P&G 2009 Annual Report – AnnualReports.com - Procter & Gamble

PURPOSE-FOCUSED EXECUTION:
“HOW-TO-WIN” STRATEGIES
We have made three strategic “how-to-win” choices to capture
these growth opportunities.
First, we will leverage our core strengths —consumer understanding,
brand-building, innovation, go-to-market capability
and scale — to execute the Company’s growth strategies.
These strengths create significant competitive advantage
for P&G, particularly when we leverage them together as
interdependent capabilities to win. We see opportunities
to apply P&G’s strengths in several areas — from expanding
category, country and channel portfolios globally to extending
distribution and store coverage in developing markets. This will
continue to be a primary how-to-win focus area for P&G.
Second, we are elevating Simplification, Scale and Execution
to how-to-win strategies. These are key improvement areas
where we believe we can create the greatest value and
competitive advantage.
Our simplification efforts have one goal: to make it easier for
each P&G employee and business partner to improve more lives
in more parts of the world more completely. As P&G has grown
larger, we’ve naturally become more complex. We are removing
complexity so our brands are more affordable and to make the
Company more innovative and agile. We’re reducing senior
management positions and layers, and improving decision
making, by simplifying our organization structure. We’re also
making other important interventions to simplify business
processes such as business planning, product launch, and
product formulation. We want to become a $100 billion
company with the speed and agility of a $10 billion company.
We consider scale to be a tremendous growth opportunity.
We’re leveraging scale efficiencies to deliver best-in-class
cost structures throughout our business. We’re using our
R&D and supply chain scale to create alternative materials
that minimize exposure to volatile commodity markets.
We’re creating the technology infrastructure to rapidly transfer
best-in-class knowledge across our global organization.
And more. I’m confident this focus will yield dramatic benefits
for the Company over time.
Execution is, of course, the only strategy our customers and
consumers ever see, so we must do it with excellence, always.
We are placing even sharper emphasis on consistent, quality
execution in every part of our business.
Third, we are leading change to win with consumers and customers.
We are becoming an even more collaborative organization,
inside and outside our Company. We’re getting flatter, faster
and simpler. We’re changing how we compensate people to
reinforce and reward behaviors that allow us to meet our
simplification, scale and disciplined execution objectives. We’re
making the investments to be networked globally and digitized
from end to end. And we’re building the capability to operate
on a demand-driven, real-time, future-focused basis every day.
In today’s economic environment, many companies are cutting
back on investments in their people. P&G is increasing its
investment. We know without doubt that P&G people are our
most important asset, and we will continue to invest in their
growth, capability, and productivity.
PURPOSE-INSPIRED CULTURE
I believe to my core that by renewing our commitment to P&G’s
Purpose…by establishing a unifying growth strategy and a
Company culture that are tightly linked to our Purpose…we
can inspire and motivate P&G people around the world to new
levels of innovation, productivity, executional excellence and
business results.
A.G. and I both believe the decade ahead has the potential to be
one of the strongest decades of growth in the Company’s history.
We’re serving about four billion people in the world today.
That’s a billion and a half more people than we were reaching
at the beginning of the decade, and at least a billion less than
the number I’m committed to serving in the decade ahead.
We know that P&G products touch and improve people’s lives
in meaningful ways. People tell us and show us —when we visit
them in their homes, when we shop with them in stores, when
we listen to their calls and read their e-mails. When we spend
time with the people who trust and use our brands, we come
away inspired. Every time.
The opportunities are there. We have the right strategies,
capabilities and plans. We have the best people —the strongest
global organization that I believe you’ll find in any company.
If we can inspire the performance that our people are capable
of delivering —day in and day out —I have no doubt that we can
fulfill our Purpose more thoroughly and deliver the superior
shareholder value we all expect from P&G.
Bob McDonald
President and Chief Executive Officer
August 7, 2009
The Procter & Gamble Company 7