Transcript Slide 1
Welcome!
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Preparing Responsible Managers for
the Mining and Metals Industry
Speakers
Bruce Hutton
Dean Emeritus and Piccinati Professor of Marketing,
Daniels College of Business, University of Denver
R. Anthony Hodge
President, International Council on Mining and
Metals (ICMM)
Moderator
Maureen Scully
Assistant Professor, UMASS Boston College of
Management
Agenda
Introduction (5 minutes)
Presentation—R. Anthony Hodge (10 minutes)
Presentation—Bruce Hutton (10 minutes)
Moderated discussion (20 minutes)
Introduction to Aspen resources (10 minutes)
Sustainability, Mining and
the MBA
R. Anthony Hodge, Ph.D. , P. Eng.
President, International Council on Mining and Metals
Professor, Mining and Sustainability, Queen’s University, Kingston
www.icmm.com
4
Change is the Dominant Characteristic of Our World
Social
Environmental
Economic
Cultural
Political
The operating environment is one of change; change
management is a dominant issue for mining as well
as students of business
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5
Solutions
Process plus Substance
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6
There are many valid perspectives
of Sustainable Development
Components
Environmental
Social (cultural,
political, health)
Economic
Institutional
Results
Human Well-being
Ecosystem Wellbeing
Capitals: Natural, Built, Human, Knowledge,
Institutional
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ICMM’s Sustainable Development Framework
For more information visit: www.icmm.com/sdframework
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Key Generic Topics for Coverage in Any Course
1.Historic Context: WW II to today
2.Theory and definitions: sustainability, development, sustainable development
3.The “non-renewable” characteristic of mining and its compatibility with sustainability
ideas
4.The evolution from “impact” assessment and management to “contribution”
assessment and management – capturing both positives and negatives as input to risk
and decision analyses
5.Real-life cases
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9
Key Issues Facing the Mining Industry
1.
What are fair systems of mineral taxation (for host countries, local communities and companies)?
2.
What can mining do about its contribution to global warming?
3.
How can mining build effective relationships with indigenous people and other interests that are
touched by mining activities?
4.
What is the right role for mining to play in poverty reduction in developing economies (north or
south)?
5.
How far does mining go in assuming government’s responsibility for services and infrastructure?
6.
How can industry and society together best assess the social, economic, cultural and political
contribution of mining over the long term?
7.
What systems of reporting and assurance need to be in place to track company performance across
the spectrum of sustainability issues?
8.
How can mining best enhance health and safety practices across the world?
9.
How can any mining company best introduce concepts of strategic change management?
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10
Preparing Responsible Managers for
the Metals and Mining Industry
The Newmont Executive Leadership
Program
Bruce Hutton, Ph.D.
Agenda
Background On Newmont Mining Executive
Leadership Program
Sustainable Development Framework
Mining—Do The Extreme Issues Faced Provide
Learning Opportunities?
Original Framing of the Program
“We need to build a new generation of executive leaders and
develop a consistent leadership culture.”
“Today we are good mine operators and our mine managers spend
90% of their time worrying about issues inside the fence line. In
the future, in order to earn our “Social License To Operate”
(SLTO), they must have additional skills and spend 75% of their
time dealing with issues outside the fence line.”
“Most all new gold deposits discovered in the future will be in
developing countries, which are a far more difficult and risky
environment to develop and operate mines. The future will be
far more challenging than the past…”
Wayne Murdy,
CEO (2004)
Newmont Executive Leadership Program
A transformational learning experience focused on:
— Providing a consistent leadership development platform for existing and
emerging Newmont leaders—common frameworks and language
— Integrating and aligning Newmont leaders with the business strategy
— Drive a culture shift in the company
Leading
People
Aligning,
engaging and
developing our
people
Business
& Financial
Acumen
Understanding
our business
end-to-end
Strategy &
Execution
Global
Values/Ethics
Planning,
executing and
measuring our
business
Earning our SLTO
and building
Reputational
Capital
Key Design Concepts
Comprehensive & Rigorous
Program
— Fully customized to Newmont
— 8 days—Interval (4-6 months)—8
days
— Work required outside of class
— Held in Denver (2 side trips)
— “Wow” experience
Cohort Style—Critical Element
— 16 participants/class
— Build relationships/networks
— Share experiences/best practices
— Learn from each other
— Cohorts carefully chosen
Mix of current execs and
emerging leaders
Diverse groups—global, cross-
functional, staff/line, etc.
Focused on Relevance &
“Stickiness”
— Mixture of Delivery Modes
— Experientials
— Integrating/Exercising the
Learning
Integrated Cases
Action Learning Projects (ALP’s)
Utilize ALP’s to advance key
Newmont initiatives
— Present recommendations to
Executive Leadership Team
Results To-Date
Completed 5 Cohorts
— All C-level execs have attended
— Become prestigious internally and a “right of passage”
Cohort recommendations have made large impact on direction
— ESR
— Management Process
Established Very Close Partnership
— GO Classes to Ghana and Peru
— Faculty involved in other activities (coaching, facilitation)
Sustainable Development
Economic
S.D.
Social
Environmental
NGO’s/Communities
Mining—SD Issues in the Extreme
Extraction Industry
— Economic
Highly Capital Intensive
Developing Countries
— Mining often first FDI
— Impoverished communities
Marginal Projects
Little infrastructure
Risk
High needs
— Environmental
Weak social institutions
Permitting
Poor education & healthcare
Extraction process (e.g.
No local suppliers
cyanide)
Activist NGO’s
— Social
Resettlement
End of mine life
“How much is enough?”
— Weak Government
Political Risk
Corruption
Regulatory Agencies
From Ethic to Strategy
Context
Risk
Macro
Micro
Opportunity
Internal
External
Direction
Vision
Current
Reality
Sustainability
Strategy
Execution
Economic
- Eco-efficiency
Social
- Socio-economic
Environmental
- Socio-environmental
Results
Access to Capital
- Financial
- Human
- Natural
- Social
- Manufactured
Value
- Profit
- Shareholder Value
- Reputation
Scorecard: Business Case for Sustainability
Measures of Business Success
— Financial Performance
Shareholder Value
Revenue
Operational Efficiency
Access to Capital
— Financial Drivers
Customer Attraction
Brand Value and Reputation
Human and Intellectual Capital
Risk Profile
Innovation
License to operate
Driving Value
Traditional
Financials:
Traditional
Intangibles:
SD / SRI
Intangibles:
Cash Flow
Price/Earnings
Price-to-Book
Earnings Growth
Etc…
Quality of Mgmt
Market Share
R & D Commitments
Patents
Brand Name
Partnerships
Etc…
Corp Governance
Environmental Issues
Community Relations
Workplace Issues
REPUTATION
Employee Relations
Human Rights
Etc…
Student Projects
How to effectively measure impact on Sustainable Livelihood?
—
5 Capitals—Social Capital most difficult
—
Baseline and On-going
How to help communities manage their own development?
—
Development Foundation governance
How to develop sustainable Small-Medium sized enterprises?
—
Serve Newmont effectively in Phase I
—
Diversify away from Newmont longer term
Resources
Aspen Center for Business
Education (Aspen CBE)
•
Information on Aspen CBE’s work:
http://www.aspencbe.org
•
Free, full-text teaching resources:
http://www.caseplace.org
International Council on Mining and
Metals (ICMM)
•
To subscribe to ICMM’s Good
Practice Newsletter, visit
http://www.icmm.com/mailing-list
•
For more information, visit
http://www.icmm.com or email
ICMM at [email protected]