Investors in People: A case study of Implementation South African Breweries (Ltd) 2004 Presentation to the Bank SETA, May 2005 by Lita Theron Training & Development Consultant

Contents of this presentation  Background to SAB  Rationale for IIP in SAB.  Implementation process and key learnings

Background to SAB  SAB Miller plc is an international brewery with deep roots and a rich heritage in South Africa.  When SAB plc acquired Miller Brewing Company in May 2002, forming SABMiller, it became the second largest brewer in the world by volume.  The company has interests in more than 26 countries, and operates in more than 110 breweries, producing over 80 different brands, with an annual capacity of 120-million hectolitres.  The company operates breweries in Africa, Europe, the USA, Central America and Asia and exports beer to more than 40 countries.  Beer South Africa, employs 5,000 employees with a total annual beer volume of 25.3 million hectolitres and helps to support thousands of retailers and suppliers. It is a major contributor to the fiscus (for e.g.. in 2002, SAB paid some R2.7 billion in excise duties.) Through its exports, SAB is also a substantial earner of foreign exchange.  SAB holds 59% market share of the liquor market and 98% share of the malt beer market in South Africa.  SAB holds the top 4 positions in the Top 20 liquor brands (on premise) in South Africa, with Castle Lager holding the top position

PEOPLE is a core value  SAB works to create “the environment for all individuals and teams to develop to their full potential, for the benefits of themselves and the company”.  One of the 3 core themes underpinning SAB’s business vision is, with growth and corporate image, its commitment to the development and culture of its people.  SAB averages around 7 days of training per employees per year, at close to 5,5% of its payroll costs, ranking it among the world’s blue-chip companies.  It’s commitment to training has earned it international recognition: the company is represented on the judging panel of the International Benchmark Forum, which is part of the ASTD.  In 2001, SAB’s commitment to its people was recognised by the Deloitte & Touche / Financial Mail annual “Best Company to work for” survey in which it was placed first.

Why did SAB choose IIP?  In 1991 SAB did a functional integration of HR into line management roles and we have been entrenching benchmarked people practices into the business even since.  SAB wanted to maximise our human capital development in order to increase competitiveness and retention of talent.  We wanted to ensure a minimum standard of a respectable level – we had quantitative benchmarks from ASTD, but no qualitative benchmark.  It had great appeal as an international benchmark of quality around HR practices.

HR Strategy Best Practice HRD Communi- cation Leadership External req’s Performance Management Best Employer Award Increased morale, competence, retention, business results

Implementation Process used in SAB 1.Pilot site 2.Pre-implementation 3.Implementation 4.Post-implementation

Piloted at Newlands Breweries

1.Pre-implementation  Obtained commitment from senior management.  Created project infrastructure.  Ensured project team development.  Defined implementation approach.  Aligned existing processes and practices to the IIP standard: – Relationship to organisational levels. – Alignment to existing HR & HRD practices (IMP – People Management, CAP – People Development). – Map processes and outcomes to Evidence Requirements.  Develop communication and assessment plans.

INVESTORS IN PEOPLE (IMP) COMMITMENT Business Strategies Board/MOC/SOC Goals Div. Business Plan Reg. Business Plan PLANNING Regional Goals Team Goals Individual Goals Matrixes ACTION One-on-One’s Individual Reviews Team Reviews EVALUATION Customer Feedback Recognition Compensation Annual Report (CAP) COMMITMENT NQF Framework CAP Policy Training Committee HRD Strategy PLANNING TNA’s, Plans & Budgets CAP & Skills Plans Training Plans & Solutions Career Discussions ACTION Development Plans Assessments Dev. Alignment Skills Plan delivered EVALUATION Performance Impact Competence Career Development Evaluation

Implementation - Communication  Facilitated site orientation sessions with the employees.  Communicated the IIP standard and audit process: – What, where, who, why, when and how – Poster campaign  Aligned workplace evidence.  Developed checklist and conducted a GAP analysis.  Analysed responses and developed action plans to address gaps.  Prepared assessment plan.  Arranged countdown to audit.

Implementation - Assessment  Scoped representative sample.  Schedule 1 on 1 interviews for sample group.  Prepare material for context setting with Auditors.  Develop evidence portfolio’s.  Facilitate assessment preparation workshop to line management.  Undertake IIP review: – Presentation to Auditors and site walk-about. – Evidence Portfolio/Display. – Sample interviews as per schedule. – Obtain verbal feedback from Auditors. – Recommendation to International Recognition Panel – Written feedback report  Obtain Recognition as an Investor In People.

Post-implementation  Provided feedback to employees and celebrate success.  Insights from assessors were very valuable.  Developed a continuous improvement plan based on audit report.  Working to keep the culture of continuous improvement alive.  Obtain re-accreditation within 3 years.  Facilitate on-going communication. Achieving recognition is only the start of the process!

The value-add  IIP raised our level of HR practice to a minimum level.  Raised the consciousness of HR Practice in the business.  Brought it in line with other measurement systems.  Created a lot of momentum and excitement in the business. What would you like to get out of it?

Questions