McNerney was the first outsider to lead the insular St. Paul (Minnesota) company in its 100-year…

McNerney was
the first outsider to lead the insular St. Paul (Minnesota) company in its
100-year history. He had barely stepped off the plane before he announced he
would change the DNA of the place. His playbook was vintage GE. McNerney axed
8,000 workers (about 11 percent of the workforce), intensified the
performance-review process, and tightened the purse strings at a company that
had become a profligate spender. He also imported GE’s vaunted Six Sigma
program— a series of management techniques designed to decrease production
defects and increase efficiency. Thousands of staffers became
»

McNerney was
the first outsider to lead the insular St. Paul (Minnesota) company in its
100-year history. He had barely stepped off the plane before he announced he
would change the DNA of the place. His playbook was vintage GE. McNerney axed
8,000 workers (about 11 percent of the workforce), intensified the
performance-review process, and tightened the purse strings at a company that
had become a profligate spender. He also imported GE’s vaunted Six Sigma
program— a series of management techniques designed to decrease production
defects and increase efficiency. Thousands of staffers became trained as Six
Sigma “black belts.” The plan appeared to work: McNerney jolted 3M’s moribund
stock back to life and won accolades for bringing discipline to an organization
that had become unwieldy, erratic, and sluggish.

»

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