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3 M Company Case Study

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3M is a company formerly known as Minnesota Mining and Manufacturing Company that produces over 55,000 products for industries like adhesives, abrasives, and electronics. They have over 76,000 employees worldwide. 3M fosters a culture of innovation by giving employees time and resources to pursue new ideas, sharing knowledge across expertise, measuring results, and promoting careers over just jobs. Their organic structure with multiple levels of departments, divisions, groups, and sectors allows for flexibility and participation in decision making. This structure, along with policies rewarding innovative activities and risk taking, has helped 3M sustain technological innovation and growth.

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Group 2: 3M Nguy畛n Th畛 Hi棚n 畉ng Th畛 Li棚n L畉i Thanh Trang L棚 Ph動董ng Th畉o Nguy畛n Th畛 Th畉o Ly Nguy畛n Nh動 Th畉 Anh 畛 Nh動 Chinh
3 M Company Case Study
3 M Company Case Study
Outline Introduction Innovation in 3M Conclusion
3 M Company Case Study
3M Formerly known as the Minnesota Mining and Manufacturing Company With over 76,000 employees they produce over 55,000 products, including: adhesives, abrasives, laminates, passive fire protection, dental products, electrical materials, electronic circuits and optical films (ch畉t k畉t d鱈nh, ch畉t mi m嘆n, c叩n m畛ng, ph嘆ng ch叩y ch畛a ch叩y th畛 畛ng, s畉n ph畉m nha khoa, v畉t li畛u i畛n, m畉ch i畛n t畛 v phim quang h畛c)
3M: A brief history Established in 1902, producing abrasives and adhesives products. Benefited from product innovation in the early days The culture of individual entrepreneurship The McKnight era, 1929-1966 Organizational design for continuous changes The Lou Lehr era, 1980-1985 Reorganization and reorientation The Jake Jacobson era: 1986-1991 The orientation to competition in existing markets Main characteristics: Changes and evolution in adaptation to environments Changes in organizational attributes for innovation
3M: The Permanently Changing Organizations One of the ten most admired corporations Fortune annual poll of American CEOs. The 3M model: Continuous technological innovation Institutionalized individual entrepreneurship Market responsiveness How is this possiblewhat are the challenges? Institutionalized individual entrepreneurship? Growth versus decentralization? Balance between structure, culture, versus change?
Innovative Culture in 3M 3Ms culture fosters an environment of innovation Innovation of culture in 3M: - Give people time to follow their dream. - Make it a part of the experts job to share their knowledge. - Result must be measured. - Be honest and know when to say no. - Promote a career not a job. - Internationalize your management team. - Keep spending on research and development.
Vietnamese Honda motor company Respect the ideas of the employers as well as employees Create a friendly and active working environment
INNOVATION MANAGEMENT Building a innovative organization
Recognition & reward Reinforcement of core values Sustaining circulation Allocating slack & permission to play Patience Acceptance of mistakes & encouragement of risk-taking Encourage bootlegging Policy of hiring innovators
Recognition & reward Schemes to acknowledge innovative activities Recognizes effort > achievements
Reinforcement of core values Innovation is respected
Sustaining circulation Different people + Different perspectives = creative combinations
Allocating slack & permission to play Curiosity-driven activities
Patience Acceptance of the need for stumbling in motion as innovative ideas evolve and take shape.
Acceptance of mistakes & encouragement of risk-taking Mistakes will be made, but if a person is essentially right, the mistakes he or she makes are not as serious, in the long run, as the mistakes management will make if its dictatorial and undertakes to tell those under its authority exactly how they must do their job
Encourage bootlegging Giving employees a sense of empowerment and turning a blind eye to creative ways => get around the system acts
Policy of hiring innovators looking for people with innovator tendencies and characteristics An opportunistic mindset Formal education or training Proactivity and a high degree of persistence A healthy dose of prudence Social capital
May Saigon 2 Company
VNU-UEB
Eurowindow
Innovation in organization structure 3M used to be organic structure, which links people in different functions into a coherent. 3M divided most employees network into at least five levels: department, division, group, sector and company What is organic structure? Its advantage & disadvantage?
What is organic structure the organization has characteristic: Flatness: communication & interaction are horizontal Low specialization: knowledge resides wherever it is most useful Decentralization: great deal of formal and informal participation in decision making
They have a flexible approach to the continually changing financial and customer environment. They can be very responsive and quick to make changes Staff structures are also very fluid, with wide ranging job descriptions They cope better with unstable environments The employees are very much involved in decision making and problem solving; this enhances motivation, commitment and gives a variety of perspectives The ease of ability or change enables organic organizations to be more creative and imaginative
Disadvantage No Boundaries Unproductive Directives: Ineffective Leadership Communication Barriers
Case in Viet nam
Process *Develop: - Structure - Policies Guide innovative activity: picking up signals through implementation *Parallel routes through their system Innovations can come from many ways: - Market interactions - Deep technology research - collaboration - unexpected discovery *Association skill: Technical knowledge awareness of real / latent market needs => creative combination
System for innovation & extensions: *1st : formal stage-gate (a trial by fire), based on established products Well-known but need encouraging innovation champions to take non-linear ideas *2nd : incubator stage: o ideas are encouraged & development funds are available o reject loose targets o strict business plan appraisal for projects => funnels and clear gateway
Honda Viet Nam Manufacturing Process: 2nd system - Event / Competition: o employees speak out their ideas at any time o prize for the valuable contribution. - The good idea will apply to the process - Implementing R&D from fortunate discovery by their staff
Innovation Strategy and Leadership - CEOs have been strongly associated with enacting and supporting the innovation culture which characterizes the firm - The overall innovation strategy is focused on two core themes deep technological competence and strong product development capabilities
Innovation Strategy Setting stretch targets, a focus for the whole Organization. Allocating space and time for staff to explore ideas. Encouragement employees working on innovation projects in their own time and often accessing resources in a non-formal way Encourages intrapreneurship (internal entrepreneurial behaviour) rather than people feeling they have to leave the firm to take their good ideas forward.
Innovation Strategy and Leadership in Vietnam CEOs should take time to understand the potential of their employees and the prospect of their organization. Encourage and incentive with new ideas which have good outcome or improvement.

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3 M Company Case Study

  • 1. Group 2: 3M Nguy畛n Th畛 Hi棚n 畉ng Th畛 Li棚n L畉i Thanh Trang L棚 Ph動董ng Th畉o Nguy畛n Th畛 Th畉o Ly Nguy畛n Nh動 Th畉 Anh 畛 Nh動 Chinh
  • 6. 3M Formerly known as the Minnesota Mining and Manufacturing Company With over 76,000 employees they produce over 55,000 products, including: adhesives, abrasives, laminates, passive fire protection, dental products, electrical materials, electronic circuits and optical films (ch畉t k畉t d鱈nh, ch畉t mi m嘆n, c叩n m畛ng, ph嘆ng ch叩y ch畛a ch叩y th畛 畛ng, s畉n ph畉m nha khoa, v畉t li畛u i畛n, m畉ch i畛n t畛 v phim quang h畛c)
  • 7. 3M: A brief history Established in 1902, producing abrasives and adhesives products. Benefited from product innovation in the early days The culture of individual entrepreneurship The McKnight era, 1929-1966 Organizational design for continuous changes The Lou Lehr era, 1980-1985 Reorganization and reorientation The Jake Jacobson era: 1986-1991 The orientation to competition in existing markets Main characteristics: Changes and evolution in adaptation to environments Changes in organizational attributes for innovation
  • 8. 3M: The Permanently Changing Organizations One of the ten most admired corporations Fortune annual poll of American CEOs. The 3M model: Continuous technological innovation Institutionalized individual entrepreneurship Market responsiveness How is this possiblewhat are the challenges? Institutionalized individual entrepreneurship? Growth versus decentralization? Balance between structure, culture, versus change?
  • 9. Innovative Culture in 3M 3Ms culture fosters an environment of innovation Innovation of culture in 3M: - Give people time to follow their dream. - Make it a part of the experts job to share their knowledge. - Result must be measured. - Be honest and know when to say no. - Promote a career not a job. - Internationalize your management team. - Keep spending on research and development.
  • 10. Vietnamese Honda motor company Respect the ideas of the employers as well as employees Create a friendly and active working environment
  • 12. Recognition & reward Reinforcement of core values Sustaining circulation Allocating slack & permission to play Patience Acceptance of mistakes & encouragement of risk-taking Encourage bootlegging Policy of hiring innovators
  • 13. Recognition & reward Schemes to acknowledge innovative activities Recognizes effort > achievements
  • 15. Sustaining circulation Different people + Different perspectives = creative combinations
  • 16. Allocating slack & permission to play Curiosity-driven activities
  • 17. Patience Acceptance of the need for stumbling in motion as innovative ideas evolve and take shape.
  • 18. Acceptance of mistakes & encouragement of risk-taking Mistakes will be made, but if a person is essentially right, the mistakes he or she makes are not as serious, in the long run, as the mistakes management will make if its dictatorial and undertakes to tell those under its authority exactly how they must do their job
  • 19. Encourage bootlegging Giving employees a sense of empowerment and turning a blind eye to creative ways => get around the system acts
  • 20. Policy of hiring innovators looking for people with innovator tendencies and characteristics An opportunistic mindset Formal education or training Proactivity and a high degree of persistence A healthy dose of prudence Social capital
  • 21. May Saigon 2 Company
  • 24. Innovation in organization structure 3M used to be organic structure, which links people in different functions into a coherent. 3M divided most employees network into at least five levels: department, division, group, sector and company What is organic structure? Its advantage & disadvantage?
  • 25. What is organic structure the organization has characteristic: Flatness: communication & interaction are horizontal Low specialization: knowledge resides wherever it is most useful Decentralization: great deal of formal and informal participation in decision making
  • 26. They have a flexible approach to the continually changing financial and customer environment. They can be very responsive and quick to make changes Staff structures are also very fluid, with wide ranging job descriptions They cope better with unstable environments The employees are very much involved in decision making and problem solving; this enhances motivation, commitment and gives a variety of perspectives The ease of ability or change enables organic organizations to be more creative and imaginative
  • 29. Process *Develop: - Structure - Policies Guide innovative activity: picking up signals through implementation *Parallel routes through their system Innovations can come from many ways: - Market interactions - Deep technology research - collaboration - unexpected discovery *Association skill: Technical knowledge awareness of real / latent market needs => creative combination
  • 30. System for innovation & extensions: *1st : formal stage-gate (a trial by fire), based on established products Well-known but need encouraging innovation champions to take non-linear ideas *2nd : incubator stage: o ideas are encouraged & development funds are available o reject loose targets o strict business plan appraisal for projects => funnels and clear gateway
  • 31. Honda Viet Nam Manufacturing Process: 2nd system - Event / Competition: o employees speak out their ideas at any time o prize for the valuable contribution. - The good idea will apply to the process - Implementing R&D from fortunate discovery by their staff
  • 32. Innovation Strategy and Leadership - CEOs have been strongly associated with enacting and supporting the innovation culture which characterizes the firm - The overall innovation strategy is focused on two core themes deep technological competence and strong product development capabilities
  • 33. Innovation Strategy Setting stretch targets, a focus for the whole Organization. Allocating space and time for staff to explore ideas. Encouragement employees working on innovation projects in their own time and often accessing resources in a non-formal way Encourages intrapreneurship (internal entrepreneurial behaviour) rather than people feeling they have to leave the firm to take their good ideas forward.
  • 34. Innovation Strategy and Leadership in Vietnam CEOs should take time to understand the potential of their employees and the prospect of their organization. Encourage and incentive with new ideas which have good outcome or improvement.