Competition has intensified dramatically over the past few decades, in particular with the recent economical correction that the world is experiencing. This has been a direct result of globalisation, and with it has brought increasing pressure upon businesses in most major industries, to perform at ever more efficient and effective levels in order to remain competitive and ethical.

The need to be more effective and efficient has become a continuous cycle of change, and the reliance on stability and market dominance, has become an obsolete business strategy. Government regulations such as labour, environmental, health and safety requirements, driven by the increased demand for localised socio-political and socio-economic transformation within third world countries, together with the expectations arising from the investment fraternities around risk management, and the inevitable Corporate Social Responsibilities, have placed mounting pressure on Mining Companies, to review People Practices and Standards.

These expectation changes and increased demands have inevitably resulted in a steady, yet profound drive towards new standards to which Capital Projects will need to align the People component within the various Project Study Phases. Operational Readiness from a people perspective is one of the most critical success factors of any Capital Project.

Over the next few months, a number of short articles will be published addressing this theme, and in particular issues pertaining to:

• The role of an Independent Technical Review for people related issues
• The various Project Study Phases and their contribution to People compliances issues
• What constitutes an appropriate Framework for People Studies within the various phases of Capital Project Studies?
• The Art of fluctuating Confusion with People issues: Capital studies, Operational Readiness & Steady State
• Integrating People Legal Compliance during project design
• The role of technical design parameters in developing and designing people practices

Housing provision was and remains a key strategy to attract and retain a stable and skilled workforce. However, with geographically diverse mining operations in South Africa and throughout the world, most Mining Companies have to find innovative ways to attract and retain skilled personnel to run their operations.

Mining Companies are facing pressures from a socio-political, as well as socio-economic perspective, with the non-core value chain functions such as housing and accommodation presenting significant challenges. The socio-political pressures are challenging the Industry’s paternalistic value set, represented by low cost or free accommodation, which are currently the strongest drivers for the transformation required within the Industry. These challenges represent true transformational opportunities, that will also create spin offs for the Industry, namely an end to migrant labour.

The Mining Industry is however still trying to come to terms with the reality that, it is through embracing this transformation; represented by housing and accommodation; that a sustainable labour model will be created – a model at the heart of the Mining Charter.

As a result, the trend in the Mining Industry, supported by legislation, has taken on a more strategic approach towards housing and accommodation. Especially given the fact that housing is a key component of the Social and Labour Plan, and subsequently has a significant influence, on securing (new order) Mining Rights required to realising future business opportunities and long term sustainability of operations.

The dilemma facing the Industry is that the Housing Provision Model of the past has become obsolete. Global performance pressures, the high cost of housing and limited natural ore reserves, makes it no longer viable for Mining Companies to continue with this business model. Subsequently, the Industry is moving away from housing provision to a Home Ownership Model that puts the responsibility for accommodation with the employee, rather than the company. The housing market in South Africa however, has its own unique challenges, particularly with regards to housing and service delivery, and Mining Companies continue to grapple with the requirements of Government to have all employees living in "sustainable human settlements" by 2012. This adds to the complexity of challenge related to home ownership.

Mining companies that wish to stay true to their transformational value of "People First" must address these issues and challenges, whilst not jeopardising the attraction and retention of skilled and competent employees, and hence productivity and long term sustainability.

Many businesses have started, many have failed and others are just prodding along.  Pareto created the “ever green” statistic theory of the 80-20 rule which says stick to 20% that will give you 80% results.  In business, we often forget how important this is.

Many entrepreneurs start their businesses with vision and passion.  They have a clear picture in their mind as to what they want to achieve and they passionately drive their business through various boundaries, closer and closer to that picture.  Although passion is a critical ingredient to making a success, there are important business and management requirements that will  ensure that these objectives are achieved. 

When entrepreneurs start a business they are usually technically sound, but they soon realise another skills-set is required to support their technical proficiency.  Management practices are important contributors to business success and management teams simply have to be effective in the following basics that constitute the 20% basics:

• Clear strategic direction
  A definitive and specific strategic objective that is clear for everyone. People need to understand how they can contribute;
• The right resources at the right cost
  Someone has to do the work.  Labour cost as high as it is… make sure you get the right person, at the right time at the right cost to help with execution of strategy;
• Financial and accounting practices
  For a small to medium size enterprise this is truly a basic you cannot neglect.  Many businesses have seen their fate due to a lack of cash flow management, debt management, profitability etc.;
• Content-area marketing
  Businesses have to be out there where customers can find them and together with a targeted sales and marketing strategy will be helpful in bringing in the deals and ensure profitability;
• Productivity and technology management
  Businesses never seem to understand the power of ensuring that productive staff adds direct value to the bottom line.  Technology is a tool that can help.

While these management practices are not perfect predictors of company performance and there might be others that are seemingly as important, these few areas will go a very long way in guiding any business through their life cycles.  Finally, it provides a simple framework for business owners to improve their business performance.

The challenge in many public and private sector organisations today is the alignment of individual and team performance with the objectives of the business. A surprisingly large proportion of top organisations implement performance management systems that focus only on individual performance. These systems often reward performance that is not directly related to the realisation of the organisation’s vision and strategy. The result is that many organisations fail to achieve their strategic goals.

Jack Welch stated that "Any company that aims to be part of the future has got to find a way to engage the mind of every single employee". It is imperative that organisations design their performance management system in such a way that it harnesses the unique capabilities of each employee in a manner that ensures that all employees are working in unison towards the tactical objectives of their teams. In turn, the tactical objectives of all teams within an organisation must be designed in such a way that their only purpose it to achieve the strategic goals and vision of the organisation whilst operating within a common belief and value system that is acceptable to their stakeholders.