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Tennant Company
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Tennant, a leading producer of floor cleaning equipment, must determine how to create, finance, structure, staff, govern, measure and manage a new venture for developing a fundamentally new product line. In 2005, Tennant Company had developed an innovative, environmentally friendly, cleaning technology that could potentially revolutionize cleaning. Historically, Tennant was a producer of floor and carpet washing machines for industrial and commercial markets. Over time, it became clear that the technology had applications far beyond Tennant's core markets. In mid-2009, the company set up a new venture to develop the technology's promise. In 2010 this venture was wholly owned by Tennant and run by a Tennant manager. The case examines the decisions the CEO and new venture head must make to best structure and position the venture to succeed.