P&G Lafley Essay

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PROCTER & GAMBLE 1. Lafley claims that his key objectives are to make the firm more agile and flexible. Come up with specific steps that Lafley has taken to push the firm in this direction. When A.G. Lafley took control of Procter & Gamble, everyone looked to him for answers. But the truth was he didn’t know how to get the faltering P&G back on track but then he manages to turn P&G into an operations and innovation powerhouse. Lafley helped guide P&G out of what we consider to be the firm's darkest hour in mid-2000, when the company was caught in an organizational transformation that had gone off the rails. He helped refocus the firm on what it knows best--the consumer--and on what it does best: build great brands and innovative products. Determined to create a more outwardly focused and flexible company, Lafley broke down the walls between management and the employees, and made drastic changes in the organizational structure and workforce of the company. He identified a serious slump in baby-care product sales as evidence of failure to delight consumers. The people managing this category—manufacturing leaders—didn’t have a relationship with the consumer. So Lafley decided to find a leader who could connect with this stakeholder group, regardless of technical know-how. He chose someone with no experience in baby care but a desire to understand customers’ needs. He also understood the power of a consistent message. And his mantra for nine years: "Theconsumer is boss." He also said that P&G, to win with powerful discounters, must slash costs and reinvest savings in marketing and product design. Focusing on those things, Lafley became the best organic-growth guy in the consumer-products industry. He drove innovation by reaching outside for ideas -- an alien concept for promote-from-within P&G. Shamelessly, he used hokey terms to

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