Trian Partners Activist Presentation Deck
Highly Matrixed = Allocated Costs = Diminished Morale
If GBU leaders (who theoretically "own the P&L") controlled 100% of their costs, their
incentives would be clear: fund growth investments, optimize costs and maximize profits
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But because P&G is highly matrixed, GBU leaders are "allocated" significant costs from
Corporate Functions, GBS and SMOs that are outside their control
We believe there are billions of dollars of such allocated costs at P&G
Understanding and addressing these costs would be one of Nelson's primary goals on P&G's Board
Allocated Costs Create Numerous Challenges:
Diminishes Morale of GBU Leaders
Lessens ability to optimize resource allocation, fund
growth and control costs
Complexity from managing the matrix overwhelms
focus on growing revenue and profit
Leads to Excessive Costs
Executives who oversee allocated costs report to
Corporate, not the GBU leaders who are best
positioned and incentivized to grow revenue and
optimize expenses
For a company of P&G's size, there will always be allocated costs. Trian's goal is to
minimize the amount of these costs by empowering GBUs to agree on allocations or find
better alternatives
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