The appointment of Laura Tyler as chief technical officer and Johann van Jaarsveld as chief development officer – two newly created roles – are Henry’s most significant.
Chief technical officer is a fairly anodyne title, on the face of it. A closer look at the job description suggests Tyler’s will be a key figure in the new structure.
Her new role encompasses exploration, health, safety and environment, BHP’s centres of excellence, plus technology and the so-called “BHP Operating System” – its road map to share, standardise and improve the way BHP operates, trains staff, solves problems and maintains equipment across its global operations.
All are key planks in Henry’s core strategy – the “enablers” of performance and productivity gains, as he puts it. And almost all are initiatives either developed or championed under his leadership of BHP’s Australian operations. Chief enabler of Henry’s vision would, perhaps, be a better title for Tyler’s new role.
Similarly, Henry’s move to hand Brandon Craig the leadership of BHP’s flagship iron ore division also suggests a move to cement his own initiatives within the miner’s structure.
The appointment was something of a surprise given Tim Day, acting in the role since the elevation of Edgar Basto to become BHP’s Australian boss, is well liked within the division and coped admirably with the COVID-19 crisis.
But Craig has been running BHP’s maintenance and engineering centre of excellence (where Day has now been installed). That centre is another of Henry’s creations and he sees it as a core part of BHP’s quest for reliability. The swap not only rewards Craig’s work in that role, but suggests Henry sees Day as one of BHP’s rising stars.
The appointment of van Jaarsveld as chief development officer suggests change is in the winds, as BHP runs iron ore and coal for cash and Henry looks to his “future facing” commodities – copper, nickel and (maybe) potash – for growth.
It’s been a long time since BHP regularly looked to the drill bit for a bit of blue sky. Not since Chip Goodyear’s “acorn” strategy – which withered under Marius Kloppers and all-but disappeared under Andrew Mackenzie – has BHP aggressively chased partnerships with junior explorers, or pegged much of its own greenfields ground.
That started to change under the latter years of Mackenzie’s regime when its transformation team, under the leadership of Jonathan Price, started to push smaller investments they hoped would grow into greater oaks. That, and a thawing in Mackenzie’s approach to growth after five years of asset sales and portfolio slimming, saw BHP push directly into Ecuador, and strike up new partnerships with juniors in the Americas.
But the elevation of van Jaarsveld to BHP’s core leadership team suggests it will again be scattering acorns across the globe, belatedly following the lead of rivals such as Rio Tinto, Newcrest, South32 and OZ Minerals, and getting busy with partnerships at the smaller end of the industry.
The appointment of Rag Udd as president of Minerals America caught even many BHP insiders by surprise. There’s little question Udd was in line for a promotion – any doubt about that was erased by his performance as acting boss of BHP’s technology division after Diane Jurgens’ speedy departure, cutting costs and smoothing the transition of its staff and programs into BHP’s operating arms.
His appointment as one of BHP’s three most senior operating roles – alongside petroleum boss Geraldine Slattery and Minerals Australia president Edgar Basto – rewards that performance.
It also brings BHP’s Americas division far closer to Henry and its Melbourne headquarters. Udd reported directly to Henry when the BHP chief was running its coal operations and Henry – who has had less direct exposure to its US and South American operations than its Australian mines – now has a trusted lieutenant running the show at a difficult time in the Americas.
Caroline Cox’s ascension to Geoff Heally’s role as chief external affairs officer leaves BHP’s complex legal, governance and social affairs in as safe a pair of hands as possible.
And finally, to the departures.
The fact that well-regarded veterans Geoff Heally and Danny Malchuk will leave BHP is no surprise. But the fact that both have remained in place for so long under Henry’s leadership offers a key insight into his tenure – the new leadership team is an evolution of BHP, not a revolution.
Like the end of Peter Beaven’s tenure as BHP’s chief financial officer, the long-crossover and gentle departure gives each the dignity their service and achievements deserve.
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Mike Henry put the finishing touches on his executive leadership team at BHP’s annual financial results and, while the changes attracted few headlines, they foreshadow more significant shifts than a first look suggests.