Analysis: Noel Tichy on P&G's Lafley

Lafley's challenge was to give his senior managers the feeling that they were part of a decision-making process that was already just about completed

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Leaders who have good judgment track records never assume that anything will happen so easily. Aware that the ultimate goal is to produce a successful outcome, they are always vigilant. They are constantly checking to make sure that conditions are as favorable as they cam possibly make them to support the success of the judgment. If they need to take time and expand the decision-making process, they do.

In this case, that is exactly what Lafley did. When the revolt broke out, he stopped action and called the team together. With everyone sitting around the room, he invited each one to make their case against Henretta and/or for someone else. “I said, `O.K., here's what we're going to do. I want you to take your list. I want you to make the best case you can for why your candidate or candidates are a better choice than Deb.’ So we went around the table and I listened…sequentially, publicly, in front of everybody else. Then I said, `O.K. you know there were a couple of good cases. But let me tell you why I chose Deb.”

Lafley didn't expect that he would change his mind as a result of the meeting, and he didn't. Nevertheless, he did open himself up to the possibility. He heard his colleagues out and responded to their concerns directly and respectfully.

Lafley knew that even if the powerful vice chairmen and business heads were not transformed into supporters of Henretta, they were no longer justified in any visible resistance to the call. The important thing here is that he did not try to slam dunk his decision. He made time before moving on to set the stage for success.

Lafley understood that making the call was part of a longer process that required his active role in the execution phase. If he was not careful to maintain his support of Henretta during execution, there were plenty of political land mines that could make his call go bad. Lafely clearly understood his role was to stay with Deb not only in the “make it happen” first step but to be an active partner in the “self-correction” process.

So, after backtracking with the top team to defuse their rebellion, Lafley stayed on the case. This included giving Henretta the political backing to replace key members of her team, making it clear that everyone knew that he was in full support of her success. He also made himself available for mentoring and coaching Henretta.

Lafley declared his judgment call on Deb Henretta a victory only after the business turned around and there was irrefutable evidence of her success as a leader.

The Lafley case is excerpted from the soon to be published book Judgment: How Winning Leaders Make Great Calls by Noel Tichy and Warren Bennis, who have each spent decades studying and teaching leadership and advising top CEOs such as Jack Welch and Howard Schultz. Now, in their first collaboration, these titans of management offer a powerful framework for making tough calls when the stakes are high, information is limited, and the right path is far from obvious. They show how to recognize the critical moment before a judgment call, when swift and decisive action is essential, and also how to execute a decision after the call.