Trian Partners Activist Presentation Deck
P&G's Existing Structure = Suffocating Bureaucracy and Complexity
P&G's current organizational structure is highly matrixed with 3 power centers:
1. 10 GBUS (Categories): Global, Regional and Country
2. 6 SMOS (Sales & Market Operations): Regional and Country
3. Corporate Functions & GBS: Global, Regional & Country
(1)
The structure relies on a web of "straight line / dotted line" reporting relationships that obfuscates
"ownership" of decisions and reduces organizational agility, exacerbated by the fact there are
three dimensions to the matrix between Category, Sales and Functions - from global, to regional,
to country
(2)
P&G's Current Organizational Structure (Simplified So It Fits on a Page)
Note: Dotted lines represent what are
often dual-reporting lines in a matrix
structure
Global Sales
Officer
Regional
Sales, SMOS (6)
Country
SMOS (~90)(2)
P&G
Global Categories,
GBUS (10)
Report to Corporate, not the
GBUS; resources within these
organizations often have dual-line
reporting
Regional
BUS (10x6)
Country
BUS (Up to 10x90) (²)
Global Functions
(~8+)
Regional
Functions (8x6x10)
(1)
Country Functions
(Up to 8x90x10) (2)
Primary Power Center
Is Global Category
GBUS are defined by category (i.e., Hair Care, Skin and Personal Care, Grooming, Oral Care, Personal Health Care, Fabric Care, Home Care, Baby Care, Feminine Care, Family Care).
Selling and Market Operations are responsible for sales execution at a regional and local level.
Corporate Functions include activities such as human resources, strategy, finance and IT, among others, and were created to support the businesses and create efficiencies.
P&G sells to more than 180 countries according to P&G's 2017 Annual Report on Form 10-K. Given the numbers of countries where P&G management operates on-the-ground is not public, we
estimate half for simplicity.
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