BCP in a Green Company

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BCP in a Green Company
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New Belgium Brewing Co.

• Privately held
• Founded in 1991
• Ft. Collins, CO
• More later
• Growth was fast, massive and sustained with
  incredible energy
• "the only thing constant at NBB is change" became
  an unofficial motto
• Over 15 major expansions since 1991

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New Belgium Brewing

• NBB has become
• A mid-sized company
• Third largest craft brewer in the United States
• Third largest brewery in the state of Colorado
  (1Coors, 2AB/In-bev)
• Sold in 30 states
• Employs over 330 people
• Two Fort Collins, CO sites
• 40-acre site with 5 buildings and over 350,000
  square feet of facilities including an industrial
  waste-water treatment plant and an electrical
  cogeneration plant
• 85,000 square foot warehouse approx. 5 miles from
  main site

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A little history..

• First, a fat tire bike and a ride through
  Belgium
• Bringing Belgium to the basement in Colorado

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Why Green?

• Definitions of Green
• Companys Core Values
• Video

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New Belgium Brewing Purpose Statement To operate
a profitable brewery which makes our love and
talent manifest.

• Company Core Values and Beliefs
• Remembering that we are incredibly lucky to
  create something fine that enhances people's
  lives while surpassing our consumers'
  expectations.
• Producing world-class beers.
• Promoting beer culture and the responsible
  enjoyment of beer.
• Kindling social, environmental and cultural
  change as a business role model.
• Environmental stewardship Honoring nature at
  every turn of the business.
• Cultivating potential through learning, high
  involvement culture, and the pursuit of
  opportunities.
• Balancing the myriad needs of the company, our
  coworkers and their families.
• Trusting each other and committing to authentic
  relationships and communications.
• Continuous, innovative quality and efficiency
  improvements.
• Having Fun.

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Company Culture

• Group of people that were
• very entrepreneurial
• extremely idealistic
• risk tolerant
• Young
• comparatively high-level of education
• Social Responsibility and Sustainable Business
  Practices were critical from day 1 and are to the
  present day
• Philanthropy - Donate 1.00 per barrel of beer
  produced to charity
• NBB was green before green was black - A deep
  commitment to engage in sustainable business
  practices before "being green" was "in."
  Sustainable business practices are the right
  things to do the founders developed a powerful
  vision that they successfully communicated - They
  wanted to create a business model to prove to
  others that it works.
• NBB was successful because of sustainable
  business practices they were NOT established and
  maintained to prop up advertising and the bottom
  line only after it became the in-thing.

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Evangelist Video

• Play video

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The Bike(s) are Real
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Enjoy the Scenery!
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Effort to date

• Risk Analysis
• Resiliency1 Assessment
• Executive Committee buy in
• Beginning Business Impact Analysis
• .and now

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Culture and NBB

• Paradigm Shift - Transition from a very
  reactionary, in the moment posture to a proactive
  posture regarding risk management.

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Typical Cultural Issues

• Security
• We trust everyone, people are good
• Dont start acting like a suit
• We dont want policies and rules
• My job is making the beer the best, forget the
  rest
• Nothing bad has happened, this isnt NY

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BEFORE

• Lack of understanding about BCM and risk
  management amongst key personnel
• 'Keep the main thing the main thing."
• We make beer let's not get wrapped up in
  comprehensive risk management, after all we dont
  need it anyway, we manage our risk fine
• Fear that excessive non-beer making activities
  will reduce organizational effectiveness
• Fear that risk management, safety and security
  efforts have the tendency to erode culture

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After

• CEO Recognition that outside board members were
  necessary
• Outside BOD members began to discuss Risk - BOD
  recognition of risk management as a critical
  business function - NBB would become stronger and
  more resilient if we embraced BCM
• CFO began to get very interested in risk

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Alignment of key personnel

• Risk Environmental Affair Manager started
  reporting to CFO
• Allowed a much-needed and long-awaited transition
  to take place within the RMEA department and at
  the BOD level
• Self-imposed Risk Management Department
  re-alignment
• CFO and RMEA Manager developed a shared vision -
  Well aligned in terms of belief systems, risk
  management goals and risk appetite
• CFO became executive BCM sponsor
• Result A 3-year strategic initiative the BOD,
  after consultation with the CFO, called out BCM
  as a corporate-level strategy

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How does this compare

• Industries
• Government
• Legal
• Manufacturing
• Service Sector
• Education

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How does this compare

• Stages of development

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Feld/Culman

• Birth
• Teenager
• Young Adult
• Adult
• Senior Citizen

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Greiner

• Growth through creativity
• Growth through direction
• Growth through delegation
• Growth through coordination and monitoring
• Growth through collaboration
• Growth through extra-organizational solutions

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What stage?

• Why does it matter?
• What are the implications?
• How can we see the impact on BCP?

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What helped

• Alignment
• Business objectives updated
• Board of Directors

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Lessons Learned

• BCM initiatives are the pinnacle of risk
  management strategy and provide a framework for
  risk management programs
• We originally thought that safety was impacted
  heavily by culture, and it is, and we actively
  worked to address that but we missed the boat we
  should have been talking about BCM and risk
  earlier and used that to drive change.
• Culture must always be addressed before embarking
  on a key initiative.

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What Next?

• Finish quality BIA
• Prioritize and rationalize activities
• Alternate production
• Secondary suppliers
• Educate and sell ideas
• Continuation of company is responsibility of
  everyone, benefits everyone

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CHEERS!