Miller Brewing Co.

recently underwent quadruple bypass surgery in Milwaukee at

the hands of Norman Adami. He inculcated staff with a “will to win” (8) and initiated
a culture shift that addressed our worst issues: demotivated staff, overcapacity on
the production side, an eroded relationship with our distributors, and a complacent
followership style of management (1). In order to “stop the rot” and rescue our
company’s struggling image, Adami stood toe-to-toe with Anheuser-Busch and
tackled our problems head on with an “able challenger” mentality that permeated
every level of our organization.

Miller was a strong company “resting on its laurels” (1). Performance management
did not exist and employees considered goals as mere activities to keep them busy.
They were not enthusiastic about their jobs and were not held accountable for
underperforming. Since there was no correlation between performance and results
Miller became stuck in “in a vicious circle of brand decline” (8) which resulted in
poor financial performance. As a change agent, Adami recognized this and
instituted a participative management style (p. 419) that held all levels accountable
for performance in the organization. Furthermore, using both punishment and
positive reinforcement, Adami maintained high levels of motivation that were
stagnant for so long. Creating performance measures like top-down goal setting
improved the drive each individual had to succeed (Gilmore, 2004).

The opening of Fred’s Pub and Beer University broke down hierarchy and was a
symbolic “unfreezing” to move forward organizational change (p.499). This enabled
an “open, challenging culture” (Business Week: Able Challenger), improved quality
of life and provided leadership with an informal means of communication to learn
from employees. More importantly, the need to belong was fulfilled and allowed
people to reconnect with the roots of the organization and celebrate the proud
individuality of Miller (4).

With the employee base invigorated, Adami sought the help from other executives
to tackle overcapacity and consolidate operations to boost profits. Understanding
that the US is not homogenous, Adami marketed Miller as “the Number two that has
a Number Two strategy – not as a failed Number One” (7). Moreover, according to
Virgis Colbert, senior VP of worldwide operations, closing breweries and improving
line efficiencies has equated to an 89% capacity rate, more productivity and a
reduction in waste (1). This strategy has helped close the market capitalization gap
with Anheuser and has “put the brakes on their stock appreciation” (Business Week:
Collide).

Adami also sought to earn and rebuild powerful business relationships with the
distributor network and key accounts that had faded over the years. Adami listened
to distributors and aggressively invested in local markets to re-establish the Miller
brand and win over the “hearts and throats” of consumers (3). This enhanced
Miller’s capability to achieve a more “pervasive and more competitive distribution”
(2) and expanded our geographic footprint. Miller now takes a “deep dive into 61
territories” (Business Week: It’s Norman Time) and has surrounded the enemy
(Anheuser) with a quality product, great packaging, and a marketing strategy that
exploits the distributor’s local knowledge (1). The advantage of Adami’s new
strategy is that Miller is able to quickly and easily react to the changes in localized
markets.

Adami’s corporate culture shift is working. We have invigorated our employees and
rediscovered our passion for making great beer. This correlated to increased
productivity and better performance measures. Moreover, it fostered social
integration, relevance, and the development of human capacities among employees
(p. 506). However, this participatory management style can be time and resource
intensive and take away from marketing and production efficiencies.

In order for the success of Miller to continue, top management needs to recognize
the purpose of change and hold everyone accountable for their performance. This
support is crucial as we challenge “the legend and the law of the industry that once
a brand is in decline it cannot be revived” (BusinessWeek: Able). Utilizing a
quarterly review process and the Continuous Change Process Model we can
measure our performance while implementing changes to our marketing and
production needs. We got ourselves in this mess together and together we will
continue to build on Adami’s successful leadership.

Also, we may need to plan annual meetings with our distributors and shareholders
or hold corporate meetings with our in-house employees. By reaching out and
keeping the lines of communication open it shows we care and are willing to listen.
In doing this, we will be able to tackle issues upfront and as quickly as possible. It
will also provide us with a holistic view of our company and give us feedback on
how our cultural changes are impacting both national and global markets.

With a new found identity, we will ensure we do not fall victim to mediocrity again
and will no longer sit idly by and let the world dictate how we operate. We will be
on the cutting edge of consumer motivation and reassert Miller as a great brand
ready to challenger our competitors.