Slide 1

Gillette Company (C): Strategies for changePresented by:Group1 Ayala MadhushreeAnkitaChinkal NagpalKishu KeshavOindrila MondalSatyajit DasSwadha Awasthi

Leadership for ChangeLeadership style of top executive sets the tone for how effective the change will beTransformational leadership suited for bringing about changeCreate an environment that supports sharing of ideasEnsuring people have the skills to endure possible stress and hardshipUnderstanding the curve of change to guide people through the difficulties of changeCurrently, people in Gillette are in the beginning of the change curve having high expectations

Ensuring competence and Providing supportWeekly meetings of the direct reportsWeekly postings by email from heads of commercial operations in regions across the world, the heads of the GBUs and the heads of the functional groupsQuarterly one-on-one meetings with each of the reports that preceded a quarterly two day off-site meetingDetailed review of each business with individual managers making presentations and explaining their thinking to KiltsPersonal message to peers explaining the need to benchmark all the units and functions to that of the peer competitionsIncentives were tied to performance against targets sometimes going as high as upto 70%

Change PrioritiesBetter communication for faster processing: was needed for high gear progress of the companyBetter practices to manage receivables: to maintain the position of market leader and gain market shareFinancial Management and control: for building brand valueE-procurement technologies : reduce the cost by eliminating suppliersElimination of trade loading : to reduce inventories and improve WC management and sales forecasting

Obstacles to changeLack of coordination and cooperationResistance from employees due to elimination of some old Gillette stalwartsEmployees may perceive the change as too muchUncertainty avoidanceAs the company is global, the change may have different meaning in different countriesThe recruitment of new executives may be seen as favor extended to Kilts friend

Current StrategyStrategy:Co-ordination: Quarterly offsite meetingsLeadership issues: Kilts led turnaround from the front

Financial:Overhead costs: ZOG, NOGManage A/c receivablesTrade loading: Elimination priority

Operations:Operational efficiency: SKU management

People:Status quo questionedPerformance management: base + merit payPerformance and not seniority basedHigher motivation levels driving behavior change

RecommendationsCould use IT to ease communication processIncrease inter-divisional collaboration to launch newer better productsCurrent strategy focuses on short term goals compromise on innovation and capex to increase efficiency Long term goal orientation is requiredAllotment of funds to divisions can be linked to performanceIncrease synergy between the divisions