The Two Factors that Affect Management Success
“Management is doing things right; leadership is doing the right things.”
– Peter Drucker
Why Having Management with a Track Record of Success Matters
Always look at the track record of the prospective operating company’s management.
- What have they done before?
- Were they involved in successful companies?
- What is their reputation in the industry?
The mining world is quite small, and someone always knows the people involved.
If you are looking for a person to build a new company, which mining companies have they built in the past?
Management Skills: Lessons from History
“Our greatest glory is not in never falling, but in rising every time we fall”
A company’s board and management team should have a range of skills and experience appropriate to the company’s stated aim.
The biggest single skill in business is not coming up with ideas but fund-raising for your ideas.
The CEO needs credibility, marketing skills and sales skills. Some people naturally have these skills through mastery of their subject and through the ability to “sell a dream”. When a company is starting out the CEO needs to sell a picture to investors of how it will look in one, two- or three-years’ time.
If the company is going into development, there should be someone in the team with a mine building track record.
If the company is in exploration, then the management team needs to have geological skills and track record of finding significant mineral deposits.
The CEO needs to have a head for finances, an eye for a deal, good negotiating skills to get that deal and keep shareholders satisfied, as well as a great deal of persistence to steer a course through troubled waters.