8 Apr 2002
“Conceive It, Believe It, Achieve It”
ST. PAUL, Minn., April 8, 2002 — This year 3M reached its 100th birthday — a milestone shared by only three percent of American companies. After a challenging first decade, 3M grew rapidly over the ensuing years to become a solid, diversified technology company renowned for innovation.
Since its inception, 3M has exhibited remarkable fortitude and resolve, continually focusing on the essential elements of creativity, initiative, close customer relationships and superior business practices. Its inventions have solved everyday problems from sealing holiday packages and protecting fabrics, to breakthrough contributions in dozens of industries and markets — health care, security, electronics, automotive and transportation to name just a few. Today, 3M continues to remain current and vital as it embarks on its second century of innovation. And the company attributes its success to a solid cultural foundation that began in 1902 and lives on today.
“Every company seeks the keys to innovation, but few find them,” said Jerry I. Porras, co-author of Built to Last. “Over the decades, 3M learned how to be innovative and today the company uses that skill to great competitive advantage.”
At its core, 3M has illustrated respect and value for human beings and their potential, as evidenced by the McKnight Principles (named after William L. McKnight, one of 3M’s earliest executives) and the recent implementation of “Six Sigma”— a set of innovative management and business-process practices. These fundamental ideas and philosophies have contributed to 3M’s supportive employee environment and to its commitment to deliver the best products, technologies and solutions to its customers.
McKnight Principles Tout Basic Ethics and Values
In the Roaring ’20s, William McKnight headed 3M. He rose through the ranks from assistant bookkeeper to president and CEO. Although he never graduated from Duluth Business University, McKnight developed a personal philosophy that was profoundly progressive and continues to permeate the company’s workplace and culture today. McKnight began his career at 3M at a time when the American businessman was viewed as a larger-than-life economic hero who ruled his enterprise with an autocratic hand. Workers should be seen and not heard, and if a breakthrough idea surfaced, it would surely come from the top.
McKnight saw business and the workplace differently. He built 3M into a “flat” organization with minimal hierarchy and created an informal, welcoming environment that prized innovation and put a tremendous degree of faith in 3M employees to make the right decisions. McKnight frowned upon micromanagement and took pride in delegating responsibility and encouraging employees to exercise initiative.
Six Sigma
Six Sigma is a comprehensive management system that stresses quality control, statistical analysis of a company’s manufacturing or service processes and tools that help management and teams of employees work through difficult issues. As the authors of the Six Sigma Way state, “It’s not a business fad tied to a single method or strategy … Six Sigma plays a [big role] in building new structures and practices to support sustained success.”
Six Sigma is a key corporate initiative for 3M and fits in perfectly with the company’s innovative, flexible and results-oriented culture. Although he has been CEO of 3M for just over a year, McNerney has implemented Six Sigma initiatives throughout the company, many of which are already positively impacting the bottom line. Six Sigma has played a key role in improving 3M’s cash flow, reducing costs, increasing the efficiency of the sales force and accelerating the company’s growth rate.
Company’s Unique Corporate Culture Is Nationally Recognized
3M’s unique and progressive culture is reflected by the dozens of prestigious awards and citations the company and its employees have received over the years. In March 2002, Fortune magazine ranked 3M as the most innovative company in America in its annual survey of mos
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About 3M
3M is a $16 billion diversified technology company with leading positions in health care, safety, electronics, telecommunications, industrial, consumer and office and other markets. Headquartered in St. Paul, Minn., the company has operations in more than 60 countries and serves customers in nearly 200 countries. 3M businesses share technologies, manufacturing operations, brands, marketing channels and other important resources. 3M is one of the 30 stocks that make up the Dow Jones Industrial Average and also is a component of the Standard & Poor's 500 Index. For more information about 3M, go to www.3M.com or www.3M.com/profile/pressbox/index.jhtml.