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AI. Automation. ESG. Machine Studying. The present fee of disruption happening throughout industries and verticals might be overwhelming.
However right now, Consultya Managing Director Ahmed Elkomy rejoins the Technique Simplified podcast to simplify issues. Within the dialog, Ahmed breaks down vital organizational transformation traits happening contained in the industrials sector.
- Organizational transformation traits to know
- Key challenges industrials organizations are going through right now
- How automation is affecting the industrials house
- Organizational transformation finest practices
- The significance of upskilling
- Pitfalls to keep away from
See the hyperlinks beneath to study extra about how Consultya companions with industrial organizations to rework their operations.
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Transcription: Key Traits and Challenges for the Subsequent Decade in Organizational Transformation
MC: Namaan Mian
Ahmed, welcome again to Technique Simplified. We’re actually excited for half two of our dialog right now on the traits happening proper now in industrial transformation. For people who haven’t heard from you for some time, or are perhaps tuning in for the primary time, are you able to simply rapidly give us a way of your background and the consulting agency that you simply run?
Consultya: Ahmed Elkomy
Thanks, Namaan. I’m actually glad and excited to be right here right now. So my identify is Ahmed. My background is in engineering. Early in my profession, I had some entrance line roles as a plant supervisor, I then bought into consulting, began reducing my tooth with Companions in Efficiency in Australia the place I spent about seven years, rising into an Affiliate principal.
Then I had a brilliant early midlife disaster and went again to uni for a few years simply to flee work. Then, I bought again and I joined DuPont Sustainable Options. I used to be a associate there for a few years. After which as of 18 months in the past, I began my very own consulting agency, Consultya, with the intent of continuous to serve industrial purchasers with ops transformation sort companies. And that’s the place I’m at right now.
MC: Namaan Mian
Fantastic. I feel that’s a improbable 30 second synopsis of a protracted and distinguished profession. Very consulting-like in your reply. Earlier than we discuss in regards to the traits within the house, are you able to first discuss to us about operational transformation inside industrials, let’s simply outline the time period and actually, the house and what we’re speaking about right now.
Consultya: Ahmed Elkomy
Yeah, that’s a very good query. And let me begin with what it’s not, okay. So it’s not your typical sort of consulting that you simply’d be conversant in within the MBBs, or the Massive 4’s the place a number of it’s actually numbers heavy, you get a pleasant seat within the within the boardroom, or an enormous assembly room the place you crunch a number of information. And also you give you an enormous large report stuffed with suggestions that you simply drop on the consumer, after which stroll away with a excessive 5 saying good luck. Or, within the occasion of the place it’s taken a bit additional with the MBBs and Massive 4s is let me come and assist you run the PML. So that they get an they usually set up an enormous PMO working generally a whole bunch of initiatives. In my expertise, working the group into an absolute frenzy and a number of consulting fatigue. So the place ops transformation usually is available in is after that consulting storm had taken place and tens of millions have been spent.
Numerous the time, they’ll come again to that sort of consulting, the ops consulting or the ops transformation sort work the place they are saying, are you able to please assist us get some outcomes, as a result of so much has occurred. There’s all these dashboards, however my backside line hasn’t really moved for all intents and functions, what occurs very nicely, is a number of gutting in relation to price. Okay, so all restructures, spending with suppliers and provide chain that each one tends to come back fairly nicely from the MBB and Massive 4 cohort.
So that they do very well in relation to gutting a company and reducing prices. However it leaves it leaves the operation in a state of fatigue, it leaves it in a state of it’s mainly unsustainable, you understand, going by way of prime down benchmarking, and restructuring of organizations, it doesn’t essentially take a number of context into it. And the organizations are inclined to not likely carry out very nicely. So our transformation is basically extra of the reengineering of say, your processes, your methods and your buildings. And it’s working facet by facet with the road to rework and alter the behaviors change the best way they work, to mainly get a company on the finish that’s much more environment friendly, that’s much more price efficient.
So that you simply get to fulfill your buyer expectations, and also you get to develop your income and your backside line and it permits you to then stay aggressive and resilient. So to essentially simplify, it ops transformation is the kind of consulting that solely targeted on delivering a sustained backside line consequence for a company, that could be a lot much less about having much less folks, however extra about getting extra out of the folks and the belongings that you’ve got. So that you sweat the belongings, by way of gear and other people, and also you make the place extra productive.
MC: Namaan Mian
I actually like the best way that you simply framed that, speaking about ops transformation nearly being like a rejuvenation of the enterprise and of the atmosphere after fairly drastic change and price reducing, actually bringing issues again to life and right here’s how they’re going to now develop and function in a sustainable manner shifting ahead, that’s a singular spin on ops transformation, I haven’t essentially heard worded like that manner earlier than.
Consultya: Ahmed Elkomy
I discover myself man having them and having to come back in and defend myself within the first week to say I’m not reducing toes, I don’t have an axe, I’m not the toe cutter, I’m not the axe man, I’m not coming out and in, everybody’s maintaining their job. In reality, in some cases, the highest down has been so harsh, that to make it sustained, you may ask to come back again a bit and usher in a number of extra folks, however I’m right here to construct functionality, make you succeed, put you on the monitor, present you tips on how to get there assist you get there, which is a very totally different spin.
So consulting has a very dangerous style in a number of industrial organizations. And it’s nearly like a contemporary breath of air whenever you are available and also you say, Cling on, buddy, I’m in your facet, this time round, we’re backside up, you understand, we’re coming in, I’m with the crowds, I’m with the plenty. And we’re gonna are available, and we’re gonna do that collectively. And we’re gonna present the blokes on the prime how superior everyone seems to be. So it’s a very totally different spin to have been parachuted in to tear it aside, versus let’s all get collectively and actually make this place the most effective place to work in that we are able to all be pleased with, proper?
MC: Namaan Mian
So let’s bust proper into it. You’re employed with industrial purchasers all over the world, you witness the challenges of transformation day in and day trip. Are you able to discuss us by way of a few traits you’re seeing play out within the house proper now that organizations each within the industrial house and maybe past ought to pay attention to?
Consultya: Ahmed Elkomy
Yeah, so a large pattern that we’re seeing in Australia, but additionally globally is a excessive employees turnover. There’s an unimaginable excessive demand and strain on, say, the resourcing sector. In order a lot as we’d prefer to assume that the strain on wanting to scale back environmental and carbon footprint would consequence us in being much less industrious, the truth is sort of the other. We want a hell of a number of nickel, and lead, and titanium and a number of minerals that’s really going to gas the renewables and trade that’s happening, that revolution in Australia that we’re seeing, in order that the press on resourcing has by no means been extra important. Okay, so in Australia, we’re opening up mining and leases. And it’s going gangbusters, even right here in Queensland, proper, and internationally, the strain is on for all these minerals.
And what that’s resulted in is a number of demand on employees. And what that leads to is excessive employees turnover over and since it’s a commodity folks are inclined to gravitate in the direction of the place I’m paid essentially the most. And the place I can spend the least period of time away from dwelling. As a result of it’s a commodity on the finish of the day, proper? So it actually comes right down to that. And this excessive employees turnover is definitely fairly difficult. And what it means is, you let’s say you put money into constructing methods in constructing a number of functionality, you get in a consulting home, and also you accomplish that a lot work, you lose most of that worth when two or three or 4 key stakeholders are gone. And that’s a number of the time what occurs, so I used to be simply doing a diagnostic add at a lead and silver mine, I simply bought dwelling final night time. And the largest problem they’ve had by way of why has all this turned over, Properly, within the final 18 months, we’ve misplaced so many individuals.
And when folks go, a number of that goes away with them, you gotta bear in mind a number of these industrial firms, say in mining, for instance, or metals, it’s nonetheless considerably labor intensive. It depends on folks doing a number of stuff. They usually’re extremely complicated organizations with a really complicated worth chain finish to finish, you’ve bought to drill, you’ve bought to blast, you’ve bought to mine, you’ve bought to haul, you’ve bought to crush, you’ve bought to course of, you need to smelt, you need to take that to a ports, you need to handle the port and provides it to the top buyer. It’s extremely, extremely complicated. And other people nonetheless play a key position on this. So excessive employees turnover has been a serious problem in trade on the time.
The opposite key pattern that I’m beginning to get actually pleasantly stunned with is is a number of the automation that’s been happening and the digital instruments that has been deployed at varied ranges. So let me unpack that one a bit. So with automation, you’ve bought mines in Australia now, the place you’ll drill and blast, load the again of a truck, have the truck drive and go all the best way from the pit, you understand, doing the rounds going all the best way to a crushing unit and having the fabric getting crushed and transported to a processing plant. Having that offloaded into the again of a rail and getting a railway vast going 300 kilometers to a port with out the only intervention of a human.
Okay, it’s totally automated. So the vehicles are autonomous, the loading gear’s autonomous, then complete operation’s autonomous and what you’ve bought now could be a bunch of operators and expert folks working centrally within the hub. It’s nearly like a NASA sort setup the place you’ve bought screens, and also you’re managing the gear remotely. And it’s fairly unimaginable how powered automation has rapidly crept in, and once more, these firms are mitigating for the truth that I can’t depend on excessive expert labor in these distant elements of the world, I would like to have the ability to transfer ahead. And what’s higher than that, mainly, automating the vehicles, so that you don’t want operators anymore to drive gear or to function graders or dozers or something of the types.
So there’s a very cool change, even automation, that’s they’ll add, that’s clearly altering the best way you handle the operation, it’s altering the best way you prioritize the way you handle your operation. After which, you understand, the final two engagements I used to be on have been simply seeing a few of these digital instruments which might be deployed to the frontline. So two days in the past, I used to be at a startup, you understand, at 6am, the supervisor’s kicking off the shift with the frontline employees. And he’s bought 5 large screens behind them, and it’s all touchscreen now. So you understand, all the pieces’s moved away from the nice outdated whiteboard and the purple and the inexperienced pens to, you understand, the inexperienced KPIs, and the purple on the performing KPIs, and so on. And all the pieces’s digital now.
And behind these screens is a reasonably complicated information system that’s built-in to drag in all the data that it’s worthwhile to carry it to you on the spot. So the security system is available in. So I’ve bought my security metrics, I’ve bought my environmental metrics, I’ve bought my manufacturing metrics, on my I’ve bought my dangers, and all of these totally different databases. And never too way back, you had to usher in the flowery consultants to come back in and hyperlink up the spreadsheets and do a complete bunch of lookups. And do additionally a bunch of knowledge evaluation and, and a number of that’s turning into out of date fairly rapidly.
So it’s attention-grabbing, I’m already seeing with equipment, the position of the operator sooner or later goes to vary fairly considerably, there’s going to be so much much less demand on operators because it virtually fizzles over time. And it’s also possible to see that position of the analyst being the person who has to take a seat there and do a number of that information crunching and see wanting up on a number of that’s disappearing in a short time, since you’re not in a position with BI reporting, and so on, to faucet instantly into these databases and extract the stuff that you really want in a fraction of the time. And it simply sustains. So you understand, two large traits I’m seeing the happening as nicely. The third and the final large pattern is tradition, you’ll hear that also developing fairly considerably.
You gotta bear in mind industrial organizations, they’re not precisely the sort the place everybody’s having caramel infused, like these free lattes, sitting on beanbags, with a desk tennis setup behind them, that’s not it, proper. It’s fairly industrious, it’s fairly robust. However it attracts all types of various skills, all types of corners from society. And so to have the ability to usher in, and we’re speaking about a whole bunch and generally 1000s of individuals in a single place, all coming in with a special background and a special manner of working and a special perspective. And to try to homogenize the tradition and homogenize the best way that we predict by way of we’ve bought to be protected, we’ve bought to assume earlier than we do stuff, we’ve bought to take care of one another, how will we turn out to be so much much less of a grievance tradition, which is, you understand, I do stuff as a result of somebody’s gonna watch me and I’ll be reprimanded for it, to how do I turn out to be slightly bit extra impartial, which is I’ll do the fitting factor, even when nobody’s watching, as a result of that’s the fitting factor to do.
And the way do I’m going from there to being interdependent, which is how I additionally make it possible for my buddy and my crew additionally doing the fitting factor, and never simply me, that’s a reasonably difficult journey. And nicely, that’s so necessary now as a result of all my eyes are on now spotlights are on we’ve bought, you understand, a number of common managers of operations which might be in court docket in Australia, as a result of we’ve had deaths, we’ve had main accidents and so the extent of accountability that has now happening, it’s not likely a joke, not that it was earlier than, however the degree of scrutiny now could be a lot greater, such as you’re a common supervisor, or vice chairman of an industrial operation, and, yep, you’re paid handsomely. However oh my god, it’s a fairly complicated cake. Okay.
Noise ranges, environmental footprint, harming folks, harassment at work, bullying at work. There’s a lot at stake. And each little information now, as you may think about, it’s everywhere in the information. Why? So it’s an enormous deal now to try to get tradition to be stronger than something. So I come into the group, and my habits adjustments instantaneously. So yeah, two to 3 key challenges I see right here, the excessive employees turnover is an enormous deal. How will we retain the most effective folks and the way will we rely much less on folks and extra on methods? That’s one, two is the automation and the digital instruments which might be taking in, so numerous reliance on equipment and the analysts degree. And the third one is the tradition, how will we make it possible for we’ve bought that tradition that’s going to assist us propel into the long run with all its challenges?
MC: Namaan Mian
So I need to unpack that slightly bit. And a few of what you stated surprises me and a few of what you stated doesn’t. The excessive employees turnover not stunning. In a vacuum, the automation, additionally not stunning. And the concentrate on tradition, additionally not stunning. However my speculation coming into our dialog was that this was a much less automatable trade than some others on the market. And what you’re telling me is that we’re in a position to take away human inputs from so many sides of the worth chain, that we’re in a position to take a fabric from a mine to a processing plant to the subsequent sort of distribution level with none human interplay. So is that resulting in a rise in effectivity and productiveness in how a lot I’m in a position to mine in a sure day? Are you able to discuss to me in regards to the sort of enterprise influence of this automation that we’re seeing within the house?
Consultya: Ahmed Elkomy
Appropriate. So one of many one of many challenges up entrance, as you may think about is, should you’ve bought the infrastructure setup, and the prices are sunk ultimately, form or type, it could by no means make financial sense to scrap all that away and automate. And that’s the issue, proper? A lot of the guys on the market are up and working already. Okay, so the few ones which might be going by way of the growth are mainly, you understand, getting new grime, and turning that into an operation, getting new leases and all the remainder of it. They’re those which have the benefit. So there are fairly massive organizations in Australia which have had the benefit, like Rio Tinto, for instance, who’ve bought expansions, there’s large demand for iron ore from China, there’s a number of iron ore in Western Australia, I’ve bought the approval to go for it. So should you begin from scratch, it’s an enormous capital outlay, clearly.
However should you take a look at your opex, so your capex is up, however your opex is so much is so much much less as nicely now, as a result of your common operator on this nation can sit wherever between 100 grand to 140 grand a 12 months, that’s how a lot an operator is paid to drive a truck, as a result of the demand, now think about, you understand, you don’t want 30 of these or 50 of these anymore, and also you don’t want all of the operators on the market, and so on. So your opex tanks, you productiveness is greater, you’re now inherently a lot safer operation in order that the factor of threat additionally disappears. However so why are you extra productive? Properly, consider the human, proper, coming into the shift, you bought to shift begin them, proper, you bought to do the pre begin the security, share, and allocate work and provides them the corporate replace.
And what’s occurred within the final shift and in order that disappears. So there’s half an hour, one other sport half an hour, and a posh operation like this can be a lot of time, regular crib breaks, I don’t have to cease for crib, you understand, twice a shift. In order that’s an enormous deal. And it’s by no means the crib, it’s the half hour you lose earlier than the crib attending to the crib, and it’s the half hour you lose after the crib getting again into the operation. And people being people, they prefer to take their time, earlier than, throughout and after crib and all the remainder of it. Complicated processes. Prefer it sounds fairly easy, however shift change, for instance, it’s fairly difficult whenever you’re making an attempt to get 100 folks to do that throughout gear, you lose a number of time, as a result of a number of productiveness, now that disappears, you understand, so you’ve all these parts of what’s usually referred to as utilization of availability. So consider you’ve bought 24 hours in a day. And the primary hit on the hours is the supply, my gear has damaged down, my engine received’t begin, and so on, that’s availability, let’s say you are taking 4 hours out, or they’ve bought 20 hours in a shift which you can really run the place the gear is offered, usually 5 hours out of which might be gone in what’s referred to as utilization or human delays.
So all that now disappears. So that you’re actually left with upkeep, and also you’re left with refueling. And all of those different complexities have gone which is fairly intense. Now you understand, the factor of fatigue, and so on. isn’t factoring within the quantity of the accident injury that you simply get with people being there. So that you’re speaking a few sleep that’s achieved to be inherently by design, much more productive, so much safer, and so much cheaper to run information that’s the foremost change, that adjustments the economics of your entire operation. Now, the capital outlays large upfront, however the opex is so much much less, the productiveness is slightly greater.
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MC: Namaan Mian
That’s enormous. If there’s 20 accessible hours within the day, and I’m getting 5 of these hours again, that’s a 25% enhance in my productiveness earlier than the rest
Consultya: Ahmed Elkomy
Per a truck, for instance, or per bit of substances, occasions 30, 40, 50 of these in a day is humongous.
MC: Namaan Mian
Wow. So, Ahmed, I feel that’s an necessary distinction you made earlier than between, look, the operations which might be already up and working which have already invested within the capex that’s wanted to arrange their processes in a human centric manner, they’re gonna stick with a mannequin that works for them. And it’s the brand new initiatives they’re going to maneuver ahead with this automation and superior know-how. So my considering is okay, then the tempo of change within the house goes to be gradual. As a result of a few of these human centric mining and industrial operations are years and a long time within the making. And so are you able to simply communicate to what you assume the tempo of transformation goes to be like on this house?
Consultya: Ahmed Elkomy
Yeah, and that’s the factor that I feel a number of a number of the parents outdoors of the trade don’t have a tendency to grasp. Like, it’s very easy to throw all these targets and say, you need extra of this and extra of that, however you understand, you’re coming to this operation, for instance. And generally it could actually take you 18 months to do a capital improve of, say, a crushing system that integrates with a conveyor that does X, Y, and Zed. And collectively after you’ve achieved the pre feasibility, the feasibility, you’ve achieved the development, you’ve achieved the commissioning, it’s 18 months earlier than, you’re like at regular state operation. So it’s fairly gradual. I imply, that’s a small capital improve that may occur in an trade of which have that’s of that magnitude.
And so none of that is fast, a few of these operations have a lifetime of mine, for instance, that goes 20 to 30 years. So the very fact for them to scrap fully and begin from scratch might be very unrealistic. And also you don’t additionally bear in mind, the automation may go well with and won’t go well with the working philosophy, proper. So what I imply by the working philosophy is, let’s say, for instance, you’re in a sure terrain, you’re in a sure atmosphere, the place the automation is perhaps fairly complicated as nicely. Okay, you may get totally different street situations, the climate is perhaps excessive, there could also be some variables that will not mean you can automate to that extent, in WA, it’s predominantly desert based mostly, you understand, the terrain is much more degree, there might be various factors that may play into that as nicely. So it’s not a undoubtedly that’s the fitting reply.
That’s the best way to maneuver ahead. And that I suppose, there’s additionally the inherent complexity that you simply get, you will see your useful resource, and you’ll have to take care of what you’re given, that full deck of playing cards, together with, by the best way, together with the laws that comes round. There could also be strain to get the lease and to mine that you simply bought to make use of a sure variety of folks, that is perhaps a requirement. So to go in and to say that you simply’re simply gonna say for instance, get in and and make use of the fewest variety of folks as a result of you understand, to automate, that may not really be an possibility.
So it’s not very easy. And the place it’s turning into complicated now could be this isn’t nearly a marketing strategy. That is the marketing strategy plus that ESG atmosphere round that fully that’s really required to get you to have that license to function, which is turning into increasingly more complicated, as you may think about. So it’s not, happily or not, it doesn’t matter. That may rely in your opinion, however it’s undoubtedly not nearly being productive. It’s bids turn out to be very complicated as nicely. Yeah.
MC: Namaan Mian
One of many second order results I’m seeing from this modification and simply what’s taking place within the house is the truth that employees are going to need to study new expertise. And also you’ve already talked about the truth that we’re sort of reallocating human capital to totally different capabilities now. And so are you able to communicate to how the house and the trade is shifting ahead with re skilling, its workforce and the way you particularly are concerned in that together with your purchasers?
Consultya: Ahmed Elkomy
Yeah, superb query. So it’s one factor to induct folks to come back to the operation or to anticipate them to have a sure commerce and so on. The place I feel functionality constructing tends to fail a number of the occasions is it’s nearly prefer it’s good management, proper. So chief leads collectively, however manages individually, proper? That’s actually chief proper? And you understand that analogy can sort of be utilized to the to the upscaling part. It’s not a drugs that you simply apply persistently to everybody’s, oh we’ve bought to coach folks, as a result of that’s the compliance factor. And we simply bought to tick the field and get it over and achieved with. Numerous the occasions, crucial piece that’s lacking, particularly as processes are altering, and industries are altering is defining what attractiveness like.
I’ve simply bought from the operation the place I’m sitting there with a supervisor and the superintendent, have you learnt what day seems like? Are you aware what week seems like? Is that truly outlined wherever? Such as you’ve spent 5 years as a superintendent making an attempt to determine it out. In the event you disappear tomorrow, should you went on a protracted depart, should you simply fully referred to as it quits and needed to go elsewhere? The place is that captured? And you understand, acquisition description doesn’t let you know something about how your each day, week to week appear to be by way of what’s the gold normal.
So I discover myself spending a considerable period of time defining what day seems like, what does week appear to be? I’m going in, and I take a look at a superintendents or managers calendar, and it’s booked out 40, 50, 60, generally 80% of the week is booked out of conferences, I’m going, When are you ever going to get any work achieved, and it’s happening? I’m simply working, like, if I get a rest room break in between conferences, I’m really fairly fortunate, I could have to, like begin penciling that in as a result of I’m by no means gonna get to try this. So that you say okay, nicely, you understand, supervisor could need to have, you understand, perhaps 25% of their calendar booked out in conferences, however perhaps one other 10 to fifteen% ought to be allotted to strolling the road and interacting, getting out of the workplace, seeing folks, teaching, growing, position modeling, interacting, and perhaps there’s X period of time in doing all these different issues.
So I discover myself having to outline the routines and rituals for the position. And as soon as I’ve outlined what attractiveness like, then we are able to sit and assess your present efficiency and your baseline. Okay, so the place are you now from the place it’s worthwhile to be? Okay, we’re a great distance away. Cool. So what does that hole appear to be? Let’s put a plan collectively to shut that hole. And what you’ll discover is you place that improvement plan collectively, which is fairly necessary, which most organizations do a really dangerous job in doing. It’s nearly prefer it’s a bureaucratic admin burden, that you simply simply bought a take care of, I imply, consultancies is do a a lot better job as a result of your asset is the folks. I imply, in consulting, you’re promoting folks in trade, you’re promoting a product.
So individuals are I imply, they let you know folks come first, however realistically, folks sort of come second, it’s not the those that make the cash, proper? It’s the product. And so more cash goes within the gear and the product, than it goes into the folks, whereas in consulting, there’s clearly the next proportion of funding going into the folks as a result of that’s your product. So you place these improvement plans collectively, after which you need to work, what I discovered in that magical ratio, the place it’s 30% theoretical, and 70% fingers on, okay. And once more, that’s the place lots of people get it unsuitable. It’s nearly like if I get folks to take a seat on some on-line programs and take some containers, I’ve educated the workforce, and no, you haven’t such as you’ve ticked the field, you’ve complied.
However little or no has really modified about that particular person’s each day, you at all times bought to ask your self, what are they going to do in another way tomorrow? What are they going to do in another way subsequent week, and if that on-line program, on-line coaching, no matter it’s that you simply’re going to do, if that’s not going to have an precise dent, of their routines, day in, day trip, week, in week out, month, in month out, then what have you ever really achieved why. And so that you’ll additionally discover disproportionate stability, a number of the coaching tends to be tailor-made in the direction of extra technical coaching, and so much much less across the good administration expertise which might be required so that you can run operation.
So there’s so much much less coaching about how do I’ve brave conversations? How do I coach and develop my crew? How do I’ve the fitting servant adaptive management expertise that can actually empower my crew to stepping up? How do I delegate? How do I really delegate? Not as a result of I’m so busy issues slip by way of the cracks, and another person has to select it up. However how do you proactively delegate with the intent of constructing functionality and getting folks to step up? So that they’re the sort of issues that you simply hear of and you might have learn the management books, you may even have sat on in management coaching, however how do I now really apply this with the work that I’ve in my context, it’s by no means customized to that degree that truly will get that worth. And in order that’s the place I discover credibility constructing with what I do to be extremely tailor-made to the position, however then ensuring that it has a dent, a really seen dent in how they carry out their job day in day trip.
MC: Namaan Mian
Inform you what, that sounds rather more tailor-made than some off the shelf on-line course. We’ve talked about a number of the traits you’re seeing happen within the house proper now. I’m going to ask you to place in your Nostradamus hat for a minute. And simply sort of look into your crystal ball and inform me what you assume is coming within the house right here over the subsequent three to 5 years. Are there traits that you simply anticipate to see, by the top of the last decade that we’re not essentially seeing now or perhaps solely seeing the very beginnings of now?
Consultya: Ahmed Elkomy
I feel ESG, proper. So environmental, social and governance, I feel it’s taking part in a serious position. And CEOs and xCO are nonetheless grappling a bit with it, proper? So you bought to recollect, in trade, you need to have somebody, you’ve bought the technique hat, and you’ve got the danger hat and the danger hat, a number of the occasions will outweigh technique, as a result of licensed operators vital. So with out that there isn’t any technique, I don’t get to outline the place I’ll be in 5 years from now, won’t also have a license to function. And so should you put the danger hat on, what are you , you’re entry to capital, with ESG. Proper, I’ll get entry to capital, if I’m ticking all of the ESG containers, that’s an enormous deal, I would like that capital, securing new leases, nicely, if I don’t do this, there isn’t any progress. So I’ve been in a position to safe new leases, I’ve been in a position to keep the place I’m, if I’m there’s nonetheless a number of manufacturing and trade in very prestigious elements of the town, a few of them nonetheless have river views, and a few of them are nonetheless up in good actual property.
So there’s going to be increasingly more strain on what’s the cement manufacturing unit doing in the course of the town? Like how will we get these folks out? You recognize, there’s elevated strain on housing, and so on. Proper? And also you’ve bought the expertise attraction, and clearly the license to function. So that you’ve bought a lot threat popping out from ESG, that it must be answered. And it must be handled. So the issue that you simply’ve bought now could be how do I operationalize ESG do for instance, in order that I’m in a state of affairs the place that is really a part of my portfolio, it’s a part of my initiatives, it’s not simply this factor, it at all times was a factor on the facet, I imply, there was at all times an environmental supervisor or security supervisor, then they mixed them, they name the HSE, well being security atmosphere, then they turned HSERT, Well being, Security, Atmosphere, recruitment and coaching, it’s just like the others, like you’ve your major producing capabilities, and then you definitely bucket all the pieces else up into a task for the sake of compliance. However it’s not that anymore. It’s not sufficient to conform. It must be extremely strategic and tactical. So once I take a look at what you are promoting enchancment portfolio of initiatives, I would like to have the ability to begin seeing, you understand, carbon discount and ESG initiatives baked in there as nicely, as a result of that’s now a part of it. So that is solely simply beginning to occur now. Since you put your self within the executives place, proper? What am I going to do in another way tomorrow? Once more, like, what’s the frontline get at? What all this ESG stuff? How’s my operator going? What’s he going to do totally different than tomorrow?
What’s the supervisor going to do in another way? And that’s fairly difficult inquiries to reply. Yeah, we are able to have the technique on paper. However what does it really imply for us day in day trip? The power transition, as is on proper, and everybody has, has subscribed to extremely aggressive targets by 2030. And, you understand, whereas it’s thrilling to stand up and bang your chest and throw these numbers out, everybody’s now grappling with how on the earth am I going to fulfill that? Yeah, how am I going to have, particularly from the shareholders, or the homeowners to indicate credible plans to hit these targets as nicely? Okay, so the race is on, the numbers have been dedicated, the each day hasn’t modified but. However you may see that within the subsequent three to 5 years, the sport is on as a result of we’ve bought what, six, seven years earlier than we are able to actually make a distinction now.
So I reckon that’s going to be that’s going to be a serious factor that you simply’re going to see altering. The opposite main pattern, I feel, is that you simply’re gonna begin seeing a number of, we talked about automation, proper. However what we haven’t talked about is a number of the IoT and AI coming and that includes into trade. So let me let me speak about that slightly bit right here. Actual time information for resolution making has at all times been an issue in trade, okay. And it’s turning into much more facilitated now with the fitting {hardware}, with the nice web connectivity, and the nice software program and methods that mean you can get that you understand, ready to observe the speeds, the keys that the operators are at, you’ve bought the GPS trackers and logistics and a complete bunch of suite of instruments that may assist you understand, individuals are over dashing, underneath dashing, operator efficiency, how they take their turns, all that sort of stuff.
So that you now have a swath of knowledge that you simply’re now beginning to get in heavy trade that you simply haven’t gotten earlier than. And the trick now, say, from the Consultya perspective is how do you rationalize these 1000 information factors that you simply’re getting in a day? What’s necessary, what’s not necessary? How do you cascade that as nicely? Because the group, what does the CEO have to see? What ought to the VP take a look at? What ought to the supervisor take a look at? What ought to the superintendent take a look at, what does the supervisor take a look at, and really just be sure you’re cascading, the main and lagging metrics all through the group to make it possible for everybody’s working at their degree and searching on the proper issues as nicely.
In order that’s the place consulting can characteristic nicely into all that work. That the opposite half is the machine and the gear efficiency is enhanced, as nicely, fairly considerably, to the extent that you simply’ve gotten now your predictive capabilities, which may be very thrilling. There’s so much about predictive capabilities. Let me offer you an instance. If we function the identical manner we’re, we’re going to interrupt down within the subsequent six hours, this pump will fail, this valve will stop, this factor’s going to occur. It’s at all times been the dream factor, can I really predict issues breaking and getting in proactively, as a result of each hour on a few of these issues might be value tens of millions of {dollars}. And there’s at all times been a number of speak about predictive functionality.
However there has by no means been the magical capsule. You recognize, there hasn’t been this trade that stated, I’ve managed to keep away from 70% of my failures by putting in this fancy gadget. Properly, not but, a minimum of proper? So it’s nonetheless discovering its ft, however it’s turn out to be so much higher now. And once more, the {hardware} is offered, since you bought to think about a really complicated system. So to have a look at why would the pump fail in a specific occasion like that, you might be temperature, at strain, at vibration ranges, the pH of the fabric going by way of it, there’s a complete swath of complexity that that goes into it. However AI and machine studying is turning into very adaptive, and it could actually take up a number of info. And I can envision that very quickly, we’re going to be ready the place we are able to enhance the efficiency of the gear fairly considerably by including machine studying and AI, dealing with that and dealing with the predictive features of how will we make it possible for we proceed working with out slowing down or breaking down?
MC: Namaan Mian
I feel the predictive nature of these analytics is what’s key there, not simply responding to what’s already occurred, however mitigating upfront points that would come up.
Consultya: Ahmed Elkomy
That’s the billions of {dollars} that the trade may generate value of worth actually aggregated, it’s humongous. Yeah.
MC: Namaan Mian
Ahmed, it sounds such as you’re bullish on the house, which I’m, too. However it’s a notoriously unsexy trade to most people. And lots of people don’t perceive simply the large quantities of cash that’s generated inside this house yearly. It’s not one thing that folks take into consideration so much when they give thought to enterprise usually. Are you able to simply discuss to me about your sort of common emotions and outlook on the trade right here over the subsequent 5 to 10? years? You already stated you’re bullish, are you able to simply increase on that slightly bit?
Consultya: Ahmed Elkomy
Yeah, I feel one of many one superior lead indicator I actually depend on fairly considerably is the is the participation of ladies within the trade. Okay, so that you’re seeing large gender range happening in an trade that has traditionally predominantly been dominated and run and managed by males. Okay, and that’s altering considerably. So the operation that I’ve simply come from has a youthful feminine who’s heading the upkeep perform, which is a large remit, proper, and also you by no means used to see that stuff earlier than, proper? Used to see much more females within the sustainability house, within the HR house, a number of help capabilities, now you’re beginning to see them coming into the road, which is extremely thrilling, proper?
So you understand, the fitters, the mechanics, the supervisors, the managers, and so on. So to me, gender range has been such a contemporary breath of air into the trade, as a result of that additionally adjustments the tone of the trade, proper? It’s not the loudest, it’s not, you understand, a number of the testosterone ranges can sort of drop fairly considerably, which isn’t a nasty factor in operations like that. And I feel statistically talking, females are usually so much gentler on the gear as nicely. So that you get so much much less breakdowns on the gear and accident injury than you do with them. With all these males making an attempt to compete one another out. So it’s really fairly good. And what needed to do to ensure that that to happen, you needed to change the tradition once more, proper.
And in order that’s why I hold bringing again tradition, you understand, folks have at all times been skeptical and scared and anxious for, you understand, the harassment that used to happen in these industries, the the shortage of progress, the shortage of alternative, you understand, no position modeling happening in these industries. And I feel gender range, for example, has been has been unimaginable by way of we bought to vary the tradition first. Properly, you need to do each in parallel, as a result of getting getting the variety adjustments tradition, so that you nearly gotta have a plan to vary it. And as you make the change, you facilitate it so much. And bear in mind too now, the rosters have turn out to be so much higher now. So flights and accessibility, they’re distant operations, proper. And now you’ve bought charters that say we’ll fly you out on a Monday morning, carry you again on a Thursday night, Friday make money working from home otherwise you take off and also you’ve bought the weekend.
In order that’s, for instance, in Queensland, the dominant roster that’s happening. So that you’re not now disconnected from your house for you understand, the 2 weeks on one week off, or the three weeks away, or the oil rigs again within the day, the 4 weeks away, all of that has modified. All that dynamic permits much more participation from a a lot wider cohort, I’m really fairly constructive about about trade as a result of as a result of because it turns into much less laborsome, which it’s turning into. And because it turns into extra superior by way of you understand, the technical functionality that’s required, and so on, I feel it’s going to draw a way more vast and various cohort into it. And like I stated, whether or not folks prefer it or not, sources for example, they’re not going wherever, as a result of all of your telephones, all of the wind farms and photo voltaic panels and all of the batteries that we’d like for the Tesla’s and everybody else, the bottleneck in a number of these industries in battery manufacturing is the useful resource.
I imply, it’s the factor which you can’t simply throw cash at and get extra of as a result of it’s scarce. So I really assume that you simply’ll see a number of the worth chain, I imply, the place the bottleneck is within the worth chain as nicely, a number of the cash is made. And I actually assume that within the subsequent within the subsequent few years, you’re gonna see that extra prominence in mining happening, a number of these battery producers are even investing in their very own mines in order that they’ll safe their provide chain, which is extraordinary, you understand, nobody was ever all in favour of proudly owning a useful resource operation beforehand. So I feel all of that is going to proceed to vary the economics of it, and the viability of the resourcing and common impression of the general public of sources, it’s not the place the place you get soiled, it’s not the place the place you’re gonna get harm. It’s not the place the place you get abused.
And it’s a very dangerous tradition. It’s a spot the place you may study, the place you may develop, the place you may develop. And we are able to have a serious influence on issues. I imply, generally it’s extremely rewarding simply to see a product coming in on the different finish of all that arduous work that entire bunch of individuals have put into.
MC: Namaan Mian
I feel that’s a dialog for an additional day. However that vertical integration of the provision chain, proper, throughout firms like Tesla and others that require these intensive sources, I feel goes to be an enormous aggressive benefit for them shifting ahead. And you understand, as an investor, as somebody who’s evaluating these firms and making an attempt to guage them, I feel that’s one thing that I’m , is the long run potential returns of a few of these gamers who require these pure sources as, what’s the safety and the sanctity of your provide chain, and the way vertically built-in are you?
Consultya: Ahmed Elkomy
Appropriate. And that offer chain now must be ESG as nicely, proper, which is now making it difficult, as a result of it’s not nearly my little operation, I don’t care how I bought my provide, as long as I’ve bought it. They’re the outdated days. Now, it must be traceable and clear, which provides large complexity, particularly should you’re working—should you’re within the Congo, should you’re in sure elements of the world, in Africa and different locations the place, you understand, trade isn’t very tightly regulated, that’s going so as to add much more complexity and extra strain on ensuring, so who wins on the finish, I with the sources, perhaps unregulated, since you want me or I who wants you, you understand, it’s gonna turn out to be—we haven’t seen that play out but. You recognize, thus far, it hasn’t been a difficulty. However it’s going to turn out to be an enormous concern in a short time, particularly as you begin gravitating in the direction of economies which might be unregulated, considerably underdeveloped, who may have a number of these sources, the place it’d be very attention-grabbing to see how that begins to play out as nicely.
MC: Namaan Mian
As we transfer into the electrification of all the pieces, are there sure international locations or areas of the world that you simply anticipate to turn out to be hotspots for industrials that aren’t essentially hotspots right now?
Consultya: Ahmed Elkomy
Yeah, that’s query. So should you look, for instance, and it’s really fairly attention-grabbing, even a number of the oil wealthy producing international locations of, say, the Center East, they’re additionally doing fairly large and betting on renewables as nicely, proper. Like I’ve bought sand, I’ve bought house, and I’ve bought the capital, a number of it’s an intensive quantity of capital that it’s worthwhile to sink in to make these industries viable. So it’s bought a large barrier to entry. And I feel it will likely be worthwhile for lots of gamers down the monitor as nicely. Does that imply that does that imply that the first useful resource isn’t going to be wherever close to excessive in demand? I feel not but, you understand, planes should not gonna go photo voltaic anytime quickly.
Vehicles, by the best way, are nowhere close to the vast majority of the pollution as a lot as folks prefer to assume, as a result of that’s what they work together with each day, however it’s a number of these very totally different industries that you simply wouldn’t actually consider, and that’s the place a number of that occurs. And that’s nonetheless fairly complicated and we’re nowhere close to that but. In order that’s going to take a while. Now, is it going to create winners and losers? I feel completely. Like I stated, I feel some sure, like mining is a type of good examples of I’m not going wherever, I’m on the coronary heart of this.
And I’m in truth turning into the bottleneck, which signifies that I’m going to be making the killing right here. I feel the place it would begin to harm now could be, consider, you was the contractor arrange in a distant a part of the nation the place you have been serving a number of, say, mining firms or industrial firms, chances are you’ll not want wherever close to as many mechanics down the monitor, as chances are you’ll want auto electricians as a result of a number of the gear is now automated. So a number of a few of these legacy trades, they received’t be a legacy, however they’re going to be so much much less in demand. As these transitions occur, I’m going to wish extra folks, I’m going to wish extra electrical folks, extra electrical technicians, folks with totally different talent units, and so on.
And that’s going to harm folks upfront who’re once more, you understand, they’re up and working. They usually’ve invested into the workshop, into the gear, into the spare elements, into the stock, into the provision chain that makes them who they’re right now. In the event that they don’t begin making very fast transitions to what the long run demand goes to require, the long run talent units, and so on, they’re going to be in a little bit of hassle as nicely. Consider a number of {the electrical} automobiles which might be occurring now, you purchase a Tesla right now and the one price you’re gonna have is altering your tire and energy, after which perhaps a battery each eight to 10 years. So the mechanic who used to service your truck on a regular basis and all of the dramas that used to come back with it, and so on. They should begin altering their enterprise mannequin in a short time. So there’s gonna be winners and losers, proper, as any main transition takes place. And I feel those who adapt themselves to the brand new state as early as potential, however it is extremely tough. As a result of you may’t sit there because the man hundreds the workshop and assume, Okay, on the twentieth of August 2025, is what I’m going to vary. Prefer it’s by no means that straightforward. So it’s fairly difficult.
MC: Namaan Mian
Ahmed, as we finish right now’s dialog, I need to get slightly bit extra tactical. So we’ve been speaking about traits at play within the house broadly. However you’ve bought a number of fingers on expertise with organizational transformation initiatives. They are often complicated. And so I’m simply curious, are you able to share with us a few frequent challenges that varied firms you’ve labored with have encountered, and the way you assist these firms overcome these obstacles and a few learnings that the remainder of us can take away from that?
Consultya: Ahmed Elkomy
Yeah, that’s a very good query. Um, as foolish as a few of it is perhaps, let me begin with the obvious ones. Okay. It’s essential begin articulating the why. Why are we doing this? So, once more, the consultants get parachuted into the group, everybody freaks out, my jobs in danger, and so on. Begin with the why. I imply, that’s what I at all times begin with, we have to simplify the operations, we’ve bought to make it extra environment friendly. We’ve bought some threats developing, and we should be extra agile. So we’ve bought to essentially talk the necessity for the transformation and combine that with the present firm comms, as a result of in transformations, no information may be very dangerous information. Okay, so open up the comms, go on steroids, till individuals are fairly comfy that they perceive what’s taking place.
So begin with the why. As a result of as apparent because it sounds, a number of consulting retailers don’t do this, then the subsequent most necessary factor after you’ve achieved that’s that you simply’ve bought the sponsorship of the leaders, okay? As a result of what excites my boss will fascinate me. And so these senior leaders should position mannequin the change that you simply’re going to make. And so all these division leaders and the managers, they’ve to speak these merchandise to their groups, they bought to make it private, I don’t like organising a separate central PML perform that simply calls for updates from the groups, I prefer to I prefer to work by way of the road.
And since it’s the supervisor and the superintendents and the supervisors departments which might be altering, they know one another, they perceive each other. So it has to come back from the road. In order that change must be line lead. And that’s most likely the third factor, you need to be sure that the options are pragmatic and owned by these related people, you need to work with every division chief to make it possible for the transformation, the communication, is appropriate for them. Some may talk through posters, others or through e-mail. Somebody, for instance, in a mining operation, when the place their crew are predominantly in a truck, or in a chunk of substances someplace, sending them emails isn’t the best way to speak to them, proper.
So you bought to tailor the comms to your viewers and make it possible for it really works for them. One other one is, and also you may bear in mind within the final podcast, we talked about co-designing or co-creating which implies I’d know the reply, however that’s not sufficient. If I’m simply shoving solutions down their throats, which so much fo consulting retailers are inclined to do, right here’s the framework, right here’s what we’re gonna do, bang, go make it occur. And I’ll arrange some monitoring and I’ll whack you each week, should you’re behind, and I’ll measure you on reds and greens and all the remainder of it, after which I’ll report up, you understand, all of the non-compliance, it’s like, What a depressing gig, okay, so let’s not do this, let’s sit collectively and co-create all of the options, it’s okay to have the reply in your again pocket. However what you’ll be stunned about, you understand, 7-8 occasions out of 10, is you additionally study so much from these line folks and also you tailor your options much more.
So that you really get a greater reply whenever you co create, so that you have interaction the leaders, you have interaction the top customers in that design. And what you’ll discover is implementation is then a breeze. You recognize, one very onerous factor once more, and we talked about earlier about these PML setups, working a whole bunch of initiatives, leading to a persistent degree of consulting, fatigue, concentrate on the priorities. And I do know it sounds very easy, however you understand, you’ll stroll away, having spent a few mil on a prime down report, 600 slides, and also you’ve bought no concept the place to begin. So keep away from that headless hen syndrome, the place you’re simply wandering round, panicking, making an attempt to get all the pieces achieved, and get nothing achieved. And clearly align these priorities from the management right down to the store flooring.
And one other main factor right here is to just be sure you’re not including further admin, if the transformation is now introducing a tracker, and one other tracker, after which a 3rd tracker to trace these two trackers, and all this complexity that has to happen. The fact is, as quickly because the marketing consultant goes away, all of it falls away, it’s nearly like, lastly they’re gone, I can simply do away with all of this. And I’ve seen it so many occasions, proper. So return to fundamentals, don’t add new conferences, don’t add new monitor, like at no matter stuff you introduce has to have the ability to make folks’s jobs higher, lighter, simpler, faster, extra sustainable, proper. And if it’s not doing that, then actually problem that stuff that you simply’re injecting and introducing them to the group, get suggestions, and so on.
Additionally, there’s no hurt in deploying in phases. So you understand, making an attempt to repair slightly bit all over the place, will actually dilute your focus and the sources and generally getting these small, fast wins can enhance the morale white considerably. So you understand, begin with these priorities, begin with the valuable few, get them achieved, present the group that change is feasible, outcomes are attainable, as a result of they’re gonna get excited. And the very last thing is, you understand, sustainable by constructing that functionality, proper. So constructing that functionality will just be sure you don’t find yourself with these off baked initiatives and archives doc. And so yeah, make, identical to we’ve stated earlier than, you understand, lead collectively, handle individually, develop functionality on the particular person degree, and also you’ll see some outcomes thriving all through the group.
MC: Namaan Mian
I like it.
Consultya: Ahmed Elkomy
I’ve actually tried to compress all of it. However yeah, there’s a few of these, like, key learnings I suppose.
MC: Namaan Mian
Ahmed, as you understand, it’s custom right here at Technique Simplified to finish our conversations with a few private questions, simply to get to know you slightly bit higher. And so my first one for you is simply: is there a chunk of media that you simply’ve lately consumed that you simply’d prefer to share with the world, an article that you simply learn, a present that you simply’ve watched, one thing that you simply’ve listened to? Possibly it’s one other podcast, something that you simply’d suggest our listeners take a look at?
Consultya: Ahmed Elkomy
I’ve been within the impact of affect and persuasion, and how one can articulate your messaging and refining it additional. One of many those that I discover extremely attention-grabbing is Jordan Peterson, I discover that the best way he articulates his arguments and debates can be a studying for me, proper? So you understand, a educated psychologist who’s who’s been on the market on the street, who’s written these books. I imply, I learn the books, they have been fairly good, after which I attended one in every of his visits right here in Brisbane a number of months in the past.
And I used to be simply actually fascinated by the flexibility for somebody to only be very crisp and articulate the best way that they discuss. And I imply, there’s no higher talent on the earth than to jot down nicely, and to talk nicely, no matter what background you’ve, you’re not going to make a change, you’re not going to construct relationships, you’re not going to affect anybody, should you wrestle to speak. So I’ve been making an attempt to look out for those who can sort of position mannequin that for me, so I can study a number of bits about how they do it. And yeah, I’ve discovered that people have been a little bit of a information for me, and I’m making an attempt to only make it possible for I get a few of these learnings.
MC: Namaan Mian
Superb. Properly, Ahmed Elkomy is the Managing Director of Consultya. He joins us from his workplace in Brisbane, Australia. Ahmed, thanks a lot for becoming a member of us right now.
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