From Operational to Strategic Management

Mining companies in Australia have grown in size and complexity over the past 20 years. The same period has seen exten- sive changes in the operating environment, with greater competition and intensified in- dustrial and social pressures placing new demands 'on mining activity. The new condi- tions require a management approach that emphasises strategic planning rather than operational efficiency. Strategic management evolves through four distinct phases, namely, financial planning, forecast-based planning, externally oriented planning and 'true' stra- tegic management. The most difficult transi- tion to make is from Phase 2 (forecast-based planning) to Phase 3 (externally oriented plan- ning) since management is often too involved in operations to find time to develop and main- tain a strategic orientation towards the mar- ket and competitors. Reorganisation of re- sponsibility for operations and improved op- erational processes enable management to concentrate on external opportunities.