We've all used post-it notes. A brand that's synonymous with post-its is 3M.
Interestingly, 3M stands for Minnesota Mining and Manufacturing. When we celebrate innovation, we celebrate a change in the status quo - a stretching of domains, fields and disciplines. Surely enough, then, we must also celebrate the unsung heroes of innovation such as 3M for their profitable transition from mining to stationery. How did a company that has a 'Mining' in it's name move on to design sticky post-it notes?
Cut to the early 20th century. Industrial revolution was big in the US - the rise of skyscrapers, building of highways and the manufacturing of automobiles was in full flow. Steel was cool. For steel to be manufactured, there was a need for tools and machinery parts. A motley group of people from Minnesota got together and decided they were going to create a mining company to obtain raw material to manufacture tools used for grinding needed in manufacturing steel, hoping to make a profit in the infrastructure industry boom.
These (mostly young) men borrowed a lot of money and built the mine. Soon enough, disaster struck. It turned out the mineral they mined was the wrong mineral. It was not nearly as useful for abrasion as they thought.
They were in trouble. Thankfully, they found out that the mineral they had mined would be really useful in making great sandpaper. Back then, sandpaper was pretty important in infrastructure. They persevered, and surely enough, half a decade or so later, they broke even. They weren't a run away success by any stretch of imagination, but were fairly profitable.
Something amazing happened soon after. 3M had on its payroll a sandpaper engineer named Richard Drew. He was working on a sandpaper project for 3M in collaboration with automobile companies. He noticed that automobile companies had a problem in painting vehicles in two tones - they couldn't come up with a way to separate the colours. Richard Drew saw the problem and thought he could solve it. He headed back to his lab and came up with a series of prototypes - until his boss, a man named William McKnight, saw him working on this project that wasn't part of Drew's job description. McKnight gave Drew a talking to. Grudgingly, Drew got back to working on sandpaper. However, whenever he could, he directed his efforts towards solving the paint problem. He got told several times to get his act right and work on sandpaper, but he was possessed. Half way into his efforts of solving the two tone problem, Drew realized he needed money. He had enough budget authority at 3M to write $100 receipts. He wrote these receipts to himself, amounting to a total of around $2000 (which was a lot of money in the second decade of the 20th century) and finished the prototype. He showed his invention to the automobile companies. They fell in love with it. He showed it to William McKnight, who reluctantly agreed that it was a breakthrough. This was the modest birth of the now ubiquitous masking tape! Masking tape eventually gave way to Scotch tape, designed by the same guy. This is how they made their entry into stationery.
The enterprise of Richard Drew is worthy of admiration. I would, however, like to direct your attention to William McKnight. It is hard for a boss to put his hands up and say 'OK. I was wrong. You've come up with a brilliant idea that is going to get our profits skyrocketing. I was actually an impediment to innovation. Despite considering myself as being a good manager, I did my best to stifle my star engineer and innovator. I need a management rethink. I want to encourage the Richard Drews in my company, not trouble them'. But that's exactly what McKnight did. He had the foresight to see that tape was a much more profitable venture than sandpaper, although sandpaper wasn't too bad a product to be manufacturing.
William McKnight eventually became the CEO of 3M and ensured his learnings became central to 3M's management philosophy and culture. This is what McKnight wrote, in 1948:
As our business grows, it becomes increasingly necessary to delegate responsibility and to encourage men and women to exercise their initiative. This requires considerable tolerance. Those men and women, to whom we delegate authority and responsibility, if they are good people, are going to want to do their jobs in their own way.
Mistakes will be made. But if a person is essentially right, the mistakes he or she makes are not as serious in the long run as the mistakes management will make if it undertakes to tell those in authority exactly how they must do their jobs.
Management that is destructively critical when mistakes are made kills initiative. And it's essential that we have many people with initiative if we are to continue to grow.
That's quality management education right there. Moreover, it's timeless. It was written in 1948 and still holds true, despite the rise and fall of several industries. Google, a company formed fifty years later, uses this very management principle when it allows employees to work on a project of their choice once a week, utilizing company time and resources. Talk about vision - McKnight, in all probability, did not even know computers would be so important and companies like Google would exist in the future.
Infact, it's not just a management philosophy. It's a roadmap to a happier life, if you think about it. Parents who want their children to be happier, families who want to stay together and people in a relationship who want it to work can all learn something from McKnight's three paragraphs of brilliance.
Look at his words closely.
As our business grows, it becomes increasingly necessary to delegate responsibility and to encourage men and women to exercise their initiative. This requires considerable tolerance. Those men and women, to whom we delegate authority and responsibility, if they are good people, are going to want to do their jobs in their own way.
He talks of delegation - trusting other people's judgment even when you think they are totally out of order, because you know there's something about those people that you know (even if you can't put your finger on it) is right.
Mistakes will be made.
This is scary. People are uncomfortable with mistakes. Mistakes are supposed to be a bad thing - in business or in relationships. Imagine a manager saying 'We expect expenditure on mistakes to go up by 20% this quarter'. Sounds ridiculous, doesn't it? It's a risk to spend money that will probably never be recovered. Yet, risks are what keeps businesses thriving.
Management that is destructively critical when mistakes are made kills initiative. And it's essential that we have many people with initiative if we are to continue to grow.
Initiative - that's hard to understand as well. Most people don't grasp the concept that you don't have to be a Senior Vice President or a Chief Executive Officer to lead. You can lead from the bottom. People live in the illusion that you are supposed to do what you're told until you're in a position of authority and then suddenly, you get to do what you want and execute your ideas. In all probability, it would be too late then. Change can come from anywhere. McKnight spells it out beautifully.
We owe a lot to William McKnight. Gmail, Google News and the likes would never have been created had the concept of responsibility delegation and trust not made its way into management psyche. It's human (and right) to love and appreciate the Richard Drews of this world. What the world needs, though, is a large number of William McKnights.