...innovative leader named. Alan Lafley former CEO of P&G, adapted the five discovery skills that were displayed in Dyer, Gregersen, & Christensen ‘s Innovator’s DNA associating, questioning, observing, networking, and experimenting. Lafley applied these skills to create an innovative organization and gave a blueprint for other innovative organizations to follow. Although, leadership is a group experience that includes interpersonal influences or persuasion, is goal directed and can lead others through certain actions or to achieving goals through influence, and has hierarchy within the group that can be formal and well defined or informal and flexible. Leaders assist in establishing goals and reaching those goals through actions, allowing individuals in leadership positions to be effective (Nahavandi, 2006). Analyzes which leadership model and practices would encourage innovation considering the global context of the organization in your chosen case. Leadership research has been and will be completed by many individuals and has led to many theories and models to be developed that have both similarities and differences. Four theories or models of leadership that have been researched and developed include trait theories, transactional leadership, transformational leadership, and situational leadership. The research on each of these leadership models has varied in amount and focus, but mostly the information has helped to develop theories and styles that can be important in...
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...McDonald, who assumed office in July, is on the road promoting P&G's ‘purpose-inspired growth’ strategy of ‘touching and improving more consumers' lives in more parts of the world... more completely’"(Kanter, 2009). In 2007, P&G created a five prong business strategy to assist the company in growth, both financially and organically. Its business model focused on innovation in all parts of the company. Using the core strengths of consumer understanding, scale, innovation, go-to-market capabilities, and brand-building, virtually all the organic sales growth delivered in the past nine years has come from new brands and new or improved product innovation. Not only did the company want to ensure that its products were what the customers desired, they wanted to create a lasting positive effect on the community. The five strategies were as follows: Products: “Delight the customer with sustainable innovations that improve the environmental profile of [the] products” (P&G Strategies, Goals and Progress, 2010). In order to provide the most innovative products to the consumers, P&G invested hundreds of millions of dollars of research and development to conduct more than 15,000 studies per year. Operations: “Improve the environmental profile of P&G’s own operations” (P&G Strategies, Goals and Progress, 2010). P&G’s model is to help the environment by reducing its companies’ environmental footprint. This model required P&G to become more efficient in it...
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...CONNECT & DEVELOP: A NEW APPROACH TO INNOVATION AT PROCTER & GAMBLE Written by Larry Huston (vice-president for innovation and knowledge) and Nabil Sakkab (senior vice-president for corporate R&D) in 2006 PREMISE Procter & Gamble launched a new line of Pringles potato crisps in 2004 with pictures and words—trivia questions, animal facts, jokes—printed on each crisp. They were an immediate hit. In the old days, it might have taken us two years to bring this product to market, and we would have shouldered all of the investment and risk internally. But by applying a fundamentally new approach to innovation, we were able to accelerate Pringles Prints from concept to launch in less than a year and at a fraction of what it would have otherwise cost. Here’s how we did it. Back in 2002, as we were brainstorming about ways to make snacks more novel and fun, someone suggested that we print pop culture images on Pringles. It was a great idea, but how would we do it? One of our researchers thought we should try ink-jetting pictures onto the potato dough, and she used the printer in her office for a test run. (You can imagine her call to our computer help desk.) We quickly realized that every crisp would have to be printed as it came out of frying, when it was still at a high humidity and temperature. And somehow, we’d have to produce sharp images, in multiple colors, even as we printed thousands upon thousands of crisps each minute. Moreover, creating edible dyes...
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...name Procter and Gamble they might think of Ivory Soap, Tide, Pantene, Pampers, or possibly Swiffer. The reason being is that these are a just a few of the everyday household products that have been contributors to the huge success of Procter and Gamble. But when another consumer product company hears the name Procter and Gamble – they think of innovation, leaders on the cutting edge of technology, and one of the front runners in globalization. Procter and Gamble, also known as P&G, has been a key element of American business for over 150 years. In 1837 a small soap and candle company formed in Cincinnati, Ohio. This little business, named after brother-in-laws, Procter and Gamble, has since grown to a global giant with 138,000 employees working in more than 80 countries. (P&G Revolutionizes Collaboration with Cisco, 2008) P&G is the largest manufacturer of consumer products in the world and one of the top 10 largest companies in the world by market capitalization. (Laudon & Laudon, 2012) p.75. Proctor and Gamble realized strong growth from the mid 1940’s to 2000 on both a national and international level. By 1980, the company had a presence in 23 countries world-wide. Their initial global philosophy was described by Walter Lingle, Executive VP “We have decided that the best way to succeed in other...
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...skills of discovery. The leader’s actions will then be assessed and scored on how well they implemented change and shaped a culture that is more innovative in their organization. Supportive Leadership Model There is one model in particular that could be chosen to help increase the progression in the Proctor and Gamble organization. The Transformational leadership model could have been a great assesst in the development of new ideas in Proctor and Gamble. Proctor and Gamble first used the “closed innovation” model and then switched to the “open innovation” model to create growth within their organization. According to Venkatesh & Devi (2006), In 2003 Alan Lafley developed the “Connect and Development” model to generate ideas from scientist, engineers, and enterpauners and individuals outside the company. P&G already had some strong models in place to help with the change within their organization. The global context of the organization looked promising, but the transformational leadership model could have been implemented. According to Doyle (2010), a leader that uses the transformational leadership model “Raises our level of awareness, our level of consciousness about the significance and value of designated outcomes, and ways of reaching them”. According to Fry (2004),...
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...------------------------------------------------- Innovation at proctor and gamble Pritesh Tarte- 11906296 ------------------------------------------------- Innovation at proctor and gamble Pritesh Tarte- 11906296 Assignment 1 Assignment 1 I INDEX 1.Introduction to Proctor & Gamble ……………………..…….……………….3 2. Innovation at Proctor & Gamble……………………………………………...4 3. Connect & Develop Program & Open Innovation……………………………5 4. Voice of Customer……………………………………………………………6 5. Conclusion……………………………………………………………………7 6. References……………………………………………………………………8 1. Introduction to Proctor & Gamble ( P&G) William proctor and James Gamble established Proctor and Gamble in 1837 as a soap and candle company in Ohio USA. P &G has now developed into global manufacturing and marketing company of branded consumer products. Its markets are over 180 countries including America & Asia regions. Its Business is mainly into five segments. * Fabric & home Care * Beauty * Baby care * Family care * Health care & groom. The fabric care and home care compromises bleach and laundry additives, laundry detergents, pet care, dish care, fabric enhances and surface care products. Beauty care consist of cosmetics, deodorants, hair care & skin care, female personnel cleansing products, salon professional product. Baby care and family care contains products such as baby wipes, diapers, pant towels, tissues and toilet...
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...process (e) The importance of teamwork – in particular multidisciplinary teamwork (f) How to find, use and acknowledge information through research and referencing (g) How to write professional business reports Introduction: This assignment is based on the Harvard Business Review (HBR) case study on how Proctor & Gamble (P&G) tripled its innovation success rate and the HBR article on P&G’s Connect and Develop (C&D) program. The assignment also draws upon information in the textbook and other sources. Information from independent research using other sources is also required. Other than the two HBR articles, all sources of information used to answer the assignment questions must be referred to using the Harvard Referencing System as outlined in the Subject Instructions. Assignments should incorporate an in-text reference in the form of (Author, date) to indicate the source of each item of information. A complete reference list is required at the end of the assignment. Information obtained from the case study does not need to be referenced unless a direct quote is used or a specific diagram is referred to – in those instances the reference should be in the form (Case:xx) where xx is the relevant page number. The case study is: Bruce Brown and Scott D. Anthony, “How P&G Tripled Its Innovation...
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...having difficulties until we read the case study. Like many people and companies P&G had been winning for soo long that they got complacent. The time, thought, and energy was no longer being invested into the innovation of the company. There were “ideas” that were thrown into production with hopes of them working. However, when things started to go wrong the leaders at P&G started to do their research and really dig into what changes could and needed to be made. This first step is what separates this company from many others and what has enabled them to remain successful to this day. What Encourages Innovation There were two primary leadership styles that were present at Proctor & Gamble as a result of Lefley stepping in as the CEO. Both transformational and contingency leadership were present and needed to enable the company to evolve. The transformation leadership was exhibited when we look at the different patterns of leadership that were present. Prior to Lafley taking over as CEO, P&G had lost the largest amount of profits in their history in the shortest amount of time. The company had moral issues and an overall downward spiral on their hands. However, all of this quickly changed once Lafley stepped on the scene. Lafley declared, “innovation is the central job of every leader- business unit managers, functional leaders, and the CEO (Dyer et al., 2011 p. 27)”. He was able to transform P&G based on his desire to turn the company into a “learning organization”. Transformational...
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...entrants There are many different barriers in the FMCG industry that a new entrant would have to overcome to enter. P&G has a huge competitive advantage over new entrants due to following : Established economies of scale: P&G has huge production capabilities and which has resulted in advantage over new entrants as it will be difficult for the new entrant to compete on cost, quantity produced and price. P&G also has the first mover advantage. Distribution network: Access to existing distribution channels is a substantial barrier that new entrants have to face. Supermarkets and other retail stores have a limited amount of shelf space available for consumer goods. It is difficult for new entrants to fight for these shelf spaces as the brand recognition, consumer relationship of P&G makes it difficult for new entrants to get shelf spaces. Legal barriers: Legal barriers can also make it hard for new entrants to enter the personal products industry. A new entrant has to overcome many regulations, laws, patents, and copyrights that they have to abide by when they are entering into an industry. It is a research oriented industry and hence has lot of copyright and legal issues. This almost eliminates the threat of a new entrant in the personal products industry. Power of buyers Although P&G is an extremely large company, its future is dependent on its buyers. P&G is heavily dependent on Wal-Mart and its affiliates for generating a major part of its revenue. Sales to Wal-Mart and...
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...is by choosing to embrace change, but wanting change is not enough. To stay competitive, a business must foresee change and adapt in a way that maintains profit, customers, and shareholder loyalty. Ways this will be achieved is through a carefully planned and implemented strategic plan. The strategic plan and other considerations for Procter and Gamble (P&G) will be outlined and detailed throughout this discussion. Importance of Proctor and Gamble having Strategic Plan For a company to be successful there needs to be a set of plans to achieve success. Strategic planning is geared toward specific results that a company needs to achieve and establishes a specific direction of action for goal attainment. Good strategic plans ensure that different departments of Proctor and Gamble work together to align themselves with the goals set by the business. Preparing a strategic plan is not a difficult task, it takes thought from the top all the way down to the employees, especially feedback from consumers concerning the company. Thought out strategic plan will span two to five years and details how the company will develop and succeed over that planning period. Procter and Gamble have created four divisions within the company to ensure each department remains competitive and relevant with a level of autonomy. The four divisions are as follows; beauty, health and grooming, fabric and homecare, and baby, feminine and family care. The company was so massive; they needed to operate...
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...In P&G’s ‘connect and develop’ process, which requires connecting with ‘external’ sources then ‘develop’ products using your company’s resources to yield new products is a flawed system. The originating source for motivating and driving innovation should originate with the consumer. As the case studies reaffirms: innovation drives growth. Growth at a company cannot be assured if desirable products aren’t produced which are desired for purchase and consumption. Pringle Prints happened to be a successful idea; however, if the company does not reach out of its comfort zone in terms of trying to achieve ideas for products that will take, these ideas for implemented products can happen in vacuum. The Pringle Prints printing technology offered a different take on the average potato chip; its appeal in making ordinary food ‘fun’ and unique was bound to resonate with children and adults alike. Its success in sales only proved this assumption. Not knowing enough about the success in simply trying to reach individual customers directly and referring to advertising agencies to see what new category of products are emerging is a smart idea; in essence, they are piggy backing on the findings of advertising agencies who make it their business to understand what will resonate with the individual consumer. The ‘Eureka Catalog’ name implies that this is catalog that allows the sharing of ideas, allowing room for brainstorming within the company; however, this is not the purpose of...
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...P&G's Logistics Revolution: Co-creating Value Confronting the challenges of rising supplier costs, growing retailer prowess, intensifying competition, fickle consumer tastes and preferences in the consumer packaged goods industry, P&G gained a distinctive competitive edge through a strengthened focus on supply network efficiencies. By making consumer the center of all its core operations, P&G initiated Customer Driven Supply Network (CDSN) that starts from customer choice at the store shelf and works backwards towards product manufacture; a paradigm shift from forecast-based supply chain to the one based on realtime demand. P&G's relationship with Wal-Mart exemplifies the success of CDSN but given the complexities of P&G's size and scale, analysts remain skeptical about the success of P&G–Wal-Mart's pilot study with other retailers.Analysts are also dubious of the scope for success in exporting the model to developing markets wherein the industry dynamics are extremely contradictory. Consumer Packaged Goods Industry – The Changing Dynamics | | During the early 20th century, consumer packaged goods evolved to be a highly competitive industry with a large number of players vying for a greater market share . Manufacturers, with their market prowess, focused extensively on reinforcing their strong brands and improving productivity. They established their dominance either by restructuring their brand portfolios throughmergers and acquisitions or focusing...
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...The P&G Culture Interviews with Colleen E. Jay, President-Global Retail Hair Care & Color; Mary Lynn Ferguson-McHugh, Group President-Western Europe and Global Discounter & Pharmacy Channels; and Teri L. List-Stoll, Senior Vice President and Treasurer, Procter & Gamble COMPANY BRIEF Employing approximately 129,000 people working in approximately 80 countries worldwide, Procter & Gamble (www.pg.com; P&G) has one of the strongest portfolios of trusted, quality leadership brands, including Always®, Bounty®, Dawn®, Pringles®, Downy®, Iams®, Duracell®, and Braun®. An Interview with Colleen E. Jay Mary Lynn Ferguson-McHugh Teri L. List-Stoll EDITORS’ NOTE Colleen Jay joined Colleen E. Jay P&G in July of 1985 as Brand Assistant, Food & Household Cleaning Products, Canada. For hair care specifically, our focus will From there, she assumed various roles includ- be to continue to deliver winning product ining Assistant Brand Manager, Brand Manager, novations for all major consumer hair needs, Marketing Manager, Marketing Director, General which will win with consumers in every market Manager, and Vice President, and undertook the around the world. role of President of Global Female Beauty in How do you differentiate P&G’s Global 2010 before assuming her current post. Retail Hair Care & Color business from its competitors? Would you provide an overview of the We have built our hair care business by Global Retail Hair Care & Color business for delivering superior products and breakthrough...
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...invest in technology and forget. In this era of rapidly changing market needs and increasing use of technology, it is extremely significant and almost mandatory for firms to formulate a strong socio-technical network involving both technical and non-technical artefacts and structured around the organizational business strategies in order to attain set goals. Corporations all across the world especially Multi National Corporations (MNCs) which work twenty four hours round the clock and possess some of the best brains of the world, innovatively use technology as part of their business and operational processes. Similarly, this piece of study attempts to explore the way, one of the world’s best consumer goods manufacturer i.e. Procter & Gamble (P&G) uses the power of technology innovatively as part of its business strategies for achieving long term success and sustainable profitability....
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...Procter & Gamble Co. (P&G) P&G – Procter & Gamble is a consumer product company founded and headquartered at Cincinnati, Ohio in 1837 by Mr. William Procter and Mr. James Gamble. It is now led by Mr. Alan.G.Lafley whom rejoins the company in 2010. P&G success was contributed to the heart of its business model – Innovation; and that is not just for newly invented product or service, it was for the goal of recreating needs for the improvement of consumers’ living. And it is a very long culture started where the roots started from the founders; whom are soap and candles makers. The first innovative product – Ivory; started in 1879, by James Norris Gamble who is the son of the founder and a trained chemist. Ivory at then was an inexpensive white soap equal to high-quality, imported Castile soap. It was introduced nationwide through a weekly newspaper. Today, P&G has its presence across 180 countries and a team of 121,000 employees. Its business operations spanned across various segments like Beauty, Grooming, Health Care, Fabric Care & Home Care and Baby Care & Family Care; it is the house to many of the world leading brands like Head & Shoulder, Gillette, Oral B, Fabrics, Pampers and many more. Touching more than 4 billion consumers worldwide every day, the company sales volume as of fiscal year ending June 30, 2013 was more than 80 billion in sales. The Strategy – Unique Value According to Michael Porter, He argued that organizations...
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