PROCTER AND GAMBLE | Leadership and Change Management

PROCTER AND GAMBLE leadinghip and Change ManagementProcter and assay OverviewProcter hazard is Ameri buttocks base cosmoss largest manufacturers of a wide range of intersections. The smart set main maker of ho habithold carrefours in the United States, PG has operations is more than(prenominal) then 80 countries around the world and markets its nearly 300 brands in more than 160 countries, more than half of the companys revenues atomic morsel 18 derived overseas. Company products, which slip away into the main categories of fabric cargon, home c be, knockout cargon, baby care, family care, health care, snacks, and beverages, are 16 that generate more than $1 one thousand million in annual revenues (PG Annual Report 2009).2. PG Change action 2005Change counselling is a word that is holdd in bloodline to mean the way strain to mean the way business is choose in order to. Change is a constant in some(prenominal) professional and r private lives. According to Dru ker (1999) salmagundis is generic. He further goes to bestow that, assortment leader sees change as hazard. A change leader looks for change, knows how to find the right changes and knows how to make them effective both inside and immaterial of organization. The basic principles of change management, and provides some tips on how those principles can be applied.When leaders or managers are planning to manage change, there are flipper key principles that ingest to be kept in mind as shown belowDifferent concourse react early(a)wise to changeE veryone has primordial makeChange often involves a breathing outManagement panoramaDeal Management FearDifferent people react differently to changeDifferent people ready different preferences for where they like to be on this spectrum. Some people like to be at the constancy end of the spectrum, they like things to be the way they grow always been. early(a) people like to be at the change end of the spectrum and they are alway s looking for something different and mod. A managers responsibilities need to be revise to account for what employees need most during tough economic epochs. In Procter Gamble workshop which aligned with what the organization had already learned in the circumstance of plant closures. We found the closures did much little damage whenManagers announced the fancy of closure and key milestones far in advance and also lucubrate how employees and members of the community would be affected.Managers fully explained to employees and the community the business reasons for the closure.Managers gave the employees affected the venture to find other personal credit lines deep down the company or admirer them with resources for finding a job outside the organisation.Managers expressed their human concern, both in public and privately, to affected employees and officials of the community.In this way, the key attri only whenes of predictability, understanding, control and compassion wer e demonstrated.Everyone has fundamental needsBy describing the landscape of unmet guest needs and analyzing where unfermented offering have worked before, you can chart a path that will produce booming innovations time after time Anthony (2006). Understanding customer needs and edifice lasting relationships are important in helping an organization present. Businesses infix through and through unmet customer needs. Customers express their needs that have not been met and organizations innovate to meet those needs. This is why PG is still leading the domestic product effort because, it listens to customers unmet needs and innovates aggressively to meet those needs. For instance, when babies were wearing cloths diapers, they were very leaky and bear on intensive to wash at that time, mothers needed an innovational product on the market to help fix the labor intensive part of airstream the cloth diapers as well as the leakage. PG answered this innovative c in completely by in troducing a revolutionary product called Pampers into the market. Change often involves a goingThe relevance of the loss curve to a change management programmed enumerates on the nature and extent of the loss. If individual is promoted to a more senior position, the loss of the former position is rarely an issue because it has been replaced by something better. But if someone is made prospect of getting a new job, there are many losses (income, security, and on the job(p) relationships) that can have a destroy effect.The aforementioned are the primary features of change and PG management has recognized that. Sometimes, what employees do not understand is the impact of change on their professional and family lives and it is the debt instrument of management to communicate this impact to employees both positive and banish hardly mostly, management overemphasizes on the positives and pays little attention on the negative impact. Kinicki (2007) mentionedmanagerial changes viewed as good and necessary can be seen by employees asintimidating and even terrifying. But when companies dont take this into account,and force changes that employees arent prepared to handle, those companies pretendalienating their workers, losing money and, in the end, seeing those smashing strategicalchanges fall flat. This is a communication strategy that PG has been triumphful in implementing corporeal wide. The company ensures that the length and breath of all its units understand the impact of any change mostly at the professional level. Management ensures that everyone involved is interested in the change butt. The more employees are interested in the change process the greater the success of the change or innovation. The most important gene here is motivation. Management ExpectationThe relationship between expectations and reality is very important. You can see this in customer relations if a supplier unwraps to meet expectations then the customer is unhappy if the s upplier exceeds expectations then the customer is happy.All aspects of the marketing process with modules for marketing strategy teaching and deployment, invention growth and testing, pricing strategy, package design, advertising development, media planning, direct marketing, interactive marketing, and advanced(a) new know-how and tools for Internet-enabled product development and testing, among others.Hunter Hastings, chairman and chief decision maker (formerly chief operating mogulr of Magnifi), who has an extensive background in brand marketing and corporate marketing services Dan Maurer, president and chief operating officer (formerly ecumenical manager of PG i-Ventures), who has extensive international marketing and management experience in PG European and U.S. operations Wade Miquelon, chief financial officer (formerly pay manager for PG e-commerce area, general partner for PG Internet venture fund and chief financial officer for its Thailand operations), who brings e xperience in MA, corporate treasury, new business development, and strategy development Pete Farner, vice president corporate development, (formerly Magnifi senior vice president gross sales and business development) who is an experienced and successful development executive in complete and start-up businesses.Deal Management FearIn times of significant change rational thought goes out of the window. This means that people often forethought the worst in fact, they fear far more than the worst, because their subconscious minds suddenly become illogical and see irrational consequences. ExampleOur company is reduction staff, which meansThey will make people redundant, and ailing be the premier(prenominal) to be kicked out, andIll have no hope of getting other job, andI practise be able to pay the mortgage, soIll lose the house, soMy family wont have anywhere to live, andMy wife wont be able to cope, soShell leave me, andIll be so disgraced the children wont speak to me ever ag ain.Such fears need to be addressed, e.g. by helping people to recognize that most people who are made redundant find a better job with better pay and have a huge lump unification in their pocket Or, where appropriate, by explaining how the reductions in staff numbers are going to be achieved (by natural wastage or voluntary redundancy).According to De Geus, these are the four key characteristics that best describe the company which can endure for very long periods in a changing world, because its managers who good at the management of change. The quartet provide the framework which enables a PG, or Coca-Cola, or GE to renew itself note how PG, kept wealthy by its button-down financing, was able to learn from its own mistakes when adapting to a new marketing environment, and to domesticize and improve its relationships with entities like the major store chains. In doing so, the sustained saturation of the corporate brand and assimilation was invaluable.3. Analysis of PG strate gic change?The lane to hell is paved with good intentions this is how we would describe the implementation of Jagers (CEO) strategic change. PG was in deep trouble in the first half of 2000. For the first time in the past eight years PG was showing a reduce in profits. In the late 1990s, PG faced the problem of stagnant revenues and profitability.In light of this the Organization 2005 program was launched in July 1999. As indicated in the topic responsibilities and Relationships were not optimised. Nevertheless It takes time for a restructure to become Effective, but it needed better implementation. With the implementation of the program, PG aimed to increase its global revenues from $38 billion to $70 billion by 2005. The Organization 2005 program faced some(prenominal) problems soon after its launch. Jager concentrated more on developing new products rather than on PG well-established brands. Jager conducted some mistakes which proved addressly for PG. For example, efforts m ade in January 2000 to acquire Warner-Lambert and American Home Products. Contrary to PG cautious approach towards acquisitions in the 1990, this dual acquisition would have been the largest ever in PG history, worth $ cxl billion. However, the stock market greeted the news of the merger negotiations by selling PG parcel outs, which prompted Jager to go past the deal. Therefore it will not be farfetched to conclude that the strategic change was welcomed and important to the corporate yet its implementation was not adequate.4. environmental Risk Analyses of Procter GambleCompanies and organizations essential assess, mitigate, and monitor certain take chances of exposures involved with their mundane operations. A specific area of risk that must be set is that on the local and global environment. Accidents, natural events, and deliberate assaults are all possible ways for an enterprise to cause pollution or other environmental risks. In order to limit, and hopefully prevent the se situations, environmental risk management places a strong emphasis on targeting the problems that could arise and implements a system of metrics that help with prevention.According to Environmental Risk Assessments (ERA), which Procter Gamble (PG) typically calls human and environmental safety assessments, for all products, is key to twist PG reputation as a good corporate citizen and maintaining a utmost level of public trust. This commitment stems from a long-held philosophical commitment that marketing safe products is a core business responsibility, both morally and in a business sense. Given these cheers, and the importance of ERA to PG future market access, the tool was well accepted by management and employees. Despite the companys success integrating ERA into core business practices, it still faces a number of practical gainsays. These include balancing the time and resources spent on abstruse ERA with the speed at which the company can bring new products to market, balancing a desire for public transparency with the potentially negative business consequences of releasing too much competitive information, and overcoming external perceptions associate to the use of risk assessment as a methodology to prise consumer products.Innovation is an extremely important driver for PG and drives the number of environmental risk assessments carried out by the company. As the company is continually developing innovative new products, PG submits more new substance notifications to the US Environmental vindication Agency, and its counterseparate around the world than most, if not all, other consumer product manufacturers. Thus, the company must conduct more risk assessments to support these new substance notifications than companies that use existing substances in the manufacture of products.PG feels its risk-based approach and tiered ERA feeds more comprehensive information into RD, which ensures products are safe, without unnecessarily delaying innovatio n and delivery of products to market. This in turn, reduces operating costs for the company. In this way, PG directs more of its resources toward product improvements and key product safety issues. This avoids investing in product development only to have that product sent back to the drawing board based on risk assessment results, or investing resources in unnecessary product testing that may have no real relevance to safety.5. effectuation of change organizational PGCountless change agents and other organizational interventionists fail to achieve desired results because they ignore or are unaware of the need to closely align change strategy with organizational personality. Durk I. Jager, former CEO of Procter Gamble Co., was clear about his goals when he took office in 1999 shore up up overseas operation and grow top brands. These measures would remedy sag sales and redeem PG image as the leading global marketer of consumer products. However, Jagers strategy for achieving the se goals was perceived as universe so abrasive, so conglomerate with PG personality, which his management team rebelled against him. He was forced to resign in less than two years. Alan G. Lafley, a longtime executive who understood and respected the companys culture, took office in 2000. Through a combination of wisdom, humility, personal engagement, and a wakeful alignment of change strategy to corporate personality, G. Lafley has turned PG into one of the great corporate success stories of the twenty-first century.According to PG Chief Information and spheric Services Officer, Filippo Passerini, the company envisioned itself fundamentally transforming the operation through the use of innovative technologies that will help the entire PG to work smarter, faster and more efficiently. In line with implementing a service-oriented architecture (SOA) system to improve entropy and files accessibility, PG adopted a new system the online workspace system.Online workspace systems are to build up an inventory of applications to deliver information for its global business units qualification them on tap(predicate) as services through the portal. This process allows employees and managers to reuse systems and codes from other parts of the business (purchasing, marketing, logistics, manufacturing, etc). This new system includes a security module to cling to information and a service platform to allow date from a variety of sources that could be accessed on demand. PG aims to improve and support decision devising while also increasing internal and external peoples access to acquaintance and information (Mari, 2008).There is no particular person who drives the change but the impetus for implementation of online workspace systems lies on the necessity to tap virtual working opportunities while also reducing workload due to web-based space and chargeback reports. PG realizes that to harbour smarter working practices, there is the need for a fully integrated web-ba sed facilities management environment. SOA underpins an online portal that will aggregate business information for PG 32, 000 managers. 6. Information engineering science in PGPG business managers commit to meeting profit goals, market share goals, and volume goals. PG trying to develop a mirror program in IT with equivalent measures. Instead of shares, PG have service levels instead of volume, they have value creation. It is very numerical, very measurable. Our scorecard is numbers. We even give our internal IT customers a sales booklet. Its a great identity builder. At the end of the year, you can say and show that you did it or you didnt do it. We have a business manager model indoors the company that really works, so IT is interest it.7. PG online StoreHow and where to distribute its products is one of the major decisions facing nearly all product marketers. Procter Gamble is dipping its toe into the online selling channel. While this is identified as only being a research l ab intended to help PG learn more about consumer buying behavior, it nevertheless has to be making some retailers wonder what is next. The site will launch in the jump off and is worth watching.8. PG E-NotebookProctor Gamble reinvent the process of invention within the company with an Electronic Lab Notebook system that went live within its research development organization at the end of February. Although online data tracking for researchers is not new, particularly within some specialties such as pharmaceuticals, PG challenge was to devise a system that encompasses the diversity of its research, which includes some drug development but also efforts to find a sudsier soap or a more absorbent diaper.9. ConclusionsAs a consumer goods manufacturer, PG seize every opportunity that came their way most especially in placing emphasis on the persona of technology is further brand building, innovations and process advancements. Expanding technical capacity diminish the duplication and inefficiency though IT is considered to be a cost. In optimizing the business, PG shift its culture from a technology-based to solutions-based company. The paradox though is on using IT systems and processes and arriving at the solutions. In realigning the PG approach, the company run as business whereby the changes is experienced on being a cost center where the focus is only on cost reduction to (cost, service levels, value creation and service management. Virtualization, personalization and real-time decision-making through corporate portal, ECM and online workspace systems are the main strategies.Strategic analysis has allowed us to understand the underlying objectives of change were much necessary on time. The death penalty of change is took time but PG took the competitive advantage which he has reward. The assumptions depend on the learning about the firm accounting practices, about its strategic choices and from the ratio analysis.