Introduction
Innovation and creativity have become buzzwords especially in the last decades when competition and rivalry between firms became more fierce. Changes in the business environment and customers’ demands have made innovation a staple strategy for organizations that hope to achieve a competitive advantage. Innovation is the process of introducing new (or unique) products, systems, processes, or services from an organization. Introduction of such may be far-reaching or minimal. This paper discusses innovation in an organizational setting. The organization of choice, which will become the case study for this paper, is known as one of the most innovative organizations around and the home of creative individuals that were behind the world renown products such as the “Scotch Tape” and “Post-It” brands. This organization is Minnesota Mining and Manufacturing Corporation, better known as 3M.
Managing Innovation in Organizations
Innovative organizations invest heavily on research and development and on their human resources. Because of the changes in the business environment and the growing interest in the contributions of the organization’s human resources, a new breed of organizations was born. These organizations are called knowledge organizations, which use innovation, creativity (human intellect) as a source of competitive advantages.
A research conducted by Teresa Amabile (1998) points to three different components of creativity – Expertise, Creative Thinking, and Motivation. In order to achieve creativity and innovation in organizations top management must align the practices and policies of human resources management to the company’s strategies and objectives. That is where strategic human resources management comes into play.
According to Amabile (1998) in order to achieve innovation and creativity in the organization, the management must:
1. Challenge
2. Promote Freedom
3. Use Resources Effectively
4. Strategically Design Groups/Teams
5. Empower (become Mentors and Coaches of) Employees
6. Facilitate Organizational Support
Another concept the I want to discuss which I think serves as a cornerstone of innovation and creativity in organizations is knowledge management.
Knowledge Management
3M is a legendary company when it comes to innovation. The company maintains an innovative environment where everyone can participate in the decision making and are encouraged to search for innovative ideas and ways of doing the job. Perhaps it is safe to say that knowledge management is the cornerstone of 3M’s innovative culture. Knowledge management according to Bounfour (2003) can be defined as a set of procedures, infrastructures, technical and managerial tools, designed towards creating, circulating (sharing) and leveraging information and knowledge within and around organizations (p. 156).
3M is considered a knowledge organization which needs to deploy new and creative knowledge to function and survive in its field. Human creativity and innovation are very important inputs to 3M’s processes. 3M require skills derived from freethinking and unbounded actions of its employees. Knowledge organizations according to Amar (2002) grow on skills that bring about uniqueness, newness, and creativity.
Creativity and Innovation
Knowledge organizations such as 3M have a high need for human creativity and innovation. Innovation is the central arena in which knowledge organization competition plays out. 3M and other knowledge organizations need innovation from every member at every level of the organization. Human resources also play an important role in 3M. Human intellect is the major strength of knowledge organizations. Since innovation is the most important input, and human intellect the most important capital, management of knowledge organizations focuses on how to put the two together in their operating system (Amar 2002).
Knowledge Management: Creativity and Innovation at 3M
3M believes that to become innovative and to encourage and motivate its people to be creative, it is imperative to effectively use knowledge management. 3M sees knowledge management more as a cultural and organizational issue than a technological one, The company has many systems in place and is continually adding to them. 3M puts its major emphasis on ‘tacit to tacit’ area (the transferring of knowledge to other individual’s experience and knowledge to other individuals). People have to be motivated to access and share information and to convert that information into knowledge. If the business processes are in place and the context is appropriate then knowledge management systems can flourish and people will input their knowledge into systems for access by others. Effective knowledge management according to Tung (2001) has parallels with effective innovation. For innovation to take place, a company needs caring people who are willing to share for the greater good of the company and creative people who have the ability to turn ideas into practical products and services.
Company Overview
3M is a diversified global manufacturer, technology innovator and marketer of wide variety products. 3M manages its operations in six operating business segments: Industrial and Transportation; Health Care; Display and Graphics; Consumer and Office; safety and Protection Services; and Electro and Communications. 3M’s strategy continues to emphasize a commitment to grow at a faster pace, using a four-pronged approach, which includes reinvesting in its core businesses, developing adjacent emerging business opportunities, expanding on the company’s already world-class capabilities internationally, and acquiring companies in complementary faster-growing industries (3M Annual Report 2007).
3M has identified 21 established and new strategic brands, Some of its best known brands were Scotch-tapes, Scotch-Brite cleaning products, and Post-It repositioned products. Newer brands include Vikuiti display enhancement, Volition fiber optic network solutions, Command adhesive, and Nexcare first-aid products. 3M had institutionalized a corporate culture that promoted intrapreneurship. The company was recognized for its vertical organizational structure, with businesses established by technologies and markets.
Employee Empowerment (Capability Development)
3M adopts a ‘reactive bottom-up, emergent perspective, where in the role of top management is described as retroactive legitimizer (Burgelman 1983) or judge and arbiter (Angle and Van de Ven 1989) and that of the middle management as supporter and intermediary of lower-level initiatives. Exploration of new capabilities takes place at the lowest level by double-loop learning or generative learning (Senge 1990). At the upper managerial levels, the exploitation of already developed capabilities takes place by single-loop or adaptive learning, which helps the firm to exploit previous experiences, to detect casualties, and extrapolate to the future. It permits top corporate management to persist in its set policies and achieve its formulated objectives. 3M has a reactive bottom-up process of capability development. In 3M, the role of top management is limited to sponsor, coach, or mentor and flexible capabilities, like innovation and speed of innovation, clearly derive from initiatives at the bottom (Volberda 1999).
Knowledge Management in Research and Development
3M is considered as an exceptionally creative and innovative company. 3M is able to achieve this by investing heavily on its research and development activities. The company’s product portfolio is created by using about 100 basic technologies. By mastering these technologies, 3M is able to produce highly successful products. Selective development of these technologies, combined with product innovations based on technologies already mastered, in ultimately responsible for the internal cohesion of the companies activities. The strategic organization of 3M’s research and development also supports coherent company development. Divisional laboratories in the different business areas work in the actual products, while two higher levels of research are devoted to pure research and to converting the findings into procedures and basic technologies. The rule for co-operation between the levels is that products are the property of the divisions, but new or improved technologies belong to the whole company. Knowledge goals can be thus be defined in a way which transcends the different business areas, and gives direction to research and development. The strategic knowledge goals ensure that competencies develop coherently and consistently (Probst et al 2000).
Management Support
Top managers who joined the company at a young age, and who have absorbed the company’s traditions and stories, re-tell those stories to reinforce the values and atmospheres that encourage innovation (Tung 2001). 3M has encountered many setbacks and failures but amidst all these, the management remained open to unconventional ideas and willing to support people with personal vision. The commitment of 3M’s management to innovation and creativity resulted in thousands upon thousands of products that 3M was able to launch.
To encourage innovation, 3M has institutionalized incentive in corporate systems throughout the company. The 15 Percent Rule, for example, gives most employees the opportunity to spend up to 15 percent of their time working on their own projects. People who identify a need can also take advantage of the 3M network for communicating about new technologies that might help them develop a product to meet the need. The company encourages curious employees to learn about new technologies developed in all parts of the company (Baskin 1998).
Flat Organization
Top management’s tolerance for mistakes is in line with its policy for establishing a flat organizational structure and allowing important decisions to be made at all levels. 3M’s aim is not just to try and achieve a sustainable competitive advantage. Its aim is continuously to develop, to adapt and to search for new sources of temporary advantage. That is why 3M has done laboratory work in space and has invested considerable time in becoming the first western company with a wholly owned subsidiary in the People’s Republic of China (Tung 2001).
Organizational structure is important in promoting innovation and creativity. 3M endeavored to come up with a flat organization where hierarchies are diminished. Moreover, the company wanted an organizational structure that will support innovation at every business level and innovation at individual level. The company removed all restricting policies and procedures and allowed their employees to explore opportunities, to develop their ideas and to share their knowledge with everyone on the organization. The result, is a very efficient and effective organizational structure that makes innovative and creative thinking almost second nature to every employee.
Strategic Human Resources Management (SHRM)
Linking HRM with the strategic goals and objectives of the company is the cornerstone of SHRM (Buyens and de Vos 1991). SHRM has come into view as a primary approach in achieving improvements in the competitive advantage of the organization (Burke and Cooper 2004). The Human Resource Management department is responsible that the organization is properly staffed with people who fit the company’s culture and who are willing to contribute their knowledge, skills and abilities for the benefit of the organization.
3M is a highly innovative and creative company. In order to continue its tradition of introducing innovative products and developing people with the needed knowledge, skills and abilities, the company focuses on HRM. The company wants to attract people who are creative and innovative, those people that will adopt the values, culture and atmosphere of the company. 3M seeks people who are flexible and those who take charge of their own development. Moreover, the company wants its people to share knowledge and expertise and to use these to create new products or to design new approaches in doing business.
Recruitment and Selection
Recruitment is defined by Sims (2002) as the process in which organizations discover, develop, seek, and attract individuals to fill actual or anticipated job vacancies. Recruitment is concerned with finding applicants, communicating opportunities and information and generating interest. It includes interview screening, and selection of most qualified candidates, filling positions through transfer or promotion, and coordinating temporary employment. The aim of recruitment is to identify a suitable pool of applicants quickly, cost efficiently, and legally. Selection on the other hand is the process of obtaining and using information about job applicants in order to determine who should be hired for short-or long-term positions (Sims 2002).
3M looks for people who will fit the organizational culture. 3M attracts individuals who need minimal supervisions. These individuals are interested in freedom to explore things. They are action oriented and prepared to take some risk with their future. 3M recruiters look for those people who are creative, have a strong work ethic, are self-motivated and resourceful, and are problem-solvers with broad interests.
Motivation
Employee motivation is important in promoting creativity and innovation among employees. 3M has different policies and strategies to ensure that employees are motivated. Among these strategies and policies are the company’s recognition programs which encourage learning and knowledge transfer. 3M knows that the inventors of new industries and products are the critical people in the company. Through the dual ladder process they can be promoted to vice-president level without having to have any management responsibility. 3M also makes certain that inventors are known and recognized across the company through articles and presentations.
Employee Empowerment
An important support for innovation is signaled by 3M’s 15% rule which states that 3M people can spend 15 percent of their time working on innovative ideas of their own choosing.
Further Developing Innovation and Creativity
The business environment where 3M operates in is now more competitive than before. Because of the developments in technology, innovations are easily copied. In order to remain competitive the company needs more actively develop its human resources. Now more than ever, the company needs to focus on developing its employees and making sure that they can compete in a fast-changing world. In order for the employees to acquire the knowledge, skills and abilities that they need to perform their present task, to be able to fulfill their future responsibilities, and to remain competitive amidst the changes in the business environment, the company needs to promote and support continuous learning.
The company heroes and the people who have been in the company for a long time also play important roles. These people need to make sure that the values, culture, and missions of 3M will carry on to the new generation of employees. In this regard, Coaching and Mentoring are required.
Career Development is also a major concern. The company needs to create career development opportunities for every employee, communicate these to them and make sure that employees are empowered to make their own decisions, specially in their careers.
In order to encourage innovation and creativity and to uplift the sense of belonging of every employee, 3M must turn back to its history and build a corporate identity that I based on innovation. A corporate identity that is founded on innovation is important as employees will adopt that image and make it their own. Employees must be encouraged to strengthen that corporate identity.
Everyone at 3M must be educated how innovation has been the driving, unifying force behind a corporation with tens of thousands of products. Innovation according Baskin (1998) to lies at he beginning of 3M’s story – its founding in 1902. Innovation goes on to describe the development of Scotch brand masking and cellophane tapes, of magnetic tape and medical gauze masks, and of the thousands of other products 3M sells. 3M has a rich history and tradition of innovation. The management must make every employee aware of this and must encourage them to achieve the same and the generations before them.
References
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Angle, H. L., and Van de Ven, A. H. (1989), ‘Suggestions for Managing the Innovation Journey’, In A. H. Van de Ven, H. L. Angle, and M. S. Poole (eds.), Research on the Management of Innovation, New York: Harper & Row, 663-97.
Baskin, K. (1998). Corporate DNA: Learning from Life. Butterworth-Heinemann.
Burke, R. and Cooper, C. (Eds.). (2004). Reinventing Human Resources Management: Challenges and New Directions. New York: Routledge.
Burgelman, R. A. (1983), ‘A Process Model of Internal Corporate Venturing in the Diversified Major Firm’, Administrative Science Quarterly, 28, 223-44.
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Probst, G., Raub, S. and Romhardt, K. (2000). Managing Knowledge: Building Blocks for Success. New York: Wiley.
Senge, P. (1990), ‘The Leader’s New Work: Building Learning Organizations’, Sloan Management Review, 7-23.
Sims, R. (2002). Organizational Success through Effective Human Resources Management. Westport CT: Quorum Books.
Tung, R. L. (2001). Learning from World Class Companies. Cengage Learning EMEA.
Volberda, H. W. (1999). Building the Flexible Firm: How to Remain Competitive.
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