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Improving Business Performance in the Global Enterprise Successes, Failures, Lessons-Learned Barry K. Dayton, 3M Knowledge Management Program Office APQC KM Conference 2010 April 29, 2010 © 3M 2010. All Rights Reserved.

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Page 1: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

Improving Business Performance in the Global Enterprise – Successes, Failures, Lessons-Learned

Barry K. Dayton, 3M Knowledge Management Program Office

APQC KM Conference 2010April 29, 2010

© 3M 2010. All Rights Reserved.

Page 2: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

Agenda

Introduction

3M Overview

KM Program Office Mission, Role

Four Stories

Decatur Film Plant

Industrial Adhesives and Tape Division (IATD) Lab

Wiki Enterprise

InnovationLive: Markets of the Future

Conclusion

Key Success Factors

Lessons Learned

© 3M 2010. All Rights Reserved. 2

Page 3: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

Net Sales (billions)

$Solid Top-Line Growth

$21.2

$22.9$24.5

$25.3

$23.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2005 2006 2007 2008 2009

© 3M 2010. All Rights Reserved. 3

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$3.1

$3.9$4.1

$3.5

$3.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2005 2006 2007 2008 2009

Net Income (billions)*

$

A String of Record Profits

* Reported net income

© 3M 2010. All Rights Reserved. 4

Page 5: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

Electro and

Communications

Business

Consumer and

Office Business

Display and

Graphics Business

Health Care

BusinessIndustrial and

Transportation

Business

Safety, Security

and Protection

Services Business

Six Market Leading Businesses

© 3M 2010. All Rights Reserved. 5

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Solving Problems Everywhere

Operate companies in more than 65 countries

35 international companies with manufacturing operations,

35 with laboratories

In the United States, operations in 28 states

R&D and related expenditures total $6.861 billion for

the last five years

More than 75,000 employees worldwide

We provide „borderless customer success‟

© 3M 2010. All Rights Reserved. 6

Page 7: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

3M‟s Technology Platforms

AbAbrasives

BiBiotech

AcAcoustics

CeCeramics

AdAdhesives

DdDrug

Delivery

AmAdvancedMaterials

DiDisplay

AnAnalytical

DoDental &

Orthodontic Materials

AsApplicationSoftware

EcEnergy

Components

EmElectronicMaterials

FcFlexible

Converting & Packaging

FeFlexible

Electronics

FsFiltration,

Separation, Purification

FiFilms

ImImaging

FlFluoro-

materials

InInspection &

Measure-ment

IsIntegrated Systems Design

LmLight Mgmt

MdMedical

Data Mgmt

MeMetal Matrix Composites

MfMechanical Fasteners

MiMicrobial

Detection & Control

MoMolding

MrMicro-

replication

PePredictive

Engineering & Modeling

NtNano-

technology

NwNonwoven Materials

RpRadiation Processing

SeSensors

PoPorous

Materials & Membranes

PmPolymer

Melt Processing

WoWound Mgmt

VpVapor

Processing

SuSurface

Modification

SmSpecialty Materials

OpOpto-

electronics

PdParticle & Dispersion Processing

PrProcess Design & Control

PpPrecision

Processing

TtTrack and

Trace

WeAccelerated Weathering

Successful new product growth builds on uncommon connections

© 3M 2010. All Rights Reserved. 7

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Invent a

New Future

Build Broad Long

Term Capability

Grow the

Current Core

Extend The Core Strengthened Our

Enduring Franchises

Expanding in emerging

markets Substantially expanded

market opportunities

Managing the pyramid

accessed $250M sales

while maintaining

margins

Leveraged multiple 3M

technologies to create

growth opportunities

Accessed significant

new markets

Six key technology platforms

restored to world class levels

Building out Electronics &

Software

Acquisitions and International growth, key growth contributors

Refocusing on Faster Growth

© 3M 2010. All Rights Reserved.8

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Role of KM Program Office

Center of Expertise and Internal Consultancy

Based out of Strategy and Corporate Development

What we do

Develop and execute KM strategy

Assess corporate knowledge vulnerabilities and redundancies

to enable development and implementation of business

strategy

Conduct projects at Corporate, Business, and Division level

R&D, Integration, Teaching, Benchmarking, ad hoc consulting

© 3M 2010. All Rights Reserved. 9

Page 10: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

KM Enables our Growth Strategy

Knowledge Networks

Communities

After-action Reviews

Peer Assists

Storytelling

Wikis and Blogs

Social Networking

SharePoint

Maven

Leveraging the full array of KM tool portfolio

Invent a

New Future

Build Broad Long

Term Capability

Grow the

Current Core

Extend The Core Strengthened Our

Enduring Franchises

Expanding in emerging

markets Substantially expanded

market opportunities

Managing the pyramid

accessed $250M sales while maintaining

margins

Leveraged multiple 3M

technologies to create

growth opportunities

Accessed significant new markets

Six key technology platforms

restored to world class levels

Building out Electronics &

Software

© 3M 2010. All Rights Reserved. 10

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Knowledge Transfer Process

Assess

Identify business-critical

knowledge domains

From Strategic Plan

Define business case,

metrics

Interviews, mind maps,

consensus meetings

Baseline knowledge network

mapping

Improve

Select appropriate tools from

KM portfolio

Form project team

Conduct training

Pilot implementation

Utilize CAP tools

Measure first results

Gather and publicize success

stories

Sustain Replicate, expand

throughout organization

Pilot team conducts training

Measure results

Follow-up network

mapping

Time, $, improved HCP

Leaders teaching leaders

KMPO Engagement Phases

Prospecting Contracting Engagement Completion Closed

© 3M 2010. All Rights Reserved.11

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Decatur Film Plant

Problem

How to prevent major operations disruptions and improve productivity in

the midst of rapid growth, a retirement bubble, and significant hiring

Solution Implement portfolio of KM tools

• After-action Reviews

• Storytelling

• Mind Maps

• Maven search engine

• SharePoint

• Wiki Enterprise (WE)

Benefits Less downtime

Higher yields

Faster new employee ramp-up

Reduced injuries

Improved employee engagement Mind Maps

Maven Search

Highly replicable solution for 3M’s manufacturing

© 3M 2010. All Rights Reserved. 12

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Decatur Film‟s Compelling Business Need

© 3M 2010. All Rights Reserved.13

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AAR Trigger Criteria

1. After events that result in 1 Hr.+ downtime

2. After events where Maintenance is required

3. After troubleshooting process problems

4. After line changeovers and start-ups

5. After shift-pieces of major downtime/rebuilds

© 3M 2010. All Rights Reserved. 14

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Storytelling purpose

To learn from each other

Primarily from more experienced 3Mers nearing retirement

Primarily tacit-to-explicit knowledge transfer

• Much tacit-tacit happens, also

To develop “Decision Trees” for “Worst Case Scenarios”

Not necessarily like existing FMSCO Decatur decision trees

More like problem-solving rationale maps

• Why do you…

• How do you know to…

• Who do you go to for….

• Where do you find….

• Where do you keep….

• What information don‟t you have to….

• Whatever you do, DO NOT do….

© 3M 2010. All Rights Reserved. 15

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Storytelling Process

1. Develop list of worst-case scenarios (storytelling topics)

2. Identify, invite, brief the participants

3. Conduct the session1. Set the tone, make participants comfortable

2. Digitally record the conversation for future reference, if needed

3. Facilitator builds a map on the whiteboard while scribe builds one with MindManager on notebook.

4. Reveal and refine mind map with participants

5. Have some fun!

4. Proof, approve, publish mind maps

© 3M 2010. All Rights Reserved. 16

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Example of Published Mind Map

© 3M 2010. All Rights Reserved.17

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World Class Film Manufacturing Textbook on WE

Collaborative authoring across locations, organizations, generations

© 3M 2010. All Rights Reserved.18

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How to grow 3M‟s core business faster in APAC/BRICP during hiring there and Baby Boomers retiring here – R&D Globalization

Problem Labs in developing countries are hiring rapidly to meet local

customers‟ needs

50% of 3M‟s technical experts will be retirement-eligible in the next 5 years

Traditional training and development methods are inefficient, costly, slow

Solution Develop and analyze current (baseline) knowledge network

maps

Determine desired global network maps by country and division

Select and implement portfolio of KM tools to close the knowledge network gaps

Benefits Faster core business growth

Faster ramp-up for new R&D employees in developing countries

More knowledge of products and technologies retained and transferred

Piloting with IATD Technical Service

© 3M 2010. All Rights Reserved. 19

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IATD Global Technical Service Social Network“How many times in the last 12 months have you contacted this person for information or insight

necessary to do your work?” Answer: at least 12 times

Red=two-way, blue=one-way

Italy

RussiaTaiwan

Japan

China

Brazil

Canada

Korea

Germany

France

USA

UK

© 3M 2010. All Rights Reserved.20

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Several pilots of are under way

© 3M 2010. All Rights Reserved.21

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© 3M 2010. All Rights Reserved.22

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© 3M 2010. All Rights Reserved.23

Over 2000 users, 11,000 pages, 34,000 visits, 25% international

Wiki Enterprise Statistics

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WE Users Group

© 3M 2010. All Rights Reserved.24

WE is primarily user-supported

Page 25: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

How to take “Markets of the Future” to the next level by tapping the collective insight of 20,500 3Mers in 60+ countries (2009)

Problem Markets of the Future process traditionally conducted by small

group of Strategic Business Development analysts

Internal collaboration platforms lacked capability to enable mass collaborative ideation

Executive leadership looking for ways to improve enterprise-wide employee engagement

Solution Developed and conducted InnovationLive: Markets of the Future

event using hosted ideation platform

Benefit 9 Markets of the Future identified with a combined size of

approximately $XXB

736 ideas, 1239 contributors, 42 countries

Improved employee engagement

Improved awareness of Enterprise 2.0

25

Successful PoC for future InnovationLive events

Knowledge Management Program Office 39

© 3M 2010. All Rights Reserved.

3

Confidential3M Knowledge Management Program Office

Engage multiple

communities online

Bubble the best ideas to

the top

Spark conversations Examine top ideas

through 3M lens

Group

Involvement

Interesting

Topics

Multiple

Communities

Test and Validate

• Group Voting

• Moderated

• Mega Trends

• Local markets

• R&D leadership

• Marketing leadership

• Strategic planning

• Contributors included and

recognized

InnovationLiveFocus: Markets of the Future

Innovation Live – collaborative selection of future markets

• Global

• R&D

• Marketing

• Sales

3© 3M 2009. All Rights Reserved.

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First Attempt: “Let‟s use WE!”

© 3M 2010. All Rights Reserved.26

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© 3M 2010. All Rights Reserved.27

Page 28: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

InnovationLive Idea 1st most discussed, 10th most votes

© 3M 2010. All Rights Reserved.28

Page 29: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

Sustainable Solution – Key Success Factors

Focus on a compelling business need (don‟t try “boil the ocean”)

Embed knowledge transfer into the workflow

Learning before, while, and after doing

• Peer Assists, After-action Reviews, Storytelling

Create Win-Win for 3M and the individual

Objectives must be aligned

“It’s my company!!”

Recognize and reward knowledge stewardship, re-use

Expectation, role modeling, recognition by positional leadership

To be recognized by your peers is the most powerful form of recognition

Use CAP methodology (It‟s not about the tools!)

Change Acceleration Process

“Recognize people’s value while they are still here”

© 3M 2010. All Rights Reserved. 29

Page 30: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

Lessons Learned – so far – a sampling

About Strategy

Lead with business-centric value propositions, aligned to businesses‟ strategic plans

Target those businesses and organizations the enterprise is counting on for success

About Solution Adoption/acceptance

Not much happens without business leaders‟ commitment and role modeling

It IS about the tools, if they are not fun and ridiculously easy to use

About Business Results

Strive for clear metrics, but settle for strong testimonials

Improvement will occur as a result of increased awareness and focus, if nothing else

About Partnership with HR

Together, we can deliver more value for our clients

Once “converted”, HR partners are avid proponents and agents of KM

About Partnership with IT

Together, we can deliver more value for our clients

It‟s important to have a clear, common understanding of our respective roles

© 3M 2010. All Rights Reserved. 30

Page 31: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

Recommendations

© 3M 2010. All Rights Reserved.31

Page 32: Improving Business Performance in the Global Enterprise – … Conference 2010/3M... · collaborative ideation Executive leadership looking for ways to improve enterprise-wide employee

Thanks!

Questions, Discussion

[email protected]

© 3M 2010. All Rights Reserved.32