Alan George "A. G." Lafley (born June 13, 1947) is an American businessman who led
consumer goods
A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs, unlike a intermediate good, which is used to produce other goods. A microwave oven or a bicycle is a final good, but ...
maker
Procter & Gamble (P&G) for two separate stints, from 2000 to 2010 and again from 2013 to 2015, during which he served as chairman, president and CEO. In 2015, he stepped down as CEO to become executive chairman of P&G, eventually retiring in June 2016.
As CEO, Lafley was called "one of the most lauded CEOs in history"
and is credited with revitalizing P&G under the mantra “Consumer is Boss,” with a focus on billion dollar brands like
Crest
Crest or CREST may refer to:
Buildings
*The Crest (Huntington, New York), a historic house in Suffolk County, New York
*"The Crest", an alternate name for 63 Wall Street, in Manhattan, New York
*Crest Castle (Château Du Crest), Jussy, Switzerla ...
,
Tide
Tides are the rise and fall of sea levels caused by the combined effects of the gravity, gravitational forces exerted by the Moon (and to a much lesser extent, the Sun) and are also caused by the Earth and Moon orbiting one another.
Tide t ...
, and
Pampers
Pampers is a brand of baby and toddler products marketed by Procter & Gamble.
History
In 1961, P&G researcher Victor Mills disliked changing the cloth diapers of his newborn grandchild. He assigned fellow researchers in P&G's Exploratory Divis ...
. But he also brought in several new brands, like
Swiffer and
Febreze
Febreze is an American brand of household odor eliminators manufactured by Procter & Gamble. It is sold in North America, South America, Europe, Africa, Asia, Australia, and New Zealand.
First introduced in test markets in March 1996, the fabric ...
, by merging P&G's internal resources with outside “open” innovation, referred to as Connect + Develop.
Prior to rejoining P&G in 2013, Lafley consulted on business and innovation strategy, advising on
CEO succession
CEO succession refers to the process by which boards of directors ensure that their organization has the ability to sustain excellence in CEO leadership over time, with transitions from one leader to the next.
Commercial importance
CEO successio ...
and executive leadership development, and coaching experienced, new, and potential CEOs.
Early years and education
Lafley grew up in
Keene, New Hampshire
Keene is a city in, and the County seat, seat of Cheshire County, New Hampshire, United States. The population was 23,047 at the 2020 United States census, 2020 census, down from 23,409 at the 2010 United States Census, 2010 census.
Keene is ho ...
.
He graduated from
Fenwick High School in
Oak Park,
Illinois
Illinois ( ) is a U.S. state, state in the Midwestern United States, Midwestern United States. Its largest metropolitan areas include the Chicago metropolitan area, and the Metro East section, of Greater St. Louis. Other smaller metropolita ...
, and earned an
A.B.
Bachelor of arts (BA or AB; from the Latin ', ', or ') is a bachelor's degree awarded for an undergraduate program in the arts, or, in some cases, other disciplines. A Bachelor of Arts degree course is generally completed in three or four yea ...
from
Hamilton College
Hamilton College is a private liberal arts college in Clinton, Oneida County, New York. It was founded as Hamilton-Oneida Academy in 1793 and was chartered as Hamilton College in 1812 in honor of inaugural trustee Alexander Hamilton, following ...
in 1969. In 1970, after beginning a doctoral program at the
University of Virginia
The University of Virginia (UVA) is a Public university#United States, public research university in Charlottesville, Virginia. Founded in 1819 by Thomas Jefferson, the university is ranked among the top academic institutions in the United S ...
, he took a commission with the
U.S. Navy
The United States Navy (USN) is the maritime service branch of the United States Armed Forces and one of the eight uniformed services of the United States. It is the largest and most powerful navy in the world, with the estimated tonnage o ...
as a supply officer during the
Vietnam War
The Vietnam War (also known by #Names, other names) was a conflict in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. It was the second of the Indochina Wars and was officially fought between North Vie ...
stationed in
Japan
Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
. Afterwards, he studied at
Harvard Business School
Harvard Business School (HBS) is the graduate business school of Harvard University, a private research university in Boston, Massachusetts. It is consistently ranked among the top business schools in the world and offers a large full-time MBA p ...
, receiving his
M.B.A.
A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as account ...
in 1977. He joined P&G upon his graduation.
Career with P&G
Lafley steadily moved up through the ranks, leading some of P&G's laundry and cleaning businesses. Along the way, he was responsible for some of P&G's biggest innovations, including Liquid Tide and Tide with Bleach.
In 1994, Lafley returned to Japan to head all of P&G's Asian operations. In addition to repairing Japanese sales, he helped build P&G's business in China from less than $90 million to nearly $1 billion in sales. In 1999, P&G named Lafley to head the fast-growing beauty business as well as all of North American sales, which was its largest single market at the time.
Lafley took a similar leadership path to the P&G boardroom as
Durk Jager
Durk I. Jager (born 30 April 1943 - April 3, 2022) was a Dutch and American businessman, private investor and consultant. ; learning the soap and laundry businesses, going through Japan, and eventually leading all Asian operations, then returning to the US to lead the beauty business and ultimately North American sales. The
Dutch
Dutch commonly refers to:
* Something of, from, or related to the Netherlands
* Dutch people ()
* Dutch language ()
Dutch may also refer to:
Places
* Dutch, West Virginia, a community in the United States
* Pennsylvania Dutch Country
People E ...
-born Jager became the CEO in 1999, at a time when P&G was in the midst of a massive corporate
restructuring
Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons ...
that started in September 1998, which did not go well. In June 1999, Jager announced the layoff of 15,000 employees. In January 2000, news leaked that P&G was considering the acquisition of
pharmaceutical company
The pharmaceutical industry discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered to patients (or self-administered), with the aim to cure them, vaccinate them, or alleviate sympto ...
Warner–Lambert
Warner–Lambert was an American pharmaceutical company.
History
Formerly two separate entities, the first company was started in 1856, when William R. Warner founded a drug store in Philadelphia. Warner went on to invent a tablet coating process ...
(which was eventually sold instead to
Pfizer
Pfizer Inc. ( ) is an American multinational pharmaceutical and biotechnology corporation headquartered on 42nd Street in Manhattan, New York City. The company was established in 1849 in New York by two German entrepreneurs, Charles Pfizer ...
a few months later). Still, P&G stock lost about 48 percent of its value in the first three months of 2000.
As a result, Jager had the shortest CEO tenure in P&G history, resigning and was quickly replaced with Lafley in June 2000.
With Lafley leading the company for all 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 24 (including former brands
Folgers
Folgers Coffee is a brand of ground, instant, and single-use pod coffee produced and sold in the United States, with additional distribution in Asia, Canada and Mexico. It forms part of the food and beverage division of The J.M. Smucker Comp ...
and Actonel) and the number of brands with sales between $500 million and $1 billion increased five-fold with Lafley at P&G's helm.
On average, P&G's 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."
Recognition and thought leadership
Lafley is broadly recognized for his business leadership. He was awarded "CEO of the Year 2006" by
Chief Executive Magazine
''Chief Executive'' is a business magazine published by Chief Executive Group, LLC.
Description
''Chief Executive'' began publication in 1976. The magazine is published six times a year and has a circulation of 42,000 copies. It is audited twi ...
and the Peter G. Peterson Award for Business Statesmanship presented by the CED in 2009. In 2010, Lafley received the
Edison Achievement Award
Edison Awards is an American company that runs an annual competition honoring excellence in innovation in a broad range of categories.
Company
The Edison Awards were established by the American Marketing Association in 1987 and has been an in ...
, in recognition of his contributions to innovation, marketing, and human-centered design. He was also recognized with the 2010 Hall of Achievement Award, the highest honor given by the
Grocery Manufacturers Association
The Consumer Brands Association (CBA), formerly the Grocery Manufacturers Association (GMA), is a United States-wide trade association for manufacturers of consumer packaged goods (CPG).
The CBA represents companies that manufacture food, bever ...
. In 2011, Lafley was awarded the Warren Bennis Award for Leadership Excellence and inducted into the IndustryWeek Manufacturing Hall of Fame. In 2012, Lafley was inducted into the prestigious Advertising Hall of Fame.
In 2004, Lafley received the Golden Plate Award of the
American Academy of Achievement
The American Academy of Achievement, colloquially known as the Academy of Achievement, is a non-profit educational organization that recognizes some of the highest achieving individuals in diverse fields and gives them the opportunity to meet o ...
during the International Achievement Summit in Chicago.
In 2008, Lafley and strategy consultant
Ram Charan
Konidela Ram Charan Teja (born 27 March 1985) is an Indian actor, producer, and entrepreneur who works predominantly in Telugu films. One of the highest-paid Telugu film actors, he is the recipient of three Filmfare Awards and two Nandi Awa ...
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." Lafley has also authored several critically acclaimed articles for
Harvard Business Review
''Harvard Business Review'' (''HBR'') is a general management magazine published by Harvard Business Publishing, a wholly owned subsidiary of Harvard University. ''HBR'' is published six times a year and is headquartered in Brighton, Massach ...
, including “What Only the CEO Can Do” (May, 2009), “Executive Pay: Time for CEOs to Take a Stand” (May, 2010), “I Think of My Failures as a Gift” (April 2011), and “The Art and Science of Finding the Right CEO” (October, 2011) co-authored with notable author and leadership consultant, Noel M. Tichy.
In 2010, Lafley was honored with an
Edison Achievement Award
Edison Awards is an American company that runs an annual competition honoring excellence in innovation in a broad range of categories.
Company
The Edison Awards were established by the American Marketing Association in 1987 and has been an in ...
for his commitment to innovation throughout his career.
In 2013, Lafley and
Roger Martin wrote ''Playing to Win'', a practical approach to winning strategy—explaining what strategy is for (winning) and what it's about (choice).
References
External links
Book - The Game-Changer by A.G LafleyThe Game-Changer Book Review at Letters on PagesPlaying to Win Home PageA.G. Lafley Profile at Leading AuthoritiesClayton, Dubilier & Rice Home Page
{{DEFAULTSORT:Lafley, A. G.
American chairpersons of corporations
American chief executives
Procter & Gamble people
1947 births
Living people
Hamilton College (New York) alumni
Harvard Business School alumni
People from Keene, New Hampshire