3MHREngagement 11.24.10 For Release Final

3M Human Resources Measurement
Engagement: A Multiyear Affair
Karen B. Paul, Ph.D. (kbpaul1@mmm.com)

Benjamin Schneider, Ph.D. (BSchneider@valtera.com)
3M 2010. All Rights Reserved.
Karen B. Paul, Ph.D.

Background
Responsible for creation and execution of:
Assessment and testing
Competencies
360s
Organizational survey research and executive assessment
Presented research for:
ASTD, HRPS, SIOP, APA and APS
Published in professional journals:
Journal of Applied Psychology
Training and Development
Author of chapter in:
Handbook of Employee Selection
Managing Human Resources for Environmental Sustainability
2
Manager, HR Measurement
3M Company
Ph.D. Industrial and
Organizational Psychology
Bowling Green State University
Benjamin Schneider, Ph.D.

Background
Responsible for advising on consulting projects, writing research

papers, and working with clients.
Special interests in organizational climate and culture, employee

engagement, service quality, linking employee survey data to
corporate effectiveness, and the role of personality in
organizational life.
Published nine books and 150+ professional journal articles and

book chapters. The latest book (with W. Macey,
K. Barbera, & S. Young is Employee Engagement: Tools for
Analysis, Practice and Competitive Advantage
(Wiley-Blackwell, 2009).
Taught at the University of Maryland for many years as well

as Yale University, Michigan State University and for shorter
periods of time at Bar-Ilan University (Israel; on a Fulbiright), and
Dartmouth College.
Winner of several awards for his research including SHRMs 2009

Michael R, Losey Award for his work on service quality.
3
Senior Research Fellow,

Valtera & Professor Emeritus,
University of Maryland
Ph.D. in Industrial and Social Psychology
University of Maryland
Little Bit of Background

on 3M and Valtera
4
More Than 35 business Units

Organized Into Six Market-Leading Businesses
Consumer and Office

Display and Graphics
Electro and Communications
Health Care
Industrial and Transportation
Safety, Security and Protection Services
5
3Ms Technology Platforms

Ab
Abrasives
Ac
Pm Sm
Bi
Biotech
Ce
Ceramics
Electronic
Materials
Ad
Dd
Fc
Adhesives
Am
Drug
Delivery
Flexible
Converting
& Packaging
Di
Fe
Advanced
Materials
Display
An
Do
Analytical
Dental &
Orthodontic
Materials
As
Ec
Application
Software
Energy
Components
6
Nt
Em
Acoustics
Nanotechnology
Mi
Fs
Is
Flexible
Electronics
Filtration,
Separation,
Purification
Integrated
Systems
Design
Fi
Im
Lm
In
Md
Films
Fl
Fluoromaterials
Imaging
Inspection &
Measurement
Light
Mgmt
Medical
Data Mgmt
Nw
Microbial
Detection &
Control
Nonwoven
Materials
Me
Mo
Op
Mf
Mr
Metal Matrix
Composites
Mechanical
Fasteners
Molding
Microreplication
Optoelectronics
Pd
Particle &
Dispersion
Processing
Pe
Predictive
Engineering
& Modeling
Polymer Melt
Processing
Specialty
Materials
Po
Su
Porous
Materials &
Membranes
Pp
Surface
Modification
Tt
Precision
Processing
Track and
Trace
Pr
Vp
Process
Design &
Control
Rp
Vapor
Processing
We
Radiation
Processing
Accelerated
Weathering
Se
Wo
Sensors
Wound
Mgmt
3M Facts
Year-End 2009
Sales
Worldwide................................. $23.1 billion
International (63% of total)........ $14.6 billion
Where are We?
Sell products in over 200 countries
Operations in more than 65 countries
Earnings
Net income................................ $3.19 billion
35 international companies with manufacturing

operations, 35 with laboratories
In the United States, operations in 28 states
R&D Expenditures
For 2009................................... $1.29 billion
Total last 5 years................... $6.86 billion
6700 researchers worldwide; 3,400 in the

United States
Contributions:
Employees
Worldwide......................................... 74,835
United States................................. 31,513
In 2009, donations of cash and products totaled

more than $50 million in the U.S. alone
567 U.S. Patents Awarded

7

3M Human Resources
HR partners with
the business to drive
growth through people
GOVERNANCE
HR principles
Strategic HR oversight
Policy development and adherence
Compliance
3M Source
24/7 Information and transactions
HR Contact Center
Resolution and referral services
Benefits
Compensation
Employee relations
Employee services
Measurement and assessment
Mergers, acquisitions and transitions
Talent acquisition
Talent development
Workforce planning and management
8
INFORMATION
SERVICES
BUSINESS
HR MANAGERS
CENTERS OF
EXPERTISE
Leadership team counsel

HR strategy supporting business
strategy
Human Capital plans
emphasizing identification and
development of talent
Brokerage of resources required
to meet business HR plans
2010-2014 Global
3M Strategies
HR Business
Critical Ys
Grow the current

core business
Engaged,
Productive
and Diverse
3M Employees
HR Vision
HR partners with
the business to
drive growth
through people.
Complimentary
acquisitions
International growth
Build new
businesses
HR Mission
Provide workforce
and organizational
solutions to
accelerate strategy
execution and drive
operational
excellence.
3M Strategy
Acceleration
Through HR
Leadership and
Expertise
3M Workforce and
Organizational
Readiness
Operational
Excellence and
Productivity of
Global HR
Services
Protect the
Corporation
9
HR Strategies
1. Engage employees and strengthen
employment brand
2. Enhance ability to acquire
and retain the right workforce
3. Enable effective human capital planning
and increased workforce productivity
4. Optimize HR administration including
global web and call centers
5. Accelerate the development of talent
6. Design compensation and benefits plans

to meet evolving business needs
About Valtera
Valtera provides premier human capital consulting and technology solutions to organizations worldwide in the
following areas: Surveys and Analytics, Employee Engagement, Leadership Assessment, Testing and
Selection, and HR Audits and Legal Support.
Valtera was founded in 1977 and has been providing employee survey services globally since that time.
Valteras long and successful history of providing employee surveys has been built on the basis of our
consistently high standard of delivery for some of the worlds leading corporations. Valtera managed the
international data warehousing and reporting for the Mayflower global survey consortium from 1992 to 2010
with 100% accuracy.
Valtera corporate leaders are recognized authorities in the field of organizational/industrial psychology and
they are intimately involved in the execution of large-scale projects. Their recently published work on the
organizational drivers of customer satisfaction was selected as the winner of the 2009 Journal of Service
Research Best Article Award sponsored by IBM.
Valtera uses a fully integrated online survey platform to administer paper and web-based, multi-language
global surveys for hundreds of thousands of participants in a single wave.
Beyond offices just outside of Chicago Valtera has offices in the Netherlands and the Czech Republic, and
working partnership with firms across the world including firms in Europe, China
and India.
10
Everybody wants to have an engaged

workforce because it can forge a path to
competitive advantage.
Yet ask five different people to define engagement and
youll likely get five different answers .
11
What is Engagement?
3Ms Definition
engagement (in gjd/ mnt)

an individuals sense of purpose and
focused energy, evident to others in
the display of personal initiative, effort
and persistence directed toward
organizational goals.
It is all about alignment.

12
Is Satisfaction the Same as Engagement?

Behaviors
Engaged employees behave:

Persistence at difficult tasks
Helping others
Taking Initiative
Going beyond expectations
Satisfied employees behave:
Low absenteeism
Low turnover
Low substance abuse
And so forth
Engaged employees are satisfied too
And demonstrate satisfaction behaviors
as well as engagement behaviors
Why Should We Care?

13
2006 Valtera Corporation. All Rights Reserved.
A Broader Business Case

True competitive advantage is indexed between MANY firms, not simply measured
within ONE firm.
14
Engagement Even More Critical in a Tough

Economic Climate
3M has learned strong leadership engages employees
in tough economic situations and pulls us through faster
than the competition
When the urgency and need are clear, employees deliver!

15
The Conditions that Yield

Engagement Attitudes and Behavior
16
The Engagement Model

Organizational
Outcomes
Engagement
Behaviors
Engagement
Attitudes
Conditions
For
Engagement
17
How to Build Conditions for Engagement

Treat people fairly
Accountability and Rewards metrics, pay,

promotions, performance management
Interpersonally respect, warmth
Procedurally keep promises, involve people in

decision-making, have an operational rhythm,
distribute work equitably
Pay attention to the seemingly mundane
Technology
Support
Internal battles
Recognize and celebrate
18
How Does Trust in Management

Impact Engagement?
19
Legend
Conditions for Engagement
Leadership
Resource
Allocation
Performance
Management
Job
Satisfaction
Growth
Feedback
Commitment
Values
Total
Compensation
Intention
To Stay
Poor
<50%
Favorable
Good
50-80%
Favorable
Excellent
>=80%
Favorable
Engagement
Trust
Supervision
Work Group
20
Communication
Diversity
Recognition
Safety*
Innovation
Alignment
Career
Progress
Responsibility
Customer
Focus
Job Demands
Loyalty
Based on US 2009 Standard Opinion Survey Results & 2009 US Leadership Survey
Change
Bottom
Line Results
Trust in Management
Division Management has a high
level of personal integrity.
We know from our own

research at 3M that this
is the single best
predictor of employee
attitudes.
The first lens of how
employees view the
workplace
57%
YES
Data from 3M Poll

16%
NO
56
28
16
21
2000 3M Poll
Division Management is good

at driving the changes
needed for growth.
9
19
72
Basic Building Blocks of Engagement

Engagement happens when people feel safe to take action
on their own initiative
People feel safe when they trust their environment
People trust their environment when they feel fairly treated
by it
Fairness
Trust
Feel Safe
Engaged
The key is to create a culture of trust in organizations

22
Dimensions of Managerial Trust

Managerial consistency
Acting with integrity
Sharing and delegation of control
Openness of communication
Demonstration of concern
23
* From Whitener, Brodt, Korsgaard & Werner (1998)

Achieving Employee Engagement

What are We Doing?
24
Engagement Objective
Improve employee engagement levels to drive
organizational outcomes
Key Components
Corporate-wide:
Improve employees understanding of 3Ms vision, future and decision-making

Increase communication of business goals, plans and achievement
Involve employees to help them understand what is engagement and what is
the business case
Within Businesses:
Provide support to the Big B/Area/Staff Groups to take action on the concepts
communicated in and through the corporate-wide components of the strategy
Additional areas of focus to address identified gaps
25
2008-9 Strategy Summary

Global Goal Tree (1 of 4)
HR
Strategy
HR
Sub-strategies
HR Tactics
In Support of Sub-strategies
Career paths project
Mentoring
How to make my work

challenging and meaningful
Coaching
Job rotation
Engage Employees
360
Connection to work / life benefits
Connecting engagement to employment brand
Align to the big 3M
NEO
Linking with sustainability
Integrate innovation into the story
Built into leadership competencies
Leadership responsibility
to build the environment
Emails from CEO

Imbedded in leadership programs (GM/MD; ALDP, etc)
Messaging of engagement as a leadership responsibility
26
Where Are We?

Got most of the pieces in place
Differences in U.S. / international structure require
more attention
Built Corporate
Tools and
Resources
27
Train HR WW
Business Unit
Intervention
Country
Level
Intervention
Corporate
Level
Intervention
Driving a Growth Culture
Engaging Every Employee to Serve Our Customers, Shareholders and Communities
Customers
Employees
Shareholders
Brand
Employment Brand
Shareholder Promise
Innovative products with superior

quality, value and service
Acquire, retain, value and

develop employees diverse
talents, initiative and leadership
Provide attractive returns through

sustainable global growth
Customer loyalty and

share growth
Employee engagement,
mind share and productivity
Growth in 3M stock
Our communities, our world.

Respect our social and physical environment around the world.
28
Alignment of HR Practices
Human
Capital
Planning
Succession
Planning
Development
Performance
Appraisal
Leadership
Attributes
Assessment
29
Tier Reviews
Consensus
Review
Leadership Attributes
Thinks from outside in
Drives innovation and growth
Develops, teaches and engages others
Makes courageous decisions
Leads with energy, passion and urgency
Lives 3M values
Engagement is essentially a leadership responsibility.

30
2009 Engagement
Seeing Worldwide Improvement in Scores
Book on Employee Engagement Came Out
Named by APQC as one of the Best for

Rewarding, Engagement, & Retaining Key Talent
Profiled by SHRM, Conference Board and webinar with i4cp
2008 Named by CEO Magazine #1 Best Companies for Leaders
Named by Fortune #16 Global Top Companies for Leaders
Engagement Video Series for Supervisors & Managers Well-Received
Blog In Place
HR Vendor Conference on Engagement
Employment Value Tool was Rolled Out
Great things going on in the businesses and countries
31
Employment Brand
32
Key Messages:
Driving 3Ms global leadership
Inventing the future with technology
Succeeding through collaboration
Creating solutions to sustainability challenges
Developing diverse talents, building careers
Building a Stronger Brand

Start Here
Employee Engagement
Customer Engagement
Share of Customer
Sales Revenue
33
Definitely in Social Media

www.facebook.com/3MCareers.US
Whats Next
Globally?
Sales, Lab/TS:
Facebook
Linked In
Twitter
Landing Pages
SEO Pay-Per-Click
Campaigns
34
Employee Engagement
A Green 3M
Employee
Assistance
Program
Community
Giving
A Healthier You
Taking Care
of the
Environment
Taking Care
of Others
Taking Care
of Our
Communities
Taking Care
of Yourself
35
3M Poland Green Week Program

15-19 June 2009
Program Objectives:
Building and enhancing 3M image
(Employment Brand) as a socially
responsible company
Creating positive impact on the Employees
Engagement and work atmosphere
Ecological education including
3M best practices
Increasing environmental
awareness among the Employees
36
Joint program of CMPA, EHS and HR

Monday to Friday Activities

Monday: Recycling
Wednesday: Switch Off
Friday: Make It Green
Presentation of the film: The

Inconvenient Truth global warming
documentary movie
Take back event a small gift for

employees
Day with a car (bicycle, car sharing)

small awards for those who arrive first
to work on bicycle
Collect used paper, cans etc. to gather

money in return and donate the money
to local ZOO
Mailing recycling!
Contest Green eco-photo (awards:

books, calendar with ecological
advices), exhibition of best works
Seat trees, sow grass

Bicycle race options:
Clean your office

(one hour desk cleaning)
For each km 3M pays 1 PLN and

donates the money to local ZOO
Mailing switch off!
Training bike on the site.

Mailing Green Office!
Tuesday: Save
Thursday: Go On Foot
Contest Eco-film (ecological films

recorded on mobile phones) award
the best film employees voting
Quiz Eco-knowledge on the base

of 3M materials and mailing
Presentation of 3M ecological and

sustainability projects
Event Exchange or forward: bring your

old books or any products you are not
going to use and exchange for other
products you might use.
Calculate the energy you use! Mailing
Voting and selecting the best Eco-film
Mailing go on foot. Economic driving.
37
3M Thailand
38
"Green Touch Campaign" to Enhance the

Employee Engagement For Sustainability
As one part of Green Touch campaign, Employees' Children Environmental Protection Painting Contest was launched from July to September.
Over 60 lovely kids' paintings were collected. Finally 19 paintings won the awards thru online voting and some of them were selected for
making 3M China's New Year eCard
39
Employee Engagement and Sustainability 2010

Need to Be Doing So Much More
Engagement video for supervisors
and managers (Top Ten Things You
Should Know about Sustainability)
Video contest
Leadership survey roll-out
on January 27th
40
Employee Engagement
A Green 3M
Employee
Assistance
Program
Community
Giving
A Healthier You
Taking Care
of the
Environment
Taking Care
of Others
Taking Care
of Our
Communities
Taking Care
of Yourself
41
Making a Difference: Healthy Living Resources

A diversified four-part program designed to:
Lower our long-term health care costs and enhance employee productivity
Reduce the demand for costly medical interventions
and minimize employee productivity loss
Help employees better manage their lives physically, socially and emotionally
Other employee objectives:
Engagement | Recruitment | Enhance organizational commitment
42
Where Weve Been: Key Accomplishments to Date

17,899 employees
participated and
received $100 incentive
Health plan
administrators have
reached out to at-risk
employees and offered
coaching classes and
additional programs
43
August 2008
Program Launch
December 2008 March 2009
Health Screenings
and Assessments
Employee Engagement:
Key Strategy to Growth, Innovation and Retention

Engagement:
Aligning Individuals
Purpose and Energy with
Organizational Goals
Pride
in 3M
Brand ambassador
Community partner
Social responsibility and sustainability
Family appreciation events
Media coverage
External recognition and awards
Career Fulfillment
Basic Employee Needs
Regular and Open Communication
Performance oriented company

Challenge and growth
Career advancement and broadening
Personal career development
Effective supervisor and peer relationships
Safe working conditions
Equitable compensation and benefits
Ethical business practices
HR principles
3M values
Active visible leadership is needed to promote stronger levels of engagement.

44
Engagement as a
Leadership Responsibility
45
Global vs. Local Debate

Fundamentals of engagement
are universal
The desire for meaning and purpose

in the workplace knows no borders
How you capitalize on the fundamentals

is local
After all, results from their recent survey showed that 3M Mexico
employees boast a 95 percent favorability rating. That feedback,
according to Shivitz, is the best indicator of future financial success.
Ed Shivitz,
Managing Director, 3M Mexico
Stemwinder April 23, 2007
46
People have needs
Organizations have needs
How you align these 2 facts can produce

engagement and financial success but is
context specific
Best Employer
Enthusiastic
Work Climate
Remain at 3M
Take on New Roles

& Responsibilities
Engagement
Adapt to
New Ways
Pursue
Development
Recommend 3M
Excited About
Contribution
Best Places
to Work Spain
2009 Best
2008 Best 3M Czech Republic
47
Quick Hits You Can Do

Focus on the customer
Read a book or journal article together and discuss
Random lunches
Buy 1001 Ways to Energize Employees by Bob Nelson
Engagement isnt just recognition but it is a small start in the right direction.
48
Innovation and Engagement

(Whats the relationship?)
49
Three Work Areas: With Innovation at the Core

Employment Brand
Perception of your company In the market place
and the Value our employees derive
from working here
Engagement
Sustainability
an individuals sense of purpose

and focused energy, evident to others
in the display of personal initiative,
effort and persistence directed
toward organizational goals.
Triple bottom line:

People, Planet and Profit
Social responsibility
Environmental sensitivity
Economic viability
Sweet Spot
Culture of Innovation
50
Submit Your Ideas for Products
51
Gary Hamel The Future of Management

Formidable Challenges that Confront Companies in this
New Century
Dramatically accelerating the pace of strategic renewal in
organizations large and small
Making innovation everyones job, every day
Creating a highly engaging work environment that inspires
employees to give the very best of themselves
(p.40-41)
52
We Know From Our Own Research

Those 3M business labs that are
more engaged have a more
positive view of Innovation and 2
years later were more profitable
(r=.56 Innovation and Engagement)
53
How can we do better?

William L. McKnight
54

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3M Human Resources Measurement

Engagement: A Multiyear Affair

Karen B. Paul, Ph.D. (kbpaul1@mmm.com)

3M Human Resources Measurement

Karen B. Paul, Ph.D.

Responsible for creation and execution of:

Assessment and testing

Organizational survey research and executive assessment

Presented research for:

ASTD, HRPS, SIOP, APA and APS

Published in professional journals:

Journal of Applied Psychology

Training and Development

Author of chapter in:

Handbook of Employee Selection

Managing Human Resources for Environmental Sustainability

3M Human Resources Measurement

Benjamin Schneider, Ph.D.

Responsible for advising on consulting projects, writing research

Special interests in organizational climate and culture, employee

Published nine books and 150+ professional journal articles and

Taught at the University of Maryland for many years as well

Winner of several awards for his research including SHRMs 2009

Senior Research Fellow,

3M Human Resources Measurement

Little Bit of Background

3M Human Resources Measurement

More Than 35 business Units

Consumer and Office

3M Human Resources Measurement

3Ms Technology Platforms

3M Human Resources Measurement

Where are We?

Sell products in over 200 countries

Operations in more than 65 countries

35 international companies with manufacturing

In the United States, operations in 28 states

6700 researchers worldwide; 3,400 in the

In 2009, donations of cash and products totaled

567 U.S. Patents Awarded

3M Human Resources Measurement

Leadership team counsel

3M Human Resources Measurement

Grow the current

5. Accelerate the development of talent

6. Design compensation and benefits plans

3M Human Resources Measurement

3M Human Resources Measurement

Everybody wants to have an engaged

3M Human Resources Measurement

engagement (in gjd/ mnt)

It is all about alignment.

3M Human Resources Measurement

Is Satisfaction the Same as Engagement?

Engaged employees behave:

Low substance abuse

Why Should We Care?

2006 Valtera Corporation. All Rights Reserved.

3M Human Resources Measurement

A Broader Business Case

2006 Valtera Corporation. All Rights Reserved.

3M Human Resources Measurement

Engagement Even More Critical in a Tough