At P&G, it boiled down to three themes that would enable the company to win, in the places and ways it had chosen, regardless of the details of individual differences between businesses:

• Make the consumer the boss.

• Win the consumer value equation.

• Win the two most important moments of truth.” (Lafley and Martin, “Playing to Win”,

p.141)

“The first dictum, that the consumer is boss, was a reorientation to the company’s aspiration—to improve the lives of consumers. We wanted everyone focused on the end consumer in all aspects of the business: in innovation, branding, go-to-market strategies, investment choices, and so on. We wanted to be clear about just who the most important stakeholder is and always should be. Not shareholders. Not employees. Not retail customers. But rather the end user: the people who buy and use P&G products. The second crucial theme was to win the consumer value equation. This quickly and unambiguously defined the way that P&G would win: by opening up a bigger gap between

the value it offers to consumers and the cost of delivering that value than competitors’ gaps. This meant providing unique value to consumers (through brand differentiation and innovative products). And it meant maintaining a cost position that would let P&G offer that value to the consumer at an attractive price and still make a healthy profit. This edict turned everyone’s attention toward the where-to-play and how-to-win choices that create sustainable competitive advantage through differentiation.

Keeping P and PC in balance makes a tremendous difference in the effective use of physical assets.

First, your growth will be evolutionary, but the net effect will be revolutionary. Would you not agree that the P/PC Balance principle alone, if fully lived, would transform most individuals and organizations?

The principle of Win/Win is fundamental to success in all our interactions, and it embraces five interdependent dimensions of life. It begins with character and moves toward relationships, out of which flow agreements. It is nurtured in an environment where structure and systems are based on Win/Win. And it involves process; we cannot achieve Win/Win ends with Win/Lose or Lose/Win means.

Synergy means that 1 + 1 may equal 8, 16, or even 1,600. The synergistic position of high trust produces solutions better than any originally proposed, and all parties know it. Furthermore, they genuinely enjoy the creative enterprise. A miniculture is formed to satisfy in and of itself. Even if it is short lived, the P/PC balance is there. There are some circumstances in which synergy may not be achievable and No Deal isn’t viable. But even in these circumstances, the spirit of sincere trying will usually result in a more effective compromise.