3Memory Lane

Kenneth Yu has worked in 3M for almost 40 years. After working in 3M Hong Kong and Singapore for 24 years, Yu brought the company's operation to China where he has headed 3M China's growth for the last 15 years.

From a small office with only seven employees, to a huge team with 5,000 workers, eight manufacturing plants and a top R&D center, 3M China has become the company's branch with the most potential with a 30 to 35 percent annual sales growth in recent years.

During a recent interview in Yu's Shanghai office with China Business Weekly reporter Bao Wanxian, Yu shared his experiences with 3M China since 1993 as well as his view of China's economic reform and rapid growth.

Q: 3M is famous for its diversified technologies and products. In China, you lead seven large teams that provide more than 60,000 products for the local market. How do you lead such a huge team and keep an annual sales growth of 30 to 35 percent?

A: It is hard but it is interesting for me. We almost create new products every day. We watch the changing market to adjust our business focus. Every day is new and innovative for us.

Innovation is the most important direction for my operation and it makes us grow. Last year, 3M China contributed more than 20 billion yuan for sales, which accounted for around 10 percent of the company's global revenue.

But I think there are still huge opportunities for us to make further growth. That is why we have been continuing to add to our investments here, the market with the most potential in the world.

And perhaps the annual growth of 30 to 35 percent won't satisfy me in the coming years.

Q: What is the core value of your leadership in 3M China?

A: People, for sure.

Take me as an example. From the year of 1969, when I was 19, I came to 3M Hong Kong. So far, I have worked in 3M for nearly 40 years. But I am not an exception. In 3M China, all the people in middle and high leadership levels have an average of 17 years working at 3M.

I think a company should make an effort to preserve its talents. It is the key value for our operation.

If a team of workers has worked for many years, they will have a perfect tacit understanding. It is easy to shape common consciousness.

3M grants several large awards annually to encourage innovation. In 3M, we trust everyone. We encourage everyone and have enough room for free creation and thinking. That is also why we've had so many innovations in recent years.

Q: During your 15 years heading 3M China, have you encountered any challenges?

A: So far, I still feel a little disappointment that I ignored spreading our brand from the start. As the first multinational company registered and established in Shanghai, 3M is still not well known to most Chinese people.

When you mention "3M" in China, people may think the brand is only a Post-it note producer. So, that's the 3M product most famous here. Indeed, it is the smallest department. That is my fault, only engaging in spreading the brand to business partners but ignoring the huge number of Chinese consumers.

Fortunately, I have woken up to this problem now and I am doing my best to improve it.

Q: What is your view on China's 30 years of reform and opening up?

A: I think China has made big changes since 1978.

Around 25 years ago, I took a business tour to Shanghai from Hong Kong. At that time, it was difficult for me to find a hotel. But today, you can see so many five-star hotels located in the city, as well as top level airports and telecommunication facilities.

As a 40-year "veteran" in the company, I think I was fortunate to witness some of the company's dramatic shifts in China's market - from a small office that only had seven employees, to one of the most significant groups for 3M in the global market, with a team of more than 5,000 people, 20 offices and eight manufacturing plants in different regions of China.

It was the best stage for all the companies to invest and grow up. But I think it poses more challenges to us, because the country is still going in a good direction. Its excellent growth surprises us every day, and being here we have to be innovative every day.

(China Daily 10/06/2008 page6)