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3M Electrical Markets Division

3M Electrical Markets Division

INTRO.
3M stands for Minnesota Mining and Manufacturing
Company
Headquarters are in the St. Paul suburb of Maplewood,
Minnesota, USA.
One of the ten most admired corporations Fortune
annual poll of American CEOs.
The 3M model:

Continuous technological innovation

Institutionalized individual entrepreneurship

Market responsiveness

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3M 2007. All Rights Reserved.

3M Electrical Markets Division

INTRO.
Established in 1902, producing abrasives and adhesives products.

Benefited from product innovation in the early days


The culture of individual entrepreneurship.

Operations in more than 65 countries.


Available in more than 196 countries.

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3M 2007. All Rights Reserved.

3M Electrical Markets Division

3M Today
Health
Care

Industrial
Consumer
&
Office

Display &
Graphics
Safety,
Security &
Protection

Transportation

Electro &
Communications

3M Electrical Markets Division

Specialty Material Mkts


Sales: $1.0 B

Transportation,Graphics
& Safety Mkts
Sales: $3.5 B

Health Care Mkts


Sales: $3.4 B

3M Electrical Markets Division

Electro &
Communications Mkts
Sales: $2.2 B

Consumer & Office Mkts

Industrial Mkts

Sales: $2.7 B

Sales: $3.2 B

3M Electrical Markets Division

Entrepreneurship versus structure


Innovation the spirit of entrepreneurship

Competition through new products

Competition through new niches

The dilemma between entrepreneurship and structural differentiation


The 3M way:

External demands and internal capabilities

Decentralization: locus of decision at lower lab units;

Organizational design to facilitate lateral communication

The strategy of growth through new niches, rather than competition in existing
markets.

3M Electrical Markets Division

The role of organizational culture


Organizational culture: norms, expectations, and tacit knowledge
The 3M way:

Innovation is the center of organizational culture


Resistance to bureaucratic intervention is encouraged;
Contribution to innovation is greatly respectedlegends, institutional memories,
ceremonies.

Structure versus culture

Cultural: The value of knowledge sharing


Structural: Technical Council, Technical Forum, lateral interaction

3M Electrical Markets Division

Human resource practice


The roles of rewards and incentives
The role of loyalty for 3M
The 3M way:

Rewards for innovation

Dual track of promotion and recognition

Tolerance of well-intentioned failures

3M Electrical Markets Division

Leadership and Strategic Vision


The role of leadership

Allowing failures

Patient with experimentation

Strategic visions

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The link between structure, culture, and growth strategies

The evolution of strategies


The 25% rule
From single market to multiple markets
From new market niche to competition in existing markets

What 3M does right


15% of all employees time is allowed to be on their pet projects
(the 3M Way).
The work of outstanding technical employees is recognised by the
3M Carlton Society, this is voted on by peers.
Employees that create products which sell $4 million or more are
awarded the prestigious Golden Step Award.
Employees have a choice to work on a management or laboratory
career ladder, no employee is forced to take a management role if
the dont wish it.

Operations in > 60 Countries


Sales in > 200 Countries (Intl = 53% of Total Sales)
75% of Executives Have International Experience
99% of Intl Employees Are Local Nationals

International Is 3Ms Single Biggest Growth Platform

W.
W.James
JamesMcNerney
McNerney

CEO
CEO

Patrick
PatrickD.
D.Campbell
Campbell

CFO
CFO

Controllers/
Controllers/ Corporate
Corporate
Ops
Finance
Audit
Ops Finance
Audit

Fin.
Fin.Planning
Planning
&
Analysis
& Analysis

Tax
Tax

Treasurers
Treasurers

THANKS