Risk management
This type of stakeholder engagement has also proven to be an
essential element of market expansion. For example, the milk
processing and packaging company Tetra Pak saw enormous
success in Bangladesh through support for dairy hubs that worked
in collaboration with local processers and farmers, instead of
investing in large-scale commercial farms.
Tetra Pak created an entire dairy business out of nothing and the
lynchpin was extremely well-structured stakeholder engagement.
The dairy hubs provided free support and education to local
small-scale dairy farmers, increasing their assets and production.
Between 2010 and 2012, more than a thousand farmers, who may
previously have had one or two cows, were in a position to own 10
cows and rely on milk production as a primary source of income.
This model of collaborative investment provided a sustainable
solution for long-term growth and profitability.
Collaborative investment and collaboration, simply speaking, are
low-cost and high-return. True company-community collaboration
involves treating communities with dignity, in a way which empowers
them, and lets them increase their agency in their own lives.
In my book, Management in Complex Environments, I combine analyses,
case histories, and reflections from business leaders on how to navigate
the risks and challenges of doing business in difficult places and show
how it is possible to thrive and secure growth and stability.
www.africanmining.co.za
What we find is that it is really difficult to unlock opportunity in
difficult places. Companies are often struggling to do the basics
well. The first step when dealing with complex sociopolitical
environments is to assess and analyse the landscape. The more
complex the environment, the broader the landscape seems to be.
Only once we have a good picture of the landscape — how all the
players and pieces relate to one another — can we come up with a
cogent plan of action.
After analysis, suddenly we see that there are paths forward, when
all we saw before were walls and blockages. The mediation course
draws on extensive experience and research to teach the necessary
analytical tools and then offer a practical operational approach to
go about taking constructive action. We show people what good
conflict resolution looks like, so they can actually go and do it. b
About the author
Professor Brian Ganson is the convener of the Advanced
Training in Company-Community Collaboration and
Conflict Resolution in Complex Environments course at the
UCT Graduate School of Business (GSB).
To find out more about the course, visit
http://www.gsb.uct.ac.za/mediation
MAY - JUNE 2019 AFRICAN MINING
33