Business / Companies

Sticking to plan in firm with diverse portfolio

By He Wei in Shanghai (China Daily) Updated: 2014-03-06 07:17

3M's N95 respirator covers the nose and mouth tightly, filtering out tiny particles that can carry viruses and bacteria, said McSheffrey. It is different from a surgical mask, a loose covering that lets air in at the sides and is used to protect patients from any bugs carried by the people treating them.

Sticking to plan in firm with diverse portfolio

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The importance of product prioritization weighs in here. As a "local-mega trend", air and water quality have become a visible headache. Business growth is thus "accelerated" and, as the business leader, 3M is poised to roll out its extensive offerings and educate the market as an instructor.

"The one thing I noticed is that some people are wearing the wrong masks - either warming masks or other types of respirators that won't prevent particles passing through them. If I could, I would wander around on a Saturday afternoon teaching people how to properly wear a mask," he chuckled.

The desire to teach and guide can be traced back to McSheffrey's earlier days as a laboratory supervisor at a school in Canada. Despite holding a bachelor's degree in chemistry, he found the supervisory element to be more interesting than performing experiments per se. That propelled him to undertake an MBA at the University of Ottawa and later to apply for a job with 3M's Canadian unit.

He then worked at various manufacturing plants across Canada and the Minnesota headquarters, which gave him a full insight into the company's product portfolio and market-specific designs.

He found that in consequence it is hard to identify the most promising business units in China, a challenge he regards as similar to a parent choosing a favorite among his or her five children.

Nonetheless, he picked the healthcare sector as the brightest prospect. As people enjoy a growing discretionary income, there are a lot of applications available to them ranging from the prevention of illness to advanced wound protection and dental products.

Sticking to plan in firm with diverse portfolio

Creating new business categories is a proven winning formula for 3M in creating and sustaining a healthy growth pace, which McSheffrey said is "1.5 times that of the local economy".

3M's track record, which has produced increasing dividends in each of the past 55 years, suggests it is capable of maintaining its success. However, a focus on a steady yet unspectacular growth rate is something that holds more aggressive profits back.

Nonetheless, McSheffrey is not about to start sprinting toward expansive growth. He regards his role like that of holding the conductor's baton before a massive orchestra, when "you never allow all the instruments to play at the same time", he said.

The only competence required to excel in China has to be localization, he stressed, because a number of companies, including the likes of Honeywell International Inc and Johnson & Johnson "compete here and overseas".

"The only foreign thing you find at 3M China is perhaps me," he laughed, saying he relies on the local management team to co-craft business plans.

"I still have a home in Canada - a town with a population of 400 people. It's almost impossible to imagine the scale of everything here - and that includes opportunities," he said.