It’s about time
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From ESC here, and agreed that more restructuring opportunities exist here. Still many duplicate functions, especially the regional reporting dashboard teams. We can eliminate this layer and the business results will be unchanged.
My prediction is that we will see consolidation of parts of various divisions that (at least in an executive's mind) have a lot of commonality in their products or customers. For example, parts of EMSD, EMD, IATD, and DMSD could fit together reasonably well on paper.
I also think that the more centralized organizations like ESC or CRL will see changes as the various divisions bicker with one another over post-spin stranded costs. I imagine it will take at least another quarter before everyone digests the actual effect of spin.
In reality, these reorgs rarely come without substantial costs in terms of inefficiencies due to everyone figuring out what the new structure works like, as well as the penalty of the inevitable involuntary and voluntary departures.
Regardless, I think a new CEO is pretty much a guarantee of some structural changes. He needs to show he's "doing something", and what better way than by shuffling a few pieces around the chess board? Never mind the pawns strewn about along the side of the board - just the price of success!
Quite the contrary about IT... continuous cuts..... but more svp pos than ever b4.... all new svp adds external hire under mm... and a large set of new dir under the latest svp, which will undoubtedly be external hire also given all the external ppl want to bring in their previous buds.. all the ext sr leaders compete to be loudest, causing so much churn and ultimately wasted $$$... causing the next round of elims.
IT/Digital needs someone new as well. Mark only knows how to cut, not how to enable/support growth!
Strategy is a bit one note. MM needs to go now. Wrong decision, not too late to correct.
Go get your own handle. Really.
Europe is the basically the size, population, and GDP of the US. 3M has to play there big. The structure needs to be better adjusted to act more unified. In the US there isn't a 3M Texas leadership structure, similarly there shouldn't be a significant country level leadership structure in the EU.
There’s plenty of excess in west Europe. Need to release another major chunk there and hire in junior grades only. There simply no reason to be in many of the countries there.
I agree, non-production USAC seems like a likely place to cut SG&A (replaced cheaper in GSCs and CW roles outside USAC). That is where the biggest cuts are, and 2024 plan seems to reflect this as well, but that would have been planned before Bill.
New CEO thinking about growth via R&D while Monish and co decimated R&D in past. It is clear these guys can't work together. Now question is, to allocate more capital in R&D which section need to cut?. It will be most probably non-production USAC.
VPs and senior leaders leaving isn't really a sign of restructuring, or of or new CEO cleaning house.
Any time a new CEO comes into a large organization like this you see a lot of changes in senior leadership, because the new leader wants to bring his own yes-men in and because existing senior leaders who were aspiring to the next level now know they're not moving up for a while.
It has nothing to do with getting rid of underperformers or any other results-based reasoning.
I am not a lawyer but based on the Politico article I feel it is time to restructure Legal, starting with FlimFlam. But I do not think there is a lawyer with the right background who would be willing to take on 3M’s legal mess.
3MCI is a joke. That VP left only a short while with 3M. The entire continuous improvement is in a big mess.
Don't you think some of them were already planning to leave? It can take a while to move at that level
Well look at the senior leadership changes.... 10 VP's gone in three months. Billy boy is cleaning house.... we will see if it is for better or for worse....
Is this an observation of things in motion that suggest playoffs are coming, is it just your intuition leading your to hazard a guess, or is it an expression of hope?
Q2 demand outlook seems weak. Wall Street will expect quick action from Billy.