How P&G Pampers New Thinking

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Identifying a product need is only half the battle; creating a loyal buyer is the other. Along with thinking about function, P&G has increased emphasis on design in an attempt to get consumers to connect with a product emotionally. Lafley describes the development of Tampax Pearl, a sleek new tampon and applicator aimed at teen consumers. Gone was the white paper wrapper that "crackled loudly—a source of embarrassment to women, particularly teenagers," Lafley writes. The Game-Changer abounds with other stories that bring P&G's innovation principles to life, like those involving skin-care products SK-II and Olay, as well as Tide and odor remover Febreze.

The book falls short in the comparisons Charan makes with innovation practices at other companies such as Nokia (NOK), 3M (MMM), General Electric (GE), and Hewlett-Packard (HPQ). At times, these seem like an artificial means of increasing the book's scope. Moreover, the approach leaves less space for Lafley's more insightful, detailed stories.

By publishing his book now, Lafley, 60, isn't able to evaluate a full career's worth of innovation efforts. He has another five years before he reaches mandatory retirement age. Results at the company have weakened lately, and Lafley will tell you that sustaining them is his biggest challenge. The book is an important statement on what he thinks will make the difference. "We have not perfected the process of innovation—not by a long shot," he writes. "But I have no doubt the right building blocks are in place because we have thought innovation through, step by step." The Game-Changer provides a valuable guide.

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