The cause is the focus of profit making has been

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management distraction. The cause is the focus of profit making has been shifted from local arena to global. Now making of budget is global responsibility, but European managers often did not understand the competitive and trade differences across markets. So P&G has to standardize and centralize their policies and practices out of their head office. The maximum resistance for the proposed change came from a huge number of efficient local managers left the company. Managing the Change: There are many elements which are to be worked out to make the change successful, which are listed as follows: Speed:The change should be implemented globally at a rapid speed and it requires aggressive plan and executives to implement the same. The new structure and work has to be designed across all global operations, assignments of people finalized and communicated and the new organizations started up on schedule. Employee Communication:Obviously the key to successful transformation is employee buy in. Proactive two way communication is the key to achieve that. The top management of the organization has to meet a good number of employees across all levels, functions and countries to seek feedback and provide clarifications on O2005. Follow the Global Strategy:An important element should be to give the great degree of standardization to the local management to align their own design with global strategy. This will give a feeling of independence to the local management while the global standard will also be met.

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