CORPORATE LEADERSHIP COUNCIL
www.corporateleadershipcouncil.com
FEATURED COMPANY
MINNESOTA MINING AND
COMPANY:
MANUFACTURING CO. (3M)
HEADQUARTERS: ST. PAUL, MINNESOTA
INDUSTRY: MANUFACTURING
1999 EMPLOYEES: 71,000
1999 SALES: $15.7 BILLION
CHALLENGE AT HAND
In the mid-1990s, 3M faced significant structural changes to the
business environment in which it operated. Globalizing markets,
rapid changes in product and information technologies, and a critical
need for organizational agility refocused attention on the nature of
corporate leadership. In addition, these structural changes,
particularly globalization, have impacted the type of leadership
capabilities required for organizational success.
3M faced two challenges in particular: first, to update its model of
corporate leadership and cultivate the leadership talent necessary for
growth; and second, to improve the effectiveness of its succession
planning process to ensure capable leaders are properly deployed in
the organization. These challenges are described below.
Issue #1 — Stewarding Future Growth
In order to survive competitive pressures and grow the company, 3M
required strengthened leadership, both in the contemporary senior
management cohort and in the pool of high-potential leadership
talent. As advocated by the quote below, one approach to ensuring
the development of skills and behaviors that support corporate
objectives is the creation of a model that describes the organization’s
desired competencies.
"To be effective, the development of workplace and managerial
skills must reflect the current and projected needs of the
organization. It is a critical responsibility… to identify the core
competencies of the enterprise and to ensure that the
competencies required by managers, specialists and the
workforce in general are adequate and appropriate."1
— Pickett, Les. “Competencies and Managerial Effectiveness:
Putting Competencies to Work”
 2000 CORPORATE EXECUTIVE BOARD
CATALOG NUMBER: CLC12NLK2
DECEMBER 2000
CASE PROFILE
3M’s Leadership
Competency Framework
EXECUTIVE SUMMARY
! In the face of complex competitive pressures, 3M required an
up-to-date leadership model to guide targeted leadership
development across its diverse businesses and a strong succession
planning process to secure future corporate leadership.
! 3M involved its senior executives and leadership talent in the
development of a global framework of leadership competencies
specific to 3M’s business, vision and values.
! The model’s identified competency areas, framework and
behavioral anchors now facilitate leadership assessment and
development and the executive succession planning process.
Although 3M had developed a leadership competency model in the
mid-1980s, a review of this model against more recent literature
showed that the identified competencies needed to be updated —
particularly with respect to changes in leadership philosophy to
address the rapidly-changing global business environment — for the
company to be able to pursue its growth plans.
Issue #2 — Facilitating Leadership Succession
3M faced a second challenge in relation to its leadership team. The
company has a policy of promoting from within in order to ensure
that individuals filling leadership positions possess the broad
understanding of 3M’s diverse businesses to provide effective
executive leadership. It was therefore critical not only that the
company’s leadership development process was properly targeted,
but that succession planning was carefully managed.
Recent research indicates that the use of competency models as a
basis for objective talent assessment and succession planning is a
common practice in large organizations. A Leibman Associates
study of the practices of over 100 Fortune 500 companies showed
that approximately two-thirds had developed explicit leadership
competencies.2
3M had need of a company-specific, but company-wide, leadership
profile on which to base objective assessment of leadership potential,
identification of development needs and probable career-pathing.
Objectives of the new leadership competency profile were:
! To accurately assess leadership capability
! To more effectively develop talent within the organization
! To select and place leaders into key positions
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 CORPORATE LEADERSHIP COUNCIL DECEMBER 2000
3M’s Leadership Competency Framework

HR SOLUTION Critically Reviewing Established Competencies

In 1995, 3M convened a global conference of HR professionals to
position leadership selection, assessment and development as the
primary HR priorities for the company. At the conclusion of the
conference, two HR professionals were identified to lead a team in
creating initiatives aimed at competency-based leadership
development. The first step was the creation of a global leadership
competency framework that would describe and drive the type of
leadership required by the company.
Identifying Stakeholders
In keeping with best practices identified in literature regarding
competency-modeling,3 3M included in its leadership analysis those
individuals who shape the positions targeted by the model: in this
case, the members of the executive leadership team.
In order to ensure that the model would accurately illustrate the true
leadership needs of the organization, the project leaders worked with
three groups of senior managers to create, review and edit the
evolving competency model development. These groups would also
determine when it was appropriate to move to the next stage in
implementing the leadership development and succession processes
and tools that would be built upon the competency framework. The
three groups were:
! Executive Resources Committee (ERC)
CEO, business unit Executive Vice Presidents (EVPs) and HR
Vice President (VP). Responsible for selection and development
of individuals in the top 500 positions at 3M.
! Human Resources Policy Committee
Market EVPs, HR VP and several VPs of corporate service
functions. Mandates policies with human resources impacts.
! Operations Committee
CEO and 13 direct reports. Oversees 3Ms operations and approves
the formation or restructuring of staff or operating units.
The project team used the identified stakeholder groups heavily in
reviewing 3M’s current set of competencies and revising them to
reflect the company’s current business environment. These groups’
roles in critical stages of the competency model development process
are outlined below.
! Ensuring fit of new competencies with leadership philosophy
Project leaders met individually with each member of the
Executive Resources Committee to review current competency
materials and discuss leadership philosophy, business complexity
and language.
! Building consensus for the leadership model
The project leaders also presented several drafts of the competency
model to the Human Resources Policy Committee. Discussion
surrounding the phrasing and interpretation of the competency
definitions helped clarify leadership philosophy and facilitated
consensus-building.
At the end of this process, the group had made several revisions to
competency labels and definitions (See Figure 1 for examples) and
finalized a set of 12 identified leadership competencies.
4
Creating a Framework for Revised Leadership Competencies
The company further refined the model by organizing the 12
identified competencies into a framework that described how these
competencies might be developed over time.
A group of HR practitioners from across 3M’s global operations
distinguished ‘fundamental,’ ‘essential’ and ‘visionary’ clusters of
competencies that would help clarify the applicability of the model to
experienced, junior or potential future leaders. The twelve
competencies and the competency framework are described in detail
in Figure 2 overleaf.

4
FIGURE 1: REVISIONS TO LEADERSHIP COMPETENCIES AT 3M

Original Competency Revised Competency

Rationale for Change
Label Label

! The use of ‘nurturing’ highlights the importance of proactively creating an environment in

Innovation Nurturing Innovation which staff can freely exchange ideas, challenge the status quo and learn from failures
! Emphasises leader’s role of mentoring idea originators through all stages of a product’s life

! Stresses the importance of delivering results; avoiding the implication that growth should be
Business Health and pursued at all costs
Business Growth
Results
! Encourages leaders to manage all organizational subsystems to be ‘vibrant and flexible’

! The removal of ‘systemic’ was intended to avoid the perception that the competencies were
Systemic Change Integrated Change expressed with jargon
! The term ‘integrated’ would be more clearly and widely understood
Capable of Handling ! Acknowledges the existence of paradoxical leadership situations
Effective Analysis of
Multiple, Complex and
Complex Situations
Paradoxical Situations ! Introduces the concept of using judgment in leadership

! Highlights the reciprocal nature of the feedback process, to overcome the one-way, top-down
Feedback and Gives and Seeks Open and implications of the original statement
Reinforcement Authentic Feedback
! The term ‘authentic’ communicates the expectation of candor

 2000 CORPORATE EXECUTIVE BOARD PAGE 2

 CORPORATE LEADERSHIP COUNCIL DECEMBER 2000
3M’s Leadership Competency Framework

HR SOLUTION (CONTINUED) The expression of the competencies as outcomes allows direct

3M’s leadership competency framework reflects several
recommendations from literature regarding the construction of a
useful competency model, including relating the competencies to
realistic workplace practices and expressing them as outcomes rather
than as procedures.5
demonstration, observation and assessment. In addition, 3M’s work
with senior executives in the development stages ensured that the
model reflects a third best practice: the competencies are expressed in
language that is familiar to those people who will make use of the
tool.
6

FIGURE 2: 3M’S LEADERSHIP COMPETENCY FRAMEWORK6

Fundamental Leadership Competencies Essential Leadership Competencies Visionary Leadership Competencies

Fundamental competencies are those Visionary competencies are those which 3M

which an individual may possess at the Essential competencies are those that leaders must possess to assume increased
time of hire, but which will develop further the individual will develop as he becomes levels of responsibility. They enable leaders
as the individual progresses through responsible for a functional unit or department. to look beyond their locus of control and add
successive management positions. perspective to their leadership decisions.

Ethics and Integrity Customer Orientation Global Perspective

! Exhibits uncompromising integrity and
commitment to 3M’s corporate values,
human resource principles and business
conduct policies.
! Builds trust and instills self-confidence
through mutually respectful, ongoing
communication.
Intellectual Capacity
! Assimilates and synthesizes information
rapidly, recognizes the complexity in issues,
challenges assumptions and faces up to
reality.
! Capable of handling multiple, complex and
paradoxical situations. Communicates
clearly, concisely and with appropriate
simplicity.
Maturity and Judgment
! Demonstrates resiliency and sound
judgment in dealing with business and
corporate challenges.
! Recognizes when a decision must be made
and acts in a considered and timely manner.
! Deals effectively with ambiguity and learns
from success and failure.
3M includes this fundamental
competency to remind leaders that the
company expects sound judgment from
those in whom it places trust, and that
this should be demonstrated to the staff.
! Works constantly to provide superior value
to the 3M customer, making each
interaction a positive one.
Developing People
! Selects and retains an excellent workforce
within an environment that values diversity
and respects individuality.
! Promotes continuous learning and the
development of self and others to achieve
maximum potential.
! Gives and seeks open and authentic
feedback.
Inspiring Others
! Positively affects the behavior of others,
motivating them to achieve personal
satisfaction and high performance through
a sense of purpose and spirit of
cooperation.
! Leads by example.
Business Health / Results
! Identifies and successfully generates
product, market and geographic growth
opportunities, while consistently delivering
positive short-term business results.
! Continually searches for ways to add
value and to position the organization for
future success.
3M intends this competency definition to
focus leaders on building an enterprise that
creates profit and generates business with
the ultimate objective of delivering an
attractive return on shareholder investment.
! Operates from an awareness of 3M’s
global markets, capabilities and
resources.
! Exerts global leadership and works
respectfully in multicultural environments
to 3M’s advantage.
Vision and Strategy
! Creates and communicates a customer-
focused vision, corporately aligned and
engaging all employees in pursuit of a
common goal.
Nurturing Innovation
! Creates and sustains an environment that
supports experimentation, rewards risk-
taking, reinforces curiosity and challenges
the status quo through freedom and
openness without judgment.
! Influences the future to 3M’s advantage.
Building Alliances
! Builds and leverages mutually beneficial
relationships and networks, both internal
and external, which generate multiple
opportunities for 3M.
Organizational Agility
! Knows, respects and leverages 3M’s
culture and assets.
! Leads integrated change within a
business unit to achieve sustainable
competitive advantage.
! Utilizes teams intentionally and
appropriately
By including this competency, 3M aims to
develop leaders who can “see around
corners” to anticipate changes in market
conditions and proactively position the
company for future competitive advantage.

 2000 CORPORATE EXECUTIVE BOARD PAGE 3

 CORPORATE LEADERSHIP COUNCIL
HR SOLUTION (CONTINUED)
Anchoring Leadership Competencies in Behaviors
In order to ensure that the organization could utilize the competency
model effectively for the purposes of assessment, development
planning and succession planning, it was important to ‘anchor’ the
identified competencies in observable leadership behaviors. This
would enable current executives to pinpoint which aspects of
leadership they were delivering on, what their development needs
were, and would clarify for more junior employees the paths to
executive roles at 3M.
The project team’s objective was to describe, in behavioral terms,
what is a high degree of leadership competence. In order to identify
relevant behaviors at different levels of competence, the global HR
team conducted critical incident interviews with 70 executives across
3M’s operations.
Critical incident interviewing is a long-established method of
identifying the characteristics of effective job performance.
Individuals in the position being analyzed are asked to identify
behaviors or activities that can be demonstrated to be critical to either
effective or ineffective performance.7
The process used by 3M to identify definitive behaviors indicating
leadership competency is described below.8
1. Members of the global HR team met in pairs with individual
participating executives and discussed with them descriptive
examples of individuals or incidents associated with a high degree
of competence in two of the identified competency areas.
2. The discussion yielded a range of behaviors associated with each
of the two competencies.
3. The team identified three to five of the revealed behaviors —
which were observable on the job and generalizable across the
world’s regions and markets — as definitive indicators of high-
level leadership competence.
As an illustrative example of the types of behaviors that were
identified at 3M, the anchors for the ‘global perspective’ competency
are presented in Figure 3.9
FIGURE 3: BEHAVIORAL ANCHORS FOR
‘GLOBAL PERSPECTIVE’ LEADERSHIP COMPETENCY
9 leadership competency framework. However, the company’s
! Global Information Sourcing — Respects, values and leverages
other customs, cultures and values. Uses a global management
team to better understand and grow the total business; able to
leverage the benefits of working in multicultural environments.
! Global Resourcing — Optimizes and integrates resources on a
global basis, including manufacturing, research and businesses
across countries, and functions to increase 3M’s growth and
profitability.
! Global Customer Orientation — Satisfies global customers and
markets from anywhere in the world.
! Global Awareness — Actively stays current on world economies,
trade issues, international market trends and opportunities.
 2000 CORPORATE EXECUTIVE BOARD
DECEMBER 2000
3M’s Leadership Competency Framework
Linking the Leadership Competency Model to Leadership
Development and Succession Planning
The three primary applications of 3M’s new leadership competency
model are presented below:
! Leadership Talent Review Tool
In order to build the use of the competency framework into a talent
review process, the project team designed a personal interview
process that asked senior executives to rate the degree of
competence of each of their direct reports (against the identified
behavioral anchors) as “not a strength”, “sufficient” or “a
strength.” In a pilot program, the members of 3M’s Operations
Committee rated their direct reports, a total of 70 individuals. The
CEO then led a review of leadership talent among this group at a
monthly meeting of the company’s Executive Resource Committee.
This talent review is now an annual process at 3M.
! Targeting Leadership Talent Development
3M’s comprehensive competency model helps executives to
consistently communicate to the employee population the
competencies and behaviors that 3M expects its future leaders to
display. Current and potential leaders and their managers have a
clear view of those criteria against which their performance will be
judged and can take targeted action to gain experience and improve
in these areas. Employee performance is assessed against the
competency model and individuals receive feedback on their
strengths and needs.
! Long-Term Leadership Succession Planning
3M examines potential appointments to leadership positions by
considering individuals’ strengths against the competency model,
on the basis that high-potential employees who consistently exhibit
effective leadership behaviors will progress to leadership career
paths. This progress is validated and closely monitored by
observing business results and the results of objective performance
assessments, and the company provides appropriately targeted
developmental opportunities to allow individuals to refine their
leadership competencies with the objective of fulfilling the profile
specified by the competency model.
LESSONS LEARNED
3M has not published results directly attributable to the creation of its
leadership development executives perceive that the model has been
well-received internally, and are confident that it will deliver tangible
results. Because the competencies and behaviors in the framework
are articulated with reference to 3M culture and values, development
executives believe the newly-developed competency model to have
“vitality and relevance” for those using it.10
"[Although] much work remains to be done… we are well on the
way to deepening bench strength and developing stronger
incumbent leaders. With further development of leadership and
talent assessment and succession applications, 3M leaders
expect the extra time invested in customizing these solutions to
result in measurable business success."11
— 3M Executive Director of Selection, Assessment and Leadership
Development, and Development and Measurement Center Manager
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 CORPORATE LEADERSHIP COUNCIL DECEMBER 2000
3M’s Leadership Competency Framework

1
Les Pickett. “Competencies and Managerial Effectiveness: Putting Competencies to Work,” Public Personnel Management (22 March 1998). (Obtained through Lexis-Nexis).
2
Cited in Faye Cope, “Current Issues in Selecting High Potentials,” Human Resource Planning (January 1998). (Obtained through Dow Jones Interactive).
3
Stephanie Craig, “Using Competencies in Career Development,” in Designing and Achieving Competency, 1992, McGrw-Hill (UK).
4
Margaret Alldredge and Kevin Nilan, “3M’s Leadership Competency Model: An Internally Developed Solution,” Human Resource Management Vol. 39, Nos. 1 and 2 (Summer/Fall 2000).
5
Les Pickett. “Competencies and Managerial Effectiveness: Putting Competencies to Work.”
6
Margaret Alldredge and Kevin Nilan, “3M’s Leadership Competency Model: An Internally Developed Solution.”
7
Rajvinder Kandola and Michael Pearn, “Identifying Competencies,” in Designing and Achieving Competency, 1992, McGrw-Hill (UK).
8
Margaret Alldredge and Kevin Nilan, “3M’s Leadership Competency Model: An Internally Developed Solution.”
9
ibid.
10
ibid.
11
ibid.

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views expressed herein by third-party sources do not necessarily reflect the policies of the organizations they represent.

 2000 CORPORATE EXECUTIVE BOARD PAGE 5