InvestSMART

Small-town Canadian a big-time player in the US

JOHN GRAY SMALE COMPANY EXECUTIVE 1-8-1927 - 19-11-2011
By · 26 Nov 2011
By ·
26 Nov 2011
comments Comments
JOHN GRAY SMALE

COMPANY EXECUTIVE

1-8-1927 19-11-2011

By PETER LATTMAN

JOHN Smale, who as chief executive led Procter & Gamble through a period of extraordinary growth and then, as chairman of General Motors, helped engineer a turnaround, has died of pulmonary fibrosis at his home in Cincinnati. He was 84.

Smale ran Procter & Gamble from 1981 until 1990. During his tenure the company strengthened its position internationally, pushing aggressively into Eastern Europe and Asia. He also oversaw a series of major acquisitions, including the $1.2 billion purchase of Richardson-Vicks in 1985. The largest deal in Procter & Gamble's history at the time, it brought the company well-known brands including Vicks cold medicine, Olay skin care products and Pantene shampoo.

Smale started with the company's toilet goods division in 1952 and earned his stripes managing Procter & Gamble's new Crest toothpaste brand. He persuaded the American Dental Association to endorse the toothpaste, a pioneering agreement at the time.

There were missteps, including a failed push into soft drinks and orange juice. But over his nine-year tenure, Procter & Gamble's overall revenue doubled to more than $US24 billion profits also doubled to $US1.6 billion.

In 1982, while Smale was still chief executive at Procter & Gamble, General Motors named him to its board. Ten years later, Smale and the GM board led a coup, ousting Robert Stempel as chairman and chief executive. Smale became chairman, and John Smith jnr the chief executive. During his tenure as GM's chairman, which lasted until his retirement in 1995, Smale helped rescue the car maker from the brink of bankruptcy and returned it to profitability. He also put in place management techniques from Procter & Gamble, streamlining GM's balkanised management structure and pushing for more forceful marketing of its brands.

Smale also served on several other corporate boards, including those of JPMorgan and Eastman Kodak.

Smale and his twin sister, Joy, were born in Listowel, Ontario, and grew up in Elmhurst, Illinois. Their father was a travelling salesman for the Marshall Field's department store chain.

He graduated from Miami University in Oxford, Ohio, in 1949. While there, he helped pay for his education by writing two how-to books Party 'Em Up and Party 'Em Up Some More that he sold to university students around the United States.

His wife of 56 years, the former Phyllis Weaver, died in 2006. His twin sister died in 2000. He is survived by four children and five grandchildren.

Google News
Follow us on Google News
Go to Google News, then click "Follow" button to add us.
Share this article and show your support
Free Membership
Free Membership
InvestSMART
InvestSMART
Keep on reading more articles from InvestSMART. See more articles
Join the conversation
Join the conversation...
There are comments posted so far. Join the conversation, please login or Sign up.

Frequently Asked Questions about this Article…

John Smale was the longtime executive who ran Procter & Gamble as CEO from 1981 to 1990 and later served as chairman of General Motors until 1995. His career matters to investors because he led major corporate turnarounds, drove international expansion and landmark acquisitions at P&G, and brought consumer-focused management techniques to GM that helped return the carmaker to profitability.

At P&G Smale pushed aggressive international expansion into Eastern Europe and Asia, oversaw major acquisitions (notably the 1985 $1.2 billion purchase of Richardson-Vicks), and strengthened core brands. Under his nine-year tenure as CEO P&G’s revenue doubled to more than US$24 billion and profits doubled to US$1.6 billion.

The Richardson-Vicks deal (1985, about US$1.2 billion) was the largest acquisition in P&G’s history at the time. It added well-known consumer brands such as Vicks cold medicine, Olay skin care and Pantene shampoo, broadening P&G’s product portfolio and supporting future revenue and profit growth—details investors watch when assessing consumer staples strength.

Smale joined GM’s board in 1982 and became chairman in the early 1990s after a leadership change. He applied management techniques from P&G to streamline GM’s fragmented structure, pushed for stronger brand marketing and helped rescue the company from the brink of bankruptcy, returning it to profitability—actions that directly affect shareholder value and corporate stability.

Yes. The article notes that Smale led a failed push into soft drinks and orange juice. While there were setbacks, his overall track record included significant growth in revenue and profit, and important strategic acquisitions.

Smale started at P&G in 1952 in the toilet goods division and managed the new Crest toothpaste brand. One notable achievement was persuading the American Dental Association to endorse Crest—a pioneering agreement that helped establish the brand’s credibility and market position.

Beyond P&G and GM, Smale served on the boards of other major companies including JPMorgan and Eastman Kodak, roles that reflected his broad influence in corporate America and are relevant for investors monitoring governance and board experience.

John Smale died at age 84 of pulmonary fibrosis at his home in Cincinnati. He was born in Listowel, Ontario, grew up in Elmhurst, Illinois, graduated from Miami University in 1949, and is survived by four children and five grandchildren. His long career and personal story are often cited when discussing leadership lessons in consumer and industrial companies.