FINANCIAL VALUE DRIVERS
163
But Davis is not a ruthless, cold-hearted accountant. His value driver model is built on a compelling vision of building the most valuable mining group in the world and empowering delegation, creating the freedom and opportunities for ambitious entrepreneurs to build something valuable for the company and themselves. Moraitis believes that Davis is one of the best delegators he’s seen. “He gives a task, he’s patient and will watch you flounder with the task and will not intervene, but will wait for you to come for help,” he says. “Of course, he’ll intervene when necessary. He’s not a great, charismatic leader – he’s a very shy man – but he is an intellectual giant who lets people get on with stuff. He thinks expansively and excites people, taking them places they would not normally go. Mick paints pictures people would not paint for themselves and gets them to believe they are achievable. He’s inspirational.” As a consequence, Davis has been able to hire executives of the highest caliber to drive the phenomenal growth that Xstrata has seen in recent years. “We get the best entrepreneurs in the industry who are self-motivated and stand up to be counted,” notes Moraitis. “Our people are not here just to run plants; they are here to find value. Mick has a saying: ‘If you tread water for long enough you’ll eventually sink.’ Momentum is ingrained into us. Everyone is comfortable with accountability and having a bright spotlight on them.” Davis on his management style “The market has a view that I am a tough individual who does not suffer fools gladly, but there is a softer side to me. If people get themselves into difficulty, my instinct is to help them, not cut them off. We’re very loyal to our people. We encourage them to take risks and when they make mistakes we will support them, provided they do not make the same mistake again. We support people so they are challenged, not threatened. “I go into the business and test the talent. It destabilizes the situation. We give complete freedom and total responsibility to individuals. They get big financial rewards if they deliver and we hold them accountable if they do not. If I can see a weak link in a business unit,