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INTERNATIONAL MINE MANAGEMENT MELBOURNE, OCTOBER 2006

INTERNATIONAL MINE MANAGEMENT MELBOURNE, OCTOBER 2006. “Leadership in the minerals sector – challenges and opportunities for management of the 21 st century. Don Larkin FAusIMM CEO, The AusIMM. MY PROPOSITION. Economic output = f (land, labour, capital, environment). 1992 Rio Summit.

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INTERNATIONAL MINE MANAGEMENT MELBOURNE, OCTOBER 2006

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  1. INTERNATIONAL MINE MANAGEMENT MELBOURNE, OCTOBER 2006 “Leadership in the minerals sector – challenges and opportunities for management of the 21st century Don Larkin FAusIMM CEO, The AusIMM

  2. MY PROPOSITION Economic output = f (land, labour, capital, environment)

  3. 1992 Rio Summit Sustainable development • Natural capital • Manufactured capital • Human capital • Social capital

  4. SEVEN BASIC PROPOSITIONS • Significance of labour in output equation • Significance of labour in sustainability • Relatively low employer of labour • No one predicted skills shortage • Cyclical nature of industry – labour a commodity • Culture of industry needs to change (Aesop’s fable) • Our demographic destiny

  5. EXHIBIT 1

  6. RESPONSES TO – A VISION FOR 2020 THE CHANGING WORLD The New Labour Market Retirement disappears▪ Career planning beyond 50 ▪ Changes to superannuation ▪ Improving educational attainment ▪ Knowledge management New generation of older workers▪ Ageing workforce benchmarking ▪ Lifelong learning ▪ See flexibility below

  7. RESPONSES TO – A VISION FOR 2020(continued) THE CHANGING WORLD The New Labour Market Three generations in the ▪ Understanding and generation workplace specific management skills ▪ Communication and collegiate skills ▪ Empathy ▪ Satisfaction = reality/expectations

  8. RESPONSES TO – A VISION FOR 2020 (continued) THE CHANGING WORLD The New Global Economic Order China and India emerge as ▪ Multiple culture, language and massive economies time zones ▪ Promote global opportunities ▪ Negotiation and cultural sensitivity Offshoring takes off, whole ▪ Managing spatially dispersed economy affected networks, plants, attitudes and suppliers ▪ Manage large, complex adaptive systems of businesses ▪ Around the clock access

  9. RESPONSES TO – A VISION FOR 2020(continued) THE CHANGING WORKPLACE Focus on human▪ Human resources vital component optimisationof business planning, budgeting, risk management ▪ Talent, knowledge management, mission critical employees ▪ Graduate programs, CPD, mentoring, succession planning, etc. Workplace flexibility ▪ Individual contracts becomes key to ▪ Flexible environmentsand terms attracting and retaining and conditions of employment staff▪ Telecommuting, flexi time, rosters ▪ Part time, parental leave, career break, etc. ▪ Google environment

  10. RESPONSES TO – A VISION FOR 2020(continued) THE CHANGING WORKPLACE People and creativity▪ Encourage diversity and creativity logic emerges ▪ Indigenous and new sources of labour ▪ Outsourcing – contract management Taking accountability ▪ Improving child care facilities for outcomes for ▪ Improving health women▪ Undertaking welfare reform ▪ All the above regarding flexibility

  11. RESPONSES TO – A VISION FOR 2020(continued) THE CHANGING MINDSET Servicing all ▪ Higher order communicationskills stakeholders and transparency ▪ Emphasis on social interactions/ complex interactions Cult of the top team ▪ Team skills – leading teams ▪ Communication/emotional intelligence skills ▪ Recruitment, delegation and motivation

  12. RESPONSES TO – A VISION FOR 2020(continued) THE CHANGING MINDSET Experts dominate ▪ Building and maintaining personal expertise and deep industry or systems expertise ▪ Use of independent specialists/ contractors ▪ CPD Managing substantial ▪ Financial/health/superannuation wealth advice ▪ Work and life choices ▪ Extent of working life/when to peak

  13. IN SUMMARY – LEADERSHIP CHALLENGES • Doing more with less • People leadership and management • Reducing uncertainty • Understanding and addressing demographic destiny • Mission critical employees – management of talent and knowledge • Managing creativity and embracing diversity • Emphasis on complex interactions • Forecasting and planning Not just a commodity

  14. LAST WORDS Reality Satisfaction = ____________ Expectations

  15. www.ausimm.com

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