PROCTER & GAMBLE GLOBAL BUSINESS SERVICES: A CASE STUDY
A Time to Make a Change at P&G
Some of the signs and signals experienced by an organization which indicates that it is time to make a change are: experiencing rapid growth or a decline in growth, a decline in productivity, a decline in resources, stakeholder pressures on management, environmental crises, sociopolitical influences on the organization, environmental turbulence and changes to customer expectations and behavior. The highly competitive global marketplace where Procter & Gamble operates is forcing the company to continuously do more with less. Advancements in technology, the pace of competition, globalization, the need to control cost and the increased efficiency coupled with the increasing customer expectations mean that the organization has to evolve and regenerate in order to survive. This is all the more important because if business has to know anything about the future, it is that it will be different from the present. Whatever is, will change. There's no way to avoid it. But it can be managed. The inevitable changes in the organization will take P&G to a higher level, and will bring them to new avenues opened up for growth, in the face of the increasingly boundless global market that the nature of the consumer goods business is mercilessly made to put up with. Communicating Change to Employees
Within the popular management literature, John Kotter (1996) has put forward an eight-stage model on how to successfully manage change. This is very applicable to the situation in P&G and comprises of: (1) communicating a sense of urgency; (2) creating a vision; (3) communicating the vision; (4) forming a powerful coalition; (5) empowering others to act; (6) planning short-term wins; (7) consolidating change and (8) institutionalizing new approaches. He argues that change leaders should communicate their vision in many different forums over and over again if they wish to develop an...
Cited: Dyer, D., Dalzell, F. & Olegario, R. (2004). Rising Tide: Lessons from 165 Years of Brand Building at Procter & Gamble. Massachusetts: Harvard Business School Publishing.
Kotter, J. (1996) Leading Change. Harvard: Harvard Business School Press.
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