Trian Partners Activist Presentation Deck
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P&G Case Study: Procter & Gamble Overhauled its Matrix Structure
. Prior to Trian's involvement, P&G had underperformed over an extended period of time. Trian
believed that P&G's matrixed organizational structure was preventing the company from realizing
its potential
. Following a proxy contest, Nelson Peltz joined P&G's Board in March 2018 and worked
collaboratively with management, the Board and external advisors to evaluate a new organizational
structure
• In November 2018, consistent with Trian's recommendations, P&G unveiled a new organization
structure designed to "de-matrix" the company and create end-to-end P&L and operational
responsibility, including a reduced number of business units
P&G's New Structure (simplified)
P&G's Old Structure (simplified)
Note: Dotted lines represent what are often
dual-reporting lines in a mabix structure
Global Sales
Officer
as GMO (6)
MON 1-901
P&G
Global Categories,
GBUS (10)
Regional
BUS (10x6)
Country
BUs (Up to 10x90)(
소수수 소소송 소소송
Primary Power Center
is Global Category
Global Functions
(-8+)
Regional
Functions
(8x6x10)
Country
Functions (Up to
8x90x10)
SBU
#1
SBU
#2
SBU
P&G
(Lean HoldCo)
SBU
#4
SBU
#5
SBU
#6
Entrpr.
Mkts
"We believe this is the most important organizational change we've made in the last 20 years"
- David Taylor, Former CEO of P&G
Source: Procter & Gamble Form 10-Ks, Form 8-Ks, call transcripts and investor presentations. While Nelson Peltz is a former director of The Procter & Gamble Company, none of the information contained in
this presentation or otherwise provided to you is derived from non-public information of such company. Trian does not endorse third-party estimates or research, which are used in this presentation solely for
Austrative purposes. Note: S8U defined as Strategic Business Unit (1) 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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