Part of McKinsey’s Basic Materials Practice, Metals & Mining is a global consultant and research group serving clients in steel, nonferrous metals, and mining industries around the world. We help clients—from small and large companies to niche players and commodity producers—to discover the answers that matter through the entire value chain from mining through distribution. With approximately 350 experienced practitioners worldwide, we can provide responsive and relevant service.
Our expertise
Commercial Transformation
For many metals and mining companies, marketing and sales is an underutilized lever that can typically unlock 3 to 8 percent of EBIT margin and build a platform for growth. We work with clients to capture this value through a combination of superior insights (e.g., sources of total-chain value creation) and critical organizational enablers (e.g., performance-management system). We help clients realize an integrated transformation that both delivers short-term impact and institutionalizes change.
Operational Improvement and Transformation
Even high-performing companies need to strive for continuous operational improvement to secure their competitive position. Operational changes with technical improvements are typically the backbone of a transformation program, but it should also include much broader questions related to product development, purchasing and supply management, and service operations. Organizational changes are needed to make the transformation happen and are as important as technical problem-solving approaches. We provide tools to enhance productivity, manage core process redesign, and reduce complexity, bundled with advice and on-site support for implementation.
Organizational Effectiveness
Enhancing an organization's effectiveness can create a good deal of additional value and in turn will improve its performance and health. We work with our clients to help find business improvements through:
- Organizational behavior (e.g., mind-sets and capabilities, culture, talent and HR, and leadership)
- Organization design (e.g., organizational structure including enterprise-level structure, corporate center, and business units)
- Structure of specific functions (e.g., finance and HR function)
- Management processes (e.g., talent and performance management)
- Decision-making top teams (e.g., committee structures, individual/group roles, CEO span of control)
- Merger management (e.g., planning, integration, and capability building and post-merger integrations).
To help us serve clients, we use a variety of proprietary tools, including the broad-based Organizational Performance Profile survey, auxiliary surveys, deep structure interviews, and benchmarking, including the Overhead Benchmarking Database and benchmarking of management processes (EPRs and key performance indicators).
Strategy
We provide strategic advice and practical insights supported by insightful industry perspectives to help companies redesign their strategies in the face of many challenges: strong demand growth, high volatility, ongoing consolidation, shifting profit pools across the value chain, the changing needs of customers, and differences in regional development. This pressure also includes the changing environmental needs, such as CO2 abatement, which is becoming increasingly important.