SABMiller’s Human Capital Proposition: Institutionalizing a

Performance Culture

Case Study

104/08/23

Group Members

• Neha Singh

• Pooja Sawant

• Prerna Chandak

04/08/23 2

Roadmap

• Overview

• Stage 1 : Trend Analysis

• Stage 2 : Understanding the Important aspect of the case

• Stage 3 : Linkages to Human Capital Concepts

• Stage 4 : Extrapolation of Feasibility

• Key Learnings

04/08/23 3

Overview

South African Brewing Company (SAB)• Founded In: 1895

• Founded By: Jacob Letterstedt

• Focus Market: Miners and Prospectors in and around Johannesburg, South Africa

• First Product: Raw potato spirit mixed with tobacco and pepper.

404/08/23

• First Brand: Castle Lager (Huge success)

• 1st Industrial company to be listed on the Johannesburg Stock Exchange (1897).

• Breweries Established in: » Zimbabwe- 1910

» Zambia- 1950» Bulawayo-1950» Botswana- 1970» Angola- 1980

504/08/23

Overview

Miller Brewing Company, USA• Founded In: 1855

• Founded By: Frederick Miller

• Miller’s Death: 1888

• First Brand: “Miller High Life”, 1903

04/08/23 6

• 1969-70: Phillip Morris Companies Inc acquired MBC

• 1975: “Miller Lite”(Low Calorie Beer)

• 1977: Second largest Beer Company in the USA

• 1985: “Miller Genuine Draft”

• 1990-02: Stagnation Period

• 2002: Phillip Morris sold MBC to SAB

04/08/23 7

Overview

SABMiller Plc.

• Formed: 2002

• Merger: South African Brewing Company and

Miller Brewing Company

• Chairman: Meyer Kahn

804/08/23

Stage 1

04/08/23 9

Trend Analysis

04/08/23 10

Stage 2

04/08/23 11

Understanding the Important Aspects of the Case

“SABMiller’s Performance Culture”• Well known for it’s performance oriented culture in

the industry• Strong focus on resourcefulness, integrity, drive, and

excellence• Qualities of it’s culture• SABMiller’s culture borrowed heavily from “SAB

Ways”

04/08/23 12

Understanding the Important Aspects of the Case

Human Capital Proposition• Self managed, empowered, performance driven

people

• Maintain uniform organizational culture

• HCP ensured people got the right job fit

• Succeeded in “Walking Their Talk”

04/08/23 13

04/08/23 14

Exhibit IIISABMiller’s Employee Value

Proposition

Human Capital Proposition

04/08/23 15

Leadership

The “SOUL”Stuff

CultureAnd

People

Globalization

DiversityManagement

People Development

Strategic People

Resourcing

Performance Management

HumanCapital

Proposition

Understanding the Important Aspects of the Case

Performance Management• Enabled to fulfill the business strategy

• Top down goal setting and robust control system

• Based on ten basic principles

04/08/23 16

04/08/23 17

Ten Principles of the PMS

Understanding the Important Aspects of the Case

Strategic People Resourcing• People – core factor of its business

• People’s information given equal priority as financial and sales information

• SABMiller believed, people offer long –term, sustainable shareholder value

04/08/23 18

04/08/23 19

SABMiller’s Strategic People Resourcing Model

Understanding the Important Aspects of the Case

People Development• Develop its employees through transference of

knowledge into five core regions

• Coaching approach used in training programs along with the latest learning methods

• Each employees on an average had 7 days access to HRD department every year

04/08/23 20

Understanding the Important Aspects of the Case

Diversity management• Equal employment opportunity policy

• The Employment Equity Consultative Committees for the smooth running of the system

04/08/23 21

Understanding the Important Aspects of the Case

• Globalization

• The “Soul” Stuff

• Leadership

04/08/23 22

Understanding the Important Aspects of the Case

Reshaping culture at MBC

• Able Challenger

Fred’s Pub

Beer University

04/08/23 23

Understanding the Important Aspects of the Case

The Three Drivers

04/08/23 24

Stage 3

04/08/23 25

Linkages to Human Capital Concepts

• Maslow’s need hierarchy

04/08/23 26

Linkages to Human Capital Concepts

Integrated Performance Model for organizational Excellence

04/08/23 27

Customer

Performance Drivers

Core Competencies

Managerial LeadershipOrganizational Values

Organizational LeadershipOrganizational Culture

Performance Edifice

Strategic Intent

Employee Stockholders Society at large (CSR)

Performance Levers

Systems Policies Processes People

04/08/23 29

Critical Performance Factors

Facilitating Factors Inhibiting Factors

Team Performance, competitiveness, talent

management, achievement motivation, learning orientation, risk taking, entrepreneurship and innovation, rewards

and appreciation

Aversion to change, insularity of leaders,

arrogance of managers, unethical practices

Linkages to Human Capital Concepts

• Connect• Career• Clarity• Convey• Congratulate

• Contribute• Control• Collaborate • Credibility• Confidence

04/08/23 30

Ten C’s of Employee Engagement

Linkages to Human Capital Concepts

• Learning OrganizationPersonal Mastery

Systems Thinking

Shared Vision

Team Learning

• Open Systems

• Social Identity Theory

• Contingency leadership

04/08/23 31

Stage 4

04/08/23 32

Extrapolation of Feasibility

• Is the acquisition of Miller by SAB sustainable?

• Will the performance culture at SABMiller enable it to sustain it’s growth in the highly competitive beer market?

• Since Miller is growing consistently after the acquisition is there a possibility for future separation?

04/08/23 33

Key Learning’s

• “People First”

• Leadership

• Strategic HRM

• Organizational Culture

04/08/23 34

Thank You

04/08/23 35