INTERNATIONAL MINE MANAGEMENT MELBOURNE, OCTOBER 2006

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INTERNATIONAL MINE MANAGEMENT MELBOURNE, OCTOBER
2006

• Leadership in the minerals sector challenges
  and opportunities for management of the 21st
  century

Don Larkin FAusIMM CEO, The AusIMM
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MY PROPOSITION

• Economic output f
• (land, labour, capital, environment)

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1992 Rio Summit

• Sustainable development
• Natural capital
• Manufactured capital
• Human capital
• Social capital

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SEVEN BASIC PROPOSITIONS

• Significance of labour in output equation
• Significance of labour in sustainability
• Relatively low employer of labour
• No one predicted skills shortage
• Cyclical nature of industry labour a commodity
• Culture of industry needs to change (Aesops
  fable)
• Our demographic destiny

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EXHIBIT 1
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RESPONSES TO A VISION FOR 2020
THE CHANGING WORLD The New Labour Market
Retirement disappears ? Career planning beyond
50 ? Changes to superannuation ?
Improving educational attainment ?
Knowledge management New generation of older
workers ? Ageing workforce
benchmarking ? Lifelong learning ? See
flexibility below
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RESPONSES TO A VISION FOR 2020(continued)
THE CHANGING WORLD The New Labour Market Three
generations in the ? Understanding and
generation workplace specific management
skills ? Communication and collegiate
skills ? Empathy ? Satisfaction
reality/expectations
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RESPONSES TO A VISION FOR 2020 (continued)
THE CHANGING WORLD The New Global Economic Order
China and India emerge as ? Multiple culture,
language and massive economies time
zones ? Promote global opportunities ?
Negotiation and cultural sensitivity
Offshoring takes off, whole ? Managing
spatially dispersed economy affected
networks, plants, attitudes and
suppliers ? Manage large, complex
adaptive systems of businesses ?
Around the clock access
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RESPONSES TO A VISION FOR 2020 (continued)

• THE CHANGING WORKPLACE
• Focus on human ? Human resources vital component
  
• optimisation of business planning, budgeting,
• risk management
• ? Talent, knowledge management,
  mission critical employees
• ? Graduate programs, CPD, mentoring,
  succession planning, etc.
• Workplace flexibility ? Individual contracts
• becomes key to ? Flexible environments and
  terms
• attracting and retaining and conditions of
  employment
• staff ? Telecommuting, flexi time, rosters
• ? Part time, parental leave, career
  break, etc.
• ? Google environment

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RESPONSES TO A VISION FOR 2020 (continued)

• THE CHANGING WORKPLACE
• People and creativity ? Encourage diversity and
  creativity
• logic emerges ? Indigenous and new sources of
  labour
• ? Outsourcing contract management
• Taking accountability ? Improving child care
  facilities
• for outcomes for ? Improving health
• women ? Undertaking welfare reform
• ? All the above regarding
  flexibility

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RESPONSES TO A VISION FOR 2020 (continued)

• THE CHANGING MINDSET
• Servicing all ? Higher order communication
  skills
• stakeholders and transparency ?
  Emphasis on social interactions/
• complex interactions
• Cult of the top team ? Team skills leading
  teams
• ? Communication/emotional
• intelligence skills
• ? Recruitment, delegation and
  motivation

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RESPONSES TO A VISION FOR 2020 (continued)

• THE CHANGING MINDSET
• Experts dominate ? Building and maintaining
  personal
• expertise and deep industry or
• systems expertise
• ? Use of independent specialists/
• contractors
• ? CPD
• Managing substantial ? Financial/health/superannua
  tion
• wealth advice ? Work and life choices
• ? Extent of working life/when to peak

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IN SUMMARY LEADERSHIP CHALLENGES

• Doing more with less
• People leadership and management
• Reducing uncertainty
• Understanding and addressing demographic destiny
• Mission critical employees management of talent
  and knowledge
• Managing creativity and embracing diversity
• Emphasis on complex interactions
• Forecasting and planning
• Not just a commodity

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LAST WORDS

• Reality
• Satisfaction ____________
• Expectations

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• www.ausimm.com