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4-1 Benchmark Study: 3M
MBA 580
SNHU
3M o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o
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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. o
• 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
3M o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o
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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 give rise
to innovation through many directions such as lucky accidents, etc. In the luxury automobile
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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 behavior of
3M o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o
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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. o
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.
