Spurring Innovation through Global Knowledge Management at Procter & Gamble

IntroductionIn 1837 William Procter and James Gamble two Brother-in-laws started their business as partners. As a result an innovative company Procter & Gamble was initiated.

Organization StructureCore Strengths

History

1879first branded product, Ivory Soap.

1946Tide introduced to the US market.

1955Cavity preventive toothpaste Crest is introduced,

1961P&G introduces Pampers, in Germany

1966 Colgate-Palmolive France

Approach to managing knowledge

and innovation

1930 first overseas business in UK

Expand further 1946

Till 1980 R&D center on US

Till 2000 Research hubs in US, Europe, Japan and Latin America

Beginning of the century US operations dominating+ Knowledge

and innovations from it’s subsidiaries and outside of the firm

By CEO A.G.Lafley to change the attitude from it’s resistance to innovative ideas acquired from outside.

Not invented here Proudly found elsewhere

7500 : 7500+1.5million Functional silos eliminated Linkage between

• Problem identification• External knowledge acquisition • Internal knowledge sharing across units • Global exploition of innovations

Connect +Develop

Goal : “Tap into knowledge and ideas outside the company”

Additional aim: To improve sharing knowledge and ideas within the company.

70 senior technology entrepreneurs in 6 regional CONNECT+DEVELOP HUBS.

Web based 21 global communities of practice.

Changes in innovation products

Barriers to Overcome in-order to Harness the Potential of a ‘Connect + Develop’ Model

Sender unit ability and the willingness to share knowledge.

The motivation and the ability of the receiving unit

The mechanism to share knowledge

(Disseminative Capacity )-TRUST-Social status and norms of reciprocity-Firms performance management system-Functional silos

(Absorptive Capacity)-Inter-unit trust and shared cognition

-NIH syndrome

-Expatriates/ Inpatriates -Short term assignment -Web based learning system

Performance management system, compensations and rewards

Strong social networks Strong organizational culture-

knowledge sharing an important shared value

Matching recruits Retention of personnel Mechanisms for utilization of expertise

HR Implications

Curing Not Invented Here syndrome. Design appropriate structural

mechanism Open communities of practice. Regional hubs to scan the environment. Respect knowledge sharing across

Improving link between• Problem identification• External knowledge acquisition • Internal knowledge sharing across units • Global exploitation of innovations- Open network

Lessons for other MNC’s

Presented by:P.G.B.Dharmarathne A/BBA/09/030R.S. Samarasinghe A/BBA/09/115K.G.T.M Deshanthi A/BBA/09/029D.K.D.Madhubhashini A/BBA/09/068

THANK YOU!

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