Organization 2005: Case study of Procter & Gamble 1

Table of Contents

In this case study of P&G Organization 2005, you may read about my remarks regarding globalization, diversity, ethics and technology. If you have been enjoying my testimonials on additional case studies, drop a comment and let me know your thoughts and perhaps suggest a case study you would like me to review.

An Evaluation of the possibility of transformation in the business

Barriers to change

According to one of the board supervisors, Lafley has led practically every key part of the company’s business with differentiation and so, I expect him to have a complete grasp of the situation at hand, possess a larger perspective in his way and manner of administration since he has a good understanding of the dynamics and culture of the business.

He should be able to decipher what barriers he would be facing by throwing his head back to the times when he used to be a supervisor and the type of issues that were barriers in implementing business policies. He should Have the Ability to acknowledge that these obstacles do exist and be proactive enough to engage their minds in ways they will become prepared to go on the journey of”shift”Triggers of alter

He needs to know the direction the pressure to change will be coming from. Sometimes, some organizations don’t actually require a lot of restructuring as P&G, but are often influenced by what they’ve seen others do, and without appropriate diagnosis, are moved to do same.

Very often we see that organizations are pressured to move for changes not because they want a much better working environment, greater relaxation for employees, correct service delivery or other motives, but are always propelled by decline in gain or the desire to earn additional profits.He wants to ascertain the desire for change isn’t politically driven and that no one is influencing the best management to make these changes for personal gratification.Amount of dissatisfaction

Lafley should find out if the team along with the top management are in sync with regard to the demand for a change. He will not have the capacity to respond to the challenges confronting him if he’s not aware of the participation of the key players in the organization (the staff and direction ) at the project of shift.

Some sections may be doing so well that the only change they may need will be added incentives to boost their degree of motivation, whereas others may need a total overhauling form workers to supervisors. Before complicated projects such as this is completed, he needs to understand if they like the present situation and what they would rather want added or removed. Common vision, culture and mission

He ought to be aware of the mutual values, aims of the organization and also expectations of their staff from management and that of their management form the staff.

He should also be able to take these principles into consideration throughout the design of the plans:”We are strategically focused in our work”.”Innovation is the basis of our success”.”We are focused”.”Mutual interdependency is a method of life.”These principle should become a guide for him while driving any initiative.Structure and procedures

He should asses whether the kind of change he intends to execute fits the business. He should not introduce technology that will not fit into the smooth running of their organization. He must ensure that the implementation of this program does not cause more issues than were existing.


He must ensure that the skill set of every worker is assessed to ensure that he doesn’t implement a plan and thereafter lack the individual resource to push the jobs. Some people today develop ideas with just them in perspective, not being conscious of the fact that they need knowledgeable and competent people to execute the plans.

Aligning behavior

While designing any new program targeted at altering work procedure or construction, he has to set up a reward system to serve as an incentive to promote good integrity and celebrate mile rock achievements.Capacity-building

He wants to renovate his residence, must firstly, count the cost. He has to research the account books to determine whether the company has resources to handle the sort of change he wishes to execute.

Organization 2005: Direction

Last, but not least, leadership. He might have enough employees to implement the change, but he needs to be certain he also has the right amount and caliber of leaders situated in each department (both positional and opinion leaders) of their organisation. The Comprehension of the craft of persuasion and how to employ the strategy

The art of persuasion is just one critically needed for Lafley if he wishes to succeed. Often times even when people understand that they have a particular demand for something, you still see them needing an extra push or reasons why they will need to do so. Lafley should ensure that surveys are completed, overall meetings held, and interactions had to persuade all to see the demand for change and discover their areas within the frame of the project.

Lately, the Nigerian bank system embarked on an exercise to get everybody who owns an account do a confirmation with the intent of linking all accounts owned by people and organizations. Each account holder will have a exceptional number called”BVN” in the conclusion of the exercise. The banks gave a 3-month note and people refused going until the previous day, and the entire banks were flooded.

How to effectively communicate his schedule for everybody to comprehend and see themselves as the owners of this undertaking.

Every available means of communication ought to be employed in communicating the plan for change. He should bear in mind that his job won’t be achieved until it’s well understood. He should be open to interesting questions from everyone about his plans and ensure that the point of communication is maintained from leading down.

Organization 2005: Useful knowledge needed to Manage Global Development and related Change Processes

Electricity, conflict resolution and teamwork are typical problems associated with international growth and change procedures.


The executive staff needs to understand and possess previous knowledge about who their competitions are, how they operate, their percentage share of their current market, their own political affiliations from the countries where they operate and potential internal electricity tussle among employees for either promotions or appraisals. A proper knowledge of the forces which are in any marketplace have a means of influencing prices, supply and demand.

Once a brand new plan is drawn, it is extremely essential that the team knows the impact power will have on their international expansion in goods, services, staff, places and finances. They will also have to know the results of power in their processes of change. As an example it is not possible for them to think of establishing a beacon factory in a Muslim dominated surroundings since this will negatively affect the growth and development of their enterprise.

Conflicts are bound to happen where ever human beings are found and most of these problems are as a consequence of communicating strategy. Using their plan to go international, they ought to understand that with every country, is not the same group of conflicts as a result of unique cultures and customs.

Their strategies should take into consideration the unique differences that exist within each country or area. Internal battles are also bound to occur from time to time within the ranks and files of their organization, which needs to be taken into account while implementing plans for international expansion. The executive team needs to have a proper comprehension of the kind of situations that lead to conflicts both externally and internally.


A good team is of value both to the staff and the global increase of the organization and the wellbeing of the staff. Good knowledge of who the workers are is required and a concerted effort should be made to make sure that a proper working environment is vital in achieving a strong worldwide organization. From time to time, trainings must be organized for them to enhance working relationship and maintain stability within the ranks and file.

Organization 2005: Effective (change) Communication and Powerful (change) Leadership

Having an organization as big as Procter & Gamble, effective leadership and communication are crucial to the successful growth of almost any organization. An effective communication strategy is needed to convey the vision and mission of the organization to the workers. A communication channel has to be made to make sure that data dissemination in the very best gets to the bottom of the pyramid in record time. Besides having a communication desk, supervisors should also be responsible for information dissemination.Assembling or developing a global organization requires effective and visionary leadership.

Leaders of Procter & Gamble should be well informed with real time information on international trends to help contour how and fashion decisions are taken. They should make sure that they identify leaders among the team, not necessarily just from the best management; this will enhance the working relationship and influence the attainment of the mission and vision.

Organization 2005: Courses on Organizational Change

It is very important to say that the process of change was intended for and was not an accident. They studied their plan and ensured while they kept an eye on their final goal, they were cautious enough to integrate everyone concerned in the preparation process. They made provision for the plan to be executed in stages and implemented a restructuring framework to accommodate their proposed plan. It is important to also note that the plan was not hampered by Durk Dager’s departure from the helm of affairs. This shows that everybody in the best management at least had a fantastic grip on the project.”

An important method of describing the Procter & Gamble civilization is through its basic corporate fundamentals. Procter & Gamble professes powerful and unrelenting dedication to its workers. These fundamental principles get an appreciation for diversity, regardless of the character of differences that people bring to the workplace.

These principles also signify a dedication to excellence – on an individual level in addition to a corporate level – and also to creating the personal and organizational capabil¬ities to achieve that excellence.”The excerpt above also shows a strong commitment to the growth, and growth of Organization 2005: My view of the element of – rate – related to the four structural pillars”

The GBUs and MDOs empower P&G “to build major global brands through powerful programs based on local understanding.” In encouraging the GBUs and MDOs, Procter & Gamble also seeks to minimize administrative costs and pursue continuous improvement. These service activities are carried out through the GBS facilities, which combine and streamline operations, and throughout the CFs, which aim to maintain P&G’s leadership within the businesses in which it engages.

“By analyzing the above excerpt, an individual can infer that in addition to the decrease in administrative expenses, the restructuring will favorably improve the rate at which tasks have been completed due to the reduction in bureaucracy and other bottle necks which hamper the timeliness with which work is done. Having a better structure, operations are better compact with more emphasis placed on productivity, speed, leadership and a robust working environment. Then deal with change process(es) at hand, to incorporate the usage of the”quick checklist for conversion potential”, as well as the communications class materials. Please also analyse planned and unplanned aspects of/in change if these were struck. Do people in the business understand the need to change?

For a long time, P&G has tried to globalize their operations but haven’t successfully done this until the”company 2005″ project. This shows that to a large extent, they have always been able to change how things are done but have lacked the right framework to flip things around.Triggers of change

The requirement to restructure could have P&G could have been engineered with their opponents and market forces. Learning how to play the piano with the wrong fingering can help one make some fantastic noise but at the long run, an individual would have to learn the right fingering in other to perform many scales as quickly as possible.Degree of dissatisfaction

They did not need to await something to breakdown before fixing it.

Organization 2005: Common vision, culture and mission

P&G have proven that they are committed to the welfare, improvement and development of their employees to the extent it is well spelt out as one of their guiding principles. In addition they have a vision of working globally and implementing locally to be a significant influence in the way their products are consumed also.

The statement below demonstrates their commitment to culture.”Based on John Pepper, P&G workers are deeply committed to high standards of functionality and are willing to change everything but the com-pany’s core values and principles to attain excellence. He states,”I see our folks working wholeheartedly and col¬laboratively, free to take risks, with great pride and a tremendous sense of own¬ership, taking great satisfaction from developing and using their skills to the complete [est].”

Organization 2005: Structure and procedures

The structure existing within P&G is that with the exit of a primary officer, whatever endeavor being pursued does not suffer with the transition process. Additionally they have a procedure with provides enough room for communicating on the projects at hand. Ample time is provided for the process to gradually evolve until it’s taken form.It is evident that P&G comes with an array of very capable leaders effective at implementing the”company 2005″.

This may be viewed in the way and manner the four pillars came to be and how the same leaders were made to manage the newest units. Throughout the restructuring, it was not mentioned that they employed a new leader or referenced a brand fresh batch of work force to help execute the project.

P&G Organization 2005: Aligning behaviour

This can be found from the excerpt below by which a senior member of the organization says something remarkable about him. He’s long been viewed as a prospective P&G chief executive. He’s led virtually every essential area of the organization’s business with distinction.

As a international operating organization with 140 products, and presence in most countries, an individual would find it hard to state they didn’t have enough resources to set out on a entire overhaul of their organization.

P&G 2005: Conclusion

Last but not least, the sort of direction, quality and amount of leaders required for this project is located within P&G. They did not employ any professional to aid them during this undertaking.

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