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3M's Innovative Organizational Design

3M has been one of the most consistently innovative companies since it was founded in 1902. It transformed from a $1 million company to a $1 billion company between 1929-1949 through a culture of technology-driven innovation and matching technology to customer needs. Some factors that have made 3M traditionally innovative include power of individual entrepreneurship, climate that stimulates ordinary people to produce extraordinary performances, increasing R&D expenses, knowledge sharing among scientists, and allowing dual ladder careers. While 3M's culture has become more disciplined and team-focused, it remains one of the most innovative companies through programs like Genesis and its "Lead User System" to support innovation.

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Aditya Chadha
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116 views8 pages

3M's Innovative Organizational Design

3M has been one of the most consistently innovative companies since it was founded in 1902. It transformed from a $1 million company to a $1 billion company between 1929-1949 through a culture of technology-driven innovation and matching technology to customer needs. Some factors that have made 3M traditionally innovative include power of individual entrepreneurship, climate that stimulates ordinary people to produce extraordinary performances, increasing R&D expenses, knowledge sharing among scientists, and allowing dual ladder careers. While 3M's culture has become more disciplined and team-focused, it remains one of the most innovative companies through programs like Genesis and its "Lead User System" to support innovation.

Uploaded by

Aditya Chadha
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

3M: Profile Of an Innovating Company

Presented by: Group 10


Amanpreet Singh Anand Kansal Anisha Bansal Mayur Srivastav Pratik Nagori Rohan Khandelwal 12P123 12P125 12P128 12P151 12P155 12P164

Organisational Design and Change

Introduction

Founded in1902 by 5 businessmen with initial investment of $5,000 Universally recognized as most consistently innovative company Became Profitable in 1916 Technology Driven culture Matching technology to customer needs was practiced The company was transformed from a $1 mn company to a $1 bn company from 1929 to 1949 Portfolio of over 100 core technologies, 60,000 products selling in 200 countries Culture of free knowledge sharing

What has made 3M traditionally an innovative organization

Power of Individual Entrepreneurship Matching Technology to customer needs Climate that stimulates ordinary people to produce extraordinary performances Increasing R&D expenses, current expenses of 7-8% with industry R&D expenses of 3% Product differentiation is the key to their commerce Approach of well intentioned failure Grow and divide concept

Contd.

Knowledge sharing among scientists Responsiveness to external demand and encouragement to internal capability Formal and informal rewards and recognition Managements strong belief in supporting the projects Bottom up approach followed Allowance of dual ladder career Make little sell little

Is 3M still an innovative organization?


In favor

3rd most innovative company after Apple and Google, three years in a row Rapidly increasing its R&D budget. It is currently around 7% of sales Launched programs like Genesis to encourage individual entrepreneurship Sales from new products exceeding targets Latest model of Lead User System to support innovation

Contd.
Against

Less freedom in labs


Culture of Individual Entrepreneurship replaced by that of Action Teams More Disciplined approach brought into the culture

So it is or it isnt?

Yes, we can say that 3M is still an innovative company and now even more cost-effective which can be shown by the high increase in sales with same number of employees

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