Proctor and Gamble Case Study
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 referred 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 off fostered Internal competition between brands as well as protecting Information from competitors. 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 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 many. A primary goal was to increase the pace of product creation, marketing, and sales. The team analyzed existing products, technologies, and goals. The recommendation was to encourage cross-sector technology based upon the level of intellectual knowledge held by longer employees.
The most critical decision was the goal of making the innovation process deliberately methodical, predictable, and proficient. The new system redefined innovation and creativity as proactive processes rather than reactive or happy accidents. The Corporate New Ventures (CNN) group was formed from current employees to champion these goals. This rope involved promotion incentives for its members and was to foster employee ownership of ideas and paradigm shifts for product development. The group would work within an encouraging and physically comfortable environment forming a team philosophy for gathering new product ideas.
The team was responsible for systematically defining goals and all the Information needed to achieve those goals. The CNN team work environment was a distinct change from the rest of P. It Included an open floor plan with no office doors and comfortable communal seating, easy access to beverages and foods, and most importantly, casual access to other employees. I Nils social environment was conducive to ten snaring AT Ideas, open communication, and developing a mutual vision of objective goals.
This proactive and cooperative idea-sharing changed workforce management and employee relationships. P was successful in adopting and adapting a new workplace prototype by utilizing objective workplace data, and by promoting openness to experimentation with creativity and innovation.
Employees were given autonomy to work on projects that were interesting to them and that encouraged them to work to their strengths. Conflicts were addressed openly and proactively. The systematic evaluation standards fostered a cooperative and inventive work environment.
P executives were willing to risk substantial time and money to experiment with how to best implement an original work culture of innovation. The risk appears to have succeeded.
Risk is an element of entrepreneurship, but the executives were also willing to allow employees to share in the decision-making process. This risk- taking allowed creative opportunities to flourish. The prospect for the employees to develop standards, guidelines, and priorities seemed to instill a greater confidence to eve forward to create more abilities for solid research and development of quality products.
This is a positive example how innovation, such as allowing for experimentation and creativity to develop from the bottom up in an organization can have a great impact on a company. It can be challenging as a manager to trust that all employees are focused and motivated to succeed in a cooperative environment, but the results can also be powerful.
It can also be challenging to guide the creative process without attempting to lead, but if employees are motivated to work to their strengths, it can be a win-win situation for all.