Carol Hymowitz and Lauren Coleman-Lochner, Bloomberg Business, April 14, 2015
A.G. Lafley helped turn Procter & Gamble Co. into the world’s largest consumer-products company. Now the builder has turned demolition man, shedding billions in assets because P&G is too large to compete.
Lafley, 67, interrupted his retirement in 2013 to revive P&G and telegraphed early on that he didn’t plan to stay long. Having announced plans to exit as many as 100 product lines in the past two years, he’s likely to step aside as chief executive officer by the annual meeting in October, according to people familiar with his plans. Before then, Lafley aims to divest at least $19 billion more in assets, slimming the company down to 65 leading brands, such as Tide, Crest and Pampers, which generate 86 percent of P&G’s $83 billion in revenue.
“It’s painful to dismantle something you built,” said Davia Temin, who runs Temin & Co., a crisis management consultant. “Most CEOs I’ve worked with, when faced with this, say ‘I’m a builder, let someone else shrink it,’ but Lafley’s showing he can pivot when that’s what the business demands.” […read more]