Clorox

Implementation Program: 2007

clientresults_logo_clorox

Background:

  • In the five years prior to Don Knauss’ 2006 appointment as CEO, Clorox had delivered average shareholder returns of 14% per year. The company had exceptionally profitable brands that held number one or two market share position in their respective markets; however, the company’s top line growth had slowed
  • Don, who had recently reinvigorated the growth of Coca-Cola’s North American business began applying the same, value-focused approach to improving profitable growth and shareholder value at Clorox

Actions:

  • Established the corporate goal of sustaining superior shareholder returns relative to peers and began measuring all brands and businesses on economic profit growth
  • Identified where the profitable growth potential was concentrated across the Clorox portfolio, by brand, channel, geographic region and customer
  • Focused business managers on the major trends impacting consumer demand and purchase patterns
  • Improved commercial strategies and marketing investment
  • Improved internal management decision processes and focused incentives on economic profit growth

Results: (subsequent 5 year performance)

  • Compounded annual economic profit growth of 13% per year
  • Top quartile shareholder returns