The Issue: A.G. Lafley's Judgment Call

A.G. Lafley, Chairman and CEO of Procter&Gamble, skipped over 78 general managers with more seniority in making a key staff appointment without even consulting the rest of his management team. Lafley says there was almost a revolt over his decision. What could Lafley do to win back the support of his team and engage them in a process that was just about completed?

A.G. Lafley A.G. Lafley became chairman and CEO of Procter & Gamble Co. (PG) in June, 2000, with a mandate to quiet things down. He took over the consumer products giant when Durk I. Jager was pressured to resign after a tumultuous 17-month stint. At P&G, the thinking was that Jager had pushed too hard, too fast, to rip apart the insular culture and remake the company from the bottom up. The troops rebelled, and Jager found himself out of a job. Lafley, a 23-year P&G veteran, was being asked to restore equilibrium.

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