Thursday, August 12, 2021

Rio Tinto: The Price of Mismanagement and Unhealthy Culture

The Wall Street Journal recently had an article about how Mongolia commissioned a report to investigate why a copper mine being developed by global mining company Rio Tinto suffered delays and a $1.4 billion cost overrun.

Rio Tinto had blamed unfavorable rock conditions, but the report found that the rock quality was fine and the real culprit was an unhealthy culture and lack of coordination between teams: "People were working in silos with one group blaming the other for any failings."

While most failed projects and change initiatives don't suffer losses of this magnitude, unhealthy culture and silos are, unfortunately, all too common in business. They result in missed innovative opportunities and negatively impact performance and bottom-line results.

© 2021 Praveen Puri