A. G. Lafley
Encyclopedia
Alan George "A.G." Lafley (born June 13, 1947) is the former Chairman of the Board, President and Chief Executive Officer of Procter & Gamble
, retiring from the company in 2010. Lafley is largely credited for turning around P&G during his tenure under the mantra “Consumer is Boss.” During his leadership, sales doubled, profits quadrupled, and P&G’s market value increased by more than $100 billion dollars.
Lafley graduated from Fenwick High School
in Oak Park
, Illinois
, to earn an A.B.
from Hamilton College in 1969. In 1970, after beginning a doctoral program, he took a commission with the U.S. Navy as a supply officer during the Vietnam War
. Afterwards, he studied at Harvard Business School
, receiving his M.B.A. in 1977. He joined P&G upon his graduation, where he worked until his retirement.
He is credited with revitalizing the company by focusing on P&G’s billion dollar brands like Crest, Tide
, and Pampers
, But he also brought in several new brands, like Swiffer
and Febreze
, by merging P&G’s internal resources with outside “open” innovation.
Lafley is a member of the General Electric
board of directors
and was named the chairman of Hamilton's Board of Trustees in December 2007.
He was awarded "CEO of the Year 2006" by Chief Executive Magazine
and the Peter G. Peterson Award for Business Statesmanship presented by the CED in 2009. Lafley has also been announced as recipient of the 2010 Edison Achievement Award, an annual award recognizing leaders that have made significant and lasting contributions to innovation, marketing and human-centered design throughout their careers.
On April 8, 2008 Lafley and renowned strategy consultant Ram Charan
published The Game Changer, an operating manager's guide to turning innovation into strategic advantage. Business Week selected The Game Changer as one of the year's "Top Ten Business Books". A.G. Lafley also authored the critically acclaimed article What Only the CEO Can Do published as the lead article in Harvard Business Review, May, 2009.
To determine CEO A.G. Lafley’s bonus of $4 million, Procter & Gamble Co. retained last year's basic performance categories including total company factor, business unit factor, and Gillette integration. However, it switched shareholder return for organic sales growth under total company factor.
On average, annual organic sales grew 5%, annual core earnings-per-share grew 12%, and free cash flow productivity averaged 112% a year since 2001. Further, during Lafley’s tenure, the Company’s market capitalization more than doubled, making P&G one of the five most valuable companies in the U.S. and among the 10 most valuable companies in the world.
Lafley is credited with making P&G a more consumer-driven and externally focused company—and with shaping a far more diverse, open, curious and courageous, connected and collaborative culture in which "innovation is everyone’s job."
A.G Lafley is known as a talented and lively speaker, and he frequently speaks to groups of top management teams, global leadership executives, and high-potential leaders who can meaningfully impact the future course of their company and even their industry. A.G. Lafley's presentations are known for their open and unstructured dialogues, and he is often sought after by groups looking for something beyond a canned keynote.
Procter & Gamble
Procter & Gamble is a Fortune 500 American multinational corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods....
, retiring from the company in 2010. Lafley is largely credited for turning around P&G during his tenure under the mantra “Consumer is Boss.” During his leadership, sales doubled, profits quadrupled, and P&G’s market value increased by more than $100 billion dollars.
Lafley graduated from Fenwick High School
Fenwick High School
Fenwick High School is a private university-preparatory school located in Oak Park, Illinois, founded in 1929 as part of the Province of St. Albert the Great . It is the only school operated and staffed by the Catholic Order of Dominican friars in the United States. It is named in honor of...
in Oak Park
Oak Park, Illinois
Oak Park, Illinois is a suburb bordering the west side of the city of Chicago in Cook County, Illinois, United States. It is the twenty-fifth largest municipality in Illinois. Oak Park has easy access to downtown Chicago due to public transportation such as the Chicago 'L' Blue and Green lines,...
, Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
, to earn an A.B.
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
from Hamilton College in 1969. In 1970, after beginning a doctoral program, he took a commission with the U.S. Navy as a supply officer during the Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
. Afterwards, he studied at Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
, receiving his M.B.A. in 1977. He joined P&G upon his graduation, where he worked until his retirement.
He is credited with revitalizing the company by focusing on P&G’s billion dollar brands like Crest, Tide
Tide (detergent)
Tide is the brand-name of a popular laundry detergent manufactured by Procter & Gamble and first introduced to the United States consumer in 1946. It is also marketed in Canada, Saudi Arabia, Morocco, India and several other countries...
, and Pampers
Pampers
Pampers is a brand of baby products marketed by Procter & Gamble. Pampers was at one time only used as a name for a disposable diaper.-Products:...
, But he also brought in several new brands, like Swiffer
Swiffer
Swiffer is a line of cleaning products by Procter and Gamble. Introduced in 1999, the brand uses the "razor-and-blades business model"; in this case, the consumer purchases the handle assembly at a low price, but must continue to purchase replacement refills and pads over the life of the product...
and Febreze
Febreze
Febreze is a brand of household odor eliminator manufactured by Procter & Gamble, sold in North America, Europe, Asia, Australia and New Zealand...
, by merging P&G’s internal resources with outside “open” innovation.
Lafley is a member of the General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
and was named the chairman of Hamilton's Board of Trustees in December 2007.
He was awarded "CEO of the Year 2006" by Chief Executive Magazine
Chief Executive Magazine
Chief Executive is a business magazine published by Chief Executive Group, LLC.-Description:Chief Executive began publication in 1976 and JP Donlon is its Editor-in-Chief. The magazine is published six times a year and has a circulation of 42,000 copies is audited twice yearly by BPA Worldwide...
and the Peter G. Peterson Award for Business Statesmanship presented by the CED in 2009. Lafley has also been announced as recipient of the 2010 Edison Achievement Award, an annual award recognizing leaders that have made significant and lasting contributions to innovation, marketing and human-centered design throughout their careers.
On April 8, 2008 Lafley and renowned strategy consultant Ram Charan
Ram Charan
Dr. Ram Charan is a business consultant, speaker, and writer.- Personal life :Charan worked in his family's shoe shop in Hapur, Uttar Pradesh, India while growing up...
published The Game Changer, an operating manager's guide to turning innovation into strategic advantage. Business Week selected The Game Changer as one of the year's "Top Ten Business Books". A.G. Lafley also authored the critically acclaimed article What Only the CEO Can Do published as the lead article in Harvard Business Review, May, 2009.
Compensation
While CEO of Procter & Gamble in 2008, Alan G. Lafley earned a total compensation of $25,568,212, which included a base salary of $1,700,000, a cash bonus of $4,566,100, stocks granted of $11,175,585, and options granted of $7,782,736.To determine CEO A.G. Lafley’s bonus of $4 million, Procter & Gamble Co. retained last year's basic performance categories including total company factor, business unit factor, and Gillette integration. However, it switched shareholder return for organic sales growth under total company factor.
Lafley’s Legacy at P&G
With Lafley leading the company for most of the 2000s, P&G more than doubled sales since the beginning of the decade. During that time, the company’s portfolio of billion-dollar brands grew from 10 to 22 (adding previously-sold Folgers and Actonel would bring the total to 24) and the number of brands with sales between $500 million and $1 billion increased fivefold with Lafley at P&G’s helm.On average, annual organic sales grew 5%, annual core earnings-per-share grew 12%, and free cash flow productivity averaged 112% a year since 2001. Further, during Lafley’s tenure, the Company’s market capitalization more than doubled, making P&G one of the five most valuable companies in the U.S. and among the 10 most valuable companies in the world.
Lafley is credited with making P&G a more consumer-driven and externally focused company—and with shaping a far more diverse, open, curious and courageous, connected and collaborative culture in which "innovation is everyone’s job."
A.G. Lafley Today
Today, as a highly sought-after speaker, teacher, consultant, and coach, A.G. Lafley continues his passion to affect positive change in individuals and organizations alike. He states, "This is what I like to do and do well... coach/have discussions about things I know how to do – industry and company transformation, business strategy and business models, innovation, leadership and make an impact, a positive change on the individual and his/her organization."A.G Lafley is known as a talented and lively speaker, and he frequently speaks to groups of top management teams, global leadership executives, and high-potential leaders who can meaningfully impact the future course of their company and even their industry. A.G. Lafley's presentations are known for their open and unstructured dialogues, and he is often sought after by groups looking for something beyond a canned keynote.