Trian Partners Activist Presentation Deck
Trian Strategic Initiative: Organize in a Way That Promotes Accountability
▪ We believe P&G's current "matrix" structure results in limited accountability
Selling & Market Operations (SMOs) sit outside the Global Business Units (GBUs), creating three dimensions to
P&G's matrix structure - GBUS, SMOS and Corporate Functions / Global Business Services (GBS)
Corporate Functions and GBS report to Corporate, not the GBUs; resources within those organizations often have
dual-line reporting
▪ We believe management overstates changes to the structure when suggesting P&G is now "End-to-End"
GBU leaders are allocated significant costs from corporate, diminishing "End-to-End" accountability
If GBUS truly "control" the sales force as P&G suggests, which GBUs do the following executive officers named
in P&G's 2017 Annual Report report to?:
O
O
Carolyn Tastad - President of North America SMO
Gary Coombe - President of Europe SMO
Juan Fernando Posada - President of Latin America SMO
o Matthew Price - President of Greater China SMO
o Mohamed Samir - President of India, Middle East, and Africa SMO
o Magesvaran Suranjan - President of Asia Pacific SMO
If sales resources report "hard-line" into GBUs then why do SMO Presidents and SMOs themselves exist?
If they do not report into GBUS or there is "dual-line" reporting, then there is not "End-to-End" accountability
Given limited transparency and public disclosure on P&G's matrix structure, it is impossible to know what reality is
from the outside (this is another reason why we are seeking a seat on the Board for Nelson Peltz)
What we do know is that market share losses continue. Moreover, extensive due diligence and unsolicited feedback
from recently retired P&G executives suggest changes are "incremental" at best:
NUE
te 'n
ENGES.
"PG is working on how to fine tune the Modus Operandi to create 'more End to End' that in reality is still a highly matrixed
operation with plenty of shared services and shared accountability. This leads to a very long time for decisions to be made
as many people need to input... Several people at the General Manager level have confirmed to me that while there is a
push for change it all feels in reality 'business as usual"" - Recently Retired GBU President, July 2017
Source: Company filings and transcripts; recently retired P&G executives.
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