Communication with Executives Business Execution Process 3M International Operations Approximately 6 minutes I’m Trent Blinkman and this Articulate Presenter training module is one among several like this one, designed to help teams who are on a path to employ the 3M Business Execution Process. This module is about “Communication with Executives”. Communication with Executives Trent Blinkman International Business Process Execution Manager © 3M. 2012 Confidential

Standard Charts for CEO/EVP Reviews There has long been a template to outline the content and format for communication elements to be used with senior executives that visit for business reviews. For subsidiaries, these create a baseline set of requirements. The purpose of this module is to provide guidance for incorporating your Business Execution Process elements into executive-level communication content. To effectively connect with executives, you won’t want to abandon PowerPoint in favor of reviewing the details of your A3’s.

Examples: BEP Content in Executive Review Slide Decks Click on “Attachments” Tab on this Presentation EXAMPLE slide content International BEP SharePoint Site In what follows, I offer some suggestions about integrating BEP content into a broader communication set. In addition, there are a few EXAMPLE slide files that are extracted from presentations used in actual executive reviews. These are attached to this Articulate Presentation AND are available on the International BEP SharePoint Site under the “Training Materials” tab. © 3M 2012. Confidential

Deliver Operationally/Manage Strategically X-Matrix 3 Top –Level Improvement Priorities 2 Annual Strategic Objectives 1 Long Term “Breakthrough” Strategic Objectives 4 Targets to Improve While this IS a slide from a presentation set, If you incorporate your X-Matrix into a presentation, it should only be done to demonstrate that you have created this foundational tool, as a team, to help the subsidiary OPERATIONALIZE the Strategic Plan. You should consider having paper copies of your BEP documents that can be provided to the executives, if they want to see or discuss the details of some particular element, or take the content with them. Deliver Operationally/Manage Strategically © 3M 2012. Confidential

X-Matrix – Long-Term Strategic Objectives A Leader in Prioritized Markets $500 MM Sales from New Products Benchmark for Marketing Excellence Healthy Organization for the Future World Class Operational Excellence Rather than showing an entire X-Matrix on one slide (which is typically un-readable), it is usually better to break the X-Matrix into component pieces to outline the elements of your plan. The slide shown here focuses first at the long-term / breakthrough objectives of the subsidiary. Of course with this and all other included Business Execution Process content, you will want to connect your execution plan to the needs and expectations of the executive. 1 Long Term “Breakthrough” Strategic Objectives © 3M 2012. Confidential

This Year’s Objectives, Priorities, & KEY Targets Annual Strategic Objectives Targets to Improve - $252 M Total Top Level Priorities This View outlines the Top strategic objectives for the year --- the Most important IMPROVEMENT priorities . . . . and the Targets to Improve. When tied together, this will convey the connection between your Long-Term strategy and Short-Term execution plan and performance metrics. Generally speaking, the TWO most important things to discuss will be your VITAL FEW . . . AND the elements of your Bowler Scorecard (which usually are your “Targets to Improve”). © 3M 2012. Confidential

The “VITAL FEW” Growth from Strategic Accounts at Financial & Operational Milestones ($167.4M Total) 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) Execute Sales Excellence Plan Achieve New Product Development Milestones & Success for Local New Products – ($72M Local) 4 Targets to Improve Execute Marketing Excellence Plan Execute Employee Engagement and Performance Culture In this example, Both of the elements are present --- The entire list represents the elements of the Bowler and the Vital Few are highlighted in the slide transition. This is important, because the things that you MEASURE and Track will get the most attention from the team --- We know this is foundational to the Business Execution Process --- but it’s fundamentally true regardless. By showing this, you give a clear indication to the executive what you will be striving to achieve in the given year. The Vital Few punctuates your top priorities within this group of Key Targets. Leverage Business Services to Drive Productivity, Competency and Quality of Services (31,000 hrs.) Business Conduct, Regulatory Compliance and World Class Safety © 3M 2012. Confidential

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 Business Conduct, Regulatory Compliance and World Class Safety It will generally be a distraction to show A3s in any form on the Executive Review slides because they contain too much detail for executive review – So if you must show them for effect, make sure they are quickly overlaid with the few KEY POINTS of the A3 --- which are usually going to include the ACTIONS and ACTIVITIES that will show HOW the team intends to reach the Important Target to Improve. Delivering the Big 3M © 3M 2012. Confidential

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 Preferences What’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 It IS clear that as executives make international trips and meet with business teams, they WILL see an increasing amount of Business Execution Process content. While those of us using this process think that’s a good thing for the reasons WE embrace, most executives will find that too much BEP detail in your review sessions will not be effective or efficient. The style of forward-focused, solution-oriented discussions that the Business Execution Process facilitates is not the best for articulating the messages you will want to convey to the visiting executives. You will need to use more dynamic and diverse content. As with any presentation, you will need to consider the audience and purpose of the meeting and build in Powerpoint slides, Pictures, Charts, Graphs, and other content, with at most an OVERVIEW of the BEP content incorporated into the flow We know that the Business Execution Process doesn’t employ Powerpoint presentations, but that tool will remain important for communicating in other ways and situations. You can always go into more detail or lead discussions with executives in your BEP Action Rooms, but doing so should only be done at the request of the executive who might desire a deeper look into your execution process or want to see where they can help. © 3M 2012. Confidential

Business Execution Process (BEP) 3M International Operations The PowerPoint slides of this presentation are attached to the upper right corner of this program and you can save and use them to fit your needs. I wish you continued success in deploying this great process. © 3M 2012. Confidential