Question: (Asap) Never used answer, please, there are 9 questions but, I wrote them separately according to Chegg policies. I always give my vote as long
(Asap) Never used answer, please, there are 9 questions but, I wrote them separately according to Chegg policies. I always give my vote as long as they are unique answers, thanks in advance.
CASE STUDY: CEO A.G. LAFLEY'S P&G TRANSFORMATION
In 2000 A.G. Lafley was appointed CEO and Chairman of the Board of Procter & Gamble at a time when the company was going through a serious crisis. Under the leadership of former CEO Durk Jager, whose stay lasted only 17 months (the shortest in P&G's 171-year history), the company lost $50 billion in market capitalization, its share price declined 50 percent, half of its brands lost market share and the company struggled with morale issues. Since 2000, Lafley has led P&G toward a complete and impressive change. The company has delivered consistent double-digit earnings per share growth, grown its market capitalization to more than $200 billion, and diversified into beauty and personal care products with mega acquisitions of Wella and Gillette. Lafley's leadership style is a stark contrast to Jager's. While he had questioned the competence of numerous P&G employees, Lafley assured them that he knew they were capable of restoring marketing power to its former greatness. While Jager has been described as brusque and confrontational, Lafley is tirelessly inquisitive in a calm and respectful way that builds trust with employees. The most striking aspect of Lafley's leadership approach has been his decision to switch to P&G to be a learning organization. To accomplish this, he instituted several things:
- Eset a goal of improving the flow of knowledge throughout P&G.
- He emphasized listening more than sermons, listening is what facilitates the flow of knowledge in an organization, and this is one of the elements in a compromising work environment that opens up productivity and organizational innovation.
- Lafley requires regular interactions between managers and those who are not. in his opinion, having employees learn from others helps them focus on the human dimension of understanding consumers.
- at P&G's corporate offices, Lafley transformed the 11th floor where executives had their sumptuous offices. the art was donated to a museum, the oak walls were removed, and 11 of the executives changed places to be closer to the people they led.
- Lafley believes employees at P&G are at the center of the company's success. To prove his point, he has instituted a variety of programs to tangibly recognize and reward employees on the P&G front line.
Lafley's order to "demolish the walls" on P&G's executive floor was pragmatic and symbolic. These actions signaled his intention to tear down "the walls" that prevented knowledge, the life flow of all organizations, from flowing along P&G. Part of that symbolism was P&G's transformation into a team culture. Lafley has had a long-standing reputation for delegating responsibility. He is known for being a consensus builder. His personality is that of a soft-spoken, pleasant and even-handed individual. He is described as calm, quiet, direct, decisive and tough. It was because of Lafley's deep commitment to serving customers that he was named CEO of the Year in Chief Executive Magazine in 2006. In accepting the recognition, Lafley joined a list of notable CEOs such as GE's Jack Welch, Intel's Andy Grove, Southwest Airlines' Herb Kelleher and Microsoft's Bill Gates.123 In P&G's 2007 annual report, Lafley reminded shareholders that over the past six years, annual sales more than doubled from $30 billion to $76 billion; the number of brands with more than $1 billion in annual sales was also more than doubled to a total of 23 brands; the number of brands with annual sales between $500 million and $1 billion was more than quadrupled to a total of 18 brands; the number of retail customers with $1 billion or more in annual sales with P&G jumped from two to seven; 43 billion in annual sales with P&G jumped from two to seven; 43 billion in annual sales. $50 billion in net income and $50 billion in free cash flow was generated and P&G's market capitalization increased to more than $200 billion, making it the seventh and thirteenth most valuable companies in the United States and the world, respectively. Asked what has contributed to P&G's amazing change and sustained growth, Lafley pointed to P&G's focus on eight key factors: purpose and values, goals, strategies, strengths, organizational structure.
Support your answers to the following questions with case- and book-specific information or some other information you obtain from the Internet or other sources.
3) On what actions and decisions did Lafley base his efforts to transform P&G into a learnable, knowledge-oriented organization?
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