Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taic...
Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taic...
Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taic...
Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taic...
Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taic...
Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taic...
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Why listening to employee ideas will boost growth and profits.

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Creating Winning Programs in Today’s Economy.
In this guide we will show you what you need to know about creating a winning service awards program.

In today’s world, a successful incentive strategy requires a thorough understanding of the personality dynamics of the people who work for you, what awards they value, and the proper utilization of recognition and rewards.

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Why listening to employee ideas will boost growth and profits.

  1. 1. Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com© 2012 Taico® Incentive Services Inc.Why listening to employee ideas will boost growth and profits.San Mateo Times September 15th 1955 page 2: "Ray A.Hammerstrom, a roller at the Pittsburgh factory of the Jonesand Laughlin Steel Corporation, had an idea worth 15,000dollars. Events leading up to his happy dream began in thesummer of 1953 when a new 10-inch bar mill was installed atthe works.The switch that controlled the delivery of the straight bars tothe cooling bed were not functioning. Company engineerscouldnt find a solution. Hammerstrom made some roughsketches for a new design with no success.That was until one afternoon when he took a cat nap. His visionary catnap revealed the solution and won him a checkfor 15,000 dollars, the largest award the firm ever made to an employee for an idea."Fact is, whatever amount Jones and Laughlin paid out to Hammerstrom, the return they received for his idea wasinfinitely higher. Jones and Laughlin knew they would be paid back in spades. But, in spite of the huge benefitsimplementing employee ideas, few organizations invite their input. History is replete with examples where newproducts, innovations and ways to improve the organization began with an employee idea.Consider why it makes big time sense to encourage and reward employee ideas. How can it improve workforceengagement and product innovation? Why is listening to employee ideas a smart management practice?Bringing in the collective wisdom for the greater good is wise because it promises to produce great ideas andincreased benefits for your entire organization.Here are some examples and what you can do to boost your profits with employee ideas.The philosophy of innovation and welcoming employee ideas within Hondas US divisions has brought cost savingsand new products. Honda draws members for their idea groups from sales, engineering, development and differentbusiness units.Share This
  2. 2. Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com© 2012 Taico® Incentive Services Inc.General Electric Co. involves its consumers and business clients alike in new-product discussions.Food retailer Supervalu has created teams where director-level managers discuss strategic issues suggested byexecutives in the different business units. The managers discuss issues outside their own areas of expertise and workon their leadership development at the same time.Eisai, a Japanese pharmaceutical maker, has put together more than 400 innovation communities since 2005 tofocus on health-care-related issues such as examining possible new structures and sizes of medicines. World wide,Eisai employees participate in at least one such project, and spends time with patients as well. Eisais philosophy isthat by connecting in person with patients it also enhances employees ability to see beyond pure data.Forbes reported on how Bayer brought on Makboard. Makboard has become a big player in the snowsports market.This creation is an affordable, “high-performing” snowboard option that also helps keep waste out of landfills. Ascolumnist Terry Waghorn wrote."It took about a year for the Bayer AG, the German-based pharmaceutical giant, to decide that a see-throughsnowboard would be worth bringing to market. The snowboard was one of more than 9,000 ideas Bayer employeeshave generated in the four years the company has been running a program called "Triple-i: Inspiration, Ideas,Innovation."Triple-i uses an intranet portal to collect ideas from employees across the company. Three of those ideas, includingthe snowboard, which is named Makboard, have made it to market. Another 32 ideas are being developed andtested.Employee David Moss of Projet Créatif, a video game developer, wouldnt wait for the companys requirement thatideas could only be submitted after one year of employment. Moss went ahead and compiled a creative team tostart designing Ravenmark, a mythological adventure for young boys set in fourteenth century Scotland. The teamsidea was submitted to the company.Share This
  3. 3. Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com© 2012 Taico® Incentive Services Inc."Everyone was kind of confused that we were pitching a television show," Moss recalls. "But by the end of thepresentation, everyones eyes lit up and they could see the potential." Moss and his team were given time and fundsto develop Ravenmark. With Ravenmark ready to hit the market, Moss maintains ownership of his idea and will getpart of its revenue throughout his career.One Amoco plant in Texas promoted a suggestion plan that has saved the company over 18 million dollars in onlytwo years. The company recognizes and rewards the employees with the winning ideas with tangible awards andtravel in front of their peers and top brass.A management and consulting firm in New Mexico, Garrett Resources, awards for every idea submitted on how tosave money.Urban Bianchi a machinist, became known as the "undisputed King of the suggestion box" by the Los Angeles Timesfor turning in more than 800 cost cutting ideas for Parker Hannifin Corporation in Cleveland. The company alsorewarded him with over 17,000 dollars worth of merchandize. Bianchi is quoted as saying: "It meant more to me andmy family that I could share the merchandize I was awarded than if I bought it at a store."Grumman Corporation in Bethpage NY dramatically boosted their employee suggestion strategy by rewarding giftsfor ideas. "We needed to award something tangible, but quickly. With 26,000 employees nationwide, the oldapproach to obtaining employee ideas had become ineffective." noted then head of the procurement department,Marilyn Lage. The program proved so successful that Grumman authorized its supervisors to make rewards availablewithin a day if an employees idea is implemented.In only three months American Airlines was able to engage nearly 3,500 7person teams to come up with more than1600 ideas that were adopted, resulting in more than $20 million in cost savings and revenue generatingimprovements. Employees were rewarded with $4.7 million in merchandize prizes. More importantly the employeeswholeheartedly supported the changes because they had suggested and designed them.Share This
  4. 4. Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com© 2012 Taico® Incentive Services Inc.Everyone Counts was a very successful program at Black & Decker that set up teams to brainstorm and developideas about training, communication and administration. Employees from different departments were grouped into39 teams with evaluation committees. More than 200 ideas came in and 59 approved. One $700,000 idea dealt withthe substitution of new material in one of its product lines. Benefits included, better employee engagement,communication and higher company profits.Your organizations great ideas wont come mostly from outside consultant groups or suggestion laboratories. Theywill come from those people who are daily at the front lines, serving your customers, exploring new markets andbattling the competition. They are your engaged employees who are ready to offer their creativity. If you encouragethem to submit their ideas you will improve sales, cut your costs and boost your profits.HOWEVER.The sad fact is employee engagement remains at record low levels. There isn’t much mining of workers bestthinking going on because if there was, employee engagement scores would probably be higher. Less workers wouldbe considering jumping your ship in search of a better job offer.The high costs connected to re-hiring and re-training should be food for thought. Dis-engaging employees carry theirpenalites. One powerful way to engage and retain employees is by welcoming your employee ideas.How do you set up a successful idea submitting mechanism in your organization and avoid the pitfalls?Is your company clear and committed to your suggestion program? Do you use effective communication tools toannounce and promote everyones involvement?You can avoid sources of trouble such as jealousy, ill will, misunderstanding, division and cynicism by remaining theleader, having a good plan and conducting your suggestion get togethers fairly. Recognize everyones submissions.Consulting with the right incentive professional will greatly help you.Look at your corporate culture. Do you have an atmosphere that supports fresh and thoughtful ideas? Getting thosegreat employee ideas wont be forthcoming if you dont. Depending on your workforce environment, sometimesmore informal methods for nurturing new ideas are in order.Share This
  5. 5. Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com© 2012 Taico® Incentive Services Inc.If you chose to go ahead with a full blown formal suggestion program, schedule, announce and promote regularbrainstorming sessions. Use the sessions to focus on the topic or challenge you want to improve. Weekly or monthly,generate ideas from all. You can also divide up your meetings into departments first then meet with everyone later.Recognize all ideas no matter how "out there" they may appear at first. It doesnt mean you will implement all ideassubmitted, however you need to provide a safe, creative and welcoming environment for all. Thats what you want,to keep the ideas flowing.Some clients have reported that their suggestion programs were not successful. Upon closer review it was clear thatideas submitted were not acknowledged in a timely fashion. Within 48 hours is timely. If your main team onlyincludes top management or directors it will be seen by your workforce as out of touch.Of course it will generally be senior management that has the power to implement the ideas. What you want toavoid is the perception that decisions to go ahead with ideas are self-serving. Make it clear from the outset thatdecisions on what ideas are implemented remain with you and management.Your CFO or financial department must be represented on the suggestion review team. Choose the members of yourideas team based on your corporate culture.Remember that senior management sets the agenda with a clear statement of purpose and themes for discussion.Make sure all participants are free to discuss ideas without concerns about hierarchy and quarterly financial results.Dr. Guran Ekvall is a professor emeritus of industrial and organizational psychology at ULS university and headresearcher with The Creative Problem Solving Group. He is well known as an academic researcher in the area ofworkforce creativity as well as leadership behavior and values that encourage creative productivity. His uniqueresearch background as an industrial psychologist started with his extensive work in employee suggestion systems inthe early 1960s. He is widely published and has worked with a variety of international organizations.CPSG concludes: "Brainstorming may be the best-known tool for group idea generation and is widely taught in giftedand talented programs. Many empirical studies have been conducted regarding the effectiveness of brain-storming,and they have provided useful insights into the salient barriers facing groups who use this tool."Share This
  6. 6. Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com© 2012 Taico® Incentive Services Inc.Ideas are Free "is a clear and concise prescription for turning an organization into an idea machine. ...it will inspireany manager who believes, as I do, that only the innovative thrive!"says Jeff Taylor, Founder and Chief Monster, Monster.comPaul Tulenko, syndicated columnist for Scripps-Howard"The fact is, because theyre the ones doing the day-to-day work, front-line employees see a great many problemsand opportunities that their managers dont. But most organizations do very poorly at tapping into this extraordinarypotential source of revenue-enhancing and savings-generating ideas."Employee ideas are shown time and time again to be your secret weapon in achieving overall growth and boostingprofits.Share This

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