Putting Creativity To Work:
A Serious Look at Suggestion Plans
Although prudent managers acknowledge that employees can generate profitable ideas, it is surprising how
little effort they devote to bringing these ideas to the surface. In fact, it almost
appears that health care organizations are set up to discourage initiative and the
development of creative thinking.
Managers rarely are actively encouraged to innovate, and
little priority is given to any formal method of motivating employees to develop
their ideas. Health care organizations tend to have more ofd a cast system than is
traditionally found in the private sector of industry because they place so much emphasis
on degrees, licenses, certification, and levels of education. The result is almost a
natural repression of original thought.
For example, a suggestion by a hospital nurse’s aide
on improving nursing technique would receive little serious consideration if routed
through normal channels. Nurse’s aides are not expected to know enough about or
have the necessary training in professional nursing practice. Similarly, natural
barriers exist in nearly every sector of the organization, resulting in the loss of a
potential wealth of “genius.”
As the health care industry undergoes profound change
because of unprecedented financial pressures, there has been an attempt to break down
these barriers. Quality circles (QCs), for example, have been adopted by many health
care organizations, though some of the elements that must be present if a QC program is to
work negate the energy spent in establishing them. The success of a QC program is
frequently tied to the overall corporate culture within the organization and the level of
employee relations that exists. Thus, as successful as such an approach can be,
there are inherent difficulties that preclude the quality circle approach from being
universally successful.
Because health care organizations have to become more
competitive and financially stable, a new look at an old tool - the suggestion program -
is definitely warranted. Suggestion programs can be installed in any organization,
even one with a “cool” employee relations climate. Suggestion plans, which
have excellent track records, can be introduced with minimal investment. Of course,
we are not talking about placing a suggestion box in a cafeteria or other frequently
visited location. Such a move is simplistic and usually ill advised. What is
called for is a careful look at how suggestion plans work, how they can be established,
and how they can be operated successfully.
An analysis of where and why suggestion plans succeed,
based on the author’s almost 25 years of experience as a consultant, reveals a number
of common elements that form the basis of an effective strategy. While not every
program should be a do-it-yourself exercise, the steps outline below should make it
possible for a health care organization to determine how best to proceed, given its unique
characteristics.
Developing
an organizational commitment to succeed
Shortly after the turn of the century, Congress
deliberated a bill that would have closed the Patent Office. The rationale was that
there was nothing left to invent. As naive as this appears today, it is not far from
the naiveté modern-day managers exhibit with regard to finding better ways of doing
things.
It is one thing to say that employees have good ideas, but
another to believe it. No suggestion program, or for that matter any plan, succeeds
unless those directing its course believe in attaining a positive outcome. An
emotional and organizational commitment to harvest employee ideas is not easily
secured. It is important for those in leadership positions to recognize the
potential of the work force and, perhaps, to review the experiences of companies that have
nurtured their suggestion programs over a period of years.
According to the National Association of Suggestion
Systems, an association comprised of organizations that have suggestion programs, millions
of dollars of ideas are developed and put to work each year. Moreover, rather than
running out of ideas over a period of years, organizations tend to find there is a steady
flow of suggestions from new and long-term employees. In a meeting held on December
14, 1988, Gene Johnson, director of the association, stated that in 1987 over $2 billion
in increased revenue or savings was obtained by the approximately 1,250 members of the
National Association of Suggestion Systems. There were $150 million paid in
rewards. The eye-opening part was that the average award for each suggestion
accepted was $8,000.
People have ideas, and good ideas frequently come from
unexpected sources and unsung employees. The value of these ideas is frequently
tremendous, and a system that stimulates and channels these contributions is a management
tool with the potential to bring about an excellent return on investment.
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Building
the foundation of a successful suggestion program
The second foundation element for a successful program is
the development of a formal and effective way of channeling ideas into a format that
facilitates rapid analysis and implementation. With an effective and well-understood
procedure and with carefully designed guidelines and rules, an organization can build and
sustain a momentum that leads to an ongoing supply of fresh ideas.
Merely building a suggestion box is similar to
placing a pail in the ocean and hoping that a fish will swim into it. You may get
some thoughts, but suggestion boxes unaccompanied by a formal, well-communicated, and
well-publicized program will merely become a repository for more candy wrappers. cigarette
butts, and miscellaneous gripes.
Clearly, when employees see that management is serious
about enlisting their help in supplying ideas, they will respond with the same
seriousness. They will see a suggestion box or other simplistic approach as only a
halfhearted effort at getting something for nothing.
Implementing
a generous award system that is as big time as the ideas being sought
Skimpy rewards bring skimpy results. If management
is seeking heavy weight ideas, it must establish an awards system that communicates its
commitment by demonstrating its willingness to share the benefits of the suggestion.
Employees do not want to be exploited; they see an awards system as a form of
communication and respect.
In a pragmatic sense, a liberal reward system pays off
royally. The satisfaction of seeing an idea implemented, magnified by a tangible
return, is highly motivational. When employees share in the benefits, they will
provide over the long run, a harvest of additional ideas that might otherwise have gone to
waste.
As a general rule, the value of awards should be
approximately 20 percent of one year’s savings or of revenue gain averaged over three
years. How this is determined is discussed later.
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Ensuring
rapid evaluation, communication of decisions, and implementation of suggestions
If there is one common characteristic of successful
suggestion programs, it is that ideas are evaluated and implemented soon after they are
made. In fact, the success of a plan is directly proportional to how quickly
employees get feedback and how quickly their ideas are implemented. this is such an
important factor that it may be responsible to have a successful program without tangible
rewards just as long as ideas are implemented within a few days of being
communicated. Prompt attention and action are an enormous award itself. They
are evidence of management’s concern and interest and provide great psychological and
professional satisfaction. Such rapid processing is also both feasible and
practical.
Providing
promotion and publicity
If a momentum is to be developed and sustained, a
carefully prepared communication strategy is critical. While employees must become
aware of the rules, it is more important to convince them of the value of investing the
time and effort required.
A well-planned and well-executed communication program
prevents initial enthusiasm from waning. there is no question that, after a period
of time, employees have to dig deeper for innovations. An ongoing, well-planned
publicity campaign can eliminate much of the mental laziness that might beset
employees. if the communications program is well organized, if winning ideas and the
awards they earn are publicized, and if messages of encouragement and motivation are
expressed, suggestion programs can produce a high level of activity on a permanent basis.
These five considerations can serve as a checklist to help
ensure a good return on investment. Each point is part of a mosaic that, when
brought together, can result in an organization that is economically stronger, is
competitively more secure, and has employees who have a high level of morale and
satisfaction. What follows is a step-by-step plan for implementation, which, when
tuned to the characteristics of the organization, will result in a successful program.
APPOINT
AN EXECUTIVE IN CHARGE
DEVELOP
A THEME AND THE PROCEDURES TO CARRY IT OUT
DETERMINE
AN AWARD SYSTEM
EVALUATE
THE SUGGESTION
EMPLOYEE
COMMUNICATION, PUBLICITY AND, OTHER FINE POINTS
