HRM3183 Linking Performance Management to Strategy at Procter & Gamble: Performance Management Case Study, UPTM, Malaysia

The products were a success in terms of improving both the human condition and profitability. As a second example, consider a situation in P&G Brazil, where P&G feared a shutdown due to decreased business volume. Low-income consumers were the fastest- growing segment of the population, but P&G’s global premium products were too expensive for this market segment. Local P&G teams decided to live with families, scrutinized every P&G
process in an attempt to reduce costs, and ended up creating an innovative product line they dubbed “basico” (for “essential” in Portuguese). The team members felt that they were doing good for the world, not just making money for the corporation. Demand immediately outpaced supply when the first “basico” products were launched, which included women’s hygiene, diapers, and greener laundry detergent. The company quickly captured market share through small neighborhood shops, and premium products were no longer offered. The business in Brazil became a profitable global growth model, and not just for emerging countries. As a consequence, “Tide Basic” was recently introduced in the United States.

In sum, P&G’s strategy inspires employees to add their hearts to their heads and aims at finding creative solutions when purpose-inspired opportunities and commercial considerations seem to collide.