Successful people transformation for a large Copper mine in Africa

ABOUT THE COMPANY

 

BACKGROUND & PRINCIPLE OPERATIONS

Vedanta Resources plc is a FTSE 100 metals and mining group with annual sales of $1.9bn. Their principle operations are located in India, with a major market share in each of the main metals: aluminium, copper, zinc  and lead.  There are also substantial copper operations in Zambia and a copper mine in Australia.
Vedanta has a strong track record in managing operations and improving costs and output.  Their Indian zinc and copper operations rank in the top quartile of global cost efficiency. It company was listed in London in December 2003

VEDANTA’S GOAL

To generate strong financial returns and create a world-class metals and mining group.

VEDANTA STRATEGY

 TO CONSTANTLY OPTIMISE THE PERFORMANCE OF THE EXISTING ASSETS:
This includes initiative to debottleneck plants, improve efficiency, expand output, reduce costs. Most projects in the area include a new power plant and zinc smelter at Chanderiya, expansion of the Rampura Agucha zinc mine and the expansion of the Tuticorin copper smelter

 TO FINANCE GREENFIELD GROWTH:
There are currently two large Greenfield Projects, the 250,000 TPA Gami based aluminium smelter at the Korba complex and the proposed 1.0 milion tpa alumina refinery in Orissa. Both offer attractive opportunities and future growth.

 CONSOLIDATE THE GROUP STRUCTURE:
Vedanta will seek to increase its  direct ownership in the underlying business and simplify the structure.

 LEVERAGE ESTABLISHED SKILLS:
With a proven transactional, operating and turnaround skills, Vendanta will seek further growth and opportunities in India and elsewhere in operations where the skills can provide a competitive advantage.

In 2004 Vedanta acquired 51% stake in Konkola Copper Mines, Zambia, the largest producer of copper on the Zambian copper belt with annual capacity of 200,000 metric tones of copper and employing more than 10000 workers.

THE CONTEXT & THE NEED FOR INTERVENTION

 With the multiple changes in the ownership pattern in the last few years, and the associated cultural attributes, the company has had a long transformation journey

• During the current transition process, post acquisition, there were issues around People Resistance to change largely due to lack of professional practices, ownership, commitment and suspicion. There were Internal politics at play and the transformation journey was taking more time than expected

 The new management wanted to pursue four key initiatives:

• improve output

• reduce costs

• step up operation, and pursue future growth

 In keeping with the need to change, align and grow, OD Alternatives Consultancy was brought in to address, People Transformation as one of the major issues to be addressed in the transformation journey

 

ODA METHODOLOGY IN SUPPORTING THE TRANSFORMATION

This Intervention addressed around 1500 employees. Three consuntants spend 90 days onsite and around 20 days in Designing, Pre-work and Research.

 

PRE WORK & DIAGNOSTIC STAGE:

Conducted Climate Surveys & Deep Structured Interviews to understand the existing culture of the organization & the change resilience amongst employees.

 

STAGE 1:  April 2007
INTERVENTION FOR THE TRANSFORMATION PROJECT TEAM

Our intervention started with the Project team that was responsible for the transformation Initiative. The entire project team went through a two day interventions focusing on creating escape velocity, addressing people issues and building team spirit.
The article that came later in Kokola news explains this more in detailhttp://www.kcm.co.zm/article_details.php?Article=5

 

STAGE 2 : August/September  2007
REACHING OUT TO THE ORGANISATION WITH A CHANGE STORY AND PERFORMANCE CULTURE

• Change Leaders Workshop: Created a group of professionals to communicate the message of change and transformation to every individual employee of the organization. These two day workshops addressed 200 people from three IBU’s. The idea was to create strong change leaders in the middle management who will take the transformation message to all corners of the organisation

• Train the Trainer workshops: There was strong need to reach out to large number of workers and create a climate of trust and positive energy and this could be done only through training internal resources. We made sure some of the union representatives also go through this training. There was a total of 40 people trained and certified who could do a one day inspirational session for the workers. The appreciative Inquiry model was used in these workshops

• Workshops for Workers: Large number of workers went through an Appreciative Inquiry processes as one day workshops and Trainers whom we had certified in KCM assisted in these workshops to get a hands on feel to facilitate further workshops. Around 1000 people went through these one day workshops.

 

STAGE 3: April/May 2008
ALIGNING THE NEW TEAMS

• As the IBU’s were now restructured around several SOU(strategic operating units) a need to align new teams  to the new business model was felt and we did two day workshops for around 200 Middle management professional in Konkola IBU and Enkana IBU each.

LEADERSHIP WORKSHOP

• Nkana IBU felt a need to transform its operations to become more efficient and cost effective. We did a Visioning exercise with senior leaders and did a two day leadership workshop with upper Middle management to create leaders who will spearhead this transformation in the next one year

• A compelling case for Transformation was created and every workshop was kicked off by a senior leader who gave the message perform or perish and  the two day workshop revolved around five leadership competencies

• The participants were put through a 360 assessment on these below mentioned five competencies as pre work before the workshops

Lead by example - Inspire a Shared Vision - Break out of the comfort zone - Empowering others - Encourage the Heart

LEAD BY EXAMPLE: Leaders create standards of excellence and then set an example for others to follow. They Unravel bureaucracy when it impedes action; put up  signposts when people are unsure of where to go or how to get there; and create opportunities for victory.

INSPIRE A SHARED VISION: Leaders envision the future, creating an ideal and unique image of what the organization can become. Leaders enlist others in their dreams by breathing life into the visions and get people to see exciting possibilities for the future.

BREAK OUT OF COMFORT ZONE: Leaders search for opportunities to change the status quo. They take risk and accept the inevitable disappointments as learning opportunities.

EMPOWERING OTHERS: Leaders foster collaboration and build spirited teams. they strive to create an atmosphere of trust and human dignity, and make each person feel capable and powerful.

ENCOURAGE THE HEART: Leaders recognize and celebrate accomplishments. They make people feel like heroes.

PROBLEM SOLVING IN THE JOURNEY OF PEOPLE TRANSFORMATION

Culture Sensitivity

There was a need for specific intervention to address the differences of opinion and conflicts between Indian and African executives.

A critical mass went through a one day intervention on Culture Sensitivity & Conflict Resolution. This focused on:

• Exploring a common ground and understanding the existing pain areas.

• Both groups expressed their own perception about each other and the issues arising in the workplace around culture.

The facilitation unearthed the hidden dimensions of conflict & the teams agreed to common working norms which would define the organizational culture and deliverables.

Conflict between commercial and the operations department

• The past organization did not have a defined commercial / purchase process, most of the purchase decisions were taken by the operations department. A huge conflict arose between the operations and commercial department when the new organization built a powerful purchase team

• By bringing both commercial and operations team through a series of facilitated sessions we addressed the conflicts and aligned the functions

 The Achievements

• Addressed the people transformation issues, and aligned the workforce to the transformation agenda by creating the right mindset, skills and urgency.

• Helped create the urgency for change among all layers of the organisation and build ownership and responsibility among the Middle level

• Created people management strategies like rewards and reorganization and facilitated feedback sessions with the senior management.

• Mapped employees on leadership competencies suggested a  development center approach

 Voice of the Customer

“I have found OD Alternatives interventions directly linked to Business and highly effective in aligning everyone to a “Business Goal.” They really added value in creating escape velocity among employees for the change.”

                                                                                         - C P. Baid - Head Operations