Procter & Gamble System Overhaul: Managing Risk And Stakehol

Procter & Gamble System Overhaul: Managing Risk and Stakeholders in a Major IT Project

Procter & Gamble (P&G), a global consumer products company, faced a significant challenge when it needed to upgrade its nearly 20-year-old ordering, shipping, and billing software systems that were central to its business operations. The project was complex, affecting core processes that handled approximately 18,000 orders daily across more than 150 markets, generating US$200 million in revenue daily. Recognizing the risks involved in such a comprehensive upgrade, P&G designed a meticulous project management approach to mitigate potential issues and ensure business continuity.

This paper explores the project team roles, stakeholders, and key stakeholders involved in P&G’s system overhaul, illustrating how effective project management practices played a critical role in the project's success.

1. Project Team Roles

The success of P&G’s system upgrade was largely dependent on clearly defined project team roles. Key roles included project sponsors, core team members, regional teams, and support staff. The project sponsors, such as the vice president of global business services and other senior leaders, provided strategic direction, allocated resources, and ensured alignment with business objectives. Their leadership was crucial in making high-level decisions and mitigating risks associated with the project.

The core project team included IT professionals and project managers responsible for planning, executing, and monitoring the technical aspects of the upgrade. These individuals coordinated the implementation across multiple regions, ensuring that milestones were met and that the technical integrations aligned with business needs. In each region, local teams handled specific tasks, including training, testing, and support, under the guidance of regional project managers.

Support roles such as communication coordinators and risk managers were vital to maintaining clear communication channels and managing potential issues. The establishment of dedicated technical and project management offices in each region facilitated coordination and ensured localized support, which was essential given the project’s global scope. These roles collectively fostered collaboration and accountability, essential elements for managing a project of this scale.

2. Stakeholders and Why They Are Stakeholders

Stakeholders in the P&G project include anyone affected or involved in the upgrade process, directly or indirectly. Key stakeholders encompassed the project's internal teams, external retail partners, suppliers, and senior management. The internal teams, including the IT department, business units, and regional offices, were stakeholders because they were responsible for implementing, testing, and operating the new system.

External stakeholders included the company's retail partners and suppliers. Retailers relied on P&G’s systems for order processing, shipping, and billing; therefore, any disruption could impact their operations and sales. Suppliers and logistics companies who coordinated with P&G’s supply chain also depended on the company’s system stability and accuracy.

Senior management and regional leaders were stakeholders because their support and decision-making influenced resource allocation and overall project direction. Additionally, shareholders and customers could be considered broader stakeholders, as the project aimed to enhance operational efficiency, reduce costs, and improve customer satisfaction.

3. Key Stakeholders

Among all stakeholders, the key stakeholders specifically included the executive leadership team, regional presidents, and top retail partners. These groups had the most significant influence over the project’s strategic direction and the highest vested interest in its successful completion.

The executive leadership, particularly the regional presidents involved in overseeing different geographic areas, played a pivotal role. They provided critical approvals, supported risk mitigation strategies, and ensured that their teams adhered to the project timeline and objectives. Their commitment was essential for aligning the project with overall corporate strategy.

Top retail partners, including high-volume customers, were also considered key stakeholders because their operational stability depended on the seamless transition to the upgraded system. Their feedback and cooperation were instrumental during testing phases and rollout, minimizing disruptions and ensuring a smooth transition.

Conclusion

The P&G system overhaul exemplifies how effective project management—including clear role delineation, stakeholder engagement, and risk mitigation—can drive the success of complex IT initiatives. By understanding the roles within the project team, identifying stakeholders, and focusing on key stakeholders, P&G effectively minimized risks and ensured business continuity. The collaborative approach and strategic oversight were crucial in executing such a large-scale transformation without disrupting daily operations or damaging stakeholder relationships.

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