3m Case Summary

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Category: Business and Industry

Date Submitted: 05/14/2012 03:22 PM

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The case details the different roles of middle and top managers in the management of an entrepreneurial company

A middle-level division manager must decide whether he should support an investment request for a third attempt at launching a new product developed by a struggling business unit. Describes the long, difficult process by which the unit has developed the product--a computer privacy screen--after years of problems and continuing losses, and its absolute faith in the project. Also presents the division manager's concerns about the need for discipline and control, setting up a tension that is focused on the launch decision.

What is it about 3M tat makes it perhaps the most consistently entrepreneurial large company in the world? Companies have a life cycle tightly tied to the one of their products or services. In order to last they need to develop a culture of innovation towards their products and the way they bring them to their market. Indeed, fashions pass, trends shift, demand evolves (Singer), markets saturate (Nike). Through the example of its Optical Systems, 3M demonstrates the deeply integration of innovation and venture management in its culture. This company since its foundation has constructed its organization around the incubation of innovation. The divisions are managed as independent company, meaning they have all latitude to develop, manufacture, market and sale their products. The rest of the 3M organization is there to give support (cross divisional loans of personnel, distribution channels…). The innovators have multiple possibilities at the 3M corporation to get support for their product. 3M, knowing that business creation is very demanding, facilitates it all along its process......

Focusing on the role of the first--line and middle level general manager, the subject matter also allows an exploration of the challenge of creating and sustaining entrepreneurship in large organizations--in a company that has managed it with great success...