1. Group 2:
3M
Nguyễn Thị Hiên
Đặng Thị Liên
Lại Thanh Trang
Lê Phương Thảo
Nguyễn Thị Thảo Ly
Nguyễn Như Thế Anh
Đỗ Như Chinh

4. Outline
• Introduction
• Innovation in 3M
• Conclusion

6. 3M
• Formerly known as the Minnesota Mining and
Manufacturing Company
• With over 76,000 employees they produce over
55,000 products, including: adhesives, abrasives,
laminates, passive fire protection, dental
products, electrical materials, electronic circuits
and optical films (chất kết dính, chất mài mòn,
cán mỏng, phòng cháy chữa cháy thụ động,
sản phẩm nha khoa, vật liệu điện, mạch điện
tử và phim quang học)

7. 3M: A brief history
•
Established in 1902, producing abrasives and adhesives products.
– Benefited from product innovation in the early days
– The culture of “individual entrepreneurship”
•
The McKnight era, 1929-1966
– Organizational design for continuous changes
•
The Lou Lehr era, 1980-1985
– Reorganization and reorientation
•
The “Jake” Jacobson era: 1986-1991
– The orientation to competition in existing markets
•
Main characteristics:
– Changes and evolution in adaptation to environments
– Changes in organizational attributes for innovation

8. 3M: The Permanently Changing Organizations
• One of “the ten most admired corporations” — Fortune
annual poll of American CEOs.
• The 3M model:
– Continuous technological innovation
– Institutionalized “individual entrepreneurship”
– Market responsiveness
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How is this possible—what are the challenges?
Institutionalized “individual entrepreneurship”?
Growth versus decentralization?
Balance between structure, culture, versus change?

9. Innovative Culture in 3M
• 3M’s culture fosters an environment of
innovation
Innovation of culture in 3M:
- Give people time to follow their dream.
- Make it a part of the expert’s job to share their
knowledge.
- Result must be measured.
- Be honest and know when to say no.
- Promote a career not a job.
- Internationalize your management team.
- Keep spending on research and development.

10. • Vietnamese Honda motor company
Respect the ideas of the employers as well as
employees
Create a friendly and active working environment

11. INNOVATION
MANAGEMENT
Building a innovative organization

12. •
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•
•
•
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Recognition & reward
Reinforcement of core values
Sustaining “circulation”
Allocating slack” & permission to play
Patience
Acceptance of mistakes & encouragement of risk-taking
Encourage “bootlegging”
Policy of hiring innovators

13. Recognition & reward
• Schemes to acknowledge innovative activities
• Recognizes effort > achievements

14. Reinforcement
of core values
“Innovation is respected”

15. Sustaining
“circulation”
• Different people + Different perspectives
= creative combinations

16. Allocating “slack” &
permission to play
• Curiosity-driven activities

17. Patience
• Acceptance of the need for ‘stumbling in motion’
as innovative ideas evolve and take shape.

18. Acceptance of mistakes &
encouragement of risk-taking
• ‘Mistakes will be made, but if a person is essentially right,
the mistakes he or she makes are not as serious, in the long
run, as the mistakes management will make if it’s dictatorial
and undertakes to tell those under its authority exactly how
they must do their job…”

19. Encourage “bootlegging”
Giving employees a sense of empowerment
and turning a blind eye to creative ways
=> get around the system acts

20. Policy of hiring innovators
looking for people with
innovator tendencies and characteristics
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•
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An opportunistic mindset
Formal education or training
Proactivity and a high degree of persistence
A healthy dose of prudence
Social capital

21. May Saigon 2 Company

22. VNU-UEB

23. Eurowindow

24. Innovation in organization structure
3M used to be organic structure, which links
people in different functions into a coherent.
3M divided most employees network into at
least five levels: department, division, group,
sector and company
What is organic structure? Its advantage &
disadvantage?

25. What is organic structure
the organization has characteristic:
Flatness: communication & interaction are horizontal
Low specialization: knowledge resides wherever it is most
useful
Decentralization: great deal of formal and informal
participation in decision making

26. • They have a flexible approach to the continually changing
financial and customer environment.
• They can be very responsive and quick to make changes
• Staff structures are also very fluid, with wide ranging job
descriptions
• They cope better with unstable environments
• The employees are very much involved in decision
making and problem solving; this enhances motivation,
commitment and gives a variety of perspectives
• The ease of ability or change enables
organic organizations to be more creative and imaginative

27. Disadvantage
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No Boundaries
Unproductive Directives:
Ineffective Leadership
Communication Barriers

28. Case in Viet nam

29. Process
*Develop:
- Structure
- Policies
Guide innovative activity: picking up signals through
implementation
*Parallel routes through their system
Innovations can come from many ways:
- Market interactions
- Deep technology research
- collaboration
- unexpected discovery
*Association skill:
Technical knowledge ∞ awareness of real / latent market
needs => creative combination

30. • System for innovation & extensions:
*1st : formal stage-gate (a trial by fire), based on
established products
Well-known but need encouraging innovation
champions to take non-linear ideas
*2nd : incubator stage:
o ideas are encouraged & development funds are
available
o reject loose targets
o strict business plan appraisal for projects
=> funnels and clear gateway

31. Honda Viet Nam
• Manufacturing Process: 2nd system
- Event / Competition:
o employees speak out their ideas at any time
o prize for the valuable contribution.
- The good idea will apply to the process
- Implementing R&D from fortunate discovery
by their staff

32. Innovation Strategy and
Leadership
- CEOs have been strongly associated with enacting
and supporting the innovation culture which
characterizes the firm
- The overall innovation strategy is focused on two
core themes – deep technological competence and
strong product development capabilities

33. Innovation Strategy
• Setting stretch targets, a focus for the whole
Organization.
• Allocating space and time for staff to explore
ideas.
• Encouragement employees working on
innovation projects in their own time and often
accessing resources in a non-formal way
• Encourages ‘intrapreneurship’ (internal
entrepreneurial behaviour) rather than people
feeling they have to leave the firm to take their
good ideas forward.

34. Innovation Strategy and Leadership
in Vietnam
• CEOs should take time to understand the
potential of their employees and the prospect
of their organization.
• Encourage and incentive with new ideas which
have good outcome or improvement.