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MAKING
YOUR SUGGESTION SCHEME MAKE SENSE
Harness the power of your in-house creative ideas
by Ron Kaufman
Markets today demand greater innovation. Changes are coming faster
than ever before. Your competitors are ever more nimble.
Customers have rising expectations. You need new ideas, better processes,
more innovative products and services, and more effective ways to build
strong futures with those customers.
Companies can no longer survive with staff members who expect management
to provide "all the right answers". Today, companies require
a steady flow of ideas and solutions from those who are closest to the
processes and the customers, those with their "ears to the ground".
To maintain an adaptable and responsive organization, you must develop
a culture that actively solicits input and recommendations from every
level of your staff.
Fortunately, senior managers are more receptive to this approach than
ever before. But how can you transform the mindset of staff who, for
years or even generations, were trained to "keep mouths shut, lay
low, and just follow orders"? How can you encourage your frontline
staff to open their minds, explore new ideas and share their best recommendations?
One technique is the "Staff Suggestion Scheme"; a time-honored
process of wooden boxes and pre-printed forms for staff to write out
their ideas and submit them for management consideration.
Many companies have tried this approach, but few can report real satisfaction
with the number, consistency, or quality of staff contributions. Even
fewer can report widespread enthusiasm for their "Suggestion Schemes"
at all.
Here are six ideas you can implement right away to make your suggestion
scheme more effective:
- Respond to all written staff suggestions immediately (within
one week) and in writing.
Be candid. If the answer is no, say so. If the answer is
yes, state when staff will see the implementation. If the answer is
maybe, explain the issues involved and give a date for further reply.
And stick to it. Nothing builds trust and credibility faster than
making new promises... and keeping them.
One exception: do not reply to obscene or abusive suggestions.
A strong company culture has no place for such destructive "inputs".
Your best response is not to reply.
-
Respond to suggestions publicly, for all to see.
Usually, when one staff member writes, she speaks what
is on the mind of many. Reply openly on a designated bulletin board,
in a weekly printed update, or by electronic mail. Thank the writer(s)
for their query or contribution. Include staff names on suggestions
to be implemented.
-
Give an award, prize or monetary incentive for best suggestions,
and give it right away.
Many suggestion schemes invoke a multi-step process for
evaluation and eventual granting of an award. First, the suggestion
boxes are emptied (sometimes only once a month). Second, a Committee
sifts and sorts for "realistic" submissions. Third, a
Management Committee appraises the freshness, viability, cost savings
or increased revenue from each suggestion. Fourth, someone in "Senior
Management" decides upon the amount of reward to be given to
the appropriate staff members. And finally, an actual awarding of
the "prize" is conducted.
The cycle time for this process is usually four weeks or more.
In some cases the senior management review is only conducted once
a quarter. What is your company's cycle time for awarding prizes
to staff suggestions? Would you be inspired if you had to wait that
long?
Try this approach: Dedicate Php60,000 to the project. Award the
money monthly for one year. Each month, give Php2,500 to the best
idea, Php1,000 for the second best idea, and Php500 each to the
3rd, 4th and 5th best suggestions.
In the first few months, few may believe that you will give out
the money in a timely manner, and possibly only a handful of staff
will participate. But no matter how small or meager the suggestions,
give out the money anyway! As soon as the staff members realize
you are serious, the boxes will be filled with suggestions.
-
Establish categories for regular awards.
Categories can help staff focus and generate new ideas.
Here are examples of categories that you can use:
a. ideas that can be implemented immediately
b. ideas for getting closer to customers
c. suggestions for cost savings or increasing revenue
d. new ideas focusing on a chosen theme for the month
e. ideas that most dramatically challenge the current paradigm
of thinking
f. recommendations for the future direction of business
-
Make a big event out of awarding your suggestion scheme
prizes.
Some companies use lunches, staff teas or monthly meetings
to award prizes. A company can make up large, special "peso
bills" for each winning suggestion. In the center is the face
of the staff member who contributed. In the corners is the amount
of money his or her suggestion earned. And surrounding the portrait
is a description of the suggestion itself. These "peso bills"
line the wall of the staff lounge and company cafeteria. The result
is popular group recognition for winners and a "culture building"
impact that keeps the suggestion scheme going strong.
At the end of the year, give recognition to the volume of suggestions
received, the winners who have been rewarded, and the changes enacted
as a result. Then, pose a challenge to everyone to double the volume
of suggestions in the coming year.
And, if the quality of ideas warrant, double your cash prizes,
too. Four winners a month last year? Increase it to eight winners
per month next year.
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Most of all, implement.
Act upon what your staff suggests. Nothing demonstrates
your commitment to this approach better than a staff suggestion
recognized, rewarded and immediately put to work.
Are there even more practical ways to improve your office’s
suggestion scheme? Sure there are. Got a suggestion?
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Adapted from Ron Kaufman, Copyright.
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