Stanley Black & Decker

"Culture is an output of daily action and the vision behind it. Incentives matter a lot, and we’ve noted how Stanley Black & Decker pushed up its working capital turns partly through the power of incentives. It used small, targeted incentives for its tech teams as well. But we were surprised to find that the softer issues were cited more often as parts of the effort to push SBD’s transformation forward. When we asked about incentives, several managers took the conversation in a different direction, to employee connectedness and engagement, facilitated by tools, rather than just different pay."

"The company continues to push its operating system forward, focusing on people and integration of technology, innovation, customers, and operational excellence. The result is a fully developed operating system, now called the SBD Operating Model, which continues to evolve. From a starting point behind most industrial companies, Stanley Black & Decker is now far ahead."

"Lessons from Stanley Black & Decker •   Cost-cutting can be painful—it can create dislocations in the organization—but may be necessary to survive. •   Given sustained effort, even old businesses can be transformed. New challenges often demand it. •   Business systems can evolve to suit the needs of the time. SBD started with Lean, but it has pivoted toward innovation and technology. •   Stars want to go where the organization is moving. Clear signals from the top encourage the optimal allocation of talent. •   Embracing technology or new ideas requires openness, external networks, collaboration tools, and repeatable processes."