- The organizational structure of Procter & Gamble is predominantly product-type divisional. This means decision-making, strategy, and management are determined by product-based divisions headed by autonomous CEOs.
- Procter & Gamble incorporates six geographic divisions that help it manage its vast global operations. Each division is headed by a company President with its own management team.
- Procter & Gamble is ultimately led by a CEO, President, COO, and six divisional CEOs. Functional groups are operated by various Presidents and Chief Officers in areas such as Branding, Product Supply, Human Resources, and Sustainability.
Introduction
Procter & Gamble is a multinational consumer goods corporation that was founded in 1837 by William Procter and James Gamble.
Procter & Gamble has a vast portfolio of brands in personal care, beauty, fabric, baby, grooming, and home care, to name a few. While the company has sold off many of its brands and restructured to streamline operations in recent years, it remains a behemoth today.
With that said, let’s explain how this company structures itself in 2022.
Product-type divisions
The organizational structure of Procter & Gamble is predominantly product-type divisional. Decision-making, strategy, management, and the very composition of work teams are determined by product-based divisions that house each of the company’s 10 product categories.
The company operates five divisions which it calls sector business units (SBUs):
- Baby, Feminine & Family Care.
- Beauty.
- Health Care.
- Grooming, and
- Fabric & Home Care.
Each SBU is led by a CEO who has complete autonomy and thus responsibility for any profit or loss that is incurred.
The most profitable SBUs that collectively account for 80% of sales and 90% of after-tax profit are called Focus Markets. Each works across the five SBUs on scaled market services and capabilities. This includes warehousing, logistics, customer teams, transportation, and even a requirement to represent the company externally.
The less profitable SBUs are organized into a separate unit called Enterprise Markets. In this case, each SBU works with the Enterprise Markets unit to deliver mutually agreed-upon business goals via innovation planning, supply planning, and operational frameworks.
Geographic divisions
As a vast company with global reach, geographic divisions help Procter & Gamble maintain a regional focus with distinct management teams for each division.
The company has six divisions, with each headed by a President:
- North America.
- Europe.
- Asia Pacific.
- Greater China.
- India, Middle East and Africa (IMEA).
- Latin America.
Leadership structure and functional groups
The company has a large team of executives with CEO David S. Taylor supported by President Jon R. Moeller and COO Shailesh G. Jejurikar. The next most senior level of management is the divisional, autonomous CEOs mentioned earlier in this article.
Functional groups allow Procter & Gamble to effectively support its diverse interests around the world. Various Presidents and Chief Officers head functional groups related to:
- Research, Development and Innovation.
- Human Resources.
- Equality & Inclusion.
- Product Supply.
- Ethics & Compliance.
- Analytics & Insight.
- Global Walmart.
- Branding.
- Legal and Secretariat.
- Sustainability.
- Communications.
- Finance.
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