The people factor in successful implementation of WCM - TRACC

Where we operateOldest Democracy in Latin AmericaSecurity improvementStrengthening rule of lawIneffective judiciaryPerception of corruption includes businessHigh level of decentralizationPro-business, popular government but waningRegional socialist tendency30,00025,00020,00015,00010,0005,000-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Common Homicide

Bavaria´s role in SABMillerBavaria is an important profit contributor…..30%SABMILLER EBITA SHARE25%F07 F08 F09 PF120%18.5% 18.0%15.8%15%10%5%11.4%10.6%7.5%5.4%3.7% 3.7%2.9% 2.5%0%…thus sustainability is an important priority

Where are we locatedPLANTPRODUCTIONCAPACITYMM HLTS F08VOL. SALESMM HLTS F08BOGOTA 4,95 4,47TOCANCIPA 8,4 4,83BOYACA 2,05 1,25B/QUILLA 3,08 3,58B/MANGA 1,77 2,12MEDELLIN 2,82 3,09VALLE 3,27 2,8TROPICALTIBITO144000(Tns/year)---34000(Tns/year) ---MALTINGBREWERY

Our values‣ Our people are our enduring advantage‣ Responsibility is clear and personal‣ We work and win in teams‣ We understand and respect our customers and consumers‣ Our reputation is indivisible

WCM vision in the context of BavariaBAVARIA VISION“To be the most admired company in Colombia, and a strong contributor to SABMiller´s globalreputation.”The brands of choiceThe employer of choiceThe partner of choiceWCM VISION“To be the key contributor to the success of the Bavaria Manufacturing Strategy.”Excellent deployment of WCM practicesInnovative implementation of TRACCMajor contributor to collaboration/ shared learningThe country to visit to learn

The human factor in WCM implementation‣ Senior management support‣ Middle management buy-in‣ The new role of the old supervisor‣ Structures‣ Teams and teamwork‣ Team member roles‣ Leadership‣ Emotional intelligence‣ Competencies‣ EtcFocus on two key issues that are often ill-addressed‣ The changed role of the front line manager‣ Meaningful jobs

The human factor in WCM implementationDignity& respectEngagedmanagementRegularadjustmentFront-lineproblemsolvingClear &relevantgoalsWCEReal-timeperformancevisibilityMeaningfuljobsTeamworkTalented& skilledpeopleClearaccountability

The human factor in WCM implemenationThe old front-line manager´s mode of operation• Gave instructions• Kept knowledge tacit• Generally non-cooperative/looked after own area• Office-basedThe new expectation• Support shop-floor teams• Share knowledge broadly• Empower his/her team• Coach employees• Engage in problem solving• Be present on the shop-floor to support• Visit the trade regularly

The human factor in WCM implementation - ProfessionalsStrategic people resourcing diagnostic:Leadership – 27%Teamwork – 43%Communication – 62%Problem solving – 62%Focus on results – 68%MethodologyPerformance calibration F08PotentialPerformance review processPsychometric testingStrengths:Technical knowledgeExperienceAreas of Opportunity:TeamworkAnalysis capability.General management skillsLeadershipProblem-solving

The human factor in WCM implementation - OperatorsStrategic people resouring diagnostic:Operator education levelMedellin brewery – 21% incomplete high schoolBogota brewery – 12% incomplete high schoolBoyaca brewery – 13% incomplete high schoolMethodologyAssessment centre to determineability to work in teams plusdevelopment needsCompetency evaluationStrengths:Teamwork (Questionable)Areas of Opportunity:Assuming riskPlanning, analysis and problem solvingLeadership

The human factor – What are we doing to transform1. Talent Management2. Line Managers in Action3. Performance Management4. Competence Acquisition Process

What is linemanagers inaction?The first stage of a program to developbetter leaders in the business.Development takes place in practicalsessions which vary between 2 and 8hours in duration.Designed within the context of ourculture and leadership model.

What are thepoints ofreference?Our company values.Management and self-managementpractices.High performance culture.WCM practices blending teamwork andresponsible leadership.

Whoparticipates?All leaders in all breweriesincluding front line managers.How do peopleparticipate?Self-awareness and reflection.Practical activities related to daily worklifeSelf-learning with respect to each theme.Receive feedback from work teams andothers (360 degree), generate andexecute individual action plan.

Developmentof theworkshop:ContentRoles developed within the context of WCM.Understanding of the plant structure.Team structure, and description of the roles andwork practices.MethodsWord games to validate roles.Facilitation in identifying barriers to successfulimplementation of WCM(Check lists in the workplace).Anchoring and support.

Developmentof theworkshop:ContentModule 1. Define leadership in Bavaria termsModule 2. The importance of your beliefsModule 3. Understand the module and your role in itModule 4. Understand how to make a differenceModule 5. Creation of development planModule 6. Put your plan into practiceMethodology:Pre-evaluation of leadership skillsWorkshop on the leader you want to beDefine individual development plans

Feedback report – Section 1

Developmentof theworkshop:ContentCulture of risk prevention and accountability forindividual and team safetyAnalysis and control of riskHealthy work environmentLessons learnedMethodologyExercises: Self-reflection and idea generation wrtimproved work-place safetyPractical exercises in risk identification

Developmentof theworkshop:ContentPerformance managementRecruitment and selection processCompensation and benefitsAdministration of third partiesLabour relationsSocial responsibilityMethodologyRole playsCompetence based interview and feedbackPractical exercisesEvaluation of knowledge pre and post via ateam competition

At the end of theprogram we willhave achieved…– Understanding of individual and team roles,and connectivity with the other areas of thebusiness.– Individual and team goals.– Results orientation and focus on rapidproblem solving– Multi-functional teamwork– Taking effective decisions at the correct level– Strengthened relationships throughbehaviours which reflect mutual respect anddignity– Reinforcement of WCM practices

A meaningful jobWhat is it?• A job in which I feel that I am learning• A job in which I feel that I can contribute• A job in which I am expected to think• A job that is broader than simply pushing buttons• A job in which non-value adding tasks are eliminated• A job in which I have a voice• A job in which I collaborate with others

A meaningful jobJobs that are meaningful and require ingenuityFROMTO1. Employees carry out instructionswith no decision-making capacity.An autocratic paternalisticorganisational culture.2. No teamwork.3. Ineffective communication.4. Culture of blame-fixing.5. No empowerment.1. Requirements are clear and employeesare certified as competent.2. Employees expected to take decisions.3. Empowered to be innovative.4. Effective communication5. Employees focused on continuousimprovement and involved in problemsolving.6. Operators perform front-linemaintenance.7. High level of commitment.

A meaningful jobHow are we creating meaningful jobs?• Job design taking WCM principles into consideration• Competency guides developed• Employees tested to determine the gap between current and desired• Generic training on engineering principles• Training on WCM principles• Individual training plans developed and actioned

CAP cycle – Preparing for a more meaningful jobAnalysisneedsCompetenceguidesEvaluate trainingIndividualdevelopment plan(IDP)Designing andplanning trainingKPI´sImplement trainingFeedback

Results

ResultsReliability - Bavaria

Results

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