Increasing challenges in a rapidly changing world
Not since the industrial revolution has the world experienced a period of such rapid change.
So if the world’s changing, why aren’t you?
Increasing complexity, rapidly-advancing technology and global economic uncertainty are just some of the challenges faced by every business in the 21st century with the mining and resources sectors amongst the hardest-hit.
Since 2000, mining industry productivity has dramatically declined. In Australia, it fell 50% in the years 2003 – 13. This was followed by a fall in commodity prices which led to a renewed focus on operational efficiency in the industry. However, the emphasis has been on traditional measures such as cutting costs and staff, and deferring maintenance and capital investment. These band-aid fixes are dangerously short-sighted and far from sustainable.
Managing today’s mining and resources operations is certainly more challenging than just 20 years ago, but why are they still struggling with issues other industries have resolved?
The answer is two-fold. Firstly, technology is advancing far faster than the ability to adopt it. And secondly, despite the rapidly-changing environment in which it operates, the sector still insists on doing things the way it did decades ago.
The core of the problem
Despite their lack of effectiveness, managers stubbornly try to make familiar, but outdated, business models work. They tackle issues individually, not collectively. They refuse to address the fundamental causes of their industry’s decline in productivity.