Learning to Lead in
SABMiller
What we are learning about
Relentless Leadership from our
Relentless Leaders
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 Coca-
Cola products.
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
1895 Foundation of South African Breweries
and launch of Castle Lager
1897 Listing on Johannesburg stock exchange
1898 Listing on the London stock exchange
2009
Regional and product expansion
1978-82 Botswana, Lesotho
and Swaziland
First acquisitions in Europe
1988 Compania Cervecera de
Canarias in Canary
Islands
1993 Dreher in Hungary
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
1999 Movement of primary
listing to London
Stock Exchange
1895
2003
Acquisition of
Birra Peroni,
Italy
2005 Transaction
with Grupo
Empresarial Bavaria
Latin America
2008
MillerCoors
JV created,
USA
2008
Acquisition of
Grolsch, The
Netherlands
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
The SAB WCM Story
Learning to Lead
The SAB WCM Story
QPUS
1988 -1992
70%
50%
Perfo
rm
an
ce
1991
1997 1999 2005
(World Class)
1993
EfficiencyReliabilityCost EffectivenessFlexibility
BOP II
BOP I
SAB
SAB
Featuring
•Work Instructions
•Process monitoring and control
•Team processes
SOP
Featuring
•Self sufficient work teams
•Step change in competence
•Team maturity processes
Featuring
•Scientific management practices
•Lean, TOC, DMAIC
•Enabled by advances in automated manufacturing systems
Make reality your friend….
© SABMiller
2010
11
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…
Norman Adami, Former Executive Chairman
and MD of SAB (Pty) Ltd
There are 2 streams of visuals, both starting from the annual goals and targets:
Goals
And
Targets
Loss analysis
ABC
DEF
GHI
STU
PQR
MNO
JKL
Focussed
Improvement
Plan
(PIP /DMAIC)approx 3 months
Daily
Action
Plan(max 1
week horizon)
Daily SIC
ABC Graph
DEF Graph
1
2
KPI’s that needs to
be monitored daily
KPI’s consistently
below target
Relentlessly Driven Visual Performance Management
Purposeful shiftly & daily engagements
Trigger
Activated
Cause
KnownTake preventative action
Determine root cause
No further action
Yes
No
Not required
Level 1
Operation
Feedback
Feedback
Relentless focus on Problem Solving
Level of PS Activity
Situational Systemic
Level o
f C
om
ple
xit
y
5-Why
FFA
Stage 1
System
Analysis
Operator
Quick Fix
Performance – Practice
Framework
© SABMiller
2010
15
Excellence in Practices –global practice maturity
Re
lative
Glo
ba
l P
erf
orm
an
ce
–E
xce
llen
ce
in
Re
su
lts
© SABMiller 2010 17
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 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
o Investment of choice
o Employer of Choice
o Partner of choice
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
Goals Strategic Priorities
18
Leveraging Skills and Global Scale
© SABMiller 2010
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
The SABMiller Ways are
a global knowledge
asset…
The need to codify, share and build strategic capabilities
across the Group has resulted in the SABMiller Ways...
Codify knowledge
Build & develop
capabilities
© SABMiller 2010 19
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
In Summary…
Leaders must lead….
© SABMiller
2010
21
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. Graham Mackay, Former Chairman and Chief
Executive, SABMiller plc
Org Development
& Change
Management
Work-Stream
OD
SME
CM
SME
WCM Technical
Design &
Implementation
Work-Stream
Eng
CoE
Pack
CoE
Brew
CoE
WCM Learning,
Development &
Accreditation
Work-Stream
Pack
L&DC
Brew
L&DC
Eng
L&DC
MCG
/
MDE
V
MDEV
/
MTEC
H
MCG
WCM Strategy Development
& deployment;
& Alignment with Global
Standards
WCM Central
Steering
CommitteeODC MDC:
OE
L&DC
M&T
DirectorMDM
MOC
Prospecton WCM
Steering
Committee
GM
Champs
HRC
MDC
Maltings WCM
Steering
Committee
GM
Champs HRC
MDC
Chamdor WCM
Steering
CommitteeGM
Champs
HRC
MDCNewlands WCM
Steering
Committee
Ibhayi WCM
Steering
Committee
GM
MM
Champs
Champs
HRC
MDC
MDSHRS
Polokwane WCM
Steering
Committee
Rosslyn WCM
Steering
Committee
GM
MM
MDC
HRC
Champs
HRS
MDS
Champs
Alrode WCM
Steering
Committee
GM
HRC
MDC
Champs
How to WinWCM Leadership
Overview of Implementation MapP
RE
PA
RA
TIO
N
WCM Infrastructure
Regional WCM Plan
Identification of First Areas
Project Team
Goal Alignment
Project Team Training
Project Plan
Generic Training
LEVEL 2 SIC
Roles and Resp / Daiily Meetings
PROCESS CONTROL
Inputs and Outputs
PERFORMANCE
MEASUREMENT
Downtime / Yield
ASSET MANAGEMENT
Maintenance Program Design
AUTONOMOUS MAINTENANCE
Operator Based Maintenance
FLEXIBILITY
Quick Changeover Technology
WO
RK
ST
AT
ION
DE
SIG
N
IMP
LE
ME
NT
AT
ION
PLA
N A
ND
SIG
N-O
FF
LE
VE
L 2
S
IC
Pro
ject S
ign
-off
INT
EG
RA
TIO
N
Line/Area Project Management
Regional Project Plan Management / Area Progress Reviews / General Communication
Site Change plan
SABMiller Manufacturing WayWCM Foundational Practices Implementation Map
Pre Launch Preparation Development Implementation Entrench & Roll-out
PE
RF
OR
MA
NC
E M
EA
SU
RE
ME
NT
& C
ON
TR
OL
AS
SE
T M
AN
AG
EM
EN
T A
ND
AU
TO
NO
MO
US
MA
INT
EN
AN
CE
AU
DIT
S -
TW
P /
GE
MS
MIN
IMU
M O
N-B
OA
RD
ING
ST
AN
DA
RD
S
CA
P /
CE
RT
IFIC
AT
ION
/ R
E-C
ER
TIF
ICA
TIO
N
RO
LL O
UT
TO
NE
XT
AR
EA
PROCESS
CONTROL
PERFORMANCE
MEASUREMENT
ASSET
MANAGEMENT
AUTONOMOUS
MAINTENANCE
FLEXIBILITY
Living WCM Excellence – THE HOW
Entrenchment & Sustainment
Year 1 (F09): build capability in Kotter 1-6
and apply to all FP projects
Year 2 (F10): build capability in
Kotter 7&8 and apply to all
signed off FP projects (F09)
Year 3+ (F11+):
Kotter 1-8
applied to all FP
projects
41 2 3 5 6 7 8
Creating a
climate for change
Engaging and enabling
the whole organisation
Entrenching
and sustaining
change
IncreaseUrgency
Build the
Guiding
Team
Get the
Right
Vision
Communicate
For Buy-in
EmpowerAction
Create Short-term
Wins
Don’t LetUp
Make itStick
Culture Model (Edgar Schein)
Symbols
Systems &
Processes
Behaviours
Beliefs
• Leadership style and management
practices
• Team conversations on WCM issues.
• Employee behaviour
• 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
• Language
• Iconography
• Top management cues
Existing media eg,
newsletters, websites,
screensavers etc
• Leader & Employee Beliefs
• Leader & Employee Values
Decreasin
g level o
f in
flu
en
ce
F10 – F11 focus
F12 – F13
focus
F09 focus
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!)
Relentless Strategic
(Goal) AlignmentBecause 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
Stra
teg
icS
ituatio
nal
PIs
KPIs
Goals
Goals
Goals
Measures
Goals
KBIsS
yste
mic
Relentless simplicity brings clarity
and swift actionSue 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 actionFinally 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