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Learning to Lead in Sabmiller

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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 Coca- Cola products. Our Brands Brands Regional SABMiller owns over 200 regional beer brands, including: 2M (Mozambique) Nile Special (Uganda) Atlas (Panama) Peroni (Italy) Aguila (Colombia) Pilsener (Ecuador) Carling Black Label (South Africa) Pilsener (El Salvador and Castle Lite (South Africa) Honduras) Club Colombia (Colombia) Šariš (Slovakia) Cristal (Peru) Snow (China) Dreher (Hungary) St Louis (Botswana) Gambrinus (Czech Republic) Timisoreana (Romania) Hansa Marzen Gold (South Africa) Tyskie (Poland) Haywards (India) Velkopopovický Kozel Kilimanjaro (Tanzania) (Czech Republic) Miller Lite (USA) 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 2003 2008 2008 and launch of Castle Lager Regional and product expansion Acquisition of Acquisition of MillerCoors 1897 Listing on Johannesburg stock exchange 1978-82 Botswana, Lesotho Birra Peroni, Grolsch, The JV created, 1898 Listing on the London stock exchange and Swaziland Italy Netherlands USA 1895 2009 1910 Expansion into Zimbabwe 2002 Creation 2005 Transaction (formerly Rhodesia) of SABMiller with Grupo following purchase Empresarial Bavaria Global growth begins of Miller Brewing Latin America 1993 Uganda Company USA 1994 Angola, Mozambique, Acquisition in South Africa Tanzania, Zambia, 1956 Ohlsson’s, Chandlers Union Breweries China 1975-79 Old Dutch, Whitbreads, Swaziland 1995 Poland breweries, beer interests of the 1996 Romania Rembrandt Group – attaining 99% 1997 Ghana, Slovakia market share 1998 Russia 1999 Czech Republic 2000 India 2001 El Salvador, Honduras, 1999 Movement of primary strategic alliance with listing to London Castel Group in Africa 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 The SAB WCM Story (World Class) Efficiency Reliability SOP Cost Effectiveness Flexibility Featuring •Scientific management Performance SAB practices •Lean, TOC, DMAIC BOP II •Enabled by advances in SAB automated manufacturing 70% systems Featuring 1991 BOP I •Self sufficient work teams Featuring •Step change in •Work Instructions competence 50%QPUS •Process monitoring and •Team maturity control processes 1988 - 1992 •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 Norman Adami, Former Executive Chairman have a high-touch, high engagement and MD of SAB (Pty) Ltd 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 11 2010 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 Focussed STU Improvement DEF PQR 1 Plan ABC MNO (PIP /DMAIC) GHI JKL approx 3 months Goals And Targets Daily SIC Daily ABC Graph Action 2 Plan (max 1 DEF Graph week horizon) KPI’s that needs to be monitored daily Purposeful shiftly & daily engagements Feedback No further action Not required Trigger Level 1 Cause Yes Take preventative action Operation Known Activated No Feedback Determine root cause Relentless focus on Problem Solving FFA Stage 1 System Analysis 5-Why Operator Quick Fix Level ofLevel Complexity Situational Systemic Level of PS Activity Performance – Practice Framework Excellence in Results in Excellence Relative Global Performance Performance Global Relative – Excellence in Practices –global practice maturity © SABMiller 15 2010 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 Mission Goals Strategic Priorities o To be the most admired o To own and nurture local o Investment of choice o Creating a balanced and company in the global and international brands attractive spread of beer industry that are the first choice of o Employer of Choice global businesses the consumer o Partner of choice 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 © SABMiller 2010 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 The SABMiller Ways are Codify Build & a global knowledge knowledge develop asset… capabilities © SABMiller 2010 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. Graham Mackay, Former Chairman and Chief Executive, SABMiller plc © SABMiller 21 2010 How to Win WCM Leadership Champs Champs Prospecton WCM HRC HRS Ibhayi WCM MDS Steering Steering Committee MDC Committee MOC HRC MM GM HRC MDC WCM Strategy Development Newlands WCM Chamdor WCM & deployment; MDC Steering Steering GM & Alignment with Global Committee Committee GM Standards Eng OD M&T Champs Champs MDM CoE SME Director WCM Technical MDEV Org Development WCM Central Design & / & Change ODC Steering MDC: MCG Implementation MTEC Management Committee OE Work-Stream Work-Stream H Brew CM L&DC Pack CoE MDS Champs SME Pack CoE HRC WCM Learning, Polokwane WCM MM L&DC Development & GM Alrode WCM Steering Accreditation Eng Steering Committee L&DC Committee MDC MDC Brew Work-Stream L&DC HRS GM Champs HRC MCG GM Rosslyn WCM / MDC Steering MDE Maltings WCM Committee V Steering Champs Committee HRC Champs Overview of Implementation Map SABMiller Manufacturing Way WCM Foundational Practices Implementation Map Pre Launch Preparation Development Implementation Entrench & Roll-out LEVEL 2 SIC Roles and Resp / Daiily Meetings PROCESS CONTROL Inputs and Outputs PROCESS CONTROL WCM Infrastructure PERFORMANCE PERFORMANCE MEASUREMENT MEASUREMENT Regional WCM Plan Downtime / Yield Identification of First Areas PERFORMANCE MEASUREMENT & CONTROL ASSET MANAGEMENT Project Team NEXT AREA ROLL OUT TO ROLL LEVEL 2 SIC INTEGRATION ASSET MANAGEMENT ProjectSign-off Goal Alignment AUDITS - TWP / GEMS Maintenance Program Design AUTONOMOUS PREPARATION WORK STATION DESIGN MAINTENANCE Project Team Training MINIMUM ON-BOARDING STANDARDS IMPLEMENTATION PLAN AND SIGN-OFF CAP / CERTIFICATION / RE-CERTIFICATION Project Plan FLEXIBILITY Generic Training AUTONOMOUS MAINTENANCE Operator Based Maintenance MAINTENANCE FLEXIBILITY Quick Changeover Technology ASSET MANAGEMENT AND AUTONOMOUS Line/Area Project Management Regional Project Plan Management / Area Progress Reviews / General Communication Site Change plan Living WCM Excellence – THE HOW Entrenchment & Sustainment Entrenching and sustaining change Engaging and enabling the whole organisation Creating a Year 3+ (F11+): climate for change Kotter 1-8 applied to all FP projects 1 2 3 4 5 6 7 8 Increase Build Get Communicate Empower Create Don’t Let Make it Urgency the the For Buy-in Action Short-term Up Stick Guiding Right Wins Team Vision Year 1 (F09): build capability in Kotter 1-6 Year 2 (F10): build capability in and apply to all FP projects Kotter 7&8 and apply to all signed off FP projects (F09) Culture
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