FranklinCovey On Leadership AG Lafley: Competing by Reinventing the Core
Dec 9, 2025
In this engaging conversation, AG Lafley, former CEO of Procter & Gamble and author, shares insights drawn from his extensive career in innovation and leadership. He emphasizes the importance of treating mature businesses as 'eternal restarts,' advocating for continuous innovation and a deep understanding of customer needs. Lafley discusses P&G's strategic exits from noncore businesses and the necessity of aligning strategic choices. Additionally, he highlights the value of open innovation and empowering frontline leaders to drive success.
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Eternal Restart For Mature Cores
- Treat a mature core business as an "eternal restart" that requires constant reinvention and occasional repair.
- Balance keeping the core, fixing leaks, and starting adjacent innovations to sustain long-term growth.
Learning By Sitting In The Woods
- AG Lafley described sitting on a riverbank in rural China observing a woman wash clothes to learn how consumers actually use products.
- He routinely observed makeup, skin care, diaper changes, and even tested adult incontinence products himself.
Customers Can't Always Name Their Needs
- Consumers rarely articulate unmet needs; they report dissatisfaction or what they don't want instead.
- Observing behavior (anthropology) reveals latent needs that spawn breakthroughs like Febreze and Swiffer.
