| To grow and create value, a company must be willing to change. That was one of the key points Procter & Gamble’s CEO A.G. Lafley made in his remarks to chief executives gathered at the NYSE to honor him as Chief Executive of the Year, a prestigious award conferred annually by Chief Executive magazine.
“Growth is an ongoing challenge,” he told the guests that packed a huge reception hall at the NYSE on July 12. “To sustain growth, a company must anticipate change and adjust strategic and capability choices ahead of external realities.”
Mr. Lafley reflected on P&G’s upcoming 169th birthday, saying that the company’s values and willingness to change, innovate, and develop and grow leaders were the factors that enabled it to sustain growth as long as it has.
Yet for Mr. Lafley, sustainable growth — while all-important — isn’t enough. “We must not only sustain growth, but we must contribute to the sustainability of the world that we live and work in today for the benefit of our children and grandchildren tomorrow,” he said.
Edward Kopco, chairman and CEO of Chief Executive magazine, praised Mr. Lafley as “an authentic leader who is more than just a successful person but a lighthouse of integrity.” “People today are not looking for leaders on horseback, let alone imperious CEOs,” he said. “They want to be led by those who offer honest strength and provide quiet conviction.”
A case in point is P&G’s Children’s Safe Drinking Water program, the focus of the company’s Live, Learn and Thrive initiative to help children in need around the world. The program brings P&G’s PUR® water purifier technology to developing countries through a global network of partners that includes UNICEF and CARE.
“Quite frankly, this PUR product was not a commercial success. The people who need it most are least able to afford it,” Mr. Lafley said in his remarks. “But we stuck with this program because we believe it was the right thing to do and knew that it would make a real difference in people’s lives.”
Mr. Lafley — the 21st recipient of the CEO of the Year award — follows in the footsteps of George David, chairman and CEO of United Technologies Corp. and last year’s CEO of the Year. Other winners of the award include The Coca-Cola Co.'s legendary former CEO Roberto Goizueta, Southwest Airlines Co.'s Herbert Kelleher and FedEx Corp.'s Fred Smith.
In his welcoming remarks, NYSE CEO John Thain commended Mr. Lafley for his tremendous job running P&G. He added levity to the ceremony when he referred to Mr. Lafley as “a true rock star,” saying that he joined only two others who had missed The Closing BellSM : Rod Stewart and P. Diddy. “You’re in a very, very exclusive club,” he teased Mr. Lafley, whose plane was delayed on account of summer storms.
A panel of five judges — all chief executives or chairmen of leading U.S. companies — evaluated the top 10 candidates nominated for the award by readers of Chief Executive magazine. The award is based on several criteria, including vision, integrity and competitiveness, team leadership and the ability to develop and nurture talent. Leading factors taken into consideration include the ability to guide an ailing enterprise, pioneer a company in international markets, and manage technological innovation.
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