Procter & Gamble Organisation(2005)

As Hamel (2006 ) points out organizations continue to manage in the old , time-tested ways year after year in the fear that innovations may backfire . However , for an innovation to be successful it requires backing of not only the top management but the entire organization . Including all the employees in the new structural innovation and empowering them to take important decisions will help

G reverse the initial losses resulting from Organization 2005 . Employees at all levels should be encouraged to make innovative contributions to the organization . Taking these steps will definitely benefit

P G grow as an organization

Strategy

When Lafley took over as the CEO ,

G was facing a severe crisis . It was lagging behind many of its competitors in all the key products . The share prices were at a record low . Lafley had to take quick decisions to reverse loses . Under the circumstances , Lafley should adopt a strategy of quickly bringing to market some of the new innovative products . Since these products do not have any competition as yet , they would be able to garner an exclusive market share and also improve

Gs market image

Since Lafley needs to make quick decisions to reverse the loses , he could adopt Chesbrough 's (2003 ) open innovation model , taking ideas and innovative ideas from other smaller firms so that it can innovate quickly and bring newer products to market faster . This steps could help stop loses and over the next few quarters help

G retain its market leadership position

Reference

Hamel , G . 2006 , The why , what and how of management innovation Harvard Business Review , pp . 72-84

Chesbrough , H .W . 2003 , Open innovation : The new imperative for creating and profiting from technology , Harvard Business Press...