A Suggestions Scheme Can Be the Engine for Your Innovation

Does your business 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 in the UK 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.

IdeasUK is available at www.ideasuk.com

Paul Sloane writes, consults and speaks on innovation.

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