answer Q

Developing Talent at Procter and Gamble Consumer goods "If I get on a plane next week and it goes down, there will be somebody in this seat the next morning," - A.G. Lafley, P&G's CEO as quoted in Fortune magazine. Consumer goods conglomerate P&G has had a long, successful history based on hiring at the entry level and developing and promoting its managers and executives from within. The key to this success is the organization's Build from Within program, which tracks the performance of every manager within the organization relative to his or her potential and next area for development. Each of the organization's top 50 jobs consistently has three internal replacement candidates lined up and ready to assume responsibility. Loyalty of employees is essential to ensuring the success of such a program, and P&G's history of grooming and training its employees promotes such loyalty. Fewer than 5% of the organization's non-entry-level hires come from outside the organization, and its rigorous and competitive screening process, in which fewer than 5 percent of applicants are hired, ensures that P&G hires those best suited for the organization and its culture. Loyalty of employees is paramount to ensuring the success of such a program, and P&G's history of grooming and training its employees promotes such loyalty. Fewer than 5% of the organization's non-entry- level hires come from outside the organization, and its rigorous and competitive screening process, in which fewer than 5 percent of applicants are hired, ensures that P&G hires those best suited for the organization and its culture. P&G's 138,000 employees are tracked via monthly and annual performance reviews in which managers discuss business goals, personal goals, and how they have trained others to assume responsibility. The latter is a key factor in the upward mobility of any manager. At P&G, a business school graduate is recruited at an entry level position. This position offers him/her a major window of opportunity for becoming what's known in the company as a Proctoid (less than 5% of hires come from the outside at a later stage). Proctoids discuss their business goals, their ideal next job, and what they've done to train others during monthly and annual talent review sessions. The recruits select a career track depending on his/her goals and P&G's needs. They are then trained to work in different countries and businesses. This helps build deep bench strength. So when a position is open, P&G has a pool of employees who are ready to move in to the new position in a particular country or region. According to Lafley, "We can fill a spot in an hour, that's the beauty of the system. P&G has a training center near to the CEO Lafley's office where all executives teach and hold weeklong colleges" for employees entering new levels. An executive's willingness to train others ultimately determines who advances. Moheet Nagrath, head of human resources at P&G believes, "If your direct reports aren't ready, neither are you. A manager who isn't good at developing others doesn't attract the best talent (to be on his team). Internal reputation is crucial." Case Discussion Questions 1. Explain what is succession planning and discuss how do P&G implement succession planning strategy? 2. Based on the information provided, what do you think is the advantages and success factors for the Build from Within" program? 3. What do you think is the disadvantages for the program