Posts filed under ‘Cost Reduction’

Company Case Study: New P&G CEO Bob McDonald on How to Improve Lives for People Who Cannot Afford Products

Here is a great case study example of how P&G  found a way to improve lives and save water for consumers in the  Philippines with the innovation of a product called Downy Single Rinse:

bob_mcdonaldFrom Forbes: On the Call: P&G CEO Bob McDonald

Associated Press, 08.05.09,

“The Procter & Gamble Co. uses a slogan that its consumer products touch and improve lives. Traditionally, that’s meant with “new and improved” innovations of Tide detergent and Crest toothpaste and other products.

But the company is pushing to increase sales in developing countries where per capita incomes are far below U.S. consumers, in a global recession. Bob McDonald, who took over July 1 as CEO, discussed the challenge in P&G’s fourth-quarter earnings conference call with analysts.

QUESTION:

I know you want to change lives, but what if people can’t afford to change their lives?

RESPONSE:

One of the things we’ve learned is that, in order to improve the lives of people that tend to be toward the bottom of the economic pyramid, you have to innovate for the best consumer experience for those people. It’s not a matter of trickling down higher-tier technology.

A great example of that is Downy Single Rinse, which we began developing in the Philippines some years ago. This was an opportunity for Filipino consumers who rinse their clothes five times with clear water in order to get rid of the soap, to use a product that added fragrance, some degree of softness, but also, importantly, sequestered the suds that were in the water and allowed them to go from five rinses to one.

And basically, the product pays for itself because of the water that they save.”

August 11, 2009 at 12:39 pm 1 comment

Personal Productivity

Personal productivity is something toward which we all strive. We want to be able to accomplish more in a shorter time span and focus longer so we can strategize and implement better. We want to rid ourselves of all the small distractions and time-wasters that always seem to add up to more than we think. Before we know it, it’s 2 pm and we haven’t accomplished half of what we needed to that day.

 Those of you wishing there were 25 hours in the day should listen up, because personal productivity is attainable. All it requires is a mental shift and change in daily behaviors and habits. Sound difficult? There is a simple method to obtain it if one is armed with an open-to-change attitude.

When Bonnie Curtis, Vice President of Global Oral Care at Procter & Gamble, charged her team the task of eliminating one hour per day of distraction and inefficiency during the merger with Gillette, she knew she was not assigning an easy task. Changing behaviors is something that takes time and dedicated repetition.

Curtis knew she wanted to change her team, but she also realized that she wanted to change how she personally worked within her team. For her, it was more than eliminating one hour of inefficiency per day. She took a look inside and objectively observed her actions and methods for work.

She wasn’t being as effective, she noted, if she held a grudge toward a person or kept a mental tally of errors. Her personal barrier against a colleague would prevent her from moving forward on a project or even talking to the person.

Curtis was also spending less time with her family. She consistently missed dinner, was absent at important sporting games and events for her children, and was distracted on the weekend. She wanted to be more present with her family and she knew something needed to change, which was Curtis’ first step in the right direction. By forming an awareness around what needs to be done, she was on her way toward personal change.

Curtis needed to release any tension she felt about her current state so she could reach her personal ideal future state: an 8-5 day that allowed her time with her family in the evenings and during the weekends. She needed to bridge the gap between her current state and ideal state. Once she formed an awareness around these dormant grudges, Curtis plowed forward and was able to work more effectively.

She replaced her personal barriers with optimism and the idea that she is a bold change leader, able to move her team forward but still keep her personal boundaries more intact. She built upon her own inner tenacity and launched forward, running herself through the Bright Side model anytime she needed to rid herself of barriers and distractions.

What about you? What will it take for you to rid yourself of personal distractions and inefficiencies?

The key to remember here: form an awareness on your current state, release any tension, replace it with the ideal, future state, and build upon it so that your change is sustainable and real.

-Shannon

July 17, 2009 at 4:33 pm Leave a comment

Dr. Deming’s & Driving Out Fear

The number one cause of fear in this day and age is the pace of change. There are more products released in any given month today than there were in an entire year – fifteen years ago. Today’s Americans are always on the run: we can’t stop checking our BlackBerrys or iPhones. To remain competitive and innovative, companies need to sell to a larger audience and publicize their brand more so they don’t fall through the cracks. Trying to appeal to more consumers has led to globalization.

 
So the pace of change engenders fear. But isn’t fear something that all companies, American workers, and professionals have to deal with to be successful and rise to the top? Not necessarily. Since fear is a learned behavior, you can unlearn it.
 
 
Using the Bright Side model, it is possible unlearn the fears, distractions, and barriers that we encounter on a day-to-day basis (on a personal, team, or organizational level) – release them, replace them with positive habits, and then build upon those new habits for accelerated business results.
 
Dr. W. Edwards Deming, the Father of Quality, was an early proponent of Bright Side and its Founder, Chairman and CEO, Donna Rae Smith. Deming, a renowned statistician perhaps best known for his work in Japan during the 1950’s, layed out his business philosophy in his 14 Points – one of which, is “drive out fear so that everyone may work more effectively for the company.” This maxim is a key compenent of Bright Side’s work today.
 
Deming saw and understood the crippling effects of fear on an organization’s productivity and well-being. He understood that fear causes employees’ work to suffer. Bright Side’s system is a method to release that fear so that organizations can more effectively reach their bottom lines.
 

For example, Bright Side worked with Procter & Gamble, more specifically the Global Oral Care, during its acquisition of Gillette in 2005. P&G had just acquired Gillette and had vowed to take the best of both organizations, bundle it all together, and then sell it for a stronger P&G. There was a lot of fear and mistrust swirling from both organizations about the acquisition. Bright Side executives knew that in order to make this merger successful, they needed to drive that fear out so that the P&G investment could be leveraged – from a personal, team and organizational standpoint.

Using the Bright Side model and working with leaders from both teams, Bright Side was able to foster one of the most successful mergers P&G had ever seen – all measured by extraordinary and robust business results and outcomes.

Take a look:

Procter & Gamble Global Oral Care Team Results
The post-integrated teams and leadership exceeded work objectives and delivered ahead of schedule!
•Doubled the size of the business
•Delivered >100% of committed cost savings
•Improved service levels
•A 98% retention of associates who relocated from Gillette
•A 50% improvement on the cultural assessment tracking leadership behaviors of risk-taking, transparency, inclusion

 

Procter & Gamble Global Oral Care Team Results
•#1 in key business metrics for high growth categories in P&G
•Ranked first in Engineering in three of the four critical drivers for retention
•Launched unprecedented number of initiatives with excellence, on time
•On track to deliver personal productivity improvement of a minimum of 1.0 hour per day
So is it possible to drive out fear in an organization for accelerated business results? Most definitely, and the P&G/ Gillette merger is just one example of how driving out that fear in an organization, however invisible it is, can lead to accelerated business outcomes.

Is this possible for you and your organization? Why or why not?

 

 

 

 

June 15, 2009 at 7:46 pm 1 comment


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