Colleen Jay's Speech to the Kansas City, KS,

Chamber of Commerce

February 4, 2005

"Good Afternoon,

First, I want to thank you so much for the invitation to speak to you today.  It is truly an honor to be here to celebrate our Kansas City plant's 100-year anniversary and to celebrate with such a distinguished group of people the great progress being made here in Kansas City, KS, and Wyandotte County.  I lead P&G's North American Home Care business and, for us, there is no more important business to our success than the hand dish products made right here in your city.  Our flagship in hand dish, of course, is Dawn--a brand which delivers superior grease cleaning and outstanding all-around performance.  Supporting Dawn is Joy--a mid-tier brand providing good cleaning at a great price--and Ivory--one of P&G's oldest brands which is gentle on your hands but strong on getting your dishes clean.  Three excellent brands with a home right here in Kansas City, KS.

One hundred years is truly a milestone to be proud of and to acknowledge.  When you think about our rapidly changing world, there are not a lot of institutions that are both 100 years old and still going strong.

In 1917, Forbes created its first list of the 100 largest companies in the U.S.  Procter & Gamble--which incidentally is 168 years old this year--was on that list at #59.  We sold 25 brands then.  Seventy years later in 1987, Forbes republished its original list and compared the 1987 list to the 1917 list of the top 100 companies.  In those 70 years, 61 companies had ceased to exist altogether.  Only 39 companies had survived and only 18 companies managed to stay on that top 100 list.  Procter & Gamble was one of those.  Those companies that survived had weathered World War I, the Great Depression, the Second World War, the economic cycles of the century, and unprecedented innovation and technological change.  As of last year, the original list companies still in the Top 100 were down to 10--a group that includes GE, duPont, Ford, General Motors, to name a few.  So, through all this change, not only Procter & Gamble but also our Kansas City plant has stood the test of time.  It has stood the test of time and remains strong.

What's the secret of staying strong, vital, and relevant?  What's the secret of 100 years?  Today I wanted to share my thoughts on what has made P&G--but more importantly our Kansas City plant--enduring entities.  Entities that can celebrate 100 years...and beyond.

History

First, a brief refresher on our Kansas City plant's history.

Kansas City was actually the very first Procter & Gamble manufacturing plant to be built outside Cincinnati, the location of our company's headquarters.  There were a number of factors driving the choice.  The meat packing industry in the area was one of the principal sources of fats for soap.  Its excellent transportation system--both rail and water--was another.  P&G purchased 23 acres along the banks of the Kansas River andone early afternoon in 1905, 20 cases of soap were packed in our new Kansas City plant.  There were fewer than 200 employees then, and 4 soap brands were produced--Ivory, Lenox, Denver's Best, and White Water bar soaps.  Here's a picture of the original plant under construction--you can see from the advanced technology of the times being used how far we've come!  Since then, the plant has seen products come and go, survived the Flood of 1951--good thing our soap floats--and continued to meet the challenges posed by ever-changing technology and tough competitors.

What is the Secret?

So, coming back to my question, what's the secret of 100 years?  The magnitude and velocity of the change over the past 100 years is unparalleled.  What is it about P&G and our Kansas City plant that has allowed them to prosper when so many others have fallen by the wayside?

Obviously, there are a number of things that an institution must do to stay vital...this is the subject of many business books.  And I certainly don't profess to have all the answers.

But, in my mind, there are 3 really important attributes that strong institutions have...and I think you'll see that P&G and our plant in Kansas City exemplify all 3.  They may seem simple, but I assure you that they are powerful and hard to get right over long periods of time.  But they often make the difference between success and failure in organizations--whether big global companies like P&G or your particular endeavor.

Overview

First, there must be an enduring focus on and respect for the consumer--or the end-customer.

Second, you must innovate--lead innovation and new thinking in every part of the organization.  In fact, I think the theme of today, "Celebrating the Past...Embracing the Future" speaks to this in volumes.  We learn from the past...but we must embrace the future, embrace change.

Last--but likely most important--is the critical importance of leadership.  Not leadership in the traditional sense of the CEO, General Manager, or Plant Manager, but the personal leadership that every single employee assumes as their responsibility.

I think that what separates P&G and our Kansas City plant from other places is a very deep appreciation of these factors.  Now let's take a look at each of these items in a little more depth beginning with the Consumer....

Consumer is Boss

One of the foundations of Procter & Gamble is that we deeply believe that "The Consumer is Boss."  We talk about 2 moments of truth.  The first is at the store shelf...do our brands get chosen?  The second occurs in the home, when a P&G brand is used...does the consumer love that experience?  A good example of this is one of our newest Home Care products--Febreze Air Effects.  This air freshener launched last summer and is doing very well so far because it provides a truly new, breakthrough product the consumers love to use.  Let's take a look at some advertising that shows what I mean.  Another Home Care product consumers are telling us they love to use is Cascade Action Pacs--a 2-in-1 pack that combines the strong cleaning power of Cascade with the grease-cutting action of Dawn--a great combination that is both simple to use and great at getting your dishes shiny and clean.  Here's some advertising that shows this amazing product....

The individuals in our Kansas City plant understand deeply that "The Consumer is Boss."  They track the market shares of our hand dish brands and our competitors' weekly--and I can tell you, if the shares on Dawn slip, I hear about it from the plant!  The quality of the products produced is outstanding...and they think about it not only as "what's inside the bottle," but also how the package appears on the shelf.  To a person, no one forgets that the "customer" that we must delight is not me or the plant manager...it is the person who uses--and hopefully LOVES--our products.  Net, I believe that the Kansas City plant knows that at the end of the day, the only vote that really matters is that of you--the consumer...and they do everything they can to earn those votes everyday.

Innovation

The second key factor is an ability to not only embrace change but to see it out and lead it.  In 1905, P&G was largely a soap and candle producer.  In 2005, P&G brands touch the lives of people around the world 2 billion times each day.  We are constantly working to bring to market products and services of superior quality and value that improve the lives of these consumers.  A great example of this is another one of our Home Care products--Mr. Clean Magic Eraser.  This product was not invented in a P&G lab but is the result of a partnership with one of our suppliers--an innovative approach to our business that is doing very well for P&G and our consumers.  Hopefully, you've all had a chance to try this product but, just in case, here's some advertising that shows how truly breakthrough it is.  And we're very excited about our newest Mr. Clean product--Mr. Clean Magic Reach  This innovation, which is just hitting store shelves that month, solves the problem of cleaning those hard-to-reach areas around your bathroom.  Here's the launch advertising....We also pride ourselves on innovative communication approaches--here's one of my favorites from some Swiffer advertising last year that has some people in it I'm sure you will all recognize....

In a similar way, our Kansas City plant has kept pace with innovation...which has meant constant change for the plant.  Many brands have been produced over time from those early soap days.  Today, the plant has 23 more acres of land than it started with.  The changes in brands and technologies over the year have required significant changes in the plant itself and in the kinds of skills required.  The Kansas City plant has always embraced innovation...from the granules towers that were added in 1929 to support Oxydol, to the tower of new synthetic detergents from World War II, to the recent overhaul of the plant in support of our growing dish liquids.  The question in Kansas City is never "if?" or "why?" but "how?" and "when?"...embracing change in support of product, cost, and skill innovation.  This has enabled it to be a critical part of our Fabric & Home Care business infrastructure.  And, importantly, the local government here in Kansas City, Wyandotte County, and the State of Kansas has been a supportive partner as we strive to continue creating jobs and keeping this plant as a vital member of your community.  For this support, we truly thank you.

Leadership

Finally, one of the key ingredients I see in "standing the test of time" is leadership.  Leadership shows up in a number of different ways.  We strive with our brands to lead not only in innovation but also in our communities.  Dawn, for example, has been very involved in using its superior grease-cleaning abilities to help with oil spill clean-ups.  This advertising gives you some sense of the impact we've had....  The Kansas City plant also recognizes its broader leadership responsibility within the local community here.  Part of this is the contribution to the Kansas City economy, estimated annually at $120 million, with purchases going to over 600 suppliers.  The plant is also active in many local organizations--some of which are shown here.  In fact, for this luncheon, we've brought back one of your prior Chamber Board members--Mike Guarasci--who now works with us in Cincinnati.  He says he misses Kansas City--both the Board and the great barbeque you just can't get in Cincinnati!  In addition to community leadership, every employee in P&G broadly, and certainly at the Kansas City plant, sees themselves as a leader.  This shows up in how the work gets done.  For example, our Kansas City people have an outstanding attitude towards safety and the environment--with a company benchmark of almost 4 million work hours without a lost work day injury and involvement in Mid-America Regional Council air quality improvement initiatives.

In summary, we are very proud of celebrating the 100th anniversary of the Kansas city plant this year.  Perhaps even more exciting is that the underpinnings of this longevity--the "consumer is buss" focus, embracing innovation and personal leadership--bode well for many more anniversaries to come.  And we're happy that we can be a small part of the great progress being made in this community--progress that will undoubtedly help Kansas City and Wyandotte County thrive during our next 100 years!  Thank you so much for celebrating this time with us and for allowing me the opportunity to speak with you today.

"Chamber helps Procter & Gamble celebrate 100 years

Strictly Business                                                             Cindy Cash is the president of the Kansas

by Cindy Cash                                                                City Kansas Area Chamber of Commerce    

    Quick!  Tell me who is turning 100 years old in Kansas City, Kansas this year.

    If you use Dawn in your dishwasher, Tide for your laundry or a Swiffer to help take care of the house, you shouldn't need any hints.

    By this time I bet you've checked out the back of these products to see that Procter & Gamble is their manufacturer.  The company has been in Kansas City, Kansas since 1905 and will celebrate its centennial year.

    Procter & Gamble started in Cincinnati in 1837, but came to this community to take advantage of at least four advantages it offered:  the Kansas River, the railroads, the stockyards and our workforce.

    The railroads and the river are necessary for shipping materials and product, but the river water is also an important ingredient for many Procter & Gamble products.  Our workforce is another obvious asset.

    But what was it about the stockyards that brought them here?  Elementary history books describe how settlers used animal fat or rendering for making soap and candles, and stockyards offered certainly aready supply of those byproducts.  However, these days synthetic materials are used.

    The plant has stayed in its location near the river, but the plant itself has undergone and continues to undergo many changes in looks, equipment, technology and products as well.

    The KCK Chamber is helping Procter & Gamble kick off its 100th anniversary by featuring its story at our annual meeting on Friday, February 4.  The theme for the meeting is "Celebrating The Pat, Embracing The Future:  People, Products and Service."

    Our featured speaker for the event will be Colleen Jay, general manager of Home Care Products for Procter & Gamble.  The company will also share some of its history in displays as well, not only of their products, but also their employees...."

Photos from the Chamber of Commerce Event

This display at the Reardon Center during the COC annual meeting was coordinated by Phil Glendening, a member of the Historical Team for the KC Plant's 100-year celebration.

Left:  A chronology from 1905-2005 of world and plant events was created by

Joyce Wisecarver, leader of the Plant Historical Team, and displayed at the

Reardon Center during the luncheon.

Right:  Kimberly Lagasse, leader of the Decorations Team for the 100-year celebration, coordinated a group who assembled centerpieces for the 90 tables at the luncheon.

Leslie Lewis, Trevor Andersen, Judy Masterson, and Ed Garza were among those who represented Procter & Gamble at the luncheon.  They also helped in the set-up of the P&G display.

Left:   from left to right--Jaime Montoya, KC Plant Manager; Colleen Jay, VP of Home Care Products; Phil Glendening, Plant Technician and coordinator of the display; Cynthia Singleton and Elton Lombard, Plant Human Resources Managers.

Right:   from left to right--Jaime Montoya, KC Plant Manager; Carol Marinovich, Kansas City, KS, Mayor; Colleen Jay, VP of Home Care Products; Dennis Moore, US Representative; and Phil Witt, WDAF-TV news anchor.

The Kansan

February 5, 2005....

By MELISSA SHUMAN

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