Exploring strategy implementation in major South African gold mines

Abstract

It is essential for the survival of the mining industry to look at the effective streamlining of organisations that can survive in the downturn in the gold cycle and meet the state demands placed on the industry. This study outlines challenges in South African gold mines and investigates the fit of the strategy implementation with the theory of implementing strategy on through the combined organisational design approach of looking at organisational structure, strategic and management control systems and organisational culture as well as corporate governance and strategic leadership. The research focus is on the implementation of generic strategies in South African gold mines pertaining to general industry issues such as strategies to address profitability and sustainability, dealing with the regulatory framework in terms of state intervention in the minerals sectors (SIMS), the Social and Labour Plan (SLP) and the Minerals and Petroleum Development Act of 2002, amended 2013 (MPRDA) and socio-economic concerns through the mining charter and wage demands. The purpose of the research is to explore how management perceives the implementation of strategies in general, without specific attention to the strategies developed for the organisation. The research will explore strategy implementation in South African gold mines and test the theory for the implementation of strategy. The research design is a qualitative study with individual semi-structured interviews. Participants were purposefully selected based on their experience in management roles in South African gold mines. The results of testing the developed theory-based strategy implementation against the practical application of strategy implementation shows an acceptable match in terms of corporate governance and strategic and management control systems. Gaps are identified in terms of organisational structure and culture. Strategic leadership and the strategic implementation plan show larger gaps compared to the theory, which is a concern. Though sound strategies may be in place, implementation fails. The absence of strategy implementation plans is noticeable and not linked back to strategic leadership.