What would force Bob McDonald, the West Point alum, Army Ranger, and hand picked successor of A.G. Lafley to resign? When McDonald took over as CEO in July 2009, P&G’s annual revenue was $75 billion. He predicted the company would ratchet up the revenue stream to $102 billion by 2013. Unfortunately P&G generated a mere $85 billion of revenue in 2013. In 2010 Procter and Gamble was perched at #22 on the Fortune 500, today it rests at #28.
Why would Procter & Gamble’s board of directors choose to bring in former CEO Lafley instead of an internal candidate from the company’s cadre of executives? Didn’t P&G enjoy a well deserved reputation as an incubator of C-Suite talent? Weren’t companies of comparable size and scope able to manage succession planning? Consider Jim Skinner’s path to the corner office at McDonald’s. After CEO James R. Cantalupo died of a heart attack (April 2004), McDonald’s board met the same day, choosing his replacement Charles Bell. Six months later, Bell resigned after being diagnosed with cancer (November 2004). Upon Bell’s resignation, Jim Skinner became CEO (November 2004). That’s three chief executives in eight months. If McDonald’s can do it, why not Procter & Gamble?
Asking a chief executive to return for an encore may be the best way for a board to guide a company through periods of crisis. Certain chief executives like Steve Jobs at Apple or Howard Schultz at Starbucks enjoyed success upon their return; other CEOs, like Michael Dell, did not fare as well. These chief executives illustrate the potential payoffs and pitfalls of this encore strategy.
Thomas J. Saporito, Chairman & CEO of RHR International LLP sees Lafley’s return as “probably the smartest and most prudent decision the P&G Board could have made. In Lafley’s case, the board has acted pragmatically. Procter & Gamble is under stress and the board needed someone with a proven track record, able to implement strategies and tactics that will result in success.”
These thoughts are echoed by Prof. Jeffrey Sonnenfeld of Yale’s School of Management. Sonnenfeld, author of “The Hero’s Farewell: What Happens When CEOs Retire,” likens returning chief executives to former generals Patton, MacArthur and Montgomery. All were mothballed, answered the call to duty, and earned even greater achievements their second time around.
Sonnenfeld says returning chief executives, like Lafley, “know the ground, know the key constituents, and know the operations.” If market conditions aren’t radically different than during their previous tenure, former chief executives are likelier than anyone to understand the company’s challenges and how to respond.
Not only will Lafley be expected to boost the company’s performance, he’ll be managing P&G’s succession process as well. An ongoing realignment of P&G’s management is providing insight as to who occupies the pipeline of executives from which Lafley’s successor will be chosen. Among the names mentioned are Melanie Healey (group president of North America), David Taylor (group president of global home care), Martin Riant (group president of global baby care), Giovanni Ciserani (group president of global fabric care), and Deborah Henretta (group president of global beauty care). The elevation of these executives was already underway under MacDonald.
Of all the decisions confronting Lafley in his return engagement, management succession appears to be the one upon which his tenure will be judged. In helping choose a successor who satisfies not only shareholders but stakeholders; Lafley, in the eyes of Saporito, “will have earned his reward many times over.”
Read: https://online.wsj.com/article/SB10001424127887324682204578515610690140902.html
Read: https://www.ft.com/intl/cms/s/0/6eb8b61e-c99c-11e2-bb56-00144feab7de.html#axzz2VBAnCz4b
Read: https://adage.com/article/news/lafley-s-list-time-p-g/241701/
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
