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Procter and Gamble M&A Gillette
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Vincent THOMAS
Charlene ROLLAND
Adrien TILHET PRAT
Procter & Gamble welcoming Gillette
Vulnerabilities of P&G Integration Planning
Difficulties in communication: differences in interpretation
Strong commitment of P&G towards Gilette which led to anxiety among P&G employees
Cultural differences
Hard adaptation for both P&G and Gilette employees
P&G employees were feeling left aside
A huge merger
Social integration mechanisms
Emphasis on Gilette’s know-how
Gilette alliance with P&G was essential to create « the best consumer company in the world »
Clean & transition planning teams
Create new teams by integrating Gilette’s employees to P&G teams
Were they successful? Did Gillette trust P&G?
« There was excitement »
“we are joining a tremendous partner to create the best consumer products company in the world”
BUT
Gillette employee still wondered How would P&G integrate Gilette’s businesses into P&G’s business units
What were the operational integration mechanisms?
How did Lafley build trust with Kilts?
What should change, remain the same or be added after the change of control?
What sequence of actions did he take to initiate systematic change?
A.G Lafley: CEO of Procter & Gamble
Jim Kilts: CEO of Gilette
“The P&G culture is more collaborative, open, and competitive than you may know it to be”
“They are not necessary”
COLABORATIVE NEGOCIATION
RAJA GUPTA
How did P&G managers try to do the same with members of Gillette Organization?
Integration tools and mechanisms
Lafley wanted to use Gillette to create the "best consumer products company in the world".
Create a joint Global Integration STEERING COMMITTEE
Clear explaination of the cultures and values of P&G and Gilette
Creation of a new culture?
Continue to integrate Gilette manager into P&G teams
Create team synergies (eg. Renault & Nissan merger)
P&G PROMISED TO DELIVER $1.0 TO $1.2 BILLION in cost synergies by year three
THEY WILL CUT JOBS FROM THE TWO COMPANIES : 5,000 to 6,000 of the total 140,000 jobs
They also committed to OBTAINING $750 MILLION IN REVENUE SYNERGIES by year three
They Called it a merger not an acquisition
Human resources and integration
- Communication
- Building and Sustaining Trust
- Training Program
- Career Planning
- Counseling