Invest In BRIC Country Businesses
For another one of their strategic elements, it is suggested to invest in the BRIC countries (Brazil, Russia, India, and China) with a slight amount of harvesting due to the global recession and the need to do some profit-taking. This can take the form of acquisitions in these countries as an investment type of cost to increase 3M’s footprint in these regions to leverage future growth. Within the U.S., conversely, 3M should seek to “expense” acquisitions, and buy companies which provide immediate substantial cash flow and/or are highly synergic with core businesses or product lines. For 3M, acquired businesses must have an immediate impact on the bottom line and be a strategic fit. If there is not immediate positive cash flow “as is,” then 3M’s managers must be able to use cost reduction techniques such as Six Sigma to drive costs down until the business is profitable.

Selective “Investment” In EBO’s
It is strongly suggested that 3M “invest” selectively in emerging business opportunities (EBOs). As a consideration of the current economic downturn, EBOs must be synergic with core products lines and businesses. The other key factor for investing in EBOs is that it can be initiated as part of a key mega-trend. In this recession, 3M’s EBOs still need to see significant investment because of the internal fabric of innovation within the 3M culture. Also, it is important to be positioned advantageously emerging from this recession when consumer confidence and spending rebounds.

3M’s Management Must Look at Businesses for ROI and Cash Flow
There are four strategic elements which CEO George W. Buckley must balance properly via optimizing resource allocation. For all of these elements, 3M executives and managers must balance two critical factors: ROI and Cash Flow. 3M must examine its products as elements of a portfolio and understand s the cash flow generated by them and their respective ROIs. For the product lines and businesses kicking off a high amount of cash, look to allocate costs as expenses and favor them along a shorter time horizon. For products which provide a high return on resources allocated to them, concentrate on a longer time horizon and treat their costs as investment.

Navigating Any Kind Of Economic Weather to Keep People in Their Jobs
3M’s innovation is a trademark strength and a major part of their culture. Resource allocation is the backbone of any company, and is the enabler for its strategy. Weighing the short- and long-term expensing and investing of costs is vital to ensuring that a business weathers difficult economic seas, and opens full throttle in calm seas. These past two posts offer guideposts to 3M’s brain trust and the four key elements by which they operate their company. Ultimately, their choices keep people in jobs and protect families – these posts help toward that end.