3M Research Paper.docx

1、3M Research PaperSecretary of DefenseCorporate Fellows ProgramFINAL REPORT3M COMPANYCol David W. Ziegler, USAFMay 2002the 3m coMPANY:SHARPENING THE BUSINESS EDGE AND IMPLICATIONS FOR THE DODbyDavid W. Ziegler, Colonel, USAFA Research Report Submitted to the DirectorIn Partial Fulfillment of Fellowsh

2、ip RequirementsAdvisor: Mr. Eric BriggsWashington D.CMay 2002DisclaimerThe views expressed in this academic research paper are those of the author and do not reflect the official policy or position of the US government or the Department of Defense. In accordance with Air Force Instruction 51-303, it

3、 is not copyrighted, but is the property of the United States government.Contents PageContents iiiIllustrations vPreface viExecutive Summary vii3MThe Company 13Ms Business 1Market Centers and Products 1Operations and Revenue 23Ms Organization 23Ms Decentralized Roots 23MThe Strategy 3Recovering Grow

4、th 33Ms Five Core Initiatives 4Sourcing 4Indirect Costs 6e-Productivity 73M Acceleration 10Six Sigma 11Six Sigma 12Six Sigmas Road to 3M 13Motorola 13Allied Signal 13GE. 13Six Sigma at 3M 14Corporate Goals 14The D-M-A-I-C Process 14Engaging the Corporation 20Expanding the Definition 22Performance Ma

5、nagement at 3M 23A Year in the Life 24Starting the Process 24The Draft C&DS 25Stratification of Employees 26Management Team Review (MTR) 28Feedback of Results to the Employee 29Health of Organization (HOO) 30Performance Management and Retention 31A Climate of Innovation 32A Vision for Innovation 32I

6、nnovation and the Bottom Line 32The Fifteen Percent Rule 34Equipping Through Education 34The Total Climate for Innovation 34Patriots Without Uniforms 35Recommendations for the Department of Defense 36Introduction 36Specific Recommendations 36Recognition During 2001 and Early 2002 442001 Rankings and

7、 Recognition 44Early 2002 Rankings and Recognition 45Innovation Chronicles 47Dick Drew and the Invention of Masking Tape 47Patsy Sherman and the Discovery of Scotchgard Fabric Protector 48Art Fry and the Invention of Post-it Notes 49Bibliography 52Illustrations PageFigure 1 Process Map 16Figure 2 Ca

8、use and Effects Matrix 17Figure 3 Failure Mode and Effects Analysis 18PrefaceAs a Secretary of Defense Corporate Fellow, I was assigned to the 3M Companys headquarters in St. Paul from August 2001 to May 2002. The Secretary of Defense Corporate Fellows Program (SDCFP) places senior military officers

9、 with industry-leading companies for their senior service school experience. During the year-long program, these officers work along side senior executives to observe how Corporate America innovates with organizations, information technologies and change management techniques.As program objectives g

10、o, 3M was ideally suited to host a SDCFP Fellow. 3Ms new chief executive officer (CEO) recently kicked off five broad initiatives to improve business performance and fundamentally transform the companys work culture. Whats more, by April 2002, the company appeared to be well on its way to making the

11、 transformation work. My paper lays out 3Ms strategy for transformation, considers the business practices propelling the company forward, summarizes early results, and draws potentially relevant conclusions for the Department of Defense.I gratefully acknowledge 3Ms support during my fellowship. Thei

12、r enthusiasm for the program made for a rich experienceboth personally and professionally. I would especially like to thank those most responsible for what I saw and I did over my tenure as a Fellow. Harold Laskin, Wayne Pletcher and Cathy Muggee adeptly opened doors to projects that quickly made me

13、 part of the 3M team. Steve Trudeau was a skillful and patient teacher, as I grappled to understand Corporate Americas lexicon and practices. John Schoenherr and Linda Godbout helped me unlock the secrets of Six Sigma and generously arranged my foray into the world of Champions and Green Belts. In a

14、ddition to my commercial counterparts, there are others to thank in the government. Eric Briggs astutely shepherded the program at seven corporations and deftly balanced guidance with the flexibility to accommodate the unique environment of each company. Senior leaders across the Department of Defen

15、se kept the program relevant with their program participation and savvy comments. Finally, I acknowledge the faithful contributions of my family. As always, I could not have done it without my wife Jan and the other members of our “corporate board”Jordan, Jessi and Nate. God continues to bless us be

16、yond measure.Executive SummaryThe 3M Company is a diverse manufacturer with total revenues of almost $17B from operations and sales across nearly 300 countries. The company has been profitable since 1916, when it paid dividends that continue uninterrupted to this day. Despite past successes, 3M is t

17、aking steps to significantly improve its growth. Under its new CEO, Mr. Jim McNerney, the company is pulling together its traditionally decentralized organizations around shared corporate initiatives. The initiatives aim to make 3M more competitive by tackling company processes in procurement, resea

18、rch and development, and change management. These processes include: (1) improved procurement using global teams, better diagnostic spend data, and less-expensive overseas suppliers, (2) reduced spending on commodities and services that are not directly part of a 3M product or its capital base, (3)

19、e-Productivity through new business processes powered by electronic tools such as on-line order entry, supplier-managed inventory, e-Auctions, and e-Travel, (4) acceleration of the most promising technologies to market, and (5) Six Sigma. Six Sigma is 3Ms number one initiative. It is a very effectiv

20、e discipline for managing change across the corporation at every level. In addition to its five initiatives, 3M is fine-tuning the way it manages the performance of employees and nurtures its widely recognized climate of innovation. Recent changes more quickly identify the companys top and lower per

21、formers with an eye on career development and improved performance in both cases. Over the course of a year, 3M systematically evaluates every employee, as well as the broader “people health” of its organizations. 3M cultivates innovation from top to bottom. From the top, innovation is a watchword i

22、n 3Ms corporate vision and customer promises. When it comes to profits, corporate leaders expect their business units to generate 30 percent of annual sales from products introduced in the last 4 years. The same leaders support that expectation through a well-established system of grants and seed mo

23、ney for promising ideas. 3M complements this top-down support for innovation with a bottoms-up push. Researchers are encouraged to spend 15 percent of their time on product-related projects of their own choosing. To enhance the quality of those efforts, the company liberally funds education for all

24、employees. This paper draws on 3Ms business approach to make nine recommendations for the Department of Defense:1. Align the DOD with clearly articulated initiatives and goals. Just as 3M aligned itself with five centralized initiatives, the DOD would greatly benefit from internally aligning its org

25、anizations with well-articulated initiatives.2. Leverage the DODs size to achieve procurement efficiencies. 3M buys over $7B in raw materials, services, equipment and supplies. Under their sourcing initiative the company is collectively working and on track to save $500M by the end of 2002. Federal

26、regulations, decentralized spending authorities, and different Service systems conspire against centralized spending strategies in the DOD. Where legal and feasible, however, the DOD should consider the same actions that corporate leaders are now beginning to launch including: (1) global spend manag

27、ement teams, (2) centralization of purchasing authorities, (3) automation of spend data collection, and (4) expanded business with less expensive overseas suppliers. 3. Attack “indirect costs” across the DOD. 3M reduced indirect spending by $500M in 2001 compared to 2000. They approached the initiat

28、ive through cross-functional Indirect Cost Reduction teams. The same approach could aid the DOD in its own efforts to reduce indirect costs. 4. Invest smartly in e-Productivity. 3Ms e-Productivity initiative is about using electronic technology, such as electronic data interchange and the Internet,

29、to improve both effectiveness and efficiency. Implementing 3Ms approach would lead the DOD to: (1) automate its purchases from the point of initial order to receipt of goods and services, (2) more closely collaborate with suppliers to manage inventories, (3) judiciously use e-Auctions for appropriat

30、e spend categories, and (4) conduct all aspects of travel on-line.5. Release the power of a common organizational approach to change management. Six Sigma is 3Ms number one initiative. It is a change management discipline that engages the entire company to pursue common corporate goals through a com

31、mon problem solving process. Theres no question that change management disciplines, such as Six Sigma, can promote positive change in the DOD. The fundamental question, for the DOD, is whether it could create the conditions required for success.6. Institutionalize programs to improve the lower tier

32、of performers. As with the DOD, 3Ms performance management system is designed to find and develop its top talent. Unlike the DOD, 3M recently formalized quotas for its lower-tier performersits supervisors must rank ten percent of their employees in the “lower” performance category. A similar policy in the DOD might lead to more productive employees who are more loyal to the institution that came along side to help make them more effective.7. En