P & G, Knowledge management, Connect+ Develop Model

1. Spurring Innovation through
Global Knowledge Management
at Procter & Gamble

2. Introduction
In 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

3. History
1879
first branded product,
Ivory Soap.
1946
Tide introduced to
the US market.
1955
Cavity preventive
toothpaste Crest is
introduced,
1961
P&G introduces Pampers,
in Germany
1966 Colgate-
Palmolive France

5. 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

6.  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

7.  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

9. 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

10.  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

11.  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

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