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Monthly Buzz #31
November 2004

Ideas Are the Lifeblood of Your Business

It’s better to be 1% better at 1,000 things than 1,000% better at one thing.

Ideas do not need to be huge to have a big impact. It’s the little things that make a difference and which get noticed.

There are very few big things a business can do to make it a success. But there are lots of little things. And that’s why experimentation and innovation are so critical to high performance. Small ideas are often overlooked precisely because they are small ideas and people do not think they warrant doing anything about.

For example, the ramp workers at United Airlines were not connecting power cables to planes parked at the terminal gate because they could not reach the power socket on the belly of the aircraft. To maintain cabin air-conditioning and flight deck systems, pilots left the engines idling for power generation. When management got together with pilots and ramp workers to discuss the problem, the solution was simple—get taller ladders, the ones they had were too short. This simple, low-cost solution saves United $20 million every year!

There is an opportunity for improvement in virtually every business process. But in most businesses there are several problems that prevent improvement: people who are close to the improvement opportunity have no channel to communicate their suggestions; they don’t know how to make a suggestion; and/or there is no formal system for getting ideas to action so that people can see the results of their ideas.

Suggestions for making the most of your team’s suggestions:

Take leadership and make communication about innovation a priority

  1. Challenge your people to look for improvements in everything they do every day and talk about this at every opportunity.

  2. Make sure you don’t behave like an idea killer and mandate that idea killers are not wanted in your organization.

  3. Acknowledge that by putting an idea out there a person will be vulnerable to criticism, but this is healthy. Feeling vulnerable is a normal human response. Ensure that people understand that the primary purpose of encouraging new ideas is to force the organization to challenge its own assumptions about the way it operates and to be a catalyst for improvement through change.

  4. Talk to all employees in your organization and encourage your managers to do the same. In the halls, the restrooms, the mail room, over lunch. Wherever. (Practice Management by Walking Around—MBWA.)

  5. Institute an "open mind" policy between management and team members where employees are actively encouraged to raise concerns and suggest ideas for improvement.

  6. Purge from your organization any form of "can’t do" talk and replace it with "can do, will do, help-me-do" language.

  7. At every opportunity, work alongside your team and ask them why they do things the way they do and what they might do differently to improve the process they own. This will inspire communication and trust and who knows—you may just come across the idea of all ideas.

Formalize opportunities to present ideas

  1. Have a monthly meeting where employees who wish to attend are asked to bring an idea or challenge for discussion.

  2. Incorporate a feedback or ideas-exchange session in a regular team meeting.

  3. When evaluating ideas, ask the person who does not like an idea to take 5 minutes to argue the case for it while the person who likes the idea is required to take the negative position – you will be amazed at the outcome.

  4. Create a suggestion box or a forum on your intranet where employees can quickly and easily jot down an idea. Provide a template for them to do that so that there is structure in the process. Have a means to acknowledge the idea, e.g. a digital stamp saying, “This has been read by [CEO]”– and make sure you do read it! 

  5. Create a GIG (Great Idea Group). Populate it with cross-functional representatives from your organization. This group will scope out, evaluate and recommend ideas to improve every aspect of the business that is “critical-to-quality.” Make sure you have a formal and structured system to direct these initiatives and that incorporates measurement, analysis, improvement and subsequent monitoring. This will require an investment in training. 

  6. On regular employee feedback forms make provision for an ideas section and ensure there is a box that the employee can check that says, “I want someone to talk to me about that.” This is a critical link in any feedback system and gives the team member the comfort that his or her ideas are being noticed. 

Reward ideas 

  1. Provide positive feedback for all ideas. Even if it is an idea that won’t work, be sure to say thanks to reinforce a culture of innovation and idea sharing. 

  2. Consider offering time off, some financial reward or an extra benefit (i.e. premier parking space, breakfast or movie tickets). 

  3. Incorporate recognition of good ideas in meetings. This could be just verbal recognition or could be a coveted trophy that employees keep on their desk until the next meeting. 

  4. Build idea generation and implementation into your team’s performance evaluation criteria, particularly at management level. 

Implement, implement, IMPLEMENT! 

  1. Failing to implement ideas is the fastest way to kill innovation and your team’s motivation. Brainstorming and problem solving are a complete waste of time and energy if no action is taken. No one wants to spin his/her wheels only to sink deeper in the ditch. And, as co-author of In Search of Excellence, Bob Waterman, says: “For many managers, strategy has meant either coming up with a brilliant idea or slamming the competition… The companies I researched do look for a sustainable competitive advantage… They get that from the way they organize, not from the brilliant idea. Because they persist where others give up, they accomplish the most difficult part of strategy… implementation, that is, getting what is often a simple idea done and getting it done right.”

Robert H. Waterman What America Does Right (New York: W.W. Norton, 1994)

FEATURE:
Ideas Are the Lifeblood of Your Business

BUSINESS DEVELOPMENT CORNER:

TAX BRACKET:
Determining Gain or Loss on Sale of an Item

 

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