This programme, launched in 2002, is ongoing and aimed at developing a Kumba culture in support of our vision to outperform the mining and mineral sector in creating value for all stakeholders through exceptional people and superior processes. It focuses on:

• A common vision and set of values, creating an open, positive and trusting environment
• Governance processes that provide the framework and tools to challenge and measure the performance of all employees
• Operational excellence by identifying best practices across and beyond the organisation and implementing these.

Current Kumba Way initiatives include:

• People performance
• Continuous improvement
• Target setting and tracking
• Capital and project management
• Mineral resource management
• Physical asset management.

Every aspect of the Kumba Way process is closely aligned to the business strategy. Business objectives are divided into measurable components and cascaded down into individual performance contracts.

The Kumba Way required examining existing processes, conducting surveys and analysing results for an accurate understanding of business methods. The key principles – practices that would lead to the most substantial results if implemented – became the basis of the detailed design for each initiative. New processes implemented at pilot sites were closely monitored, reviewed and refined where necessary, and implemented across the group. Both progress and processes are continually measured.

Kumba business improvement programme
To counter fluctuations in the rand exchange rate, remain competitive and meet its growth aspirations, Kumba initiated a wide-ranging business improvement programme in 2004 with the objective of contributing over R1 billion to net operating profit by 2006 through revenue-enhancement and cost-saving initiatives.

Through extensive consultation, brainstorming and drawing on collective wisdom, suggestions began to flow. By May 2005, the ideas generated and implemented through this programme had reached an annualised value of R766 million. By December 2005, that figure was revised to R1 422 million.

The business improvement programme has underscored the corporate culture that permeates Kumba – setting and achieving challenging targets through performance to deliver attractive returns for investors and ensure a sound future for the group and its stakeholders.