Spurring Innovation through

Global Knowledge Management

at Procter & Gamble
Introduction
In 1837 William Procter and James
Gamble two Brother-in-laws started
their business as partners. As a result
an innovative company Procter &
Gamble was initiated.
Organization Structure
Core Strengths
History
1879
first branded product,
Ivory Soap.

1946
Tide introduced to
the US market.

1955
Cavity preventive
toothpaste Crest is
introduced,
1961
P&G introduces Pampers,
in Germany
1966 Colgate-
Palmolive France
1930 first overseas business in UK
Expand further 1946
Till 1980 R&D center on US
Till 2000 Research hubs in US,
Europe, Japan and Latin America
Beginning of the century US operations
dominating+ Knowledge and
innovations from its subsidiaries and
outside of the firm
By CEO A.G.Lafley to change the attitude from its resistance to
innovative ideas acquired from outside.
Not invented here Proudly found elsewhere
7500 : 7500+1.5million
Functional silos eliminated
Linkage between
Problem identification
External knowledge acquisition
Internal knowledge sharing across units
Global exploition of innovations
Goal : Tap into knowledge and ideas outside
the company
Additional aim: To improve sharing
knowledge and ideas within the company.
70 senior technology entrepreneurs in 6
regional CONNECT+DEVELOP HUBS.
Web based 21 global communities of practice.
Changes in innovation products


Sender unit
ability and the
willingness to
share
knowledge.
The
motivation
and the ability
of the
receiving unit
The
mechanism
to share
knowledge
(Disseminative Capacity )
-TRUST
-Social status and norms of
reciprocity
-Firms performance
management system
-Functional silos
(Absorptive Capacity)
-Inter-unit trust and
shared cognition
-NIH syndrome
-Expatriates/
Inpatriates
-Short term
assignment
-Web based learning
system


Performance management system,
compensations and rewards
Strong social networks
Strong organizational culture-knowledge
sharing an important shared value
Matching recruits
Retention of personnel
Mechanisms for utilization of expertise

Curing Not Invented Here syndrome.
Design appropriate structural mechanism
Open communities of practice.
Regional hubs to scan the environment.
Respect knowledge sharing across Improving
link between
Problem identification
External knowledge acquisition
Internal knowledge sharing across units
Global exploitation of innovations- Open network

Presented by:
P.G.B.Dharmarathne A/BBA/09/030
R.S. Samarasinghe A/BBA/09/115
K.G.T.M Deshanthi A/BBA/09/029
D.K.D.Madhubhashini A/BBA/09/068