Why Has 3M Been Consistently Successful? CEO Explains

Amid the volatility of the broader stock market, shares of 3M Co (NYSE: MMM) have had a glorious bull run in the last five years, without any major corrections. The stock is up more than 25 percent since last year, more than 100 percent in the last five years and along the way has managed to pay consistent dividends to its investors.

Inge Thulin, 3M chairman, president and CEO, was interviewed recently by Jim Cramer on CNBC's "Mad Money." Thulin revealed the secrets behind 3M's success and discussed its product pipeline during the interview.

Reinventing The Company

Cramer praised Thulin for reinventing the company every few years and asked him how many of 3M's current products didn't exist five years ago and how much these newer products are responsible for the company's growth.

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Thulin replied, "Today that's around 32 to 33 percent of products that did not exist five years ago, and we call that 'new product fatality index,' which is an important element for us."

Globally Diversified

On 3M being one of the most internationally diversified companies, Thulin said, "First of all, I think it's important if you have decided – like we did many years ago – that we will like to be part of technology conversion and demographic change, that is happening not only in United States, but all over the world. So, I think that's an important element.

"That also means that you need to get leaders in place that understand context, which I will call 'context intelligence,' and I think 3M over many, many years have done a good job to develop leaders," Thulin concluded.