Managing Cultural Changes at Procter & Gamble

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Managing Cultural Changes at Procter & Gamble

In September 1998, the Procter & Gamble Company, Cincinnati, USA, announced a major global structural change programme, “Organisation 2005”. The mission of the programme was to take P & G’s global turnover from $ 38 billion to $ 70 billion by 2005. The objective was to raise profitability by changing the work culture at P & G. The change drivers identified were the attributes of Stretch, Innovation, and Speed (SIS). The structural changes to be initiated included setting up of four global business units based on product lines, eight market development organizations based on regions, and one global business service centre. A 14-member cross-functional team named as the Culture Team was set up to oversee the management of change.

The achievements of the Organisation 2005 programme were to be seen in terms of: 1. changing P & G from being a misaligned organisation to one aligned on common goals, with trust as the foundation 2. evolve from an intense inspection-led organisation where everything is kept under control to one that is a team-collaborating unit 3. shift from a risk-avoiding culture to a stretch-taking one 4. move from running down on complexities to taking on challenges 5. heave from a slow-moving organisation to one which hurtles through stretch, innovation and speed to breakthrough goals

As the news of Organisation 2005 programme reached the P & G Hygiene and Health Care headquarter at Mumbai, India, there was a lot of apprehension among the employees. Uncertainty and suspicion arose with regard to their own future and related to the continued existence of the business division they worked in. It took about a year for the apprehensions to fade away and be replaced by clarity and confidence.

P & G, India adopted the global motto of SIS of its parent. A cultural team was set up to communicate the goals of SIS to the employees and to seek their involvement...
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