2. Today’s Presentation
Barrick’s Culture of Continuous Improvement:
• Why and how we started
• Our implementation strategy
• The critical success factors
• Summary
• Q&A
3. About Barrick
• Gold Industry Leader
• 20,000+ Employees
• 25 Operating Mines
• One of Canada’s Largest Companies
7. Dimensions of CI at Barrick
FOCUS ON CULTURE OF
VALUE CONTINUOUS
CREATION IMPROVEMENT
“Get results, change the culture along the way”
8. Barrick’s CI Launch - 2002
• Top down support
• Operations focused
• Quick, high impact improvement at Goldstrike
property (pilot)
• Expanded to all 9 sites (now 25)
“Get results, change the
culture along the way”
9. Barrick Vision and Values
Vision:
To be the world’s best gold company by finding,
acquiring, developing and producing quality reserves in
a safe, profitable and socially responsible manner.
BEHAVE LIKE AN OWNER
ACT WITH A SENSE OF URGENCY
BE A TEAM PLAYER
CONTINUOUSLY IMPROVE
DELIVER RESULTS
11. Barrick CI – Critical Success Factors
1. Leadership
2. Focus on Process
3. Measurement
4. People & Teamwork
5. Communication and Visibility
12. Barrick CI – Critical Success Factors
1. Leadership
• Sustained Commitment from the Senior Leadership
• Highly focused on long-term benefits
• Included in Personal Performance Commitments
• Full-time dedicated global BI Team
13. Barrick CI – Critical Success Factors
2. Focus on Process:
• Extensive use of all applicable lean/CI tools
• Operations Review Teams (ORT’s) embedded in business cycle
(PDR or PDCA)
14. Barrick Business Management Cycle
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Talent Review
REVIEW
ORT / Site gap analysis
REVIEW
Strategic Planning PLAN
Budget PLAN
Performance Commitments
PLAN
Tactical Plan
PLAN
Execution DO
ORT Process
1. Review 2. Plan 3. Do
(Assessment) (Site Visit) (Execute)
Objectives Objectives Objectives
• Current state • Leadership support and • Develop & execute action
• Opportunity commitment plans
Identification • Design solutions • Monthly Follow-up
“Go to Gemba”
15. Barrick CI – Critical Success Factors
3. Measurement
• Focus on Metrics and KPI’s
• Track the value creation (waste reduction)
• The Culture Scorecard – yes, you can measure culture
16. Barrick CI Value Creation
Value Creation
2003 2004 2005 2006 2007 2008 2009 2010
Quality Cost Throughput Total
(Illustrative)
17. Barrick Culture Scorecard
Current 12 month
Sections Elements Score Target Key Themes To Close Gaps
Vision & Values 1.8 2.5
Business Strategy and Value Streams 2.0 2.3
Foundation Standardized Processes 0.7 2.3
Culture of CI 2.0 2.0
Foundation Total 1.6 2.3
Recruited for Fit 1.7 2.3
Employee Performance and Development 1.4 2.4
People & Leadership Talent Management 1.8 2.3
People and Leadership Total 1.6 2.3
Clear Targets and Goals 1.3 2.0
Visual Workplace 1.0 2.0
Business
Regular Structured Reviews (Plan-Do-Review) 2.0 2.5
Performance
Workplace Organization (5S) 1.0 3.0
Management Organization Structured for Performance 1.3 2.0
Business Performance Management Total 1.2 2.5
Employee Involvement and Problem Solving 1.4 2.3
Learning & Knowledge Sharing 1.0 2.0
Knowledge Sharing CI Resources/Support 1.0 3.0
Learning & Knowledge Sharing Total 1.3 2.4
Corporate Social Responsibility 0.8 1.8
External Relationship Sustainable Community Development 0.3 1.0
Management Suppliers, Vendors, Contractors & Consultants 1.3 2.3
External Relationship Management Total 0.8 1.7
Overall Score 1.3 2.2
18. Barrick Cultural Measurement Framework
S3
Everyone
Engaged In CI
Results
S2
Strong results in
critical areas
S1
Getting started,
limited results
S0
Not happening
Time
Major gaps in Strong leaders Focused initiatives Enterprise-wide CI
basic planning making big, in structured culture
and operating often tough, process to deliver (INDEPENDENT)
standards changes high impact
(CHAOS) (PUSH) (DEPENDENT)
19. Barrick CI – Culture vs. Value Creation?
Value Creation and Culture
3.0
2.5
Value Creation
Culture Score
1.9
2.0
1.5
1.5
1.1
1.0
1.0
0.5
-
Region A Region B Region C Region D
Target Actual Culture score
Higher Culture Score = Greater Value Creation
20. Barrick CI – Critical Success Factors
4. People & Teamwork
• Employee Engagement & Involvement
• Employees given accountability for results
• Willingness to take chances & challenge the status quo
• “CI Awards” - Recognition and Reward
21. Barrick CI Awards
Recognize and reward employees for improvements made during the
year in the following 4 categories:
1. Employee involvement and participation
2. Idea generation / innovation
3. Achievement of significant results
4. Knowledge seeking and application
22. Barrick CI – Critical Success Factors
5. Communication and Visibility
• Create formal systems
• Establish Best Practices
• Share success
Continuous
Continuous
Continuous Improvement
Handbook
(it’s contagious!) Improvemen
Improvemen
t Pocket
t Pocket
Guide
Guide
First Edition
First Edition
23. Our Current Business Environment
• Volatile economic forces
• Fluctuating Gold Prices
(+/- 15% in 1 month)
• Inflationary cost pressures
• Labour & commodity shortages
24. Summary
2 Dimensions
• Value Creation
• Culture
Critical Success Factors
• Leadership Commitment
• Focus on Process
• Measurement
• Communication and Visibility
• People and Teamwork