G O L D F I E L D S

Unleashing the Potential of our People:

The Key to Unlocking a Culture of Continuous Improvement

OIM CONFERENCE

Martin Preece

1

Why is continuous improvement important?

The world has changed…

Workplace risks are increasing…

COVID-19

Rise of the GIG and

Shared Economy

Cloud Computing

and New Digital

Solutions

European

Sovereign Debt

Crisis

The Consumer

Landscape is

Changing

Russian-Ukraine

War

Climate Change -

Several natural

disasters

Rise of AI and

Data

Rise of Nationalism

(Trump, Putin)

#MeToo

BREXIT

Mass Adoption of

e-Commerce

Arab Spring

China Emerges as

the World's

Largest Economy

Crypto Currency

Business

Interruption (incl

Hyper Inflation

Natural

supply chain

Catastrophes

disruptions)

Pandemic

Changes in

ESG Evolution

Legislation and

Outbreaks

Regulation

Critical

Political Risks and

Tools and

Infrastructure

Technology

Violence

Blackouts

becoming Smarter

Shortage of Skilled

Workforce

Adopting a mindset of continuous improvement is essential to navigate the complex challenges of the 21st century

Page 2

Gold Fields

South Deep Mine

(Worlds 3rd largest gold

resource)

fails to deliver

for 12 years…

Annual Net Cash Flow

500

195

175

-

( 500)

( 206)

(1 000)

( 814)

( 838)

( 804)

(1 054)

(1 130)

(1 050)

(1 500)

(1 257)

(2 000)

(1 640)

(1 762)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

This was our challenge

Page 3

Historic Context

Context

South Deep is a critical

mine in Gold Field's

portfolio with strategic and commercial imperative to find the most optimal path to value

LOM in excess of 70 years, if operated as highly effective, capital intensive, high volume mine at depth

South Deep has the potential to unlock sustainable long- term value for Gold Fields

Challenges

  • South Deep touted as highly mechanized and efficient but delivered low productivities at high cost
  • Low capability levels in key technical and supervisory roles
  • Overall labour productivity was below median performance
  • High workforce numbers
  • Low levels of operating discipline due to poor management practices (range from geo-tech, blasting techniques, sequencing, maintenance etc.)
  • Unclear, complex and unproductive work systems
  • Management routines not streamlined and plethora of meetings - planned and unplanned
  • Contracting out of key activities to avoid risk compounded with poor contract management practices
  • Increasingly complex socio-political landscape

"You never change things by fighting the existing reality, build a new model that makes the existing model obsolete."

Buckminster Fuller

Page 4

Continuous improvement

plan

Not a New Concept…

actdo

check

It's not finding a method that works and sticking with it. It's looking at where you are today, setting

a goal and doing what needs to be done to reach that goal.

Once that goal is met, you start again, finding ways to improve further. It doesn't matter what kind of industry or business you're in - a

continuous improvement approach is necessary to keep ahead of the game.

Page 5

South Deep Frontline Leadership Programme

Results

Daily Benefits Realisation Measures (BRM)

28

30

202101

Finance

Internal Business Processes

No

1

2

3

4

5

6

7

8

9

10

11

BRM Measures

Performance Metric

Area

Average Gold Recovered

Minewide

(Gold recovered in kilograms, Month)

Safety Engagement Index

Minewide

1. Development

Mining

Average metres advanced per drill-rig

(Metres per drill category, Monthly)

Mining

2. Destress

Longhole stoping tonnes per Rig

Mining

(Monthly)

Stoping Compliance

Mining

(Monthly)

Mine To Standard

Mining

(Mining Error Factor, Monthly)

Ounces per Employee

Mining

(Monthly)

1. Drill Rigs

Engineering

2. LHS

Engineering

Mean Time Between Failure

(Hours by equipment, Weekly)

Engineering

3. LHD's

4. Trucks

Engineering

Monitoring

Control Chart

Change

2018

2019

2020

2021

2022 YTD

2022 YTD

Avg Act

Avg BP

99%

407

576

588

758

808

796

124%

0,49

0,81

0,68

1,10

1,10

0,85

124%

40,4

78,2

72,1

85,2

90,5

98,5

268%

22,8

40,4

71,9

84,9

84,0

73,9

76%

6 708

11 966

12 968

14 345

11 778

14 098

10%

79%

90%

89%

87%

85%

-48%

52%

37%

29%

29%

27%

35%

112%

2,60

4,07

4,03

5,06

5,5

5,5

509%

2,2

8,7

11,3

16,1

13,4

7,0

121%

3,3

7,0

8,1

4,5

7,3

7,0

130%

6,6

6,9

9,5

16,0

15,2

10,0

73%

6,6

8,6

11,0

13,5

11,4

10,0

From the outset, we had to distil the key issues that would drive the turnaround in both quantity and quality

Page 6

When you change mindsets, you influence behaviour, which shifts culture to drive continuous improvement.

7

Shape the

culture

1

Shaping the Culture

Develop a capable, accountable and engaged workforce as a key enabler for the creation of sustainable improvement

Strategic Intent Clarity:

Sustainability Focus:

  • Defined and communicated a clear Purpose and Strategic intent
  • Maintained consistent messaging for focus and alignment

Culture & Change

Management:

  • Siyaphambili program for balanced accountability
  • Foster a resilient culture through symbols, rituals, and habits
  • Culture creation workshops
  • Cultivated synergies across improvement themes
  • Value-drivenbusiness plan
  • Waste elimination

Humanising Leadership:

  • Restored dignity and respect in leadership
  • Targeted hiring to strengthen leadership
  • Exit leaders misaligned with our goals
  • Clear Expectations & Accountability

Page 8

Build

capability

2

Building Capability

Empowering Excellence: Frontline Capability and Development as Catalysts for Continuous Improvement

Role

Assessments:

How well I

execute my role

Competency assessment:

Are there GAPs

Effectiveness

in required

competencies

Perceived

Assessment:

Leadership

How well I use

Capability:

the management

Perceived impact

& leadership

on those around

tools (Anchors)

me

INTERGRATED MEASUREMENT

Frontline managers and leaders assessed on four dimensions, which determines the development requirements

PROCESS CRITIQUES AND DAY PLANNERS FORMULATION

  • Teams critique their daily process to highlight key areas of challenge (emerging themes)
  • A day planner was formulated, detailing key activities, outputs and requirements of a typical day

DEVELOP

Frontline leaders training teaches how to Manage Self, Manage Others, Manage a Team and Manage the Systems for success

Page 9

Manage the work

3

Manage the Work

On-the-Job Coaching and Continuous Assessment for Toolsets, Skillset, and Mindsets against a maturity framework

5 Stages of Management Maturity

Stage 5

Stage 4 + Leverages tools & skillsets through ongoing

cinnovation. Advise others on continuous performance

Innovation

improvement.

Stage 4

Stage 3 + Recognises inter-relationships within the internal

value chain: Interprets performance trends, and makes

Ownership

suggestions on & drives improvement

Shift Plan, execution & review part of daily routine

Competent

Stage 3

Can access & interpret shift performance information.

Conceptual Can articulate reasons behind shift performance.

Engages team effectively through the team meeting

18-60

months

Movement up levels slows as complexity increases

Stage 2

Sees benefit & starts to take a more structured approach to

shift planning & control. Feedback

Compliance

Becoming more structured & consistent

0-06

months

Stage 1

Reactive work style, unstructured approach to shift planning

Informal

and control. Change Resistant

Page 10

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Disclaimer

Gold Fields Ltd. published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 13:39:41 UTC.