INNOVATION VS SIX SIGMA

Nilesh Kumar Rohit Dua Vinay Butta

New CEO, James

 James McNerney ,considered a huge prize by 3M  Stock jumped by 20%  First outsider to lead

What he did?
 Axed 11% of workforce  Intensified performance reviews  Tightened the purse strings  Introduced Six Sigma tools

Define Measure Analyze Improve Control(DMAIC) Design for Six Sigma(DFSS)

Six Sigma @ 3M
 Capital expenditure decreased from 980 mn $ to 677mn $  R&D funding kept constant at 1bn $ from 2001 to 2005  Save time and money

Has it worked?
 Has it led to reduction in creativity?  Long since 3M has come up with a breakthrough innovation(Multilayered optical Film)  Revenue from newer products has fallen to 1/4th from 1/3rd

Worked?
 Creativity can be easily squelched  Innovation is a disorderly process but Six Sigma is an orderly process  Six Sigma is effective when you know what outcomes we like to control  Process comes in the way of innovation

Six Sigma..
 Six Sigma lead to more incremental Innovation than new products  Allows innovation to get to the market faster

Buckley s Stand
You cannot create in that atmosphere of confinement and sameness
 Loosened the reins a bit and hope to dream of the previous 3M again

Thank You