COMBDF Members - Botswana Chamber of Mines

Report
COMBDF STRATEGY
DEVELOPMENT
PROGRESS REPORT
11 May 2012
JOSEPH RAMOTSHABI
COMBDF embarked on a strategy review process during 2011
culminating in a strategy formulation workshop held at the
BCM boardroom in Gaborone on 27th – 28th October 2011.
The workshop delegates comprised mainly of Supply Chain
Managers from the member Mining Companies as they are
the main drivers for Procurement & Logistics Business
Development at the mining operations.
The workshop was facilitated by Innolead Consulting.
Joe Ramotshabi
Business Development Manager – Debswana
(Henceforth referred to as ‘Consultant’)
Ronnie Yane
Head of Department -Material Management – Tati
Nickel
Miriam Raborokgwe
Materials Manager - BotAsh
Basimane Tlhaloganyang Warehouse & Logistics Superintendent - BCL
Sujeet Parbat
Procurement Manager – African Copper
Shingani Bobeng
Supply Chain Manager - BCL
Kelvin Mwewa
Materials Manager – Debswana Jwaneng
Ignatius Nfana
Materials Manager – Debswana Orapa & Letlhakane
France Mashinyane
Business Development Manager- BCL
Significant amount of money spent by the mining industry on
procuring goods and services from foreign markets
The mining Sector dominate the country’s GDP
These funds could be used to enhance the development and
diversification of the local economy
Attract and grow FDI through partnering with citizen companies
This initiative has a great cost saving potential for the mining
houses through discounted prices for the goods and services
The COMBDF keen to work with MTI, BEDIA, LEA, BOBS, BDC and
so forth to achieve full potential of this strategy
BENEFIT S TO MINING HOUSES:
Efficiency and cost savings for the participating mining houses
 Enhanced reputation & public relations
Availability of local strategic suppliers
Meaningful contribution to Botswana’s economic development
BENEFIT S TO THE NATION:
Economic Diversification
Citizen Economic Empowerment
Job creation
Beneficiation
STRATEGY DEVELOPMENT
INITIATIVE
The primary purpose of the COMBDF strategy
development process is to formulate a
comprehensive 5 year strategic plan that will
guide the COMBDF and its activities with clear
measurable targets, and also develop the
COMBDF Strategy Map and Corporate Scorecard
to identify Key Performance Areas (KPAs) and
strategy performance measures.
Distinctive Competencies
The factors that would make COMBDF come to be a value-adding
entity, not merely for the services they deliver are as follows:
1.
2.
3.
4.
5.
6.
COMBDF has unique mining supply chain & procurement skills which are
fundamental to its strategic endeavors
The Forum has an understanding of the mining market dynamics (e.g.,
pricing, supply lists) therefore can leverage this knowledge
COMBDF is responsible for purchasing in the mining houses therefore
can acquire support and influence on procurement in the mining houses
COMBDF has experience & knowledge of business development in
Botswana, e.g., through Debswana PEO
The Forum has excellent ethics in the mining industry in terms of
procurement (e.g., good relationships with suppliers) which enables
sustainable relationships with various stakeholders.
COMBDF has experience and knowledge on diversification initiatives,
e.g., Debswana Masedi farms, BCL orchards, etc.)
Competitive Advantage
The value proposition that the COMBDF offers to its customers and
stakeholders
1.
The Forum has established informal strategic linkages with key players in
economic diversification and development which will provide the
background for COMBDF ‘s other strategic endeavors
2.
The mining houses have formidable purchasing power collectively
3.
There are standardized/similar processes (e.g., equipment, commodities,
skills) which are based on mining industry best practice
4.
There is a reputable and conflict-free mining industry
5.
There is availability of mine products which lends itself to further
opportunities for diversification and beneficiation
6.
The presence of mine related funding institutions ( e.g., PEO) for potential
business development
There are mature, proven and well-funded CSI programs which improves
its position in the social community.
7.
Major Concerns
COMBDF defined areas and issues that would raise concerns with
regards to achieving its mandate below:
1.
2.
3.
Lack of supportive government legislation for effective implementation therefore
absence of a legal enforcement system
The legacy supplier relationships may affect decision making around procurement
6.
Possible inadequate readiness and capability of targeted suppliers in terms of
quality, standards and/or other factors
There is potential reduced readiness to embrace the developmental approach of
local goods and services by the mines due to already established relationships
with foreign suppliers
The lack of preferential processes/standards which hampers fulfilling of the
COMBDF mandate
The lack of collaborative efforts from the mining houses, e.g., strategic sourcing
7.
Cost reduction initiatives in the mining sector may not be readily realized
8.
Lack of commercial/enterprise appreciation by the procuring entities (PEs)
9.
The BCM full brand is not known
10.
The COMBDF mandate is not fully embraced by the mining houses
4.
5.
Structural Factors that support
COMBDF
Structures existent in COMBDF that support its mandate
1.
2.
3.
4.
5.
The existence of a constituted BCM structure therefore
generating an organized background for the COMBDF
The mining houses share problems, a common
purpose and desire and therefore a mutual
understanding and operational ground
The forum members collectively possess vast
experience
Botswana has a stable economic and political climate;
therefore there are no unpredicted occurrences that
may hinder the COMBDF
The COMBDF structure provides for adequate
representation of the mining houses
Structural Factors that
hinder COMBDF
Existent Structures that may impede on COMBDF’s success:
1.
2.
3.
4.
5
6.
7.
There is a culture of dependency by local entrepreneurs, making
entrepreneurial development more challenging
Location of Procurement Entities (PEs) outside Botswana
Mine policies that are not harmonized/standardized therefore
no alignment
Insufficient legislation around Citizen Economic Empowerment
(CEE) and local business protection
Lack of full-time staff for the COMBDF
Some current procurement methodologies (e.g., EPCM, labor
broking) may hinder COMBDF from satisfying its mandate
The COMBDF structure is not well recognized which may result
in lack of stakeholder buy-in
Stakeholder & Customer Analysis
Linkages that COMBDF has with its stakeholders:
Enabling linkages
• Have control and authority over the organization,
e.g., Governmental legislators
• They enable the organization to have resources
and autonomy to operate
Normative linkages
• Have common interest with the organization,
share goals/values/problems, e.g. Competitors
Functional linkages
• Divided into input functions (Provide labor and
resources to create products/services, e.g.
employees) and output functions (consume
products and services, e.g. community)
Diffused linkages
• Stakeholders who do not have frequent
interaction with the organization
• Temporary relationship
• Reactive to organizational actions and harder to
predict
• Active in times of crisis ( the Watchdogs, e.g.
media)
Stakeholder Map
STAKEHOLDER
STAKEHOLDER
BOBS
Media
BURS
DCEC
Normative
linkages
(Similar)
COMBDF
Diffused
linkages
• Collaborative/common
approach
• Information sharing
• Support of outreach
programs
• Integrated business
development initiatives
Enabling
linkages
MTI-EDD
BEDIA
LEA
CEDA
NDB
BOBS
BEMA
BOCCIM
PEO
NEEDS/REQUIREMENTS
STAKEHOLDER NEEDS/REQUIREMENTS
• Total cost of ownership
• Improved efficiency of operations
BCM
• Common approach by mining
companies
BCM
• Meaningful contribution to
Members
Botswana’s economic development
•
Improved reputational value
DOP
• Harmonized policies and guidelines
• Legal compliance
STAKEHOLDER
COMBDF
Members
BCM staff
Input
Functional
linkages
(Watchdogs)
NEEDS/REQUIREMENTS
• Compliance (e.g., corporate
governance)
• Information
• Transparency
• Organization driven by best
practices/benchmarking
Output
STAKEHOLDER
Enterprises
(local, FDI,
citizenowned)
Mining
community
NEEDS/REQUIREMENTS
• Adequate/sufficient
funding
• Active support from
mines (those that are
represented and those
that are not)
• Formal structure
• Operational guidelines
and policies for the
forum
NEEDS/REQUIREMENTS
• Business support
• Entrepreneurial
development processes
(Tshipidi)
• Market access
• Transparency &
consistency
• Information on
contracts pipeline
• Predictability for
business continuity
• Preferential
legislation/reservation
policies
14
15 -
Stakeholder Emerging Requirements
(Trends, patterns, key driving forces in the
environment…)
1.
2.
Increase in the use of ICT being central to business would make
COMBDF capacity building to be along these aspects
Increased outsourcing of mining activities
3.
Opportunities through growth in number of mining houses
4.
Inadequate funds for mining supplies (pulling them out of the
market)
Increased expectation of beneficiation from the general public
5.
CRITICAL SUCCESS FACTORS
 Clear policy and procedures for engaging stakeholders
 COMBDF to ensure that that the strategy implementation is
done effectively and efficiently with the required resourcing
by ensuring availability of funds and clear budget
 There should be clear role clarity within the Forum
 Clear alignment and buy-in and commitment by all member
mining houses
 The strategy to deliver ‘quick wins’ and provide visible and
tangible results in the short to medium term.
 Enhanced overall BCM brand perception
 Availability and accessibility of relevant information from
participating COMBDF members
 Effective stakeholder engagement and communication of
progress throughout the strategy implementation process
17 -
COMBDF Vision Statement
Current
Reality
Creative
tension
To be the leader in creating and nurturing
competitive enterprises in the mining and
related industries
19 -
COMBDF Mission Statement
The Mission Statement below defines and communicates the
“mission of intent”. It describes the core purpose, the goal and
approach through which COMBDF will deliver towards the
desired vision:
STRATEGY MAP
- 20 -
VISION: To be the leader in creating and nurturing competitive enterprises in the
mining and related industries
Customer &
Impact
Perspective
Competitive enterprises
-% Growth in Export Output
-% Reduction in Import bill for mining companies
Foreign Direct Investment (FDI)
-Number of foreign companies starting up
-% increase in foreign spend on local investment
Promotion and marketing
-% increase in number of newly enrolled citizen/local businesses
-Number of prioritized businesses developed and
supplying the mining and related industries
nternal Process
Enterprise capacity building
Procurement from local enterprises
-% increase in spend on citizen supplier
Improve strategic Partnerships & Alliances
-Number of partnerships
-Pula value of contracts as a percentage of citizen spend
eople
Culture of performance and results
-% of enterprises enrolled that are ISO Certified or similar
-%of enrolled suppliers with funding need assisted to gain access
to funding
Build clusters/linkages
-Number of clusters created
Adequate funding
-% quorum for meetings
-% achievement of performance against targets
-% Compliance to budget
Staff capacity/competency
Member cost savings
-%staff fit to competency profile
-%staff fill for the BCM office
-% of BCM staff represented in Forum
-%savings of total procurement budget across
members due to Forum initiatives
Financial &
Resource
22 -
COMBDF L0 CORPORATE SCORECARD
CHARTERS FOR PARTICIPATING MINES
23
STRATEGY PROJECTS PORTFOLIO
K PA
K PA 1 :
PORTFOLIO OF PROJECT S
COMPETITIVE
ENTERPRISES
K PA 2 : F O R E I G N
I N V E S T M E N T (F DI )
DIRECT
K PA 3 :
PROMOTION
AND
MARKETING
K PA 4 :
PROCUREMENT
FROM LOCA L
ENTERPRISES
K PA 5 :
ENTERPRISE
1 . Analysis of value chain cost drivers
2 . Develop an action plan for the identified enterprises to
become quick wins
1 . Develop a specific FDI strategy for the mining sector
benchmarking with other organizations
1 . Develop Forum promotion and communication strategy at
the mines
2 . Develop prioritization criteria
3 . Define the support framework for prioritized companies
1. Develop central supplier database and common
measurement criteria
2. Develop harmonized supplier classification system
3. Develop common blacklisting methodology/standards
1 . Establish MOUs with BOBS or similar
CAPACITY
BUILDING
K PA 6 :
IMPROVE
PARTNERSHIPS
ALLIANCES
STRATEGIC
&
1 . Develop prioritization framework for strategic partners
required
2 . Identify potential suppliers of similar products to build
economies of scale for the enterprises to be competitive
K PA 7 :
BUILD CLUSTERS/LINKAGES
1 . Workshop to motivate linkages
K PA 8 :
CULTURE
AND RESULTS
1 . Develop
and
implement
charters
for
members
participation in the Forum
2 . Develop COMBDF member attendance scorecard
K PA 9 :
ADEQUATE
1 . To develop COMBDF budget aligned to strategic plan
requirements
K PA 1 0 :
MEMBER
OF PERFORMANC E
FUNDING
COST SAVINGS
1 . Develop common measure for savings determination and
calculation
2 . Develop measures to determine the savings accrued to
members
24
25 -
REQUIRED SUPPORT FOR
THE PROJECT
Meeting of Senior Management in member mines
Access to key information from operations
Input from members during the road show
WHAT HAPPENS NEXT?
STAKEHOLDER ENGAGEMENT
Participating Mines
Other important key stakeholders
Finalization of COMBDF Strategic Plan Document
Implementation plan with a comprehensive financial
plan (budget)
26

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