cpa mining & resources conference 2012
DESCRIPTION
Dynamic Mining organisations using work forces innovation to drive productivityTRANSCRIPT
Leading Through Uncertain Times, what differentiates dynamic organisations
23 November 2012
Rory GreggPartner – Operational AdvisoryGrant Thornton Australia
www.rorygregg.com@rory_gregg#cpacongress
over 120 partners &
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1,500 professionals
Helping dynamic leaders grow their businesses
AGENDA Global Dynamism Index (GDI 2012)Challenges facing mining & resources leadersStrategies for leading through uncertaintyQuestions
AGENDA Global Dynamism Index (GDI 2012)Challenges facing mining & resources leadersStrategies for leading through uncertaintyQuestions
What is it“The GDI is a series of performance indicators that analyses and measures the resilience of 50 diverse economies and their capacity to recover from a change in economic circumstances.”
Global Dynamism Index (GDI 2012)
Global Dynamism Index Business Operating
Environment
Economics & Growth
Science & Technology
Labour & Human Capital
Financing Environment
Key Findings Top Economies(GDI 2012)
Business Operating
Environment
Science & Technology
Labour & Human Capital
Finland
Sweden
Israel
Singapore
ChinaIreland FinlandSweden
Argentina
Slovak Republic
Uruguay
Economics & Growth
Argentina
Uruguay
Financing Environment
Finland
France
Key Findings Regional Insights (GDI 2012)
51Middle East and
Africa
66.1Nordic
59.2Western Europe
62.9North America
53.8Latin
America
55.7Eastern Europe
59.3Asia Pacific
55Growth8
60G7
57All
Countries
Key Findings Country Insights (GDI 2012)
Singapore72.1
Most dynamic
Finland70.5
Sweden69.6
Israel69.3
Austria66.1
TOP 5United States64.1
China61.4
No.10No.20
Australia65.6
No.6Best - Business operating environment- political stability (96)
Worst – Financing environment- inbound M&A deals (6)
Key Findings Where Australia Stands?
51.0Middle
East and Africa
66.1Nordic
59.2Western Europe
62.9North
America
53.8Latin
America
55.7Eastern Europe
59.3Asia
Pacific
Top 3 Ranking
1 - Singapore (72.1)
2 - Finland (70.5)
3 - Sweden (69.6)
Australia & New Zealand
6 - Australia (65.6)
11 - New Zealand (63.9)
Bottom 3 Ranking
48 - Greece (40.2)
49 - Nigeria (40.2)
50 - Venezuela (37.4)
AGENDA Global Dynamism Index (GDI 2012)Challenges facing mining & resources leadersStrategies for leading through uncertaintyQuestions
Business Operating Environment (91)Top 15% of economiesStrong political stability
Economics & Growth (59)Real GDP growth low compared to top performing economies
Science & Technology (51)R&D as a % of GDP was low compared to top performing economies
Labour & Human Capital (64)Aust labour productivity rates and % of workforce under 30 is low compared to high performing economies
Financing Environment (63)Ranked low in growth of value of inward M& A deals but high in financial regulatory systems
What does this mean for Australia Global Dynamism Index
Business Environment
91
Challenges facing Australian leaders
Increased focus in compliance & risk
High corporate tax rates
Cost of doing business in Australia
Labour & Human Capital
64
Challenges facing Australian leaders
Attracting & retaining talent
Increase pressure on wage costs
Constrained by traditional resourcing models
Replenishing talent pool
Financing Environment
63
Challenges facing Australian leaders
Accessing capital for growth
Identifying suitable M&A targets
Appetite for risk
Economics & Growth
59
Challenges facing Australian leaders
Population size continue to constrain GDP growth
Low productivity rates
Geographical isolation
Science & Technology
51Challenges facing Australian leaders
Under investment in technology
Over reliance on US/Europe to lead technology innovation
Slow to adopt new technologies & ways of working
JUMEX Survey 2012 Key findings
#1 Issue for 2013Availability of equity capital
68% of mining companies planning to raise capital in 2013
Competition for scarce capital
Investigating alternate funding models
Joint ventures, asset sales, mergers
Mining & Resources 2012 - 13 Key Priorities
2012 PriorityGeneral stability of financial markets
2013 PriorityAvailability of equity funding
2012 PriorityAvailability of equity finding
2013 PriorityStability of financial markets
2012 PriorityVolatility of commodity prices
2013 PriorityVolatility of commodity prices
2012 PriorityAvailability of skilled workforce
2013 PriorityAvailability of debt funding
2012 PriorityAvailability of equipment
2013 PriorityAvailability of skilled workforce
AGENDA Global Dynamism Index (GDI 2012)Challenges facing mining & resources leadersStrategies for leading through uncertaintyQuestions
Conquer local markets before growing offshore
Australia’s population limits growth options for many businesses
80 percent of large Australian businesses accept the need to expand into Asia1
Don’t be afraid of doing business in international markets
Strengthen your ties and business in Asia and emerging economies
Leadership Myths Leadership Realities
1 Grant Thornton Australia, 2012
Establishing aspirational goals is the key to guiding an organisation to success
Don’t mistake vision for strategy
Focus on iterative and rapid execution to achieve performance improvement
Don’t be afraid to change tactics or strategy
Leadership Myths Leadership Realities
Focusing on improving existing products and services is a low risk path to future profits
"Doing the same things better" is not necessarily the path to future success
Fluctuating terms of trade, looming skills shortages and new technologies are major sources of future instability
Leaders need to constantly question assumptions and explore innovative alternatives
Leadership Myths Leadership Realities
Skilled workers are easily hired Adopt a broader range of workforce and resourcing strategies is essential for future sustainability.
Explore outsourcing, talent retention, flexible work models
Develop tactics for lifting use of women and mature age workers. Women are paid up to 19% less than male counterparts2
Leadership Myths Leadership Realities
2 Australian Bureau of Statistics 2012
Workforce productivity only relates to the number of hours employees work divided by total output
Productivity is not just about wages. It depends on a combination of factors.
Redesign work practices to reduce inefficiency and duplication.
Consider impact of employee empowerment and engagement, training, workforce utilisation, output quality and customer satisfaction measures3
Leadership Myths Leadership Realities
3 Dept of Workplace, Employment and Education
We invest a lot in technology, and it is a high priority
Innovation is not linked to IT and infrastructure. It is a cultural issue
IT investment has plateaued over the past 18 months with the Government sector performing worst, Energy sector highest4
IT infrastructure can sometimes make it harder to change workflows, and stifle innovation
Focus on the customer experience, rather than internally focused projects
Leadership Myths Leadership Realities
Strategies for leading through uncertaintyAustralian business leaders need to focus on what matters…
Manage Risk
Prudently
1Incremental
Planning
2Technology
EnabledService Delivery
3 Flexible Workforce
Planning
4
AGENDA Global Dynamism Index (GDI 2012)Challenges facing mining & resources leadersStrategies for leading through uncertaintyQuestions
RORY GREGGPartner – Operational Advisory
T +61 2 8297 2531 E [email protected]#CPACongress @rory_gregg www.rorygregg.com
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