Management of procter
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Transcript of Management of procter
MANAGEMENT OF ROCTER & GAMBLE
The play-to-win innovation strategy has helped P&G regain its industry leadership. It needed a different
management and leadership style and approach. The pre-dominant leadership or management style in
P&G is that of participatory, delegating, and empowerment. Management has decentralized decision
making process in such a manner that middle level management most at times do not have to wait for
headquarters approval and funding; in order to embark on certain key innovative projects. Because of
the empowerment given to mid and senior level management within this multinational corporation, it is
much easier for management to customize products and customer services internally. It is abundantly
clear that, the success of this giant corporation can be closely tied to its management and leadership
style.
This is a clear customer focus leadership style of a CEO who was brought in within the corporation to strengthen employee morale and to refocus employees’ attention to providing the needs and wants of customers in this ever changing global market.
P&G management has recognized that in oder to be a leader in the industry, they have to continuously change and innovate from the grass roots. Sometimes, what employees do not understand is the impact of change on their professional and family lives; and it is the responsibility of management to communicate this impact to employees both positive and negative; but mostly, management overemphasizes on the positives and pays little attention on the negative impact.
From When Core Values Are Strategic: How the Business Values of Procter & Gamble Transformed
Leadership at Fortune 500 Companies, by Rick Tocquigny, who chairs the P&G Alumni Network, a high-
powered former P&G execs who went on to lead other top companies:
- Instead of hiring people with fancy resumes, hire people who fit your culture and are teachable.
- Build a strong brand and don't change it.
- Focus all your products on the consumer by studying and listening to customers and innovating
accordingly.
SOURCES:-
http://www.miniworkshopseries.com/highlights/?p=1330
http://www.entrepreneur.com/blog/222853
DISTRIBUTION OG PROCTER & GAMBLE
Procter & Gamble, Cincinnati, OH, is currently analyzing a plan to cut distribution costs by requiring
retailers to buy its goods only in large quantities. According to a report in the Wall Street Journal
(11/8/93), P&G will possibly implement changes in June that would streamline distribution by making
retailers buy products 500 cases at a time or in full truckloads (approximately 1800 cases). This would
cause smaller customers to get their orders at a premium from wholesalers but would eliminate the cost
for P&G to deliver small orders directly to retailers. A P&G spokesperson said only that the company is
examining options to reduce distribution costs.
SOURCES:-
http://www.thefreelibrary.com/P%26G+considering+new+distribution+system.-a014731064
http://www.supplychainquarterly.com/print/scq200703case/