Learning to Lead in SABMiller What we are learning about Relentless Leadership from our Relentless Leaders
SABMiller – Business overview
One of the world’s largest brewers, SABMiller has brewing interests and distribution agreements across six continents. Our wide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch along with leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. Six of our brands are among the top 50 in the world.
We are also one of the world’s largest bottlers of CocaCola products.
Our Brands
Brands Regional SABMiller owns over 200 regional beer brands, including:
2M (Mozambique) Atlas (Panama) Aguila (Colombia) Carling Black Label (South Africa) Castle Lite (South Africa) Club Colombia (Colombia) Cristal (Peru) Dreher (Hungary) Gambrinus (Czech Republic) Hansa Marzen Gold (South Africa) Haywards (India) Kilimanjaro (Tanzania) Miller Lite (USA)
Nile Special (Uganda) Peroni (Italy) Pilsener (Ecuador) Pilsener (El Salvador and Honduras) Šariš (Slovakia) Snow (China) St Louis (Botswana) Timisoreana (Romania) Tyskie (Poland) Velkopopovický Kozel (Czech Republic) Zolotaya Bochka (Russia)
Brands International
Grolsch Premium Lager - The Dutch premium quality lager
Miller Genuine Draft – The original cold-filtered draft beer
Peroni Nastro Azzurro – Italian style in a bottle
Pilsner Urquell – The Pilsner from the original source
Becoming a global brewer First acquisitions in Europe 1988 Compania Cervecera de Canarias in Canary Islands 1993 Dreher in Hungary 1895 Foundation of South African Breweries and launch of Castle Lager 1897 Listing on Johannesburg stock exchange 1898 Listing on the London stock exchange
Regional and product expansion 1978-82 Botswana, Lesotho and Swaziland
2003 Acquisition of Birra Peroni, Italy
2008 Acquisition of Grolsch, The Netherlands
2008 MillerCoors JV created, USA
2009
1895 1910 Expansion into Zimbabwe (formerly Rhodesia)
Acquisition in South Africa 1956 Ohlsson’s, Chandlers Union Breweries 1975-79 Old Dutch, Whitbreads, Swaziland breweries, beer interests of the Rembrandt Group – attaining 99% market share
Global growth begins 1993 Uganda 1994 Angola, Mozambique, Tanzania, Zambia, China 1995 Poland 1996 Romania 1997 Ghana, Slovakia 1998 Russia 1999 Czech Republic 2000 India 2001 El Salvador, Honduras, strategic alliance with Castel Group in Africa
2002 Creation of SABMiller following purchase of Miller Brewing Company USA
2005 Transaction with Grupo Empresarial Bavaria Latin America
1999 Movement of primary listing to London Stock Exchange
The SAB WCM Story Learning to Lead CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of The South African Breweries (Pty) Ltd is strictly prohibited This slide presentation is not complete without the relevant speaker notes
Performance
The SAB WCM Story
(World Class)
Efficiency Reliability Cost Effectiveness Flexibility
SOP Featuring •Scientific management practices
SAB
BOP II SAB
70%
Featuring
1991
BOP I
1988 1992
•Enabled by advances in automated manufacturing systems
•Self sufficient work teams
Featuring
50%QPUS
•Lean, TOC, DMAIC
•Work Instructions
•Step change in competence
•Process monitoring and control
•Team maturity processes
•Team processes
1993
1997
1999
2005
Lesson 1: Make Reality your friend!!!
Make reality your friend…. Norman demonstrated that it is imperative to: state your situation objectively acknowledge your new realities - because yesterday’s progress quickly becomes today’s status quo have a high-touch, high engagement business - the more people who know exactly who we are (purpose) and exactly what we are doing, and exactly how we are doing the better off we will be…
© SABMiller
Norman Adami, Former Executive Chairman and MD of SAB (Pty) Ltd
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Relentlessly Driven Visual Performance Management There are 2 streams of visuals, both starting from the annual goals and targets: KPI’s consistently below target
Loss analysis STU
DEF
1 ABC
PQR
MNO
GHI
Focussed Improvement Plan (PIP /DMAIC) approx 3 months
JKL
Goals And Targets Daily SIC ABC Graph
2
Daily Action Plan (max 1 week horizon)
DEF Graph
KPI’s that needs to be monitored daily
Purposeful shiftly & daily engagements
Feedback
No further action
Not required Trigger Level 1 Operation
Cause Known
Yes
Activated No
Feedback
Determine root cause
Take preventative action
Level of Complexity
Relentless focus on Problem Solving
FFA Stage 1
System Analysis 5-Why Operator Quick Fix
Situational
Level of PS Activity
Systemic
– Excellence in Results
Relative Global Performance
Performance – Practice Framework
Excellence in Practices –global practice maturity
© SABMiller
15
Performance – Practice Framework
Strategically Aligned Global Ways of Working Aligned to our strategic priorities, the SABMiller Ways are a key part of SABMiller’s response to leverage our skills and global scale.
Vision o
© SABMiller 2010
To be the most admired company in the global beer industry
Mission o
To own and nurture local and international brands that are the first choice of the consumer
Goals o
Investment of choice
o
Employer of Choice
o
Partner of choice
Strategic Priorities o
Creating a balanced and attractive spread of global businesses
o
Developing strong, relevant brand portfolios that win in the local market
o
Constantly raising the sustainable profitability of local businesses
o
Leveraging our skills and global scale
17
Leveraging Skills and Global Scale The need to codify, share and build strategic capabilities across the Group has resulted in the SABMiller Ways...
The Purpose of the Ways Codify knowledge that is core to our sustainable competitiveness, premised on core guiding principles, expressed as best practices
Build and develop capabilities in defined areas of strategic relevance
Codify knowledge
© SABMiller 2010
Build & develop capabilities
The SABMiller Ways are a global knowledge asset…
18
In Summary… The Ways are… o
Clearly linked to our strategic priorities
o
Single, credible points of reference on how to operate, manage and leverage a set of best practice, that will enable ownership of the profitable growth
o
A vehicle for building group-wide capability in a defined area of strategic relevance through deliberate implementation and anchoring
o
A set of best practices that represents real competitive advantage which are codified, implemented, anchored and refreshed continuously and over time
© SABMiller 2010
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Lesson 2: Leadership is a verb…
Leaders must lead…. Graham demonstrated that: the Transformation agenda is Leader Led Capability building is Leader Led The Five Roles Of Our Executives 1.
Lead - Create a compelling view of what we can be at our future best.
2.
Manage - Direct resources based on agreed-upon authority.
3.
Learn - Access one’s resources. (Self-Discovery)
4.
Teach - Impart to others that which you know.
5.
Coach - Help others get to where they want to go.
© SABMiller
Graham Mackay, Former Chairman and Chief Executive, SABMiller plc
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How to Win WCM Leadership Champs Champs HRS
Ibhayi WCM Steering Committee
HRC
HRC
MDS MOC
MM
Prospecton WCM Steering Committee MDC GM
HRC
MDC
WCM Strategy Development Chamdor WCM MDC & deployment; Steering GM & Alignment with Global Committee GM Standards Eng OD M&T Champs CoE Champs MDM SME Director MDEV WCM Technical Org Development WCM Central / Design & MDC: & Change Steering ODC MCG MTEC Implementation OE Management Committee H Work-Stream Work-Stream Brew Pack L&DC CM CoE Champs CoE Pack MDS HRC SME WCM Learning, L&DC MM Polokwane WCM Alrode WCM GM Development & Steering Eng Steering Accreditation MDC Committee L&DC Committee Brew Work-Stream MDC L&DC GM HRS Champs MCG HRC GM Rosslyn WCM / MDC Steering Maltings WCM MDE Committee Steering V Champs Committee HRC Champs Newlands WCM Steering Committee
Overview of Implementation Map SABMiller Manufacturing Way WCM Foundational Practices Implementation Map
Development
Goal Alignment Project Team Training Project Plan Generic Training
ASSET MANAGEMENT Maintenance Program Design
ASSET MANAGEMENT
AUTONOMOUS MAINTENANCE
FLEXIBILITY
AUTONOMOUS MAINTENANCE Operator Based Maintenance
FLEXIBILITY Quick Changeover Technology
Line/Area Project Management Regional Project Plan Management / Area Progress Reviews / General Communication
Site Change plan
Project Sign-off
Project Team
PERFORMANCE MEASUREMENT LEVEL 2 SIC
PERFORMANCE MEASUREMENT Downtime / Yield
IMPLEMENTATION PLAN AND SIGN-OFF
PROCESS CONTROL
ROLL OUT TO NEXT AREA
PROCESS CONTROL Inputs and Outputs
AUDITS - TWP / GEMS MINIMUM ON-BOARDING STANDARDS CAP / CERTIFICATION / RE-CERTIFICATION
LEVEL 2 SIC Roles and Resp / Daiily Meetings
INTEGRATION
Identification of First Areas
ASSET MANAGEMENT AND AUTONOMOUS MAINTENANCE
PREPARATION
Regional WCM Plan
Entrench & Roll-out
Implementation
WORK STATION DESIGN
WCM Infrastructure
PERFORMANCE MEASUREMENT & CONTROL
Pre Launch Preparation
Living WCM Excellence – THE HOW Entrenchment & Sustainment
Entrenching and sustaining change Engaging and enabling the whole organisation
Year 3+ (F11+): Kotter 1-8 applied to all FP projects
Creating a climate for change
1
2
3
4
5
6
Increase Urgency
Build the Guiding Team
Get the Right Vision
Communicate For Buy-in
Empower Action
Create Short-term Wins
Year 1 (F09): build capability in Kotter 1-6 and apply to all FP projects
7 Don’t Let Up
8 Make it Stick
Year 2 (F10): build capability in Kotter 7&8 and apply to all signed off FP projects (F09)
Decreasing level of influence
Culture Model (Edgar Schein) • Language • Iconography • Top management cues Existing media eg, newsletters, websites, screensavers etc
Symbols F09 focus
F10 – F11 focus
Systems & Processes
• Alignment and Integration • Performance Management systems (IMP) • Social architecture – Informal networks – How people work together • Decision Architecture - How information flows e.g. zero filter communication • Operating mechanisms – Meetings and diaries, reward and recognition
• Leadership style and management practices • Team conversations on WCM issues. • Employee behaviour
Behaviours
F12 – F13 focus
Beliefs
• Leader & Employee Beliefs • Leader & Employee Values
Leader Standard Work – Gemba focus • Visibility of Leaders at the frontline is demonstrated through coaching which takes place on the frontline and engagements are used as input into the 1-on-1’s. (eg. Coaching cards, Red tags, white tags)
Leader Standard Work – Gemba focus Where is your Gemba? (e.g. Sales Director and Strategy Director in a traders outlet – go see, ask why, show respect!)
Lesson 3: True North remains True North……..
Relentless Strategic (Goal) Alignment Because of the severity of our situation in 2008, we understood that incremental improvement across the board would be essential… but not sufficient. We needed a break-out strategy…a strategy that was big enough and bold enough yet simple enough to break us out of decline… …restore our self-belief… …get the blood pumping… … because nothing energizes an organization like a big, bold strategy that is simultaneously genius in its simplicity
Norman Adami, Former Executive Chairman and MD of SAB (Pty) Ltd
Goals, KBIs, KPIs and PIs 3 Cascading Levels of Problem Solving Goals
KBIs
Goals
KPIs
PIs Measures
Situational
Goals
Strategic Systemic
Goals
Relentless simplicity brings clarity and swift action Sue Clark,MD SABMiller Europe – recent blog “…MBUK’s substantial growth. Thanks to Peroni’s continued rise, the first quarter of F15 saw NPR up 23% with volume growth of 18% – and there’s still room for expansion… I came away impressed by the way that MBUK has stuck to its strategy of targeting its brands at selected outlets and has executed with such discipline over so many years. It may not be new news, but that’s the point. Consistency continues to bring results”
Sue Clark, MD of SABMiller Europe
Relentless simplicity brings clarity and swift action Finally we are learning that as big organizations we underestimate the power of simple, consistent strategy. We learned over the past couple of years that the consistency does not bore people… …the consistency actually accelerates the action… …because the consistency makes it increasingly clear what the priorities are, and what they are not… …and so our people can move much more quickly and much more confidently… …because the priorities are clear and simple.
Norman Adami, Former Executive Chairman and MD of SAB (Pty) Ltd
Questions?