As a global company, 3M is challenged with managing constant change in diverse markets around the world. Its strategy begins with a vision communicated to the workforce and supported by a framework for adaptability.
By Belinda Jones
Operating a global company in a diverse set of countries and markets is extremely complex and challenging, requiring global strategies that enable the company to thrive in change. For 3M, the focus is on developing success strategies which include developing leaders who look beyond corporate survivorship and building a high–performing and diverse global workforce. The vision is supported by a framework that develops individual skills and competencies of employees around the world, guided by six 3M leadership behaviors, and embedding diversity and inclusion in everything the company does.
Marlene McGrath, senior vice president, 3M Human Resources, shares the 3M story in order to provide insights into the strategies the multinational has implemented to successfully build a diverse and inclusive workforce and to develop effective and impactful leaders engaged in continuous change and improvements.
HR Framework: Build, Develop and Engage
Being able to adapt to continuous change in order to maintain competitiveness is a requirement in today's business environment, and 3M is a company that sets the benchmark for agility and adaptability. As a global company, 3M needs an adaptable culture, and a workforce and leadership able to thrive in an environment of intense competition and change.
"A common saying around 3M is to make change your best friend," McGrath says. "Some of our most impactful leadership development roles, such as Lean Six Sigma, Business Transformation, and International assignments, provide opportunities for people to grow personally and experience how change affects our enterprise. We have people in these roles in nearly every country."
3M’s vision and strategies guide change. Combined with other fundamentals like 3M leadership behaviors and its code of conduct, together called the 3M Playbook, they become the platforms for making change in a systematic manner.
It is challenging to do business in different countries and markets, and that is why the 3M Playbook is so important to strategy development. Everything builds from the 3M Playbook. Using the playbook as the foundation, the business and regional teams develop overall strategies that are connected to local implementation plans. This approach maintains global alignment while giving teams the flexibility to adapt and execute locally.
In HR, McGrath and her team use the same approach. As she describes it, "Beginning with the 3M Playbook, we developed an HR framework that is global and includes three areas of focus – build, develop, and engage."
Build is about strengthening the competence and increasing the capacity of the organization, and attracting new and diverse talent with the skills and mindset to create and adapt to change. Develop is focused on advancing each employee's skills and competencies so they can manage and adapt to change, helping the organization remain agile, relevant, and sustainable in the way it supports customers. Development is considered central to 3M's ability to navigate change which is why its global 2025 sustainability goals include having 100 percent of the workforce participate in development activities. Engage centers on improving the work experience of employees.
"This includes providing competitive, transparent, and constantly evolving local compensation and benefit programs that promote the physical, emotional, and financial wellness of people," McGrath explained.
Equation for Developing a Truly Adaptable Workforce
Developing a global workforce that is adaptable to continuous change is challenging, but 3M has found an equation that works for the organization.
One factor is the set of six 3M leadership behaviors that employees understand are model behaviors that meet the organization's needs and support the culture and values no matter where an employee is located. Behaviors like “develop others and self” and “innovate” apply to individuals and team or organizational leaders. This is one of the unique aspects of 3M's approach – every member of the workforce is expected to embrace the same set of behaviors.
The 3M philosophy is that learning is a lifelong process. No matter where the person works, the organization's leaders should contribute to that process. At 3M, employees have many opportunities to take on different assignments, projects, roles and other learning experiences.
"We have a '15 percent culture' which empowers people to spend 15 percent of their time working on interesting projects that fall outside their regular job responsibilities," McGrath says.
Top-Down and Bottom-Up Approach to Diversity & Inclusion
An adaptable workforce in the global setting is also diverse. As many organizations have discovered, diversity means different things in different cultures.
As a leader in developing a global workforce that successfully manages change and a diversity of cultures, McGrath and her team have the full support of the executive and senior leaders while also working a grassroots bottom-up approach. The organization is not focused only on diversity because diversity without inclusion is not a model for success. The top-down and bottom-up approach means D&I is embedded in everything the organization does, and everyone is expected to be advocates.
The challenge global companies must manage is the different ways diversity is defined around the lines. In the U.S., diversity is defined more along racial and ethnic lines. In other parts of the world, it is often more across culture, ideas, experience and gender. 3M's perspective is that diversity is embraced no matter how it is defined in different countries, but the organization also works to accelerate true progress in each community of operation.
"Inclusion is more universal and must be deeply rooted in our culture, regardless of regional differences. For each individual – whether employee, customer or partner – inclusion is a feeling that you can be yourself, and are respected and valued for who you are," McGrath explained.
To tackle the challenge of global D&I, the organization first sets a global diversity goal which is not focused on absolute numbers. There is an aspirational goal of doubling its pipeline of diverse leaders in management by the year 2025. Achieving this goal requires a long-term approach to continuous improvement with progress monitored and measured. Once initial goals are met, 3M sets new goals.
Recognition for a World-Class Initiative
McGrath spearheaded the 3M "I'm in. Accelerating Women's Leadership" initiative which led to 3M earning a 2017 Catalyst award in recognition of the positive impact the initiative has had on 3M's global workforce. The "I'm in" initiative is comprised of a variety of components that include networking, mentoring, talent development, work-life, workplace flexibility programs and external community efforts. It focuses on the advancement of women in the pipeline and across the organization, but programs and communications include all 3M people.
This initiative supports 3M's refreshed diversity and inclusion strategy designed to increase organizational performance in a highly competitive and continually changing world. From 2011 to 2016, the global initiative has accelerated progress for women around the world.
"I'm most proud of the unwavering commitment of our people at every level," McGrath said. "A change of this magnitude to accelerate women's leadership needs everyone involved and engaged – from our CEO to our newest 3Mers in another part of the world. That’s why this award means so much to us. It doesn’t recognize my work or HR's work, or that of senior leadership, but of every 3Mer who contributes to our culture of inclusion and seeks diverse perspectives."
That is truly the bottom line of D&I. All company stakeholders must be involved, collaborative and supportive. 3M found the right formula and looks forward to continued success no matter how much change comes its way.