P&G’s Legendary Ex-Chief On How Today’s CEOs Are Failing; “They think that benchmarking, best practices and copying what the rest of the industry does is a strategy.” They also get seduced by success, expecting that what’s worked in the past will serve them just as well in the future.

P&G’s Legendary Ex-Chief On How Today’s CEOs Are Failing

Max Nisen | 5 minutes ago | 15 | 

A.G. Lafley was one of the most successful executives in recent times. During his nine years at the top of Procter & Gamble, the consumer product company’s value increased by more than $100 billion. In a recent interview, Lafley told the Wall Street Journal what he saw as current CEOs’ biggest shortcoming:

They don’t think they need a strategy, or their strategies are flawed. They think they have a hot product or hot service, and these don’t last forever. They think that benchmarking, best practices and copying what the rest of the industry does is a strategy. They try to be all things to all people. If you’re not clear about which customers you’re going to serve, how to serve them in a unique and better way that creates real value for them, and your core competencies, you’re just not going to have as much of a chance to win.

Essentially, Lafley is arguing, executives hate to make choices. When they take charge and commit to a strategy or a particular customer group, they become responsible for the consequences. Instead, they play it safe. They look to best practices, and they look to competitors. That may be the easiest path, but that’s not one where you can win. They also get seduced by success, expecting that what’s worked in the past will serve them just as well in the future. During his time at P&G, Lafley developed a 5-step program designed not just to succeed in a market, but to win it entirely, which he lays out in “Playing To Win.” Businesses have to decide what winning is, where to play, how to win, what their core competencies are, and what management systems they need to execute their strategy. Not only that, but they have to build those kinds of questions into their culture, so things are approached strategically on every level and constantly re-evaluated.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: