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Listening begins at home.

James R Stengel1, Andrea L Dixon, Chris T Allen

  • 1Procter & Gamble Headquarters, Cincinnati, USA.

Harvard Business Review
|November 19, 2003
PubMed
Summary

Procter & Gamble revitalized its marketing by conducting comprehensive employee research. This data-driven approach uncovered critical insights, leading to a significant organizational redesign and improved marketing effectiveness.

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Area of Science:

  • Marketing Management
  • Organizational Behavior
  • Human Resource Management

Background:

  • Procter & Gamble faced declining market share and low employee morale in 2000.
  • Marketing training programs were reduced, career progression lacked development, and mentoring diminished, eroding the marketing path's prestige.

Purpose of the Study:

  • To investigate the root causes of P&G's marketing organizational issues.
  • To develop a data-driven strategy for rebuilding P&G's marketing strength and employee morale.

Main Methods:

  • A comprehensive internal research initiative was launched, employing consumer research methodologies.
  • Methods included employee shadowing, one-on-one interviews, focus groups, and surveys of 3,500 marketing staff.

Main Results:

  • The research revealed critical insights into the marketing organization's strengths and weaknesses.
  • Findings directly informed a major redesign of P&G's marketing structure, the most extensive in 60 years.

Conclusions:

  • Listening to and understanding employees' perspectives is crucial for organizational success.
  • A structured research process provides valuable data to guide strategic decisions and address employee concerns.

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