Delivering on Purpose ù Strategy Development, Organisation Design and Planning the Work of the Business

Strong markets for metals and energy over the past five years have supported equity and debt market funding to enable a new group of mining juniors to emerge in control of economic resources, some in regions with high investment risk. As companies drive these projects to development, production and positive operating cash flow, their Boards and CEOs are confronting important questions:Having achieved initial success, what is our longer term purpose as a company? Does the purpose originally described in the Initial Public Offering to raise equity remain wholly relevant? Given that purpose, how do we understand the available sets of opportunities and related risks? Should we be acquiring new assets or other companies, or developing the existing portfolio? What commodity sectors and geographies should we focus on? Or should we be conserving funds until asset prices or project costs provide greater assurance of value to shareholders? How do we translate that purpose into tangible goals that shape and direct the work of people in the organisation? How do we get the right work done in the face of high turnover and competition for capable staff? Drawing on the authorÆs career experience and on work undertaken by Heuris Partners, this paper provides a practical CEO framework for strategy development, organisation design and on planning the work of the business in the mining industry.