Proctor and Gamble 2000 Annual Report Download - page 6

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4
MANAGEMENT CHANGE
After 30 years of service, Durk I. Jager retired July 1 as chairman, president, chief executive and a director of P&G. His visionary
leadership and many contributions accelerated the pace of product innovation for the Company. He has left a legacy of innovation,
not only in new brands, but also in areas such as use of the Internet and strengthening of customer relations. His emphasis
on a culture that reaches out for breakthroughs has provided a strong foundation for future progress.
John E. Pepper
Chairman of the Board
August 1, 2000
A.G. Lafley
President and Chief Executive
August 1, 2000
Fourth, we are placing greater emphasis on rigorous cost control and cash management. We deployed teams to
drive out waste and to find new efficiencies in overhead management, marketing support and product
costs. In addition, we’ve renewed our emphasis on capital investment and working-capital efficiency.
We highlight some of our efforts in these areas on pages 8 – 11.
A PASSION FOR WINNING
P&G people are accustomed to being winners and to doing what we commit to do – or better. We
take great pride in our brands, our innovation leadership, our customer relationships, the trust we’ve
earned from consumers – and our ability to deliver steady, reliable growth for our shareholders.
Whenever our leadership in any of these areas is challenged, we take it seriously.And personally. For
example, in the mid-’80s, we faced a significant financial setback. Earnings for fiscal 1985 declined
29% from the previous year. Back then we addressed the issues head-on, just as we’re doing now. In the
15 years since, sales have grown from $13.6 billion to $40 billion – a rate of 7% per year.And profits
have increased from a little more than $600 million to $4.2 billion, an average growth rate of more
than 13% per year.
We don’t point to these numbers as any kind of forecast, but they do underscore that we’ve faced
major problems in the past and have overcome them. By addressing those problems just as we are
tackling present issues, we continued to deliver the leadership levels of growth that both you and we
expect from P&G.
We are at our best when working on tough challenges because P&G people have such a tremendous
passion for winning. In fact, that passion is our defining characteristic as an organization.And it is
that passion that will ensure P&G maintains its rightful place as the preeminent consumer products
company in the world.