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It's Miller Time Essay

2310 words - 9 pages

Executive Summary – Revitalization of the corporate culture of Miller BrewingHaving reviewed Miller Brewing’s revitalization, we will analyze the “downward spiral” of Miller Brewing and the corresponding necessity of a cultural shift. It is our belief that the cultural shift was necessary, well deployed, and vital for the health of the company.Realistically there were two options for Miller Brewing: a cultural shift designed to resurrect the company, or the continued decline of the company itself. Regardless of the difficulties in undertaking a cultural shift, it was preferred over watching a once proud and strong company wither away. Changing the culture at Miller was better than allowing Miller to drift into mediocrity, eventually becoming just another small brewing company. Miller had already witnessed other breweries in Milwaukee, like Pabst and Schlitz, recede into obscurity in the national market (Carter). Miller’s goal was to avoid being another once proud brewery.Norman Adami, the newly appointed CEO of Miller, took radical steps to revitalize the organization. Adami “restocked much of the executive suite with consumer product heavyweights” (Carter). Strained relationships between Miller and independent distributors were revived and strengthened. Employees were educated about the brewing process, instilling greater levels of pride and passion (Carter). Adami established a dramatic sense of urgency (Carter) which encouraged others to follow suit, making the company more nimble and responsive. Through Adami’s direction, the company revisited its founding culture. This shift revitalized Miller Brewing by reinstating the core company values: Quality, Uncompromising, and Unchanging (www.beerhistory.com).The cultural shift observed follows Lewin’s Model of Change. During a cultural shift, a group will transition through three stages. These stages initiate, implement, and maintain change, and were respectively named Unfreezing, Changing, and Refreezing by Lewin. Under the direction of Adami, current operational processes and procedures were recognized as ineffective, new operational processes and procedures were introduced, and reinforcement of changes was demonstrated in the operation of Miller Brewing. These changes raised Miller’s stock price 190% and reduced their principle competitor’s market share by $10-12 Billion (Carter).Miller Brewing: Why was a cultural shift necessary?In 2003, Miller Brewing had 17% of the industry sales, compared to 23% in 1994 (Carter). The lag in sales and profit was due to the culmination of many different corporate decisions implemented in sub-optimal manners over the years. No single change or occurrence at Miller Brewing was catastrophic on its own. Miller Brewing lost its core corporate culture because of the changes and occurrences over time. This loss, coupled with lagging sales and a complacent workforce, put Miller Brewing in desperate need of change....

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