Organizational entrepreneurship experience (P&G company)
We talked about Mr. Laughley’s recommendations and influence in maintaining innovation and organizational entrepreneurship in P&G, and today we are going to check the continuation of this story. But before starting the discussion (because you asked), I disagree that Mr. Lafley will return to P&G again in 2013 after his retirement because of the wonderful legacy he left behind.
Welcome ideas from outside sources
Previously, P&G had an introverted approach in the research and development department, but Lafley decided that 50% of the company’s innovations should be provided from external sources. Based on the estimates of the managers of this company that the speed of innovation has doubled compared to the previous decade, Lafley states that companies should take advantage of the multitude of resources they have, which is not limited to organizational resources. One of the methods they used was acquiring the ownership of their desired technologies, including the purchase of Spin Brush from its inventor in 2001. Another method is partnering with competitors, an example of which can be seen in Clorox’s collaboration to use P&G technology in manufacturing a type of packaging for food products called Gold Press and Seal. In short, P&G employees are looking for products that the company can sample in terms of functionality, such as the development of an eraser called Mr. Clean Magic, which was similar to a product produced in Japan to remove stains from walls.
Know when to stop testing.
Contrary to what employees think, putting extra effort into product optimization can lead to wasted sales opportunities. Laughley was able to reduce company-wide product delivery time from three years to eighteen months by reducing market testing time. That is, the production of the best product can be at the cost of excessive delay in the market or the loss of existing opportunities. After the popularity of Botox among the American populous generation, P&G immediately launched a product called Olay Regenerist, which was among the best examples of skin care using wound healing technology, and subsequently took the top position in the American market. He participated in the field of youth protection products (definitely P&J cosmetic products are present).
Get more help from designers
Due to Lafley’s emphasis on the importance of consumer experience, which includes the appearance, materials and smell, Lafley employed designers who were exclusively active in the field of brand and packaging design, in other dimensions of product development. For example, these people cooperated in the design and determination of Olay Regenrist perfume. Also, the design of the showcase for SKD, which is a new and premium P&G cosmetic product and is only available at Saks, is one of the other activities of this design studio. Finally, one of the signs of Lafley’s commitment to the consumer experience is the appointment of someone who knows the position of head of design, who reports directly to the CEO.
Indeed, knowing the thoughts of the founders and managers of giant companies such as Apple, Google, Procter & Gemal and many others reminds us that being so successful requires a high level of quality and responsibility in all key activities. It means that you must have succeeded in most of the critical cases in your organization so that the final output becomes a successful company. It is unlikely, but if you are interested, you can refer to this article and have fun :))
Diagnosing a firms internal environment for corporate entrepreneurship
Sincere
@startup_30T
This post is written by Rimaazz1