Building leaders to build business sustainability

MANILA, Philippines - Around the world, companies have differing opinions about what they consider as their most valuable assets. Most responses seem dependent on what industry they are in but many will consider it to be their capital expenditures such as their plant, production machinery, communication towers, logistics investments and the like. As the new president and general manager of Procter & Gamble (P&G) Philippines, I have frequently been asked what enabled P&G to operate for 75 years and grow successfully from its humble beginnings as a copra and edible oil products manufacturer to the country’s market leader in consumer goods. Without hesitation, I can answer that it is our People.

In P&G, we have always said that along with our Brands, our People are our greatest asset. While our Brands are the primary way we directly touch & improve lives, it is our People that enable us to do so. I suspect this holds true for many companies regardless of industry. It is our employees that bring to life the company values that must permeate every aspect of our operations to build a successful business amidst changing times. A former P&G CEO, Mr. R.R. Dupree once said, “If you take away all our brands, the manufacturing process, the offices and all of our marketing, but left our people, we would rebuild it all back in ten years.”

Luckily, my challenge is not to rebuild the business or organization. P&G is already one of the country’s top consumer products companies and a market leader in the categories it plays in. For 75 years, it has constantly innovated to give Filipino families breakthrough products with superior quality and value. Years before I arrived, its brands had already introduced a host of the country’s first product innovations — like the first synthetic detergent with Tide, the first germicidal soap with Safeguard, the first disposable diaper with Pampers, the first winged sanitary napkin with Whisper, and the first 2-in-1 conditioning shampoo with Rejoice. As I step into my new role, the challenge for me now is to start the next 75 years by building on the long heritage, raising the bar, and taking the business to next level.

Perpetuate success, build leaders who build the business

In order to operate at the next level, companies must invest in training and enabling their people to become not just workers but innovative leaders. Workers will deliver the tasks required of them, but will often get caught up in the web of daily activity and short-term decision making. Managers who fall into this trap, and then leave or finish their assignment, also leave the people under them floundering and the business suffers.

Visionary leaders must have a vision for both their business and their people. Building the business by investing in programs that build leaders, who in turn will build the business, creates a self-perpetuating cycle and return on investment. The strategic choice of developing People must begin from top management and should be supported by managers at all levels of the organization.

Leverage your global network

Operating on a global scale continues to be a competitive advantage – both for the business and its people. Exposing employees to global resources and networks enables them to gain a wider base of knowledge on best business practices, successes, and failures globally. This enables them to reapply the best practices from around the region, especially in relevant expanding markets like India, China, and ASEAN, to the Philippines and provide even better products and value for the Filipino family.

Apart from increasing knowledge, organizations can accelerate the growth of employees with different or discontinuous assignments. Whether it is an international assignment, or responsibility for an international market based out of the Philippines, the challenge and stimulation this new experience brings can be uncomfortable yet motivating at the same time.

Teaching old and young dogs new tricks

As the third oldest P&G subsidiary in the world, I was pleasantly surprised to discover P&G Philippines’ unique heritage of past and present employees. Given its 75-year history in the country, we have an amazing alumni community, many of whom went on to become nation builders and leaders in their respective fields after P&G. Some of our alumni include Sen. Richard Gordon, Tony Meloto, Joey Cuisia, Jess Alcordo, and King Doromal. In my view, this is a proud testament of our choice to invest in the leadership development of our People over the past 75 years. And it is a good indicator that People will continue to be our greatest assets in the next 75.

Our alumni community serves as a great inspiration for current employees. Their stories and wealth of experience helps motivate and inspire the younger ones who have a long way ahead of them.

At the same time, we have many fresh, eager Gen Y employees who have all grown up with increasingly sophisticated technology and new media.

A company culture that provides older and younger employees the environment and opportunity learn from each other infuses a dose of daily diversity that can help bridge the gap. I sit in the same open workspace area as the rest of the employees and this is one barrier less for anyone who needs to approach me.

As I take on the challenge of growing the company sustainably during the first of its next 75 years, it will be critical to develop the people who will lead it long after I am gone. They will eventually be called upon to lead and deliver the local, regional, and global businesses. But when businesses are designed not just to deliver sales and profits, but also the next generation of leadership, then they become built to deliver sustainable, long term business success. This makes the difference on whether a company can grow its business for 75 years and be primed for 75 more.