Professional Documents
Culture Documents
What s in
3M: The Beginning 3Ms Approach: New Products Policies & Philosophies Internal Practices
Entrepreneurial Environment Internal Restructuring Lehr Jake DeSimone
3M The Beginning
1902: Minnesota Mining and Manufacturing 1902 to 1916: Embarkation stage struggle for survival The change by McKnight: direct communication between sales and plant
improved quality, helped develop new products
Further influences
1916: lab Dedicated product developer Wetordry 1925: masking tape born
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 POWER OF INDIVIDUAL ENTREPRENEURSHIP
Entrepreneurial Environment
Right mix of
Freedom and discipline Authority and responsibility
Personal freedom: 15:85 time split Natural advantage & Craftsmanship Inquisitive, passionate and self-starting Knowledge sharing Satisfy market needs From 3M
Willingness to listen and reward Support projects though not promising
Internal Restructuring
1937: Central Research Laboratory Not a hi-tech company but a creative company that needs high level of technology Tripod-like stability: Sales, Manufacturing and Production Retain good people: Dual Ladder career track Permitted well-intentioned failures 1944: adhesive division formed a success 1960s: Grow and Divide 30% of revenue to come from new products launched in last 4 years.
Action Teams to reduce time to market (Occupational Health and Safety Division)
Selective funding for projects Technical audit important management tool Pacing Programs projects identified
DeSimone (1992)
Combination of his predecessors
Herzogs motivational style Lehrs ability to bring the best out of individuals Jakes discipline, focus and objectivity
Four sectors to three Continued 5 yr plans Questions about innovation as main vehicle
External Factors
Balance between external demand and internal capability International expansion 1977: economic slowdown and foreign competition 1980: Oil shock
Competition global
Refine processes Become more efficient Apt resource allocation
Retrospect
Respect and exploit the potential of employees Expression of their individuality
They seed innovation and this sets standards for the organization
Hindsight, better streamlining and coordination of such practices needed when organizations grow on a global scale given the constraints for survival competition, cultural changes and the very need to innovate.
SWOT Analysis
Strengths
Strong research and development capability Diversified business portfolio Strong financial performances Strong return on average assets and investments
Weaknesses
Poor inventory management Rapid expansion of business volume which made them difficult to manage
Opportunities
Rising healthcare spending in the US Global expansion
Threats
Growth in private labels Exchange rate fluctuations Slowdown in the US and Eurozone
Shared Values Innovation Structure Freedom & Discipline Systems Open communication & planned innovation support from all levels. Style Cooperative Staff Natural skills and craftsmanship. Skills Meet the distinct need of customer needs, relationship-building business. Strategy To build a truly global brand, build market leadership.
Questions?