Abstract

The case discusses the 'Organization 2005' program, a six-year long organizational restructuring exercise conducted by the US based Procter & Gamble (P&G), global leader in the fast moving consumer goods industry. The case examines in detail, the important elements of the restructuring program including changing the organizational structure, standardizing the work processes and revamping the corporate culture. The case elaborates on the mistakes committed by Durk Jager, the erstwhile CEO of P&G and examines the reasons as to why Organization 2005 program did not deliver the desired results. Finally, the case discusses how Alan George Lafley, the new CEO, accelerated the initiatives under the Organization 2005 program and revived P&G's financial performance.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Impact of restructuring on organizational structure and corporate culture.

Keywords

Organization 2005, six-year, organizational restructuring, US, Procter & Gamble, P&G, consumer goods, standardizing, work processes, corporate culture, Durk Jager, CEO, Alan George Lafley, financial performance