SABMiller's Human Capital Proposition - Institutionalizing a Performance
Culture
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Case Details:
Case Code : HROB085
Case Length : 15 Pages
Period : 2001-2006
Pub Date : 2006
Teaching Note : Available
Organization : SABMiller Plc.
Industry : Beverage
Countries : South Africa, USA, Europe
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Excerpts Contd...
Reshaping Culture at MBC
AShortly after the acquisition of MBC in 2002, Graham Mackay, the CEO of
SABMiller said, "Substantial work is being undertaken to enhance the performance
culture within Miller in line with our practices." SABMiller pointed out that
mobilizing and invigorating the organization and its people to instill a
performance culture at MBC was one of the four components of the turnaround
plan, the other three being - building brands and shaping the portfolio, getting
sales and distribution right, and cutting costs and raising productivity. The
company believed that creating an intense performance culture at MBC was
critical to reversing the downward trend in Miller Lite's sales in the short
term.
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This would also create an environment for sustained growth at
MBC in the longer term. The culture had been reshaped by restructuring MBC and
bringing in new performance management processes, setting clearer goals, and
better training and development of its people.
Fred's Pub
According to Adami, bringing about a change in culture involved engaging the
hearts and minds of all the employees. It had to go beyond business and touch
the employees on a personal level giving the employees a feeling that whatever
they were doing makes a difference. One of the first things Adami did was to
build a pub, 'Fred's Pub', named after the company's founder Miller, in MBC's
Milwaukee headquarters. He was criticized for this move by some people in the
company.
This "out of the box" move was undertaken in order to instill a sense of pride
in the employees and also break down the hierarchical barriers. "We work for a
brewing company.
We need to be proud of what we stand for, of what we do as a company. We need to
be knowledgeable about what it is that we do," explained Adami, "We need to have
a more open, engaging, challenging culture, and that's what we're working
toward. I think people must not be afraid to talk up. People must feel confident
enough to engage in debate and that makes them feel part of what's going on.
It's also about enabling change. People talk about the fact that people resist
change. They don't resist change. They resist being changed. Change is a
constant. It's not a variable. It's really about how you enable change to
happen, and it's got to be an environment to enable change."...
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Outlook
Over the years SABMiller had focused on building its people's
capability. For the future, the company wanted to decrease its high
dependence on recruiting, developing, and exporting South African
talent. The company said that its people strategy for the future
would focus on embracing global talent, particularly people with
top-line capabilities. The company hoped to leverage its global
talent pool through SPR. There would also be a focus on developing
its global talent pool with training and management development
programs... |
Exhibits
Exhibit I: SABMiller's Seven-Year Financial Summary
Exhibit II: Financial Summary of MBC
Exhibit III: SABMiller's Employee Value Proposition
Exhibit IV: Where Leadership Fits in at SABMiller
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