Thinking smarter inside the box

Argues that it is dangerous for a company to lose sight of the basics (investing in its big brands) by diverting resources into too many peripheral activities.

Thinking Smarter Inside the Box

Patrick BarwiseLondon Business SchoolSeán MeehanIMD, Lausanne, Switzerland

Even great companies lose their way. Consider Procter & Gamble. By the late 1990s, P&G was one of the best known, most successful and most admired companies in the world. Yet in the final years of the last century, following a programme of 'innovation, stretch and change', P&G lost 50% of it value, a staggering $70 billion.

Under the ambitious 'Organisation 2005' programme, the company temporarily lost sight of the basics – investing heavily in their big brands – by diverting resources into a myriad...

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