In the mining industry, there is a fundamental flaw in how decisions are made. The information used by leadership and management teams is often dangerously incomplete. Decision-makers, usually situated in offsite offices and boardrooms, rely heavily on spreadsheets, dashboards, and reports for an understanding of operations. However, this is akin to navigating through a rapidly changing environment with a low-resolution map from months ago. At best, the information they have is dangerously sanitised, leading to flawed decision-making.
I worked for an engineering company where operations would practically halt for a CEO visit. The office was dressed for the occasion—engineering drawings hidden away, flowers ordered, additional cleaning undertaken. Meetings and work ceased as everyone gathered to greet the CEO, who would then deliver a speech about the company's bright future. Once the visit ended, things returned to normal—flowers disappeared, red carpets were rolled up, and we could get back to work. This experience is not unique to one company; similar events occur across different roles and companies. CEO visits of this nature are more disruptive than you realise.
The bigger issue hidden beneath these ceremonial visits is what we call the iceberg of ignorance. First identified in a 1989 study by Sydney Yoshida, the iceberg of ignorance refers to a significant information gap in hierarchical organisations, especially in mining. Top executives typically know only about 4% of the organisation's frontline problems. Middle managers might know 9%, supervisors have visibility on around 74%, while frontline workers, operators, maintainers, and technicians have complete visibility as they encounter these issues every shift. Decision-making thus feels reactive. Leaders make critical, capital-intensive decisions based on incomplete information, reacting to issues only once they become apparent, long after proactive interventions could have been made.
Poor communication compounds this problem, as people are often unable to report issues up the chain. Leaders end up driving the business by looking in the rearview mirror, using lagging indicators like missed targets. The concept of an “execution gap” arises when smart strategy doesn't translate into financial results because operations can't execute as planned—the chaos of operations overshadows important tasks. This happens because bad news travels slowly, if at all. Hence, 96% of operational issues remain hidden from ultimate decision-makers, lying beneath the surface, as unseen as the submerged part of an iceberg.
Reversing this situation requires operational clarity for mining leaders—they need line of sight and operational assurance. If a site lacks this, gaining it should be a priority. The ideal solution is implementing a built-in feedback system offering real-time operational visibility. However, establishing such systems takes time.
As an immediate step, conducting a full operational diagnostic becomes vital. Our free assessment tool can help identify operational blind spots. Performing this diagnostic individually and comparing results with your team can lead to insight. Often, our consultants, following a diagnostic process, hear clients say, “We knew it was bad, but not this bad.” This realisation underscores the iceberg of ignorance that persists.
In the mining world, overcoming the iceberg of ignorance offers a pathway to more informed and agile decision-making. By actively seeking to fill information gaps and encouraging transparent communication flows, mining leaders can navigate operations more effectively, ensuring strategies manifest in on-the-ground realities.
