http://www.stratum-international.com/
Stratum International’s latest research report suggests the mining industry recognises the threat of forthcoming demographic changes but is not well-prepared for the potential impact on future leadership. The reasons are complex and sometimes it’s about short-term survival rather than complacency. But those who can should start to prepare now.
The Demographic Time Bomb in Mining, published today (3 October 2014) is a new research report from Stratum International, based on the results of a survey of more than 900 mining professionals. The report considers the impact of forthcoming demographic changes in the industry from the perspective of leadership and succession strategies, and finds the sector has work to do to secure the next generation of leaders.
Several respondents made the point that for some firms – particularly juniors and mid-tiers, short-term survival is the priority in the current economic environment. So it is unsurprising that long-term leadership needs are not currently troubling them.
Even taking this into account, the findings suggest more could be done in many companies to ensure the leadership of the organisation will be in safe hands in the future. In fact only 1% of the 900 respondents believe the mining industry is well prepared for the demographic changes ahead.
Nearly four fifths believe the industry is completely or somewhat unprepared. This rises to nearly nine out of ten of board executives, who arguably have the most power to put appropriate plans in place.
82% of the respondents told us they thought succession strategies are important (rising to 95% of HR professionals) and yet only 28% reported having such strategies in place in their organisation.
The least important leadership development activity, from the list presented, was that specifically targeted at graduates and postgraduates. Even here more than half of the sample considered such a scheme to be important.
Succession Strategies in Mining – Where will the next generation of leaders come from?
Less than a fifth of board executives think the next generation of leaders will naturally come from their existing crop of junior managers, without opening up the roles to external applications. Many respondents considered this perfectly healthy. But nearly a third of board executives told us they had already identified a pool of external candidates from which they believed the next crop of leaders would come.
We believe the best approach is a long-term succession strategy that balances the grooming of an external pool of talent with the identification and development of internal high potential managers. We recommend that those organisations not struggling with short-term survival should start right now.
Who should take the lead?
People told us that either the current leadership team, or a combination of several different people, should take responsibility for ensuring the transfer of skills from senior leaders to junior staff. Yet we all know that when lots of people are responsible, no one person takes responsibility.
Someone has to take the lead on this. People working in HR may be horrified or concerned by the fact that only 2% of respondents thought this should be HR. We feel that in this responsibility vacuum, HR is actually well placed to take a lead and in doing so address a challenge of critical importance to the business and so demonstrate the strategic importance of HR.
The 26-page report includes many more details of these findings and more, and includes 8 lessons for leaders.
Click here for the report: http://www.stratum-international.com/demographic-time-bomb/