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Case Notes
Case 15.2: Sibanye: Changing Mindsets in Mining through Contextual
Leadership
Caren Scheepers and Ken Mathu wrote this teaching note as an aid to instructors in the
classroom use of the case Sibanye: Changing Mindsets in Mining Through Contextual
Leadership, No. 9B16C026. This teaching note should not be used in any way that would
prejudice the future use of the case.
This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any
form or by any means without the permission of the copyright holder. Reproduction of this
material is not covered under authorization by any reproduction rights organization. To order
Teaching Note
Synopsis
Dawie Mostert is the executive vice–president of commercial services for Sibanye, the largest
gold mine in South Africa. Mostert is hoping to persuade the managers of Sibanye’s newly
acquired platinum mine to embrace change and adopt the Sibanye vision and culture. However,
that vision is radically different from the traditional authoritarian management style of the new
entity’s managers. They are not accustomed to the involvement and participation of employees in
the company’s vision. As a result, they are showing some resistance.
Instructor Resource
Rowe, Cases in Leadership 5e
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important organizational information to all workers, including those at the lowest level. Although
executives normally remained distant in their offices at headquarters, they began meeting with
mineworkers in the underground work areas.
The case study illustrates the value of caring—not only for employees but also for the
Learning Objectives
• To apply change management theory to a case study.
Position in Course
The case can be used in an honours or masters business program in courses on organizational
development, organizational behaviour, human resources strategy, and supply chain
management.
Relevant Readings
• Christensen, C., Marx, M., & Stevenson, H. (2006). The tools of cooperation and change
84, no. 10. Boston, MA: Harvard Business Publishing. Available from Ivey Publishing,
product no. R0610D.
Instructor Resource
Rowe, Cases in Leadership 5e
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Additional Materials
• Scheepers, C., & Mathu, K. (2016). Sibanye: Changing mindsets in mining through
Assignment Questions
1. Critically analyze the changes in mindset required by the numerous stakeholders in the
2. Present your judgment of the sustainability of the supply chain management at Sibanye.
3. Evaluate the contextual variables in the Sibanye case according to political, economic,
Teaching Plan and Focus Areas for Three Sessions
The three learning objectives noted earlier in this teaching note are designed to assist instructors
of courses in organizational development, supply chain management, and leadership by focusing
on three main areas in those disciplines: choosing an appropriate approach to change
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Note to the Instructor Regarding Learning Objective 3
A contextual map template is provided as an aid for students for creating their own contextual
maps (see Exhibit TN-2). A completed contextual map is provided for instructors to use as an
example for the discussion of Learning Objective 3 (see Exhibit TN-3). Many business strategy
Analysis
1. Critically analyze the changes in mindset required by the numerous stakeholders in the
Sibanye case study. Recommend future actions by referring to models in change
management.
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The unbundling of Gold Fields offered an opportunity for the new management of Sibanye
to unfreeze the system and break away from the old, traditional mindset in mining. The fact that
management mentioned the employee surveys implies that the company was open with its
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identified in order to enable effective communication, as stated by Bourne and Walker.7
Freeman8 and Freeman and McVea9 defined stakeholders as groups of individuals who are
affected by or can affect the achievement of an organization’s objectives. Newcombe10
differentiated between internal and external stakeholders.
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crucial dimensions: the extent to which people agree on what they want and the extent to which they
agree on how to get what they want.
2. Present your judgment of the sustainability of the supply chain management at Sibanye.
Refer to definitions of internal and external supply chains, and discuss the characteristics
of a green supply chain.
The instructor can direct students to one of many available readings on green supply chains as
background information for the discussion of this question.14 Supply chain collaboration refers to
two or more supply chain partners working together toward the same goal. Collaboration also
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Sibanye’s success in contemporary mining is contextualized because it was founded on
perfecting Gold Field’s experience. The conventional mining practice commences with an
exploration licence, followed by an application for mining rights and compliance with
environmental management impact.17 The Environmental Management Act of 1998 requires all
mining companies to provide an environmental management plan that will preserve the habitat
where mining is to be carried out. That responsibility also includes the rehabilitation of the mine
and the vicinity. All these requirements, in the case of Sibanye, were undertaken by Gold Fields
on inception of mining. Sibanye has continued to adhere to environmental protection.
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process, management, labour relations, supply chain management, social responsibility, and
environmental management, among others.20 The company excelled by improving its supply
chain through collaboration with all the stakeholders, including management, employees,
shareholders, unions, communities, and the government.21
Gold deposits now exist in 3-kilometre deep mines that require specialized technologies, as
in the cases of the Driefontein and Kloof mines. The other available reserves are in abandoned
mine dumps that require state-of-the-art technology for extraction.22 Therefore, the use of
technologies and automation is crucial to optimize mining output. Workers require training to
adapt to the changes and to prepare for automation.23 Researchers visiting the Kloof mine found
retrained workers who displayed enthusiasm, energy, and a willingness to perform tasks. They
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beneficiation. This is a great opportunity for Sibanye’s involvement in the value creation of gold,
which is traded in specialized markets. Therefore, Sibanye’s involvement in gold value creation
is crucial because the company is the leading producer in South Africa and one of the top 10
leading global players.24
The sustainability of Sibanye’s business model is crucial for the company to drive a strategy
for its vision, which aims to have superior value creation for all the stakeholders through a culture
of caring. To excel in a global economy that is on the decline requires a high level of differentiation
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To Sibanye, a green supply chain comprises all features identified as changes from
conventional ways of performing tasks, affecting all features from the suppliers of equipment
and materials required for mining through the mining processes, stockpiling, beneficiation,
management, transportation, and export market. In its contextual approach, change from the Gold
Fields way of doing business can be considered as being green. The company is involved in many
activities that are lean in approach and render the operations agile.29 The factors that attest to
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technologies that will modernize its mines. Technologies are expected to enhance safety at the
workplace, and to improve productivity and exploitation of resources from the deeper level. A
visit to one of the mines shows that precautions are taken for safety. The miners drill sideways
on the reef containing gold to minimize the possibility of collapse. Also evident is ongoing
development for perfecting the tunnels to the lower part of the mine.
3. Evaluate the contextual variables in the Sibanye case according to political, economic,
social, technological, legal, and environmental (PESTLE) factors, and discuss whether
Mostert illustrated contextual intelligence as a leader at Sibanye.