"P&G: Teaching an Old Dog New Tricks"
Fortune
May 31, 2004, pp. 167-184
Procter & Gamble's CEO A. G. Lafley has reinvigorated P&G's model for innovation. Here are the key elements he has emphasized:
- Crank up one-on-one consumer research—Marketers now spend three times as much time as previously with consumers in their homes, watching the way products are used
- Expand what each brand does—Broader missions for each brand have been created
- Get employees from different divisions to exchange ideas—An internal R&D website and Communities of Practice have been developed
- Reach outside for ideas—More ideas are being brought in from entrepreneurs, and P&G is also working more closely with other companies
- Stop testing so much—Getting the product to market sooner is key
- Give designers more power—Focus on the customer's experience as well as the product itself
- Cater to developing markets—This includes making smarter, cheaper products and asking consumers more what they want
- Know what not to do—Fat bonuses for innovation are not offered, and "stars" are not hired from outside.
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