Culture Renovation Spotlight: 3M

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No doubt you have heard of 3M, a company that has been in business for over a century and has been in the Fortune 500 most of that time. While most know the name well, few understand the company’s roots, or even what it really does.

“3M” is based off the company’s original name of Minnesota Mining and Manufacturing.  The company was launched in 1902, and as the name implies, it was originally involved in mining (which, as it turns out, was a short-lived focus). Today, 3M operates in a variety of industries and consumer markets, and produces over 60,000 products under dozens of different brands (the N95 mask is one of those products). Based just outside of St. Paul, Minnesota, the company generates more than $30 billion in sales and has almost 100,000 employees.

The concept of culture renovation could have been written entirely about 3M. The company’s ability to continue to innovate and reinvent itself is legendary, and while much of it is on purpose, some of it has been by chance. As one publication put it, “those three M’s might better stand for Mistake = Magic = Money.”   Few companies have ever created more useful products seemingly by accident than 3M, an amazing historic record that many attribute to the freedom the company gives employees to make mistakes and its appreciation for innovation.

That freedom is an historical trait of the company. The most famous 3M CEO, William McKnight, developed what became known as the McKnight Principles in 1948—words of wisdom which today are sacred in 3M’s corporate culture. The most famous passage celebrates pushing decision making lower in the organization (a key tenet of organizational agility) and celebrates initiative and the importance of making mistakes. McKnight once implored his managers: “Encourage experimental doodling. If you put fences around people, you get sheep.”

It was under McKnight that 3M’s famous “15 percent time” began. For many decades, 3M has urged its employees to devote 15 percent of their time on the job to doing something beyond their usual responsibilities—such as experimenting with new technology or collaborating with others outside their work areas on new ideas and projects. Some of 3M’s most famous products were the direct result of this policy, including Post-it™ Notes, Scotch Tape™, a wireless electronic stethoscope, and many more. Other companies have popularized this concept, most notably Google’s 20 percent time, which is credited with creating Gmail and Google Earth among other products.

Despite most attributing this concept to Google today, it was McKnight’s philosophy of “listen to anybody with an idea” which was the original basis for what became 3M’s 15 percent rule. As we contemplate a new future of work post pandemic, (a future without the benefit of precedent or deep planning), McKnight’s philosophy is an important one for companies to remember.

This article was originally published on CultureRenovation.com. Visit the website for additional resources, solutions, and information about the bestselling book.

Kevin Oakes

Kevin is CEO and co-founder of the Institute for Corporate Productivity (i4cp), the world’s leading human capital research firm focusing on people practices that drive high performance. i4cp conducts more research in the field of HR than any other organization on the planet, highlighting next practices that organizations and HR executives should consider adopting.

Kevin is also the author of Culture Renovation®, an Amazon bestseller which debuted as the #1 new release in a dozen Amazon book categories. Drawing on data from one of the largest studies ever conducted on corporate culture, Culture Renovation™ details how high-performance organizations such as Microsoft, T-Mobile, 3M, AbbVie, Mastercard and many more have successfully changed organizational culture.

Kevin is currently on the board of Performitiv, and on the advisory boards of Guild Education and Sanctuary. Kevin was previously on the board of directors of KnowledgeAdvisors, a provider of human capital analytics software, which was purchased by Corporate Executive Board in March of 2014. Kevin was also the Chairman of Jambok, a social learning start-up company which was founded at Sun Microsystems and was purchased by SuccessFactors in March 2011. Additionally, Kevin served on the boards of Workforce Insight and Koru prior to their sales.

Kevin is on the board of Best Buddies Washington and helped establish the first office for Best Buddies in the state in 2019. Best Buddies is a nonprofit organization dedicated to establishing a global volunteer movement that creates opportunities for one-to-one friendships, integrated employment, leadership development, and inclusive living for people with intellectual and developmental disabilities (IDD).

Kevin was previously the Founder and the President of SumTotal Systems (NASDAQ: SUMT) which he helped create in 2003 by merging Click2learn (NASDAQ: CLKS) with Docent (NASDAQ: DCNT). The merger won Frost & Sullivan's Competitive Strategy Award in 2004.

Prior to the formation of SumTotal, Kevin was the Chairman & CEO of Click2learn, which was founded by Paul Allen, co-founder of Microsoft. Kevin helped take Click2learn public and engineered over a dozen acquisitions post-IPO. Prior to joining Click2learn, Kevin was president and founder of Oakes Interactive in Needham, MA. Oakes Interactive was purchased by Click2learn (then called Asymetrix) in 1997, prior to going public a year later.