Posts Tagged ‘suggestion’

Let Suggestions bypass the Line Manager

Thursday, November 19th, 2009

Whatever suggestion scheme or idea initiation events you implement, it is important to ensure that there is a facility for individuals to bypass their line manager if necessary.

Line managers can be resistant to ideas from their own people for a variety of reasons. They might fear that the person making the suggestion might be taken away from them to implement it. They might think that the idea does not reflect well on their department. They might see some implicit criticism of themselves in the suggestion. They might have political agendas or prejudices that lead them to block ideas coming from their team. If all ideas require initial sign-off by the first line manager then the flow of ideas will be inhibited in some areas.

When Lou Gerstner first took over the reins as CEO of IBM one of his first actions was to allow anyone, anywhere in the company to email him with ideas and suggestions. He received a flood of input – much of which gave him useful information on what the real problems were at the grass roots.

Sir Richard Branson has long had a policy that employees can bypass formal idea submission procedures and come straight to him with a business proposal if they are convinced it is the best route.

Allowing people to bypass the normal chain of command provides an essential safety valve that enables radical ideas to be viewed dispassionately at some distance from their source.

Suggestion Schemes are the engine for your Innovation

Sunday, November 15th, 2009

siemensDoes your organisation have an effective employee suggestions scheme? An increasing number of organisations in the both private and public sectors are finding that they can drive innovation and reduce cost by moving their suggestion box from the office wall to the intranet.

Siemens Automation and Drives is a good example. They employ 400 people in Congleton, Cheshire making electric motor drives. Their scheme is called Ideas Unlimited and it generates over 4000 suggestions per year of which some 3000 are implemented. The total savings are around $1.5m per year. Howard Ball administers the scheme part-time. The key is simplicity he explained when he addressed the national conference of ideasUK, a non-commercial association dedicated to employee suggestion schemes and recognition processes.

There are no forms and no paperwork. The intranet application has just four screens – entering the idea, evaluating, accepting or rejecting and implementing. Every manager acts as an evaluator. Payments are made in the form of vouchers to a value of around $80 on acceptance of the idea. They have found that small rewards and recognition on acceptance are a better incentive than larger rewards delayed until implementation.

Another interesting aspect of the Siemens scheme is that they publish league tables of ideas implemented by department with awards for the most successful departments. Managers are incentivised to accept and implement ideas.

Emma Akerman at Siemens suggested that a component be made out of galvanised steel instead of stainless steel. The idea was accepted and will save around £60,000 a year. She says, ‘The fact that you can put in suggestions on-line makes it easier, and knowing you can contribute ideas means you take more interest in your work.’

The main problem that had to be overcome was getting factory workers to use computers. They were not regular PC users so a training and help programme was put in place. Another thing to watch out for is evaluator overload – you have to give time and recognition to those who assess the suggestions. Ideas Unlimited has been a big success with thousands of employee ideas implemented each year. It is a powerhouse of innovation.

Paul Sloane