Case Study

SABMiller’s Human Capital

Proposition: Institutionalizing a
Performance Culture

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 Group Members
• Neha Singh

• Pooja Sawant

• Prerna Chandak

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 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
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 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.

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• 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

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 Overview
Miller Brewing Company, USA
• Founded In: 1855

• Founded By: Frederick Miller

• Miller’s Death: 1888

• First Brand: “Miller High Life”, 1903

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• 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

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 Overview
SABMiller Plc.

• Formed: 2002

• Merger: South African Brewing Company and

Miller Brewing Company

• Chairman: Meyer Kahn

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 Stage 1

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 Trend Analysis

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 Stage 2

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 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”

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 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”

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 Exhibit III
SABMiller’s Employee Value
Proposition

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 Human Capital Proposition

Performance
Management

Strategic
People
Leadership
Resourcing

The “SOUL” Human People

Stuff Capital Development
Proposition

Culture
Diversity
And
Management
People

Globalization

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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

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 Ten Principles of the PMS

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 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

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 SABMiller’s Strategic People
Resourcing Model

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 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
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 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

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 Understanding the Important
Aspects of the Case
• Globalization

• The “Soul” Stuff

• Leadership

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 Understanding the Important
Aspects of the Case
Reshaping culture at MBC
• Able Challenger

Fred’s Pub

Beer University

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 Understanding the Important
Aspects of the Case
The Three Drivers

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 Stage 3

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 Linkages to Human Capital Concepts

• Maslow’s need hierarchy

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 Linkages to Human Capital Concepts

 Integrated Performance Model for

organizational Excellence

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 Strategic Intent

Performance Edifice

Organizational Culture Organizational Leadership

Organizational Values Managerial Leadership

Core Competencies

Performance Drivers

Customer Employee Stockholders Society at large

(CSR)

Performance Levers

Systems Policies Processes People

 Critical Performance Factors

Facilitating Factors Inhibiting Factors

Team Performance, Aversion to change,

competitiveness, talent insularity of leaders,
management, arrogance of managers,
achievement motivation, unethical practices
learning orientation, risk
taking, entrepreneurship
and innovation, rewards
and appreciation

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 Linkages to Human Capital Concepts

Ten C’s of Employee Engagement

• Connect • Contribute
• Career • Control
• Clarity • Collaborate
• Convey • Credibility
• Congratulate • Confidence

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 Linkages to Human Capital
Concepts
• Learning Organization
Personal Mastery
Systems Thinking
Shared Vision
Team Learning
• Open Systems
• Social Identity Theory
• Contingency leadership

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 Stage 4

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 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?

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 Key Learning’s
• “People First”

• Leadership

• Strategic HRM

• Organizational Culture

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 Thank You

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