Based on the selected case study

Based on the selected case study, the Procter & Gamble Company (P&G) is an American multi-national consumer goods corporation and one of the most successful companies in the world. It specializes and diversified into wide range of personal health, hygiene products, beauty and personal care.
In 2000, the Procter & Gamble Company (P&G) was suffered some serious crises whilst announced A. G. Lafley to appoint CEO and Chairman of the company. The company lost $50 billion in market capitalization and declined 50 percent of stock price under the leadership of Durk Jager whose tenure lasted for only 1 year and 5 months. In addition, the company was struggling with morale problems. After A. G. Lafley was appointed as CEO, he has led the company to remarkable turnaround in year 2000. This is because the leadership of Lafley is totally different compared to Jager. Jager’s personality is gruff and confrontational whereas the Lafley’s personality is calm, easygoing and soft-spoken individual. Lafley had built trust with employees while Jager had questioned the ability of employees. These are the differences in leadership style between Jager and Lafley.
Since the company was suffered some serious problems, Lafley decide to turn P&G into a learning organization. There are some actions to support his decision such as setting a goal to the flow of knowledge throughout the company. Besides that, Lafley think that listening able to facilitate the flow of knowledge in an organization than lecturing. Next, Lafley encourage a regular interactions between the managers and non-managers to learn from each other in order to obtain knowledge on the human dimension of understanding customers. Furthermore, he also transformed the 11th floor senior executives plush office and moved 11 of the executives closer to the people they lead. Lastly, Lafley had organized different kinds of programs to recognize and reward the employees and he believes they are at the core of the company’s success. These actions was implemented in order to remove the obstacles that prevented the knowledge the lifeblood of P;G from flowing throughout the organization. Thus, Lafley was transformed P;G into a learning organization through accomplishing these number of things.
Lafley is known as a consensus builder because of his personality of down-to-earth, direct and decisive. Lafley was appointed Chief Executive Magazine’s CEO in year 2006 is because of his deep commitment to serving customers. He then joined a list of notable CEOs such as Jack Welch of GE, Herb Kelleher of Southwest Airlines, Andy Grove of Intel, and Bill Gates of Microsoft to accept the honor. In 2007, the P&G annual report had reported that the annual sales had been doubled from $30 billion to $76 billion over the past 6 years. Next, P&G’s market capitalization grown to over $200 billion and making it become the thirteenth most valuable firm in the world and the seventh most valuable company in the United States. Lafley had been asked what criteria has contributed to P;G’s impressive turnaround and sustainable growth. Lastly, the major 8 key factors that focus and highlighted by Lafley are goals, strategies, purpose and values, strengths, innovation, organizational culture, leadership and people, and culture.


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