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The case examines the organisational culture at 3M and the way in which it facilitated innovation at 3M. The policies and mechanisms adopted by 3M''s management to encourage the spirit of innovation in its employees are also discussed. The case takes a close look at 3M''s environment of innovation; the culture of knowledge sharing; and the reward system. It also discusses the steps implemented by the new CEO, James McNerney, to accelerate growth at 3M. The impact of cultural change at 3M on the spirit of innovation is also discussed. The case is structured to enable students to: (1) understand the role of top management in fostering a culture of innovation in an organisation; (2) study the strategies for developing a culture of innovation in an organisation and examine the influence of such a culture on its growth and leadership; (3) understand how a human resources policy and a reward system can help foster a culture of innovation; (4) understand how knowledge sharing and an open culture can encourage innovation; (5) understand the impact of the external environment on organisational culture; and (6) gain insight into the way culture can become a constraint to growth, indicating the need for cultural change. The case is intended for MBA/PGDBM level students as part of the human resource management and organisational behaviour curriculum.