Strategic Knowledge Management and Innovative Culture at 3M

The 3M organization faces a knowledge management issue that hampers its ability to develop an innovative culture and set an example for competitors. If this issue is not addressed, the production of 3M will be affected, leading to loss of market share and customers.

culture and organization
3M CREATES INNOVATIVE ORGANIZATION CULTURE

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Contents
Organization’s background and its environment.............................................................................2
Introduction to the focus..................................................................................................................3
Argument on theoretical frameworks..............................................................................................5
Hofstede cultural dimension.....................................................................................................5
Edgar Schein’s cultural model..................................................................................................5
Chosen theoretical framework for analyzing the culture of an organization...................................7
Artifacts and creation................................................................................................................7
Values and beliefs.......................................................................................................................8
Basic assumption........................................................................................................................9
Analysis of innovative culture of 3M by using the framework of Schein.......................................9
Artifacts and creation..............................................................................................................10
Values and beliefs.....................................................................................................................11
Basic assumption......................................................................................................................12
Conclusion.....................................................................................................................................13
Recommendation...........................................................................................................................13
REFERENCES..............................................................................................................................15

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Organization’s background and its environment
The 3M Technology is the organization which offers the services of innovative products to the
communities and the customers. The organization is committed in order to make the lives of the
customers better and easier. Further, the company offers the services in the various sectors like
retail, health care, construction, industrial, mining, chemicals and the transportation (3M Global
Gateway. 2012). The company was established 50 years ago in Singapore. Initially, the
organization had around 8 employees only, but at present, it has 1700 employees along with the
well- developed capabilities. The organization is having two plants of manufacturing in
Singapore i.e. Tuas and Woodlands. The organization is an American corporation of multi-
national conglomerate which is based in Minnesota and was established in 1902. Further, the
mission statement of the organization for innovation is to improve the lives of people by offering
innovation in community, education and the environment. The vision statement of the
organization i.e. 3M for innovation is advancing the operational activities of each company by
offering the innovative products, enhancing homes of the customers by their products and
providing great innovation in order to improve the lives of the customers to every possible
extent.
Some of the failures which the 3M faced were they used various policies which were actually
daunting the entrepreneurship, and as a result, it affected the functioning. Moreover, the 3M used
various mechanisms like 15 percent and 25 percent rule in order to innovate but still not able to
get expected results also the 3M took late decisions in order to acquire with other brands. The
3M adopted six sigma technique to overcome the failures, but it adversely affected the culture
and the operations of the organization. At present, the 3M focuses on the knowledge

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management, and it has the involvement of complete organization, and it also uses various
improved techniques for innovation like six sigma, total quality management, etc. and because of
this 3M has become the powerhouse which has annual sales around $25 billion and the line of
product in 50, 000 in depth and it is ruling the world through its innovation.
Introduction to the focus
The focus is mainly on the innovation of the 3M because I want to understand that how the
organization has created innovation in the culture of the 3M along with the high-quality
production of the products and services which lead to maximization of profitability. Further, the
organization did various activities in order to bring the innovation like the 3M invested highly in
research and development, the 3M adopted the technique of six sigma for the creation of
innovate culture, used the metrics to measure the innovation, the 3M used the form of structural
innovation which included the improvised rule of 15 percent. Moreover, the 3M has received
various awards for its performance and the innovative culture. Recently, the Plant of 3M in
Minnesota was awarded the excellence of safe in sound in the prevention of loss hearing award,
2012. Also, the division of security system of 3M received the performance award of HP image
in 2012. Further, the organization was ranked as number 18 on the list of most esteemed
companies by the magazine of Fortune, 2012. The prestigious awards which have been received
by the 3M stated that the organization was among the top 50 companies in the industry. Further,
the competitors of the 3M are GE (General Electric), Tyco International and the companies of
Carlisle. The 3M gives tough competition to its rivals by continuously creating innovation in the
culture of the organization along with the innovation in production (Bailey, B. M., & Bruner, M.
W. 2015). Also, the 3M believes in motivating employees and involving them in the process of

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decision making which the competitors does not do. The below given are the growth charts of
the organization i.e. 3M in order to have a clear idea about the overall sales of the products along
with the generation of revenue.
Source: ("CSIMarket - Company, Sector, Industry, Market Analysis, Earnings, Stocks, Economy and News," 2017)
Source: ("CSIMarket - Company, Sector, Industry, Market Analysis, Earnings, Stocks, Economy and News," 2017)

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Argument on theoretical frameworks
Hofstede cultural dimension
There are various theories which are being developed by the researchers in relation to the
innovative culture of the organization. The model of the Hofstede demonstrates the dimensions
of culture among the company (Leong, F. T., Huang, J. L., & Mak, S. 2014). Further, the model
of Hofstede identifies essential aspects of the culture of the organization i.e. power distance,
individualism versus collectivism, long-term orientation, avoidance of uncertainty, masculinity
versus femininity and the restraint versus indulgence. This theoretical framework helps in
understanding the complete culture of the organization (McSweeney, B. 2002). The assessment
is mainly in relation to the process of the organization within the 3M which demonstrates the
unique and innovative setup of the culture. But, the framework lacks in explaining the every
aspect of the culture of the organization to a great extent (Ruiz-Palomino, P., & Martínez-Cañas,
R. 2014). The theory can be used in order to understand the different cultures through which the
3M is interacting in order to expand its operations in more countries than before.
Edgar Schein’s cultural model
Schein developed the model in 1980, and the model included three simple steps i.e. artifacts,
beliefs and values and the basic assumption. Further, Schein affirms that the company can never
include the specific culture in a subject of particular days. The transformation in the culture
occurs along with the changes no matter what their size is (Ruiz-Palomino, P., Martínez-Cañas,
R., & Fontrodona, J. 2013). Moreover, this model of culture has been chosen for the assessment

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of the innovation in the culture of the organization i.e. 3M. The model of culture helps in
unfolding the minute perspective of the culture of the organization in order to understand the
innovation in depth (Hsu, S. H. 2014). The diagram given below helps in understanding the
aspects which every step of the model considers and how these aspects will be helpful in creative
the innovative structure of the organization.
It has been observed that both the theoretical framework helps in studying the culture of the
organization in order to understand the culture of the organization in depth by understanding the
behavior and the various attributes of the employees who actually forms the culture of the

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organization. Moreover, it has been observed that the culture which the 3M is having at present,
the Schein model will help the organization to bring more innovation in the culture and the
employee will be able to improve their efficiency and the effectiveness to a great level of extent.
The cultural model of the Schein fits better to the organization i.e. 3M as compared to the
cultural model of Hofstede. Further, the cultural model of Schein will help in understanding all
the minute perspectives of the employees towards norms, taboos, language, trust, values, etc.
which will help the 3M to bring innovation in the culture of the organization accordingly.
Furthermore, the model of Hofstede is not being chosen because the 3M will not be able to
identify and analyze the behavior and the attitude of the employees individually in depth and the
changes will not be made adequately (Schein, E.H. 2010). Whereas, the Schein model helps in
identifying even those aspects of the employees which cannot be unfolded by the cultural model
of Hofstede.
Chosen theoretical framework for analyzing the culture of an
organization.
The chosen theoretical framework is the Edgar Schein model of culture in order to create
innovation in the culture of the 3M Technology.
Artifacts and creation
The creation and the artifacts are the first levels of the cultural model of Schein. Further, the
level demonstrates the various attributes of the organization which is the part of the culture of the
organization which can be easily felt and viewed as well (Schein, E.H. 2008). The model focuses
on the various aspects of the employees like how they interact with other employees and how

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they handle the facilities which are available. Moreover, the aspects can be clearly viewed, and
the culture of the organization can be easily understood. Also, the organization works by
following various norms as the regulations and the rules which help in defining the culture as
well. Further, the artifacts and the creation includes the way of communication which is being
followed within an organization (Tierney, W. G., & Lanford, M. 2015). Also, the artifacts
includes the elements like methods of communication, dress code, informal structure of the
organization and all these things can be studied in detail by splitting into various other aspects
like norms, rites, symbols, taboos, myths and the languages which are used by the subordinates
and the employees (Cummings, T. G., & Worley, C. G. 2014). The creation and the artifacts will
help the organization to understand those aspects of the culture which cannot be identified easily
by any other model in order to bring innovation in the culture.
Values and beliefs
The values and the beliefs are being used as another level of the cultural model. Further, the
values which are being present in the employees are used as the important aspect in guiding the
creation of the specific form of the culture of the organization. It also includes the overall
behavior of the employees as it further impacts the culture of the organization. Furthermore, the
values are being defined as the intrinsic to the employees who are working in the organization as
they are told to do so formally (Berry, L. L., & Parasuraman, A. 2002). The values and the
beliefs like honesty, trust and the orientation in order to make an effort which is being embedded
within the employees. Further, this level of the Schein model helps in understanding the various
characteristics and the culture of the organization which is not clearly visible. The beliefs and the
values help in the understanding ethical code of conduct whether it is being followed by the
employees or not and what do they think about promotion and the policy of environment, etc.

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The beliefs and the values are rooted in the persons depending on the upbringing and the
background (Daft, R. L. 2015).
Basic assumption
The assumptions are being considered as the final stage of the cultural model. Further, the
assumptions are the values which are not accessed in the organization rather they indirectly
affect the organization’s functioning (Kong, L. 2016). For example, it has been observed that the
society of Singapore is male dominating and the women are given fewer opportunities in order to
grow and show their talent, and this means that the women are less capable of doing the work as
compared to men (Grout, J. & Fisher, L. 2011). This cultural model demonstrates the inner
aspects of the culture of the organization. Further, this level of the model helps in developing the
capability in order to compete with the competitors to attain the sustainable competitive edge for
a longer period of time and even it helps in maximizing the profitability to a great extent by
offering innovative products to the customers (Hogan, S. J., & Coote, L. V. 2014). It has been
observed that some employees find difficult to imitate the culture of the organization and the
employees demonstrate the orientation of automation towards the various actions.
Analysis of innovative culture of 3M by using the framework of
Schein
The culture of the 3M has been used in order to assess the innovation by utilizing the cultural
model of Schein. This model demonstrates the very minute aspect of the culture of the company

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and the 3M will be able to use this model effectively in order to create and improve the
innovation in the culture of the organization to maximize profitability and attain a sustainable
competitive edge for a longer period of time (Bhasin, B., & Ng, L. K. 2016). Further, it has been
observed that the organization is facing challenges in managing the knowledge within the culture
of the 3M which is further impacting the operation and the activities of the organization to a
great extent. Also, the employees are being motivated in order to take corrective actions which
will be suitable for the customers to be satisfied according to their expectations and the
requirements. The culture of the organization is being analyzed depending on the three attributes
of the cultural model of Schein by considering the issue which the organization is facing i.e.
knowledge management (Brand, A. 1998).
Artifacts and creation
The artifacts include the languages, the methods of the communication, dress code, symbols,
rites, etc. All these elements help in identifying that what are the areas which require changes
and to what extent. Further, in order to develop an innovative culture, the 3M has to overcome
the problem of knowledge management which will help the organization to improve productivity
as well (Yeo, S. L., & Pang, A. 2016). It has been observed that the 3M has to develop an
environment of generosity so that the employees come up with the new and innovative ideas
which will be appreciated by the management in order to increase their morale. Also, the
organization has to follow the flat structure of communication to some extent only as this will
help the employees to develop the strong relation with the managers as well as with their
colleagues (Chhokar, J. S., Brodbeck, F. C., & House, R. J. 2013). Further, the new employees
will be told to share their experience with the other employees in the 3M as the part of social

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interplay as this will help them to become comfortable and understand the culture of the
organization. Moreover, this interplay will help in creating the culture of the 3M more innovative
as the knowledge will be shared among them, and they will learn something new from the
experience of others. Also, the friendly culture of the 3M will be created in order to maximize
the productivity and innovation. Furthermore, this will help the organization to retain the
employees as they will be given adequate benefits in order to work more productively for the
organization and also work in the same culture which the management of the organization wants.
The organization will be able to encourage the employees to completely accept the changes done
within the organization and work accordingly.
Values and beliefs
This aspect of the Schein’s model of culture gives helps in unfolding those aspects which are not
identified easily like the values and the beliefs which the employees hold towards the
organization. It has been observed that the beliefs and the values are an essential aspect which
shapes the culture of the organization and further leads to the productivity of the organization in
both the aspects i.e. negative and the positive. Moreover, in order to create an innovative culture,
the 3M has to manage the knowledge efficiently and the effectively in order to expand its
operations and set an example for the other companies by having the innovative culture of the
organization. It has also been observed that the 3M is attempting to do more internal promotion
rather than hiring all the new talent. The reason behind is to boost the morale among the
employees as they will understand that if they perform well then they will definitely be rewarded
for it and also this will help the employees to achieve some opportunities in order to grow and
learn new things (Cadle, J., Paul, D. & Turner, P. 2010). Further, the 3M will be focusing on the
rule of 15 percent in order to ensure that the employees are working by following the ethical

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code of conduct. Also, the 3M will conduct various programs in order to ensure that the things
are done fairly so that the talent of an individual is not misused or get wasted. The model will
help the 3M to develop and promote the system of belief among the employees in order to
interact more, and this will encourage the employees to accept the changes done in the
organization. Also, the organization will also have the innovative culture and will not feel
authoritative by the managers, and they will feel free to show their talent and capabilities.
Basic assumption
This aspect of the Schein’s model of culture includes the various assumptions which are being
taken for granted by most of the employees and the management of the organization. Further, the
3M has to ensure that the assumptions should be made adequately so that they should not be
taken for granted by the employees and even by the managers. Also, this will help the 3M to
create an innovative culture in order to maximize the productivity to a great level of the extent
which will lead to attaining a sustainable competitive edge for a longer period of time. It has
been observed that the 3M wants to develop a culture of freedom among the employees so that
they can share their innovative ideas to a great level of extent (Burke, W. W., & Noumair, D. A.
2015). Also, the employee will not be dominated by the managers, and they will not feel that the
decisions are being imposed on them. Further, the employees will be getting the complete
support from the top level management, and they will be involved in the very process of decision
making so that they feel that they are actually an essential part of an organization. Moreover, the
organization can rely on the orientation of the employees and the management towards the
customers in order to maximize productivity and satisfying the customers and the employees to a
great extent (CN Wee, J., & YK Chua, A. 2013). Further, the employees will be given authority

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in order to take the decisions, and this will encourage them to work more efficiently and
effectively.
Conclusion
From the report, it has been observed that the 3M should use the cultural model of Schein in
order to create an innovative culture of the organization. It is important for the organization to
overcome the issue of knowledge management because it is impacting the culture of the
organization adversely along with the productivity of the organization. It is making difficult for
the organization to satisfy the customers completely according to their expectations. Moreover, if
the organization will not solve the issue of the knowledge management, then the 3M will not be
able to develop a culture which they want to develop i.e. the innovative culture in order to set an
example for the competitors. Further, the production of the 3M will be affected to a great level,
and at the end, the 3M will lose the market share and the customers as well.
Recommendation
The 3M can also consider the technique of six sigma in order to evaluate the performance of the
employees and take the corrective measures accordingly in order to create an innovative culture
at 3M. Further, this technique will help the 3M to create the culture which the organization is
expecting to have in order to set an example for other organizations. The 3M should consider the
cultural model of Schein properly along with the technique of six sigma in order to develop an
innovative culture for the 3M. Further, if the 3M will use these models and techniques
appropriately then the employees will have a great relation with their managers, and they will get

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enough opportunities in order to grow and learn, and the 3M will be able to solve the problem of
knowledge management efficiently and effectively.

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