Dr Tienie Ehlers- Lessons from Leadership Development

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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 ASTD Conference Lessons from Leadership Development: The SAB Leadership Capability Journey Tienie Ehlers 17 March 2015

Transcript of Dr Tienie Ehlers- Lessons from Leadership Development

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

ASTD Conference

Lessons from Leadership Development:

The SAB Leadership Capability Journey

Tienie Ehlers

17 March 2015

Context of this discussion

- 2 -

ü  The purpose of this presentation is to share the journey of SAB with regards to our current

Leadership Capability

ü  It is by no means a document to show the success or perfect journey in leadership development,

but rather the reality that faces businesses in such a journey, including challenges and learnings

ü  This presentation will also show some practical roll-out ideas and tools within such a journey

ü  Two important things as a start:

•  If this was easy and simple, I would make millions and be in consulting now!

•  Secondly, and more seriously, this kind of journey MUST be lead by the MD and Board of Directors,

else it WILL fail

The SABMiller Global Leadership Approach as a start…

n  Grounded in best practise

-  Developed in light of strategic intent and key challenges -  Based on data gathered from leaders at different levels -  6-8 discrete behaviours which together describe the major

actionable shifts

n  Rooted in our business

-  Clear themes that reflect our own journey -  Language that’s right for us

3

What we have done to start this journey up-front

n  Interviewed 100+ leaders across our business about key market dynamics and corresponding leadership challenges

n  Reviewed outputs of our business strategy as well as strategic workshop outputs

n  Interviewed the Change Leads about their projects and plans

n  Examined experience of comparable organisations

n  Discussed the proposals with SEF’s and acted on their feedback

4

Where were we after this?

n  Our senior leaders recognised that their roles are changing

n  Many are still trying to understand what the change will involve

n  We all agreed that we need to make these new expectations clear

n  We have identified the key shifts in behaviour through the right language

n  Most value will stem from how well we communicate, embed and reinforce them

5

The key shifts in behaviour are as follows (our new leadership behaviours!) To be successful in becoming a globally integrated business our leaders will need to:

n  Be externally focused on consumers, customers, communities

n  Demonstrate a whole business mind-set

n  Make timely clear and prioritised choices

n  Build relationships and trust across the business

n  Develop capability for the long-term

n  Be passionate and engaging 6

Finalising these Leadership Behaviours involved:

n  Finalising the language used

n  Aligning the launch plan with Internal Communication and Regional

MDs

n  Producing communication materials that provide practical business

examples of how these behaviours will drive success

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Reinforcing the Behaviours: Proposed Actions n  For Business and Functional Teams – Structured workshop to provide intact teams with space to discuss what it means for them

n  For Individuals - New behaviours embedded in our Leadership Development programmes and tools n  Embedded in our HR processes starting in F15: PM and Leadership Development

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Non-negotiables: n  That a set of global leadership behaviours should be adopted to

support our move to becoming a globally integrated business

n  That the ExCom will take personal and collective ownership for communicating and leading these shifts in behaviour

n  That the key focus in F15 should be our senior leaders (ExCom, MDs, Country Operating Boards, Senior PLC and Hub)

n  That they will be progressively incorporated into our HR processes

as a reinforcing mechanism

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Leadership Transitional Stages

Leadership Map – where it fits on this model

Leading Self Manufacturing Trainees/ Sales academy

Leading Self Finance Academy

Leading Self Procurement Academy

Leading Self HR Academy

Leading Self Commercial Academies

Leading Others

Leadership Fundamentals PE Dvpt Prog

Leading Managers

Regional Management Development Programmes

Leading a Function

Functional Lead Programme

Leading a Business

MDs Programme

Exco Team Development

Leading an Enterprise/ Group Function

Engaging with the Future

NOW….the agenda of how we are rolling this out in SAB South Africa:

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SECTION 1 Changes  in  Leadership  behaviours  post  MDC  

workshop  

SECTION 2

In  response  to  above  proposed  Solu:on  /  Journey  for  the:  

•  MDC  •  SEF      

SECTION 3 Roll-­‐out  plan    

SECTION 4 Budget  op:ons  

SECTION 5 Leadership  Journey  Culture  shiE  •  Ac:on  Learning  Approach  

SECTION 6 Training  Solu:ons  &  Anchoring  plan  

Confidential. Work in Progress. For Discussion Purposes Only

SAB South Africa Business Context: Our Journey to Success

Where we are today

•  Momentum restored • Competitor on the back foot •  We can accelerate profit growth •  We have delivered

Outlook for the future

• The opportunities remain substantial • New challenges have emerged • We can still deliver over the long term • Flying a plane built on the ground

NEW Challenges •  Social unrest

•  Slowing SA economy and rand under pressure •  Competitive game moving to next stage

•  Regulatory and legislative challenges

Mutually domestic focussed to globally integrated

The new Leadership Model in SAB Ltd & SABMiller talks about the characteristics and behaviours’ that the new and upcoming leaders

of this organization must have!

The Leadership Behaviours and what it meant to the Board (MDC)

Section 1

New Global Leadership behaviours

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To be successful in becoming a globally integrated business our leaders will need to:

ü Be externally focused on consumers, customers,

communities

ü Demonstrate a whole business mind-set

ü Make timely clear and prioritised choices

ü Build relationships and trust across the business

ü Develop capability for the long-term

ü Be passionate and engaging

Reality

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ü MDC started the conversation using draft behaviours

ü The MDC has 2 new members to be included into the journey

ü Draft 5 evolved into the Global Leadership behaviours

ü MDC to adjust focus areas to Global Leadership behaviours ü All solutions still aligned and remain unchanged

ü Timelines for launch can still be maintained in F15

Our narrative for communicating the roll-out should focus on building leadership capability – building the right skills to

operate optimally at each leadership transition level

Narrative: How do we quantum leap into the future and Achieve our North Star?

- 17 -

ü We need to build organic growth

ü We need to do more than we ever have before with less

ü We are expected to change and adapt quicker today

ü As a global organisation embarking on an integrated change plan, collaboration and engagement will ignite the spirit of trust and passion in SAB

ü  It is Leadership Capability operating at its optimal at each level in the organisation that is our aim and it starts with each one of us getting back to our leadership basics

It is only through our people that this much needed paradigm shift can take place and it starts with each one of us, taking personal

accountability for our leadership journey

Proposed solution/journey for MDC & SEF leaders

Section 2

Proposal for MDC

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MDC Align to global

leadership behaviours

• Communicate Global leadership behaviours to MDC via MDC workshop

•  Include new MDC members in work done • Align focus areas to new behaviours before SEF

in March

‘HOW’ Goals

Leader-Led

• Engage & equip MDC to demonstrate these behaviours

• Design year-long PLC aligned leadership journey for MDC

•  Leadership Behaviours included as ‘HOW’ Goals

•  ‘What good looks like’ measures identified and in place

Proposal for Senior Leader Roll-out

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SEF: global leadership behaviours

communication

• MD to present why leadership capability so important now

• Articulate expectations from all leaders in the business

• Roll-out plan & what to look out for

Structured Workshops for OC’s & SEC teams

‘HOW’ Goals &

capability developme

nt

• Build leadership development into Individual IDP’s aligned to development programmes

• Customised leadership plans designed per function

•  Discuss what the leadership behaviours mean to them

•  Leadership Behaviours included as team ‘HOW’ Goals

•  ‘What good looks like’ measures identified and in place

MDC members support & participate in leadership intervention roll-out

Roll Out Road map and Timeline

Section 3

Cascading Leadership Approach

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ü  A Leader Led approach will be followed with cascading the Leadership behaviours through structured workshops

ü  Engage & equip Leaders to identify development opportunities and assist them to develop capability and demonstrate behaviours

MDC

Operating Committees

Regional Leadership Teams

Functional Leadership Teams

One on One Direct reports

Leadership Road Map

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•  What  do  the  Leadership  Behaviours  mean  to  team  

•  Create  a  purpose  statement    

•  Iden:fy  consequence  management    

 

•  Iden:fy  Team  leadership  development  plan  and  built  into  goals  –  ‘How’  Goals  

•  Each  Teams  From  to  journey  on  how  to  change  in  order  to  navigate  the  water  

•  Iden:fy  Capability  Gaps  and  ac:on  

•  Commitment  &  personal    accountability  

•  Self  mastery  personal  Leadership  journey  plan  iden:fied  &  built  into  Goals  –  ‘How’  goals  

•  Role  modelling  

Tools to Anchor & Sustain culture shift

MDC session to align & finalise Global Leadership behaviours focus areas

SEF  Comms  session  

Team  Leadership  structured  workshops  

Team  /  Func:onal  Leadership  Journey  

Individual  Leadership  journey  

•  Build  Awareness  •  Gain  Commitment  from  

Senior  Leaders  to  Role  Model  behaviours      

   

Communication and roll-out plan

Leadership Cafes / Engagements

What’s Brewing What do the LB’s

mean to us? MDC Personal

Leadership Commitment

Caught in the Act Recognition Tool: Recognising Exemplar Leadership

Behaviours

MDC Workshop (Agreement &

Buy-in on new Leadership Behaviours

HRBP Toolkits for: workshops,

(1:1 meaningful engagements, Team Meetings, on the job

coaching)

Pocket books, posters, pledge video

Leadership Awareness sessions with RBP’s &

team in prep

Subtle messaging through internal Comms, GM Briefs, Yammer, Articles, Videoblog etc

1:1 meaningful Leadership conversations

with Line manager (Update IDP)

SEC leadership workshops designed and rolled out : input to be included

into the functional goal setting sessions – ‘How’ goals

SNR Leadership Team interventions

Subtle messaging through internal Comms, GM Briefs, Yammer, Articles, Videoblog etc

MDC personal reflections on Leadership Behaviours and

what they mean to me Communicated to respective

teams

SEF Communication

Session on Leadership

focus

November 2013 Feb 14 April May Aug/Sept

Cap

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Impl

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Eval

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bui

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t 1&

2 March 14 June/July

Regional Goal Setting Facilitated Sessions

(Workshop Leadership as how goals incl success measures)

Training Interventions for specific Teams & individuals per level & functional to be agreed

Leadership Fundamentals TTT

to build internal capability

Pilot for Leading self and

Leading managers

360 degree finalised IDP

Meaningful conversation tool: Regional anchoring through coaching

Snr leader workshop

Tools

Regional sessions

Training solutions

Evaluation & anchoring tools

Budgets Options

Section 4

Description Unit Rate Total Details

Leadership Website 0 80000 0Website is hosted on internal portal

Executive Leadership Journals 0 100 0Only black and white No communication pack

Leadership comunication material per business unit 0 250 0MDC Leadership Pledge Video/visual journey documented 0 50000 0Regional Pledge Wall Paint 0 500 0Compass and info keyring 0 100 0SUB TOTAL 0

Venue and Catering costs 0 500 0 Total of 198 Senior leaders Printing Costs 198 250 49500 Training Material

Facilitator Flight costs 0 4000 0Cost for two facilitators flying four times

Accommodation costs (Cape and Newlands 0 750 0

* Two facilitators* Newlands and Cape to be completed in the same week

Accommodation costs (East Coast and Prospecton) 0 750 0

* Two facilitators * East Coast and Prospecton to be completed in the same week

Accommodation costs (Bloemfontein) 0 750 0 * Two facilitators Accommodation costs (Polokwane) 0 750 0 One person SUB TOTAL 49500

Leadership Fundamentals TTT 28 5700 159600

Two facilitators per region including COF to undergo TTT and then facilitate the course internally

Leading Managers intervention 3 day intervention 50 6500 325000 Global pilot in SALeading a business for MDC 0 12000 0 Global pilot in SASUB TOTAL 484600

HRBP Training the Trainer on new 360 degree tool 44 1000 44000HRBP Live meeting ongoing training sessions 1 10000 10000

Change management and coaching tool - 'HOW' to have meaningful conversations 1 170000 170000Ongoing 360 tool support for 2000 people 1 120 000 120000

SUB TOTAL 344 000GRAND Total 878 100

Leadership Behaviours Preliminary Budget

Communication and Change Budget

Leadership Roll out Plan - Capability Development building Journey

Leadership Roll out Plan - Capability Development Building Journey - training solutions

Anchoring Plan Budget

Description Unit Rate Total Details

Leadership Website 0 80000 0Website is hosted on internal portal

Executive Leadership Journals 200 150 30000Only black and white No communication pack

Leadership comunication material per business unit 200 250 50000MDC Leadership Pledge Video/visual journey documented 0 50000 0Regional Pledge Wall Paint 0 500 0Compass and info keyring 0 100 0SUB TOTAL 80000

Venue and Catering costs 198 100 19800 Total of 198 Senior leaders Printing Costs 198 250 49500 Training Material

Facilitator Flight costs 8 4000 32000Cost for two facilitators flying four times

Accommodation costs (Cape and Newlands 4 750 3000

* Two facilitators* Newlands and Cape to be completed in the same week

Accommodation costs (East Coast and Prospecton) 4 750 3000

* Two facilitators * East Coast and Prospecton to be completed in the same week

Accommodation costs (Bloemfontein) 0 750 0 * Two facilitators Accommodation costs (Polokwane) 0 750 0 One person SUB TOTAL 107300

Leadership Fundamentals TTT 28 5700 159600

Two facilitators per region including COF to undergo TTT and then facilitate the course internally

Leading Managers intervention 3 day intervention 75 6500 487500 Global pilot in SALeading a business for MDC 0 12000 0 Global pilot in SASUB TOTAL 647100

HRBP Training the Trainer on new 360 degree tool 44 1000 44000HRBP Live meeting ongoing training sessions 1 10000 10000

Change management and coaching tool - 'HOW' to have meaningful conversations 1 200000 200000Ongoing 360 tool support for 2000 people 1 120 000 120000

SUB TOTAL 374 000GRAND Total 1 208 400

Leadership Behaviours Preliminary Budget

Communication and Change Budget

Leadership Roll out Plan - Capability Development building Journey

Leadership Roll out Plan - Capability Development Building Journey - training solutions

Anchoring Plan Budget

Leadership Culture Shift: Objectives and Process

Section 5

Guiding principles to achieve these objectives

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ü Capability building is Leader Led - Leaders to Role model exemplar leadership behaviour

ü We will use subject matter experts and coaches where required (internal & external)

ü We will build capability in the work that we do ü We will follow the natural rhythm of the business ü We will favour on the job training and action learning,

supported by formal training depending on the level of the group

ü We will use tools and best practice from PLC ü Good enough will never be good enough

Communicating the Behaviours: Non-Negotiables

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ü Leader-led

ü Business-focused

ü Respecting our heritage

ü Authentic

Consistent approach but not identical activities

What is expected of all our Leaders

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ü That leadership behaviours should be adopted to support our move to becoming a globally integrated business

ü That the MDC & SEF will take personal and collective ownership for communicating and leading these shifts in behaviour

ü That the key focus in F15 should be our senior leaders (MDC, SEF)

ü That they will be progressively incorporated into our HR

processes as a reinforcing mechanism

What's in it for me?

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By embarking on this journey, we believe we will: •  Create a better working environment

•  Leaders will succeed in the accomplishment of their goals by operating optimally at their specific leadership level

•  Grow as Leaders, personally and professionally.

•  Contribute to the sustainable long term growth of the organization

•  Become a globally integrated organisation

Leadership is not just ‘what’ you do but ‘how’ you engage & behave. It is a way of being that requires commitment, practice and daily discipline.

Training / Coaching Solutions & Anchoring plan

Section 6

Meaningful Conversations: Leadership for High Engagement Change

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ü  With meaningful conversation, we will be able to facilitate effective leadership and learning based upon:

ü  Collaboration ü  Effective decision making ü  Innovation and ü  Productive dialogues

The Process consists of:

• A 2 hour orientation session by internally accredited facilitators for every line manager • Customised toolkits to guide a line managers and employees discussion on the various topics • This toolkit works in conjunction with the coaching skills for Line managers – ‘Be the Coach’ 2 or 1 day training session • HRBP’s will be trained as facilitators and allocated per region

Conversation is the DNA of interpersonal communication and by extension organisational culture. It is also the road to personal, team and organisational transformation

‘Be the Coach’

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Leadership Fundamentals – Getting Back to Leadership Basics

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\

Programme Overview: as listed below •  Internal facilitators will be accredited to develop these capabilities within

the business from front line leaders and above

Leading Self

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Module 1 - Helping SABM make the best use of resources and maintain a positive reputation.

ü This module will be run in-country and already exists as part of the induction process.

Module 2 – Enabling you to contribute and perform

ü This module is designed in-house and will form the major part of the two-day regional launch.

ü This module will focus on understanding the context of the programme and goal setting for the individuals. It will introduce the concept of self-leadership and allow participants the opportunity to consider the leader they want to be.

Module 3 – Focussing myself

ü What is self-leadership? Why bother? The impact leadership has on self, the impact on others and the way to build a powerful reputation as someone who gets things done.

Module 4 – Building trust

ü Following on from Module 3 where the focus is on the individual, this module will broaden their perspective to consider which relationships they need to build and how to go about doing so.

Module 5 – My contribution

ü Module 5 provides the opportunity for them to learn about team. The focus of this module is on developing yourself to become fully effective in the context of helping your team to improve performance.

Leading Managers

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Module 1: Me as a Leader

Module 2: Leading a high performing team

Module 3:Leading change and improvement

Schein Change Management

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Symbols

Systems & Processes

Behaviours

Beliefs

3. Behaviours What behaviours are rewarded and recognised to indicate an exemplar Leadership culture? The only way to make a behaviour become consistent over time is through positive re-inforcement.

2. Systems and Processes What systems and processes are in place that indicate

this is an exemplar Leadership culture? Integrate the leadership behaviours into our existing processes and what other processes will enable the behaviour change

1. Symbols What are the symbols that indicate

this is an exemplar Leadership culture?

Symbols like how people are rewarded and recognized is important. People who

demonstrate exemplar leadership get promoted

4. Values and Beliefs What values and beliefs are held by our employees that drive an exemplar Leadership culture? Do the employees have belief in their rules of engagement/ Commitments etc and what does it

look like. Are they living it.

Schein change Management

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Symbols

Systems & Processes

Behaviours

Beliefs

3. Behaviours Meaningful conversations to build engagement Leadership Behaviours are lived Leading by example and

Role modelled by senior leaders

2. Systems and Processes PM Way TM Way ‘Be the Coach’ Leadership Pathway

1. Symbols Commitments /Pledges boards; Employees with exemplar leadership are promoted GM Briefs discussing Leadership Leaders magazine MD Leadership Town hall/ lunch sessions Caught in the Act

4. Values and Beliefs SAB Miller Values are

lived Team purpose and rules

of engagement. Commitments are lived and taken seriously

Limiting belief systems

are challenged to build a ‘can to attitude’

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Leadership Café’s

ü  Platform for Snr Leaders (SEF)to discuss the leadership behaviours with employees

ü  Each Director and SEC team members to operationalise Leadership behaviours per functional area (What does it mean for the each area with focus areas and Plans)

ü  An hour session monthly or every 2nd month at the local regional pub

ü  It could also take the form of the MD Townhall meetings or a Regional GM’s brief session

Caught in the act recognition

ü  Web based (Beernet)Tool to identify the Leadership Behaviour role models – Employees living the SAB Leadership behaviours and values

ü  “Caught in the act” behaviour of recognising that the right things can stimulate a new way of working or thinking and once internalised will build a self sustaining & progressive culture.    

ü  Regional, National Recognition to identify the Leadership Champions (link to CBL)

Personal commitment and Pledge

ü  By  capturing  on  video,  short  key  messages  or  pledges  by  the  senior  management,  we’re  showing  the  employees  that  this  is  something  different,  something  special.    

ü  The  idea  should  be  that  because  our  senior  leaders  believe  in  this  journey  and  is  prepared  to  live  it  and  do  things  differently,  I’  as  an  employee  will  stand  up  and  pay  a?en@on.  

ü  Posters  and  booklets  to  be  made  for  each  area  of  the  business  

Leaders Journal Pledge Wall

Little Booklet

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Leadership Cafes

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ü  Platform for Snr Leaders (SEF) to discuss the leadership behaviours with employees

ü  Each Director and SEC team members to operationalise Leadership behaviours per functional area (What does it mean for the each area with focus areas and Plans)

ü  An hour session monthly or every 2nd month at the local regional pub

ü  It could also take the form of the MD Townhall meetings or a Regional GM’s brief session

Caught in the Act Recognition Tool

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ü  Web based (Beernet) Tool to identify the Leadership Behaviour role models – Employees living the SAB Leadership behaviours and values

ü  “Caught in the act” behaviour of recognising that the right things can stimulate a new way of working or thinking and once internalised will build a self sustaining & progressive culture.    

ü  Regional, National Recognition to identify the Leadership Champions (link to CBL)

Personal Commitment by MDC and Snr Leadership

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ü  By  capturing  on  video,  short  key  messages  or  pledges  by  the  senior  management,  we’re  showing  the  employees  that  this  is  something  different,  something  special.    

ü  The  idea  should  be  that  because  our  senior  leaders  believe  in  this  journey  and  is  prepared  to  live  it  and  do  things  differently,  I’  as  an  employee  will  stand  up  and  pay  a?en@on.  

ü  Posters  and  booklets  to  be  made  for  each  area  of  the  business  

Pledge/Commitment board per reigon or Functional area

- 45 -

LEADERSHIP INTERACTIVE SYSTEM EXAMPLE

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Confidential. Work in Progress. For Discussion Purposes Only

THE LEADERSHIP JOURNEY: LEADERSHIP INTERACTIVE SYSTEM EXAMPLE

47

Growth

Trust

Passion

Job

Confidential. Work in Progress. For Discussion Purposes Only

THE LEADERSHIP JOURNEY: EXAMPLE

Growth

Trust

Passion

Packaging Manager

Brewing Manager

QA Manager

7

Confidential. Work in Progress. For Discussion Purposes Only

THE LEADERSHIP JOURNEY FOR PACKAGING MANAGER

8

Growth

Trust

Passion

Value add behaviours

Career Map

CAP

Solutions

LEADERSHIP BEHAVIOURS FOR PACKAGING MANAGER

Practicing Ethics & Integrity

Leadership Value Add Behaviours

Exercising Resilience

Valuing Differences

Engaging & Developing the Organisation

Managing the Interfaces

Providing Focus

Driving Profitable Growth

Creating a Sustainable Business

LEADERSHIP BEHAVIOURS FOR PACKAGING MANAGER

Providing Focus

Leading Managers Value Add Behaviours

Value add through

Operates key insights and gives clarity to complex situations, in order to focus SAB strategy and improve innovation.

Key Activities (Pack man) •  Manage plant process & systems •  Manage productivity through

divisional benchmarking & cont improvement

•  Minimise waste •  Lead WCM •  Control fixed and variable cost •  Optimise Process capability

THE LEADERSHIP JOURNEY

52

Value add behaviours

Career Map

CAP

Solutions

Growth

Trust

Passion

POSSIBLE SOLUTIONS FOR PACKAGING MANAGER

MDP

Leading Managers Solutions

Adaptive/Influential Leadership

Leading Others Solutions

Leading Self Solutions

In closing…(sfw)

•  Leadership development is a journey…a never-ending journey •  It is about the ride…and not the final destination •  Everyone can always keep developing their own leadership skills…if

they are willing and open for this ongoing change process •  It is never a completed journey!

•  So, you need: •  Full-time dedicated resources (CoE? / Budget / Tools and

Processes) •  For people to see how leadership can / will impact on business

results – find that direct link •  To reward leadership behaviours across all levels •  To make it part of the PM process (HOW goals through 360 degree

process) •  To be patient!

© SABMiller plc 2015 Confidential. For internal discussion purposes only

…in closing…(leadership is about passion!)

At a world brewing convention in the States, the CEOs & MD’s of various brewing organizations retire to the bar at the end of the day. Bruce, CEO of Fosters, shouts to the barman: "In Australia, we make the best bloody beer in the world, so pour me a Fosters, mate." Bob, CEO of Budweiser, calls out next: "In the States, we brew the king of them all - gimme a Bud."

© SABMiller plc 2015 Confidential. For internal discussion purposes only

Hans steps up next: "In Germany ve invented beer. Give me un Helles, ze REAL King of beers." Jan, chief executive of Heineken, follows by stating that Heineken is the ultimate beer and asks for one with two fingers of foam on top. Mauricio, MD of SAB, is next: "Barman, give me a diet Coke with ice and lemon please." The other four stare at him in stunned silence, then Bruce asks: "Aren't you going to have a Castle, Mauricio?"

© SABMiller plc 2015 Confidential. For internal discussion purposes only

Mauricio replies: "Well, if you guys aren't

drinking beer, then neither am I."

SABMiller Our Story

To be the most admired company in the global brewing industry

was

SABMiller - Where we are going – our vision

To be the most admired beverage company in the world

now

We bring refreshment and sociability, improve livelihoods

and help build local communities

SABMiller -What we stand for - our purpose

SABMiller -What we stand for - our values

SABMiller - The global leadership behaviours

Focus externally on our

consumers, customers and

communities

Build relationships

and trust across the business

Demonstrate a whole-business

mindset

Develop our people and

organisation for the long term

Make timely, clear and prioritised

choices

Be passionate and engaging

LEADERSHIP BEHAVIOUR

Listening to our stakeholders so we have the insights we need to shape our

offerings and benchmark performance

FOCUS EXTERNALLY ON CONSUMERS, CUSTOMERS AND

COMMUNITIES

Being focused on the actions and metrics required to drive efficiency and volume

growth

Taking collective ownership of the big issues that will make a material difference

to long-term performance

DEMONSTRATE A WHOLE BUSINESS

MINDSET

Optimising the individual performance of our own function, market or region over

the short-term

Making the tough trade-offs so we invest where it will deliver greatest benefit to the

Group

MAKE TIMELY, CLEAR AND PRIORITISED

CHOICES

Running our business using a multiplicity of KPIs that are not aligned, locally or

globally

FROM TO

The behaviours call out some important shifts in how we lead our business

The behaviours call out some important shifts in how we lead our business

LEADERSHIP BEHAVIOUR

Building teams across organisational boundaries, sharing resources to achieve

joint outcomes

BUILD RELATIONSHIPS AND TRUST ACROSS THE

BUSINESS

Operating autonomously, building strong personal relationships with those in our

immediate area

Developing the more diverse set of people and capabilities needed to achieve our

strategic priorities

DEVELOP OUR PEOPLE AND

ORGANISATION FOR THE LONG TERM

Providing challenging jobs and letting people sink or swim

Leading by example, positively creating engagement and supporting change

BE PASSIONATE AND ENGAGING

Focusing on task achievement, being directive, providing autonomy

FROM TO

Our Action Learning Approach to enable the behavioural and culture shift

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Action Learning model for behaviour change

Awareness

Engagement &

Commitment

Action

Evaluation &

Maintenance

•  What is it? •  What are the

different components?

•  Why are we doing this?

•  What happens if the status quo remains unchanged?

•  What does this mean for me?

•  How does this impact me?

•  How do I contribute?

•  What are the other Hubs doing?

•  Continuous reflection & monitoring;

•  Assessing Performance indicators

•  Evaluate / measure consequence management

•  Identify what we/I need to change ?

•  What capabilities are required?

•  Define plans and resources

•  Execute changes •  Develop

Indicators

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

CREATING VALUE THROUGH LEADERSHIP

SAB Leadership Journey

How do we implement the Leadership Model or build BELIEF in the Model?

This is not a project but the adoption of a new way of being, demonstrated through a new attitude

Awareness & Addressing perceptions

Ownership & Engagement

Action Maintenance

Build awareness through: •  OC Meetings •  Exec team

meetings •  Internal comms

•  Build emotional engagement with the model through: employee reflection

•  Deeper conversations (1:1’s)

Define what is required for individuals & teams to put this to work •  Facilitated

workshops by HR •  Interactive

navigation tool

Measuring tools in place to evaluate the impact of behaviour change •  360 degree •  OE/EE Survey •  Team feedback

Proc

ess

Tool

s Leadership Behaviours Booklets

Regional Packs for HRBP & senior leader facilitated sessions Process Guides to have meaningful discussions Communication toolkits Newsletters

Process to identify development opportunities

Employee receives feedback on his/her development areas through:

•  Peer feedback •  Upward feedback •  Customer feedback •  Self-assessment Which will be linked to Leadership Behaviours, Values as well as Management and Self-management practices

Agreed Development needs are then captured in the individual’s IDP:

• Individual takes accountability for his Individual Development Plan

Employee discuss Development Gaps with Manager during One-on-One or

Performance review: • Identified development opportunities are then discussed with Line manager • This forms part of the employee’s Career discussion

Individual uses the Leadership Interactive System to navigate through specific

development solutions by behaviour by role •  Individual first identifies his/her transition level •  Thereafter, the individual has the opportunity

to navigate himself through: •  The behaviours •  Possilbe solutions •  Cap •  Career Map

Definitions and Indicators Working Draft 28 February 2014

Global Leadership Behaviours

70

The Global Leadership Behaviours

Focus Externally on our Consumers, Customers and Communities LEADERSHIP BEHAVIOUR

We strive to understand the aspirations and needs of all our stakeholders, being curious about what they think, and listening even when what we hear is inconvenient or doesn’t align with our view of the world. We develop insights and foresights that shape the offerings and experiences we provide. We use their standards as benchmarks of our performance.

WHAT WE DO

ü  Develop networks and contacts that provide insight into the changing environment ü  Learn from what is happening in other markets and geographies ü  Stand in our stakeholders’ shoes, and look for what will work for us both ü  Develop strategies and plans that are consumer and customer focused ü  Focus on on adding value to our customers, consumers and communities ü  Benchmark our performance rigorously against the very best – within and beyond our industry

WE WILL

x  Be so naïve or arrogant to think we are right and our stakeholder is wrong x  Get so caught up in internal issues that we lose sight of what matters to our stakeholders

WE WON’T

Consumer and customer insight is a core strength of the world’s most admired consumer goods companies. To win in our changing environment, we need to use this to drive what we do so we deliver value to them. During our journey to becoming a globally integrated business, it’s imperative we don’t become too internally focused.

WHY IT MATTERS

The Global Leadership Behaviours

Demonstrate a Whole Business Mind Set LEADERSHIP BEHAVIOUR

We take collective ownership, looking beyond our individual situations to think and act in ways that benefit the business as a whole. We focus on the big issues that will make a material difference to our long-term business performance.

WHAT WE DO

To become a globally integrated business that delivers superior performance and optimizes returns for the Group, we must leverage our global skills and scale by pulling together, standardizing and integrating our activities and processes.

WHY IT MATTERS

ü  Make decisions on our own accountabilities/priorities in light of the wider business interests ü  Seek out what’s worked elsewhere and adopt it ü  Be willing to change our own priorities in the interests of the whole business ü  Identify the particular role we can play in optimizing the performance of the whole business ü  Learn more about the priorities and issues of others in the wider business ü  Enthusiastically promote the ideas of colleagues, putting aside personal hobby horses

x  Continue to create our own approaches or adapt others’ x  Protect things of personal importance which aren’t material in the bigger scheme of things

WE WILL

WE WON’T

The Global Leadership Behaviours

Make Timely, Clear and Prioritised Choices LEADERSHIP BEHAVIOUR

We prioritise and focus our resources through being selective and consistent in pursuing initiatives that drive value in both the short and long-term; we stop things that are no longer of value.

WHAT WE DO

We need to make difficult choices, and be better in prioritising, sequencing and pacing the work we do, so we tackle the big challenges, create clarity for those we lead, are more agile and responsive, and make SABMiller a great place to work.

WHY IT MATTERS

ü  Be choiceful in selecting things that will make a real difference to long-term performance ü  Focus ourselves and our teams on a small number of KPIs that really matter ü  Provide and seek feedback loops so we know what isn’t working and can adapt accordingly ü  Work on issues at the right level for our role and avoid getting involved in others’ detail ü  Debate issues rigorously, engage in productive conflict to understand and resolve the issues ü  Act in line with the choices we have made rather than re-opening the debate

x  Use the need for more data as a pretext for avoiding making a decision or taking action x  Consistently prioritise the short-term

WE WILL

WE WON’T

The Global Leadership Behaviours

Build Relationships and Trust Across the Business LEADERSHIP BEHAVIOUR

We seek others’ input and develop trusting professional relationships with colleagues and stakeholders. We share knowledge and resources to achieve joint outcomes and create teams that work effectively across organisational boundaries.

WHAT WE DO

Working well with others outside our market or functional area to achieve business outcomes is a key change required to become a globally integrated business. Investing time in building relationships and trust with them provides an essential foundation.

WHY IT MATTERS

ü  Make a point of valuing the expertise and insights that others bring to the table ü  Invest time and effort into building relationships with colleagues across the business ü  Actively seek the input of key internal stakeholders to decisions that we hold the ‘A’ for ü  Test our own assumptions by asking questions and actively listening to our colleagues ü  Get the right team around an issue, involving all those who can add value to the situation ü  Express our views openly, constructively and respectfully

x  Assume people outside our team aren’t able to provide insight into our issues x  Express a lack of commitment or undermine team decisions that we’ve signed up to

WE WILL

WE WON’T

The Global Leadership Behaviours

Develop Our People and Organisation for the Long-term LEADERSHIP BEHAVIOUR

We invest our time and money in systematically developing the diversity of knowledge, skills and people needed to achieve our strategic priorities. We provide constructive feedback that helps others learn and grow.

WHAT WE DO

One of our key leadership legacies will be an organisation full of people equipped to take the organisation forward in the long-term

WHY IT MATTERS

ü  Seek colleagues’ feedback, identify improvement areas and take action to develop ourselves ü  Provide candid and constructive feedback to help others learn ü  Recognise and reward people for developing others ü  Build more diverse teams to bring a wider range of abilities and experiences to the business ü  Take personal responsibility for the development of our team ü  Identify and build the critical capabilities required for long-term business success

x  Take a ‘sink or swim’ approach to development x  Avoid giving challenging or difficult feedback in a constructive manner

WE WILL

WE WON’T

The Global Leadership Behaviours

Be Passionate and Engaging LEADERSHIP BEHAVIOUR

We lead by example and communicate positively to create engagement and support change; we strive to be more aware of ourselves and our impact on others. We show appreciation for great performance.

WHAT WE DO

Actions speak louder than words. As we lead our organisation through a period of challenge and change we need to create confidence through being realistically positive about the future and involve others more in helping to build it.

WHY IT MATTERS

ü  Go out of our way to understand others’ views and their reasons for them ü  Seek to persuade rather than intimidate others with our views ü  Visibly demonstrate commitment to becoming a globally integrated business ü  Help people deal with change, making sense of it and how it fits together ü  Involve others more to help shape the journey to becoming globally integrated ü  Value different perspectives to our own, listening and respecting others’ points of view

x  Say what we think without considering its impact and how it will land x  Rely on our positional power, merely seeking compliance with our views

WE WILL

WE WON’T