KMS

Designing Knowledge
Management Strategy for
3M Organization

November
16

2014

KMS Major Assignment

Group-1
Peeyush Anurag Ray

U113158

Siddharth Sourav Padhee

U113113

Manish Yadav

U113029

Risheek Raizada

U113008

Atandrita Aparajita

U113013

Aniroodh Ganeriwala

U113190

3M Knowledge management

KMS

Executive Summary
3M aims at becoming the most innovative organization in the world. (Adam Brand, (1998),"Knowledge
Management and Innovation at 3M", Journal of Knowledge Management,). 3M serves customers through
five diverse business segments: Consumer, Safety & Graphics, Industrial, Health Care, and Electronics &
Energy. To be innovative in highly competitive industries and global markets requires the effective use
of Knowledge Management. Amidst all these diversities, it was necessary to have information access to
various functions in the organizations .For instance, 3M makes more than 10,000 products [and]
operates 30 business unit, the scope and pace of customers questions began taking a heavy toll on call
centre agents and managers. Training agents to handle questions relating *to all 3Ms products and
services+ was becoming impossible (Edwards, 2000).Also internally within 3M, synergy among all the
labs scattered in various geographical location is necessary for continual development and for answering
technical queries and information sharing, a knowledge management system is necessary. An attempt
to understand the solution to above problems has been made through secondary research .The sources
for the same has been listed in the references. After continuous attempts to improve customer support
at 3M, the management realised the need of an appropriate environment to be in place which will
motivate people to input and access such systems. On similar lines, incorporating the knowledge
conversion process laid down by Nonaka , 3M concentrates on the tacit to tacit area in the belief that if
socialization functions well, other aspects of Knowledge Management will fall more readily into place.
For internal knowledge exchange the Socialcast portal was incorporated.

3M Knowledge management

KMS

Background of 3M
3M Commercial Care is a diversified supplier of cleaning and maintenance
products and programs for commercial, health care, educational, retail and
industrial facilities. 3M Commercial Care manufactures chemical management
systems, floor finishes and cleaners, disinfectants, carpet care products, floor pads
and brushes, hand pads, matting and traction products.
Every day, 3M people find new ways to make amazing things happen. Wherever
they are, whatever they do, the company's customers know they can rely on 3M to
help make their lives better. 3M's brands include Scotch, Post-it, Scotchgard,
Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti. Serving customers in
more than 200 countries around the world, the people of 3M use their expertise,
technologies and global strength to lead in major markets including consumer and
office; display and graphics; electronics and telecommunications; safety, security
and protection services; health care; industrial and transportation.
3M is a global innovation company that never stops inventing. Over the years, our
innovations have improved daily life for hundreds of millions of people all over the
world. 3M have made driving at night easier, made buildings safer, and made
consumer electronics lighter, less energy-intensive and less harmful to the
environment. 3M even helped put a man on the moon. Every day at 3M, one idea
always leads to the next, igniting momentum to make progress possible around the
world.

3M Knowledge management

KMS

Methodology
1. To understand the business objectives and the strategy associated for comprehensive
knowhow as to how the business processes are executed so as to achieve its goals
2. We used secondary data to identify various departments and functions and also we take
two different processes which are highly critical for the business and understand the flow of
process and information
3. After understanding the current process and the challenges, we make an attempt to draw
the probable KM strategy, followed by architecture and then the proposed systems
4. Finally, we identified the infrastructure required to implement the knowledge
architecture. This includes the technology to be used and the roll out plan including a
roadmap with well-defined milestones mapped to KPIs.
5. Lastly we lay down a sample Change Management process.

3M Knowledge management

KMS

Data Collection

Secondary Through websites and other documents

Business goals & their impacts

3M Values

Act with uncompromising honesty and integrity in everything 3M do.

Satisfy our customers with innovative technology and superior quality, value and service.

Provide our investors an attractive return through sustainable, global growth.

Respect our social and physical environment around the world.

Value and develop our employees' diverse talents, initiative and leadership.

Earn the admiration of all those associated with 3M worldwide.

3M at a Glance (Year-end 2013)

Global sales: $30.8 billion.

International (non-US) sales: $19.7 billion (64 percent of company's total).

Operations in more than 70 countries.

3M products sold in nearly 200 countries.

88,667 employees globally.

2013 3Mgives cash and product donations totaled $60.2 million.

3M Brand Identity Vision

3M earn customer loyalty and respect when 3M effectively differentiate from our competition and
leverage the 3M brand identity standards as a vehicle for impact and success. As a diversified technology
company, 3M relies on the delivery of our brand promise (what 3M bring to the marketplace), align with
the expression of our brand essence (how 3M is able to achieve that brand promise) to ensure
understanding and connection with our company, brands and products.
3M Brand Promise

Practical and ingenious solutions that help customers succeed

3M Brand Essence

Harnessing the chain reaction of new ideas

3M Knowledge management

KMS
The integration of these core building blocks reinforces the trust, leadership, quality and innovation for
which 3M has grown to be recognized and respected. In addition, of course, 3M also have strategic
brands, which provide further relevance and differentiation in key market categories.
3M Brand Identity Objectives

The objectives of our brand identity system are to:

Manage the 3M brand globally - expressing our promise, personality and values.
Build the ability of the 3M brand and strategic brands to instill familiarity, reinforce brand/product
experience and protect our equity.
Provide tools to facilitate consistent and effective delivery of the brand promise with every point of
contact.
3M Brand Identity Strategies
To build a truly global brand, 3M need to maximize awareness and relevance of our single, unifying 3M
brand. To achieve this, our strategies are to:

Increase familiarity of the 3M brand identity through consistent application of our identity
standards worldwide.

Build equity in identity assets that are globally recognized.

Build market leadership in every market 3M serve.

Industry Analysis (PESTEL)

Political Factors
Political factors include government regulations and legal issues and define both formal and
informal rules under which the firm must operate. Some examples include:
* tax policy
* employment laws
* environmental regulations
* trade restrictions and tariffs
* political stability

3M Knowledge management

KMS

Economic Factors
Economic factors affect the purchasing po3Mr of potential customers and the firm's cost of
capital. The following are examples of factors in the macroeconomy:
* economic growth
* interest rates
* exchange rates
* inflation rate

Social Factors
Social factors include the demographic and cultural aspects of the external macroenvironment.
These factors affect customer needs and the size of potential markets. Some social factors
include:
* health consciousness
* population growth rate
* age distribution
* career attitudes
* emphasis on safety

Technological Factors
Technological factors can lower barriers to entry, reduce minimum efficient production levels,
and influence outsourcing decisions. Some technological factors include:
* R&D activity
* automation
* technology incentives
* rate of technological change

3M Knowledge management

KMS

KM Strategy
KM Architecture 3M Knowledge Management Framework

The figure below shows the Knowledge Management framework for 3M

Knowledge Goals for

specific business process to
be outlined
Either Head of Department
or functional expert
Learning and Sharing
Culture Knowledge by
Design. Knowledge by
culture

Latest IT enables
infrastructure to
manage knowledge

Fostering the reuse of

existing of knowledge to
validate and further
refine the knowledge

Knowledge Aquisition

Processes and policies to

develop Knowledge

Processes and
policies to distribute
Knowledge

3M Knowledge management

Processes and policies to

Preserve Knowledge
through security measures

KMS
KNOWLEDGE
MANAGEMENT

KNOWLEDGE
PROCESS

KNOWLEDGE
INTENSIVE
BUSINESS
PROCESS

ID

Category
KM Process

Process
Knowledge
Sharing

Description
Sharing
knowledge
between lab

SUB PROCESS Procedures, testing, quality check, apparatus settings

OBJECTIVE
To modularize product development process across labs
CONSTRAINT Complacence with processes, acceptance of new practices,
difference in time zones, different work culture
METHOD
Video conference, remote file transfer protocol etc
SYSTEM
Internal communications, one to one communication
channel
ACTORS
Product development Managers, workers, scientists,
assistants ,HR
3M Knowledge management

KMS

3M Knowledge management

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KM Organizational structure
3M has numerous products and many a times it may so happen that when a customer care
representative is asked some question regarding a product s/he does not have a concrete answer to that
neither does s/he find the answer in the existing database. There may be instances when relevant data
is present in the database but due to unstandardized metadata the representative is not able to retrieve
the exact information from the database. Below is the process flow to be followed in case similar
situation arises.

Customerenquires
enquires
Customer
KM ORGANIZATIONAL
something STRUCTURE:
something

Customer care rep

searches database

No

Relevant
Document
found

Yes

Similar
doc found
not exact
one

No

No document with such

queries present in
database

Yes

Reply to customer
A knowledge management structure

Problem with metadata

management

Escalate the
issue

Traditional hierarchical management structures allow vertical knowledge transfer through typical chain
ofcommand, but inhibit horizontal knowledge transfer that must cross the organization's functional
boundaries. Increasing competition and everUse
shortening
rates of technological change necessitate better
a standardized
transfer of knowledge across organizationalformat
boundaries
(Gopalakrishnan
and Santoro,
2004), document
with
Induct relevant
which ensures
organizational structure identified as one of
five factors
transfer
performance.
to the
database
through
future
smoothattributing
retrieval to knowledge
KM process
of knowledge
data
The development of knowledge teams composed of
workers from crossfunctional areas of
the organization is a first step towards developing a fully distributed knowledge transfer system (both
3M Knowledge management

10

KMS
vertical and horizontal) within the organization. Crossfunctional team members provide knowledge
sharing from their knowledge team back to their original functional areas.
However, the scope of teams is limited to the organizational problem assigned to the team and results
in limited knowledge sharing throughout the organization. The idea of teams and knowledge sharing
must be extended to include all aspects of the organization. A knowledge teambased organizational
structure is displayed in Figure 2. The knowledge organization of Figure 2 is composed of knowledge
groups that are composed of knowledge teams, which are built from knowledge workers selected for
participation on a knowledge team due to their tacit knowledge and skills. Ideally, the knowledge
workers on any knowledge team come from different organizational (and educational) backgrounds and
will bring a diversity of tacit knowledge and skills to the team.
Adoption of a new organizational structure (the knowledge organization) or managerial methodology
(knowledge culture) faces resistance within the organization (Goh, 2003; Zammuto et al., 2000).
Resistance to change may be minimized by reducing the perception of change for the stakeholders.
Initially, the knowledge team management structure may be aligned to an existing hierarchical
management structure by aligning the knowledge groups with the existing functional areas of the
organization including: accounting, marketing, production, and research similar to the idea of
communities of practice. Knowledge teams or intermediate groups of knowledge communities are then
aligned with the subdivisions within each functional area.
The recognition of individual personnel as knowledge workers will promote the development of new
knowledge teams to address an organization's opportunities and consequently will facilitate the
development of knowledge team communities that are diverse and more focused on knowledge
oriented problem solving. Knowledge workers are expected to share and utilize knowledge with other
team members to produce the highest quality decisions. New knowledge teams and groups must be
promoted to develop around product lines or other core competencies of the enterprise as opposed to
functional area team composition. Knowledge teams should be created dynamically to take advantage
of an organization's business opportunities or new business strategies.
Over time, the idea of an accounting (or other functional) branch of the organization will be replaced by
communities of knowledge workers that have knowledge/expertise in accounting and may thus utilize
other tacit knowledge to specialize in functional capabilities within a knowledge group. Communities of
practice will still be an important element within the knowledge organization structure to enable
knowledge team members to interact with members of other knowledge teams with similar interests
and competencies and further promote interteam knowledge sharing. Furthermore, communities of
practice have been identified as a strategy to improve organizational performance through enhanced
knowledge sharing (Lesser and Storck, 2001).
Knowledge teams that identify the need for specific knowledge (e.g. accounting or marketing) would
then recruit knowledge workers that had the desired tacit knowledge to join the team (from a dissolving
team that has already accomplished it's primary purpose or from a team that did not have a current
need for the requested knowledge worker's tacit knowledge). The role of a knowledge librarian or
3M Knowledge management

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KMS
expertise locater system can facilitate the identification and location of knowledge workers with desired
tacit knowledge and skills.
ORGANIZATION STRUCTURE (3M):

Lead Director
Mr. Vance Coffman

Chairman and CEO

Mr. Inge Thulin

CFO
Mr. Nicholas Gangestand

Director
Ms. Linda Alvarado

Design

M&A

Director
Mr. Herbert Henkel

Consumer Business

Audit

Electronics and
Energy

Control and Acc.

Director
Mr. Muhtar Kent

Healthcare

New Ventures

Director
Mr. Thomas Brown
Industrial Business

Treasurer

Director
Ms. Soudra Barbour
Director
Mr. Edward Liddy

International
Operations

Safety and Graphics

Director
Mr. Michael Eskew

Business
Development

Lead Director
Mr. Vance Coffman
Human Resources

Legal Affairs

France

Mexico

APAC

West Europe

Latin America

Framework for creating communities of practice

Talent Recruitment
Sales and Marketing
3M Knowledge management

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KMS

Source: apqc.org, knowledge management best practices, Oct 09, 2012

Roles & Responsibilities

CKO
Its the responsibility of the CKO decide the budget allocation for knowledge
management process. CKO also has to decide who will be the resources
involved in this activity and what will be their roles and responsibilities. A
roadmap for implementation is also decided by CKO.
Working Groups
Working group consists of business units heads. They have to prioritize the
KM process based on the business impact. Apart from that, they also assign
budget and resources.
Working group also have to define KPIs for the resources involved in the KM
process. These KPIs have to align the business goals with the KM process so
that the KM related tasks become a part of daily work of the resources. Cost
and roadmaps are also defined by working group.
COP
COP is a group of people who are experts in their fields and they collaborate
with others and share their learnings. The resources selected for COP are

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KMS

classified as Subject Matter Experts (SMEs) based on their past records,

certifications completed, experience etc.
COP also have the responsibility of reviewing the documents created by
other COP members (Peer Review). Peer review is followed by an expert
review. SLAs for review process is based on the amount of time taken for
reviewing a document. These SLAs must be in line with the KPIs identified
by the working groups.
COP is responsible to define Good Practices. Defining KM process,
implementing and rolling out the pilot phase is done by COP.

KM Objectives, KM Plan and Roles & Responsibilities

KM Objectives

KM Plan

To serve all sections of the society

equally by making healthcare
services, knowledge and
information accessible to all
To plan a innovation system
which can be implemented all
over the country with slight
modifications to meet regional
needs
To make all real time data to be
available from everywhere and
help in innovation
To make the public aware about
products

A Central Database which

provides all Information on
Cloud for easy access to all
Feedback is taken from all
regions and Important points
are included in the document
which is rolled out at later
stage
Centralized Servers(at
different location) connected
to the Computers
Public awareness Audio
Visual Campaigns

3M Knowledge management

Roles &
Responsibilities

CKO Supervises it. The

MOHFW is the owner.
Additional Secretary takes
the responsibility of
feedback and distributing
the report
Data entry operators are
required to input all the data
Conducted by 3M

14

KMS

KM Processes & Metrics

KM Process and Metrics

The KM process will comprise of the following steps:

a) Knowledge Detection/Discovery:
a. Tacit: The tacit knowledge is present with the officers who attend the Daily
Traffic Review Meeting (DTR). They take decisions of allotment in consultation
with the various stakeholders.
b. Explicit: This is largely a process of sorting through documents and other records,
as well as discovering knowledge within existing data and knowledge
repositories.
b) Knowledge Assessment & Organization: The tacit knowledge of the officers is captured
and stored in manuals and cases and various templates which makes the knowledge
explicit by documenting it.
c) Knowledge Sharing :
a. Articulation: Defining what a user needs
b. Awareness: Awareness of the knowledge available. The Knowledge creator is
encouraged to make use of directories, yellow pages, maps, corporate etc.
c. Access: Access to the knowledge.
d. Guidance: Defining the areas of expertise of the members of the 3M, guide their
contributions, assist users, and be responsible for the language used in
publications and other communication material. This is so as to avoid an
information/knowledge overload.
e. Completeness: Access to both centrally managed and self-published knowledge.
The former is often more scrutinized but takes longer to publish and is not as
hands-on (and potentially relevant). Self-published information on the other
hand runs the risk of not being as reliable.
d) Knowledge Review: This explicit knowledge of the various decisions taken during
allotment of berth is reviewed by the CoP and then further by the KM champions.
e) Knowledge Store : The knowledge asset once reviewed is stored in the portal or the
repository by the Knowledge Manager.
f) Knowledge Reuse: This knowledge is used by various officials the port to taken better
informed decisions thereby ensuring improved performance and enhanced quality of
service delivery.

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KMS

Metrics:
Organization Efficiency
Organizational effectiveness.
staff turnover
KM Phase
Creation Phase

Process Metrics

Storage Phase

Dissemination Phase

Utilization Phase

Measurement Phase

Quantity of discussion groups on process or

product innovation
Quantity of valid contributions for organizational
memory

Quantity of messages or documents

stored in the system
Number of registered users who use
the system
Quality of stored knowledge
Experts evaluation to check quality
Quantity of editions or updates
Level of knowledge updating
Users feedback
Quantity of active communities of
practice
Statistics on use of organizational
memory / intranet
Perception of collaborators with
available internal means of
communication
Cost of distribution
Quantity of useful suggestions
incorporated to productive processes
and/or products
Statistics of utilization of the system
Statistics of utilization of the search
mechanism
Number of ideas or patents
Comparison between number of
measurement planned hours and actual
hours
Number of evaluations made in
comparison with the plan

KM Architecture

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KMS

KM
Data Captured at
Hospital Levels

Tacit
Reuse

Store

Proc
ess

Explicit

Review
Data Manual input
by the doctors

[Grab your
readers attention
with a great quote
from the

Major

challenges

Data Stored at
State Level to
Regional to
Central Level

Data Reviewed by
the Matron, Peer
Doctors (atleast-1)
of the Hospitals

faced by 3M are as follows

Unsatisfactory

quality of data

Data is the main ingredient of any knowledge management system. For the KM system to
help in forming better policies and in taking better decisions, it is important to use good
quality of data.

Non- availability of data for knowledge generation

The data that is captured is not in standardized format. This makes it difficult to store
data in common database. To ensure availability of data, we need to make sure it is in
uniform format.

Inadequate dissemination of knowledge

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KMS

Knowledge management system cannot be a success until it helps in spreading the

required information to correct people. For this different mediums like internet, kiosks
etc. can be helpful. Along with presence of information and medium, proper training need
to be given to people who will generate and use the data.

Change Management
CHANGE MANAGEMENT:
Knowledge is always considered very important for a company like 3M which is completely innovation
driven. It is very imperative for all the stakeholders or at least for the employees to be aware of all the
developments happening in the company. Considering the importance of knowledge, the management
of knowledge within the organization plays a vital role. So various knowledge management strategies
are applied in the form of new technologies, change in work culture or modification of workflow
processes. But employees always resist the change. So KMS introduction in the organization needs
preparations and strategies to avoid rejection of the employees. The rejection might become a
bottleneck in the implementation process and its future use.
Factors that could affect Change Management KM strategy:

One of the factors that heavily affects the new KM strategy implementation is the employees
resistance to change. Employees have followed a process for a long period of time and they are
never willing to change the way they work or to adopt new processes in work. It will take a lot of
convincing to make them understand what benefits the new KM strategy would bring to him
and to the company as well.
Other factor can be top managements commitment to the KM strategy. Implementation of Km
strategy would take some time and the benefits will only be realized after it is practised for fair
amount of time. During this time top management should remain fully committed to the
process. Change management is a top down approach so the commitment and involvement of
top management is very vital.
Another factor is even if employee agrees to the new strategy without any motivation s/he may
not practise that. Employees should be forced to adopt to the changes but not through coercion
but by linking it to the KPIs.

Framework for change management strategy for KMS Implementation:

To formulate the framework for change management strategies for KMS implementation we adopt
some relevant concepts like System Thinking Approach, SWOT analysis, SKEPTIC analysis, theory of

3M Knowledge management

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KMS
Technology Acceptance Model, theory of Lewins three step model and Analytic Hierarchy Process. The
process follow would follow the sequence

First step is to analysing future environment. For this process SKEPTIC analysis is to be used
which would help us to know organization opportunities and threats.
Second step is to determining objectives of KMS implementation. Through the help of KMS
functions what objectives are expected to achieve is analysed in this step.
Third step is to formulate the success criteria. Through CSFs we determine the KPIs which
essentially help in motivating employees to adopt to the change.
Fourth step is to analyse the current situation of the organization. Through Technology
Acceptance Model we take a stock of organizations strengths and weaknesses.
Fifth step will be to prioritize the change management strategies and to map the strategies to
corresponding functions.

Sl
No

PROCESSES

OBJECTIVES

Organization
threats

Analysing Future Environment

1

Determining
objectives
implementation

Formulate the success criteria

Analyse the
Organization

Prioritize the change management and

map the strategies to corresponding
business process

current

of

Opportunities

and

KMS Expected Objective to be achieved

situation

Determine KPIs

of Organizations
weakness

strength

and

Prioritize change management and

map strategies to business process

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KMS

Rewards and Recognition:

KM practices are linked as KPIs to every employee and at initial stage employees are rewarded for the
compliance to KM practices. Rewarding employees for compliance to KM practices is used as tool for
change management. Employees feel motivated with the reward scheme and it drives their motivation
to keep on contributing to KMS. But with experience this tactics may not work and managers need to
switch to recognition as a motivating factor. Recognition can be of many forms like giving credit for
some work, public appreciation etc.

ROI:
COST (in dollars)
Year 1

Server Purchase
Database
Purchase
Set
up/Development
cost
Transition cost
Server/Database
Maintenance
Training /
Communication
cost
Per Year total
5 year total
BENEFITS

Rework Reduced

Year 2

Year 3

Year 4

Year 5

1830

20000

ASSUMPTIONS
Rs 110000,
dollar:rupee =
0 60:1
100TB
database;
0 $200/ tb

10000
1000

0
0

0
0

0
0

0
0

1000

1100

1210

1331

50000
83830

52500
53600

55125
56335

57881
59212

Year 1

15000

Year 2

16500

Yer 3

Year 4

18150

3M Knowledge management

19965

$500 per
anum; 10%
1464.1 increase YoY
5% increase
60775 YOY
62239
315217
Year 5

ASSUMPTIONS
R&D
budget$1.5
billion
dollars,grows
10% each year;
reduced
rework saves
0.001% of R&D
21961.5 cost
20

KMS

Reduced repeat
calls
YEAR WISE
TOTAL
5 YEAR TOTAL
ROI

10000

11000

12100

13310

25000

27500

30250

33275

0.01% increase
in efficiency of
customer care,
reduce the
man power in
customer care
14641 by 0.01%.
36602.5
152627.5

48.42

References
References:
1. Adam Brand, (1998),"Knowledge Management and Innovation at 3M", Journal of Knowledge
Management, Vol. 2 Iss 1 pp.
17 22
2. 3M Case Study-Socialcast Gives 3Ms Global Labs a Distinctly Local Feeling
3.http://users.jyu.fi/~japawlow/slides/06_GKM_processes_2013.pdf
1.

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