Leadership Training and Development at P&G

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Case Details:

Case Code : LDEN071
Case Length : 18 Pages
Period : 1999-2010
Pub Date : 2010
Teaching Note : Available
Organization : P&G Inc.
Industry : FMCG
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

In 1837, William Procter, a candle maker, and James Gamble, a soap maker, formed a partnership called Procter & Gamble to manufacture and sell soaps and candles. The business grew gradually over the years and by 1860, it had achieved annual sales of more than US$ 1 million...

The Entry of Lafley

By late 1999, it became evident that the restructuring exercise was a failure. Industry analysts pointed out that Jager had not only introduced expensive new products but had also mismanaged existing brands at the same time...

Developing Leaders at P&G

P&G placed emphasis on developing the leadership capability of its employees. The process of identifying potential leaders at the company had commenced way back in 1947, under the auspices of the then CEO Richard “Red” Deupree who said, “If you leave us our buildings and our brands but take away our people, the company will fail...

"Values-Based" Leadership

Lafley believed that a value system that included integrity and trust were compulsory for a leader. The P&G board, Lafley, and Bill Conaty, the longtime head of HR at GE (who was hired by Lafley as a consultant in 2008), went on to develop a 10-point list of qualities that a CEO required to have...

Risk of Insularity?

P&G with its management continuity and practice of promoting from within, had had only 12 CEOs in its 172-year history and all of them were insiders, including two family members. Industry observers said that most of the P&G employees had started their careers at the company, socialized solely with co-workers, and continued to stay put at the company throughout their careers...

The Outcome

Over the decades, P&G received several accolades for its efforts to nurture leadership at the company. In addition, it received several honors for its business practices (See Exhibit V for the accolades received by P&G)...

Exhibits

Exhibit I: Some Products and Brands of P&G
Exhibit II: Some Corporate Leaders Who had Worked at P&G
Exhibit III: Assessment Process at P&G
Exhibit IV: Ten Defining Characteristics of a “Values-based Leader”
Exhibit V: Accolades Received by P&G as of 2009


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