3m Optical

3M Optical Systems Managing Corporate Entrepreneurship MST550 Capstone Professor Jack Raiton HBSP Case 395-017 handling Questions 1. What practices make 3M such an innovative company? 2. What is Any Wongs role as the OS Units general manager? How effective has he been? 3. What is Paul Guehlers role as division vicepresident? How effective has he been? 4. What should Andy Wong do with the computer screen AFE? If he gets the AFE, should Guehler fund it? Case Outline The speckle Background of 3M Corporation Internal Context at 3M Corporation Background of Optical Systems (OS) The Product is Born The Product is Reborn Wongs Options Guehlers Options Wongs Role/Effectiveness Guehlers Role/Effectiveness Desimones Role The Situation The 3M Corporations Optical Systems (OS) business unit needs to steady down if they should proceed with the deployment of a peeled computer privacy screen despite two precedent marketing failures. Background of 3M Corporation 100 Years of institu tion Highly Diversified Global Company High-Tech Spends twice the U. S. Industry Average on R&D (6-7% of sales) Strong emphasis on new products and technologies Fosters individuals innovation within the workforce (15% rule) Internal Context at 3M Corporation Respect for the individual Stimu after-hours mediocre people to produce extraordinary performance Supportive policies/practices 15% bootleg rule Make a little, sell a little High standards, scope objectives 10% sales growth, 20% PBT, 27% ROCE 30% sales from new productsInternal Context at 3M Corporationcont. Acceptance of well-intentioned failure donation/leverage resources Technology belongs to company Background of Optical Systems (OS) OS Track Record (1979-1990) Formed in 1979 through consolidation of several 3M optical technologies undergo 11 year microlouver kick downstairsment effort with minimal products Lost between 3 to 5 million dollars per year Technology in Search of a Market OS Changes Focus (1991-1992) In 1990 new top management appointed Focus on applications for technologyThe Product is Born In late 1990, the OS Team launched the computer privacy screen Product used microlouver technology to offer privacy of screen information By early 1991 the OS Team saw poor market reaction due to the large number of sizes needed and high purchase price Product was modified and re-launched in late 1991 with minor changes, but to no avail The Product is Re-Born Through prior-product analysis, market research, and harnessing some of 3Ms other technologies, a 3rd generation was created and readied for market in 1992. It combined features of competitors such as anti-glare, anti-static and anti-radiation Was ready for decision on Authority to Proceed Wongs Options Go Learning from two previous launches Met rigorous threephase process Team closest to market, competition, technology (trust them, dont second-guess) Committed team (motivational impact) Last chance for OS Wong must be the hoagy Postpone/Cancel Poor market research Poor product concept Price too high wild market share forecasts Unrealistic risk assessment Needs more data, further studyOther Options Self fund Mentors support Outsource Guehlers Options love Project passed three-phase review Shouldnt second-guess now Reject/Send Back Recognize as well intentional failure Has other high-profile tempo Projects Problems with product, price, marketing strategy Lacks internal support Cost relatively low ($750K) OS unit believes, committed Dont want to kill OS unit Big project in pipeline (Needs 30% new products) Wongs Role/Effectiveness Attracting good people Noirjean, Melby Developing/motivating his team, grammatical construction units capabilities Creating, pursuing growth opportunities Keeping management in the boat Guehlers Role/Effectiveness Empower frontline manager to find/develop attractive opportunities Coach/nurture/support frontline managers to develop confidence and ca pabilities Set standards/goals for and develop selfdiscipline among frontline Balance between discipline and support Desimones Role Sets, communicates, monitors standards and objectives Protects, reinforces norms and set Respect for individual Primary focus on organizational context more than strategic content