Procter & Gamble (P&G), a consumer goods giant, has undergone a significant shift in its innovation approach. This change, termed ‘Lean Innovation,’ combines lean startup methodology with P&G’s established research and development practices. The shift was spearheaded by P&G’s Chief Innovation Officer, Kathy Fish, who aimed to create a culture of entrepreneurship within the company.
Lean Innovation has three key elements: desirability, feasibility, and viability. Desirability is about understanding what customers want, feasibility involves creating a product that can be manufactured, and viability is about ensuring the product can generate a profit.
P&G’s adoption of Lean Innovation has led to several successful product launches, including Dawn Powerwash dish spray. This product was developed after the team discovered that many consumers disliked the time-consuming process of dishwashing. The team then created a product that made dishwashing faster and easier, which proved to be a hit with consumers.
The Lean Innovation approach has also allowed P&G to improve its speed to market, with product development times cut by up to 50%. The company has also seen an increase in the number of successful product launches, and a decrease in the number of failed products.
The success of Lean Innovation at P&G demonstrates the potential benefits of combining established corporate practices with entrepreneurial thinking. It shows that large companies can remain innovative and responsive to consumer needs, even in a rapidly changing market.
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