IT at P&G: Integrated Into the BusinessIT at P&G: Integrated Into the Business

Jim FortnerVi P id t I f ti T h l D l t &Vice President, Information Technology Development &

Operations, Global Business ServicesThe Procter & Gamble Company

1 P&G/GBS Overview12

P&G/GBS Overview

23

Our Vision for IT

3 Recipe for Success

4 Where Next?4

Founded in 1837• Founded in 1837• HQ in Cincinnati• $76 7 Billion annual sales• $76.7 Billion annual sales• 135,00 employees• More than 300 brands sold in• More than 300 brands sold in

180 countries• Operations in more thanOperations in more than

80 countries• Gillette Expansion: October 2005

William Procter

p• 22 Billion Dollar Brands

James Gamble

red

egy

Touching and nspi

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Touching and Improving More

Consumers’ Lives in More Parts of se

-Inw

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in More Parts of the World…More

Completely urpo

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u GP

&G

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Global Business Services is one of the 4 Pillars of P&G By transforming the way business isof P&G. By transforming the way business is done we ensure that P&G can fulfill its Purpose.

globalbusiness

units

marketdevelopmentorganizations

corporatefunctions

globalbusiness

units gservices

Transforming the Way Business is DoneWhat we Stand For

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P&G/GBS Overview

23

Our Vision for IT

3 Recipe for Success

4 Where Next?4

Innovation in Business Services&G’ C

Global Expansion

P&G’s Challenge

Global Expansion…• Entered 55 new markets

Increased operations to 86 countries• Increased operations to 86 countries

We SawWe Saw…• Duplicated services across regions

St t l i bilit t t k d t f i• Structural inability to take advantage of economies of scaleI ffi i tl ll t d t ffi d b d t• Inefficiently-allocated staffing and budgets

Innovation in Business Services Th IT Ch ll

We Knew:

The IT Challenge

We Knew:• Much of technology was becoming a commodity • Often, IT was seen as a cost,• IT had the potential to do so much more

TechnologicalCapabilityBusiness Needs IT Capability

• The business need was so much greater

We Had A Dream…

T f IT f B kTransform IT from Back Office Support to

B d R St t i tBoard Room Strategist and

Offer P&G a strong foundation for growthfoundation for growth...

We didn’t need to run fasterto run faster

We needed toWe needed to change the way

we ranwe ran

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P&G/GBS Overview

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Our Vision for IT

3 Recipe for Success

4 Where Next?4

Changing the Way We Ran

• Structuring for success without losing the local touch

• Thinking holistically about our services

G i i P hi• Growing in Partnership

• Running as a Business

• Measuring for success

Structuring for SuccessCentralized

One services

Global

6 hubs in low

Holistic

170 business and One services

organizationcost locations employee services

Ci i ti

Newcastle

BrusselsBrussels

Cincinnati

San Jose

Singapore

Manila

Singapore

Delivering Employee Services for 135,000 & Business Services across 80 countries

Structuring for SuccessStructuring for SuccessFlowing to the work

WHY? We wanted Scale AND AgilityWHY? We wanted Scale AND Agility• To enhance our contributions: more

with lesswith less• To empower our people with

meaningful workmeaningful work • To “flow” to priorities

Thinking HolisticallyNot just IT or HR… but all aspects of business support:

• Employee Services for 135,000• Business Services across 80 countries

Employee Services

Employee Services

Business Services

Strategic Sourcing & Procurement

People Management

Facilities

Computers & Communications

M ti S i

Financial Services & Solutions

Product Innovation

Supply Network Solutions

Consumer SolutionsMeeting Services

Travel Services

Consumer Solutions

Customer Solutions

Initiative Management

Business Performance Solutions

Growing in PartnershipWe could grow faster, stronger with the Traditional

Relationshipexpertise of our strategic partners

RelationshipCustomer to

Supplier basedWin-loseWin lose

relationship

Strategic PartnershipPartnership

Grows the pie and delivers a win-win

ps • $4.2 billion agreementsEmployee

rshi

p• 11 months start-to-finish

• Quality AND speed execution

Employee Services

tner

Q y p

• Shared measures for success

Par

t

Facilities Management

tial P

IT Infrastructure + Applications +Transactional

Accounts

Init

Accounts Payable3

… and now

15 Strategic Partners who are imbedded i t th f b i f b iinto the fabric of our business

A Network of Excellenceof Excellence

Partner and Flow-to-the-Work Example

Within 2 weeks, our partners added

700 full-time people to the P&Gpeople to the P&G

business

Together:1100 projects

Completed:in 15 months

Synergy S iSaving:

$1.2 Billion

“Running as a Business”Running as a Business• Focus on solutions• Connect innovation priorities to pre-aligned business needs• Borrow from P&G’s management practices

GBS EquivalentsP&G’s Approach GBS EquivalentsCost

Service Levels

P&G s ApproachProfit/Loss

Market Share

Value Creation

Service Management

“T t l U E i ”

Sales Volume

Brand Management

C B fit “Total User Experience”Consumer Benefits

“Running as a Business”gWhat This Transformation Meant to IT

• From technology to solutionsFrom what’s needed to what’s possible

IT St t i

Business • From what s needed to what s possible StrategiesNeeds IDS

And a new name for our IT organization:Information Our unique asset Decisions What we want to enableDecisions What we want to enableSolutions What we want to deliver

“Running as a Business”Running as a BusinessWhat This Transformation Meant to IT

3 New Innovation Priorities connected to pre-aligned business needs:p g• Digitize • Visualize• Simulate

Digitize - Video CollaborationEasy Collaboration – $4 return for each $1 spent

example

Visualize - Decision Cockpitsat

a

Faster – Better business decisions

Raw

Da

tsis

ion

Coc

kpit

Dec

i

example

Simulate - VirtualizationSpeed to Market – More than $10 million saved

example

Measuring for SuccessMeasuring for Success• Client Satisfaction• Client Satisfaction• Service Levels• User Sensing• User Sensing• Employee Survey

Scorecards• Scorecards• Top-to-Top Connections

To drive results…

Measuring for SuccessMeasuring for Success

$800 MM in cost savings

A 16% increase in user

satisfaction last yearg

to date.

Replaced more

last year

than 20,000 reports with

Decision CockpitsVirtualization tools

Client Satisfaction

CockpitsVirtualization tools on 79% of all

initiatives

at 9.2 (the highest ever

Maintain a top to bottom focus• Maintain a top-to-bottom focus on the missionTop management support• Top management support matters – running as a business helps secure ithelps secure it

• Communicate, communicate, communicate

• Commercialization is critical• New models need new skills andNew models need new skills and

capabilities

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Our Vision for IT

3 Recipe for Success

4 Where Next?4

Scale Our Work• Continue to leverage scale to innovate,

standardize and simplify • Expand our Shared Services scope• Expand our Shared Services scope

Scale Our Network• Systemically move what is non-core to us to

an external provider for whom that work is core businesscore business

• Priority access to innovation capabilities of our partners

Design for Flow• Ability to ramp up our key priorities quicklyy p p y p q y• 50% of organization is designed to “flow-to-

the-work”

What Does NOT Change

Transforming the way business is done

33

Thank You

Questions?Questions?