A BUSINESS NEWSLETTER FOR BLUESCOPE PEOPLE Issue 32 May/June/July 16
COLORBOND® STEEL TURNS 50! Full Year Earnings Update In 2016, we are celebrating the 50th anniversary of COLORBOND® steel. This major ‘coming of age’ milestone gives us an opportunity to acknowledge the very special place that COLORBOND® steel holds in Australia. Through a wide range of activities, we will be recognising everyone’s contribution to
making COLORBOND® steel the iconic brand that it is today, enabling all of us to share in the achievement.
There are two key elements to the Anniversary; a new television advertisement and ’50 Days’ of activities across the country that will be starting on 22 August. Page 4
BlueScope updated the stock market with its expected (preliminary unaudited) financial results for FY2016 in mid July. The figures show significant improvement in our Company’s performance, with underlying earnings before interest and tax up to $570 million and net debt reduced by approximately $600 million - even after the acquisition of the remainder of North Star BlueScope Steel at Delta, Ohio. CEO Paul O’Malley said the results were very pleasing and showed the huge strides we have all taken over the last 12 months. We’re on the right path towards a sustainable future. The formal release of full year audited results will occur on 22 August.
... AND CELEBRATING ANOTHER ICONIC 50 YEAR ANNIVERSARY It was 31 May, 1966, when Anne Poremba began her career at Steelscape, at the time known as Reliance Steel & Aluminum. Anne started off as an Accountant and with time moved into a purchasing role, which is where she gained most of her industry knowledge. In 1974, she moved to the Rancho Cucamonga office where she answered the phone and did clerical work. Because the Sales Department was small, Anne started taking the overflow of calls from customers. One man she worked with asked her what she was doing and he basically stated, “this is a man’s world Anne, you can’t do that.” She continued to help out with the overflow of calls and got to know the customer base very well.
Anne went to her boss and told him that she wanted to be on the Order Desk permanently. She was told again that, “this was a man’s world.” She asked him to give her a chance and he told her that he would give her six months and if she didn’t do a good job, he would have to fire her. Anne said that, “It was fine with her, but if she did good, he would have to give her a raise and have it retroactive from the day she started and after the six months she wanted him to hand deliver her first paycheck.” Needless to say, Anne was very successful and was the first woman ever hired onto the Order Desk. She has been in Sales ever since and currently is the Senior Customer Service Representative in Rancho Cucamonga. Anne has an amazing history with our Company and it’s fascinating to hear her stories. In fact, Anne has been working on a book (memoirs) with the help of others titled, “As the Coils Turn.” She is on chapter 24! BlueScope is proud to have Anne as part of the team. She is a credit to herself, her team, her business and her Company. Congratulations on a terrific career to date!
WELCOME
At a function to honour Anne’s 50 year anniversary, Scott Cooley, Vice President of Sales for Steelscape said, ”I have known Anne for 14 years and I am blown away by her dedication to Steelscape and her customers. I think about all the change she has seen in the 50 years she has worked here and how she has been the one constant through it all. I know firsthand how much her customers love having Anne on their account, many of whom would launch a massive lobby if we ever shifted her to another account! It is nearly impossible today to find anyone, anywhere with the tenure Anne has in this business. It is truly an amazing accomplishment and I am proud to call Anne a co-worker and a friend.”
IN THIS ISSUE 02 BlueScope reputation in top 20 03 Innovation drives efficiency in BlueScope Buildings
06 Scholarship supports diversity in leadership 06 Developing a career – not always easy
03 A great new approach to safety audits
07 Safety coaching in China
04 The 50 days of COLORBOND® steel
07 NZ celebrates its apprentices
HORIZON Issue 32 June 2016 Page 2
Lucky 13: BlueScope’s reputation rank climbs inside the top 20 BlueScope has moved into 13th position in Australia’s 2016 corporate reputation index published by AMR and the Reputation Institute leaders in global research for reputation. The result is an improvement on our ranking of 22nd in the 2015 survey.
Michael says we are punching well above our weight. “When you consider we are competing against much larger consumer-facing companies with massive advertising budgets, such as retailers, airlines, car manufacturers and technology companies, it is a great result.
“The online survey of 7,500 Australian consumers rates the top 60 largest and most well-known companies in Australia and BlueScope’s 2016 score of 72.6 is our highest in the 12 years it has been running,” explains Michael Reay, BlueScope’s Manager for Corporate Affairs and Brand.
“Research shows that a well-regarded company with a strong reputation is more likely to be liked, trusted, admired and esteemed. Essentially, Corporate Reputation is measured on these four things: • Do you trust the company? • Do you like the company?
“This is a great result for BlueScope and the collective efforts of all our people. Even more impressive is that, if we remove the multinationals and only include the home grown Australian companies listed on the ASX, BlueScope moves up to 3rd position. Furthermore, we rank 1st when we only compare ourselves against our industrial peers.”
• Do you admire the company (which goes to respect)? and
Michael says that these days the general public is well attuned to companies that are good corporate citizens and those that are not. We understand the importance of having a strong reputation. We need people to support us and it is important for BlueScope to continue to build goodwill with its stakeholders. “The power of a strong corporate reputation cannot be underestimated. It opens doors with governments, it gives customers comfort they are buying products from a reputable company, it ensures we have the support of our communities to maintain our social licence to operate and it provides reassurance to financial institutions who lend us money and to shareholders who invest in us,” says Michael.
• Do you hold the company in high esteem (meaning is your opinion favourable)?”
BLUESCOPE 13TH IN 2016 CORPORATE REPUTATION RESULTS February 2016 Reputation 31-60
February 2016 Reputation 1-30 JB HI-FI Toyota Motor Corporation Samsung Qantas Airways Mazda Australia Air New Zealand ALDI Australia Devondale Murray Goulburn Apple Australia Hewlett-Packard Virgin Australia (formerly Virgin Blue) Nestle Australia BlueScope Steel Flight Centre Hyundai Australia The Good Guys ING Direct Wesfarmers (owner of Coles, Kmart, … Australia Post Harvey Norman Myer Bendigo and Adelaide Bank IBM Australia Suncorp Group Bupa Lion Insurance Australia Group (IAG) … Optus QBE Insurance Group Ford Australia 0
79.82 79.66 76.95 76.86 76.69 76.15 75.38 74.63 74.26 74.19 73.97 73.54 72.59 72.52 72.09 71.73 71.67 71.58 71.52 70.90 70.82 70.28 69.97 69.84 68.56 68.07 67.70 66.99 66.85 66.75 20
40
60
Score
80
100
ANZ National Australia Bank (NAB) Scentre Group (owner and operator … Caltex Australia GM Holden Westpac Allianz Australia Visy Industries Zurich Financial Services Woolworths Energy Australia Commonwealth Bank of Australia (CBA) Medibank Private AMP BHP Billiton Coca-Cola Amatil Shell Australia Citigroup Macquarie Group Telstra Origin Energy AGL Energy BP Australasia Foxtel Vodafone Hutchison Australia (owner … 7-Eleven RioTinto Australian Taxation Office (ATO) Fairfax Media News Corp Australia (formerly News … 0
66.51 66.28 66.20 65.99 65.85 65.12 65.06 64.81 64.78 64.34 64.24 63.91 63.91 63.80 63.39 62.93 62.57 61.96 61.94 61.71 61.32 60.83 59.85 59.64 59.60 59.06 57.91 56.29 54.28 49.81 20
40
60
Score
80
100
HORIZON Issue 32 June 2016 Page 3
Innovation drives efficiency in BlueScope Buildings An innovative project in BlueScope Buildings has revolutionised the way hand welders use design drawings to manufacture parts and has led to some unexpected benefits and cost savings. “Following the 2008 acquisition and integration of Varco Pruden, BlueScope’s North American manufacturing business adopted the proprietary drawing type for fabrication generated by the Vision Engineering System,” says Ben Soumis, Logistics & Buyout Manager. “These documents were a combination of very simple ‘stock’ part images and text based instructions. “However, over time, both the manufacturing landscape and BlueScope needs have changed. The old format required a long training period and was only in English. We recognised that as most of our newer skilled labour already understood standard drawings, if we could create our own drawings we would solve the training issue.”
“We started a project to automate the creation of standard part drawings, known as Manufacturing Shop Drawings,” continues Bob Anderson, IS Application Manager. “As we started analysing the options, we realised an opportunity for another gain. The best way to generate standard drawings was to create a 3D model of each part and use construction industry software to automatically create the documents. We would then not only have all the standard drawings we needed, but also a 3D model of each finished part. “As development and testing proceeded, Ben and I ran a pilot of the new drawings in our St Joseph facility. We immediately noticed the vast amount of paper printed for every hand welder to use on each job and calculated that equated to roughly USD300,000 a year for all BBNA facilities just in printing drawings. So we then started to investigate alternatives for further improvements.”
“We researched ‘ruggedized’ tablets that could both survive and be warrantied within our shop environments,” adds Ben. “And Bob programmed a fully custom application so that every hand welder can view the new standard drawings, together with a full 3D model of each part they are fabricating. “Coincidentally, I was working on another project to change how we assess hand weld efficiency from the weight of material welded per hour to a measure based on the time taken to weld the part. The Vision Engineering System we had been using had a very good algorithm to estimate how long it takes to hand weld each piece and we incorporated this unit of measure into the application. Using the scanner feature on each tablet, we were able to automatically measure and log time welding each custom frame part and so drive efficiency.” BlueScope Buildings North America has made record gains in efficiency each month the tablets have been in use. And the hand weld team leaders say the new method of working is easier for training and improves quality. “We are confident this move to standard drawings and 3D model for each member we create is a stepping stone to more technological improvements in the Buildings business,” concludes Bob.
A GREAT NEW APPROACH TO SAFETY AUDITS The Construction Global Requirements are BlueScope’s minimum safety requirements to control high risk activities associated with the construction of engineered buildings. The requirements cover a full range of tasks that take place on a construction site, such as unloading and storing steel, cranes and hoisting equipment, scaffold, roofing and decking, ladders, elevated lifts and separating people and equipment. In a first for BlueScope, a new online tool now allows for real time safety audits of compliance with the construction global requirements. Known as ‘GREAT’ – Global Requirements Escalating Audit Tool – the reporting system can be used on smart phones and tablets, as well as laptops and
PCs; it enables photos to be easily uploaded; and it is available in seven languages for use right across BlueScope. GREAT is for use with both BlueScope and Contractor Safety Management Systems and improves the efficiency of safety audits by offering real time reporting insights and enabling any actions that do not conform to the Global Requirements to be immediately escalated for further investigation. GREAT was tested and piloted before going live in February and BlueScope’s Board of Directors had a hands on opportunity to use it during a recent visit to Malaysia.
Construction Global Requirements • defined as a requirement that if not carried out correctly has the potential for a fatal or severe incident • all BlueScope Construction undertakings comply – they are considered the minimum standard to operate in construction • developed in response to a number of serious incidents in BlueScope’s construction activities, including fatalities due to falls from height • apply to all BlueScope employees undertaking construction work, all BlueScope businesses contracted by a third party to carry out construction work, any contractor and/or sub contractor engaged by a BlueScope business to carry out construction work and both ‘BlueScope System’ and ‘Contractor System’ classifications
BlueScope Directors were briefed before using GREAT to conduct a safety audit.
Examples from an audit using GREAT.
HORIZON Issue 32 June 2016 Page 4
THE 50 DAYS OF COLORBOND STEEL ®
The success of COLORBOND® steel is founded on people – people who choose to buy it, sell it, build with it, specify it, install it... and above all, on the people in BlueScope – you, our staff, without whom there would simply be no COLORBOND® steel. With this in mind, the ’50 days’ have been set aside to ensure that we say ‘thank you’ and celebrate everyone’s contribution to the brand’s success. From a palette of just 6 colours in 1966, we have grown to a standard palette of 22 colours, inspired by Australia’s own magnificent backyard and a capability to offer many more colours. From Terrain® ; a rich rusty red colour reminiscent of our famed outback, to Woodland Grey ® ; inspired by the depth of cool green forest, to Dune® ; a warm pale grey associated with the textured landscapes of granite rock and stone, all our colours pay tribute to the beauty of the Australian landscape. Of course, it is not only our expertise in selecting colours that has helped COLORBOND® steel earn its enviable reputation, but also our commitment to technical development and to testing our products both in the laboratory and on outdoor exposure sites. During the 50 days campaign we’ll be sharing some of these essential product technology development and testing stories, as well as demonstrating the beauty and strength of COLORBOND® steel in both commercial and residential buildings, in a way that connects it with the Australian environment and with the people who create and use the buildings we are celebrating.
From late August, we will be having some fun by stepping back in time to the year of COLORBOND® steel’s inception, 1966 and contrasting this with where the brand is now. We will have COLORBOND® steel coffee vans outwardly dressed to look like a new TV campaign, but set up so wherever they stop, they reveal a 1960s setup. These vans will be appearing at customer sites all around the country, offering coffee to employees, the customers’ customers and consumers. There will also be Industry breakfasts in every State and you will see a special COLORBOND® steel digital magazine, not to mention a promotion for our trade customers as well!
As you can imagine, there are some special ‘thank you’ celebrations and give-aways that will be happening internally, starting late August… and details of these will be coming to you soon!
2016 is a very special year for COLORBOND® steel. It’s a unique opportunity for us to show our appreciation to our customers and to celebrate your commitment to BlueScope and the COLORBOND® steel brand. We hope you enjoy all the activities that are to come. Thank you!
HORIZON Issue 32 June 2016 Page 5
Maintaining tradition with BlueScope Lysaght BlueScope Lysaght Malaysia has worked with Australian architects Studio 505 to transform an architectural design into reality. The design of the Malaysia Academy of Han Studies (MAHS) education centre in Malacca is based on the village atmosphere of the ancient Tulou clusters in Southern China. The focal point of the building is the roof design, which interprets the Tulou tradition, but also functions to allow natural ventilation and light to flow through the building. BlueScope Lysaght met the brief to create a cylinder shaped roof of more than 25,000 radial pieces, each of which had to be measured and produced individually using Lysaght’s architectural standing seam profile. The supply and install team safely managed a number of on-site challenges, including space constraints and co-ordinating works between various other trades.
Lysaght Malaysia’s Supply & Install team who worked on the Academy project (l-r): Bhavani A/P Supramani, Raja Julaili Binti Raja Ali, Mustapa Bin Mat Taib, Choo Sooi Leong, Puspanathan A/L Kolandavaloo and Abbey Voon
The non-conventional roof design required a versatile, flexible and aesthetically pleasing material and the Lysaght 360 Seam® roofing profile met this objective with its ability to be customised for a pitched, curved and tapered roof. The installation of the Lysaght 360 Seam® double skin roof system on the structure made the building water tight, which helped meet project deadlines.
Clean COLORBOND® steel was integrated into the roof construction for high durability and to meet the required aesthetic demands. The Malaysia Academy of Han Studies is another example of BlueScope Lysaght’s ability to respond to complex design briefs. The Lysaght team also ensured safety standards were maintained on site during construction.
50 YEARS AND BUILDING STRONGLY
To mark 50 years of doing business in the ASEAN region, BlueScope Lysaght Thailand launched two new innovative roofing products - LYSAGHT® 360 SEAM™ and LYSAGHT® 360 SELECT SEAM™ - as part of its strategy to unveil modern architectural solutions exclusively for residential customers.
The products were launched at Architect’16, Thailand’s most renowned architecture exhibition, where the architectural style and energy-efficient features of the products were admired by BlueScope Lysaght customers and suppliers who were invited to join the celebrations.
CHANNEL INNOVATION DRIVING GROWTH IN THAILAND Retail is an exciting new segment for BlueScope Thailand and a key strategic initiative to deliver growth targets under the ASEAN Bamboo 200 strategy. The Company has developed BlueScope Authorised Dealers in 26 locations to create a new channel to market. The Authorised Dealers provide a full range of BlueScope products and services including roofing materials and Ranbuild and Enduroframe solutions through an accredited and qualified network of TrueBlue loyal builders.
Product and roof fixing training at BlueScope Thailand customer PM Power.
During the BlueScope Board’s visit to Thailand, Managing Director & CEO Paul O’Malley, Pat Finan, Chief Executive BlueScope Buildings, Alec Highnam, Executive General Manager People & Performance and Non-Executive Directors Penny Bingham-Hall and Daniel Grollo, visited one of the BlueScope Authorised Dealers, PM Power (1999) Co, Ltd, in Saraburi Province, near Bangkok.
Sam McMahon Vice President Commercial & Business Development Thailand & Myanmar, gave the visitors an overview of the steps of the BlueScope Authorised Dealer platform, which includes marketing support and the “TrueBlue” Membership Program. PM Power had been a member of BlueScope’s customer loyalty program but has been a BlueScope authorised dealer since last year. The visit coincided with PM Power hosting three days of the national BlueScope Authorised Dealer marketing road-show which has toured 20 Thailand provinces where Authorised Dealers are located. The road-show activities included product and roof fixing training for PM Power’s local fixer/ builder network by the BlueScope Mobile Training Centre, which has now trained over 2,500 fixers/builders since it began in FY2014.
HORIZON Issue 32 June 2016 Page 6
SCHOLARSHIP SUPPORTS DIVERSITY IN LEADERSHIP Kristie Keast, General Manager People BlueScope ANZ, has received a scholarship under the Chief Executive Women (CEW) Scholars program, which helps talented Australian women develop their career by participating in executive education programs at internationally acclaimed business schools. The scholarship is offered to a female executive working in a functional HR role. “I started my career in stevedoring, a very male-dominated and challenging industry, which helped me build resilience, integrity and confidence,” says Kristie. “It’s important to me to support other women, encouraging them to take risks and put themselves forward and to identify other female talent. I also hope to influence and inspire other women to take on senior executive roles.” Under the scholarship, Kristie attended MIT (Massachusetts Institute of Technology)
Sloan School of Management in Cambridge, MA to study ‘Leading Change in Complex Organisations’, a course designed to help harness the leadership skills, political resources and cultural understanding needed to guide successful organisational change.
Chief Executive Women represents more than 370 of Australia’s most senior women from the corporate, public, academic and not-for-profit sectors and works to remove the barriers to women’s progression and ensure equal opportunity for prosperity.
“The course provided insight into the three critical perspectives - social, cultural, political - that have helped me understand what successful organisational change requires. Having good content – the strategic design – and a good change process are key to this. “It was a wonderful opportunity to be part of a diverse study group where the participants represented 16 countries and 21 industries and demonstrated diversity of thought in action. I hope to bring some of these external perspectives back to BlueScope.”
Wendy Stops, CEW Scholarships Committee (l) and Jannine Fraser, Managing Director Career Insight Group (r), congratulate Kristie Keast, General Manager People, BlueScope ANZ.
DEVELOPING A CAREER – IT’S NOT ALWAYS EASY
The visitors were taken on a tour of the Steelworks before the NAWO event.
“Sometimes we need to fail to understand how to succeed,” said BlueScope Director Penny Bingham-Hall, guest speaker at an event held in conjunction with the National Association of Women in Operations (NAWO) at Port Kembla Steelworks.
• Learn from your mistakes - motivation and resilience are as much about failing as succeeding. How we bounce back from disappointments determines whether we have failed or whether we have shown resilience and learnt a lesson fast.
The importance of maintaining motivation and resilience in developing your career was the theme of the discussion. Penny spoke about her own personal and professional journey and provided some valuable advice:
• You can do everything, but not at once - realise there are only 24 hours in any one day. Even perfectionists need to work collaboratively and learn to delegate – at home as well as at work – to get ahead.
• Do something you love - doing something well is very motivating in its own right. We all like to succeed - so find what you’re good at and change direction if you have to.
• Everyone needs “me” time - it’s impossible to be motivated and resilient when you’re physically and mentally exhausted. Take time out when you need it and look after your health.
• Take risks and go for it - women are often criticized for not seizing opportunities. There is nothing more motivating than taking a risk and stepping up to the challenge.
Prue Watt, OAM, Paralympic swimming gold medallist and Maddy Hogan, Paralympic javelin bronze medallist joined Penny on the discussion panel.
Maddy Hogan, Paralympic javelin bronze medallist, Prue Watt, OAM, Paralympic swimming gold medallist and Penny Bingham-Hall, BlueScope Director, responding to questions at the NAWO event.
The Paralympians spoke of how they became elite athletes and won medals and how they maintain motivation and resilience. They are both participants in the ‘Change the Game’ program between BlueScope and the Australian Institute of Sport, which sees 10 BANZ employees matched with 10 elite champion female athletes for mutual learning and development. NAWO works to support women working in operational business areas and works to ensure men and women are equally represented at every level of business. BlueScope employees were joined at the event by guests from other companies including Coca Cola Amatil, George Weston Foods, Lion and Australia Post.
SAFETY COACHING IN CHINA
(l–r) Mike Liu, John Wang, Andrew Montgomery, (Saining), Jimmy Zheng and Altas Jiang at the coaching program in X’ian.
and culture, including the concept of Felt Leadership and the importance of integrating safety systems and processes into business. The corporate safety team runs a regular program of safety coaching sessions for BlueScope leaders around the Company. In Shanghai members of the China Leadership Team and representatives from Safety, Supply Chain, Manufacturing, Finance, Marketing and
Sales participated in the Senior Manager’s Safety Leadership Program led by Kehui Yu, Vice President Health, Safety Environment BlueScope China and Andrew Montgomery, Manager Occupational Health & Safety. This program introduces BlueScope’s safety strategy
NZS celebrates its apprentices
Operational and safety leaders in X’ian and Suzhou also took part in the three day Business Leaders Safety Coaching Program that aims to improve safety capability and help leaders understand the role of leadership in safety and the importance of a leader’s personal safety behaviours to the culture of a site.
Scholarship demonstrates our communities are our homes Local students Baillee Waller and Bradley Hoskins have each received the 2016 New Zealand Steel undergraduate scholarship of NZ$12,000 to put towards the cost of their studies. Baillee will study a Bachelor of Engineering at Auckland University and is planning a career in chemical engineering, while Bradley has already completed a year of a Bachelor of Engineering Technology at Auckland’s Manukau Institute of Technology, majoring in mechanical engineering. Baillee and Bradley will return to New Zealand Steel for their summer holiday work placement, which will complement their engineering studies. The NZS undergraduate scholarship program is part of the Company’s continued commitment to the community and to developing young talent.
2015 apprentice award winner (back l-r): Shane Jennings, 4th year Mechanical Apprentice; Kurt Summerfield, 3rd year Mechanical Apprentice and overall Mechanical Apprentice of the Year; James Thomas, Instrumentation Apprentice and overall NZS Apprentice of the Year, Quintin Cameron, Electrical Apprentice of the Year; Cedric Tata, Rigging Apprentice of the Year; (front l-r): Ryan Sinclair, 2nd year Mechanical Apprentice; and Jake Lamb, 1st year Mechanical Apprentice.
James Thomas has been named both the Instrumentation Apprentice of the Year and the overall New Zealand Steel Apprentice of the Year for 2015. New Zealand Steel is one of the largest trainers of apprentices in New Zealand.
WHAT’S YOUR OPINION email
Each year, the top apprentices are selected by their mentors and peers and others they have worked with in the trades. Apprentices also vote for the ‘Tradesperson of the Year’ in each category.
HORIZON@bluescope.com
Published by BlueScope Steel Corporate Affairs For BlueScope Steel Limited ABN 16 000 011 058
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