Subject category:
Entrepreneurship
Published by:
IBS Center for Management Research
Length: 19 pages
Data source: Published sources
Abstract
3M was a company known for its innovativeness. In the nearly 100 years of its existence, the company had launched several innovative breakthrough products. However, 3M's culture of innovation had started weakening in the 1990s, and its financial performance had become lacklustre. James McNerney, who was the first outsider to become the Chief Executive Officer (CEO) of 3M, joined the company in 2001. He was expected to be a change agent who would provide the impetus for 3M's renewed growth. This case discusses the steps taken by McNerney to restore 3M's growth. Among other things, McNerney: (1) reorganised 3M's businesses; (2) changed the focus of the company's research and development activities to bring a greater customer orientation; (3) imposed financial controls; (4) increased the focus on the growing Chinese market; and (5) gave increasing importance to leadership training at the company. McNerney was also responsible for the somewhat controversial decision of implementing Six Sigma at the company. Despite the changes he made (some of which were considered rather radical) McNerney was quite popular with the board and employees of 3M. The case concludes with a commentary on McNerney's successor George Buckley's performance in the first year of his stint at the company, and questions whether he can live up to his predecessor's popularity.
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Abstract
3M was a company known for its innovativeness. In the nearly 100 years of its existence, the company had launched several innovative breakthrough products. However, 3M's culture of innovation had started weakening in the 1990s, and its financial performance had become lacklustre. James McNerney, who was the first outsider to become the Chief Executive Officer (CEO) of 3M, joined the company in 2001. He was expected to be a change agent who would provide the impetus for 3M's renewed growth. This case discusses the steps taken by McNerney to restore 3M's growth. Among other things, McNerney: (1) reorganised 3M's businesses; (2) changed the focus of the company's research and development activities to bring a greater customer orientation; (3) imposed financial controls; (4) increased the focus on the growing Chinese market; and (5) gave increasing importance to leadership training at the company. McNerney was also responsible for the somewhat controversial decision of implementing Six Sigma at the company. Despite the changes he made (some of which were considered rather radical) McNerney was quite popular with the board and employees of 3M. The case concludes with a commentary on McNerney's successor George Buckley's performance in the first year of his stint at the company, and questions whether he can live up to his predecessor's popularity.