Scribd Logo
Upload

Welcome to Scribd!

  • Whether The Relentless Emphasis On Efficiency Had Made 3M A Less Creative Company

    Uploaded by

    keshaw1983
    37 views5 pages
    1) James McNerney was hired as the first outsider CEO of 3M in 2000, which was seen as an aberration for the insular company based in St. Paul, Minnesota. 2) Under McNerney, 3M adopted the Six Sigma process from his time at GE, which initially boosted profits by 22% per year. 3) However, experts later questioned if McNerney and Six Sigma's relentless focus on efficiency hampered 3M's creativity and innovation over the long run.

    Original Description:

    Original Title

    3m

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1) James McNerney was hired as the first outsider CEO of 3M in 2000, which was seen as an aberration for the insular company based in St. Paul, Minnesota. 2) Under McNerney, 3M adopted the Six Sigma process from his time at GE, which initially boosted profits by 22% per year. 3) However, experts later questioned if McNerney and Six Sigma's relentless focus on efficiency hampered 3M's creativity and innovation over the long run.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    37 views5 pages

    Whether The Relentless Emphasis On Efficiency Had Made 3M A Less Creative Company

    Uploaded by

    keshaw1983
    1) James McNerney was hired as the first outsider CEO of 3M in 2000, which was seen as an aberration for the insular company based in St. Paul, Minnesota. 2) Under McNerney, 3M adopted the Six Sigma process from his time at GE, which initially boosted profits by 22% per year. 3) However, experts later questioned if McNerney and Six Sigma's relentless focus on efficiency hampered 3M's creativity and innovation over the long run.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    3m

    whether the relentless emphasis on efficiency had made 3M a less creative company.

    McNerney
    "The hiring of McNerney was an aberration," said Rakesh Kharana, a management professor at the Harvard Business School. "It happened during the time when there was a lot of pressure for firms to go outside for celebrity C.E.O.'s as a signal that the boards were ready to make changes, and in many ways, was a signal for the financial markets. NY times ,December 8, 2005

    McNerney
    the first outsider to lead the insular St. Paul (Minn.) company

    James McNerney, was quickly snatched up by 3M after falling short in the closely watched race to succeed Welch. 3M's board considered McNerney a huge prize, and the company's stock jumped nearly 20% in the days after Dec. 5, 2000, when his selection as CEO was announced. The mere mention of his name made everyone richer. Bloomberg JUNE 11, 2007

    Does Six Sigma Kill Creativity?


    3M also struggled with Six Sigma, though it seemed promising when first implemented under CEO James McNerney, a former GE executive. Profits initially grew approximately 22 percent a year, but then languished. Experts questioned whether McNerneys and Six Sigmasunyielding emphasis on efficiency stifled 3Ms creativity and innovation.

    "Invention is by its very nature a disorderly process," says current CEO George Buckley, who ess into that area has dialed back many of McNerney's initiatives. "You can't put a Six Sigma procand say, well, I'm getting behind on invention, so I'm going to schedule myself for three good ideas on Wednesday and two on Friday. That's not how creativity works."

    You might also like