PROCTER & GAMBLE

Executive Summary for Procter & Gamble



Executive Summary

Dave Walker, vice-president of business service opportunities and chairman of the governance team at Procter & Gamble, must decide what to do with P&G's 5,700 employee Global Business Services (GBS) group. GBS brought together internal services such as finance, accounting, employee services, customer logistics, purchasing, and information technology into a single, global organization supporting all P&G business units. Recently, P&G CEO A.G. Lafley questioned whether continued investment in GBS represented the best use of P&G's resources. Walker and the other members of the governance team must decide whether to spin off GBS, outsource GBS services to an outside company, outsource the GBS divisions separately to best-of-breed companies, or keep the group in-house. In making the decision, Walker and the members of the team must consider the impact on the organization of altering the existing relationships between the members of GBS and the other employees at P&G. Teaching Purpose: To consider the issues inherent in any decision to outsource services and the impact of such a change on the company.

A Time to Make a Change at P G Some of the signs and signals experienced by an organization which indicates that it is time to make a change are: experiencing rapid growth or a decline in growth, a decline in productivity, a decline in resources, stakeholder pressures on management, environmental crises, sociopolitical influences on the organization, environmental turbulence and changes to customer expectations and behavior. The highly competitive global marketplace where Procter Gamble operates is forcing the company to continuously do more with less. Advancements in technology , the pace of competition , globalization , the need to control cost and the increased efficiency coupled with the increasing customer expectations mean that the organization has to evolve and regenerate in order to survive ...