Evaluation of AG Lafleys Leadership in Procter and Gamble Essay

Introduction

He is a strategian who has a large vision and changes the regulations of the game that his company participates in. He is a Godhead who improves his company ‘s profitableness by invention to do an organic growing. He is a mind who firmly believes that the consumers are the foremans instead than he. He is a savior who makes a company which was in some serious crises back to the manner of resurgence. He is besides one of the universe ‘s most influential concern leaders, merely like Steve Jobs, Bill Gates and Warren Buffett.

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He has been got many rubrics and achieved the highest acknowledgments in his concern. He was named “ CEO of the Year ” by Chief Executive Magazine in 2006, “ Executive of the Year ” by the Academy of Management in 2007, and “ Leader of the Future ” by the Peter F. Drucker Leader to Leader Institute in 2008 ( Silverman, 2009 ) .

In my sentiment, he is the best concern leader and he makes the perfect combination of CEO ( Chief Executive Officer ) and CIO ( Chief Innovation Officer ) . Yes, the great adult male is Alan George Lafley, the former Chairman of the Board, President and Chief Executive Officer of Procter & A ; Gamble.

In this research paper, I will give you a brief debut of A.G. Lafley ‘s background and calling. Then I will analyse some leading traits and leading behaviours of him. After that I will speak about how A.G. Lafley ‘s leading applied to the cordial reception industry.

Brief Introduction of A.G. Lafley and his Career
Early life

On June 13, 1947, Alan George Lafley was born in a little metropolis called Kiev in New Hampshire America. When A.G. Lafley grew up, he completed his survey in a little broad humanistic disciplines school which located in northern New York called Hamilton College. He had his ain calling program at that clip, which was to be a professor and hoops manager after graduation. In the late sixtiess, he went to Paris where he studied history, political relations, art, movie and theater. In 1969, he returned to the United States and so entered the University of Virginia to analyze for the PhD grade which related to the history of the Middle-Ages and Renaissance.

However, he left the college after merely one semester. He joined the U.S. Navy, but did non function in war vessels. Because of this military service, his programs and destine changed from so on. He was assigned to a U.S. military air base in Japan, responsible for the direction of retail and service organisations. In that air base, about 1 million people, naval forcess, Mariness and their households, formed a little town. What Lafley managed were the whole retail and service organisations including food market shops, section shops and forte shops. It is the first clip that he worked as a general director ; moreover, he fell in love with this occupation since so. After retirement of the Navy, he did non travel back to the college to prosecute his old dream of being a professor or a manager, but he went to the Harvard Business School to analyze for the MBA grade.

Joined Procter & A ; Gamble

After graduation from Harvard Business School, he joined Procter & A ; Gamble in 1977 as an helper of a dishwashing detergent trade name. In the undermentioned 15 old ages, he gained the place of the laundry pulverization and clean service section director. Within these old ages, Lafley and his squad got so many accomplishments. He led several the most successful inventions in P & A ; G company ‘s history such as “ Liquid Tide ” and “ Tide bleach-type ” -Until today, these sorts of invention still contribute to the growing of P & A ; G. In 1994, he went back to Japan, but what he was responsible for was much larger than the retail concern of the little town in the air base 20 old ages ago. What he governed was all the P & A ; G concern in Asia.

He laid the foundation for P & A ; G ‘s Japan concern growing quickly and led China ‘s concern to hold an extraordinary growing. In Asia, the gross revenues of the merchandises are barely 90 million dollars before he came, but it approached 1 billion dollars when he left Asia in 1998. He besides led the company to go through several serious currency crises and the economic crises swimmingly. As we all know, the Nipponese Kobe temblor occurred in 1995 and Procter & A ; Gamble Asia central office located merely right at that place. These sorts of crises gave Lafley a strong head and ability to set up the undertakings and employees when exigency happened. As a consequence of these experiences he got in Asia, he has more assurance to near to the following challenge-all the concern in North America in which occupied the P & A ; G ‘s largest market ( Lafley and Charan, 2009 ) .

Led Procter & A ; Gamble

In 2000, Lafley was elected to be the president and CEO of Procter & A ; Gamble and began to take 110,000 P & A ; G ‘s employees who distributed in 70 states. The P & A ; G was merely in a large problem because of a series of extremist programs made by the ex-CEO Durk I. Jager. Jager developed the new merchandise blindly. He did non concentrate on the nucleus competitory merchandise. What is more, P & A ; G was a really conservative company at that clip. With many other grounds, the company fell into a large failure. Fortunately, the coming of Lafley saved P & A ; G. Lafley made a new policy decisively- ” Continue to advance the growing of the nucleus advantages of resources and net income from it. ” ( Lafley, 2000 ) Lafley focused on the old trade name and made a soft revolution at the same clip.

He replaced half of the senior functionaries and cut off about 10,000 occupations to do P & A ; G more flexible and professional. “ Innovation ” was Lafley ‘s nucleus construct. No affair by promoting the organic growing of the company or by unifying the others ‘ creative activities, Lafley ne’er stopped to introduce. He said: “ Each endeavor has its ain nucleus organisation rule. And the rule in P & A ; G is invention. ” ( Lafley, 2009 ) What ‘s more, Lafley would wish to do an exclusion to advance the gifted individual and he was good at collaborating with other people and companies. Under his leading, gross revenues of P & A ; G were about doubled-from 39 billion dollars to 76 billion dollars. Procter & A ; Gamble Company became the American top 10 most valuable company and the universe ‘s top 15 most valuable companies since that clip. And it was considered as one of the most well-thought-of company from so on.

Retirement

On July 1, 2009, Lafley resigned the CEO officially and claimed no longer functioning as president since January 1, 2010.

Leadership Traits of A.G. Lafley
A.G. Lafley, who has rich life experiences and has obtained a plentifulness of great accomplishments, is a great leader. The great individual has its illustriousness which can be considered as some fabulous leading traits. So what are they?

Excellent instruction

Mr. Lafley, who obtained a B.A. ( Bachelor of Arts ) grade in history from Hamilton College, briefly pursued a maestro grade in medieval and Renaissance history at the University of Virginia and got a MBA grade from Harvard Business School, is knowing ( Ellison, Zimmerman, Forelle, 2005 ) . They make him various and soft. Obviously they besides have a large influence on his calling. The first-class instruction gives him the ability to cover with assorted responsibilities and pull off a concern giant. In my sentiment, although most of the benefits brought by instruction are unseeable, the degree of cognition decides the degree of attitude which further affects the height of success. For illustration, how can he achieved such a large successful in invention? It is due to that he knew the market and he realized what the consumers ‘ demand and desire. He can utilize what he has learned to analyse the state of affairs and circumstance of the company. Without the cognition, he can make nil. That ‘s why first-class instruction plays a rather of import function in Lafley ‘s life.

Assertiveness

Lafley is sort and humane individual. But as a leader, he knows that if it is the clip to do a judgement or a determination, so you should do it. It means that a leader should hold the assertiveness. A leader ‘s judgement or determination can find the success and the failure of an organisation at some times. The stage of doing judgement can be every bit speedy as the somersault of a switch but can act upon a long-time period ( Tichy, Bennis, 2007 ) . However, doing a good judgement is non easy, particularly with a limited clip period. Lafley sets a graphic illustration of how good judgement is developed. Lafley became CEO of P & A ; G in 2000 with the company in the large problem. On the twenty-four hours Lafley was announced as CEO, the stock fell down another $ 4 ; by the terminal of 2000, the company ‘s market capitalisation had lost $ 85 billion compared with the anterior twelvemonth. But as an experient leader, Lafley ne’er fell nervous. As I mentioned before, his abundant experience ever can do him assertiveness. Five old ages ago, Lafley went through the monolithic Kobe temblor.

That 7.2 magnitude temblor destroyed more than 45,000 places and killed more than 6,000 people, immediately immersing Japan into crisis. Lafley, who was in charge of the concern in Asia for P & A ; G at that clip, instantly made an confidence that P & A ; G ‘s employees were safe and so began to take stock. He knew how to stabilise the morale of the military personnels and he can manage this issue expeditiously step by measure. The experience teach him the importance of confronting world and planning every bit ways to do certain a leader uses all available resources in times of crisis ( DeRose, Tichy, 2008 ) . Therefore, faced the inauspicious state of affairs at the twelvemonth terminal of 2000, he can rapidly place the jobs that most needed to be solved-the unneeded concern. So Without a minute ‘s vacillation, Lafley made a determination that cutting the unneeded concern instantly and concentrating on their nucleus concern. He is really self-asserting and it is because of his assertiveness made the company acquire out of the unsafe state of affairs and have a better and faster development in the undermentioned old ages.

Creativity

We have already known that Lafley ‘s major is history at the beginning of his surveies, but he is really good at invention. He has an admirable ability of creativeness that can do “ an elephant dance ” . When Lafley took over the P & A ; G Company in the summer of 2000, the fact was reasonably inexorable as I have already talked above. His predecessor, Dirk Jager, a brusk hard-charging Dutchman who ran the concern of P & A ; G for 17 months, merely made one thing turn up: it ‘s the costs. After analysing the state of affairs, Lafley was cognizant of that the P & A ; G Company needed the invention to convey consumers back, but invention balanced by efficiency ( Martin, 2009 ) .

The successful invention is non merely contrive a new merchandise or make a new signifier of organisation but is able to happen out something that can convey commercial benefits and can make new value which means the peculiarly things can set the company ‘s state of affairs in the market topographic point and keep the relationship with the clients. We can see what Lafley has done. He encouraged invention in the organisation and enhanced the company ‘s attending on the invention of the nucleus trade name such as Crest and Tide. But he was still non satisfied with the P & A ; G ‘s invention velocity and accomplishments, he set a bold end: Rather than developing most inventions in-house, P & A ; G would contract for half of its inventions from outside beginnings. This invention theoretical account called “ Connect plus Develop ” .

It ‘s a bipartisan street, accessing externally developed rational belongings in its ain markets while leting its internally developed assets and know-how to be used by others ( Lindegaard, 2010 ) . This plan gave P & A ; G entree to a planetary web of pioneers, and it used the house ‘s bing algorithm-level selling and distribution accomplishments ( Martin, 2009 ) . The public presentation turned out to be a great success, with net incomes that doubled. In 2005, the Boston Consulting Group consult P & A ; G as the “ Top 10 Advanced Companies in the World ” for the ground that “ Continuous merchandise invention based on apprehension of altering consumer life styles ” ( Nussbaum, Berner, 2005 ) . The fact of growing and resurgence of company interrupt the notoriously rule-bound civilization that P & A ; G should ever trust on itself to develop. It is true that Lafley ‘s creativeness help the 173-years-old elephantine alteration its fate and achieves a new success.

Administrative ability

As a concern leader, no affair how much instruction you received, no affair how self-asserting you are when you make a determination, no affair how creativeness you hold, if you do non hold administrative ability, everything will do no sense. The disposal can pull off employees to work expeditiously and take the company to make things right. For Lafley, he uses this sort of ability to specify P & A ; G ‘s values and criterions which encourage the right behaviours. The values for P & A ; G is a word- ” Trust ” which is reflected in three facets. First, trust of employees. Which means you can gain the employees ‘ trueness. The employees are the greatest wealth.

If your employees would wish to give their full life to you company, so that is the half of the conflict. Second, trust of consumers. Consumer is the God. All you do are to fulfill the client. That ‘s the concluding end every company wants to accomplish. The last but non least, trust of investors. That ‘s besides precisely of import for a mature company. It can convey P & A ; G stable long-run investings ( Lafley, 2009 ) . The criterion made by Lafley for the concern of P & A ; G is that each one should be in the top tierce of its industry field. This criterion is determined to be P & A ; G ‘s primary public presentation step tool and is linked to the leading compensation. Lafley establishes this fantastic value-creation mentality with consideration of the stockholder ‘s position and it makes a great part to P & A ; G ‘s concern.

What ‘s more, Lafley has a strong ability to understand and acknowledge his subsidiaries. As I researched, Lafley knows the top 500 people in P & A ; G. He besides involves himself in calling planning for the 150 possible presidents or map caputs. He does a batch of occupations on be aftering assignment, measuring strengths and failings of these people and seeking to set them in forepart of the board at company events ( Lafley, 2009 ) . This ability helps Lafley absorb so many gifted people, which shows the bright hereafter for P & A ; G Company and besides lays a solid foundation for the company ‘s sustainable development.

Amenability

Lafley stresses coaction with his subsidiaries. He encourages teamwork among directors, employees and besides himself. He has a concerted and speculative direction manner. When Lafley makes a determination or sets a new scheme, he normally asks directors to give him two different attacks and show the pros and cons of each. ” ( Hymowitz, 2006 ) By efficient teamwork, Lafley barely makes incorrect judgements. Lafley does non merely collaborate with internal staffs of the company, but besides he builds a good strategic partnership with other companies.

The globalisation is the universe ‘s tendency and for certain no company can turn quickly and swimmingly without cooperate with others. Lafley realized this serious fact shortly after taking over the Chief executive officer of P & A ; G. He found that the Wal-Mart Stores has an alone advantage that other retail merchant does non have-it can non merely supply merchandises at the lowest monetary value but besides get people to turn back to the Wal-Mart for goods they usually find elsewhere, at forte shops, eating houses or even the physician ‘s office ( Ellison et al. , 2005 ) .

So Lafley decided to upgrade P & A ; G ‘s merchandises and do them so glamourous and typical that Wal-Mart wo n’t be able to defy them. After the upgrading of P & A ; G merchandises and the dialogue with the caput of Wal-Mart, all of the merchandises made by P & A ; G are available at Wal-Mart. For P & A ; G and Wal-Mart, “ it ‘s a batch like a matrimony, ” Lou Pritchett, P & A ; G frailty president of gross revenues, said. This “ matrimony ” is a win-win war.

Lafley ‘s Leadership Behaviors
Supportive leading behaviours

The innate personality and first-class instruction make Lafley friendly and knowing. Many people say Lafley is more like a serene professor than a great concern leader. In fact, expect the personality and instruction factors, the nucleus construct of Lafley- ” invention ” makes a petition for him to be a supportive leader.

Because the consequence of invention is ever unsure and sometimes it can be involved with a batch of hazards, the leader is requested to back up the employees and excite them to make the occupation every bit better as they can. With the leader ‘s supportiveness, even if the undertaking is non developed as the program set, the subsidiaries will non lose their assurance and forbearance. Lafley ever encourages the R & A ; D ‘s ( Research and Development ) squad members and shows his trust and respects to team. He ever says, “ You did a really good occupation. I appreciate your attempts. You have been working really hard, etc. ” The fact is they ne’er let Lafley down.

What is more, in the leading traits subdivision I mentioned that Lafley has a alone ability that he can retrieve the top 500 directors in P & A ; G. And he is willing to assist them develop their calling. Lafley believes that a good director is able to go an innovation leader by having proper preparation and obtaining some invention related work experience. So he provides preparation system and chances to the subsidiaries. For illustration, P & A ; G provides a class which can better the rate of successful invention and builds an invention centre for employees to portion and discourse their working experience ( Lafley, 2008 ) .

For the experient directors, Lafley gives them more specific undertakings which are related to more unsure hazard. It is really helpful for these directors in obtaining the cherished experiences. Further to do certain that these directors can do a good readying for the leader place. With his proper supportiveness, most of them did really good occupations. Lafley ‘s supportive leading behaviour satisfies the subsidiaries and makes them work harder and harder. The followings can happen their self-value and they truly love work for him. In another word, Lafley brings much more net incomes to the employees and the company with his supportive leading behaviour.

Reward leading behaviours

Everybody wants to be rewarded and when a individual is praised in public topographic point, it will organize a positive working ambiance and construct up the sense of award in employees ‘ head. Obviously Lafley have the wages power and besides he would wish to utilize it, because he knows that when wages happened, it will promote more people to work harder for acquiring the wages. And this manner can take the organisation to turn healthily and quickly.

For case, P & A ; G establishes an one-year Award for Innovation which used to honor those people whose undertakings can supply consumers greater value and less cost than its rivals. This award is established in order to honor the employees who create immense net incomes by happening advanced concern manner. When the wages clip comes, a expansive eventide feast is needed and Lafley will give the large award to the victors with his ain custodies and salutation to them. The employees of P & A ; G see this as the highest award as it should be.

Lafley ‘s reward leading behaviour improves employees ‘ public presentations and increases their enthusiasm. What ‘s more, the most of import thing is that the wages strengthens the advanced civilization that Lafley wants to set up in P & A ; G which is a great aid for company ‘s development.

Innovation leading behaviours

Most of us may be non familiar with Innovation leading behaviour. Pekka Ala-Pietila , the Former President of Nokia defines it like this: ” It is passion ; it is larning ; it is humbleness in forepart of errors and errors-understanding that they are necessary elements to larn faster than the others-and it is the mark scene. . . yes, stretched marks! ” ( Ala-Pietila , 2001 ) In my sentiment, Lafley is an advanced leader with many other features which are more mature compared with what Ala-Pietila idea. First, focused on the in-depth consumers ‘ penetration, Lafley knows that the invention is based on the consumers ‘ demands, so he believes consumer is the foreman. Lafley stresses coaction with consumers and asks them what really they need and what they truly want. Then explicate the following research and development end.

Second, after to the full cognizant of the leading-edge proficient, Lafley requests the R & A ; D ( research and development ) section to better P & A ; G ‘s merchandises per twelvemonth and do a riotous invention per seven old ages in order to remain in front of the industry. Third, set uping the motivational organisational wagess, Lafley makes the P & A ; G ‘s innovation-reward procedure. This procedure works like this: If you create a good invention undertaking, you will acquire the wages. The company would wish to put more money to promote you to develop another invention in that you can acquire another wages. You can evidently happen that this procedure is a virtuous circle that can do the company maintain turning. All in all, Lafley ‘s invention leading behaviour greatly improves the development of P & A ; G Company. I think merely this leading behaviour can do such a large company maintain turning like this.

A.G. Lafley in Hospitality Industry

Though Lafley has been worked in consumer goods industry for more than 33 old ages and has ne’er quitted before retirement, if he chooses to work as a hotel general director now, I believe he could be a good leader besides.

First, as a general director of the cordial reception industry, you need to be a supportive leader because cordial reception industry is a labour intensive industry. Every twenty-four hours you need contact and cover with people. Therefore, to be a leader, you should demo your concern for the position, well-being and demands of your followings. In another word you should be supportiveness.

In this facet, Lafley does a really good occupation. He knows how to demo his concern and friendly to employees and he can construct a good relationship with the employees and give them more assurances. He ever would wish to demo his supportiveness. If the undertaking is really hard, he will demo his consideration to the subsidiaries and ne’er waver to state something like this, “ you did a really good occupation. I appreciate you a batch, etc. ” When a harmonious work environment appears, the employees ‘ amenitiess of occupations and willingness of working harder will both increase, ensuing in a better public presentation and higher enthusiasm which will take to more net incomes and less turn-over rate.

Second, reward leading behaviour is really suited for cordial reception industry excessively in that it is of a certain commonalty in all concern. Lafley is really good at honoring people who did the good occupation. Just as I have been mentioned, he established an innovation-reward system in P & A ; G which brings a immense benefit to the company and the employees. Equally good as what he has did in P & A ; G, if he works as a leader in cordial reception industry, he will set up some sorts of Award for Service Star system which rewards the employees who get the most recognition cards filled by invitees or who give the hotel most valuable advices. In his sentiment, wages is the best manner to promote people to work hard and introduce positively. By constructing this wages manner, he can better morale of employees and better organisation at the same clip. It means that his position of honoring construct is rather utile in cordial reception industry.

Third, advanced leading behaviour is besides really of import for cordial reception industry. Nowadays, most of the five-star hotel can accomplish the first-class criterion, but what the true challenge is the creativeness. Lafley will ne’er alter his advanced leading behaviours. He would wish to inquire the invitees feeling and demands, and so believe out a new thought to give invitees wholly different experience. Possibly he will put a end for the chefs to making the new culinary art. All in all, it is for certain that he will utilize his invention leading behaviour to do the concern base out. That ‘s critical public presentation for the typical all right dining hotel. And I think it will convey the company a great success.

Decision

After researching A.G. Lafley ‘s personality and calling, I am shocked by this adult male who saved the universe ‘s largest consumer goods company in catastrophe. He is a good hearer but besides an self-asserting cat ; he is knowing but besides loves to join forces with his subsidiaries ; he ne’er shouts but makes things organized in good order ; he ne’er invents anything but leads a top 10 advanced company. It is A.G. Lafley who merely retired from the CEO of P & A ; G 10 month ago and is commented as “ The going of Procter & A ; Gamble ‘s A.G. Lafley is a loss for P & A ; G – and the concern universe at big ” by Fortune Small Business ( Reingold, 2009 ) .

After 33 old ages contending for P & A ; G ‘s success, Lafley eventually decides to take off his Armani suit and have on his favourite insouciant khaki bloomerss to hold a remainder. But his superb accomplishments, fabulous disposal abilities and intriguing invention leading will ever be at that place to allow the people respect and pursue.

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