Notes Design

In today's business climate, is it possible for rivals to collaborate even as they compete? Apparently so, according to a New York Times interview with Procter & Gamble CEO A.G. Lafley: though P&G and Clorox are competitors, P&G actually developed Clorox's Glad Press-and-Seal wrap.

"We set a goal, that half of the innovations we take to market should have external front-end partners," Lafley explains. "We'll accept innovation help from any source, even competitors.... So we compete like crazy with Clorox on cleaning products, but partner with them on wraps."

What we found most interesting is Lafley's forward-thinking view of product innovation:

Lafley: ...We have regular innovation reviews, where we move ideas and best practices around our 22 businesses.

Interviewer: And yet only half of your product innovations succeed. Why isn't the rate higher?

Lafley: I don't really want it to be. Human nature is such that, if we push our people to drive the batting average up, they'll try to hit more safely, take a shorter swing, go for the singles instead of home runs.

Lafley recently wrote The Game-Changer, a book on business innovation, with management consultant Ram Charan.