In this blog post, we will discuss 3M's successful strategy for innovation. This company is known for its innovative products and has several mechanisms to ensure that it continues to "think outside the box." One of these mechanisms is the Thirty Percent Rule. This rule states that 30% of each division's revenues must come from products introduced in the last four years. This rule is tracked rigorously, and employee bonuses are based on the achievement of this goal. Let's take a closer look at how 3M implements this rule and how it benefits the company.
How does the 3M Thirty Percent Rule work?
The rule is simple: 30% of each division's revenues must come from products introduced in the last four years; employees are incentivised to innovate and introduce new products constantly. The benefit of this rule is that it ensures that employees are always thinking about ways to improve existing products and develop new ones.
How does the rule benefit 3M?
The Thirty Percent Rule benefits the company in several ways:
- It ensures that employees always think about ways to improve existing products and develop new ones.
- It keeps the company's products relevant and up-to-date.
- It helps the company to identify new market trends and opportunities for innovation.
Examples of products introduced as a result of the Thirty Percent Rule
Some examples of products that have been introduced as a result of the Thirty Percent Rule include:
How are employees held accountable to the rule?
Employees are held accountable to the rule in several ways:
- Their bonuses are based on the achievement of this goal.
- They must submit quarterly reports detailing their progress towards meeting the goal.
- They are required to present their ideas to senior management regularly.
The future of innovation at 3M
The future of innovation at the company looks bright. The Thirty Percent Rule has successfully incentivised employees to think creatively and develop new products. In addition, the company is investing heavily in research and development, which will help ensure that it remains at the forefront of innovation.