P&G’s behavioral, structural, and technological change strategies
Most organizations have implemented three common change strategies namely technological, structural, and behavioral change strategies. The case is no different from Proctor and Gamble as the company’s change strategy revolve around the aforementioned change approaches. To begin with, P&G is an innovative company and as such, the company makes use of technology to increase its production and manufacturing. For instance, P&G has increased its spending on new product innovation, manufacturing technology, and engineering. This approach is an attempt by the company to develop and launch new and innovative products in the market (Brown, 2011). Moreover, the company has invested heavily in technology. In addition, P & G no longer develop new products in-house but instead, opts to make use of new technology from third parties. The importance of technology and innovation to P & G is also supported by Brown and Anthony (2011) who note that technology has been the backbone of the company
In reference to the structural strategy, P&G has incorporated numerous changes at its corporate headquarters. For example, the company’s executives now share open offices while the offices of division presidents are located closer to their teams (Brown, 2011). According to A.G Lafley, these structural changes were incorporated in order to enhance effective communication, as well as to promote constant collaboration and teamwork (Brown, 2011).
Behavioral approach to change emphasizes the importance of better use of human resources in the organization. In the case of P&G, the CEO has ensured that the company does not alienate its employees from the change process (Brown, 2011). This is indicative of an organization that is ready to its employees in its decision making process. Moreover, the CEO gives his employees ample responsibility, in addition to communicating the vision of P&G to the staff to ensure effective change processes. Therefore, the staff at P & G feel appreciated by the management because they are always informed of any major changes within the company (Lafley, 2009). This improves employees’ commitment, motivation, and morale.
P&G’s integration of the three change strategies
Procter & Gamble has integrated all the three change strategies. While integrating the three strategies, the management always takes into account how they affect each other. For instance, division presidents are located near their teams to promote communication. The CEO also emphasizes on the need for all P&G leaders to be part of the change process (Brown, 2011). Leaders should be on the forefront of a change process because they are the major change agents in the organization. The CEO at P & G has led by example in brining about change at the organization.
P&G’s success evaluation
P&G has been successful in the global consumer goods industry and has been ranked second to Unilever Plc. The company’s success is as a result of effective leadership qualities. For example, when A.G Lafley took over as P & G’s CEO in 2000, the company was in a crisis, and he was prompted to embark on organizational change (Lafley, 2009). P & G adopted innovation in developing new products for new markets. The CEO has also emphasized on the importance of embracing change that will ensure that P & G remains relevant to the needs of emerging markets in a developing world (Brown, 2011).
Reference List
Brown, D. R. (2011). OD Intervention Strategies. In Brown, D. R. (8th Ed.). Experiential approach to organization development (pp. 181). Upper Saddle River, N.J: Pearson Education.
Brown, B & Anthony, S.D. (2011). How P&G tripled its innovation success rate: Inside the company’s new-growth factory. Harvard Business Review, 3-10.
Lafley, A. G. (2009). What Only the CEO Can Do. Harvard Business Review, 1-9.