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Ricardo Duran

on 9 June 2011

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Transcript of P&G

Band 3 middle managers often work for several bosses (often located on different continents)

They face too many priorities and live in fast-changing environments

The workplace is in constant flux as everyone tries to “flow to the work”

market competition is fierce and competitors are always ready with another in-market surprise Development: an effort to provide employees with the abilities the organization will need in the future.

Integration: to have positive views & reactions Training: the process of providing employees with specific skills or helping them correct deficiencies in their performance P&G Consumer goods P&G Offer training and development opportunities to its employees throughout their careers. One thing you can count on is that things are going to change.

Heading into a world where businesses must improve their productivity if they are to be successful. As you attended college you learned all kinds of things; but the most important thing you learned is how to learn. Bob McDonald
CEO, P&G Our Purpose is to improve the lives of the world’s consumers. Leadership & Ownership

They expect every employee to be a leader and to act like an owner of the company

More than 10 percent of P&G stock is owned by employees

That’s a real accomplishment for a company of that size Passion for winning: their goal on the job every day is to win with consumers and beat the competition

Trust: build-from-within culture Values of Procter & Gamble A company of 138,000 people P&G wants to build an organization that will be capable with or without the leader’s presence would not significantly affect the business results Headquarters



U.S. employees 34,142
Employees outside U.S. 75,858


New jobs (1 year) 540
% job growth (1 year) 2
% voluntary turnover 2
Applicants 125,432 The world's top maker of household products courts market share and billion-dollar names. Revenue (2010): 78938.00 M In 2002, P&G had been without a formal corporate training program for several years.

While technical training and corporate business training were available, such training did not provide insight related to delivering R&D innovation and leadership. Modules focused on a different core competency
Module Owners created the training
Dean of each College was responsible for working with the module owners

The first College: Band 3 first level at which employees choose either the managerial or technical ladder

the middle managers are pivotal

they are responsible for most of the projects and programs

manage and coach 85% of the R&D employees

could have a positive impact on the greatest number of people

the middle was not meeting upper management’s expectations

the middle’s self-assessment is that they need additional managerial and leadership skills to be more effective

the middle will get support from leadership because the leaders are the trainers selection of content for the Band 3 College

why this training was not sufficient to produce the desired skill levels

basic training

need for an intermediate-level of training First pilot was delivered on 2003
Class of 54 participants
35 trainers coming in and out during the week

The pilot was successful:

Fully attended
Provided much learning for the Directors and VPs on how training is different from presenting Reworked their materials based on the participant feedback

The College was launched in January 2004

Great success

With a 4.2 overall rating.

With increasing experience and coaching

Over ten college sessions

Over 500 participants. Well known within the company

There is a waiting list, not only to attend as a participant, but to be a trainer

This formal training program has brought people together in informal ways

Leadership has been energized Three billion times a day, P&G brands touch the lives of people around the world It's divided into three global units:

household care
beauty and grooming
health and well-being

The firm also makes pet food and water filters and produces a soap opera. Two dozen of P&G's brands are billion-dollar sellers, including Febreze, Fusion, Always, Braun, Bounty, Charmin, Crest, Downy/Lenor, Gillette, Iams, Olay, Pampers, Pantene, Tide, and Wella, among others. Professional training (hrs./yr.)68


% minorities 20%
% women 43%
Has nondiscrimination policy that includes sexual orientation Inspires employees to run the company as if the dollars they spend and the decisions they make are their own What differentiates those who succeed in an ever-changing world is the ability to learn. Have you built the organizational capabilities so well that when you’re not there, the organization can continue to function, to grow and succeed? Or have you built an organization that is so dependent upon you that you have to be there? Path to long-term success Training Theory Managers: Importance to overall business strategy

Labour leaders: Importance to collective bargaining issues Improves morale of employees- helps the employee to get job security and job satisfaction.

Less supervision- A well trained employee will be well acquainted with the job and will need less of supervision  less wastage of time and efforts.

Minimize errors Importance of Training Chances of promotion- Employees acquire skills and efficiency during training and become more eligible for promotion.

Increased productivity- Well trained employees show both quantity and quality performance. Less wastage of time, money and resources if employees are properly trained. Training to Develop Pre-training Questions Is training the solution to the problem?
Are the goals of training clear and realistic?
Is training a good investment?
Will the training work?
Legal issues:
Equal opportunities
Nondiscriminatory fashion: gender, race The training Process Needs Assessment Phase The Development and Conduct Phase The Evaluation Phase To address this goal

Authorized a task force
Over a three–year period
Classroom-based training
5 managerial levels

The purpose

Reinstituting formal training
Higher levels of innovation
Increased networking across business silos Task force struggled

with how to best narrow the project scope
with where to start R&D Leadership Targeting the Middle Level

Research & Development University (RDU).

Each program would be called a College.

One College for each hierarchical level

Starting with incoming engineers and scientists (Band 1)

Going up through the director and “Victor Mills Society” technologists (Band 5) College focus on 6 R&D Core Competencies:

Holistic Innovation
Application of Technologies in the Business
Business Understanding
Proficient Project Management
Comprehensive Consumers Understanding
Driving Change, Leading Transformation & Valuing Diversity for Innovation The Colleges would put Technical and Managerial track employees in the same program to provide formal training to grow everyone’s skills

The program is:

highly inclusive
unlike programs at P&G and elsewhere
aimed at employees on the fast track Why Start in the Middle? The R&D Corporate College would serve over 8000 managers and technologists
5 hierarchical levels
more than 12 business categories
6 technical disciplines
8 countries on four continents at twenty sites " in many organizations, both large and small, there are the chaotic middles "
Krantz, 1998

While upper management has executive coaching and organizational training, and lower levels have team building and job training, there is little offered for the middles. However, the function of the middles in most companies has become increasingly complex and fraught with never-ending to-do lists Band 3 managers had insufficient skills to effectively handle the leadership situations they faced

Data from a corporate organization culture survey supported concerns about the need to strengthen the skills for the Band 3 managers and technologists.

There was general frustration among the R&D Leadership with the inadequate level of coaching, mentorship and technical leadership P&G's middle managers get involved in the latest program on quality, or excellence, or reengineering, and do the best they can for the people reporting to them Designing the College Diverse Band 3 roles across the company

Some had office spaces filled with product displays and volumes of printouts on consumer research. Some Band 3 technologists reported to Band 3 managers for a specific project, while others ran their own research program or reported to managers one to two levels above them. Results R&D VPs nominate the participants

Request for a wide diversity of participants

Represent the normal demographics of the R&D organization

Highly rated Band 3’s (ready for promotion) were excluded because they represented a small part of the organization

Represent 15 technical centers from six countries Participants rated this first session 3.8 overall, goal > 4.0 or better ( 5 points scale)

The program was too full of content and lectures

Insufficient breaks for the class

Many participants said the pilot College was one of the best training experiences they had ever had

They were on the right path

Open-ended questions revealed:

Participants valued the learning, the relationships developed with senior leaders and the opportunity to expand their network of colleagues Implementation Final Results Module training teams have come from across the various business units to learn from each other and to create new thinking for themselves

Teaching the art of training, letting others learn by doing under the tutelage of a guide

Clasroom provides leaders a chance to practice guiding people rather than commanding Questions Do you believe this kind of training is better than an MBA program? Do you think training is a good method to spread the company culture? Why might training be a risky tool
for your company? Group 3
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