Thursday, May 15, 2008
Is P&G the only risk-taking major corporation?
Procter & Gamble has changed its culture to encourage and reward risk taking. This is rare. Even though it is clear that unless a company takes reasoned risk, it will eventually fail. The average life of a Fortune 500 company is 18 years and dropping. Yet, in most companies risk taking is not rational as the punishment for failure far exceeds the rewards for success. This has to change if we are to remain competitive in the long run.