No. 01 // MiningThe Restructure That Changed Nothing3 restructures of one reporting line in 4 years. Each was announced as the fix for the last.
What it looked like
A mining group restructured the same reporting line 3 times in 4 years. Each new structure was announced as the fix for the last one. Production decisions kept stalling, and somebody on the board began to doubt the answer they kept being given.
What was really happening
Decision rights were redrawn every time. What people were actually allowed to approve did not move. One approval limit had not changed since before the first restructure, and every stalled decision had passed through it.
The deferred capital decisions and the slow production ramp were modelled at R1.2bn over 2 years. The restructures themselves cost less than that.
What fixes it
Not a fourth structure. The work is to restate who may approve what, at what level, and to give that change one owner and a test anyone could check. Then the board re-scores it until it holds.
The question for your board: which approval limit has not moved since your last restructure?
Disguised. Names, places, dates and exact figures are altered. The mechanism and the order of magnitude are not. Read the case file