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4-1 Benchmark Study: 3M
MBA 580
SNHU
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• 3M manages innovation by creating an organizational culture that nurtures, supports,
and facilitates innovation. The philosophy ‘the way we do things around here’ reflects in
diverse organizational elements such as case histories, anecdotes, etc. The organization
believes in creating the conditions that support innovation and creativity, which aids in the
management of innovation. cc
• Within 3M, the innovation strategy and leadership style plays an instrumental role.
The innovation strategy encompasses two key elements – strong product development
capabilities and deep technological competence. The organization combines these elements,
which help to offer a consistent stream of innovative products along with product
improvements. The leaders adopt the transformational leadership style and serve as the
flagbearer of innovation (Kozioł-Nadolna, 2020). The previous CEOs of the company have
played an instrumental role in enacting and supporting an innovative culture in 3M.
• 3M enables the innovation process by developing a set of policies and structures that
provide guidance to the entire innovation process. These elements influence every stage of
innovation, starting from identifying minute signals to the implementation stage. The
company also focuses on establishing parallel routes which allow the adoption of innovation
from close market interactions, integrated technology research, or collaborative efforts
(Kozioł-Nadolna, 2020).
Significant features or processes promoting innovation
• In 3M, the management team makes sure to recognize and reward employees that
facilitate innovation. There exist a diverse range of schemes throughout the firm that
acknowledges the innovative activity of the personnel. For example, the Innovator’s award is
given to employees to recognize their efforts. Innovation is respected throughout the
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organization. For example, a ‘hall of fame’ is created, and its members are chosen based on
their innovative achievements (Kozioł-Nadolna, 2020).
• The ‘permission to play’ is an important concept that 3M adopts in the organizational
setting to provide ample flexibility to its employees. Such an approach ensures that the
employees are given ample time to focus on curiosity-driven activities. Such a move might
lead nowhere, but it could also give rise to the creation of breakthrough products. It allows
employees to explore their creative side.
• The element ‘patience and acceptance of mistakes’ plays a key role in 3M to enhance
an innovative culture. The organization believes that patience is critical to stumble upon
unique and creative ideas and allow them to take shape. Similarly, accepting mistakes
encourages the employees to take risks, learn from the mistakes and take initiatives to create
something new and valuable.
Comparison of the automobile organization with 3M
• There exists a significant difference between 3M and the automobile company in
terms of organizational structure. In 3M, a flexible structure is in place, which facilitates all
the functions to operate collaboratively and work together to drive innovation. A flexible
structure is in place so that it would not stifle innovation. In the automobile company, the
structure is not as flexible as that of 3M, which restricts the development of its IoT
capabilities.
• There exists stark difference when it comes to formal and informal innovation
management in the respective organizations. In the case of the 3M organization, an informal
innovation management concept is in place which allows every employee to think creatively
and contribute to the creation of breakthrough market offerings. There is an opportunity to
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give rise to innovation through many directions such as lucky accidents, etc. In the luxury
automobile company, a more formal and rigid innovation management model is in place. It
has restricted the ability of the business to strengthen its connected car capabilities and
transform into a market leader
• The organizational structure in both companies influences communication, which
ultimately impacts their ability to innovate. In 3M, the flexible structure facilitates
collaboration, streamlined engagement, and information sharing. The free flow of ideas plays
a key role in encouraging innovation. In the automobile firm, the hierarchical structure
restricts information flow and limits the sharing of new and creative ideas. Thus, it acts as a
major constraint to innovation.
Identification of process gaps of the organization
• In the automobile company, various steps need to be taken to create an organizational
structure that supports innovation. Firstly, a flexible structure must be designed that can
support teamwork, collaboration, and better communication. Secondly, employees must be
given the opportunity to operate in a resilient manner so that they can learn and contribute
to the improved IoT capabilities of the company.
• The automobile organization could utilize several rewards to motivate innovative
behavior. The efforts and initiatives of the employees must be acknowledged and recognized
by the management. Additionally, performance-based rewards like incentives, bonuses,
opportunities to be a member of elite innovators’ clubs could be introduced to encourage
innovative behavior (Sanders et al., 2018).
• The organization could examine its timeline to identify ways for the success of
longer-term projects. Some of the key areas that must be evaluated include the innovative
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behavior of employees, the number of new and breakthrough products that have been
introduced, and the support that management has extended to the employees to foster
innovation. cc
References
Kozioł-Nadolna, K. (2020). The Role of a Leader in Stimulating Innovation in an
Organization. Administrative Sciences, 10(3), 59.
Sanders, K., Jorgensen, F., Shipton, H., Van Rossenberg, Y., Cunha, R., Li, X., ... &
Dysvik, A. (2018). Performance‐based rewards and innovative behaviors. Human
Resource Management, 57(6), 1455-1468.
