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## The New “Interconnected” Organization 3 

The third “new” reality is the emerging importance of operating as an interconnected company. A recent report by industry consultant Booz Allen Hamilton noted “’Vertical’ thinking (i.e., own or control every link in the supply chain) has given way to ‘virtual’ thinking (i.e., create a flexible web of supply relationships and focus exclusively on what one does best).” The third “new reality” is the emerging importance of operating as an interconnected 

At P&G, we see this as an enormous opportunity – in part, because that’s where the market- place is headed and, even more so, because P&G has a strong history of developing partner- ships that bring out the best in us and our partners. We’ve done it for years with advertising agencies, customers, joint venture partners and technology suppliers. 

When Dr. John’s, the maker of SpinBrush toothbrushes, approached us about licensing the Crest name, we recognized the opportunity. Within five months of that first contact, we bought the company and then brought Crest’s new, powered SpinBrush to market in record time. Crest SpinBrush, now in 20 markets, has a 50% volume share of the growing powered- brush category in the U.S. and has quadrupled the sales of the original Dr. John’s product. 

When we developed the bisphosphonate technology in Actonel, we increased marketing capability by partnering with Aventis, whose field sales force had broad access to and credibility with doctors. The partnership worked well, and today Actonel is a nearly $400 million brand and growing. 

Our vision is that P&G will be the best company in the world at spotting, developing and leveraging partnerships in every area of the business. In fact, I want P&G to be a magnet for best-in-class partners who want to build significant new business together. 

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