Trent BlinkmanInternational Business Process Execution Manager

Communication with Executives

3M International OperationsBusiness Execution Process

© 3M. 2012 Confidential

Approximately 6 minutes

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Standard Charts for CEO/EVP Reviews

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Examples: BEP Content in Executive Review Slide Decks

EXAMPLE slide content

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International BEP SharePoint Site

Click on “Attachments”Tab on this Presentation

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X-Matrix

3 Top –

Level Improvement

Priorities2 Annual Strategic

Objectives 1 Long Term

“Breakthrough” Strategic Objectives

4 Targets to

Improve

Deliver Operationally/Manage Strategically

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X-Matrix – Long-Term Strategic ObjectivesA Leader in Prioritized Markets

$500 MM Sales from New Products

Benchmark for Marketing Excellence

Healthy Organization for the Future

World Class Operational Excellence

1 Long Term

“Breakthrough” Strategic Objectives

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This Year’s Objectives, Priorities, & KEY Targets Annual Strategic Objectives

Top Level Priorities

Targets to Improve

- $252 M Total

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The “VITAL FEW”Growth from Strategic Accounts at Financial & Operational Milestones ($167.4M Total)

Execute a Quality Input Plan that Strengthens Customer Loyalty from 55% to 65%

Execute Growth Plans for Priority Markets ($80M Total)

Hoppering and tracking of A&A and hoppering of Alternative Business Models

Execute Key Growth Opportunities over $1M ($56M Total)

Execute Sales Excellence Plan

Improve rigor of NPI process for "Imported" Products & achieve NPVI target ($180M Import)

Achieve New Product Dev. Milestones & Success for Local new products ($72M Local))

Develop and Execute Strategic Business Development for Growth

Execute Marketing Excellence Plan

Gross Margin Improvement Plan from 52.6% to 53.3%

Execute Human Capital Plan and Align Resources to Priorities

Execute Employee Engagement and Performance Culture, incl. the new building

Leverage Bus Services to Drive Productivity, Consistency & Quality of Services (31,000 hrs in productivity)

Strengthen Business Execution and Strategic Planning through BEP Roles

Meet our Customer Service & Inventory Targets (>93%, D&E = 2%, SDE=5%, YE Turns = 11.75)

Deliver LSS Cost & Cash & Value Stream Objectives ($12.8MM, $3.9MM, VS=$1.2MM productivity)

Make Variance and Factory Cost Plan (Dom. & Interco) ($0 variance for year)

Indirect Spending Reduction of $11MM from 2011

Biz Conduct, Regulatory Compliance & World Class Safety

Execute Growth Plans for Priority Markets ($80M Total)

Achieve New Product Development Milestones & Success for Local New Products – ($72M Local)

Execute Marketing Excellence Plan

Leverage Business Services to Drive Productivity, Competency and Quality of Services (31,000 hrs.)

Business Conduct, Regulatory Compliance and World Class Safety

Growth from Strategic Accounts at Financial & Operational Milestones ($167.4M Total)

Execute Employee Engagement and Performance Culture

Execute Sales Excellence Plan

4 Targets to

Improve

© 3M 2012. Confidential

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Business Conduct, Regulatory Compliance and World Class Safety

Delivering the Big 3M

Business Conduct, Regulatory Compliance and World Class Safety

A3 Highlights

Culture of Compliance and Pro-active Leadership Continued implementation of Anti-Bribery Program 100% Completion of On-Line Compliance Courses Education and Training Maintain and Improve Operational EHS Scorecards SOX and GFS Compliance Improve Communication Process for Acquisitions

Zero Unsatisfactory Audits and Zero Past Due Issues© 3M 2012. Confidential

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Summary -- Communication with Executives

The Business Execution Process is a great management and execution process, but not ideal for Executive Messaging

Understand your Audience’s PreferencesWhat’s the purpose of the Review or Communication?How much BEP content is the right amount?

Incorporate a BALANCED Approach Powerpoint slides, Charts, Graphs, Pictures to help Tell the Story BEP components should connect with the Executive:

Your “Vital Few” , and why these are your most important objectives Improvement Priorities and Targets – Where you must get Better Convey that you will employ the PDCA rhythm to deliver results

Key: Highlight actions and targets from the A3s – but don’t review them in detail

© 3M 2012. Confidential

3M International OperationsBusiness Execution Process (BEP)

© 3M 2012. Confidential