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Running Head: 3M ORGANIZATION AND ACQUISTION TEAM PROCESSES

3M
Virtual-Global Team Project

Submitted to:
Professor Hannah Asfaw
COMM 431
Session Due: March 10, 2014

Submitted by:
Jeff Schultz
Karen Jackson
Jewel McNair
Paula Sappington
Jennifer Resemius

jeffrey.a.schultz@gmail.com
kaj87357@bethel.edu
Jem68682@Bethel.edu
kenow.sappington@gmail.com
jer85978@bethel.edu

Cohort ID: BCQ-13




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3M ACQUISTION TEAM
What does a stethoscope, welding helmet, touch screen, dental implant, and roof shingles
all have in common? These are all products made by 3M. 3M is a multibillion dollar company
that has its world headquarters in Maplewood, Minnesota with locations in 34 states and 70
countries. 3M has 88,667 employees worldwide and a net income of 4.659 billion dollars.
Innovation is important with 7.646 billion dollars invested in research and development in the
last five years alone (3M, 2014). No problem with that change
3M is comprised of several staff groups and five business groups which are:
Consumer-which makes products for the home and office,
Electronics and Energy which makes high performance electronic devices for
telecommunications and renewable energy,
Health Care, which makes innovative products for the health care industry,
Industrial, which includes abrasives, tapes and adhesives, and
Safety and Graphics which includes personal safety products and graphics used in
road and traffic signs.
There are more than 55,000 products made by 3M (3M, 2014).
3M started out as a small investment company in Two Harbors, Minnesota in 1905.
These investors thought they had found a source of minerals that could be used to make grinding
wheels. The mineral turned out to be worthless and the small company moved to Duluth,
Minnesota to concentrate on manufacturing sandpaper. By 1910 this small company had
managed to produce a quality product and attracted additional investors such as Lucius Ordway.
The company was moved to St. Paul in 1910. 3M paid its first dividend of 6 cents a share in
1916 and has paid dividends ever since.

Comment [JS1]: I would double check the APA
manual, but I believe when speaking in billions it is
good form to only break down to tenths of a billion.
That is the common usage in the popular press and
Chicago Manual of Style.
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Comment [JS2]: Consider writing in a bulleted
list to help the reader .
Formatted: Font: (Default) Times New Roman,
12 pt
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3M ACQUISTION TEAM
3M has several core values:
Act with uncompromising honesty and integrity in everything we do.
Satisfy our customers with innovative technology and superior quality, value, and
service.
Provide our investors an attractive return through sustainable, global growth.
Respect our social and physical environment around the world.
Value and develop our employees' diverse talents, initiative, and leadership.
Earn the admiration of all those associated with 3M worldwide (3M, 2014).
3M has teams that help to build on these values; there are hundreds of teams, co-located
and virtual. The team this group focused on is the Sourcing Operations (which is the purchasing,
accounts payable, and contracting staff group for all 3M businesses) Acquisition SWAT
team(which is the purchasing, accounts payable, and contracting staff group for all 3M
businesses). This team works with companies that 3M has acquired. These acquisitions are
typically small to medium sized companies that produce a product that will complement one of
the five businesses outlined earlier. Karen Jackson has been a part of this team (BLANK) since
2006 and has provided much of the detail about this team.
The Sourcing Acquisitions SWAT team is comprised of a group of Subject Matter
Experts (SMEs) from the Sourcing Operations Departments of Accounts Payable, Contracting,
Buying, Freight and Training. This teams main goal is to help the newly acquired business
succeed. This team provides extensive training, project management, and change management
and is just one of the many teams that will work with the acquired company to help them succeed
and live 3Ms core values.
Comment [JS3]: This parenthetical reference
should be moved to the end of the sentence after
SWAT team (parenthetical reference).
Comment [JS4]: Should say This team or 3M
Comment [JS5]: The first usage of an acronym
requires it to be defined in long format: Should read
Subject Matter Experts SMEs Check on the rule for
pluralization of acronyms if used in plural form later
in paper. I think it would simply be SMEs
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3M ACQUISTION TEAM
Acquisitions and mergers can be an extremely difficult process for any company and can
include issues with change management, change acceptance, virtual and face-to-face
communication, and meeting scheduling. Our main focus will be on change management, as it is
3Ms biggest challenge today. Change management is defined as the approach used to deal with
change for 3M and the company 3M acquires, both at a corporate level and for each individual
affected. As Peter Senge states in the Business Information Review (Goodman & Loh, 2011),
People dont resist change. They resist being changed. It is difficult for people to change what
they do and how they do things. The uncertainty that is associated with changing can be painful
to deal with. Change does not happen overnight. People need some sort of control over the
situation and need to see repeated successful results in order for them to want to continue using a
new process or technology.
For legal reasons, the acquisition cannot be announced until the day it goes public. From
the time of the announcement, to the time 3M systems are up and running may vary from six
months to one year . Regardless,- change happens quickly. Imagine the escalating emotions each
individual is experiencing in the acquired company. Immediately, a level of trust is lost and
uncertainty creates fears, such as possible job loss, relocation, learning new technology,
traveling, working for a new boss, etc. Negative attitudes, resistance to change, lack of
motivation and commitment surface from underlying fear. These fears need to be driven out in
order to gain commitment and cooperation, and mitigate resistance. 3M has the responsibility of
not only building trust, which is at the core of a successful team and business, but also educating
and training members of the acquisition.
Therefore, because of the issues that can arise, 3M has a process of handling acquisition
project risks by applying Lean Six Sigma and basic technology solutions to assist with change
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3M ACQUISTION TEAM
management and communication processes. The Lean Six Sigma tool is used to invest in the
people side of change management and help members of a group overcome the natural
resistance to change (Wilder, 2013). Six Sigma is a tool that streamlines operations, eliminate(s)
variations, and deliver(s) a competitive advantage to [their] customers (3M, 2014). 3M uses a
number of Six Sigma related tools: A communication plan, a RACI Matrix, and a Change
Acceptance Plan (CAP). All of these tools are used to determine the team, their roles and
responsibilities, and solidify the organization's structure, with a focus on manufacturing quality
products efficiently.
Trust is an essential ingredient in order for a team and organization to collaborate, meet
deadlines, and be successful. Studies have proven that technology is not what makes a virtual
team successful. The effectiveness is based on the premise of trust and formed relationships that
technology supports (Nemiro, Beyerlein, Bradley, & Beyerlein, 2008). Trust and believing in
each other is a prerequisite for effective teams (Goodman & Loh, 2011).
Options to help improve 3Ms change management and communication challenges could
include support for individuals starting the very day the acquisition is announced. 3M does have
a human resource department (HR) to assist individuals within 3M. 3Ms Human Resources
department provides information and support to new acquisitions. Each 3M location has its own
human resource representative. When possible the human resource people that were part of the
acquisition before are assimilated into the HR department for that location.
The acquired companys high level supervisors should be listening to and coaching the
newly acquired employees fostering a positive atmosphere and help the newly acquired
employees become acclimated to a new company. This will help process their emotions and
fears, which can create an attitude of trust and certainty versus one of fear. So often,
Comment [JS6]: Awesome transition!

Comment [JS7]: RACI needs to be defined
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3M ACQUISTION TEAM
organizations are focusing merely on task deadlines rather than processing the impact that
change has on the individual. This suggestion could increase individuals and the companies
resistance to change.
Acclimating to a new culture can create communication difficulties. Communication is
another challenge for 3M, and especially for acquisitions. The newly acquired company is not
familiar with how 3M communicates. Having to teach a new work culture is a challenge due to
time constraints in meeting deadlines. Virtual teams are different from collocated teams. The
boss is no longer down the hallway and accessible for questions throughout the day. At 3M,
communication and assignments are most often done through emails. Due to different time
zones, it is not always possible to get an immediate response to emails; it may take up to 24
hours or longer. This slows the process down and makes it difficult to obtain answers before
moving forward and meeting deadlines.
3M does meet face to face on the day the purchase is announced or as soon as possible. A
couple of weeks later teams will travel to the acquisition location, and be on site during the
month they go live with 3Ms systems and tools. Different businesses will set up regular
meetings, starting with weekly, and later daily, then back to weekly meetings. When integration
is complete, they have another get-together to complete the process. Once the acquisition is
running on 3M systems, they discuss the lessons they learned and have a celebration.
Some of the basic communication technology tools 3M has incorporated into the
acquisition process have been Articulate Presenter and User Productivity Kit (UPK) these are
used specifically to create on-line (WBT) training; Microsoft project, which is used to track
progress; Team rooms, which is a place that all the team documents are stored; a Tricomm phone
conferencing system, and Web meetings, which allow users in different locations to share
Comment [JS8]: Consider rewriting this
sentence
Comment [JS9]: Where is WBT defined? What
does it mean?
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3M ACQUISTION TEAM
screens to help assess and resolve project communication issues. The extensive web based
training (WBT) allows 3M team members to immerse the new acquisition team into 3M culture
and gain insight into the new systems and technology tools required.
Project Tracking is another resource utilized within 3Ms acquisitions. 3M uses Microsoft
Project as a resource to track the progress of tasks. Microsoft Project is a very well rounded
program with diverse tools and functions. One of the functions assists with listing the tasks while
specifying who is responsible to execute them and coordinating time to accomplish them.
Included in Microsoft Project, 3M utilizes a dashboard feature that management likes to see
when tracking a project. Management uses the dashboard for quick insight into the main
elements of the project and how they are functioning without having to review the entire scope of
the project details. A dashboard which is generally a type of graph can be generated by MS
Project, Excel, or any other tools, that are appropriate for the project.
Support is an important resource that is provided for the systems and tools that are being
implemented in order to purchase, pay, and contract with suppliers. Specific IT resources
(people) are responsible for implementing and maintaining the systems and tools that are needed.
Technical support is provided in person as well as over the phone and electronically. The
Sourcing Operations department assists in providing these resources to the acquired company.
Other teams provide other kinds of support. For example, if 3M purchased a company that
produces sandpaper, then they would become a part of the abrasives division. Thus, other
divisions will provide similar support functions relative to their specific areas.
3M is a company that has been built on innovation. The board of directors, CEO, CFO,
CIO, Staff Vice Presidents, Division Vice Presidents, Directors, Managers, Supervisors and the
rest of 3Ms employees are all focused on innovation and growth. Because 3M is a global
Comment [JS10]: Consider: IT provides people
as resources who are responsible for.
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3M ACQUISTION TEAM
company the work atmosphere is sophisticated and looks outward to all areas of the globe, not
just the US. It is a highly diverse population of people that are motivated and willing to work
toward change to help drive the company to success. At 3M, 15 percent of time and capitol is
dedicated to new product development (3M, 2014). This kind of work environment welcomes
newly acquired companies and works to help them grow and change with 3M.
In addition to competing in the global marketplace through their core businesses, 3M also
competes in the marketplace to acquire whole companies. The primary competitors for 3M in the
mergers and acquisitions (M&A) space include Johnson & Johnson, Procter and Gamble, and
Avery Products Corporation. Due to the overwhelmingly complicated and risky nature of M&A,
information regarding specific strategies for 3Ms competitorscompetitors use for M&A
integration is closely guarded. Kevan Hall of Global-Integration, a consultancy that helps
companies operate virtual teams in the M&A Integration space, states that companies have three
basic strategies for post-acquisition integration. Companies can choose to assimilate the acquired
companies into the existing parent company culture and systems, create a synergistic new
company culture, or protect the culture and systems of the acquired company and manage the
new asset at arms reach (Hall, 2012).
In a 2012 interview by McKinsey & Company in the journal, Perspectives on Global
Organizations, Jesse Wu of Johnson & Johnson reveals his companys strategy for the initial
phase of post M&A integration. Wu states,

When we do an acquisition in an emerging market, of a brand or a small to
midsize company, we generally keep that operating company separate and
decentralized. We try to protect its business modellarge volume, fast turn, little
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3M ACQUISTION TEAM
advertising, whatever. I always remind people that the reason we bought the brand
was because it was successful. As for integration, we first empower the local team
to manage the acquired business and follow the established business model.
(Where did the reference go?) you have it at the start of the quote

The interview reveals the two primary risks of failing to integrate an acquired company
properly. If an acquired company is too heavily integrated into the new parent, the risk of losing
its unique value added identity and culture which inspired the acquisition in the first place is lost.
On the other end of the spectrum, if the newly acquired company is not at least integrated into
the parents systems in some way, the benefits of a decentralized company make way to a
fragmented infrastructure that fails to take advantage of the synergistic potential of the merger.
Wu states clearly the tension between protecting the acquired companys culture and enjoying
the benefits of post integration synergies in this statement:
We go as far as to ask specifically for approval for visitors to the newly acquired
company, particularly people from our internal functions. We do this to protect
the acquired business from being overwhelmed by well-intentioned people who
want to come in to see how they might add value but who may not be adding to
the immediate business priorities.Its important to empower the local team or
region so that we dont have to give all of the instructions from the center.
However, we have also learned as a highly decentralized company that if youre
not careful, you can end up with a fragmented approachfor example, different
IT systems in different countries. (Dewhurst & Griffin, 2012, p. 48).
Formatted: Indent: Left: 1", First line: 0"
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3M ACQUISTION TEAM
For 3M and its competitors the success of each merger or acquisition is dependent on
choosing the correct post-merger integration strategy in each unique instance. 3M looks at each
acquisition independently and will decide how the acquisitions will be handled in a case by case
manner. Each acquisition is unique and has its own distinctive needs.
3M is a multi-billion dollar company that has grown successfully for over 100 years. 3M
has locations in 70 countries and has over eighty-eight thousand employees. In a company that is
so vast there are going to be issues and problems that need to be solved, especially in an area of
mergers and acquisitions that deal with time sensitive matters, highly confidential information,
and drastic change. Some of the struggles with mergers and acquisitions are change
management, communication, and scheduling meetings due to time zones. 3M has valuable
resources to help aid in solving the challenges 3M faces. The resources range from Lean Six
Sigma, project tracking, and teams like the Sourcing Operations SWAT team and other teams
representing the business group or staff group affiliated with the newly acquired company. 3M
uses a variety of technology from web based training, teleconferencing, web meetings, and many
forms of communication tools.
The problems that 3M faces with acquisitions and mergersM&A are met with the
valuable resources thato help aid in solveing these challenges. However, there are areas that
could be improved.; Rricher media, such as video conferencing can help people feel more
comfortable with each other., Eevaluating where employees are placed and how effectively team
members and leaders are working together would also benefit 3M.
Due to the secrecy of mergers and acquisitions, little public information regarding the
specific tools and practices the competitors of 3M uses exists publicly. However, each of 3Ms
competitors faces the same strategic choice during the post-acquisition phase of integration:
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3M ACQUISTION TEAM
assimilate the acquired company, create a new entity, or protect and manage the acquired
company at arms reach. This choice greatly influences the demand and scope for the integration
team on both sides of the deal.
We live in a technological era, where the world is constantly changing. 3M has made a
successful business out of problem solving and inventing. On their website it states, 3M is a
global innovation company that never stops inventing (3M, 2014). Due to the nature of mergers
and acquisitions there will always be some challenges with communication and change;,
however, 3M has shown a successful history of problem solving, adapting, and inventing. With
the tools and resources that the company has we believe that they will continue to have a
successful future.

Bibliography

3M. (2014). Corporate Profile. Retrieved March 5, 2014, from 3M.com:
http://solutions.3m.com/wps/portal/3M/en_US/3M-
Company/Information/Profile/Performance/
Dewhurst, M., & Griffin, T. (2012, March). Perspectives on global organizations - An interview
with Jesse Wu, worldwide chairman, Johnson&Johnson group of companies. Retrieved
from McKinsey&Company:
http://www.mckinsey.com/client_service/organization/latest_thinking/perspectives_on_gl
obal_organizations
Dobriansky, J. (2009). Improve Your Aqusition Process With Lean Six Sigma. Contract
Management, 49(11), 68-74.
Goodman, E., & Loh, L. (2011). Organizational Change:A Critical Challenge for Team
Effectiveness. Business Information Review, 28, 242-250.
Hall, K. (2012, June 30). Integrating mergers and acquisitions. Retrieved 2014, from YouTube:
http://www.youtube.com/watch?v=9BxWL4dRENI
Formatted: Font: Not Bold, Check spelling and
grammar
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3M ACQUISTION TEAM
Nemiro, J., Beyerlein, M., Bradley, L., & Beyerlein, S. (2008). The Handbook of High-
Performance Virtual Teams. San Francisco: Jossey-Bass.
Wilder, B. (2013, February 1). All Aboard: Lean/Six Sigma is a journey best traveled with
change management. Retrieved from Plant Services Digital Magazine:
http://www.plantservices.com/articles/2013/02-implementing-lean-operating-systems/