P&G is focused on winning with those who matter most—consumers, customers and shareholders—and our fiscal 2013 results were a step in this direction. Chairman, President and CEO A.G. Lafley's letter to P&G shareholders in the 2013 Annual Report outlines how we are committed to do what it takes to get P&G back to balanced, consistent, reliable and sustainable value creation.
P&G’s Priority Is Value Creation. We’ve established value creation—for consumers and shareholders—as our clear priority. This starts with winning the value equation with the consumer, who is always the boss. We’ll measure our business performance through operating total shareholder return—requiring sales growth, progress on gross and operating margins, and strong cash flow productivity.
P&G is Focusing on Core Businesses, which include the leading, most profitable categories and countries. Delivering strong results in our core businesses is the largest contributor to shareholder value creation.
P&G Is Driving Value Creation through Productivity and Innovation. We are significantly strengthening productivity and cost savings efforts. Innovation and productivity are the two biggest drivers of value creation. Innovation remains our primary driver of growth, and we have a strong innovation pipeline, but we need to increase our focus on productivity—and we’re making significant progress.
P&G Is Improving Execution. Another focus area is to step-change operating discipline. We simply have to execute better, more consistently and more reliably than our competitors, to win with consumers and customers day in and day out.
P&G Is Investing in Capabilities for Growth. We’re making strategic, focused investments in innovation and go-to-market capabilities—two of our core strengths as a Company and sources of competitive advantage and growth.
P&G Is Committed to Winning. We will build on the past year, but we’ll be more focused. We have what’s needed to win—leading brands, a well-balanced geographic portfolio, a strong innovation pipeline that will only get stronger, a broad range of productivity initiatives, and an exceptional organization of P&G people who are passionate about consumers and P&G’s businesses.