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 “If you always do what you’ve always done, you will always get what you’ve always got.”

Albert Einstein famously German physicist

The idea that we need to think differently and act differently if we want to get different results sums up the commercial transformation we are currently implementing at Anglo American; and the prize is significant: we have committed to investors that our enhanced commercial activities will deliver a $400 million operating profit improvement by 2016.

So what’s different?  Even a cursory glance at recent developments in the mining sector shows that our market place is fundamentally changing – from increasing liquidity and greater competition to the inexorable shift in demand towards Asia – and those changes present exciting opportunities for us to create value for our shareholders and our customers, whether by understanding customers better, by optimising and arbitraging market imperfections or by reducing our costs-to-serve.

Commercial transformation at Anglo American

In many cases, it’s about getting the fundamentals right, such as having world class market intelligence, so we really understand what our customers want; or developing more sophisticated logistics and shipping solutions to enable us to get the right product to the right customer at the right time – and at a price which is attractive to both parties. We’re also putting in place more robust commercial risk and performance management tools to give us a clearer picture of how and where our marketing activities create value for the business as a whole.

In the end though, Commercial is a people business, and our success will come down to the quality of our people. For what makes a great team, I look again to my native Germany, and Bayern Munich – a football team that has won the German Championship nearly 50 per cent of the time for the last 50 years. Its secret seems to lie in clarity of vision, a drive for perfection and, of course, a group of talented individuals who work together to create something greater than the sum of its parts. That’s a formula we plan to replicate in Anglo American’s Commercial team as we build and nurture our team’s talents to ensure we are a winner in today’s dynamic market place.

To view more images of our new Singapore office click here.

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