{ "docId": "019dd923-622b-71dc-a6db-5b8745c248b4", "docSlug": "61f9ed76fe8f", "documentTitle": "The Procter & Gamble Company (PG)", "authorId": "06_Trian_Partners", "authorName": "Nelson Peltz", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2017-09-06 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 31, "pageCount": 94, "prevPage": 30, "nextPage": 32, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "Includes a testimonial/quote from a retired GBU President to support the argument.", "elementsJson": [ "headline_text", "bullet_list", "callout_box", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6db-5b8745c248b4/31", "deckHref": "/decks/019dd923-622b-71dc-a6db-5b8745c248b4", "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-5b8745c248b4.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-5b8745c248b4#slide-31", "components": [ { "bbox": { "h": 0.04, "w": 0.9, "x": 0.05, "y": 0.11 }, "kind": "callout", "text": "We believe P&G's current \"matrix\" structure results in limited accountability", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e1c997d9-7bce-448f-a15c-1fd23df8ae71", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.9, "x": 0.05, "y": 0.3 }, "kind": "callout", "text": "We believe management overstates changes to the structure when suggesting P&G is now \"End-to-End\"", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e5c3ad93-7267-4c96-b825-336e7c50eed1", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "We believe P&G’s current “matrix” structure results in limited accountability", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0934-771a-b79c-4ac476d6483e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.8, "x": 0.12, "y": 0.47 }, "kind": "list", "text": "Carolyn Tastad - President of North America SMO\nGary Coombe - President of Europe SMO\nJuan Fernando Posada - President of Latin America SMO\nMatthew Price - President of Greater China SMO\nMohamed Samir - President of India, Middle East, and Africa SMO\nMagesvaran Suranjan - President of Asia Pacific SMO", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "20dd4f02-1cf5-40f8-bc70-81ecdc22b0a9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.87, "x": 0.08, "y": 0.16 }, "kind": "list", "text": "Selling & Market Operations (SMOs) sit outside the Global Business Units (GBUs), creating three dimensions to P&G's matrix structure - GBUs, SMOs and Corporate Functions / Global Business Services (GBS)\nCorporate Functions and GBS report to Corporate, not the GBUs; resources within those organizations often have dual-line reporting", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "988bcd9f-43f7-438a-8bc5-b364bf1a6355", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.87, "x": 0.08, "y": 0.35 }, "kind": "list", "text": "GBU leaders are allocated significant costs from corporate, diminishing \"End-to-End\" accountability\nIf GBUs truly \"control\" the sales force as P&G suggests, which GBUs do the following executive officers named in P&G's 2017 Annual Report report to?", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9fa6b0f7-3c25-4f4b-a7fa-0793ecb3cd76", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.87, "x": 0.08, "y": 0.58 }, "kind": "list", "text": "If sales resources report \"hard-line\" into GBUs then why do SMO Presidents and SMOs themselves exist?\nIf they do not report into GBUs or there is \"dual-line\" reporting, then there is not \"End-to-End\" accountability\nGiven limited transparency and public disclosure on P&G's matrix structure, it is impossible to know what reality is from the outside (this is another reason why we are seeking a seat on the Board for Nelson Peltz)\nWhat we do know is that market share losses continue. Moreover, extensive due diligence and unsolicited feedback from recently retired P&G executives suggest changes are \"incremental\" at best:", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b2f630a7-2e3a-48ab-939a-44f08aa9ddb1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.13, "w": 0.9, "x": 0.05, "y": 0.81 }, "kind": "quote", "text": "\"PG is working on how to fine tune the Modus Operandi to create 'more End to End' that in reality is still a highly matrixed operation with plenty of shared services and shared accountability. This leads to a very long time for decisions to be made as many people need to input... Several people at the General Manager level have confirmed to me that while there is a push for change it all feels in reality 'business as usual'\" - Recently Retired GBU President, July 2017", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5ab35acc-2b70-454f-8852-3517d839fa1e", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“PG is working on how to fine tune the Modus Operandi to create ‘more End to End’ that in reality is still a highly matrixed operation with plenty of shared services and shared accountability. This leads to a very long time for decisions to be made as many people need to input... Several people at the General Manager level have confirmed to me that while there is a push for change it all feels in reality ‘business as usual’” — Recently Retired GBU President, July 2017", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0934-771a-b79c-4c40ad869af4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.4, "x": 0.05, "y": 0.97 }, "kind": "source-note", "text": "Source: Company filings and transcripts; recently retired P&G executives.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d4b77d64-c651-48f6-b852-7bc69ea65149", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.04 }, "kind": "title", "text": "Trian Strategic Initiative: Organize in a Way That Promotes Accountability", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3f6de399-36c3-41ee-87b3-6a0e65c6ada4", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "c10757d5-34aa-4f93-808a-1006851d1976", "evidence": "Uses a quote from a retired executive to contradict management's 'End-to-End' narrative.", "confidence": 0.8 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }