Proctor and Gamble 2003 Annual Report Download - page 6

P&G
DJIA
S&P 500
Total Shareholder Return
(indexed versus July 2000)
2000 2001 2002
DJDJDJ
50
100
150
125
75
175
P&G people are
delivering the
best results this
Company has
achieved in years.
J
Global Scale. P&G has significant scale advantages. We’re the global leader in all four core
categories. We know we can leverage these scale advantages for even greater value. We have
the resources to interact with retail customers on multiple levels including finance, logistics,
marketing, shopper understanding and a wide range of services. We bring deep category
understanding with global consumer research. We create greater value through the total
supply chain by pooling knowledge, expertise and reach.
We’ve designed the new P&G organization with an eye toward these core capabilities, and are
focused more explicitly than ever on getting the greatest value from them. The restructuring
program is complete, and the new organization structure is fully implemented. We have
created an organization unlike any other in the consumer products industry – and it is
producing significant competitive advantage.
• The Global Business Units enhance speed to market. It used to take three years or more to
rollout new products around the world. We’re now able to expand an initiative worldwide in
less than 18 months – as illustrated by the recent Pantene, Head & Shoulders and Pampers
Baby Stages of Development rollouts.
• The Market Development Organizations enable us to collaborate better with customers. As
the retail industry consolidates, it’s more important to add value at multiple levels with key
customers. The multi-functional expertise of our global and local MDOs enables us to leverage
P&G’s brand portfolio and innovation capability in ways that drive retailers’ growth as well as
our own. As a result, P&G brands are growing faster with the world’s largest customers.
• Global Business Services provides best-in-class cost structures and service levels. This
organization enables P&G to leverage its global scale, and increases our ability to collaborate
with leading-edge business services partners. The recent information technology services and
facilities management agreements with Hewlett-Packard and Jones Lang LaSalle are great
examples. Partnerships like these enable us to achieve best-in-class costs that would not be
possible without the unique combination of P&G’s new organization design, global scale
and the capabilities of best-in-class partners.
As we gain experience with the new organization, we are learning it offers benefits we’ve
only begun to tap.
Inspirational Leaders, Unsung Heroes
P&G’s strategic choices, financial discipline, core strengths and unique organization structure
create a platform for growth from the core that is sustainable. This growth is being led by the
most diverse group of leaders in P&G history.
We’ve built a substantially new leadership team in the past three years. Two-thirds of the top
38 leaders are new to their present roles. They hail from 13 different countries. Half of the line
presidents are from outside the U.S. Most have worked in two or three major regions, in a
number of categories and a number of countries. Most of them have experience in developing
countries as well as developed markets. They know what it’s like to compete against well-
entrenched international and local competitors. Most important, they are inspirational leaders
deeply committed to developing and energizing the men and women in their organizations.
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