T.J. Creamer
MBA 580: Benchmark Study: 3M
Southern New Hampshire University
3M’s Approach Toward Innovation
3M manages innovation by creating a controllable yet unpredictable atmosphere that
allows innovation to thrive. Too many constraints can hinder innovation, which is why 3M
promotes this type of environment within their company.
3M’s innovation strategy focuses on technological competence and product development.
These themes, in coordination with each other, give 3M a consistent source of products that are
needed and wanted by consumers. Using a transformational leadership style, 3M continues to be
a leader in innovation. Previous CEOs have played pivotal roles in ensuring that this innovation
and leadership style remains prevalent for everyone in the organization.
3M enables the innovation process by creating a set of structures and policies that
specifically promote and provide guidance to the entire innovative process. 3M uses a stage-gate
model to promote innovation within previous products, but also encourages discontinuous
innovation through various stages. The formality of their stage-gate process mixed with their
more radical approach to innovation combines for a unique and successful merger of ideas that
3M has used to their benefit for years.
Significant Features or Processes That Promote Innovation
3M recognizes and rewards employees that stand out in various ways. For example, the
Innovator’s award focuses on effort over achievement. Effort and innovation continue to be
highly respected around the organization. There is also a ‘hall of fame’ whose members are
recognized for their incredible innovative achievements. 3M also moves around employees to
give unique perspectives on projects and allows for diverse teams to excel in their fields.
Permission to play is a concept that has companies encourage relaxation and non-work
activities during work hours (Storms, 2021). The goal is for employees to use this time to
essentially recharge and become more productive and happier in their roles. 3M uses this concept
with the hopes that this time will help employees be more creative and have a breakthrough with
innovation.
Throughout the innovative process, there must be a level of patience that their process
will work, and these radical ideas will come to fruition. For example, Post-it’s took years of trial
and error before a viable product was available to the public. Acceptance of mistakes is another
theme that is widely accepted in 3M. With this type of innovation, mistakes will happen and it is
up to supervision and the culture set by the company with how they deal with these mistakes. A
company that criticizes every mistake is doomed to destruction because innovation will die.
Employees must be given the freedom to take risks, which is why 3M has encouraged their
employees to push the boundaries.
Organization Comparison
The organizational structure of 3M and the automobile company are vastly different.
Where 3M has a somewhat structured but also very relaxed approach, the automobile company
has rigid standards that work collectively as a cohesive unit. 3M’s approach, not to be confused
with a laisse-faire style, drives innovation with how they promote creativity in all aspects of the
company. The automobile company’s structure has hindered its IoT capabilities for discontinuous
innovation.
The differences between informal and formal innovation management are great. 3M’s
approach to informal innovation management promotes creativity and an atmosphere that is not
afraid to make mistakes. The automobile company has a more formal approach with every
decision made from the top down. This allows for a greater sense of control but does not help
with innovation.
3M’s organizational structure affects communication by allowing for cross departmental
cooperation, the sharing of information, and free flowing ideas. This helps 3M as they continue
to be a leader in innovation. The automobile company’s organizational structure is more
restricted and is dependent on ideas from upper management, rather than an open line of
communication. Again, this is a hindrance to innovation.
Identifying Process Gaps
The automobile company needs to take several steps to support innovation. First, the
structure needs to be more flexible, allowing for ideas to float more freely. Secondly, there must
be open lines of communication between departments and all levels of the company. Lastly,
employees need to feel empowered to not only share their ideas, but to act on those ideas without
fear of reprisal.
To reward and motivate innovative behavior, the automobile company could offer
financial incentives for ideas that lead to tangible products. Also, they could take a page from 3M
and create the Innovator’s award that will recognize hard work with extra vacation days or other
motivational metrics.
The organization could examine its timeline for the success of long-term projects by
encouraging management to foster diverse teams and play active roles in encouragement of
employees. This will lead to long-term success.
References
Storms, G. (2021, May 18). Permission To Play: How To Incorporate More Rest And Relaxation
Into Your Work Day. Forbes.
https://www.forbes.com/sites/forbescoachescouncil/2021/05/18/permission-to-play-how-
to-incorporate-more-rest-and-relaxation-into-your-work-day/
Tidd, J., Bessant, J., & Pavitt, K. (2013). 3M: Rethinking Innovation .
https://www.johnbessant.org/_files/ugd/6ba33a_0d844b920e654d70b9350893dc4b7aa5.p
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