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## The Next Generation of Leadership 

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The bottom line is this: P&G is getting back on track. We have what it takes and we’re doing what it takes to stay in the lead – now, and in the future. We’re making clear strategic choices, strengthening operational excellence and operating with rigorous financial discipline. We’re delivering the earnings growth to which we’ve committed – ahead of plan. We’re generating cash from every business unit – at record levels. We’re delivering returns that exceed the performance of the Dow Jones index and the S&P 500. In short, we are returning to the level of performance you, and we, expect from P&G – and we are determined to keep it up. 

I want to close this letter with one final point. The reason things work well at P&G is that everyone is an owner and a leader. We hire people because they’re leaders. We give them the training, development and experience to become even stronger leaders. We promote people who deliver superior results, operate with integrity and strengthen those around them. We have a culture that values and embraces leadership. That’s true at the top of our organization. In the middle. At entry-level. It’s true of people who've just joined P&G, as well as those who’ve spent 20- or 30-year careers at P&G. 

The key in such an organization is to provide individual and business unit growth opportunities, and then to empower people to lead and execute with excellence. That is precisely what we’re doing at P&G. I have no doubt we have the right organization to keep our Company growing. In these past two years, I have witnessed a passionate sense of ownership for our business that deepens my confidence in P&G’s future, no matter what challenges we may face. 

As owners of Procter & Gamble, you can be assured that the pioneering spirit, operating discipline and dogged commitment to being in the lead that have always characterized this Company – for 165 years! – are as alive today as they have ever been. 

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August 5, 2002 

