Page 220 - Performance Leadership

Chapter 11 The Return of the Mission Statement • 209

Value Synthesis
Procter & Gamble’s (P&G) mission statement requires special atten-
tion. It matches all the characteristics we described, and manages to
synthesize all value propositions in a meaningful way. Procter & Gam-
ble states: “We will provide branded products and services of superior
quality and value that improve the lives of the world’s consumers. As a
result, consumers will reward us with leadership sales, profit, and value
creation, allowing our people, our shareholders, and the communities
in which we live and work to prosper.”
The mission statement has an external focus, as it addresses the cru-
cial stakeholders. First, the customer is mentioned, and, second it refers
to the company (“us”). Then the other stakeholders are mentioned:
employees, shareholders, and the community. It provides some clear
guidance on how to formulate the right strategies. It is clear that the
business is about branded products. The P&G label stands for superior
quality and services. This indicates P&G is, for instance, not seeking
cost leadership. Yet, the mission statement doesn’t describe which con-
sumer markets P&G addresses; it is broad enough to allow for brand
stretching. However, this should take place within the confines of the
strategic focus: consumer products of a high quality. Lastly, the inspi-
ration comes through using the verb “to prosper.” This means more
than money alone, it implies doing well in both tangible and intangi-
ble forms.
Within two sentences P&G describes the cause-and-effect relation-
ship of its value proposition. The core is brand value. Through brand
value customer value is realized, an improved life for consumers. If this
is done well, then other types of value, such as shareholder value, will
follow. The field of strategy formulation typically asks for choices. An
intuitive reaction would be to ask P&G to focus on one value driver,
instead of multiple. However, P&G is very clear that for P&G the var-
ious value drivers are synthesized. Shareholder value is the result of
customer value, which, in turn, is created by brand value. The value
propositions are not competing, but follow each other sequentially.
Based on P&G’s mission statement, designing the first set of strate-
gic performance indicators is not hard. Brand value can be measured
by establishing that premium consumers are willing to pay for the P&G
brand. After that, there should be metrics in place that track the quality