Engaging embedded capabilities. Enabling an owner-mindset through the Kumul approach
Marty McKowen
Business Optimisation Project Manager & Coach | Ex-McKinsey | Transformation | Management Systems | Workplace Mindfulness | Leadership Coaching and Capability Development | Training Management | AIATSIS
Wantok: Wok Bung Wantaim (Colleagues: Working Together)
The Objective To foster a culture of trust, proactiveness, and ownership among frontline workers and middle managers, thereby lifting overall site performance and operational efficiency by 30%.
The Challenge The mining industry in Australasia faces numerous challenges, including fluctuating global market demand, volatile commodity prices, and ageing infrastructure. Companies must focus on sustainable and resilient operational practices to remain competitive in the long term and uphold a social licence to operate.
A mining operation in the region was grappling with serious performance issues at a major gold mine, threatening immediate productivity and future growth. Chronic leadership turnover, declining productivity, and a breakdown in trust and morale among frontline workers highlighted the urgent need for transformative change. The site's culture also showed uneasy relationships between expats and national and local staff.
Previous top-down initiatives had failed to deliver lasting improvements, mainly due to the high turnover of leadership. Productivity had fallen to a point where the site generated less than USD $20 million in free cash flow annually despite operational spending exceeding $1 billion. Targets were routinely missed, and a culture of excuses replaced accountability. This entrenched acceptance of poor performance and diminished trust demanded a fundamental cultural shift to enable meaningful and sustainable progress.
The Approach To address these challenges, the Kumul Approach was developed and implemented. This program leveraged insights from frontline leaders, who synthesised the best practices of multiple consultants into an actionable strategy tailored and trialled in several countries for real-world challenges. The program emphasised deep engagement, inclusivity, and empowerment across all levels of the workforce.
The approach was developed, in the main, by mining professionals from the worlds largest mining contractor and some who had been through previous programs in Africa and saw the benefit of this approach. We were all coaches there to work with our client, and not consult. The coaches came from: Indonesia, Australia, South Africa, Croatia, Portugal, and included people who had been Mining General Manager, Mining Company Director, Senior Mine Planners, Drill & Blast Manager, Mining Operations Manager, Mining Superintendent, Training Manager, and mining consultants who all brought their area of expertise but even more important, their passion to develop other people to be successful.
Core Elements of the Kumul Approach:
1. Frontline Focus Groups: Focus Groups were a cornerstone of the Kumul Approach, ensuring every worker felt engaged and valued. These sessions included:
o Introduction to the Operation: Providing a clear overview of the site’s processes and systems.
o Bonus Systems: Explaining how workers could maximise bonuses through improved performance and teamwork.
o Operation Value Chain: Offering a step-by-step understanding of the value chain and how each role contributes to the site’s success.
o Key Drivers and Metrics: Educating workers on critical operational drivers and metrics influencing performance outcomes.
o Operational Observation: Facilitating opportunities for workers to identify what is running well and what can be improved.
o Ideas Register: Encouraging workers to propose improvements, which were recorded and actioned through the Ideas Register, promoting a culture of continuous improvement.
2. Management Operating System: A structured system was developed to align operations, starting with hourly Short Interval Control and extending to Life of Mine Planning. An emphasis on Weekly/Daily routines ensures operational alignment and productivity.
3. Frontline Leadership Development: A robust training framework was created to empower frontline leaders with essential tools and techniques, including:
o Planning the Day: Understanding the daily plan and targets and structuring daily activities and resources for optimal efficiency.
o Preparing for the Day: Ensuring readiness regarding resources, personnel, and systems.
o Area Inspections: Conducting proactive checks to ensure readiness and safety.
o Effective Shift Starts: Setting clear expectations and goals for the shift.
o Hourly Short Interval Control: Monitoring progress and addressing deviations in real-time.
o Observation and Improvement Identification: Regularly observing operations to identify and implement opportunities for enhancement.
4. Development of Systems and Processes: Frameworks and tools were implemented to maximise utilisation and productivity, ensuring alignment between operational activities and long-term business goals.
Tools To support the implementation, the following tools were integral:
· Leadership Development Training: Equipping front-line and middle managers with the tools to practice visible felt leadership, fostering trust and inclusion.
· Smart Cards (Save Kad): Each participant in the leadership development program received a set of Smart Cards (Save Kad) that provided the frameworks and the tools required for their daily routines. They formed a practical guide containing frameworks, formats, and step-by-step instructions to enable leaders and workers to use systems effectively.
· In-Field Coaching: Combining Focus Groups, leadership Training, and ongoing coaching to reinforce core values and develop skills.
The Impact The Kumul Approach delivered measurable operational and cultural improvements:
Cultural Benefits: Beyond operational metrics, the program fostered a deeper sense of trust, collaboration, and inclusivity across the workforce. Focus Groups created opportunities for operators, maintainers, cleaners, barge operators, engineers, and cooks to engage in honest conversations, build connections, and understand each other’s challenges. These relationships often extended beyond the sessions, strengthening team dynamics and fostering a supportive community.
Additionally, the initiative created a more engaged workforce with a clear understanding of how each role contributed to the mining process. Supervisors were empowered to respond proactively to challenges, and the workforce embraced a shared responsibility for success.
This comprehensive, bottom-up approach enhanced immediate performance and established a resilient foundation for sustained productivity and long-term success in a highly competitive and challenging environment.