better developtheir team members by filling critical capability gaps and aligningbehaviors with company objectives. Critically, the solution sponsorsalso believe the new solution will help address the company’s coremandate: safety.

3. The solution will help the company efficiently identify future leadersand determine what skills are needed for high-potential employeesto mature into leadership roles.

4. By building teams of employees who take safety seriously, the com-pany expects that lives will be saved.

Lessons Learned• Allow large organizations time to make changes. Even as the

learning team was able to rapidly identify a solution that fit its needs, ittook six months to gain approval, pass IT-governance tests, and certifythe new solution. Others embarking on similar-scale projects shouldkeep this in mind.

• Think global. Learning leaders knew they would need a high-tech solu-tion that could fit into the company’s existing tech platforms as well asfuture platforms yet to be developed. Be prepared to vet worldwide system- integration needs as well as local requirements in all countries inwhich an organization operates.



• Execute on values. One reason business leaders bought into anew global talent platform is that learning leaders showed how itwould help address the company’s first core value: safety. Be clearon what you are trying to achieve at a broader strategic and culturallevel with any large-scale talent solution.

Next StepsAt the end of 2017, AngloGold Ashanti was preparing a global launch of the TS talent management platform, and while it will take two to three years to assess the entire organization, the learning team is already plan-ning several key initiatives in the short term. The team will begin using the results to identify key candidates for internal job promotions and to identify high-potential candidates for future senior roles.

We want to raise the strength of our bench across the entire company.

—Learning Lead at AngloGold Ashanti

As whole teams are tested, learning leaders will begin proactively reaching out to managers and supervisors with detailed reports and advice. Learning leaders will be able to show these managers what kind of team members they currently have and what type of team members they could use more of to improve their safety and productivity.

ConclusionAngloGold Ashanti is a leading producer of gold for various global markets—from jewelry to medical devices. Its 60,000-plus employees meet the world’s demand for gold by mining in inherently dangerous workplaces. Despite this hazardous environment, company executives have pursued the dual goals of employee safety and increased production. Far from being incompatible, executives believe they can achieve both.

To help accomplish this, the company has recently rolled out a global talent management solution anchored in psychometric testing. Key to the solution’s success is the high quality of the psychometric tests, paired with a high-tech, cloud-based platform that can be simultaneously rolled out to offices around the world.

With the technology now in place, executives can begin using the new talent management solution to identify employees who will excel in underground mining teams and those who are better suited for different positions. As the company moves to assess its entire workforce over the next two years, learning executives will work with individual managers on specific development issues. At the same time, they will also have built a robust research database to perform in-depth analyses on workplace safety and productivity.

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About the Author

Publication date: February 15, 2018

Christa Degnan ManningVice President, Solution Provider Research Leader | Bersin, Deloitte Consulting LLPChrista helps businesses align their workforce support strategies with third-party software and service partners and governance models to deliver functional capabilities and employee experiences that sup-port productivity, engagement, and efficiency. She also helps solution providers map their capabilities and go-to-market activities with solution buyers’ and users’ critical needs. With more than 20 years of industry experience, Christa holds a BA from Barnard College (Columbia University) and an MA from the University of Massachusetts.

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