Idea management comprises gathering improvement or innovation ideas from any creative input. The key source of these ideas is the brain trust of our employees ? but can also include your suppliers, customers and contractors. We have found the process of obtaining ideas from employees is not a new one. Kodak started such suggestion program around the turn of the 20th century here in the United States. Overseas, the British Royal Navy had a suggestion scheme in 1772. The many benefits of Idea Management include ideas for: cost savings, cost avoidance, new products, safety, quality or simple ideas that improve customer satisfaction.

Since their inception, employee-based idea systems have gone through significant evolution (and they continue to do so). More recent approaches to Idea Management include focuses on smaller ideas via efforts such as Continuous Improvement and 5S while integrating into other improvement efforts such as team activities and Six Sigma. This is not enough. We see the future of Idea Management effectively embracing the collaborative aspects of social networking to improve your organization (contact us at info@tqs-sim.com for a recent White Paper on this topic).

Traditional Idea Systems or Suggestion Systems

Although some quality experts feel employee idea systems (or suggestion systems) are dead, a well designed idea system will significantly add to an organization's quality arsenal while helping it cut costs and improve performance. Important in view of our current economic times. In fact, the foundation of Lean Manufacturing is directly based on the Toyota Production System (TPS). TPS places a very large emphasis on employee driven suggestions in conjunction with teaming (quality circles in their environment). Even well run traditional suggestion systems provide ROI?s of over 2:1 ? and the potential if for much higher ROI?s and benefit to your organization.

An idea system can be designed to complement team activities, since not everyone can participate on a team. The idea system allows those individuals to still have a voice in the organization. Teams could also research the idea system database for ideas for future projects. Additionally, a team member may have an idea that doesn't fit the current team's mission. This idea could get lost without a process to support employee ideas.

The classic suggestion system or suggestion scheme takes employee ideas and passes them on to an expert (evaluator) for review. If the idea is feasible, it is then passed on for final review and implementation. The employee then often receives a cash award for their efforts, based on actual savings calculations (typically with a top award in the $10,000 to $20,000 range). These programs are still in effect in many organizations. They can be effective, if properly managed and promoted.

Looking to the Future

Idea Management has evolved to embrace a broader range of harnessing ideas than a traditional suggestion system. Ideally an organization will have several methods of harvesting ideas:

Modern idea systems directly involve the employee(s) with the solution and implementation process as much as possible. The method of rewarding their efforts may be based more on recognition than actual cash awards ? large cash awards are not necessary for success (and often can be counterproductive). The goal is to provide an environment to quickly resolve people?s ideas, give them solid feedback and adequately thank them for their participation.

An idea system also has to be fully on-line to support easy entry and review of ideas. A well designed on-line system like the SimNet 8 enterprise idea management software supports multiple idea environments as mentioned above (small, medium and innovative ideas). This idea database can become a knowledgebase for your organization ? acting as a catalyst for future ideas.

Integrating collaboration with Idea Management supports a process where ideas are pulled through the system rather than pushed. Supporting voting on ideas along with moderators of key idea topics ensures ideas get a wide audience. Providing tools for people to be more creative is also very important. Your idea system database will move from a basic management and accounting system to an on-line environment people use to be creative.

Modern Idea Management requires employees to have the resources to solve their own problems and the support from management to tackle them.

At Total Quality Systems, we can help you: