Support Optimization

Issue

A young (~7 years old) gold and copper concentrate producer in Brazil lacked cultural definition and process standardization. The Highland Group was enlisted to help the Accounting organization review all processes in terms of efficiency, redesign the organizational chart, and install internal KPIs to measure performance. At the time of engagement, the client’s main concern was in reducing the reporting closing cycle and centralizing functions as much as possible at the corporate office in São Paulo.

Highland Approach

During the analysis, the team uncovered significant issues beyond initial concerns, including:

• Extensive usage of spreadsheets and parallel systems, raising operational risk considerably.
• Time consuming and labor intensive processes, placing significant burden on operational routines and taking time from analytical tasks.
• Non-standard processes across the three mines leading to an inefficient consolidation process.
• Lack of a well defined roles and responsibilities.
• A high level of tax penalties.

The Highland Group partnered with client teams to implement a new organizational structure and standard, reengineered processes across the three mines, placing a strong emphasis on better control levels on critical inputs for the Accounting function.

Actions Taken

Rapid and measurable financial results were realized through the implementation of 4 primary work streams:

• Rationalized and standardized processes.
• Managed data collection, validation and measurement.
• Realigned the organization around continuous improvement.
• Implemented a System For Managing for accounting and fiscal operations.