CEOs Who Return. Seeking the Triumphant

In the New Yorker, featuring CEO  A.G. Lafley of Procter & Gamble.   A common discussion these days in former employee groups.

" ... How could someone who, according to Fortune, was known as “an all-time C.E.O. hero” end up being just O.K.? Well, if commentators had looked at the track record of returning C.E.O.s—boomerang C.E.O.s, as they’re sometimes called—that’s precisely what they’d have predicted. A 2014 study found that profitability at companies run by boomerang C.E.O.s fell slightly, and an earlier study detected no significant difference in long-term performance between firms that reappointed a former C.E.O. and ones that hired someone new. We like triumphant comeback narratives—Jobs and, to a lesser extent, Howard Schultz, at Starbucks. But history tells us that Lafley’s rather ordinary second tour of duty is the way most of these stories end. ... " 

Innovation Addiction and Confused Consumers

In RetailWire, by Tom Ryan:

A.G. Lafley, Procter & Gamble's CEO, believes that the continual push by retailers for more product innovation is leading to an overload of choices for shoppers.

"I don't think the shopper or consumer sees it as innovative — the innovation that matters is the innovation she buys," Mr. Lafley said last week at the Consumer Goods Forum global summit in New York, according to Fortune.

His comments came as P&G last August announced plans to shed up to 100 brands to focus on the 80-to-90 percent that generate 95 percent of profits and 90 percent of sales. While looking to create a more profitable and responsive company, the move is also designed to meet the needs of consumers. ... " 

Mission Critical Lesson from P&G

Edward Burghard comments on the A.G. Lafley speech to the Association of National Advertisers 10-15-2000.    Had not seen this, quite good.  A Mission Critical Lesson From P&G.  On What The Economic Development Profession Can Learn From P&G. 

P&G's Changes in Spending

In AdAge:   A good detailed piece on P&G's moves in ad spending. " ... P&G's marketing spend is about one-third digital, CEO says  Procter & Gamble is directing as much as 35% of its marketing budget to digital media as the company tries to match customer presence online and on mobile devices, CEO A.G. Lafley said. Digital has been a faster way to reach customers and get their feedback, other executives added. P&G brands with a large digital concentration include Pampers, Secret and Old Spice. ... " 

Strategy's Tough Choices

Came late to my inbox.  In the HBR's blog in late May.  Former and current P&G's CEO AG Lafley  on Strategy's Tough Choices.  A video.

Advice for Returning CEOs

Knowledge @ Wharton provides a history and analysis of returning CEOs,  see my note on P&G's AG Lafley's return.    Asking if the 'Gamble' will pay off.  Instructive and interesting.

Whats New on Lafley's List?

In AdAge:  I liked the fact that his predecessor, Bob McDonald, seemed to be emphasizing the analytical in finding ways to improve business.  Yet they soon found that there was little real support for new or sustained capabilities.  Business Sphere was one good example of value, but not taken far enough.   Wall street was not impressed.   Had worked with Lafley and his people and he is a true innovator, so liked his direction.  Very traditionally marketing directed.  Now has quite a challenge in front of him.  Find new, really profitable billion dollar brands.    But as AdAge asks, what is really new here?