VAULT EMPLOYERPROFILE: PROCTER & GAMBLE … · executives who manage global product units, such as...

BY THE STAFF OF VAULT

© 2002 Vault Inc.

VAULT EMPLOYER PROFILE:

PROCTER &GAMBLE

Copyright © 2002 by Vault Inc. All rights reserved.

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ISBN 1–58131–221-0

Printed in the United States of America

Visit Vault at www.vault.com for insider company profiles, expert advice,

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Procter & Gamble

INTRODUCTION 1

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Procter & Gamble at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Procter & Gamble at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

THE SCOOP 3

History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

CEO’s Bio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Key Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Business Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Major Products/Brands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

VAULT NEWSWIRE 19

OUR SURVEY SAYS 23

Table of Contents

GETTING HIRED 31

Overview of the Hiring Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

To Apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

Preparing for the Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33

Questions to Expect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

Questions to Ask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36

Perks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37

ON THE JOB 39

A Day in the Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39

Job Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

Department Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42

Career Paths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44

Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46

FINAL ANALYSIS 47

RECOMMENDED READING 49

Overview

What would the world be like without Procter & Gamble? No Ivory soap, no

Oil of Olay, no Jif peanut butter, no Tide detergent, no Crest toothpaste.

Though there would probably still be soap, skin conditioner, peanut butter

and toothpaste, we’d be bereft of the brands that have earned our love and

loyalty over the years. And for Procter & Gamble, loyalty is what it’s all

about. P&G is a company that trades on loyalty, thrives on loyal customers

and strives to put out products that merit that devotion.

Procter & Gamble is a gargantuan $40-billion-a-year company, but it is 25

percent owned by “the little people” – its former or current employees. Even

workers in the manufacturing plants often own hundreds of thousands of

dollars in company stock, thanks to a lucrative profit-sharing plan. What does

the company get for its generosity? It ensures top-of-the line employees (who

could be making more in base salary elsewhere) will remain with the

company for their entire careers.

But the company knows that, like the nuclear family, brand loyalty is

disintegrating, and bang-for-your-buck is king. With fewer faithful customers

and declining demand for its products in many areas of the world, P&G is

having trouble keeping the faith with its employees. To keep its prices

competitive and to meet its ambitious goals for sales, it has been

“streamlining” its operations and conducting serious overhauls of its

corporate management structure.

Introduction

Procter & Gamble

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Headquarters

One Procter & Gamble Plaza

Cincinnati, OH 45202

Phone: (513) 983-1100

Fax: (513) 983-9369

THE STATS

Employer type: Public company

Stock listing: NYSE (Symbol: PG)

Employees: 106,000 (2002)

Revenues: $40.24 billion (2002)

MAJOR BUSINESS UNITS

Baby, Feminine and Family Care

Fabric and Home Care

Beauty Care

Health Care

Food & Beverage

UPPERS

� Super-prestigious company

� Lucrative profit-sharing plan

� Emphasis on ongoing training

DOWNERS

� Massive bureaucracy

� Middling pay

� Up-or-out policy in Brand

Management division

Procter & Gamble at a Glance

© 2002 Vault Inc.2

History

For the past decade and a half, Procter & Gamble has found itself battling

rumors of a connection to black magic: that its Moon and Stars logo is a

satanic symbol (needless to say, it’s not) and that its president once discussed

Satanism on the talk show Donahue. In turn, the company, which has a

reputation for being secretive, sued Amway and some of its high-level

distributors for allegedly circulating the rumors. (Courts found the claim

baseless in 2000, and ordered P&G to pay Amway’s legal costs.) But the real

story of Procter & Gamble is hardly unholy – just simple good business.

The P&G story began when William Procter and James Gamble arrived in

America with their eyes set on the wide-open West. But both Procter, a candle

maker from England, and Gamble, who apprenticed himself to a soap maker

after arriving from Ireland, ended up settling in Cincinnati, where they met

after marrying sisters. The father of their wives convinced them to become

business partners. On August 22, 1837, Procter & Gamble each pledged

$3,596.47 toward a partnership to produce and sell soap and candles.

By 1859, as America was sliding toward civil war, Procter & Gamble, with

80 employees, reached $1 million in sales. During the Civil War, the company

supplied soap and candles to the Union armies, helping to build its reputation

outside of Ohio. And then, in 1879, the second generation of Procters and

Gambles made a breakthrough. Chemist James Norris Gamble developed an

inexpensive, buoyant white soap; Harley Procter read the words “out of ivory

palaces” in the Bible one Sunday morning in church. Ivory Soap – 99 and

44/100ths percent pure – floated into the market.

The 20th century at Procter & Gamble sounds like a commercial for a

compilation of consumer goods’ greatest hits. The company’s research

centers have churned out a remarkable string of successful innovations:

Crisco, the first all-vegetable shortening (1911); Tide, the “washing miracle”

that was the nation’s first synthetic laundry detergent (1946); Crest, the first

toothpaste with fluoride clinically proven to fight cavities (1955); and

Pampers, the first mass-produced disposable diaper (1961). More recently,

the company has introduced Pantene Pro-V (1992), the world’s leading

shampoo, and in 1996 received Food and Drug Administration approval for

the use of Olestra, a calorie-free fat replacement.

Acquisitions have added to the P&G empire, often providing the company

with leverage in either an international market or a new product area. P&G

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bought Duncan Hines cake mixes in 1956, Charmin Paper Mills in 1957 and

Folgers coffee in 1963, all of which represented the company’s first foray into

the products’ respective areas. The additions of Noxell in 1989 and Max

Factor in 1991 made P&G the country’s largest cosmetics company. P&G

began manufacturing in Japan in 1973 after acquiring the Nippon Sunhome

company and opened operations in Eastern Europe in 1991 after buying

Rakona in then-Czechoslovakia.

In the never-ending search for growth in mature markets, the company has

continued to find it expedient to buy powerful brands. Examples include Iams

pet foods in 1999 and Clairol hair care products (a $5 billion purchase) in

November 2001. The new management isn’t afraid to drop or sell poor

performers either; Jif peanut butter and Crisco vegetable shortening were

spun off to shareholders in May 2001 for $150 million; the brands were then

sold to J.M. Smucker for $900 million. Failed brands like Physique premium

shampoo (the company’s first new shampoo product in 20 years), Fit fruit

wash and Olay Cosmetics have vanished from store shelves.

Procter & Gamble has also been a major player in the history of advertising

and marketing techniques. The famous Ivory Soap campaign of the late 19th

century was one of the first to advertise directly to the consumer. In 1923,

Crisco sponsored cooking shows on the radio; in 1932, P&G began

sponsoring daytime radio dramas. The company aired its first TV

commercial during the first televised major league baseball game in 1939.

And long before Peoria, Ill. became popular among politicians gauging the

pulse of America, P&G knew about it – Pampers were test-marketed there in

the early 1960s. Today, the company is turning to public relations spin doctors

to help convince the public that its fat substitute, Olestra, is still the next great

thing. The firm certainly has the resources – with a $3.7 billion marketing

budget, Procter & Gamble is the world’s biggest advertiser. But should the

company prove unable to make Olestra popular in anything other than

Pringles potato crisps, P&G has a trio of fast-growing hits with the Swiffer

floor sweeper, the Crest SpinBrush children’s electric toothbrush and Crest

White Strips tooth whitener.

On top of the whirl

Procter & Gamble is the undisputed champion of the consumer goods

industry. With $40.24 billion in annual sales, it easily outpaces competitors

such as Avon ($6 billion), Colgate-Palmolive ($9.4 billion) and Kimberly-

Clark ($14.5 billion). Like most mega-corporations, Procter & Gamble made

© 2002 Vault Inc.4

Procter & Gamble

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some serious hay while the sun shone in 1998, delivering its shareholders

record-breaking net earnings of $4.35 billion, or $3.59 per share.

The company, however, is far from satisfied. In 1996, P&G announced a goal

of reaching $70 billion in sales by 2006, an almost inconceivable doubling of

sales in a decade – to realize such lofty ambitions, the company would have

to increase sales by 7 percent or more each year. Alas, the company fell short

initially, posting increases in net sales of 1 percent in 1996 and 1997. Newly

appointed CEO A.G. Lafley’s goals are nearly as ambitious – 4-6 percent

annual sales increases coupled with double-digit core-earnings-per-share

growth. And in 2001, the company managed to achieve them.

Restructuring: Think globally, act locally

The company has taken serious steps to counter its shortfalls of the late

1990s, notably through corporate restructuring. In September 1998, P&G

announced that it would eliminate the company’s past practice of dividing

business into four regional groups. Instead, the focus shifted to marketing

products on a global scale. To do so, profit responsibility rests in the hands of

executives who manage global product units, such as baby care, beauty, and

home products, among others. Durk I. Jager, then the company’s “hard-

charging” chief operating officer, led the way in the reorganization. Jager was

promoted to chief executive officer in January 1999, joining John E. Pepper

to concurrently hold the position until Pepper’s retirement in September of

that year.

In 1999, P&G announced the creation of eight “market development

organizations” to, in the words of the annual report, “provide deeper

knowledge of local consumers and stronger partnerships with our customers.”

As examples of the kinds of problems these groups will address, The Wall

Street Journal offers currency troubles in Asia and supermarket retailing in

Latin America. These groups are not charged with profit-and-loss

responsibility.

P&G also streamlined its corporate staff, a change that evoked the 13,000

layoffs and multiple plant closings that took place from 1993 to 1997. The

company acknowledged that some jobs would be lost at the time, but

distinguished the measures from earlier ones. “It’s not a cost-cutting effort,”

spokesperson Simon Denegri told The Wall Street Journal, “but a global

reorganization of our structure and culture to accelerate growth and meet

business goals.” Another streamlining took place when Lafley took over in

2000, to the tune of 9,600 jobs. This time, Fortune magazine characterized



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the layoffs as a combination of expense cutting and trimming of unprofitable

ventures.

Discussing the reorganization, Pepper commented to The Wall Street Journal:

“I saw it being the most important thing we’ve done in the company, if not

ever, certainly for generations. In an organizational change that was designed

to get real clarity around decision making�that also argued for very clearly

one person at the helm.”

In the end, however, it appears that one person will be Lafley. Jager left the

company suddenly in mid-2001, after just 17 months in the captain’s chair.

His strategies – unifying brand names worldwide, scattershot launches of new

products in hopes of finding the next big seller – had not been successful, and

sales of even the best brands were stagnant. Lafley, a quiet and unassuming

figure compared to so many spotlight-hogging CEOs, took the company in

hand when it was losing focus. Focus, he saw, was the key: Identify P&G’s

core brands (the company currently has 12 that bring in $1 billion or more

annually) and get as much profit as possible out of them.

New products: looking for the magic bullet

Beyond tinkering with corporate structure, P&G has also sought to bring back

the good old days when it created whole new product categories, such as

disposable diapers with Pampers and fabric softener with Downy. If

successful, such moves can bring in billions, although one analyst told The

Wall Street Journal that doing so is “like finding a needle in a hay stack.” For

instance, the soap giant has found that its $11.6 billion Fabric and Home Care

category (the company’s second-largest revenue generator) is a mature area;

the unit grew just 1 percent in 2002.

Febreze on its way

Procter & Gamble, the diligent consumer products giant, is looking for an

entire new home cleansing category. The company is now targeting not the

$4 billion laundry market (of which the company holds a 51 percent share),

but the entire $10 billion clothing and fabric cleansing market. P&G hopes

that the “fabric refresher” category could jump to sales of $1 billion in the

next five to 10 years. One promising attempt has been the testing of Febreze,

a spray used to eliminate odors. After a disappointing market test, the

company nearly canned further testing of Febreze until Kerry Clark, then

president of the North America laundry products business, noticed that

Febreze had a knot of huge fans. Upon interviewing the Febreze enthusiasts,

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P&G learned that they were not using Febreze on clothing, as the company

had intended, but on carpets, curtains and pets. The company also discovered

that some consumers believed that Febreze, originally packaged in a kitchen-

counter like bottle, would be too harsh on fabrics, and switched the packaging

to a smaller, friendlier bottle. P&G brand marketing geniuses also redesigned

the package label to emphasize the safety of using Febreze and to

communicate a wider variety of uses for the freshener. But P&G hasn’t

ignored its core laundry products – it has tweaked Tide with a “mountain

spring” scent, after discovering that some consumers preferred a “high

impact” laundry smell.

Boosting pharmaceuticals

P&G is also trying to muscle its way into the lucrative pharmaceutical

industry. Even with popular items such as Pepto-Bismol and Nyquil, the

company’s $500 million business ranks well below its competitors in

worldwide drug and other health-care sales. In April 1998, P&G scored a

victory when the FDA approved risedronate, its drug for the treatment of

Paget’s bone disease. The disease, which weakens bones, afflicts around 3

percent of people over 55. P&G anticipates that the product could bring the

company as much as $1 billion in sales. With this figure in mind, the company

has struck a co-marketing agreement with Aventis Pharma AG. By March

2000, Actonel (risedronate’s brand name) had received approval in several

countries for the treatment of post-menopausal osteoporosis. Approvals

continue to roll in (Japan approved the drug in January 2002), and studies

completed late in 2002 have shown that risedronate increases bone density

and reduces the risk of vertebral and other fractures in post-menopausal

women by 70 percent.

Running with Olean

One not-so-bright spot has been olestra, a fat-substitute that P&G markets

under the name of Olean. Olestra, a soy-based product used largely to

produce fat-free snack foods, has suffered numerous setbacks, including loud

protest from consumer groups, condemnation by Harvard nutritionists, and an

FDA labeling program that requires Olestra products to bear the warning that

olestra may cause “abdominal cramping and loose stools.” The FDA has

declared olestra safe for consumption, although the labeling requirements

seem to have scared many consumers off. P&G, meanwhile, has promoted

olestra through a line extension of fat-free Pringles, emphasizing that the

potato snacks are as tasty with olestra as without. So far, P&G seems to have



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a hit with fatless Pringles; volume of Pringles sales has risen steadily since

August 1997. However, the company appears willing to cut its losses; in

February 2002, P&G sold its Cincinnati olestra plant to Twin Rivers

Technologies. Twin Rivers will continue to operate the plant and supply

olestra to P&G.

International expansion

North America is P&G’s largest market, with $21.2 billion of the company’s

2002 sales coming from the U.S. and Canada. And P&G continues to grow in

its home: unit volume increased 7 percent in fiscal 2002. Procter & Gamble

execs like to point out that while half their business comes from North

America, only 5 percent of the world’s population lives there. The company

expects and hopes for its largest growth in coming years, percentage-wise, to

come in emerging markets, especially Eastern Europe, China and the

southern cone of South America. In 1993, for the first time in the company’s

history, more than half of sales came from outside of the U.S.

P&G’s increasingly global strategies take many forms. In China, for example,

P&G has taken the uncharacteristic step of running ads that feature no

particular product, but rather develop the company’s overall image.

“Consumers do care about which makes the product,” P&G’s Yvonne Pei

commented to The Wall Street Journal, “if the company has a good image,

they trust the product.” Apparently, the song that accompanies the

advertisements takes up the refrain “the dreams of the last generation are the

fruit of the next generation.”

Meanwhile in Latin America, P&G is concentrating less on dreams and fruit,

and more on lobbying against unfair business practices. P&G, whose business

in Latin America represents only about 6 percent of its global totals, has had

to play catch-up to rivals like Colgate-Palmolive and Unilever that have

snapped up significant market shares. To this end, P&G has aggressively

pursued the acquisition of international companies, most recently adding

three laundry detergent brands from Brazil-based Bombril S.A. in 1996.

Acquiring companies hasn’t been its only strategy, however. P&G has also

taken advantage of the tightening anti-trust law climate in many Latin

American countries. For example, The Wall Street Journal reports that P&G

helped convince the Conselho Administrativo de Defesa Economica, Brazil’s

anti-monopoly commission, to block Colgate’s acquisition of a local brand.

In Argentina, P&G contacted regulators to accuse Unilever of sabotaging

P&G’s release of its laundry detergent called Ariel. The company alleges that

Unilever has ties to Ariel del Plata SA, a local toilet seat manufacturer that

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introduced television advertisements featuring its distinguished products

along with close ups of derrieres and a voice-over that repeats “Ariel, Ariel,

Ariel.” On a more positive note, P&G entered an alliance in January 2002

with TechnoServe, a non-profit organization devoted to building businesses

in developing countries. P&G has provided $1.5 million to help small-scale

coffee growers in Latin America.

P&G�s media agenda

P&G has always led the field in the use of new forms of media for marketing.

The company first grasped the intimacy of radio, and later applied the same

techniques as television emerged, creating whole genres in support of

products.

The Internet, however, seems to have stumped the world’s largest advertiser

– only 0.4 percent of P&G’s total advertising budget is devoted to online

endeavors. To overcome its uncertainty, in August 1998, P&G invited 400

executives, some from competitors, to a two-day conference on how to use

the Internet. The conference covered such issues as the dearth of slogans

created on the new medium, and the general failure of banner advertisements.

Possible solutions included pop-ups and interstitial ads (new concepts at the

time, but they appear to have caught on). The problem, of course, is that many

of Procter’s products are “commodity products,” fairly mundane products

like toilet paper and cooking oil, which need the magic of a widespread

marketing campaign to differentiate them. While Internet advertising is a

superb medium for direct-to-consumer marketing, it is a poor way to build an

overarching brand image – something Procter & Gamble needs to do with its

products.

As such, Procter & Gamble appears to have pulled back from the Internet as

an advertising medium, concentrating instead on advertising through

association. In July 2002, P&G teamed with G4, a cable TV network devoted

to computer and video gaming of all stripes, to launch Cheat! Pringles

Gamers Guide, a half-hour weekly show offering tips for gamers to improve

their playing performance.

Back in TV land, P&G has also teamed up with its cohorts to address their

advertising role in the face of the changing content of today’s programming.

The coalition, known as the Forum for Responsible Advertising, met recently

in New York, and included P&G, Johnson & Johnson, The Coca-Cola Co.,

Sears Roebuck & Co. and Ford Motor Co. P&G spokesperson Gretchen

Briscoe articulated the Forum’s goals in comments to The Wall Street

Journal. “We want access to high-quality, family friendly programming that



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attracts a mass audience,” she said, adding: “It’s going to take a collective

industry effort.”

Using marketing strategies to improve the

gender balance

In recent years, P&G has been recognized for its commitment to women in

the workplace in such publications as Fortune, Working Mother, Working

Woman, The Wall Street Journal and others. It wasn’t always this way. As

recently as 1992, only 5 percent of the companies’ vice presidents and general

managers in advertising and brand management – the mainstay of Procter &

Gamble’s business – were women. John Pepper himself admitted to The Wall

Street Journal, “There have been meetings where you look around at 30

people in the room, and they’re all men.” A study conducted in 1991 revealed

to the company that two-thirds of good performers who left the company

were women and, contrary to company assumptions, were not leaving for

family reasons, but rather to take jobs elsewhere. To stop the talent flight,

P&G applied some of its own marketing expertise to the problem, introducing

“products” such as mentoring programs and benefits packages designed to

keep women at the company. To promote these products, the company

launched internal “ad campaigns,” featuring videos in which senior P&G

women explain the advantages of staying at the company. For now, the effort

seems to be paying off. The number of women general managers, for

example, had risen to 31 percent as of September 1998.

In a May 2001 address to the company, CEO Lafley noted the improvements

the company had made in gender balance: “We now have nearly 300 women

at the director and associate director levels, which ensure us a strong talent

stream to fill future officer-level positions. There are now 40 women at the

vice-president or general manager level in our company. And today, four of

our corporate officers are women. This represents real progress. In 1990,

there were no women corporate officers at P&G, and only 6 at the VP/GM

level.” On the other hand, the heads of the company are still overwhelmingly

male: just two of 18 directors and three of 36 top executives listed in the P&G

2002 annual report are women.

© 2002 Vault Inc.10

CEO�s Bio

A.G. Lafley: Chairman of the Board, President

and Chief Executive

As would be expected of a company that stresses loyalty and internal

promotion, Procter & Gamble has a veteran employee at its head. New leader

Alan G. (A.G.) Lafley, a member of the company since 1977, took over the

president and chief-exec roles in 2000 from Durk Jager, who himself replaced

John E. Pepper in 1999. Lafley was elected chairman in April 2002,

completing the corporate Triple Crown after Pepper stepped down from the

board.

Procter & Gamble has found new life under Lafley’s leadership; since his

ascension, P&G net sales have climbed 3 percent (4 percent before figuring

in unfavorable exchange rates), and earnings growth in the individual

business units is up, ranging from 11 percent (Fabric and Home Care) to 34

percent (Health Care). The company’s stock price has climbed 40 percent

since Lafley assumed command.

A native of Keene, N.H., Lafley is P&G’s 11th president and CEO. A graduate

of Hamilton College with a degree in History, he holds a Harvard MBA as

well. After a 5-year term with the U.S. Navy, he joined P&G in 1977 in the

Marketing department. He worked his way up through several positions in

P&G’s laundry and cleaning business before being named group vice

president in 1992.

In 1995, Lafley became the executive vice president for Asia. In 1999, he was

named president of P&G’s global Beauty Care business and of North

American market development. North America business achieved record net

sales during his tenure. He implemented innovations in beauty products and

marketing, bringing fresh growth to P&G’s Hair Care business, especially

billion-dollar brand Pantene.

Key Officers

Bruce L. Byrnes: Vice Chairman, President of Global Beauty & Feminine

Care and Global Health Care

Organization

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Procter & Gamble

Organization

R. Kerry Clark: Vice Chairman, President of Global Market Development

& Business Operations

Richard L. Antoine: Global Human Resources Officer

G. Gilbert Cloyd: Chief Technology Officer

Clayton C. Daley Jr.: Chief Financial Officer

Stephen N. David: Chief Information Officer, Business-to-Business Officer

James J. Johnson: Chief Legal Officer (General Counsel)

Ownership

Procter & Gamble is a publicly traded company on the New York Stock

Exchange (its stock ticker symbol is PG). A partnership for its first 53 years,

it incorporated in 1890. Current and retired P&G employees own about 25

percent of the company.

Business Units

Baby, Feminine and Family Care

This euphemistic segment is where customers turn for cleaning up after

biology. Brands include Pampers and Luvs diapers, Puffs facial tissue,

Charmin toilet tissue, Bounty paper towels, Tampax tampons and the Always

line of feminine hygiene products. The unit’s sales in 2002 totaled $11.9

billion, making it the company’s largest segment.

Fabric and Home Care

This former company leader has fallen to the No. 2 spot with $11.6 billion in

sales. Major products include the laundry detergents Tide, Cheer, Bold and

Era; fabric softeners Bounce and Downy; Dryel home dry-cleaning care; Joy,

Cascade and Ivory dish soaps; Mr. Clean and Swiffer floor care; and Febreze

fabric deodorizer.

Beauty Care

The products that started it all. Since introducing Ivory soap in 1879, Procter

& Gamble has been the nation’s soap leader. By 1890, the company was


Procter & Gamble

Organization

selling more than 30 different types of soap. These days, P&G also makes

Head & Shoulders shampoo; Noxzema and Oil of Olay skin care products;

Max Factor cosmetics; Clairol and Pantene hair products; and Secret

deodorant.

Health Care

Favorite brand names include Crest toothpaste, Metamucil, Fixodent denture

adhesive, Pur water filters, Vicks cold medicines (including NyQuil) and

Pepto Bismol antacid. Some may find it entertaining that this unit is also

responsible for Iams and Eukanuba pet food and products. P&G has formed

alliances with Aventis SA, Glaxo-SmithKline and Tarrytown, N.Y.-based

Regneron Pharmaceuticals, Inc. to produce prescription drugs as well.

Food & Beverage

Currently the smallest unit in P&G, with $3.8 billion in 2002 sales. Major

products include Folgers coffee, Hawaiian Punch, Pringles potato chips and

Sunny Delight.

Major Product/Brands

Baby, Feminine and Family Care Products

• Pampers

• Luvs

• Charmin

• Bounty

• Puffs

• Alldays

• Always

• Tampax



Procter & Gamble

Organization

Fabric and Home Care Products

• Tide

• Downy

• Gain

• Cascade

• Cheer

• Bold

• Swiffer

• Bounce

• Dash

• Dawn

• Joy

• Febreze

• Era

• Dreft

• Mr. Clean

• Ivory Dish

Beauty Care Products

• Pantene

• Olay

• Head & Shoulders

• Cover Girl

• Clairol

• Max Factor

• Hugo Boss

• Secret

• Zest

• Safeguard

• Vidal Sassoon

• Old Spice

• Pert

• Ivory

• Sure

• Camay

• Laura Biagiotti

• Noxzema

• Giorgio


Procter & Gamble

Organization

Health Care Products

• Iams

• Eukanuba

• Crest

• Asacol

• Actonel

• Vicks

• Vicks NyQuil

• Metamucil

• Fixodent

• Scope

• Pepto-Bismol

• Didronel

• Macrobid

• PUR

• ThermaCare

• Dantrium

Food & Beverage Products

• Folgers

• Hawaiian Punch

• Pringles

• Sunny Delight

• Millstone

• Torengos

Locations

United States

Cincinnati, Ohio (World Headquarters): About 15,000 of P&G’s 102,000

worldwide employees work in Cincinnati. In addition to its downtown

corporate offices, P&G facilities in the Cincinnati area include three

manufacturing plants and five research centers.

Baltimore, Md. (Headquarters for Cosmetics & Fragrances division): This

location includes corporate offices, a plant and a research center.

Norwich, N.Y.: This location includes a research center.



Procter & Gamble

Organization

Procter & Gamble has about 20 sales offices and manufacturing plants around

the country.

International

Procter & Gamble has on-the-ground operations in about 70 countries. A little

more than half of the company’s employees work overseas.

In Latin America

• Argentina

• Brazil

• Chile

• Colombia

• Costa Rica

• Dominican Republic

• El Salvador

• Guatemala

• Jamaica

• Mexico

• Peru

• Puerto Rico

• Venezuela

In Europe, the Middle East, and Africa

• Austria

• Belgium

• Czechoslovakia

• Egypt

• Finland

• France

• Germany

• Greece

• Hungary

• Ireland

• Italy

• Kenya

• Lebanon

• Morocco

• Netherlands

• Nigeria


Procter & Gamble

Organization

• Poland

• Portugal

• Saudi Arabia

• Spain

• Sweden

• Switzerland

• Turkey

• United Kingdom

In Asia

• Australia

• China

• Hong Kong

• India

• Indonesia

• Japan

• Korea

• Malaysia

• New Zealand

• Pakistan

• Philippines

• Russia

• Singapore

• Taiwan

• Thailand



VAULT CAREER GUIDESGET THE INSIDE SCOOP ON TOP JOBS

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� SMARTMONEY MAGAZINE

�Cliffs Notesfor Careers�� FORBES MAGAZINE

November 2002: Glad to make your

acquaintance

Procter & Gamble and Clorox Co. announced an agreement in principle for a

joint venture in food wraps and trash bags under the Clorox’s Glad and

GladWare trademarks. Initial arrangements have P&G owning a 10 percent

stake in the venture, with an option to purchase an additional 10 percent.

November 2002: Whodunit?

Procter & Gamble expanded its Through-Air Drying patent infringement suit

this month to include Potlatch, another paper products competitor. As with its

suit against Georgia-Pacific, P&G claims that Potlatch hired technical experts

away from the company to exploit their knowledge of trade secrets.

September 2002: The quicker patent picker-

upper

P&G sued rival Georgia-Pacific for allegedly stealing a manufacturing patent

for paper towels. According to P&G, Georgia-Pacific hired a technical expert

away from the company in July and used his knowledge of the Through-Air

Drying process, used to make P&G products Bounty and Charmin, to

duplicate his efforts for his new employer. Georgia-Pacific claims the

allegations are fabrications.

July 2002: Hair care, both wet and dry

P&G found common ground in American scalps with Panasonic. The two

companies enter into a licensing agreement to market and sell a new line of

ionic-technology hairdryers under the Pantene Pro-V brand name.

May 2002: The divorce turns ugly

Procter & Gamble sued former partner The Coca-Cola Company for patent

infringement. P&G claims Coke used P&G technology to add calcium to its

Minute Maid juice drinks. The tech in question had been exclusively licensed

to PepsiCo subsidiary Tropicana.

Vault Newswire

Procter & Gamble



Procter & Gamble

Vault Newswire

April 2002: Dear John

John Pepper stepped down as chairman of the board and president and was

replaced by CEO A.G. Lafley.

February 2002: Cutting out the fat

Procter & Gamble sold the olestra production plant in Cincinnati, Ohio to

Twin Rivers Technologies for an undisclosed sum. Twin Rivers will continue

to operate the facility, supplying olestra to P&G and other customers.

November 2001: Hair we go again

P&G acquires top selling Clairol hair products business from Bristol-Myers

Squibb. The deal was worth $5 billion dollars.

October 2001: Smucking around with stocks

P&G’s Jif peanut butter and Crisco shortening were spun off to shareholders,

then immediately resold to The J.M. Smucker Company. Shareholders

received about $1 billion in Smucker stock, or about 53 percent of the

company.

October 2001: Shooting star

Procter & Gamble sold its Comet cleanser trademark and North America

retail business to Prestige Brands International for undisclosed terms. P&G

retained the marketing rights in Europe, as well as the professional line in

North America.

September 2001: Irreconcilable differences

P&G and Coke, unable to reach an agreement on how their joint venture will

operate, will go their separate ways. The companies had tried but failed to

amend their plans in August.

March 2001: P&G steps up reorganization plans

The company announced the next step in its plans to revitalize performance.

These include streamlining of overhead and manufacturing costs as well as a

9 percent workforce cut, or 9,600 jobs. Two-thirds of the cuts come from non-

manufacturing positions.


Procter & Gamble

Vault Newswire

February 2001: A meeting of giants

Procter & Gamble and The Coca-Cola Company announced plans to form a

joint venture. The new business was to develop and market juice drinks and

other food products. The companies expected $4.2 billion in annual sales.

January 2001: We don�t do floors

Procter & Gamble divested itself of cleaning products Cinch and Spic and

Span, selling its interest to a marketing group that would become The Spic

and Span Company. P&G holds onto ownership of Professional Line Spic and

Span, the institutional adjunct to the product.



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Old, but trying to get younger�

As would be expected of a company whose logo contains a reference to the

original 13 colonies, Procter & Gamble is not the hippest of work

environments, although we hear the winds of change have blown through

Cincinnati in recent years. One employee describes the company as “very

conservative.” “To fit,” he says, “you should be a typical yuppie, drive a

Saab.” However, most other employees say the atmosphere is shifting. “The

culture here is a bit on the conservative side, though it seems that the younger

generation is changing that,” says one. “I am finding an emerging diversity of

thought and dress. More and more men are finding it OK to keep their hair

long or have an earring,” says another. “Obviously we’re still a somewhat

conservative company. But there is more openness and acceptance of those

who don’t fit the ‘traditional, conservative’ look or views.”

�and more casual

In keeping with its move away from a conservative atmosphere, dress for

most employees is now “business casual” or “business appropriate.” “Dress

code has been suit and tie for many years, but recently changed to business

casual, which, by the way, is a shock to many people,” reports one employee.

Those in sales management wear suits when meeting clients, and upper

management is often also dressed formally, but for most, it’s relaxed fit

slacks, collared shirts and skirts (no T-shirts and jeans).

Big, and struggling to act small

Accounts of how P&G operates run the gamut from “surprisingly nimble and

non-bureaucratic” to “extremely structured and hierarchical,” but enough

employees complain about its being overly bureaucratic to suggest that the

description, while perhaps not unilateral, is far from a fluke. “What I did not

like was that the company was large and sometimes very bureaucratic, which

meant that change sometimes happened very slowly and that

entrepreneurship was sometimes stifled,” says one former international brand

manager.

Within brand management, teamwork and communication is stressed – 50

percent of a brand manager’s evaluation is based on the development of

employees in the brand. Most employees speak glowingly about their

treatment by superiors, saying their bosses take real interest in their

Our Survey Says

Procter & Gamble



Procter & Gamble

Our Survey Says

development and treat their opinions with real respect. But bureaucracy can

rear its ugly head when it comes to interdepartmental movement. “Many of

the functions (outside of Brand and Finance) do not have the performance

incentives we have. As a result, they can be bureaucratic and will use Brand’s

failure to follow procedure or guidelines as an excuse,” says another

employee. But within Brand, the company can also be overly stiff. “It’s

definitely bureaucratic, it’s very difficult to get things done at P&G,” says a

former assistant brand manager. “Things just move at a very slow pace.” That

former employee says that when a new idea is presented, it is sent by memo

to a superior and then “niggled” – sent back with comments in the margin.

The memo is rewritten and sent to the next higher level, and then “niggled”

again. And so on. “It’s a pretty stifling place,” he says.

Was white and male; moving quickly to greater

diversity

Procter & Gamble, employees nearly unanimously say, is making impressive

strides to recruit and advance more minorities and women, although there is

also the tacit or explicit admission that this was not always the case. “In a lot

of areas, minorities and women have a great chance of getting promoted fast

since the company is trying to change its traditional conservative corporate

atmosphere,” reports an employee.

P&G advertises itself as an employer in publications such as Minority

Engineer and The Black Collegian. In 1996, the company was honored with

the NAACP Legal Defense Fund’s first corporate affirmative action award for

its tripling of women and minorities at the director level and above during the

previous five years. Since then, the company has received numerous awards

and plenty of recognition for its commitment to gender and ethnic balance.

One employee describes a Halloween Party he had with fellow employees:

“We had friends there from Iran, India, Ukraine, Israel, Canada, Romania, as

well as from all over the United States.”

With respect to the status of women in the company, as one employee points

out, “most of our consumers buying our products are women, and so we’re

very in tune with what they want.” For the past decade, P&G has been voted

one of the 100 best companies for working women by Working Mother

magazine. Although only one of P&G’s top 15 officers is female, many

employees report that the middle and upper-middle management ranks are

filled with women working their way up the corporate ladder. A third of the

company’s brand managers, and half of its marketing managers, are women.

“I was one of four males in a department of 28. Both marketing directors were


Procter & Gamble

Our Survey Says

female,” says a former assistant brand manager. “My last three bosses and

their bosses have all been women,” says another employee. And yet another

says: “I have not had a boss who was male. Even my director, at a high level,

is a female.” The company has, and encourages involvement in, women and

minority support groups.

The perky city

In Cincinnati, the company rents out an amusement park every summer for

employees and their families to enjoy for free. In the winter, it does the same

for events such as David Copperfield, the Harlem Globetrotters or ice-skating

shows. Sales reps get a company car and keep their frequent flyer miles.

There’s also a company gym, holiday gift packs and coupons for P&G

products. “I haven’t bought detergent or soap for nine years!” says one

employee. And the perks aren’t confined to the P&G campuses. “All kinds of

perks all over town,” a central office employee reports. “P&G owns

Cincinnati.”

P&G also was one of the first companies to offer “FlexComp,” which gives

employees a wide range of healthcare and other insurance choices. And P&G

also pays out another 2 percent to 4 percent of an employee’s salary (above

base pay) that workers can use to pay for their benefits.

But by far the most impressive perk P&G offers is its company profit-sharing

retirement plan. Initiated in 1887 to address labor unrest, the program is the

longest-running profit-sharing plan in the country. Under the plan, the

company automatically kicks in stock worth from 5 percent to 25 percent of

a participant’s annual base pay, with the maximum company contribution

coming after 20 years of service. The plan is considered a real gem because,

unlike the pension programs at many companies, it’s not a matching program:

P&G makes the contributions above base salary regardless of what the

employee does. “It’s automatic, you don’t even have to think about it,”

according to one employee. “I’ve had job offers with higher salaries but have

never been able to make the long-term math pay out over what I can

reasonably expect here,” another employee says.

Participants in the plan are fully vested after five years of service. Although

the program provides longtime employees with substantial retirement

security, it is not necessarily such a bonus for itinerant workers. “My honest

opinion is that it’s not any better than other well-respected companies, except

if you stay a long time (over 10 years),” one employee says. “It’s really

skewed in favor of longevity,” says another. “All you really know is all the

folks who have been there for a while go on and on about how much they’re



Procter & Gamble

Our Survey Says

getting.” That person, a two-year Procter employee, describes his profit-

sharing receipts as “miniscule, a couple thousand dollars a year.”

Who needs money when you live in Cincy and

have that profit-sharing plan?

Talking about salary is more taboo than Satan-worshipping at P&G. “P&G is

notoriously hush-hush about salary,” says one employee. “The one thing that

is absolutely taboo at Procter & Gamble is salary. Do not have a discussion

about it unless you are absolutely sure they will not tell your boss you had it,”

warns another.

The one thing employees do know about each other’s salaries is that they do

not change with location in the United States: “If you move from Kansas City

to New York, you’re not going to be making any more,” says one slightly

peeved metropolitan employee. Those in Cincinnati like to point out that the

low cost of living there, combined with the company’s policy on geographic

uniformity when it comes to compensation, is a plus for them. “Keep in mind

that $40,000 in Cincinnati is comparable to 70 to 80K in San Francisco or

New York,” one says.

Overall, employees give tepid reviews of their salaries. “Pay is higher than

average, but not astounding. You can probably get a higher salary in high-tech

or consulting,” says one. “They hope the opportunities and outstanding

benefits will make up for the average pay,” reports another. The final

conclusion? “You’ll never be rich, but very comfortable.”

A reputation 99.44 percent pure

In the consumer goods industry, P&G’s reputation is unparalleled. “It is a

[Fortune-ranked] company and known worldwide. It is a household name

and so are all of its products. On a scale of 1-10, it is a 10,” one employee

says. The same can be said about the company’s reputation for training

managers. “I believe it is the best marketing school in the world,” says

another respondent.

Although most employees who work at the company stay there, Procter &

Gamble is a definite resume boost. “I was told that I should not consider

interning at P&G if I had no real intention of living in Cincy,” says one intern.

“False. A summer at P&G means a lot to other brand companies.” One former

employee in P&G’s sales division reports that although he did not feel as

challenged as he had hoped: “in the end� what seemed to be the best part

about the job was just having the name on my resume. Telling an admissions


Procter & Gamble

Our Survey Says

counselor at a business school that you worked for P&G automatically carries

a great deal of weight.”

Moreover, employees take equal pride in P&G’s reputation as an ethical and

philanthropic company. “It is a company with deep integrity, a company you

never have to worry about defending to your family or friends,” one says.

“Never in my 23 years have I ever come close to compromising my personal

integrity for the company’s sake,” according to another. “We are excellent

corporate citizens in the communities where we have operations.”

The cream of the crop, the pearl of the oyster,

the Oil of the Olay

Procter & Gamble says they only hire the best and brightest – and they mean

it. Virtually all employees remark that they are surrounded by, as one

employee said, “the cream of the crop� former military officers, captains of

college sports teams, fraternity and sorority officers, award winners, highest

GPAs in college.” Many employees say the competency of co-workers is a

major plus when considering working at P&G: “Everyone is very talented

and intelligent� and pulls their weight.”

“I’ve known many people at many companies, and I’ve had close friends

leave P&G and go elsewhere. But invariably, they’ve told me that although

they enjoy their jobs, the quality of the people they work with is below what

they were used to at P&G,” one 20-year veteran says. “We do hire the very

best. I’ve been in the hiring business for many years, and I can guarantee you

that.”

This doesn’t just mean employees are good at pouring over data in their

offices. Success at P&G is much easier if you’re a “people person.” The

company emphasizes many attributes with its “What Counts Factors,” but

initiative and leadership and critical thinking seem to be the most important.

A brand manager “defines what success looks like,” one employee says. Of

course, that P&G is so selective has its drawbacks. “Since there are so many

talented people, it’s hard to move up. There are 20 great people trying for one

promotion,” one employee reports.

The up-or-out policy in Brand

The talent of the employees becomes a major issue when it comes to Brand,

and that department’s up-or-out policy. While the evaluation policy (50

percent of a manager’s evaluation depends on development of employees)

promotes up-down cooperation, the up-or-out policy promotes lateral



Procter & Gamble

Our Survey Says

competition. “You do get a lot of help from the manager. I don’t think you get

as much help from your peers,” according to a former Brand employee. But

that former employee says although he saw politicking and brown-nosing

because of this competition, and “people are very much aware of their place

in the organization,” he did not see any malicious undermining, because

Brand employees accept the competition as a fact of life. “It just doesn’t

happen. It’s not permitted,” he says about whether a brand employee could

stay at one position for their entire career. “It’s the way the organization

works.”

No slave-driving here

For those with management-track positions, workload at P&G is heavy, but

not as intense as in consulting and investment-banking fields. One employee

explains, “Being in Cincinnati generally made the corporate culture embrace

family-work balance. I didn’t see the slave-driving at P&G that you see on

Wall Street.”

Although the official workday in the corporate offices is 7.5 hours, most

employees at P&G’s downtown offices pull between 45 to 55 hours a week.

However, many comment that the hours are fairly flexible: “Some people

even come in at 7 or 7:30 a.m. and leave at 3:30 p.m.” Of course, hours can

intensify: one assistant brand manager reports working 60+ hours a week for

two or three weeks while preparing an annual plan. Treks to the office on

weekends to catch up are common for those higher up on the ladder. But even

when long hours are required, employees say, it is not because long hours are

an ingrained part of the company’s culture. “Ultimately, you will be judged

on how good a job you do, not how many hours you keep,” says a P&G

market researcher.

I�m living on the air in Cincinnati

Opinions of Cincinnati vary. Some employees like the low crime rate and

free-flowing traffic; others complain that the city is conservative, lacks

diversity, and has crappy restaurants. Interns generally have a great time over

the summer, in part because the company plans social activities such as

riverboat cruises, happy hours and trips to Cincinnati Reds games. For full-

time employees, P&G has the obligatory activities. “There are a lot of sports

leagues within the company which is a great way to meet other young

people,” says one employee. While P&G has been cognizant of making life

comfortable for families (they work hard to try to get spouses to both work

for the company), it is only recently considering the needs of the young and


Procter & Gamble

Our Survey Says

single. Says one former employee, “Cincinnati as a town is a pretty rough

place to be for very long if you’re single.”



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Overview of the Hiring Process

Procter & Gamble recruits for its management-track jobs at most prestigious

business schools and undergraduate colleges. It also prefers to hire through its

internships rather than directly into the company. Internships last about 12

weeks in the summer. The company asks that applications be submitted by

January for the internships, as they try to fill them by March. Recruiting

schedules, and in some instances P&G contacts who are alumni of certain

schools, are posted on the company’s career center web pages.

The screening process is very selective. It usually involves several rounds of

interviews and always includes a multi-page Management Application Form

and a company-designed multiple-choice test designed to test critical thinking

skills. Procter & Gamble is primarily concerned with the character and

personality traits of its hires, and their thinking skills, and these two tests are

designed to gauge these.

Immediately available job listings are also posted on the web site, although

these are primarily for sales or support-staff positions.

For its brand management department, Procter & Gamble says it requires a

master’s degree and prefers an MBA – though outstanding undergraduates are

also hired into the department. For the finance/accounting path, an accounting

undergraduate degree is required, or an MBA finance or accounting major. In

the technical departments, engineering or computer science degrees are often

required. For other departments, such as human resources, or customer

business development management, Procter accepts candidates from all

majors.

As much as it looks at a candidate�s academic background, Procter &

Gamble stresses certain personality traits and other skills:

• an outstanding record of leadership

• strong verbal and written communication skills

• strong critical thinking ability

• the ability to innovate

• the ability to work as part of a team

Getting Hired

Procter & Gamble



Procter & Gamble

Getting Hired

This is not just company hoopla: Many employees say leadership and

initiative are not only integral to getting hired, but to being successful in the

company. “They’re not looking for ‘yes’ people, but want you to challenge

and question,” says one. “Don’t wait for people to tell you what to do. Trust

your instincts� and make things happen,” says another.

To Apply

Cover letters and resumes can be e-mailed to [email protected]. They can

be snail-mailed to:

Procter & Gamble

Recruiting Services Center

P.O. Box 599, TN-4

Department WWW

Cincinnati, OH 45201-0599

Conventional and e-mail addresses for applications to Procter’s many

overseas offices can be found at the company’s career website, located at

www.pgcareers.com. Here are a few major ones:

In Canada

Corporate Recruiting

Procter & Gamble Inc.

P.O. Box 355, Station A

Toronto, Ontario

M5W 1C5

P&G Canada does not currently accept applications via e-mail.

In Japan

P&G Japan

Internships

17, Koyo-cho Naka 7-chome

Higashinada-ku

Kobe 658 Japan

[email protected]


Procter & Gamble

Getting Hired

In the U.K. and Ireland

Procter & Gamble

Corporate Recruitment Manager,

The Heights

Brooklands

Weybridge, Surrey

KT 13 0XP

[email protected]

In Germany

Procter & Gamble GmbH

Corporate Recruiting Department

65823 Schwalbach am Taunus

[email protected]

Preparing for the Interview

For most management-track employees, Procter & Gamble has a three-round

interview process and a test, although some outstanding candidates only go

through two interviews. Again, these employees are primarily culled from

recruiting at prestigious schools and are introduced to the company through

the internship program.

The first two interview rounds generally take place on a school campus, and

are given by either an alumnus of the school at which P&G is recruiting, or

by a member of the company’s human resources department. The last

interview is a “panel interview,” in front of two or three P&G managers. The

questions at each of these interviews are essentially identical. The interview

process can take several weeks.

Despite the many rounds, the interview process is not especially nerve-

wracking, employees report. “They make it relaxed, they make you feel

comfortable,” according to one employee. “There’s never any point where

they try to do a psychology part and try to stress you out.”

The critical-thinking test, called the P&GMAT, is given before the final

round. It’s a pass/fail multiple-choice test similar to the GMAT that asks test-

takers to find the solutions to real-life business situations. The test won’t not

a problem for students at prestigious undergraduate and business schools, we

hear. And because they have the test, P&G interviewers do not spend a great

deal of time asking applicants about grades during the interview process.



Procter & Gamble

Getting Hired

Employees also fill out a Management Application Form (MAF), which some

employees refer to as a personality/psychology questionnaire. Although it is

a subjective test with supposedly no “right” answers, keep in mind what

Procter looks for in an employee. This questionnaire, one employee says, is

also used to learn about an applicant’s probable loyalty to P&G.

Questions to Expect

The basis of Procter & Gamble’s recruitment and evaluation for managers are

what it calls the “What Counts Factors.” The most important of these,

employees say, are leadership, initiative and follow through (execution), and

critical thinking. Others include teamwork, communication, creativity and

prioritization. The interviews for P&G are geared entirely toward determining

whether a candidate possesses these characteristics. “There was not a single

specific marketing question,” one employee says. “You won’t be asked about

marketing case studies,” says another.

In many cases, employees say they already knew what questions would be

asked at the interviews. “It’s extremely predictable. They tell you what

they’re going to ask you, then they ask you,” reports one employee. That

employee was asked to write short essays after his first interview. In his

second interview, he was asked to talk about his answers. Another employee

says she was given the MAF before her first interview, and that the test

essentially approximated the questions she was asked.

1.Give me a recent example where you exceeded expectations.

Remember, Procter & Gamble stresses initiative. So a good prepared answer

won’t just be, “Well, I had been averaging 10 points a game, and I scored 15,”

but some way in which your action went outside the boundaries of what was

expected: creating your own combined major in school, forming a new

organization, etc. When given these questions, try to provide examples from

your entire life, including high school, junior high, even elementary school.

2. Why did you decide to go back to school? or Why did you decide to

start working immediately after undergraduate school?

This is an example of a “explain your decisions” type question that P&G likes

to ask. Like the personality test, it is designed in part to gauge your

commitment to the field, and by extension, the company itself.


Procter & Gamble

Getting Hired

3. Which word best describes you?

Choose a “What Counts Factor” and be prepared to give a few stories about

why you think you are best characterized as a leader, or having initiative, etc.

4. Give me an example of when you had to use thinking and problem

solving skills.

One of the high-ranking “What Counts Factors,” this is not the easiest of traits

to illustrate with a story, so you should prepare for this one.

5. Tell me about one of your activities during school and what you think

you gained from it.

Remember “What counts?” And don’t you forget it.

6. What is your definition of success? or Tell us about an experience that

you think was successful.

A brand manager is supposed to define success for his or her group. And, yes,

we’re beating you over the head with this one. It’s worth noting that the

“What Counts Factors” are called “Success Factors” on P&G’s Europe,

Middle East and Africa Group website.

Questions to Ask

Employees said that recruiters are looking for a demonstrated interest in the

company. This means knowing the basic background info. “P&G is an easy

company to find information on, so it makes you look unmotivated if you

don’t have anything to talk about,” said one brand management intern. If

you’ve read this report, you should be prepared, but here are some primers:

1. What types of courses can I take while at P&G? I�ve read a little about

P&G College, but how will skills I pick up there help me to continue to

grow?

The company is proud of its P&G College, and its emphasis on training. Also,

they are looking for employees who are motivated to keep learning.

2. If P&G�s pharmaceutical business grows as anticipated, does the

company envision that it will deviate from its promote-from-within

policy to gather talent experienced in that category?

Knowing about the company’s plans to expand its presence in the drug

industry is a must.



Procter & Gamble

Getting Hired

3. I understand that Procter expects to greatly increase its business in

emerging markets. What opportunities and responsibilities does this

afford?

If you have any international expertise (fluency in foreign languages, travel,

detailed knowledge of or experience with foreign markets), this is a good way

to try and flaunt it. Many top managers at P&G spent time in international

divisions (former CEO John Pepper was a general manager in Italy and a VP

for the company’s European operations). A managing director in Europe said

in a recent interview that “international mobility has always been a common

feature of a career at P&G.”

4. How is P&G�s recent restructuring effort affecting management-level

jobs?

5. For what other products does the company envision using olestra?

Olestra is the chemical name; Olean is the brand name being used with fat-

free Pringles. P&G is selling olestra to Frito-Lay and Nabisco for use in such

products as Lays and Doritos. Consumer reaction is thus far mixed. While

some consumers crow about being able to upsize their potato chip

consumption, others complain the fake fat causes diarrhea and other bowel

disruptions.

6. With so many options for consumers these days, and brand loyalty

seemingly on the decline, what is P&G�s strategy for the 21st century to

keep and attract customers?

Pay

MBAs in Brand Management or Finance: $65,000 to $70,000, with about

$12,000 signing bonus for former interns and a $6,000 signing bonus for an

interns

Undergrads on management tracks: $35,000 to $40,000

Summer internship: $1,000+ a week for MBAs; $500 a week for

undergrads.


Procter & Gamble

Getting Hired

Perks

• Lucrative profit-sharing plan

• Free products

• Maternity leave (one year); flexible schedules that allow employees to

reduce hours for five years to take care of young children

• Health plan

• Company car for field reps



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Each year, Vault surveys and

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�Cliffs Notesfor Careers�� FORBES MAGAZINE

Day in the Life

Assistant Brand Manager, Brand Management

7:45 a.m.: Arrive at office. (“There’s no P&G parking lot, but there’s plenty

of parking in downtown Cincinnati.”)

8:15 a.m.: Finish eating breakfast and reading paper at desk. (“It’s a cubicle

in kind of an open bullpen area for each brand. The brand manager has an

office.”)

8:30 a.m.: Check in with brand manager. (“You don’t meet with your

manager daily, but my brand manager’s door is always open.”).

9:00 a.m.: Receive data needed for pricing study via fax, begin analyzing

consumer response to recent markup.

10:00 a.m.: On the phone with advertising agency, checking to see when the

storyboards for the new campaign will arrive.

10:15 a.m.: On the phone with the purchasing department, checking what

types of paper can be used for a questionnaire to be inserted into packages.

(“We have to make sure it’s attractive, so people will actually fill it out.”)

10:30 a.m.: Meet in conference room with financial analysts to receive more

data for the pricing study. Go over their preliminary interpretations.

12:00 p.m.: Lunch with a colleague from the brand group for $3 or $4 at

cafeteria. Choose from salad and sandwich bars, a pasta dish and several

other hot entrees. (“It’s a pretty great cafeteria, the food was decent, it was

subsidized.”) Or go out to eat if you’re afraid the food has Olean and your

stomach won’t take it. (“There’s a good Chinese place, a good Thai place,

there’s Skyline Chili a block away where you can get the 5-way,” a Cincinnati

concoction that involves chili, onions, cinnamon and spaghetti.)

12:45 p.m.: Drive 15 minutes to a research center in the north of Cincinnati

to meet with research and development staffers. (“What progress are we

making in making a milder soap? How’s the color coming?”)

3:00 p.m.: Drive back to central office. Flash ID badge at 11-story old granite

general offices, where most Brands are located. That office is connected by a

On the Job

Procter & Gamble



Procter & Gamble

On the Job

skywalk to two new glass 20-story tower-domes. (“They’re called the Dolly

Parton towers by the locals.”)

3:15 p.m.: On the phone with customer development managers, set up

meeting in the next couple of days.

3:30 p.m.: Work on pricing study more. Take notes for eventual presentation.

4:30 p.m.: Weekly meeting in floor conference room with brand group,

including the brand manager.

4:50 p.m.: Make brief presentation to group about the questionnaire: how it

will be distributed, what incentives will be included to promote responses.

(“We’ll offer a prize drawing or something like that.”)

5:30 p.m.: On the phone with purchasing to order the questionnaire paper.

6:00 p.m.: Leave for home. (“It’s your discretion when you leave. You knew

what you had to do, there was no one really watching. It was just more of a

sense of ‘Get the job done.’”)

Job Descriptions

Brand Manager, Brand Management

Assistant brand managers and brand managers analyze all aspects of a brand’s

sales and marketing. “Brand management is general management with an

emphasis on marketing,” explains one employee. The majority of employees

in brand management are recruited from MBA programs, and employees say

the company is shifting away from employing brand managers without

MBAs.

The important thing to know about brand management is that it’s THE

department for those looking to move high up in the company. “Brand

management is Boss. I can’t recall anyone wanting to move from marketing

to finance, but I do remember more than two cases where people wanted to

move from finance to marketing,” says one employee. “I know of no general

manager worldwide that reached that position without having to pass through

the brand management department,” says another. Employees coming into

the department (they always come in as assistant brand managers) can give

preferences of what types of products they work with, but, explains one

employee, matching company needs and employee desires is “an inexact

science.”


Procter & Gamble

On the Job

Projects might include

• determining how a change in pricing would affect a product’s performance

• developing direct-mail and other advertising campaigns

• predicting market receptivity to new product concepts

• packaging design

• developing new product ideas

• analyzing market research on focus groups

Assistant brand managers are split into junior ABMs and senior ABMs. Junior

ABMs are more responsible for promotions and market research; senior

ABMs look more broadly at marketing campaigns and strategy.

Account Manager, Customer Business

Development

This is management, but out in the field and as a telecommuter in sales rather

than at home offices and in marketing in Cincinnati. Many undergraduates

starting out in the company with an eye on management enter through this

department. The position involves meeting retailers to help them plan their

marketing strategies. The account manager is focused on four major areas:

• ensuring that a retailer has the right mix of products

• working with the client to evaluate optimal pricing strategies

• planning product promotions

• advising on product placement on the shelves

Summer Internships

Procter & Gamble’s internship programs are the best way to get started at the

company. Says one MBA intern who is almost certain she will accept a

company offer: “Summer internships almost always result in job offers. This

summer, interns received their offers before they left P&G. During this past

summer, the CEO stated that one of his long-term goals was to recruit brand

people only from the intern pool.” Another MBA intern says she knew of no

one in the program who did not receive an offer. Says a former undergraduate

intern currently working for P&G, “It’s contingent on performance, but I

knew that if you did well, you get an offer.”



Procter & Gamble

On the Job

Interns are given a surprising amount of responsibility. “Interns often get the

most politically sensitive projects: to kill or not kill a brand; strategic focus

of a brand,” says one former brand management intern. “These were not just

make-work. These were real projects,” says another. Also, interns in

Cincinnati have weekly lunches with high-level managers, perhaps even the

CEO. “That was a fantastic experience,” says one former intern about the

luncheons.

Undergraduates entering their sophomore year to first-year graduate students

can also apply for internships in a variety of other departments: Research &

Development, Product Supply/Engineering, Customer Business

Development, among others. The close to 500 interns are flown to Cincinnati

– where about two thirds of them remain for the summer – for a one-day

orientation which involves business presentations by company managers and

a reception and dinner with the chairman and president. Customer business

development interns stay an additional day for more seminars; these interns

get to use a company car for the summer to travel to meet clients. Interns who

stay in Cincinnati are provided housing. Projects for undergraduate interns

vary from analyzing cleaning products in labs to planning display strategies

with grocery store managers.

Department Descriptions

Brand Management

The main choice of the MBAs, brand management is, according to former

CEO John Pepper, “an opportunity to manage a company within a company.”

This department manages individual brands by gaining insight into its

consumers and researching cultural trends. Brand managers develop

promotions and other marketing strategies for their product. Brand managers

in the United States are either in Cincinnati or Baltimore. This department,

employees say, has an up-or-out policy.

Finance/Accounting Management

Along with Brand Management, this department is one of the two most

popular department choices of MBAs and those with management

aspirations. With oversight of business decisions, finance and accounting

professionals analyze accounting data to maximize long-term profits, cash

flow, and return on investment. Although this is a management-track

department, in order to move into the higher echelon of P&G, finance people


Procter & Gamble

On the Job

need to spend some time in Brand or Marketing. Although concentrated in

Cincinnati, Baltimore, and Norwich, N.Y., this department is spread out

throughout the country.

Human Resources

Internal transfers from other departments fill the vast majority of Human

Resources positions at P&G. The department oversees recruiting, training,

diversity, benefits, compensation and organization evaluation.

Management Information Systems

Employees in Management Systems lead development and application of

information and communication systems throughout the company. This

department is filled by applicants with computer science or engineering

backgrounds, and it is centered in Cincinnati.

Market Research

Sort of a feeder into Brand Management, this department gauges market

response to new product concepts, advertising campaigns and product

changes.

Product Supply

This large division is comprised of Manufacturing, Engineering, Purchases

and Customer Services subdivisions. It is in charge of actually transforming

raw materials to finished products, and delivering the products to customers.

Professional and Regulatory Service

This department provides expertise in human and environmental safety and

product regulatory issues, often working on obtaining licensing approval

from the government.

Public Affairs

Public Affairs handles communications with the media, government officials,

community groups, shareholders and employees. The department also

manages consumer relations.



Procter & Gamble

On the Job

Research and Development

These are the guys with the white coats and goggles in the labs. Although

product development gets the most press, this department is also responsible

for developing new packaging and manufacturing processes. The department

hosted a global R&D symposium in March 1998 that drew thousands of

attendees.

Customer Business Development (Sales)

Management

Providing on-site consulting for Procter & Gamble throughout the world, this

department identifies business-building opportunities and develops customer

alliances.

The most important thing to know about career paths at Procter & Gamble is

that the company sticks to a promote-from-within policy. Therefore, the vast

majority of new hires are at the entry levels. Because of this policy, career

paths do not differ substantially for undergraduates and MBAs, although

MBAs, of course, can expect to move faster initially. Employees described

the career paths as fairly rigid, with the expected dues-paying and set paths

that one would expect at a large and relatively conservative company. The

second most important thing to know is that in brand management (but not

other departments) P&G has a somewhat brutal up-or-out policy.

Career Paths

Brand Management

This department is becoming increasingly closed to those without MBAs.

“Out of about 15 to 20 new brand people a year, maybe a couple are

undergraduates,” one former assistant brand manager says. P&G employees

entering Brand always start as junior assistant brand managers. If they move

up the ladder, they will become go to a senior ABM in 12 to 15 months, a

brand manager three or three-and-a-half years later. From there, it’s

marketing director after five years and then category manager after five more

years. This position is on the cusp of upper management, and can lead to a

position as general manager of a region.

If a Brand employee is not promoted within the timeframe the company has

set up, they are placed on “special assignment,” one former employee reports.

This means two months in an office with just a phone and a desk to find


Procter & Gamble

On the Job

another job. This can happen at any level up to category manager, meaning it

can happen to employees who have been with the company for 10 years or

more. Needless to say, this creates a high attrition rate.

Finance and Accounting

Ascension in either of these tracks leads to executive financial management.

Entry level is as either a financial analyst or accountant. For accountants, the

path goes: senior accountant, group manager, associate director, director, and

then executive financial management. For financial analysts, the career path

is as follows: manager, category financial manager, comptroller, and then

executive financial management. Again, those with their eyes on being a top

management need to spend time in Brand.

Sales Management

The first promotion from account manager is to account executive. This

position develops business plans with customers. After this, customer

business employees often move to other company functions, such as Finance,

Product Supply or Advertising.

Evaluations

Annual evaluations for P&G employees are based on the company’s seven

“What Counts Factors”:

• initiative and follow-through

• leadership skills

• creativity and innovation

• problem solving

• working effectively with others

• communication skills

• priority setting

Employees are rated quantitatively on these factors. Interns are evaluated

once informally halfway through the summer, and then formally with the

“What Counts Factors” at the end of their experience. For supervisors,

evaluations are split into two parts: the business they oversee, and the people

they oversee. In other words, half of their evaluation is based on how the

people in their group develop.



Procter & Gamble

On the Job

Training

Because Procter & Gamble emphasizes developing its employees and a

promote-from-within policy, it is very proud of its training programs. In

Cincinnati, there’s a building close to headquarters that is used for “P&G

College,” with half-day to full-day courses on rating advertising, being more

sensitive to diversity issues as a manager, etc. “When you’re in your first

couple of years, you’re there maybe every other week,” says one brand

employee. “Later, it’s maybe once a month.” There are about 20 students in

each session, usually from the same function. Employees, in part because of

the free sandwiches “students” get, welcome the sessions. Apparently the

sandwiches are so good that P&G tells employees that going to the college to

get some when it’s not your turn is grounds for firing. However, “I’ve never

seen that happen,” one employee says.

Outside of Cincinnati, training often takes the form of regional seminars

taught worldwide by company executives who are experts in particular

subject areas. “At Procter & Gamble, the most important thing is training,”

said one former category manager in Asia.


If you’re good enough to land a job at Procter & Gamble – and you must be

very good – then ask yourself if Procter & Gamble is what you want. Are you

delighted at the prospect of slowly accruing benefits, steady but not stellar

pay, and the prospect of moving to the Midwest? Do you want to live large,

or live comfortably? Procter & Gamble is confident in its value and identity.

And if you’re thinking about going into Brand Management, can you stomach

the prospect of a “special assignment”? If the firm makes you an offer, it

means they think you can fit in, not the other way around – despite their

emphasis on innovation and creativity in thinking. P&G has set a tricky task

for itself in the coming years, looking to simultaneously streamline

operations and double sales. If they’re successful in their push into the

pharmaceutical industry, emerging markets and new categories of foods with

products such as Olean, there’ll be plenty of work and potential for

advancement. As they say at P&G, as the market goes, so go your

opportunities. Needless to say, don’t expect P&G to be going away anytime

soon.

Final Analysis

Procter & Gamble



Check out www.pg.com for the latest company press releases and product

news. Some other articles to check out are:

• “The Un-CEO,” Fortune, September 16, 2002

• “Why P&G’s Smile Is So Bright,” BusinessWeek, August 12, 2002

• “A Fresh Face,” Forbes, July 8, 2002

• “Using Rocket Science to Make Sugar Drinks,” Fortune, November 26,

2001

“Can Procter & Gamble Clean Up Its Act?” BusinessWeek, March 12, 2001

Recommended Reading

Procter & Gamble



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