Describing and Evaluating Organization’s Innovation Strategy


Describing and Evaluating Organization’s Innovation Strategy of Proctor and Gamble

Organization Selected for Analysis:

In this paper you will find out the description and evaluation of Procter and Gamble’s innovation strategy. P&G happens to be one of the top most innovative companies around the world and the reason behind this continued success is its continuous Innovation and Growth in its brand and commercial/business sectors. According to Forbes, by Dyer and Gregersen (2012) P&G, a 175-year old company continues its long term business growth by persistently focusing on its commitment to innovation in such a globalized fragile economy and dwindling consumer levels of satisfaction. P&G lies on the 24th number in the World’s Most Innovative Companies List of Forbes.

Innovation Strategy used by P&G:

Mark Murphy (2012) stated five innovative strategies all organizations can use. His notion is that the hiring Community as a resource sparks innovation in an organization. Since an organization can’t innovate product/brand until it is unfamiliar with the needs of the outer world of its premises. The department of Research and Development are of no use unless needs and satisfaction level of consumers are not identified as a foremost step in developing and launching innovation. P&G has created a connection bridge between outside community and R&D department of its organization, the strategy to what they call “Connect and Develop”. P&G follows a great technique to formalize an innovation community by establishing “Leadership Grand-Rounds”. It refers to gathering together managers/leaders from different department to share their experiences, once in a month (a business trait known as cross functional collaboration or connection).

The innovative strategy “Connect and Develop” unlike Research and development first lets P&G to make a connection between inner managers and leaders from all the departments and then raising the connection between outside community/world of its business with the R&D department. In this way innovation is not only a disruptive product of inner research and development but also with connection of billions and millions of innovative minds outside P&G’s R&D for the betterment of mass.

In an interview with Forbes (2012) the chief technology officer at P&G, Bruce Bown mentioned that it is a great deal for big companies to create room or space for connection because that is the way of transferring an idea to the R&D team that is bumped up in an innovative mind. He said at P&G they create communities of cross functions so to connect and share ideas, leading this to the view that few of the best innovators are the best connectors at P&G.

He mentioned that there are 26 R&D centers of P&G around the world and the foremost mission of every center is to be customer focused and use total customer centric approach. The world is getting globalized and so do the consumers are getting much awareness. This awareness has evolved levels of customer satisfaction.

The higher the customer is aware of trends and his needs the more level of satisfaction he looks for. To compete and sustain in such a challenging competitive globe P&G accepts that “Customer is boss”. Here everything is customer centered. They make sure that they know well about their customers, what makes them delight and what are their competitors doing. When the P&G R&D team is satisfied with answers of these questions they move to the next step of finding an equilibrium position of use of technology and innovation and customer satisfaction.


Latest Innovation by P&G, launching 7 products among the list of top 10 successful non-food products:

The P&G innovation Factsheet (2014) states that there were seven products by P&G from the list of top ten successful non-food items, making Procter & Gamble this year’s biggest winner of New Product Pacesetters list for the year 2013.

The company itself believes that this big win and the previous continue achievements are the consequence of P&G’s persistent commitment to deliver a strong innovation portfolio that drives business’s long term growth. While this growth depends upon company’s capability to delight and satisfy its customers by delivering highly modernized products that are suitable for every-day life.

The P&G’s seven products among the list of top ten successful no food products are:

  1. Tide Pods (#1)
  2. Zzz quil (#3)
  3. Vidal Sasson Pro Series (#4)
  4. Downy Infusions (#6
  5. Always/Tampax Radiant (#8)
  6. Secret Outlast (#9)
  7. Puff Basic (#10)


  An insight: What is Connect + Develop?

P&G reviewed its previously used R&D strategy and re designed its budget, but it didn’t  improve its performance until the strategy was casted by involvement of external community (Tim Kastelle, 2012).

Previously P&G focused on internal capabilities and a network of trusted suppliers to innovate, generate and deliver new products. However time changed and the world became more connected. There are many scientists, engineers and companies dealing in same mass dimensions as that of P&G products, so connecting and collaborating with them to nurture P&G’s R&D department and lives of consumers is a great technique of faster innovation. At P&G, there is a global team dedicated to empower Connect + Develop, search for innovations, work with prospective partners and launch the innovations through company, into market. This team is known as Global Business Development.

 Implementation of Connect + Develop Innovation Strategy at P&G:

The website addressed as: is specially designed to create a platform for the submission of innovation from the innovative minds, groups, engineers and companies all around the world to help improve lives of the consumer by connecting with Procter & Gamble with the help of University of Leeds. It is basically an agreement between multinational consumer goods manufacturer P&G and University of Leeds to have a strategic relationship to formulate academic research for the development of high tech products.

This platform enables external innovators and companies to submit innovations to P&G’s Connect + Develop strategy. This innovation hunt process promotes Open Innovation, also known as crowdsourcing. The shared innovation is reviewed by R&D team of P&G and then move to the level of getting finalized. At P&G, through Connect + Develop, R&D, consumer understanding, marketing expertise and brand equity are shared with external partners to bring fast the big innovations to consumer lives and market.

More than 2000 successful innovative agreements with the external innovators have been formed, so together P&G can do better than working alone. In this way the company forms a happy and strategic relationship with internal stakeholders and external community as well.



Dyer, G. (2012). How Procter & Gamble Keeps Its Innovation Edge. Forbes.

Kastelle, T. (2012, may 30). Procter & Gamble – Using Open Innovation to Become a World Class Innovator. Retrieved 8 24, 2014, from blog:

Murphy, M. (2012, March 27). Leadership Skills. Retrieved august 24, 2014, from Leadership IQ:

P&G. (2014). Innovation factsheet. Retrieved 8 24, 2014, from Procter & Gamble innovation:

P&G. (2014). P&G Innovations. Retrieved 8 24, 2014, from Procter & Gamble :