The appointment of new chief executive Robert M. McDonald could spark broader management changes at the consumer products giant as it tries to better control its sprawling empire and keep certain executives from quitting, according to a story in the Wall Street Journal.
As expected P&G said Wednesday that its operations chief, Robert McDonald, will become chief executive on July 1, putting new leadership in place as the company grapples with a global recession and new competitive threats to its brands, according to a story in the Wall Street Journal.
Written by Ellen Byron and Joann S. Lublin, the story says McDonald has already given employees a hint of what is to come: he plans to reduce the levels of management between entry-level positions and the chief executive to seven. There are currently about nine levels of managers between new hires and the CEO.
McDonald also said he plans to create a simpler, flatter and more agile organization, because simplification reduces cost, improves productivity and enhances employee satisfaction, the story says.
P&G’s biggest challenge is its cumbersome bureaucracy and slow decision-making, the story says, noting that over the past decade, the company has doubled its annual sales to $83.5 bilion, with 138,000 employees in more than 80 countries.
WSJ Online subscribers may read the full story here.