BY: BHISHAM GOLANI NISHANT DESAI VIVEK SAHAY

Circle of Doom
Missed sales forecasts Start of failure Building of overhead They raised prices

Setting up of Unrealistic targets

Throwing money for solution

Incentives to buy more products than were being sold

Cut marketing spending

Increases in Prices
Sharper drop in sales

The Traditional Model of Industry Life Cycle

Fermentation

Shakeout

Maturity

Decline

Sales volume

Time

Case Coverage
Early Achievement Performance Culture

Results

SKU Reduction

Working out Matrix

Trade Loading

Duracell

Scope
Develop Need for Change

Implement Action, Evaluate and stabilize

Diagnose And Articulate

Involve Key Actors

Organization Structure

Matrix Organization
GBU
Grooming (blade) Personal Care Commercial Operations North America Europe Asia Pacific

Manufacturing & Technology

Oral Care
Duracell Braun

Latin Amer.
AMEE

Corporate Staff Function

Matrix Org Solutions

Reporting

Accountability

Personal Persuasion

Conflicting Priorities

SKU Reductions
Difficult part was its identification Information was major barrier SKU were reduced from 24, 000 to 7000 Eliminated 17000 SKU contributed only 1 % of total sales Impact on top line was minimal

Eliminating Trade Loading

External consultants employed to benchmark the performance Change in Reward systems Main objective was to achieve 2/3 rd sales from segments where its market share was growing Franchise Health Chart Targets become part of each manager

Problems due to SKU eliminations

Resistance by some customers Some customers set their yearly budgets based on loading Temptation to move back to it by sales force

Benefits due to SKU eliminations

Better forecasting of demand Improvement in scheduling of factories

Improvement in working capital management Management of Inventory improved

Duracell
In the Spring of 2001 21 months consecutive decline in market share Mark Leckie was appointed as

the new president of Duracell

He found wrong strategy Same strategy of blades and razors - R&D and technological advantage was applied to batteries as well.

New Strategies
Promoting high priced Ultra batteries Managing price gaps with competitors

Emphasized on blocking and

tackling

Media budget for the first time

New technology shift from alkaline batteries

Change in Performance Culture

Rewarding for performance not for efforts Some were satisfied and some were quite dissatisfied

Business Results
By mid 2002

Decline halted & expectation had become realistic Promises kept and forecast met Trade loading had been eliminated Market shares of key products increased Quarterly financial targets were being met S&P 500 was 20% down Gillette share price were 20% up.

Leadership Challenges
Everything was on track again but new challenges were there on the way One big problem pace of change A feeling of insufficient rewards No social life and round the clock working environment Loyal employees had started thinking about switch to another company

Summing Up
High Level Of Data Disclosure Clarity from day One

Delegation Style

Doing What Matters

LEED framework
Learn Envision
Unconventio nal Comfort with ambiguity Innovative outcomes

Engage
Open & Objective Team leader Trustworthy & Ethical Delegate & Empower Grow and Develop

Execute
Drive change & results Decisive Attentive to Detail

Deduce