Once America's most innovative consumer products company, Procter and Gamble (P&G) began selling soaps and candles from a small store in Cincinnati in 1837 (Procter and Gamble, 2008). After one hundred and seventy-one years, P&G today has more than a hundred well-known brands in more than eighty countries (Markels 2006). Their products range from air fresheners to prescription medications. However, as P&G moved into the 21st century, they announced that they would miss their first quarter earnings guidance [Lafley, 2003]. Revenue margins were shrinking and P&G was rapidly losing market share to Kimberly Clark and Johnson & Johnson. After missed profits, P&G's stock price fell from $59.18 to $26.50 between January 2000 and March 2000 (PG). Upset, the board pressured then-CEO Durk Jager to resign after a lackluster attempt at P&G's turnaround and replaced him with AG Lafley, an unconfirmed CEO, who , according to analysts, lacked the experience to give P&G a much-needed cleanup (Lafley, 2003). ).Before Lafley took over from Jager, P&G was overworked, unfortunately wasting resources and opportunities with an overly complicated business strategy. P&G increased prices on its best-selling brands to compensate for missed sales and high production costs of new brands that failed to succeed [Lafley, 2003]. They had hired too many employees and were involved in several unprofitable investments. P&G hadn't had a successful product since launching ALWAYS women's products in the 1980s and each additional product failure only made their appeals smaller and smaller. Costs were high and morale was low, with employees unafraid to express their lack of confidence in P&G's leadership and direction. Subsidiaries blamed companies for missed profits and vice versa [Lafley, 2003]. Strategies between P&G brands clashed and each sought to protect its own interests. The prices of their consumer products were too high while the company was unable to satisfy its customers. These factors distracted them from what made them successful in the first place: being an industry leader in innovation (Markels, 2006). Seeing the downward spiral that P&G was quickly falling into, Lafley knew he had to act quickly. It was to provide the direction needed to turn around. He began dismantling the company from the inside out, then rebuilding it. He had a plan to change P&G and was quoted as saying: "We embraced change, and rather than trying to resist it, we committed to leading it..