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

Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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Page 1: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

Learning to Lead in

SABMiller

What we are learning about

Relentless Leadership from our

Relentless Leaders

Page 2: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

SABMiller – Business overview

Page 3: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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.

Page 4: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

Our Brands

Page 5: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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)

Page 6: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 7: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 8: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 9: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 10: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

Lesson 1: Make Reality your

friend!!!

Page 11: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 12: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 13: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 14: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 15: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 16: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

Performance – Practice

Framework

Page 17: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

© 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

Page 18: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 19: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

© 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…

Page 20: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

Lesson 2: Leadership is a

verb…

Page 21: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 22: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 23: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 24: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 25: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 26: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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)

Page 27: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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!)

Page 28: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

Lesson 3: True North remains

True North……..

Page 29: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 30: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 31: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 32: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

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

Page 33: Learning to Lead in SABMiller - Lean Institute Africa · Learning to Lead in SABMiller ... 1993 Dreher in Hungary 1910 Expansion into Zimbabwe ... Birra Peroni, Italy 2005 Transaction

Questions?