3M’s Stock Will Recover With Deeper Implementation of Six Sigma
After news that James McNerney, 3M’s stalwart leader for the past 4 years, is moving on to Boeing the company’s stock price fell by 4%. The fall is due in part to the amazing influence McNerney’s disciplined style leadership has brought to 3M. Although criticized for his rigidity, McNerney put a tight regimen on the company through his incorporation of the Six Sigma efficiency program. Surprised by the move, executives remaining with 3M argue that the company will continue with the plan initiated by McNerney to implement further the Six Sigma efficiency program. This program is largely credited for the turnaround in the company, and as a consequence the company plans to integrate the program further, a process that will take a number of years. Kiplinger’s Reports:
CSFB analysts say that although the shares will probably be hurt in the near term, the stock should recover fine, as 3M’s business should be able to stay on track, even without McNerney.