In 2015, CEO Bob Chapman and co-author Raj Sisodia published Everybody Matters: The Extraordinary Power of Caring for Your People Like Family, a book whose title concisely declares the company's mission to “measure success by the way we touch the lives of people.

Strategy as Winning – A.G. Lafley:

By the time of my election to CEO in 2000, most of P&G’s businesses were missing their goals, many by a wide margin. The company was overinvested and overextended. It was not winning with those who mattered most—consumers and customers. When I visited all our top retailers in my first thirty days on the job, I found that P&G was their biggest supplier but nowhere near their best supplier. Consumers were abandoning P&G, as evidenced by declining trial rates and market share on most of our leading brands. I was

determined to get P&G’s strategy right. To me, right meant that P&G would focus on

achievable ways to win with the consumers who mattered the most and against the very

best competition. It meant leaders would make real strategic choices (identifying what they would do and not do, where they would play and not play, and how specifically they would create competitive advantage to win). And it meant that leaders at all levels of the company would become capable strategists as well as capable operators. I was going to teach strategy until P&G was excellent at it. I wanted my team to understand that strategy is disciplined thinking that requires tough choices and is all about winning. Grow or grow faster is not a strategy. Build market share is not a strategy. Ten percent or greater earnings-per-share growth is not a strategy. Beat XYZ competitor is not a strategy. A strategy is a coordinated and integrated set of where-to-play, how-to-win, core capability, and management system choices that uniquely meet a consumer’s needs, thereby creating competitive advantage and superior value for a business. Strategy is a way to win—and nothing less.

Communication to the Organization – A.G. Lafley

I prioritized the consumer ahead of all other stakeholders, including customers, shareholders, and employees. I started with consumers, because the purpose of a business is to create consumers and to serve them better than anyone else can. No consumers, no business. I said P&G had to win the consumer value equation and the first two consumer moments of truth. I talked about retail customers and suppliers as partners in serving consumers better...

I really tried to distill things down as a way to get the choices understood. There’s no doubt in my mind that clarity makes a difference. Clear and simple, easily translatable choices were crucial to get 135,000 P&G-ers in ninety countries operating with excellence every

day.

Lafley refocused the company of its top ten brands, the bestsellers that each generated over $1 billion in sales combined to make up more than half of P&G’s total revenues. “It’s a basic strategy that worked for me in the navy,” said Lafley, who, as a supply officer, ran a department store for servicemen. “I learned that even when you’ve got a complex business, there’s a core, and the core is what generates most of the cash, most of the profits. The trick was to find the few things that were really going to sell, and to sell as many of them as you could.

My engineering background had made me a fan of Perrow’s groundbreaking book Normal Accidents, first published in 1984, which had a lasting influence on experts’ thinking about safety and risk. Perrow focused on how systems, rather than individuals, produce consequential failures. The importance of that distinction cannot be underestimated. Understanding how systems produce failures—and especially which kinds of systems are especially failure-prone—helps take blame out of the equation. It also helps us to focus on reducing failure by changing the system rather than by changing or replacing an individual who works in a faulty system.