Gillette Company (C):

Strategies for change

Presented by:
Group1
Ayala Madhushree
Ankita
Chinkal Nagpal
Kishu Keshav
Oindrila Mondal
Satyajit Das
Swadha Awasthi

Leadership for Change

Leadership style of top executive sets the tone for how effective
the change will be

Transformational leadership suited for bringing about change

Create an environment that supports sharing of ideas

Ensuring people have the skills to endure possible stress and

hardship

Understanding the curve of change to guide people through the

difficulties of change

Currently, people in Gillette are in the beginning of the change

curve having high expectations

Ensuring competence and Providing

support
Weekly meetings of the direct reports
Weekly postings by email from heads of commercial operations in
regions across the world, the heads of the GBUs and the heads of
the functional groups
Quarterly one-on-one meetings with each of the reports that
preceded a quarterly two day off-site meeting
Detailed review of each business with individual managers making
presentations and explaining their thinking to Kilts
Personal message to peers explaining the need to benchmark all the
units and functions to that of the peer competitions
Incentives were tied to performance against targets sometimes going
as high as upto 70%

Change Priorities

BETTER COMMUNICATION FOR FASTER PROCESSING:

WAS NEEDED FOR HIGH GEAR PROGRESS OF THE
COMPANY

BETTER PRACTICES TO MANAGE RECEIVABLES: TO

MAINTAIN THE POSITION OF MARKET LEADER AND
GAIN MARKET SHARE

FINANCIAL MANAGEMENT AND CONTROL: FOR

BUILDING BRAND VALUE

E-PROCUREMENT TECHNOLOGIES : REDUCE THE COST

BY ELIMINATING SUPPLIERS

ELIMINATION OF TRADE LOADING : TO REDUCE

INVENTORIES AND IMPROVE WC MANAGEMENT AND
SALES FORECASTING

Obstacles to change

Lack of coordination and cooperation

Resistance from employees due to elimination of some

old Gillette stalwarts

Employees may perceive the change as too much

Uncertainty avoidance

As the company is global, the change may have

different meaning in different countries

The recruitment of new executives may be seen as

favor extended to Kilts friend

Current Strategy
Strategy:
Co-ordination: Quarterly
offsite meetings
Leadership issues: Kilts led
turnaround from the front

Operations:
Operational efficiency: SKU
management

Financial:
Overhead costs: ZOG, NOG
Manage A/c receivables
Trade loading: Elimination
priority

People:
Status quo questioned
Performance management:
base + merit pay
Performance and not
seniority based
Higher motivation levels
driving behavior change

Recommendations

Could use IT to ease communication process

Increase inter-divisional collaboration to launch newer

better products

Current strategy focuses on short term goals

compromise on innovation and capex to increase
efficiency Long term goal orientation is required

Allotment of funds to divisions can be linked to

performance

Increase synergy between the divisions