3M announced the realignment of the company from five to four business segments. The new alignment will enable the company to better serve global customers and markets. “We are continuing to advance 3M into the future, and today’s actions will strengthen our ability to meet the fast-moving needs of our customers,” said 3M CEO Mike Roman. “Our new alignment will leverage our business transformation progress, accelerate growth and deliver greater operational efficiencies.” The new structure will be comprised of four business segments: Safety & Industrial, Transportation & Electronics, Healthcare, and Consumer.
- Safety & Industrial: This segment includes businesses that serve the global industrial, electrical and safety markets. This business segment will consist of personal safety, adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules. This segment will have estimated annual revenue of USD 12 billion.
- Transportation & Electronics: This segment includes businesses that serve global transportation and electronic original equipment manufacturer (OEM) customers. This business segment will consist of electronics (display materials and systems, electronic materials solutions), automotive and aerospace, commercial solutions, advanced materials, and transportation safety. This segment will have estimated annual revenue of USD 10 billion.
- Healthcare: This business segment serves the global healthcare industry and will include medical solutions, oral care, separation and purification sciences, health information systems, drug delivery systems, and food safety. This segment will have estimated annual revenue of USD 7 billion.
- Consumer: This business serves global consumers and consists of home improvement, stationery and office supplies, home care, and consumer healthcare. Home improvement will also include the retail auto care business that was previously a part of the company’s automotive aftermarket business. This segment will have estimated annual revenue of USD 5 billion.
This new segment structure strengthens the company’s four strategic priorities – Portfolio, Innovation, Transformation, and People and Culture – and positions 3M for long-term growth and value creation. These priorities are key components of the 3M value model and how the company drives performance today and into the future. 3M will start reporting its financial results under this new structure starting with the second quarter of 2019.
3M also announced the following leadership appointments effective April 1, 2019:
- Michael Vale is appointed executive vice president, Safety & Industrial Business Group. Vale currently is executive vice president, Healthcare Business Group.
- Ashish Khandpur, is appointed executive vice president, Transportation & Electronics Business Group. Khandpur currently is executive vice president, Electronics & Energy Business Group.
- Mojdeh Poul is appointed executive vice president, Healthcare Business Group. Poul currently is executive vice president, Safety & Graphics Business Group.
- Paul Keel is appointed executive vice president, Consumer Business Group. Keel currently is senior vice president, Business Development and Marketing-Sales.
- Denise Rutherford is appointed senior vice president, Corporate Affairs. Rutherford currently is vice president, Research & Development and Commercialization, Industrial Business Group. She has led businesses and functions around the world including in Asia and Latin America. Rutherford earned her Ph.D. from Colorado State and holds bachelor’s and master’s degrees from Murray State.
- Stephen Shafer is appointed senior vice president, Business Development and Marketing-Sales. Shafer currently is vice president Greater China Area of 3M and managing director of 3M China. His previous experience includes leading 3M’s business transformation deployment, and leadership roles in business and strategy. Shafer earned his MBA from Harvard Business School and his bachelor’s degree from Northwestern.
“3M has a highly talented and diverse group of leaders, and today’s appointments position us well for the future,” Roman said. “I have confidence in each of these leaders as they take on new and expanded roles, and look forward to working with them to create greater value for customers, shareholders and 3M.”
In addition, James Bauman, executive vice president, Industrial Business Group, and Joaquin Delgado, executive vice president, Consumer Business Group, have announced their intention to retire. “Throughout their distinguished careers, Jim and Joaquin have built and led businesses, developed others and created tremendous value for our customers,” Roman continued. “On behalf of all 3Mers, I thank Jim and Joaquin for their contributions, and wish them well in the future.” – Medical Buyer Bureau