THE PREDICTABILITY PREMIUM - 3/5: Two views on the same thing

Two versions of the same mine. Even with accurate reports, a board can still misunderstand what’s really happening at the mine.

Production, utilisation, and cost figures might all be correct, but what’s often missing is an understanding of how those results are actually achieved.

People on site notice constant replanning, equipment unavailable when needed, and buffers being used up. Meanwhile, the board only sees the monthly results.

Both accounts are important. By themselves neither explains what repeatedly prevents the mine from delivering to its inherent capacity.

An active owner with board representation can connect them.  A technically credible owner representative can act as a bridge between the board, management and the people planning and executing the work. Working alongside the existing operations team, they can help establish a shared understanding of what repeatedly interrupts production - and which decisions require support beyond the mine. That shared examination may reveal departmental targets that interrupt flow, capital aimed at the wrong constraint-or managers who understand the problem but cannot change the rules creating it.

 That last issue is especially important.

A mine manager might understand why spare capacity helps protect production, but still struggle to defend it against utilisation targets or budget rules set by others.

The owner can use their influence on the board to back these changes, while management takes the lead on putting them into practice.

Board involvement is valuable because it links real operating evidence to decisions and gives management the authority to act.