Restructuring 3M for an integrated europe. Part one: Initiating the change

This two-part article describes the restructuring of the European operations of the 3M company in 1992. The restructuring was undertaken to more effectively deal with its Pan-European customers by changing from country-orientated organizations to one based on product lines. This first article, Initiating the Change, begins by describing the nature of this innovative and decentralized $14 billion company and the history of its European activities. It then examines the way in which 3M's European management, from the mid-1980s to the early 1990s, came to the realization that it was imperative to rapidly make this fundamental and major change. In typical 3M fashion, once the decision was made as to the general nature of what was needed, the details of exactly what was to be done and how it should be accomplished were left to the people who were nearest the problem, most knowledgeable about it, and most effected - the European managers. The second part, Implementing the Change, EMJ, vol. 14, no. 2, explains how the European managers, in 1993, designed the organization, determined how the process should proceed, and who should fill the different positions created. It then describes how they managed the transformation - including a detailing of the problems, triumphs and surprises entailed. While the articles collectively provide insight as to how apparently successful transformation took place, a key benefit of studying the transition is to generate an understanding of how this entrepreneurial organization functions. We hope the readers may glean new insights on how to make their own organizations more entrepreneurial and more innovative.