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AB InBev's Brito: 'Hire the Right People'
26 segments available
As CEO of the leading global brewer and one of the world's top five consumer products companies, Carlos Brito shares his perspective on leading a large organization and stressed hiring the right people. Related article: http://www.gsb.stanford.edu/insights/carlos-brito-corporate-success-depends-individual-employees More about the View From The Top speaker series: http://www.gsb.stanford.edu/vftt All View From The Top videos: http://www.youtube.com/course?list=EC5C14B375A7F2FEA8
Segments Timeline
Building a Performance Culture
Carlos Brito discusses the challenges of creating a performance culture in corporate environments compared to sports and academia. He highlights how natural competitive elements in school and sports often disappear in the corporate world, leading to a lack of accountability and urgency in hiring and performance management.
"Thank you everyone, thanks for being here, thanks for taking the time to listen to me. I will try to make it short and sweet, and sounds great to be back at the --. I am here today to talk about how t..."
The Corporate Disconnect
Brito provocatively questions why the accountability and performance standards seen in sports and education are often absent in corporate settings. He emphasizes that many employees defer responsibility to HR or higher management, which undermines the potential for high performance and accountability within organizations.
"then at the age of 22-24 we go out to the corporate world and all of a sudden lot of things that were so natural and made so much sense, in the corporate world because of many things peer pressure, po..."
The Role of People in Companies
Brito stresses that companies are fundamentally made up of people, and that individual accountability is crucial for success. He contrasts the proactive nature of teams in sports and education with the passive expectations often found in corporate environments, urging leaders to take ownership of their teams' performance.
"the things in my vision, in my opinion, that gets lot of companies not to be a good or high performing company because they are full of these barriers okay to act naturally. Second thing I wanted to t..."
Dream Big: The Power of Vision
Brito introduces the concept of 'dream' as a driving force in a company, arguing that it is more impactful than traditional visions or missions. He explains how a compelling dream can inspire employees to strive for excellence and push the boundaries of what is possible within the organization.
"that's doesn't get you to be a great company. So these two ideas now let's go into what we learned, three things that create a top performing culture. We are not saying this is the only way to do it, ..."
Great Companies Are Built by Great People
Brito emphasizes that the foundation of successful companies lies in their people, not just products or profits. He discusses the importance of attracting, retaining, and developing top talent, and how great individuals can elevate the performance of the entire organization.
"into it because you have to work hard, it's not a target, it's a dream, and by definition it's a tough one, it's a stretched one. It's not an adventure. If you put out there an adventure and say guys,..."
The Importance of Challenging Each Other
Brito highlights the dynamic between great people, noting that they attract and challenge one another to improve. He contrasts this with mediocre teams that foster complacency, arguing that a culture of high expectations and mutual support is essential for sustained success.
"not because of the brand. The brand was there was the second step, first step was to have great people, okay. So again great companies can only be formed by great people. Second thing, great people at..."
Creating a Meritocratic Environment
Brito outlines the characteristics that attract great talent to an organization, focusing on meritocracy, informality, and candor. He explains that a meritocratic culture, where performance is recognized and rewarded, is essential for retaining top performers. This segment underscores the significance of fostering an environment where employees feel valued and can express their ideas freely.
"okay. So we look at leaders and one of the traits that we look is what's the capacity that they have to form, find, recruit, retain, develop people because leaders that can only use people that were d..."
The Importance of Constructive Feedback
In this segment, Brito stresses the necessity of providing constructive feedback to employees. He shares his belief that respectful and honest communication is vital for personal and professional growth. By addressing performance issues directly, leaders can help employees improve and ensure that the organization maintains high standards.
"in school of course if you have an F you know exactly what it means, you fail, if you have an A you got the scholarship of course. But then you got to the company, performance evaluations, that's stra..."
Navigating Promotions and Talent Retention
Brito discusses the challenges leaders face when promoting talent within their teams. He warns against the tendency to promote long-tenured employees over more qualified candidates, as this can lead to the departure of high achievers. This segment highlights the importance of making merit-based decisions to cultivate a thriving workplace culture.
"it's not everything rosy, okay. So again they like meritocracy and think about this, it's so easy again peer pressure, you go to a company, you lead a business unit, you have a vacancy, somebody got p..."
Creating Opportunities Through Tough Decisions
Brito explains the necessity of making difficult decisions regarding underperforming employees. He advocates for providing feedback and, if necessary, letting go of individuals who do not fit the company's culture or performance standards. This approach not only benefits the organization but also allows individuals to find success elsewhere.
"please everybody that's another lesson that I learned time and time again, if you cannot please everybody, please the most talented ones. I would rather have the most talented people say visit my comp..."
Fostering Informality and Open Communication
In this segment, Brito emphasizes the value of an informal work environment that encourages open communication. He shares how the layout of their offices promotes interaction and collaboration among employees. This culture of informality helps to break down barriers and fosters a sense of community within the organization.
"okay. So that sounds like harsh but it's not, think about sports, that's what happens and we accept it; I am not saying we like it but we accept it. Another thing that great people lack is informality..."
The Need for Candor in Leadership
Brito discusses the importance of candor in leadership, stating that talented individuals appreciate knowing where they stand within the organization. He highlights the need for regular performance discussions and feedback to keep employees engaged and motivated. This segment reinforces the idea that transparency is key to retaining top talent.
"that great people like, mediocre people would love to be behind a closed door playing games and stuff. So candor, candor is the other thing. I mean talented people like to know where they stand becaus..."
Balancing Pressure and Performance
Brito shares insights on the balance between pressure and performance in a corporate setting. He explains that healthy pressure can drive individuals to excel, while too much or too little pressure can lead to poor outcomes. This segment emphasizes the importance of creating an environment where employees feel challenged yet supported.
"that can happen, right, which is never the case especially in the moments and the kind of world we live today. So again just trying to summarize meritocracy, the thing about the people that you need t..."
Embracing Change and Growth
In this segment, Brito discusses the necessity of taking employees out of their comfort zones to foster growth. He advocates for promoting individuals into new roles that challenge them, as this can lead to significant personal and professional development. This approach is essential for maintaining a dynamic and innovative workforce.
"bad. You should put too little pressure, people have a great time. The targets are easy and they don't expect too much. I mean if we grow half of what we could, that's fine, I mean that's okay, we wil..."
Cultivating a Culture of Ownership
Brito concludes by discussing the culture of ownership within the company. He emphasizes the importance of treating the business as if it were one's own, which fosters accountability and commitment among employees. This segment highlights how instilling a sense of ownership can lead to better decision-making and overall success for the organization.
"comfort zone, that's the way to develop great people. The third leg of the stool is culture. So I spoke about dream, people, now culture. Culture in our company we call it's a culture of ownership. We..."
Driving with Responsibility
Using the metaphor of driving a rental car versus one's own car, Brito illustrates how ownership affects behavior and decision-making. He argues that people tend to take more risks with rental cars because they do not face the long-term consequences. This analogy reinforces the importance of fostering an ownership mindset among employees.
"their decision. I like to give an example that caused me already some trouble but I keep going back to the same example, of the rental car, okay. It doesn't happen to me but I have heard some people d..."
Consumer-Centric Management
Brito highlights the significance of being consumer-focused in business operations. He stresses that consumers are the ultimate decision-makers and that companies must manage resources wisely to ensure value for customers. He advocates for a lean operational model that prioritizes consumer satisfaction over unnecessary expenditures.
"share ownership which is the classic way but more important than that is the mindset. We believe that people have shares, options, variable compensation which we [inaudible] of that, they first need t..."
Connecting Cost Efficiency to Growth
Brito explains the concept of 'cross connect win,' where reducing non-working dollars can lead to increased working dollars that consumers value. He emphasizes the need for companies to balance cost efficiency with revenue growth, arguing that both are essential for long-term success.
"believe so we call this the cross connect win. The more non- working dollars that are dollars that consumers are not willing to pay a premium for because they don't see it, they don't touch it, don't ..."
Defining Leadership
Brito shares his insights on leadership, defining it as the ability to deliver consistent results through teamwork. He emphasizes that true leaders must simplify complex challenges for their teams, enabling them to focus on actionable tasks that drive success.
"okay. Leadership, that's important thing in our culture. Our culture is only passed from person to person by means of leadership. Your actions as we all know are important than words. What's important..."
The Long Road to Greatness
Brito discusses the importance of building a strong company culture over time, warning against the temptation to take shortcuts by hiring from competitors. He stresses that developing talent internally fosters a cohesive culture that is essential for long-term success.
"sales reps. They are very smart, they are street smart but I don't have time to explain them everything that happens in the marketplace in terms of deep [inaudible] analysis that we do unless this is ..."
The Best Kept Secret of Success
Brito concludes by reiterating the significance of the 'Dream-People-Culture' framework in driving AB InBev's success. He emphasizes that this approach, which focuses on nurturing talent and maintaining a strong culture, is often overlooked by competitors, giving his company a competitive edge.
"person. Yes, it takes a long time but once you build it and you keep the gap to your competitors, it's hard for them to catch up because lot of the things I am talking about here, Dream-People-Culture..."
Merging with Purpose
Brito discusses the strategic merger with Anheuser-Busch during a financial crisis, focusing on the importance of communication and establishing a shared culture. He introduces the '10 Principles' framework that guides the company’s operations, emphasizing the need for a unified culture while respecting national differences. This segment underscores the significance of leadership in navigating mergers.
"questions. Thank you very much. [Audience] Very good point, very good point. We do that for example, the best example would be for example the merger we did with Anheuser-Busch, the Budweiser company ..."
Identifying Leadership and Culture
In this segment, Brito explains the critical role of leadership in fostering a high-performance culture within Anheuser-Busch InBev. He shares insights on identifying and promoting the right leaders who can inspire others and drive the company’s vision. Brito also addresses the necessity of removing underperformers to maintain a strong organizational culture.
"because once you set that framework, every question you go back to that framework. So when they said oh what's your opinion about this, I said well as I said and we have a thing called 10 Principles s..."
Balancing Strategy and Detail
Brito elaborates on the balance leaders must maintain between strategic oversight and detailed operational knowledge. He advocates for fewer organizational layers and open communication to ensure leaders remain connected to the business. This segment highlights the importance of preparation and understanding market dynamics for effective leadership.
"if the leaders are good leaders and you have at the bottom 10% or 15% whatever the balance that are always against anything. So those guys you have to identify and bang out. I think what was good in t..."
Self-Critique and Growth
Carlos Brito shares his personal approach to self-improvement and leadership. He discusses the importance of surrounding oneself with talented individuals who challenge and motivate him. Brito emphasizes the need for continuous learning and self-criticism as key drivers for personal and organizational growth.
"had that thing in mind. And the one I was talking to you about national cultures, we said okay are we going to be able to find people in all those other different cultures that we are going to go, the..."
Future Ambitions and Challenges
In the concluding segment, Brito addresses future ambitions for Anheuser-Busch InBev, including plans for de-leveraging following the merger. He discusses the brand's potential, particularly Budweiser's growth in international markets, and the challenges of maintaining brand perception. This segment encapsulates Brito's vision for the company's future and the strategic steps necessary to achieve it.
"continue to do this and you are going to be here. [Audience] You sound very ambitious and I like that. I have two questions, the first question is what's your next merger target? The second question i..."