“ Nothing I can say about Medtronic today
makes me happier or more optimistic about the
future than the fact that the Mission is deeply
embedded as a permanent part of the culture.”
--Earl Bakken, Co-Founder and First CEO of Medtronic (1957-1974)
At a 1960 board meeting, Bakken first outlined the ideas that would later form Medtronic's mission. I can't help but think that Bakken was influenced by Johnson & Johnson's famous credo, written in 1943. (For an interesting analysis of crafting meaningful missions, I suggest reading "4 Rules to Craft a Mission Statement that Shapes Corporate Culture" from Fast Company.)
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| Medtronic Mission Statement from A Legacy of Improving Lives: Our History |
In terms of environmental stewardship, Medtronic conducted an initial test of equipment recycling. They receive 1700 kilograms of material out of which $53,000 of precious metals were recovered. If they had disposed of the equipment, they would have incurred $21,000 in hazardous material fees. Because the test was so successful, Medtronic is now using the recycling protocol on all eligible equipment. Over the next ten years, they expect to generate $700,000. The program also reduces demand for raw material since the recovered precious metals can be used instead of virgin material.
To help understand diabetes in India, the company utilized a skills-based employee volunteer program. This particular program, a part of the non-communicable diseases initiative, included a small number of employees, but because of its success, Medtronic created a Global Innovation Fellows program to which any employee can apply. A Disater Relief Program provides five paid days of leave each year so that employees can utilize their skills and abilities to assist in areas hit by natural disasters. Additionally, employees can participate in an employee volunteer program that awards a $500 grant to a charity for every 25 hours of employee service. It appears that employees can select the organization where they will volunteer while a separate initiative, Mission in Motion (MiM), organizes team volunteer events and giving drives. A local employee-led team coordinates MiM activities and selected groups and individuals are honored at an annual MiM award ceremony. Metronic also has a generous program to match employees' charitable contributions up to $50,000. A new software implemented in January 2012 aids these activities by allowing employees to track their volunteer hours, invite co-workers to participate, research charities, and learn about MiM events.
Over 6,500 employees across the globe are expected to participate in Medtronic's month of service called Project 6. Associates will work at local parks, assist at homeless shelters, or join one of the many activities selected by the area's employees. To heighten participation and engage employee's competitive spirit, the company provides a $10,000 grant that is given to a charity selected by the winning Medtronic facility. (Winners are based on the impact and participation rates.) Vice-President of Corporate Philanthropy Jacob A. Gayle lauded the company's commitment to citizenship, "We are fortunate to work at a company where social impact and giving back are deeply entrenched in our Mission. We have been privileged to partner with hundreds of nonprofits worldwide to help meet the needs of our local communities.” Last year's Project 6 highlights are in this Medtronic Mission in Motion: Project 6 video. Some associates posted photographs to twitter with #project6, but I also found many other items labeled with the same hashtag.
The range of CSR activities are captured in the company's Corporate Citizenship Update which follows the GRI G3 Guidelines. Medtronic's CSR activities, then, seem to take the following shape:
I've focused on the Total Employee Engagement initiatives, including but not limited to Mission in Motion: Project 6, employee giving, and the Disaster Relief Program. At the same time, the skill-based volunteering done in India is part of the Global NCD program and also relates to the leadership in addressing chronic disease as well as employee engagement.
A strength of the CSR program is the clear tie to the mission and culture of the organization. What might be useful is a more deliberate mapping of the individual activities as they relate to the five strategic CSR areas as well as the functional areas or divisions of the company. As an outsider, the amount and range of CSR initiatives appear almost overwhelming. I would be very interested in hearing the perspective of someone in the corporate citizenship office or an employee of the company for and internal perspective. The new volunteer management software encourages engagement (especially if the software is informed by trends in gamification), and that could be supported by a more conscious effort to share photographs and reflections on twitter or other social media sites.
It must be a challenge to coordinate the CSR activities for over 140 countries as well. Meditronic has decentralized decision-making with the Mission in Motion network and local control over Project 6 activities. The competition among facilities, though, allows connection among the different regions. The annual award ceremony can also promote a sense of belonging across units and countries. No doubt the new Global Innovation Fellows program will further enhance cohesiveness as employees experience new cultures and situations.
I would have predicted that Medtronic would experience increased employee commitment and decreased voluntary turnover. Reported turnover rates indicate a decrease over time until an uptick in FY2012 which had a turnover rate of 17%. The 2013 turnover rate, while still higher than FY2011, was down to 11%. Employee engagement survey data indicates that Medtronic employees rate the company higher than its benchmark. These statistics can't be attributed exclusively to the company's CSR programs, but they certainly play a role in keeping employees engaged and fulfilled.
A strength of the CSR program is the clear tie to the mission and culture of the organization. What might be useful is a more deliberate mapping of the individual activities as they relate to the five strategic CSR areas as well as the functional areas or divisions of the company. As an outsider, the amount and range of CSR initiatives appear almost overwhelming. I would be very interested in hearing the perspective of someone in the corporate citizenship office or an employee of the company for and internal perspective. The new volunteer management software encourages engagement (especially if the software is informed by trends in gamification), and that could be supported by a more conscious effort to share photographs and reflections on twitter or other social media sites.
It must be a challenge to coordinate the CSR activities for over 140 countries as well. Meditronic has decentralized decision-making with the Mission in Motion network and local control over Project 6 activities. The competition among facilities, though, allows connection among the different regions. The annual award ceremony can also promote a sense of belonging across units and countries. No doubt the new Global Innovation Fellows program will further enhance cohesiveness as employees experience new cultures and situations.
I would have predicted that Medtronic would experience increased employee commitment and decreased voluntary turnover. Reported turnover rates indicate a decrease over time until an uptick in FY2012 which had a turnover rate of 17%. The 2013 turnover rate, while still higher than FY2011, was down to 11%. Employee engagement survey data indicates that Medtronic employees rate the company higher than its benchmark. These statistics can't be attributed exclusively to the company's CSR programs, but they certainly play a role in keeping employees engaged and fulfilled.
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