Proctor and Gamble Case Study
P&G Case Study
10/28/09
Procter & Gamble (P&G) has a lengthy history of providing a value-driven, ethical workplace culture. Product globalization created threatening issues to their success during the early 1990s. It was determined by company leadership in the mid-90s, that it was necessary to change the workplace product development model in order to remain highly competitive in the global economy. P&G had a reputation of fair treatment of employees, including being one of the first companies to introduce profit sharing, employee stock ownership, and proactive employee retention and preferred internal promotions. Also, the company was respected for being innovative in product research and development by utilizing the latest technologies and focusing on the consumer. However, the business was structured by brands and the information and technology associated with them were individually organized and created silos of information. This information wasn’t openly shared because of a fostered internal competition between brands as well as protecting information from competitors. P&G had sales goals for its products and newer products were not meeting these goals. They had been focusing on incremental innovations with existing products and not innovative new products. Company leaders began to realize that maintaining current innovation/creation product goals were not going to be productive in meeting the yearly sales goals. The result of this discovery began the process for creating a new model to foster more rapid innovation within the company. This would lead to marketing new products to consumers more quickly, and also accelerate revenue and profit. P&G wanted to meet these goals while retaining their reputation for quality products. The Innovation Leadership Team was created to explore how to construct the new innovation paradigm within the company. A primary goal was to increase the pace of product creation, marketing, and sales.
10/28/09
Procter & Gamble (P&G) has a lengthy history of providing a value-driven, ethical workplace culture. Product globalization created threatening issues to their success during the early 1990s. It was determined by company leadership in the mid-90s, that it was necessary to change the workplace product development model in order to remain highly competitive in the global economy. P&G had a reputation of fair treatment of employees, including being one of the first companies to introduce profit sharing, employee stock ownership, and proactive employee retention and preferred internal promotions. Also, the company was respected for being innovative in product research and development by utilizing the latest technologies and focusing on the consumer. However, the business was structured by brands and the information and technology associated with them were individually organized and created silos of information. This information wasn’t openly shared because of a fostered internal competition between brands as well as protecting information from competitors. P&G had sales goals for its products and newer products were not meeting these goals. They had been focusing on incremental innovations with existing products and not innovative new products. Company leaders began to realize that maintaining current innovation/creation product goals were not going to be productive in meeting the yearly sales goals. The result of this discovery began the process for creating a new model to foster more rapid innovation within the company. This would lead to marketing new products to consumers more quickly, and also accelerate revenue and profit. P&G wanted to meet these goals while retaining their reputation for quality products. The Innovation Leadership Team was created to explore how to construct the new innovation paradigm within the company. A primary goal was to increase the pace of product creation, marketing, and sales.