After more usability test runs within the companyâpallets of the pads that were set out in the halls quickly emptied!â3M was finally convinced to launch an intensive marketing campaign in 1980. The rest, as they say, is history.
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Policies and control processes became so foundational to our work that those who were great at coloring within the lines were promoted, while many creative mavericks felt stifled and went to work elsewhere. I was sorry to see them go, but I believed that this was what happens when a company grows up.
Then two things occurred. The first is that we failed to innovate quickly. We had become increasingly efficient and decreasingly creative. In order to grow we had to purchase other companies that did have innovative products. That led to more business complexity, which in turn led to more rules and process.
The second is that the market shifted from C++ to Java. To survive, we needed to change. But we had selected and conditioned our employees to follow process, not to think freshly or shift fast. We were unable to adapt and, in 1997, ended up selling the company to our largest competitor.
What happened, however, is that we did neither. We saw two forces emerging in the industry that allowed us to chart a very different course. At the time, it was fraught with risk. But perhaps because the other alternatives were so unpalatable, we decided to stake the companyâs future on a totally different view of the industry.
The colleague then described Silverâs odd sticky substance. The matter might have ended there except for another element of 3Mâs innovation system: the Technical Forum. This was a lecture series that encouraged people to share ideas and discoveries made inside the company.
In the early day of the post-war corporation, the question of purpose hardly arose. Companies like DuPont had been given an obvious reason to invest in the production of smokeless gunpowder by the Second World War, and at its end they found themselves in possession of a lot of capital equipment and chemical know-how. They went out looking for new things to do with cellulose and petrochemicals because it would have been strange not to. As they grew more complicated, they had to reorganise their corporate forms and management structures; academic writing in management was really just catching up with the things that engineers and accountants were inventing out of necessity.
What Lundgren intuitedâ which tool a good deal of persuasion to impress upon stakeholders, both within and outside the company, over the course of the next several yearsâ was that the more online sales challenged brick-and-mortar retail, the more important a truly national brand following would become. Federated had launched a retail website back in 1998, when Amazonâs business model was still a matter of much dispute and Amazon hadnât yet branched out into broader department-store categories.