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/