Mark Cutifani: How Did Anglo American Define their Purpose?
6 minute read
A Blueprint for Better Business are an independent charity whose purpose is to create a better society through better business. They help business to be inspired and guided by a purpose that benefits society and respects people and planet. Their podcast series, hosted by their former CEO Charles Wookey, explores the challenges and complexities of creating and running a purpose-led business.
Mark Cutifani is the former CEO of global mining company Anglo American, holding the post for nine years until May 2022. He led the company through an extraordinary journey to becoming purpose-led.
Charles Wookey speaks to Mark to explore the realities of instilling a purpose-led approach in a complex organisation, whilst balancing challenging commercial goals.
“Our purpose became a conversation about not only what we would do, but who we would be.”
This interview was condensed and edited for clarity.
What gave you the most joy and fulfilment at work?
I started off as a mining engineer and worked my way through various levels of the organisation. I’ve been told that I’m a fixer; I tend to take on the tougher projects – for me it’s about making the biggest possible contribution to society. That’s become more and more important to me as I’ve grown older; I have seven kids and I’ve learned that our job is to leave the world a better place than the one we found.
I’m a social being – my energy comes from the people that I work with. Seeing people take pride in doing what they do within a team, and providing leadership in a way that allows people to achieve their own personal objectives is something I find most satisfying.
Why did you want to make Anglo American a purposeful mining company?
When we talk about purpose, we have to look at the starting context. Anglo American had major problems: debt, lack of competitiveness and in need of major restructuring. We essentially had to rebuild the company. We made some tough decisions, for example, we went from 160,000 down to 90,000 employees. But of the remaining assets, in two and a half years we went on to produce more products at over 40% cost reduction.
We called this “the burning platform” – the acknowledgement that there would be no business at all if we didn’t make the hard calls. But when people were worried about their jobs and we’re having to make some tough moves, they valued our transparency. This couldn’t last long-term however, which is why we transitioned into creating a “burning ambition”. That’s when we started to bring in conversations about purpose.
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How did Anglo American come to a defined purpose?
Coming to a defined purpose, which we’ve defined in seven words – reimagined mining to improve people’s lives – took consulting hundreds, thousands of contractors and stakeholders. But it’s not just the words themselves that are important; it’s the processes we went through, the engagement and the commitment to a common goal.
Our purpose became a conversation about not only what we would do, but who we would be. We had a new focus on safety, environment, social performance, the things that we contribute to society above and beyond the products that we produce became just as important.
How does Anglo American fulfil that?
In 2013, we described ourselves as a mining company, which conjures up thought of a company that simply digs holes. However, when we were working with BMW, they helped us see our work from a provenance perspective. It was important for them to know where all the 18 products we produced for them came from and whether there were ethical business practices. It’s when we started to talk about ourselves as a material solutions company.
Our role in the circular economy is going to be just as critical. As certain minerals become more scarce, we need to find different minerals that are more efficient. We need to get smarter in using less material for the same applications, as well as recycling.
And what about its impact on other stakeholders?
We looked at our employees and considered what’s important to them. People want to be paid fairly for the work they do, but it’s also about personal satisfaction: how do we help them become the people they want to become? There’s also teamwork, which we foster by creating an inclusive workplace. We also consider the impact on our local communities. I’m an engineer so I can see the beauty of a hole in the ground, but we have to make sure that local communities are getting more out of what we do than noise, dust, and a big hole.
In the mining industry, considering all of the above is critical for your survival and success in the long term. In the end, if people don’t trust us, we don’t get access to ground, we don’t get access to resources, we don’t have a future. So it took a little bit of work to do, but how do we connect with each of our key stakeholders in a way that’s meaningful and makes a difference, has been really important in terms of our survival.
“When I stand up as a leader and talk about what we’re going to do and how we’re going about our business, it’s the people that actually make a difference.”
What is important to you as a leader?
I hate hearing that “people are our most important resources” because in my view, it undervalues who we are and the essence of our humanity. I’ve always had a different view on how people in the industry should be treated.
People are much more important than the gold they mine or the vehicles they operate. People are the business. When I stand up as a leader and talk about what we’re going to do and how we’re going about our business, it’s the people that actually make a difference.
Even though the market will pay you differently depending on the roles you undertake, the true worth of any individual is no different. If any one of us doesn’t do our work, then the whole process breaks down – we’re all valuable. That idea has always been so important to me.
