Exhibit 20
----------
Press Release Dated September 9, 1998
FOR IMMEDIATE RELEASE
P&G PURSUES GREATEST GROWTH EVER
NEW GLOBAL ORGANIZATION DESIGN TO DRIVE BIGGER IDEAS
TO WORLD MARKETS FASTER
* * *
NAMES JAGER CHIEF EXECUTIVE, PEPPER CHAIRMAN, EFFECTIVE JAN. 1, 1999
CINCINNATI: Sept. 9, 1998: Procter & Gamble today announced far-reaching
changes to its organization structure, work processes, culture and reward
structure, to accelerate the company's growth by driving bigger, more stretching
goals and plans, more breakthrough innovations and greater speed throughout its
operation.
"We intend to accelerate sales and profit growth and returns to our
shareholders by increasing our capability to create and build large, profitable,
leadership brands globally, through greater stretch, innovation and speed," said
P&G Chairman and Chief Executive John Pepper. "We have been headed in the
direction of operating as a global company for many years, and the changes we're
making will now enable us to fulfill this goal."
PLAN GLOBALLY, WIN LOCALLY
There are five key elements of the initiative, called Organization 2005:
(bullet) Global Business Units (GBU) - P&G will move from four business units
based on geographic regions to seven Global Business Units based on
product lines. This change will drive greater innovation and speed by
centering strategy and profit responsibility globally on brands, rather
than on geographies.
(bullet) Market Development Organizations (MDO) - P&G will establish eight
Market Development Organization regions. MDOs will maximize the
business potential of P&G's entire portfolio in each local market by
developing innovative local market strategies, new strategic alliances
and distribution channels, superior retail customer relationships and
external relations programs.
"There is a BIG difference between selling products in 140 countries around
the world and truly planning and managing lines of business on a global basis,"
Pepper said. "We believe this difference can be measured, over time, in billions
of dollars in sales - for P&G and its retail customers - and we're organizing
ourselves to take better advantage of this opportunity.
"The key to operating globally is to be global and local at the same time.
By marrying the strategies, innovation and brands of Global Business Units with
the superior marketplace understanding and capability of the Market Development
Organizations, we accomplish this," continued Pepper. "We will be able to
deliver bigger innovations to consumers faster, better serve our global and
local customers, and build stronger market partnerships."
(bullet) Global Business Services (GBS) - P&G will establish a single, global
organization whose mission is to provide essential business services,
such as accounting, employee benefits and payroll, order management,
and information and technology services to the rest of the company.
GBS will enable P&G to achieve significant economies of scale, while
improving overall quality and speed of these services.
(bullet) Corporate Functions - Many individuals currently in corporate staff
roles will now do similar work, but will be realigned into GBUs, MDOs,
or GBS. The remaining corporate staff will focus on developing new,
cutting-edge functional knowledge and on transferring this rapidly
around the world. The Corporate Functions also will continue to provide
corporate services, such as financial reporting and shareholder
communications.
(bullet) Changing culture - P&G will overhaul reward systems, training programs
and other aspects of the corporate culture to create an environment
that produces bolder, more stretching goals and plans, bigger
innovations, and greater speed.
"Taken together, these changes position us for the most productive period
of growth in our 161-year history," Pepper said.
A list of the new organization units and the officers who will lead them is
attached.
JAGER NAMED CEO, EFFECTIVE JANUARY 1
P&G also announced today that the Company's Board of Directors has elected
Durk I. Jager, currently president and chief operating officer, to become
president and chief executive on January 1. Pepper will continue as chairman
from January until Sept. 1, 1999, to see the organization through the transition
to the new design. At that point, Jager will also assume the chairmanship.
Pepper will retire from the Company and, consistent with Company tradition, will
become chairman of the executive committee of the Board, succeeding Edwin L.
Artzt, who will retire from the Board.
"Durk Jager personifies the essential qualities that will be critical to
realizing the goals and vision we are pursuing," Pepper said. "He is an
outstanding strategic thinker and a passionate advocate for greater innovation
and speed. He has led truly fundamental strategic changes, such as Efficient
Consumer Response and simplification and standardization, that have had an
impact not only on P&G, but also have reshaped markets and changed the rules of
the game.
"I recommended to the Board of Directors that Durk assume this role in
January 1999 because of my belief that this major organization change should be
led from the beginning by the team who will be leading it in the years ahead.
Durk is the right person to lead the company at this time," Pepper said.
"I am very committed to the changes we are announcing today and honored by
the opportunity to help lead them," said Jager. "I believe they will enable P&G
to reach higher, get more out of our innovative capacity, and profit from
greater speed.
"It is also an honor to succeed John Pepper," continued Jager. "This
Company would not be nearly as strong or as global without John Pepper's
leadership and extraordinary commitment to P&G people. Under his leadership,
P&G's earnings per share has grown an average of 14 percent annually, and total
shareholder return has averaged 37 percent annually. I find great assurance
knowing we will continue to benefit from John's leadership through the
transition, and beyond," Jager said.
TRANSITION PLAN
The GBS leadership will formally assume their responsibilities on October
1. GBU, MDO and Corporate Function leaders will formally assume their new
responsibilities on Jan. 1, 1999. In addition, virtually all will maintain their
current responsibilities through July 1, 1999, to ensure continuity during the
transition. Effective July 1, 1999, the Company will officially begin managing
and reporting the business on the new basis.
FINANCIAL IMPACT
The Company said it anticipates there will be costs associated with this
reorganization that go beyond its current program of ongoing restructuring.
Design work remains to be completed over the next several months to better
determine the scope of these costs and related future profit benefits. The
company expects to provide an update late this fiscal year.
GREATER GROWTH AHEAD
Pepper concluded: "We've often expressed the view that as good as our
results have been, they are not as good as the quality and capability of Procter
& Gamble people would lead us to expect. I am confident that this change, and
the men and women who will lead it, will position Procter & Gamble for the
greatest growth in our Company's history."
Procter & Gamble markets approximately 300 brands to nearly five billion
consumers in over 140 countries. They include Tide, Ariel, Crest, Pantene Pro-V,
Always, Whisper, Pringles, Pampers, Oil of Olay, Vicks and Didronel. Based in
Cincinnati, Ohio, USA, P&G has on the ground operations in over 70 countries and
employs more than 110,000 employees worldwide.
* * *
PR Contacts: ON 9/9 ALL MEDIA CALLS TO 513/983-5489
AFTER 9/9: Simon Denegri -513/983-9332; Wendy Jacques-513/983-3889
Bios and photos available at http://www.pg.com/news
PROCTER & GAMBLE ORGANIZATION LEADERS, TITLES
GLOBAL BUSINESS UNITS
Unit Leader Title
Baby Care (Cincinnati) Mark Ketchum President-Global Baby Care
Beauty Care (Cincinnati) A. G. Lafley President-Global Beauty
Care and North America
Fabric & Home Care (Brussels) Wolfgang Berndt President-Global Fabric &
Home Care and Europe
Feminine Protection (Kobe) R. Kerry Clark President-Global Feminine
Protection and Asia
Food & Beverage (Caracas) Jorge Montoya President-Global Food &
Beverage and Latin America
Health Care & Corporate New Bruce Byrnes President-Global Health Care
Ventures (Cincinnati) and Corporate New Ventures
Tissues & Towel (Cincinnati) Gary Martin President-Global Tissues &
Towel and Global Product
Supply Officer
MARKET DEVELOPMENT ORGANIZATION REGIONS
Region Leader Title
North America (ex. Mexico) A. G. Lafley President-Global Beauty Care
and North America
Central & Eastern Europe Herbert Schmitz President-Central & Eastern
Europe
Middle East/Africa/General Fuad Kuraytim President-Middle East,
Export (MEAGE) Africa & General Export
Western Europe Toni Belloni President-Western Europe
ASEAN/India/Australasia Martin Nuechtern President-ASEAN, Australasia
& India
Japan/Korea Robert McDonald Vice President-Japan/Korea
Greater China Dimitri President-Greater China
Panayotopoulos
Latin America Jorge Montoya President-Global Food &
Beverage and Latin America
GLOBAL BUSINESS SERVICES
Leader Title
Michael Power Vice President
CORPORATE FUNCTIONS
Function Leader Title
Corporate Customer Business Steve David Global Customer Business
Development Development Officer
Corporate Finance Clayt Daley Chief Financial Officer
Corporate Human Resources Dick Antoine Global Human Resources
Officer
Corporate Information Todd Garrett Chief Information Officer
Technology
Corporate Legal Jim Johnson Chief Legal Officer
Corporate Marketing/Market Bob Wehling Global Marketing, Market
Research/ Government Research and Government
Relations Relations Officer
Corporate Product Supply Gary Martin President-Global Tissues &
Towel and Global Product
Supply Officer
Corporate Public Affairs Charlotte Otto Global Public Affairs
Officer
Corporate Research & Gordon Brunner Chief Technology Officer
Development
----------
Press Release Dated September 9, 1998
FOR IMMEDIATE RELEASE
P&G PURSUES GREATEST GROWTH EVER
NEW GLOBAL ORGANIZATION DESIGN TO DRIVE BIGGER IDEAS
TO WORLD MARKETS FASTER
* * *
NAMES JAGER CHIEF EXECUTIVE, PEPPER CHAIRMAN, EFFECTIVE JAN. 1, 1999
CINCINNATI: Sept. 9, 1998: Procter & Gamble today announced far-reaching
changes to its organization structure, work processes, culture and reward
structure, to accelerate the company's growth by driving bigger, more stretching
goals and plans, more breakthrough innovations and greater speed throughout its
operation.
"We intend to accelerate sales and profit growth and returns to our
shareholders by increasing our capability to create and build large, profitable,
leadership brands globally, through greater stretch, innovation and speed," said
P&G Chairman and Chief Executive John Pepper. "We have been headed in the
direction of operating as a global company for many years, and the changes we're
making will now enable us to fulfill this goal."
PLAN GLOBALLY, WIN LOCALLY
There are five key elements of the initiative, called Organization 2005:
(bullet) Global Business Units (GBU) - P&G will move from four business units
based on geographic regions to seven Global Business Units based on
product lines. This change will drive greater innovation and speed by
centering strategy and profit responsibility globally on brands, rather
than on geographies.
(bullet) Market Development Organizations (MDO) - P&G will establish eight
Market Development Organization regions. MDOs will maximize the
business potential of P&G's entire portfolio in each local market by
developing innovative local market strategies, new strategic alliances
and distribution channels, superior retail customer relationships and
external relations programs.
"There is a BIG difference between selling products in 140 countries around
the world and truly planning and managing lines of business on a global basis,"
Pepper said. "We believe this difference can be measured, over time, in billions
of dollars in sales - for P&G and its retail customers - and we're organizing
ourselves to take better advantage of this opportunity.
"The key to operating globally is to be global and local at the same time.
By marrying the strategies, innovation and brands of Global Business Units with
the superior marketplace understanding and capability of the Market Development
Organizations, we accomplish this," continued Pepper. "We will be able to
deliver bigger innovations to consumers faster, better serve our global and
local customers, and build stronger market partnerships."
(bullet) Global Business Services (GBS) - P&G will establish a single, global
organization whose mission is to provide essential business services,
such as accounting, employee benefits and payroll, order management,
and information and technology services to the rest of the company.
GBS will enable P&G to achieve significant economies of scale, while
improving overall quality and speed of these services.
(bullet) Corporate Functions - Many individuals currently in corporate staff
roles will now do similar work, but will be realigned into GBUs, MDOs,
or GBS. The remaining corporate staff will focus on developing new,
cutting-edge functional knowledge and on transferring this rapidly
around the world. The Corporate Functions also will continue to provide
corporate services, such as financial reporting and shareholder
communications.
(bullet) Changing culture - P&G will overhaul reward systems, training programs
and other aspects of the corporate culture to create an environment
that produces bolder, more stretching goals and plans, bigger
innovations, and greater speed.
"Taken together, these changes position us for the most productive period
of growth in our 161-year history," Pepper said.
A list of the new organization units and the officers who will lead them is
attached.
JAGER NAMED CEO, EFFECTIVE JANUARY 1
P&G also announced today that the Company's Board of Directors has elected
Durk I. Jager, currently president and chief operating officer, to become
president and chief executive on January 1. Pepper will continue as chairman
from January until Sept. 1, 1999, to see the organization through the transition
to the new design. At that point, Jager will also assume the chairmanship.
Pepper will retire from the Company and, consistent with Company tradition, will
become chairman of the executive committee of the Board, succeeding Edwin L.
Artzt, who will retire from the Board.
"Durk Jager personifies the essential qualities that will be critical to
realizing the goals and vision we are pursuing," Pepper said. "He is an
outstanding strategic thinker and a passionate advocate for greater innovation
and speed. He has led truly fundamental strategic changes, such as Efficient
Consumer Response and simplification and standardization, that have had an
impact not only on P&G, but also have reshaped markets and changed the rules of
the game.
"I recommended to the Board of Directors that Durk assume this role in
January 1999 because of my belief that this major organization change should be
led from the beginning by the team who will be leading it in the years ahead.
Durk is the right person to lead the company at this time," Pepper said.
"I am very committed to the changes we are announcing today and honored by
the opportunity to help lead them," said Jager. "I believe they will enable P&G
to reach higher, get more out of our innovative capacity, and profit from
greater speed.
"It is also an honor to succeed John Pepper," continued Jager. "This
Company would not be nearly as strong or as global without John Pepper's
leadership and extraordinary commitment to P&G people. Under his leadership,
P&G's earnings per share has grown an average of 14 percent annually, and total
shareholder return has averaged 37 percent annually. I find great assurance
knowing we will continue to benefit from John's leadership through the
transition, and beyond," Jager said.
TRANSITION PLAN
The GBS leadership will formally assume their responsibilities on October
1. GBU, MDO and Corporate Function leaders will formally assume their new
responsibilities on Jan. 1, 1999. In addition, virtually all will maintain their
current responsibilities through July 1, 1999, to ensure continuity during the
transition. Effective July 1, 1999, the Company will officially begin managing
and reporting the business on the new basis.
FINANCIAL IMPACT
The Company said it anticipates there will be costs associated with this
reorganization that go beyond its current program of ongoing restructuring.
Design work remains to be completed over the next several months to better
determine the scope of these costs and related future profit benefits. The
company expects to provide an update late this fiscal year.
GREATER GROWTH AHEAD
Pepper concluded: "We've often expressed the view that as good as our
results have been, they are not as good as the quality and capability of Procter
& Gamble people would lead us to expect. I am confident that this change, and
the men and women who will lead it, will position Procter & Gamble for the
greatest growth in our Company's history."
Procter & Gamble markets approximately 300 brands to nearly five billion
consumers in over 140 countries. They include Tide, Ariel, Crest, Pantene Pro-V,
Always, Whisper, Pringles, Pampers, Oil of Olay, Vicks and Didronel. Based in
Cincinnati, Ohio, USA, P&G has on the ground operations in over 70 countries and
employs more than 110,000 employees worldwide.
* * *
PR Contacts: ON 9/9 ALL MEDIA CALLS TO 513/983-5489
AFTER 9/9: Simon Denegri -513/983-9332; Wendy Jacques-513/983-3889
Bios and photos available at http://www.pg.com/news
PROCTER & GAMBLE ORGANIZATION LEADERS, TITLES
GLOBAL BUSINESS UNITS
Unit Leader Title
Baby Care (Cincinnati) Mark Ketchum President-Global Baby Care
Beauty Care (Cincinnati) A. G. Lafley President-Global Beauty
Care and North America
Fabric & Home Care (Brussels) Wolfgang Berndt President-Global Fabric &
Home Care and Europe
Feminine Protection (Kobe) R. Kerry Clark President-Global Feminine
Protection and Asia
Food & Beverage (Caracas) Jorge Montoya President-Global Food &
Beverage and Latin America
Health Care & Corporate New Bruce Byrnes President-Global Health Care
Ventures (Cincinnati) and Corporate New Ventures
Tissues & Towel (Cincinnati) Gary Martin President-Global Tissues &
Towel and Global Product
Supply Officer
MARKET DEVELOPMENT ORGANIZATION REGIONS
Region Leader Title
North America (ex. Mexico) A. G. Lafley President-Global Beauty Care
and North America
Central & Eastern Europe Herbert Schmitz President-Central & Eastern
Europe
Middle East/Africa/General Fuad Kuraytim President-Middle East,
Export (MEAGE) Africa & General Export
Western Europe Toni Belloni President-Western Europe
ASEAN/India/Australasia Martin Nuechtern President-ASEAN, Australasia
& India
Japan/Korea Robert McDonald Vice President-Japan/Korea
Greater China Dimitri President-Greater China
Panayotopoulos
Latin America Jorge Montoya President-Global Food &
Beverage and Latin America
GLOBAL BUSINESS SERVICES
Leader Title
Michael Power Vice President
CORPORATE FUNCTIONS
Function Leader Title
Corporate Customer Business Steve David Global Customer Business
Development Development Officer
Corporate Finance Clayt Daley Chief Financial Officer
Corporate Human Resources Dick Antoine Global Human Resources
Officer
Corporate Information Todd Garrett Chief Information Officer
Technology
Corporate Legal Jim Johnson Chief Legal Officer
Corporate Marketing/Market Bob Wehling Global Marketing, Market
Research/ Government Research and Government
Relations Relations Officer
Corporate Product Supply Gary Martin President-Global Tissues &
Towel and Global Product
Supply Officer
Corporate Public Affairs Charlotte Otto Global Public Affairs
Officer
Corporate Research & Gordon Brunner Chief Technology Officer
Development