ACARP Roadway Development August 2009 The Way We Work - Harnessing Development Teams at Dendrobium

Slide 2 Business Context Illawarra Coal’s intention is to be a values based organisation that adheres to high standards of integrity, respect and trust. The purpose of the ‘Team Work Standards’ is to establish a set of performance requirements which will guide the people within Illawarra Coal to deliver the best they can for themselves, the team and the business.

Slide 3 IC Team Standards – 5 major components Team Purpose Zero harm Capability Behaviour Results

Slide 4 The “Way We Work” Strategic Intent – provide competitive advantage through an aligned and values based workforce Business Plan Objective 5 Year Strategy People Pillar

Slide 5 The “Way We Work” – why do it? Designed around Engaging Frontline Supervisors and How their teams work together. Leadership – providing feedback and recognition Role Clarity & Responsibility - Undermanagers and Deputies, how do they steer their teams? Providing Development teams with ‘Buy-in’ into the achievement of Business Goals Bringing ‘Values and Behaviours’ into the Way We Work

Slide 6 Illawarra Coal Values  Commitment to HSEC - We have an overriding commitment to health, safety, environment and our communities  Integrity - We are open and honest, we do what we say and treat each other with respect  Courage to lead - We have the courage to own and lead improvement – We challenge the norm  Decisions based on facts - Resourceful people who make decisions based on facts and data  High performance - Passion for meeting or exceeding our goals WHAT DO THESE VALUES MEAN TO THE AVERAGE EMPLOYEE? Values The core contributors in driving behaviours and attitudes Values that the workforce believe in

Slide 7 Why do it? - 5 Year Strategy  FY09 Context Setting Getting the Supervisors on Board, Supervisors provided with basic leadership tools and behaviours Supervisors assisting in developing team charters  FY10 Embed and Enhance Supervisor Training and Coaching in LZH Behaviours Supervisor Reviewing and actioning development plans Supervisor supported development of team charters, aligned to Dendrobium Business Plan with measurable target  FY11 Alignment Supervisors network on roles and behaviours at IC workshop Supervisor conducting performance reviews against team charter and recognising good performance Supervisor lead development of charters, aligned to Dendrobium Business Plan with measurable target  FY12/13/14 Team Goal Setting & Performance Assessment Employees living the values Team achieving outcomes on team charters Supervisor facilitated team sessions, Team assess performance and determine corrective performance actions on a monthly basis

Slide 8 The How? Supervisors Facilitated Session with all Frontline Supervisors prior to Crew Team Building Sessions. - All supervisors from each area of Development (i.e. MG6) - N/S, D/S, A/S, WE D/S, WE N/S Deputies - Training in leadership tools - 4 hour session Leadership Role Clarity Behaviours and Values Performance Feedback Monitor and Review Linkages to Business Plan My pick – the Cajun Rack of Lamb and Salt & Pepper Squid

Slide 9 The How? Crews Crew Team Building Sessions  2 day facilitated session (approx 50 people)  Introduction to new start of shift process tool (ROPES)  Refresher on Leading Zero Harm Safety Tools  Development of Team Charter Team Identity Team Purpose Values – What do they mean for each crew? Setting of Measurable Objective around – Zero Harm, Standards and Behaviours, Efficiency and Results Setting of 30, 60, and 90 day targets Success for the Team is ……………………………………  Crew skills matrix

Slide 10 MG6 Green Gators Zero HarmStandards & BehaviourEfficiencies & Results  No TRI’s for MG6  All LAMPS witnessed and noted on ROPES board  Review 3 procedures by the end of MG6  No downtime due to skills shortage – 80% green on skills matrix  House keeping audit – 1 per tour  100% compliance 103 inspections  Implement 3 improvement ideas for MG6  Conduct shiftly performance reviews  Lead the average MPOH league table Dendrobium Team Purpose: Lead the way in safe production Success for our team is … Completing MG6 on time, injury free, whilst maintaining team integrity Our Values and Behaviours Commitment to HSEC – The safety tool bag is part of our culture Integrity – Ownership of our actions Courage to Lead – We have zero tolerance to poor standards Decisions Based on Facts – Be prepared to change by letting standards drive the process High Performance – Solid team commitment to performance MG6 WWW February Day Targets60 Day Targets90 Day Targets  4 MPOH for 3 hrs  4 MPOH for 4 hrs June 09

Slide 12 Charter review process 30 DAY REVIEW Results forwarded to crews 1 week out Crews review performance against Charters Each crew presents results to shift 60 DAY REVIEW 90 DAY REVIEW RESET 30, 60, 90 Day Goals New Charters developed for all process changes (i.e. new gateroad panel) Front line Supervisor (Deputy) and Undermanager Driven – maintained at crew level

Slide 13 Results – has it been successful? ?

Slide 14 Key Learning's Understanding the purpose of the Way We Work -what were we trying to achieve -selling the vision -Making it sustainable Getting buy-in from Shift Undermanagers and Deputies getting the key people to ‘buy’ into the vision and want to ‘own it’ Crews do not believe we resolved the issue of shift to shift standards and replication Review Process what is this really about? for me it is about the Shift Undermanager and the Deputy engaging with their crews originally this seemed foreign to people and hard work