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3M Finance

Provide financial leadership and insights to drive sustainable growth by transforming data into strategic decisions that reimagine what's possible

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Align the strategy

3M Finance SWOT Analysis

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Provide financial leadership and insights to drive sustainable growth by transforming data into strategic decisions that reimagine what's possible

Strengths

  • PROCESSES: Robust financial controls and reporting systems
  • EXPERTISE: Deep industry knowledge across diverse business units
  • SYSTEMS: Integrated financial systems with cross-functional data
  • CASH: Strong cash generation capabilities with 90%+ conversion
  • RELATIONSHIPS: Established strategic partnerships with key stakeholders

Weaknesses

  • COMPLEXITY: Complicated financial structure across diverse segments
  • AGILITY: Slow decision-making processes impacting responsiveness
  • VISIBILITY: Limited real-time data analytics capabilities
  • FORECASTING: Inconsistent accuracy in long-term financial projections
  • TALENT: Skills gap in advanced financial technologies adoption

Opportunities

  • AUTOMATION: Enhance efficiency through AI-powered financial processes
  • INTEGRATION: Consolidate financial data across business segments
  • ESG: Develop robust financial metrics for sustainability reporting
  • ANALYTICS: Implement predictive financial modeling for better insights
  • STRATEGY: Align financial planning with company spin-off initiatives

Threats

  • COMPLIANCE: Increasing regulatory requirements across global markets
  • DISRUPTION: Business restructuring challenges to financial stability
  • INFLATION: Persistent cost pressures impacting profitability
  • COMPETITION: Talent acquisition challenges for specialized skills
  • VOLATILITY: Economic uncertainty impacting forecasting accuracy

Key Priorities

  • TRANSFORMATION: Modernize financial systems for integrated analytics
  • AUTOMATION: Implement AI-powered processes for efficiency and accuracy
  • TALENT: Develop specialized financial skills for future challenges
  • ALIGNMENT: Optimize financial strategy to support business separation
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Align the plan

3M Finance OKR Plan

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Provide financial leadership and insights to drive sustainable growth by transforming data into strategic decisions that reimagine what's possible

TRANSFORM SYSTEMS

Modernize financial infrastructure for integrated insights

  • PLATFORM: Implement unified financial data platform connecting 90% of business units by Q3 2025
  • AUTOMATION: Reduce manual processes by 40% through AI/ML solutions, saving 15,000 hours annually
  • ANALYTICS: Deploy 5 predictive financial models with 85%+ accuracy across key business segments
  • REPORTING: Develop real-time financial dashboard accessible to 100% of leadership team members
ELEVATE EFFICIENCY

Accelerate AI-powered processes across finance operations

  • WORKFLOW: Implement AI-driven accounts payable system reducing processing time by 60%
  • FORECASTING: Achieve 92% accuracy in quarterly forecasts using ML-enhanced predictive models
  • CONTROLS: Deploy AI anomaly detection covering 100% of financial transactions by Q4 2025
  • CLOSE: Reduce month-end close process from 8 days to 4 days through intelligent automation
DEVELOP TALENT

Build next-gen finance capabilities for future success

  • SKILLS: Train 85% of finance staff on advanced analytics and AI applications by Q3 2025
  • INNOVATION: Create finance innovation lab with 20+ certified data analysts across departments
  • RETENTION: Improve finance talent retention rate to 92% through upskilling and career paths
  • CERTIFICATION: Achieve 25 specialized AI/ML certifications among senior finance leadership
STRATEGIC ALIGNMENT

Optimize financial strategy for business transformation

  • SEPARATION: Complete financial readiness for Health Care business spin-off with zero disruptions
  • GOVERNANCE: Establish new financial controls structure for both entities with 100% compliance
  • EFFICIENCY: Deliver $300M in cost savings through restructuring initiatives by Q4 2025
  • SUSTAINABILITY: Implement financial metrics tracking sustainability goals across 100% of segments
METRICS
  • CASH CONVERSION: Operating cash flow conversion rate of 95%
  • FORECAST ACCURACY: 92% accuracy in quarterly financial projections
  • EFFICIENCY GAINS: $300M in cost savings through process improvements
VALUES
  • Accuracy and Integrity
  • Innovation and Adaptability
  • Strategic Partnership
  • Operational Excellence
  • Continuous Improvement
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Align the learnings

3M Finance Retrospective

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Provide financial leadership and insights to drive sustainable growth by transforming data into strategic decisions that reimagine what's possible

What Went Well

  • EXECUTION: Successful progress on spin-off of Health Care business
  • CASH: Achieved strong free cash flow conversion at 94% in Q1 2023
  • MARGINS: Expanded adjusted operating margins by 160 basis points YoY
  • OPERATIONS: Improved manufacturing productivity across key segments
  • COSTS: Delivered $230M in savings through restructuring initiatives

Not So Well

  • REVENUE: Organic sales declined 1.3% year-over-year in latest quarter
  • SEGMENTS: Safety & Industrial segment showed continued weakness
  • INVENTORY: Higher-than-targeted inventory levels impacting cash flow
  • GUIDANCE: Adjusted earnings forecast downward for full fiscal year
  • LEGAL: Ongoing earplug litigation creating financial uncertainty

Learnings

  • AGILITY: Need for faster financial recalibration in changing markets
  • TRANSPARENCY: Enhanced forecasting models crucial for investor trust
  • INTEGRATION: Cross-functional financial planning improves accuracy
  • DISCIPLINE: Strict capital allocation framework drives better returns
  • PREPARATION: Earlier identification of headwinds improves resilience

Action Items

  • ANALYTICS: Implement advanced predictive modeling for improved forecasts
  • EFFICIENCY: Accelerate expense reduction initiatives to reach $300M
  • STRUCTURE: Complete financial readiness for Health Care business spin-off
  • DIGITIZATION: Fast-track automation of 40% of manual finance processes
  • TALENT: Upskill finance team on advanced analytics and AI applications
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Drive AI transformation

3M Finance AI Strategy SWOT Analysis

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Provide financial leadership and insights to drive sustainable growth by transforming data into strategic decisions that reimagine what's possible

Strengths

  • FOUNDATION: Established data infrastructure across finance operations
  • LEADERSHIP: Executive commitment to technological transformation
  • RESOURCES: Substantial investment capacity for AI implementation
  • TALENT: Core team of data scientists within financial organization
  • INTEGRATION: Existing ERP systems ready for AI enhancement

Weaknesses

  • SILOS: Fragmented data architecture limiting AI effectiveness
  • SKILLS: Limited AI expertise among traditional finance staff
  • ADOPTION: Resistance to change within established processes
  • GOVERNANCE: Insufficient AI governance frameworks and policies
  • LEGACY: Outdated systems requiring substantial modernization

Opportunities

  • FORECASTING: Enhance accuracy using predictive AI algorithms
  • AUTOMATION: Reduce manual tasks in financial close processes
  • INSIGHTS: Generate deeper business insights through ML analysis
  • RISK: Strengthen risk detection through anomaly recognition
  • DECISION: Accelerate strategic decision-making with real-time data

Threats

  • SECURITY: Data breaches compromising financial information
  • QUALITY: AI models compromised by poor data quality
  • DISRUPTION: Rapid technological changes outpacing implementation
  • REGULATION: Evolving AI compliance requirements increasing costs
  • COMPLEXITY: Integration challenges across diverse business units

Key Priorities

  • CAPABILITY: Build comprehensive AI skills across finance teams
  • INFRASTRUCTURE: Develop unified data architecture for AI readiness
  • AUTOMATION: Prioritize high-impact AI use cases for immediate ROI
  • GOVERNANCE: Establish robust frameworks for AI implementation