In the early 2000s, faced with an alarming gap between its growth goals and what its innovation pipeline was delivering, Procter & Gamble created a “new-growth factory“-a network of novel structures and capabilities to rapidly shepherd new products and even business models from inception to market. The resulting innovations range from a 33-cent razor for customers in emerging economies to Tide Dry Cleaners-establishments with drive-through windows and 24-hour drop-off and pickup.
Brown, who is P&G’s chief technology officer, and Anthony describe the factory’s components and practices: new-business-creation groups, entrepreneurial “guides” to help them, an innovation manual, a disruptive-innovation “college,” and more. They also offer six lessons for leaders seeking to set up new-growth factories of their own. Although the factory is still ramping up, its early successes suggest that collective creativity can be managed-and can generate sustainable sources of revenue growth no matter how big a company becomes.