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Miller Brewing Company, a subsidiary of the tobacco giant Philip Morris, is the second largest brewery in the United States. Its parent, Philip Morris, is considered to be the largest packaged goods organization in the world. The other main Philip Morris susidiary, the recently acquired Kraft Foods, is responsible for this distinction (12).
Miller holds roughly 21% of the US domestic beer market with its approximately 50 brands of beer. It runs breweries in seven different states from coast to coast and has made steps to break into international markets (5). Miller is currently the leading import beer in Ireland, South Korea, Norway, Mexico and the sixth largest brewer in the world, selling beer in about 100 countries worldwide (6). Perhaps, the best accomplishment of all, Miller Genuine Draft is now the best-selling American brand in Miller's homeland of Germany (10).
Miller is grouped among the most innovative breweries in the beer industry. These influential ideas include a strong tradition of new approaches in the alcoholic beverage sector. Examples of these breakthrough inventions include the first nationally distributed light beer, the first draft beer in a bottle, the first recyclable plastic bottles, and lastly the first national brewer to recycle its aluminum. One of Miller's core beliefs involves staying on top of the newest and best developments within the industry (3).
The company prides itself on its strong commitment to quality brewing techniques and end products. Its 7,000 employees are encouraged to pay attention to detail and make all of the beer produced, "perfectly Miller." Employees are highly valued at Miller. Evidence of this fact can be seen on the company's web site which boasts, "Miller Brewing emloyees make Miller Time!" (5).
Back to Changing Corporate Culture
While working throughout his uncle's brewery, Miller learned a vast knowledge of brewing. He also added to this by visiting many beer - producing cities in Germany. Soon, he leased the brewery of the royal family of Germany, the Hohenzollerns. On June 7, 1853, he married Josephine Miller and by 1854 they had their first son, Joseph Edward. During this time, Germany was becoming a more and more difficult place to live. Amidst political unrest and growing restrictions, the Millers emigrated to the United States in 1854. They brought along with them $9,000 in gold, partially in gifts (4).
After living in New York City and travelling throughout the country for a year, the family travelled up the Mississippi River to Milwaukee, Wisconsin. Soon after settling in Milwaukee, Miller purchased the Plank - Road Brewery for $8,000. The brewery was started by Frederick Charles Best and later abandoned in 1854. Then in 1855, Frederick Miller brewed his first barrel of beer in America and spoke of his vision for commitment as "Quality, Uncompromising, and Unchanging." After Miller's death in 1888, the family continued to run the business well into the 19th century. In 1966, a majority of their stock was purchased by W.R. Grace Co. and in 1969 the company was purchased by Philip Morris Inc. (4)(6)(11).
Corporate culture is the "system of shared beliefs and values that develops within an organization and guides the behavior of its members"(2). All companies have their own identifiable corporate culture. This corporate identity is based on the philosophy of the company and makes themselves distinct in the marketplace (7). Culture within companies has the ability to control attitudes, reinforce beliefs and actions, and generate the motivation for certain performance objectives. It can also help to encourage positive behavior and emphasize the negative aspects of poor behavior. Top ranking firms have healthy cultures that enable all employees to function in a way positive for all involved (2).
Corporate culture exists on two separate levels. First, there is the observable culture, which includes stories, rites and rituals, heroes, and symbols. These are characteristics of the company that are readably identified both within the company and outside, amongst its competitors, customers, and general consumers (2). Observable culture can also be considered the intangible "style" of the company, the image that is portrayed primarily to the world outside the corporation (1). The second level of organizational culture is the core culture (2). The core culture of a business represents the most cherished values of an organization. The core values of a firm are unique between all companies and are a key component in distinguishing between each individual company (7). Principles such as open communication, intellectual challenege, ethical business practice, and recognizing excellence can lead to a positive corporate culture (1).
A positive organizational culture can also be an important decision making tool for employees. Executives of Fortune 1000 companies stated in a study conducted by Robert Half International Inc., that a positive work environment was a primary concern in keeping its subordinates pleased with their job (1)(13).
Many of today's organizations are changing towards worker friendly cultures within their firms. It is of strong belief that making the well-being of people a top management priority will lead to a more successful business in the long run (1). Miller Brewing Company is of no exception to this belief. In 1996, Mark Spear became the new Director of Management and Organizational Development, of the Milwaukee-based brewer. He left his former company, Alcoa, to accept this position (8). Spear states that his mission is to help Miller Brewing reinvent itself through a process of changing its internal culture (3). . He intends to change the core culture of the company by altering the main factors, or observable culture, that affect or mold the core beliefs of the employees and the organization. This is no small task, he must change the most basic elements of a company's culture or the stories, rites and rituals, hero figures and the symbolism that the workers and the organization as a whole hold dear to their hearts. His first and foremost method of attacking the core culture problems he saw involved revamping the employees perception of their place within the company and the beer industry. Spear said, "I think one of the foundations of changing an organization is having people really understand the business, where they add value to it and how they impact the bottom line." Spear chose to focus on the rites and rituals section of observable culture with the hope that his changes would bring about a new and improved corporate culture for Miller Brewing. Spear, along with a team of experts, compiled information on each indiviual employee role and how each role in turn affected the end product and level of success for the brewery. The team emerged with a finished product called Brewery Business Understanding. Every step to having a successful brewery is covered in this program. One of the biggest innovations that the team has given Miller is a slide rule that will tell a worker exactly how his or her actions will impact the economic situation of the entire brewery. Miller is currently using this as a type of training rite and has implemented it for all hourly wage earners and the supervisors of these persons within the business (3).
Spear has also implemented a similar program for salaried workers which is called Business Understanding. This program, rather than using a slide rule, uses tools called business literacy maps to explain to middle management persons exactly where they fit in the overall scheme of things. There are four business maps each covering a different area of the organization. The first gives an overview of the customer/consumer/competitor landscape. The second sheds light on the distributor relationship the company. The thrid explains the flow of revenue in both domestic and foreign arenas. Lastly, the fourth explains the chain of command at Miller Brewing (3).
Spear once said, "Until our people better understand the broad business and how they add value up and downstream in realtionships with the distributors, consumers and suppliers, it's hard to move the oraganization forward." With these two new rites, the Brewery Business Understanding and Business Understanding programs, worker confusion over roles within the organization will cease to exist and awareness on how one person can make a difference will increase by leaps and bounds. These programs will promote progress among both the hourly wage workers and middle management of Miller which will in turn create higher overall levels of well being, productivity and quality within the organization (3). Spear also employs observable culture aspects that were already in place before his takeover of command at Miller Brewing. Miller has always used their stories, or more appropriately their history, aspect to create and enhance a positive core culture. The organization holds the core belief that with innovation comes success. Because of this fact, Miller holds many firsts within the beer industry (see About Miller section above). When the historical stories are told of Miller having the first nationally distributed light beer the core belief of innovation is reinforced (3)(6).
Symbolism is another area on which Miller has focused in order to manipulate its core culture values. When browsing the Miller Brewing homepage one will find a link directly to a page discussing the Miller Brewing organization. Underneath the main heading in bold pring is a sentence that says it all, "Miller Brewing employees make Miller Time!" The subsequent paragraphs describe the level of the commitment and dedication that employees who work for Miller Brewing have. They also emphasize the importance of the Miller Brewing employees in the quality of the beer itself. Miller utilizes web space like this in order to make symbolic gestures to their employees to let them know that they are appreciated. This will increase employee well being, loyalty, and overall performance (3)(6).
Mark Spear has made a large impact on the culture at Miller Brewing. Because of his innovative techniques the employees at Miller have a much better understanding of where they stand within the company. They understand the connection that they have to the beer they produce and the customers they serve no matter how far removed from the process their jobs may seem. In the end Miller is given a happier and more productive workforce and, in the long run, a more prosperous organzation.