1Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
Growth Through Six Sigma in Marketing &
Sales
Gayle J. GibsonSix Sigma Champion
DuPont Electronic & Communication Technologies
WCBF Successfully Implementing Six Sigma in Sales & Marketing ConferenceSeptember 22-23, 2004
2Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
“…There is only one valid definition of business purpose:
To create a customer….”
- Peter Drucker
Business & Growth
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CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Marketing = process (to create the mix)
Value for all parties in the exchange
starts with understanding needs and wants (VOM, VOC)
“A social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others.”
- Philip Kotler
Marketing
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WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
The Work of Marketing….
• Gathering, analyzing, and communicating market place information
• Defining, selecting, and targeting segments
• Designing the market mix elements to create demand
• Guiding the production and delivery of offerings
• Action planning for marketing resources
• Auditing of market place performance against a marketing plan
VOC, DMA..
DMA..
DMAI.
DMAIC
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WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
• The Customer Advocate
• Assist customer to recognize needs
• Communicate the value proposition
• Executes the pricing strategy
• Develop new opportunities
• Validate marketing segmentation & strategies
Identify, grow, and retain profitable customers
Sales
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CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Understand & Choose the value
Communicate the value
Provide & Capture the value
Marketing & Sales
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CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
To be the world’s most dynamic science
company, creating sustainable solutions
essential to a better, safer, healthier life
for people everywhere.
8Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Revenue:
$27 billion (2003)
Global:
Operating in more than 70 countries worldwide
R&D:
>40 R&D/Customer Service labs in the U.S.,
>35 outside the U.S.
Employees:
55,000
9Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Five Growth Platforms
DuPont Safety &
Protection
$3.5 B
$4.1 B
DuPont Electronic &
Communication Technologies
$2.5 B
$2.9 B
DuPont Coatings & Color
Technologies
$5.0 B
$5.5 B
DuPont Performance
Materials
$4.9 B
$5.3 B
DuPont Agriculture &
Nutrition
$4.5 B
$5.4 B
Market Leadership
Large Opportunities Strong Capabilities
Sales figures updated for 2003 actual. Original figures were 2002. Overall a 13% increase in 2003 vs. 2002
DuPont Textiles and
Interiors
$6.6 B
Sold April, 2004
10Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Sustainable Growth
the Operational Drivers of Sustainable Growth:
SIX SIGMA LEVERAGING
OUR SCOPE & SCALE
Mission
11Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Transforming DuPont…... to our next
Century
1802 1830 1850 1900 1925 1945 1990 2000 2050 2090
BirthBirth
GrowthGrowth
MaturityMaturity
Chemicals,Energy
Chemicals,Energy
BirthBirth
GrowthGrowth
MaturityMaturity
ExplosivesExplosives
BirthBirth
GrowthGrowth
Maturity
Chemistry,Biology,
Knowledge-Intensive Solutions
Chemistry,Biology,
Knowledge-Intensive Solutions
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CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Voice of the Top Leader
“There is one way to execute growth strategies (do things the right way):
Six Sigma”
CEO
Chad Holliday
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CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Voice of Top Leader: M&S
“The key to sales and marketing excellence... is the use of disciplined data-driven processes and Six Sigma is the toolkit of choice at DuPont based on our successful track record.”
CM&SO
Diane Gulyas
14Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
DuPont Six Sigma Journey
2000“The Way We Work” Cost, Capital
+ Growth2001“TLG” (Top-Line Growth)
Transformation•Marketing & Sales•Supply Chain•Innovation
2003“Processes”
2004“Transformation”
2002“At the Customer, For
the Customer”
Customer
1999 “Focus & Win” Cost and Capital
15Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
DuPont has been building a Six Sigma Foundation
Black Belts and MBBs- 1200 at the end of 20002120 BBs, 310 MBBs trained by year-end 2003
Green Belts- 6000 at the end of 200115,400 trained by year-end 2003
Top Line Growth, DfSS 2002$1.4Bn revenue TLG projects, 2550 projects by yr-end 03
>900 DfSS projects
Process Excellence 2003Identified corporate core processes
Transformation 2004Marketing & Sales EffectivenessOperations Supply Chain
16Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Six Sigma at DuPont
Results: over $2.4 billion earnings (cummulative year-end 2003)
Approach: VP of Six Sigma leads effort through network of Champions
16 SBUs focused exclusively on TLG
6 Operations/supply chain, 9 functions, & 3 regions
Belts: 18,100 people trained
DMAIC is core, added DfSS to support TLG
Variants tailored to product development, marketing & sales
Key Measures: $ PTOI, # Projects, #BB/MBBs, #GBs (trained & certified), future leaders, cultural indicators
HR: Published policy requires certification of top leaders, and future leaders
Freshness: Each SBU does quarterly reviews, 3x/year corporate network leverages learnings & renewal
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WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Process View of DuPont
Manage the Corporation & Business Portfolio
I.D. & Develop Markets & ChannelsDevelop New Technologies, Products & Services
Manage Physical Resources
Financials
Manage People Resources
Manage Information/ Knowledge
Govern/ Plan/ Report
Create/ Renew
Deliver Current Offering
Acquire/ Develop Enabling
Infrastructure and Assets
Develop Customer Solutions
Provide Solutions
18Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Six Sigma for Growth……Evolution in
DuPont Full time, marketing experienced TLG champions
assigned in each SBU to extend the use of Six Sigma into development areas (market and product)
Each SBU set deployment goals in terms of resources (BBs, MBBs) and new revenue growth
Design for Six Sigma is a critical element of the Top Line Growth Deployment, particularly in product development
19Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Six Sigma Projects at DuPont
84%
16%
TLG Operations
76%
24%
Revenue Cost or Cash
20Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
“Growth Equation”
New
PProducts
New
PProductsNew
AApplications
New AApplications
Develop
New Business
Model
New Business
Model
“Go Outsidethe Box”
+ +
Net Revenue GrowthNet Revenue Growth =
New
SServices
New
SServices +New
MMarkets
New
MMarkets
Develop
+
Create Create
“PAMS”
Economic-drivengrowth +
Actions to maintain share
Improve:•quality•customer services
•pricing•processes (delivery, ordering, etc)
•Changing role in the value chain
• Licensing•e-business•Alliances•Joint ventures
•Mergers•Acquisitions
Existing New
Exis
ting
New
Markets & Application
s
Products, Offerings, Technologies
Existing business
Existing business
Growth
Attrition
Maintain Share
Share & Improve
Loss or Gain
Share & Improve
Loss or Gain
Gain Share
+
Base Improve
+
21Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
What Types of Projects are “Top Line Growth”?
• Fighting “the fade”• At the Customer for the Customer• Sales and Marketing Processes
– Sales lead management– Pricing process improvement– Seller efficiency – Branding, advertising, MC effectiveness– Channel effectiveness
Share & Improve
Share & Improve “PAMS”PAMS”“PAMS”PAMS”
• Product development• Application development• New Market development• Services• Quality improvement• Acquisitions• New business model
New Business
Model
New Business
Model
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WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Earnings Growth Model
ON TREND LINE GROWTH (TLG)
SIX SIGMA PRODUCTIVITY
RESTRUCTURING
INNOVATION
ACQUISITION
6
DfSS
Time
Earn
ing
s
23Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Six Sigma and Development in DuPont
The data shows we are good at development of exciting new technologies, not good at understanding the real market opportunity
DfSS brought the potential to improve market understanding by better VOC data, now being embraced by development teams
24Copyright © 2004 E. I. du Pont de Nemours and
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WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Capable,Disciplined
Process
Accountability
Bottom LineResults
Focus on inputs
Sense of Urgency
Commitment toTraining & Development
for all employees
Fact based,Data driven
decisions
ManagementPassion
Values
CUSTOMERS
Communications
Before starting DfSS, need Six Sigma Competency & Culture
25Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Improve an Existing Product or Process
Characterize Requirements &Performance
Identify &Characterize Key Elements in the Solution
Define the Problem
Phase 1 Phase 2 Phase 3
DefineDefine
Determine the BestSolution
Phase 4
Validate & Implement the Solution
Phase 5
MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControl
Design a New Product or Process
DefineDefine MeasureMeasure AnalyzeAnalyze DesignDesign VerifyVerify
DfSS Introduction
26Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Because of the customer intimacy required…
Development Projects are different Patience- DMAIC brings fast results…
Development and customer data takes time Measures of Success -
Failures are not defects# of Market DOE’sPhase deliverables met vs plan, time to first revenue,
cycle time, customer adoption, revenue from new products, etc
Full engagement of Technology and Marketing
27Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
DfSS found broad adoption with TLG...
Improved techniques for handling multiple Y’s Tools introduced with DfSS were more easily
applicable to sales & marketingDefine & Measure: wove in market research and
market segmentation (VOC, Kano, QFD, etc)Design & Verify: logical connection to market entry
strategy & marketing plans
Risk management tools helped manage high uncertainty of growth
Multigenerational project planning and hypothesis-driven approaches helped keep projects ‘bite-size’
28Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
DMAIC and DfSS- the right tools for the right projects
Extension
New
Existing
Process (Mfg, business)
Product, Service,Offering
Use, Market,Customer
All needed processes already
exists
Modifications needed to adapt existing process
New process or technology needed
New product, service or offering
Same basic offering adapted with new
technology
New end use, Target Mkt
or New Customers
Extend Target Mkt or Seek New Cust.
Same product, service, or offering
Design
Existing use,Target Market and Customers
IMPROVE DEVELOPDMAIC DfSSDMAIC DfSS
29Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Governance/ Decision Processes are also Critical to
Success
Front-End
Opportunity Deposited
in Idea Bank
DepositDepositAccountAccount
Market Assessmen
tInvestmenInvestment Accountt Account
DMAIC orDfSS
Projects
DMAIC orDfSS
Projects
Ideas are Collected and Evaluated using a number of different tools
Tools like Rapid Value or Market Assessment have proven useful in evaluating potential ideas
30Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
TLG: Market Assessments
DesignNew
Define the Problem
Phase 1
DefineDefine MeasureMeasure Analyze
Analyze
ImproveImprove ControlControl
DesignDesign VerifyVerify
Characterize Requirements &Performance
Phase 2
Identify &Characterize Key Elements in the Solution
Phase 3
Determine the BestSolution
Phase 4
Validate & Implement the Solution
Phase 5
DefineDefine MeasureMeasure Analyze
Analyze
Improve Existing
Assess Market DefineDefine MeasureMeasure Analyz
e
Analyze
‘Recommend’‘Recommend’ ‘Close’‘Close’D r a f t
31Copyright © 2004 E. I. du Pont de Nemours and
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WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
PACE OVERVIEW CHART- Model BPre-ProcessDevelopment
Activities PHASE I:IDEA
PHASE II:CONCEPT
PHASE IV:READINESS
A: Demonstration B: Development A: Commissioning B: Ramp-Up
PHASE III: DEVELOPMENT PHASE V: SCALE-UP
CommercialOperations
DEFINE
MEASURE
ANALYZE
DESIGN(IMPROVE)
VERIFY(CONTROL)
TechnologyPlanning
MarketResearch
PreliminaryIdeaScreening
StrategicDevelopmentPlanning
DEFINE
MEASURE
ANALYZE
DESIGN(IMPROVE)
VERIFY(CONTROL)
DEFINE
MEASURE
ANALYZE
DESIGN(IMPROVE)
VERIFY(CONTROL)
Business Development
Product/Market Development
Process/Technology Development
DuPont integrated DfSS with its phased development process
Decision BoardDecision Board
Strategy AProject 1Project 4etc...
Strategy BProject 3Project 6etc…
Strategy CProject 8Project 2etc…
Decision Processes evaluate the overall portfolio of projects, strategies, and available resources
Long Duration Projects require ongoing Assessment by Decision Boards or Stage Gate
Processes
Governance/ Decision Processes are also critical to
Success
32Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
More TLG for Marketing & Sales...
At The Customer, For the Customer Projects
• Projects benefit customers AND deliver validated $ to DuPont (we must get paid too!)
• Customers have been truly interested in DuPont Six Sigma, but projects must have a partnership
• High interest from customers helps projects get completed quickly
• Contribute significant hard financial benefits • Engages the selling organization and spreads
the culture of Six Sigma• Many GB projects for Marketing and Sales
professionals should be ATCFTC
33Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Voice of Top Leader: M&S
“Data-driven disciplined processes are vital in every aspect of sales and marketing, from target selection to segmentation to pricing to channel management.
Everything starts with the Voice of the Customer and one role of the sales and marketing team is to ensure that we all hear that Voice and mobilize our resources to help solve our customers problems faster than competition, delivering the right solution at the right value .”
CM&SO
Diane Gulyas
34Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Critical Success Factors
Leadership Commitment Resource Commitment Data/Technical Rigor Tracking Results to the Bottom Line Integrating all of the pieces
The Best but the Hardest Thing a Company May Ever
Do!
35Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
DuPont’s Learnings are Similar to Other Companies
Right ToolsRigorously applied
Right People Dedicated 100%
Right BusinessOpportunities
Right ResultsRight Results
36Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
DuPont’s Learnings are Similar to Other Companies
Right ToolsRigorously applied
Right People Dedicated 100%
Right BusinessOpportunities
Right ResultsRight Results Hold people accountable for business results validated to the bottom line
VOC, marketing, DfSS, data analysis, process improvement, etc
• The most strategically important projects (growth, for the customer, retain share, increase price, improve profitability, improve effectiveness, etc)
• Projects with financial impact
Marketing, Sales, technology people and make them special
37Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
My TLG Learnings...
It works! - Six Sigma applied to Growth with marketing, sales, but… everything is not and does not need to be a Six Sigma project
Need focused training…help “demystify” Six Sigma: show the value proposition of Six Sigma (success stories)
talk their language (must include examples from marketing/sales/growth)
heavy VOC training (including market research, Kano analysis, etc) is a must for all TLG Belts (MBB/BB/GB) and help Process Owners demand good VOC
show marketing & sales that they have processes (but typically have less operational discipline than manufacturing)
incorporate DfSS tools (QFD, risk assessment, etc)…DMAIC is not enough
provide financial analysts with examples of validation
Use dedicated resources (BB, MBB, Champions for Front-End) that are marketing, sales, or technology innovators with with hands-on experience (to help convince their peers)
Involve sales & marketing people in TLG projects early and often
Still difficult to get good baselining, CTQ flowdowns, and project definitions for “bite-size” projects, but improving
Control plans and maintaining process documentation through people turnover is still a challenge
38Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Understand & Choose the value
Communicate the value
Provide & Capture the value
Marketing & Sales
40Copyright © 2004 E. I. du Pont de Nemours and
CompanyAll rights reserved.
WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference, Sept 2004Gayle J. Gibson, DuPont Electronic & Communication Technologies
Gayle J. GibsonSix Sigma ChampionElectronic & Communication TechnologiesDuPontChestnut Run Plaza, Bldg 711, Rm 2210FWilmington, DE 19805Email: [email protected]: 1-302-999-5040
Gayle recently led the growth, Six Sigma, and e-business efforts for the Fluoroproducts SBU in DuPont, a $1.4 billion revenue global business. This set of businesses had significant growth objectives that include new market development, knowledge intensity, new product development, acquisitions, as well as improvement and extensions of the current business. Over the past 3 years, Gayle installed a new growth process that incorporates Six Sigma and other development tools, deployed the use of Six Sigma applied to Top-Line-Growth, and sales and marketing, instituted the use of growth dashboards to track key metrics, improved growth portfolio management, increased resources applied to growth, and worked through the top leaders on cultural shifts required in the organization to support and accelerate growth.
Currently Gayle is the Six Sigma Champion for Electronics & Communication Technologies, a $2.9 billion revenue set of global businesses, where her focus is on the transformation of supply chain practices utilizing Six Sigma to improve responsiveness and reliability for customers.
Prior to the Six Sigma assignments , Gayle was the Global Product Manager and growth leader for the Teflon® coatings business. She has had a variety of other roles in her 21 years at DuPont ranging from business consultant in Europe for business strategy and market development, growth in developing countries, to market and product development, to manufacturing supervision, R&D, and process engineering. Gayle has an MBA and a B.S. in chemical engineering from Texas A&M University.
Bio for Gayle J. Gibson