Build a Climate for Innovation
WHEN A. G. LAFLEY BECAME CEO OF PROCTER & GAMBLE IN 2000, he had his work cut out for him. Profits were lackluster and the stock price down. New product launches had slowed to a trickle, and no more than 15 percent of them were making money. He knew that fresh thinking was needed throughout the organization. Moving quickly, he cut jobs, sold Crisco shortening and other declining brands, and began reciting his mantra: innovate, innovate, and innovate. These days more than half of P&G’s new products are commercially successful.
The increasing complexity of the competitive landscape is forcing every company to innovate faster. Judy Estrin, former CTO of Cisco Systems, has written in Closing the Innovation ...