Learning to Lead in SABMiller. What we are learning about Relentless Leadership from our Relentless Leaders

Learning to Lead in SABMiller What we are learning about Relentless Leadership from our Relentless Leaders SABMiller – Business overview One of th...
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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

11

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

19

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

21

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?

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